Co-operative Banking

in Trentino and in Italy

Trento, October 13th 2009

Dott. Vincenzo VisettiChief of Secretary

TRENTINO FEDERATION OF CO-OPERATIVES

Co-operative Banks

System of autonomous banks

Local and mutual banks

Principle of subsidiarity

Co-operative structure

Entrepreneurial structure

The Co-operative Banks System

in Italy

The associative structure

is organized at three levels:

single banks

local federation

national federation

The Co-operative Banks System

in Italy

The entrepreneurial structure

is organized at two levels:

national level, with Iccrea Holding at the top of

Iccrea Group (wich controls many other

subsidiaries)

local level, with Cassa Centrale Banca (Trento)

and Cassa Centrale Raiffeisen (Bolzano)

The Co-operative Banks System

in Italy

CO-OPERATIVE BANKS AND BRANCHES: DISTRIBUTION IN ITALY

BANKS BRANCHESbcc Banks share % bcc Banks share %

Regions (a) (b) (a)/(b) (a1) (b1) (a1)/(b1)

Piemonte-V.d'Ao-Lig. 12 40 30,0 199 3756 5,3

Lombardia 48 190 25,3 706 6567 10,8

Trentino 47 52 90,4 333 540 61,7

A. Adige 51 57 89,5 195 416 46,9

Veneto 41 60 68,3 622 3597 17,3

Friuli 16 26 61,5 215 957 22,5

Emilia 25 59 42,4 394 3549 11,1

Toscana 38 63 60,3 298 2508 11,9

Marche 21 31 67,7 183 1207 15,2

Lazio-Umbria-Sardegna 30 81 37,0 276 4004 6,9

Abruzzo-Molise 11 18 61,1 88 847 10,4

Campania 22 34 64,7 124 1648 7,5

Puglia-Basilicata 29 39 74,4 131 1696 7,7

Calabria 18 20 90,0 92 538 17,1

Sicilia 31 38 81,6 149 1801 8,3

TOTALE 440 808 54,5 4.005 33.631 11,9

Fonte: Banca d'Italia

RILEVAZIONE AL 06-2008

Trentino Co-operative Banks

History

1892 First Co-operative Bank, Cassa Rurale,

founded in Trentino

1925 – 1945 Co-operative Banks partial setback (fascism)

1974 Cassa Centrale founded by the 133 Co-operative

Banks

1980s – 2008 Coop Bank mergers:

133 Coop Banks merged into 47

2009 Market share: 66% of total deposits collected &

55% of total loans granted in Trentino

47 Co-operative banks in Trentino

47 Casse Rurali +

Cassa Centrale

381 branches

The Co-operative Banks System

in Trentino

Branches of Casse Rurali are working in 190 over a total of 223

municipalities in Trentino.

Only branches of Casse Rurali operate in 132 municipalities in Trentino.

Inhabitants of those 132 municipalities are 147.000 (29% of Trentino

total population).

As at 2008, Trentino counted on 548 active branches, of whom 336

(61%) belonged to the Casse Rurali system and 212 to other kind of

banks, thus determining the highest level of banking industry presence

in Italy.

Banking industry in Trentino

957

1.235

9569509379599609779839911.0021.021

948

1.026

1.238

1.757

1.446

1.837

1.772

2.334

500

700

900

1.100

1.300

1.500

1.700

1.900

2.100

2.300

2.500

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

provincia BolzanoProvincia Trento

Provincia VeronaProvincia BresciaItalia

Inhabitants per branch 1996-2008:

comparison among provinces

Casse Rurali Trentine:

main figures (2008 – 2009)

Dec., 2008 June, 2009 variation

N. CASSE RURALI 47 47 0

N. BRANCHES 380 381 + 1

N. EMPLOYEES 2.309 2.332 + 23

N. MEMBERS 113.600115.790 + 2.190

N. CLIENTS 440.000 445.000 + 5.000

DEPOSITS: 66 % of the province of Trento totally collected deposits

CREDITS: 55 % of the province of Trento totally granted credits

NET ASSETS: 1,382 Mn. €.

30%

35%

40%

45%

50%

55%

60%

65%

70%

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

quote mercato depositi(senza obbligazioni)quote mercato impieghi

Casse Rurali Trentine: quote di mercato in Provincia di

Trento dal 1976 al 2008

DEPOSITS UPWARD DRIFT

(Millions €.) 8/2008 8/2009 var. %

Direct deposits 11.622 12.473 +7,3%

Indirect deposits 3.689 3.385 - 8,2%

Totally collected

deposits 15.311 15.388 +3,5%

LOANS GRANTED TO CLIENTS:

UPWARD DRIFT

Millions €. 8/2008 8/2009 var. %

Totally granted credits 10.878 11.489 +5,6 %

Loans granted to enterprises 6.953 7.444 +7,1 %

Of whom to medium enterprises 4.049 4.323 +6,8 %

Of whom to small enterprises 2.905 3.120 +7,4 %

Loans granted to families 3.730 3.896 +4,4 %

No of granted enterprises 26.623

of whom companies 8.048

of whom craftmanship and family businesses 20.575

June 2009

No of granted families (i.e. household loans) 116.205

LOANS GRANTED TO CLIENTS:

UPWARD DRIFT

Loans to enterprises divided by economic sectors

Economic sectors €. Mn % var.

Agriculture 478 + 10,8%

Manufacturing industry 1,423 + 1,3%

Building 1,701 + 7,8%

Trade 1,022 + 2,1%

Hospitality 1,045 + 9,1%

Services 1,774 + 12,3%

TOTAL 7,444 + 7,1%

% CompositionAgriculture

6.6%

Manufacturing industry

19.5%

Building

22%Trade

14%

Hospitality

14%

Services

23.7%

4,4%

13,2%

6,8%

7,4%

6,0%

5,2%

6,2%6,4%

8,1%

10,5%

11,2%

15,7%

14,3%13,5%

10,2%

9,5%

7,5%

7,6%

8,7%

8,4%

7,2%

8,3%

7,4%

8,0%

9,5%9,9%

10,9%

11,9%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

18,0%

dic-07 gen-08 feb-08 mar-08 apr-08 mag-08 giu-08 lug-08 ago-08 set-08 ott-08 nov-08 dic-08 gen-09 feb-09 mar-09 apr-09 mag-09 giu-09

Famiglie consumatrici

Società non finanziarie

Artigiani e altre famiglie produttrici

TOTALE IMPIEGHI

Crediti erogati per settore di attività: var.% annua da dice 2007 a giu 2008

INTEREST RATE 2008- 2009

June-2008 June-2009 Var.

Average interest rate on loans 6,04 4,31 -1,74

of whom to enterprises 6,02 4,28 -1,73

of whom to families 6,10 4,35 -1,75

“… in the actual phase the Trentino Casse Rurali have shown

decisively superior yearly growing financing rates to small

enterprises and residents’ families in our province against the

average of other banks. On the overall, it is also thanks to

their support that the granted loans increase to enterprises

and families in Trentino has been among the highest

registered in the various italian regions. The short term

interest rates have shown to be the lowest applied ones…”

(dott. G. Salvo direttore Banca d’Italia TN)

They say about us: Bank of Italy

They say about us ….

Localism and trust

“Local, not for profit banks care for identity and culture peculiar to their

territories.

They can assure the financing of the aim of serving society.

Keeping wealth within a community is a very important task.

The savings we put into our banks must be re-invested locally.

This is also a way in which local banks can contribute to the

strengthening of local culture.

Which fosters trust. And without trust, there is no market .”

Jeremy Rifkin, american economist, 2002

As yeast for the bread so the Casse

Rurali for the local community