Net Profit of 480 Million Euro ( 28.9%)

Strong growth of results of ordinary business underpinned by tight control of operating costs and good commercial flows.

1. • Growth of main revenue components
   • Net interest income 4%
   • Revenues 6.2%
2. Limitation of operating costs ( 0.8%) notwithstanding non-recurring items
3. Improvement of cost-income ratio: 59.5% (58.5% excluding demanning costs) vs. 64.8% at year-end
4. • Strong increase in operating volumes and respective market shares
   • Lending: 9.2%
   • Direct funding: 6.3%
   • Consum.it disbusements: 32.3% (5.1% market share vs. 4.6% at 2005 year-end)
   • MPS Leasing and Factoring payouts: 11.6% (3.4% leasing market share vs. 2.7% at 2005 year-end and factoring market share of 4.8% vs. 4.1% at 2005 year-end)
   • MPS Banca per l`Impresa placements: 14.7%
5. • Growth in network and customers
   • 26,000 new customers since beginning of year
   • 23 new branches and 7 new Private Centres since beginning of year
6. Tangible decrease (-15% since beginning of year) of total net deteriorated loans
7. Clear improvement of capital ratios: Tier 1 at 6.81% vs. 6.51% (2005 year-end) and solvency ratio of 10% vs. 9.16% (2005 year-end)
8. Initiated all the industrial projects envisaged by the Business Plan 2006-2009
9. Growth of front-office/back-office ratio by 1% over previous quarter thanks to hire of 200 new young employees for network and acceptance by some 400 employees (largely concentrated in central units) of incentive-based demanning plans