Group Results 9M2011 3Q11 Highlights Net Interest Income was - - PowerPoint PPT Presentation

Group Results – 9M2011

2

3Q11 Highlights

Net Interest Income was slightly up QoQ driven by:

• a better lending mix with growing SMEs and decreasing Large Corporate volumes, while the total

loan portfolio remained fairly stable (- 0.5% QoQ)

• some repricing actions taken to offset the higher funding cost

Net Commission Income were stable QoQ (-0.5%; +3.4% vs. 1Q11) Trading Income showed a good performance, also helped by a positive adjustments on the mark to market evaluation of some derivatives implemented to hedge assets’ volatility Operating Costs were stable YoY and down 4% QoQ due to the lower impact coming from variable components of Payroll Costs as well as lower charges to ease early retirement agreements with employees Cost of Risk was once again excellent (22bps annualized - 27bps annualized and normalized to exclude the non recurrent effects posted in the 1Q11). New Impaired Loans inflows lower than the industry average, thank to the conservative strategy implemented during 2008 and 2009 Direct deposits were up 3,6% QoQ (+€528 million) thank to either some recovery in corporate deposits and the continuation of the upward trend in retail deposits. AUM volumes suffered because of the market effect and were down 7.2% QoQ Core Tier 1 was 8.9%

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Income Statements

Sound QoQ performance on profitability indicators, due to a combined effect of stable incomes and reduced operating costs, also paired with lower adjustments to loans The same trends are also confirmed YoY, with the Operating Profit up above 21% and Net Adjustments to Loans down 19%. These remarkable results are unfortunately offset (at profit for the period level) by the settlement of the fiscal claim with the Agenzia delle Entrate that occurred in 2Q11, with reference to the investigation on financial deals put in place in 2004 and 2005

86.7

• 62.9

149.6

• 1.7
• 1.4
• 38.7

191.4

• 21.5

212.9

• 484.3

697.2 9M10 85.5

• 96.8

182.3

• 9.7
• 8.9
• 31.0

231.9

• 22.6

254.5

• 484.8

739.3 9M11

• 1.4

53.9

21.9

n.a. n.a.

• 19.9

21.2

5.1

19.5

0.1

6.0 % YoY 36.6

• 31.7
• 8.1

n.a. n.a.

• 6.4

10.4

8.1

10.2

• 3.9

1.0 % QoQ

31.7 23.2 Profit for the Period

• 29.9
• 43.8

Income Taxes/ Minority Interest

61.6 67.0 Profit before Tax

• 3.5
• 5.1

Extraordinary Income/ Charges

• 11.4

4.7 Provisions for Risks and Charges

• 11.7
• 12.5

Net Adjustments to Loans

88.2 79.8 Operating Profit

• 8.0
• 7.4

Depreciation and Amortization

96.2 87.3 Gross Operating Profit

• 156.7
• 163.1

Operating Costs

252.9 250.4 Operating Income

3Q11 2Q11 Euro, million

4

111.6 105.9 112.1 118.1 118.5

98 100 102 104 106 108 110 112 114 116 118 120

3Q10 4Q10 1Q11 2Q11 3Q11

Operating Income

Further improvement of the Net Interest Income for the third quarter in a row (+0.3% QoQ; +12.0%

• vs. 4Q10)

The growth of the aggregate is driven by: Large Corporate lending reduction paired by volumes increase on “core business” segments (such as SMEs customers) the repricing actions, also correlated with the above illustrated shift, taken in the quarter Non Interest Income remained stable QoQ (2Q11 performance had been remarkable with a +6,8% vs. 1Q11), despite the low seasonality of the 3Q Commission Income is in line with 2Q11 and 3.4% up on 1Q11: the contraction on AUM Fees, that is mostly due to the market effect, was partially offset by growing Banking Fees Net Interest Income Non Interest Income

€Mil. €Mil. 53.5 54.5 52.1 54.6 51.6 5 37.8 43.7 37.9 39.0 41.5 12.3 6.5 9.1 12.2 14.2 13.7 14.6 17.8 42.3 14.1 12.7 20.2 20 40 60 80 100 120 140 160 3Q10 4Q10 1Q11 2Q11 3Q11 Euro, Million Asset Management Fees Performance Fees Banking Fees Insurance Fees Other Trading 124.6 159.4 123.9 132.3 134.4

