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MPS Presentation Antonio Vigni General Manager Merrill Lynch – Banking & Insurance CEO Conference London 07 – 0

MPS Presentation Antonio Vigni General Manager Merrill Lynch – Banking & Insurance CEO Conference London 07 – 09 Oct 2008. How MPS is dealing with market turmoil . Reinforced committment on cost restructuring

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MPS Presentation Antonio Vigni General Manager Merrill Lynch – Banking & Insurance CEO Conference London 07 – 0

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  1. MPS Presentation Antonio Vigni General Manager Merrill Lynch – Banking & Insurance CEO Conference London 07 – 09 Oct 2008

  2. How MPS is dealing with market turmoil Reinforced committment on cost restructuring Working to anticipate the impact of 2009E cost synergies (50% of € 476mln of total cost synergies) Delivery on asset disposal well on track Confident in the closing of the branches disposal in the short term Tight control on loans and confirmed good retail funding growth Retail funding: +8% annualized 3Q08 vs 2Q08* * Figure at end September, referred to commercial network pag. 2

  3. +5.7% Basic Income (MPS 6M + BAV 6M) -2.0% Costs (MPS 6M + BAV 6M) +200,000 Net New Clients (4% customer base) € 476 mln Cost Synergies (Expected) 25% Integration cost already done GMPS key figures € 522 mln +2.6% Reported net profit (MPS 6M + BAV 1M) Well on track with BP target +9.7% Direct Deposits € 7 bn New Saving Inflows

  4. Pro-forma results* vs Business Plan target before synergies Results BP targets 1H08/1H07 (%) 2Q08/2Q07 (%) Synergies not included! Expected to contribute 30% of GOP growth in 2008/2011 NII + Fees (6M BMPS+ 6M BAV) Costs (6M BMPS+ 6M BAV) Cost synergies expected €476mln Cost of risk: 50 bps vs 53bps avg in 2008-2011 BP Loans (%) Direct Funding (%) Indirect Funding (%) ** ** * Includes BAV for 6 months ** Ex BAV: Inclusive of BAV: Loans +7.5%; direct funding +8.5%

  5. 1H08 and 2Q08 GMPS Results* versus Competitors** 1H08/1H07 2Q08/2Q07 1H08/2007 30/06/08 *Stand- alone, with IFRS5 **Competitors are UCI, ISP, BAPO, UBI Pop Mi *** Net of Hopa/Fingruppo: Including these: +39.8% 1H08/1H07; 61.5% 2Q08/2Q07; LLP 50 bps pag. 4

  6. Our results confirm our focus on recurring revenues and cost containment +5.5% Basic Income* (€ mln) The basis of our credibility Mln.€ Includes €95mln of one-off Costs YoY evolution (€ mln) **** *** Only GMPS (ex BAV) **** Pro-forma MPS 6M + BAV 6M * 4th quarters net of Junior notes / Banking book ** Including Biverbanca in pag. 6

  7. Driven by a world-class franchise network Market shares** vs Dec 07 Net New Clients* 4% Increase in GMPS customer base WM Gross Flows New Savings inflows €7bn in 1H08 Mln.€ *Active customers of BMPS, BAM , BT and B. Personale; ex BAV. ** Not comparable with other figures reported: Mutual funds calculations are based on the new methodology and include foreign funds; Direct funding and Bancassurance were restated to include the sale of Banca Depositaria; loans include Consumit loans.

