____________
(2) During the preparation of the interim statement as at 30 September 2008, in the wake of the global financial crisis certain amendments to international accounting standards were introduced and adopted by the European Commission. In short, in accordance with these amendments it is possible to reclassify - in specific circumstances considered to be rare - unquoted financial instruments, or no longer quoted, in an active market and no longer held for trading or available for sale: in particular, out of the category “fair value through profit and loss” into the categories “available-for-sale” or “the held-to-maturity” or “loans and receivables” and out of the category “available-for-sale” into the category “loans and receivables”. The Group, largely basing on the prices as at 1 July 2008, reclassified financial assets held for trading of 4,140 million euro into loans and receivables and of 235 million euro into financial assets available for sale. If this reclassification had not been made, the profits/losses on trading for the third quarter of 2009 would have recorded a positive pre-tax impact of 148 million euro (with a positive impact of 80 million euro in the first nine months of 2009 and a negative impact of 459 million euro in full-year 2008). The Group also reclassified financial assets available for sale of 6,244 million euro into loans and receivables. Had these reclassifications not been made, a negative pre-tax impact of 543 million euro would have been recorded directly in the shareholders’ equity as at 30 September 2009 (with a positive impact of 167 million euro in the third quarter of 2009 and 319 million euro in the first nine months of 2009).

The income statement for the first nine months of 2009

The consolidated income statement for the first nine months of 2009 registered operating income of 13,416 million euro, down 5.4% from 14,183 million euro in the first nine months of 2008.

As part of this, in the first nine months of 2009 net interest income amounted to 8,071 million euro, down 7.7% from 8,740 million euro for the same period of 2008.

Net fee and commission income was 3,958 million euro, registering a 13.7% decrease from 4,586 million euro in the first nine months of 2008. Commissions on commercial banking activities were down 4.4% and those on management, dealing and consultancy activities (which include portfolio management, distribution of insurance products, placement of securities, etc.) fell 23.7%.

Profits on trading for the period were 993 million euro - with a negative impact of 36 million euro on structured credit products - nearly three times as high as the 301 million euro profits on trading in the same period last year (that had recorded a negative impact of 236 million euro from the crisis on structured credit products). Without the IAS reclassification of financial assets held for trading into loans and receivables and financial assets available for sale, trading profits would have recorded a positive pre-tax impact of 80 million euro.

Income from insurance business amounted to 304 million euro against the 229 million euro of the first nine months of 2008.

Operating costs amounted to 6,982 million euro, down 3.5% from 7,237 million euro in the first nine months of 2008. In detail: personnel expenses fell 3.4%, administrative expenses were down 0.3% despite higher taxes from the intra-group VAT and adjustments dropped 17.7%.

Consequently, operating margin was 6,434 million euro, down 7.4% compared to the 6,946 million euro of the same period in 2008, with the cost/income ratio at 52% compared to 51% in the first nine months of 2008.

As with the first nine months of 2008, no goodwill impairment was recorded in the period.

Net provisions and adjustments (net provisions for risks and charges, net adjustments to loans, net impairment losses on other assets) amounted to 2,910 million euro compared to the 1,772 million euro of the first nine months of 2008. Net provisions for risks and charges were 198 million euro compared to 154 million euro in the first nine months of 2008. Net adjustments to loans were 2,637 million euro compared to 1,567 million euro in the first nine months of 2008. Net impairment losses on other assets were 75 million euro compared to 51 million euro in the same period last year.

Profits/losses on investments held to maturity and on other investments were a positive 28 million euro compared to profits of 474 million euro for the same period last year which had benefited from the 268 million euro capital gain made on the disposal of Agos.

Income before tax from continuing operations posted 3,552 million euro, down 37.1% compared to the 5,648 million euro of the first nine months of 2008.

