THE BANCA CARIGE GROUP - Reporting...

THE BANCA CARIGE GROUP

Banca Carige S.p.A. - Cassa di Risparmio di Genova e Imperia

Immobiliare Ettore Vernazza S.p.A.

Columbus Carige Immobiliare S.p.A.99.99%

90.00%

Fondazione CR Genova e Imperia

Galeazzo S.r.l. 100.00%

100.00%Immobiliare Carisa S.r.l.

Instrumental activitiesTrustee activities Insurance activitiesBanking activities Financial activities

Ban

ca C

ari

ge G

rou

p

44.06% 37.99%

0.01%

10% held through own shares

Insurance agents

Carige Assicurazioni S.p.A.

Carige Vita Nuova S.p.A.

98.40%

100.00%1.16% held through own shares.

Carige Asset Management SGR S.p.A.99.50%

Assi90 S.r.l.

37.50%

57.50%

Cassa di Risparmio di Carrara S.p.A.

Cassa di Risparmio di Savona S.p.A.

Centro Fiduciario C.F. S.p.A.76.95%

95.90%

100.00%Argo Finance One S.r.l.

Banca del Monte di Lucca S.p.A.60.00%

100.00%Priamar Finance S.r.l.

90.00%

Banca Cesare Ponti S.p.A.78.75%

Other shareholders

14.98%

CE Participations -

Groupe BPCE

Dafne Immobiliare S.r.l.100.00%

100.00%

60.00% Argo Mortgage S.r.l.

60.00%Argo Mortgage 2 S.r.l.

100.00%Creditis Servizi Finanziari S.p.A.

I.H. Roma S.r.l.

2.97% (*)

Generali Assicurazioni

Carige Covered Bond S.r.l.

60.00%

0.50%

20.00 %

(*) As per the Notification to Consob of 6 October 2009.

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BANCA CARIGE GROUP

INTERIM REPORT ON OPERATIONS AS AT 30 SEPTEMBER 2009

CONTENTS

CONSOLIDATED FINANCIAL HIGHLIGHTS 5 MANAGEMENT OF THE PARENT BANK 6 INTERIM REPORT ON OPERATIONS 7- The real and monetary situation 8- Strategy 9- Business performance 10- Significant events of the first nine months 11- Risk management 13- Major events that occurred after 30 September 2009 and business outlook 13- Information on relations with related parties 14 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 15Consolidated financial statements 16- Consolidated balance sheet 17- Consolidated income statement 18- Statement of consolidated comprehensive income 19- Statement of changes in consolidated shareholders’ equity 20- Consolidated cash flow statement 23Explanatory notes 24

- Accounting policies 25- Area and methods of consolidation 26- Net income from intermediation activities 29- Economic results 46- Dividends distributed by the Parent Bank Banca Carige 51- Insurance activities 52- Transactions with related parties 53- Equity investments 54- Own shares, cash flow statement and shareholders’ equity 54- Resource management 55- Results by economic business sector 57- Risk management 63- The Parent Bank 69- Bank subsidiaries 69- Insurance subsidiaries 74- Financial subsidiaries 76- The other main subsidiaries 78

INTERIM FINANCIAL STATEMENTS OF THE PARENT BANK 79Financial highlights 80Financial statements of the Parent Bank 81- Balance Sheet 82- Income statement 83- Statement of comprehensive income 84- Statement of changes in shareholders’ equity 85- Cash flow statement 88Explanatory notes 89

- Accounting policies 90

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- Net income from intermediation activities 91- Economic results 101- Transactions with related parties 106- Results by economic business sector 107- Shareholders' equity 108

DECLARATION OF THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY’S FINANCIAL REPORTS PURSUANT TO PARAGRAPH 2 OF ART. 154-BIS OF THE CONSOLIDATED LAW ON FINANCE

109

REPORT OF THE INDEPENDENT AUDITORS ON THE LIMITED AUDIT OF THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

111

REPORT OF THE INDEPENDENT AUDITORS ON THE LIMITED AUDIT OF THE INTERIM FINANCIAL STATEMENTS OF THE PARENT BANK

114

REMARKS The following signs are used by convention in the tables: - when the data are nought … when data are not significant

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CONSOLIDATED FINANCIAL HIGHLIGHTS

Situation as at Change %30/9/2009 30/6/2009 31/12/2008 30/9/2008 9/09 9/09

12/08 9/08

BALANCE SHEET (1)

Total assets 34,408,666 33,711,301 31,986,445 30,328,603 7.6 13.5

Funding 24,588,373 24,237,075 22,965,533 21,562,315 7.1 14.0- Direct Deposits (a) 23,485,846 23,711,470 22,164,080 20,475,929 6.0 14.7 * Amounts owed to customers 14,042,180 13,412,317 12,005,439 10,766,712 17.0 30.4 * Securities in issue 8,829,550 9,685,828 9,578,795 9,142,064 -7.8 -3.4 * Liabilities at fair value (2) 614,116 613,325 579,846 567,153 5.9 8.3- Amounts owed to banks 1,102,527 525,605 801,453 1,086,386 37.6 1.5

Indirect deposits (b) 21,132,629 20,919,953 20,960,268 21,905,132 0.8 -3.5- Assets under management 11,497,235 10,942,776 10,438,552 10,947,485 10.1 5.0- Assets in custody 9,635,394 9,977,177 10,521,716 10,957,647 -8.4 -12.1

Financial Intermediation Activities (FIA) (a+b) 44,618,475 44,631,423 43,124,348 42,381,061 3.5 5.3

Investments 30,257,478 29,300,415 27,450,047 26,251,790 10.2 15.3- Loans to customers (3) 21,924,619 21,854,345 21,119,889 19,558,913 3.8 12.1- Loans to banks (3) 654,025 832,045 986,953 1,258,780 -33.7 -48.0- Securities portfolio 7,678,834 6,614,025 5,343,205 5,434,097 43.7 41.3

Capital and reserves 3,604,929 3,514,342 3,336,250 3,487,217 8.1 3.4


12/08 9/08

INCOME STATEMENT (1)

Gross operating income 804,082 550,699 1,030,590 760,521 5.7Net income from financial and insurance management 714,994 491,026 910,675 658,995 8.5Operating income from ordinary activities before taxes 251,039 168,439 308,747 235,176 6.7Profit for the period 163,346 111,708 205,504 163,048 0.2

RESOURCES (4)

Number of branches 643 643 643 603 - 6.6Insurance agencies 385 383 378 375 1.9 2.7Number of bank employees 5,492 5,496 5,523 5,264 -0.6 4.3Number of bank and insurance employees 5,881 5,888 5,906 5,635 -0.4 4.4

FINANCIAL RATIOSOperating costs

Gross operating income 58.51% 59.22% 58.94% 56.08%

Operating profit from ordinary activities before taxes/Capital and reserves 6.96% 4.79% 9.25% 6.74%

ROE 4.53% 3.18% 6.16% 4.68%ROE (5) 5.70% 4.03% 7.65% 5.75%ROAE (6) 4.71% 3.26% 6.90% 5.34%ROAE (5) (6) 5.88% 4.09% 8.79% 6.75%Earnings per share (in euro) - basic 0.089 0.060 0.118 0.094 - diluted 0.089 0.060 0.118 0.094

RISK ASSETS AND REGULATORY RATIOS (7)

Total Risk-Weighted Assets (1) 19,948,910 19,537,608 19,096,988 18,315,138 4.5 8.9

Core Tier 1/Total Risk-Weighted Assets 6.90% 7.04% 7.08% 8.17%Tier 1 capital / RWA (7) 7.70% 7.86% 7.91% 8.17%Regulatory capital/Total weighted assets (7) 10.04% 10.23% 10.56% 10.10%

(1) Figures in thousands of euro(2)

(3) Gross of value adjustments and net of debt securities classified as L&R.(4) Statistics of the end of period.(5) Net of the AFS reserve established against the revaluation of the equity investment in the Bank of Italy.(6) Net profit on average shareholders' equity (Return On Average Equity).(7) Figures relating to the regulatory capital and the capital requirements as at 30/06/2009 are the official figures and therefore they differ from the management data

shown in the half-year report. Figures regarding the regulatory capital and the capital requirements as at 30/9/2009 and 30/9/2008 result from accounting and management estimates, as the official consolidated figures (Information form "1") are provided only in June and December. Capital ratios have been calculated based on supervisory regulations in force from time to time.

Carige Vita Nuova liabilities, designated at fair value and relating to products for which investment risk is borne by the insured, are not included in this table.

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MANAGEMENT OF THE PARENT BANK

BOARD OF GENERAL MANAGEMENT BOARD OF STATUTORYDIRECTORS AUDITORS CHAIRMAN GENERAL MANAGER CHAIRMAN Giovanni Berneschi* Alfredo Sanguinetto Andrea Traverso DEPUTY CHAIRMAN DEPUTY GENERAL STANDING AUDITORS Alessandro Scajola * MANAGER Massimo Scotton (COMMERCIAL) Antonio Semeria DIRECTORS Carlo Arzani (1) Piergiorgio Alberti * SUBSTITUTE AUDITORS Piero Guido Alpa DEPUTY GENERAL Adriano Lunardi Jean-Jacques Bonnaud MANAGER Luigi Sardano Luca Bonsignore (ADMINISTRATION AND Cesare Castelbarco Albani RESOURCES) AUDIT FIRM Remo Angelo Checconi * Giacomo Ottonello Deloitte & Touche SpA Bruno Cordazzo Gabriele Galateri di Genola DEPUTY GENERAL Luigi Gastaldi * MANAGER Pietro Isnardi Alain Jean Pierre Lemaire

(CREDIT AND WEALTH MANAGEMENT)

Paolo Cesare Odone * Mario Cavanna Renata Oliveri * Jean-Marie Paintendre * DEPUTY GENERAL Guido Pescione Mario Venturino

(GOVERNANCE AND CONTROL)

Ennio La Monica

*Member of the Executive Committee

The Board of Directors was appointed by the Ordinary Shareholders’ Meeting of 29 April 2009 for the financial years 2009-2010-2011. The Executive Committee was appointed by the Board of Directors on 11 May 2009 with term of office up to 31 October 2010. The Board of Statutory Auditors was appointed by the Ordinary Shareholders’ Meeting of 29 April 2008 for the financial years 2008-2009-2010. The mandate to the Audit Firm was granted by the Ordinary Shareholders’ Meeting of 20 April 2006 for the financial years 2006-2007-2008-2009-2010-2011. On 11 May 2009, in compliance with the provisions of art. 154 bis, paragraph 1 of Legislative Decree 58/1998 and art. 31 of the Articles of Association, the Board of Directors resolved the appointment, effective from 12 May 2009, of Daria Bagnasco, the Director responsible for Group Planning and Financial Statements, as the Officer in charge of preparing the company’s accounting documents, having verified the requirements of integrity and experience. (1) With the role of Substitute Deputy General Manager.

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INTERIM REPORT ON OPERATIONS

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THE REAL AND MONETARY

SITUATION

During the third quarter of the year the analysis of the macro economic variables and the consumer and business expectations showed signs of improvement in the economic situation, driven above all by the exceptional economic policy measures put in place in all the industrialised countries to combat the crisis, which has now been underway for two years. The prices of raw materials and oil are on the increase and the stabilisation of property values is being accompanied by an, albeit modest, rise in the demand for homes. Also, despite still being highly volatile, stock markets are recovering and the spreads between interbank and free risk rates have returned towards pre-crisis levels. Problem situations still remain, however, especially in the credit and labour market, as reflected respectively by the increase in the bad loans/lending ratio and the rise in the unemployment rate. Global GDP for 2009 is in any case expected to fall with a downturn in international trade of around 12.5%, which will largely drive the contraction in the economy. In the United States the weakness of domestic demand led to a 3.8% fall in GDP as at June. Net real exports provided a greater contribution than expected, mainly as a result of the fall in imports. Household expenditure, despite recovering from June onwards, fell sharply on an annual basis. A major contributing factor was the deterioration of the labour market: between December 2007 and August 2009 the number of people in employment fell by 7 million and the unemployment rate in September stood at 9.8%. Positive signs emerged from the property market, which recorded a 3.6% increase in average prices between April and July, as well as growth in residential construction permits. Industrial production increased between July and August, signalling a reversal of the falling trend seen at the end of 2007. The inflation rate, which has been negative since January, is expected to decrease by an average of 0.3% for 2009. As regards the emerging countries, Brazil in particular is suffering from restriction in credit in the international markets, which its exporting companies depend on, and the repatriation of capital by the foreign businesses based in the country. Russia recorded a sharp downturn due

to the effects on production of the problems of the financial system and low oil prices. China and India, on the other hand, benefited from the favourable structural situation and the expansive monetary policies. In China in particular GDP continued to grow at rates of over 8%, with a sharp increase in investments, sustained by a program of public-sector interventions. Industrial production was up by 11% on the year, whilst foreign trade was still down. The EU economy performed worse than the United States, primarily due to the contraction in investments and exports. In June GDP fell by 4.8%, a slowdown in the decline thanks to the economic growth in France and Germany, essentially attributable to the fiscal incentives aimed at sustaining domestic demand. In August industrial production revealed a downward trend of 15.3%, despite having increased by 1% on the previous month, whilst retail sales recorded an annual fall of 2.4% (-0.3% on the previous month). The unemployment rate fell by 9.6% (3.2 million more unemployed in twelve months) with the highest level in Spain and the lowest in Germany. There were encouraging signs in the form of the business and consumer confidence indexes, both of which improved. Consumer prices recorded an annual fall as at September of 0.3% (-0.4% in France and -0.5% in Germany) continuing the deflationary trend seen in the previous months. However, core inflation (net of energy and non-processed foods) increased by 1.1%. Italy also saw a reduction in production albeit at a slower rate thanks to the expansive fiscal and monetary policies. In order to help businesses in difficulty, the Ministry of Economy and Finance, the ABI (Italian Banking Association) and Business Associations signed an agreement at the beginning of August for the suspension of debts owed by small and medium sized enterprises to the credit system, with the aim of providing financial breathing space to companies with adequate financial prospects, capable of demonstrating their going concern status (moratorium on loans). Estimated GDP for the first half of 2009 showed a fall of 6% compared with the same period in 2008. The low level of use of facilities and the structural excess in the supply of real estate penalised investments, whereas household expenditure, despite suffering from the deterioration in the labour market, withstood the impact of the crisis better, thanks to the fall in oil prices, the lower level of household debt, the social welfare measures and the scrapping

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incentives. The unemployment rate rose to 7.4% in the second quarter of 2009, an increase of 6.7% compared with the same quarter of 2008 and stable compared with the previous quarter. Industrial production fell by 21% during the first eight months of 2009 compared with the same period in 2008, with capital and intermediate goods performing the worst. Inflation, after having reached a minimum in July, returned to moderate growth, albeit at low levels. The decrease in the consumer prices index from 3.9% in September 2008 to 0.4% in September 2009 and the low interest rates softened the negative impact of the crisis on household income, but did not stop the contraction in consumption: retail sales for the first five months of 2009 slackened by 2.2% compared with the same period in 2008, with the large-scale retail trade (-0.5%) and the food sector (-1.8%) holding up better than small businesses (-3.3%) and the non-food sector (-2.3%). Over the same period foreign trade showed a fall of 23.8% in exports and 25.4% in imports, with a negative trade balance of euro 1.4 billion, due entirely to non-EU countries. Indeed, EU countries showed a surplus of euro 1.8 billion. Public finance worsened: the public sector cash requirements for the first nine months of 2009 amounted to euro 72.6 billion, an increase of around euro 33 billion on the first nine months of 2008 partly due to a reduction in revenue from direct taxes (-2.9% on an annual basis in the period January-July). For the current year the deficit/GDP ratio is forecasted to increase to 115.1% and the net debt as a percentage of GDP is expected to rise to 5.3%. Monetary policy continued to follow the objective of creating favourable credit conditions, by keeping reference rates low. In the United States, the FED kept the policy interest rate at the minimum levels reached last December (range of 0 to 0.25%). The ECB, in its Governing Council meeting of 8 October 2009, left the reference rate unchanged at 1%, the lowest level since the introduction of the single currency, after having reduced it by 1.5 percentage points in four successive rate changes in the first half of 2009. Money market rates showed a decreasing trend: the 3-month Euribor rate fell by around 2.5 percentage points, from 3.38% in December to 0.75% in September and the 6-month Euribor fell from 3.45% to 1.02%. The rates of Government securities recorded a considerable drop: returns on 6-month BOTs (treasury bills) in particular fell from 1.91% in December to 0.55% in

September. The Rendistato (yield on Government securities) showed a more moderate decrease, from 4.13% to 3.31%. On the exchange rate market the Euro appreciated against the dollar, with an average monthly rate in September of 1.457 (1.397 at the end of 2008). In the same month, the UK sterling/euro rate averaged 0.892, whereas the average exchange rates against the Swiss franc and the Japanese yen stood at 1.515 and 133.1 respectively. With regard to banking intermediation, direct deposits settled at steady figures (+9.9% as at September), with constant growth in deposits (+6.7%; +7.6% as at December 2008), against a slowdown in bonds (+14.8%; +20.4% as at December) and a fall in repurchase agreements (almost -40% as at August) and foreign deposits (-14% as at August). Lending, shaped by the difficult economic situation, showed a significant slowdown (+1.4% on a trend basis as at September 2009; +4.9% as at December 2008), with a slightly better trend in loans to households and non-financial companies (+1.5%). In terms of maturities, short-term loans fell by 1.7% whereas medium/long-term loans grew by 2.8%. Net bad loans continued to rise, with a bad loans/loans ratio of 1.67% compared with 1.24% in December. Bank interest rates continued to fall. The average rate on loans to households and non-financial companies as at September stood at 3.93% (6.09% at the end of 2008) and the rate on deposits at 0.83% (1.99% as at December 2008), with a further reduction in spreads.

STRATEGY The strategic goal of the Group, in line with the path started at the beginning of the 1990s, is the creation of value for all stakeholders in the medium/long-term, with a particular focus on the development of relations with customers and balancing dimensional growth, key requirements for maintaining a significant role in the domestic banking system. The Carige Group confirmed the mission of consolidating its position as a banking, financial and welfare and insurance group at national level: - with a widespread presence in Italy,

significant coverage in certain areas of the

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country and the core centre in Liguria, where it is characterised by a particular focus on the development of relations with local entities (multilocalism),

- focused on the family, small and medium sized enterprise, craftsmen, merchant segments and local public entities,

- able to distinguish itself for the quality of service offered through an integrated multichannel approach and a progressive qualitative development of resources and structures, also leveraging on the widest use of technology.

In line with the strategic goal and in order to fully realise this mission, strategies have been developed for: − an increased level of productivity, efficiency

and profitability; − a growth in traded volumes, maintaining an

adequate level of capitalisation; − risk protection and management.

The strategy pursued by the Group and the results achieved were assessed favourably in the period by international rating agencies. The most recent ratings attributed to the Group are shown in the table below:

BANCA CARIGE RATINGS

Date short-term long-term BFSR (1) (2) Individual (2) Support (3)

Fitch December 2008 F1 A - B/C 3Moody's October 2008 (4) P-1 A2 C- - -Standard & Poor's March 2009 A2 A- - - -

(2) BFS ratings express the intrinsic strength and solidity of a bank, as well as its financial reliability given the bank's assets. Ratings range from A to E.(3) Support ratings indicate the likelihood of the Government or other public entity, or shareholders, stepping in to support the bank in the event ofcrisis. Ratings range from 1 to 5.

(1) Bank Financial Strength Ratings.

(4) Date relative to the last credit opinion issued by the rating agency.

BUSINESS PERFORMANCE Despite a recessionary macroeconomic scenario, with sharp drops in reference rates and subsequent compression of banking activity spreads, in the first nine months of 2009 the Carige Group maintained a significant level of profitability, recording growth in pre-tax profits of 6.7% and a 0.2% increase in net profits compared with the first nine months of 2008. During the period, thanks also to the contribution from business units acquired in 2008 from the Intesa Sanpaolo Group (79 branches) and Unicredit Group (40 branches), the positive trend in traditional trading continued, characterised by growth in direct deposits (+14.7% year on year)- sustained in particular through current accounts and deposits (+39.9% year on year) - which made it possible to maintain a significant degree of liquidity and to finance the growth in loans (+12.1%) which showed an increase, especially in medium/long-term loans to companies. There was also a steady placement of bancassurance products (+30.5%).

In light of the above, together with the overall result of financing (euro 35.8 million, compared with euro -25.6 million as at 30 September 2008), this made it possible to counteract the negative effects of the spread shrinkage and increase gross operating income (+5.7%). The Group also maintained capitalisation levels, as at the end of the first nine months, significantly higher than the levels required by the supervisory legislation: the estimate of the consolidated capital ratios calculated on the basis of the standard Basel 2 method, showed a Core Tier 1 Ratio of 6.90%, a Tier 1 Ratio (T1R) of 7.70% and a Total Capital Ratio (TCR) of 10.04% compared with the regulatory minimums for T1R and TCR of 4% and 8% respectively. In the Liguria network loans to customers, at euro 9,361 million, increased by 16.5% on an annual basis; amounts owed to customers stood at euro 6,770 million (+26.6%), securities in issue and financial liabilities designated at fair value amounted to euro 4,313 million (+1.6%) and FIA (financial intermediation activities) totalled euro 22,278 million (+2%); gross operating income, at euro 360.9 million, increased by 2.6%; net of value adjustments income from financial operations reached euro

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333.9 million and operating costs decreased by 1.7% to euro 157.6 million. In the network outside Liguria loans to customers stood at euro 10,374 million (+10.6%), amounts owed to customers totalled euro 6,081 million (+18%), securities in issue amounted to euro 2,197 million (+11.3%) and FIA (financial intermediation activities) totalled euro 15,844 million (+6.8%); the gross operating income stood at euro 344.2 million (+12.5%), income from financial operations reached euro 283.2 million (+8.9%) and operating costs increased by 15.5% to euro 205.7 million. Shifting our attention to customer segments, the gross operating income increased considerably in the Corporate segment (+17% compared with the first nine months of 2008), against more contained growth in the Private/Affluent and Retail segments, given that the profitability of direct deposits, especially of amounts owed to customers, felt the effects of the reduction in spreads even though volumes increased. With regard to net income from financial and insurance operations, the Corporate segment recorded income of euro 131.1 million (+8.5%), the Retail segment euro 290.4 million, essentially stable with respect to September 2008, and the Private/Affluent segment euro 158.7 million (+6.4%). As regards operating costs, they increased by 2% in the Private/Affluent segment, by 2.2% in the Corporate segment and by 11.5%. in the Retail segment.

SIGNIFICANT EVENTS OF THE FIRST NINE MONTHS

On 23 January, having received authorisation from the Bank of Italy, the Parent Bank subscribed: - the increase in the share capital of

subsidiary Carige Assicurazioni from euro 148.1 million to euro 162.9 million, resolved by the Extraordinary Shareholders’ Meeting of 15 July 2008, for a total value of euro 30 million, including share premium;

- the increase in the share capital of Carige Vita Nuova from euro 61.4 million to euro 84.8 million, resolved by the Extraordinary Shareholders’ Meeting of 15 July 2008, for a total value of euro 45 million, including share premium.

On 26 January, Banca Carige’s Board of Directors - as part of the review of its international presence - resolved the closure of the Representative Office in London and Mandate Offices in Peking and Moscow. On 4 February, with regard to the appeal submitted by Banca Carige against the monetary administrative sanction of euro 420 thousand imposed on 7 August 2008 by the AntiTrust Authority (on the grounds of an unfair commercial practice, pursuant to Legislative Decree 206/2005, in relation to the so-called “mortgage portability”), the Regional Administrative Court of Lazio issued a provision under which it accepted the appeal and partly overturned the decision of the AntiTrust Authority; in September the Authority filed an appeal against this provision with the Council of State. On 23 February, the Parent Bank’s Board of Directors resolved favourably regarding measures to strengthen the shareholders’ equity of the subsidiary Banca del Monte di Lucca, in addition to the charging to capital of valuation reserves for this Bank and for Cassa di Risparmio di Savona. Following the authorisation from the Bank of Italy: - the Extraordinary Shareholders’ Meeting of

Banca del Monte di Lucca, held on 17 June 2009, resolved a free increase in share capital, from euro 18.7 million to euro 24 million, registered on 25 June 2009, in addition to a paid increase, from euro 24 million to euro 29.2 million, for a total amount of euro 10 million, including share premium, which shall be subscribed by shareholders by 31 December 2009;

- the Extraordinary Shareholders’ Meeting of Cassa di Risparmio di Savona, held on 25 June 2009, resolved the free increase in share capital, from euro 95.2 million to euro 111.2 million, through the use of valuation reserves of the same amount, registered on 30 June 2009.

On 23 March, Carige’s Board of Directors - in conformance with Bank of Italy regulation pursuant to Circular 263/2006 which adopted the provisions contained in the New Capital Agreement (so-called Basel 2) - approved “The Model for Governance of the Public Information Process - Pillar 3”, published on the company website on 30 April. On 6 April, in order to maximise the commercial effectiveness in respect of the Private segment and with a view to the optimisation of

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specialised, highly customer-oriented services, the new Private Banking structure became operational, as part of the Parent Bank’s “Distribution” area. On 29 April Carige’s Ordinary Shareholders’ Meeting approved the document concerning Remuneration Policies and the financial statements for year ended at 31 December 2008, and appointed the new Board of Directors for the three year period 2009-2011. The Extraordinary Shareholders’ Meeting also approved the changes to the articles of association, made to incorporate the recent supervisory regulations on the organisation and corporate governance; similar resolutions relating to changes to the articles of association were adopted by the Shareholders’ Meetings of the other Group Banks. On 11 May Banca Carige’s Board of Directors appointed the elective members of the Executive Committee, joining the Chairman Giovanni Berneschi and the Deputy Chairman Alessandro Scajola, as members by right, with term of office expiring on 31 October 2010. At the same meeting, the Board also appointed the following persons as members of the internal Committees: - Internal Audit Committee: Piero Guido Alpa,

Jean-Jacques Bonnaud, Cesare Castelbarco Albani, and Bruno Cordazzo;

- Remuneration Committee: Piero Guido Alpa, Luca Bonsignore, Cesare Castelbarco Albani, and Pietro Isnardi;

- Appointments Committee: Giovanni Berneschi, Piero Guido Alpa, Luca Bonsignore, Cesare Castelbarco Albani, Remo Angelo Checconi, and Gabriele Galateri di Genola.

On the same date, the Board appointed the following persons as new members of the Banca Carige Supervisory Body pursuant to Legislative Decree 231/2001: Jean-Jacques Bonnaud, Director, Adalberto Alberici, Maurizio Fazzari, Andrea Baldini and Andrea Garaventa as expert members, plus two Carige Executives that are, from time to time, in charge of Internal Audits and Risk Management. At the same meeting, the Board of Directors, with the prior approval of the Board of Statutory Auditors and having verified the requirements of integrity needed by Board Directors and the possession of a wealth of experience gained in managerial roles in the planning and control sectors as well as in administration, accounting and finance, effective as of 12 May 2009, resolved to appoint Daria Bagnasco, Director responsible for the Planning Structure and

Group Financial Statements, as the Officer in charge of preparing the company’s accounting documents, pursuant to art. 154 bis of the Consolidated Law on Finance and art. 31 of the Articles of Association. On 15 June, once the statutory and internal regulation structures were approved at the Ordinary and Extraordinary Shareholders’ Meetings - in light of the “Supervisory Provisions regarding the organisation and corporate governance of Banks” issued by the Bank of Italy on 4 March 2008 - the Board of Directors approved the Corporate Governance Plan, which contains the choices and reasons regarding the organisational structures of the Bank and the Group, with special focus on the control system profiles. With regard to the purchase of Banca Nazionale del Lavoro S.p.A. shares in 2005, for which - as detailed in the Report on the Financial Statements for the year ended at 31 December 2008 - there are ongoing legal proceedings before the Magistrate in charge of preliminary hearings in Milan and Consob has imposed a monetary administrative sanction, while the Public Prosecutor’s Office of Rome has recently announced the conclusion of the preliminary investigations. On 6 August, the Bank of Italy issued an authorising provision in relation to the resolution of 8 April 2009 by Banca Carige’s Board of Directors, regarding the restructuring of the Group’s property segment, to be carried out through: − the merger by incorporation of Immobiliare

Ettore Vernazza SpA and Galeazzo Srl with Banca Carige,

− the division of part of the capital of Columbus Carige Immobiliare SpA, represented by assets that are instrumental in the Group’s activities, with the assignment to a new company that will later be incorporated into Banca Carige.

With regard to the above transaction, on 28 August, the Board approved the final wording of the partial merger and division plans subsequently approved by the Shareholders’ Meetings of the respective Companies. On 13 August, the Group adhered to the Notice shared by the Ministry of Economy and Finance, the ABI (Italian Banking Association) and Business Associations, for the suspension of debts owed by small and medium sized enterprises to the credit system, the goal of which is to give some financial breathing space

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to companies experiencing difficulties in the current economic climate. On 28 August the Board of Directors resolved to approve the submission to the Extraordinary Shareholders’ Meeting, subject to the authorisation from the Bank of Italy, of the proposal to grant the Board the power to issue convertible bonds, also in tranches and including subordinated instruments, for a maximum amount of euro 400 million, with consequent share capital increase to service the conversion for a maximum nominal amount of euro 400 million. On 21 September, with respect to the above, the Board granted the Chairman the authority to call a specific Extraordinary Shareholders’ Meeting. Following on from the resolution adopted previously (27 July) by the Parent Bank’s Board of Directors: - On 18 September the Shareholders’

Meeting of the subsidiary Carige Vita Nuova SpA resolved a share capital increase of euro 80 million, including share premium, to be offered to the Sole Shareholder, specifying that the related subscription, subject to authorisation by the Supervisory Authority, should take place by 31 December 2009.

- On 29 September Carige Vita Nuova completed the purchase of an additional 35% of the share capital of the subsidiary Assi 90 Srl. Also, on 2 and 6 October, Assi 90 Srl sold the minority shareholdings held in several insurance intermediation companies to third parties.

On 21 September the Board of Directors, in relation to the Program for the issue of covered bonds for a maximum amount of euro 5 billion, approved the sale to the special purpose vehicle Carige Covered Bond Srl, in accordance with the master sale agreement entered into on 14 November 2008, of further eligible assets for a total amount of around euro 1 billion.

RISK MANAGEMENT

In the Carige Group, any policies related to the assumption of risks are set by the Board of Directors of the Parent Bank at the moment of the preparation of strategic planning and the annual budget. The Parent Bank performs orientation and supervisory functions as regards all risks, in particular by managing, in an integrated context, the Pillar 1 and Pillar 2 risks, in accordance with the provisions contained in the Supervisory Instructions of the Bank of Italy (Circ. No. 263 dated 27 December 2006 as amended). The Banks of the Group operate within specific limits of independence and avail themselves of their own first level control structures. The risk analyses are supported not only by regulatory models, but by more advanced methodologies which have made it possible, in time, to expand the range of risks monitored and to improve the assessment of the capital adequacy, from both a regulatory and managerial perspective. For details of risk management, please refer to the paragraph “Risk management” in the Explanatory notes of the Consolidated Interim Financial Statements.

MAJOR EVENTS THAT OCCURRED AFTER

30 SEPTEMBER 2009 AND BUSINESS OUTLOOK

On 28 October the placement was made in the institutional market – with value date 5 November - of the first public issue of Carige covered bonds for an amount of euro 1 billion. The issue, managed by a leading group of international banks, UBS Investment Bank, Natixis, Deutsche Bank, HSBC Group and Unicredit Group, was subscribed by asset management companies (41% of the total), retail banks (26%), central banks (23%) and insurance companies and pensions funds (around 10%). A total of 94% of the subscriptions were made by Italian, German, French, English and Finnish investors. The remaining 6% was split between the other major European countries.

13

On 3 November the Extraordinary Shareholders’ Meeting resolved to grant the Board of Directors the authority to issue convertible bonds (with the option for the Company to make a reimbursement, also in advance, in shares and/or cash) to be offered to the shareholders and the holders of the convertible bonds constituting the loan “Banca CARIGE 1.50% 2003-2013 hybrid subordinated issue with reimbursement convertible into ordinary shares”, for a maximum amount of euro 400 million, and to carry out the consequent share capital increase to service the conversion. This bond issue will enable the Bank, in the current difficult economic climate, to achieve the twin objective of raising funds from the market and maintaining adequate levels of capitalisation, both now and in the future. The funds raised with the covered bonds and the convertible bonds will be used to guarantee further support to businesses and families and to continue the Group’s consolidation and growth. In the remaining part of the year the persistence of the crisis and its effects could cause volatility and tensions in the financial markets, a reduction in household income and a stagnation in investments by companies, worsening their creditworthiness. This situation, combined with a contraction in margins and potentially unfavourable changes in credit sector

legislation, could impact the Group’s economic, financial and equity operations. Despite these factors and subject to events that cannot currently be foreseen the Group believes that it will continue its growth. On 6 November 2009 the merger by incorporation into Carige SpA of Immobiliare Ettore Vernazza SpA and Galeazzo Srl was completed.

INFORMATION ON RELATIONS WITH

RELATED PARTIES

The Group maintains relations with Banca Carige shareholders who are able to exercise a significant influence, subsidiaries and other related parties regulated under market conditions. Please note that in the first nine months, no transactions with related parties subject to information to the public were carried out. The operations carried out in the period fall within the ordinary activities of the Group and do not present the relevance requirements as regards the impact on the financial statements. Asset and liability transactions with related parties are detailed in the Explanatory Notes to the Consolidated Interim Financial Statements.

14

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

15

CONSOLIDATED FINANCIAL STATEMENTS

16

CONSOLIDATED BALANCE SHEET

ASSETS (figures in thousands of euro)

Change %

30/9/09 30/6/09 31/12/08 30/9/089/09

12/089/09 9/08

10 -CASH AND CASH EQUIVALENTS 242,363 263,630 289,723 220,058 (16.3) 10.1 20 -FINANCIAL ASSETS HELD FOR TRADING 794,578 822,284 709,294 1,524,600 12.0 (47.9) 30 -FINANCIAL ASSETS DESIGNATED AT FAIR

VALUE 676,198 670,414 717,250 687,644 (5.7) (1.7) 40 -AVAILABLE-FOR-SALE FINANCIAL ASSETS 5,270,371 4,168,194 3,001,637 2,652,616 75.6 98.7 50 -FINANCIAL ASSETS HELD TO MATURITY 505,270 510,024 460,144 99,509 9.8 … 60 -LOANS TO BANKS 911,014 1,087,803 1,248,818 1,536,157 (27.0) (40.7) 70 -LOANS TO CUSTOMERS 21,644,936 21,603,385 20,916,355 19,311,234 3.5 12.1 80 -HEDGING DERIVATIVES 73,831 63,242 56,922 22,665 29.7 … 100 -EQUITY INVESTMENTS 61,045 58,122 55,067 56,680 10.9 7.7110 -TECHNICAL RESERVES CHARGED ON

REINSURERS 179,856 174,802 171,403 159,497 4.9 12.8120 -TANGIBLE ASSETS 1,117,287 1,119,370 1,125,680 1,130,080 (0.7) (1.1)130 -INTANGIBLE ASSETS 1,709,395 1,705,321 1,701,750 1,582,025 0.4 8.1

including: - goodwill 1,639,311 1,639,657 1,639,576 1,524,106 (0.0) 7.6

140 -TAX ASSETS 270,767 352,750 395,181 313,496 (31.5) (13.6)a) current 57,814 96,802 112,347 91,639 (48.5) (36.9)b) advanced 212,953 255,948 282,834 221,857 (24.7) (4.0)

160 -OTHER ASSETS 951,755 1,111,960 1,137,221 1,032,342 (16.3) (7.8)TOTAL ASSETS 34,408,666 33,711,301 31,986,445 30,328,603 7.6 13.5

LIABILITIES (figures in thousands of euro)

Change %

30/9/09 30/6/09 31/12/08 30/9/089/09

12/089/09 9/08

10 -AMOUNTS OWED TO BANKS: 1,102,527 525,605 801,453 1,086,386 37.6 1.5 20 -AMOUNTS OWED TO CUSTOMERS: 14,042,180 13,412,317 12,005,439 10,766,712 17.0 30.4 30 -SECURITIES IN ISSUE 8,829,550 9,685,828 9,578,795 9,142,064 (7.8) (3.4) 40 -FINANCIAL LIABILITIES FROM TRADING 98,504 105,924 114,470 77,683 (13.9) 26.8 50 -FINANCIAL LIABILITIES DESIGNATED AT FAIR

VALUE 1,299,552 1,292,229 1,305,183 1,270,743 (0.4) 2.3 60 -HEDGING DERIVATIVES 233,701 167,561 116,290 25,541 … … 80 -TAX LIABILITIES 266,684 281,321 244,136 308,041 9.2 (13.4)

(a) current 48,762 54,320 37,882 81,069 28.7 (39.9)(b) deferred 217,922 227,001 206,254 226,972 5.7 (4.0)

100 -OTHER LIABILITIES 1,220,187 1,308,897 1,459,158 1,351,101 (16.4) (9.7)110 -STAFF TERMINATION INDEMNITY 99,003 99,976 102,233 96,835 (3.2) 2.2120 -PROVISIONS FOR RISKS AND CHARGES: 371,189 370,633 390,555 366,735 (5.0) 1.2

a) pensions and similar obligations 312,318 322,051 322,365 322,248 (3.1) (3.1)b) other provisions 58,871 48,582 68,190 44,487 (13.7) 32.3

130 -TECHNICAL RESERVES 3,047,281 2,804,509 2,292,606 2,139,553 32.9 42.4140 -VALUATION RESERVES 568,300 473,690 372,349 523,019 52.6 8.7160 -CAPITAL INSTRUMENTS 1,178 1,178 1,179 1,264 (0.1) (6.8)170 -RESERVES 232,409 236,140 159,164 159,579 46.0 45.6180 -ADDITIONAL PAID-IN CAPITAL 1,012,742 1,013,034 1,013,259 1,013,376 (0.1) (0.1)190 -CAPITAL 1,790,300 1,790,300 1,790,299 1,789,979 0.0 0.0210 -MINORITY INTERESTS (+/-) 30,033 30,451 34,373 46,944 (12.6) (36.0)220 -PROFIT (LOSS) FOR THE PERIOD (+/-) 163,346 111,708 205,504 163,048 (20.5) 0.2 TOTAL LIABILITIES 34,408,666 33,711,301 31,986,445 30,328,603 7.6 13.5

17

CONSOLIDATED INCOME STATEMENT

INCOME STATEMENT (figures in thousands of euro)

Change %30/9/09 30/6/09 31/12/08 30/9/08 9/09 9/08

10 -INTEREST INCOME AND SIMILAR REVENUES 895,886 634,249 1,491,426 1,087,723 (17.6) 20 -INTEREST EXPENSES AND SIMILAR CHARGES (341,839) (248,976) (680,717) (500,837) (31.7) 30 -NET INTEREST INCOME 554,047 385,273 810,709 586,886 -5.6 40 -COMMISSION INCOME 227,587 146,995 291,763 213,106 6.8 50 -COMMISSION EXPENSES (25,463) (16,941) (38,578) (28,724) (11.4) 60 -NET COMMISSIONS 202,124 130,054 253,185 184,382 9.6 70 -DIVIDENDS AND OTHER SIMILAR REVENUES 10,302 9,825 14,818 12,445 (17.2) 80 -NET INCOME FROM TRADING ACTIVITIES 12,459 4,035 (62,976) (54,924) … 90 -NET INCOME FROM HEDGING ACTIVITIES 2,252 2,324 (544) 382 … 100 -PROFIT (LOSS) ON DISPOSAL OR REPURCHASE OF: 23,961 18,065 15,916 15,879 50.9

a) loans 1,823 1,080 3,902 2,425 (24.8) b) available-for-sale financial assets 6,837 1,577 10,214 10,266 (33.4) d) financial liabilities 15,301 15,408 1,800 3,188 …

110 -NET VALUE ADJUSTMENT ON FINANCIAL ASSETS DESIGNATED AT FAIR VALUE -1,063 1,123 (518) 15,471 …

120 -GROSS OPERATING INCOME 804,082 550,699 1,030,590 760,521 5.7130 -NET VALUE ADJUSTMENTS DUE TO IMPAIRMENT OF: (77,346) (56,133) (102,795) (80,294) -3.7

a) loans (60,139) (39,613) (76,929) (75,336) (20.2) b) available-for-sale financial assets (17,257) (16,651) (28,041) (4,205) … d) other financial assets 50 131 2,175 (753) …

140 -NET INCOME FROM FINANCIAL MANAGEMENT 726,736 494,566 927,795 680,227 6.8150 -NET PREMIUMS 1,135,091 784,598 927,061 626,910 81.1160 -BALANCE OF OTHER EXPENSES/REVENUES FROM INSURANCE

MANAGEMENT (1,146,833) (788,138) (944,181) (648,142) 76.9

170 -NET INCOME FROM FINANCIAL AND INSURANCE MANAGEMENT 714,994 491,026 910,675 658,995 8.5

180 -ADMINISTRATIVE COSTS: (484,546) (333,807) (623,102) (450,142) 7.6a) staff costs (1) (296,278) (204,404) (375,472) (266,540) 11.2b) other administrative costs (1) (188,268) (129,403) (247,630) (183,602) 2.5

190 -NET PROVISIONS FOR RISKS AND CHARGES (3,778) (2,773) (2,245) 3,322 … 200 -DEPRECIATION OF TANGIBLE ASSETS (17,560) (11,570) (21,320) (14,904) 17.8210 -AMORTIZATION OF INTANGIBLE ASSETS (15,175) (9,607) (17,387) (12,209) 24.3220 -OTHER OPERATING EXPENSES AND REVENUES 50,620 31,612 56,577 47,406 6.8 230 -OPERATING COSTS (470,439) (326,145) (607,477) (426,527) 10.3240 -PROFIT (LOSS) FROM EQUITY INVESTMENTS 6,495 3,583 5,422 2,686 … 270 -PROFIT (LOSS) FROM DISPOSAL OF INVESTMENTS (11) (25) 127 22 … 280 -OPERATING PROFIT (LOSS) FROM ORDINARY ACTIVITIES

BEFORE TAXES 251,039 168,439 308,747 235,176 6.7290 -INCOME TAXES FOR THE PERIOD (85,133) (53,895) (95,844) (67,060) 27.0300 -

PROFIT (LOSS) FROM ORDINARY ACTIVITIES AFTER TAXES 165,906 114,544 212,903 168,116 -1.3320 -PROFIT (LOSS) FOR THE PERIOD 165,906 114,544 212,903 168,116 -1.3330 -MINORITY INTERESTS 2,560 2,836 7,399 5,068 (49.5) 340 -PROFIT (LOSS) FOR THE PERIOD ATTRIBUTABLE TO THE

PARENT BANK 163,346 111,708 205,504 163,048 0.2

Earnings per share (in euro) - basic 0.089 0.060 0.118 0.094 - diluted 0.089 0.060 0.118 0.094

(1) By letter no. 8309 dated 5 January 2009 ("Regulations on bank financial statements"), the Bank of Italy has established, inter alia that conventionally fees paid to the statutoryauditors have to be recorded under sub-item "a) staff costs" and not under item "b) other administrative expenses". Figures as at September 2008 have been adequately reclassifiedto allow a homogeneous comparison among the different periods.

