2012 Results. ISP: Solid, Capable, Committed, Delivering

Transcription

1 2012 Results ISP: Solid, Capable, Committed, Delivering March 12, 2013

2 2012: the Starting Point Convinced of Eurozone strong fundamentals Confident of improving political leadership Aware of continued recessionary environment in Italy Aware of high volatility Committed to a prudent strategy prepared in case of adverse developments 1

3 Key Economic and Market Developments in 2012 GDP evolution Average 10y BTP-Bund spread Average 1-month Euribor rate % Eurozone Bps Bps 1.5 Italy +121bps bps Avg Avg Avg Avg Increasing bankruptcies Higher unemployment Higher NPLs Higher cost of funding ALM crucial 2 Lower margins

4 ISP Priorities Tailored to the Environment Protect capital and liquidity Deliver sustainable profitability Deliver best-in-class performance Drive down structural costs Remunerate capital and reward shareholders We stayed the course in spite of unfavorable developments 3

5 2012 Results: Delivery on Our Promises The promise Protect capital and liquidity Deliver sustainable profitability Deliver best-in-class performance Drive down structural costs Remunerate capital and reward shareholders The delivery Strong and improved capital base, already Basel 3 compliant 11.2% Core Tier 1 ratio after dividends (+110bps) 10.6% pro-forma Common Equity ratio after dividends (+70bps) Deliberate low leverage strategy (18.9x) Solid liquidity position and very strong funding capability 90bn of unencumbered eligible assets LCR and NSFR well above Basel 3 requirements for Loan to Deposit ratio below 100% (vs 104.7% in 2011) 2013 wholesale maturing bonds already entirely covered 1,605mm net income 8,968mm operating margin, highest of the past 5 years Rigorous and conservative provisioning 83mm loss in 4Q12 driven by extraordinary factors; 129mm normalised profit Better than international peers on key operating ratios One of the few European banks able to deliver profitable growth: 6.5% top line growth coupled with 2.7% op. margin/tangible assets (vs 2.2% peers' avg.) First class Cost/Income (49.8% vs 65.9% peers' avg.) 224mm reduction in operating costs (-2.5% vs 2011) 832mm cash dividends, in line with 2011 DPS 5.0 for ordinary share, 6.1 for savings share 4% cash dividend yield on ordinary shares ISP: now stronger vs 2011, despite the crisis 4

6 2012: Commitments and Delivery Solid Capital and Liquidity Strong 2012 Results Best-in-class performance Relative to International Peers Sustainable Dividends 2012 Summary 2013 Outlook 5

7 Strong and Improved Capital Base Core Tier 1 ratio EBA capital ratio (1) Common Equity ratio (2) % % % bps bps bps Pro-forma after 832mm cash dividends (3) (1) Estimated on the basis of Core Tier 1 ratio as of and and impact of sovereign risk valuation at fair value (volumes and prices as of ) (2) Pro-forma fully phased-in Basel 3 ( financial statements considering the total absorption of DTA related to goodwill realignment and the expected absorption before 2019 of DTA on losses carried forward; including estimated benefits from optimization of sources and capital requirements and from sovereign risk shock absorption (65bps) (3) To be paid in 2013 for

8 ISP: One of the Best Capitalised Banks in Europe Estimated Fully-loaded Basel 3 Common Equity ratio pro-forma (1) % > ~ >9.0 ~ Basel 3 compliance level for SIFI (2) : 9.5% (3) 7.6 Peer 1 Peer 2 ISP Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 (1) Sample: Barclays, BNP Paribas, BPCE, Commerzbank, Credit Suisse, Deutsche Bank, HSBC, ING, Santander, Standard Chartered and UBS (2012 pro-forma data); BBVA, Nordea and Société Générale (2013E pro-forma data); Crédit Agricole SA (2012 Group pro-forma data); UniCredit (9M12 pro-forma data). Data may not be fully comparable due to different estimates hypothesis. Source: Investors' Presentations, Press Releases, Conference Calls (2) Systemically Important Financial Institution (as of ) (3) Maximum level assuming a Common Equity ratio of 9.5% (4.5% Core Tier % conservation buffer + 2.5% actual maximum SIFI buffer) 7

9 Deliberately Low and Decreasing Leverage Total Tangible Assets/Tangible net Shareholders Equity (1)(2) Down from 19.6 at the end of Peer 1 Peer 2 ISP Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 Conservative business model Focused asset growth Easy to re-lever if environment turns positive ( easy to expand, harder to retrench ) (1) Sample: Barclays, BBVA, BNP Paribas, BPCE, Commerzbank, Crédit Agricole SA, Credit Suisse, Deutsche Bank, HSBC, ING, Nordea, Santander, Société Générale, Standard Chartered and UBS (data as of ); UniCredit (data as of ) (2) Net Shareholders Equity including Net Income net of dividends paid or to be paid excluding Goodwill and other Intangibles 8

10 Strong Liquidity Position Unencumbered eligible assets with Central Banks (1) (net of haircuts) bn Liquid assets (2) bn bn bn ~ 20bn held in cash instruments (3) LCR and NSFR well above Basel 3 requirements for (1) Eligible assets freely available, excluding asset used as collateral and including eligible assets received as collateral (2) Stock of own-account eligible assets, including asset used as collateral and excluding eligible assets received as collateral (3) Reverse repo with average maturity of 4 days 9

11 Loan to Deposit Ratio Below 100% Driven by Higher Deposits Loans to Customers bn % Loan to Deposit ratio (1) % p.p. / Direct Deposits from Banking Business bn % (1) Loans to Customers/Direct Deposits from Banking Business 10

12 2013 Wholesale Bond Maturities Already Entirely Covered 2013 Wholesale Bond Maturities/Placements bn ~9 ~9 Maturities Placements and prefunding (1) (1) 2012 pre-funding and 2013 placements as of

13 2012: Commitments and Delivery Solid Capital and Liquidity Strong 2012 Results Full Year Q4 Focus on Credit Best-in-class performance Relative to International Peers Sustainable Dividends 2012 Summary 2013 Outlook 12