Consolidated net income amounted to 2,262 million euro, against 3,781 in the first nine months of 2008 (which also included a net capital gain of approximately 930 million euro from the disposal of 198 branches) after accounting for:
- taxes of 834 million euro, which benefited from a 511 million euro release of deferred taxes in the first quarter relating to detaxation of intangibles with a finite life and brand name;
-  integration charges (net of tax) of 130 million euro;
- charges from purchase cost allocation (net of tax) of 295 million euro;
- income after tax from discontinued operations of 45 million euro which included net capital gains of 63 million euro from the disposal of CR Orvieto and 17 branches;
-  a minority interest of 76 million euro.
Excluding the main non-recurring items, net income was 2,113 million euro against the 3,401 million euro of the first nine months of 2008.

Balance sheet as at 30 September 2009

As regards the consolidated balance sheet figures, as at 30 September 2009 loans to customers amounted to 378 billion euro, down 1.5% from the figure as at 30 September 2008 (up 2.5% taking into account average volumes instead of those at the end of period) and down 4.4% from the figure as at 31 December 2008. Total non-performing loans (doubtful, substandard, restructured and past due) - net of adjustments - amounted to 17,968 million euro, up 55.9% compared to the 11,524 million euro as at 31 December 2008. In detail, doubtful loans increased from 3,968 to 4,859 million euro; the incidence on total loans was 1.3% (1% as at year-end 2008 and 1.2% as at 30 June 2009) with a coverage ratio of 68% (70% as at year-end 2008 and 69% as at 30 June 2009). Total coverage was 125% taking into account collateral and guarantees to doubtful loans in addition to specific provisions. Substandard loans increased from 5,291 to 9,017 million euro, mainly due to prudent classifications of loans in the second quarter which however have high collateral coverage and thus required limited provisioning. Restructured loans rose from 399 to 1,994 million euro mainly on the grounds of a single loan classified as restructured in the second quarter which did not require provisioning. Loans past due increased from 1,866 to 2,098 million euro.

Customer financial assets were 1,006 billion euro (after netting referred to items included in both direct and indirect customer deposits), down 2.4% from 30 September 2008 and up 2.3% from 31 December 2008. Under customer financial assets, direct customer deposits amounted to 434 billion euro, up 0.3% from 30 September 2008 and up 0.7% from year-end 2008 while indirect customer deposits amounted to 598 billion euro, down 4.1% from 30 September 2008 and up 3.7% from year-end 2008. Assets under management totalled 223 billion euro, down 5.3% from 30 September 2008 and up 4.3% from year-end 2008. As for bancassurance, in the first nine months of 2009 new business for life policies amounted to 9.1 billion euro (54.6% higher than the first nine months of 2008). Assets under administration and in custody amounted to 375 billion euro, down 3.3% from 30 September 2008 and up 3.2% from 31 December 2008.

Capital ratios as at 30 September 2009 have been calculated without assuming any dividend distribution since, while confirming resumption of dividend payment on ordinary shares, it would be premature to quantify its size. Applying the Basel 2 Foundation approach, capital ratios are: 7.2% for the Core Tier 1 ratio (6.3% as at 31 December 2008), 8% for the Tier 1 ratio (7.1% at year-end 2008) and 11.6% for the total capital ratio (10.2% at year-end 2008).

At their meetings of 29 September 2009, the Management Board and the Supervisory Board within their respective competences decided, in light of the results achieved by the Group and the foreseeable trend of the economy,
- not to issue the Tremonti Bonds;
- to confirm the intention to maintain the Group’s Core Tier 1 ratio and Tier 1 ratio at structural levels not lower than 7% and 8% respectively in the coming years even if lending activity starts growing again, with no need for a rights issue, and resuming dividend payment on ordinary shares for 2009 payable in 2010;
- to take a substantial capital strengthening action immediately - up to a further 40 basis points - with a 1.5 billion euro Tier 1 issue which was successfully launched in October;
- to replace in the short term the “provisional” effect of 100 basis points that would have been provided by the Tremonti Bonds with structural effects of at least the same size resulting from capital management transactions - being disposals, either partial or full, partnerships, listings - on non-core assets, which are expected to take place by the time of the shareholders’ meeting in April 2010;
- to pursue additional capital management actions able to further strengthen the capital base by at least another 100 basis points, if needed.

