Dear Shareholders,

2010 was an important and busy year, in many ways worrying but full of extraordinary opportunities, despite a market characterized by limited growth as well as a deterioration in asset quality for lenders. We saw incredible opportunities for growth and value generation against a background of not always foreseeable risks and a host of difficulties arising from the macroeconomic and financial markets scenario.

Banca IFIS made further progress by increasing its market share in all the segments in which it operates, and by making significant advances in terms of its financial, organisational and product structures.

The launch or the coming to fruition of new ways of doing business had an impact on both the funding and business credit sectors, two areas which the Bank has worked in for almost thirty years.

Banca IFIS is aware that it must continue to invest in enhancing its structures in order to provide the best possible service to all its customers, both companies and savers, and it will show equal determination in 2011 in its drive for growth, reassured by the consensus it has received and confident in its ability to provide those services which are needed by the market.

2010 saw a significant share capital increase subscribed by all shareholders to support the Bank’s growth programs. Take up was excellent despite an objectively difficult moment on equity markets. The resources obtained have been used to enhance equity and allow us to plan calmly for the future.

The acquisition of the Toscana Finanza group is in its final stages thanks to the completion of a public offer. This will mean the integration of a business managing tax and non-performing receivables, offering good opportunities for synergy with the Bank’s own operations, good potential profits, and attractive growth prospects. We believe that all the shareholders in Toscana Finanza, both those taking up the offer and those not accepting it thus remaining welcome shareholders in Banca IFIS, can consider themselves satisfied.

The Board of Directors was renewed during the year and currently consists of nine directors, two of whom are women. Governance has been enhanced and there has been further progress in the work of the Board Committees responsible for support and control.

Profits continued to grow in 2010 with excellent results in terms of equity. In consideration, on the one hand, of the need to maintain a high level of equity against risks, and, on the other, the desire to continue to remunerate shareholders, taking into account also the treasury shares held, Banca IFIS considers it possible to distribute a significant dividend to shareholders, partly in the form of shares in order to further enhance equity.