Sanpaolo Wealth Management

Transcription

1 Sanpaolo Wealth Management Implementation update and operating results Analyst Meeting Milan, October 6 th 2003

2 AGENDA 1. SANPAOLO WEALTH MANAGEMENT: MISSION AND KEY FIGURES 2. RESULTS AND IMPACT ON VALUE GENERATION 3. NEW PROJECTS 4. CONCLUSIONS Note: unless otherwise specifically indicated, all data refer to H

3 1. SANPAOLO WEALTH MANAGEMENT STRATEGIC RATIONALE STRATEGIC RATIONALE Enhance managerial control and focus on a strategic business area for the Group Integrate product and service range in the Asset Management and Insurance sectors Create a single sales / marketing structure to support the distribution networks Share financial and R&D expertise An integrated group of companies operating in the wealth management sector, supporting distribution networks and institutional clients Achieve all possible cost synergies (IT, processes, etc.) 3

4 1. SANPAOLO WM ORGANIZATIONAL POSITIONING AND MISSION CORPORATE CENTER FOREIGN & INTERNATIONAL BUSINESS PERSONAL FINANCIAL SERVICES WEALTH MANAGEMENT & FINANCIAL MARKETS DOMESTIC BANKING Eptaconsors Banca IMI Sanpaolo IMI Private Equity. SPWM CAPTIVE MISSION Achieve excellence in providing wealth management (asset management and life insurance) products to Group networks Support networks in developing a complete, coherent, effective range of wealth management services SPWM NON-CAPTIVE MISSION Institutional market leadership through innovative offering of value-added services (Full Service Provider) 4

5 1. SPWM PRODUCTS CONTRIBUTION TO GROUP RESULTS Other Interest income Fee income 3,753 mln 1, % Other Other Life 15% 52% 39% 51% 38% Managed assets 48% SPWM 61% AM 85% + Value retained by insurance companies: 1H results: 36.9 mln Pay-in retained by the companies: 82.8 mln SPWM products contribution to Group results: 29% of fee income 12% of total income (3) Value retained by the insurance companies Total income SPIMI Group Fee income Fee income from managed assets bln (4) 90.2 SPWM products (1) Fee income contribution Direct Deposits Administ. Managed 36% 25% 39% Other Eptafund SPWM 34% 8% 58% Life AM 18% 82% Of which: 57% Funds 15% Discretionary accounts 10% Institutional SPWM products represent 24% of total Group customer financial assets Customer financial assets Managed assets SPWM (2) (1) For Asset Management: equal to the whole pay-in. For Insurance: companies pay-out only, due to equity method consolidation (2) Data net of duplications, including SPWM's mandates to manage third-party assets (3) Inclusive of insurance companies profits (4) including SPWM's mandates to manage third-party assets 5

6 1. SPWM (1), MANAGEMENT TEAM AND OPERATING COMPANIES M. Mazzucchelli Group staff Investment Management (M. Noera) COMPANY Sales & Marketing (F. Reda) Technology & Organization (A. Campanini) Insurance (M. Ratti) 8 Sanpaolo Asset Management 8 Sanpaolo WM Lux 8 Sanpaolo Institutional AM 8 Sanpaolo Alternative Inv. 8 Banco Napoli AM (2) 8 Eptafund (4) 8 Obiettivo SGR (4) 1) Includes 49.99% of SP Bank Lux 2) Integrated in Sanpaolo AM since September ) JV 50% SP Vita and 50% Reale Mutua 4) See chapter 2 (Active funds) (Index plus, quant/active funds) (Asset management and consulting for institutional clients) (Funds of Hedge Funds) 8 Sanpaolo Vita 8 Sanpaolo Life (Ireland) 8 Egida (3) 8 Noricum Vita (4) 8 Universo Servizi (4) ( traditional and financial insurance products) ( Financial insurance products) (Non life products Property and Personal Protection ) More integrated than competitors Top management seniority and expertise 4 companies in startup phase or entering the perimeter 6

