FinecoBank

Quarterly Report • May 7, 2024

Informazione Regolamentata n. 1615-40-2024		Data/Ora Inizio Diffusione 7 Maggio 2024 12:47:46	Euronext Milan
Societa'	:	FINECOBANK
Identificativo Informazione Regolamentata	:	190150
Utenza - Referente	:	FINECOBANKN11 - Spolini
Tipologia	:	3.1
Data/Ora Ricezione	:	7 Maggio 2024 12:47:46
Data/Ora Inizio Diffusione	:	7 Maggio 2024 12:47:46
Oggetto	:	PR FINECOBANK_Consolidated Interim Financial Report as of 31st March
Testo del comunicato

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Results at March 31st, 2024 approved

FINECO: SOLID GROWTH TREND CONFIRMED REVENUES SUPPORTED BY ALL BUSINESS AREAS ACCELERATION OF NEW CLIENTS AND RISE OF ACTIVE INVESTORS

• Net profit: € 147.0 million (+12.4% excluding systemic charges) 1
  • Total revenues: €327.0 million (+11.4% y/y)
    • Cost/income ratio: 24.2%
• Solid Capital and Liquidity: CET1 at 25.3%, LR at 5.16%, LCR² > 850%

FIGURES AT APRIL 30 th, 2024

Net sales in the month of April at € 844 million, o/w AUM at € 195 million

Estimated brokerage revenues in the month of April at €17 million

11,560 new clients acquired in the month of April (+36.6% y/y).

Milan, May 7 th, 2024

The Board of Directors of FinecoBank S.p.A. has approved the results as of March 31st , 2024. Alessandro Foti, CEO and General Manager of FinecoBank, stated:

"The first quarter results confirm Fineco's ability to consolidate its growth path, further improving the excellent FY23 results. This growth has involved all business areas, combining the increase of net interest income with an enhancement of Investing. Also the positive result of brokerage confirm a structural increase in clients' interest to be more active on the financial market in a long term perspective, building up a bridge between brokerage and investing.

April net sales results highlight the ability of our financial advisors to drive customers in a more and more professional management of their savings, supporting them even in the most sophisticated financial needs".

¹ Systemic charges accounted in Other Charges and Provisions: €-6.6 million related to the Single Resolution Fund in the first quarter of 2023; €-35.0 million related to the annual ordinary contribution to Deposit Guarantee Scheme in the first quarter of 2024

FINECOBANK
1Q24 HIGHLIGHTS	Revenues at €327.0 million, +11.4% y/y led by the Investing area (+13.5% y/y), ◼ thanks to the volume effect and to the growing contribution of FAM, Brokerage (+2.2% a/a), and by the positive contribution of the Net Financial Income (+14.8% y/y)
	Operating costs at €79.3 million, +8.0% y/y (+6.7% y/y net of costs strictly related to ◼ the growth of the business3 ). Cost/Income ratio at 24.2%, confirming the Bank's operational efficiency.
	Net profit at 147.0 million, up +12.4% y/y excluding systemic charges1 ◼
	TFA at €128.2 billion, up by 14.5% compared to 1Q23, thanks to the contribution of ◼ total net sales equal to €2.2 billion, confirming the soundness of the Bank's growth even in a very complex context. Net sales in Asset Under Management stood at €0.5 billion.
	Fineco Asset Management reaches €32.3 billion of TFA, of which €21.1 billion in ◼ retail classes (+21.2% y/y), and €11.2 billion in funds underlyings of wrappers (institutional classes, +7.0% y/y)
	The strong acquisition of new costumers continues to accelerate, reaching 39,545 ◼ (+24.5% y/y), and bringing the total customers at 1,590,239
UPDATE ON INITIATIVES	Fineco has released a new diagnostic tool for portfolios held with third parties, with ◼ the aim of strengthening the acquisition of prospect and Private Banking customers. The Bank is also further improving its advanced advisory service, Advice+, with the launch of new tools allowing to use the model portfolio developed by Fineco.
	The Bank is further improving its new brokerage platform FinecoX, with new ◼ advanced tools: in the first quarter the vertical book has been launched, allowing for a more detailed view on price levels and a further customization through dedicated and advanced settings; the dynamic Best&Worst has also been launched, allowing to monitor in real time Stock Exchanges of interest, filtering them based on performance and volumes.

