22 May 2012 Carige Group

GRUPPO BANCA CARIGE
Ennio La Monica
General Manager
Presentation to the Financial Community
Milan, 22 May 2012
Page |
1
Contents
• Carige Group today
• New market scenario
• Carige Group Reorganisation Project
• Target organisational structure
• Economic impact of the Reorganisation
• Timeline
• Contacts
Page |
2
Complex banking, insurance and social security
organisation...
~50,000 minor
shareholders
M k t
Market
9.99%
9.99
%
43.02%
43.02
%
46.99%
46.99
%
Banca Carige SpA
Federal
model
Listed companies
Mkt Cap: €1.2 Bln
Cassa di Risparmio di Genova e Imperia
Banking activities1
Finance
Fi
activities
Insurance
activities 1
T
Trustee
t
1
 Banca Carige
 Carige Vita Nuova (vita)
 Carige AM SGR
 CR Savona
 Carige Ass.ni (danni)
 Creditis (Credito al
 CR Carrara
activities
1
 Centro Fiduciario
consumo)
 BM Lucca
 B. Cesare Ponti
Own Product Factories
5,974
Employees
~ 2 Mln customers
677 branches &
432 insurance outlets
Shareholders’ equity
~€2.9 Bln
1 Major companies
Source: company data to May 2012
Page |
3
...with 677 branches in 5 banks
Branches distribution by bank (as at 31/12/2011)
84%
50
7%
5%
3%
1%
100%
560
of which #207 in
Liguria1 and
#353 outside
Liguria
37
23
7
677
1 Liguria includes Nice branch
SOURCE: Company data
Page |
4
Carige Group showed strong resilience during the crisis,
particularly if compared with peers...
Comparison of pre and post crisis cumulated profits (€ Mln)
2005-2007
2008-2011
+64%
-53%
775
661
474
309
Peers average1
Carige
1 BPER, BPM, BPVi, Credem, Creval
SOURCE: Banca Carige, annual reports
Page |
5
… and confirming the federal model’s worth
Federal model: marginal administrative and organisational costs against significant
commercial benefits and territorial presence
CAGR
Pre-deal/2011
Intermediation
mediation activities
acti ities
Aquired Inte
(€ Bln)
∆ p.p.
Pre-deal/2011
Banca del Monte
di Lucca
(#23 branches)
Cassa di
Risparmio
di Savona
(#50 branches)
Cassa di
Risparmio
di Carrara
(#37 branches)
Pre-deal
Dic
2011
10.6%
1999
Pre-deal
Dic
2011
C/I
(%)
Pre-deal
2.5
0.7
2.3
2.8
86.5
62.5
0.6
-13.2 p.p.
7.3%
13.3
4.7
71.4
5.7
2003
2.1
3.2
4.1
58.2
-6.3 p.p.
2.4%
5.3%
Dic
2011
-24.0
24 0 p.p.
pp
12.7%
4.4%
1999
Net P
Profit
ofit
(€ Mln)
4.9
73.6
67.3
-15.3 p.p.
Banca
Cesare Ponti
(#7 branches)
Dicembre
2004
11.7%
1.1
…
91.6
8.8
2.4
76.3
-0.6
The data "Pre-deal" refers to the last balance sheet prior to the acquisition. For Banca Cesare Ponti data "pre deal" refers to the 2004 balance
Source: company data
Page |
6
Contents
• Carige Group today
• New market scenario
• Carige Group Reorganisation Project
• Target organisational structure
• Economic impact of the Reorganisation
• Timeline
• Contacts
Page |
7
The crisis impacted significantly the banking sector…
Period
Effect
Impact on Banking system
Focus
2007-2008
Sub-prime mortgages and
toxic assets:
low asset quality
Limited
Asset
quality
2009-2010
Economic recession: high
credit risk cost
Significant
2011
Liquidity crisis on
institutional markets:
sourcing and disposal
Limited, due to
Retail funding
T
Tomorrow
Retail fundingg cost increase:
structural margin reduction
Si ifi
Significant
