00_Giovanni Bossi’s editorial01_The Group’s excellent economic-financial results in the first 9 months of the year02_Ready, set, GO! The contomax current account

kicks off on 7th January! 03_StreetNetwork: a day of art, music and dancing that involved the general public and the Web04_3.0 Bank: WebTV and much more05_Social recruiting catches on

New job openings at Banca IFIS06_What are “Non Performing Lo-ans” exactly?07_Enterprises’ World08_On the agenda09_Contacts

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04 2

01231 December 2012_QuarterlyNewsletter 4

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Giovanni Bossi’s editorial2012. A year of very important growth and of

breaking off with the past. Excellent profitability,

excess liquidity and first-rate equity are the three

pillars underlying the increase in the Bank’s figures.

However, the year that has just ended should be remembered,

above all, for what the Group planned and achieved, building

its future with perseverance and dedication, with the

goal of writing a small new page in the never-ending book

about the banks’ role in Italy and the whole of Europe.

A successful year, then. The best year yet in Banca

IFIS’s history. The result of proper choices and ideas,

interpreted by people who, with their energy, desire,

intelligence, expertise and, above all, soul and passion,

were able to give the company’s activity the right pace.

Today, the Group can rely on a strong identity. It pursues

its objectives without hesitation, renewing them and

increasing its rise ambitions as soon as possibilities. The

ability to quickly renew itself; to look at other contexts

suggesting new answers; the push by people who have

shared stimuli as well as new ways of working, continually

putting themselves on the line, with transparency and

a vision of the future: these are the levers for change.

2013 will be a year full of challenges. The little or no growth

of economies, together with the necessary fiscal compact

policies in both the public and private sectors, lead to fears

that the economic trend will worsen. But the Bank will be

facing these challenges being fully prepared and solid, with

the intention of continuing to strengthen its team, developing

the skills of its human resources and investing in their

capabilities so they may perform their jobs better and better.

Reacting to changes in an increasingly quick and effective

manner will be crucial: in such an unpredictable context,

the ability to react will be more important than the ability

to predict. It will also be important to maintain a high

sense of responsibility towards all those involved: from

enterprises to savers, from colleagues to stakeholders.

Banca IFIS knows how to recognize good work in the companies

it finances, and has to continue unceasingly in their selection,

confirming its commitment to virtuous enterprises. The

Bank supports growth instead of creating it. It works side by

side with the company that works in a virtuous fashion, and

does not make choices for the entrepreneur. Lastly, the Bank

chooses to act in order to help those who deserve it and to

reject those who do not. This Banca IFIS’s task, this is the

objective that will lead the bank to grow quickly among the top

five players on the market. With a focus on enterprises that

innovate and export; on those that have receivables due from

the Public Administration and have an eye on encouraging

the completion of bankruptcy procedures, releasing them

from tax receivables and contributing to the recirculation

of capital resources that are important for growth.

Major innovations for the NPL division, wich concentrates

on the management of accounts towards counterparts

who are families often experiencing financial troubles.

New instruments and processes will gradually take shape

during the year, and the search for sustainable solutions

will lead to a stronger commitment towards the hundreds

of thousands of people towards which the Bank boasts a

credit. Sustainability, reliability and mutual respect will be

the passwords for the Group’s presence in the credit recovery

sector, where much can be done to improve the quality of life

of those who have had or are currently experiencing a difficult

financial situation, often for reasons beyond their will.

New challenges in retail deposits: the most delicate one is the

launch of the contomax crowd bank account, which joins the

rendimax savings account and will allow us to offer our clients

something that is completely new, through a simple and honest

relationship. Excellent service, internal efficiency that means

industrial product costs cut to a minimum, innovation in the

product range are and will remain the pillars of our deposits.

On a difficult market, the Bank shows up for the new

year with what it takes to grow and contribute, as

always, to the economy of the system. Our commitment

and our promise to do our best in order to be stronger,

and to use our new strength to do even better.

Giovanni Bossi, CEO Banca IFIS

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03

01 The Group’s excellent economic-financial results in the first 9 months of the year

The Banca IFIS Group continues to grow in

the third quarter, thus confirming the trend

of the previous interim reports. The third

quarter figures were approved by the Board

of Directors this past 30th September 2012.

The main data highlighted by the results include

a 100% increase in the banking income, up

to € 167.6 million in the first nine months of

the year (with an 84% increase in the third

quarter). Strong growth made possible thanks

to the positive contribution of all Group

sectors. Net banking income grew by 115.9%

to € 140.1 million, also increasing in the third

quarter by 88.1%. A strong reduction in the

costs/banking income ratio is confirmed once

again, which falls from 38.8% down to 30.6%.