³ FAM (€-0.4 mln y/y) and marketing expenses (€-0.6 mln y/y).

TOTAL FINANCIAL ASSETS AND NET SALES

Total Financial Asset as of March 31st , 2024, amounted to €128.2 billion up (+14.5% y/y) compared to March 2023. Assets under Management was €60.4 billion, increasing by 11.6% y/y, assets under custody amounted to €40.1 billion (+40.6% y/y), while the stock of direct deposits amounted to €27.7billion (-5.7% y/y).

In particular, the TFA related to Private customers (with assets above €500,000), totalled €60.0 billion (+22.6% y/y).

In the first quarter, total net sales amounted to €2.2 billion and confirmed to be solid also in a complex market context. Asset under management stood at €0.5 billion, Assets under custody amounted to €2.5 billion and deposits were equalled to €-0.8 billion.

As of March 31st , 2024, the network was composed of 2,969 Personal Financial Advisors operating through 429 Fineco Center. Inflows in 1Q24 through the PFA network were equal to €1.7 billion.

As of March 31st , 2024, Fineco Asset Management managed €32.3 billion of assets, of which €21.1 billion were retail class (+21.2% y/y) and €11.2 billion institutional class (+7.0% y/y).

A total of 39,545 new customers were acquired in the first quarter of 2024, up by 24.5% y/y. The total number of customers as of March 31st , 2024 was 1,590,239.

MAIN INCOME STATEMENT RESULTS AT 31.03.24

Mln	1Q23	4Q23	1Q24	1Q24/ 1Q23	1Q24/ 4Q23
Net financial income	157.4	179.5	180.8	14.8%	0.7%
o/w Net interest income	157.4	179.5	179.0	13.7%	-0.3%
o/w Profit from Treasury	0.0	0.0	1.8	n.s.	n.s.
Dividends	0.0	0.0	0.0	n.s.	n.s.
Net commissions	120.9	127.7	128.6	6.4%	0.7%
Trading profit	15.1	14.1	17.5	15.6%	24.3%
Other expenses/income	0.2	-0.3	0.2	-26.2%	-158.6%
Total revenues	293.7	320.9	327.0	11.4%	1.9%
Staff expenses	-29.8	-35.3	-33.4	12.1%	-5.5%
Other admin.expenses	-37.0	-40.2	-39.5	6.7%	-1.7%
D&A	-6.6	-7.0	-6.4	-2.8%	-8.7%
Operating expenses	-73.4	-82.5	-79.3	8.0%	-3.9%
Gross operating profit	220.3	238.4	247.7	12.5%	3.9%
Provisions	-9.3	-11.6	-38.1	311.2%	228.3%
LLP	-0.7	-1.6	-0.3	-61.0%	-83.7%
Profit from investments	-0.7	0.0	0.4	-155.3%	n.s.
Profit before taxes	209.6	225.2	209.7	0.1%	-6.9%
Income taxes	-62.4	-70.3	-62.7	0.6%	-10.8%
Net profit adjusted4	147.3	154.9	147.0	-0.2%	-5.1%

Revenues totalled €327.0 million in the first quarter of 2024, increasing by 11.4% compared to €293,7 million of the first quarter of the previous year and by 1.9% compared to the last quarter of 2023.

Net Financial Income stood at €180.8 million, increasing by 14.8% compared to the data at March, 31st 2023 and in line compared to the last quarter of 2023 (+0.7% q/q). Net Interest Income increased by 13.7% y/y and was in line compared to the last quarter of 2023 (-0.3% q/q).

Net commissions amounted to €128.6 million, increasing by 6.4% compared to €120.9 million in 1Q23. This increase is mainly due to the higher net commissions related to the Investing area (+13.6% y/y) thanks to the volume effect and the higher contribution of Fineco Asset Management. Brokerage net commissions stood at € 33.0 million (+5.3% y/y), while Banking fees stood at €12.0 million (€-2.6 million vs 1Q23). Net commissions increased by 0.7% q/q compared to the fourth quarter of 2023, mainly thanks to Brokerage (+€6.0 million q/q). The investing area (-€3.6 million q/q) has been characterized by the usual quarterly seasonality, linked to contributions paid for the activity of Financial Advisors (FIRR and Enasarco), mostly concentrated in the first part of the year, and to operating efficiencies by Fineco Asset Management during 2023, booked in the fourth quarter.