14 Robust Earnings Delivered in P&L Lower market rates, selective deleveraging and increased liquidity buffer Effective liability management ( 805mm capital gains in 2012 vs 426mm in 2011) and LTRO usage 2, (10) 17,881 (5,338) % Delta vs ,451 (2,921) (654) 8,968 (4,714) 9,430 (644) 3,610 (1,523) (482) 1,605 Net interest income Net fees and commissions Profits on trading Insurance income Other (1) Operating income Personnel Admin. Depreciation Operating margin Loan Loss Provisions Other charges (2) Pre-tax income Taxes Other (3) Net income (3.6) (0.3) n.m. 6.5 (1.5) (5.2) (53.5) 78.8 n.m. n.m. n.m. (1) Dividends and Other operating income (expenses) (2) Net impairment losses on assets, Profits (Losses) on HTM and on other investments, Provisions for risks and charges (3) Income (Loss) after tax from discontinued operations, Minority interests, Intangible amortization (after tax), Charges for integration and personnel exit incentives (after tax) 13

15 Highest Operating Margin of the Past 5 Years Operating margin 7,990 8,136 7,225 7,648 8, % Avg ,750mm

16 Net Income 2012 vs 2011 Year on Year Rigorous and conservative provisioning % Delta vs (89) (16) (471) 742 2,043 (350) (15) 1,262 ~ 1bn Greek bonds impairment in 2011 (2,433) 404 1,605 ~ 2bn tax benefit in 2011 Net income 2011 excl. goodwill imp. Net interest income Net fees and commissions Profits on trading Insurance income Other (1) Personnel Admin. Depreciation Loan Loss Provisions Other charges (2) Taxes Other (3) Net income 2012 (3.6) (0.3) n.m. (1.5) (5.2) (53.5) n.m. (45.6) (21.4) (1) Dividends and Other operating income (expenses) (2) Net impairment losses on assets, Profits (Losses) on HTM and on other investments, Provisions for risks and charges (3) Income (Loss) after tax from discontinued operations, Minority interests, Intangible amortization (after tax), Charges for integration and personnel exit incentives (after tax) 15

17 Strong and Improving "Return on Sales" 2012 P&L, indexed to Operating Income Percentage points p.p. Delta vs (30) 30 (16) (4) 50 RoS at 20% vs 12% in 2011 (26) 53 (4) 20 (9) 9 (3) Net interest income Net fees and commissions Profits on trading Insurance income Other Operating income Personnel Admin. Depreciation Operating margin Loan Loss Provisions Other charges Pre-tax income Taxes Other Net income (6) (2) 7 1 (1) (1) 5 8 (14) n.m. n.m. Note: figures may not add up exactly due to rounding differences 16

18 2012 Delivery on Cost Management Operating costs Administrative costs Cost/Income % Total operating costs 3,080 2, % p.p. 9, % 8, f(x) Personnel costs ,419 5, % mm net cost reduction in 2012 vs 2011 ( 425mm considering inflation, i.e. -4.7%) 17

19 Accelerated Pace of Cost Reduction % Administrative costs Total operating costs (3.7) 1Q12 vs 1Q11 (3.9) 1H12 vs 1H11 (4.4) 9M12 vs 9M11 (5.2) 2012 vs 2011 (1.6) (1.9) (2.3) (2.5) f(x) 1Q12 vs 1Q11 1H12 vs 1H11 9M12 vs 9M vs 2011 Personnel costs (1.2) (1.4) (1.6) (1.5) 1Q12 vs 1Q11 1H12 vs 1H11 9M12 vs 9M vs 2011 ~5,000 staff reduction in 2012 (~4,000 in Italy, ~1,000 abroad) 18

20 Positive Contribution from All Business Units Except Hungary and Ukraine 2012 Pre-tax Income contribution by Business Unit % Delta vs (515) 545 (441) (98) 3,610 Wealth Management ( 1,371mm) up 64.2% 1, Italian Retail (1) Italian Private Banking Insurance Asset Management (2) Financial Advisors (3) Corporate and Investment Banking Public Finance Corporate Center Int l Subsidiaries (excl. Hungary & Ukraine) Hungary Ukraine Group Pre-tax income (6.4) n.m. (57.6) (14.2) n.m (1) Banca dei Territori excluding Private Banking and Insurance (2) Eurizon Capital (3) Banca Fideuram and Fideuram Vita 19

21 2012: Commitments and Delivery Solid Capital and Liquidity Strong 2012 Results Full Year Q4 Focus on Credit Best-in-class performance Relative to International Peers Sustainable Dividends 2012 Summary 2013 Outlook 20

22 Solid Operating Performance in Q4 4Q12 P&L Driven by declining market rates, selective deleveraging and strengthening of liquidity buffer % Delta vs 4Q (7) 4,494 (1,334) 1,479 (781) (182) 2,197 ~ 1bn tax benefit in 4Q11 2,181 Increased commissions in commercial banking and asset management (1,461) (350) 386 (291) (178) (4) 129mm normalised (83) Net interest income Net fees and commissions Profits on trading Insurance income Other (1) Operating income Personnel Admin. Depreciation Operating margin Loan Loss Provisions Other charges (2) Pre-tax income Taxes Other (3) Net income (14.2) (22.4) n.m. 5.4 (1.0) (7.1) (28.5) (42.1) n.m. n.m. n.m. n.m. (1) Dividends and Other operating income (expenses) (2) Net impairment losses on assets, Profits (Losses) on HTM and on other investments, Provisions for risks and charges (3) Income (Loss) after tax from discontinued operations, Minority interests, Intangible amortization (after tax), Charges for integration and personnel exit incentives (after tax) (4) 99mm restructuring charges ( 136mm pre-tax) in 4Q12 21

23 Q4 Extraordinary Items Weigh Heavily on Net Income Q4 Extraordinary Negative Adjustments After tax amounts Hungary loss (1) (279) Ukraine loss (1) (77) Telco impairment (107) Charges for integration and exit incentives Slovakia extraordinary tax Total Q4 extraordinary negative adjustments (99) (16) (578) (1) Mainly affected by high provisioning: 269mm (including 63mm of real estate assets impairment) in Hungary, 67mm (including 7mm of real estate assets impairment) in Ukraine 22

24 2012: Commitments and Delivery Solid Capital and Liquidity Strong 2012 Results Full Year Q4 Focus on Credit Best-in-class performance Relative to International Peers Sustainable Dividends 2012 Summary 2013 Outlook 23

25 LLP Growth Driven by Modest Increase in Italy and More Significant Rise in International Subsidiaries Net Loan Loss Provisions Italy 3,550 3,806 +7% Group 4, % 4, International Subsidiaries %

26 Leading to Differentiated Impact on the Cost of Risk Cost of risk (1) Bps Italy bps Group bps f(x) International Subsidiaries 151bps (vs 132bps in 2011) excluding Hungary and Ukraine bps (1) Net LLP/Loans 25