The increase in net profits is especially

noteworthy as it grows to € 57.8 million, an

increase of 175.5% in the first nine months of

the year (for the third quarter, it settles at € 20.2

million, a 154.1% increase). This is in addition

to the constant success of retail deposits, which

increased by 75.6% to further strengthen the

Bank so that it can face the last part of the

year with determination and peace of mind.

The Group’s Net Equity is also on the rise, from

€ 196.3 million as of 31st December 2011

to 284 million as of 30th September 2012.

In the area of commercial loans, during the

first nine months of the year the number

of financed customers increased by 12%,

thus proving that the Bank supports worthy

companies, including those with receivables

due from the Public Administration.

In the sector for non-performing loans, a strong

structural change has taken place within the

market, and Toscana Finanza, which joined the

Group on 1st July 2011, has shown its ability

to seize new opportunities: at the beginning

of the year, important portfolio purchases

were made from two major international

banking groups, while a third agreement was

signed at the end of June. Throughout the

nine months, the activity also focused on

strengthening the processes, resources and

instruments applied in the management of loan

accounts, which total approximately 400,000.

rendimax, Banca IFIS’s savings account,

continues to be a huge success, in terms of

both the increase in the number of customers,

more than 60,000 at the end of the period,

and of the strong increase in deposits. The

size of the securities portfolio continues

be significant, equal to € 4,612.7 million at

the end of the period, mostly short-term

and fixed-rate or short/medium-term and

variable rate, of which € 4,462.3 million refer

to Italian government bonds. Investing in

securities allows the Bank to make profits

suited to increasing its Equity, without taking

away financial resources from corporate loans

or having to resort to capital increases.

“The third quarter

confirmed the growth

trend from the first half

of the year. All business

units have achieved

impressive results by

working with resolution

and enthusiasm to seize

all the opportunities

offered by an ever-

evolving market.”

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02 Ready, set, GO! The contomax current account kicks off on 7th January!

contomax, Banca IFIS’s crowd current account,

is the result of a dialogue with the Internet; it

will be operational as from 7th January, and

can be found on the website www.contomax.

it. Innovative, simple, safe and high-yielding

right from the start, it offers solutions in line

with the on-line world from which it originates.

The main services are available immediatly:

advanced Bancomat (cash card that can also

be used for on-line purchases on the Maestro

circuit); payment of utility bills and Telepass

motorway tools, and transfer of funds from

one account to the other, in addition to mobile

phone top-ups. Security is ensured by the Token

system, which generates single-use codes.

Internet users were precisely the ones to

determine, by participating in a series of online

surveys published on social networks and on the

website, the basic services that contomax had to

offer right from the word “go”, with over 12,000

preferences being expressed. contomax thus

aims to satisfy the savers’ needs. Moreover, it

allows them not to miss out on the yield, thanks

to a set of interest rates for the deposited sums.

contomax Free, the non-term account formula,

will offer an interest rate of 1.50% with quarterly

payment, while the contomax Now term

accounts, with pre-paid interest and maturity

dates from 1 to 24 months, offer interest

rates ranging from 2.85% to 3.85%. contomax

Up, on the other hand, offers term deposits

with deferred interest payment for maturity

dates from 3 to 24 months, with interest rates

from 3.10% to 4.35%. Lastly, the contomax

One option which, in line with rendimax Like,

allows customers to withdraw the desired sums

with a 33-day advance notice, with a 3.5%

yield. What about the costs? This is a low-cost

account, with no opening or management

fees, that also includes an unlimited number

of transactions throughout the year. The

debit card and Internet banking are also free

of charge, as well as the first 5 withdrawals

of the month from ATMs located in Italy.

Contomax’s social network presence

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03StreetNetwork, the ideas contest organized

by Banca IFIS in order to give contomax,

the crowd current account of the future, its

graphic layout, has come to an end, and on 3rd

December, Riccardo Bernucci, the Internet’s

favourite, was able to recreate his work live at

a truly amazing location: the city of Venice. The

Santa Lucia railway station provided the setting

for a day to remember, during which Riccardo,

professionally known as New-R, recreated

the graphic layout of contomax step by step,

representing its concept of network and

collaboration… But the artist was not alone.

Around him, a crew of colourful and young hip

hop dancers performed a series of flashmobs

that gave rhythm to the day and further

involved the crowd of bystanders who stopped

to watch both Riccardo at work and the dancers.

All broadcast in real time on the Web, in the

perfect 3.0 spirit of the project, thus spreading

the StreetNetwork mood in the virtual world

as well: fast, immediate and with high impact.

