Fines de la educación superior: contexto dinámico y complejo

Areas of business Target customers

 Lending and offer of financial products and services to businesses, including

through strategic partnerships with trade associations and Confidi credit guarantee consortia, Guarantee Institutions (including public) and Institutional Entities through which to acquire funding at favourable terms for the Bank.

 Offer of integrated leasing and factoring packages for businesses, artisans and

professionals (through the subsidiary MPS Leasing & Factoring).

 Corporate finance – medium-long term credit facilities, corporate finance, capital

markets and structured finance (partly through the subsidiary, MPS Capital Services).

 Products and services issued by the bank's foreign branches to support business

expansion and investments by Italian companies abroad.

Corporate Banking customers amount to approximately 70,600 thousand.

Profit & loss and balance sheet results

As at 30 September 2013, volumes of total funding with Corporate banking customers amounted to approx.

EUR 47 bn, substantially in line with levels as at 30/06/2013 and down 14.9% on the same period of last year. Direct funding, which totalled approx. EUR 24 bn, dropped 4.5% from 30/06/2013 but was up 6.7% on the end

of 2012 as a result of the intense campaign for funding.

Indirect funding, consisting largely in assets under custody, stood at approx. EUR 23 bn as at 30/09/2013,

(+4.2% from 30/06/2013; -29.6% as compared to 30/09/2012), having been affected to a considerable extent by the changes in deposits from some of the Group's Key Clients, with impact, however, not being significant.

With regard to lending, as at 30 September 2013 interest-bearing loans stood at around EUR 59 bn, slightly down on 30/06/2013 (-0.5%) and a significant decline on 30/09/2012 (-10.1%), in line with industry trends.

Corporate Customers: breakdown by type

SMEs - 77.5% Istitutions - 20.6% Large Corporate - 1.9%

Corporate customers: breakdown by geography

North East - 25.1% North West - 20.3% Centre - 32.6% South - 22%

Interim Report on Operations

With regard to profit and loss aggregates, as at 30 September 2013 total revenues for the Corporate Banking division came to approx. EUR 1,364.5 mln (-17.8% y/y) with net interest income falling 20.2% as a result of both the aforementioned innovations in the Internal Transfer Rates and the contraction in business volumes. Net fee and commission income shrunk 4.4%, largely reflecting the gradual slowdown in lending transactions. A 30.1% downturn was registered for other revenues, attributable to reduced market volatility and lower risk profiles for the Global Markets Division of MPS Capital Services.

Net operating income totalled approx. EUR 182.4 mln reflecting higher net impairment losses on loans and

financial assets compared to the previous year (+34%) while operating costs have fallen (-11.1%). The Corporate

Banking cost/income ratio stands at 33.6%.

Corporate banking - Distribution network Interest-bearing loans SMEs - 74% Istitutions - 12% Large Corporate - 14% (*) (E UR mln) 30/09/13 30/09/12 C hg % Y/Y

Net interes t income 820.1 1,027.8 -20.2%

Net fee and commis s ion income 379.8 397.1 -4.4%

Other income 164.7 235.6 -30.1%

INC OME FROM BANKING AND INS URANC E 1,364.5 1,660.5 -17.8%

Net impairment los s es (revers als ) on loans and financial as s ets (1,088.3) (812.4) 34.0%

Operating expens es (458.6) (515.7) -11.1%

NET OPERATING INC OME (182.4) 332.3 n.s.

C ORPORATE BANKING - PROFIT AND LOS S AG G REG ATES

(*) Values have been restated to reflect the effects from the merger by absorption of MPS Gestione Crediti Banca into the Parent Company with the cost of bad debt collection management activities transferred from fee and commission expense to operating costs.

Corporate banking Breakdown of revenues

Distribution network - 71% Foreign - 1%

Product companies - 28%

Corporate banking - Distribution network Breakdown of revenues SMEs - 81% Istitutions - 8% Large Corporate - 11% 0 0 0 0 (E UR mln) 30/09/13 30/09/12 C hg % Y/Y MP S Capital S ervices 71.7 147.5 -51.4%

MP S Leas ing & F actoring (25.2) (7.7) n.s .

Key initiatives

 Advances, of various operating forms, of receivables owed to companies by the Public Administration.

 “Crescita di Valore” (Value Growth) - initiative launched in June with the aim of rebalancing lending/funding

positions having negative added value, starting from the 150 most critical cases for which direct tracking by the relevant Head Office units has been decided.

 Italian Banking Association (ABI) Agreement, “Banche 2020” – aiming to promote a more efficient use of EU

funds allocated to Italy through greater awareness by banks of the means of access provided for businesses.

 Credit to SMEs – strengthening the ability to support the internationalisation of small-medium businesses with

the launch of a new medium-term product “Finanziamento SACE–Credit Enhancement, with funds from the Cassa Depositi e Prestiti”.

 Italian Banking Association (ABI) Agreement “Credito 2013” – initiative (joined on 26/09/2013) involving a new

grace period on the basis of which banks may renegotiate rate terms & conditions, with increases not exceeding 200 bps, in the event of medium and long term loan extensions.