7 1. SANPAOLO WM KEY FIGURES 1H 2003 RETAIL ASSET MANAGEMENT AUM net of duplications: AUM gross of duplications: of which mutual funds: Mkt share on mutual funds: Inflow YTD net of dupl.: Contribution to SPIMI Fee income (Pay-in): 64.5 bln 75.1 bln 61.7 bln 12.3% 2.3 bln mln LIFE INSURANCE Technical (2) Reserves: of which SP Life: New business: Premiums: Mkt share life insurance (3) : Mkt share Bancassurance (3) : Contribution to SPIMI Fee income (Pay-out): Pay-in: 16.7 bln 5.2 bln 2.2 bln 2.4 bln 8.8% 13.1% 61.6 mln mln INSTITUTIONAL ASSET MANAGEMENT AUM institutional mandates: of which Segr. Accounts (1) Third parties mandates (SPWM Lux): Non-captive mutual funds: 13.9 bln 8.3 bln 3.3 bln 0.4 bln INVESTMENT MANAGEMENT SERVICES (4) Assets Under Custody: Contribution to SPIMI Fee income: 21.1 bln 37.6 mln Mkt share on close-ended pension funds: Contribution to SPIMI Fee income (Pay-in): 18.6% 12 mln 1. Intercompany Insurance Segregated Accounts 2. Mathematical 3. On New Business 4. In Jan % of Sanpaolo Bank Lux, lead company in international private banking and IMS activities, was transferred to Sanpaolo IMI Note: total Pay-In = = 500 mln 7

8 AGENDA 1. SANPAOLO WEALTH MANAGEMENT: MISSION AND KEY FIGURES 2. RESULTS AND IMPACT ON VALUE GENERATION 3. NEW PROJECTS 4. CONCLUSIONS 8

9 MAIN ACHIEVEMENTS GROUP SETUP Organization and governance build up Centralization of operational functions (Sales, Marketing, IT, etc.) PRODUCT FACTORIES REDESIGN Asset Management restructuring (procedural upgrade, investment & risk management process, Open Architecture) Developed distinctive proprietary applications Banco di Napoli Asset Management integration Leverage of Luxembourg platform Dynamic ALM approach to insurance financial management Sanpaolo Vita business model reengineering targeted to the outsourcing business PRODUCT RANGE ENHANCEMENT Value Proposition redesign for Asset Management products Product range rationalization following Banco Napoli AM integration Product range innovation (e.g., Sectorial Rotation Funds of Funds, Inflation linked products,...) 9

10 2. VALUE GENERATION: KEY FIGURES AND RATIOS Mln H H % Change AUM Asset Management Gross of Duplications (1) 91,641 92,426 1% AUM Asset Management Net of Duplications (1) 71,667 73,506 3% 90,157 Life Reserves 11,995 16,651 39% H H % Change SPWM Products Contribution to Group total income % Embedded Value of Insurance Business % % of immobilized investment portfolio 12.68% SPWM Net Profit % ROE SPWM 17.5% 19.1% 9% H H % Change Cost/Income SPWM 44.5% 39.4% -11% Sanpaolo AM costs / AUM (bps) (2) On final assets % On average assets % Insurance Costs / Technical reserves (bps) (3) On final reserves 21.5 On average reserves % % 1) Including funds, retail discretionary accounts and institutional portfolio management, and management mandates for third-party assets 2) Operating costs and AUM of Sanpaolo AM. Annualized costs (administrative + depreciation + other operating income and costs) 3) Operating costs and mathematical reserves of insurance BU (SP Vita + SP Life). 10

11 2. RESULTS BREAKDOWN - FOCUS ON ASSET MANAGEMENT RETAIL, Mln AUM Gross of Duplications Net Inflow Gross of Duplications (2) Net of Duplications H H H H H RETAIL ASSET MANAGEMENT 77,823 75,119-3% (3,501) 1,496 n.s. 2,207 Funds (including hedge funds) 61,186 61,705 1% (2,086) 2,711 Funds of Funds - 58 n.s. 56 GPF Monomanager 10,026 7,108-29% (1,461) (786) GPF Multimanager 1,162 1,772 52% Protected GPF n.s. 224 GPM 5,449 4,121-24% (235) (816) Common trend in Italian industry Customers actively switched to enhanced asset allocation and insurance products INSURANCE 11,995 16,651 39% 2,790 2,380-15% OTHER (1) 13,817 17,256 25% 3,006 1,959-35% 2,380 1,268 TOTAL 103, ,026 5% 2,295 5, % 5,855 1) Includes institutional asset management, third-party assets 2) Insurance inflow: premiums gross of payments 11

12 2. SPWM - RETAIL ASSET MANAGEMENT (1) PROFITABILITY Average AUM mln H H Average Pricing Average AUM (bps) mln Average Pricing (bps) Funds 64, , FoF GPF (2) 12, , GPM 5, , TOTAL 82, , Modest decline in profitability due to worsening of funds mix Expected average pricing improvement due to recent introduction of enhanced products 1) Includes Sanpaolo Asset Management, B.co Napoli AM, SPWM LUX 2) Includes: GPF Monomanager, GPF Multimanager, Protected GP 12

