1

2 0 0 3 R E S U L T S

2 0 0 4 - 0 5 T A R G E T S U P D A T E

M a r c h 3 1, 2 0 0 4

2

GROUP NET INCOME (€ mn) 95.5 78.0*

+22.4%

ROE (goodwill adj.) 13.0% 11.1%

+190 bp

ROE 10.2% 8.9% +130 bp

COST / INCOME 67.0% 67.1% ---

NET NPLs RATIO 1.14% 1.06%

+ 8 bp

2003 results at a glance

2003 2002 Change

* 2002 net income has been adjusted for 2002 Eptaconsors extraordinary dividend

3

Business segment results

2003 2002 PF 2001 PF 2003 2002 PF 2001 PF

Retail banking 126 123 151 56% 62% 72%

Consumer credit 75 54 41 33% 27% 19%

Product companies 20 19 13 9% 10% 6%

Gross income* 225 199 211

as % of gross income

Service companies 5 5 4 2% 2% 2%

Tax collection -1 -2 2 0% -1% 1%

* € mn - Goodwill and taxes excluded

4

Total income

2003 total income € 1,009.5 mn [+5.7%]

% change has been adjusted for 2002 Eptaconsors extraordinary dividend

588.4612.2

2002PF 2003

+4.0%

€ m

n

Interest margin

333.6

373.0

2002PF 2003

+11.8%Non-interest income

€ m

n

Dividends 9.3Cos at equity 15.0

Banks’ spread compression

Positive trend for companies at equity

Strong contribution from consumer credit Greater commissions and trading income, less dividend

payouts

5

Interest margin

* Mark-up + mark-down

3.78%

3.75%3.75%

3.84%3.85%

2.15%2.15%2.15%

2.53%

2.94%

4Q ’02 1Q 2Q 3Q 4Q’03

Bank customers’ spread*

3 months Euribor

147.6 145.5150.6

144.7

€ m

n

2002 quarters

Avg. total spread

3.29%

150.7 152.3155.3 154.0

2003 quarters

Avg. total spread

3.14%

€ m

n

6

Non-interest income

49.4

88.5

57.2

96.2

AUMCollect. &

pay’t serv.

+8.7%

+15.8%

2002PF

2003

Other services

23%

Tax collection

10%

Guarantees2%

AUM39%

Collect.& payment services

23%

Trading3%

Net commissions

+7.9%

Net other inc.

+6.0%

Trading inc.

+157.3%

+11.8%

230.2 248.4

93.498.9

25.710.0

2002PF 2003

€ m

n

333.6 373.0

7

Total costs

Goodwill excluded - * The % change is in comparison to “Ex Findomestic 2002PF”

659.1676.0

557.2

+2.6%

€ m

n

2002PF 2003 2003(ex

Findomestic)*

+1.1%

2003 2002 PF Change CAGR

ExFindomestic

Personnel exp. 378.7 370.1 2.3% 0.9%

Other costs 236.0 223.7 5.5% 4.2%

Depreciation 61.3 65.3 -6.1% -6.3%

Cost control achieved Personnel expenses slightly affected by labour contract

renewal Restructuring costs better then expected

8

Operating and net incomes

€ mn - % change has been adjusted for Eptaconsors 2002 extraordinary dividend

95.5121.7

333.5 116.2

91.7 15.1 11.2

26.2

Operatinginc.

Provisions Charges &other

Extr. items Tax &minorities

Net incomeadj.