An additional positive effect is expected from the application of Basel 2 Advanced, with a potential benefit - subject to the Bank of Italy’s approval and estimated on the basis of the current economic situation - of about 25 basis points for the Core Tier 1 ratio achievable in 2010.

Thus pro-forma capital ratios - reckoning also the effects from the ongoing finalisation of the sale of 50% of Findomestic and the purchase of 50% of Intesa Vita - should exceed 9.6% for the Core Tier 1 ratio, 10.8% for the Tier 1 ratio and 14.4% for the total capital ratio.

* * *

As fully detailed when disclosing results for 2007 and 2008, Intesa Sanpaolo is only indirectly exposed to the US subprime mortgage crisis through structured credit products which were negatively affected by the dramatic decline in prices from the fourth quarter of 2007 - with impact on profits on trading mainly in terms of write-downs - to the first quarter of 2009 inclusive, whilst starting recovering as of the second quarter of 2009 with positive effects on profits on trading, as commented upon previously in the income statement section. The Group had a gross and net risk exposure to structured credit products with underlying US subprime of 39 million euro as at 30 September 2009. Full and detailed information concerning structured credit products held by the Group, with particular reference to its exposure in the financial crisis, is included, as usual, in the Interim Statement as at 30 September 2009 approved by the Management Board as well as in the specific slides of the presentation of results made available to the market.

* * *

As at 30 September 2009, the Intesa Sanpaolo Group’s operating structure had a total network of 7,983 branches - of which 6,090 in Italy and 1,893 abroad - with 106,307 employees, 2,483 lower than at 31 December 2008.

* * *

Breakdown of results by business area

The Banca dei Territori Division comprises:
- retail customers: households (individual customers with financial assets up to 100,000 euro), personal (individual customers with financial assets between 100,000 euro and one million euro), small businesses (enterprises with a turnover under 2.5 million euro and with loan facilities under one million euro);
- SME customers: SMEs with a turnover between 2.5 and 150 million euro;
- Private customers: individual customers with financial assets exceeding one million euro.
Operations with individual and SME customers are performed through the Parent Company Intesa Sanpaolo and the network banks (Banca di Credito Sardo, Banca di Trento e Bolzano, Banco di Napoli, Carifirenze, Casse del Centro, Cassa dei Risparmi di Forlì e della Romagna, Cassa di Risparmio del Veneto, Cassa di Risparmio in Bologna, Cassa di Risparmio di Venezia, Cassa di Risparmio del Friuli Venezia Giulia and Banca dell’Adriatico). Intesa Sanpaolo Private Banking is the Group company which serves private customers. To serve non-profit entities Banca Prossima was set up, operational since November 2007 through the Group’s branches, with regional centres and a team of specialists. This Division also includes product companies, namely Mediocredito Italiano, the Group company specialised in industrial credit, the insurance companies EurizonVita, Sud Polo Vita, Intesa Vita and Intesa Previdenza, the fiduciary service company SIREFID, and Setefi, the company specialised in management of electronic payment systems.

In December 2008, the Bank approved a project for a further organisational strengthening of this Division with the aim of improving the effectiveness of local commercial actions, while maintaining strict cost control. Following the reorganisation, the territorial structure comprises 8 Regional Departments coordinating 22 Areas/Network Banks, designed to ensure optimum geographical coverage, homogeneous size in terms of number of branches and staff allocation as well as adequate decision-making autonomy.

In the third quarter of 2009, the Banca dei Territori Division registered:
- operating income of 2,518 million euro, down 8.5% compared with 2,752 million euro in the second quarter of 2009;
- operating costs of 1,503 million euro, up 1.9% from 1,475 million euro in the second quarter of 2009;
- operating margin of 1,015 million euro, down 20.5% compared to 1,277 million euro in the previous quarter;
- a cost/income ratio of 59.7% versus 53.6% in the second quarter of 2009;
- net provisions and adjustments of 452 million euro compared to 568 million euro in the previous quarter;
- income before tax from continuing operations of 563 million euro, down 20.6% from 709 million euro in the second quarter of 2009;
- net income of 259 million euro, down 34.7% from 397 million euro in the second quarter of 2009.