18

STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME

STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME (in thousands of euro)

Change 9/09-09/0830/9/09 30/6/09 31/12/08 30/9/08 absolute %

10 PROFIT (LOSS) FOR THE PERIOD 165,906 114,544 212,903 168,116 (2,210) (1.3)Other income components after taxes

20 Available-for-sale financial assets 224,276 117,501 (232,522) (132,624) 356,900 … 30 Tangible assets 0 0 0 0 0 … 40 Intangible assets 0 0 0 0 0 … 50 Foreign investment hedge 0 0 0 0 0 … 60 Cash flow hedge (9,667) 2,305 (56,310) (5,200) (4,467) 85.970 Currency differences 0 0 0 0 0 … 80 Non-current assets held for sale 0 0 0 0 0 … 90 Actuarial profits (losses) on defined benefit plans 0 0 0 0 0 …

100 Share of the valuation reserves of equity investmentsdesignated at equity 0 0 (74) 132 (132) (100.0)

110 Total other income components after taxes 214,609 119,806 (288,906) (137,692) 352,301 … 120 TOTAL PROFITABILITY (Item 10+110) 380,515 234,350 (76,003) 30,424 350,091 … 130 Total consolidated profitability attributable to minority interests 3,033 3,116 7,019 4,834 (1,801) (37.3)140 Total consolidated profitability attributable to the

Parent bank 377,482 231,234 (83,022) 25,590 351,892 …

Figures in thousands of euro

19

STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY

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Capital: 1,801,901 11,602 - 1,801,901 2,120 (123) 1,803,898 13,598a) ordinary shares 1,626,634 11,602 1,626,634 2,120 (123) 1,628,631 13,598b) other shares 175,267 175,267 175,267 - Additional paid-in capital 1,018,387 5,128 1,018,387 (489) 1,017,898 5,156Reserves: 165,918 6,754 - 165,918 59,098 - 88 18,206 (4,018) - - - - - 239,292 6,883a) profits 101,678 6,480 - 101,678 59,098 88 20 (4,018) 156,866 6,609b) other 64,240 274 64,240 - 18,186 82,426 274

Valuation reserves 375,856 3,507 - 375,856 - (20,314) 214,609 570,151 1,851Capital instruments 1,179 - 1,179 (1) 1,178 - Own shares (17) (17) (17) 2 (15) (15)Profit (Loss) for the period 212,903 7,399 212,903 (59,098) (153,805) 165,906 165,906 2,560

Shareholders' equity 3,576,127 34,373 - 3,576,127 - (153,805) 88 (476) (4,141) - - - - 380,515 3,798,308 30,033

The opening balance takes into account the reclassification between profit reserves and capital reserves carried out in the statement of changes in shareholders' equity as at 31/12/2008.

Transactions on shareholders' equity

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Changes in the year

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Capital: 1,400,446 10,364 - 1,400,446 (10) 401,465 1,801,901 11,602a) ordinary shares 1,225,098 10,364 1,225,098 (10) 401,546 1,626,634 11,602b) other shares 175,348 175,348 (81) 175,267 - Additional paid-in capital 466,233 5,169 466,233 (41) 552,195 1,018,387 5,128Reserves: 117,331 7,679 - 117,331 58,499 - (8,529) (1,309) - - - - - (74) 165,918 6,754a) profits 87,092 6,431 (35,384) 51,708 58,499 (8,529) - 101,678 6,480b) other 30,239 1,248 35,384 65,623 - (1,309) (74) 64,240 274

Valuation reserves 664,859 3,886 - 664,859 - (171) (288,832) 375,856 3,507Capital instruments 1,219 - 1,219 (40) 1,179 - Own shares (17) (17) (17) - (17) (17)Profit (Loss) for the period 212,305 7,492 212,305 (58,499) (153,806) 212,903 212,903 7,399

Shareholders' equity 2,862,376 34,573 - 2,862,376 - (153,806) (8,580) 952,140 - - - - - (76,003) 3,576,127 34,373

With respect to the statement of changes in the shareholders' equity published in the 2008 consolidated half-year report a reclassification between profit reserves and other reserves has been carried out. This reclassification is shown in the column "Change in opening balances".


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Capital: 1,400,446 10,364 - 1,400,446 (7) 401,145 1,801,584 11,605a) ordinary shares 1,225,098 10,364 1,225,098 (7) 401,226 1,626,317 11,605b) other shares 175,348 175,348 (81) 175,267 - Additional paid-in capital 466,233 5,169 466,233 (30) 552,312 1,018,515 5,139Reserves: 117,331 7,679 - 117,331 58,499 - 6,557 (1,309) - - - - - 132 181,210 21,499a) profits 87,092 6,431 (35,384) 51,708 58,499 6,557 - 116,764 21,224b) other 30,239 1,248 35,384 65,623 - (1,309) 132 64,446 275

Valuation reserves 664,859 3,886 - 664,859 (137,825) (365) (137,824) 388,845 3,650Capital instruments 1,219 - 1,219 45 1,264 - Own shares (17) (17) (17) - (17) (17)Profit (Loss) for the period 212,305 7,492 212,305 (58,499) (153,806) 168,116 168,116 5,068

Shareholders' equity 2,862,376 34,573 - 2,862,376 - (153,806) (131,305) 951,828 - - - - - 30,424 3,559,517 46,944With respect to the statement of changes in the shareholders' equity published in the consolidated report as at September 2008 a reclassification between profit reserves and other reserves has been carried out. This reclassification is shown in the column "Change in opening balances".


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CONSOLIDATED CASH FLOW STATEMENT

Direct methodAmount

A. OPERATING ACTIVITIES 30/9/09 30/6/09 31/12/08 30/9/08

1. Management 937,464 662,192 992,696 698,890

- interest income received (+) 841,253 629,415 1,483,264 1,129,376- interest expenses paid (-) (375,811) (284,728) (640,522) (470,014)- dividends and similar revenues (+) 10,302 9,825 14,818 12,445- net commissions (+/-) 202,124 130,054 253,185 184,382- staff costs (-) (253,603) (170,520) (307,656) (226,096)- net premiums collected 1,146,456 781,918 935,475 638,797- other insurance revenues and expenses (+/-) (494,467) (327,666) (471,225) (396,818)- other costs (-) (215,582) (153,314) (484,728) (302,887)- other revenues (+) 105,989 75,607 312,675 179,160- taxes and duties (-) (29,197) (28,399) (102,590) (49,455)

2. Liquidity generated/absorbed by financial assets (2,118,132) (1,593,192) (3,866,021) (2,286,016)- financial assets held for trading (73,580) (112,926) 394,117 62,435- financial assets designated at fair value 41,144 46,836 (72,375) 28,723- available-for-sale financial assets (1,972,422) (1,022,633) (619,611) (330,155)- loans to customers (739,847) (725,227) (3,589,152) (2,053,724)- loans to banks: at sight (34,834) (50,270) (86) 176,886- loans to banks: other loans 366,895 211,502 524,307 58,264- other assets 294,512 59,526 (503,221) (228,445)

3. Cash generated/absorbed by financial liabilities 1,360,288 1,128,617 3,173,115 1,682,677- amounts owed to banks: at sight 744,848 (403,890) 149,794 (62,328)- amounts owed to banks: other (441,155) 131,487 (1,723,823) (1,234,610)- amounts owed to customers 2,025,040 1,400,157 2,441,152 1,202,512- securities in issue (679,301) 171,630 2,306,643 1,844,804- financial liabilities from trading 4,983 6,018 (8,130) (46,795)- financial liabilities designated at fair value (30,681) (26,754) 6,192 (12,020)- other liabilities (263,446) (150,031) 1,287 (8,886)

Net liquidity generated/absorbed by operating activities 179,620 197,617 299,790 95,551

B. INVESTING ACTIVITIES

1. Liquidity generated by 27,424 22,989 67,295 17,560- equity investment disposals 12 12 - 15,324- dividends received on equity investments 516 516 6,444 1,887- disposal/reimbursement of financial assets held to maturity 25,764 21,379 159 99- tangible asset disposals 1,132 1,082 30,742 250- subsidiary and business unit disposals - - 29,950 -

2. Liquidity absorbed by (96,458) (92,894) (1,116,540) (932,753)- equity investment acquisitions (10) - (96) (15,727)- acquisitions of financial assets held to maturity (63,176) (73,428) - (1)- tangible asset acquisitions (10,310) (6,367) (80,942) (48,539)- intangible asset acquisitions (22,962) (13,099) (61,452) (22,312)- business unit acquisitions - - (974,050) (846,174)

Net liquidity generated/absorbed by investing activities (69,034) (69,905) (1,049,245) (915,193)

C. FUNDING ACTIVITIES- own share issues/acquisitions (4,141) - 398,849 398,852- additional paid-in capital - - 550,415 550,934- dividend distribution and others (153,805) (153,805) (153,806) (153,806)

Net liquidity generated/absorbed by funding activities (157,946) (153,805) 795,458 795,980

NET LIQUIDITY GENERATED/ABSORBED DURING THE PERIOD (47,360) (26,093) 46,003 (23,662)

KEY:

(+) generated(-) absorbed


RECONCILIATION

Amount

30/9/09 30/6/09 31/12/08 30/9/08

Cash and cash equivalents at the beginning of the period 289,723 289,723 243,720 243,720

Total net liquidity generated/absorbed during the period (47,360) (26,093) 46,003 (23,662)

Cash and cash equivalents at period end 242,363 263,630 289,723 220,058


Balance sheet items

23

EXPLANATORY NOTES

24

ACCOUNTING POLICIES

The Interim Report on Operations of the Banca Carige Group for the third quarter of 2009 was drawn up in accordance with IAS 34 (Interim financial statements). The international accounting principles IAS/IFRS and the related interpretations (SIC/IFRIC), officially approved by the European Union and in force on 30 September 2009, were applied for the valuation and measurement of the accounting balances, and where necessary, the directions referred to in the Bank of Italy Circular no. 262 dated 22 December 2005 were observed (financial statements for banks: schemes and rules for preparation). As regards the phases of classification, recording, valuation and cancellation of asset and liability items involved in preparing this Report, as with the methods of entering costs and revenues, the same accounting standards used in preparation of the financial statements as at 31 December 2008 were applied, with the exception of what is detailed below. Accounting principles that had an impact on the preparation of the Interim Report on Operations:

- IAS 1 – Presentation of financial statements: in September 2007 the IASB published the new version of IAS 1 – Presentation of financial statements (approved with Regulation EC no. 1274/2008 of 17 December 2008), whose application is obligatory for all financial statements pertaining to financial years starting 1 January 2009. The main difference from the previous version concerns the introduction of the statement of comprehensive income for which those preparing the financial statements were granted the option of presenting items that make up the income statement and other profit components (“other comprehensive income”) recorded directly in shareholders’ equity for transactions different from those entered into with shareholders, in a single summary statement or in two separate statements; the Group opted for the presentation of two statements: the income statement and the statement of comprehensive income. Instead, transactions entered into with shareholders, together with the comprehensive income result, are shown in

the statement of changes in shareholders’ equity;

- IFRS 8 – Operating Segments: in November 2006, the IASB published IFRS 8 - Operating Segments (approved with Regulation EC no. 1358/2007 of 21 November 2007), replacing IAS 14 - Sector information and whose application is obligatory for financial statements pertaining to financial years starting on or after 1 January 2009. The new regulations place the focus on the definition of sectors that are the subject of information according to the so-called “management approach”, or by making exclusive reference to the internal organisational structure and reports provided periodically to the “highest operational decision-making level” for the adoption of strategic decisions: therefore, the distinction between the primary and secondary sector disappears.

In addition, effective obligatorily for all financial statements pertaining to financial years starting on or after 1 January 2009, the following principles (IAS/IFRS) and interpretations (SIC/IFRIC) will be applied to this Interim Financial Report as well as the relative changes that have no significant impact on the preparation of the report:

- IAS 23 – Financial charges (Reg. EC no. 1260/2008 dated 10 December 2008);

- IFRS 2 – Share-based payments (Reg. EC no. 1261/2008 dated 16 December 2008);

- IFRIC 13 - Customer loyalty programs (Reg. EC no. 1262/2008 dated 16 December 2008)

- IFRIC 14 – The limit on a defined benefit asset, minimum contribution requirements and their interaction (Reg. 1263/2008 of 16 December 2008);

- Amendments to IAS 32 – Financial instruments: presentation and IAS 1 presentation of financial statements – relative to puttable financial instruments and obligations arising on liquidation (Reg. EC no. 53/2009 dated 21 January 2009);

- Amendments to IFRS 1 – First-time adoption of IFRS and IAS 27, Reg. EC no. 69/2009 dated 23 January 2009);

- “Improvements” made to IFRS within the framework of the annual improvement process aimed at simplifying and clarifying international accounting

25

principles IAS/IFRS (Reg. EC no. 70/2009 dated 23 January 2009);

- IFRIC 16 – Hedges of a net investment in a foreign operation (Reg. EC 460/2009 of 4 June 2009);

- IFRIC 15 – Agreements for the construction of real estate (Reg. 636/2009 of 22 July 2009).

Lastly, please note that during the third quarter of 2009 further amendments were approved to IAS 39 – Financial instruments and IFRS 7 – Financial instruments: Disclosures, concerning the “Reclassification of financial assets – Effective date and transition” (Reg. EC no. 824/2009 of 9 September 2009), which specifies that this regulation shall apply from 1 July 2008. The amendment was also approved to IAS 39 “Financial instruments: Recognition and measurement” entitled “Eligible hedged items” (Reg. EC no. 839/2009 of 15 September 2009) that will be applied to financial statements for reporting periods beginning on or after 30 June 2009. THE ACQUISITION OF 40 BRANCHES FROM THE UNICREDIT GROUP With reference to the acquisition, effective from 1 December 2008, by Banca Carige, of business units in the form of 40 branches from the UniCredit Group (that as at 30 September 2009 had intermediated a total of euro 1,491.5 million), the following should be noted:

- on 21 November 2008, a provisional price of euro 138.4 million was paid;

- the provisional price, as contractually agreed, was subject to upward or downward revision, based on the Direct and Indirect Deposits of the business units acquired at the effective date;

- the final price communicated by the Transferring Banks and accepted by Banca Carige on 31 March was a total of euro 27.0 million less (euro 111.4 million);

- the transfer equity situations were defined on 5 August with the signing of notary documents regarding the determination of the final price for the business unit sale and the subsequent regulation of imbalances in favour of Banca Carige;

- the acquisition was accounted for in accordance with the provisions of IFRS 3 – Business combinations and so:

- the acquisition was recorded on the date in which control over acquired assets was obtained;

- the cost of the operation was determined as the sum of the fair value, at acquisition date, of the acquired assets and liabilities and any ancillary charges directly attributable to the acquisition, such as the external costs incurred in completion of the transaction, including, for example, fees paid to auditors, experts, legal counsels as well as advisory fees incurred;

- goodwill stood at euro 111.4 million, equal to the price agreed by the parties, plus euro 3.3 million in directly attributable ancillary charges for a total of euro 114.7 million. This could, however, still change to an insignificant extent following the definition of directly attributable ancillary charges. Provisional accounting of goodwill conforms to the provisions of IFRS 3, paragraph 62.

The Consolidated Interim Financial Statements contained in this Interim Financial Report have been audited by the company Deloitte & Touche SpA.

AREA AND METHODS OF

CONSOLIDATION

1. EQUITY INVESTMENTS IN WHOLLY-OWNED SUBSIDIARIES AND SUBSIDIARIES SUBJECT TO JOINT CONTROL Based on the IAS/IFRS principles, the area of consolidation includes all subsidiaries, whether held directly or indirectly: therefore, even companies not classified as credit, financial or instrumental institutions (i.e. dissimilar activities) have been consolidated on a line-by-line basis. The concept of control applied is that set out in IAS 27. During the first nine months of 2009 the area of consolidation did not change with respect to the area established for the preparation of the financial statements as at 31 December 2008.

26

Please note that on 29 September 2009 Carige Vita Nuova SpA purchased an additional 35% of the share capital of the subsidiary Assi 90 Srl for the consideration of euro 5.6 million and

consequently the shareholding owned by Carige Vita Nuova SpA has now increased to 57.5% whilst the 37.5% shareholding owned by Carige Assicurazioni SpA has remained unchanged.

Availability of votes (2) (3)

Holding company% Shareholding Actual % Potential %

A. CompaniesA.1 Consolidated line-by-lineBanking group 1. Banca CARIGE SpA Genoa 2. Cassa di Risparmio di Savona SpA Savona 1 A1.1 95.90 95.90 4.10 3. Cassa di Risparmio di Carrara SpA Carrara 1 A1.1 90.00 4. Banca del Monte Lucca SpA Lucca 1 A1.1 60.00 5. Banca Cesare Ponti SpA Milan 1 A1.1 78.75 78.75 21.25 6. Carige Asset Management SGR SpA Genoa 1 A1.1 99.50

A1.19 0.50 7. Creditis Servizi Finanziari SpA Genoa 1 A1.1 100.00 8. Centro Fiduciario SpA Genoa 1 A1.1 76.95

A1.2 20.00 9. Argo Finance One Srl Genoa 1 A1.1 100.0010. Priamar Finance Srl Genoa 1 A1.1 100.0011. Argo Mortgage Srl Genoa 1 A1.1 60.0012. Argo Mortgage 2 Srl Genoa 1 A1.1 60.0013. Carige Covered Bond Srl Genoa 1 A1.1 60.0014. Columbus Carige Immobiliare SpA Genoa 1 A1.1 99.99

A1.15 0.0115. Galeazzo srl Genoa 1 A1.1 100.0016. Immobiliare Ettore Vernazza SpA (4) Genoa 1 A1.1 90.00 100.0017. Immobilire CARISA Srl Savona 1 A1.2 100.00

Insurance companies18. Carige Assicurazioni SpA (4) Milan 1 A1.1 98.40 99.5619. Carige Vita Nuova SpA Genoa 1 A1.1 100.00

Other companies20. Dafne Immobiliare Srl Milan 1 A1.18 100.0021. I. H. Roma Srl Milan 1 A1.19 100.0022. Assi 90 Srl Genoa 1 A1.18 37.50

A1.19 57.50A.2 Consolidated proportionally

Key

(1) Type of relationship:

1 = majority of voting rights at ordinary shareholders’ meeting

2 = dominant influence at ordinary shareholders’ meeting

3 = agreements with other shareholders

4 = other forms of control

5 = single management pursuant to article 26, paragraph 1 of Legislative Decree 87/92

6 = single management pursuant to article 26, paragraph 2 of Legislative Decree 87/92

7 = joint control

(2) Availability of voting rights at ordinary shareholders’ meeting, distinguishing between actual and potential

(3) Figure entered only if different from the equity investment share

(4) The percentage of actual availability of votes differs from the equity investment share as it is

calculated on the capital excluding own shares.

Name of the companiesShareholding relationship

Type of

relations

hip

(1)

Head offices

With regard to operations, the subsidiaries can be divided into banking (Banca Carige SpA, Cassa di Risparmio di Savona SpA, Cassa di Risparmio di Carrara SpA, Banca del Monte di Lucca SpA, Banca Cesare Ponti SpA), asset management (Carige Asset Management SGR SpA), financial (Creditis Servizi Finanziari SpA), trust companies (Centro Fiduciario SpA), special purpose vehicles for securitisation transactions (Argo Finance One Srl, Priamar

Finance Srl, Argo Mortgage Srl, Argo Mortgage 2 Srl), special purpose vehicles for covered bond issue transactions (Carige Covered Bond Srl), insurance (Carige Vita Nuova Spa, Carige assicurazioni SpA) real estate (Immobiliare Ettore Vernazza Srl, Galeazzo Srl, Columbus Carige Immobiliare SpA, Immobiliare Carisa Srl, Dafne Immobiliare Srl and I.H. Roma Srl) and insurance agencies (Assi 90 Srl).

27

With regard to the four companies established for the same number of securitisation transactions - Argo Finance One, Priamar Finance, Argo Mortgage and Argo Mortgage 2 – and to the company Carige Covered Bond please note that they have all been consolidated in these financial statements on a line-by-line basis. With regard to the securitisation of Banca Carige’s performing loans carried out by Argo Mortgage 2 in 2004, as the transaction does not fully satisfy the conditions of the substantial transfer to third parties of related risks and rewards, consolidation was carried out on the basis of the company’s segregated assets. The consolidated interim financial statements have been prepared using: - the draft interim financial statements of the

Parent Bank and of the other consolidated companies as at 30 September 2009, approved by their respective Boards of Directors and prepared in accordance with the approved IAS/IFRS in force;

- reporting packages prepared by the companies that did not adopt the IAS/IFRS and approved by the respective Management Bodies.

There are no subsidiaries excluded from the area of consolidation. The liquidation process regarding Savona 2000 in fact concluded with its removal from the Register of Companies on 14 January 2009. Companies for which shares with voting rights have been received as a form of credit guarantee rather than as a means of exercising control over the companies under review were also excluded from the area of consolidation.

2. OTHER INFORMATION Associates that are entities in which the Group has significant influence were valued according to the equity method.

Availability of votes

Holding company % Shareholding Actual % Potential %A. Companies consolidated with the equity method

1. Autostrada dei Fiori SpA Savona Banca Carige SpA 16.62Cassa di Risparmio di

Savona SpA 4.00 2. Recina Servizi SpA Rome Assi 90 Srl 25.00


Head offices

Companies in which the Group exerts a significant influence that are not considered to be significant have been valued at cost, in accordance with the general principles set out in the framework. Those companies with balance totals of less than euro 10 million, and provided that the total of the companies excluded does

not exceed euro 50 million, have been classified as minor subsidiaries, in accordance with the provisions on consolidated supervisory reporting established in the Bank of Italy’s thirteenth update dated 25 January 2006 to its circular no. 115 of 7 August 1990.

Availability of votes

Holding company % Shareholding Actual % Potential %

1. Assimilano Srl Milan Assi 90 Srl 45.00 2. Sport e Sicurezza Srl Florence Carige Ass.ni SpA 25.00

Carige V. N. SpA 25.00 3. Nuova Erzelli Srl Genoa Banca Carige SpA 40.00 4. Consorzio per il Giurista di Impresa Scrl Genoa Banca Carige SpA 50.00 5. World Trade Center Genoa SpA in liquidation Genoa Banca Carige SpA 20.32


Head offices

28

INTERMEDIATION ACTIVITIES

As at 30 September 2009, total Financial In-termediation Activities on behalf of cus-tomers (FIA) – direct and indirect deposits – amounted to euro 44,618.5 million, a 3.5% in-crease compared to December 2008 and up 5.3% on a YoY basis.

Direct deposits stand at 23,485.8 million, an increase of 6% from the start of the year and 14.7% compared to September 2008; indirect deposits equal 21,132.6 million, substantially stabile over nine months (+0.8%) and a de-creased over twelve months (-3.5%). Indirect deposits represent 47.4% of total FIA and are composed of assets under manage-ment, for 54.4%, and assets in custody, for the remaining 45.6%.

FINANCIAL INTERMEDIATION ACTIVITIES (figures in thousands of euro)


12/08 9/08Total (A+B) 44,618,475 44,631,423 43,124,348 42,381,061 3.5 5.3

Direct deposits (A) 23,485,846 23,711,470 22,164,080 20,475,929 6.0 14.7 % on Total 52.6% 53.1% 51.4% 48.3%Indirect deposits (B) 21,132,629 20,919,953 20,960,268 21,905,132 0.8 -3.5 % on Total 47.4% 46.9% 48.6% 51.7% - Assets under management 11,497,235 10,942,776 10,438,552 10,947,485 10.1 5.0 % on Total 25.8% 24.5% 24.2% 25.8% % on Indirect deposits 54.4% 52.3% 49.8% 50.0% - Assets in custody 9,635,394 9,977,177 10,521,716 10,957,647 -8.4 -12.1 % on Total 21.6% 22.4% 24.4% 25.9% % on Indirect deposits 45.6% 47.7% 50.2% 50.0%

Total funding, which includes direct deposits from customers (euro 23,485.8 million) and banks (euro 1,102.5 million), amounted to euro 24,588.4 million, up in both over nine months and on a YoY basis, by 7.1% and 14% respec-tively. Direct deposits increased by 6% from the be-ginning of the year and 14.7% in twelve months, sustained by the growth in both amounts owed to customers, at euro 14,042.2 mil-lion (17% in nine months and 30.4% in twelve months) and securities in issue at euro 8,829.6 million, decreasing by 7.8% and 3.4% respectively in the nine and twelve months re-spectively, mainly in relation to the expiry at the beginning of the year of about 900 million of bonds part of the EMTN programme and under-signed by institutional investors. Short-term deposits (euro 14,166.1 million), ac-counting for 60.3% of the aggregate, rose by

16.4% from the start of the year and 29.7% from September 2008, driven in particular, by the success of the new online deposit account, “Contoconto”, while the medium/long-term component (euro 9,319.7 million) increased by 6.8% and 2.5% in nine and twelve months re-spectively. The liabilities designated at fair value (euro 614.1 million, +5.9% compared with De-cember, and +8.3% compared to September 2008) are mainly comprised of structured bonds, placed through Poste Italiane; they do not include the liabilities at fair value of Carige Vita Nuova, related to those insurance products the investment risk of which rests on the insured. Amounts owed to banks totalled euro 1,102.5 million, with an increase of 37.6% in the first nine months of the year, and of 1.5% on a YoY basis.

29

FUNDING (figures in thousands of euro)Situation as at

30/9/09 30/6/09 31/12/08 30/9/08 9/09 9/0912/08 9/08

Total (A+B) 24,588,373 24,237,075 22,965,533 21,562,315 7.1 14.0

Direct deposits (A) 23,485,846 23,711,470 22,164,080 20,475,929 6.0 14.7Amounts owed to customers 14,042,180 13,412,317 12,005,439 10,766,712 17.0 30.4 current accounts and free deposits 13,845,354 13,185,670 11,522,358 9,894,488 20.2 39.9 repurchase agreements 25,282 55,283 292,028 575,429 -91.3 -95.6 term deposits 24,951 26,077 33,759 42,019 -26.1 -40.6 loans 3,371 3,408 11,433 130,391 -70.5 -97.4 funds managed on behalf of third parties 126 126 128 144 -1.6 -12.5

commitments to repurchase own equity instruments 25,765 25,552 25,127 24,921 2.5 3.4

other deposits 117,331 116,201 120,606 99,320 -2.7 18.1Securities in issue 8,829,550 9,685,828 9,578,795 9,142,064 -7.8 -3.4 bonds 8,643,421 9,470,225 9,344,042 8,932,739 -7.5 -3.2 other securities 186,129 215,603 234,753 209,325 -20.7 -11.1Liabilities at fair value (1) 614,116 613,325 579,846 567,153 5.9 8.3 bonds 614,116 613,325 579,846 567,153 5.9 8.3short term 14,166,121 13,564,077 12,167,499 10,918,033 16.4 29.7 % on Total 60.3 57.2 54.9 53.3medium-long term 9,319,725 10,147,393 9,996,581 9,557,896 -6.8 -2.5 % on Total 39.7 42.8 45.1 46.7

Amounts owed to banks (B) 1,102,527 525,605 801,453 1,086,386 37.6 1.5Deposits of central banks 24,066 25,004 - 59,521 … -59.6Current accounts and free deposits 15,811 18,064 210,106 81,926 -92.5 -80.7Term deposits 141,297 101,896 296,042 590,709 -52.3 -76.1Repurchase agreements 603,006 60,187 - 65,414 … …Loans 318,347 320,454 295,298 288,814 7.8 10.2Other - - 7 2 -100.0 -100.0

Change %

(1) Carige Vita Nuova liabilities, designated at fair value and relating to products for which risk is borne by the insured, are not included in this table.

Liguria’s contribution to direct deposits stood at 55.4% (55.7% at December and 57.2% at Sep-tember 2008 when the 40 branches had not yet been purchased from the Unicredit Group). Lombardy recorded the second biggest contribu-

tion with 9.1% (8.8% at December and at Sep-tember 2008). Tuscany was third with an 8.8% share, followed by Veneto (6.3%) and Lazio (6%).

DIRECT DEPOSITS (1) - GEOGRAPHICAL DISTRIBUTION (2) (figures in thousands of euro)

Situation as at

30/9/09 30/6/09 31/12/08 30/9/08% % % %

Liguria 10,890,663 55.4% 10,670,491 55.2% 10,295,330 55.7% 9,725,901 57.2%Lombardy 1,789,362 9.1% 1,817,561 9.4% 1,627,059 8.8% 1,491,253 8.8%

Tuscany 1,732,179 8.8% 1,732,872 9.0% 1,751,295 9.5% 1,500,935 8.8%

Veneto 1,232,332 6.3% 1,205,128 6.2% 1,164,622 6.3% 1,079,596 6.3%

Latium 1,187,536 6.0% 1,159,837 6.0% 1,121,021 6.1% 1,150,521 6.8%

Sicily 1,016,813 5.2% 926,668 4.8% 930,916 5.0% 620,870 3.6%

Piedmont 764,420 3.9% 784,054 4.1% 706,493 3.8% 643,633 3.8%

Emilia Romagna 331,784 1.7% 357,928 1.9% 286,579 1.5% 231,288 1.4%

Apulia 269,573 1.4% 247,977 1.3% 250,712 1.4% 236,569 1.4%

Sardinia 222,361 1.1% 207,111 1.0% 151,952 0.8% 152,681 0.9%

Marches 104,901 0.5% 101,240 0.5% 97,753 0.5% 90,978 0.5%

Valle d'Aosta 49,929 0.2% 50,684 0.2% 43,589 0.2% 37,304 0.2%

Umbria 40,040 0.2% 40,920 0.2% 38,859 0.2% 21,759 0.1%

Total Italy 19,631,893 99.8% 19,302,471 99.8% 18,466,180 99.8% 16,983,288 99.8%Abroad 32,218 0.2% 30,144 0.2% 31,100 0.2% 28,095 0.2%

Total Italy + Abroad 19,664,111 100.0% 19,332,615 100.0% 18,497,280 100.0% 17,011,383 100.0%

Other items (3) 3,821,735 4,378,855 3,666,800 3,464,546

Total direct deposits 23,485,846 23,711,470 22,164,080 20,475,929

(2) Figures per branch province.

(1) Items 20, 30 and 50 of Liabilities and Shareholders' equity. Carige Vita Nuova liabilities, designated at fair value and relating to products for which investment risk is borne bythe insured, are not included in this table.

(3) Bonds issued under the EMTN programme, bonds issued and placed through the BancoPosta network, other bonds issued by the SPV relating to the securitization of loans, anddeposits from the "contoconto" on line deposit account.

69.1% of amounts owed to customers, equal to 9,703.7 million, is due to families whose share

over the total increases each year by over 5 per-centage points compared to a decrease in all

30

the other sectors. The share of non-financial businesses and personal businesses decreased by 19.9% (Euro 2,790 million) (21% in Decem-ber and 22.3% in September 2008); public bodies intermediated Euro 644.7 million (4.6%

of the aggregate), private social bodies and non classified entities Euro 477.4 million and finan-cial businesses Euro 348.3 million (3.4% and 2.5% respectively).

DIRECT DEPOSITS (1) - DISTRIBUTION BY BUSINESS SEGMENT (figures in thousands of euro)

30/09/09 30/06/09 31/12/08 30/9/08

% % % %

Amounts owed to customers 14,042,180 13,412,317 12,005,439 10,766,712Public Administration 644,692 4.6% 677,842 5.1% 642,994 5.4% 627,763 5.8%Financial businesses 348,348 2.5% 354,347 2.6% 384,267 3.2% 363,798 3.4%Non-financial businesses and personal businesses 2,789,981 19.9% 2,720,607 20.3% 2,516,711 21.0% 2,396,047 22.3%Private social bodies 477,442 3.4% 428,654 3.2% 477,121 4.0% 473,213 4.4%Families 9,703,697 69.1% 9,147,707 68.2% 7,920,302 66.0% 6,848,000 63.6%Total residents 13,964,160 99.4% 13,329,157 99.4% 11,941,395 99.5% 10,708,821 99.5%Non residents 78,020 0.6% 83,160 0.6% 64,044 0.5% 57,891 0.5%Total 14,042,180 100.0% 13,412,317 100.0% 12,005,439 100.0% 10,766,712 100.0%

Securities in issue 8,829,550 9,685,828 9,578,795 9,142,064

Liabilities at fair value 614,116 613,325 579,846 567,153

TOTAL DIRECT DEPOSITS 23,485,846 23,711,470 22,164,080 20,475,929

(1) Items 20, 30 and 50 of Liabilities and Shareholders' equity. Carige Vita Nuova liabilities, designated at fair value and relating to products for which investment risk is borne bythe insured, are not included in this table.

Indirect deposits amounted to 21,132.6 mil-lion, essentially stable from the start of the year (+0.8%) but down over the twelve month period (-3.5%) in relation to the trend of the assets in custody. Assets under management, standing at euro 11,497.2 million, grew by 10.1% in the nine months, but fell by 5% over September 2008. These include mutual funds which fell to euro 4,571.5 million (-2.5% and -15% in nine and twelve months respectively), while assets managed rose to euro 3,729.1 million (with in-

creases of 20.9% and 19.5% respectively) and bancassurance products to euro 3,196.6 million (20% and 30.5%). Assets in custody amounted to euro 9,635.4 million, down by 8.4% in nine months and 12.1% in twelve months; during the same peri-ods Government securities, at euro 4,960.9 mil-lion, decreased by 17.4% and 16.3% respec-tively while the other components rose by 3.5% in the nine months and fell by 7.1% in the twelve month period, totalling euro 4,674.5 million.

INDIRECT DEPOSITS (figures in thousands of euro)


12/08 9/08Total (A+B) 21,132,629 20,919,953 20,960,268 21,905,132 0.8 -3.5

Assets under management (A) 11,497,235 10,942,776 10,438,552 10,947,485 10.1 5.0 Mutual funds and unit trusts 4,571,492 4,347,081 4,688,404 5,377,421 -2.5 -15.0 Assets management 3,729,101 3,529,420 3,085,316 3,120,437 20.9 19.5 Bancassurance products 3,196,642 3,066,275 2,664,832 2,449,627 20.0 30.5

Assets in custody (B) 9,635,394 9,977,177 10,521,716 10,957,647 -8.4 -12.1 Government securities 4,960,938 5,407,413 6,007,358 5,927,440 -17.4 -16.3 Other 4,674,456 4,569,764 4,514,358 5,030,207 3.5 -7.1

Premiums collected on bancassurance products increased from euro 374.1 million in the first nine months of 2008 to euro 759.9 million in the same period of the current year, mainly driven by traditional life policies (euro 741 mil-lion compared with euro 214.3 million in the first nine months of 2008), in particular by the new product “Carige soluzione rendimento”. Unit linked and Gestlink policy premiums

amounted to Euro 11.6 million, down by 92.6% compared to September 2008. Premiums collected in the non-life insurance amounted to Euro 7.4 million (Euro 4.1 million at September 2008); inside the Credit Protection Insurance (CPI) products show a lively trend, the protection insurance policies sold in combina-tion with mortgages, whose premiums collected reached Euro 4.6 million in September (0.7 mil-

31

lion and 1.4 million respectively at September and December 2008).