Liabilities
Li
biliti
quality
Impacts on Italian banks P&L are strictly connected to the traditional banking model
Page |
8
… with several factors putting under pressure the
traditional retail banking model
Macroeconomic
context
t t
- Overall uncertainty and higher volatility than in the past
- Global economic re-balancing, with significant growth of emerging countries that will
cause banking resources (capital) transfer across markets
- Worsening conditions of funding market, which have already transformed liquidity
in a scarce and costly resource
Regulation
- Change in the European Banking system regulatory framework, with the
introduction of Basel III, resulting in:
. Higher capital requirements
. Stricter liquidity management rules
•c
- Tightening consumer protection
- Change in customers’ key needs and behaviours driven by demographic and
economic trends:
. Older customers, on average, but with different needs and expectations compared to
current “elderly people”
Customers
. Greater confidence and usage
g of remote channels and,, consequently,
q
y, lower usage
g of
physical branches
. Reduction in saving propensity and increase in borrowing and consumprion
propensity
. Increasing churn rates, shopping around and mobility to other banks
Page |
9
Profitability recovery must be achieved by reducing
service cost and increasing commercial productivity…
European Banking system profitability evolution1 – ROE, %
16.7
7 9-9
7.9
9.2
2
1.7-2.0
7.4-8.6
1.2-1.4
Despite the expected
market growth and the
decreasing risk costs, a
performance
improvement of 25-30%
i needed
is
d d to
t achieve
hi
precrisis profitability levels,
via:
 Reduction of
service cost
 Increase of
commercial
productivity
2007
2010
Regulatory
impact on
capital
Inertial
growth impact
2015 E
1 Europe-27 and Switzerland
SOURCE: External provider analyses based on Thomson-Reuters data
Page |
10
… and leveraging the increasing usage of remote channels,
driven by technology innovation and lower costs
Online banking
g usage
g 1
Percent
80
Norway
Netherlands
I
70
Finland
Denmark
60
3-5 years
50
Switzerland
S d
Sweden
“Selfservice”
Canada
US
Belgium Japan
7-10 years
40
II
France
Austria
30
10-15 years
Spain
III
Luxembourg
UK
Germany
Australia
Ireland
Slovenia
“Multichannel”
South Korea
Poland
Czech
Brazil Portugal
“Brick & IV
Middle
“Online
Hungary Republic
Italy
Argentina
mortar”
adaptors”
East
Russia
ColombiaMexico
Serbia
Greece
Romania
China
Macedonia
India
Turkey
Bulgaria
20
10
0
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
Internet usage1
Percent
1 Percentage of individuals using the internet/online banking in the last 3 months
Page |
11
Contents
• Carige Group today
• New market scenario
• Carige Group Reorganisation Project
• Target organisational structure
• Economic impact of the Reorganisation
• Timeline
• Contacts
Page |
12
The Strategic Plan identifies four main strategic
guidelines
Carige Group Strategic Plan 2011 - 2014 has identified strategic guidelines and actions to enable Carige
Group to overcome the limits of profitability related to the maturity condition of the Banking sector
STRATEGIC GUIDELINES
1
STRATEGIC GOALS

