PRESS RELEASE. Approval of Group Business Plan for Business Plan strategic initiatives. - Strengthen capital base and safeguard liquidity

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1 PRESS RELEASE ECB COMMUNICATES GROUP-SPECIFIC PRUDENTIAL REQUIREMENTS PROPOSAL FOR CAPITAL INCREASE AND REVERSE STOCK SPLIT CALLING OF EXTRAORDINARY SHAREHOLDERS' MEETING APPROVAL OF BUSINESS PLAN Banca Carige's Board of Directors, chaired by Cesare Castelbarco Albani, has today resolved upon the following agenda items, as presented by the Chief Executive Officer Piero Luigi Montani: Considerations regarding the Decision of the European Central Bank (ECB) on the Group-specific prudential requirement to be met on a consolidated basis: CET1 ratio of 11.50% by July 2015 Proposal for capital increase with consideration, via a rights issue for existing shareholders for a maximum amount of EUR 850 mln fully pre-underwritten by a Syndicate of leading financial institutions led by Mediobanca Banca di Credito Finanziario S.p.A.; proposal for capital increase for a maximum amount of EUR 15.8 mln, exempt from the pre-emptive rights of existing shareholders, to be effected via a contribution in kind of non-controlling interests in Cassa di Risparmio di Carrara S.p.A and Cassa di Risparmio di Savona S.p.A.; proposal for reverse split of ordinary and savings shares outstanding at a 1 to 100 ratio Approval of Group Business Plan for Business Plan strategic initiatives - Strengthen capital base and safeguard liquidity - Boost revenues

2 - Re-balance credit risk - Improve operational efficiency - One-off deals to accelerate turnaround Economic-financial objectives for ROTE: 8.0% - Cost / Income: 54.2% - CET1 ratio BIS3 fully loaded: 12.0% Calling of ordinary and extraordinary Shareholders' Meeting on 23 April 2015 This document refers to a Group scope which excludes the Insurance companies, Creditis and Banca Cesare Ponti

3 Directors' considerations regarding the Decision of the European Central Bank (ECB) on the Group-specific prudential requirement to be met by Banca Carige on a consolidated basis: As requested by the Italian Securities and Exchange Commission, Consob, the Bank informs that it has received the decision of the European Central Bank (ECB) regarding the Group-specific prudential requirement to be met at consolidated level by July Said requirement consists in a minimum 11.50% level of Common Equity Tier 1 ratio. The Group's Common Equity Tier 1 ratio (Phased-in) as at 31 December 2014, calculated according to the standardised approach for credit and market risk requirements and inclusive of the effects from recognition of the loan loss provisions arising from the Asset Quality Review (AQR), is 8.4%. Including the effects from disposal of the Insurance business, whose closing is only conditional upon obtaining authorisation from the Italian insurance supervisor, IVASS, the ratio rises to 8.7%. The Board of Directors of Banca Carige points out that, as a result of the capital increase transactions submitted today to the Extraordinary Shareholders' Meeting of 23 April for approval, the Common Equity Tier 1 ratio (Phased-in) is set to increase by an additional 400 bps to 12.7%, without factoring in the upside arising from disposal of the assets held for sale included in the Capital Plan originally submitted to the ECB. Proposal for capital increase The Board of Directors has resolved upon the proposal for a EUR 850 mln share capital increase with consideration via a rights issue for existing shareholders, to be submitted for approval to the Extraordinary Shareholders' Meeting, convened for 23 April The capital increase will be backed by a Syndicate of leading financial institutions led by Mediobanca Banca di Credito Finanziario S.p.A., acting as Global Coordinator and Joint Bookrunner. BofA Merrill Lynch, Credit Suisse Securities (Europe) Limited, Deutsche Bank A.G. London Branch, J.P. Morgan Securities plc and UniCredit Bank AG will participate as Co-Global Coordinators and Joint Bookrunners. Banco Santander SA, Commerzbank Aktiengesellschaft London Branch and Nomura International plc will act as Joint Bookrunners, whereas Banca Akros

