Prospectus - Notowania

Q3 2009 shows only a slight decrease from the previous quarter on the commissions side, despite the drop in asset
management and administration fees due to the summer break. This seasonal drop in commissions in the third quarter was
partly offset thanks to the positive contribution of the commitment commission which starting from July, as provided by the
crisis decree replaced the previous calculation method (i.e. the percentage of the highest amount of customer borrowing
during the period).
Income Statement (€ million)
CONSOLIDATED INTERIM REPORT
AS AT SEPTEMBER 30, 2009
FIRST 9 MONTHS CHANGE 2009
CHANGE 2008
2009 2008 % Q3 Q2 % Q3
RETAIL ON Q2 09
Operating income 7,565 8,787 - 13.9% 2,276 2,616 - 13.0% 2811
Operating costs -5,302 -5,686 - 6.8% -1,709 -1,800 - 5.1% -1852
Operating profit 2,263 3,101 - 27.0% 567 816 - 30.5% 959
Net write-downs on loans -1,386 -791 + 75.2% -392 -513 - 23.6% -286
Profit before tax 720 2,206 - 67.4% 156 197 - 20.8% 637
The measures to improve efficiency implemented by the Retail SBA at the beginning of 2009 had a positive impact on
operating costs. In the third quarter of 2009, operating costs showed a further decrease to €1,709 million at the end of
September, which means a significant contraction (-5%) from the previous quarter. In the first nine months of 2009 operating
costs totalled €5,302, down by 6.8% year-on-year, despite the wage increases resulting from the new collective labour
agreement.
This reduction was mainly due to the drop in payroll costs as a result of the staff downsizing following the Group's integration
of former Capitalia banks which was funded by a leaving incentive program that started in 2008 to achieve greater efficiency.
As at September 30, 2009 the number of FTEs (Full Time Equivalents) in the Retail SBA dropped by a further 478 employees
from June, which translates into a reduction of 2,279 employees (-4.4%) year to date. Cost containment measures were also
applied to other administrative expenses which strongly decreased from the end of 2008 despite the impact of about €40
million following the regulation that introduced the requirement to apply VAT to intra-group transactions.
Staff Numbers
RETAIL
AS AT CHANGE ON DEC '08
09.30.2009 06.30.2009 12.31.2008 AMOUNT %
Full Time Equivalent 49,953 50,431 52,232 -2,279 - 4.4%
The cost-income ratio of September 2009 stood at 70% dal 65% of 2008 due to the reduction in revenues that was only
partially offset by greater cost management efficiency.
The above components contributed to an operating profit of €567 million in the third quarter of 2009, with a 30% decrease
from the previous quarter. In the first nine months of 2009 operating profit totalled €2,263 million, down by 27% year on year.
In terms of geographical contribution to the SBA's total profit, Italy's considerable contribution of 74% of total operating
income generated 83% of overall operating profit of first nine months of 2009, which was down from the 84% of 2008, while
Austria and Germany contributed the remaining 17%.
Profit before taxes was heavily affected by net write-downs on loans, which in the first nine months of 2009 rose sharply
over the previous year to a total of €1,386 million compared to €791 million in September 2008 (+75% y/y). This increase,
which is entirely attributable to the Italian portfolio, was partly due to the different risk coverage methods of new impaired
loans flows gradually applied to the former Capitalia portfolio during 2008. Additionally, a marked progressive credit
deterioration resulted from the international financial crisis that began in the second half of 2008, affecting both private
individuals and small business borrowers, who recorded default rates 40% higher than in 2008. Also write-downs on loans
showed signals of improvement in the third quarter of 2009. The €392 million write-downs in Q3 2009 showed a tangibile
decrease (-24%) from the previous quarter thanks to the positive impact of two programs of economic support launched in
Italy at the end of Q1 (one designed to support small business undergoing temporary financial difficulties but without
structural problems in their business; the other dedicated to supporting private individuals to meet their obligations by
endeavouring to secure from the client a continuous flow of payments in keeping with their temporary difficulty) and thanks to
the reduction of the cost of discounting net impaired loans due to the adjustment of the interest rates used.
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