Capital Allocation & Strategic Opportunities for Banca CR Firenze Group

1. Capital Allocation & Strategic Opportunitiesfor Banca CR Firenze Group Lino MoscatelliManaging Director UBS Italian Financial Services Conference Milan - February 2 and 3, 2006

2. Recent Achievements • The 2000 IPO has produced an evolution process which led to • Group perimeter enlargement • Financial assets growth • Focus on consumer credit • New structure for the branches network • Profitability increase • Capital allocation optimization • Value creation

3. 1,250 Parent Company Shareholdings ROE (adj.) EVA Group 265 1994 1999 2004 Net income Growth Over The Years

4. CR MIRANDOLA MAIN FIGURES CR SPEZIA Group network 527 Market Share loans 11.0 % funding 15.8 % 8 1 CR ORVIETO CR PISTOIA 28 Customers 1,000,000 51 334 Total funding € 36.8 bn Financial advisors 42 Customer loans € 12.9 bn 46 9M 2005 ROE (annualised)13.6% CR CIVITAVECCHIA Banca CR Firenze Group • The outward expansion from its traditional business territory led to the transformation into a multi-regional banking group • Investments in consumer credit increased profitability and stabilised P&L Italian leader in consumer credit through FINDOMESTIC Banca

5. 2000-2005 Perimeter Enlargement • Growth provided business diversification • The Group is present in 6 central Italian regions (3 in 2000) • Tuscany continues to lose ground: it represents 65% of the branches and 67% of the loan book 2005 branches 2005 loans

6. Head of Commercial Dept. PRIVATE BKG. CENTERS CORPORATE CENTERS RETAIL BRANCHES 6,000 clients* 11,000 clients* 633,000 clients* Advanced Market Approach • Three separate channels, three different networks, one sales supervision • 313 retail branches focused on mass market, affluent and small business customers • A close-knit network coverage thanks to 17Corporate Centers and 16 Private Banking Centers • Synergies between channels: Corporate/Private Bkg. and Retail/Corporate Network figures refer solely to Group’s banks where the model has been implemented. Clients shown in figures refer to the Parent Company

7. Capital Allocation • With the introduction of the IAS Segment Report and following the implementation of the Basel II methods, a business unit capital allocation model has been perfected*. • Shareholders’ equity (capital, reserves, minority interests and net income) is allocated depending on: • credit risks - AdvancedBasel II or Bank of Italy method • market risks - Bank of Italy method • transformation risks - Basel II (Pillar II) • operative risks - Standardized Basel II approach • business risks - equal to the value of the single-product companies * Only indicative figures are reported on the following slides. The definite figures will be published in the first Segment Report which is scheduled to be released on occasion of the 2005 Annual Report

8. Capital Allocation - Business Units • Retail - Parent company branches, Financial advisors network • Corporates - Corporate centers, relations with government services, tax collection • Private Banking - Private banking centers • Other Group banks - branches of CRP, CRS, CRO, CRC, CRM • Wealth Mgmt. - Centrovita (bancassurance), BCRF Gestion Internationale (mutual fund co.) • Corporate Center - Finance, Consumer credit, Banking related companies (leasing, factoring…), Group Management and Coordination, Instrumental companies

9. OTHER GROUP BANKS RETAIL Equity Nopat Rorac C/I Equity Nopat Rorac C/I 20% 12% 29% 20% 12% 30% 74% 71% Bank A Bank D 71% 62% Retail Units - Cost / Income* Bank B Bank E 75% 89% Bank F Bank C 82% 69% 74% Average Aggregate figures Equity Nopat Rorac C/I 32% 49% 19% 73% Business Units - First Findings • Good income performance • Cost/income in line with that of other bank’s comparable retail units • The new market approach has not been applied yet • Room for a commercial efficiency improvement *Source: companies’ reports

10. WEALTH MANAGEMENT PRIVATE BANKING Equity Nopat Rorac C/I Equity Nopat Rorac C/I 1% 5% 14% 4% 21% 90% 37% 52% Business Units - First Findings (2) • Good capital returns and good cost/income ratios • The Private Banking segment needs to have its brand name acknowledged by a wider public in order to increase its market share • Wealth management companies performance (bancassurance & mutual funds) is tied to the retail unit’s growth

