2 0 0 5 I N T E R I M R E S U L T S T R A N S I T I O N TO I A S / I F R S

1
2 0 0 5 I N T E R I M R E S U L T ST R A N
S I T I O N TO I A S / I F R S
MILANO, Palazzo Mezzanotte - September 15th, 2005
2
1H 2005 - Results at a Glance
3
1H 2005 Pre-Tax Income - Breakdown

• Pre-tax income shows growth in core businesses
• Retail banking positive contribution mainly
  thanks to NII and credit quality
• Consumer credit in line with budget but weaker
  2Q (-9.6 QoQ)
• Service companies decrease in Infogroups income
  is due to its new repositioning within the Group
• Tax collection services delays in government
  refunds

weight
142.4 mn.
2
8
-4
36
58
Pre-tax income, goodwill excluded B. CR
Firenze, CR Pistoia, CR Spezia, CR Civitavecchia,
CR Orvieto, CR Mirandola
4
Net Interest Income

• Positive contribution from both retail banking
  and consumer credit

B. CR Firenze, CR Pistoia, CR Spezia, CR
Civitavecchia, CR Orvieto, CR Mirandola
5
NII Customer loans

• Increase in average outstandings leads to higher
  contribution margin despite mark-up reduction
• retail banks change in portfolio mix (higher
  mortgage loans weight ? lower mark-up)
• consumer credit less household spending and
  stronger competition

Progressive average outstanding loans
6
NII Customer deposits

• Higher contribution margin due to both volumes
  and mark-down
• current accounts re-pricing
• individuals still lead but corporate mark-down is
  improving

1H 2005
Mark-down change
YoY change
1H 2004
1H 2005
Weight
Total deposits
14,680


15, 568


6.1
12 bp
Retail banks
13,939
14,646


5.1
95
9 bp
Individuals
11,150

11,597
4.0
76
7 bp
Corporates
2,789


3,048


9.3
19
11 bp
Consumer credit
740

922


24.6
5
87 bp
Progressive average outstanding loans
7
Mortgage Loans

• Sustainable volume growth, in line with budget
• stable spread despite stronger competition
• improving quality, far better then the system
• Continued synergies with Findomestic all
  branches operative

B. CR Firenze, CR Pistoia, CR Civitavecchia, CR
Orvieto. Source Assofin
8
Non-Interest Income

• Stable fees on adjusted basis
• positive impact from re-pricing of current
  accounts
• AUM campaigns short term negative impact
  average customer portfolio still comprises
  monetary products

Fees Other income

• 2 YoY PF
• Flat on adj. basis

206
202
9
Operative costs

• Adjusted costs better than business plan. The
  stated values affected by the merger of
  Datacentro and the increase of tax stamps
• YoY comparisons throughout 2005 affected by the
  increase of government tax stamps
• Datacentro costs moved from other op. expenses
  to other administrative costs

10
Customer Loans

• Total customer loans (4.2) in line with budget
• Stable quality and stable market share

Parent company on business territory
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Capital ratios

• Stable Tier 1 ratio as at 30.06.2005
• Findomestic Banca recorded with the equity method
  will strengthen capital ratios

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I A S / I F R SF I R S T T I M E A D O P T I
O N
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First Time Adoption - Criteria

• IAS/IFRS as per EU Commission ratifications
  released up until January 2005. IAS 32 and 39 are
  included.
• Value adjustments recognised in the shareholders
  equity (IFRS 1)

Modification of the existing standards, new
standards and/or changes of interpretation which
could arise may vary FTA impact.
14

• Impatto della FTA sul Patrimonio netto e sul
  Patrimonio di vigilanza

Nota Limpatto della prima applicazione dei
principi IAS/IFRS sul Patrimonio di vigilanza
consolidato e sui coefficienti prudenziali è
stato stimato considerando i filtri prudenziali
indicati dal Comitato di Basilea sul trattamento
dei valori IAS.
15
15

• Impatto della FTA sulla qualità del credito

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16
FTA - Impact at a glance

• No material impact on shareholders equity

42 million
1,193
1,151
Euro million
17

• Raccordo tra Patrimonio netto contabile
  civilistico e IAS (1/2)

(1) La valutazione ha tenuto conto degli
accantonamenti a Fondo rischi su crediti (voce 90
del passivo) esistenti al 31 dicembre 2004, pari
a 24,7 milioni di euro, che sono stati imputati
in diretta diminuzione di tali crediti.
18
18
FTA - Impact Breakdown
The evaluation takes into account provisions
for risks and charges as at 31.12.2004
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A P P E N D I X
20
FTA Impact on balance sheet
21
FTA Impact on balance sheet
31.12.2004 IFRS
New perimeter adj.
31.12.2004
IFRS adj.
Trading financial liabilities
1,286.9
0.0
292.1
1,579.0
Fin. Liabilities recognized at amortized cost
17,160.5
97.8
(1,164.3)
16,094.0
Trading derivatives
0.0
31.1
0.0
31.1
Hedging derivatives
10.6
(0.7)
(1.8)
8.1
Provisions for staff severance pay
172.7
23.1
(8.0)
187.8
Provisions for pensions
170.4
7.9
0.0
178.3
Tax provisions and other fiscal liabilities
126.0
83.7
(39.2)
170.5
Other provisions for risks and charges
77.7
(3.2)
(3.4)
71.1
Put options owned by minority shareholders' of
consolidated companies
0.0
174.7
0.0
174.7
Other liabilities
999.8
20.7
651.8
1,672.3
LIABILITIES
20,004.6


435.1
(272.8)
20,166.9


Minority interests
208.6
(144.9)
23.1
86.8
Share capital and share premium
704.0
0.1
0.0
704.4
Revaluation reserves
0.0
39.5
0.0
39.5
FTA reserve
0.0
(23.8)
0.0
(23.8)
Other reserves
345.1
(11.1)
0.2
334.2
Net profit for the period
102.3
37.4
(0.6)
139.1
SHAREHOLDERS' EQUITY Minority interests
1,151.4


41.9


0.1


1,193.4


TOTAL LIABILITIES
21,364.6


332.1


(249.6)
21,447.1


22
IFRS 1 Sharehold. equity reconciliation
statements 1)
Consob Regulation no. 11971 - Art. 81 bis,
paragraph 1b
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IFRS 1 Sharehold. equity reconciliation
statements 2)
Consob regulations no. 11971 - Art. 81 bis,
paragraph 1b
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IAS/IFRS - Reconciliation Statements 1)
Consob Regulation no. 11971 - Art. 81 bis,
paragraph 1a
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IAS/IFRS - Reconciliation Statements 2)
Consob Regulation no. 11971 - Art. 81 bis,
paragraph 1a
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• Prospetto di riconciliazione dei saldi (art. 81
  bis, 1comma, lettera a), del regolamento
  CONSOB) Conto economico

27
27
Customer loans Evaluation Criteria

• In bonis loans expected losses (EL) have been
  estimated on the basis of PD and LDG of loans
  residual duration as per the following criteria
• 40 risk categories 5 classes x 8 segments
• PD risk category adjusted LGD 18
• Problem loans time-discounted recovery value has
  been determined as follows

28
Put Options

• In the consolidated annual report these
  instruments are classified as a financial
  liability. Based on this classification, put
  options pertaining to minority interests, have
  been recorded with a value equal to the present
  value of the put options themselves. In the
  future, any change in the fair value of the
  financial liability will be accounted for in the
  PL.

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Financial assets - HFS
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2 0 0 5 I N T E R I M R E S U L T ST R A N
S I T I O N TO I A S / I F R S
MILANO, Palazzo Mezzanotte - September 15th, 2005