27 Italy: ISP Enjoys the Lowest Incidence of Net NPLs % Italian peers (2) average Gross NPL/Loans vs Italian peers 9M12, % Net NPL/Loans vs Italian peers 9M12, % ~ ~ Peer 1 ISP (1) Peer 2 Peer 3 Peer 4 ISP (1) Peer 1 Peer 2 Peer 3 Peer 4 Better underwriting and credit portfolio management through the cycle (1) Italian perimeter (2) Sample: BPOP, MPS, UBI and UniCredit (data as of ); for UniCredit: data refers to Italian perimeter SOURCE: Balance sheet data, pro-forma for M&A activity 26

28 Italy: ISP with the Best Trend in NPL Evolution bps Italian peers (2) average Δ Gross NPL/Loans vs Italian peers 9M12 vs 2011, Bps Δ Net NPL/Loans vs Italian peers 9M12 vs 2011, Bps ~ bps proforma excl. doubtful loans disposal ~ bps proforma excl. doubtful loans disposal ISP (1) Peer 1 Peer 2 Peer 3 Peer 4 ISP (1) Peer 1 Peer 2 Peer 3 Peer 4 Clear impact of proactive, large scale credit quality improvement initiatives (1) Italian perimeter (2) Sample: BPOP, MPS, UBI and UniCredit (data as of ); for UniCredit: data refers to Italian perimeter SOURCE: Balance sheet data, pro-forma for M&A activity 27

29 Italy: ISP Has Better than Average Coverage Ratios and a Strong Recovery Rate NPL coverage ratio (1) in Italy Performing loans coverage ratio in Italy Recovery rate in Italy % 41.9% taking into account: Doubtful Loans disposal (1.5%) New Past Due rule (1.1%) Performing loans reserves/ Performing loans % Doubtful loans recovery/net book value (4) % ~0.7 ~ Italian peers 9M12 average ~31.8% (2) Italian peers 9M12 average ~0.55% (2) ISP Group coverage ratios: 44.9% (3) on NPL ~0.8% on performing loans, equivalent to ~ 2.6bn buffer average (1) Specific LLP stock/gross NPL; NPL: Doubtful Loans (sofferenze), Substandard Loans (incagli), Restructured (ristrutturati) and Past Due (scaduti e sconfinanti) (2) Sample: BPOP, MPS, UBI and UniCredit (data as of ). For UniCredit: NPL coverage ratio refers to Italian perimeter; performing loans coverage ratio refers to Group (data on Italian perimeter not available) (3) Pro-forma figure: calculated based on statutory figures (42.7%) taking into account (i) doubtful loans disposal (1.3%) and (ii) new past due rule (0.9%) (4) Excluding the effect of Doubtful Loans disposal 28

30 Italian Ratios, and in Particular Those of ISP, Appear Even More Conservative on Account of Strict Standards Applied by Bank of Italy Italian Banks face more stringent criteria on NPL classification Non-performing loans (1) /Total loans 2011, % and Italian collaterals are the highest Loan/Value on residential mortgages (example) Latest available data, % 25.3 (2) Balance sheet data Restated (1) For Italy, NPL defined as Doubtful Loans (sofferenze), Substandard Loans (incagli), Restructured (ristrutturati) and Past Due (scaduti e sconfinanti) (2) Including restructured loans portfolio ReoCo-related assets SOURCE: ABI Associazione Bancaria Italiana, Banca d Italia, European Central Bank, Banque de France, European Mortgage Federation 29 Italian asset quality likely underappreciated harmonization needed

31 2012: Commitments and Delivery Solid Capital and Liquidity Strong 2012 Results Best-in-class performance Relative to International Peers Sustainable Dividends 2012 Summary 2013 Outlook 30

32 ISP Delivers Performance in Line or Better than International Peers, Despite Lower Leverage and Less Favorable Environment Key Performance Indicators Pre-tax ROTE (1) ISP better than International peers (4) average ISP worse than International peers (4) average Pre-tax ROTA (2) % f(x) 0.5 Operating Income/ Total Tangible Assets % % Total Tangible Assets/ Tangible net Shareholders Equity (3) Cost/Income % Net LLP/Loans Bps Italian credit environment Stricter definitions Higher collaterals Prudent provisioning 81 (5) (1) (Operating income Costs LLP) / Tangible Net Shareholders Equity (Net Shareholders Equity including Net Income net of dividends paid or to be paid and excluding Goodwill and other Intangibles) (2) (Operating income Costs LLP) / Total Tangible Assets (net of Goodwill and other Intangibles) (3) Net Shareholders Equity including Net Income net of dividends paid or to be paid and excluding Goodwill and other Intangibles (4) Sample: Barclays, BBVA, BNP Paribas, BPCE, Commerzbank, Crédit Agricole SA, Credit Suisse, Deutsche Bank, HSBC, ING, Nordea, Santander, Société Générale, Standard Chartered and UBS (data as of ); UniCredit (data as of ; annualized figures when applicable) (5) Including real estate provisions, where relevant

33 Sensitivity Analysis: ISP Results Applying Average European Cost of Risk and Tax Rate ISP 2012 results pro-forma applying ISP 2012 results international peers average cost of risk (1) international peers average cost of risk (1) and tax rate (2) Pre-tax 3.6 ~5.3 (+47%) ~5.3 (+47%) Income bn 2x Net income Net 1.6 ~2.8 (+75%) ~3.1 (+94%) Pre-tax ROTE (3) % 12.2% ~17% ~17% ~5p.p. higher than int'l peers average (1) Applying international peers average net LLP/Loans of 81bps (vs 125bps of ISP) (2) Applying international peers average tax rate of ~32% (vs ~42% of ISP) (3) (Operating income Costs LLP) / Tangible Net Shareholders Equity (Net Shareholders Equity including Net Income net of dividends paid or to be paid and excluding Goodwill and other Intangibles) 32

34 ISP: First Class Cost/Income Cost/Income (1) % p.p vs 2011 delta Cost/Income Peer 1 Peer 2 ISP Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer (0.6) (4.6) (4.3) (2.7) (2.9) (7.9) Second best improvement in 2012 (1) Sample: Barclays, BBVA, BNP Paribas, BPCE, Commerzbank, Crédit Agricole SA, Credit Suisse, Deutsche Bank, HSBC, ING, Nordea, Santander, Société Générale, Standard Chartered and UBS (data as of ); UniCredit (data as of ) 33