⁴ 1Q24 Net Profit excluding systemic charges is equal to +11.0% q/q and +12.4% y/y. Systemic charges are equal to €- 6.6 million gross in 1Q23, €+2.0 million gross in 4Q23 and €-35.0 million gross in 1Q24

Trading profit amounted to €17.5 million, up compared to the €15.1 million of the same period in the previous year.

Operating costs in the first quarter of 2024 were well under control at €79.3 million, up 8.0% y/y mainly due for expenses strictly connected to the growth of the business² , net of which the increase in operating costs is equal to 6.7% y/y. Operating costs were lower compared to the fourth quarter 2023 (-3.9% q/q).

Staff expenses totalled €33.4 million, increasing by €12.1% million mainly due to the increase in the number of employees, which rose from 1,332 as of March 31st , 2023 to 1,404 as of March 31st, 2024 due to the growth of the business in Italy and of the Irish subsidiary Fineco Asset Management.

The cost/income ratio was 24.2%.

Gross operating profit amounted to €247.7 million as of March 31st , 2024, up by 12.5% y/y and by 3.9% q/q.

Other charges and provisions totaled €-38.1 million, increasing compared to €-9.3 million in the first quarter of 2023, due to the recognition of systemic charges relating to the annual 2024 ordinary contribution to Deposit Guarantee Scheme (FITD), at €-35.0 million (in 2023 the contribution was booked in the third quarter). No contribution was recognized regarding systemic contributions due to the Single Resolution Fund (€-6.6 million booked in the first quarter 2023), which has reached its target goal of 1% of guaranteed deposits in 2023.

Loan loss provisions amounted to €-0.3 million. The cost of risk is equal to 5 basis points.

Profit on Investments amounted to €0.4 million.

Profit before taxes stood at €209.7 million, in line with the first quarter of 2023 and decreasing by 6.9% q/q, due to the different seasonality in systemic charges.

Net profit for the period was equal to €147.0 million, in line with the same period of last year and down by 5.1% q/q, due to the different seasonality in systemic charges.

SHAREHOLDERS' EQUITY AND CAPITAL RATIOS

Consolidated Shareholders' equity stood at €2,669.6 million, increasing by €474.9 million compared to December 31st, 2023, mainly thanks to the issuance of an Additional Tier1 bond for an amount of €500 million and to the net profit achieved in the first quarter 2024 (€147.0 million), partially offset by the repurchase, during the Tender Offer concluded in March 2024, of €168 million of the Additional Tier1 bond issued in July 2019.

At the first available date, Fineco will call the outstanding private placement of € 200 million Additional Tier 1 and the remaining amount of the public issue of € 300 million Additional Tier 1 issued in July 2019, thereby keeping the overall amount of Additional Tier1 instruments unchanged at € 500 million.

It is also noted that shareholders' equity includes the net profit for the year 2023, amounting to €609.1 million. the dividends for the year 2023, totalling €421.6 million, will be paid on May 22nd, 2024, as approved by the Shareholders' Meeting of April 24th, 2024.

The Group confirms its solid capital position with a CET1 ratio of 25.29% as of March 31 st, 2024, compared to 24.34% as of December 31 st , 2023 and to 21.80% as of March 31st , 2023.

The Tier 1 ratio and the Total Capital Ratio were equal to 35.94% as of March 31 st , 2024 compared to 34.91% as of December 31 st, 2023 and to 32.41% as of March 31st , 2023.

Leverage ratio stood at 5.16% as of March 31 st, 2024 compared to 4.95% in December 31 st , 2023 and to 4.21% as of March 31st, 2023.

The Group's liquidity indicators are very solid, placing Fineco at the highest level among European banks: LCR stood at 864% ² as of March 31 st, 2024 significantly above the 100% regulatory limit, and NSFR equal to 369 % as of March 31 st, 2024 also well above the 100% regulatory limit.

LOANS TO CUSTOMERS

Loans to customers stood at €6,097.7 million as of March 31 st, 2024, decreasing by 1.6% compared to December 31 st, 2023 and by 3.4% compared to March 31 st, 2023.

