Levantamiento De Información

Figures in thousands of euro

Balance sheet

Loans to customers 5.962.121 5.219.442 14,2% 5.746.264

Direct funding (**) 4.020.506 3.912.316 2,8% 3.632.162

Net interbank position -3.424.663 -2.905.145 17,9% -3.757.498

Financial assets held for trading 522.818 441.894 18,3% 411.926

Financial assets at fair value 1.611.878 2.023.506 -20,3% 2.017.112

Available-for-sale financial assets 412.251 314.443 31,1% 326.250

Shareholders’ equity (excluding profit) 574.640 563.516 2,0% 569.342

Income statement

Net interest income 48.064 52.994 -9,3% 95.340

Dividend and similar income 7.837 3.715 111,0% 4.907

Net commission income 11.250 9.847 14,2% 23.505

Net profit (loss) from trading activity 6.152 1.926 219,4% 3.870

Net profit (loss) from hedging activity 128 5.539 -97,7% 7.220

Net profit (loss) from disposal/repurchase activity 8.405 36.897 -77,2% 36.541

Other net operating income/(expense) 2.782 3.789 -26,6% 4.320

Operating income 84.618 114.707 -26,2% 175.703

Staff costs -14.043 -12.126 15,8% -25.870

Other administrative expenses -9.580 -9.597 -0,2% -21.133

Net impairment losses on property, plant and equipment and intangible assets -502 -584 -14,0% -1.139

Operating costs -24.125 -22.307 8,1% -48.142 Net operating income 60.493 92.400 -34,5% 127.561

Net impairment losses on loans -985 6.317 n.s. 9.507

Net impairment losses on other assets/liabilities -810 - n.s. 4.205

Net provisions for liabilities and charges 3.969 500 n.s. 247

Profit/loss on the disposal of equity investments 10.510 1.668 n.s. 1.719

Profit (loss) on continuing operations before tax 73.177 100.885 -27,5% 143.239

Taxation for the period -24.503 -41.128 -40,4% -61.166

Profit for the period 48.674 59.757 -18,5% 82.073 Other information

Number of branches 7 7 - 7

Number of employees (***) 312 302 10 297

Financial ratios

R.O.E. annualised [profit for the period/shareholders' equity (excluding profit for the

period)] 16,94% 21,21% 14,42%

Cost/income ratio (operating costs/operating income) 28,51% 19,45% 27,40%

Net non performing loans/net lending to customers 0,82% 1,58% 0,98%

Net impaired loans/net lending to customers 0,58% 1,17% 0,88%

30.6.2007 %

change 30.6.2006

pro-forma (*) 31.12.2006

(*) Account is taken of the figures for Investimenti Piccole Imprese Spa merged into Centrobanca on 29th _{August 2006.}

(**) Including bonds subscribed by the Parent Bank amounting to 854,6 million (358,7 million as at 31st _{December 2006 and 358,4}

million as at 30th _{June 2006).}

(***) The number of employees as at 30th _{June 2006 takes account of the centralisation of ICT activities in UBI Centrosystem Spa (-1}

person).

The first half of 2007 ended with a net profit of 48,7 million euro compared to 59,8 million recorded in the same period of last year, which, however, benefited from extraordinary income of more than 9 million, attributable mainly to the disposal equity investments not held for private equity activities. Net of these non recurring items the results for the two periods would have been unchanged.

A decrease in net interest income was recorded (-4,9 million), principally as a result of the lower contribution from capitalisation policies (-7,5 million), which are being progressively reimbursed, and this was only partly offset by the decrease in the cost of funding, which amounted to 2,6 million euro.

Taken as a whole there was an increase of 8,7 million in dividends, net commissions, net profit from trading and other operating income, representing the growth and greater importance of corporate service business which complements traditional lending business.

The decrease by 5,4 million in net profit from hedging activity and by 28,5 million in the balance for disposal and repurchase of financial assets and liabilities (this had benefited in the first half of 2006 from gains on the disposal of non performing loans amounting to 28,3 million compared to 4,8 million in the first six months of 2007 and from gains on the disposal of non private equity business related shares amounting to 8,8 million) resulted in an overall decrease in operating income of approximately 30 million euro.

While other administrative expenses remained basically stable, the increase in staff costs by 1,9 million reduces to 1,2 million net of exceptional positive items amounting to approximately 0,7 million recognised in the first half of 2006.

Net impairment losses on loans, which were negative by 1 million euro compared to +6,3 million in June 2006, were affected by the different impact of the collective recognition of impairment on performing loans. The marked improvement in the risk indicators in 2006 had resulted in revaluations of more than 9 million, while the stabilisation of these in 2007 together with the increase in the size of the lending portfolio made the recognition of impairment amounting to 2,3 million necessary. Impairments amounting to 2,5 million had to be added to this, which were not directly related to the lending portfolio but to interests resulting from a private equity operation. These impairment losses were partially offset by revaluations made on a case by case basis amounting to 3,8 million.

The improvement in credit quality and the good performance registered by the credit recovery activity was also reflected in the net balance on the item provisions for liabilities and charges, which was positive by approximately 4 million euro.

The profits on the disposal of equity investments were attributable to the disposal of IW Bank shares (acquired in 2003 as part of private equity activity) in the operation to list that bank, which led to the reduction in the interest held by Centrobanca from 46,4% to 33,6%.

The lower impact in terms of taxable income from dividends and gains on the disposal of equity investments (the latter being subject to “pex” - participation exemption) reduced the tax rate from 41% to 33%.

As concerns the balance sheet, the reduction by 0,4 billion euro in financial assets at fair value, related to the disposal of capitalisation policies, was more than compensated for by the growth of 0,7 billion in lending to customers, attributable basically to the growth in structured finance transactions (acquisition & project finance). New lending in the first half amounted to 1,4 billion, an increase of 47% compared to the same period in 2006. Credit quality improved further: the ratio for net non performing loans fell to 0,82% while that for impaired loans fell to 0,82%.

As concerns liabilities, a gradual change from interbank funding to direct funding through bonds and certificates of deposit, mainly with the Parent Bank, is in progress in accordance with the guidelines of the 2007-2010 Industrial Plan. At the end of June 2007 direct funding from customers had exceeded 4 billion, an increase of 2,8% on an annual basis and of 10,7% compared to December 2006.

Again at the end of the first half capital ratios consisted of a tier 1 ratio (tier 1 capital/risk weighted assets) of 6,78% and a total capital ratio (supervisory capital/risk weighted assets) of 9,11%.

Finally on 18th _{May 2007, the Bank of Italy communicated the start of an inspection of a}

general character, in accordance with Art. 54 of Legislative Decree No. 385/1993, which should be completed by the middle of September.