Banca Carige S p A Cassa di Risparmio di Genova e Imperia : Title main2021 Report on Operations and Consolidated Financial Statements

FINANCIAL

STATEMENTS

REPORT ON OPERATIONS AND FINANCIAL STATEMENTS

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BANCA CARIGE GROUP

2021 REPORT ON OPERATIONS AND CONSOLIDATED FINANCIAL STATEMENTS

INTRODUCTION	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
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	15
-	Strategy and business performance	24
-	Key events in the reporting period	26
-	Ownership structure	33
-	Corporate governance	33
-	Non-Financial Report	34
-	Carige share price	34
-	Distribution channels	34
-	HR management	36
-	Sales and Innovation	37
-	Profit & Loss results	40
-	Balance sheet items, funding and lending	47
-	Fixed assets and equity investments	56
-	Cash Flow Statement, Shareholders' Equity and Risk Management	57
-	Group companies	62
-	Social and cultural promotion activities	66
-	Main risks and uncertainties and outlook on operations	67
CONSOLIDATED FINANCIAL STATEMENTS	72
CONSOLIDATED FINANCIAL ACCOUNTS	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	87
Section 3 - Scope and methods of consolidation	98
Section 4 - Subsequent events	106
Section 5 - Other information	107
A 2 - Main items of the consolidated financial statements position and results of the	113
operations pursuant to art. 73, para. 4 of the Italian Consolidated Law on Banking
A 4 - Information on fair value	154
A 5 - Information on "Day one profit/loss"	163
Part B - Consolidated Balance sheet	164
Part C - Consolidated Income Statement	246
Part D - Consolidated Comprehensive Income	278
Part E - Information on risks and risk hedging policies	280
Part F - Consolidated shareholders' equity	377
Part G - Business combinations	383
Part H - Related-party transactions	385
Part I - Share-based payments	390
Part L - Segment reporting	392

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Part M - Leases	397
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CERTIFICATION OF THE CONSOLIDATED FINANCIAL STATEMENTS PURSUANT TO ART. 81-TER	404
OF CONSOB REGULATION NO. 11971 OF 14 MAY 1999 AS SUBSEQUENTLY AMENDED AND
SUPPLEMENTED
INDEPENDENT AUDITORS' REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS	406
ANNEXES	418

NOTE	The following conventional signs are used in the tables of the Report on Operations and in 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 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 the 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).

It also takes into account the provisions included in the Notice from the Bank of Italy 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 intermediaries1.

This Consolidated Financial Report consists of the Financial Statements as at 31 December 2021, 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 the overall business performance and the various segments of the Group's business, as well as the 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.

The Banca Carige Group's Financial Statements are audited by Deloitte & Touche S.p.A for the nine-year period 2021-2029

1 The communication requires that, in describing the general policies used to prepare the financial statements, account should 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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