Merger application for Fast Finance S.p.A.

As already reported in the previous paragraph concerning the acquisition and merger of Toscana Finanza, on 19 January 2012 the Board of Directors of Banca IFIS approved the project to merge Fast Finance S.p.A. into Banca IFIS S.p.A. and on 23 January the related authorisation application was submitted to the Bank of Italy. The proceedings, without prejudice to the possibility of suspending or interrupting the timeframes envisaged by the law in force, should be completed in 90 days.

Significant purchases of Government Bonds

On 20 January 2012 Banca IFIS announced that in January 2012 it had made significant purchases of government bonds, more than doubling the value of the sovereign-debt securities portfolio compared with the amount recorded as at 30 September 2011. At the same time, the Bank stated that about 50% of its overall portfolio was composed of securities maturing in 2012 with an additional 25% maturing in 2013; the other maturity dates are apportioned between 2014 and 2017.

Significant purchase of NPL portfolios

On 27 January, the Bank announced it had completed the purchase of portfolios for a total book value of approximately 1,100 million Euro within the scope of NPL transactions. These transactions, conducted with the consumer credit divisions of two large international banking groups with offices in Italy, amount to more than 100,000 positions overall and represent loans mainly due from Italian natural persons.

Italian Government-backed bonds

Furthermore, in January the Bank increased its portfolio of assets eligible for refinancing operations with the Eurosystem by issuing and repurchasing 138 million Euro of bonds that the Italian Government had guaranteed for a three-year period and 69 million Euro of bonds the Government had guaranteed for a five-year period.