BANCASSURANCE (figures in thousands of euro )

Situation as at Change %30/9/09 30/6/09 31/12/08 30/9/08 9/09

9/08Total premiums collected 759,922 545,763 630,235 374,126 …

Life, of which: 752,548 539,277 624,475 370,023 … . Unit-linked policies/Gestlink 11,594 6,822 165,835 155,725 -92.6 . Traditional policies 740,954 532,455 458,640 214,298 …

Non life, of which: 7,373 6,486 5,760 4,103 79.7 . Car insurance 672 529 964 818 -17.8 . Non car insurance 6,701 5,957 4,796 3,285 … - Correntista sicuro 959 655 1,376 1,036 -7.4 - Casa assicurata 201 141 296 224 -10.3 - C/c assicurato 68 124 173 121 -44.1 - Famiglia Assicurata 880 617 1,183 841 4.6 - Mutuo 100% 5 5 402 345 -98.6 - Mutuo CPI 4,589 4,416 1,366 718 …

Within indirect deposits, Liguria's contribution was equal to 64.6% (63% in December and 64.8% in September 2008), followed by Lom-

bardy (11.1%; 11.3% in December and in Sep-tember 2008) and by Tuscany (6%; 5.9% in De-cember and in September 2008).

INDIRECT DEPOSITS - GEOGRAPHICAL DISTRIBUTION (1) (figures in thousands of euro)

Situation as at

30/9/09 30/6/09 31/12/08 30/9/08% % % %


Tuscany 1,274,053 6.0% 1,274,403 6.1% 1,245,737 5.9% 1,288,639 5.9%

Veneto 1,138,133 5.4% 1,156,574 5.5% 1,243,699 5.9% 1,356,951 6.2%

Piedmont 755,394 3.6% 754,080 3.6% 781,165 3.7% 847,955 3.9%

Latium 676,491 3.4% 691,303 3.4% 740,309 3.5% 645,692 2.9%

Sicily 680,509 3.2% 674,880 3.2% 739,403 3.5% 419,836 1.9%

Emilia Romagna 241,367 1.1% 248,095 1.2% 272,275 1.3% 277,758 1.3%

Apulia 90,291 0.6% 96,326 0.6% 104,307 0.5% 120,939 0.6%

Sardinia 107,161 0.5% 114,289 0.5% 77,237 0.4% 85,336 0.4%

Valle d'Aosta 70,034 0.3% 70,003 0.3% 83,285 0.4% 92,038 0.4%

Marches 66,384 0.3% 66,659 0.3% 65,486 0.3% 71,856 0.3%

Umbria 41,044 0.2% 42,330 0.2% 45,889 0.2% 24,360 0.1%


Total indirect deposits 21,132,629 100.0% 20,919,953 100.0% 20,960,268 100.0% 21,905,132 100.0%

(1) Figures per branch province.

The main portion of indirect deposits is concen-trated in the family segment, with 75% (77.6% at the end of the year and 78.3% in September

2008). Financial companies represent 18% of the total (15.1% in December and 13.8% in September 2008.

32

INDIRECT DEPOSITS - DISTRIBUTION BY BUSINESS SEGMENT (figures in thousands of euro)

30/09/09 30/06/09 31/12/08 30/9/08

% % % %

Public Administration 134,246 0.6% 124,892 0.6% 115,528 0.6% 146,509 0.7%Financial businesses 3,807,580 18.0% 3,623,776 17.3% 3,169,367 15.1% 3,023,430 13.8%Non-financial businesses and personal businesses 1,059,655 5.0% 1,118,594 5.3% 1,112,479 5.3% 1,301,627 5.9%Private social bodies 170,684 0.9% 172,191 0.9% 168,616 0.8% 177,334 0.8%Families 15,842,446 75.0% 15,764,651 75.4% 16,274,079 77.6% 17,138,006 78.3%Total residents 21,014,611 99.5% 20,804,104 99.5% 20,840,069 99.4% 21,786,906 99.5%Non residents 118,018 0.5% 115,849 0.5% 120,199 0.6% 118,226 0.5%Total 21,132,629 100.0% 20,919,953 100.0% 20,960,268 100.0% 21,905,132 100.0%

Cash loans to customers, net of value ad-justments of euro 514.7 million, amounted to euro 21,409.9 million, up by 3.7% compared with the end of 2008 (and up 12.4% in twelve months); before value adjustments, they totalled euro 21,924.6 million (+3.8% and +12.1% in nine and twelve months). The mortgage loans, inclusive of assets sold and not cancelled, equal euro 11,852.7 million, ac-count for more than 50% of loans to customers and grow by 6.5% compared with December, and by 10.7% compared with September 2008. Current accounts, equal to euro 2,792.9 mil-lion, fell by 4.8% since December but increased by 2.8% since September. Items in “other re-ceivables” increased (euro 4,187 million; +14.2% and +23.1% in nine and twelve months respectively), particularly as a result of the larger syndicated loans, “credit cards, per-sonal loans, and salary-backed loans” amount-ing to euro 567.3 million (+8% and +10%), while leasing fell, standing at euro 816.1 million (-0.7% and -1,7% in nine and twelve months, respectively), and factoring totalling euro 118.3

million (-3% over December and +0.5% over September 2008). As regards maturities, short term lending, equal to Euro 4,972.2 million, was down by 11.1% in the nine month period and was up by 7.7% against September 2008; the medium-long term component, equal to Euro 16,168.4 million, was up by 8.5% in the nine month period and by 13.2% in the twelve month period. Bad loans reached euro 783.9 million, repre-senting 3.6% of total lending, up by 2.9% over December and 3.4% over September 2008. Loans to banks, net of value adjustments for euro 0.9 million (euro 0.8 million in December and euro 0.6 million in September 2008), amounted to euro 653.1 million, down by 33.8% in the nine month period and by 48.1% in twelve months; they are mostly comprised of short-term loans. The net interbank position (difference be-tween loans and amounts owed to banks) shows a net debt position of euro 449.4 million (net credit position of euro 184.7 million in Decem-ber and euro 171.7 in September 2008).

33

LOANS (1) (figures in thousands of euro)

Situation as at30/9/09 30/6/09 31/12/08 30/9/08 9/09 9/09

12/08 9/08Total (A+B) 22,063,053 22,190,589 21,634,328 20,309,061 2.0 8.6

Loans to customers (A) 21,409,914 21,359,433 20,648,153 19,050,928 3.7 12.4-nominal value (2) 21,924,619 21,854,345 21,119,889 19,558,913 3.8 12.1

current accounts 2,792,948 2,635,231 2,932,602 2,716,858 -4.8 2.8lending repurchase agreements - 255,272 658,796 - -100.0 …mortgages (3) (4) 11,495,700 11,166,492 10,719,390 10,235,770 7.2 12.3credit cards, personal loans and salary-backed loans 567,273 547,666 525,232 515,926 8.0 10.0leasing 816,089 810,856 821,860 830,481 -0.7 -1.7factoring 118,268 128,116 121,903 117,648 -3.0 0.5other loans 4,186,970 4,448,555 3,667,322 3,400,681 14.2 23.1assets sold and not cancelled (3) 357,022 371,888 414,453 469,677 -13.9 -24.0impaired assets (3) (5) 1,590,349 1,490,269 1,258,331 1,271,872 26.4 25.0

-short term 4,972,248 5,184,219 5,595,357 4,616,193 -11.1 7.7 % on nominal value 22.7 23.7 26.5 23.6 -medium/long term 16,168,447 15,949,917 14,902,783 14,279,995 8.5 13.2 % on nominal value 73.7 73.0 70.6 73.0 - Bad loans 783,924 720,209 621,749 662,725 26.1 18.3 % on nominal value 3.6 3.3 2.9 3.4

-Value adjustments (-) 514,705 494,912 471,736 507,985 9.1 1.3

Loans to banks (B) 653,139 831,156 986,175 1,258,133 -33.8 -48.1-nominal value (2) 654,025 832,045 986,953 1,258,780 -33.7 -48.0

compulsory reserves 278,510 112,189 327,713 147,671 -15.0 88.6other loans to central banks - - - 28 … -100.0current accounts and free deposits 78,476 109,442 112,932 339,049 -30.5 -76.9term deposits 32,639 382,431 401,145 150,922 -91.9 -78.4repurchase agreements 120,904 147,813 23,122 509,670 … -76.3loans 127,621 63,844 105,925 95,376 20.5 33.8impaired assets 15,875 16,326 16,116 16,064 -1.5 -1.2

-short term 608,298 768,355 939,591 1,230,183 -35.3 -50.6 % on nominal value 93.0 92.3 95.2 97.7 -medium/long term 45,727 63,690 47,362 28,597 -3.5 59.9 % on nominal value 7.0 7.7 4.8 2.3 - Bad loans - - - - … … % on nominal value - - - -

-Value adjustments (-) 886 889 778 647 13.9 36.9

(1) Net of debt securities classified as L&R.

(2) Before value adjustments.

(5) Impaired assets do not include assets sold and not cancelled.

Change %

(3) By letter no. 8309 dated 5 January 2009 ("Regulations on bank financial statements"), the Bank of Italy has sent, inter alia, a note containing some

modifications relative to the tables of the explanatory notes. In particular, a specific item "Securities in issue" has been introduced in table C.2.2 "Financial

liabilities corresponding to financial assets sold and not cancelled" of part E "Information on risks and the related hedging policies". This item has to gather in

the financial statements all the securities issued by the vehicle companies consolidated on a line-by-line basis corresponding to assets sold and cancelled

from the financial statements of the "originating" bank. In light of such new provision the Bank has decided to record also the assets sold to the vehicle

companies consolidate in item "assets sold and not cancelled" and no longer in item "mortgages" and "impaired assets". The figures for the previous periods

have been adequately reclassified to allow a homogeneous comparison. Following some recent clarifications provided by the Bank of Italy, loans included in

sub-item "assets sold and not cancelled" related to securitisation transactions, for which no "derecognition" has taken place, have been reclassified to sub-

items "mortgages" and "impaired assets". (4) Including the fair value of loans for which we exercised the option of the so-called "Fair Value Option" (para. 9 IAS 39) - euro 753 thousand.

As regards the geographical breakdown, Liguria accounts for 48.2% of loans to customers, slightly down against the 48.3% registered in December but against the 47.4% registered in June 2008. Lombardy is the second region, with

a share of 14.2% (13.9% in December and 14.6% in September 2008), Tuscany is third with a share of 8.4% (8.4% and 8.9% in December and September 2008 respectively).

34

TOTAL LOANS TO CUSTOMERS (1) - GEOGRAPHICAL DISTRIBUTION (2) (figures in thousands of euro)

30/9/09 30/6/09 31/12/08 30/9/08% % % %


Tuscany 1,837,077 8.4% 1,834,594 8.4% 1,783,681 8.4% 1,740,079 8.9%

Piedmont 1,376,818 6.3% 1,424,155 6.5% 1,434,984 6.8% 1,367,476 7.0%

Emilia Romagna 1,250,370 5.7% 1,235,442 5.7% 1,168,265 5.5% 1,054,680 5.4%

Veneto 1,202,781 5.5% 1,165,637 5.3% 1,145,467 5.4% 1,126,574 5.8%

Latium 903,590 4.1% 900,414 4.1% 879,277 4.2% 808,426 4.1%

Sicily 625,883 2.9% 613,851 2.8% 608,445 2.9% 396,022 2.0%

Sardinia 318,192 1.5% 315,958 1.4% 232,316 1.1% 232,105 1.2%

Apulia 237,057 1.1% 238,173 1.1% 242,756 1.1% 243,356 1.2%

Marches 155,707 0.7% 155,780 0.7% 163,817 0.8% 154,631 0.8%

Umbria 98,332 0.4% 98,455 0.5% 102,733 0.5% 80,379 0.4%

Valle d'Aosta 24,329 0.1% 23,488 0.1% 22,050 0.1% 20,502 0.1%


Total loans to customers 21,924,619 100.0% 21,854,345 100.0% 21,119,889 100.0% 19,558,913 100.0%

(1) Gross of value adjustments and net of debt securities classified as L&R.(2) Figures per branch province.

Situation as at

Financial businesses and personal businesses represented 58.9% of loans to customers, amounting to euro 12,911.2 million (56.7% in December and 58.7% in September 2008) with an increase concentrated in the segment of other sales-related services; the share accounted for by families stood at 30%, compared with

30.8% in December and 32.2% in September 2008, totalling euro 6,578 million; that of pub-lic administrations stood at 5%, down compared with December and stable compared with Sep-tember 2008.

LOANS TO CUSTOMERS (1) - DISTRIBUTION BY BUSINESS SEGMENT (figures in thousands of euro)

30/09/09 30/06/09 31/12/08 30/9/08

Public Administration 1,100,516 5.0% 1,042,813 4.8% 1,077,441 5.1% 982,387 5.0%Financial businesses 797,635 3.6% 1,032,780 4.7% 1,305,698 6.2% 554,478 2.8%Non-financial businesses and personal businesses 12,911,174 58.9% 12,639,470 57.8% 11,974,739 56.7% 11,474,821 58.7%

Sales-related services 3,998,975 18.2% 3,763,212 17.2% 3,547,708 16.8% 3,353,441 17.1%Building and public works 2,213,312 10.1% 2,138,597 9.8% 2,068,387 9.8% 2,089,833 10.7%Wholesale & retail trade, salvage and repairs 2,037,433 9.3% 2,017,894 9.2% 2,061,208 9.8% 1,941,398 9.9%Hotel and catering services 629,977 2.9% 638,214 2.9% 666,969 3.2% 642,744 3.3%Energy goods 584,786 2.7% 724,274 3.3% 371,928 1.8% 301,932 1.5%Other 3,446,690 15.6% 3,357,279 15.3% 3,258,539 15.4% 3,145,473 16.1%

Private social bodies 113,010 0.4% 108,366 0.4% 106,718 0.5% 110,280 0.6%Families 6,578,041 30.0% 6,656,671 30.5% 6,494,433 30.8% 6,299,041 32.2%Total residents 21,500,377 98.1% 21,480,101 98.3% 20,959,029 99.2% 19,421,007 99.3%Non residents 424,243 1.9% 374,245 1.7% 160,860 0.8% 137,906 0.7%Total 21,924,619 100.0% 21,854,345 100.0% 21,119,889 100.0% 19,558,913 100.0%

(1) Gross of value adjustments and net of debt securities classified as L&R.

Impaired loans in aggregate to customers amounted to euro 1,635 million, up by 25.6% from the beginning of the year and by 24.2% in the twelve month period. The corresponding value adjustments were equal to Euro 437.9 million, with an increase of 8.3% in the nine month period and of 2.6% against end of Sep-tember 2008, with a hedging degree of the loans equal to 26.8% on total. Impaired cash loans to customers amounted to euro 1,612.5 million, an increase of 26.2% in nine months and 24.7% in twelve months. More specifically: − bad loans were equal to Euro 783.9 mil-

lion, up by 26.1% from the beginning of the year and by 18.3% in September 2008; they were written down by 46% (53.8% in De-

cember and 55.1% in September 2008). The bad loans/loans ratio, with reference to customers, is equal to 3.6%. The Group, in line with the overall goal of a wider and more extensive use of rating system basic parameters in managerial and operational practice, adopted the statistical LGD model (Loss Given Default) for the evaluation of in-significant bad loan positions, developed in-house on the basis of discounted historical flows of collections linked to the recovery process. The average amount of positions evaluated in this ways stood at roughly euro 40,000. The LGD model, which takes ac-count of all direct and indirect costs con-nected with the recovery process makes it possible to maintain an analytical approach

35

to evaluating individual positions, examined, in fact, on the basis of different analysis axes which weigh up the nature of the borrower, the range of exposure at the moment of de-fault, the type of guarantee given and its level of hedging. Application of this meth-odology permits positive results of an oper-ating nature, in light of greater standardisa-tion of processes and a higher level of con-sistency in the evaluation of the positions in question, and has a positive impact on value adjustments on the bad loans portfolio;

− watchlists amounted to Euro 459.9 mil-lion, up by 12.6% from the beginning of the year and up by 54.4% in the twelve month period. They were written down by 13.8% (14.8% and 12.3% in December and Sep-tember 2008);

− rescheduled loans amount to euro 115.2 million, up compared with December (euro 5.2 million) and June 2008 (euro 3.8 million). They were written down by 2.2% (6% in December and 6.8% in September 2008);

− past due loans amounted to euro 253.4 million, up in the nine month period (4.6%) and down against June 2008 (-22.9%. They were written down by 2.6% (1.8% and 5.6% in December and September 2008, respec-tively).

Impaired credit commitments, all related to customers, totalled euro 22.5 million, a de-crease compared with euro 24 million in De-cember and euro 23.7 million in September 2008. Write-downs of these items covered 22.3% of the total (20.6% in December and 25.1% in September 2008). On the whole, value adjustments to customers amounted to euro 523.7 million, of which euro 514.7 million relative to cash loans and euro 9 million to endorsement loans. In the nine months, a more precise method to measure PD and LGD parameters was extended to all the Group Banks, already used for the Parent Bank and the Banca del Monte di Lucca to draw up the financial statements as at 31 De-cember 2008. It represents the completion of an activity of review/streamlining of the internal rat-ing models adopted. The intention of the Super-visory Body is to start the authorisation process, in order to make them fully compliant with the regulations of Basel 2 pursuant to Circular Bankit 263. In particular, the new LGD model, based on a greater number of samples, allows a more accu-rate quantification of the guarantee measures adopted to protect credit lines, taking into ac-count, however, as prescribed by legislations, premiums at risk in discounting rates and also on all costs, direct and indirect, connected with the recovery process.

36

CREDIT QUALITY (1) (figures in thousands of euro)

% %b/a b/a

(a) (b) (a)-(b) (a) (b) (a)-(b)Cash loans (2)Bad loans 783,924 360,496 423,428 46.0 720,209 353,633 366,576 49.1 - customers 783,924 360,496 423,428 46.0 720,209 353,633 366,576 49.1Watchlist loans 460,121 63,306 396,815 13.8 411,391 59,484 351,907 14.5 - banks 247 18 229 7.3 245 21 224 8.6 - customers 459,874 63,288 396,586 13.8 411,146 59,463 351,683 14.5Rescheduled loans 130,869 3,353 127,516 2.6 132,811 4,137 128,674 3.1 - banks 15,626 868 14,758 5.6 16,079 868 15,211 5.4 - customers 115,243 2,485 112,758 2.2 116,732 3,269 113,463 2.8

Past due loans 253,425 6,624 246,801 2.6 262,364 5,199 257,165 2.0

- banks 2 - 2 - 2 - 2 - - customers 253,423 6,624 246,799 2.6 262,362 5,199 257,163 2.0

Total impaired loans 1,628,339 433,779 1,194,560 26.6 1,526,775 422,453 1,104,322 27.7

Performing loans 20,950,305 81,812 20,868,493 0.4 21,159,615 73,348 21,086,267 0.3 - banks 638,150 - 638,150 - 815,719 - 815,719 - - customers 20,312,155 81,812 20,230,343 0.4 20,343,896 73,348 20,270,548 0.4Total cash loans 22,578,644 515,591 22,063,053 2.3 22,686,390 495,801 22,190,589 2.2 - banks 654,025 886 653,139 0.1 832,045 889 831,156 0.1 - customers 21,924,619 514,705 21,409,914 2.3 21,854,345 494,912 21,359,433 2.3Credit commitmentsImpaired 22,533 5,022 17,511 22.3 22,178 5,280 16,898 23.8 - customers 22,533 5,022 17,511 22.3 22,178 5,280 16,898 23.8Other loans 1,542,369 3,998 1,538,371 0.3 1,534,166 3,660 1,530,506 0.2 - banks 20,376 - 20,376 - 18,528 - 18,528 - - customers 1,521,993 3,998 1,517,995 0.3 1,515,638 3,660 1,511,978 0.2Total credit commitments 1,564,902 9,020 1,555,882 0.6 1,556,344 8,940 1,547,404 0.6 - banks 20,376 - 20,376 - 18,528 - 18,528 - - customers 1,544,526 9,020 1,535,506 0.6 1,537,816 8,940 1,528,876 0.6Total 24,143,546 524,611 23,618,935 2.2 24,242,734 504,741 23,737,993 2.1 - banks 674,401 886 673,515 0.1 850,573 889 849,684 0.1 - customers 23,469,145 523,725 22,945,420 2.2 23,392,161 503,852 22,888,309 2.2

31/12/08 30/09/08Gross Value Net % Net Value Net %

exposure adjustments exposure b/a exposure adjustments exposure b/a(a) (b) (a)-(b) (a) (b) (a)-(b)

Cash loansBad loans 621,749 334,315 287,434 53.8 662,725 365,410 297,315 55.1 - customers 621,749 334,315 287,434 53.8 662,725 365,410 297,315 55.1Watchlist loans 408,737 60,301 348,436 14.8 297,929 36,807 261,122 12.4 - banks 241 21 220 8.7 46 40 6 87.0 - customers 408,496 60,280 348,216 14.8 297,883 36,767 261,116 12.3Rescheduled loans 21,068 1,069 19,999 5.1 19,550 864 18,686 4.4 - banks 15,873 757 15,116 4.8 15,778 607 15,171 3.8 - customers 5,195 312 4,883 6.0 3,772 257 3,515 6.8Past due loans 242,266 4,437 237,829 1.8 328,812 18,497 310,315 5.6 - banks 2 - 2 - 240 - 240 - - customers 242,264 4,437 237,827 1.8 328,572 18,497 310,075 5.6

Total Impaired loans 1,293,820 400,122 893,698 30.9 1,309,016 421,578 887,438 32.2

Performing loans 20,813,022 72,392 20,740,630 0.3 19,508,677 87,054 19,421,623 0.4 - banks 970,837 - 970,837 - 1,242,716 - 1,242,716 - - customers (2) 19,842,185 72,392 19,769,793 0.4 18,265,961 87,054 18,178,907 0.5Total cash loans 22,106,842 472,514 21,634,328 2.1 20,817,693 508,632 20,309,061 2.4 - banks 986,953 778 986,175 0.1 1,258,780 647 1,258,133 0.1 - customers 21,119,889 471,736 20,648,153 2.2 19,558,913 507,985 19,050,928 2.6Credit commitmentsImpaired 23,974 4,933 19,041 20.6 23,694 5,946 17,748 25.1 - customers 23,974 4,933 19,041 20.6 23,694 5,946 17,748 25.1Other loans 1,668,585 4,137 1,664,448 0.2 1,595,968 6,022 1,589,946 0.4 - banks 56,870 - 56,870 - 69,870 - 69,870 - - customers 1,611,715 4,137 1,607,578 0.3 1,526,098 6,022 1,520,076 0.4Total credit commitments 1,692,559 9,070 1,683,489 0.5 1,619,662 11,968 1,607,694 0.7 - banks 56,870 - 56,870 - 69,870 - 69,870 - - customers 1,635,689 9,070 1,626,619 0.6 1,549,792 11,968 1,537,824 0.8Total 23,799,401 481,584 23,317,817 2.0 22,437,355 520,600 21,916,755 2.3 - banks 1,043,823 778 1,043,045 0.1 1,328,650 647 1,328,003 0.0 - customers 22,755,578 480,806 22,274,772 2.1 21,108,705 519,953 20,588,752 2.5

Value adjustments

Net exposure

(1) Net of debt securities classified as Loans & Receivables (L&R)

(2) Including the fair value of loans to customers for which we opted for the so-called "Fair Value Option" (para. 9 IAS 39) - Assets Item 30 amounting to euro 753 thousand.

Gross exposure

30/06/0930/09/09

Gross exposure

Value adjustments

Net exposure

37

The portion of bad loans related to Liguria is equal to 36.6% of the aggregate, down com-pared to 40% of December and 51% of Sep-tember 2008, also in relation to the relatively more contained impact of the economic crisis in

this region compared to more industrialised ar-eas of the country. Lombardy is the second re-gion, with a share of 22.7%, followed by Pied-mont and by Tuscany (12.2% and 8% respec-tively).

BAD LOANS TO CUSTOMERS (1) - GEOGRAPHICAL DISTRIBUTION (2) (figures in thousands of euro)

Situation as at

30/9/09 30/6/09 31/12/08 30/9/08% % % %

Liguria 286,875 36.6% 270,416 37.5% 248,497 40.0% 337,962 51.0%

Lombardy 177,841 22.7% 154,810 21.5% 119,292 19.2% 112,394 17.0%

Piedmont 95,539 12.2% 84,699 11.8% 71,159 11.4% 69,296 10.5%

Tuscany 62,939 8.0% 62,953 8.7% 58,882 9.5% 33,801 5.1%

Emilia Romagna 53,217 6.8% 50,946 7.1% 40,804 6.6% 33,235 5.0%

Latium 30,815 3.9% 28,598 4.0% 26,102 4.2% 25,863 3.9%

Sicily 18,763 2.4% 16,992 2.4% 15,723 2.5% 15,937 2.4%

Veneto 18,958 2.4% 16,246 2.3% 11,741 1.9% 5,647 0.9%

Apulia 12,167 1.6% 11,070 1.5% 10,602 1.7% 10,599 1.6%

Sardinia 11,483 1.5% 8,960 1.2% 6,011 1.0% 5,647 0.9%

Marches 8,408 1.1% 8,258 1.1% 7,389 1.2% 7,184 1.1%

Umbria 5,127 0.7% 4,810 0.7% 4,082 0.7% 4,003 0.6%

Valle d'Aosta 520 0.1% 450 0.1% 14 0.0% 9 0.0%

Total Italy 782,652 99.8% 719,208 99.9% 620,298 99.8% 661,577 99.8%

Abroad 1,272 0.2% 1,001 0.1% 1,451 0.2% 1,148 0.2%

Total 783,924 100.0% 720,209 100.0% 621,749 100.0% 662,725 100.0%


The bad loans/lending ratio stood at 3.6%, with inconsistent regional trends: the ratio in Liguria was recorded at 2.7%, on the increase com-pared to 2.4% in December, but on the de-crease compared to 3.6% in September 2008;

whilst in Lombardy it grew by 5.7%, compared to 4.1% in December and to 3.9% in September 2008. Piedmont registered the highest ratio (6.9%), on the increase both compared to De-cember (5%) and to September 2008 (5.1%).

BAD LOANS/LENDING RATIO (1) - GEOGRAPHICAL DISTRIBUTION (2)(Percentage values)

.30/9/09 30/6/09 31/12/08 30/9/08

Piedmont 6.9% 5.9% 5.0% 5.1%

Lombardy 5.7% 5.1% 4.1% 3.9%

Marches 5.4% 5.3% 4.5% 4.6%

Umbria 5.2% 4.9% 4.0% 5.0%

Apulia 5.1% 4.6% 4.4% 4.4%

Emilia Romagna 4.3% 4.1% 3.5% 3.2%

Sardinia 3.6% 2.8% 2.6% 2.4%

Tuscany 3.4% 3.4% 3.3% 1.9%

Latium 3.4% 3.2% 3.0% 3.2%

Sicily 3.0% 2.8% 2.6% 4.0%

Liguria 2.7% 2.6% 2.4% 3.6%

Valle d'Aosta 2.1% 1.9% 0.1% 0.0%

Veneto 1.6% 1.4% 1.0% 0.5%

Total Italy 3.6% 3.3% 3.0% 3.4%

Abroad 0.6% 0.5% 0.7% 0.6%

Total 3.6% 3.3% 2.9% 3.4%


The breakdown by business segment showed a concentration of bad loans in non-financial businesses and personal businesses (Euro 541.7

million) with a share of 69.2% (71.2% in De-cember and 73.9% in September 2008). Build-ing and public works represented the segment

38

with the highest share of bad loans (euro 141.6 million, 18.1%), followed by wholesale and re-tail trade (euro 115.6 million, 14.8%).

Financial businesses represented 28.3% of the aggregate (25.8% in December and 23.4% in September 2008).

BAD LOANS (1) - DISTRIBUTION BY BUSINESS SEGMENT (figures in thousands of euro)

30/09/09 30/06/09 31/12/08 30/9/08% % % %

Public Administration - - - - - - - - Financial businesses 13,019 1.7% 12,873 1.8% 12,506 2.0% 12,389 1.9%Non-financial businesses and personal businesses 541,716 69.2% 501,321 69.7% 442,854 71.2% 489,477 73.9%

Building and public works 141,598 18.1% 133,952 18.6% 110,167 17.7% 107,916 16.3%Wholesale & retail trade, salvage and repairs 115,644 14.8% 109,306 15.2% 92,579 14.9% 92,983 14.0%Sales-related services 91,201 11.6% 84,640 11.8% 74,926 12.1% 66,061 10.0%Metal products 23,636 3.0% 22,168 3.1% 19,221 3.1% 18,813 2.8%Hotel and catering services 20,095 2.6% 19,303 2.7% 17,599 2.8% 17,227 2.6%Other 149,542 19.1% 131,952 18.3% 128,362 20.6% 186,477 28.1%

Private social bodies 1,884 0.2% 1,859 0.2% 1,800 0.3% 1,749 0.2%Families 221,918 28.3% 199,078 27.6% 160,614 25.8% 155,166 23.4%Total residents 778,538 99.3% 715,131 99.3% 617,775 99.4% 658,781 99.4%Non residents 5,387 0.7% 5,078 0.7% 3,974 0.6% 3,944 0.6%Total 783,924 100.0% 720,209 100.0% 621,749 100.0% 662,725 100.0%

(1) Gross of value adjustments and net of debt securities classified as L&R.

The bad loans/loans ratio is equal to 3,6%, progressively increasing in the year for all the sectors concerned. In particular it increased to 3.4% for families (2.5% in December and Sep-

tember 2008) and 4.2% for non-financial com-panies and personal businesses (3.7% and 4.3% in December and September 2008 respectively).

BAD LOANS/LENDING RATIO (1) - DISTRIBUTION BY BUSINESS SEGMENT(Percentage values)

Situation as at30/09/09 30/06/09 31/12/08 30/9/08

Public Administration - - - - Financial businesses 1.6% 1.2% 1.0% 2.2%Non-financial businesses and personal businesses 4.2% 4.0% 3.7% 4.3% - of which (2):

Building and public works 6.4% 6.3% 5.3% 5.2%Wholesale & retail trade, salvage and repairs 5.7% 5.4% 4.5% 4.8%Hotel and catering services 3.2% 3.0% 2.6% 2.7%Sales-related services 2.3% 2.2% 2.1% 2.0%Energy goods 0.0% 0.0% 0.0% 0.0%

Private social bodies 1.7% 1.7% 1.7% 1.6%Families 3.4% 3.0% 2.5% 2.5%Total residents 3.6% 3.3% 2.9% 3.4%Rest of the world 1.3% 1.4% 2.5% 2.9%Total 3.6% 3.3% 2.9% 3.4%

(1) Gross of value adjustments and net of debt securities classified as L&R.(2) Main business segments in terms of overall credit exposure shown.

Securities in portfolio amount to euro 7,678.8 million, up by 43.7% in the nine months and 41.3% in the twelve months, of which 81.7% consisted in debt securities; how-ever, excluding the equity investment in Bank of Italy, posted under equities (see infra), this share goes up to more than 90%. Approximately 74% of the portfolio consists of investment grade securities. Debt securities, equal to euro 6,274.3 million, increased by 54.2% in the nine month period and by 55.8% on a YoY basis, due to the pur-chase of inflation linked government securities allocated in the AFS portfolio. Equities, at euro 1,026.4 million, increased by 12.6% against December and 6.1% against September. Equities included the equity investment in the Bank of Italy, accounted for at euro 791.6 mil-

lion; this figure results from a valuation at fair value - using shareholders’ equity as the most reliable proxy of fair value - performed on the basis of the balance sheet data of the Bank of Italy as at 31 December 2008 (last approved financial statements), in line with the accounting principle adopted for the preparation of the fi-nancial statements and the consolidated finan-cial statements as at 31 December 2008. Shares in mutual funds amounted to euro 378.2 million, up in the nine month period (+3.9%) and down in the twelve month period (-13.9%). As regards the breakdown, 68.6% of the portfo-lio was composed of securities available for sale (56.2% at the start of the year and 48.8% in September 2008). Securities held for trading ac-counted for 9.6% (12.1% at the start of the year and 26.8% in September 2008).

39

SECURITIES PORTFOLIO (figures in thousands of euro)


12/08 9/08

Debt securities 6,274,278 5,270,650 4,067,667 4,026,989 54.2 55.8Held for trading 686,515 720,106 597,229 1,400,956 15.0 -51.0Available for sale 4,126,046 3,075,130 1,977,338 1,538,350 … …Fair value 462,797 464,791 502,111 449,844 -7.8 2.9Loans and Receivable 493,650 500,599 530,845 538,330 -7.0 -8.3Held to maturity 505,270 510,024 460,144 99,509 9.8 …

Equities 1,026,385 977,918 911,417 967,676 12.6 6.1Held for trading 1,147 1,186 1,505 6,592 -23.8 -82.6Available for sale 1,025,238 976,732 909,912 961,084 12.7 6.7

Shares in collective investment schemes 378,171 365,457 364,121 439,432 3.9 -13.9Held for trading 48,496 45,424 46,057 50,324 5.3 -3.6Available for sale 119,087 116,332 114,387 153,182 4.1 -22.3Fair value 210,588 203,701 203,677 235,926 3.4 -10.7

Total 7,678,834 6,614,025 5,343,205 5,434,097 43.7 41.3

including:Held for trading 736,158 766,716 644,791 1,457,872 14.2 -49.5Available for sale 5,270,371 4,168,194 3,001,637 2,652,616 75.6 98.7Loans and Receivable 493,650 500,599 530,845 538,330 -7.0 -8.3Fair value 673,385 668,492 705,788 685,770 -4.6 -1.8Held to maturity 505,270 510,024 460,144 99,509 9.8 …

The amendments made to international ac-counting principles IAS 39 and IFRS 7 in Octo-ber and November 2008 allowed for new types of reclassifications, with the possibility of retro-active effectiveness to 1 July 2008 if carried out before 31 October 2008..

Pursuant to said amendments, the Carige Group reclassified securities, effective 1 July and 1 October, for a total residual amount of euro 1,389.2 million as at 30 September 2009 (fair value at reclassification date), as detailed in the table below.

RECLASSIFICATIONS OF FINANCIAL ASSETS (1) (figures in thousands of euro)

from/to AFS HTM L&R TOTAL

HFT 489,694 420,100 169,943 1,079,737

AFS - - 309,415 309,415

TOTAL 489,694 420,100 479,358 1,389,152

(1) Amounts net of accruals.

In the absence of said reclassifications the Group would have recorded, as at 30 Septem-ber 2009: − greater write-downs totalling 33.2 million

(decreased during the nine months by Euro 97.2 million compared to Euro 130.4 mil-lion on 31 December 2008) that generated Euro 27.1 million of greater negative fair-value reserves (down by Euro 56.4 million during the nine months);

− lower interest income pertaining to amor-tised cost for euro 11.4 million, of which euro 6.5 million relating to the nine months;

− greater negative reserves of shareholders’ equity of euro 4.8 million, down by euro

19.7 million compared with euro 24.5 mil-lion of 31 December 2008.

These values are calculated before the respec-tive taxes. The portfolio of debt securities reclassified in the AFS (Available For Sale, HTM (Held To Maturity) and L&R (Loans & Receivables) for a nominal value of euro 1,139.6 million has an effective interest rate of 5.61% with expected cash flows estimated at euro 1,713.1 million. In relation to the downturn in the financial mar-kets and difficulties facing leading financial insti-tutions, the accounting Bodies intervened to regulate market situations in which the prices of many financial instruments were affected by

40

strong illiquidity and the International Account-ing Standards Board (IASB) issued a special ap-plication guide. In particular, this made it possible to evaluate certain financial instruments on the basis of the so-called “level 1” of fair value (effective market quotes), “level 2” (comparable approach) or “level 3” (mark to model approach), however giving maximum priority to official prices avail-able on active markets (effective market quotes) and, in their absence, the evaluation of assets and liabilities based on indicative quotes, or re-ferring to similar assets and liabilities (compara-ble approach) and, finally, only residually, to evaluation techniques based on non-observable inputs and, therefore, more discretional (Mark-to-Model Approach). Shown below is a summary of the different levels of fair value used by the Group for the evalua-tion of its financial assets and liabilities as at 30 September 2009, in line with the action taken in preparing the consolidated financial statements for the year ended at 31 December 2008: - Effective market quotes – Level 1 of Fair

Value. The evaluation is carried out at the market price of said financial instrument sub-ject to the evaluation, obtained on the basis of quotes expressed by an active market. The percentage of financial instruments valued with this method over the total of instruments at fair value for the Group equals 70.19% (63.69% as at 31 December 2008).

- Evaluation Techniques (Comparable ap-proach) Level 2 of Fair Value. The assess-ment is based on indicative evaluations of the financial instrument that are obtained from reliable info-providers or on prices deter-mined by using an appropriate calculation method (pricing model) and observable mar-ket parameters, including therein credit spreads obtained from official quotes of in-struments that are essentially similar in terms of risk factors. The percentage of financial instruments as-sessed using this method, out of all instru-ments evaluated at fair value for the Carige Group, stood at 28.91% (35.06% as at 31 December 2008).

- Evaluation techniques (Mark-to-Model Approach) – Level 3 of Fair Value. Evalua-tions are performed by using different inputs, not all obtained directly from observable market parameters and therefore involve es-timates and assumptions by the evaluator. In particular, with this approach, different methodologies are used: with reference to the interest held in the

Bank of Italy, the fair value is determined at an amount corresponding to the frac-tion of shareholders’ equity as at 31 De-cember 2008. This evaluation is a signifi-cant approximation of the fair value of the investment;

with reference to the evaluation of capi-talisation policies, a calculation method (pricing model) has been used that is based, inter alia, on specific hypotheses regarding: - the development of future cash flows,

conditioned by future events to which probabilities can be attributed, based on past experience or on the basis of behavioural assumptions;

- the level of set input parameters not quoted on active markets, for whose es-timate, however, information acquired from prices and spreads observed on the market are given preference.

Finally, Level 3 of Fair Value was used for the same financial instruments present as at 31 De-cember 2008, plus equity interest acquired dur-ing the quarter for credit collection. The per-centage of instruments assessed using this methodology, out of all instruments evaluated at fair value for the Carige Group, stood at 0.90% (1.25% as at 31 December 2008). The table below shows a summary, for the Carige Group, of the values and respective per-centages of the different levels of Fair Value used for the evaluation of the financial instru-ments classified in the HFT (Held For Trading), AFS (Available For Sale) and Fair Value Option (FVO) categories:

41

LEVELS OF FAIR VALUE USED (1) (figures in thousands of euro)

Countervalue % Countervalue % Countervalue %

Financial assets 3,897,835 89.4 1,180,206 65.8 847,092 99.9 Financial liabilities 460,911 10.6 150,927 8.4 - - Derivatives 72 - 463,947 25.8 438 0.1 Total 4,358,818 100.0 1,795,080 100.0 847,530 100.0 % on Total 62.26% 25.64% 12.11%% on Total net of the equity investment in Bank of Italy 70.19% 28.91% 0.90%(1) Net of accruals and some minor positions, which are not included in the scheme.