In the first nine months of 2009, the Banca dei Territori Division registered:
- operating income of 7,848 million euro (down 12.6% compared to 8,979 million euro in the first nine months of 2008) accounting for 58% of the consolidated operating income (63% in the same period last year);
- operating costs down 5.3% to 4,488 million euro from 4,739 million euro in the first nine months of 2008;
- operating margin of 3,360 million euro, down 20.8% compared to 4,240 million euro in the first nine months of 2008;
- a cost/income ratio of 57.2% versus 52.8% in the same period of 2008;
- net provisions and adjustments of 1,428 million euro compared to 1,040 million euro in the same period of 2008;
- income before tax from continuing operations of 1,932 million euro, a decrease of 39.6% from 3,199 million euro in the first nine months of 2008;
- net income of 1,038 million euro declining 30.4% from 1,491 million euro in the first nine months of 2008.

Eurizon Capital, the company specialised in providing collective and individual asset management products to the Group’s internal banking networks, is developing synergies with the Banca dei Territori Division. The company is also focused on strengthening its presence in the “open architecture” segment through specific distribution agreements with other networks and institutional investors. Eurizon Capital controls the subsidiaries Eurizon Capital (Luxembourg) and Eurizon Alternative Investments which promote and manage, respectively, funds incorporated under Luxembourg law and alternative funds. The Intesa Sanpaolo Group also has a presence in the asset management sector in China where it owns a 49.9% stake in Penghua Fund Management, an asset management company.

In the third quarter of 2009, Eurizon Capital registered:
- operating income of 62 million euro, up 2.8% against 60 million euro in the second quarter of 2009;
- operating costs of 30 million euro, down 2.1% from 31 million euro in the previous quarter;
- operating margin of 31 million euro, up 8% from 29 million euro in the previous quarter;
- a cost/income ratio of 49.1% versus 51.6% in the second quarter of 2009;
- income before tax from continuing operations of 30 million euro, in line with the second quarter of 2009;
- net income of 12 million euro, down 2.9% from 13 million euro in the second quarter of 2009.

In the first nine months of 2009, Eurizon Capital registered:
- operating income of 190 million euro, down 30.1% from 272 million euro in the first nine months of 2008 and accounting for 1% of the Group’s consolidated figure (2% in the first nine months of 2008);
- operating costs of 92 million euro, down 17.1% from 111 million euro in the first nine months of 2008;
- operating margin of 98 million euro, down 39.1% compared to 161 million euro in the same period last year;
- a cost/income ratio of 48.4% versus 40.8% in the first nine months of 2008;
- income before tax from continuing operations of 98 million euro, down 38.8% from 160 million euro in the first nine months of 2008;
- net income of 42 million euro, down 25% from 56 million euro in the first nine months of 2008.

The Corporate & Investment Banking Division includes:
- Large & International Corporate, which presides over relations with large corporates in Italy (mainly with a turnover exceeding 500 million euro) and foreign corporate customers;
- Mid-Corporate Italia, dedicated to Italian corporate customers with a turnover exceeding 150 million euro and mainly up to 500 million euro;
- Global Services, responsible for foreign branches, representative offices and international subsidiaries specialised in corporate banking (Société Européenne de Banque, Intesa Sanpaolo Bank Ireland and ZAO Banca Intesa) and for providing specialised assistance and support to Italian corporate internationalisation and export;
- Financial Institutions, which is in charge of relations with Italian and foreign financial institutions, management of transactional services related to payment systems, custody and settlement of securities as custodian and correspondent bank;
- Banca IMI, which is in charge of carrying out investment banking activity, that is the creation of products of structured finance and M&A consultancy services to the Group’s clients, and the capital markets activities for the Group’s clients and institutional operators in market making activities;
- Merchant Banking, which operates in the private equity area also through Private Equity International (PEI) and IMI Investimenti companies.
This Division also comprises the activities of Leasint, Mediofactoring and proprietary trading.