4 S.p.A., Banca Aletti S.p.A., Equita SIM S.p.A, Intermonte SIM S.p.A. and Keefe, Bruyette & Woods Limited will act as Co-Lead Managers. In relation to the afore-mentioned capital increase transaction and in consideration of the ensuing dilutive effects, the Board of Directors also resolved upon a proposed reverse split of ordinary and savings shares outstanding, at a ratio of 1 new ordinary or savings share issued for every 100 ordinary or savings shares outstanding. This transaction will similarly be submitted for approval to the Extraordinary Shareholders' Meeting on 23 April The Board of Directors has then resolved upon the proposal for a capital increase with consideration for a maximum amount of EUR 15.8 mln, exempt from pre-emptive rights of existing shareholders, to be effected via a contribution in kind of the non-controlling interests respectively held by 'Fondazione de Mari Cassa di Risparmio di Savona' and 'Fondazione Cassa di Risparmio di Carrara' in the subsidiary banks, Cassa di Risparmio di Savona S.p.A. and Cassa di Risparmio di Carrara S.p.A. Under this transaction, shares will be issued at a unit price of EUR , corresponding to the mean of the official prices listed for Banca Carige stock in the period from 18 February to 18 March Approval of the Business Plan The Board of Directors has then approved the Business Plan (the Business Plan or Plan ), set to steer the Group's business for the next five years. The Plan fits within and strengthens the guidelines identified in the turnaround strategy launched in 2014 with a view to bringing the Group back to its tradition of being a sound, locally rooted retail and corporate bank for households and businesses, focusing on the highest-potential regions of Northern and Central Italy, with risk profile mitigated by better credit management and committed to being an efficient distributor. The main economic - financial targets for 2019 are: ROTE of 8.0%, CET1 ratio of 12.0%, cost income: 54.2%, Net interest and other banking income EUR 1.1 bn, net profit EUR 208 mln. The new Plan fits within the advancement of the measures introduced by Management in the course of last year, particularly including those to strengthen capital via the: a) fully underwritten EUR 800

5 mln capital increase completed in July 2014, b) disposal of Insurance companies, c) credit risk profile mitigation through an improved coverage of NPLs, d) RWA and securities portfolio reduction, as well as organisational restructuring of the credit functions and distribution area, with a view to increasing operational efficiency and effectiveness. The most significant strategic initiatives identified to pursue the economic-financial objectives of the Plan include: A) further strengthening of the capital base and safeguarding of liquidity, B) boosting of revenues, C) rebalancing of credit risk, D) improvement of operational efficiency, E) additional one-offs to accelerate turnaround. The Plan unfolds in an economic and financial environment which will continue to be characterised by a rather weak economic growth in 2015, to then stabilise at 1.4% in terms of Italian GDP. Similarly, the benchmark interest rates for the banking market, albeit growing, will continue to remain at relatively low levels, not far from today's, at least for the next three years, growing at a faster pace in the last two years of the Plan period. A) Capital strengthening will be effected via a EUR 850 mln rights issue for existing shareholders and an additional capital increase, exempt from pre-emptive rights of existing shareholders, for a maximum amount of EUR 15.8 mln for the buyback of the noncontrolling interests held by the Foundations owning stakes in Cassa di Risparmio di Carrara S.p.A. and Cassa di Risparmio di Savona S.p.A. Disposal of the consumer credit company (Creditis Servizi Finanziari S.pA.) and subsidiary company, Banca Cesare Ponti S.p.A. (BCP), in line with guidance in the Capital Plan submitted to the ECB, will contribute to further strengthening the Group's capital base. On the back of the afore-mentioned initiatives and the funding opportunities offered by the T-LTROs of the ECB, the expectation throughout the Plan period is to maintain a CET1 ratio of no less than 12.0%, a stable

