Lines of action

Further deterioration in the macroeconomic situation, which could manifest itself through an accentuation of volatility and tensions in the financial markets, a marked reduction in family incomes, a considerable decrease in investments by companies, as well a worsening in their credit ratingⁱ, together with changes in the general and sector regulatory context, could bring about a negative impact on the Group's economic, financial and equity operations. Moreover, in order to consolidate its growth, the Group has outlined the following lines of action:

• the rapid integration of 40 branches acquired from the UniCredit Group in December 2008, so that they are able, as early as 2009, to generate significant profits;
• he continuation of the profitability of 79 branches acquired from the Intesa Sanpaolo Group in March 2008, already fully integrated from an organisational, IT and HR point of view during the year;
• carrying out of technological investments in the new branch, with the implementation of new advanced functions in the management of customer relations and improvements in operating efficiency;
• an increase in traded volumes per employee, with particular focus on the retention and development of relations with customers in Liguria and greater financial penetration in the areas outside of Liguria, focusing on those areas in which the Group's presence has become more marked thanks to recent acquisitions, in order to acquire market shares and assume a more prominent role in terms of the "reference bank".
• development of cross sellingⁱ in the placement of banking, insurance and financial products also by exploiting the possibilities derived from the internal production of brands and Group product companies (Carige Asset Managementⁱ SGR, life and non-life insurance companies, Creditis for consumer credit);
• containment of the economic impact of risks, through the constant monitoring of equity equilibrium, liquidity, interest rate and market profiles, and with regard to credit quality, by taking advantage of revamped processes of granting, management and monitoring which integrate the use, in operations, of the Basel 2 principles;

These actions will be combined with the measures, already in place, aimed at the review of management processes and targeted at a reduction in administrative expenses and an improvement in the quality of services offered, focusing on an increase in operational efficiency and commercial effectiveness. It is believed that the implementation of these actions and measures, together with careful risk managementⁱ, may allow the Group to maintain adequate capitalisation and liquidity levels.

Genoa, 27 March 2009                                                                                                      The Board of Directors