8 and a gross result of exploitation of 1

Capitalia, the fourth Italian banking group, is not more affected than others by the "Parmalat scandal" or the crisis of Italian football. It is, in any case, the message issued yesterday by Matteo Arpe, its Managing Director, which is used in the presentation of the annual accounts to put into perspective the impact of the "business" on a banking group whose Chairman, Cesare Geronzi, remains in the sights of ongoing investigations.

The figures, it is true, helped a little demonstration. Despite an exceptional provision of 285 million euros on Parmalat, Capitalia has reconnected with profits in 2003, with a net result of EUR 30.8 million, against a net loss of 328 million euros in 2002. In addition, "committing ourselves to repay all of our customers involved in the case of Parmalat, we are transforming the problem into opportunity", continued Matteo Arpe.

In fact, Capitalia is not only committed to refund all customers subscribers obligations Parmalat, but also Cirio and Giacomelli (customer audiences), to the tune of 50 or 100 as securities have been or not subscribed through intermediaries. If there is no risk of "credit crunch", Matteo Arpe believes that the most serious consequence of the Parmalat case remains "the closing of the financing bond in Italy canal, which was already less than half the average European.

Two years after its tumultuous merger with Bipop-Carire, Capitalia (ex-Banca di Roma) displays net proceeds Bank of 4.8 billion euros in 2003 ( 7.8) and a gross result of exploitation of 1.45 billion euros ( 51), after taking into account the transfer of the Bank Entrium ing online. Apart from the exceptional provision of 285 million on Parmalat, which corresponds to 70 of his exhibition "not guaranteed", the overall level of allowances for doubtful accounts is receding at 1.56 billion euros (2.33 billion euros in 2002).

Doubts remain

Given this clear improvement in its results, the banking group confirmed most of its objectives for 2005, with a forecast of RoE (return on equity) of 9.3 and a gross result from operations of EUR 2.7 billion. At the same time, the Managing Director of the branch Finecogroup (ex-Bipop), Fabio Gallia, yesterday announced his return to profits for 2004 (after a loss of EUR 40 million in 2003).

As a signal of confidence, Capitalia announced the resumption of payment of an annual dividend (0.02 euro per share for 2003), after two years of interruption due to deficit. Despite this significant improvement, some doubts remain, however, the consequences of the ongoing investigations on the stability of management. Mis en cause for "contest for preferential bankruptcy" in the case, the President of Capitalia, Cesare Geronzi, is also in the spotlight because of its links with the ex-fondateur of Parmalat, Calisto Tanzi, and the world of football. Director of Capitalia however declared himself confident on the restructuring of the capital of AS Roma, one of the most deficit Italian clubs, in recalling that the direct exposure of the Bank in the football sector does not exceed EUR 53.5 million.

Finally, without ruling on the concordat recently proposed to Parmalat creditors, Matteo Arpe plan considers that Capitalia rest "from any risk of recall action", not having reduced its exposure to the dairy group over the past two years.