6 reduction of the cost of funding and a Net Stable Funding Ratio well over 100% on an ongoing basis. B) Revenues will be boosted by a focus on sales and distribution aimed at contributing to the creation of a stable Net interest and other banking income, which is expected to increase by EUR 331 mln over the Plan period, primarily as a result of a re-pricing of funding ( mark down) and a higher contribution from fees and commissions arising from a stronger business performance. Funding re-pricing will reflect a more efficient funding policy, with replacement of approximately 80% of more expensive institutional deposits with new bond issuances at spreads in line with the stronger capital base achieved. The first three years of the Business Plan will also be marked by the possibility of accessing approximately EUR 3 bn worth of funds from the T-LTROs of the ECB as an engine for re-launching the sales and distribution policy, which will leverage: a) the restructuring of the distribution model, in line with the Group's local market specificities, b) the re-launch of the corporate banking segment, c) a stronger advisory model for the private and affluent banking segments, d) an expansion of the digital banking offering. These actions will enable an average 3.5% yearly growth in gross loans over the Plan period, an 8 p.p. expansion of assets under management (to 56.6% of total indirect funding) and return on total funding/lending volumes rising to 1.2%. C) A number of key enablers will support the optimisation of risk in the loan book. In particular, the objectives will be to aggressively address bad loans by means of one-off disposal deals for an amount of approximately EUR bn and maximise recovery rates through partnership agreements with external servicers for exposures under EUR 5 mln. Stronger control and monitoring policies will therefore be implemented for substandard loans to maximise loan restructuring. The renewal of credit policies will steer the growth for new loans granted to higher-potential geographic areas and business segments, aiming at an increase in short-term retail and corporate loans which are expected to account for 24% of total loans by the end of the Plan period. Resolute actions will likewise be taken for the impairment-risk portion of the performing loan book through the ongoing monitoring of exposures in the local market areas, thanks to more efficient risk measurement metrics in

7 line with the AQR methodology; all of this in view of reaching a 50% lower default rate by as early as end-2017 than recorded in D) The improvement of operational efficiency will leverage multiple enablers to obtain additional savings for an amount of approximately EUR 18.1 mln in operating expenses, including: completion of the branch rationalisation plan, with closure of an additional 45 branches; optimisation of real estate costs via the renegotiation of lease payments, revision of utility supply agreements, updating of maintenance management policies and adoption of a new approach for the design and construction of head offices and branches; reduction of the ICT structure costs and, finally, a cost excellence programme leveraging a gradual dematerialisation and digitalisation of activities. E) The Business Plan includes one-off deals designed to accelerate the turnaround, including: the launch of a real estate value-extraction programme and selected disposal of properties, the outsourcing of Facility Management to make the ICT structure more efficient and the rationalisation of the Group's retail banks through the merger of the subsidiaries, Cassa di Risparmio di Carrara S.p.A. and Cassa di Risparmio di Savona S.p.A. A summary table of the Plan expected results is attached. Calling of ordinary and extraordinary Shareholders' Meetings The Board of Directors has resolved that the ordinary shareholders' meeting of the Bank be held in one call at the Magazzini del Cotone Congress Centre, Area Porto Antico, Sala Maestrale, Via ai Magazzini del Cotone 59, Genoa, on 23 April 2015 at a.m. In its ordinary session, the Shareholders' Meeting is called upon to: - approve the Separate Financial Statements as at 31 December 2014 and receive disclosure about the Consolidated Financial Statements as at the same date; - resolve upon the integration of the Board of Statutory Auditors under art. 2401, para. 1, of the Civil Code, with the appointment of one standing auditor and one alternate auditor;

8 - resolve upon remuneration policies pursuant to the Bank of Italy's "Remuneration and incentive policies and practices" and art. 123-ter of the Consolidated Law on Finance. In its extraordinary session, the Shareholders' Meeting is called to resolve upon: - a rights issue for up to EUR 850 mln, inclusive of share premium if any; - a reverse split of ordinary and savings shares at a ratio of 1 new share for every 100 shares outstanding; - a capital increase, exempt from pre-emptive rights of existing shareholders, for a maximum amount of EUR 15.8 mln to be effected via a contribution in kind of non-controlling interests to the share capital of the subsidiary banks, Cassa di Risparmio di Savona S.p.A. and Cassa di Risparmio di Carrara S.p.A. by their respective Foundations; - amendments to the Articles of Association (articles 8, 10, 12, 13, 14, 18, 20, 21, 22, 23, 24, 25, 26, 27, 28 and 29) primarily in connection with the Bank of Italy's new supervisory regulations regarding Corporate Governance. Documents relating to the approval of the 2014 Financial Statements and reports on other agenda items for the Shareholders' Meetings will be made available to the public under the terms and provisions of the law. ***** Declaration of the Manager responsible for preparing the Company s financial reports pursuant to art. 154-bis, para. 2 of Legislative Decree no. 58/1998 (Consolidated Law on Finance) Pursuant to Article 154-bis, paragraph 2, of the Italian Consolidated Law on Finance, the undersigned, Luca Caviglia, in his capacity as the Manager responsible for preparing the Company s financial reports, declares that the accounting information contained in this Press Release corresponds to the underlying documentary evidence and accounting records.