Goodwill Net income

+12.8%+30.4%

+16.8% +22.4%

+8.3%-13.5%

-44.1%

Clear improvement in operating income

Better tax rate

Prudent provisions management

Assets streamlining

9

Total financial assets

12,340 13,294

13,956 14,543

2002 2003

€ m

n

Indir. Funding

+4.2%

Direct funding

+7.7%

26,296

27,838

+5.9%

8,198 8,843

5,758 5,700

2002 2003

Assets under

mng. +7.9%

Assets under

custody -1.0%

Bonds +14.9%

Sight

borrowing +7.7%

Other -12.7%

6,861 7,392

4,0634,666

1,2361,416

2002 2003

10

Assets under management

Discr. Accounts

+20.5%

Mutual funds

-3.7%

4,471 4,306

1,948 2,347

1,7792,190

2002 2003

8,198 8,843

+7.9%

Insurance products

+23.1%

44.6% 37.6%

28.0%25.6%

36.8%27.3%

2002commissions

2003commissions

27% 25%

49%

24% 22%

55%

Portfolio composition

2002 2003

Discr. accounts Insurance prod. Mutual funds

€ m

n

11

Customer loans

31.3%

24.5%

20.0%

21.2%

32.3%

25.5%

19.4%

20.5%

2.3% 2.9%

2002 2003

Small Business

Corporate

Consumer Credit

Retail

Public admin.

12,233

13,101

2002 2003

€ m

n

+7.1%

Good increase despite non-favourable economic cycle

High portfolio balance thanks to consumer credit

Real estate financing (+ 13.6%): an important contribution

Volumes moved towards retail and P.A.

12

Credit quality

38.3%

18.1%

12.6%

27.7%

34.6%

19.7%

12.3%

30.2%

3.3% 3.4%

2002 2003

Controlled credit risk loans 69%

+240 bp

Self-liquidatingCollateral sec.

Not secured

Personal sec.

OtherNet NPLs/Net loans

Gross NPLs/Gross loansNet NPLs cover ratio

53.5%54.4%52.6%

2001 2002 2003

2.40%2.28%2.36%

1.14%1.06%1.14%

Credit quality is unchanged Increase in guaranteed and self-liquidating loans The internal rating system shows more loans in “good

shape”

13

CORPORATE & PRIVATE BKG.

RETAIL BRANCHES

RETAIL

CORPORATE CENTERS

117 staff

109 portfolio managers

13 centers*

14 special prod. advisors 8 credit managers

12 branch managers

PRIVATE BKG. CENTERS

48 portfolio managers

9 centers*

11 staff

Network restructuring program

704 staff

366 Family portfolio mgrs

278 branches*

301 Personal portfolio mgrs 272 Business portfolio mgrs

254 branch managers

STRUCTURE COMPLETED by SEPTEMBER 2003

* Banca CR Firenze only

14€ mn - * Core capital - No preference shares issued

Capital ratios

2003 2003 1H 2002 2003-02change

Tier 1* 895.6 842.5 896.5 -0.1%

Tier 2 816.7 642.1 608.5 34.2%

Deductions 92.0 97.6 114.6 -19.7%

Regulatory capital 1,620.3 1, 387.0 1,390.4 16.5%

Risk weighted assets 15,753.4 15,232.3 14,434.0 9.1%

SOLVENCY ratio 10.61% 9.30% 9.80% 0.81 bp

TIER 1 ratio 5.68% 5.55% 6.21% - 0.53 bp

15

C A S S A D I R I S P A R M I O

D E L L A S P E Z I A

16

Strategic rationale

"

"

"

"

"

CR Spezia

ParmaCR Mirandola

Bologna

CR Firenze

Territorially adjacent to the area currently presided by Banca CR Firenze Group

The opportunity to rationalize the limited number of overlaps

Ideal platform for West-East development

Area of the city of Parma Possibility of joining forces with the CR

Mirandola area

Asset structure efficiency enhancement within an overall group management context

CR Spezia

17

Strong franchise - Market share*

funding 46.8%, loans 25.5%, branches 38.%

High level liquidity loans/funding ratio at 62%

AUM/Indirect funding ratio at 64%progressive switch to Group companies’ products

Company’s main features

Governance rules that will allow real efficiency enhancement Majority of members of the Board of Directors and the

Executive Committee

Appointment of the General Manager

Main characteristics

* Main business territory (Province of La Spezia) - 30.09.2003

CR Spezia

18

Actions

Rapid Group integration

Extension of the Banca CR Firenze business model Centralization of key functions, such as