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7,548 6,500 6,944 7,781 8,258 7,972 7,508 1,947 1,936 1,911 1,935 1,940 1,944 1,976 5,276 5,503 5,687 5,845 5,932 6,095 6,247 2,847 2,782 3,239 3,323 3,425 3,532 3,708

• 3,000

6,000 9,000 12,000 15,000 18,000 2008 9M09 9M10 FY10 1Q11 1H11 9M11 ST Loans Leasing Residential Mortgages Other LT Loans

13.8% 10.1% 9.9% 8.1% 15.8% 19.9% 20.6% 20.8% 21.9% 21.8% 21.1% 21.4% 48.5% 48.2% 48.4% 49.6%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 4Q10 1Q11 2Q11 3Q11 Large Corporate and Financials SME's Small Business Residential Mortgage and Retail cust.

Loans breakdown by segments

(Credem SpA management accounting)

Loans Strong actions on loan portfolio, taken ahead of the recent financial markets turmoil to both protect profitability from the pressure on funding cost and maintaining volumes growth, eventually resulted in:

• a Large Corporate & Financial

Institutions remarkable lending volumes reduction (-€ 1 mld) in the 9M11

• a substantial replacement of above

mentioned lost volumes with growing SME’s lending

Loans

19,555 +9.3% 17,782

€ Mil.

18,884 19,543

+1.1%

• 0.5%

+5.0%

• 5.7%

∆ vs. 4Q10

19,440 16,721 17,681

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2.58 2.59 2.53 2.58 2.52 2.54 2.59 3.20 3.12 3.12 3.20 3.24 3.42 3.61 0.62 0.52 0.59 0.62 0.73 0.88 1.02 0.0 1.0 2.0 3.0 4.0 5.0 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 % spread average loan rate average deposit rate

Corporate customers credit standing

(Credem SpA management accounting)

Spreads and Loans Quality

Customers’ Spread

(Credem SpA management accounting)

* *

67.5% 73.3% 74.2% 75.4% 76.6% 32.4% 26.7% 25.6% 24.6% 23.4% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% FY09 FY10 1Q11 1H11 9M11 % of loans to corporate customers in highest 4 ratings classes % of loans to corporate customers in lowest 4 ratings classes

0.86% 0.89% 0.98% 0.91% 0.93% 0.88% 0.8% 0.9% 1.0% dicembre 2008 giugno 2009 dicembre 2009 giugno 2010 dicembre 2010 giugno 2011

Loans portfolio new mix enhanced a 5 bps customers’ spread increase in 3Q11 (at the highest level since the beginning of 2010), while the evolution of the aggregate is in coherence with the guidelines outlined in the business plan: To pursue a volume growth higher than the industry, gaining market shares (at the end

• f 2010 already, the growth more than offset

the effects of the volume reduction implemented in 2009 to “clean” the portfolio) To protect and improve the asset quality Loans market share evolution

Source: internal estimates on Bank of Italy data

7 523 820 1,193 825 5

• 500

1,000 1,500 2,000 9M11 Bonds Issues 4Q11 Maturities 2012 Maturities Retail Institutional

10,736 10,989 11,161 2,543 1,984 2,114

• 2,000

4,000 6,000 8,000 10,000 12,000 14,000 1Q11 2Q11 3Q11

Deposits and Bonds

Direct Deposits Retail e Corporate customers

(Credem SpA management accounting)

Bonds issued in 9M11 and 4Q11/2012 maturities

15,129 3,812 1,608 2,204 12,925 58 805 12,062 1Q11 4,620 1,715 2,905 4,383 1,698 2,685 3,520 1,620 1,900 3,848 2,340 1,508 4,853 3,490 1,363 5,225 3,900 1,325 Bonds

• Institutional
• Retail

15,144 14,616 14,630 15,746 17,293 13,365 Total Deposits & Retail Bonds 11,931 63 737 11,131 1H11 12,239 95 483 11,661 9M11 12,730 62 1,064 11,604 2010 15,935 2,216 3,275 10,444 2008 14,238 158 2,637 11,443 2009 12,040 735 1,785 9,520 2007 Depositis & Repos Repos Time Deposits Sight Deposits Euro, million

+253

• 559

€ Mil. € Mil. 1,645 1,716 +172 +130

Deposits & Bonds were up (+€528 million), outscoring the 1Q11 performance, even though Corporate Deposits were lower Bonds continued to grow throughout retail issues