  8. Performance of direct funding and loans Retail +16.1% YoY Corporate +29.2% YoY +9.7% YoY 106,487 97,044 Direct funding* +11.7% YoY +6.7% YoY € mln € mln Retail +13.5% YoY Corporate +3.9% YoY +7.8% YoY 98,182 91,045 +11.9% YoY Loans* +0.1% YoY € mln € mln * Commercial network, ex BAV. GMPS (stand alone) growth calculated on average balance: Direct funding +10%, Loans +11.8%

  9. Focus on: • Recurring revenues: +1.1% vs 1H07, +7.6% 2Q08 vs 1Q08 • Costs well under control: -6.0% YoY and -1.1% 2Q vs 1Q • Direct funding: +9.7% YoY BAV (Banca Antonveneta stand alone) • Asset quality under control, with increasing coverage in BAV • Good liquidity position, with a counterbalancing capacity amounted to € 12 bn at mid September Asset Quality and Liquidity position • FY08 staff reduction planned already completed • FY08 Admin costs savings targets already met • BAM integration approved and to be completed by 3Q08 Synergies • Tier 1 at 5.1% in 1H08, 5.4% with B2 advanced full impact* • Total capital at 9.4%, 9.8% with B2 advanced full impact* • B2 standard for BAV and product companies • Asset disposals well on track Tier 1 and TCR (E) * Estimates including expected benefit from asset disposal in accordance with IFRS5 (Banca Monte Parma and MPS Sgr)

  10. BAV: The Acquisition Bolstering GMPS Competitive Positioning BAV Market share by region ...to from... “The New Group”* • Positioning (by branches) • Italy: #3 • North-West: #5 • North-East: #3 • Centre: #2 • South & Islands: #3 MS > 25% MS 10% -25% MS 6% - 10% 8th November: Deal announcement 30th May: BAV acquisition 2nd June: IT integration FULLY INTEGRATED IN A RECORD TIME MS 2% - 5% MS < 2% * 2007 pag. 10

  11. First evidence of the commercial pick up in 2Q together with cost control BAV +6.7% -6.0% +7.8% Basic income Costs Mln.€ Mln.€ BAV network: Direct funding and loans YoY performance +3,000 new current account in June +1,000 new retail customers in July * Including Key clients positions pag. 11

  12. Asset Quality Asset Quality Under Control* GMPS Loan Loss provisions Doubtful loans/Loans per Geographical Area** Provisioning 55 bps (50bps ex Hopa) 145 (ex Hopa) GMPS GMPS NPL flows -38% Loan Loss provisions NPL flows • Provision/loans* • 80 bps(1H08 annualized) • 50 bps (2Q08 annualized) • NPL Coverage at 69% • +€100 mln of generic provisions • (at 0.5% of performing loans, • in line with GMPS) through PPA BAV Mln.€ Mln.€ * BMPS Group (pre BAV). **Figures refer to Banca MPS pag. 12 Mln.€

  13. Asset Quality Our core market macro scenario Italy export growth 6M08 vs 6M07 Core BMPS market Core BAV market flat +6.9% GDP Growth (2Q08/2Q07) Unemployment Rate (%) +0.2% +0.6% pag. 13

  14. Asset Quality Families debt*: low leverage vs Europe Italy % of EU 25 Financial debt/disposable income (%) *Source: ABI, data at 2006, Bank of Italy pag. 14

  15. Liquidity position Liquidity Position under control Loan / Deposit ratio Wholesale Securities <15% total funding Loan/Dep Ratio post BAV at 1x Funding Breakdown • c€5bn wholesale maturity in 2009 CD Programme and Counterbalancing Capacity (€/000) Counter-balancing capacity: +€12bn Liquidity and maturity ladder in the short term • Excess liquidity is invested in collateralized transactions The Counterbalancing capacity is the total amount of the assets immediately disposable in order to face liquidity needs * Reported figures, including BAV pag. 15

  16. First 6 months of 2008 with many extraordinary activities Synergies Right issue/Tier 1: € 5 bn + € 1 bn Upper Tier II: € 2.2 bn Asset disposal: € 850 mln cash inflows (€ 1,420 mln at 30/09/08) BAV IT integration: completed on June 2nd BAM incorporation Integration costs: € 138 mln* Staff rationalization: 980 exits Staff requalification (from BO to FO): 260 Admin costs synergies: € 33 mln of savings ü Completely subscribed Fund- raising ü Better than expected (planned amount € 2 bn) 47% (77% at 30/09/08) of expected cash inflows ü 4 months earlier than expected ü Approved on 28th August by Shareholders Group restructuring 25% of integration costs planned 82% of 2008 planned exits 35% of requalifications planned in BP Efficiency improvement ü 2008 target met ahead of schedule *Pro-forma GMPS 6M + BAV 6M