Riccardo Bernucci’s artwork passed the selection

by a specialized panel of judges, led by the art

critic Fabiola Naldi, and then, together with the

other finalists, faced the Web’s opinion. 22 years

old, Riccardo is currently studying industrial

design at the Faculty of Architecture of Genoa.

He approached the art of “writing” when he was

just 16 years old. We asked him where he got

the inspiration for his artwork. “Looking at the

website and contomax graphics, I immediately

came upon an idea that would be suited to the

requests. In my opinion, the lettering needed

to be changed, keeping its communicative

power but at the same time turning it into

a simple graphic sign. So I took the words

which were important to me for the contest:

“network”, “Internet” and “information”. I put

them together on a piece of paper, in a simple

and spontaneous manner. As Crozza says – if

you get it, it’s a chair, if you don’t, it’s design!!”

There were also some unexpected turn of

events during the day: after eight hours of

hard work, two “thieves” stole the artwork.

There were moments of despair, but Riccardo

kept his cool. During the official awards

ceremony held at Villa Furstenberg, Banca

IFIS’s headquarters in Mestre, the artwork

reappeared, returned by the likeable “thieves”,

to the joy of everyone attending the ceremony.

The event was hosted by Mauro Lupi, expert in

communication and social media marketing.

We would like to thank all those who made

this very special day possible, part of a project

that has originated and will continue to grow

thanks to the interaction with the community

and with the Internet: thanks to the desire to

exchange views with the users and get them

involved, for a crowd and co-creation future.

StreetNetwork: a day of art, music and dancing that involved the general public and the Web

Photos of the live event in Venice

www.streetnetwork.itfacebook.com/StreetNetworktwitter.com/StreetNetworkIT

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3.0 Bank: WebTV and much more04Banca IFIS, in line with its innovating nature,

has launched an instrument that will allow

all Internet users to stay up-to-date with

activities being carried out by the Group’s

various divisions: tvchannel.bancaifis.it.

The platform has a twofold function.

It represents a “showcase” that brings together

all the videos taken during the presentations

of financial data, events in which the Group is

involved and the promotion of new products

associated with the Bank. Moreover, in time it will

become the official Academy within the Group,

with contents that will be constantly updated:

an e-learning service, consisting of video-

lessons, tutorials, conferences and workshops,

will be available to all registered employees.

WebTV is only the latest step taken in the

world of the Web by Banca IFIS. Below, a

detailed list of the channels used by the Group.

•LINKEDIN: Banca IFIS has over 2,300

followers on the website par excellence

dedicated to professional networks. Moreover,

Banca IFIS was mentioned precisely

by LinkedIn as a success story in Italy.

•FACEBOOK: a total of 5,000 fans on the

pages of the various rendimax, contomax

and Banca IFIS profiles, where savers

and fans interact with us on a daily basis.

•TWITTER: 1,000 followers for the contomax,

rendimax, Banca IFIS and MondoPMI profiles.

•YOUTUBE: 39 videos uploaded, with 28,000

visualizations.

The Group can also be found on social networks

such as Pinterest, Google+ and Slideshare.

Not to mention the blogs Salvarisparmio.com

and MondoPMI.com, dedicated, respectively,

to the two topics of savings and Small and

Medium-sized Enterprises. In the first case,

current events, analyses covering a wide

range of topics and readings accompany

Internet users an additional point of view

on evaluating expenses and investments and

also gives small tips on savings. MondoPMI,

on the other hand, supports the exchange of

ideas and is a useful source of information: a

meeting point to talk about credit, corporate

financing and administrative news. During

the Christmas holidays, through the Natale

Impresa initiative it voiced the entrepreneurs’

desires and requests, in order to identify ideas,

needs and creativity of professionals working

for Small and Medium-sized Enterprises

(over 4,500 unique visitors during the pre-

Christmas period, a 60% increase in blog

visits, and a reached base of Twitter users of

approximately 60,000 contacts). Thanks to

the ideas submitted by the visitors, a series of

initiatives will be launched (both of a publishing

nature and in the form of events) during 2013.

The first project is the section dedicated to

interviews with entrepreneurs, which aims at

highlighting success stories and sharing the

entrepreneur’s stories, choices and journeys.

The Group’s latest social initiatives

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05 Social recruiting catches onNew job openings at Banca IFIS

The dynamic evolution of the Banca IFIS

Group continues, along with the search for

talent to add to its workforce. The Bank

addresses both youngsters, for whom it

provides training and professional growth

within its organization, and senior figures,

who can contribute their experience.