 
In the third quarter of 2009, the Corporate & Investment Banking Division registered:
- operating income of 1,059 million euro, down 2% from 1,081 million euro in the previous quarter;
- operating costs of 233 million euro, in line with 230 million euro in the previous quarter;
- operating margin of 826 million euro, down 2.9% from 851 million euro in the second quarter of 2009;
- a cost/income ratio of 22% versus 21.3% in the second quarter of 2009;
- net provisions and adjustments of 178 million euro, halved compared to 375 million euro in the second quarter of 2009;
- income before tax from continuing operations of 648 million euro, up 36.6% from 474 million euro in the previous quarter;
- net income of 445 million euro, an 18.2% increase compared to 376 million euro in the second quarter of 2009.

In the first nine months of 2009, the Corporate & Investment Banking Division registered:
- operating income of 2,961 million euro, up 52.2% from 1,946 million euro in the same period in 2008, accounting for 22% of the Group’s consolidated figure (the contribution was 14% in the same period of 2008);
- operating costs of 693 million, in line with 698 million euro in the same period in 2008;
- operating margin of 2,268 million euro, up 81.7% from 1,248 million euro in the first nine months of 2008;
- a cost/income ratio of 23.4% versus 35.9% in the first nine months of 2008;
- net provisions and adjustments of 731 million euro compared to 308 million euro in the same period in 2008;
- income before tax from continuing operations of 1,536 million euro, up 62.5% from 945 million euro in the same period of 2008;
- net income of 1,096 million euro, a 70.5% increase on the 643 million euro of the first nine months of 2008.

Public Finance provides services to government, public entities, local authorities, public utilities, general contractors, public and private healthcare structures and develops activities related to lending and day-to-day banking operations, project financing, securitisations and financial advisory, with the aim of promoting cooperation between public and private entities and supporting initiatives and investment projects in large infrastructures, healthcare, research and public utilities in general. Public finance activities are performed through Banca Infrastrutture Innovazione e Sviluppo.

In the third quarter of 2009, Public Finance registered:
- operating income of 93 million euro, down 26.5% compared with 126 million euro in the second quarter of 2009;
- operating costs of 19 million euro, basically unchanged compared to the previous quarter;
- operating margin of 74 million euro, down 31.6% from 107 million euro in the second quarter of 2009;
-  a cost/income ratio of 20.8% versus 14.9% in the second quarter of 2009;
- a net recovery of 2 million euro in net provisions and adjustments compared to net adjustments equal to 77 million euro in the second quarter of 2009;
- income before tax from continuing operations of 76 million euro, more than doubling the 30 million euro of the previous quarter;
- net income of 43 million euro, three times higher than the 14 million euro of the previous quarter.

 
In the first nine months of 2009, Public Finance registered:
- operating income of 334 million euro, up 39.7% compared to 239 million euro of the same period in 2008, representing 2% of the Group’s consolidated operating income (the same as in the first nine months of 2008);
- operating costs of 58 million euro, down 4.9% from 61 million euro in the same period in 2008;
- operating margin of 276 million euro, up 55.1% from 178 million euro in the first nine months of 2008;
- a cost/income ratio of 17.4% versus 25.5% in the same period of 2008;
- net provisions and adjustments of 78 million euro against 125 million euro in the first nine months of 2008;
- income before tax from continuing operations of 198 million euro, almost a fourfold rise compared to 53 million euro in the first nine months of 2008;
- net income of 111 million euro, up from 16 million euro in the same period last year.

