Banca Carige S p A Cassa di Risparmio di Genova e Imperia : 2021 Report on Operations and Financial Statements

FINANCIAL

STATEMENTS

REPORT ON OPERATIONS AND FINANCIAL STATEMENTS

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BANCA CARIGE S.P.A.

2021 REPORT ON OPERATIONS AND FINANCIAL STATEMENTS

	INTRODUCTION	4
	NOTICE OF ORDINARY SHAREHOLDERS' MEETING	5
	STRUCTURE OF THE BANCA CARIGE GROUP	6
	PARENT COMPANY'S BOARD OF DIRECTORS, BOARD OF STATUTORY AUDITORS AND	7
	INDEPENDENT AUDITORS AS AT 31 DECEMBER 2021
	FINANCIAL HIGHLIGHTS FOR THE BANK	8
	REPORT ON OPERATIONS	10
	- Real economy and money market	11
	- Covid-19: Regulatory measures and Carige Group initiatives	13
	- Key events in the reporting period	22
	- Corporate governance	27
	- Non-Financial Disclosure	27
	- Carige share price	27
	- Profit & Loss results	28
	- Balance sheet items, funding and lending	34
	- Fixed assets, equity investments and treasury shares	43
	- Cash Flow Statement, Shareholders' Equity and Risk Management	43
	- Relations with shareholders and investees	46
	- Main risks and uncertainties and outlook on operations	48
	BANCA CARIGE'S FINANCIAL STATEMENTS	52
	BANCA CARIGE'S FINANCIAL ACCOUNTS	53
	- Balance Sheet	54
	- Income Statement	56
	- Statement of comprehensive income	57
	- Statement of changes in Shareholders' equity	58
	- Statement of Cash Flows	60
	EXPLANATORY NOTES	63
	Part A - Accounting policies	64
	A 1 - Introduction	65
	Section 1 - Statement of compliance with international accounting standards	65
	Section 2 - Preparation criteria	67
	Section 3 - Subsequent events	78
	Section 4 - Other information	80
	A 2 - Main items of the consolidated financial position and results of the operations	86
	pursuant to art. 73, para. 4 of the Italian Consolidated Law on Banking
	A 4 - Information on fair value	125
	A 5 - Information on "Day one profit/loss"	134
	Part B - Balance Sheet	135
	Part C - Income Statement	206
	Part D - Comprehensive income	231
	Part E - Information on risks and risk hedging policies	234
	Part F - Shareholder's equity	322
	Part G - Business combinations	328
	Part H - Related-party transactions	330
	Part I - Share-based payments	334
	Part L - Segment reporting	336
	Part M - Leases	338
	CERTIFICATION OF THE SEPARATE FINANCIAL STATEMENTS PURSUANT TO ART. 81 TER OF	345
	CONSOB REGULATION NO. 11971 OF 14 MAY 1999 AND SUBSEQUENT AMENDMENTS AND
	PROPOSAL FOR THE SHAREHOLDERS' MEETING	347
	BOARD OF STATUTORY AUDITORS' REPORT	349
	INDEPENDENT AUDITORS' REPORT ON BANCA CARIGE S.P.A.'S FINANCIAL STATEMENTS	373
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		ANNEXES	383
		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

Banca Carige S.p.A.'s Financial Statements for the year ended 31 December 2021 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 ("Banks' Financial Statements: Layout and Preparation", 7th update of 29 October 2021).

Moreover, the provisions contained in the Bank of Italy's Communication of 21 December 2021 that supplements the provisions of Circular 262 of 22 December 2005, with a view to providing the market with information on the effects that the 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, were taken into account.1

These Financial Statements comprise the Financial Accounts as at 31 December 2021, the Explanatory Notes and Annexes, and are 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 Bank's business, as well as main risks and uncertainties encountered, particularly in consideration of the current macroeconomic context - where the ongoing Covid-19 pandemic continues to cause uncertainties - and the geopolitical context regarding the events in Ukraine.

These Financial Statements are audited by Deloitte & Touche S.p.A for the nine-year period 2021-2029.

For further information on issues not dealt with in detail in this Report, reference should be made to the information provided in the Consolidated Report on Operations.

1 The communication requires that, in describing the general policies used to prepare the financial statements, account be taken, where applicable, of the main interpretative and supporting documents, issued by European regulatory and supervisory bodies and by standard setters, addressing the application of certain standards in relation to the impact of Covid-19.

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