Development of revenues and commercial
offering: “discover” business areas (territories,
products, customers) that still have untapped
value potential
•c
2
Rationalisation of operating costs and
processes: constant striving for technical and
operating
ti
efficiency
ffi i
3
Optimisation of liquidity, capital and cost of
risk: efficient allocation of short resources
4
Focus on innovation and skills: not only on
processes and products, but also on human
resources' behaviours and social skills
Higher commercial productivity :
−
Improvement of cross selling
−
Product portfolios evolving towards higher-margin
higher margin, higher
higher-commission
commission
products (upselling)
−
Lower business performance variance

Broader customer base

Development of inter-channelling

Service model fine-tuning

Review of the pricing policies

New sales processes to free up resources for commercial activities

Personnel's proactive commercial attitude

Efficient cost base and process management

Focus on retail and institutional deposits

Closing of the intermediation circuit

Active capital management in a Basel 3 perspective

Qualitative selection and management of credit

Widespread use of technology

Recognition of merit

Optimal use of skills and abilities (knowledge and know-how)
Page |
13
By spinning-off Extra-Liguria branch network from Banca
Carige and establishing Banca Carige Italia, the bank will
reach the Plan’s targets
Two separate
p
banks,, specialised
p
on
their own geographical areas of
reference, with different mission and,
as a consequence, radical differences in
strategy, distribution model and
commercial approach
Liguria
ExtraLiguria
 Preserving the current
positioning in the
historical areas of
presence, defending the
customer base, the
market leadership and
thus the profitability of
the bank
Carige
C
i
Group
G
– Net
N t income
i
€ Mln
CAGR:
10%
330
187
 Accelerating the
acquisition of customers
and the growth of
volumes
l
reducing
d i
the
th
cost of service to selffinance growth
 Reducing the funding
gap
2011
2017
Page |
14
Banca Carige Italia will be a network bank,
consistently with the federal model of the Group
Reorganisation
Project
Set up of a new bank, Carige Italia, that will receive Banca
C i ’ branches
Carige’s
b
h
off the
th Extra-Liguria
E t
Li
i network
t
k (except
(
t Nice
Ni
branch)
Market
46.99%
9.99%
43.02%
NewCo
Banca
Carige SpA
-listed-
Target Structure
of the Group
100%
Carige Italia SpA
1)
Insurance companies, financial, fiduciary and instrumental
95.9%
90.0%
60.0%
100%
Other
companies
Page |
(1)
15
Two branch networks significantly different for history,
geographical presence and productivity
Liguria network
History
Market
share and
coverage
Productivity
Customer
base
Extra-Liguria network
• Historical presence in Liguria region for over
500 years
• Significant presence in the territory outside
Liguria only from early ’90s
• Mature network and stable number of
branches (207 at date)
• “Young” network, develop in the last 15 years
through branches acquisition and new openings
(from 40 branches in 1998 to the actual 353)
• High market share (over 20% in terms of
branches and deposits)
• Low market share (below 1.5% in all the regions of
presence except Piedmont, Sicily and Sardinia)
• Diffuse coverage, based on branches
proximity, close to each other
• Low coverage (few, distant branches to cover larger
territory)
• Higher productivity by branch, thanks to
hi h number
high
b
off clients
li
per branch
b
h
• Branch productivity far from Liguria’s, due to
l
low
number
b off clients
l
per b
branch
h ((-38%))
• Higher volumes per client
• Limited volumes per client vs. Liguria network (40%) but higher profitability
• More balanced portfolio in terms of
customer segments vs. Extra Liguria, with
Mass Market representing ~63% of total
customer base
• Higher share of Mass Market segment (72%)
vs. Liguria network; Affluent e Private segments
less represented in the customer portfolio
• Customer base on average older than Liguria
Liguria’s
s,
with relevant portion of clients in the senior
age bands
• Customer base on average younger than
Liguria’s
Liguria
s
Page |
16
Liguria Network represents the historical core of the bank,
while Extra-Liguria Network is the result of an intense
growth phase during the last 15 years
Number of branches1
1990
1998
2000
2002
2004
2006
2008
2010
2012
Liguria
g
129
200
201
200
201
203
205
207
207
ExtraLiguria
7
40
79
186
189
198
327
348
353
New openings
7
33
18
4
3
9
10
1
5
90
Acquisitions
-
-
21
103
-
-
119
20
-
263
136
240
280
386
390
401
532
555
560
Total
Acquired
from
Banco
Intesa
di Sicilia Capitalia
ISP
UniCredit
MPS
1 Net of closed branches
Page |
17
The two networks operate in completely different
markets