The amount of non-performing loans (loans with insolvent borrowers, unlikely to pay and non-performing loans/past due) net of impairment totaled €4.1 million (€4.0 million as of December 31 st, 2023 and €3.7 million as of March 31st , 2023), with an 83.3% coverage ratio. The ratio between the amount of nonperforming loans and total loans to ordinary customers equaled to 0.07% (0.07% as of December 31 st, 2023 and 0.06% March 31st, 2023).

SIGNIFICANT EVENTS IN THE FIRST QUARTER OF 2024 AND SUBSEQUENT EVENTS

With reference to the main events that took place in the first quarter of 2024, please refer to the press releases published on the FinecoBank website.

No significant events occurred after March 31 st , 2024 that would make it necessary to change any of the information given in this Consolidated Interim Financial Report as of 31st March 2024 – Press Release.

NEW INITIATIVES MONITORING

In the first quarter of 2024 Fineco has released a new diagnostic tool for portfolios held with third parties, with the aim of strengthening the acquisition of prospect and Private Banking customers. The Bank is also further improving its advanced advisory service, Advice+, with the launch of new tools allowing to use the model portfolio developed by Fineco. Advice+ allows customers to receive comprehensive advice on their assets: Fineco Personal Financial Advisors have access not only to mutual funds from over 70 different asset managers but also to over 1,300 bonds, over 500 stocks, and more than 2,300 ETFs and ETCs to determine the most suitable asset allocation for each individual customer. Customers have also access to advanced reporting in terms of look through, multichannel approach and look & feel.

The Bank is further improving its new brokerage platform FinecoX, with new advanced tools: in the first quarter the vertical book has been launched, allowing for a more detailed view on price levels and a further customization through dedicated and advanced settings; the dynamic Best&Worst has also been launched, allowing to monitor in real time Stock Exchanges of interest, filtering them based on performance and volumes. Fineco has recently launched the Brokerage Account, a new zero-fee current account designed for customers who are only interested in independently trading on the markets through the Fineco platform. This new account stands out for its competitive costs, targeting even those customers who invest smaller tickets thanks to a pricing proportional to the value of each individual transaction. The Brokerage Account allows to send and receive bank transfers but does not include the use of payment cards or access to banking services. It is always possible to convert the Brokerage Account into a traditional account, thereby gaining access to all the features offered by Fineco, including the new FinecoX platform, PowerDesk, multicurrency services, and futures/options contracts available in currencies other than the euro.

SUSTAINABILITY

In 1Q24 Fineco continued its sustainability journey in the various areas outlined in the ESG Multi-Year Plan 2024-2026.

With regards to the area "responsible finance", at the end of 1Q24, 69% of the funds distributed on the Fineco platform were classified under SFDR Article 8, while 5% were classified under SFDR Article 9.

As of 31 March 2024, Fineco has the following scores from the major ESG rating agencies:

• S&P Global ESG Score 2023: 68/100.
• CDP Climate Change: rating of 'C';
• MSCI ESG rating: "AA" (leader) in the "diversified financials sector";
• MSCI Implied Temperature Rise rating: 1.3°C (1.5°C Aligned), considering FinecoBank to be in line with the Paris Agreement's maximum objective of limiting the increase in average global temperature to within 1.5°C;
• Sustainalytics: ESG risk rating of 13.4 (Low risk), confirming its position among the best banks internationally;
• Moody's Analytics: ESG overall score of 57 out of 100 (robust performance);
• Standard Ethics: "EE+" rating and Outlook improved to Positive;
• LSEG ESG Score (Refinitiv): 81/100, indicating excellent ESG performance and a high degree of transparency in the public disclosure of relevant ESG data;
• ISS ESG Corporate Rating: C (prime status).

The Bank is also included in the following sustainability indices: Borsa Italiana MIB ESG Index (Euronext), FTSE4Good, Bloomberg Gender Equality Index (GEI) 2023, S&P Global 1200 ESG Index, Standard Ethics Italian Banks Index and Standard Ethics Italian Index.