35 ISP is Strategically Very Competitive Notwithstanding Higher Cost of Risk Associated with Current Italian Market Conditions (Operating Costs+Loan Loss Provisions)/Operating Income (1)(2) LLP/Income % Cost/Income Peer 1 Peer 2 Peer 3 Peer 4 ISP Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 (1) Sample: Barclays, BBVA, BNP Paribas, BPCE, Commerzbank, Crédit Agricole SA, Credit Suisse, Deutsche Bank, HSBC, ING, Nordea, Santander, Société Générale, Standard Chartered and UBS (data as of ); UniCredit (data as of ) (2) Including real estate provisions, where relevant Note: Figures may not add up exactly due to rounding differences 34

36 2012: Commitments and Delivery Solid Capital and Liquidity Strong 2012 Results Best-in-class performance Relative to International Peers Sustainable Dividends 2012 Summary 2013 Outlook 35

37 Performance Supports Solid Dividends in a Challenging Environment Ranking by cash dividend (1) Cash dividend yield (2) Cash payout ratio #1 HSBC 4,112 #2 BNP 1,863 #3 NOR 1,370 #4 BBVA 1,317 #5 SC 1,271 #6 SAN 1,073 #7 BAR 974 #8 ISP 832 #9 DB 697 #10 UBS 466 #11 SG 339 #12 BPCE 308 #13 CS 107 #14 ING 0 #15 CASA 0 #16 CB 0 #17 UCI n.a. % #1 NOR 4.4 #2 ISP 4.0 #3 BPCE 3.5 #4 BBVA 3.4 #5 BNP 3.3 #6 HSBC 2.7 #7 SC 2.6 #8 BAR 2.2 #9 DB 2.0 #10 SAN 1.7 #11 SG 1.4 #12 UBS 1.0 #13 CS 0.4 #14 ING 0 #15 CASA 0 #16 CB 0 #17 UCI n.a. % #1 DB #2 BBVA 78.6 #3 ISP 51.8 #4 SAN 48.7 #5 NOR 43.9 #6 SG 43.8 #7 HSBC 38.7 #8 SC 34.3 #9 BNP 28.4 #10 BAR 18.9 #11 UBS 15.4 #12 BPCE 14.3 #13 CS 8.7 #14 ING 0 #15 CASA 0 #16 CB 0 #17 UCI n.a. ISP enjoys best-in-class Common Equity ratio (10.6%) sustainable dividends confirmed as a management priority (1) Source: FY12 companies data (2) Based on prices for ordinary shares as of the day before earnings announcement for each bank (for BPCE, not listed, used Natixis share price; UCI not available) Source: Datastream 36

38 2012: Commitments and Delivery Solid Capital and Liquidity Strong 2012 Results Best-in-class performance Relative to International Peers Sustainable Dividends 2012 Summary 2013 Outlook 37

39 2012 Summary: Significant Improvements vs 2011 on All Key Indicators 2012 Δ vs 2011 Core Tier 1 ratio (1) (%) Common Equity ratio (1)(2) (%) Unencumbered Eligible Assets (3) ( bn) Operating Margin ( bn) Pre-tax Income ( bn) Net Income ( bn) Cost/Income (%) Cash Dividends ( mm) bps bps bn (4) % % 1.6 n.m p.p mm (1) After dividends (2) Pro-forma fully phased-in Basel 3 ( financial statements considering the total absorption of DTA related to goodwill realignment and the expected absorption before 2019 of DTA on losses carried forward; including estimated benefits from optimization of sources and capital requirements and from sovereign risk shock absorption (65bps) (3) Unencumbered eligible assets with Central Banks, net of haircuts (eligible assets freely available, excluding asset used as collateral and including eligible assets received as collateral) (4) As of : + 53bn 38

40 2012: Commitments and Delivery Solid Capital and Liquidity Strong 2012 Results Best-in-class performance Relative to International Peers Sustainable Dividends 2012 Summary 2013 Outlook 39

41 2013: Eurozone and Italy Outlook Positives Negatives Eurozone Strong macroeconomic KPIs Effective and committed ECB leadership Euro break-up fears disappeared Largest world market Highly educated population Stagnant GDP High (and growing) unemployment Upcoming elections in Germany and unsynchronized elections throughout the Eurozone generating political uncertainty Spreading populism Italy Strong macroeconomic Political uncertainty KPIs Rising populism Strong industrial make up Ongoing recession Fiscal discipline regulated Delayed structural reforms by law ("Autopilot") reducing competitiveness Declining GDP 40

42 2013: ISP Outlook The environment will continue to be challenging. We commit to: Core Tier 1 and Common Equity ratios above 10% and capital ratios well above EBA threshold Low leverage Conservative liquidity management Prudent provisioning Sound operating performance, with a sustained focus on costs DPS 2012 level Should market conditions improve we will shift to a less conservative strategy leveraging on a strong balance sheet, highly skilled professionals and the impact of the ongoing transformation program ISP: SOLID, CAPABLE, COMMITTED, DELIVERING 41

43 2012 Results Detailed Information March 12, 2013

44 Key 2012 P&L Figures 2012 ( mm) vs 2011 Operating income 17,881 Operating costs (8,913) Cost/Income 49.8% Operating margin 8,968 Pre-tax income 3,610 Net income 1, % (2.5%) (4.6pp) +17.3% +78.8% n.m. 43

45 Key 2012 Balance Sheet Figures ( mm) vs (%) Loans to Customers 376,625 (0.1) Customer Financial Assets (1) 794, of which Direct Deposits from Banking Business of which Direct Deposits from Insurance Business and Technical Reserves 380,353 81, of which Indirect Customer Deposits 413,796 - Assets under Management 231,491 - Assets under Administration 182,305 RWA 298, (0.8) (8.2) (1) Net of duplications between Direct Deposits and Indirect Customer Deposits 44

46 Contents Detailed Consolidated P&L Results Liquidity, Funding and Capital Base Asset Quality Divisional Results Other Information 45