Banca Carige:
Branch Market Share
1%
Customer loans
Market Share
1.9%
1%
21 2%
21.2%
Italy: 1.3%
Liguria: 18.9%
Extra-Liguria: 0.8%
1.2%
Direct deposits
Market Share
0.8%
1%
0.4%
0.3%
1 4%
1.4%
Italy: 1.2%
Liguria: 22.3%
Extra-Liguria: 0.7%
2
0.6%
1.6%
Italy 2%
Liguria: 21.2%
Extra-Liguria: 1.3%
3.6%
Page |
18
During the last years, the main commercial indicators of
Extra-Liguria network improved
Clients / FTEs
Bank Accounts / FTEs
+9% p.a.
251
2009
286
2010
+5% p.a.
297
2011
Cross-selling Index
220
232
243
2009
2010
2011
Acquisition Index
+13% p.a.
+3% p.a.
37
3.7
3.8
3.9
8.2%
2009
2010
2011
2009
9.2%
2010
10.4%
2011
Page |
19
However, Extra-Liguria network still counts a lower
number of customers per branch…
Index, Liguria=100
Data at 31/12/2011
Customers per FTE %
100
75
Customers per branch %
100
00
Liguria
Extra-Liguria
Network has
a lower
number of
customers
per FTE…
62
Extra
Liguria
FTE per branch %
100
82
...and,
and on
average,
smaller
branches
Page |
20
… customers with lower average volume…
Index, Liguria=100
Data at 31/12/2011
Volume per customer%
100
63
Extra-Liguria
has customers
significantly
smaller…
Total Income per customer %
100
Liguria
87
Extra
Liguria
Total Income on volume %
100
133
...with
with higher
volume
profitability
Page |
21
… and a gap in terms of Affluent and Private customers,
also driven by the lower average age of the customers
Liguria
Extra-Liguria
Customer distribution by segment
63%
Mass Market
72%
22%
Affluent
Private
Small Business
Corporate1
Average customer age
15%
57
4%
52
1%
7%
10%
4%
Liguria
Extra-Liguria
2%
1 Includes Mid and Large Corporate, and Public Institutions
Page |
22
It’s time for a step-change and a discontinuity in the way
we work
Phase
Extra-Liguria
E
Li
i network:
k
353 branches
Extra-Liguria network:
40 branches
Discontinuity in the
way we work and full
exploitation of the
opportunities out of
Liguria region
Acquisition and
integration into the
Group
1998
Objectives
Branch network expansion beyond
the historical region of the Bank
Improvement of the commercial
performance,volumes productivity
and profitability
2012
2017
Full exploitation of the growth
potential of the Extra
Extra-Liguria
Liguria
network
Step-change in the growth path
of number of clients and volumes,
th
through
h new branch
b
h format
f
t and
d
distribution model innovation
Page |
23
The performance improvement will be achieved through the
implementation of two separated operating and commercial
strategies
Objectives
Carige
Carige
Italia
Operating and commercial strategy
 Preserving the
current
positioning in the
historical areas of
presence,
defending the
customer base,
base
the market
leadership and
thus the
profitability of the
b k
bank
 Maintain actual strategy, focused on volumes
profitability and branches operational efficiency, by:
 Defending the customer base and executing
qualitative remix (with assignment of specific
targets in terms of client acquisition by age band)
 Safeguarding profitability
 Enhancing efficiency (interventions on back
back-office
office
and multi-channel distribution)
 Improving productivity per square meter
 Accelerating the
acquisition of
customers and
the growth of
volumes reducing
the cost of service
to self-finance
self finance
growth
 Reducing the
funding gap
 Innovate the client service model, integrating the
existing
g branch network with new and flexible
acquisition and sales channels and testing new
solutions in a “laboratory-style” set-up, with focus on:
 Increasing number of leads (development)
 Acquiring new clients
 Acquiring
A
i i
“valuable”
“ l bl ” clients
li t (“native”
(“ ti ” cross
selling)
 Develope a new product offer aimed to attract
valuable clients
Page |
24
In order to increase volumes and clients, the strategy of
Carige Italia will focus on channel and product innovation
 Historically, the
existence of two
completely different
networks in one bank
h produced
has
d
d a mixi
up of strategies and
commercial
approaches, resulting
in the acceptance of
several “compromises”
in order to manage
safely and profitably
the Bank
 The
h split
li off the
h two
networks will enable a
clear strategy
differentiation and the
activation of the
required enablers
Innovate the
growth
h model
d l
Increase
accountability
 Innovate service model, developing the existing retail
capacity and coupling it with low cost and more effective
remote
t channels
h
l
 Introduce “attack” products, simple and appealing for
value customers
 Increase transparency on results and differentiate
commercial accountability, in order to maximize the
values of the two different strategies and avoid mix-up
between the objectives
 Differentiate management performance systems
systems,
focusing on growth in terms of objectives and commercial