13 2. FUNDS ASSET MIX SPWM VS TOTAL MARKET SPWM MARKET 10% 22% 36% 21% 48% 8% 23% 46% 12% 32% 36% 13% 15% 34% 21% 23% Jun-03 May-03 Apr-03 Mar-03 Feb-03 Jan-03 Dec-02 Nov-02 Oct-02 Sep-02 Aug-02 Jul-02 Jun-02 May-02 Apr-02 Mar-02 Feb-02 Jan-02 Jun-03 May-03 Apr-03 Mar-03 Feb-03 Jan-03 Dec-02 Nov-02 Oct-02 Sep-02 Aug-02 Jul-02 Jun-02 May-02 Apr-02 Mar-02 Feb-02 Jan-02 Equity + Flexible Balanced Bond Money market Significant increase in money market & bond allocation, in line with consumer risk aversion Signals of favourable rebalancing for both SPWM and the system starting from April Source: Assogestioni 13

14 2. SPWM FUNDS PERFORMANCE EVOLUTION - % OVER BENCHMARK SANPAOLO AM SPWM LUX 12/02 (1) 06/03 (2) Total 20.0% 48.6% Equity 38.4% 76.9% Bonds 13.3% 6.7% Balanced 0.0% 100.0% 12/02 (1) 06/03 (2) Total 56.4% 61.4% Equity 80.9% 84.0% Results achieved by implementing a new investment process based on: Attribution of a clear value proposition to each product Attribution of a risk budget in terms of TEV (Tracking Error Volatility), in line with the defined value proposition Investment process supported with proprietary state of the art portfolio modeling tools Strengthening of Financial Risk Management Unit (15 resources), for real time independent monitoring of portfolio management activities (SpiderWeb: proprietary Risk Mngt application) (1) Full year (2) YTD Bonds Balanced 29.4% 27.8% 0.0% 100.0% An Operational Risk Management Unit (5 resources) has also been created, in order to identify, measure, monitor and mitigate operational risks 14

15 2. ASSET MANAGEMENT ITALY INDUSTRY COST POSITIONING, 2001 AND 2002 Operating costs (1) /AUM (2) (bps) Eptafund Fund BPM Gestioni Sgr Aletti Sgr BNL Sgr MPS Sgr Arca Sgr Fineco (3) Aletti Sgr Sanpaolo AM Fineco SP IMI AM Sgr Nextra Sgr Nextra Sgr (3) Total AUM (bln ) Industry cost leadership 1) Operating costs calculated as administrative expense + depreciation + other operating income and expenses 2) Total AUM = mutual funds/sicavs, discretionary portfolio management, institutional and management mandates 3) In 2001 Fineco included Romagest Sgr and Cisalpina Gestioni Sgr. Nextra included Intesa AM and Comit AM Source: Assogestioni, annual reports 15

16 2. RESULTS BREAKDOWN - FOCUS ON LIFE INSURANCE, Mln AUM Net Inflow Gross of Duplications (1) Net of Duplications H H H H H RETAIL ASSET MANAGEMENT 77,823 75,119-3% (3,501) 1,496 n.s. 2,207 INSURANCE 11,995 16,651 39% 2,790 2,380-15% 2,380 Traditional 5,965 7,789 31% 1,879 1,097 Index 2,987 5,362 80% Unit 3,043 3,496 15% FIP - 4 n.s. - 4 OTHER (2) 13,817 17,256 25% 3,006 1,959-35% TOTAL 103, ,026 5% 2,295 5, % 1,268 5, Insurance inflow: written premiums gross of payments 2. Includes institutional asset management, third-party assets 16

17 2. EMBEDDED VALUE OF INSURANCE BUSINESS (1) Mln Embedded value + 6% Six-month New Business Value amounted to 90.3 mln (179.6 mln in 2002 full year) ASSUMPTIONS Existing Business Value New Business Value Adjusted NAV Embedded Value H Performance rates of assets: For Sanpaolo Vita, forward rates curve as of 06/30/03 (yield to maturity of 4.16% on 5 years and 4.50% on 10 years) For Sanpaolo Life, constant rate of 4.80%. 2. Discount rate: 2.25% spread on performance rates of assets 3. Value are net of: Reinsurance costs Embedded Value 2002 Added Value (period) Dividend Distribution 1) Companies (SP Vita + SP Life) + Distribution network Fees Embedded Value H1 03 Cost of capital (to mantain solvency margins) Taxes 17