2024 GUIDANCE

REVENUES:

Revenues are expected at a record level, with an improvement of the mix in favor of commissions thanks to:

• ➢ Investing revenues expected to increase low double digit vs FY23 (with neutral market effect)
• ➢ Banking fees expected stable vs FY23
• ➢ Brokerage revenues expected to remain strong with a floor in relative terms with respect to the market context – definitely higher vs pre-Covid period

OPERATING COSTS AND PROVISIONS EXPECTATIONS:

• COSTS: growth of around 6% y/y, not including additional costs for both FAM and marketing expenses
• COST/INCOME: comfortably below 30% thanks to the scalability of our platform and strong operating gearing
• COST OF RISK: expected in a range between 5-10 basis points in 2024 thanks to the quality of our portfolio

CAPITAL

• Expected growing CET1 and Leverage Ratio. On Leverage Ratio our goal is to remain above 4.5%
• DPS: expected a higher dividend per share.

COMMERCIAL PERFOMANCE

• NET SALES: robust, high quality and with a priority on keeping the mix mainly skewed towards AUM
• CLIENTS ACQUISITION: continuation of the strong growth trend expected.

The reclassified consolidated balance sheet and the reclassified income statement approved by the Board of Directors on May 7th, 2024 are attached here below.

CONSOLIDATED BALANCE SHEET

Amounts as at Changes ASSETS March 31, 2024 December 31, 2023 Amounts % Cash and cash balances 3,425,309 2,266,550 1,158,759 51.1% Financial assets held for trading 19,456 14,109 5,347 37.9% Loans and receivables to banks 382,959 376,373 6,586 1.7% Loans and receivables to customers 6,097,730 6,198,541 (100,811) -1.6% Financial investments 20,406,723 21,403,026 (996,303) -4.7% Hedging instruments 704,784 707,274 (2,490) -0.4% Property, plant and equipment 142,723 146,497 (3,774) -2.6% Goodwill 89,602 89,602 - n.a. Other intangible assets 34,159 34,465 (306) -0.9% Tax assets 50,859 49,997 862 1.7% Tax credit acquired 1,622,329 1,618,030 4,299 0.3% Other assets 291,585 411,236 (119,651) -29.1% Total assets 33,268,218 33,315,700 (47,482) -0.1%

(Amounts in € thousand)

	Amounts as at		Changes
LIABILITIES AND SHAREHOLDERS' EQUITY	March 31, 2024	December 31, 2023	Amounts	%
Deposits from banks	1,032,627	866,978	165,649	19.1%
Deposits from customers	28,070,347	28,757,589	(687,242)	-2.4%
Debt securities in issue	799,699	809,264	(9,565)	-1.2%
Financial liabilities held for trading	10,033	6,997	3,036	43.4%
Hedging instruments	6,398	28,712	(22,314)	-77.7%
Tax liabilities	148,158	86,706	61,452	70.9%
Other liabilities	531,359	564,778	(33,419)	-5.9%
Shareholders' equity	2,669,597	2,194,676	474,921	21.6%
- capital and reserves	2,529,155	1,592,305	936,850	58.8%
- revaluation reserves	(6,564)	(6,730)	166	-2.5%
- net profit	147,006	609,101	(462,095)	-75.9%
Total liabilities and Shareholders' equity	33,268,218	33,315,700	(47,482)	-0.1%

(Amounts in € thousand)

CONSOLIDATED BALANCE SHEET – QUARTERLY FIGURES

					(Amounts in € thousand)
	March 31, 2023	June 30, 2023	September 30, 2023	December 31, 2023	March 31, 2024
ASSETS
Cash and cash balances	1,414,068	1,518,628	1,797,852	2,266,550	3,425,309
Financial assets held for trading	15,730	16,868	21,354	14,109	19,456
Loans and receivables to banks	445,895	415,627	425,899	376,373	382,959
Loans and receivables to customers	6,311,901	6,184,498	6,058,003	6,198,541	6,097,730
Financial investments	24,350,662	22,613,241	21,626,742	21,403,026	20,406,723
Hedging instruments	1,300,265	1,028,822	1,028,424	707,274	704,784
Property, plant and equipment	142,637	143,799	141,156	146,497	142,723
Goodwill	89,602	89,602	89,602	89,602	89,602
Other intangible assets	35,875	35,788	34,841	34,465	34,159
Tax assets	46,987	46,100	60,133	49,997	50,859
Tax credit acquired	1,313,546	1,341,774	1,456,572	1,618,030	1,622,329
Other assets	413,399	381,175	346,201	411,236	291,585
Total assets	35,880,567	33,815,922	33,086,779	33,315,700	33,268,218