targets, planning process, incentives programs and KPIs
Specialize
infrastructure
I
Introduce
t d
new commercials
i l systems
t
t attract
to
tt
t and
d
manage new clients through remote and innovative
channels
Strengthen
credit risk
control
 Achieve a more balanced asset-liability structure,
reducing Carige Italia funding gap
 Differentiate credit powers between Carige and Carige
Italia in order to assure selective loan growth, in
compliance to the Holding credit policies
Page |
25
Contents
• Carige Group today
• New market scenario
• Carige Group Reorganisation Project
• Target organisational structure
• Economic impact of the Reorganisation
• Timeline
• Contacts
Page |
26
Business model differentiation will take into account
innovation needs and the continuous curb of operative
cost
Banca Carige
Rationale
Holding Functions
 Diff
Differentiated
ti t d
strategy and
commercial
approach to better
cope with different
geographic needs and
market opportunities
 Common operative
platform to maintain
scale advantages and
possibility to
implement specific
differentiations
Carige
Network
Carige
Italia
(Liguria)
Network
(
(ExtraLiguria)
 Centralised management and control
functions, in order to maintain scale and
scope synergies
 Focus
F
on Carige
C i
It li to
Italia
t develop
d
l
and
d
test product innovations, service
model, ICT platforms, and roll-out them
to the Liguria network in a second phase
back-office
office functions to
 Centralised back
leverage economy of scale
 Wholly differentiated commercial
networks in terms of role, objectives,
and distribution model
 Duplication limited to commercial (e.g.
pricing) and credit functions
Page |
27
The target organisational structure of Carige Italia is
consistent with the management of the Group’s
Network Banks
BOARD OF
DIRECTORS
CEO
Managing, directing
and controlling
functions centralised
in the Parent Bank
Corporate affairs
LENDING
NETWORK
•c
Development &
Private Banking
Lending Monitoring
Market Support
TUSCANY & UMBRIA Area
PIEDMONT Area
LOMBARDY Area
Large corporate
Lending Support
NPL management
VENETO Area
EMILIA ROMAGNA Area
LATIUM-MARCHES Area
SARDINIA Area
APULIA Presidium
SICILY Area
Page |
28
Contents
• Carige Group today
• New market scenario
• Carige Group Reorganisation Project
• Target organisational structure
• Economic impact of the Reorganisation
• Timeline
• Contacts
Page |
29
Benefits of the Project
Recurrent
Benefits
Revenues
Running gross benefits equal to €55 Millions (Net €37 Millions):
• Increase of annual recurrent revenues equal to €37 Millions (2017), due to
productivity growth and network efficiency, optimisation stabilisation of cost of
institutional funding, active capital management, net of higher taxes on intra-group
funding and dividends
Cost savings
• Running annual cost savings equal to €18 Millions, due to higher efficiency of
infrastructures, optimisation of processes and tax savings net of the increase of
other minor recurrent structural costs (<1M€)
g Cost/Income
/
for 2017 is expected
p
to be in
• Also due to these actions the running
reduction of 13.5% at 45%
Non
Recurrent
Benefits
Economic
• Benefits of €715.8 Millions, of which:
• 456
456.5
5 for Banca Carige due to the positive effect of DTL write-off,
write off DTA
recognition on goodwill not yet amortised as at 31/12/2012 and negative effect
of recognition of DTL on the stake in Carige Italia - according to PEX – equal to
the original fiscal value of goodwill
g Italia due to the p
positive effect of recognition
g
of DTA related
• 259.3 for Carige
to the goodwill and negative effect of the substitute tax recognition, due to the
exercise of the tax release option applied to the goodwill
Financial
Investments
• 254 bps benefit on the regulatory ratios, for the fully retained extraordinary
earning, net of the tax benefits already recorded under shareholders’ equity
• Core Tier 1 at 9.3% as at 31/12/2012
• CET1 full compliant expected to be greater than 8% as at 1/1/2013
• Utilisation of a significant part of the investments already planned in the
Strategic Plan 2011-2014 (€110 Millions) and of those further expected for
the three-years period 2015-2017 (€90-110 Million) supporting the requested
projects’ initiatives and innovations
Page |
30
recurrent economics benefits
€ Mln
55
18
18
37
Higher
revenues
37
Lower
costs
Gross
benefits
Tax
effect
Expected
contribution
to the
Group’s net
income of
about €37
Mln running
in 2017
Net
benefits
Page |
31
Detail of the gross recurrent economic benefits
€ Mln
Benefits
1
Action and economic impact
1.1
Productivity growth and
network efficiency
Rationale
~22
1.2
Active capital management
Gross
recurrent
revenues
benefits
~10
Optimisation and stabilisation of cost of funding