47 2012: Robust Earnings Delivered in a Difficult Environment Net interest income 9,780 9,430 (3.6) Dividends and P/L on investments carried at equity (45.8) Net fee and commission income 5,466 5,451 (0.3) Profits (Losses) on trading 920 2, Income from insurance business Other operating income 7 (49) n.m. Operating income 16,785 17, Personnel expenses (5,419) (5,338) (1.5) Other administrative expenses (3,080) (2,921) (5.2) Adjustments to property, equipment and intangible assets (638) (654) 2.5 Operating costs (9,137) (8,913) (2.5) Operating margin 7,648 8, Net provisions for risks and charges (218) (245) 12.4 Net adjustments to loans (4,243) (4,714) 11.1 Net impairment losses on assets (1,069) (282) (73.6) Profits (Losses) on HTM and on other investments (99) (117) 18.2 Income before tax from continuing operations 2,019 3, Taxes on income from continuing operations 910 (1,523) n.m. Charges (net of tax) for integration and exit incentives (552) (134) (75.7) Effect of purchase cost allocation (net of tax) (321) (299) (6.9) Goodwill impairment (net of tax) (10,233) 0 (100.0) Income (Loss) after tax from discontinued operations 0 0 n.m. Minority interests (13) (49) Net income (8,190) 1,605 n.m. FY11 Restated FY12 % Net income excluding Goodwill impairment 2,043 1,605 (21.4) Note: 2011 figures restated to reflect the scope of consolidation for Figures may not add up exactly due to rounding differences 46

48 2012: ~ 1.5bn Net Income Excluding Main Non-recurring Items FY11 Net Income (after tax data) FY12 Net Income (after tax data) Net Income (8,190) Net Income 1,605 Charges for integration and exit incentives +552 Charges for integration and exit incentives +134 Amortisation of acquisition cost +321 Amortisation of acquisition cost +299 Hungary extraordinary tax +44 Hungary and Slovakia extraordinary tax +76 Greek bond impairment +720 Greek bond impairment +23 Telco impairment +251 Telco impairment +116 Taxation non-recurring impact (2,130) Taxation non-recurring impact (199) Capital gain on Findomestic (128) Capital gain on LSE (1) (105) Capital gain on Prada (253) Capital gain on buy-backs (476) Capital gain on CR Spezia and 96 branches (122) Settlement of dispute with Italian Revenue Agency ("misuse of a right") +147 Goodwill impairment +10,233 Net Income adjusted 1,445 Net Income adjusted 1,473 (1) London Stock Exchange 47

49 4Q12: Strong Growth in Operating Margin vs 4Q11 4Q11 4Q12 % Net interest income 2,541 2,181 (14.2) Dividends and P/L on investments carried at equity Net fee and commission income 1,339 1, Profits (Losses) on trading Income from insurance business (22.4) Other operating income (expenses) 2 (18) n.m. Operating income 4,265 4, Personnel expenses (1,348) (1,334) (1.0) Other administrative expenses (841) (781) (7.1) Adjustments to property, equipment and intangible assets (177) (182) 2.8 Operating costs (2,366) (2,297) (2.9) Operating margin 1,899 2, Net provisions for risks and charges (106) (105) (0.9) Net adjustments to loans (2,043) (1,461) (28.5) Net impairment losses on other assets (360) (141) (60.8) Profits (Losses) on HTM and on other investments (139) (104) (25.2) Income before tax from continuing operations (749) 386 n.m. Taxes on income from continuing operations 976 (291) n.m. Charges (net of tax) for integration and exit incentives (53) (99) 86.8 Effect of purchase cost allocation (net of tax) (67) (79) 17.9 Goodwill impairment (net of tax) (10,233) 0 (100.0) Income (Loss) after tax from discontinued operations 0 0 n.m. Minority interests 7 0 (100.0) Net income (10,119) (83) (99.2) Net income excluding Goodwill impairment 114 (83) n.m. Note: figures may not add up exactly due to rounding differences 48

50 4Q12: Growth in Revenues vs 3Q12 3Q12 4Q12 % Net interest income 2,317 2,181 (5.9) Dividends and P/L on investments carried at equity (27) 11 n.m. Net fee and commission income 1,333 1, Profits (Losses) on trading Income from insurance business (26.4) Other operating income (expenses) (19) (18) (5.3) Operating income 4,443 4, Personnel expenses (1,295) (1,334) 3.0 Other administrative expenses (711) (781) 9.8 Adjustments to property, equipment and intangible assets (160) (182) 13.8 Operating costs (2,166) (2,297) 6.0 Operating margin 2,277 2,197 (3.5) Net provisions for risks and charges (69) (105) 52.2 Net adjustments to loans (1,198) (1,461) 22.0 Net impairment losses on other assets (43) (141) Profits (Losses) on HTM and on other investments (5) (104) n.m. Income before tax from continuing operations (59.9) Taxes on income from continuing operations (454) (291) (35.9) Charges (net of tax) for integration and exit incentives (11) (99) Effect of purchase cost allocation (net of tax) (71) (79) 11.3 Goodwill impairment (net of tax) 0 0 n.m. Income (Loss) after tax from discontinued operations 0 0 n.m. Minority interests (12) 0 (100.0) Net income 414 (83) n.m. Note: figures may not add up exactly due to rounding differences 49

51 4Q12: Net Income at 129mm Excluding Main Non-recurring Items 3Q12 Net Income (after tax data) 4Q12 Net Income (after tax data) Net Income 414 Net Income (83) Charges for integration and exit incentives +11 Charges for integration and exit incentives +99 Amortisation of acquisition cost +71 Amortisation of acquisition cost +79 Hungary and Slovakia extraordinary tax +15 Hungary and Slovakia extraordinary tax +27 Capital gain on subordinated and senior notes buy-back (219) Capital gain on subordinated notes buyback (74) Telco impairment +107 Taxation non-recurring impact (26) Net Income adjusted 292 Net Income adjusted

52 MIL-BVA /FR Net Interest Income: Market Rates at Historic Lows Quarterly Analysis Yearly Analysis Euribor 1M Euribor 1M % 4Q12 vs 4Q11 and 3Q12 % 2012 vs ,780 9,430 2, ,317 2, Q11 3Q12 4Q Q12 affected by mark-down reduction, strengthening of liquidity buffer and active management of securities portfolio Increase in average Direct deposits from banking business vs 3Q12 (+2.9%) Slight decrease in average Performing loans to customers vs 3Q12 (-0.8%), largely due to Hungary and International Corporate and Financial Institutions clients Decrease due to mark-down reduction - caused by the decline in market rates - and strengthening of liquidity buffer Decrease of around one-third due to Hungary 3.0% growth in average Direct deposits from banking business 3.1% (1) decrease in average Performing loans to Customers due to Hungary, Public Finance, Large and International Corporate and International Financial Institutions clients, primarily driven by the strong focus on loan portfolio quality and EVA generation (1) Retail Italy ( - 1.6bn; -1.4%), SMEs Italy ( - 1.6bn; -2.2%), Mid Corporate Italy ( + 0.2bn; +0.9%), Large & International Corporate ( - 2.9bn; -7.3%), Public Finance - including securities subscription ( - 1.2bn; -3.8%), International Subsidiary Banks Division ( - 0.9bn; -2.9%) 51

