Banca Carige S p A Cassa di Risparmio di Genova e Imperia : Draft Separate and Consolidated Financial Statements as at 31 December 2020 approved

PRESS RELEASE

DRAFT SEPARATE AND CONSOLIDATED FINANCIAL STATEMENTS

AS AT 31 DECEMBER 2020 APPROVED

ORDINARY AND EXTRAORDINARY SHAREHOLDERS' MEETING

CONVENED FOR 20 APRIL 2021

REQUIREMENTS OF CHAIR GIUSEPPE BOCCUZZI AND

DEPUTY CHAIR PAOLO RAVÀ VERIFIED

•  RESULT BEFORE TAX CONFIRMED

•  ROBUST TREND REVERSAL IN FUNDING AND LENDING VOLUMES

•  HIGHER-THAN-INDUSTRY MOMENTUM IN SALES AND REAL ECONOMY SUPPORT ACTIVITIES

•  TREND OF STRONG RECOVERY IN NET OPERATING INCOME CONSOLIDATES

•  NET INTEREST AND OTHER BANKING INCOME GROWING FASTER THAN INDUSTRY AVERAGE

•  STEEPER-THAN-INDUSTRY-AVERAGE DROP IN ADMINISTRATIVE EXPENSES

•  NET OPERATING INCOME (NET INTEREST AND OTHER BANKING INCOME MINUS ADMINISTRATIVE EXPENSES) FULLY IN LINE WITH PRE-PANDEMIC PLAN FORECASTS

•  EXTREMELY LOW RISK PROFILE

•  RECOGNISED DTA AMOUNT REDETERMINED

Genoa, 10 March 2021 - Banca Carige's Board of Directors has approved the draft

Bank Separate and Group Consolidated Financial Statements as at 31 December 2020, as well as the annual Corporate Governance and Ownership Structure Report for 2020 pursuant to art. 123-bis of the Italian Consolidated Law on Finance, the Non-Financial

Report pursuant to Legislative Decree No. 254/2016, the Pillar 3 Disclosure pursuant to Regulation (EU) No. 575/2013 and the Report on remuneration policy and compensation paid pursuant to art. 123-ter of the Italian Consolidated Law on Finance.

The accounting documents refer to the 11-month ordinary administration period restored on 1 February 2020.

Against a pandemic-affected economic cycle, which radically changed the business outlook embedded in the 2019-2023 Strategic Plan approved prior to the onset of the health emergency, the Board of Directors has positively assessed the results delivered by the Bank in 2020, which confirm the Plan forecasts in terms of revenues and costs

(net interest & other banking income and administrative expenses) and bear witness to the achievement of a higher performance than prior-period levels or industry average in funding / lending volumes and key profit and loss accounts. The recognition of higher-than-expected provisions and loan losses is consistent with the changed environment and in line with the Bank's careful risk management policy.

Further to the press release issued upon approval of the preliminary results on 23

February 2021, the final results approved today by the Board of Directors confirm a consolidated loss before tax of EUR 161.1 mln. As a result of the deep dives conducted to assess the recoverability of Deferred Tax Assets (DTAs) over time in light of the pandemic scenario, non-recognisable DTAs were assessed to amount to EUR 66.3 mln, with loss after tax accordingly being determined at EUR 251.6 mln (vs. a preliminary amount of EUR 185.3 mln).

As at 31 December 2020, the amount of DTAs recognised on a consolidated basis totalled EUR 827 mln, while off-balance sheet DTAs rose to EUR 491 mln.

The new valuation of the recognisable deferred tax assets - arising exclusively under a hypothetically prolonged stand-alone scenario for the Bank in the medium-long term - is neutral in terms of regulatory capital and ratios which, as at 31 December 2020, are confirmed to be fully compliant with the SREP targets, inclusive of guidance, set by the ECB (phased-in CET1 ratio of 12.8% and phased-in Total Capital Ratio of 15.1%, under the standardised approach). Additionally, the new valuation of the recognisable

DTAs does not affect the possibility of their aggregate amount being utilised as part of a business combination process.

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In consideration of the extent of prior losses incurred as a result of the intense turnaround carried out since the Temporary Administration and in line with the pandemic-related assessments that led to the write-down of part of the DTAs, the Board of Directors has resolved, on a merely prudential basis, that a proposal be submitted to the Extraordinary Shareholders' Meeting, which will be held in conjunction with the

Ordinary Shareholders' Meeting on 20 April 2021, for an optional reduction of the

Bank's share capital to cover losses carried forward, by the use of reserves available for this purpose. The proposed share capital reduction - to be implemented subject to obtaining the necessary authorisations from the relevant Authorities - has no impact on the Bank's capital ratios, as it merely aligns the amount of the Bank's share capital to its shareholders equity.

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Banca Carige's Board of Directors has accordingly resolved to convene the Ordinary and Extraordinary Shareholders' Meeting on 20 April 2021 at 10:30 a.m., in one call,

to consider and pass resolutions on the following agenda:

Ordinary session:

• 1) Approval of the Separate Financial Statements and presentation of the

  Consolidated Financial Statements as at 31 December 2020

• 2) Report on remuneration policy and compensation paid

Extraordinary session:

1)Proposal for an optional reduction of share capital to cover losses: related and ensuing resolutions

The Notice of Call for the Shareholders' Meeting, the documentation concerning the

items on the Shareholders' Meeting agenda and the documents approved today will be made available to the public under the terms and by the deadlines set out by regulations in force at the Bank's registered office, on the Bank's corporate websitewww.gruppocarige.it (under Governance/Shareholders' Meetings), on the authorised storage portal eMarket Storage (www.emarketstorage.com) and through all other means allowed by applicable regulations in force.

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