  17. Synergies Cost synergies Headcount reduction Personnel expenses evolution (€ bn) (pre-asset disposal) 560 net exits ~980 exits 28% of planned exits 0.20 0.14 2.52 ~ 34,200 ~ 630 82% of 2008 Target 2.47 ~ 33,640 HR: Headcount reduction ~ 350 ~ 420 2008 BP TARGET ALREADY MET 10% P&L impact first expected in 3Q08 2008 2009 Admin Costs: ahead of schedule 2010 2011 € 332 mln 10% 50% 80% 100% Reached in 1H08 IT integration planned for Sep 08 but executed in June 08 Planned * FTE. Includes Antonveneta (9383) and Biver (696) pag. 17

  18. Record integration time: 4.5 months (17 Jan – 31 May) Roll out date: 2 June Size: 994 branches 11,000 workstations 1,100 ATMs 65,000 POS 9,000 employees Synergies Integration Charges highlights 25% of planned integration charges Integration charges Mln.€ Mln.€ Training: 49,000 training hours To 7,000 employees 1,400 resources supporting BAV staff in the first 2 months after integration IT integration and the size of a “Big Bang solution” Customer care: Extraordinary Help Desk Cost: € 65 mln

  19. Tier 1 and TCR Tier 1 and TCR evolution Further improvement from: 1. RWA optimization 2008 vs 2007 -5.1 -2.1 Tier1 and Total Capital* -1.0 -4.0 -2.4 € bn BETTER THAN EXPECTED € 1.2 bn € 1.0 bn € 3.0 bn Results achieved (June 08) 20% of expected amount 125% of expected amount 30% of expected amount 2. Asset disposal * Estimates include expected benefit from asset disposal in accordance with IFRS5 (Banca Monte Parma and MPS Sgr) ** B2 advanced full impact; B2 standard for BAV and product companies

  20. Tier 1 and TCR Assets dismissed in 9M08 and to be dismissed in 4Q08 Cash inflows (€ mln) € 1,420 mln cash inflow Assets dismissedin 9M08 … Mln.€ … and to be dismissedin 4Q08 * Subject to regulatory approval

  21. Structural growth: confirmed in GMPS and starting in BAV 1H08 Results: Good results notwithstanding the macro environment and in line with Business Plan Asset quality and liquidity position: under control Cost synergies: already reached the 2008 BP target Capital: Tier 1>6%, also thanks RWA optimization and asset disposal Conclusion

  22. Contacts Contacts Declaration In accordance with section 2, Article 154- bis of the Consolidated Law on Finance (TUF), the Financial Reporting Manager Daniele Pirondini, declares that the accounting information contained in this press release corresponds to documentary records, ledgers and accounting entries. • Investor Relations • Piazza Salimbeni, 3 • 53100 Siena • Tel:+39 0577-296477 • Investor Relations Team: • Alessandro Santoni (Head) • Simone Maggi • Elisabetta Pozzi • Email: Investor.Relations@banca.mps.it

  23. This document has been prepared by Gruppo Monte dei Paschi di Siena solely for information purposes and for use in presentations of the Group’s strategies and financials. The information contained herein has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Neither the company, its advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. The forward-looking information contained herein has been prepared on the basis of a number of assumptions which may prove to be incorrect and, accordingly, actual results may vary. This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsover. The information herein may not be reproduced or published in whole or in part, for any purpose, or distributed to any other party. By accepting this document you agree to be bound by the foregoing limitations. Disclaimer

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