Level 1 Level 2 Level 3

As at 30 September 2009, the exposure of the Group to certain instruments that the market-place now considers to be high-risk or involve more risk than previously thought amounts to about euro 250 million, equal to approximately 3.3% of the securities portfolio, concerns: - securities resulting from securitisation trans-

actions (with the exclusion of CDOs – Col-lateralised Debt Obligations), allocated to both the trading portfolio and to the portfo-lio of assets available for sale, for a total book value of approximately euro 62 mil-lion, (0.8% of the securities portfolio. It should be noted that such securitisation transactions do not include any exposure to subprime mortgages, and that 74% of said transactions is comprised of Junior, Mezza-nine and Senior tranches of the securitisa-tions of mortgages granted by the banks of the Group and originating from proprietary vehicles, included in the consolidation pe-rimeter;

- CDOs portfolio, for a book value of ap-proximately euro 6.6 million (0.1% of the aggregate portfolio), comprised of synthetic securitisations which include CDS - Credit Default Swap, and by securitisations of secu-ritisations with exposures to RMBS - Residen-tial Mortgage-Backed Securities, CMBS - Commercial Mortgage-Backed Securities, ABS - Asset-Backed Securities, and by sub-prime positions with a book value of euro 0.3 million (less than 1 thousandth of the aggregate portfolio). It should be noted that 73% of the CDOs in the portfolio is above investment grade, while 67% of the total (de-termined at book value) has a rating equal or above “AA”;

- securities and derivatives related to lever-aged finance transactions comprised of funded and unfunded securities. The former have a book value of euro 123.4 million (equal to 1.6% of the aggregate portfolio) and 99.7% of these (equal to a nominal value of euro 122.9 million) is structured in

a protected/guaranteed format, with the hedging of the specific risk or, in any case, with the provision for the repayment at par at maturity. Unfunded securities are subdivided in credit and interest rate instruments; credit instruments have a notional amount of euro 15 million and a negative economic impact, net of value write-backs, for euro 0.5 mil-lion. Interest rate structured derivatives, on the other hand, against a notional amount of euro 25 million have a negative impact of roughly euro 1 million.

As at 30 September 2009, valuation reserves relative to securities classified in the AFS (Avail-able For Sale) category amounted to euro 616.2 million (an increase of euro 223.8 million compared to the positive balance of euro 392.4 million at 31 December 2008) and composed for euro 772.8 million of positive reserves (relat-ing mainly to the valuation of the equity invest-ment in the Bank of Italy (euro 739.3 million) and for euro 156.6 million by negative reserves. These refer to debt securities (mostly comprised of public, bank and corporate bonds with high credit standing) for euro 45.6 million and to eq-uity and shares in collective investment schemes of leasing banking and insurance issuers (includ-ing Assicurazioni Generali SpA for euro 56.5 million and four bank securities for euro 18.2 million) for euro 111.0 million. As regards the portion relative to equities, even though signifi-cant, that exceed quantitative impairment pa-rameters defined by the model adopted by the Group (including a case with a negative reserve of euro 7.9 million which exceeds 80% of the decrease in fair value compared with the book value) the conditions of impairment were not deemed to exist following qualitative evaluations based on an analysis of the so-called funda-mental aspects of the issuer that also took into consideration the economic results achieved in the first part of the current financial year as well as the performance in the months after the close of the half.

42

Hedging derivative assets amounted to Euro 73.8 million, on the increase compared to Euro 56.9 million in December (+29.7%) and to Euro 22.7 million in September 2008. The value of hedging derivative liabilities, equal to Euro 233.7 million was greater than Euro 116.3 million in December and Euro 25.5 million in September 2008.

Revaluations amounting to euro 19.1 million and write-downs for euro 97.9 million were reg-istered on hedging derivative contracts; taking into account the increase in the underlying as-sets for euro 81.1 million, the net result is posi-tive for euro 2.3 million.

ASSETS FROM HEDGING DERIVATIVES BY HEDGE TYPE (figures in thousands of euro)


12/08 9/08

Asset hedging derivatives - - 1,688 411 -100.0 -100.0Fair value hedging - - 1,688 411 -100.0 -100.0 interest rates - - 1,688 411 -100.0 -100.0Cash flow hedging - - - - … …General interest rate risk hedging - - - - … …Liability hedging derivatives 73,831 63,242 55,234 22,254 33.7 …Fair value hedging 71,295 60,728 53,065 6,913 34.4 … interest rates 71,295 60,728 53,065 6,913 34.4 …Cash flow hedging - - - - … …General interest rate risk hedging 2,536 2,514 2,169 15,341 16.9 -83.5Total 73,831 63,242 56,922 22,665 29.7 …

LIABILITIES FROM HEDGING DERIVATIVES BY HEDGE TYPE (figures in thousands of euro)


12/08 9/08

Asset hedging derivatives 144,744 97,422 49,556 8,962 … …Fair value hedging 144,744 97,422 49,556 8,962 … … interest rates 144,744 97,422 49,556 8,962 … …Cash flow hedging - - - - … …General interest rate risk hedging - - - - … …Liability hedging derivatives 88,957 70,139 66,734 16,579 33.3 …Fair value hedging - - 843 12,788 -100.0 -100.0 interest rates - - 843 12,788 -100.0 -100.0 other risks … …Cash flow hedging - - - - … …General interest rate risk hedging 88,957 70,139 65,891 3,791 35.0 …Total 233,701 167,561 116,290 25,541 … …

The notional value of derivative contracts was equal to Euro 7,465.4 million, greater than the value in December (+11.6%) and September 2008 (+25.8%).

Financial derivatives represent 97.6% of the ag-gregate.

43

NOTIONAL VALUES OF DERIVATIVE CONTRACTS (figures in thousands of euro)


12/08 9/08

Financial derivatives 7,284,805 6,894,616 6,472,194 5,704,995 12.6 27.7 futures 555 - - 16,900 … -96.7 forward agreements 300,876 457,236 728,956 607,156 -58.7 -50.4 swap 5,953,045 5,350,206 4,548,596 4,244,613 30.9 40.2 options purchased 909,334 960,264 1,028,597 623,160 -11.6 45.9 others 120,995 126,910 166,045 213,166 -27.1 -43.2Credit derivatives 180,615 175,713 215,153 230,516 -16.1 -21.6 tror 161 1,972 6,060 6,060 -97.3 -97.3 cds 180,454 173,741 209,093 224,456 -13.7 -19.6

TOTAL 7,465,420 7,070,329 6,687,347 5,935,511 11.6 25.8

Trading derivative contracts amount to euro 156.9 million, down compared with December 2008 (-12.3%) and up against September 2008 (+8.7%).

Revaluations for euro 37.2 million, write-downs for euro 58.1 million and net trading losses for euro 1.3 million were recorded on trading de-rivative contracts; consequently, the net negative result amounted to euro 22.2 million.

TRADING DERIVATIVES (figures in thousands of euro)

Situation as at30/9/09 30/6/09 31/12/08 30/9/08 9/09 9/09

12/08 9/08

Positive countervalues 58,420 55,568 64,503 66,728 -9.4 -12.5Financial derivatives 57,507 52,176 52,864 56,528 8.8 1.7 forward agreements 9,679 9,314 11,098 19,641 -12.8 -50.7 swap 19,404 20,276 19,178 12,599 1.2 54.0 options purchased 28,424 22,586 22,587 24,288 25.8 17.0 others - - 1 - -100.0 …Credit derivatives 913 3,392 11,639 10,200 -92.2 -91.0 cds 913 3,392 11,639 10,200 -92.2 -91.0TOTAL 58,420 55,568 64,503 66,728 -9.4 -12.5

Negative countervalues 98,504 105,924 114,470 77,683 -13.9 26.8Financial derivatives 95,007 102,854 111,505 76,376 -14.8 24.4 forward agreements 4,336 6,559 11,516 9,128 -62.3 -52.5 swap 88,650 93,576 97,229 60,901 -8.8 45.6 issued options 2,021 2,719 2,760 6,347 -26.8 -68.2Credit derivatives 3,497 3,070 2,965 1,307 17.9 … tror - 3 13 9 -100.0 -100.0 cds 3,497 3,067 2,952 1,298 18.5 …TOTAL 98,504 105,924 114,470 77,683 -13.9 26.8

Change %

Overall, the net income on derivative contracts is negative for euro 19.9 million.

44

NET INCOME ON DERIVATIVE CONTRACTS AS AT 30/9/2009(figures in thousands of euro)

Revaluations Write-downs Net profit Net incomeon trading

1. Trading contracts 37,229 - 58,118 - 1,264 - 22,1531.1 Financial derivatives 36,388 - 45,939 535 - 9,0161.2 Credit derivatives 841 - 12,179 - 1,799 - 13,137

Revaluations Write-downs Changes in underlying Net incomefrom hedging

2. Hedging contracts 19,081 - 97,943 81,114 2,2522.1 Asset hedging 3,072 - 94,737 92,119 4542.2 Liability hedging 16,009 - 3,206 - 11,005 1,798

TOTAL 56,310 - 156,061 79,850 - 19,901

45

ECONOMIC RESULTS

The first nine months of 2009 closed with a net profit of euro 163.3 million, against euro 163

million in the same period in 2008 (+0.2%). The former Intesa Sanpaolo and UniCredit branches contributed to this result; they became part of the Group perimeter on 10 March and 1 December 2008 respectively.


Change 9/09- 9/0830/9/09 30/6/09 31/12/08 30/9/08 absolute %

10 - INTEREST INCOME AND SIMILAR REVENUES 895,886 634,249 1,491,426 1,087,723 -191,837 -17.6 20 - INTEREST EXPENSES AND SIMILAR CHARGES -341,839 -248,976 -680,717 -500,837 158,998 -31.7 30 - NET INTEREST INCOME 554,047 385,273 810,709 586,886 -32,839 -5.6 40 - COMMISSION INCOME 227,587 146,995 291,763 213,106 14,481 6.8 50 - COMMISSION EXPENSES -25,463 -16,941 -38,578 -28,724 3,261 -11.4 60 - NET COMMISSIONS 202,124 130,054 253,185 184,382 17,742 9.6 70 - DIVIDENDS AND OTHER SIMILAR REVENUES 10,302 9,825 14,818 12,445 -2,143 -17.2 80 - NET INCOME FROM TRADING ACTIVITIES 12,459 4,035 -62,976 -54,924 67,383 … 90 - NET INCOME FROM HEDGING ACTIVITIES 2,252 2,324 -544 382 1,870 …100 - PROFIT (LOSS) ON DISPOSAL OR REPURCHASE OF: 23,961 18,065 15,916 15,879 8,082 50.9

a) loans 1,823 1,080 3,902 2,425 -602 -24.8b) available-for-sale financial assets 6,837 1,577 10,214 10,266 -3,429 -33.4d) financial liabilities 15,301 15,408 1,800 3,188 12,113 …

110 - NET VALUE ADJUSTMENT ON FINANCIAL ASSETS DESIGNATED AT FAIR VALUE -1,063 1,123 -518 15,471 -16,534 …

120 - GROSS OPERATING INCOME 804,082 550,699 1,030,590 760,521 43,561 5.7130 - NET VALUE ADJUSTMENTS DUE TO IMPAIRMENT OF: -77,346 -56,133 -102,795 -80,294 2,948 -3.7

a) loans -60,139 -39,613 -76,929 -75,336 15,197 -20.2b) available-for-sale financial assets -17,257 -16,651 -28,041 -4,205 -13,052 …d) other financial assets 50 131 2,175 -753 803 …

140 - NET INCOME FROM FINANCIAL MANAGEMENT 726,736 494,566 927,795 680,227 46,509 6.8150 - NET PREMIUMS 1,135,091 784,598 927,061 626,910 508,181 81.1160- BALANCE OF OTHER EXPENSES/REVENUES FROM INSURANCE

MANAGEMENT -1,146,833 -788,138 -944,181 -648,142 -498,691 76.9170- NET INCOME FROM FINANCIAL AND INSURANCE

MANAGEMENT 714,994 491,026 910,675 658,995 55,999 8.5180 - ADMINISTRATIVE COSTS: -484,546 -333,807 -623,102 -450,142 -34,404 7.6

a) staff costs (1) -296,278 -204,404 -375,472 -266,540 -29,738 11.2b) other administrative costs (1) -188,268 -129,403 -247,630 -183,602 -4,666 2.5

190 - NET PROVISIONS FOR RISKS AND CHARGES -3,778 -2,773 -2,245 3,322 -7,100 …200 - DEPRECIATION OF TANGIBLE ASSETS -17,560 -11,570 -21,320 -14,904 -2,656 17.8210 - AMORTIZATION OF INTANGIBLE ASSETS -15,175 -9,607 -17,387 -12,209 -2,966 24.3220 - OTHER OPERATING EXPENSES AND REVENUES 50,620 31,612 56,577 47,406 3,214 6.8230 - OPERATING COSTS -470,439 -326,145 -607,477 -426,527 -43,912 10.3240 - PROFIT (LOSS) FROM EQUITY INVESTMENTS 6,495 3,583 5,422 2,686 3,809 …270 - PROFIT (LOSS) FROM DISPOSAL OF INVESTMENTS -11 -25 127 22 -33 …280 - OPERATING PROFIT (LOSS) FROM ORDINARY ACTIVITIES

BEFORE TAXES 251,039 168,439 308,747 235,176 15,863 6.7290 - INCOME TAXES FOR THE PERIOD -85,133 -53,895 -95,844 -67,060 -18,073 27.0300 - PROFIT (LOSS) FROM ORDINARY ACTIVITIES AFTER TAXES 165,906 114,544 212,903 168,116 -2,210 -1.3320 - PROFIT (LOSS) FOR THE PERIOD 165,906 114,544 212,903 168,116 -2,210 -1.3330 - MINORITY INTERESTS 2,560 2,836 7,399 5,068 -2,508 -49.5340 - PROFIT (LOSS) FOR THE PERIOD ATTRIBUTABLE TO THE

PARENT BANK 163,346 111,708 205,504 163,048 298 0.2

(1) By letter no. 8309 dated 5 January 2009 ("Regulations on bank financial statements"), the Bank of Italy has established, inter alia that conventionally fees paid to the statutory auditors have tobe recorded under sub-item "a) staff costs" and not under item "b) other administrative expenses". Figures as at September 2008 have been adequately reclassified to allow a homogeneouscomparison among the different periods.

46

INCOME STATEMENT - QUARTERLY RESULTS (figures in thousands of euro)

30/9/09 30/9/08 CHANGE3rd quarter

20093rd quarter

2008 CHANGE 30/6/09 10 - INTEREST INCOME AND SIMILAR REVENUES 895,886 1,087,723 -191,837 261,637 384,642 -123,005 634,249 20 - INTEREST EXPENSES AND SIMILAR CHARGES -341,839 -500,837 158,998 -92,863 -180,483 87,620 -248,976 30 - NET INTEREST INCOME 554,047 586,886 -32,839 168,774 204,159 -35,385 385,273 40 - COMMISSION INCOME 227,587 213,106 14,481 80,592 72,129 8,463 146,995 50 - COMMISSION EXPENSES -25,463 -28,724 3,261 -8,522 -10,348 1,826 -16,941 60 - NET COMMISSIONS 202,124 184,382 17,742 72,070 61,781 10,289 130,054 70 - DIVIDENDS AND OTHER SIMILAR REVENUES 10,302 12,445 -2,143 477 560 -83 9,825 80 - NET INCOME FROM TRADING ACTIVITIES 12,459 -54,924 67,383 8,424 -8,759 17,183 4,035 90 - NET INCOME FROM HEDGING ACTIVITIES 2,252 382 1,870 -72 555 -627 2,324

100 - PROFIT (LOSS) ON DISPOSAL OR REPURCHASE OF: 23,961 15,879 8,082 5,896 2,536 3,360 18,065 a) loans 1,823 2,425 -602 743 454 289 1,080 b) available-for-sale financial assets 6,837 10,266 -3,429 5,260 1,290 3,970 1,577 d) financial liabilities 15,301 3,188 12,113 -107 792 -899 15,408

110 - NET VALUE ADJUSTMENT ON FINANCIAL ASSETS DESIGNATED AT FAIR VALUE -1,063 15,471 -16,534 -2,186 15,350 -17,536 1,123

120 - GROSS OPERATING INCOME 804,082 760,521 43,561 253,383 276,182 -22,799 550,699 130 - NET VALUE ADJUSTMENTS DUE TO IMPAIRMENT

OF: -77,346 -80,294 2,948 -21,213 -27,033 5,820 -56,133 a) loans -60,139 -75,336 15,197 -20,526 -24,303 3,777 -39,613 b) available-for-sale financial assets -17,257 -4,205 -13,052 -606 -2,521 1,915 -16,651 d) other financial assets 50 -753 803 -81 -209 128 131

140 -NET INCOME FROM FINANCIAL MANAGEMENT 726,736 680,227 46,509 232,170 249,149 -16,979 494,566

150 - NET PREMIUMS 1,135,091 626,910 508,181 350,493 212,046 138,447 784,598 160- BALANCE OF OTHER EXPENSES/REVENUES FROM

INSURANCE MANAGEMENT -1,146,833 -648,142 -498,691 -358,695 -221,225 -137,470 -788,138 170- NET INCOME FROM FINANCIAL AND

INSURANCE MANAGEMENT 714,994 658,995 55,999 223,968 239,970 -16,002 491,026 180 - ADMINISTRATIVE COSTS: -484,546 -450,142 -34,404 -150,739 -156,530 5,791 -333,807

a) staff costs (1) -296,278 -266,540 -29,738 -91,874 -89,522 -2,352 -204,404 b) other administrative costs (1) -188,268 -183,602 -4,666 -58,865 -67,008 8,143 -129,403

190 - NET PROVISIONS FOR RISKS AND CHARGES -3,778 3,322 -7,100 -1,005 2,932 -3,937 -2,773 200 - DEPRECIATION OF TANGIBLE ASSETS -17,560 -14,904 -2,656 -5,990 -5,270 -720 -11,570 210 - AMORTIZATION OF INTANGIBLE ASSETS -15,175 -12,209 -2,966 -5,568 -4,601 -967 -9,607 220 - OTHER OPERATING EXPENSES AND REVENUES 50,620 47,406 3,214 19,008 15,294 3,714 31,612 230 - OPERATING COSTS -470,439 -426,527 -43,912 -144,294 -148,175 3,881 -326,145 240 - PROFIT (LOSS) FROM EQUITY INVESTMENTS 6,495 2,686 3,809 2,912 - 2,912 3,583 270 -

PROFIT (LOSS) FROM DISPOSAL OF INVESTMENTS -11 22 -33 14 25 -11 -25 280 - OPERATING PROFIT (LOSS) FROM ORDINARY

ACTIVITIES BEFORE TAXES 251,039 235,176 15,863 82,600 91,820 -9,220 168,439 290 - INCOME TAXES FOR THE PERIOD -85,133 -67,060 -18,073 -31,238 -37,771 6,533 -53,895 300 - PROFIT (LOSS) FROM ORDINARY ACTIVITIES

AFTER TAXES 165,906 168,116 -2,210 51,362 54,049 -2,687 114,544 320 - PROFIT (LOSS) FOR THE PERIOD 165,906 168,116 -2,210 51,362 54,049 -2,687 114,544 330 - MINORITY INTERESTS 2,560 5,068 -2,508 -276 1,973 -2,249 2,836 340 - PROFIT (LOSS) FOR THE PERIOD ATTRIBUTABLE

TO THE PARENT BANK 163,346 163,048 298 51,638 52,076 -438 111,708 (1) By letter no. 8309 dated 5 January 2009 ("Regulations on bank financial statements"), the Bank of Italy has established, inter alia that conventionally fees paid to the statutoryauditors have to be recorded under sub-item "a) staff costs" and not under item "b) other administrative expenses". Figures for the third quarter of 2008 have been adequatelyreclassified to allow a homogeneous comparison among the different periods.

The net interest income stood at euro 554 million, down by 5.6%, as a result of the reduction in spreads, against a good increase in traded volumes. Compared with the third quarter of 2008, interest income fell by -17.6%

to euro 895.9 million and interest expenses by -31.7% to euro 341.8 million.

INTEREST INCOME (figures in thousands of euro)

30/9/09 30/6/09 2008 30/9/08 absolute %

Financial assets held for trading 17,098 13,865 62,302 42,727 - 25,629 -60.0Available-for-sale financial assets (1) 79,817 50,387 91,276 67,192 12,625 18.8Financial assets held to maturity 12,919 9,303 6,348 2,213 10,706 …Loans to banks 21,415 17,192 61,328 46,969 - 25,554 -54.4Loans to customers (2) 744,089 530,086 1,212,362 884,260 - 140,171 -15.9Financial assets sold and not cancelled (2) 19,672 12,804 56,029 42,764 - 23,092 -54.0Other intangible 876 612 1,781 1,598 - 722 -45.2TOTAL INTEREST INCOME 895,886 634,249 1,491,426 1,087,723 - 191,837 -17.6

Change 9/09- 9/08

47

INTEREST EXPENSES (figures in thousands of euro)

30/9/09 30/6/09 2008 30/9/08 absolute %

Amounts owed to banks 8,984 6,920 61,923 53,582 - 44,598 -83.2Amounts owed to customers 92,518 66,662 171,966 125,164 - 32,646 -26.1Securities in issue (2) 202,640 148,795 345,576 248,432 - 45,792 -18.4Financial liabilities designated at fair value 5,130 2,367 15,660 11,719 - 6,589 -56.2Financial liabilities corresponding to assets soldand not cancelled (2) 10,067 8,125 54,323 42,307 - 32,240 -76.2Other liabilities 247 189 3,213 3,068 - 2,821 -91.9Hedging derivatives 22,253 15,918 28,056 16,565 5,688 34.3TOTAL INTEREST EXPENSES 341,839 248,976 680,717 500,837 - 158,998 -31.7

The comparison periods have been adequately reclassified to allow a homogeneous comparison. Following some recent clarifications provided by the Bank of Italy, interestincome on financial assets sold and not cancelled related to securitisation transactions for which no "derecognition" has taken place has been reclassified to loans tocustomers.

Change 9/09- 9/08

(1) In the financial statements as at 31 December 2008 euro 3,405 thousand have been reported in the interest income regarding financial assets designated at fair valueand not in the sub-item relative to the available-for-sale financial assets. Figures have now been adequately adjusted.

(2) By letter no. 8309 dated 5 January 2009 ("Regulations on bank financial statements"), the Bank of Italy has sent, inter alia, a note containing some modifications relativeto the tables of the explanatory notes. In particular, a specific item "Securities in issue" has been introduced in table C.2.2 "Financial liabilities corresponding to financial assetssold and not cancelled" of part E "Information on risks and the related hedging policies". This item has to gather in the financial statements all the securities issued by thevehicle companies consolidated on a line-by-line basis corresponding to assets sold and cancelled from the financial statements of the "originating" bank. In light of such newprovision the Bank has decided to record also interest income on the mortgages transferred to the consolidated vehicle company in "interest income on assets sold and notcancelled" and not in "interest income on loans to customers", and the interest expenses on securities issued by the vehicle company in "interest expenses on financial liabilitiescorresponding to assets sold and not cancelled" and not in "interest expenses on securities in issue".

Net commissions, at euro 202.1 million, registered a 9.6% increase, essentially due to the rise in commission income (euro 227.6

million; +6.8%) and in particular, the 'other services' component, which included growth in commissions for syndicated loans.

COMMISSION INCOME (figures in thousands of euro)

30/9/09 30/6/09 2008 30/9/08 absolute %

Guarantees issued 7,855 5,014 10,405 7,286 569 7.8Management, dealing and consultancy services: 66,379 43,082 95,744 72,360 - 5,981 -8.3 1. Financial instruments trading 679 266 182 146 533 … 2. Currency trading 2,458 1,427 3,524 2,567 - 109 -4.2 3. Asset management 26,156 17,187 45,714 35,614 - 9,458 -26.6 4. Securities custody and administration 3,016 1,822 3,148 2,226 790 35.5 5. Custodian bank 2,405 1,422 3,665 2,893 - 488 -16.9 6. Placement of securities 9,039 5,834 13,271 10,721 - 1,682 -15.7 7. Collection of orders 10,050 6,767 10,283 6,947 3,103 44.7 9. Distribution of third-party services 12,576 8,357 15,957 11,246 1,330 11.8 - asset management 59 38 72 45 14 31.1 - insurance products 1,397 942 2,235 1,488 - 91 -6.1 - other products 11,120 7,377 13,650 9,713 1,407 14.5Collection and payment services 48,172 30,420 62,615 45,953 2,219 4.8Servicing for securitizations 711 639 1,109 768 - 57 -7.4Factoring services 1,042 737 1,232 875 167 19.1Other services 103,428 67,103 120,658 85,864 17,564 20.5

TOTAL COMMISSION INCOME 227,587 146,995 291,763 213,106 14,481 6.8

Change 9/09- 9/08

48

COMMISSION EXPENSES (figures in thousands of euro)

30/9/09 30/6/09 2008 30/9/08 absolute %

Guarantees received 371 284 725 619 - 248 -40.1Management and intermediation services 2,107 1,548 3,068 2,229 - 122 -5.5 1. Financial instruments trading 646 538 511 358 288 80.4 3. Asset management 5 1 1 - 5 … 4. Securities custody and administration 1,292 891 2,134 1,582 - 290 -18.3 5. Financial instruments placement 1 1 139 103 - 102 -99.0 6. Door-to-door sale of securities, financial products and services 163 117 283 186 - 23 -12.4Collection and payment services 13,885 8,882 21,182 15,805 - 1,920 -12.1Other services 9,100 6,227 13,603 10,071 - 971 -9.6

TOTAL COMMISSION EXPENSES 25,463 16,941 38,578 28,724 - 3,261 -11.4

Change 9/09- 9/08

Dividends and similar revenues amounted to euro 10.3 million, against euro 12.4 million in September 2008. Net income from financial items (captions 80, 90, 100 b/c/d, and 110) was positive at euro 35.8 million, against a negative value of euro 25.6 million in September 2008. In particular, a better net performance in trading

activities (euro 12.5 million against euro -54.9 million last year) contributed to this result as did, to a lesser extent, profits from the disposal or repurchase of financial liabilities, totalling euro 15.3 million (euro 3.2 million in September 2008).

INCOME FROM TRADING ACTIVITIES (figures in thousands of euro)

30/9/09 30/6/09 2008 30/9/08 absolute %

Debt securities 36,483 26,152 -63,283 -54,579 91,062 …Equities & collective investment schemes 1,521 913 -6,207 -10,649 12,170 …Total equities, debt securities & collectiveinvestment schemes 38,004 27,065 -69,490 -65,228 103,232 …Financial derivatives -9,016 -8,625 -2,264 6,911 -15,927 …Credit derivatives -13,137 -9,520 8,094 7,990 -21,127 …Currency differences 7 -139 -3,941 -7,890 7,897 …Other financial assets/liabilities from trading -3,399 -4,746 4,625 3,293 -6,692 …NET INCOME FROM TRADING ACTIVITIES 12,459 4,035 -62,976 -54,924 67,383 …

Change 9/09- 9/08

Gross operating income reached euro 804.1 million, an increase of 5.7%. Net value adjustments due to impairment to loans and other financial items amounted to euro 77.3 million, down against the figure recorded in the same period in 2008 (euro 80.3 million); this item included net value adjustments on loans that totalled euro 60.1 million, down compared with the first nine months of 2008. They derived from adjustments of euro 115.5 million and write-backs totalling euro 55.4 million; these items incorporated the positive effects of the adoption of the statistical

LGD (Loss Given Default) model, developed internally for the evaluation of insignificant bad loan positions (for more details see the section dedicated to impaired loans in “Intermediation activities”). The adjustments on financial assets available for sale (impairment) amounted to euro 17.3 million, including euro 14.4 million on structured debt securities in default and from the automobile sector, and euro 2.9 million on equities. The results for the first nine months of 2009 are

49

NET VALUE ADJUSTMENTS TO LOANS AND OTHER FINANCIAL ITEMS (figures in thousands of euro)

30/9/09 30/6/09 2008 30/9/08 absolute %

Loans to banks 108 111 170 - 108 …Loans to customers 60,031 39,502 76,759 75,336 - 15,305 - 20.3Credit commitments (other financial transactions) - 50 - 131 - 2,175 753 - 803 …Available-for-sale financial assets 17,257 16,651 28,041 4,205 13,052 …NET VALUE ADJUSTMENTS TO LOANS ANDOTHER FINANCIAL ITEMS 77,346 56,133 102,795 80,294 - 2,948 - 3.7

Change 9/09- 9/08

Taking into consideration the contribution from insurance operations, net income from financial and insurance operations increased by 8.5% to euro 715 million. Operating costs amounted to euro 470.4 million, an increase of 10.3% compared with the first nine months of 2008. In particular, administrative costs totalled euro 484.5 million, an increase of 7.6%: staff costs rose by 11.2% to euro 296.3 million and other administrative costs by 2.5% to euro 188.3 million. Staff costs included the allocation to the Supplementary Pension Fund (SPF) estimated based on a discount rate of 4.75%, considered to be consistent with the market

trend in government securities. At the end of the year the assessments by the appointed actuaries will take into account the data gathered and the technical, demographic, economic and financial assumptions as at that date. Net provisions for risks and charges amounted to euro 3.8 million against recoveries in value of euro 3.3 million in September 2008. Net adjustments to tangible and intangible assets amounted to euro 17.6 million and euro 15.2 million respectively, both increasing in comparison with September 2008 (17.8% and 24.3% respectively).

OPERATING COSTS (figures in thousands of euro)

30/9/09 30/6/09 2008 30/9/08 absolute %

Staff costs (1) 296,278 204,404 375,472 266,540 29,738 11.2Other administrative costs (1) 188,268 129,403 247,630 183,602 4,666 2.5 - general costs 150,027 103,704 197,150 147,653 2,374 1.6 - indirect taxes 38,241 25,699 50,480 35,949 2,292 6.4Net provisions for risks and charges 3,778 2,773 2,245 - 3,322 7,100 …Amortization and depreciation on: 32,735 21,177 38,707 27,113 5,622 20.7 - intangible fixed assets 15,175 9,607 17,387 12,209 2,966 24.3 - tangible fixed assets 17,560 11,570 21,320 14,904 2,656 17.8Other operating expenses and revenues - 50,620 - 31,612 - 56,577 - 47,406 - 3,214 6.8TOTAL OPERATING COSTS 470,439 326,145 607,477 426,527 43,912 10.3

Change 9/09- 9/08

(1) By letter no. 8309 dated 5 January 2009 ("Regulations on bank financial statements"), the Bank of Italy has established, inter alia that conventionally fees paid to the

statutory auditors have to be recorded under sub-item "a) staff costs" and not under item "b) other administrative expenses". Figures relating to September 2008 were modified

by reclassifying an amount equal to euro 564 thousand from sub-item "b) other administrative expenses" to sub-item "a) staff costs" in order to allow a homogeneous

comparison among different periods.

Other net operating revenues increased by 6.8% to euro 50.6 million, compared to the first nine months of 2008.

50

OTHER OPERATING REVENUES AND EXPENSES (figures in thousands of euro)

30/9/09 30/6/09 2008 30/9/08 absolute %

Lease income and rent 14,638 9,598 18,464 14,124 514 3.6Charges to third parties: 33,705 22,290 43,676 32,790 915 2.8 recovery of taxes 32,724 21,635 42,195 31,680 1,044 3.3 customer insurance premiums 981 655 1,481 1,110 - 129 - 11.6Other revenues 16,550 9,336 23,914 16,259 291 1.8Total other revenues 64,893 41,224 86,054 63,173 1,720 2.7Operating costs on financial leases - 289 - 190 - 2,027 - 1,748 1,459 - 83.5Ordinary maintenance costs on investment property - 3,732 - 2,015 - 3,783 - 2,951 - 781 26.5Expenses for improvement of third parties’ assets - 828 - 591 - 1,325 - 894 66 - 7.4Other expenses - 9,424 - 6,816 - 22,342 - 10,174 750 - 7.4Total other expenses - 14,273 - 9,612 - 29,477 - 15,767 1,494 - 9.5

TOTAL NET REVENUES 50,620 31,612 56,577 47,406 3,214 6.8

Change 9/09- 9/08

Also taking into consideration profits equity investments of euro 6.5 million and losses on the disposal of investments totalling euro 11 thousand (euro 22 thousand in September 2008), operating income amounted to euro 251 million, 6.7% higher than in the first nine months of 2008. Income tax provisions stood at euro 85.1 million, a sharp increase compared to the euro 67.1 million September 2008, which benefitted from the positive non-recurring effects, amounting to euro 30 million, attributed principally to the application of substitute tax to off-balance sheet differences (as set forth by the provisions of Law no. 244/2007, which allowed for the realignment between statutory and tax values of goodwill and instrumental Group properties) which involved the use of deferred tax liabilities duly set aside. Taking into account this increase and the profit attributable to minority interests, at euro 2.6 million (euro 5.1 million in September 2008), net profit amounted to euro 163.3 million, slightly up on the euro 163 million recorded in September 2008.

Also taking into consideration the profit components charged directly to shareholders’ equity, the statement of comprehensive income showed a net income of euro 377.5 million, a considerable increase on the euro 25.6 million of the first nine months of 2008. This increase was due to the general improvement in the reserves relating to securities available for sale (see the paragraph “Intermediation activities” in the section on financial assets).

DIVIDENDS DISTRIBUTED BY THE PARENT BANK BANCA CARIGE

Over the course of the financial year, in accordance with the Shareholders’ Meeting resolution of 29 April 2009, the Parent Bank distributed euro 223,468,934.24, corresponding to the net profit achieved in the 2008 financial year (euro 223,468,916.00) and the reserve for dividends on own shares (euro 18.24) as follows:

DISTRIBUTION OF NET PROFIT

Net profit 223,468,916.00Reserve for dividends on own shares 18.24Total 223,468,934.24Allocation to the legal reserve 22,346,891.60Allocation to the extraordinary reserve 54,411,940.66Dividend of ordinary shares (0.08 € per share) 129,279,130.48Dividend of savings shares (0.1 € per share) 17,430,971.50

Dividend payment took place on 7 May 2009 (coupon detachment date: 4 May 2009), in compliance with the express recommendation of Borsa Italiana SpA to the companies issuing shares listed on the Stock Exchange.

51

INSURANCE ACTIVITIES

PREMIUMS-RESERVES-ECONOMIC RESULT (figures in thousands of euro)

Change %9/09 9/09

30/09/09 30/06/09 31/12/08 30/09/08 12/08 9/08

Net premiums 1,135,091 784,598 927,061 626,910 81.1Non-life insurance 359,676 233,621 505,218 381,875 - 5.8 recognised gross premiums (+) 396,050 280,904 558,278 409,053 - 3.2 premiums ceded to reinsurers (-) 27,464 17,764 67,265 21,011 30.7 variations (+/-) to premium reserve gross balances -5,458 -25,799 13,979 2,920 … variations (-/+) to premium reserves charged on reinsurers -3,452 -3,720 226 -9,087 - 62.0Life insurance 775,415 550,977 421,843 245,035 … recognised gross premiums (+) 780,817 556,101 432,065 251,479 … premiums ceded to reinsurers (-) 5,402 5,124 10,222 6,444 - 16.2

Technical reserves 3,047,281 2,804,509 2,292,606 2,139,553 32.9 42.4Non-life insurance 945,992 947,783 936,043 923,789 1.1 2.4 premium reserves 234,721 255,061 229,262 240,321 2.4 - 2.3 accident reserves 710,546 691,997 706,056 682,804 0.6 4.1 other reserves 725 725 725 664 - 9.2Life insurance 2,101,289 1,856,726 1,356,563 1,215,764 54.9 72.8 mathematical reserves 2,106,593 1,905,390 1,395,850 1,198,175 50.9 75.8 reserves for amounts payable 8,745 5,352 6,040 4,305 44.8 … other reserves -14,049 -54,016 -45,327 13,284 - 69.0 …

Technical reserves charged on reinsurers 179,856 174,802 171,403 159,497 4.9 12.8Non-life insurance 89,818 86,888 79,876 66,851 12.4 34.4 premium reserves 12,089 11,821 12,735 7,875 - 5.1 53.5 accident reserves 77,729 75,067 67,141 58,976 15.8 31.8 other reserves - - - - … …Life insurance 90,038 87,914 91,527 92,646 - 1.6 - 2.8 mathematical reserves 88,073 89,206 93,153 91,055 - 5.5 - 3.3 reserves for amounts payable 3,333 2,040 2,351 1,591 41.8 … other reserves -1,368 -3,332 -3,977 - - 65.6 …

Balance of the insurance management -11,742 -3,540 -17,120 -21,232 - 44.7Premiums excluding reinsurance 1,135,091 784,598 927,061 626,910 81.1Net variations to technical reserves -718,745 -508,826 -321,660 -185,222 …Claims incurred and settled during the period -336,617 -215,636 -512,296 -356,989 - 5.7Other insurance revenues and expenses -91,471 -63,676 -110,225 -105,931 - 13.7

Net premiums from insurance activities amounted to euro 1,135.1 million, up by 81.1% compared with September 2008; in detail, net premiums from the non-life insurance segment fell by 5.8% to euro 359.7 million, while those from the life insurance segment increased from euro 245 to million to euro 775.4 million. This growth was due to the increase in the total premiums related to traditional products sold through the bank channel. Technical reserves stood at euro 3,047.3 million, up 32.9% compared with December 2008 and 42.4% on September 2008; the change mainly concerned the life insurance segment, with an increase of 54.9% (up from euro 1,215.8 to euro 2,101.3 million in the nine months) while the non-life insurance segment rose by 1.1% (from euro 923.8 to euro 946 million). Technical reserves charged on reinsurers (euro 179.9 million) rose slightly compared with December 2008 (+4.9%) and increased compared with September 2008 (+12.8%).

The balance of insurance operations increased from euro -21.2 to euro -11.7 million; more specifically, net premiums rose by 81.1% to euro 1,135.1 million, claims in the period fell by 5.7% to euro 336.6 million, the net change in technical reserves stood at euro -718.7 million (euro -185.2 million in September 2008) and net charges from insurance operations stood at euro 91.5 million compared with euro 105.9 million recorded in September 2008. The economic result of Group Insurance Companies for the period, also taking into consideration non-technical items, was positive for euro 2.9 million compared with a loss of euro 15.4 million in the same period in 2008.

52

TRANSACTIONS WITH RELATED

PARTIES

The Group maintains relations with Banca Carige shareholders who are able to exercise a significant influence, subsidiaries and other related parties regulated under market conditions. Please note that in the first nine months, no transactions were concluded with related parties subject to public

disclosure; in fact, the transactions completed during the period fall within the ordinary operations of the Group and do not possess the relevance requirements as regards the impact on the financial statements. As at 30 September 2009, asset and liability transactions (with the exception of directors’ and statutory auditors’ fees, which are published annually in the Explanatory Notes to the Consolidated Financial Statements) were as follows:

Assets Liabilities Guarantees Revenues Expenses Dividends (2) (3)

and commitments

4,334 4 - 264 211 76,321

- - - - - -

Companies subject to significant influence 14,607 14,896 50 39 8,118 -

TOTAL 18,941 14,900 50 303 8,329 76,321

(1) Relations with subsidiaries included in the area of consolidation were not taken into account.(2) Dividends collected by companies subject to significant influence netted off in the consolidation process were not shown.(3) Dividends distributed by Banca Carige.

RELATIONS WITH OTHER RELATED PARTIES (figures in thousands of euro)

Assets Liabilities Guarantees Revenues Expenses Purchase of assets Insurance Indemnitiesand commitments and services premiums and insurance

redemptions

65,657 19,422 17,865 2,018 201 124 288 8

65,657 19,422 17,865 2,018 201 124 288 8

Carige shareholders who exercise a significant influence Subsidiaries outside the area of consolidation

RELATIONS WITH SHAREHOLDERS WHO EXERCISE A SIGNIFICANT INFLUENCE AND WITH INVESTEE COMPANIES (1) (figures in thousands of euro)

Other related parties are defined as: - executives with strategic responsibility for the

entity and its parent bank; this refers to those who have the power and responsibility, directly or indirectly, for the management and control of the Parent Bank’s activities, including the Directors, the Statutory Auditors, the Managing Director or the General Manager, the Deputy General Managers and the Central Managers;

- close relatives of one of the subjects referred to in the previous point; this refers to persons that can be expected to influence, or be influenced by, the interested party in their relations with

the Bank and therefore, by way of example, may include the common-law spouse and persons dependent upon the interested party or upon the common-law spouse;

- parties controlled by, jointly controlled by or subject to the significant influence of one of the entities pursuant to the previous points or in which said entities hold, directly or indirectly, a significant portion of the voting rights.