8

• 23.5%
• 25.5%
• 4.1%
• 7.2%
• 30.0%
• 25.0%
• 20.0%
• 15.0%
• 10.0%
• 5.0%

0.0% Eurostoxx 50 FTSE-ALL SHARE ML Italian Government AuM

AUM

14,305 514 3,927 5,154 4,710 2,146 2007 16,844 3,319 4,975 3,734 4,816 2,456 1Q11 15,464 3,385 4,515 3,216 4,348 2,466 3Q11 2,433 2,448 2,312 1,794 Insurance Reserves 16,671 3,492 4,921 3,618 4,640 2Q11 16,889 3,015 4,898 3,998 4,978 2010 11,476 1,077 3,214 3,666 3,519 2008 15,051 1,718 5,122 3,910 4,301 2009 AUM Other & Third Parties’ Products SICAVs Mutual Funds Portfolio Management Euro, million

3Q11 Markets and Credem AuM performances AUM stocks went down 7.2% QoQ, mainly because of the market effect Observing the main market indexes in the quarter, it is quite evident that the reduction in AUM stocks is in line (if not lower) with current trends

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108.7 101 54.4 55.7

50 100 150 200

2Q11 3Q11 Other Admin. Expenses Personnel Costs

319 318.1 165.3 166.7

100 200 300 400 500

9M10 9M11 Other Admin. Expenses Personnel Costs

Operating Costs

Operating Costs: quarterly comparison Operating Costs: yearly comparison

484.3 163.1 156.7 €Mil.

The YoY comparison shows costs fairly stable, coherently with the business plan guidelines Payroll Costs were down QoQ due to the lower incidence of variable components as well as lower provision for early retirement agreements with employees Other Administrative Expenses are slightly up QoQ

484.8 €Mil.

10 100 64 49 100 105 90 20 40 60 80 100 120 2009 2010 9M2011 (annualized) Credem Industry

424,6 261,9 96,9 459,1 260,5 102,5 480,3 261,3 85,8 496,2 267,2 77,7 513,1 286 81,6 100 200 300 400 500 600 Gross NPLs Gross Watchlist/Restructured Loans Gross Past Due € Mil.

9M10 FY10 1Q11 1H11 9M11

Credit Quality (1/2)

% on Loans (Credem) % on Loans (Industry)

0.5 2.3 1.4

Gross Impaired Loans breakdown NPLs Inflow* evolution (100 as at 2009)

3.9 2.4 1.4 0.5 3.4 0.8 4.1 3.5 0.6 2.4 4.8 1.3 0.4 2.5 3.5 1.3 0.7 0.4 4.9 2,6 3.5 1.4 0.7 0.4

New impaired loans generation remained under control: for the second quarter in a row, new NPLs inflows* were lower than €20 million The comparison with the industry, assuming 2009 as base=100, shows the strategy adopted by Credem in 2009 oriented to contain the risk associated to the portfolio, that is resulting in a NPL generation currently almost 50% lower than the banking sector average

* Calculated as the difference between the levels of stocks at the end of consecutive quarters; Source: ABI

11 2.43% 2.83% 1.04% 1.19%

0% 1% 2% 3%

2010 9M11 Industry Credem 4.1% 5.1% 2.4% 2.6%

0% 1% 2% 3% 4% 5% 6%

2010 9M11 Industry Credem

71 62 33 14 20 22 34 31 27 28 20 40 60 80 1H09 2009 1H10 2010 1Q11 1H11 9M11

Credit Quality (2/2)

NPLs Ratio: comparison with the Industry

n

• r

m a l i z e d

Cost of Risk excluding the adjustment on General Provision

• n Performing Loans that positively impacted the figure in

1Q11

Net NPLs ratio Gross NPLs ratio

Data as at Aug. 2011

Annualized Cost of Risk (bps) Annualized Cost of Risk remained excellent at 22 bps Net of non recurrent effects that benefitted 1Q11, Cost of Risk would have been 27 bps (lower than 28 bps at 1H11) and in line with past performances posted before 2008 crisis

Data as at Aug. 2011

The high credit quality, versus the industry, is confirmed also in 3Q11: net NPLs ratio at industry level is more than two times higher than Credem one, while in terms of gross NPLs ratio, the percentage difference between Credem and the industry increased furtherly in 3Q11 NPL coverage was 54.8% in the quarter vs. 54.4% in 2Q11

Source: ABI

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804 1,035 6,768 19,543 778 962 19,440 6,715

