Annual Accounts and Report as at 30 June 2011 Draft - Mediobanca

— Retail and private banking (RPB) returned to profit, with a bottom lineof €77.8m (compared with a €31.6m loss last year), buoyed by a13.1% increase in total revenues, from €844.6m to €955.6m, inparticular net interest income, up 25.6% from €525.7m to €660.5mdue to higher volumes, against costs which were basically stable (upfrom €504.7m to €516.1m) and loan loss provisions down from€360.8m to €323.5m.On the balance-sheet side, treasury assets fell from €15bn to €8.6bn,most of which were used for loans and advances to customers (up from€33.7bn to €36.2bn) and the AFS government bonds and held-to-maturityportfolios (which rose jointly from €6.7bn to €8.4bn). The decrease infunding (from €53.9bn to €51.7bn) is largely the result of reduced use ofthe banking system (down from €6bn to €4.7bn) and short-term paperinstruments, while the CheBanca! retail channel share rose by 4.2%.Assets under management in private banking rose from €11.7bn to€12.7bn.The Group’s main capital ratios remain at high levels, with the coretier 1 ratio at 11.19%, and the total capital ratio at 14.36%.* * *Significant events that have taken place during the twelve monthsunder review include:— the resolutions adopted by shareholders at the annual general meetingheld on 28 October 2010 in respect of:– Group staff remuneration policies which, in compliance with thenew regulatory requirements in this area, include use of a newdeferred remuneration equity instrument (performance shares), inconnection with which a resolution to increase the company’s sharecapital (with up to 20 million new Mediobanca shares being issued)and use of treasury shares owned by the Bank for this purpose wasapproved;– 11