(Amounts in € thousand)

	March 31, 2023	June 30, 2023	September 30, 2023	December 31, 2023	March 31, 2024
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits from banks	1,605,506	1,299,539	1,385,130	866,978	1,032,627
Deposits from customers	30,877,798	29,187,761	28,212,892	28,757,589	28,070,347
Debt securities in issue	798,748	803,054	807,409	809,264	799,699
Financial liabilities held for trading	7,208	8,538	7,554	6,997	10,033
Hedging instruments	(7,885)	(13,438)	(16,363)	28,712	6,398
Tax liabilities	105,386	65,017	137,320	86,706	148,158
Other liabilities	435,390	553,994	496,840	564,778	531,359
Shareholders' equity	2,058,416	1,911,457	2,055,997	2,194,676	2,669,597
- capital and reserves	1,909,094	1,601,514	1,602,736	1,592,305	2,529,155
- revaluation reserves	2,070	1,063	(939)	(6,730)	(6,564)
- net profit	147,252	308,880	454,200	609,101	147,006
Total liabilities and Shareholders' equity	35,880,567	33,815,922	33,086,779	33,315,700	33,268,218

CONSOLIDATED INCOME STATEMENT

				(Amounts in € thousand)
	1Q 24	1Q 23	Changes
			Amounts	%
Financial margin	180,762	157,431	23,331	14.8%
of which Net interest	179,003	157,431	21,572	13.7%
of which Profits from Treasury	1,759	-	1,759	n.a.
Dividends and other income from equity investments	(7)	-	(7)	n.a.
Net fee and commission income	128,582	120,871	7,711	6.4%
Net trading, hedging and fair value income	17,489	15,123	2,366	15.6%
Net other expenses/income	177	235	(58)	-24.7%
REVENUES	327,003	293,660	33,343	11.4%
Staff expenses	(33,389)	(29,795)	(3,594)	12.1%
Other administrative expenses	(87,314)	(74,630)	(12,684)	17.0%
Recovery of expenses	47,818	37,625	10,193	27.1%
Impairment/write-backs on intangible and tangible assets	(6,403)	(6,587)	184	-2.8%
Operating costs	(79,288)	(73,387)	(5,901)	8.0%
OPERATING PROFIT (LOSS)	247,715	220,273	27,442	12.5%
Net impairment losses on loans and provisions for guarantees and commitments	(260)	(664)	404	-60.8%
NET OPERATING PROFIT (LOSS)	247,455	219,609	27,846	12.7%
Other charges and provisions	(38,110)	(9,269)	(28,841)	n.a.
Net income from investments	399	(723)	1,122	n.a.
PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS	209,744	209,617	127	0.1%
Income tax for the period	(62,738)	(62,365)	(373)	0.6%
NET PROFIT (LOSS) AFTER TAX FROM CONTINUING OPERATIONS4	147,006	147,252	(246)	-0.2%
PROFIT (LOSS) FOR THE PERIOD4	147,006	147,252	(246)	-0.2%
NET PROFIT (LOSS) FOR THE PERIOD ATTRIBUTABLE TO THE GROUP4	147,006	147,252	(246)	-0.2%

⁴1Q24 Net Profit excluding systemic charges is equal to +11.0% q/q and +12.4% y/y. Systemic charges are equal to €- 6.6 million gross in 1Q23, €+2.0 million gross in 4Q23 and €-35.0 million gross in 1Q24

