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

2 0 0 5 I N T E R I M R E S U L T S

T R A N S I T I O N TO I A S / I F R S

MILANO, Palazzo Mezzanotte - September 15th, 2005

2

1H 2005 - Results at a Glance

30.06.200530.06.2004 pro-forma

Var.

GROUP NET INCOME 61.6 49.8 23.7%

Total income 598.7 571.3 4.8%

Operating profit 205.7 186.2 10.5%

Pre-tax income 131.1 109.7 19.7%

ROE (adj.) 14.5% 13.7% 80 b.p.

COST / INCOME 63.5% 65.5% -200 b.p.

Tier 1 ratio 5.2% 5.3% -10 b.p.

3

1H 2005 Pre-Tax Income - Breakdown

Pre-tax income, goodwill excluded

*B. CR Firenze, CR Pistoia, CR Spezia, CR Civitavecchia, CR Orvieto, CR Mirandola

RetailBkg.

Consumercred.

Productco.

Serviceco.

Taxcollect.

P-T income

58%

36%

8%2%

-4%

% weight€ 142.4

mn.26% 25%

2%

-17%

16%

-300%

YoY change

RetailBkg.

Consumercred.

Productco.

Serviceco.

Taxcollect.

P-T income

Pre-tax income shows growth in core businesses

Retail banking*: positive contribution mainly thanks to NII and credit quality

Consumer credit: in line with budget but weaker 2Q (-9.6% QoQ)

Service companies: decrease in Infogroup’s income is due to its new repositioning within the Group

Tax collection services: delays in government refunds

4

Net Interest Income

Positive contribution from both retail banking and consumer credit

4.72%4.66%4.70%

4.56% 4.55% 4.53%

2.08%2.07%2.12% 2.16% 2.14%2.13%

181.0179.3

167.1170.6

167.6166.5

1Q '04 2Q '04 3Q '04 4Q '04 1Q '05 2Q '05

360.3

334.1

+7.8%

3 months Euribor Customer spread

Net interest income

mn

5.8%5.4%

-2.6%-3.9%

-4.7%-4.7%

3M '04 6M '04 9M '04 FY '04 3M '05 6M '05

12.0%12.7%13.0%

16.8%19.7%19.4%

3M '04 6M '04 9M '04 FY '04 3M '05 6M '05

Retail banking*

Consumer credit

YoY change

YoY change

* B. CR Firenze, CR Pistoia, CR Spezia, CR Civitavecchia, CR Orvieto, CR Mirandola

5

NII – Customer loans

Increase in average outstandings* leads to higher contribution margin despite mark-up reduction

retail banks: change in portfolio mix (higher mortgage loans weight lower mark-up)

consumer credit: less household spending and stronger competitionYoY

change

Total loans* 14,462 15,709 8.6% (0.17)

Retail banks 11,478 12,392 8.0% 79% (0.14)

Individuals 6,577 7,198 9.4% 46% (0.19)

Corporates 4,901 5,194 6.0% 33% (0.10)

Consumer credit 2,984 3,317 11.2% 21% (0.42)

1H 2004 1H 2005 1H 2005 % Weight

Mark-upchange

* Progressive average outstanding loans

6

NII – Customer deposits

Higher contribution margin due to both volumes* and mark-down

current accounts re-pricing

individuals still lead but corporate mark-down is improving

YoYchange

Total deposits* 14,680 15, 568 6.1% 12 bp

Retail banks 13,939 14,646 5.1% 95% 9 bp

Individuals 11,150 11,597 4.0% 76% 7 bp

Corporates 2,789 3,048 9.3% 19% 11 bp

Consumer credit 740 922 24.6% 5% 87 bp

1H 2004 1H 2005 1H 2005 % Weight

Mark-downchange

* Progressive average outstanding loans

7

Mortgage Loans

Sustainable volume growth, in line with budget

stable spread despite stronger competition improving quality, far better then the system

Continued synergies with Findomestic: all branches operative

0.96%

0.70%

0.36%0.52%

3M '05 6M '05

BCRFItaly

32

10

22

FY '04 3M '05 6M '05

Doubtful loans*

Distributed by Findomestic

5% of

Group flows

mn

10.510.4

10.2

5.85.6

5.3

FY '04 3M '05 6M '05

Tota

l lo

an

s -

bn

+6.3%(13% yearly)

+15.8%

bn

* B. CR Firenze, CR Pistoia, CR Civitavecchia, CR Orvieto. Source: Assofin

8

Non-Interest Income

Stable fees on adjusted basis: positive impact from re-pricing of current

accounts

AUM campaigns: short term negative impact; average customer portfolio still comprises monetary products

100 102 98108

69 70 71 7567 69

1Q '04 PF 2Q '04 PF 3Q '04 4Q '04 1Q '05 2Q '05

206

Fees Fees + other income

202

+2% YoY PF Flat on adj. basis

Fees + Other income

9

Operative costs

Adjusted costs better than business plan. The stated values affected by the merger of Datacentro and the increase of tax stamps:

YoY comparisons throughout 2005 affected by the increase of government tax stamps

Datacentro costs moved from other op. expenses to other administrative costs

1H ‘05 1H ‘04 Var. 1H ‘04 PF Var. Var. stamps

& duty excl.