53 Net Interest Income: Decline Due To Difficult Market Environment Quarterly Analysis Yearly Analysis Customers Active management of securities portfolio and strengthening of Customers Strengthening of liquidity buffer liquidity buffer 9,780 (191) (145) 226 (240) 9,430 2,317 (13) (40) 0 (83) 2,181 3Q12 Volume Spread Hedging (1)(2) Other 4Q Volume Spread Hedging (1)(2) Other 2012 (1) ~ 1,250mm benefit from hedging in 2012, of which ~ 330mm in Q4 (2) Core deposits 52

54 Net Fee and Commission Income: Double-digit Growth on a Quarterly Basis MIL-BVA /FR Quarterly Analysis Yearly Analysis % 4Q12 vs 4Q11 and 3Q12 % 2012 vs ,466 5,451 1,339 1,333 1,479 4Q11 3Q12 4Q Increase vs 3Q12 mainly due to commissions from Management, dealing and consultancy activities (+21.8%; + 124mm) Growth vs 4Q11 due to commissions from Management, dealing and consultancy activities (+27.3%; + 149mm) and commissions from Commercial banking activities (+2.4%; + 13mm) 1.3% growth excluding the impact of the fee paid for state guarantee on the use of ECB liquidity (LTRO) in December 2011 ( 85mm in 2012) Increase in commissions from Commercial banking activities (+2.1%; + 43mm. +6.2%; + 128mm excluding the fee paid for state guarantee) and in commissions from Management, dealing and consultancy activities (+0.8%;+ 20mm) 53

55 Profits on Trading: Strong Performance Quarterly Analysis Yearly Analysis % 4Q12 vs 4Q11 and 3Q12 % 2012 vs , Q11 3Q12 4Q n.m Q12 results include 110mm capital gain on subordinated notes buy-back and 342mm from core deposits hedging reduction 3Q12 results include 327mm capital gain on subordinated and senior notes buy-back 883mm growth excluding capital gains on buybacks (1) and on the sale of the stakes in LSE (2), Prada (3) and Findomestic (3) (1) 274mm from Tier1 buy-back in 1Q12, 327mm from subordinated and senior notes buy-back in 3Q12 and 110mm from subordinated notes buy-back in 4Q12 (2) London Stock Exchange (3) 426mm total in 2Q11 54

56 Profits on Trading: Sound Performance in All Activities 4Q11 3Q12 4Q Total ,182 of which: Customers Capital markets & Financial assets AFS (3) (4) 352 Proprietary Trading and Treasury (excluding Structured credit products) (1) 478 (2) 53 1,401 (5) Structured credit products (1) Of which 327mm capital gain on subordinated and senior notes buy-back (2) Of which 110mm capital gain on subordinated notes buy-back (3) Of which 426mm capital gain on the sale of Prada and Findomestic stakes (4) Of which 94mm capital gain on the sale of LSE stake (5) Of which 711mm capital gain on Tier1 and subordinated/senior notes buy-backs 55

57 Operating Costs: Accelerated Pace of Reduction and High Efficiency Evolution of Operating Costs % 2007 (1) vs vs 2007 (1) 2009 vs vs vs vs 2011 (1.1) (3.3) (4.0) (1.8) (1.8) 1Q12: (1.6) 1H12: (1.9) 9M12: (2.3) (2.5) First class Cost/Income: 49.8% vs 54.4% in 2011 Six consecutive years of cost reduction (1) Excluding non-recurring recoveries on the allowance for Employee Termination Indemnities (TFR) ( 277mm in 2Q07) 56

58 Operating Costs: 224mm Reduction on a Yearly Basis Quarterly Analysis % 4Q12 vs 4Q11 and 3Q12 Operating Costs Personnel Expenses 2,366 2,166 2,297 1,348 1,295 1,334 Yearly Analysis % 2012 vs 2011 Operating Costs Personnel Expenses 9,137 8,913 5,419 5,338 4Q11 3Q12 4Q12 4Q11 3Q12 4Q Other Administrative Expenses Adjustments Other Administrative Expenses 3,080 2, Adjustments 654 4Q11 3Q12 4Q12 4Q11 3Q12 4Q Operating costs up vs 3Q12 due to seasonal year-end effect Other administrative expenses down 7.1% vs 4Q11 Other administrative expenses down 5.2% 57

59 Net Adjustments to Loans: Deteriorated Credit Environment Addressed with Rigorous and Conservative Provisioning Quarterly Analysis Yearly Analysis % 4Q12 vs 4Q11 and 3Q12 % 2012 vs ,243 4,714 2,043 1,198 1,461 4Q11 3Q12 4Q Strong decrease vs 4Q11 Increase vs 3Q12 largely due to Hungary and Ukraine Slight increase in Non-performing loans coverage vs 3Q12 (42.7% vs 42.6%) ~40% increase due to Hungary and Ukraine Cost of credit at 125bps (vs 113 in 2011) Cost of credit at 110bps in Italy (vs 103 in 2011) and at 310bps abroad (vs 226 in 2011) Cost of credit abroad at 151bps excluding Hungary and Ukraine (vs 132 in 2011) 58

60 Contents Detailed Consolidated P&L Results Liquidity, Funding and Capital Base Asset Quality Divisional Results Other Information 59

61 Steady Growth in Customer Financial Assets % vs and Customer Financial Assets (1) Direct Deposits from Banking Business bn bn Direct Deposits from Insurance Business and Technical Reserves Indirect Customer Deposits bn bn AuM bn increase in Customer Financial Assets in 2012 (1) Net of duplications between Direct Deposits and Indirect Customer Deposits 60

62 Stable and Reliable Source of Funding from Retail Branch Network Breakdown of Direct Deposits from Banking Business bn as of % Percentage of Total Current accounts and deposits Wholesale 3 Retail 191 Repos and securities lending 14 - Bonds Certificates of deposits + Commercial papers 8 2 Subordinated liabilities 8 5 Total Wholesale Retail Other deposits bn increase in Retail Direct Deposits in 2012, of which 6bn in Q4 Note: figures may not add up exactly due to rounding differences 61