Overall, the share of the total of relations with related parties was moderate, as shown in the following table:

53

WEIGHT OF TRANSACTIONS WITH OTHER RELATED PARTIES AS AT 30/9/2009 (figures in thousands of euro)

Amount of transactions

with related parties

Amount of balance sheet

item

% weight

AssetsItem 70 - Loans to customers 84,226 21,644,936 0.4%Other asset items 372 12,763,730 0.0%

LiabilitiesItem 20 - Amounts owed to customers 34,313 14,042,180 0.2%Other liability Items (1) 9 16,568,178 0.0%

Income statementItem 10 - Interest income 2,025 895,886 0.2%Item 20 - Interest expenses 544 341,839 0.2%Item 160 - Balance of other expenses/revenues from insurance management (+/-) (7,989) (1,146,833) 0.7%Other positive Items in the income statement 584 1,468,767 0.0%Other negative Items in the income statement (2) 129 624,942 0.0%

(1) The weight is calculated on the other liability items, except for those referred to the shareholders' equity.(2) The weight is calculated on the other negative items, except for taxes and profit attributed to minority interests.

EQUITY INVESTMENTS

Equity investments stood at euro 61 million, up compared with the euro 55.1 million at the end

of 2008, due to the effect of the increase in the shareholders’ equity of the companies Autostrada dei Fiori SpA and Recina Servizi SpA.

ANNUAL CHANGES IN EQUITY INVESTMENTS (figures in thousands of euro)

30/9/09 30/6/09 31/12/08 30/9/08

A. Opening balance 55,067 55,067 56,256 56,256B. Additions 6,042 3,067 96 852

B.1 Acquisitions - - - 6B.2 Write-backs - - - - B.3 Revaluations - - - - B.4 Other changes 6,042 3,067 96 846

C. Decreases 64 12 1,285 428C1. Sales - - - - C2. Value adjustments 52 - 78 - C3. Other changes 12 12 1,207 428

D. Closing balance 61,045 58,122 55,067 56,680

OWN SHARES, CASH FLOW STATEMENT AND SHAREHOLDERS’ EQUITY

At the end of the third quarter of 2009, and similar to the situation in December and September 2008, Banca Carige held an essentially insignificant number of own shares (less than euro 500). During the first nine months, operating assets generated liquidity amounting to euro 179.6 million. In particular, management generated a positive flow for euro 937.5 million, financial assets absorbed liquidity

totalling euro 2,118.1 million, and financial liabilities generated liquidity amounting to euro 1,360.3 million. Liquidity absorbed by investing activities amounted to euro 69 million, and that absorbed by funding activity totalled euro 157.9 million. In the first nine months of 2009, net liquidity of euro 47.4 million was absorbed. The consolidated shareholders’ equity and the net consolidated profit pertaining to the Parent Bank are obtained from the net shareholders’ equity and profit for the year of Banca Carige through the following changes:

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Shareholders' equity Income statementBalance as at 30/9/2009 - Banca Carige 3,885,844 179,238 Variations on book value -2,047 32,637Value adjustments to allocated gains -7,541 -643Share options survey - subsidiaries -12,844 -598Amortised goodwill (previous accounting periods) -43,485 - Dividends distributed by subsidiaries and written off -49,237 -49,237Dividends distributed by associated companies and written off -511 -511Other -1,904 2,460Consolidated balance as at 30/9/2009 3,768,275 163,346

RECONCILIATION STATEMENT OF BANCA CARIGE SHAREHOLDERS' EQUITY AND INCOMEAND CONSOLIDATED FIGURES (figures in thousands of euro)

RESOURCE MANAGEMENT

The Carige Group’s distribution system is split into three major categories of channels: traditional, remote and mobile. The system of traditional channels is made up of branches, private and corporate consultancy districts, affluent advisors and small business advisors. The number of branches remained unchanged from the beginning of the year, at 643 (of which 253 located in Liguria and 390 outside Liguria) while the increase of 40 units compared with September 2008 was due to the acquisition of branches from the UniCredit Group. In 2009 there were four transfers; three carried out by the Parent Bank (from the branch located in the Genoa’s Eastern Market to Avegno (GE), from Cernobbio (CO) to Saronno (VA), and from Piove di Sacco (PD) to Ancona) and one from Banca Cesare Ponti, which opened the new Genoa Branch, following the transfer of the Milan Branch in Piazza Cadorna. An organisational change also took place during the financial year that led to the formation of the Private Banking Department.

During this change, the service access thresholds were also reviewed, with a redefinition of the perimeter of private and affluent channels: the number of private advisors fell to 112 (139 in December and 136 in September 2008) while the number of affluent advisors increased to 307 (153 in December and 152 in September 2008). The financial consultancy service (corporate), composed of 132 advisors (132 in December and 126 in September 2008), is dedicated to business customers, and the small business service is structured into a network of 276 advisors, an increase compared with the 177 and 176 in December and September 2008. Within the remote channels, the number of “Bancacontinua” branches remained unchanged at 14, while ATM branches totalled 759 (757 in December and 713 in September 2008). Contracts relative to on-line services - internet and call centre - exceeded 180 thousand, an increase over both the nine and twelve-month periods. The Group also has a network of 274 insurance agencies located throughout the entire national territory, which place bank products (261 in December and 269 in September 2008).

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BRANCH NETWORK

A) TRADITIONAL CHANNELS30/9/09 30/6/09 31/12/08 30/9/08

number % number % number % number %

NORTHWEST 381 59.3 381 59.3 381 59.3 381 63.2Liguria 253 39.3 252 39.2 252 39.2 252 41.8 - Genoa 139 21.6 138 21.5 138 21.5 138 22.9 - Savona 64 10.0 64 10.0 64 10.0 64 10.6 - Imperia 29 4.5 29 4.5 29 4.5 29 4.8 - La Spezia 21 3.3 21 3.3 21 3.3 21 3.5Lombardy 71 11.0 72 11.2 72 11.2 72 11.9Piedmont 56 8.7 56 8.7 56 8.7 56 9.3Valle d'Aosta 1 0.2 1 0.2 1 0.2 1 0.2NORTHEAST 74 11.5 74 11.5 75 11.7 69 11.4Veneto 46 7.2 46 7.2 47 7.3 23 3.8Emilia Romagna 28 4.4 28 4.4 28 4.4 46 7.6CENTRE 104 16.2 104 16.2 103 16.0 95 15.8Tuscany 57 8.9 57 8.9 57 8.9 57 9.5Latium 40 6.2 40 6.2 40 6.2 33 5.5Marches 5 0.8 5 0.8 4 0.6 4 0.7Umbria 2 0.3 2 0.3 2 0.3 1 0.2SOUTH AND ISLANDS 83 12.9 83 12.9 83 12.9 57 9.5Apulia 9 1.4 9 1.4 9 1.4 37 6.1Sicily 63 9.8 63 9.8 63 9.8 9 1.5Sardinia 11 1.7 11 1.7 11 1.7 11 1.8

ABROAD: Nice (France) 1 0.2 1 0.2 1 0.2 1 0.2TOTAL NUMBER OF BRANCHES 643 100.0 643 100.0 643 100.0 603 100.0

30/9/09 30/6/09 31/12/08 30/9/08

Private consultants 112 111 139 136Corporate consultants 132 132 132 126Affluent consultants 307 307 153 152Small business consultants 276 278 177 176TOTAL CONSULTANTS 827 828 601 590

B) REMOTE CHANNELS 30/9/09 30/6/09 31/12/08 30/9/08

ATM - Bancomat 759 758 757 713Self-service "Bancacontinua" branches 14 14 14 18On line services (1) 180,243 176,117 165,509 153,434

(1) Number of Internet banking and Call center contracts.

C) MOBILE CHANNELS 30/9/09 30/6/09 31/12/08 30/9/08Insurance agencies (2) 274 272 261 269

(2) Agents of Group insurance subsidiaries distributing banking products. At the end of September 2009, Group personnel totalled 5,881 units (5,906 in December and 5,635 in September 2008). Bank staff amounted to 5,492 units, down compared with 5,523 units in December 2008, due to the effect of 31 voluntary redundancies; by contrast, with respect to the 5,264 units registered in September 2008, there was an increase due essentially to the joining of employees from the forty branches acquired from the UniCredit Group. Executives

represented 1.2% of the aggregate and managers 25%, while the rest of the personnel accounted for 73.8% of the aggregate. The number of the employees operating on the market was equal to 70.5% of the total (68.1% in December and 66.6% in September 2008, respectively). Insurance personnel amounted to 389 units (383 and 371 as at 31 December and 30 September 2008 respectively).

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PERSONNEL30/9/09 30/6/09 31/12/08 30/9/08

number % number % number % number %

Number of bank employees

Grade Executives 65 1.2 68 1.2 70 1.3 70 1.3 Managers 1,371 25.0 1,382 25.1 1,401 25.4 1,286 24.4 Other employees 4,056 73.8 4,046 73.6 4,052 73.4 3,908 74.2TOTAL 5,492 100.0 5,496 100.0 5,523 100.0 5,264 100.0Activity Head offices 1,622 29.5 1,756 32.0 1,762 31.9 1,760 33.4 Branches 3,870 70.5 3,730 67.9 3,761 68.1 3,504 66.6

Insurance personnel 389 392 383 371

TOTAL (banking and insurance) 5,881 5,888 5,906 5,635

RESULTS BY ECONOMIC BUSINESS SECTOR

IFRS 8 – Operating Segments has become effective as from 1 January 2009 replacing completely IAS 14 – Segment Reporting. The new regulation focuses on the definition of the reporting segments according to the so-called “management approach”, i.e. required identification of operating segments based on internal reports that were regularly reviewed by the company's "chief operating decision maker" in order to make strategic decisions: therefore, the distinction between the primary and secondary sector disappears. With reference to the Carige Group, the business model has a twofold importance: territorial, given that the sales network is broken down into geographical areas, Liguria and outside Liguria (hereinafter Extra-Liguria); that for the customer segment, considering that the organisational and operational structure provides for specific service approaches (in terms of products, prices and infrastructures) aimed at the different types of customer. In compliance with what was provided by the “management approach”, the company chose as a model of reference for segment reporting the “territorial” reorganisation that broke down the results and the activities among the following operating segments: - “Liguria”: operating customers at the

branches of the Parent Bank located in said geographical area, together with the results of Cassa di Risparmio di Savona, situated prevalently in said area;

- “Extra-Liguria”: operating customers at the branch banks of the Parent Bank located in the rest of the regions, together with the

results of subsidiary banks located in these geographic areas (Cassa di Risparmio di Carrara, Banca del Monte di Lucca and Banca Cesare Ponti);

- “Other operating sectors”: includes residual customers and the other Group companies that perform asset management, insurance (life and non-life segments), financial and instrumental activities;

- “Netting-off and unallocated items”: residual sector explicitly provided for by legislation to give evidence of the intra-group netting-off and reconciliation items compared with the accounting figures.

This report shall be integrated with a summary representation by customer segment of the income statement and balance-sheet values. In order to allow a significant time-based comparison, the data for preceding periods are re-worked in line with current disclosure approaches. At the end of the third quarter of 2009 the income statement and balance sheet results of the geographical operating sectors were as follows: - the Liguria network recorded a gross

operating income of euro 360.9 million, an increase of 2.6% compared with the first nine months of 2008; net of value adjustments, income from financial operations amounted to euro 333.9 million; operating costs fell by 1.7% compared with September 2008 and stood at euro 157.6 million; and cost income amounted to 43.7% (at the end of the nine months of 2008 this figure amounted to 45.6%). With regard to volumes, loans to customers stood at euro 9,361 million, up by

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16.5% over 30 September 2008; amounts owed to customers totalled euro 6,770 million (+26.6% compared with 30 September 2008); securities in issue and financial liabilities designated at fair value, amounting to euro 4,313 million were essentially stable compared with 30 September 2008 (+1.6%). The Financial Intermediation Activities (FIA) amounted to euro 22,278 million (+2%);

- the Extra Liguria network – which was expanded during 2008 with the addition of 119 branches acquired from Intesa SanPaolo (March 2008) and UniCredit (end of 2008) – recorded an increase in gross operating income of 12.5% compared with the third quarter of 2008 at euro 344.2 and income from financial operations of euro 283.2 million (+8.9% compared with September 2008). Operating costs, amounting to euro 205.7 million, rose by 15.5% compared with the first nine months of 2008; cost income

stood at 59.8% (58.2% as at 30 September 2008). With regard to the trend in lending volumes, loans to customers increased by 10.6% compared with 30 September 2008 at euro 10,374 million, amounts owed to customers totalled euro 6,081 million (+18.0% over September 2008), and securities in issue stood at euro 2,197 million, up by 11.3%. Financial Intermediation Activities (FIA) amounted to euro 15,844 million, an increase of 6.8% on 30 September 2008;

- the other operating sectors recorded a profit from ordinary activities of euro 40.4 million, essentially in line with the figure for the first nine months of 2008 (-2.2%); with respect to the total figures for the Group, this sector incorporates almost 40% of the securities in issue and financial liabilities designated at fair value, amounting to euro 3,766 million. The FIA amounted to euro 8,582 million (+21% compared with 30 September 2008).

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Business geographic areas (figures in thousands of euro)

Liguria Extra-LiguriaOther

operating segments

Netting-off and other

itemsTOTAL

Gross operating income (1) 9 months 2009 360,905 344,180 130,867 -43,612 792,340 1st half 2009 234,267 227,595 128,506 -43,209 547,159 year 2008 453,649 427,453 183,389 -51,021 1,013,470 9 months 2008 351,653 305,977 129,724 -48,065 739,289

Net income from financial andinsurance management (2) 9 months 2009 333,924 283,193 141,423 -37,062 721,478 1st half 2009 215,127 188,198 130,885 -39,626 494,584 year 2008 438,840 372,056 151,233 -45,905 916,224 9 months 2008 322,984 260,086 124,354 -45,721 661,703

Operating costs 9 months 2009 -157,582 -205,714 -101,030 -6,113 -470,439 1st half 2009 -122,324 -156,290 -43,874 -3,657 -326,145 year 2008 -234,772 -255,354 -109,892 -7,459 -607,477 9 months 2008 -160,380 -178,153 -83,061 -4,933 -426,527

Profit (Loss) from ordinaryactivities 9 months 2009 176,342 77,479 40,393 -43,175 251,039 1st half 2009 92,803 31,908 87,011 -43,283 168,439 year 2008 204,068 116,702 41,341 -53,364 308,747 9 months 2008 162,604 81,933 41,293 -50,654 235,176

Cost income (%) 9 months 2009 43.7 59.8 77.2 59.4 1st half 2009 52.2 68.7 34.1 59.6 year 2008 51.8 59.7 59.9 -14.6 59.9 9 months 2008 45.6 58.2 64.0 -10.3 57.7

Net interbank30/09/2009 - - 713,950 -905,463 -191,51330/06/2009 - - 1,715,534 -1,153,336 562,19831/12/2008 - - 1,361,331 -913,966 447,36530/09/2008 - - 1,273,184 -823,413 449,771

Loans to customers30/09/2009 9,361,274 10,373,510 2,188,133 -277,981 21,644,93630/06/2009 9,388,292 10,247,959 2,186,858 -219,724 21,603,38531/12/2008 8,727,942 10,016,230 2,619,575 -447,392 20,916,35530/09/2008 8,038,427 9,377,524 1,991,767 -96,484 19,311,234

Amounts owed to customers (a)

30/09/2009 6,769,571 6,080,625 1,643,551 -451,567 14,042,18030/06/2009 6,549,765 6,029,283 1,304,582 -471,313 13,412,31731/12/2008 5,996,811 5,606,411 785,521 -383,304 12,005,43930/09/2008 5,348,665 5,153,826 845,312 -581,091 10,766,712

Securities in issue and financialliabilities designated at fairvalue (3) (b)30/09/2009 4,313,492 2,197,325 3,765,626 -832,777 9,443,66630/06/2009 4,373,528 2,207,224 4,538,750 -820,349 10,299,15331/12/2008 4,270,054 2,081,721 4,593,338 -786,472 10,158,64130/09/2008 4,247,627 1,973,918 3,928,277 -440,605 9,709,217

Other financial assets (c)30/09/2009 11,194,861 7,566,496 3,173,122 -801,850 21,132,62930/06/2009 11,166,467 7,532,268 2,994,036 -772,818 20,919,95331/12/2008 11,328,512 7,771,784 2,513,557 -653,585 20,960,26830/09/2008 12,248,502 7,711,409 2,319,376 -374,155 21,905,132

Financial IntermediationActivities (FIA) (d= a+b+c)30/09/2009 22,277,923 15,844,446 8,582,300 -2,086,194 44,618,47530/06/2009 22,089,760 15,768,775 8,837,368 -2,064,480 44,631,42331/12/2008 21,595,377 15,459,916 7,892,416 -1,823,361 43,124,34830/09/2008 21,844,794 14,839,153 7,092,965 -1,395,851 42,381,061

(1) Including income from insurance management(2) Including profits from equity investments and disposal of investments.

(3) Carige Vita Nuova liabilities, designated at fair value and relating to products for which risk is borne by the insured, have not been included in this table.

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Business geographic areas (% on total)

Liguria Extra-LiguriaOther

operating segments

Netting-off and other

itemsTOTAL

Gross operating income (1) 9 months 2009 45.5 43.4 16.5 -5.4 100.0 1st half 2009 42.8 41.6 23.5 -7.9 100.0 year 2008 44.8 42.2 18.1 -5.1 100.0 9 months 2008 47.6 41.4 17.5 -6.5 100.0

Net income from financial and insurancemanagement (2) 9 months 2009 46.3 39.3 19.6 -5.2 100.0 1st half 2009 43.5 38.1 26.4 -8.0 100.0 year 2008 47.9 40.6 16.5 -5.0 100.0 9 months 2008 48.8 39.3 18.8 -6.9 100.0

Operating costs 9 months 2009 33.5 43.7 21.5 1.3 100.0 1st half 2009 37.5 47.9 13.5 1.1 100.0 year 2008 38.6 42.0 18.1 1.3 100.0 9 months 2008 37.6 41.8 19.5 1.1 100.0

Profit (Loss) from ordinary activities 9 months 2009 70.2 30.9 16.1 -17.2 100.0 1st half 2009 55.1 18.9 51.7 -25.7 100.0 year 2008 66.1 37.8 13.4 -17.3 100.0 9 months 2008 69.1 34.8 17.6 -21.5 100.0

Loans to customers30/09/2009 43.2 47.9 10.1 -1.2 100.030/06/2009 43.5 47.4 10.0 -0.9 100.031/12/2008 41.7 47.9 12.5 -2.1 100.030/09/2008 41.6 48.6 10.3 -0.5 100.0

Amounts owed to customers30/09/2009 48.2 43.3 11.7 -3.2 100.030/06/2009 48.8 45.0 9.7 -3.5 100.031/12/2008 50.0 46.7 6.5 -3.2 100.030/09/2008 49.7 47.9 7.9 -5.5 100.0

Securities in issue and financial liabilitiesdesignated at fair value (3)30/09/2009 45.7 23.3 39.9 -8.9 100.030/06/2009 42.5 21.4 44.1 -8.0 100.031/12/2008 42.0 20.5 45.2 -7.7 100.030/09/2008 43.7 20.3 40.5 -4.5 100.0

Other financial assets30/09/2009 53.0 35.8 15.0 -3.8 100.030/06/2009 53.4 36.0 14.3 -3.7 100.031/12/2008 54.0 37.1 12.0 -3.1 100.030/09/2008 55.9 35.2 10.6 -1.7 100.0

Financial Intermediation Activities (FIA)30/09/2009 49.9 35.5 19.2 -4.6 100.030/06/2009 49.5 35.3 19.8 -4.6 100.031/12/2008 50.1 35.8 18.3 -4.2 100.030/09/2008 51.5 35.0 16.7 -3.2 100.0

(1) Including income from insurance management(2) Including profits from equity investments and disposal of investments.

(3) Carige Vita Nuova liabilities, designated at fair value and relating to products for which risk is borne by the insured, have not been included in this table.

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With regard to the customer segments, the increase in gross operating income was mainly concentrated in the Corporate segment (euro 175.5 million, +17% compared with the first nine months of 2008), primarily as a result of the quantity of lending volumes. The Private and Affluent and the Retail segments, with gross operating income of euro 159 million and euro 334.4 million respectively, recorded a more contained increase given that, despite the increase in volumes, the income from direct deposits reflected the reduction in spreads. The income from financial and insurance operations for the Private and Affluent segment amounted to euro 158.7 million, +6.4% on September 2008. The Corporate segment generated income of euro 131.1 million, +8.5% on September 2008; and the Retail segment with an income of euro 290.4 million, remained in line with the figures as at September 2008. The rise in operating costs was mainly concentrated in the Retail segment (euro 231.3 million, +11.5% on September 2008); the Private and Affluent segment recorded operating costs of euro 92.2 million, whereas the

Corporate segment ended the first nine months of 2009 with a figure of euro 33.1 million. With regard to volumes, loans to customers increased at Group level, including almost 80% driven by the Corporate segment, with a value at the end of September 2009 of euro 10,316 million (47.7% of the Group total), +22% compared with 30 September 2008. Within the direct deposits, the growth was driven by the amounts owed to customers: the figure for the Private and Affluent segment stood at euro 5,768 million (41.1% of the Group total, +41.9% compared with 30 September 2008), whereas the Retail segment amounted to euro 5,516 million (39.3% of the Group total), +31.3% compared with 30 September 2008. Indirect deposits of ordinary customers showed a reduction, compared with 30 September 2008, mainly concentrated in the Private and Affluent segment (euro 13,539 million, -8.1%), which holds 64.1% of the aggregate at Group level. The FIA amounted to euro 24,057 million for the Private and Affluent segment (53.9% of the Group total), euro 2,461 million for the Corporate segment, and euro 10,026 for the Retail segment.

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Customer segments (figures in thousands of euro)

Private and Affluent Corporate Retail

Total customer segments

Total financial

statements

Gross operating income (1)9 months 2009 158,980 175,460 334,367 668,807 792,3401st half 2009 101,355 115,338 222,958 439,651 547,159year 2008 199,179 213,470 449,388 862,037 1,013,4709 months 2008 149,345 150,029 333,354 632,728 739,289

Net income from financial and insurancemanagement (2)9 months 2009 158,687 131,100 290,357 580,144 721,4781st half 2009 101,306 84,238 194,942 380,486 494,584year 2008 199,629 177,872 414,636 792,137 916,2249 months 2008 149,177 120,785 287,781 557,743 661,703

Operating costs9 months 2009 -92,151 -33,140 -231,255 -356,546 -470,4391st half 2009 -65,310 -24,297 -160,390 -249,997 -326,145year 2008 -119,701 -44,883 -295,577 -460,161 -607,4779 months 2008 -90,310 -32,437 -207,364 -330,111 -426,527

Profit (Loss) from ordinary activities9 months 2009 66,536 97,960 59,102 223,598 251,0391st half 2009 35,996 59,941 34,552 130,489 168,439year 2008 79,928 132,989 119,059 331,976 308,7479 months 2008 58,867 88,348 80,417 227,632 235,176

Number of customers9 months 2009 182,273 17,906 997,487 1,197,666 1,238,2551st half 2009 177,403 17,552 951,030 1,145,985 1,184,345year 2008 186,894 17,038 1,020,777 1,224,709 1,263,4439 months 2008 181,387 16,519 936,511 1,134,417 1,170,830

Profit per customer (figures in euro)9 months 2009 365.0 5,470.8 59.31st half 2009 202.9 3,415.1 36.3year 2008 427.7 7,805.4 116.69 months 2008 324.5 5,348.2 85.9

Loans to customers30/09/2009 513,122 10,316,307 8,270,274 19,099,703 21,644,93630/06/2009 502,393 10,100,481 8,266,335 18,869,209 21,603,38531/12/2008 521,185 9,011,419 8,358,329 17,890,933 20,916,35530/09/2008 524,505 8,453,700 7,967,544 16,945,749 19,311,234

Amounts owed to customers (a)30/09/2009 5,768,321 1,511,809 5,515,828 12,795,958 14,042,18030/06/2009 5,449,364 1,412,763 5,259,591 12,121,718 13,412,31731/12/2008 4,804,862 1,243,551 4,566,903 10,615,316 12,005,43930/09/2008 4,064,780 1,119,905 4,201,648 9,386,333 10,766,712

Securities in issue and financial liabilitiesdesignated at fair value (3) (b)

30/09/2009 4,748,954 104,445 1,457,167 6,310,566 9,443,66630/06/2009 4,813,239 116,168 1,468,421 6,397,828 10,299,15331/12/2008 4,771,174 124,829 1,393,390 6,289,393 10,158,64130/09/2008 4,579,289 121,462 1,354,503 6,055,254 9,709,217

Other financial assets (c)30/09/2009 13,539,309 844,842 3,053,296 17,437,447 21,132,62930/06/2009 13,439,273 884,638 3,120,552 17,444,463 20,919,95331/12/2008 13,925,248 853,844 3,211,973 17,991,065 20,960,26830/09/2008 14,731,859 861,888 3,268,659 18,862,406 21,905,132

Financial Intermediation Activities (FIA) (d= a + b + c)30/09/2009 24,056,583 2,461,096 10,026,291 36,543,970 44,618,47530/06/2009 23,701,876 2,413,569 9,848,564 35,964,009 44,631,42331/12/2008 23,501,284 2,222,224 9,172,266 34,895,774 43,124,34830/09/2008 23,375,928 2,103,255 8,824,810 34,303,993 42,381,061

(1) Including income from insurance management(2) Including profits from equity investments and disposal of investments.(3) Carige Vita Nuova liabilities, designated at fair value and relating to products for which risk is borne by the insured, are not included in this table.

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RISK MANAGEMENT

A. General aspects In the Carige Group, any policies related to the assumption of risks are set by the Board of Directors of the Parent Bank at the moment of the preparation of strategic planning and the annual budget. The Parent Bank performs orientation and supervisory functions as regards all risks, in particular by managing, in an integrated context, the Pillar 1 and Pillar 2 risks, in accordance with the provisions contained in the Supervisory Instructions of the Bank of Italy (Circ. No. dated 27 December 2006 as amended). The Group Banks operate within specific limits of independence and avail themselves of their own first level control structures. The different risk categories are monitored by the competent functions, Research and Management Control, Risk Management and Credit Monitoring, and the outcome is subject to periodic reporting to the Board of Directors, Executive Management, Asset & Liability Management Committee and to the ICAAP (Internal Capital Adequacy Assessment Process) Committee. The analyses are supported not only by regulatory models, but by more advanced methodologies which have made it possible, over time, to expand the range of risks monitored and to improve the assessment of the capital adequacy, from both a regulatory and an economic perspective. The Second Pillar regulations provide that the Banks, also through the use of proprietary procedures, assess their current and future capital adequacy, expanding the range of risks to be taken into account compared with the First Pillar. Carige carried out an activity aimed at identifying the risks to which the Group is exposed, with regards to its own operations and reference markets; therefore, the risk map and relative evaluation methods were defined – quantitative if measurement methods are present, qualitative if relating to organisational controls – tracing management activities, mostly already in place, to an organic framework. Besides credit, market and operational risks, the concentration (both the single name and geo-sectorial components), interest rate, liquidity, reputational and strategic risks deriving from

securitisations and residual risks were included in the perimeter of the analysis for ICAAP purposes. With reference to the methods used, internal models for the quantification of the credit, market and interest rate risks were used, together with regulatory models for the operating and concentration risk. The analyses related to the remaining risks were performed though the use of specific scorecards aimed at identifying, with qualitative techniques, the potential level of risk and the supervision measures introduced. As regards capitalisation aspects and the hedging of existing risk with capital means, the Group confirms its compliance with the expected thresholds for all ratios of the Bank of Italy currently in force and calculated on the basis of Instructions for the completion of reports on the regulatory capital and prudential coefficients (Bank of Italy circular no. 155 of 18 December 1991), and new provisions of prudential supervision for banks (Bank of Italy circular no. 263 of 27 December 2006). The Group shows Total Capital Ratio (10.04%) and Tier 1 Ratio indicators (7.70%) considerably higher than the supervisory limits, and an excess capital of euro 406.2 million, and it expects, also in the remainder of the financial year, to maintain capitalisation levels adequately above the Supervisory limits (Regulatory capital, including the Tier 3 subordinated loan, is estimated at euro 2,002.1 million). The analyses of the impact on capital of the second pillar regulations confirm the solid capitalisation of the Group: more specifically, the requirements on the risks not taken into account by the first pillar regulations appear to be more than offset by the savings on capital generated by the application of more advanced methods on the credit and market risks. In addition, as regards ICAAP, with specific reference to the level of capital, proprietary methods were set in order to measure, from a prudential prospective, certain assets which the first pillar regulations do not take into account, imposing their sterilisation/deduction in regulatory capital: this refers specifically to controlling interests in insurance companies, to those in the Bank of Italy and, finally, to the portion of goodwill deriving from acquisitions made in recent years, deemed for all intents and purposes to be ‘tangible asset'. This setup allows the implicit higher capitalisation of the Carige Group to fully

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emerge, with the reaching of significant levels in terms of the total capital and tier 1 ratios. B. Risks Credit and counterparty risk The risk measurement, management and control process is carried out through the activities of:

- Credit Risk Management, focused on the governance of credit activities, with the careful monitoring of the performance of risk indicators from rating sources (PD, LGD and EAD) on the performing portfolio and of the trends in poor quality loans;

- an operational nature, aimed at the careful management of credit provided. In 2008, the Parent Bank introduced an operational credit monitoring tool, allowing the various control activity aspects to be combined with risk indicators developed according to Internal Rating Based methodology, with the aim of improving operating efficiency with management ever more consistent with customer risk profiles. The use of said tool was extended to the subsidiaries Cassa di Risparmio di Savona and Banca Ponti, with the

extension to the other two Group Banks expected by the end of the year.

Over the course of 2009, the Parent Bank continued the activities for the fine-tuning and implementation of internal rating models, which were related to the Corporate, Small- and Medium-Size Enterprises and Retail segments, as well as the LGD and EAD models. In addition, information relating to the rating of Large Corporate counterparties, as already done for the retail and Corporate segments, was added to the process of determining the decision-making procedure regarding loan practices. The Group, in line with the overall goal of a wider and more extensive use of rating system basic parameters in managerial and operational practice, adopted the statistical LGD model (Loss Given Default) for the evaluation of insignificant bad loan positions, developed in-house on the basis of discounted historical flows of collections and costs, both direct and indirect, linked to the recovery process. Application of said methodology permits positive results of an operating nature, in light of greater standardisation of processes and a higher level of consistency in the evaluations of insignificant bad loan positions.

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30/9/09 30/6/09 31/12/08 30/9/08(1) (2) (1) (3)

Tier 1 capital: positive elements (a) 3,378,944 3,378,944 3,297,610 3,107,106Share capital 1,803,832 1,803,832 1,801,053 1,800,734Reserves 361,284 361,284 234,933 234,870Additional paid-in capital 1,018,043 1,018,043 1,018,289 1,018,427Profit for the period 35,885 35,885 83,435 53,075Innovative capital instruments (h) 159,900 159,900 159,900 -

Tier 1 capital: negative elements (b) 1,656,279 1,656,279 1,662,941 1,566,556Goodwill 1,593,367 1,593,367 1,604,306 1,514,137Other negative elements 62,912 62,912 58,635 52,419

Prudential filters for regulatory capital (c) -135,716 -135,721 -109,290 -24,543

Deductions (d) 51,023 51,023 14,213 19,361

Total Tier 1 capital (e = a-b+c-d) 1,535,926 1,535,921 1,511,166 1,496,646Core Tier 1 Capital (e-h) 1,376,026 1,376,021 1,351,266 1,496,646

Tier 2 capital (f) 789,844 789,844 823,914 669,979

Deductions (g) 349,165 349,165 350,085 350,436

Regulatory capital (e+f-g) 1,976,605 1,976,600 1,984,995 1,816,189

Tier 3 capital 97,175 97,175 99,675 99,675 Tier 3 calculable portion 25,502 22,129 31,493 33,997

Regulatory capital including Tier 3 2,002,107 1,998,729 2,016,488 1,850,186

Tier 3 subordinated loans not calculable in the Tier 3 71,673 75,046 68,182 65,678

Figures rounded up to thousands of euro

BREAKDOWN OF CONSOLIDATED REGULATORY CAPITAL - (figures in thousands of euro)

Situation as at

(2) Figures relating to the regulatory capital and the capital requirements as at 30/6/2009 are the official figures and therefore they differfrom the management data shown in the half-yearly financial report.

(1) Figures regarding the regulatory capital and the capital requirements as at 30/9/2009 and 30/9/2008 result from accounting andmanagement estimates, as the official consolidated figures (Information form "1") are provided only in June and December.

(3) Capital ratios as at 30/9/2008 incorporate the estimates following securities reclassification carried out in compliance with changes toIAS 39 approved on 13/10/2008 by IASB and transposed by the European Commission on 15/10/2008.

(figures in thousands of euro)30/9/09 30/6/09 31/12/08 30/9/08

(1) (2) (1) (3)Regulatory capital Core Tier 1 Capital 1,376,026 1,376,021 1,351,266 1,496,646Tier 1 capital 1,535,926 1,535,921 1,511,166 1,496,646

Weighted assetsCredit risk 17,775,820 17,423,567 16,819,000 16,139,713Market risk 446,465 387,416 551,363 595,188Operational risk 1,726,625 1,726,625 1,726,625 1,580,238Other prudential requirements - - - -Total weighted assets 19,948,910 19,537,608 19,096,988 18,315,138

Capital requirementsCredit risk 1,422,066 1,393,885 1,345,520 1,291,177Market risk 35,717 30,993 44,109 47,615Operational risk 138,130 138,130 138,130 126,419Other prudential requirements - - - -Total 1,595,913 1,563,009 1,527,759 1,465,211

Subordinated loans covering market risks - - - -

Surplus capital 406,194 435,721 488,729 384,975

Solvency ratios (%) Tier 1 capital/Credit risk weighted assets 8.64% 8.82% 8.98% 9.27%Regulatory capital/Credit risk weighted assets 11.12% 11.34% 11.80% 11.25%

Core Tier 1/Total Risk-Weighted Assets 6.90% 7.04% 7.08% 8.17%Tier 1 capital/Total weighted assets 7.70% 7.86% 7.91% 8.17%Regulatory capital including Tier 3 capital/Total weighted assets 10.04% 10.23% 10.56% 10.10%


CONSOLIDATED REGULATORY CAPITAL AND SOLVENCY RATIOS

(2) Figures relating to the regulatory capital and the capital requirements as at 30/6/2009 are the official figures and therefore theydiffer from the management data shown in the half-year report. (3) Capital ratios as at 30/9/2008 incorporate the estimates following securities reclassification carried out in compliance withchanges to IAS 39 approved on 13/10/2008 by IASB and transposed by the European Commission on 15/10/2008.

Situation as at

(1) Figures regarding the regulatory capital and the capital requirements as at 30/9/2009 and 30/9/2008 result from accounting andmanagement estimates, as the official consolidated figures (Information form "1") are provided only in June and December.

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Market risk This is measured on the securities and derivatives portfolio through the daily determination of the Value at Risk (VaR) in accordance with the Montecarlo approach, with a confidence interval of 99% and a holding period of ten days. The analysis of the VaR on the securities and derivatives has been supplemented by the daily monitoring of the profitability profiles with the calculation of the accrued interests, of profits and losses, and of the capital gains/losses recognised on the financial instruments held in the portfolio. The profitability determined in this way is constantly compared with the scenarios set out in the budget. The foreign exchange risk and the gamma and vega risk on options are calculated with the standard Bank of Italy approach. The financial portfolio management policy is characterised by a conservative profile, with limited use of speculative derivative instruments, securitisations and structured instruments. During the course of the first nine months, the VaR of the financial portfolio (also including instruments classified as AFS, HFT and L&R) fluctuated from a low of euro 22.2 million to a high of euro 38.0 million, with an average of euro 29.9 million.

Operational risk The basic Bank of Italy approach is used, which provides for capital absorption equal to 15% of the average gross operating income of the last three years. In order to be able to evolve towards more advanced methodologies, the Group has participated in the DIPO (Database Italiano Perdite Operative, or Italian Database of Operating Losses), since its inception following an initiative of ABI. Furthermore, specifically as regards the risks connected with a potential breakdown of the IT system, the Group has set out a Business Continuity and Disaster recovery plan aimed at the identification of the critical processes and of the strategies to minimise the risks and the associated economic consequences, so as to be able to guarantee a quick restoration of operations. Interest rate risk The analysis of the interest rate risk is performed, on a monthly basis, with Gap analysis (with the three methodologies of incremental gap, incremental beta gap and shifted beta gap), Duration analysis and Sensitivity analysis techniques. In addition, at consolidated level,

the Parent Bank periodically monitors its exposure to interest rate risk, in application of the standard Supervisory model. Concentration risk This risk is quantified through use of the Herfindhal index in accordance with the procedures provided by the Bank of Italy, as regards the single name application; in relation to the geo-sectorial concentration risk, reference was made to the method proposed by the ABI. The measurements made show a limited exposure, consistent with the retail nature of the Group.

Liquidity risk Many analyses are performed aimed at assessing the financial balance in both the treasury items and at structural level. The short-term liquidity risk is monitored by making daily analyses of the net treasury position, the liquidity reserves, and the daily transactions at Group level. Analysis of the overall situation is carried out through the calculation of liquidity indicators (ratio and absolute value) and preparation of a maturity ladder. The ratios measure the solidity of the treasury situation according to decreasing safety margins: in fact, they compare the value of the net financial position with the liquidity reserves on demand, securities that can be liquidated in the short-term, and strategic securities that can be liquidated. The Board of Directors has established limits on cumulative gaps involving different time gaps of the maturity ladder. The medium/long-term liquidity risk is analysed by monitoring both asset and liability items maturing in the future and comparing them with the growth objectives provided under strategic planning. These analyses mean that a monthly evaluation can be made on the consistency of structural liquidity requirements (mainly bond funding on the internal and international markets) with Group development plans. In addition, for the purposes of more effective control of structural liquidity risk, gap ratio indicators have been introduced on maturities beyond one year. The objective is to maintain a sufficiently balanced structural liquidity profile, placing restrictions on the possibility of financing medium/long-term assets with short-term liabilities, in line with the approach of limiting maturity transformation.

66

Finally, the Board of Directors approved a Contingency Plan which sets out and describes the intervention strategies and processes in stress and crisis situations, the reference organisational structure, risk indicators with the relative trigger points and the associated calculation methods. The Group’s liquidity situation as at 30 September 2009 continued to be positive with around euro 3.5 billion of available liquidity reserves against a net financial position in debit of around euro 700 million. Reputational risk, strategic risk, risk on securitisations and residual risk The analysis of the risk is performed through the use of specific scorecards which assess both the risk exposure as well as the control processes and the existing mitigation instruments. This analysis did not register any criticalities and conversely, made it possible to further refine certain controls in place. C. Risks of the insurance sector The activities of the Group insurance companies are subject to three separate risk categories which result from the specific nature of the activities carried out and from the fact that entrepreneurial activities are generically being carried out and the fact that the Group also operates in the financial market context as an institutional investor. Specifically, there are:

• insurance risks, which are generated from the specific activities of the insurer, which acts as an intermediary able to determine an assignment and a subsequent reduction of the risk, through the professional centralised management of the risks;

• financial risks, generated by the management of the investment portfolios of the Companies, comprised of real estate properties, securities, receivables of different types and other liquid assets;

• operational risks, or possible losses, including missed opportunities, originating from deficiencies and/or inadequate performances of processes and/or control systems, due to both internal and external reasons.