18 2. NEW BUSINESS PROFITABILITY 2002 H New Business Value Margin (1) 3.48% 4.05% NBV on equivalent production (2) 32.58% 41.19% Sanpaolo Vita traditional products 27.98% 43.92% Sanpaolo Vita Index 34.10% 35.79% New business profitability increased, due to traditional products margins 1) New Business Value / New Business premiums 2) New Business Value / (10% single premiums + 100% recurring premiums) Note: in 1H 2003 single premiums accounted for 92% of total premiums 18

19 2. PROGRESS VS BUDGET AND THREE YEAR PLAN Mln Actual 2002 Actual 1 H 2003 Budget 2003 Plan 2005 Retail AM net inflow (3,304) 2,207 1,179 3,470 Institutional AM (1) inflow 1,640 1,268 1,500 1,300 Insurance Gross premiums 4,716 2,380 4,097 4,429 TOTAL INFLOW (2) 3,052 5,855 6,776 9,199 AUM GROSS OF DUPLICATIONS 101, , , ,124 AUM NET OF DUPLICATIONS 83,278 90,157 92, ,608 Good commercial results versus budget, due to product innovation, performance and high productivity of branch networks 1) Including management mandates on third-party assets 2) Inflow Net of Duplications, duplications deducted from mutual funds 19

20 AGENDA 1. SANPAOLO WEALTH MANAGEMENT MISSION AND KEY FIGURES 2. RESULTS AND IMPACT ON VALUE GENERATION 3. NEW PROJECTS 4. CONCLUSIONS 20

21 3. SPWM LINES OF DEVELOPMENT 3.1 NON-CAPTIVE DEVELOPMENT Spinoff Insurance Service Business Develop non life business (Egida, JV with Reale Mutua) Develop asset management domestically and internationally (e.g. joint venture with SCH in Allfunds Bank) 3.2 RATIONALIZE GROUP PRODUCTION Complete merger of Banco Napoli AM into Sanpaolo AM Merge Eptafund into Sanpaolo AM Rationalize the insurance sector (Noricum Vita, AdriaVita) Create a single Group entity for alternative investments 3.3 BENEFIT FROM GROUP AND AFFILIATE NETWORKS POTENTIAL New Banco Napoli and Cardine Cassa di Risparmio di Firenze Banca delle Marche 21

22 3.1 INSURANCE SERVICE BUSINESS Sanpaolo Vita has already been offering IT and insurance services for the life business since 1999 (agreement with Poste Vita) New customers have been acquired since then (1), now representing, jointly with the captive business, 20% of the domestic life insurance market (2) October 2003: Universo Servizi inherits existing customer portfolio with the objective of developing the outsourcing business through: Independence in service provision to third-parties Greater focus on external growth 1) Desio Vita, Intesa Vita, Berica Vita (Popolare di Vicenza) 2) In terms of premium written in H1 03. SP Vita and SP Life market share account for 7.1% 22

23 3.1 UNIVERSO SERVIZI SERVICES OFFERED I.T. SERVICES INSURANCE SERVICES ADDITIONAL SERVICES Portfolio management Administration and finance Customer assistance and Call Center Actuarial services Marketing /decision support Sales network monitoring Securities back office Portfolio management Management control Administration Call Center Training ALM consulting Product consulting (product development and actuarial services) Startup support CUSTOMER BENEFITS Flexibility and time to market Simple, modular information system Accessibility to information Efficiency, reduced operating costs 23

24 3.1 DEVELOP NON-LIFE INSURANCE BUSINESS: EGIDA Egida is the JV between Sanpaolo WM and Reale Mutua Assicurazione, providing Property and Personal Protection products to Sanpaolo networks and Poste Italiane (via an agreement with Poste Assicura) Product Range:. Policies sold stand-alone and joint with other financial products (mortgages, consumer lending, SME credit) through Group networks. Increased cross selling level: e.g., 45% of Sanpaolo personal credits and 16% of Banco di Napoli mortgages in 1Q03 (compared to an average of 8% in 2002) have been insured by Egida Successful start of distribution efforts by Poste Italiane 24