63 Strong Funding Capability: 2013 Wholesale Bond Maturities Already Entirely Covered 2012 MLT Maturities/Placements MLT Maturities bn Wholesale bn Wholesale Retail 7bn already placed Retail bn pre-funding Maturities Placements (1) wholesale bond maturities already entirely covered (2) 2013 maturities in line with bn annual average placements In 2012, 14bn 18m Time Deposits placed ( 4bn in the first two months of 2013) (1) Group s placements (2) Taking into account 2012 pre-funding 62

64 Strong Funding Capability: Broad and Continuous Access to International Markets bn of eurobonds and 2.25bn of covered bonds placed on the international markets (~80% demand from foreign investors; target exceeded by ~200%): January: 1.5bn 18m eurobond, first senior unsecured benchmark issue from a eurozone peripheral bank for three months February: 1bn 5y eurobond, first senior unsecured benchmark issue from a eurozone peripheral bank with maturity exceeding ECB s three-year LTRO July: 1bn 3y eurobond, first senior unsecured benchmark issue from a eurozone peripheral bank since the end- June EU summit September: 1.25bn 4y senior unsecured benchmark eurobond and 1bn 7y benchmark covered bonds backed by residential and commercial mortgages 0.75bn of eurobonds, 1bn of covered bonds and $3.5bn of US bonds placed on the international markets (more than 90% demand from foreign investors; target exceeded by more than 200%) January: - $3.5bn 3y and 5y dual tranche bond issue on the US market, the largest public issue by a European financial issuer on the US$ market since January bn 12y benchmark covered bonds backed by residential and commercial mortgages, the longest maturity bond issued by a Southern European bank since February m 2.5y eurobond senior unsecured issue October: 1.25bn 7y eurobond, the longest maturity for a senior unsecured benchmark issue from a eurozone peripheral bank in the first ten months of 2012 November: 1.25bn 10y benchmark covered bonds mostly backed by residential and commercial mortgages 63

65 Strong Funding Capability: Increase in Short-Term Wholesale Funding bn Short-Term Wholesale Funding (1) % (1) Certificate of deposits, Commercial papers and EMTN puttable 64

66 High Liquidity: Strong Increase in Unencumbered Eligible Assets with Central Banks bn Liquid assets (1) bn Unencumbered eligible assets with Central Banks (2) (net of haircuts) bn bn ~ 20bn held in cash instruments (3) LCR and NSFR well above Basel 3 requirements for Loan to Deposit ratio (4) down to 99.0%, -5.7pp vs and -0.6pp vs bn ECB funding (5) stable in 2012 (1) Stock of own-account eligible assets, including assets used as collateral and excluding eligible assets received as collateral (2) Eligible assets freely available, excluding assets used as collateral and including eligible assets received as collateral (3) Reverse repos with average maturity of 4 days (4) Loans to Customers/Direct Deposits from Banking Business (5) Entirely three-year LTRO 65

67 Strong Capital Base: Core Tier 1 Ratio Further Improved Core Tier 1 ratio Tier 1 ratio Total Capital ratio % % % +110bps +60bps bps Capital ratios after 832mm cash dividends (1) 10.6% pro-forma Common Equity ratio (2) 10.3% EBA capital ratio (3) (vs 9.2% in September 2011 exercise) (1) To be paid in 2013 for 2012 ( 5.0 cents for ordinary shares and 6.1 cents for savings shares) (2) Fully phased-in Basel 3 (based on financial statements considering the total absorption of DTA related to goodwill realignment and the expected absorption before 2019 of DTA on losses carried forward) estimated according to available information; including estimated benefits from optimization of sources and capital requirements and from sovereign risk shock absorption (~65bps) (3) Estimated on the basis of the Core Tier 1 as of and the impact of sovereign risk valuation at fair value (volumes and prices as of ) 66

68 Strong Capital Base: Increase in Core Tier 1 Ratio for the Fifth Consecutive Year % Core Tier 1 ratio bps

69 MIL-BVA /DM Deliberate Low Leverage Strategy in a Volatile Environment Total Tangible Assets/Tangible net Shareholders Equity (1)(2) X % RWA/Total Assets Down from 19.6 at the end of Peer 1 Peer 2 ISP Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer Conservative business model Focused asset growth Easy to re-lever if environment turns positive ( easy to expand, harder to retrench ) (1) Sample: Barclays, BBVA, BNP Paribas, BPCE, Commerzbank, Crédit Agricole SA, Credit Suisse, Deutsche Bank, HSBC, ING, Nordea, Santander, Société Générale, Standard Chartered and UBS (data as of ); UniCredit (data as of ) (2) Net Shareholders Equity including Net Income - net of dividends paid or to be paid - excluding Goodwill and other Intangibles 68

70 Contents Detailed Consolidated P&L Results Liquidity, Funding and Capital Base Asset Quality Divisional Results Other Information 69

71 Solid Non-performing Loans Coverage NPL (1) specific coverage % 42.6% taking into account: 1Q12 Doubtful Loans disposal (1.4%) New Past Due rule (0.9%) 42.7% taking into account: 1Q12 Doubtful Loans disposal (1.3%) New Past Due rule (0.9%) pp (2) (2) Doubtful Loans recovery rate (3) at 147% in the period Doubtful Loans total coverage at 124% (including collateral and guarantees) 1Q12 sale without recourse of 1,640mm of gross Doubtful Loans at Net Book Value (~ 270mm) demonstrates conservative provisioning (1) Doubtful Loans (sofferenze), Substandard Loans (incagli), Restructured (ristrutturati) and Past due (scaduti e sconfinanti; 90 days starting in 2012 vs 180 until ) (2) Pro-forma (3) Repayment on Doubtful Loans/Net book value 70

72 Robust Performing Loans Coverage bn Performing Loans reserve Performing loans coverage % pp ~80bps of countercyclical provision buffer confirmed 71