Insurance risks result from the fact that insurance policies are characterised by the non-financial risk that an uncertain event may occur. The uncertainty concerns the likelihood, timing

and the seriousness of the occurrence of that event. Three sub-categories may be identified: assumed risk, reserve risk and reinsurance risk. Assumed risk is linked to the underwriting of insurance policies, for which actuarial models are used to determine pricing needs and monitor claims. In addition, underwriting guidelines are issued along with assumption rules and limits for each individual risk category. As regards the reserve risk, which represents the possibility that the actual amounts of claims and settlements to be paid would exceed the book value of the insurance liabilities, comprised of amounts registered under reserve; the Company constantly monitors the development in the reserves related to claims occurred but not yet paid and the changes in said reserves. For this purpose, independent actuaries are appointed to apply special actuarial methods. With regard to reinsurance risks, after the definition of self-retention levels, arrangements are made to underwrite cover contracts for the main business lines, with leading market counterparts only, in order to mitigate the risk of insolvency.

Financial risks affecting companies may be broken down into credit risks, liquidity risks and market risks.

The companies manage the credit risk level through a careful and appropriate counterpart selection policy. Credit risks are inherent in loans to customers, receivables from reinsurers, in securities and other financial instruments including derivative contracts.

Loans to customers are managed through the direct collection carried out by the intermediaries, the payments of which, made on a decadal basis, are subject to careful supervision by the central and peripheral structures with the purpose of limiting the risk of insolvency.

As regards receivables from reinsurers, the counterparties are constantly monitored and the exposure limits are reviewed annually, in compliance with the reinsurance policy outlined by Management, in order to verify the credit standing of the reinsurer and any potential need to carry out write-downs.

With regard to securities and other financial instruments, the Boards of Directors of the Companies defined the limits of investment as regards the individual issuer based on the nature

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and on the rating of the counterparty and on the type of instruments purchased.

Finally, as regards derivative instrument transactions, the Insurance Companies operate in compliance with the provisions of the Supervisory Body and in accordance with the resolutions of the individual Boards of Directors. Derivative contracts for hedging and for the effective management of investments are stipulated with counterparties of high standing and involve financial instruments with a high degree of liquidity. In any case, the Insurance Companies do not take any proprietary positions, except for the derivatives implicit in the structured financial instruments and for the derivatives – with exclusively defensive purposes – that may be connected with the unit or index linked policies marketed by Carige Vita Nuova.

The company manages and minimises the liquidity risk on the short-term through careful management of the incoming cash flows (premiums and other amounts collected) linking them to the outgoing cash flows (settlements and other payments), whereas for the long-term management an ALM (Asset Liability Management) system is being implemented, which will allow a comparative analysis between the incoming flows from investments and the

expected maturities of the liability commitments (at the current state of play the incoming cash flow component has been completed while the part relating to the outgoing cash flows is at the implementation phase).

The Insurance Companies control the market risk through sensitivity analysis and stress testing, also conducting impairment tests for the purpose of identifying, where it may be objectively determined, the need for of value adjustments.

As regards specifically the activities of Carige Vita Nuova, in some cases there is a direct link between investments and obligations towards the insured; in addition, certain types of Life insurance policies are subject to the minimum guaranteed interest rate risk; said risk is monitored through specific Asset-Liability Management (ALM) models.

For the management of operational risks, the Risk Management function has been implemented, with the definition of an operational information collection tool (database) in which the company risks subject to monitoring are assessed. They are attributed to different risk areas and company processes, and in addition, assigned a risk owner.

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THE PARENT BANK

As regards the activity performed over the period by the Parent bank Banca Carige SpA, please refer to the Parent Bank’s interim report, presented at the end of the consolidated interim financial statements.

BANK SUBSIDIARIES

With Law 262/2005 the obligation to draw up an information statement according to the criteria set by Consob was introduced, also for bank bonds. The Parent Bank decided to be the only bond issuer, leaving only the placement activity to the other banks of the Group.

In this context, in order to maintain a balanced distribution of maturities, subsidiary banks issued bonds fully subscribed by the Parent Bank. This set of choices, non-influential at consolidated level, shapes the trend in both direct and indirect deposits for subsidiary banks, markedly of assets under custody, with impacts also on the corresponding income statement items.

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The Financial Intermediation Activities (FIA) of Cassa di Risparmio di Savona SpA, at euro 2,867.3 million, increased by 1.7% compared with December 2008 (by 0.2% over September 2008). Direct deposits showed an increase of 2.3% in the nine months (+5.3% in twelve months), amounting to euro 1,185 million. Excluding bonds issued fully subscribed by the Parent Bank, at euro 145.4 million, and including those issued by the Parent Bank and placed with customers of the subsidiary, at euro 347.2 million, direct deposits amounted to euro 1,386.8 million (+7.5% and +12.4% in nine and twelve months respectively). Short-term deposits, standing at euro 891.7 million, showed an increase of 11.5% over the end of the year and were up 17.2% on September 2008. The medium/long-term component, equal to euro 293.3 million, fell by 18.2% over nine months and by 19.5% over twelve months. Indirect deposits increased by 1.3% over the nine months to euro 1,682.3 million (a reduction of -3.1% on September 2008); more specifically, assets under management amounted to euro 612 million (+4.8% and -3.1% respectively over nine and twelve months), assets under custody stood at euro 1,070.3 million (-0.7% and -3.1% over nine and twelve months). Excluding bonds issued by the Parent Bank and placed with customers of Cassa di Risparmio di Savona, indirect deposits amounted to euro 1,335.1 million (-3.5% and -10% respectively over nine and twelve months ). Loans to customers totalled euro 1,167.9 million (+3.3% and +8.9% over nine and twelve months respectively).

The gross bad loans/lending ratio amounted to 1.7% (1.6% as at December and September 2008). The securities portfolio totalled euro 189.5 million, a 73% increase over December and more than doubling over twelve months. The income statement showed a net profit of euro 10.6 million, down by 30% compared with September, mainly due to the reduction in the intermediation margins; the cost/income ratio increased from 51.7% to 64.9%. The interest margin fell by 18.1%, to euro 31 million. Net commissions fell by 1.2% to euro 15 million and net income from trading activities moved from a loss of euro 0.3 million to a profit of euro 0.7 million. Gross operating income, at euro 47.1 million, decreased by 13%. As at 30 September 2009, net write-backs due to impairment to loans and other financial items were recorded totalling euro 38 thousand (euro 4.3 thousand as at September 2008). Operating costs amounted to euro 30.6 million, a 9.1% increase. This item, excluding the other net operating income, at euro 2.7 million, amounted to euro 33.3 million, an increase of 7.3%. Profit from ordinary activities before taxes amounted to euro 16.5 million, 24.5% less than the euro 21.9 million of September 2008. After income taxes amounting to euro 5.9 million, the profit for the year totalled euro 10.6 million, recording a 30% decrease with respect to the first nine months of 2008.

CASSA DI RISPARMIO DI SAVONA (figures in thousands of euro)


12/08 9/08

BALANCE SHEETTotal assets 1,512,985 1,523,149 1,462,936 1,436,737 3.4 5.3Direct deposits (A) 1,184,973 1,219,315 1,158,780 1,125,179 2.3 5.3Indirect deposits (B) 1,682,299 1,651,206 1,661,261 1,736,505 1.3 -3.1- Assets under management 611,976 582,458 583,734 631,644 4.8 -3.1- Assets in custody 1,070,323 1,068,748 1,077,527 1,104,861 -0.7 -3.1Financial Intermediation Activities (FIA) (A+B) 2,867,272 2,870,521 2,820,041 2,861,684 1.7 0.2Loans to customers (1) 1,167,867 1,144,106 1,130,425 1,072,333 3.3 8.9Securities portfolio 189,451 184,443 109,504 91,508 73.0 …Capital and reserves 174,652 173,749 170,332 171,735 2.5 1.7

INCOME STATEMENTGross operating income 47,098 32,822 76,793 54,163 -13.0Net income from financial management 47,060 34,040 72,470 49,875 -5.6Operating profit from ordinary activities before taxes 16,498 13,965 33,640 21,864 -24.5Profit for the period 10,596 8,924 23,620 15,146 -30.0

RESOURCESNumber of branches 50 50 50 50 - -Staff 381 376 381 377 - 1.1

(1) Before value adjustments.

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The Financial Intermediation Activities (FIA) on behalf of the customers of Banca del Monte di Lucca SpA amounted to euro 1,119 million (+3% in nine months and +19.4% in twelve months). Within the FIA, direct deposits totalled euro 745.3 million (+0.9% and +30.3% in nine and twelve months respectively) while indirect deposits amounted to euro 373.7 million (+7.3% and +2.3% over December and September 2008). Excluding bonds issues fully subscribed by the Parent Bank, at euro 204.5 million, and including those issued by the Parent Bank and placed with customers of the subsidiary, at euro 80.8 million, direct deposits would come to euro 621.5 million (+3.9% and +5.7% in nine and twelve months respectively). Short-term deposits, at euro 381.9 million, showed an increase of 10.7% in nine months and were up by 14.6% over twelve months. The medium/long-term component, equal to euro 363.4 million, fell by 7.6% against December, but rose by 52.1% over September 2008. Within indirect deposits, assets under management amounted to euro 80.1 million (+7.8% over nine months and down by 8.5% over twelve months), while assets under custody totalled euro 293.6 million (+7.2% and +5.7% respectively); excluding bonds issued by the Parent Bank and placed with the customers of Banca del Monte di Lucca, indirect deposits amounted to euro 292.9 million (+2.5% and -4.7% in nine and twelve months respectively). Loans to customers, amounting to euro 818.7 million, grew by 5.5% over nine months and by 9.5% over twelve months. The gross bad

loans/lending ratio stood at 4.4% (higher than the 3.3% in December and September 2008). The securities portfolio amounted to euro 6.1 million, euro 4.5 as at December and euro 1.7 as at September 2009. The income statement showed a net profit of euro 2.7 million, down by 51.1% compared with the first nine months of 2008, mainly due to the reduction in the intermediation margins and the increase in operating costs; the cost/income ratio increased over the period from 48.3% to 62%. The interest margin fell by 17%, to euro 16.7 million. Net commissions rose by 5.2%, standing at euro 6 million. In total, the gross operating income decreased by 12%, to euro 22.9 million. Net adjustments due to impairment to loans and other financial items amounted to euro 4.1 million (euro 4.2 million as at 30 September 2008). Operating costs increased by 13.2%, to euro 14.2 million. In particular, staff costs rose by 5.7%, reaching euro 8.7 million, while other administrative costs increased by 17.5% to euro 6.4 million. Profit from ordinary activities before taxes amounted to euro 4.5 million, 51.1% less compared with the euro 9.3 million of September 2008. After income taxes amounting to euro 1.9 million, the profit for the year totalled euro 2.7 million, recording a 51.1% decrease with respect to September 2008.

BANCA DEL MONTE DI LUCCA (figures in thousands of euro)


12/08 9/08

BALANCE SHEETTotal assets 881,131 881,450 854,568 839,100 3.1 5.0Direct deposits (A) 745,327 755,032 738,420 572,204 0.9 30.3Indirect deposits (B) 373,688 356,364 348,145 365,354 7.3 2.3- Assets under management 80,089 74,279 74,288 87,529 7.8 -8.5- Assets in custody 293,599 282,085 273,857 277,825 7.2 5.7Financial Intermediation Activities (FIA) (A+B) 1,119,015 1,111,396 1,086,565 937,558 3.0 19.4Loans to customers (1) 818,713 808,552 775,672 747,586 5.5 9.5Securities portfolio 6,068 2,712 4,499 1,701 34.9 …Capital and reserves 40,313 40,325 39,669 39,677 1.6 1.6


RESOURCESNumber of branches 21 21 21 21 - -Staff 159 160 158 158 0.6 0.6(1) Before value adjustments.

During the year, Financial Intermediation Activities on behalf of customers (FIA) of Cassa

di Risparmio di Carrara SpA totalled euro 1,951.3 million (+1% and +3.9% over nine

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and twelve months). Within the FIA, direct deposits totalled euro 1,001.7 million (-2.1% and +6.1% on December and September 2008); excluding bonds fully subscribed by the Parent Bank, at euro 273.4 million, and including those issued by the Parent Bank and placed with customers of the subsidiary, at euro 332.5 million, direct deposits amounted to euro 1,060.9 million (+3.5% and +5% in nine and twelve months respectively). Short-term deposits, at euro 665.8 million, showed an increase of 1.8% in nine months and were up by 1.5% over twelve months. The medium/long-term component, at euro 335.9 million, fell by 9.1% compared with December whereas it increased by 16.7% over September 2008. Indirect deposits stood at euro 949.6 million (+4.6% and +1.7% in nine and twelve months); these included assets under custody, which reached euro 692.9 million (+5% and +5.3% on December and September 2008) and assets under management at euro 256.7 million (+3.6% and -7% in nine and twelve months respectively). Excluding bonds issued by the Parent Bank and placed with customers of Cassa di Risparmio di Carrara, indirect deposits amounted to euro 617 million (-2.3% and -9.2% respectively over nine and twelve months). Loans to customers amounted to euro 1,000.3 million, essentially stable from the start of the year (-0.1%) and over twelve months (+0.1%). The gross bad loans/lending ratio stood at 3.2% (slightly higher than the 3% in December and September 2008).

The securities portfolio amounted to euro 143.1 million, more than quadrupling compared with the figures recorded in December and September 2008. The income statement showed a net profit of euro 7.8 million, down by 44.1% compared with September 2008, mainly due to the reduction in the intermediation margins; the cost/income ratio increased to 63.5%, from 48.7% in 2008. The interest margin fell by 25.9% to euro 26.3 million with respect to 30 September 2008, as a result of the trend in market rates. Net commissions remained essentially stable at euro 10.4 million (+0.3%); the net result from trading activities was positive at euro 0.6 million (euro 0.3 million as at September 2008). The gross operating income decreased by 19.4% to euro 37.3 million. As at 30 September 2009, net write-backs due to loan impairments and other financial items totalled euro 1 million compared with euro 2.7 million as at September 2008. Operating costs increased by 5.2% to euro 23.7 million, largely due to administrative costs which rose by 3.2% to euro 28.7 million. Other net operating revenues decreased by 3.7% to euro 5.5 million. Profits from ordinary activities before tax amounted to euro 12.6 million, 40.2% lower than the figure in the corresponding period in the previous year. Net of income taxes of euro 4.7 million, the profit for the period amounted to euro 7.8 million, down by 44.1%, compared with September 2008.

CASSA DI RISPARMIO DI CARRARA (figures in thousands of euro)


12/08 9/08

BALANCE SHEETTotal assets 1,237,080 1,238,027 1,268,049 1,206,170 -2.4 2.6Direct deposits (A) 1,001,717 988,121 1,023,496 943,850 -2.1 6.1Indirect deposits (B) 949,569 927,350 907,791 933,814 4.6 1.7- Assets under management 256,670 244,906 247,721 275,926 3.6 -7.0- Assets in custody 692,899 682,444 660,070 657,888 5.0 5.3Financial Intermediation Activities (FIA) (A+B) 1,951,286 1,915,471 1,931,287 1,877,664 1.0 3.9Loans to customers (1) 1,000,273 1,003,397 1,001,682 999,274 -0.1 0.1Securities portfolio 143,109 138,705 33,498 24,960 … …Capital and reserves 97,928 97,789 96,111 96,164 1.9 1.8


RESOURCESNumber of branches 34 34 34 34 - -Staff 320 321 320 320 - -(1) Before value adjustments.

The Financial Intermediation Activities on behalf of customers (FIA) of Banca Cesare Ponti SpA increased by 16.6%, amounting to euro

1,301.1 million (+10.4% in the first nine months of 2009). Within the FIA, direct deposits amounted to euro 362.5 million (+4.3% from

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December and +18.8% since September 2008) and indirect deposits totalled euro 938.6 million (+13% from December 2008 and +15.8 from September 2008); the latter included assets under management of euro 262.3 million; +20.2% in nine months and +6.9% in the year); assets under custody amounted to euro 676.3 million (+10.4% since December 2008 and +19.6% since September 2008). Excluding bonds issues fully subscribed by the Parent Bank, at euro 62.5 million, and including those issued by the Parent Bank and placed with customers of the subsidiary, at euro 41.4 million, direct deposits amounted to euro 341.4 million (+5.9% and +3.6% in nine and twelve months respectively). Short-term deposits, at euro 265.4 million, showed an increase of 6.9% in nine months (-0.7% over twelve months). The medium/long-term component, at euro 97.2 million, fell by 2.1% compared with December while it increased considerably compared with the euro 37.9 million in September 2008. With regard to indirect deposits, excluding bonds issued by the Parent Bank and placed with customers of Banca Cesare Ponti, the aggregate amounted to euro 897.2 million (+13% and +14.1% in nine and twelve months respectively). Loans to customers amounted to euro 246.8 million, down by 1.4% in nine months and by 1% in the year. The gross bad loans/lending

ratio amounted to 4.2% (3.5% as at December and 3.7% as at September 2008). The securities portfolio amounted to euro 128.5 million, up 31.1% in the nine-month period and 31.8% in the year. The income statement showed a net profit of euro 0.6 million, down by 44.1% on the amount generated in the same period of 2008, mainly due to the reduction in the net interest income. The cost/income ratio fell from 80.1% to 76.8% over the year. The net interest income, at euro 5 million, decreased by 15.8% over twelve months. Net commissions amounted to euro 4.4 million (9.7% over the year). Gross operating income amounted to euro 10.1 million, up by 1% in twelve months. As at 30 September 2009, net write-backs due to impairment to loans and other financial items were recorded totalling euro 895 thousand (euro 393 thousand as at September 2008). Operating costs totalled euro 7.8 million, down by 3.2% compared with September 2008, and more specifically: staff costs fell to euro 4.4 million (-1.7%); and other administrative costs decreased to euro 3.6 million (-6.4%). The profit from ordinary activities before taxes amounted to euro 1.5 million. Net of income taxes amounting to euro 0.9 million, the profit for the year totalled euro 0.6 million.

BANCA CESARE PONTI (figures in thousands of euro)


12/08 9/08

BALANCE SHEETTotal assets 409,810 457,679 394,112 401,357 4.0 2.1Direct deposits (A) 362,538 410,350 347,579 305,060 4.3 18.8Indirect deposits (B) 938,594 905,682 830,857 810,568 13.0 15.8- Assets under management 262,253 244,518 218,157 245,293 20.2 6.9- Assets in custody 676,341 661,164 612,700 565,275 10.4 19.6Financial Intermediation Activities (FIA) (A+B) 1,301,132 1,316,032 1,178,436 1,115,628 10.4 16.6Loans to customers (1) 246,789 244,755 250,318 249,277 -1.4 -1.0Securities portfolio 128,519 113,072 98,030 97,524 31.1 31.8Capital and reserves 29,025 28,514 28,093 28,245 3.3 2.8

INCOME STATEMENTGross operating income 10,122 6,897 13,721 10,018 1.0Net income from financial management 9,227 6,621 13,338 9,625 -4.1Operating profit from ordinary activities before taxes 1,466 1,444 2,688 1,597 -8.2Profit for the period 573 653 1,697 1,025 -44.1

RESOURCESNumber of branches 4 4 4 4 - -Staff 83 82 96 97 -13.5 -14.4(1) Before value adjustments.

73

INSURANCE SUBSIDIARIES

The results of the two insurance companies of the Group (Carige Assicurazioni SpA and Carige Vita Nuova SpA) are presented below, prepared in accordance with the applicable provisions of the Italian Civil Code and with the provisions specific for the insurance industry in Italy (Legislative Decree 175/1995, Legislative Decree 174/1995, Legislative Decree 173/1997, Legislative Decree 209/2005, ISVAP Provision 735/1997). It should be noted that such results are different from those reported in the section “Insurance activities” of this Report, where the information gathered from the so-called reporting packages are prepared by the companies based on the joint provisions of the Bank of Italy Provision no. 262 dated 22 December 2005, of the ISVAP Regulation no. 7 dated 13 July 2007 and of the relevant directions of the Parent Bank. Decree of the Ministry of Economy and Finance no. 60168 dated 24 July 2009 allowed Insurance Companies to reiterate their derogation from the principle of using the most recent market data to evaluate the non-durable securities portfolio, granted by ISVAP Regulation no. 28 of 17 February 2009, as modified by ISVAP Provision no. 2727 of 27 July 2009. In fact, the possibility was recognised, having verified the structure of commitments and the maturity of the relative disbursements, of using, for the evaluation of non-durable securities, the values recorded in the last set of financial statements, if lower, without prejudice to losses of a durable nature. The shareholders’ equity of Carige Assicurazioni SpA as at 30 September 2009 (operating in the non-life segment) amounted to

euro 142.4 million; technical reserves net of the reinsurance amount remained unchanged over the nine months (euro 859 million) whereas investments increased by 3.4% up to euro 848 million. The third quarter of 2009 closed with a positive result of euro 5.6 million against a negative result of euro 25 million in the same period in 2008. In particular, the result, which consolidated the effects of Decree no. 60168 through the sterilisation of value adjustments on securities, maintaining the book value equal to the value of the last approved set of financial statements, showed value write-backs of euro 7.3 million while value adjustments, relating to those securities for which the aforementioned Decree was availed of, amounted to euro 1.4 million with a net effect of euro +5.9 million. In addition, a net improvement in the technical account result was recorded (up euro +9.7 million against a fall of euro -30.4 million in September 2008). More specifically, this result was shaped by the fall in claims in the period, net of the reinsurance amount (-16.1% to euro 262.5 million), the decrease in operating costs (-7.5% to euro 93.5 million), the drop in premiums in the period, net of the reinsurance amount (-5.8% to euro 359.7 million) and the increase of the share of investment profits transferred from the non-technical account (1.4 million as at 30 September 2008, 17.8 million as at 30 September 2009). Lastly, as regards monitoring of the undistributable reserve established in accordance with ISVAP Regulation no. 28, as amended, a significant improvement was recorded compared with 31 December 2008, from euro 47 million to euro 13.8 million at the end of the third quarter.

CARIGE ASSICURAZIONI (figures in thousands of euro)

Situation as at Change %9/09 9/09

30/9/09 30/6/09 31/12/08 30/9/08 12/08 9/08

Recognised gross premiums 395,825 280,903 558,278 409,053 -3.2%Premiums excluding reinsurance 359,676 233,621 505,214 381,875 -5.8%Claims incurred and settled excluding reinsurance 262,456 165,202 421,168 312,892 -16.1%Operating costs 93,544 65,009 127,551 101,088 -7.5%Profit/loss from technical account 9,696 4,867 -33,746 -30,353 …Net profit 5,620 2,855 -30,802 -24,973 …

Investments 848,021 824,848 819,873 821,038 3.4% 3.3%Technical reserves excluding reinsurance 858,857 863,578 858,849 859,532 0.0% -0.1%Shareholderwith income 142,444 139,679 106,830 112,660 33.3% 26.4%

Insurance agencies 383 381 377 374 1.6% 2.4%Staff 297 305 303 292 -2.0% 1.7%

74

The shareholders’ equity of Carige Vita Nuova SpA as at 30 September 2009 (operating in the life insurance segment) amounted to euro 86.3 million, not including the increase in share capital of euro 80 million, already resolved and awaiting authorisation from the Bank of Italy. Investments and technical reserves, net of reinsurance, increased in the nine month period by 32.1% (to euro 2,769 million) and 33% (to euro 2,738.1 million) respectively. The result for the first nine months of 2009 was a positive euro 12.3 million, against a loss of euro 27.5 million in September 2008. The result for the period, which significantly improved over the result in the same period in the previous year, was predominantly influenced by strong improvement in the income from technical operations, which rose from euro -38.1 in September 2008 to euro +15.7 million in September 2009. The result consolidated the effects of Decree no. 60168 through the sterilisation of value adjustments on securities, maintaining the book value equal to the value of the last approved set of financial statements, and showed value write-backs of euro +12.4 million and irrecoverable losses mainly on the General Motors Corp. bonds for a total of euro 7.6 million. The monitoring of the undistributable reserve established in accordance with ISVAP Regulation no. 28, as amended, showed a strong improvement, from euro 75.9 million in the 2008 financial statements, to euro 23.6 million as at September 2009.

Premiums written recorded a significant increase from euro 354.1 million in September 2008 to euro 786.3 million in September 2009, with the bancassurance channel recording a +136.1% increase and the agency channel up by +11.4%, thanks, in particular, to development of the sale of “traditional” Carige Soluzione Rendimento products, combined with the success of the new product Carige Soluzione Risparmio, issued during the course of 2009. As at September 2009, the charges for claims in the period (net of reinsurance ceded) amounted to euro 174.2 million, up by 41.4% over the same period last year. This increase was essentially due to the maturity of Indexes in June and August. Specifically, the Carige Index Reddito e Garanzia expired on 3 June 2009 for an amount paid of euro 13.2 million, the Carige Index Evoluzione e Valore, expired on 15 June 2009 for an amount paid of euro 19.5 million, and the Index Reddito e Garanzia 2 expired on 7 August 2009 for an amount paid of euro 21.7 million. In addition, coupons on these indexes were also paid, totalling euro 6.0 million. Following the sharp increase in business in the bancassurance channel, an increase in operating costs was recorded (+32.7% to euro 23.3 million), due mainly to higher commissions paid because of growth in said volumes and the positive balance between revenues and other technical charges, net of reinsurance, amounting to euro 13.8 million.

CARIGE VITA NUOVA SPA (figures in thousands of euro)


30/9/09 30/6/09 31/12/08 30/9/08 12/08 9/08

Recognised gross premiums 786,309 559,313 588,013 354,078 …Premiums excluding reinsurance 780,907 554,189 577,791 347,633 …Claims incurred and settled excluding reinsurance (1) 183,796 117,486 174,782 124,983 47.1%Operating costs 23,348 16,156 26,333 17,590 32.7%Profit/loss from technical account 15,697 4,899 -33,899 -38,141 …Net profit 12,270 4,499 -24,060 -27,548 …

Investments (2) 2,768,972 2,561,557 2,096,416 1,918,431 32.1% 44.3%Technical reserves excluding reinsurance (2) 2,738,089 2,526,695 2,059,288 1,882,194 33.0% 45.5%Shareholderwith income 86,272 78,501 29,001 25,513 … …

Insurance agencies 261 258 256 258 2.0% 1.2%Staff 92 87 80 79 15.0% 16.5%

(2) Including investments where risk is borne by the insured and pension funds. These are mainly investments in index- and unit-linked products.

(1) The item includes the amounts paid net of reinsurance ceded.

75

FINANCIAL SUBSIDIARIES

As at 30 September 2009 the overall assets managed by Carige A.M. SGR SpA amounted to around euro 4.3 billion, essentially stable from the start of the year but still down over the last twelve months (-12.8%). This trend reflects the steady increase in the Fondo Pensione Aperto (+26.4% over nine months and +32.7% since September 2008) and the reduction in Mutual Funds (-1.1% over nine months and -15.6% over twelve months), despite the strong growth seen since last June. Among the products managed by virtue of delegation, there was a steady recovery in the volumes of Assets under Management (-1.3% from the beginning of the year, -4% over twelve months) and insurance products (+2.3%

increase over nine months and a 9.7% reduction from September 2008). The economic result showed a net profit of roughly euro 494 thousand (approximately euro 1.7 million as at 30 September 2008). Gross income stood at euro 5.3 million, composed of euro 23.6 million of commission income and euro 18.3 million of commission expense. Net financial revenue, formed mainly by income from investment of the Company’s available funds, amounted to around euro 89 thousand while other net revenue stood at around euro 25 thousand. Operating and running costs amounted to euro 4.5 million. Profit from operations stood at euro 828 thousand. After taxes for euro 334 thousand, the profit for the first nine months of 2009 amounted to euro 494 thousand.

CARIGE A.M. SGR (figures in thousands of euro)Situation as at Change %

9/09 9/0930/9/09 30/6/09 31/12/08 30/9/08 12/08 9/08

DEALINGAssets under management 4,259,420 3,980,143 4,253,490 4,882,903 0.1 -12.8 - Mutual funds 3,461,335 3,224,036 3,498,353 4,102,634 -1.1 -15.6 - Assets management (customer assets) 418,751 404,825 424,349 436,003 -1.3 -4.0 - Insurance products (customer assets) 164,873 157,868 161,141 182,656 2.3 -9.7 - Pension funds 214,461 193,414 169,647 161,610 26.4 32.7 Total net of duplications … …Total assets 14,563 14,571 17,285 17,175 -15.7 -15.2Capital and reserves 6,582 6,528 6,353 6,364 3.6 3.4

INCOME STATEMENTNet commissions 5,262 3,441 9,267 7,102 -25.9Administrative costs 4,510 3,139 6,292 4,817 -6.4Operating income 828 382 3,399 2,593 -68.1Profit for the period 494 218 2,202 1,674 -70.5

RESOURCESStaff (1) 31 29 29 29 6.9 6.9

(1) Seconded Parent Bank personnel except for one unit seconded from Cassa di Risparmio di Savona.

Creditis Servizi Finanziari SpA continued to pursue its strategy of expanding its commercial offer, in relation to both personal loans and revolving cards. From the beginning of the year to the quarter end 17,576 personal loans were issued for a total amount of euro 170.2 million. The amount financed, which includes arrangement fees and any insurance premiums on “credit protection insurance” (CPI) policies, amounted to euro 174.3 million. A total of 8,956 insurance contracts were entered into against the loans disbursed, with a percentage penetration of 51%. During 2009 a total of 40,308 revolving cards have been issued, including 9,181 activated by the customers. There have been

48,322 uses for a total of euro 7.4 million. Parallel to such activity, 2,091 “instant credit” contracts were concluded by insurance agents having an arrangement with the Company. From a financial perspective, the first nine months of 2009 closed with a profit of euro 811 thousand. The interest margin stood at euro 5.3 million. Interest income, at euro 9.2 million, was made up mainly by interest on personal loans (euro 8.3 million). Interest payable amounted to euro 3.9 thousand and was generated by loans given by the Parent Bank. Commission income amounted to euro 2.5 million and was composed mainly by commissions from insurance companies for the distribution of CPI policies (euro 1.8 million). Commission

76

expenses amounted to euro 0.7 thousand, of which euro 0.6 thousand in commissions for loan placements. In terms of costs, costs for staff seconded by the Parent Bank amounted to euro 1.7 million. Other administrative costs, including

amortisation, totalled euro 3.3 million. The pre-tax result was a positive euro 1.4 million and, net of income taxes of euro 617 thousand, a profit of euro 811 thousand was generated.

CREDITIS SERVIZI FINANZIARI (figures in thousands of euro)


30/9/09 30/6/09 31/12/08 30/9/08 12/08 9/08

DEALINGLoans to customers (1) 217,631 167,932 62,719 35,152 … … - Personal loans (1) 210,047 162,886 61,119 33,843 … … - Revolving credit cards (1) 7,584 5,046 1,600 1,309 … …

Total assets 242,499 189,109 82,866 55,963 … …Capital and reserves 19,470 18,997 18,826 19,869 3.4 -2.0INCOME STATEMENTNet interest income 5,274 2,982 1,680 999 …Net commissions 1,784 1,230 774 452 …Administrative costs 4,978 3,301 3,196 2,002 …Operating income 1,428 667 -787 -626 …Profit for the period 811 370 -625 -487RESOURCESStaff (2) 30 29 23 23 30.4 30.4(1) Before value adjustments.(2) Seconded Parent Bank personnel.

Argo Finance One Srl, a special purpose vehicle in the securitisation of bad loans, established by Banca Carige towards the end of 2000, in the first nine months of 2009 registered collections for euro 8 million. Against a net value from disposal of loans of euro 165.3 million, collections from the start of the operation amounted to euro 215.6 million. Priamar Finance Srl, a special purpose vehicle for the securitisation of bad loans established by Cassa di Risparmio di Savona at the end of 2002, collected euro 1.9 million in first nine months of 2009. Against a net value from disposal of loans of euro 28 million, collections from the start of the operation amounted to euro 36.8 million. Argo Mortgage Srl, a special purpose vehicle for the securitisation of private mortgage loans established by Banca Carige at the end of 2001, recorded takings for a total of euro 525.7 million, of which euro 24.6 million in the first nine months of 2009. Argo Mortgage 2 Srl, a special purpose vehicle in the securitisation of mortgage loans to private customers, established by Banca Carige on 30 June 2004, registered overall collections of euro 668.8 million, euro 70.6 million of which in the first nine months of 2009. Carige Covered Bond Srl, a special purpose vehicle for the securitisation of residential and commercial mortgages, established by Banca Carige on first November 2008, collected a total of euro 270.4 million, euro 196.9 of which in the first nine months of

2009. Overall loans granted amounted to euro 2,539.6 million, including euro 1,034 million as at September 2009. In December 2008, a first bond issue of euro 500 million was recorded. These securities, of which Banca Carige has full availability, are assets that can be adequately used in repurchase agreement transactions at the European Central Bank. Against the disposal made in September 2009, on 5 November 2009 new bonds were placed on the market for an amount of euro 1 billion. The issue, managed by a leading group of international banks, UBS Investment Bank, Natixis, Deutsche Bank, HSBC Group and Unicredit Group, was subscribed by asset management companies (41% of the total), retail banks (26%), central banks (23%) and insurance companies and pensions funds (around 10%). A total of 94% of the subscriptions were made by Italian, German, French, English and Finnish investors. The remaining 6% was split between the other major European countries. This security includes the following features: - maturity at seven years (25 November 2016); - annual coupon of 3.75%, a yield around 47

basis points higher than the BTPs of a similar duration;

- a AAA/AAA rating from two of the major international rating agencies (Fitch and Moody’s);

- the status of bank bond secured by highly diversified mortgages.

77

THE OTHER MAIN SUBSIDIARIES

Centro Fiduciario C.F. SpA closed the first nine months of 2009 with a net profit of euro 253 thousand. Revenue from production totalled euro 938 thousand, constituted by fiduciary administration commissions of euro 479 thousand and euro 459 thousand in fees paid by the Parent Bank for the provision of fiduciary services carried out in favour of the Bank’s customers. Costs from ordinary operations totalling euro 573 thousand were recorded against said revenues. Income from ordinary company operations amounted to euro 364 thousand while extraordinary operations recorded financial income of euro 29 thousand. Net of taxes of euro 140 thousand, profit stood at euro 253 thousand. As regards Group real estate companies, a segment restructuring process is currently in progress, authorised on 6 August by the Bank of Italy, to be carried out through the merger by incorporation in Banca Carige of Immobiliare Ettore Vernazza SpA, Galeazzo Srl and the new company that is the recipient of the part of shareholders’ equity of Columbus Carige Immobiliare SpA which will be subject to division. In relation to the results of the respective activities as at 30 September 2009, Galeazzo Srl, a real estate company that manages the leasing of its properties to third parties, closed the nine months with a net profit of euro 31

thousand, down compared with euro 79 thousand as at 30 September 2008. The result from last year, as with the other real estate companies, benefitted from the recording of extraordinary income generated by the cancellation of discrepancies between statutory and tax values on instrumental properties owned. Columbus Carige Immobiliare SpA, a company which manages the leasing of the properties of the Group’s companies and is active in the purchase of properties for their subsequent resale (merchandise assets), registered a net profit of euro 375 thousand, compared with euro 783 thousand registered in the same period of the previous year. Immobiliare Ettore Vernazza SpA closed the first nine months of 2009 with a net profit of euro 344 thousand (euro 519 thousand registered in the same period of the previous year). Rents amounted to around euro 1 million in the period. Immobiliare Carisa Srl, which operates in the purchasing of properties for resale (merchandise assets), closed the first nine months of 2009 with a loss of roughly euro 45.8 thousand (against a profit of euro 23 thousand in September 2008), determined essentially by an extraordinary charge tied to the unfavourable ruling in a legal case, which the company has appealed against, and extraordinary expenses incurred on owned property.

78

INTERIM FINANCIAL STATEMENTS OF THE PARENT BANK

79

FINANCIAL HIGHLIGHTS


12/08 9/08

BALANCE SHEET (1)

Total assets 27,935,452 27,525,935 26,455,426 24,911,819 5.6 12.1

Funding 22,250,937 21,910,953 20,788,686 19,438,716 7.0 14.5- Direct Deposits (a) 21,078,566 21,207,823 19,705,213 18,041,096 7.0 16.8 * Amounts owed to customers 12,295,542 11,649,623 10,431,018 9,340,955 17.9 31.6 * Securities in issue 8,171,064 8,947,006 8,696,409 8,135,189 -6.0 0.4 * Liabilities at fair value 611,960 611,194 577,786 564,952 5.9 8.3- Amounts owed to banks 1,172,371 703,130 1,083,473 1,397,620 8.2 -16.1- Indirect deposits (b) 17,990,329 17,854,197 17,865,828 18,433,047 0.7 -2.4- Assets under management 10,286,248 9,798,642 9,314,653 9,491,044 10.4 8.4- Assets in custody 7,704,081 8,055,555 8,551,175 8,942,003 -9.9 -13.8

Financial Intermediation Activities (FIA) (a+b) 39,068,895 39,062,020 37,571,041 36,474,143 4.0 7.1

Investments 24,052,057 23,431,851 22,345,284 21,240,525 7.6 13.2- Loans to customers (2) 18,586,526 18,536,672 17,858,363 16,387,859 4.1 13.4- Loans to banks (2) 709,057 898,066 1,031,870 1,504,306 -31.3 -52.9- Securities portfolio 4,756,474 3,997,113 3,455,051 3,348,360 37.7 42.1

Capital and reserves 3,706,606 3,646,948 3,502,342 3,624,103 5.8 2.3


12/08 9/08

INCOME STATEMENT (1)

Gross operating income 665,105 468,915 837,056 632,881 5.1Net income from financial management 611,454 429,479 770,102 568,458 7.6Operating profit from ordinary activities before taxes 246,211 172,859 296,769 240,473 2.4Profit for the period 179,238 133,093 223,469 190,976 -6.1

RESOURCES (3)

Number of branches 534 534 534 494 - 8.1Staff 4,546 4,554 4,565 4,309 -0.4 5.5

FINANCIAL RATIOS

Operating costs / Gross operating income 54.91% 54.73% 56.55% 51.83%

Operating profit from ordinary activities before taxes/Capital and reserves 6.64% 4.74% 8.47% 6.64%

ROE 4.84% 3.65% 6.38% 5.27%ROE (4) 6.02% 4.56% 7.81% 6.40%ROAE (5) 4.97% 3.72% 7.19% 6.03%ROAE (4) (5) 6.14% 4.68% 9.03% 7.53%

RISK ASSETS AND REGULATORY RATIOS (6)

Total Risk-Weighted Assets (1) 17,521,395 17,097,057 16,825,637 16,162,307 4.1 8.4

Core Tier 1/Total Risk-Weighted Assets 8.71% 8.93% 9.06% 10.41%Tier 1 capital / RWA 9.62% 9.86% 10.01% 10.41%Regulatory capital including Tier 3 capital/Total weighted assets 12.11% 12.40% 12.58% 12.16%

(1) Figures in thousands of euro(2) Gross of value adjustments and net of debt securities classified as L&R.(3) Statistics of the end of period.(4)(5) Net profit on average shareholders' equity (Return On Average Equity).(6) Figures as at 30/06/2009 are the official figures and therefore they differ from the management data shown in the half-year report.