The International Subsidiary Banks Division is responsible for activities in foreign markets where the Group is operational through commercial banking subsidiaries and associates. The Division provides guidelines, coordination and support to subsidiaries abroad mainly active in retail banking. It is responsible for defining the Group’s development strategy related to its direct presence abroad, as well as exploring and analysing new growth opportunities in markets where the Group already has a presence, and in new markets. This Division also coordinates operations of international subsidiary banks and their relations with the Parent Company’s head office departments and the Corporate & Investment Banking Division’s branches and offices abroad. The Division is made up of the three following Departments which are in charge of the different geographical areas of the Group’s international presence: i) the SEE Banking Area which includes the banking subsidiaries in South-Eastern Europe, Privredna Banka Zagreb in Croatia, Banca Intesa Beograd in Serbia, Intesa Sanpaolo Banka Bosna i Hercegovina in Bosnia and Herzegovina, Intesa Sanpaolo Bank Albania and Intesa Sanpaolo Bank Romania; ii) the CEE Banking Area which includes the banking subsidiaries in Central-Eastern Europe, Banka Koper in Slovenia, VUB Banka in Slovakia, CIB Bank in Hungary; iii) the CIS and South Mediterranean Banking Areas, which include the subsidiaries KMB Bank in the Russian Federation, Pravex-Bank in Ukraine and Bank of Alexandria in Egypt.

In the third quarter of 2009, International Subsidiary Banks Division registered:
- operating income of 553 million euro, down 1.8% from 563 million euro in the second quarter of 2009;
- operating costs of 277 million euro, down 4.9% from 291 million euro in the previous quarter;
- operating margin of 276 million euro, up 1.5% from 272 million euro in the previous quarter;
- a cost/income ratio of 50.1% versus 51.7% in the second quarter of 2009;
- net provisions and adjustments of 155 million euro against 164 million euro in the previous quarter;
- income before tax from continuing operations of 122 million euro, up 14.3% compared to 107 million euro in the previous quarter;
- net income of 92 million euro, up 12.6% compared to 81 million euro in the second quarter of 2009.

In the first nine months of 2009, the International Subsidiary Banks Division registered:
- operating income of 1,643 million euro, down 1.5% compared to 1,668 million euro in the same period in 2008 (excluding foreign exchange effects, operating income rose by 5.7%) and accounted for 12% of the Group’s consolidated figure (the same as in the first nine months of 2008);
- operating costs of 853 million euro, down 3.5% compared to 884 million euro in the first nine months of 2008;
- operating margin of 790 million euro, in line with 784 million euro in the corresponding period of 2008 (excluding foreign exchange effects, operating margin was up 7.4%);
- a cost/income ratio of 51.9% versus 53% in the first nine months of 2008;
- net provisions and adjustments of 463 million euro compared to 156 million euro in the corresponding period of 2008;
- income before tax from continuing operations of 327 million euro, halved compared to the 632 million euro of the same period in 2008;
- net income of 254 million euro, halved compared to 504 million euro of the same period last year.

Banca Fideuram, through its network of private bankers, performs asset gathering activities serving customers with a medium to high savings potential. In the third quarter of 2009, Banca Fideuram registered:
- operating income of 146 million euro, up 2.2% from 143 million euro in the second quarter of 2009;
- operating costs of 84 million euro, up 5% compared to 81 million euro in the second quarter of 2009;
- operating margin of 62 million euro, down 1.4% from 63 million euro in the previous quarter;
- a cost/income ratio of 57.7% versus 56.2% in the second quarter of 2009;
- net provisions and adjustments of 10 million euro;
- income before tax from continuing operations of 52 million euro, down 2.2% from 54 million euro in the second quarter of 2009;
- net income of 20 million euro, up 3.2% from 19 million euro in the second quarter of 2009.