9 The Banca Carige Group's Business Plan will be presented to the financial community in a conference call scheduled for 20 March 2015 at 10:30 a.m. (CET). A live webcast will also be available. Dial-in numbers and other details to access the conference call can be found on the Bank's corporate website ( under 'Investor Relations'. Genoa, 19 March 2015 INVESTOR RELATIONS COMMUNICATIONS Roberta Famà Antonello Amato Massimo Turla Alfredo Majo Via Cassa di Risparmio 15 Via Cassa di Risparmio GENOVA GE GENOVA GE tel tel fax fax investor.relations@carige.it relazioni.esterne@carige.it AD HOC COMMUNICATION ADVISORS Giorgio Zambeletti Sara Balzarotti Tel: mobile: giorgio.zambeletti@ahca.it sara.balzarotti@ahca.it

10 ***** IL PRESENTE COMUNICATO NON COSTITUISCE UN OFFERTA DI VENDITA DI STRUMENTI FINANZIARI NEGLI STATI UNITI D AMERICA. GLI STRUMENTI FINANZIARI NON POTRANNO ESSERE OFFERTI O VENDUTI NEGLI STATI UNITI D AMERICA IN ASSENZA DI REGISTRAZIONE O DI UN APPOSITA ESENZIONE DALLA REGISTRAZIONE. NON È INTENZIONE DELLA SOCIETÀ REGISTRARE, NÉ IN TUTTO NÉ IN PARTE, L OFFERTA DI STRUMENTI FINANZIARI NEGLI STATI UNITI D AMERICA O EFFETTUARE UN OFFERTA AL PUBBLICO DI STRUMENTI FINANZIARI NEGLI STATI UNITI D AMERICA. QUALSIASI OFFERTA DI STRUMENTI FINANZIARI NEGLI STATI UNITI D AMERICA DOVRÀ ESSERE EFFETTUATA PER MEZZO DI UN PROSPETTO INFORMATIVO CONTENENTE INFORMAZIONI DETTAGLIATE IN MERITO ALLA SOCIETÀ, AL SUO MANAGEMENT E AGLI STRUMENTI FINANZIARI. COPIE DEL PRESENTE COMUNICATO NON SONO E NON POSSONO ESSERE DISTRIBUITE O INVIATE NEGLI STATI UNITI D AMERICA. LA DISTRIBUZIONE DI QUESTI MATERIALI IN ALCUNI PAESI POTREBBE ESSERE CONTRARIA ALLA NORMATIVA APPLICABILE IN TALI PAESI. QUESTI MATERIALI NON SONO DESTINATI ALLA DISTRIBUZIONE IN CANADA, GIAPPONE, O AUSTRALIA O IN QUALSIASI ALTRO PAESE NEL QUALE L OFFERTA O LA VENDITA SIANO VIETATE IN CONFORMITÀ ALLE LEGGI APPLICABILI (GLI ALTRI PAESI ) O AI SOGGETTI IVI RESIDENTI. LE INFORMAZIONI CONTENUTE IN QUESTI MATERIALI NON COSTITUISCONO UN OFFERTA DI VENDITA DI STRUMENTI FINANZIARI IN CANADA, GIAPPONE, O AUSTRALIA O NEGLI ALTRI PAESI. IL PRESENTE COMUNICATO È DISTRIBUITO ESCLUSIVAMENTE A SOGGETTI: (I) AVENTI ESPERIENZA PROFESSIONALE IN MATERIE RELATIVE A INVESTIMENTI FINANZIARI AI SENSI DELL'ARTICOLO 19(5) DEL FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (COME MODIFICATO, IL FINANCIAL PROMOTION ORDER ), (II) RIENTRANTI NELLA DEFINIZIONE DI CUI ALL'ARTICOLO 49, SECONDO COMMA, LETTERE DALLA (A) ALLA (D) ( HIGH NET WORTH COMPANIES, UNINCORPORATED ASSOCIATIONS ETC. ) DEL FINANCIAL PROMOTION ORDER, (III) CHE NON SI TROVINO NEL REGNO UNITO, (IV) AI QUALI PUÒ ESSERE ALTRIMENTI COMUNICATA, O FATTO SÌ CHE SIA COMUNICATA, NEL RISPETTO DELLA NORMATIVA APPLICABILE, UNA PROPOSTA DI, O UNA SOLLECITAZIONE A, EFFETTUARE UN INVESTIMENTO (SECONDO IL SIGNIFICATO DI CUI ALLA SECTION 21 DEL FINANCIAL SERVICES AND MARKETS ACT 2000) IN RELAZIONE ALL EMISSIONE O ALLA VENDITA DI QUALSIASI STRUMENTO FINANZIARIO (COLLETTIVAMENTE, I SOGGETTI RILEVANTI ). IL PRESENTE COMUNICATO È DIRETTO SOLO A SOGGETTI RILEVANTI E NON PUÒ ESSERE UTILIZZATO, O SULLO STESSO NON PUÒ ESSERE FATTO AFFIDAMENTO, DA PARTE DI SOGGETTI CHE NON SIANO SOGGETTI RILEVANTI. OGNI INVESTIMENTO O ATTIVITÀ DI INVESTIMENTO CUI IL PRESENTE COMUNICATO SI RIFERISCE È A DISPOSIZIONE SOLO DI SOGGETTI RILEVANTI E SARÀ INTRAPRESA ESCLUSIVAMENTE CON SOGGETTI RILEVANTI. IL PRESENTE COMUNICATO STAMPA CONTIENE INFORMAZIONI PREVISIONALI, COMPRESI RIFERIMENTI CHE NON SONO RELATIVI ESCLUSIVAMENTE A DATI STORICI O EVENTI ATTUALI E PERTANTO, IN QUANTO TALI, INCERTE. LE INFORMAZIONI PREVISIONALI SI BASANO SU DIVERSE ASSUNZIONI, ASPETTATIVE, PROIEZIONI E DATI PREVISIONALI RELATIVI AD EVENTI FUTURI E SONO SOGGETTE A MOLTEPLICI INCERTEZZE E AD ALTRI FATTORI AL DI FUORI DEL CONTROLLO DI BANCA CARIGE. ESISTONO NUMEROSI FATTORI CHE POSSONO GENERARE RISULTATI ED ANDAMENTI NOTEVOLMENTE DIVERSI RISPETTO AI CONTENUTI, IMPLICITI O ESPLICITI, DELLE INFORMAZIONI PREVISIONALI E PERTANTO TALI INFORMAZIONI NON SONO UNA INDICAZIONE ATTENDIBILE CIRCA LA PERFORMANCE FUTURA. BANCA CARIGE NON SI ASSUME ALCUN OBBLIGO DI AGGIORNARE PUBBLICAMENTE O RIVEDERE LE INFORMAZIONI PREVISIONALI SIA A SEGUITO DI NUOVE INFORMAZIONI, SIA A SEGUITO DI EVENTI FUTURI O PER ALTRE RAGIONI, SALVO CHE CIÒ SIA RICHIESTO DALLA NORMATIVA APPLICABILE.