Currently, there are various job openings:

Oracle Database Administrator, Senior Software

Tester and IT Security Systems Analysts – all in

Venice; Customer Manager - Banca IFIS Division

in Brescia; Sales Manager - Banca IFIS Division

in Bari, Triveneto and Milan; Export Sales

Manager – International Division again in Milan.

We would like to develop the Linkedin function

in terms of the Banca IFIS recruiting campaign.

The Group joined the world of Linkedin in

Autumn 2011, when it created a page where

all of its divisions and brands are represented.

Personnel searches are identified by division.

Videos are widely used for employment

searches, with the employees themselves

being featured in the videos as they explain

the requirements for the professional figures.

According to the words of Giovanni Bossi,

C.E.O. of Banca IFIS: “We feel that this creates

a long-lasting value for the entire company,

conveying what it really means to work for our

Group in a more complete and direct manner.”

The challenge that the Bank has set for itself in

the use of social media is to create long-lasting

value by listening to the market and seeking its

involvement, putting the ability for a reaction

to, and adaptation of, its products on the line.

Work with us

Details of these

positions can be

found on the website

and in the Careers

section of the

Linkedin page

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08

06 What are “NPL” exactly?The non-performing loans market in Italy is

growing and has reached a considerable size.

It can be studied from various angles: From

the demand side, we can identify all those

operators willing to purchase or process the

“goods”, which are the loans; From the supply

side, we can identify all those subjects that

disburse loans and then see these turn, for

various reasons, into non-performing loans.

If we analyze the loans themselves, they vary

depending on the underlying product and on

the debtor. This allows us to understand how

difficult it is to precisely identify the NPL

market. In Italy, there is a small number of

local operators and an ever-growing number of

foreign operators with high levels of liquidity

and a developing industrial capacity. NPL

means finance and industry, permanently

united, because when one of the two aspects is

missing, profit margins are just a pipe dream.

Finance, in relation to the ability to operate on

the acquisitions market, ready to invest huge

amounts of money, that will be tied up long-

term, according to the type of assets purchased

and on management skills.

Industry, in the ability to enrich the dossiers

bought from an information standpoint and to

increase their likelihood of a positive outcome.

As often happens in the financial sector, the

Italian context is still behind the Anglo-Saxon

one. In the United States and the United

Kingdom, companies are operating in a market

that does not seem to show any signs of a crisis.

One example is the Portfolio Recovery

Association, an American company whose

primary goal is investment in unsecured retail

portfolios; since its founding, this company

has acquired 2,500 portfolios, for a total

of 30 million accounts, managed by 3,000

employees, with excellent results (in 2011,

it posted proceeds of USD 705 million and

a net profit of about USD 100 million). PRA

identifies its ability to convert information

about loans and debtors into operational

recovery decisions, describing information as

“raw material” and decisions as the “finished

product”, as the main reason for its success.

We can say that the development of skills in

the dynamic management of loans and in

the workout process will be a critical success

factor and must be accompanied by a portfolio

segmentation aimed at improving the quality

of data and at setting up successful recovery

strategies. And this is most certainly the

approach and the direction that both Toscana

Finanza and IFIS are taking, with over 20 years of

experience, standing apart thanks to their ability

to evaluate and purchase significant portfolios.

Furthermore, the Group has set up an excellent

database containing specific information about

hundreds of thousands of accounts. Today,

Toscana Finanza has its place among market

leaders with a business model based on the

ability to manage both the loans acquisition

and management phases excellently. At the

beginning of the year, important portfolios

were purchased from two large international

banking groups, while a third agreement was

signed at the end of June. During the year, the

activity intensely focused on strengthening the

processes, resources and instruments applied

in the management of loan accounts, which

totalled 400,000 at the end of the period.

by Andrea Clamer

Head of the Toscana Finanza – NPL Division

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07 Enterprises’ WorldEncouraging meetings, exchanges, interaction

and conversation means building value. And

doing it together with other entrepreneurs,

speaking out for them and building a

constant dialogue, enhances its outcome.

The year that just ended was full of events

and initiatives that led companies and

entrepreneurs to meet, both via the Internet and

at Villa Furstenberg, the Bank’s headquarters.

The calendar of events was especially full in

the last months of the year: first, the meeting

“The silent revolution of the markets.... and

the weapons used by enterprises”, organized

in collaboration with the Salone d’Impresa,

followed by the “One Day in Venice”, organized

together with Centrobanca, and the Project

“Veneto & Abruzzo”. The first event provided a

chance to discuss and take a close look at concepts

such as planning, innovation and proactivity,

the only “weapons” available to companies as

they attempt to deal with market difficulties.