 Mpsponsor-Minibond - the Group has encouraged the creation of a closed investment fund, named "Fondo

Minibond PMI Italia", whose assets are to be primarily invested in minibonds issued by corporate clients, suitable from a legal and creditworthiness standpoint. Management of the fund has been outsourced to Finanziaria Internazionale Investment SGR. The Group will subscribe a portion of the fund, assist customers in the phases of issuance and subscription by the fund and contribute to placement of the relevant shares with qualified traders. In this latter regard, the first target of potential investors was identified in September and specific in-house training activities have been launched.

 Hedging derivatives – 1) definition of a standard method for the management of post-sales in the event of

changes in the underlying risk; 2) development of a specific IT tool to support the assessment of hedging purpose relating to OTC derivatives; 3) activation of new tools to support the Network in identifying customers potentially interested in the derivatives offering.

 Institutional Market – 1) repricing of demand deposits; 2) expansion of collection services; 3) further

development of “public utility” and “third sector” customers.

 Credit Guarantee and Funding agencies – introduction of a credit ceiling for SME customers with medium-high

credit standing in conjunction with the use of funding from the Cassa Depositi e Prestiti, with the aim of remixing the loan book through the use of subsidised funds and risk mitigation instruments.

 Pricing – implementation of the first operational phase of the project to incorporate the concept of risk-adjusted

value creation in the pricing of products, transactions and relations.

 Agrifood sector – implementation of a system of offers for livestock farming businesses through important

cooperatives in the industry.

 International banking – activities aimed at increasing the placement of foreign exchange risk hedging products

and broaden the portfolio of customers operating abroad. These activities have involved both small enterprises (Small Business customer segment) and larger-sized enterprises (Corporate customer segment) which, in particular, were targeted by sales & marketing initiatives such as forfaiting of exporters’ receivables backed by SACE (Export Credit Insurance Agency) and signature loans for the international business.

Interim Report on Operations MPS Capital Services Corporate finance

 Project Financing - despite the difficult economic and financial scenario, consolidated operations within the

sectors of infrastructure, utilities and renewable energy were maintained. In particular, the following deals were completed: 1) the “Brebemi” (Brescia-Bergamo-Milano) maxi-loan, a project financing structured as a syndicate loan of five leading domestic banks and institutions, including EIB, CDP and SACE, for the construction of a new motorway between Brescia and Milan; 2) support for the construction of a new hospital in Garbagnate Milanese (Milano).

Moreover, a project finance mandate was signed regarding the construction and management of two power plants in L’Aquila and Sedegliano (UD) and three banker's affidavits have been defined for projects in the areas of infrastructure and renewable energy.

 Syndication - The third quarter of the year saw the placement of a syndicated loan granted to Braccialini SpA and

launch of a syndication "on a best effort basis" in favour of Ba.Se. Srl (Battistolli Group) as well as acquisition financing “on a full-underwriting basis” granted to Lillo SpA.

 Acquisition Financing – since the start of the year, MPS Capital Services has acted as Mandated Lead Arranger of

certain transactions, including: 1) acquisition of the Caffita System Group (one of the leading market players in the production and marketing of coffee capsules and machines) by the private equity fund, Alpha; 2) acquisition of the hard-discount chain LD by the Lillo group (large-scale hard discount retailer).

Investment banking

 In the bond market, Mps Capital Services acted as Dealer in two Covered Bonds issued by the Parent Company,

for a total of EUR 600 mln. Activities as Placement Arranger for the 'Fondo Immobiliare Socrate' real estate fund continued, in relation to opening the sixth and last window for trading.

 With regard to advisory activities, MPS Capital Services was given the role of financial advisor to a leading Italian

construction player for the planning and structuring of an equity transaction concerning the business unit of the company that operates in the sector of special construction works.

Private equity

Private Equity activities, supporting the development of small and medium businesses with strong growth potential, are mainly carried out through the associate company, MPVENTURE SGR.

Subsidised financing

Continuation of activities as "Manager" of main national public aid for research and industrialisation on behalf of the Ministry of Economic Development and the Ministry of Education, Universities and Research, as well as operations launched at the end of 2012 as part of the 'temporary consortium of companies' (it. RTI), created with MCC-Banca del Mezzogiorno as lead arranger to manage the Guarantee Fund for SMEs, which sees Mps Capital Services involved in the promotion and development of subsidised financing.

In the third quarter of the year, an agreement was entered into with Cassa Depositi e Prestiti (CDP) and the Italian Ministry of Agricultural, Food and Forestry Policies for the management of initiatives to be put in place within the framework of ‘Supply Chain and Agri-food and energy agreements’.

MPS Leasing & Factoring

 Through its Parent Company, MPS Leasing&Factoring has joined the Fourth Agreement between the Italian

Banking Association (ABI) and the Cassa Depositi e Prestiti (CDP), thereby having the possibility to draw from the specific credit-ceiling pool for the financing of leasing transactions under favourable terms & conditions.

 Factoring activities continued with advances on receivables owed to companies by the Public Administration

through the use of loan acquisitions, with and without recourse (public debtors).

 On 20 September, the “Credito in Cassa” agreement was signed with Finlombarda for the Lombardy Region in

order to provide Lombard businesses, creditors of local institutions, with necessary liquidity by selling accounts receivable without recourse to factoring companies.

The Corporate centre