25 3.1 FOCUS ON NON-CAPTIVE ASSET MANAGEMENT Increase in non-captive AUM (12/2001 H1 03) = +60% Mutual Funds 56.26% 3.05% Third-party assets Management of third-party assets by SPWM Lux platform. Vigorous growth generated by CR Firenze. GP retail 12.24% 12.8% Institutional mandates Institutional mandates managed by the Sanpaolo Institutional. Important growth in advisory business (e.g., Cariplo pension fund) Life reserves Non-captive 15.27% 16.23% Non-captive distributed funds 0.36% Solid development particularly in Latam Significant contribution in terms of assets and margins (13% of SPWM's asset management fee income) Further development areas: New mandates to the Luxembourg and Italian platforms (1) Target Open Architecture market through offering of institutional services (AFB) 1) Agreement with Carige 25

26 3.1 ALL FUNDS BANK AllFunds Bank (AFB) is the bank created by the Santander Central Hispano Group specialized in integrated services on investment funds for the institutional market AllFunds Bank is currently the leading platform in the distribution and consulting services of Open Architecture investment funds Countries currently covered: Spain, Portugal and Latin America Access via the platform to the products of some 100 asset managers over 40 institutional customers Intermediated assets of 6 bln as of June 2003 Sanpaolo is a 50/50 partner of SCH in AllFunds Bank and will therefore contribute to international development of the business (including Italy) 26

27 3.1 THE VALUE PROPOSITION Personalized offering of institutional solutions linked to the open architecture and multi-brand businesses For Institutional Customers Benefits generated For the Fund Houses Direct access to 98 asset management firms Fund Analysis and Fund Selection Offering of personalized information and reporting services Advisory & Training services Improved rebates due to AFB purchasing power Direct access to a broad range of Third Party Fund Packagers Improved cost structure (operational, IT and legal) by using the services provided by the platform Support in the development of third-party funds business through personalized solutions Possibility of reducing sales and marketing costs by exploiting the AFB network 27

28 3.2 PRODUCTION DISTRIBUTION MAP 12/02 AND TO BE Radical simplification of manufacturing distribution matrix PRODUCT FACTORIES Sanpaolo AM SPWM Lux Group Networks CR Firenze Carige Sanpaolo Alternative Sanpaolo Vita Sanpaolo Life Egida PRODUCT FACTORIES' Sanpaolo B.co Napoli Cardine CR Firenze Carige A S S E T I N S U R A N C E Sanpaolo AM SPWM Lux Bnam Sgr Eptafund EGI Cardine (GPM) Sanpaolo Alternative B.ca IMI - Obiettivo Sanpaolo Vita Sanpaolo Life Noricum Vita Adria Vita Egida 28

29 3.2 BNAM INTEGRATION MILESTONES Data at 12/31/2001: 7 bln in AM, 22 funds, 2 bln in GP s Nov. 02: Mar. 03: Apr. 03: Jul. 03: Sep 1 st, 03: Board approval of the merger plan and launch of the authorization procedure Green light from the Bank of Italy and start of the six months suspension period Shareholders approval Merger deed Merger concluded. Unified product range: merger of products with similar investment policies selective product retention (3 funds) to complete the range unification of discretionary management accounts business Efficient governance of the process Only 12 of the 53 initial resources retained 29

30 3.2 EPTAFUND INTEGRATION MILESTONES Data at 12/31/02: 12.2 bln AUM, 36 funds, 41 GP Lines, 5 open pension funds Jan. 29, 03: Mar. 03: Jun. 03: Nov. 03: Jan. 04: Mar./Apr. 04: 4 Q 04: Eptaconsors control acquired by Sanpaolo IMI Cost-cutting plan (around -5% with respect to 2002) First industrial synergies Acquisition of remaining minority interests Outsourcing of staff functions,it, Sales to Sanpaolo Wealth Management Eptafund products managed by Sanpaolo AM Merger of Eptafund into Sanpaolo Asset Management Products range merger Only 40 resources expected to be retained (out of Eptafund's 138) Drastic, accelerated reduction of the cost base Maintenance of product quality level Future retention of current Cardine, CR Firenze (Giotto) and Carige assets in Eptafund (see new management mandate agreement) 30