Stategic and rigorous approach to Capital
Management

Development of new customers taking into
accont risk/return equilibrium

Improvement of productivity thanks to the new
commercial model deriving from the
establishment of Carige Italia

More efficent allocation of resources

Rationalization of the network and
enhancement of local brand

Higher efficiency in the allocation of resources

O i i
Optimisation
i
off the
h expense process
1.3
Credit standing improvement
~11
1.4
~(6)
Intra-group funding and fiscal
~37
Total revenues benefits
2

2.1
2.2
Rationalization of local
network
Higher efficiency of
infrastructures
~1
~3
2.3
Gross
recurrent
cost
benefits
Optimisation of processes
~9
2.4
~6
‘ACE’ benefits/reserves
2.5
Other recurrent costs
Total cost benefits
~(1)
~18
Page |
32
Non recurrent benefits from the Reorganisation Project
Action
Effects
P&L € Mln
Reg. Cap. € Mln
Regulatory (bps)
One-off effects
(2012)
One-off effects
(2012)
Core Tier 1
(2012 pro forma)
457
340
144
259
259
110
7161
598
254
1
Emerging latent deferred
taxation on goodwill
2
Fiscal recognition of
goodwill ad upfront
withholding tax
Total effect
The Project
allows a total
benefit of 254
bps on the
Core Tier 1
ratio at the
end of 2012
1 Gross of €5.1 Million one-off costs (€3.4 Mln net) expensed in 2012. Additional one-off costs for €2.4 Million will be
expensed from 2013 to 2017
Page |
33
Benefits from the Reorganisation Project
€ Mln
1
 Positive effect of the DTA recognition on
goodwill not yet amortised as at
31/12/2012 (~ €1.1
€1 1 Bln)
363.5
The Project will
allow the
•c
emerging of
latent defferred
taxation on
goodwill
21.1
 €114
€114.1
1 Mln positive
effect of the DTL
write-off as at
31/12/2012
 Negative effect of the
recognition of DTL on the
g Italia –
stake in Carige
according to PEX – equal
to the original fiscal value
of goodwill
114.1
DTL write-off
456.5
DTA recognition
on goodwill
DTL recognition on the stake
Net benefit
•Positive
c
net effect on the regulatory capital equal to about €340 Mln /
144 bps (net effect on the pro forma Core Tier 1 ratio)
Page |
34
Financial benefits of the Reorganisation Project
€ Mln
2
 Upfront withholding tax
equal to the 16.0% of the
goodwill for Carige Italia
 DTA related
to the
goodwill (tax
rate 33.07%)
 Effect of the recognition of
DTA related to the goodwill as
granted by art. 15, par. 10 of
the Legislative Decree n°
185/2008 (+ ~110
110 bps for
regulatory purposes)
502.3
Fiscal
recognition of
•c
goodwill ad
upfront
withholding
g tax
259.3
243.0
Recognition on goodwill
Substitute tax
Net benefit
•Positive
c
net effect on the regulatory capital equal to about €260 Mln /
110 bps on the pro forma Core Tier 1 ratio
Page |
35
Benefits on Regulatory Capital
Effects on Regulatory Capital %
~9.3
25
2.5
CET1 full
compliant as at
1/1/2013
/ /
greater than
8% thanks to
the
Reorganisation
6.8
50
5.0
CT1
31.12.2011
CT1
31.03.2012
Reorganisation
Project
CT1
31.12.2012
Page |
36
The resources required to support the strategy will be
derived from the investments already planned in the
Strategic Plan 2011-2014 and additional investments
 The Group has already planned
in the Strategic Plan 2011-2014
investiments on technology
equal to about €110 Million
 A considerable part of these
investments will be used to
support the project’s initiatives
aiming at the innovation of the
network (eg automatised
branches, remote channels to
attract new customers), of
products, marketing and
training (eg for the evolution of
skills of the branch staff)
 Additional investments for €90110 Million planned for the three
years period 2015-2017
Pl
Planned
d investments
i
t
t
€ Mln
111
90-110
2012-2014
2015-2017
Page |
37
Financial highlights of the commercial networks,
evolution 2011-2017
Carige Italia
Carige (branches in Liguria)1
2011
2017
CAGR 11-17
2011
2017
CAGR 11-17
GROSS LOANS € Bln
9.2
13.2
6.2%
8.9
12.7
6.2%
DIRECT DEPOSITS € Bln
12.11
15.6
4.3%
7.62
11.42
7.1%
INDIRECT DEPOSITS € Bln
9.7
9
72
12 2
12.2
4 0%
4.0%
5.6
5
62
8.0
8
02
6 1%
6.1%
FIA € Bln
21.8
27.9
4.2%
13.2
19.4
6.7%
NET PROFIT € Mln
125.4
163.4
4.5%3
53.4
150.7
COST INCOME %
38.5
35.6