11. High growth potential Potential for further investments to exploit good growth ratios Pension schemes Consumer credit Mortgages Investments Expected business growth Personal insurance Only potential for selective investments to improve service quality and maintain market shares Cash - Payments Bank’s positioning Individuals Segment • Generates the greatest value • Is characterized by high propensity to save but also... • ...by a sentiment of mistrust in the banking system The dimension of the bubbles shows the current importance of the Business Area in terms of margin

12. Individuals: A Structured Approach • An approach more focused on client’s expectations means • Less but more personalized commercial proposals • Greater effectiveness • Reinstating a trust relationship • CRM techniques are the most important tool to achieve the combination of the above aspects • The introduction of the customer satisfaction indices in the MBO Plans will generate greater worth from the relationship

13. In 2005 • 64 campaigns launched and 92 events managed • 450,000 commercial talks • 456,000 customers with a next product assigned • only 50% of the portfolio managers regularly used the tool Individuals: What Next ? • The evolution of the Data Mining Platform will furnish a deeper knowledge of the client clusters facilitating the construction of a keener relationship • A propensity score will be assigned to all products • A full use of the CRM instrument will be achieved also thanks to the generation turnover which will facilitate the process

14. CORPORATES Equity Nopat Rorac C/I 18% 9% 7% 57% Business Units - First Findings (3) • The overall result is still not satisfactory. • The unit’s result is affected by the negative contribution of tax collection • Thanks to the sale of the two tax collection companies and by focussing commercial actions on core corporate clients, the performance is expected to improve

15. Selective investments to follow market opportunities Investments to exploit the expected growth of high margin products Intl. services Structured finance Ind. & Spec. credit Bank guarantees Financial risk coverage Foreign payables/ receivables Maintain market shares Factoring Expected business growth Agriculture financing Domestic payables/ receivables Leasing Currencies Bank’s positioning SMEs & Corporates Segment • SMEs are now experiencing a dimensional growth and international expansion • Banks’ capacity to exploit Basel II will make certain banks more competitive The dimension of the bubbles shows the current importance of the Business Area in terms of margin

16. from 75 125 250 500 1,000 2,500 5,000 25,000 AVG. Granted loans (total*) to 125 250 500 1,000 2,500 5,000 25,000 2.1 1.0 1.2 1.7 2.4 3.2 4.4 6.3 10.3 Banks per client (Italy, avg.) Credit needs covered by 49% 99% 89% 76% 68% 61% 55% 46% 36% clients’ 1st choice bank(Italy) BCRF clients who recognized 8% 46% 43% 18% 8% 4% 4% 2% 2% the bankas a 1st choice bank Core clients SMEs & Corporates Segment • The figures below reflect the bank’s low capacity of attracting core clients • BCRF is a first choice bank for a small number of its clients (8%) • In the core clients group, BCRF obtains even lower percentages • The aim is to grow as the first choice bank for the core clients * Sum of all credit lines granted by the Italian banking system or by BCRF expressed in EUR thousand (source: Bank of Italy and BCRF)

17. Loans by rating* Amounts granted Amounts utilized SMEs & Corporates: How To Compete • BCRF has been among the first mid-sized groups to launch the IRB Advanced (Basel II) procedure • The capacity to correctly assess client risks will enable to: • Recuperate market share in the top-client segment • Obtain a correct profit from risks related to the worst clients * Loans by rating refers to the Parent Company’s 65% corporate segment customer base (November 2005) -.-.

18. CORPORATE CENTER Equity Nopat Rorac C/I 44% 24% 7% 73% Findomestic (consumer credit) Equity Nopat Rorac C/I of which 23% 31% 17% 50% Business Units - First Findings (4) • Striving to attain greater internal efficiency through the centralization of governance functions, the shifting of personnel from back-office to sales and improvement of procedures • Findomestic’s contribution to Nopat and its capital return are excellent

19. Conclusion • For Banca CR Firenze to consolidate its position as a regional bank, strongly oriented towards value creation, the following elements are indispensable: • the consolidation of the retail banking vocation • the improvement of the quality level of the services offered to corporates • upkeeping the leadership in consumer credit • a central control structure operating with a greater efficiency

20. Capital Allocation & Strategic Opportunitiesfor Banca CR Firenze Group Lino MoscatelliManaging Director UBS Italian Financial Services Conference Milan - February 2 and 3, 2006