Net of the AFS reserve established against the revaluation of the equity investment in the Bank of Italy.

80

FINANCIAL STATEMENTS OF THE PARENT BANK

81

BALANCE SHEET

BALANCE SHEET (thousands of euro)

ASSETSChange %

30/09/09 30/06/09 31/12/08 30/09/0809/09 12/08

09/09 09/08

10 -CASH AND CASH EQUIVALENTS 198,716 213,506 237,839 179,808 (16.4) 10.5 20 -FINANCIAL ASSETS HELD FOR TRADING 801,546 826,524 666,770 1,446,053 20.2 (44.6) 30 -FINANCIAL ASSETS DESIGNATED AT FAIR VALUE 753 - - - … … 40 -AVAILABLE-FOR-SALE FINANCIAL ASSETS 2,774,716 1,974,570 1,548,112 1,319,503 79.2 … 50 -FINANCIAL ASSETS HELD TO MATURITY 404,419 404,230 421,914 66,479 (4.1) … 60 -LOANS TO BANKS 1,492,300 1,676,042 1,804,097 1,973,076 (17.3) (24.4) 70 -LOANS TO CUSTOMERS 18,247,776 18,225,660 17,590,098 16,072,312 3.7 13.5 80 -HEDGING DERIVATIVES 68,780 58,254 53,246 21,722 29.2 …100 -EQUITY INVESTMENTS 1,037,102 1,037,145 962,150 961,822 7.8 7.8110 -TANGIBLE ASSETS 575,966 577,109 580,528 573,609 (0.8) 0.4120 -INTANGIBLE ASSETS 1,474,150 1,470,898 1,467,101 1,347,732 0.5 9.4

including: - goodwill 1,415,135 1,415,481 1,415,481 1,300,402 (0.0) 8.8

130 -TAX ASSETS 164,597 213,139 243,760 182,632 (32.5) (9.9)a) current 21,596 54,766 75,969 54,445 (71.6) (60.3)b) advanced 143,001 158,373 167,791 128,187 (14.8) 11.6

150 -OTHER ASSETS 694,631 848,858 879,811 767,071 (21.0) (9.4)TOTAL ASSETS 27,935,452 27,525,935 26,455,426 24,911,819 5.6 12.1

LIABILITIES Change %

30/09/09 30/06/09 31/12/08 30/09/0809/09 12/08

09/09 09/08

10 -AMOUNTS OWED TO BANKS 1,172,371 703,130 1,083,473 1,397,620 8.2 (16.1) 20 -AMOUNTS OWED TO CUSTOMERS 12,295,542 11,649,623 10,431,018 9,340,955 17.9 31.6 30 -SECURITIES IN ISSUE 8,171,064 8,947,006 8,696,409 8,135,189 (6.0) 0.4 40 -FINANCIAL LIABILITIES FROM TRADING 152,549 155,059 138,561 99,424 10.1 53.4 50 -FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE 611,960 611,194 577,786 564,952 5.9 8.3 60 -HEDGING DERIVATIVES 195,228 132,257 104,581 20,971 86.7 … 80 -TAX LIABILITIES 200,774 197,843 173,231 225,049 15.9 (10.8)

(a) current 31,898 35,257 26,861 59,741 18.8 (46.6)(b) deferred 168,876 162,586 146,370 165,308 15.4 2.2

100 -OTHER LIABILITIES 840,807 938,854 1,093,730 909,307 (23.1) (7.5)110 -STAFF TERMINATION INDEMNITY 69,885 70,657 71,841 67,203 (2.7) 4.0120 -PROVISIONS FOR RISKS AND CHARGES: 339,428 340,271 358,985 336,070 (5.4) 1.0

a) pensions and similar obligations 291,011 300,326 300,967 300,854 (3.3) (3.3)b) other provisions 48,417 39,945 58,018 35,216 (16.5) 37.5

130 -VALUATION RESERVES 580,478 520,528 452,456 574,335 28.3 1.1150 -CAPITAL INSTRUMENTS 1,178 1,178 1,179 1,264 (0.1) (6.8)160 -RESERVES 321,908 321,908 245,149 245,149 31.3 31.3170 -ADDITIONAL PAID-IN CAPITAL 1,012,742 1,013,034 1,013,259 1,013,376 (0.1) (0.1)180 -CAPITAL 1,790,300 1,790,300 1,790,299 1,789,979 0.0 0.0190 -OWN SHARES (-) - - - - … …200 -PROFIT (LOSS) FOR THE PERIOD 179,238 133,093 223,469 190,976 (19.8) (6.1)TOTAL LIABILITIES 27,935,452 27,525,935 26,455,426 24,911,819 5.6 12.1

82

INCOME STATEMENT


Change %

30/09/09 30/06/09 31/12/08 30/09/0809/09 09/08

10 - INTEREST INCOME AND SIMILAR REVENUES 733,582 520,735 1,227,884 892,365 (17.8) 20 - INTEREST EXPENSES AND SIMILAR CHARGES (323,509) (234,649) (633,963) (464,123) (30.3) 30 -NET INTEREST INCOME 410,073 286,086 593,921 428,242 (4.2) 40 - COMMISSION INCOME 196,389 126,906 240,552 173,772 13.0 50 - COMMISSION EXPENSES (21,355) (14,152) (32,210) (23,724) (10.0) 60 -NET COMMISSIONS 175,034 112,754 208,342 150,048 16.7 70 - DIVIDENDS AND OTHER SIMILAR REVENUES 56,379 56,097 60,505 55,919 0.8 80 - NET INCOME FROM TRADING ACTIVITIES 6,866 574 (38,666) (31,335) … 90 - NET INCOME FROM HEDGING ACTIVITIES 2,033 1,789 (393) 645 …100 - PROFIT (LOSS) ON DISPOSAL OR REPURCHASE OF: 15,896 10,558 12,668 13,314 19.4

a) loans 1,703 1,051 3,902 2,425 (29.8)b) available-for-sale financial assets 2,708 (2,135) 9,593 8,297 (67.4)d) financial liabilities 11,485 11,642 (827) 2,592 …

110 - NET VALUE ADJUSTMENT ON FINANCIAL ASSETS AND LIABILITIES DESIGNATED AT FAIR VALUE (1,176) 1,057 679 16,048 …

120 -GROSS OPERATING INCOME 665,105 468,915 837,056 632,881 5.1130 - NET VALUE ADJUSTMENTS DUE TO IMPAIRMENT OF: (53,651) (39,436) (66,954) (64,423) (16.7)

a) loans (51,389) (38,201) (60,894) (63,617) (19.2)b) available-for-sale financial assets (2,141) (1,531) (7,970) - …d) other financial assets (121) 296 1,910 (806) (85.0)

140 -NET INCOME FROM FINANCIAL MANAGEMENT 611,454 429,479 770,102 568,458 7.6150 - ADMINISTRATIVE COSTS: (387,456) (269,393) (501,902) (360,669) 7.4

a) staff costs (236,480) (163,984) (298,660) (209,270) 13.0b) other administrative costs (150,976) (105,409) (203,242) (151,399) (0.3)

160 - NET PROVISIONS FOR RISKS AND CHARGES (2,553) (2,165) (2,148) 3,023 …170 - DEPRECIATION OF TANGIBLE ASSETS (11,055) (7,253) (12,947) (8,653) 27.8180 - AMORTIZATION OF INTANGIBLE ASSETS (12,638) (8,017) (13,415) (9,437) 33.9190 - OTHER OPERATING EXPENSES AND REVENUES 48,499 30,209 57,040 47,726 1.6200 - OPERATING COSTS (365,203) (256,619) (473,372) (328,010) 11.3210 - PROFIT (LOSS) FROM EQUITY INVESTMENTS (52) - (78) - …240 - PROFIT (LOSS) FROM DISPOSAL OF INVESTMENTS 12 (1) 117 25 (52.0)250 -OPERATING PROFIT (LOSS) FROM ORDINARY ACTIVITIES

BEFORE TAXES 246,211 172,859 296,769 240,473 2.4

260 - INCOME TAXES FOR THE PERIOD (66,973) (39,766) (73,300) (49,497) 35.3

270 -PROFIT (LOSS) FROM ORDINARY ACTIVITIES AFTER TAXES 179,238 133,093 223,469 190,976 (6.1)

290 -PROFIT (LOSS) FOR THE PERIOD 179,238 133,093 223,469 190,976 (6.1)(1) By letter no. 8309 dated 5 January 2009 ("Regulations on bank financial statements"), the Bank of Italy has established, inter alia that conventionally fees paid to the statutory auditors have tobe recorded under sub-item "a) staff costs" and not under item "b) other administrative expenses". The figures as at September 2008 have been adequately reclassified to allow a homogeneouscomparison.

83

STATEMENT OF COMPREHENSIVE INCOME

STATEMENT OF COMPREHENSIVE INCOME (figures in thousands of euro)

Change 9/09 - 9/08

30/9/09 30/6/09 31/12/08 30/9/08 absolute %

10 PROFIT (LOSS) FOR THE PERIOD 179,238 133,093 223,469 190,976 (11,738) -6.1%Other income components after taxes

20 Available-for-sale financial assets: 137,673 65,810 (154,846) (83,805) 221,478 264.3%30 Tangible assets 0 0 0 0 0 ...40 Intangible assets 0 0 0 0 0 ...50 Foreign investment hedge: 0 0 0 0 0 ...60 Cash flow hedge: (9,650) 2,263 (55,982) (5,184) (4,466) 86.1%70 Currency differences: 0 0 0 0 0 ...80 Non-current assets held for sale: 0 0 0 0 0 ...90 Actuarial profits (losses) on defined benefit plans 0 0 0 0 0 ...

100 Share of the valuation reserves of equity investmentsdesignated at equity: 0 0 0 0 0 ...

110 Total other income components after taxes 128,023 68,073 (210,828) (88,989) 217,012 243.9%120 TOTAL PROFITABILITY (Item 10+110) 307,261 201,166 12,641 101,987 205,274 201%

84

STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

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Capital: 1,790,299 - 1,790,299 - - - 1 - - - - - - 1,790,300a) ordinary shares 1,615,033 - 1,615,033 - - - 1 - - - - - - 1,615,034b) other shares 175,266 - 175,266 - - - - - - - - - - 175,266Additional paid-in capital 1,013,259 - 1,013,259 - - - (517) - - - - - - 1,012,742Reserves: 245,149 - 245,149 76,760 - - - - - - - - - 321,908a) profits 216,219 - 216,219 76,760 - - - - - - - - - 292,979b) other 28,929 - 28,929 - - - - - - - - - - 28,929Valuation reserves: 452,456 - 452,455 - - 128,023 580,478Capital instruments 1,179 - 1,179 - - - (1) - - - - - - 1,178Own shares - - - - - - - - - - - - - - Profit (Loss) for the period 223,469 - 223,469 (76,760) (146,709) - - - - - - - 179,238 179,238Shareholders' equity 3,725,810 - 3,725,810 - (146,709) - (517) - - - - - 307,261 3,885,844

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Capital: 1,390,082 - 1,390,082 - - - 400,217 - - - - - - 1,790,299a) ordinary shares 1,214,734 - 1,214,734 - - - 400,298 - - - - - - 1,615,032b) other shares 175,348 - 175,348 - - - (81) - - - - - - 175,267Additional paid-in capital 461,064 - 461,064 - - - 552,195 - - - - - - 1,013,259Reserves: 195,795 - 195,795 63,347 - (13,932) (61) - - - - - - 245,149a) profits 166,805 - 166,805 63,347 - (13,932) - - - - - - - 216,220b) other 28,990 - 28,990 - - - (61) - - - - - - 28,929Valuation reserves: 663,455 - 663,455 - - - (171) - - - - - (210,828) 452,456Capital instruments 1,219 - 1,219 - - - (40) - - - - - - 1,179Own shares - - - - - - - - - - - - - - Profit (Loss) for the period 210,049 - 210,049 (63,347) (146,702) - - - - - - - 223,469 223,469Shareholders' equity 2,921,664 - 2,921,664 - (146,702) (13,932) 952,140 - - - - - 12,641 3,725,811


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Capital: 1,390,082 - 1,390,082 - - - 399,897 - - - - - - 1,789,979a) ordinary shares 1,214,734 - 1,214,734 - - - 399,978 - - - - - - 1,614,712b) other shares 175,348 - 175,348 - - - (81) - - - - - - 175,267Additional paid-in capital 461,064 - 461,064 - - - 552,312 - - - - - - 1,013,376Reserves: 195,795 - 195,795 63,347 - (13,932) (61) - - - - - - 245,149a) profits 166,805 - 166,805 63,347 - (13,932) - - - - - - - 216,220b) other 28,990 - 28,990 - - - (61) - - - - - - 28,929Valuation reserves: 663,455 - 663,455 - - - (131) - - - - - (88,989) 574,335Capital instruments 1,219 - 1,219 - - - 45 - - - - - - 1,264Own shares - - - - - - - - - - - - - - Profit (Loss) for the period 210,049 - 210,049 (63,347) (146,702) - - - - - - - 190,976 190,976Shareholders' equity 2,921,664 - 2,921,664 - (146,702) (13,932) 952,062 - - - - - 101,987 3,815,079


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CASH FLOW STATEMENT

CASH FLOW STATEMENTDirect method

A. OPERATING ACTIVITIES 30/09/09 30/06/09 31/12/08 30/09/08

1. Management 211,752 143,287 387,931 377,354- interest income received (+) 696,612 517,030 1,223,114 946,398 - interest expenses paid (-) (353,221) (272,076) (598,233) (434,003) - dividends and similar revenues (+) 9,772 9,512 13,480 11,886 - net commissions (+/-) 175,034 112,754 208,342 150,049 - staff costs (-) (200,915) (134,615) (239,582) (175,238) - other costs (-) (179,983) (128,088) (332,878) (237,449) - other revenues (+) 92,924 66,621 214,980 164,408 - taxes and duties (-) (28,471) (27,851) (101,292) (48,697)

2. Liquidity generated/absorbed by financial assets (1,255,304) (993,574) (3,752,660) (2,362,050)

- financial assets held for trading (123,097) (159,096) 56,441 (198,784) - financial assets designated at fair value (663) - - - - available-for-sale financial assets (1,013,556) (334,127) (139,668) (11,745) - loans to customers (672,293) (674,775) (3,386,510) (1,941,325) - loans to banks: at sight 4,739 43 338,794 (92,348) - loans to banks: other loans 301,874 128,740 (232,785) 24,436 - other assets 247,692 45,641 (388,932) (142,284)

3. Cash generated/absorbed by financial liabilities 1,192,146 1,002,674 3,601,831 2,026,237

- amounts owed to banks: at sight 518,381 (760,687) 315,292 132,163 - amounts owed to banks: other (427,054) 383,637 (1,763,487) (1,274,106) - amounts owed to customers 1,852,846 1,212,083 2,190,482 1,101,917 - securities in issue (464,008) 314,440 2,661,346 2,074,638 - financial liabilities from trading 34,754 30,937 (28,492) (69,436) - financial liabilities designated at fair value 9,154 19,609 39,119 42,532 - other liabilities (331,927) (197,345) 187,571 18,529

Net liquidity generated/absorbed by operating activities 148,594 152,387 237,102 41,541

B. INVESTING ACTIVITIES1. Liquidity generated by 60,530 60,632 47,064 44,059

- equity investment disposals - - (78) - - dividends received on equity investments 46,607 46,585 47,025 44,034 - disposal/reimbursement of financial assets held to maturity 13,911 14,048 - - - tangible asset disposals 12 (1) 117 25

2. Liquidity absorbed by (101,537) (90,642) (1,036,170) (904,125)

- equity investment acquisitions (75,004) (74,994) (16,056) (15,728) - tangible asset acquisitions (6,493) (3,834) (32,503) (21,289) - intangible asset acquisitions (20,040) (11,814) (29,202) (20,934) - business unit acquisitions - - (958,409) (846,174)

Net liquidity generated/absorbed by investing activities (41,007) (30,010) (989,106) (860,066) C. FUNDING ACTIVITIES

- own share issues/acquisitions - - 398,849 398,852 - additional paid-in capital - - 550,477 550,934 - capital instrument issues/acquisitions - - (8,031) - - dividend distribution and others (146,710) (146,710) (146,702) (146,702)

Net liquidity generated/absorbed by funding activities (146,710) (146,710) 794,593 803,084

NET LIQUIDITY GENERATED/ABSORBED DURING THE PERIOD (39,123) (24,333) 42,589 (15,441) - KEY: (+) generated, (-) absorbedFigures in thousands of euro.

RECONCILIATION

Balance sheet items 30/09/09 30/06/09 31/12/08 30/09/08

Cash and cash equivalents at the beginning of the period237,839 237,839 195,250 195,250

Total net liquidity generated/absorbed during the period(39,123) (24,333) 42,589 (15,441)

Cash and cash equivalents at period end198,716 213,506 237,839 179,809


88

EXPLANATORY NOTES

89

ACCOUNTING POLICIES

The Interim Report on Operations of the Banca Carige S.p.A. – Cassa di Risparmio di Genova e Imperia has been drawn up in accordance with IAS 34 (Interim financial statements). The international accounting principles IAS/IFRS and the related interpretations (SIC/IFRIC), officially approved by the European Union and in force on 30 September 2009, were applied for the valuation and measurement of the accounting balances, and, where necessary, the directions referred to in the Bank of Italy Circular no. 262 dated 22 December 2005 were observed (financial statements for banks: schemes and rules for preparation).

As regards the phases of classification, recording, valuation and cancellation of asset and liability items involved in preparing this Report, as with the methods of entering costs and revenues, the same accounting standards used in preparation of the financial statements as at 31 December 2008 were applied, with the exception of what is detailed below. For more details please refer to the paragraph “Accounting policies” in the Consolidated Interim Financial Statements of the Banca Carige Group. The Interim Financial Statements contained in this Interim Financial Report have been audited by the company Deloitte & Touche SpA.

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NET INCOME FROM INTERMEDIATION

ACTIVITIES

It should be pointed out that, effective from 2006 (ex-Law 262/2005, “Provisions for the protection of savings and regulation of financial markets”), the Carige Group introduced an organisational change which reserves the role of bond issuer for the Parent Bank, and entrusts the activity of placement to all Group Banks; subsequently, to avoid problems connected with maturity transformation, Carige’s Board of Directors resolved the hedging of the medium/long-term financial requirements of subsidiary banks through the issue of its own bonds subscribed by Carige. For the Parent Bank, said operation determined a

re-composition of FIA in favour of direct deposits, which recorded a sharp rise over the twelve-month period, and an increase in the volume of the securities portfolio.

The aggregate of the Financial Intermediation Activities on behalf of customers (FIA) – direct and indirect deposits – amounted to euro 39,068.9 million, an increase of 4% and 7.1% respectively in nine and twelve months. Direct deposits amounted to euro 21,078.6 million, an increase of 7% in six months and 16.8% in twelve months; indirect deposits totalled euro 17,990.3 million, an increase from the start of the year (+0.7%) and down by 2.4% from September 2008; it is composed for 57.2% of assets under management and 42.8% of assets under custody.

FINANCIAL INTERMEDIATION ACTIVITIES (figures in thousands of euro)


12/08 09/08Total (A+B) 39,068,895 39,062,020 37,571,041 36,474,143 4.0 7.1

Direct deposits (A) 21,078,566 21,207,823 19,705,213 18,041,096 7.0 16.8 % on Total 54.0% 54.3% 52.4% 49.5%Indirect deposits (B) 17,990,329 17,854,197 17,865,828 18,433,047 0.7 -2.4 % on Total 46.0% 45.7% 47.6% 50.5% - Assets under management 10,286,248 9,798,642 9,314,653 9,491,044 10.4 8.4 % on Total 26.3% 25.1% 24.8% 26.0% % on Indirect deposits 57.2% 54.9% 52.1% 51.5% - Assets in custody 7,704,081 8,055,555 8,551,175 8,942,003 -9.9 -13.8 % on Total 19.7% 20.6% 22.8% 24.5% % on Indirect deposits 42.8% 45.1% 47.9% 48.5%

Total funding, which includes direct deposits from customers (euro 21,078.6 million) and banks (euro 1,172.4 million), amounted to euro 22,250.9 million, up by 7% from the beginning of the year, and by 14.5% from the end of September 2008. Direct deposits increased by 7% from the start of the year and by 16.8% from the end of September 2008. The short-term component, at euro 12,110.5 million, increased by 18.4% over nine months and 33.7% over twelve months, driven, in particular, by the success of the initiative tied to the introduction of the new on-line deposit account. Medium/long-term deposits, equal to euro 8,968.1 million, fell by 5.4% in nine months and 0.2% in twelve months, accounting for 42.5%

of the total (48.1% in December and 49.8% in September 2008). Within direct deposits, amounts owed to customers totalled euro 12,295.5 million (+17.9% and +31.6% in nine and twelve months respectively). Securities in issue were represented almost entirely by bonds (-5.7% in nine months and +0.7% in the year), equalling a total of euro 8,171.1 million (-6% and +0.4% in nine and twelve months respectively). Liabilities designated at fair value (euro 612 million) rose by 5.9% over December 2008 and 8.3% against September 2008. The amount owed to banks rose by 8.2% for the nine month period but fell by 16.1% from September 2008.

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FUNDING (figures in thousands of euro)Change %

30/09/09 30/06/09 31/12/08 30/09/08 09/09 09/0912/08 09/08

Total (A+B) 22,250,937 21,910,953 20,788,686 19,438,716 7.0 14.5

Direct deposits (A) 21,078,566 21,207,823 19,705,213 18,041,096 7.0 16.8Amounts owed to customers 12,295,542 11,649,623 10,431,018 9,340,955 17.9 31.6 current accounts and free deposits 11,819,346 11,160,889 9,727,643 8,281,479 21.5 42.7 repurchase agreements 8,798 9,579 173,847 359,517 -94.9 -97.6 term deposits 23,423 24,257 28,062 34,951 -16.5 -33.0 loans 1,870 1,854 1,727 117,862 8.3 -98.4 funds managed on behalf of third parties 126 126 128 134 -1.6 -6.0 other deposits 441,979 452,918 499,611 547,012 -11.5 -19.2Securities in issue 8,171,064 8,947,006 8,696,409 8,135,189 -6.0 0.4 bonds 7,995,485 8,743,577 8,475,835 7,940,385 -5.7 0.7 other securities 175,579 203,429 220,574 194,804 -20.4 -9.9Liabilities at fair value 611,960 611,194 577,786 564,952 5.9 8.3 bonds 611,960 611,194 577,786 564,952 5.9 8.3

short term 12,110,482 11,477,861 10,226,893 9,057,881 18.4 33.7 % on Total 57.5 54.1 51.9 50.2medium-long term 8,968,084 9,729,962 9,478,320 8,983,215 -5.4 -0.2 % on Total 42.5 45.9 48.1 49.8

Amounts owed to banks (B) 1,172,371 703,130 1,083,473 1,397,620 8.2 -16.1Deposits of central banks 24,066 25,004 - 59,521 … -59.6Current accounts and free deposits 35,305 132,673 376,177 193,323 -90.6 -81.7Term deposits 188,953 152,187 340,862 637,512 -44.6 -70.4Repurchase agreements 605,994 73,116 71,339 218,656 … …Loans 318,053 320,150 295,095 288,608 7.8 10.2

Situation as at

Indirect deposits, at euro 17,990.3 million, increased against the end of 2008 (+0.7%) and fell by 2.4% over the twelve months. Assets under management amounted to euro 10,286.2 million, an increase on December 2008 (+10.4%) and September 2008 (+8.4%); assets under custody stood at euro 7,704.1 million, down against December 2008 (-9.9%) and September 2008 (-13.8%). With reference to assets under management, in the first nine months a decrease was recorded in mutual funds (-3.6% to euro 3,774.7 million) whereas there was an increase in both assets managed (+21.6% to

euro 3,573.6 million) and bancassurance products (+19.4% to euro 2,937.9 million). In the twelve-month period, the increase in bancassurance products (+30.6%) and assets managed (+30%) was essentially offset by the fall in mutual funds (-16%). As regards the assets in custody, government bonds fell by 18.1% in the nine month period to euro 4,021.7 million, and 17.2% on a year-on-year basis. The other securities (euro 3,682.4 million) increased by 1.2% on the year end but fell with respect to September 2008 (-9.9%).

INDIRECT DEPOSITS (figures in thousands of euro)

Change %30/09/09 30/06/09 31/12/08 30/09/08 09/09 09/09

12/08 09/08Total (A+B) 17,990,329 17,854,197 17,865,828 18,433,047 0.7 -2.4

Assets under management (A) 10,286,248 9,798,642 9,314,653 9,491,044 10.4 8.4 Mutual funds 3,774,737 3,593,098 3,915,407 4,491,523 -3.6 -16.0 Asset management (1) 3,573,569 3,379,507 2,938,349 2,749,347 21.6 30.0 Bancassurance products 2,937,942 2,826,037 2,460,897 2,250,174 19.4 30.6

Assets in custody (B) 7,704,081 8,055,555 8,551,175 8,942,003 -9.9 -13.8 Government securities 4,021,731 4,415,767 4,913,424 4,854,276 -18.1 -17.2 Other 3,682,350 3,639,788 3,637,751 4,087,727 1.2 -9.9(1) The figure includes the entire securities portfolio of the insurance subsidiaries.

Situation as at

92

Loans to customers, net of value adjustments totalling euro 433.1 million, amounted to euro 18,153.4 million, up by 4% compared with December 2008 (by 13.8% in twelve months). Before adjustments, the aggregate amounted to euro 18,586.5 million, showing a 4.1% increase in nine months and up 13.4% in twelve months. The short-term component stood at euro 4,018 million, down over the nine months (-12.6%), but up by 9.7% over twelve months; the medium/long-term component amounted to euro 13,882.7 million (+9.1% in nine months and +14.3% in twelve months), representing 74.7% of the nominal value (71.2% in December and 74.1% in September 2008). Bad loans amounted to euro 685.8 million (+27.2% from the beginning of the year and +18.1% in the twelve month period) representing 3.7% of total loans, greater than the 3% in December and the 3.5% in September 2008. Mortgages, inclusive of assets sold and not cancelled, amounted to euro 10,104.7 million and were the largest item within the loans to customers; the aggregate grew by 6.2% on December and 10.8% on September 2008.

Current accounts amounted to euro 2,219.5 million (-5.3% over nine months and +3.4% over twelve months). It should be pointed out that, by virtue of the commercial co-operation agreement signed with Creditis Servizi Finanziari SpA (Carige Group company specialised in consumer credit), as of 1 July 2008, the Bank started to place personal loans through said Company, providing loans totalling euro 146 million over the nine months (euro 199.8 million from the start of activities); also taking into account loans granted through Creditis, the trend in consumer credit showed a positive performance (+12.5% in nine months and +16% in the year). Net of value adjustments of euro 0.9 million, loans to banks amounted to euro 708.2 million, down by 31.3% from the end of 2008 and 52.9% from September 2008. The net interbank position (difference between loans and amounts owed to banks), showed a net debt position of euro 463.3 million against a net debt position of euro 51.6 million in December and a net credit position of euro 106.7 million in September 2008.

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LOANS (1) (figures in thousands of euro)

Change %30/09/09 30/06/09 31/12/08 30/09/08 09/09 09/09

12/08 09/08Total (A+B) 18,861,561 19,012,661 18,493,895 17,455,451 2.0 8.1

Loans to customers (A) 18,153,390 18,115,484 17,462,803 15,951,792 4.0 13.8-nominal value (2) 18,586,526 18,536,672 17,858,363 16,387,859 4.1 13.4

current accounts 2,219,483 2,199,499 2,344,498 2,146,025 -5.3 3.4repurchase agreements - 255,272 658,796 - -100.0 …mortgages (3) (4) 9,747,674 9,467,084 9,102,958 8,673,017 7.1 12.4credit cards, personal loans and salary-backed loans 275,672 303,078 368,723 379,824 -25.2 -27.4leasing 816,089 810,856 821,860 830,481 -0.7 -1.7factoring 118,268 128,116 121,903 117,648 -3.0 0.5other loans 3,652,079 3,685,679 2,917,815 2,673,148 25.2 36.6assets sold and not cancelled (4) 357,022 371,888 414,453 448,597 -13.9 -20.4impaired assets (4) (5) 1,400,239 1,315,200 1,107,357 1,119,119 26.4 25.1

-short term 4,018,040 4,357,123 4,595,653 3,663,708 -12.6 9.7 % on nominal value 21.6 23.5 25.7 22.4 -medium/long term 13,882,707 13,545,378 12,723,508 12,143,563 9.1 14.3 % on nominal value 74.7 73.1 71.2 74.1 - Bad loans 685,779 634,171 539,202 580,588 27.2 18.1 % on nominal value 3.7 3.4 3.0 3.5

-Value adjustments (-) 433,136 421,188 395,560 436,067 9.5 -0.7

Loans to banks (B) 708,171 897,177 1,031,092 1,503,659 -31.3 -52.9-nominal value (2) 709,057 898,066 1,031,870 1,504,306 -31.3 -52.9

compulsory reserves 278,510 112,189 327,713 147,671 -15.0 88.6other loans to central banks - - - 25 … -100.0current accounts and free deposits 115,364 149,740 120,749 538,726 -4.5 -78.6term deposits 50,787 408,158 438,251 192,295 -88.4 -73.6repurchase agreements 120,904 147,813 23,122 518,652 … -76.7loans 127,617 63,840 105,919 90,873 20.5 40.4

impaired assets 15,875 16,326 16,116 16,064 -1.5 -1.2

-short term 663,330 834,375 947,194 1,418,475 -30.0 -53.2 % on nominal value 93.6 92.9 91.8 94.3 -medium/long term 45,727 63,691 84,676 85,831 -46.0 -46.7 % on nominal value 6.4 7.1 8.2 5.7 - Bad loans - - - … … % on nominal value - - - -

-Value adjustments (-) 886 889 778 647 13.9 36.9

(1) Net of debt securities classified as L&R.(2) Before value adjustments.(3) Including the fair value of loans for which we exercised the option of the so-called "Fair Value Option" (para. 9 IAS 39) - euro 753 thousand (4) Following some recent clarifications provided by the Bank of Italy, loans included in sub-item "assets sold and not cancelled" related to securitisation transactions, for which no "derecognition" has taken place, have been reclassified to sub-items "mortgages" and "impaired assets". (5) Impaired assets do not include assets sold and not cancelled.

Situation as at

With regard to customers, impaired loans, cash and endorsement, amounted to euro 1,443.6 million, up by 25.9% for the nine-month period and 24.4% in the year, and the corresponding value adjustments amounted to euro 383.5 million (+8.6% and +1.9% for the nine-month and twelve-month periods respectively). The cash loans component stood at euro 1,422.4 million (+26.2% since December and +24.7% since September 2008). Endorsement loans equalled euro 21.2 million (+7% in the nine-month period and +4.2% in the twelve-month period). As regards cash loans to customers, the analysis of the individual aggregates shows the following:

− bad loans totalled euro 685.8 million, up by 27.2% from the beginning of the year, and by 18.1% in the year; they were written down by 46.2% (54.1% in December and 55.8% in September 2008). The bad loans/loans ratio as regards customers stood at 3.7%, up on both December (3%) and September 2008 (3.5%). The Bank, in line with the overall goal of a wider and more extensive use of rating system basic parameters in managerial and operational practice, adopted the statistical LGD model (Loss Given Default) for the evaluation of insignificant bad loan positions, developed in-house on the basis of discounted historical flows of collections linked to the recovery process. The average

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amount of the positions evaluated in this way stood at roughly euro 40,000. The LGD model, which takes account of all direct and indirect costs connected with the recovery process makes it possible to maintain an analytical approach to evaluating individual positions, examined, in fact, on the basis of different analysis axes which weigh up the nature of the borrower, the range of exposure at the moment of default, the type of guarantee given and its level of hedging. Application of this methodology permits positive results of an operating nature, in light of greater standardisation of processes and a higher level of consistency in the evaluation of the positions in question, and has a positive impact on value adjustments on the bad loans portfolio;

− watchlist loans amounted to euro 409.2 million, up by 12.2% from the end of the year and 58.1% in the twelve-month period. They were written down by 13.2% (14.5% in December and 11.7% in September 2008);

− rescheduled loans amounted to euro 110.3 million, an increase over the euro 3.7 million in December 2008 and euro 3.8 million in September 2008. They were written down by 2% (6.7% in December 2008 and 6.8% in September 2008);

− past due loans amounted to euro 217 million, down by 0.9% in the nine month period and by 26.9% in the twelve month period. They were written down by 2.6% (1.6% in December and 5.6% in September 2008).

Impaired endorsement loans amounted to euro 21.2 million, down by 7% in nine months and 4.2% in the twelve-month period; they were written down by 23.1% (24.1% in December and 26.3% in September 2008). Overall, value adjustments on cash and endorsement loans to customers amounted to euro 441.6 million, including euro 433.1 million of cash loans and euro 8.5 million of endorsement loans.

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CREDIT QUALITY (1) (figures in thousands of euro)

Gross exposure (a)

Value adjustments (b)

Net exposure (a-b)

%Gross

exposure (a)Value

adjustments (b)Net

exposure (a-b)%

b/a b/aCash loans(2)Bad loans 685,779 316,721 369,058 46.2 634,171 312,671 321,500 49.3 - customers 685,779 316,721 369,058 46.2 634,171 312,671 321,500 49.3Watchlist loans 409,484 54,048 355,436 13.2 365,291 52,311 312,980 14.3 - banks 247 18 229 7.3 245 21 224 8.6 - customers 409,237 54,030 355,207 13.2 365,046 52,290 312,756 14.3Rescheduled loans 125,928 3,043 122,885 2.4 128,395 3,821 124,574 3.0 - banks 15,626 868 14,758 5.6 16,079 868 15,211 5.4 - customers 110,302 2,175 108,127 2.0 112,316 2,953 109,363 2.6Past due loans 217,038 5,658 211,380 2.6 223,849 4,396 219,453 2.0 - banks 2 - 2 - 2 - 2 - - customers 217,036 5,658 211,378 2.6 223,847 4,396 219,451 2.0

Total impaired loans 1,438,229 379,470 1,058,759 26.4 1,351,706 373,199 978,507 27.6

Performing loans 17,857,354 54,552 17,802,802 0.3 18,083,032 48,878 18,034,154 0.3 - banks 693,182 - 693,182 - 881,740 - 881,740 - - customers 17,164,172 54,552 17,109,620 0.3 17,201,292 48,878 17,152,414 0.3Total cash loans 19,295,583 434,022 18,861,561 2.2 19,434,738 422,077 19,012,661 2.2 - banks 709,057 886 708,171 0.1 898,066 889 897,177 0.1 - customers 18,586,526 433,136 18,153,390 2.3 18,536,672 421,188 18,115,484 2.3Credit commitmentsImpaired 21,219 4,898 16,321 23.1 18,904 4,770 14,134 25.2 - customers 21,219 4,898 16,321 23.1 18,904 4,770 14,134 25.2Other loans 1,426,014 3,597 1,422,417 0.3 1,418,349 3,309 1,415,040 0.2 - banks 21,162 - 21,162 - 20,078 - 20,078 - - customers 1,404,852 3,597 1,401,255 0.3 1,398,271 3,309 1,394,962 0.2Total credit commitments 1,447,233 8,495 1,438,738 0.6 1,437,253 8,079 1,429,174 0.6 - banks 21,162 - 21,162 - 20,078 - 20,078 - - customers 1,426,071 8,495 1,417,576 0.6 1,417,175 8,079 1,409,096 0.6Total 20,742,816 442,517 20,300,299 2.1 20,871,991 430,156 20,441,835 2.1 - banks 730,219 886 729,333 0.1 918,144 889 917,255 0.1 - customers 20,012,597 441,631 19,570,966 2.2 19,953,847 429,267 19,524,580 2.2

Gross exposure (a)

Value adjustments (b)

Net exposure (a-b)

%Gross

exposure (a)Value

adjustments (b)Net

exposure (a-b)%

b/a b/a

Cash loansBad loans 539,202 291,915 247,287 54.1 580,588 323,908 256,680 55.8 - customers 539,202 291,915 247,287 54.1 580,588 323,908 256,680 55.8Watchlist loans 365,067 52,849 312,218 14.5 258,819 30,257 228,562 11.7 - banks 241 21 220 8.7 46 40 6 87.0 - customers 364,826 52,828 311,998 14.5 258,773 30,217 228,556 11.7Rescheduled loans 19,535 1,004 18,531 5.1 19,550 864 18,686 4.4 - banks 15,873 757 15,116 4.8 15,778 607 15,171 3.8 - customers 3,662 247 3,415 6.7 3,772 257 3,515 6.8Past due loans 219,042 3,414 215,628 1.6 297,306 16,675 280,631 5.6 - banks 2 - 2 - 240 - 240 - - customers 219,040 3,414 215,626 1.6 297,066 16,675 280,391 5.6

Total impaired loans 1,142,846 349,182 793,664 30.6 1,156,263 371,704 784,559 32.1

Performing loans 17,747,387 47,156 17,700,231 0.3 16,735,902 65,010 16,670,892 0.4 - banks 1,015,754 - 1,015,754 - 1,488,242 - 1,488,242 - - customers 16,731,633 47,156 16,684,477 0.3 15,247,660 65,010 15,182,650 0.4

Total cash loans 18,890,233 396,338 18,493,895 2.1 17,892,165 436,714 17,455,451 2.4 - banks 1,031,870 778 1,031,092 0.1 1,504,306 647 1,503,659 0.0 - customers 17,858,363 395,560 17,462,803 2.2 16,387,859 436,067 15,951,792 2.7Credit commitmentsImpaired 19,826 4,772 15,054 24.1 20,361 5,364 14,997 26.3 - customers 19,826 4,772 15,054 24.1 20,361 5,364 14,997 26.3Other loans 1,536,678 3,603 1,533,075 0.2 1,458,806 5,697 1,453,109 0.4 - banks 58,586 - 58,586 - 70,880 - 70,880 - - customers 1,478,092 3,603 1,474,489 0.2 1,387,926 5,697 1,382,229 0.4

Total credit commitments 1,556,504 8,375 1,548,129 0.5 1,479,167 11,061 1,468,106 0.7 - banks 58,586 - 58,586 - 70,880 - 70,880 - - customers 1,497,918 8,375 1,489,543 0.6 1,408,287 11,061 1,397,226 0.8

Total 20,446,737 404,713 20,042,024 2.0 19,371,332 447,775 18,923,557 2.3 - banks 1,090,456 778 1,089,678 0.1 1,575,186 647 1,574,539 0.0

- customers 19,356,281 403,935 18,952,346 2.1 17,796,146 447,128 17,349,018 2.5

30/9/09 30/6/09

(1) Net of debt securities classified as Loans & Receivables (L&R)(2) Including the fair value of loans to customers for which we opted for the so-called "Fair Value Option" (para. 9 IAS 39) - Assets Item 30 amounting to euro 753 thousand.