31 3.2 RATIONALIZE THE INSURANCE SECTOR DECEMBER 02 TO BE NORICUM 44% Cardine Finanziaria, 51% Unipol, 5% Reale Mutua Exclusive distribution agreement through Carisbo and BPA until 2008 Total reserves: 1.1 bln (Traditional 45%, Financial 55%) 110,000 policies written Acquisition of Unipol and Reale interests SPWM products distributed as of November 03 On 1/1/2004, Noricum portfolio managed by Sanpaolo Vita through Universo ADRIA VITA 75.5% Assicurazioni Generali, 24.5% Cardine Finanziaria Distribution through Cardine s Casse Venete No exclusive agreement Total reserves: 512 mln (Traditional 54%, Financial 46%) Agreement to sell interest to Assicurazioni Generali Adria Vita products replaced by SPWM since March 03 Rapid acceleration of corporate operations in order to exploit Cardine full potential (Sanpaolo Vita wrote 104 mln out of 366 mln premiums through Cardine in 1H 2003) 31

32 3.2 SAN PAOLO ALTERNATIVE INVESTMENTS SANPAOLO ALTERNATIVE INVESTMENTS Funds of hedge funds (1): Brera Market Neutral Brera Multi Strategy AUM (August 03) (2) : 66.3 mln SANPAOLO OBIETTIVO SGR Pure hedge funds (1) : Obiettivo Global Fixed Income Obiettivo Global Equity Obiettivo Multi Strategy Low Risk AUM (August 03) (2) : 83.1 mln Sanpaolo Group resolved to create a single Group entity for alternative investments. Banca Fideuram will also be served through a dedicated fund 1) Funds authorized and marketed 2) Data gross of duplications 32

33 3.3 CR FIRENZE AND BANCA DELLE MARCHE CR FIRENZE BANCA DELLE MARCHE AUM (12/ 31/02) Total funds: mln of which: mln Eptafund mln Giotto Lux (1) NET INFLOW (1H 2003) Total funds: +308 mln of which: 511 mln Eptafund +819 mln Giotto Lux (1) An agreement is being finalized to develop a Luxembourg investment vehicle CR Firenze is switching products to Giotto Fund, managed and administrated by SPWM Lux Projected assets managed by SPWM exceeding 1 bln 1) Including CR Civitavecchia, Orvieto, etc. 33

34 3.3 BANCO NAPOLI AND CARDINE DISTRIBUTION POTENTIAL NUOVO BANCO DI NAPOLI Direct deposits Administrated Life insurance Asset Mgt 1 ASSET MIX (at 31/12/2002) 23% 50% 36% 17% 8% 5% 33% 28% Commercial effort and product range enhancement to generate medium term asset mix realignement with positive effects for SPWM Spimi B.co Napoli CARDINE 1 INTERNALIZATION 2 ASSET MIX (at 31/12/2002) Third parties products (2) (AUM, bln ) GPM % 36% 51% Additional Cardine AUM to be switched to SPWM Medium term benefits from asset mix realignement GPF 1.1 8% 23% Funds % 3% 22% Spimi Cardine 34

35 AGENDA 1. SANPAOLO WEALTH MANAGEMENT: MISSION AND KEY FIGURES 2. RESULTS AND IMPACT ON VALUE GENERATION 3. NEW PROJECTS 4. CONCLUSIONS 35

36 4. RESULTING IMPACTS ON SPWM THREE-YEAR PLAN (1) Ordinary business Improved profitability and pay-in, due to the reduction of the cost base, product innovation and performance Universo Servizi Egida AllFunds Bank Eptafund Insurance rationalization + 5/6 mln of net income (net of intercompany items) New Business: exceeding 200 mln 9 bln in third-party A.M. (2) Transfer of managed assets to SPWM. Estimated final retention of 9.2 bln out of current Eptafund assets (3) Group cost base reduction by mln per year SPWM net income: +2 mln Acquisition of 1.6 bln in insurance reserves Acceleration of insurance premium income vs Three-year Plan (filling the gap) Banca delle Marche Management of 1 bln in assets through the Luxembourg platform 1) In terms of AUM and economic results net of extraordinary items in ) Worldwide, conservative 3) 5.5 bln Sanpaolo AM products through Cardine; 2.5 bln through Giotto Lux; 1.2 bln through Carige SGR with mandate to Sanpaolo AM 36

37 4. EFFECTS OF DESCRIBED ACTIONS ON SPWM AUM (1) bln ASSET MANAGEMENT H 03 AUM Plan 05 AFB Eptafund BDM New AUM Target 2005 INSURANCE H 03 AUM PT 05 Noricum New AUM Target ) Net of duplications 37

38 CONTACT Matteo Greco Paola Grandi Fax Dean Quinn Damiano Accattoli Fax