• 5,000

10,000 15,000 20,000

• Fin. Assets available for

trading

• Fin. Assets at fair value
• Fin. Assets available for

sale Loans to customers

1H11 9M11

1.698 7.041 289 11.931 2.685 1.859 12.239 1.719 2.905 1.715 235 6.354

• 5.000

10.000 15.000 20.000 Bonds - Institutionals Interbank BEI/ French CD/ Euro CP Deposits & Repos Bonds - Retail Equity

1H11 9M11

Assets and Liabilities (1/2)

Wholesale

Assets (€, million) Liabilities (€, million)

Retail Equity

On the Liabilities side the two aggregates growing were Deposits and Retail Bonds The reduction showed by the Equity aggregate is essentially explained by the decrease of the valuation reserve, capturing the mark to market valuation of the Italian govies portfolio, that was impacted by the recent increasingly negative perception

• n Italian sovereign risk

Main aggregates on the assets side are stable/ slightly down

• QoQ. On FY10 figures, the only
• ne showing a sizeable growth is

Loans to Customers Financial Assets Available for Sale is mostly composed by Italian treasury bonds

13

Interbank balance by country

(Credem SpA management accounting)

Assets and Liabilities (2/2)

Within the Financial Assets Available for Sale aggregate, the majority of Italian BTPs in portfolio have a duration lower than 1 year (less than 9 months). The first tranche will mature at April 2012 Italian Government Bonds in portfolio

3,364,500,000 Total 4/15/2012 672,000,000 BTP 1,460,500,000 1,232,000,000 Amount 10/15/2012 7/1/2012 Maturity BTP BTP €

The Italian Government portfolio exposure is financed on the interbank network, primarily with Italian

• counterparts. This circumstance limit

considerably the risk of reduction of such credit lines

85% 15% 0% 20% 40% 60% 80% 100% Interbank Italian Counterparts Foreign Counterparts

14 1,418.7 1,430.0 1,456.4 1,438.1 1,454.8 1,468.8 1,482.4 1,941.7 1,891.0 1,914.7 1,880.8 1,890.9 1,939.7 1,950.2

594.9 542.0 591.2 546.6 577.8 598.1 610.0

• 500.0

1,000.0 1,500.0 2,000.0 2,500.0 1Q10 1H10 9M10 2010 1Q11 1H11 9M11 EURm Tier I Capital Tier Total Capital Excess Capital

Capital Ratios

8.4% 11.5% 8.5% 11.2% 8.8% 11.6% 8.6% 11.3% 8.9% 11.5%

Ratios remain among the best ones in the industry, substantially confirming 1Q11 trend, also considering the negligible perspective impact coming from Basel III requirements and the non SIFI nature of the group Tier 1 is all core with no hybrid capital instruments included

11.6% 8.8%

Quarterly evolution

11.6% 8.9%

15

347 501 590 563 561 56 100 200 300 400 500 600

1990 1999 2007 2008 2010 1Q11

Distribution Network

Number of branches and branches market share per region

5,597 5,544 5,740 5,993 Credem Group Employees 821 885 1,006 1,002 Total FAs 317 337 359 362 B.ca Eurom. FAs 504 548 647 640 Credem FAs 18 18 17 22 B.ca Euromobiliare

• Fin. Stores

34 35 33 36 Credem Points 41 42 42 43 Corporate Centres 561 563 575 590 Total Branches 19 19 23 27 B.ca Euromobiliare Branches 542 544 552 563 Credem Branches 9M11 2010 2009 2008

Branches evolution

2Q11

16

Free Float More than 2,900 other shareholders Pact among 230 shareholders

76.9% 23.1% 74.2% 25.8%

Cofimar S.r.l. 20.0% Max Mara Fashion Group S.r.l. 8.1% Max Mara Finance S.r.l. 6.4% Others 39.7%

Shareholders’ base

Credemholding

Source: Internal data

17

A Complete Group

100% 100% 100% 100% 99.0% 100% 50%* 100% 100% 100% 100% 100%

Commercial banking Wealth Management Other

100%

18

Disclaimer and Contacts

Investor Relations Team Investor Relations Team

Daniele Morlini – Head of IR dmorlini@credem.it +39 0522582785 Paolo Pratissoli ppratissoli@credem.it +39 0522583029

Pursuant to Article 154-bis, section 2 of the “Consolidated Law on Financial Intermediation” dated Feb 24, 1998, the Financial Manager Paolo Tommasini, declares that the accounting information contained in this document correspond to documentary records, ledgers and accounting entries.