73 Non-performing Loans: Increase Due To Deteriorated Credit Environment Gross NPL Net NPL (1) (1) (1) (1) Total 42,030 47,775 49,673 Total 22,841 27,411 28,472 Past Due 1,326 3,214 - of which days (2) 1,242 3,244 1,281 Past Due - of which days (2) 1,154 2,891 1,157 2,912 1,193 Restructured 4,032 3,831 3,587 Restructured 3,425 3,107 2,863 Substandard (3) 11,544 13,476 14,480 Substandard (3) 9,171 10,631 11,495 Doubtful (4) 25,128 27,254 28,362 Doubtful (4) 9,091 10,782 11,202 (1) Figures restated to reflect scope of consolidation as of (2) In accordance with regulatory change to classification criteria introduced by Bank of Italy (90 days starting in 2012 vs 180 until ) (3) Incagli (4) Sofferenze. In 1Q12 sale without recourse of 1,640mm of gross Doubtful Loans at Net Book Value (~ 270mm) 72

74 Non-performing Loans: Slowdown in Stock Formation Gross NPL (1) stock Net NPL (1) stock QoQ; mm QoQ; mm 2, % 1,962 1, % 1, % 1,164 1, % 2Q12 vs 1Q12 3Q12 vs 2Q12 4Q12 vs 3Q12 2Q12 vs 1Q12 3Q12 vs 2Q12 4Q12 vs 3Q12 (1) Doubtful Loans (sofferenze), Substandard Loans (incagli), Restructured (ristrutturati) and Past due (scaduti e sconfinanti) 73

75 Non-performing Loans: Decline in Doubtful Loans and Past Due Net Inflow from Performing Loans bn Net inflow of new NPL (1) from Performing Loans % 3Q12 4Q12 Doubtful Loans Substandard Loans Restructured Past Due % 3Q12 4Q Q % 4Q Q Q12 n.m Q % 4Q12 Note: figures may not add up exactly due to rounding differences (1) Doubtful Loans (sofferenze), Substandard Loans (incagli), Restructured (ristrutturati) and Past Due (scaduti e sconfinanti) 74

76 New Doubtful Loans: Decline in Gross Inflow bn Group s new Doubtful Loans (1) gross inflow % BdT C&IB Int. Sub Q12 4Q12 BdT s new Doubtful Loans (1) gross inflow C&IB s new Doubtful Loans (1) gross inflow 3Q12 4Q12 3Q12 4Q12 Total Total Product Companies (2) Product Companies (3) Small Business Mid Corporate Individuals Large Corporate - - SMEs Public Finance - - Note: figures may not add up exactly due to rounding differences (1) Sofferenze (2) Industrial credit (3) Leasing and Factoring 75

77 New Substandard Loans: Increase in Gross Inflow Mainly Due To SMEs and Mid Corporate bn Group s new Substandard Loans (1) gross inflow % BdT C&IB Int. Sub Q12 4Q12 BdT s new Substandard Loans (1) gross inflow C&IB s new Substandard Loans (1) gross inflow 3Q12 4Q12 3Q12 4Q12 Total Total Product Companies (2) Product Companies (3) Small Business Mid Corporate Individuals Large Corporate SMEs Public Finance - - Note: figures may not add up exactly due to rounding differences (1) Incagli (2) Industrial credit (3) Leasing and Factoring 76

78 Cost of Credit: Slight Growth in Italy and Significant Increase in International Subsidiaries Mainly Due To Hungary and Ukraine Cost of credit (1) Bps Excluding Hungary and Ukraine Italy bps Group bps f(x) International Subsidiaries bps (1) Net LLP/Loans 77

79 Loans to Customers: Well-Diversified Portfolio Industrial credit, Leasing, Factoring 12% SMEs 12% Small 6% Business 3% Consumer 6% Finance Commercial Real Estate Breakdown by business area (Data as of ) Repos 4% Large Corporate 7% Mid Corporate Global Banking & 6% Transaction 2% Leveraged Finance 1% 20% 11% 2% Other Residential Mortgages Low risk profile of residential mortgage portfolio 8% Instalment/available income ratio at 38% Average Loan-to-Value equal to 50% Original average maturity equal to ~20 years Residual average life equal to ~12 years Public Finance Foreign banks Breakdown by economic business sectors Loans of the Italian banks and companies of the Group Households 23.7% 23.7% Public Administration 4.6% 4.6% Financial companies 3.7% 4.6% Non-financial companies 50.7% 50.3% of which: 0 0 HOLDING AND OTHER 9.8% 9.5% CONSTRUCTION AND MATERIALS FOR CONSTR. 7.1% 6.9% DISTRIBUTION 6.5% 6.5% SERVICES 5.7% 5.8% UTILITIES 3.1% 3.2% TRANSPORT 3.2% 3.1% METALS AND METAL PRODUCTS 2.5% 2.5% FOOD AND DRINK 1.8% 1.8% AGRICULTURE 1.7% 1.8% MECHANICAL 1.7% 1.6% INTERMEDIATE INDUSTRIAL PRODUCTS 1.4% 1.4% FASHION 1.3% 1.3% ELECTROTECHNICAL AND ELECTRONIC 1.1% 1.1% ENERGY AND EXTRACTION 0.9% 0.8% TRANSPORTATION MEANS 0.7% 0.6% BASE AND INTERMEDIATE CHEMICALS 0.5% 0.6% PUBLISHING AND PRINTING 0.5% 0.5% FURNITURE 0.4% 0.3% OTHER CONSUMPTION GOODS 0.3% 0.3% PHARMACEUTICAL 0.3% 0.3% MASS CONSUMPTION GOODS 0.1% 0.1% WHITE GOODS 0.1% 0.1% Rest of the world 5.8% 5.4% Loans of the foreign banks and companies of the Group 8.6% 8.4% Doubtful Loans 2.9% 3.0% TOTAL 100.0% 100.0% Note: figures may not add up exactly due to rounding differences 78

80 Contents Detailed Consolidated P&L Results Liquidity, Funding and Capital Base Asset Quality Divisional Results Other Information 79

81 Divisional Financial Highlights: Positive Contribution from All Business Units Excluding Hungary and Ukraine Data as of Banca dei Territori Eurizon Capital Corporate & Investment Banking(1) International Subsidiary Banks Corporate Banca Fideuram Centre / Others(2) Total Operating Income ( mm) 10, ,243 2, ,881 Operating Margin ( mm) 4, ,254 1, (436) 8,968 Net Income ( mm) ,253 (190) 160 (547) 1, mm excluding Hungary and Ukraine Cost/Income (%) n.m RWA ( bn) Direct Deposits from Banking Business ( bn) n.m Loans to Customers ( bn) Note: figures may not add up exactly due to rounding differences (1) Including Public Finance (2) Treasury Department, Central Structures, capital not allocated to Business Units and consolidation adjustments 80