Banca Carige S p A Cassa di Risparmio di Genova e Imperia : Consolidated Financial Report for the period 01.02.2020-31.12.2020

CONSOLIDATED FINANCIAL REPORT FOR THE PERIOD 01.02.2020-31.12.2020

BANCA CARIGE GROUP

CONSOLIDATED FINANCIAL REPORT FOR THE PERIOD

01.02.2020-31.12.2020

	INTRODUCTION	4
	STRUCTURE OF THE BANCA CARIGE GROUP	5
	PARENT COMPANY'S BOARD OF DIRECTORS, BOARD OF STATUTORY AUDITORS AND	6
	INDEPENDENT AUDITORS AS AT 31 DECEMBER 2020
	PARENT COMPANY'S BOARD OF DIRECTORS, BOARD OF STATUTORY AUDITORS AND	7
	INDEPENDENT AUDITORS AS AT DATE OF PUBLICATION
	POWERS AND DELEGATED AUTHORITIES OF THE GOVERNING BODIES	8
	FINANCIAL HIGHLIGHTS FOR THE GROUP	9
	REPORT ON OPERATIONS	12
-	Real economy and money market	13
-	Covid-19: Regulatory measures and Carige Group initiatives	17
-	Strategy and business performance	26
-	Key events in the reporting period	28
-	Ownership structure	36
-	Corporate governance	36
-	Non-Financial Report	37
-	Carige share price	37
-	Distribution channels	37
-	HR management	39
-	Sales and Innovation	39
-	Profit & Loss results	43
-	Balance sheet items, funding and lending	49
-	Fixed assets and equity investments	59
-	Cash Flow Statement, Shareholders' Equity and Risk Management	60
-	Group companies	64
-	Social and cultural promotion activities	68
-	Main risks and uncertainties and outlook on operations	69
	CONSOLIDATED FINANCIAL REPORT	72
	CONSOLIDATED FINANCIAL STATEMENTS	73
-	Consolidated Balance Sheet	74
-	Consolidated Income Statement	76
-	Consolidated Statement of Comprehensive Income	77
-	Statement of Changes in Consolidated Shareholders' Equity	78
-	Consolidated Statement of Cash Flows	80
	CONSOLIDATED EXPLANATORY NOTES	82
	Part A - Accounting Policies	83
	A 1 - Introduction	84
	Section 1 - Statement of compliance with international accounting standards	84
	Section 2 - Preparation criteria	86
	Section 3 - Scope and methods of consolidation	97
	Section 4 - Subsequent events	105
	Section 5 - Other information	106
	A 2 - Main items of the Financial Statements	111
	A 4 - Information on fair value	150
	A 5 - Information on "Day one profit/loss"	159
	Part B - Consolidated Balance sheet	160
	Part C - Consolidated Income Statement	234
	Part D - Consolidated Comprehensive Income	261
	Part E - Information on risks and risk hedging policies	263
	Part F - Consolidated shareholders' equity	360
	Part G - Business combinations	366
	Part H - Related-party transactions	368
	Part I - Share-based payments	372
		2

Part L - Segment reporting	374
Part M - Leases	378
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CERTIFICATION OF THE CONSOLIDATED FINANCIAL STATEMENTS PURSUANT TO ART. 81-TER	385
OF CONSOB REGULATION NO. 11971 OF 14 MAY 1999, AS SUBSEQUENTLY AMENDED AND
SUPPLEMENTED
INDEPENDENT AUDITORS' REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS	387
ANNEXES	396

NOTE	The following conventional signs are used in the tables of the Report on Operations and the Financial Statements:
	- when data is nil
	… when data is not significant

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INTRODUCTION

The Banca Carige Group 's Consolidated Financial Statements for the period 1 February 2020 - 31 December 2020 were prepared in accordance with the international accounting standards IAS/IFRS in force as at this reporting date and related interpretations (SIC/IFRIC) officially approved by the European Commission and in line with guidance provided by the Bank of Italy in its Circular No. 262 of 22 December 2005 and subsequent updates (Banks' Financial Statements: Layout and Preparation), having regard to the additions published on 15 December 2020 to the provisions of the same Circular by the Bank of Italy in the context of the Covid-19 pandemic1, as well as to the 'Covid-19 - Warning notice on financial statements', published by Consob on 16 February 20212.

In the preparation of these Consolidated Financial Statements, account was also taken, as far as applicable, of the interpretative and supporting documents issued by the main European and international institutions that provide recommendations on the information to be disclosed in the Financial Report, in relation to the application of certain standards (in particular IFRS 9) or certain transactions in the context of the Covid-19 pandemic.

This Consolidated Financial Report comprises the Financial Statements as at 31 December 2020, the Explanatory Notes and Annexes, and is accompanied by the Directors' Report on Operations.

Included in the financial statements are the:

• Balance sheet;
• Income Statement;
• Statement of comprehensive income;
• Statement of changes in Shareholders' equity;
• Statement of cash flows.

The Report on Operations provides the required information concerning business performance as a whole and for the various segments of the Group's business, as well as main risks and uncertainties encountered, particularly in consideration of the effects arising from the Covid 19 crisis.

The Banca Carige Group's Financial Statements are audited by EY S.p.A.

1. This communication supplements the provisions governing banks' financial statements contained in Circular 262 of 2005 and subsequent updates, with a view to providing the market with information on the effects that Covid-19 and the measures to support the economy have had on the strategies, objectives and policies of risk management and on the profit/loss and balance sheet position of intermediaries.
2. Warning notice No. 1/21 of 16 February 2021, re.: Covid-19 - measures to support the economy - Warning notice on the information to be provided: by supervised issuers, supervisory bodies and auditing firms in relation to the 2020 financial statements prepared in accordance with the international accounting standards; by companies publishing 2020 non-financial reports; by listed issuers and supervisory bodies at meetings where resolutions on capital measures are adopted; by preparers of bidding documents and prospectuses; by issuers subject to the Market Abuse Regulation (MAR).

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STRUCTURE OF THE BANCA CARIGE GROUP

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