Admin. costs (365.5) (347.9) 5.1% (356.3) 2.6% 1.5%

Personnel (215.7) (210.3) 2.6% (212.1) 1.7%

Other costs (149.8) (137.5) 8.9% (144.2) 3.9% 0.9%

Depreciation (27.5) (28.8) -4.5% (28.8) -4.5%

Total costs (393.0) (376.6) 4.4% (385.1) 2.0% 1.0%

10

Customer Loans

Total customer loans (+4.2%) in line with budget

Stable quality and stable market share

8.6%8.7%8.4%

5.5%5.3%5.7%

2003 2004 1Q '05 1H '05

1.07%1.09%1.10%1.27%

NPLs/

Net loans

Corporate unit mkt. share* NPLs market share*

10.7 11.212.3 12.7

3.53.32.82.4

2002 2003 2004 1H '05

Consumer CreditCorporate & Retail

Eu

ro b

n

+3.2% banks + 6.0% c. credit

Loans

Market share

* Parent company on business territory

11

Capital ratios

Stable Tier 1 ratio as at 30.06.2005

Findomestic Banca recorded with the equity method will strengthen capital ratios

31.12.200430.06.200

5

Shareholders' equity 1,151.4

Tier 1 capital 993.6 Tier 2 capital 901.4 Regulatory capital 1,805.3

Risk weighted assets 18,597.5

Tier 1 ratio 5.34%Solvency ratio 9.71%

1,152.5

993.8 893.0

1,796.7

19,116.7

5.20%9.56%

I A S / I F R S

F I R S T T I M E A D O P T I O N

13

IAS/IFRS as per EU Commission ratifications released up until January 2005. IAS 32 and 39 are included.*

Value adjustments recognised in the shareholders’ equity (IFRS 1)

First Time Adoption - Criteria

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

Applied the integral version of IAS 39 ratified by EU Commission

Fair value model has been adopted to revaluate investment and instrumental properties

Amortized costs as at 31.12.2004 is equal to face value because transactional costs (up-front) have been reckoned not significant.

Findomestic Banca (JV with BNP Paribas Group) has been accounted for the equity method (IAS 31)

In the collective assessment of performing loans, Basel II recommendations have been optimized

Perimeter of consolidation comprises companies active in business sectors other than that of the parent company (i.e. Centrovita - bancassurance)

Put options have been accounted following IAS 32

14

> Impatto della FTA sul Patrimonio netto e sul Patrimonio di Impatto della FTA sul Patrimonio netto e sul Patrimonio di vigilanzavigilanza

15

Nota

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

15

> Impatto della FTA sulla qualità del creditoImpatto della FTA sulla qualità del credito

16

16

FTA - Impact at a glance

No material impact on shareholders’ equity

1.1

32.560.8

47.6

26.024.2 1.7

150.3

1.1

2.1

27.831.1 30.9

2004 NET EQ

UITY

Total lo

ans

Fin. A

ssets H

FT

Fin. A

ssets A

FS

Sec. &

hedging d

erivat.

Fixed Asse

ts

Intangib

les

Shareholdin

gs

Allowanc

es

Fin. Lb

lts-HFT

Put option

s

Other im

pacts

Fiscal

effect

s

Minorities

IAS 2004

NET EQUITY

1,151

1,193

+ € 42

million

Euro million

17

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

(1) La valutazione ha tenuto conto degli accantonamenti a Fondo rischi su crediti (voce 90 del passivo) esistenti al 31 dicembre 2004, pari a 24,7 milioni di euro, che sono stati imputati in diretta diminuzione di tali crediti. 18

18* The evaluation takes into account provisions for risks and charges as at 31.12.2004

