The prospects for 2012 are good.

Operations in support of businesses could be positively influenced by both the opportunities to acquire new customers and new loans in an economic setting burdened by the adverse economic situation, and an easier approach in the light of non-specialist banks' reluctance to assist companies with traditional credit instruments.

In this setting, with the Bank’s available capital on one hand, and the strong cash flow generated by its funding sources – in particular the rendimax retail channel – on the other, the Bank can easily support the growth of operations in favour of Italian SMEs, with prospects for significant growth in lending.

Strong demand and favourable opportunities are expected also in the pharmaceutical segment, characterised by a high eligibility for refinancing and interesting returns, in addition to capital requirements which – though increased – remain favourable compared with other credit investments.

Special attention will be paid to managing non-performing loans purchased by the Toscana Finanza division: the prospects for their recovery are strongly correlated with efforts spent in managing credit. Furthermore, the search for excellence in operations concerning debtors is necessary to significantly continue to purchase new portfolios from originators in the consumer and personal credit segment.

In the sector of tax receivables arising from insolvency proceedings, the business of the investee company Fast Finance, the undisputed leader in the Italian market, is positively positioned to generate increasing cash flows, also as a consequence of the credit and operational synergies arising from the collaboration with the Parent Company.

In the first week of 2012, the size of the bond portfolio increased significantly, exceeding 4.5 billion Euro. The bonds purchased are all short-term fixed-rate or medium-term floating-rate Italian government bonds. It can be reasonably expected that the bonds, recognised in the HTM or AFS portfolio, will generate significant revenues in 2012 and – with diminishing but still considerable returns – in the upcoming years. The bonds are eligible for refinancing with the Eurosystem and are therefore held by leveraging funds obtained by the ECB or on the MTS market, depending on what is more convenient from time to time. The additional returns generated by transactions in these securities, which in principle are not included in the Bank’s business area, will be used to strengthen the Bank’s equity and therefore support short- and medium-term growth.

We have high expectations for growth in retail funding generated by the rendimax online savings account, which already shows remarkable potential and will be enhanced with features typical of current accounts in 2012. The funds generated by rendimax allows us to plan the bank's financial growth without stress.

All in all, it is reasonable to anticipate a positive trend for the Bank’s profitability, which should strongly increase above all, but not exclusively, due to the additional returns arising from trading in securities, and a concomitant increase in solvency due to the capitalisation of profits. As for the Bank’s traditional and newly added operating sectors, we expect: a positive trend for profitability in the trade receivables area, with the economic situation and its impact on credit quality representing an element of risk; growing operational effectiveness and profitability in the non-performing loans division; recovering returns and the addition of products and services not yet explored in favour of procedures concerning the operations of the investee company Fast Finance, which is currently being incorporated in the Parent Company. The merger should be completed this year, following authorisation from the Supervisory Authority.