11 ****** THIS PRESS RELEASE IS NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES. SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES UNLESS THEY ARE REGISTERED OR ARE EXEMPT FROM REGISTRATION. THE COMPANY DOES NOT INTEND TO REGISTER ANY PORTION OF THIS OFFERING IN THE UNITED STATES OR TO CONDUCT A PUBLIC OFFERING IN THE UNITED STATES. ANY PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE MADE BY MEANS OF A PROSPECTUS THAT WILL CONTAIN DETAILED INFORMATION ABOUT THE COMPANY AND ITS MANAGEMENT, AS WELL AS FINANCIAL STATEMENTS. COPIES OF THIS PRESS RELEASE ARE NOT BEING, AND SHOULD NOT BE, DISTRIBUTED IN OR SENT INTO THE UNITED STATES. IT MAY BE UNLAWFUL TO DISTRIBUTE THESE MATERIALS IN CERTAIN JURISDICTIONS. THESE MATERIALS ARE NOT FOR DISTRIBUTION IN CANADA, JAPAN OR AUSTRALIA, OR IN ANY OTHER COUNTRY WHERE THE OFFERS OR SALES OF SECURITIES WOULD BE FORBIDDEN UNDER APPLICABLE LAW (THE OTHER COUNTRIES ) OR TO RESIDENTS THEREOF. THE INFORMATION IN THESE MATERIALS DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE IN CANADA, JAPAN, AUSTRALIA, OR IN THE OTHER COUNTRIES THIS PRESS RELEASE IS FOR DISTRIBUTION ONLY TO PERSONS WHO (I) HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (AS AMENDED, THE FINANCIAL PROMOTION ORDER ), (II) ARE PERSONS FALLING WITHIN ARTICLE 49(2)(A) TO (D) ( HIGH NET WORTH COMPANIES, UNINCORPORATED ASSOCIATIONS ETC. ) OF THE FINANCIAL PROMOTION ORDER, (III) ARE OUTSIDE THE UNITED KINGDOM, OR (IV) ARE PERSONS TO WHOM AN INVITATION OR INDUCEMENT TO ENGAGE IN INVESTMENT ACTIVITY (WITHIN THE MEANING OF SECTION 21 OF THE FINANCIAL SERVICES AND MARKETS ACT 2000) IN CONNECTION WITH THE ISSUE OR SALE OF ANY SECURITIES MAY OTHERWISE LAWFULLY BE COMMUNICATED OR CAUSED TO BE COMMUNICATED (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS RELEVANT PERSONS ). THIS PRESS RELEASE IS DIRECTED ONLY AT RELEVANT PERSONS AND MUST NOT BE ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS PRESS RELEASE RELATES IS AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS. THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS, WHICH INCLUDES ALL STATEMENTS THAT DO NOT RELATE SOLELY TO HISTORICAL OR CURRENT FACTS AND WHICH ARE THEREFORE INHERENTLY UNCERTAIN. ALL FORWARD-LOOKING STATEMENTS RELY ON A NUMBER OF ASSUMPTIONS, EXPECTATIONS, PROJECTIONS AND PROVISIONAL DATA CONCERNING FUTURE EVENTS AND ARE SUBJECT TO A NUMBER OF UNCERTAINTIES AND OTHER FACTORS, MANY OF WHICH ARE OUTSIDE THE CONTROL OF THE COMPANY. THERE ARE A VARIETY OF FACTORS THAT MAY CAUSE ACTUAL RESULTS AND PERFORMANCE TO BE MATERIALLY DIFFERENT FROM THE EXPLICIT OR IMPLICIT CONTENTS OF ANY FORWARD-LOOKING STATEMENTS AND THUS, SUCH FORWARD-LOOKING STATEMENTS ARE NOT A RELIABLE INDICATOR OF FUTURE PERFORMANCE. THE COMPANY UNDERTAKES NO OBLIGATION TO PUBLICLY UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE, EXCEPT AS MAY BE REQUIRED BY APPLICABLE LAWS.

12 Expected results 2014 (1) CAGR ROTE n.s. 4.0% 8.0% CET1 Ratio 8.4% 12.0% 12.0% Net interest and other banking income (EUR m) (2) % Costs (EUR m) % Net profit (EUR m) n.s. Direct funding from retail customers (EUR bn) % Indirect funding (EUR bn) % Gross loans (EUR bn) % Cost Income (2) 85% 63% 54% Cost of credit (2) 273 bps 90 bps 71 bps Net bad loans / total loans 5.4% 4.7% 4.7% Net sub-standard loans / total loans 9.7% 6.7% 5.1% (1) Figures net of impact from assets held for sale and discontinued operations (Insurance companies, Creditis, Banca Cesare Ponti) (2) Figures reclassified for inclusion of NPL servicing fees in loan loss provisions