- Planning & Risk Management- Finance- Auditing- Asset Managment- Accounting

Support for innovative commercial actions

Transfer of decision-making powers to the local level

Strengthen risk control Enrichment of the product range

CR Spezia

19

NET INCOME 2.9 5.0 -42.0%

ROE 1.9% 3.3% -140 bp

COST / INCOME 75.0% 78.1% -310 bp

TAX RATE 75.9% 60.6% +1,530 bp

2003 results at a glance

2003 2002 Change

TOTAL FIN. ASSETS 2.955 2,871 +2.9%

of which AUM 930 848 +9.7%

CUSTOMER LOANS 845 844 ---

Net NPLs ratio 3.2% 3.4% -20 bp

€ million

20

76%

49%

Targets

63.0%

75.0%

2003 2006

Tax rate

Cost/income

2.9

15.5

2003 2006

ROENet income

€ m

n

1.9%

9.7%

Total financial assets +7% CAGR ( AUM +11% )

Customers loans +12% “

21

2 0 0 4 - 0 5 T A R G E T S U P D A T E

22

GDP 0.5% 1.6% 2.3%

2003 2004 2005

Old* 1.4% 2.6% 2.5%

Macroeconomic scenario

Domestic demand 1.3% 2.1% 2.9% Old* 2.0% 2.5% 2.5%Disposable income 1.3% 1.8% 2.3% Old* 1.4% 2.0% 2.2%

Lending 6.3% 6.5% 6.2% Old* 5.4% 6.2% 6.1%Lending rate (avg.) 5.0% 4.7% 4.8% Old* 5.3% 5.6% 5.9%Direct funding 4.3% 4.4% 4.3% Old* 4.7% 5.1% 5.1%

Source: Prometeia, December 2003 - * Figures underlying 2003-05 Business Plan

23

TOTAL COSTS 722.4 780.0 + 2.6% +3.2 % +0.8 %

2002 PF 2005 Change - New Change - Old FINDOMESTIC CAGR CAGR Excluded - CAGR

Personnel expenses 407.8 428.0 + 1.6% + 1.4 % + 0.5 %

Other costs 246.5 284.0 + 4.8% + 5.7 % + 2.1 %

Depreciation 68.1 68.0 FLAT + 5.0 % - 1.3 %

Cost breakdown update

€ million

24

EPS and Cost/Income

0.115

0.0970.088

0.104

0.085

0.0760.084

0.03

0.14

2002 2003 2004 2005

With CR Spezia* Without CR Spezia

62.6%

66.3%

70.2%

65.1%

67.6%

67.1%67.0%

50%

80%

2002 2003 2004 2005

New Old

EPS Cost/Income

* EPS takes into account the capital increase connected to the acquisition

25

F I N D O M E S T I C B A N C A

C O N S U M E R C R E D I T

26

TorinoMilano

Bologna

Bari

Reggio C.Palermo

Sassari

Udine

Cosenza

PerugiaAncona

VeronaPadova

GenovaFirenze

Roma

NapoliLecce

Pescara

Salerno

Cagliari

Catania

2003 results at a glance

2003 LEADING FINANCIAL COMPANIES

FINDOMESTIC 4.6

FIATSAVA 3.0

AGOS ITAFINCO 2.7

DEUTSCHE BANK 2.4

FIDITALIA 1.8

GR. FINEMIRO 1.7

BIPIELLE DUCATO 1.6

FINCONSUMO 1.4€ billion

Net income (euro mn) 90.6 (+45%)

ROE 25.7%

Market share 13.4%

S&P ratings Long term A+ (1 notch up)Short term A1 (positive outlook)

