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PRESS RELEASE

EXTRAORDINARY GROUP EFFICIENCY ENHANCEMENT AND MANAGEMENT REBALANCING MEASURES REDEFINITION OF THE ORGANISATIONAL AND STRATEGIC STRUCTURE WITH RESTRUCTURING OF THE

REGIONAL PRESENCE BASED ON A MORE STREAMLINED BUSINESS MODEL

SPENDING REVIEW. REDUCTION OF PERSONNEL COSTS. REDUNDANCIES ESTIMATED AT 410 FTE STRUCTURING OF THE ASSET ENHANCEMENT DIVISION

FOR THE MANAGEMENT OF PROBLEM LOANS

THE GROUP'S SOLID LIQUIDITY PROFILE ALLOWED THE FULL REPAYMENT OF €1.3 BILLION OF LTRO (LONG TERM REFINANCING OPERATION) - EXPOSURE TO THE ECB ELIMINATED

CALLING OF THE EXTRAORDINARY SHAREHOLDERS' MEETING PUT BACK TO AFTER APPROVAL OF THE DRAFT FINANCIAL STATEMENTS FOR 2014

Arezzo, 22 December 2014 - The Board of Directors of Banca Etruria, which met today, chaired by Lorenzo Rosi, resolved to implement, within the framework of the integration process entered into with a more significant bank, and with a view to reducing costs and recovering operating efficiency, a process of decisive company reorganisation targeted at defining a more consistent structure, also in terms of size, with respect to the activities performed and a changed economic environment which calls for increased responsiveness in the interest of households, companies and the reference area.
The initiatives make provision for a series of structural measures aimed at recovering, also in relation to an economic scenario that remains weak, operating efficiency and productivity for a management rebalancing of the Group that is sustainable and in line with the evolution of the banking system.
These extraordinary measures incorporate the start of a rigorous spending review across the board, including through the definition of a new organisational model, with the establishment of a specific company division dedicated to the industrialised management of so-called non-performing loans, and the optimisation of personnel costs, in relation to estimated redundancies of 410 FTE with respect to current organisational requirements. The group of measures is aimed at achieving a significant increase in Group efficiency and the creation of a more suitable structure to facilitating integration with a leading banking partner.
In the meantime, owing to its sound liquidity position, the Bank has gradually repaid
€1.3 billion of the LTRO (Long term refinancing operation), eliminating its exposure to the ECB in the current month.
In view of the above, without prejudice to the objective of aggregation with a leading banking group, the Board of Directors of Banca Etruria resolved to postpone the calling of the extraordinary shareholders' meeting for approval of the transformation of the bank into a joint-stock company until after the presentation of the draft financial statements for 2014.

For information:

Investor Relations Service tel. 0575 337768 - 849 - 739

Regional Relations Service tel. 0575 337317 -206

This press release will be published in full on the bank's website at the address www.bancaetruria.it.

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