31/12/08 30/9/08

The securities portfolio amounted to euro 4,756.5 million, up by 37.7% and 42.1% in nine

and twelve months respectively. Roughly 76% of the portfolio was accounted for by debt securities,

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which increased by +48.7% in nine months and +61.5% in twelve. Equities showed lower growth (+12.6% and +6.7%) while shares in collective investment schemes increased from the beginning of the year (+1.7%) but fell over twelve months (-20.4%). Equities available for sale included the equity investment in the Bank of Italy, accounted for at euro 776.8 million; this figure results from a valuation at fair value - using shareholders’ equity

as the most reliable proxy of fair value – performed on the basis of the balance sheet data of the Bank of Italy as at 31 December 2008 (last approved financial statements), consistent with the accounting principle adopted for the preparation of the financial statements of the Bank and of the consolidated financial statements of the Banca Carige Group as at 31 December 2008.

SECURITIES PORTFOLIO (figures in thousands of euro)

Change %30/09/09 30/06/09 31/12/08 30/09/08 09/09 09/09

12/08 09/08

Debt securities 3,622,551 2,913,554 2,435,460 2,243,399 48.7 61.5Held for trading 651,111 682,677 538,129 1,325,595 21.0 -50.9Available for sale 1,687,753 937,606 575,117 261,388 … …Loans & Receivable 879,268 889,041 900,300 589,937Held to maturity 404,419 404,230 421,914 66,479 -4.1 …

Equities 1,000,928 953,763 888,808 937,826 12.6 6.7Held for trading 1,147 1,171 1,493 1,862 -23.2 -38.4Available for sale 999,781 952,592 887,315 935,964 12.7 6.8

Shares in collective investment schemes 132,995 129,796 130,783 167,135 1.7 -20.4Held for trading 45,813 45,424 45,103 44,984 1.6 1.8Available for sale 87,182 84,372 85,680 122,151 1.8 -28.6

Total 4,756,474 3,997,113 3,455,051 3,348,360 37.7 42.1

including:Held for trading (1) 698,071 729,272 584,725 1,372,441 19.4 -49.1Available for sale 2,774,716 1,974,570 1,548,112 1,319,503 79.2 …Loans & Receivable 879,268 889,041 900,300 589,937 -2.3 49.0Held to maturity 404,419 404,230 421,914 66,479 -4 …

(1) The breakdown does not correspond to the item 20 "Financial assets held for trading" as it is net of derivatives.

Situation as at

Pursuant to the amendments made to international accounting principles IAS 39 and IFRS 7 in October and November 2008, Banca Carige reclassified securities, effective from 1 July and 1 October 2008, for a total residual value of

euro 930.3 million as at 30 September 2009 (fair value at the reclassification date), as detailed in the following table.

RECLASSIFICATIONS OF FINANCIAL ASSETS (1) (figures in thousands of euro)(pursuant to the changes to IAS39 approved by IASB on 13/10/2008)

FROM/TO AFS HTM L&R TOTAL

HFT 346,594 396,588 151,113 894,295

AFS - - 36,040 36,040

TOTAL 346,594 396,588 187,153 930,335

(1) Amounts net of accruals In the absence of said reclassifications the Group would have recorded, as at 30 September 2009: − higher write-downs of euro 33.3 million

(down by euro 59.0 million in the half compared with the euro 92.3 million as at 31 December 2008) which generated euro 23.6 million in higher negative reserves of shareholders’ equity (down by euro 34.7 million in the first nine month of the year);

− lower interest income pertaining to amortised cost for euro 5.6 million, of which euro 3.3 million relating to the first nine months of the year;

− greater negative reserves of shareholders’ equity of euro 0.3 million, up by euro 5.6 million compared with euro 5.9 million as at 31 December 2008.

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These values are calculated before the respective taxes. The portfolio of debt securities reclassified in the AFS, HTM and L&R categories for a nominal total of euro 867.4 million had an effective interest rate of 5.75% with expected cash flows estimated at euro 1,029.7 million. The downturn in the financial markets and problems facing leading financial institutions led supranational and national Supervisory Bodies to recommend operators employ maximum transparency toward shareholders and investors in the disclosure of the criteria used in determining the fair value of financial assets and liabilities classified in the categories HFT, AFS and classified under the FVO. The table below shows a summary, for the Carige Group, of the values and respective percentages of the different levels of Fair Value used for the evaluation of the financial instruments classified in the categories HFT (Held For Trading), AFS (Available For Sale) and classified under the Fair Value Option (FVO): for the definition of the different levels of fair value, instead refer to the same paragraph in the Explanatory Notes of the Consolidated Interim Financial Statements. As at 30 September 2009, valuation reserves relative to securities classified in the AFS (Available For Sale) category amounted to euro

628.1 million (an increase of euro 137.7 million compared with the positive balance of euro 490.4 million at 31 December 2008) and composed of euro 749.0 million of positive reserves, relating mainly to the valuation of the equity investment in the Bank of Italy (euro 728.2 million), and of euro 120.9 million of negative reserves. The latter refer, for euro 16.6 million, to debt securities (composed almost entirely of Government, bank and corporate bonds with high credit ratings) and for euro 104.3 million to equities and shares in collective investment schemes of leading banking and insurance issuers (including Assicurazioni Generali S.p.A. for euro 56.5 million and four bank securities for euro 18.2 million). As regards the portion relative to equities, even though significant, that exceed quantitative impairment parameters defined by the model adopted by the Group (including a case with a negative reserve of euro 7.9 million which exceeds 80% of the decrease in fair value compared with the book value) the conditions of impairment were not deemed to exist following qualitative evaluations based on an analysis of the so-called fundamental aspects of the issuer that also took into consideration the economic results achieved in the first part of the current financial year as well as the performance in the months after the close of the half.

LEVELS OF FAIR VALUE USED (figures in thousands of euro)

Countervalue % Countervalue % Countervalue %

Financial assets 1,806,705 79.7 781,731 53.9 827,165 99.9 Financial liabilities 460,911 20.3 148,790 10.3 0 - Derivatives 21 0.0 519,572 35.8 438 0.1 Total 2,267,637 100.0 1,450,092 100.0 827,603 100.0 % on Total 49.89% 31.90% 18.21%% on Total net of the equityinvestment in Bank of Italy 60.36% 38.60% 1.04%

Level 1 Level 2 Level 3

The value of assets from hedging derivatives amounted to euro 68.8 million, up compared with euro 53.2 million in December and euro 21.7 million in September 2008. The value of liabilities from hedging derivatives, at euro 195.2 million, was higher

than the euro 104.6 million in December and euro 21 million in September 2008. A total of euro 18 million in revaluations and euro 72.2 million in write-downs were registered on hedging derivative contracts; changes in the underlying assets were positive for euro 56.3 million.

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ASSETS FROM HEDGING DERIVATIVES BY HEDGE TYPE (figures in thousands of euro)

Change %30/9/09 30/6/09 31/12/08 30/9/08 9/09 9/09

12/08 9/08

Asset hedging derivatives - - - 411 … -100.0Fair value hedging - - - 411 … -100.0 interest rates - - - 411 … -100.0Cash flow hedging - - - - … …General interest rate risk hedging - - - … …Liability hedging derivatives 68,780 58,254 53,246 21,311 29.2 …Fair value hedging 66,379 55,872 51,197 6,312 29.7 … interest rates 66,379 55,872 51,197 6,312 29.7 …Cash flow hedging - - - - … …General interest rate risk hedging 2,401 2,382 2,049 14,999 17.2 -84.0Total 68,780 58,254 53,246 21,722 29.2 …

Situation as at

LIABILITIES FROM HEDGING DERIVATIVES BY HEDGE TYPE (figures in thousands of euro)

Change %30/9/09 30/6/09 31/12/08 30/9/08 9/09 9/09

12/08 9/08

Asset hedging derivatives 106,660 62,414 38,234 6,552 … …Fair value hedging 106,660 62,414 38,234 6,552 … … interest rates 106,660 62,414 38,234 6,552 … …Cash flow hedging - - - - … …General interest rate risk hedging - - - - … …Liability hedging derivatives 88,568 69,843 66,347 14,419 33.5 …Fair value hedging - - 738 10,629 -100.0 -100.0 interest rates - - 738 10,629 -100.0 -100.0Cash flow hedging - - - - … …General interest rate risk hedging 88,568 69,843 65,609 3,790 35.0 …Total 195,228 132,257 104,581 20,971 86.7 …

Situation as at

With reference to the notional values, the derivative contract amount equalled euro 8,194.5

million, up from December (+13.4%) and with respect to September 2008 (+25.8%).

NOTIONAL VALUES OF DERIVATIVE CONTRACTS (figures in thousands of euro)

Change %30/9/09 30/6/09 31/12/08 30/9/08 9/09 9/09

12/08 9/08

Financial derivatives 8,013,914 7,633,657 7,009,073 6,284,546 14.3 27.5 futures 555 - - 16,900 … -96.7 forward agreements 291,889 448,631 694,284 601,989 -58.0 -51.5 swap 6,459,824 5,866,827 4,873,721 4,579,798 32.5 41.1 options purchased 912,176 962,292 1,028,178 623,159 -11.3 46.4 others 349,470 355,907 412,890 462,700 -15.4 -24.5Credit derivatives 180,615 175,713 215,153 230,516 -16.1 -21.6 tror 161 1,972 6,060 6,060 -97.3 -97.3 cds 180,454 173,741 209,093 224,456 -13.7 -19.6

TOTAL 8,194,529 7,809,370 7,224,226 6,515,062 13.4 25.8

Situation as at

Trading derivative contracts totalled euro 256 million, an increase compared with the euro 220.6 million in December (+16.1%), and euro 173 million in September 2008 (+48%).

Revaluations of euro 49.5 million and write-downs of euro 70.7 million were recorded on the trading derivative contracts. Net trading profits amounted to euro 1.3 million.

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TRADING DERIVATIVES (figures in thousands of euro)


12/08 9/08

Positive countervalues 103,475 97,252 82,045 73,612 26.1 40.6Financial derivatives 102,562 93,860 70,406 63,412 45.7 61.7 forward agreements 9,648 9,268 10,939 19,601 -11.8 -50.8 swap 64,392 61,892 36,765 19,334 75.1 … options purchased 28,522 22,700 22,702 24,477 25.6 16.5Credit derivatives 913 3,392 11,639 10,200 -92.2 -91.0 cds 913 3,392 11,639 10,200 -92.2 -91.0 others - - - - … …Negative countervalues 152,549 155,059 138,561 99,424 10.1 53.4Financial derivatives 149,052 151,989 135,595 98,117 9.9 51.9 forward agreements 4,309 6,518 11,360 9,092 -62.1 -52.6 swap 132,502 134,069 112,924 66,143 17.3 … issued options 12,241 11,402 11,311 22,882 8.2 -46.5Credit derivatives 3,497 3,070 2,966 1,307 17.9 … tror - 3 13 9 -100.0 -100.0 cds 3,497 3,067 2,953 1,298 18.4 …

TOTAL 256,024 252,311 220,606 173,036 16.1 48.0 Net income on derivative contracts was a negative euro 20.5 million; trading contracts made a negative contribution of euro 22.5 million

while hedges recorded a positive net result of euro 2 million.

NET INCOME ON DERIVATIVE CONTRACTS AS AT 30/9/2009(figures in thousands of euro)

Revaluations Write-downs Net profit Net incomeon trading

1. Trading contracts 49,466 - 70,654 - 1,344 - 22,5321.1 Financial derivatives 48,625 - 58,475 455 - 9,3951.2 Credit derivatives 841 - 12,179 - 1,799 - 13,137

Revaluations Write-downs Changes in underlying Net incomefrom hedging

2. Hedging contracts 17,991 - 72,236 56,278 2,0332.1 Asset hedging 3,072 - 69,232 66,504 3442.2 Liability hedging 14,919 - 3,004 - 10,226 1,689

TOTAL 67,457 - 142,890 54,934 - 20,499

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ECONOMIC RESULTS

As at 30 September 2009, the income statement posted a net profit of euro 179.2 million against euro 191 million for the same period in 2008.


Change 9/09 - 9/0830/9/09 30/6/09 31/12/08 30/9/08 absolute %

10 Interest income and similar revenues 733,582 520,735 1,227,884 892,365 -158,783 -17.820 Interest expenses and similar charges (323,509) (234,649) (633,963) (464,123) 140,614 -30.330 NET INTEREST INCOME 410,073 286,086 593,921 428,242 -18,169 -4.240 Commission income 196,389 126,906 240,552 173,772 22,617 13.050 Commission expenses (21,355) (14,152) (32,210) (23,724) 2,369 -10.060 NET COMMISSIONS 175,034 112,754 208,342 150,048 24,986 16.770 Dividends and other similar revenues 56,379 56,097 60,505 55,919 460 0.880 Net income from trading activities 6,866 574 (38,666) (31,335) 38,201 …90 Net income from hedging activities 2,033 1,789 (393) 645 1,388 …

100 Profit (loss) on disposal or repurchase of: 15,896 10,558 12,668 13,314 2,582 19.4a) loans 1,703 1,051 3,902 2,425 -722 -29.8b) available-for-sale financial assets 2,708 (2,135) 9,593 8,297 -5,589 -67.4d) financial liabilities 11,485 11,642 (827) 2,592 8,893 …

110 Net value adjustment on financial assets designated atfair value -1,176 1,057 679 16,048 -17,224 …

120 GROSS OPERATING INCOME 665,105 468,915 837,056 632,881 32,224 5.1130 Net value adjustments due to impairment to: (53,651) (39,436) (66,954) (64,423) 10,772 -16.7

a) loans (51,389) (38,201) (60,894) (63,617) 12,228 -19.2b) available-for-sale financial assets (2,141) (1,531) (7,970) - -2,141 …d) other financial assets (121) 296 1,910 (806) 685 -85.0

140 NET INCOME FROM FINANCIAL MANAGEMENT611,454 429,479 770,102 568,458 42,996 7.6

150 Administrative costs (387,456) (269,393) (501,902) (360,669) -26,787 7.4a) staff costs (1) (236,480) (163,984) (298,660) (209,270) -27,210 13.0b) other administrative costs (1) (150,976) (105,409) (203,242) (151,399) 423 -0.3

160 Net provisions for risks and charges (2,553) (2,165) (2,148) 3,023 -5,576 …170 Depreciation of tangible assets (11,055) (7,253) (12,947) (8,653) -2,402 27.8180 Amortization of intangible assets (12,638) (8,017) (13,415) (9,437) -3,201 33.9190 Other operating expenses and revenues 48,499 30,209 57,040 47,726 773 1.6200 OPERATING COSTS (365,203) (256,619) (473,372) (328,010) -37,193 11.3210 Profit (loss) from equity investments (52) - (78) - -52 …240 Profit (loss) from disposal of investments 12 (1) 117 25 -13 -52.0250 OPERATING PROFIT (LOSS) FROM ORDINARY

ACTIVITIES BEFORE TAXES 246,211 172,859 296,769 240,473 5,738 2.4260 Income taxes for the period (66,973) (39,766) (73,300) (49,497) -17,476 35.3270 PROFIT (LOSS) FROM ORDINARY ACTIVITIES

AFTER TAXES 179,238 133,093 223,469 190,976 -11,738 -6.1290 PROFIT (LOSS) FOR THE PERIOD 179,238 133,093 223,469 190,976 -11,738 -6.1

(1) By letter no. 8309 dated 5 January 2009 ("Regulations on bank financial statements"), the Bank of Italy has established, inter alia that conventionally fees paid to the statutoryauditors have to be recorded under sub-item "a) staff costs" and not under item "b) other administrative expenses". The figures as at September 2008 have been adequatelyreclassified to allow a homogeneous comparison.

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INCOME STATEMENT - QUARTERLY RESULTS (figures in thousands of euro)

30/9/09 30/9/08 CHANGE3rd quarter

20093rd quarter

2008 CHANGE 30/6/2009 10 - INTEREST INCOME AND SIMILAR REVENUES 733,582 892,365 (158,783) 212,847 316,478 (103,631) 520,735 20 - INTEREST EXPENSES AND SIMILAR CHARGES (323,509) (464,123) 140,614 (88,860) (167,856) 78,996 (234,649) 30 -NET INTEREST INCOME 410,073 428,242 (18,169) 123,987 148,622 (24,635) 286,086 40 - COMMISSION INCOME 196,389 173,772 22,617 69,483 60,425 9,058 126,906 50 - COMMISSION EXPENSES (21,355) (23,724) 2,369 (7,203) (8,563) 1,360 (14,152) 60 -NET COMMISSIONS 175,034 150,048 24,986 62,280 51,862 10,418 112,754 70 - DIVIDENDS AND OTHER SIMILAR REVENUES 56,379 55,919 460 282 489 (207) 56,097 80 - NET INCOME FROM TRADING ACTIVITIES 6,866 (31,335) 38,201 6,292 (7,520) 13,812 574 90 - NET INCOME FROM HEDGING ACTIVITIES 2,033 645 1,388 244 584 (340) 1,789100 - PROFIT (LOSS) ON DISPOSAL OR REPURCHASE OF: 15,896 13,314 2,582 5,338 1,043 4,295 10,558

a) loans 1,703 2,425 (722) 652 454 198 1,051b) available-for-sale financial assets 2,708 8,297 (5,589) 4,843 (120) 4,963 (2,135)d) financial liabilities 11,485 2,592 8,893 (157) 709 (866) 11,642

110 - NET VALUE ADJUSTMENT ON FINANCIAL ASSETS AND LIABILITIES DESIGNATED AT FAIR VALUE (1,176) 16,048 (17,224) (2,233) 15,621 (17,854) 1,057

120 -GROSS OPERATING INCOME 665,105 632,881 32,224 196,190 210,701 (14,511) 468,915130 - NET VALUE ADJUSTMENTS DUE TO IMPAIRMENT OF: (53,651) (64,423) 10,772 (14,215) (21,580) 7,365 (39,436)

a) loans (51,389) (63,617) 12,228 (13,188) (21,399) 8,211 (38,201)b) available-for-sale financial assets (2,141) - (2,141) (610) - (610) (1,531)d) other financial assets (121) (806) 685 (417) (181) (236) 296

140 -NET INCOME FROM FINANCIAL MANAGEMENT 611,454 568,458 42,996 181,975 189,121 (7,146) 429,479150 - ADMINISTRATIVE COSTS: (387,456) (360,669) (26,787) (118,063) (127,138) 9,075 (269,393)

a) staff costs (1) (236,480) (209,270) (27,210) (72,496) (70,226) (2,270) (163,984)b) other administrative costs (1) (150,976) (151,399) 423 (45,567) (56,912) 11,345 (105,409)

160 - NET PROVISIONS FOR RISKS AND CHARGES (2,553) 3,023 (5,576) (388) 2,990 (3,378) (2,165)170 - DEPRECIATION OF TANGIBLE ASSETS (11,055) (8,653) (2,402) (3,802) (3,082) (720) (7,253)180 - AMORTIZATION OF INTANGIBLE ASSETS (12,638) (9,437) (3,201) (4,621) (3,648) (973) (8,017)190 - OTHER OPERATING EXPENSES AND REVENUES 48,499 47,726 773 18,290 15,717 2,573 30,209200 - OPERATING COSTS (365,203) (328,010) (37,193) (108,584) (115,161) 6,577 (256,619)210 - PROFIT (LOSS) FROM EQUITY INVESTMENTS (52) - (52) (52) - (52) -240 - PROFIT (LOSS) FROM DISPOSAL OF INVESTMENTS 12 25 (13) 13 25 (12) (1)250 -OPERATING PROFIT (LOSS) FROM ORDINARY ACTIVITIES

BEFORE TAXES 246,211 240,473 5,738 73,352 73,985 (633) 172,859260 - INCOME TAXES FOR THE PERIOD (66,973) (49,497) (17,476) (27,207) (28,646) 1,439 (39,766)270 -

PROFIT (LOSS) FROM ORDINARY ACTIVITIES AFTER TAXES 179,238 190,976 (11,738) 46,145 45,339 806 133,093290 -PROFIT (LOSS) FOR THE PERIOD 179,238 190,976 (11,738) 46,145 45,339 806 133,093

(1) By letter no. 8309 dated 5 January 2009 (re: "Regulations on bank financial statements"), the Bank of Italy has established, inter alia that conventionally fees paid to the statutory auditors have to be recorded under sub-item "a) staff

costs" and not under item "b) other administrative expenses". The figures as at September 2008 have been adequately reclassified to allow a homogeneous comparison.

The net interest income amounted to euro 410.1 million, down by 4.2%. Interest income amounted to euro 733.6 million, down by 17.8%, and interest expense came to euro 323.5 million, down by 30.3%. Interest income on financial assets sold but not cancelled included euro 18.2 million relating to the securitisation of performing mortgages, Argo Mortgage 2, carried out in 2004, and euro 5.4 million relating to Banca Carige securities, sold as repurchase agreements. The interest expense on financial liabilities

associated with assets sold but still not cancelled included euro 12.4 million relating to the Argo Mortgage 2 transaction and euro 1.8 million relating to repurchase agreement transactions. The net interest income from customers, considering also the interest expense on securities in issue, amounting to euro 346.8 million, was down by 13.3%, whereas there was a positive interbank balance of euro 25.3 million (against an essentially nil value in September 2008).

INTEREST INCOME (figures in thousands of euro)

30/09/09 30/06/09 2008 30/09/08 absolute %

Financial assets held for trading 15,847 13,396 52,033 32,856 -17,009 -51.8Available-for-sale financial assets 31,487 17,447 25,702 17,561 13,926 79.3Financial assets held to maturity 7,919 5,934 3,968 1,237 6,682 …Loans to banks 35,914 27,331 77,805 59,708 -23,794 -39.9Loans to customers * 618,195 440,508 1,005,764 733,103 -114,908 -15.7Financial assets sold and not cancelled * 23,647 15,702 61,345 46,721 -23,074 -49.4Other intangible 573 417 1,267 1,179 -606 -51.4TOTAL INTEREST INCOME 733,582 520,735 1,227,884 892,365 -158,783 -17.8

Change 9/09 - 9/08

* Following some recent clarifications provided by the Bank of Italy, interest income on financial assets sold and not cancelled related to securitisation

transactions for which no "derecognition" has taken place has been reclassified to loans to customers.

102

INTEREST EXPENSES (figures in thousands of euro)

30/09/09 30/06/09 2008 30/09/08 absolute %

Amounts owed to banks 10,633 8,395 70,654 59,729 -49,096 -82.2Amounts owed to customers 78,586 55,880 138,589 100,531 -21,945 -21.8Securities in issue 193,068 141,641 322,968 230,734 -37,666 -16.3Financial liabilities designated at fair value 5,075 2,353 15,566 11,649 -6,574 -56.4Financial liabilities corresponding to assets sold and not cancelled

14,163 10,790 53,370 41,847-27,684

-66.2Other liabilities 292 208 3,323 3,132 -2,840 -90.7Hedging derivatives 21,692 15,382 29,493 16,501 5,191 31.5TOTAL INTEREST EXPENSES 323,509 234,649 633,963 464,123 -140,614 -30.3

Change 9/09 - 9/08

Net commissions amounted to euro 175 million, up by 16.7% compared with the first nine months of 2008. Commission income stood at euro 196.4 million, up by 13% on the figure for the first nine months of 2008. More specifically, there was a sharp increase in the item “other services”, which included the increase in commissions for syndicated loans, up from euro 1.8 million in September 2008 to the current euro 7.4 million, as a consequence of the development of activities

in this type of loan. Commissions from the distribution of third party services also increased (euro 25.4 million; +33.5%), largely driven by those from insurance products, and those on payment and collection services (euro 39.3 million; +7.1%). On the other hand there was a decrease in commissions from the placement of securities (euro 22 million; -25.4%). Commission expense, at euro 21.4 million, fell by 10%.

COMMISSION INCOME (figures in thousands of euro)

30/09/09 30/06/09 2008 30/09/08 absolute %

Guarantees issued 6,895 4,385 9,095 6,294 601 9.5Management, dealing and consultancy services: 68,268 44,697 88,942 66,150 2,118 3.2 1. Financial instruments trading 1,092 614 340 239 853 … 2. Currency trading 2,088 1,194 2,873 2,085 3 0.1 3. Asset management 5,169 3,572 7,551 5,230 -61 -1.2 4. Securities custody and administration 2,443 1,440 2,433 1,758 685 39.0 5. Custodian bank 2,581 1,534 3,861 3,038 -457 -15.0 6. Placement of securities 21,998 14,350 36,988 29,494 -7,496 -25.4 7. Collection of orders 7,541 5,073 7,823 5,316 2,225 41.9 9. Distribution of third-party services 25,356 16,920 27,073 18,990 6,366 33.5 - asset management 656 421 755 552 104 18.8 - insurance products 13,370 8,958 14,239 10,048 3,322 33.1 - other products 11,330 7,541 12,079 8,390 2,940 35.0Collection and payment services 39,303 24,698 50,254 36,693 2,610 7.1Servicing for securitizations 1,812 1,310 2,059 1,246 566 45.4Factoring services 1,042 737 1,232 875 167 19.1Other services 79,069 51,079 88,970 62,514 16,555 26.5

TOTAL COMMISSION INCOME 196,389 126,906 240,552 173,772 22,617 13.0

Change 9/09 - 9/08

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COMMISSION EXPENSES (figures in thousands of euro)

30/09/09 30/06/09 2,008 30/09/08 absolute %

Guarantees received 314 242 669 579 -265 -45.8Management and intermediation services 3,377 2,395 4,837 3,470 -93 -2.7 1. Financial instruments trading 566 483 393 279 287 … 3. Asset management 571 372 1,378 917 -346 -37.7 4. Securities custody and administration 1,209 834 2,030 1,505 -296 -19.7 5. Financial instruments placement 995 671 877 652 343 52.6 6. Door-to-door sale of securities, financial products and services 36 35 159 117 -81 -69.2Collection and payment services 11,504 7,364 17,468 12,999 -1,495 -11.5Other services 6,160 4,151 9,236 6,676 -516 -7.7

TOTAL COMMISSION EXPENSES 21,355 14,152 32,210 23,724 -2,369 -10.0

Change 9/09 - 9/08

Dividends and similar income amounted to euro 56.4 million (euro 55.9 million in September 2008). Net income from trading activities was a positive euro 6.9 million (negative for euro 31.3

million in September 2008), reflecting the recovery of the financial markets. Net income from hedging activities was a positive euro 2 million (euro 645 thousand in September 2008).

INCOME FROM TRADING ACTIVITIES (figures in thousands of euro)

30/09/09 30/06/09 2008 30/09/08 absolute %

Debt securities 31,871 23,090 (38,833) (35,373) 67,244 …Equities & collective investment schemes 1,542 933 (5,402) (5,364) 6,906 …Total equities, debt securities & collectiveinvestment schemes 33,413 24,023 (44,235) (40,737) 74,150 …Financial derivatives (9,395) (8,584) (2,067) 6,895 (16,290) …Credit derivatives (13,137) (9,520) 8,095 7,990 (21,127) …Currency differences (133) (133) (3,941) (8,153) 8,020 -98.4Other financial assets/liabilities from trading (3,882) (5,212) 3,482 2,670 (6,552) …INCOME FROM TRADING ACTIVITIES 6,866 574 (38,666) (31,335) 38,201 …

Change 9/09 - 9/08

The profit from the sale of loans and financial assets/liabilities was equal to euro 15.9 million (euro 13.3 million in the first nine months of 2008), essentially as a result of the repurchase of financial liabilities. Net income from financial assets/liabilities designated at fair value was positive for euro 1.2 million (positive for euro 16 million in the first nine months of 2008). Gross operating income rose by 5.1% to euro 665.1 million compared with the same period last year. Net value adjustments due to impairment to loans and other financial items amounted to euro 53.7 million, down against the figure recorded in the same period in 2008 (euro 64.4 million); this item included net

value adjustments on loans that totalled euro 51.4 million, down compared with the first nine months of 2008. They derive from an estimate of adjustments of euro 96.8 million and write-backs totalling euro 45.4 million; the positive effects deriving from adoption of the statistical LGD (Loss Given Default) model contributed to these items, developed internally for the evaluation of insignificant bad loan positions (for more details see the section dedicated to impaired loans in “Intermediation activities”); adjustments on financial assets available for sale (impairment) amounted to euro 2.1 million and refer to equities. Therefore, the net income from financial operations came to euro 611.5 million, up by 7.6% compared with the first nine months of 2008.

104

NET VALUE ADJUSTMENTS TO LOANS AND OTHER FINANCIAL ITEMS (figures in thousands of euro)

30/09/09 30/06/09 2008 30/09/08 absolute %

Loans to banks 108 112 170 - 108 …Loans to customers 51,281 38,089 60,724 63,617 -12,336 -19.4Credit commitments (other financial transactions) 121 (296) (1,910)

806 -685-85.0

Available-for-sale financial assets 2,141 1,531 7,970 - 2,141 …NET VALUE ADJUSTMENTS TO LOANSAND OTHER FINANCIAL ITEMS 53,651 39,436 66,954 64,423 -10,772 -16.7

Change 9/09 - 9/08

Operating costs amounted to euro 365.2 million, an increase of 11.3% compared with the first nine months of 2008. In detail, administrative costs amounted to euro 387.5 million, up by 7.4% over the twelve-month period and within these: - staff costs, increased by 13% to euro 236

million; - other administrative costs amounted to

euro 151 million (-0.3% against September 2008), mainly reflecting the containment of

general expenses (-2.3% in the twelve month period).

Net provisions for risks and charges stood at euro 2.6 million against a write-back of euro 3 million in the first nine months of the previous year. Value adjustments on tangible and intangible fixed assets amounted to euro 23.7 million, an increase of 31% in the twelve months.

OPERATING COSTS (figures in thousands of euro)

30/09/09 30/06/09 2008 30/09/08 absolute %

Staff costs (1) 236,480 163,984 298,660 209,270 27,210 13.0Other administrative costs (1) 150,976 105,409 203,242 151,399 (423) -0.3 - general costs 120,488 84,805 162,960 123,339 (2,851) -2.3 - indirect taxes 30,488 20,604 40,282 28,060 2,428 8.7Net provisions for risks and charges 2,553 2,165 2,148 (3,023) 5,576 …Amortization and depreciation on: 23,693 15,270 26,362 18,090 5,603 31.0 - intangible fixed assets 12,638 8,017 13,415 9,437 3,201 33.9 - tangible fixed assets 11,055 7,253 12,947 8,653 2,402 27.8Other operating expenses and revenues (48,499) (30,209) (57,040) (47,726) (773) 1.6TOTAL OPERATING COSTS 365,203 256,619 473,372 328,010 37,193 11.3

Change 9/09 - 9/08

(1) By letter no. 8309 dated 5 January 2009 ("Regulations on bank financial statements"), the Bank of Italy has established, inter alia that conventionally fees paid to the statutory

auditors have to be recorded under sub-item "a) staff costs" and not under item "b) other administrative expenses". Figures relating to the third quarter of 2008 were modified by

reclassifying an amount equal to euro 188 thousand from sub-item "b) other administrative expenses" to sub-item "a) staff costs" in order to allow a homogeneous comparison among

different periods. Other net operating revenues rose slightly (+1.6%) to euro 48.5 million.

OTHER OPERATING REVENUES AND EXPENSES (figures in thousands of euro)

30/09/09 30/06/09 2008 30/09/08 absolute %

Lease income and rent 2,468 1,563 3,346 2,475 -7 -0.3Charges to third parties: 27,613 18,431 35,329 26,594 1,019 3.8 recovery of taxes 26,674 17,805 34,085 25,664 1,010 3.9 customer insurance premiums 939 626 1,244 930 9 1.0Other revenues 23,998 14,295 31,402 22,777 1,221 5.4Total other revenues 54,079 34,289 70,077 51,846 2,233 4.3Operating costs on financial leases (289) (190) (2,027) (1,748) 1,459 -83.5Ordinary maintenance costs on investmentproperty (310) (241) (473) (345) 35 -10.1Expenses for improvement of third parties’ assets

(651) (434) (998) (651) - -Other expenses (4,330) (3,215) (9,539) (1,376) -2,954 …Total other expenses (5,580) (4,080) (13,037) (4,120) -1,460 35.4

TOTAL NET REVENUES 48,499 30,209 57,040 47,726 773 1.6

Change 9/09 - 9/08

105

Profit before taxes amounted to euro 246.2 million, an increase of 2.4% compared with the first nine months of 2008. Provisions for income taxes stood at euro 67 million, a sharp increase compared with the euro 49.5 million in September 2008, which benefitted from non-recurring positive effects, amounting to euro 25.7 million, attributable mainly to the application of substitute taxes on off-balance sheet differences. Net profit therefore amounted to euro 179.2 million, down by 6.1% compared with the euro 191 million in the same period in the previous year. With regard to the distribution of dividends please refer to the paragraph “Dividends distributed by the Parent Bank Banca Carige” contained in the explanatory notes of the consolidated interim financial statements.

TRANSACTIONS WITH RELATED

PARTIES

Asset and liability relations with shareholders who are able to exercise a significant influence, relations with investee companies (subsidiaries subject to considerable influence) and with other related parties (excluding the fees paid to Directors and Statutory Auditors, which are published annually in the Explanatory Notes to the Consolidated Financial Statements) as at 30 September 2009 were as follows:

RELATIONS WITH SHAREHOLDERS AND WITH INVESTEE COMPANIES (figures in thousands of euro)

Assets Liabilities Guarantees Dividends Other revenues Expensesand commitments distributed

CARIGE SHAREHOLDERS WHO EXERCISE A SIGNIFICANT INFLUENCE 4,334 4 0 76,321 261 211

Fondazione Cassa di Riparmio di Genova e Imperia 4,217 - - 56,956 261 211 Caisses d'Epargne Participations - Groupe BPCE 117 4 - 19,365 - -

30/9/09

106

Activity Liabilities Guarantees Dividends Other revenues Expensesand commitments collected

SUBSIDIARIES 1,118,875 278,039 14,841 46,169 106,790 24,023

Cassa di Risparmio di Carrara SpA 308,186 28,046 - 16,826 21,826 6,549 Cassa di Risparmio di Savona SpA 174,388 54,251 250 21,063 22,460 6,481 Banca del Monte di Lucca SpA 256,727 21,744 1,080 4,752 8,986 1,685 Banca Cesare Ponti SpA 80,010 24,197 - 1,253 6,101 975 Carige Asset Management Sgr SpA 5,728 8,878 - 2,044 17,246 547 Centro Fiduciario SpA 373 232 - 231 397 464 Argo Finance One Srl 8 12 - - 8 - Argo Mortgage Srl 8 12 - - 8 - Argo Mortgage 2 Srl 8 11 - - 8 - Priamar Finance Srl 8 11 - - 8 - Galeazzo Srl 18 3,259 - - 11 38 Columbus Carige Immobiliare SpA 14,734 1,767 - - 829 2,214 Immobiliare Ettore Vernazza SpA 271 9 - - 36 - Carige Vita Nuova SpA 7,664 103,824 - - 15,941 4,737 Carige Assicurazioni SpA 52,484 24,472 11,811 - 4,967 284 Assi 90 Srl 45 1,134 - - 6 12 Dafne Immobiliare Srl - 514 - - - - IH Roma Srl - 1,303 - - - 1 Creditis Servizi Finanziari SpA 218,207 4,353 1,700 - 7,944 36 Carige Covered Bond Srl 8 10 - - 8 -

ENTITIES SUBJECT TO SIGNIFICANT INFLUENCE - 14,891 50 416 17 136

Autostrada dei Fiori SpA - 11,714 50 416 15 75 Assimilano Srl - 2 - - - - Recina Servizi SpA - 2,610 - - 2 56 Consorzio per il Giurista d'Impresa Srl - 11 - - - - Sport e Sicurezza Srl - 386 - - - 1 WTC SPA in liq. - 58 - - - 4 Nuova Erzelli Srl - 110 - - - -

TOTAL 1,118,875 292,930 14,891 46,585 106,807 24,159

30/9/09

For the definition of other related parties, refer to the paragraph "Transactions with related parties" in the Explanatory Notes to the Consolidated Interim Financial Statements.

RESULTS BY ECONOMIC

BUSINESS SECTOR

The information on business sector activities is provided at consolidated level.

RELATIONS WITH OTHER RELATED PARTIES (figures in thousands of euro)

Assets Liabilities Guarantees

and

commitments

Revenues Expenses Purchase of

goods and

services

Other related parties 40,452 9,742 10,694 1,326 94 24

TOTAL 40,452 9,742 10,694 1,326 94 24

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SHAREHOLDERS' EQUITY

REGULATORY CAPITAL AND SOLVENCY RATIOS (figures in thousands of euro)

Situation as at30/9/09 30/6/09 31/12/08 30/9/08

(1) (2)Regulatory capital Core Tier 1 Capital 1,526,226 1,526,222 1,524,746 1,682,227Tier 1 capital 1,686,126 1,686,122 1,684,646 1,682,227Tier 2 capital 767,259 767,292 752,619 599,745less: deductions -349,165 -349,165 -350,084 -350,436Total capital 2,104,221 2,104,249 2,087,180 1,931,536

Tier 3 capital 97,175 97,175 99,675 99,675Tier 3 calculable portion 18,380 16,150 30,320 34,531

Regulatory capital including Tier 3 2,122,600 2,120,399 2,117,501 1,966,066

Weighted assetsCredit risk 15,645,904 15,273,610 14,848,358 14,239,378Market risk 429,028 376,984 530,817 604,530Operational risk 1,446,462 1,446,462 1,446,462 1,318,399Other prudential requirements - - - -Total weighted assets 17,521,395 17,097,057 16,825,637 16,162,307

Capital requirementsCredit risk 1,251,672 1,221,889 1,187,869 1,139,150Market risk 34,322 30,159 42,465 48,362Operational risk 115,717 115,717 115,717 105,472Other prudential requirements - - - -Capital reduction by 25% 350,428 341,941 336,513 323,246Total requirements 1,051,284 1,025,823 1,009,538 969,738

Surplus capital 1,071,316 1,094,575 1,107,962 996,328

Solvency ratios (%) Tier 1 capital/Credit risk weighted assets 10.78% 11.04% 11.35% 11.81%Regulatory capital/Credit risk weighted assets 13.45% 13.78% 14.06% 13.56%

Core Tier 1/Total Risk-Weighted Assets 8.71% 8.93% 9.06% 10.41%Tier 1 capital/Total weighted assets 9.62% 9.86% 10.01% 10.41%Regulatory capital including Tier 3 capital/Total weighted assets 12.11% 12.40% 12.58% 12.16%


(1) Figures as at 30/06/2009 are the official figures and therefore they differ from the management data shown in the half-year report.

(2) Figures as at 30/09/2008 differ from those reported to the Bank of Italy on 25/10/2008 as they take into account the estimates resultingfrom the reclassification of the portfolio securities carried out after the reporting date and implemented in compliance with the modifications toIAS 39 approved on 13/10/2008 by IASB and published in the Official Gazette of the European Union L 275 on 16/10/2008.

Genoa, 9 November 2009 The Board of Directors

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This document has been translated into the English language solely for the convenience of international readers

DECLARATION OF THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY’S FINANCIAL REPORTS PURSUANT TO PARAGRAPH 2 OF ART. 154-bis OF THE CONSOLIDATED LAW ON FINANCE

I the undersigned Daria Bagnasco, Planning and Accounting Head Office Manager of Banca CARIGE S.p.A., in my capacity as Manager responsible for preparing the Company’s financial reports

declare

that the accounting information contained in the Interim report on operations of the Banca CARIGE Group as at 30 September 2009 corresponds to the document results, books and accounting records.

Genoa, 9 November 2009

The Manager responsible for preparing the Company’s financial reports

Daria Bagnasco

[signed on the original]

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