Main figures

27

Volumes and credit quality

1,127

834

994 1,015

1,310

968

1,2031,138

Revolvingcards

Personalloans

Homeappliances

Vehiclefinancing

20022003

Eu

ro

mn

New business

1.15%

1.58%

1.88%

1.12%

0.95%

1.00%

1.15%1.22%

1.39%

1.1%

2.0% 1.8% 1.6%

2.9%

1.8%

0.4% 0.3%

2.9%

1995 1996 1997 1998 1999 2000 2001 2002 2003

NPLs ratio Italian GDP annual increase

2003 / 2002

+16.4%

28

Growth comparison

11.1%

31.5%

24.8%

12.1% 12.1%

21.0%

16.1%16.3%

Revolvingcards

Personalloans

Homeappliances

Vehiclefinancing

FindomesticMarket

2003 New business growth

1,310

442

218

658

Ag

os

DB

Cards - Volumes

Cart

as

i

Fin

dom

esti

c

10.0

3.9

2.2

5.1

Fin

dom

esti

c

Cart

as

i Ag

os

BP

L

Cards - Transactions 968

523463

684

Fin

dom

esti

c

DB

Ag

os

BP

L

Personal loans - Volumes

€ million € million /000,000

29Source: ASSOFIN and Prometeia

The Italian market: recent developments

16.0

14.4

0

10,000

20,000

30,000

40,000

50,000

60,000

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

E

-10

0

10

20

30

2.1

-0.8

Total outstandingConsumer credit Durable goods consumption

% -

CA

GR

€ m

n

0

2002

2003

E

30

A prospective outlook

2012EAbsolute change CAGR

1 GermanyPersonal loans GermanyRevolving credit 181,6 GermanyRevolving credit 158,6

2 UK Personal loans UK Revolving credit 150,9 France Revolving credit 112,2 3 GermanyMotor finance UK Personal loans 145,9 Italy Personal loans 102,8 31%4 Spain Personal loans France Revolving credit 136,1 Italy Revolving credit101,4 26%5 UK Revolving credit GermanyMotor finance 122,8 UK Revolving credit 78,2

6 France Personal loans Italy Revolving credit113,1 France Personal loans 63,5

7 UK Motor finance France Personal loans 111,7 Spain Revolving credit 39,6

8 France Revolving credit Italy Personal loans 109,9 UK Personal loans 38,5

9 GermanyRevolving credit Spain Personal loans 99,5 GermanyMotor finance 35,8

10 France Motor finance GermanyPersonal loans 84,2 Spain Personal loans 18,8 11 Italy Motor finance UK Motor finance 62,1 UK Motor finance 18,6

12 UK Other balances Spain Revolving credit 49,5 Italy Motor finance 12,7 13 Spain Motor finance

2002E

113,2

107,4 86,9

80,6

72,7

48,1

43,5

23,8

23,0 22,7 21,8 18,1 17,7 Italy Motor finance 34,5 UK Other balances 11,6

14 ItalyRevolving credit 11,6 France Motor finance 31,4 Spain Motor finance 9,2

15 Spain Revolving credit 9,8 UK Other balances 29,8 France Motor finance 8,7

16 France Other balances 8,8 Spain Motor finance 27,0 France Other balances 3,5

17 Italy Personal loans 7,1 France Other balances 12,4 Spain Other balances 2,9

18 Spain Other balances 4,4 Spain Other balances 7,4 GermanyOther balances 0.5

19 GermanyOther balances 1,0 GermanyOther balances 1,5 GermanyPersonal loans 28,9-

V O L U M E S

(€ billion)