FTA - Impact Breakdown

A P P E N D I X

20

FTA – Impact on balance sheet

31.12.2004

Fin. Assets held for trading (HFT) 712.8 24.2 17.6 754.6

Fin. Assets valued at fair value (FV Option) 0.0 0.8 1,781.1 1,781.9

Fin. Assets available for sale (AFS) 1,935.4 60.8 712.7 2,708.9

Fin. Assets held to maturity (HTM) 15.6 0.0 (15.6) 0.0

Amounts owing by banks 1,209.4 0.0 339.5 1,548.9

- doubtful loans 0.0 0.0 0.0 0.0

- in bonis loans 1,209.4 0.0 339.5 1,548.9

Customer loans 15,581.0 (47.6) (3,290.9) 12,242.5

- doubtful loans 372.7 (41.3) 0.0 331.4

- in bonis loans 15,208.3 (6.3) (3,290.9) 11,911.1

Hedging derivatives 46.3 95.4 0.0 141.7

Tangible assets 311.9 150.3 6.7 468.9

- instrumental assets 268.9 130.7 25.2 424.8

- investment assets 43.0 19.6 (18.5) 44.1

Intangibles assets 304.7 (0.7) (3.8) 301.6

- goodwill 268.2 (1.1) 0.0 269.3

- other intangible assets 36.5 (0.4) (3.8) 32.3

Fiscal assets 225.7 51.3 22.5 299.5

Partecipating interests in Group companies 45.8 11.3 252.7 309.8

Partecipating interests in affiliated companies 81.9 (9.2) 0.0 72.7

Other assets 894.1 (5.9) (72.1) 816.1

TOTAL ASSETS 21,364.6 332.1 (249.6) 21,447.1

IFRS adj. New

perimeter

adj.

31.12.2004

IFRS

21

FTA – Impact on balance sheet

31.12.2004 IFRS adj. New

perimeter

adj.

31.12.2004

IFRS

Trading financial liabilities 1,286.9 0.0 292.1 1,579.0

Fin. Liabilities recognized at amortized cost 17,160.5 97.8 (1,164.3) 16,094.0

Trading derivatives 0.0 31.1 0.0 31.1

Hedging derivatives 10.6 (0.7) (1.8) 8.1

Provisions for staff severance pay 172.7 23.1 (8.0) 187.8

Provisions for pensions 170.4 7.9 0.0 178.3

Tax provisions and other fiscal liabilities 126.0 83.7 (39.2) 170.5

Other provisions for risks and charges 77.7 (3.2) (3.4) 71.1

Put options owned by minority shareholders' of consolidated companies 0.0 174.7 0.0 174.7

Other liabilities 999.8 20.7 651.8 1,672.3

LIABILITIES 20,004.6 435.1 (272.8) 20,166.9

Share capital and share premium 704.0

Minority interests 208.6 (144.9) 23.1 86.8

0.1 0.0 704.4

Revaluation reserves 0.0 39.5 0.0 39.5

FTA reserve 0.0 (23.8) 0.0 (23.8)

Other reserves 345.1 (11.1) 0.2 334.2

Net profit for the period 102.3 37.4 (0.6) 139.1

SHAREHOLDERS' EQUITY + Minority interests 1,151.4 41.9 0.1 1,193.4

TOTAL LIABILITIES 21,364.6 332.1 (249.6) 21,447.1

22

IFRS 1 – Sharehold. equity reconciliation statements 1)

Consob Regulation no. 11971 - Art. 81 bis, paragraph 1b

23

IFRS 1 – Sharehold. equity reconciliation statements 2)

Consob regulations no. 11971 - Art. 81 bis, paragraph 1b

24

IAS/IFRS - Reconciliation Statements 1)

Consob Regulation no. 11971 - Art. 81 bis, paragraph 1a

25

IAS/IFRS - Reconciliation Statements 2)

Consob Regulation no. 11971 - Art. 81 bis, paragraph 1a

26

> Prospetto di riconciliazione dei saldi (art. 81 bis, 1°comma, Prospetto di riconciliazione dei saldi (art. 81 bis, 1°comma, lettera a), del regolamento CONSOB): Conto economicolettera a), del regolamento CONSOB): Conto economico

27

27

Customer loans – Evaluation Criteria

In bonis loans: expected losses (EL) have been estimated on the basis of PD and LDG of loans residual duration as per the following criteria:

40 risk categories: 5 classes x 8 segments PD: risk category adjusted – LGD: 18%

Problem loans: time-discounted recovery value has been determined as follows

AMOUNT LOAN RATEAVG. MATURITY

Mortgage loans Initial rate 5.0 years

0 - 2,500 1.1 year2,501 - 15,000 3.5 years15,001 - 50,000 5.8 years50,000 - 250,000 7.2 years

> 250,000 7.1 years

Weighted

average 6 years

with repayment scheme

as per

expiry date

without repayment

scheme

10 months

Initial rate

NON PERFORMING LOANS

DOUBTFUL and RESTRUCTURED

LOANS

Unsecured loans Initial rate

28

Put Options

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

29

Financial assets - HFS

MAIN ADJUSTMENTS TO HFS FINANCIAL ASSETS

Revaluation Depreciation

Fondiaria-Sai 14.9

CR Forlì (28.6)

Firenze Parcheggi 2.0

Engineering (1.7)

Brain Technology 1.1

Sì Holding 2.3

Sanpaolo IMI 34.2

Others 1.0 (0.1)

TOTAL 55.5 -30.4

Net revaluation 25.1

2 0 0 5 I N T E R I M R E S U L T S

T R A N S I T I O N TO I A S / I F R S

MILANO, Palazzo Mezzanotte - September 15th, 2005