• Net income: 543 million euro for fourth-quarter 2009;
• Consolidated net income amounted to 2,805 million euro, up 9.9% against 2,553 million euro in 2008
• Capital ratios as at 31 December 2009 after dividend distribution: Tier 1 ratio at 8.4%.
• In the framework of a sustainable dividend policy stemming from sustainable profitability, the Management Board of today resolved to propose a one billion euro dividend distribution at the next Shareholders’ Meeting, paying out 8 euro cents on ordinary shares and 9.1 euro cents on savings shares.

Under such a framework, the International Subsidiary Banks Division, where Intesa Sanpaolo Bank Albania is part of, had the following contribution:

The International Subsidiary Banks Division is responsible for activities in foreign markets where the Group is operational through commercial banking subsidiaries and associates. The Division provides guidelines, coordination and support to subsidiaries abroad mainly active in retail banking. It is responsible for defining the Group’s development strategy related to its direct presence abroad, as well as exploring and analysing new growth opportunities in markets where the Group already has a presence, and in new markets. This Division also coordinates operations of international subsidiary banks and their relations with the Parent Company’s head office departments and the Corporate & Investment Banking Division’s branches and offices abroad. The Division is made up of the three following Departments which are in charge of the different geographical areas where it operates: i) the SEE Banking Area which includes the banking subsidiaries in South-Eastern Europe, Privredna Banka Zagreb in Croatia, Banca Intesa Beograd in Serbia, Intesa Sanpaolo Banka Bosna i Hercegovina in Bosnia and Herzegovina, Intesa Sanpaolo Bank Albania and Intesa Sanpaolo Bank Romania; ii) the CEE Banking Area which includes the banking subsidiaries in Central-Eastern Europe, Banka Koper in Slovenia, VUB Banka in Slovakia, CIB Bank in Hungary; iii) the CIS and South Mediterranean Banking Areas which includes the subsidiaries KMB Bank in the Russian Federation (its name has been changed to Banca Intesa effective as of 1 January 2010 following the merger with ZAO Banca Intesa), Pravex-Bank in Ukraine and Bank of Alexandria in Egypt.

In the fourth quarter of 2009, International Subsidiary Banks Division registered:

• operating income of 572 million euro, up 3.6% from 552 million euro in the third quarter of 2009;
• operating costs of 283 million euro, up 2.1% from 277 million euro in the previous quarter;
• operating margin of 289 million euro, up 5.1% from 275 million euro in the previous quarter;
• a cost/income ratio of 49.5% versus 50.2% in the third quarter of 2009;
• net provisions and adjustments of 173 million euro against 155 million euro in the previous quarter;
• income before tax from continuing operations of 117 million euro, down 3.5% compared to 121 million euro in the previous quarter;
• net income of 111 million euro, up 22.3% compared to 91 million euro in the third quarter of 2009.

In full-year 2009, the International Subsidiary Banks Division registered:

• operating income of 2,215 million euro, down 3.2% compared to 2,288 million euro in 2008 (excluding foreign exchange effects, operating income rose by 3.1%) and accounted for 13% of the Group’s consolidated figure (the same as in 2008);
• operating costs of 1,137 million euro, down 7.3% compared to 1,226 million euro in 2008;
• operating margin of 1,078 million euro, up 1.5% from 1,062 million euro in 2008 (excluding foreign exchange effects, operating margin was up 7.4%);
• a cost/income ratio of 51.3% versus 53.6% in 2008;
• net provisions and adjustments of 638 million euro compared to 351 million euro in 2008;
• income before tax from continuing operations of 443 million euro, up 34.2% from 330 million euro in 2008 which was impacted by a 390 million euro goodwill impairment to Pravex-Bank;
• net income of 364 million euro, nearly doubling the 187 million euro of 2008.

Banca Fideuram, through its network of private bankers, performs asset gathering activities serving customers with a medium to high savings potential. In the fourth quarter of 2009, Banca Fideuram registered:

• operating income of 168 million euro, up 14.9% from 146 million euro in the third quarter of 2009;
• operating costs of 84 million euro, in line with the third quarter of 2009;
• operating margin of 84 million euro, up 36.2% from 62 million euro in the previous quarter;
• a cost/income ratio of 50% versus 57.5% in the third quarter of 2009;
• net provisions and adjustments of 15 million euro;
• income before tax from continuing operations of 70 million euro, up 34% from 52 million euro in the third quarter of 2009;
• net income of 26 million euro, up 34.5% from 20 million euro in the third quarter of 2009; excluding charges from purchase cost allocation, net income for the fourth quarter would be at 47 million euro.

In full-year 2009, Banca Fideuram registered:

• operating income of 611 million euro, down 1.6% from 621 million euro in 2008 contributing 3% to the Group’s consolidated figure (the same as in 2008);
• operating costs of 328 million euro, in line with the 327 million euro in 2008;
• operating margin of 283 million euro, down 3.7% from 294 million euro in 2008;
• a cost/income ratio of 53.7% versus 52.7% in 2008;
• net provisions and adjustments of 43 million euro from 49 million euro in 2008;
• income before tax from continuing operations of 240 million euro. In 2008 this caption was a negative 335 million euro, impacted by a 580 million euro goodwill impairment;
• net income of 93 million euro versus a 2008 net income which was a negative 720 million euro also impacted by a 302 million euro impairment to intangible assets. Excluding charges from purchase cost allocation, net income for 2009 would be at 178 million euro.

The 2010 outlook

The macroeconomic scenario for 2010 foresees a trend of gradual improvement with progressive positive effects on the banking industry and on Intesa Sanpaolo. During the year, the Group will continue on the same course of action aiming at maintaining sustainable growth in the medium term: developing long-term relationships with customers, optimising efficiency - finetuning cost control and investments - and monitoring asset quality, liquidity and capital base.

There are expectations for some improvement in the Group’s operating income, reflecting a recovery in net fee and commission income and defence of net interest income, and a decrease in operating costs compared with 2009 even after the faster-than-planned cost reduction of the fourth quarter of the year. Cost of credit is expected slightly down compared to 2009. Therefore, recurring profitability should improve with respect to 2009. Taking into account integration charges markedly decreasing and capital gains from the capital management actions currently being finalised, net income for the year is expected to exceed that recorded in 2009.

Guidelines of the 2010-2012 Management Plan for impairment test purposes

Before approving the drafts of the financial statements, the Management Board has approved both the impairment process on intangible assets and goodwill and its compliance with IAS/IFRS requirements also on the basis of the Plan prepared by the Management for the purpose of carrying out the impairment test. The Plan’s guidelines confirm the target of sustainable profitability for the Group for the medium term summarised in a progressive improvement in the cost-income ratio, in recurring profitability and in net income, through:

• full unlocking of the significant revenue growth potential of core businesses;
• investment in growth and innovation with adequate cost management;
• asset quality control, getting ready for the recovery;
• steady Group solidity in terms of capital adequacy and liquidity level;
• innovation and simplification as key elements of success over the three-year period.