-2.9bp
60.3
48.2
1 Banca Carige SpA, in addition to the Liguria commercial network (represented here), maintains also its own internal
institutional funding, its security portfolio, Leasing, Factoring, medium and long term Pool financing and foreign activities;
2 Intragroup Bonds are reclassified as Direct Deposits; 3 Excluding one-off for cagr calculation purposes
18.9%
-12.1bp
Page |
38
Strategic rationale
1
Acceleretion in achieving the targets of the Carige Group
Group’ Strategic Plan 2011-2014
Optimisation of the market’s defence by strenghtening the inter-channelling
Cost synergies related to the processes’ optimisation and increasing productivity of the
networks thanks to the specific focus on their core business (unbundling of the Carige network)
and to the emulation effect
Strengthening of coordination and control functions of the Parent Bank
2
Significant strengthening of regulatory capital (even with the new Basel III requirements)
with expected improvements in the Carige Group’s ratings and, consequently, for its cost of funding
Actions to accelerate the achievement of the targets
communicated to the market (improving productivity, cost savings, capital
strengthening)…
…“Keep
“K
growing
i
producing
d i
value”
l ”
Page |
39
Contents
• Carige Group today
• New market scenario
• Carige Group Reorganisation Project
• Target organisational structure
• Economic impact of the Reorganisation
• Timeline
• Contacts
Page |
40
Outlined schedule of the Reorganisation Project
Date
21 May 2012
Milestones
Board of Directors of Banca Carige
Description
 Approval of the Group’s Reorganisation Project
Presentation to the Financial Community
22 May 2012
23 May 2012
17 September
2012
Starting Dec.
2012
Set up of Carige Italia
Board of Directors of Banca Carige
 Approval
pp o a o
of tthe
e co
contribution’s
t but o s ba
balance
a ce as at 30/6/
30/6/2012
0
Extraordinary shareholder’s meeting of
 Approval of the capital increase to be realised in nature through
Carige Italia to formally approve the capital
the transfer of the business unit with effect 31/12/2012, and the
increase
subsequent amendments to the Articles of Association with effect
1/1/2013
Starting Dec.
2012
31 December
2012
Draw up of the agreements on the
contribution to Carige Italia
Date of effectiveness of the Reorganisation
Project
Page |
41
Contents
• Carige Group today
• New market scenario
• Carige Group Reorganisation Project
• Target organisational structure
• Economic impact of the Reorganisation
• Timeline
• Contacts
Page |
42
Contacts
Investor Relations
[email protected]
Tel: +390105794877
Page |
43
Disclaimer
This document has been prepared by Banca Carige S.p.A. solely for information purposes and
solely to present the Group's strategies and key financial data.
The Company, its consultants and representatives shall not be held responsible (for losses arising
from negligence or any other
reasons) for any losses arising from the use of this document and of the contents hereof.
All forward-looking information contained in this document have been prepared on the basis of
assumptions that may prove incorrect, and therefore the results may vary.
In forming their own opinion, readers should keep in mind the aforesaid factors.
This document does not constitute an offer or solicitation to purchase or subscribe shares, and
no part of this document can be regarded as the basis of any contract or agreement.
N
None
off the
th information
i f
ti
contained
t i dh
herein
i may b
be reproduced,
d
d published
bli h d or di
distributed,
t ib t d iin
full or in part, for whatever purpose.
By accepting this notice you agree to all the limits listed above.
*****
The manager responsible for preparing the company’s financial reports Ms. Daria Bagnasco, Deputy General
Manager (Governance and Control) of Banca CARIGE S.p.A., declares, pursuant to paragraph 2 of Article 154
bis of the Consolidated Law on Finance, that the consolidated accounting information of Banca CARIGE Group
contained in this presentation corresponds to the document results,
results books and accounting records.
records
Page |
44