Source: Goldman Sachs - 2003, October

31

B A C K - U P

32

Carinord2 fanout costs 6.7

CR Spezia Foundation 38.22% 162.2 2.67

CR della Spezia - The deal

Banca INTESA 29.87% 69.0 1.44

Stake Euro mn PBV x

TOTAL 68.09% 237.9 2.20

Dedicated capital increase mispricing -19.3 TOTAL 68.09% 218.6 2.02

Put option 31.9% 58.3 1.15 TOTAL 100.00% 276.9 1.74

Date* Target Buyer PBV28-Mar-01 B. Pop. Trentino BPL 4.902-Feb-00 Banca 121 MPS 4.319-Dec-00 B. Legnano B. Pop. Milano 3.929-Nov-00 CR Forlì SPIMI/B. CR Firenze 3.909-Mar-00 B. dell'Umbria Rolo Banca 1473 3.222-Apr-03 B. Pop. Cremona BPL 3.115-May-00 CR Pescara BPL 3.101-Feb-02 CR Bolzano BPL 3.019-Apr-00 B. Pop. Crema BPL 3.004-Jan-01 CR Mirandola B. CR Firenze 2.714-Jan-00 CR Carpi Rolo Banca 1473 2.707-Dec-02 B. Chiavari BPL 2.621-Nov-00 Carime BPCI 2.606-Jan-00 Cr Imola BPL 2.517-Jul-03 CR Spezia B. CR Firenze 2.214-Dec-02 CR Prato B.Pop.Vicenza 2.217-Jul-03 CR Carrara Banca Carige 2.010-Jun-00 B. Napoli SPIMI 1.903-Nov-00 B. Pop. Ancona B. Pop. Bergamo 1.820-Dec-01 B. Cardine SPIMI 1.715-Jan-02 CR Pescara BPL 1.625-Oct-00 Cardine SPIMI 1.529-Nov-00 B. Sardegna B. Pop. Em. Romagna 1.1

33

Asset under management

* Net inflows, source: Assogestioni ** Business territory, source: Prometeia Dec. 2003

2003 LEADING ASSET GATHERERS*

Sanpaolo IMI 5,615 BPU 2,920

ANIMA 2,231

BANCA CR FIRENZE 1,632

CREDEM 1,491

MPS 1,449

B. LOMBARDA 1,333

POSTE ITALIANE 1,288Euro mn

11.1%

12.6%12.8%

9.6%

7.1%

5.9%

7.4%

10.9%

2000 2001 2002 3Q 2003

AUM market share** (ex insurance products)

Insurance product market share**

34

3.2%

4.7%

6.0%

6.7%

10.9%

11.0%

15.7%

0.0% 8.0% 16.0%

Italy

Belgium

France

Spain

Germany

U.K.

U.S.A.

5.8%

7.5%

10.1%

10.8%

17.4%

18.9%

23.0%

0.0% 12.0% 24.0%

Italy

Belgium

France

Spain

Germany

U.K.

U.S.A.

2002 - Consumer credit / G.D.P.

2002 - Consumer credit / Household consumption

Consumer credit - Market comparison

35

0%

5%

10%

15%

20%

25%

30%

1Q'98

2Q 3Q 4Q 1Q'99

2Q 3Q 4Q 1Q'00

2Q 3Q 4Q 1Q'01

2Q 3Q 4Q 1Q'02

2Q 3Q 4Q97.0

100.0

103.0

106.0

109.0

112.0

Household consumption

New vehicles

Furniture

Personal loans

Credit cards

Electronics

Source: ASSOFIN and Prometeia. 1Q ’98 household consumption=100

Consumer credit - Low price sensitivity

36

One of the best performer since the enactment of the

Italian “Securitisation Law” (1999)

Perseo Finance: NPLs securitisation

CUMULATED RECOVERIES

0

20000

40000

60000

80000

100000

120000

Quarters

Eu

ro A

mo

un

ts

Total recovered

Scenario 1

Scenario 2

Scenario 3

Scenario 4

37

Euro 521 million of “in bonis” residential mortgage

loans: no value adjustment required so far

CR Firenze Mutui: mortgage loans securitisation

Class Face amount/ million

YieldUnderwriting

priceRating

Fitch/Moody's/S&P

A1 51.3 Euribor 3 m + 19 bp 100 AAA / Aaa / AAA

A2 425.6 Euribor 3 m + 28 bp 100 AAA / Aaa / AAA

B 28.2 Euribor 3 m + 75 bp 100 A / A2 / A

C 7.7 Euribor 3 m + 145 bp 100 BBB / Bbb / BBB

D 8.2 Floating BCRF portfolio 100 ----

38

2 0 0 3 R E S U L T S

2 0 0 4 - 0 5 T A R G E T S U P D A T E

M a r c h 3 1, 2 0 0 4