The event “One Day In Venice”, now in its third

edition, made it possible for 13 companies

listed on the Italian Stock Exchange, also

known as Piazza Affari, expression of the

entrepreneurial nature of North-Eastern Italy

and, specifically, of the Veneto region, to meet

with Italian and international institutional

investors. More than 85 meetings were

scheduled, double the number of the previous

edition, during which investors were able to

assess the attractiveness of, in financial terms,

and consequently the possibility of investing in,

the companies that took part in the meetings

(Banca IFIS, CAD IT, Delclima, De’ Longhi,

Eurotech, Luxottica, Nice, Save, Servizi ITALIA,

Sabaf, Safilo, Stefanel and Zignago Vetro). The

Project “Veneto & Abruzzo”, was dedicated

to the development of the economy and

enterprises of the Veneto and Abruzzo regions.

The Bank’s desire to put itself on the line and

be there for near the entrepreneurs also went

on the Web. Through a daily activity, it fed the

conversation on the Web through initiatives

tied to social networks and blogs. It will be

an intense year, kicked off with the launch of

a new section of the MondoPMI blog, entirely

dedicated to interviews with entrepreneurs

in order to highlight success stories and to

share the entrepreneurs’ stories, choices and

journeys. The publishing collaborations will

continue with the Bank’s partners. We have

seen that enterpreneurs’ preferred arguments

referring to bureaucracy, to the search for

stability in their work as the safeguard for

healthy growth, to the strength of corporate

networks in dealing with the competition and

to the need for proactivity and innovations

at all levels in order to stay on the market.

MondoPMI

For information:

www.mondopmi.it

The blog for

companies

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08 On the agenda The upcoming Banca IFIS corporate events of

the Group include:

• from23 to27JanuaryBanca IFISwill again

take part in the World Economic Forum, the

organization that brings together the major

political and economic executives, intellectuals

and other international business figures in order

to create better conditions at the global level.;

• on 8 and 9 February, in Bergamo, Banca

IFIS will participate in Assiom Forex’s

19th Annual Congress, which represents

a chance for an exchange of views, ideas

and opinions between finance operators

and institutions. Bank of Italy’s Governor

is scheduled to speak on 9th February;

•on 19 and 20 February; Banca IFIS will

participate in the 6th edition of Frankfurt’s

European Midcap Event, where Banca

IFIS’s CEO Giovanni Bossi will have the

opportunity to have a series of one-to-

one meetings with various investors;

• from 8 to 10March, in Cernobbio, will take

place the meeting “Leader of the Future”, held

during the workshop “The scenario of the

financial markets, of their governance

and of finance”. Banca IFIS participates in the

meeting, which is held at the same time as the

annual workshop wich represents a valuable

opportunity to stay up-to-date on economic-

financial issues as well as, contemporarity

offering, a chance for networking among

youngsters who are interested in these topics

or who deal with them in their profession. Just

like in the main workshop, the programme will

feature some of the top experts and managers

of the most important economic and financial

institutions, both national and international.

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11

Price on 28/12/2012 5,530 €

365 day Min-Max Min 3,678 € – Max 5,64 €

Number of shares issued 53.811.095

Capitalization 297.575.355,35 €

1 month performance +2.83%

6 month performance +13,03%

1 year performance +41,00%

Dividend paid 0,250 €/share (07/05/2012)

Specialist Centrobanca

In the light of the results the Group achieved in the first nine months of 2012, its shares have increased

in value considerably. This can be seen in the latest financial reports and updates, published by various

companies and agencies, such as WEBSIM, Edison e Centrobanca.

Banca IFIS’s shares on the stock market

Financial Calendar

Sebastian Egon Furstenberg 68,9% In circulation 24,7% Giovanni Bossi 3,4% Riccardo Preve 2,4% Treasury shares 0,6%

To be defined.

Shareholders’ breakdown31 December 2012

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ContactsFollow us on

https://twitter.com/BancaIFIS

http://www.facebook.com/Banca.IFIS

http://www.linkedin.com/company/banca-ifis

http://www.youtube.com/user/BancaIFIS

http://tvchannel.bancaifis.it/

Website: http://www.bancaifis.it

Website of 2011 financial statements:

http://bilancio.bancaifis.it

Investor contact: Mara Di Giorgio

Email: mara.digiorgio@bancaifis.it

Tel. +39 041 502 7623

Coverage by analysts

Marco Opipari

Centrobanca, Gruppo UBI Banca

marco.opipari@centrobanca.it

_

Mark Thomas

Edison, Investment Research

financials@edisoninvestmentresearch.co.uk

Marco Cavalleri

Banca Akros

marco.cavalleri@bancaakros.it

_

09 Contacts