Draft 2012 Financial statements approved

Draft separate and consolidated financial statements for the year ended 31 December 2012 approved

• The overall consolidated net result of the period negative for € 32.6 million, which falls to € 11.3 million after minority interests.

• The result is influenced by high loan loss provisions following the application of an extremely prudent valuation approach with a view to significantly raising the coverage of doubtful loans.

• The Group's financial solidity is confirmed with a Core Tier 1 ratio of 8.27%, low leverage and a good liquidity position.

• Core revenues have held up well with a good result from financial activities.

• Costs are well down (-3%) as a result of structural action to improve efficiency.

 Net interest and other banking income of € 2,154.9 million, an increase of 2.6% on the end of 2011: net interest income has remained reasonably stable (-1.6%) despite the sharp fall in short-term market interest rates, whereas net commissions have increased significantly (+2%) and the net result from financial activities is positive

 Operating profit of € 1,182.9 million (-32.4% year-on-year) penalised by a significant increase in loan adjustments due to the continuing economic crisis  

 Overall cost of credit for the year amounted to 199 bps compared with 71 bps in 2011

 Significant increase in the coverage of overall doubtful loans to 36.8% and of non-performing loans to 54.9% (33.8% and 52.8% respectively at the end of 2011)

 Operating costs down by 3% on 2011 thanks to effective cost management and containment policies Cost/income ratio of 56.0%, a considerable decrease from 59.1% the previous year

 Continuation of the rationalization and simplification of the Group, in line with the objectives of the Business Plan, including the merger of Meliorbanca with the Parent Company