In the first nine months of 2009, Banca Fideuram registered:
- operating income of 443 million euro, down 11.9% from 503 million euro in the first nine months of 2008 contributing 3% to the Group’s consolidated figure (4% in the first nine months of 2008);
- operating costs of 244 million euro, down 1.2% compared with 247 million euro in the first nine months of 2008;
- operating margin of 199 million euro, down 22.3% from 256 million euro in the same period in 2008;
- a cost/income ratio of 55.1% versus 49.1% in the same period in 2008;
- net provisions and adjustments of 29 million euro;
- income before tax from continuing operations of 170 million euro, down 23.8% compared to 223 million euro in the first nine months of 2008;
- net income of 67 million euro, down 9.5% compared to 74 million euro in the corresponding period of 2008.

The 2009 outlook

The performance in the first nine months confirmed the effective implementation of the actions outlined for 2009 and disclosed to the market at the time of the 2008 results presentation. Those actions, in turn, reflected management policies with a medium-term focus which have enabled the Group to:
- manage revenue generation, in particular by counteracting the pressure on net interest income due to market yields at their all-time low by means of attentive pricing and partial hedging against a declining interest rate environment;
- continue the downward trend of operating costs, in spite of the impact of the introduction of non-deductible intra-group VAT;
- maintain a low risk profile due to the conservative risk management underlying both the relatively contained net adjustments to loans and the positive trend of trading profits linked to well performing financial markets.
In light of the results for the first nine months and the contribution of approximately 260 million euro from the finalisation of the Findomestic sale expected to take place in the fourth quarter of the year, it seems reasonable that consolidated net income for 2009 could be higher than that recorded in 2008.

* * *

For consistency purposes, the income statement data for 2008 were restated following the change in the scope of full consolidation which was determined mainly by the acquisition of control of Pravex-Bank which entered the scope of full consolidation in the income statement of the third quarter of 2008. For the first and second quarters of 2008 the relevant items were consolidated line by line and their contribution to net income was recorded under minority interests.

Still for consistency purposes, the balance sheet data for the first quarter of 2008 were restated consolidating line by line the items relating to Pravex-Bank, the control of which was acquired in June 2008.

* * *

The adjusted net income was calculated excluding the main non-recurring items listed below:

in the first quarter 2009: 1) 511 million euro fiscal benefit from the release of deferred taxes relating to detaxation of intangibles with a finite life and brand name, recorded under taxes on income from continuing operations, 2) 68 million euro integration charges and related tax savings, which resulted in net integration charges of 48 million euro, 3) 95 million euro charges from purchase cost allocation, net of tax and 4) 83 million euro capital gains made on the disposal of CR Orvieto and 17 branches and related taxes, which resulted in a net capital gain of 63 million euro under income after tax from discontinued operations;

in the second quarter 2009: 1) 60 million euro integration charges and related tax savings, which resulted in net integration charges of 38 million euro, and 2) 102 million euro charges from purchase cost allocation, net of tax;

in the third quarter 2009: 1) 61 million euro integration charges and related tax savings, which resulted in net integration charges of 44 million euro, and 2) 98 million euro charges from purchase cost allocation, net of tax;

in the first quarter 2008: 1) 444 million euro integration charges and related tax savings, which resulted in net integration charges of 321 million euro, 2) 131 million euro charges from purchase cost allocation, net of tax, and 3) 1,372 million euro capital gains deriving from the sale of 198 branches and related taxes, which resulted in a net capital gain of 953 million euro under income after tax from discontinued operations;

in the second quarter 2008: 1) 67 million euro from the IMI-SIR settlement registered under the caption other operating income and related taxes, 2) 268 million euro capital gain made on the disposal of Agos under profits on investments held to maturity and related taxes, 3) 98 million euro integration charges and related tax savings, which resulted in net integration charges of 68 million euro, 4) 153 million euro charges from purchase cost allocation, net of tax, and 5) 20 million euro adjustments, net of tax savings, related to the disposal of 198 branches under income after tax from discontinued operations.

in the third quarter 2008: 1) 59 million euro from the IMI-SIR settlement registered under the caption other operating income and related taxes, 2) 122 million euro integration charges and related tax savings, which resulted in net integration charges of 86 million euro, and 3) 148 million euro charges from purchase cost allocation, net of tax.