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Banca Sistema

Investor Presentation • Jul 30, 2015

4489_rns_2015-07-30_2bf7b48c-e07e-41a1-8477-f17e50ac63f9.pdf

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Presentation of 1H 2015 Results

30 July 2015

Disclaimer

The distribution of this presentation in other jurisdictions may be restricted by law or regulation. Accordingly, persons who come intopossession of this document should inform themselves of, and observe, these restrictions. To the fullest extent permitted by applicable law, the companies involved in the proposed business combination disclaim any responsibility or liability for the violation of such restrictions by any person.

This presentation does not constitute or form part of, and should not be construed as, any offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of Banca Sistema or any member of its group, nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities in Banca Sistema or any member of its group, or any commitment whatsoever.

The information contained in this presentation is for background purposes only and is subject to amendment, revision and updating. Certain statements in this presentation are forward-looking statements under the US federal securities laws about Banca Sistema. Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates andtheir underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products andservices, and statements regarding future performance. Forward-looking statements are generally identified by the words "expects", "anticipates", "believes", "intends", "estimates" and similar expressions. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements.

Banca Sistema do not undertake any obligation to update or revise any forward-looking statements, whether as a result of newinformation, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation.

1H 2015 Results at a Glance*

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Note: (*) 1H 2015 P&L results and related ratios do not include non-recurring items.

Factoring growth in line with Q1 2015

Increased contribution from new business lines

Outstanding as at 30.06.2015

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  • NII increase (+20%) driven by higher factoring volumes, lower cost of funding and higher contribution from CQS/CQP and SMEs loans
  • Lower contribution from our short term Italian Government bond portfolio (-40%)
  • Personnel expenses, excluding the non-recurring items, are in line considering the higher headcount (+17 average FTEs in 1H 2015 vs 1H 2014)
  • Other admin. stabilizing
  • €0.2m profits on equity investments derive from stake in CS Union S.p.A.
  • 1H 2015 Net income represents 69% of FY 2014 Net Income

1H 2015 – Balance Sheet

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0.
9
  • Stable Govies AFS portfolio with an average duration of 9.3 months
  • Factoring receivables in line with the end of 2014, despite faster payments
  • Reduced exposure to ECB and increased funding from Repo market due to lower financing cost
  • Stable Retail term deposits and cash accounts
  • Debt securities comprised of: LT2 subordinated bond (€12m) and AT1 (€8m)
  • Shareholders' equity including the effect of the €37.5m capital increase
  • Total own funds at €102m (TCR 22.2%) and of the CET1 at €82m (ratio 17.9%)

Strong revenues supporting earnings growth

Net interest income representing 79% of the Total Income up +20% y/y

Reduced contribution from the carry trade, from €1.5m in 1H 2014 to €0.8m in 1H 2015

Interest income up y/y across all business lines: factoring; CQS/CQP and SMEs loans. Increased weight from non factoring products: ~6% of Interest income in 1H 2015

Retail funding cost is 100bps lower y/y, 240bps in 1H 2015 vs 340bps in 1H 2014, despite a conservative liquidity buffer

  • Factoring net commissions up 12.0% y/y net of origination fees, from €4.8m to €5.4m, due to higher volumes of feebased factoring products
  • Trading income down from €3.4m to €2.1m respectively in 1H 2014 vs. 1H 2015

Scalable platformand IT infrastructure

Note: 1. 1H 2015 Costs and related ratios do not include non-recurring items.

Funding Overview

€m
8
8
1		 8
7
0
5
3
5		 7
1
9		 31
2		 31
0
12 18
5
52
3		 53
4		 56
9		 56
0
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12		 20
13		 20
14		 H1
20
15
Te
De
sits
rm
po		 Cu
nt
rre		 Ac
ts
co
un

• Funding strategy focused on diversifying financing sources and optimising cost of funds

  • • Access to wholesale markets including ECB, Interbanking and Repo funding
  • • €0.8bn of customer deposits as of 2014 with a 64%/36% term deposits /current accounts split
  • • Long term maturity profile with c.65% of term deposits above 12 months and an average deposit size of €49k

Retail Cost of Funding1 Term Deposits Maturity Profile

Note: 1. Average cost of funding (current accounts and term deposits)

Conservative provisioning policy with no credit losses since 2011

We continue to see consistent growth across the Bank, underpinnedby the strength of our core business and supplemented by the development of our new business lines.

We have built a stable and diversified funding base, focussed on optimising our cost of funds.

We have demonstrated that our platform is efficient and highly scalable.

We are pleased to be able to deliver a market-leading Return on Equity to our shareholders.

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