CONSOLIDATED INCOME STATEMENT – QUARTERLY FIGURES

					(Amounts in € thousand)
	Year 1	st Quarter 2	nd Quarter 3	rd Quarter 4	th Quarter 1	st Quarter
	2023	2023	2023	2023	2023	2024
Financial margin	687,956	157,431	170,847	180,184	179,494	180,762
of which Net interest	687,748	157,431	170,765	180,047	179,505	179,003
of which Profits from Treasury	208	-	82	137	(11)	1,759
Dividends and other income from equity investments	(68)	-	(6)	(28)	(34)	(7)
Net fee and commission income	489,906	120,871	121,254	120,074	127,707	128,582
Net trading, hedging and fair value income	60,402	15,123	14,956	16,249	14,074	17,489
Net other expenses/income	(565)	235	(19)	(479)	(302)	177
REVENUES	1,237,631	293,660	307,032	316,000	320,939	327,003
Staff expenses	(126,867)	(29,795)	(30,583)	(31,145)	(35,344)	(33,389)
Other administrative expenses	(307,918)	(74,630)	(72,727)	(76,613)	(83,948)	(87,314)
Recovery of expenses	163,603	37,625	38,832	43,366	43,780	47,818
Impairment/write-backs on intangible and tangible assets	(27,139)	(6,587)	(6,650)	(6,884)	(7,018)	(6,403)
Operating costs	(298,321)	(73,387)	(71,128)	(71,276)	(82,530)	(79,288)
OPERATING PROFIT (LOSS)	939,310	220,273	235,904	244,724	238,409	247,715
Net impairment losses on loans and provisions for guarantees and commitments	(3,596)	(664)	(1,415)	78	(1,595)	(260)
NET OPERATING PROFIT (LOSS)	935,714	219,609	234,489	244,802	236,814	247,455
Other charges and provisions	(63,587)	(9,269)	(2,737)	(39,974)	(11,607)	(38,110)
Net income from investments	111	(723)	142	692	-	399
PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS	872,238	209,617	231,894	205,520	225,207	209,744
Income tax for the period	(263,137)	(62,365)	(70,266)	(60,200)	(70,306)	(62,738)
NET PROFIT (LOSS) AFTER TAX FROM CONTINUING OPERATIONS4	609,101	147,252	161,628	145,320	154,901	147,006
PROFIT (LOSS) FOR THE PERIOD4	609,101	147,252	161,628	145,320	154,901	147,006
NET PROFIT (LOSS) FOR THE PERIOD ATTRIBUTABLE TO THE GROUP4	609,101	147,252	161,628	145,320	154,901	147,006

⁴1Q24 Net Profit excluding systemic charges is equal to +11.0% q/q and +12.4% y/y. Systemic charges are equal to €- 6.6 million gross in 1Q23, €+2.0 million gross in 4Q23 and €-35.0 million gross in 1Q24

EXPOSURES IN SECURITIES ISSUED BY SOVEREIGN STATES, SUPRANATIONAL INSTITUTIONS AND AGENCIES

The following table indicates the book value of the exposures in debt securities issued by sovereign States, Supranational institutions, Agencies and local Authorities at 31 st March 2024 classified in the portfolio "Financial assets designated at fair value through other comprehensive income" and "Financial assets at amortised cost"; penetration on the Group's total assets totalled 58.67%.

		(Amounts in € thousand)
	Carrying amount as at	% Financial
	March 31, 2024	statements item
Italy	5,300,542	0.00%
Financial assets at amortised cost	5,300,542	19.74%
Spain	4,128,130	0.00%
Financial assets at amortised cost	4,128,130	15.37%
Germany	171,745	0.00%
Financial assets at amortised cost	171,745	0.64%
France	1,494,964	0.00%
Financial assets at fair value through other comprehensive income	28,600	99.98%
Financial assets at amortised cost	1,466,364	5.46%
U.S.A.	571,392	0.00%
Financial assets at amortised cost	571,392	2.13%
Austria	671,202	0.00%
Financial assets at amortised cost	671,202	2.50%
Ireland	929,699	0.00%
Financial assets at amortised cost	929,699	3.46%
United Kingdom	21,086	0.00%
Financial assets at amortised cost	21,086	0.08%
Belgium	720,000	0.00%
Financial assets at amortised cost	720,000	2.68%
Portugal	369,967	0.00%
Financial assets at amortised cost	369,967	1.38%
Switzerland	20,675	0.00%
Financial assets at amortised cost	20,675	0.08%
Saudi Arabia	89,925	0.00%
Financial assets at amortised cost	89,925	0.33%
Chile	212,717	0.00%
Financial assets at amortised cost	212,717	0.79%
China	165,417	0.00%
Financial assets at amortised cost	165,417	0.62%
Latvia	29,780	0.00%
Financial assets at amortised cost	29,780	0.11%
Iceland	14,974	0.00%
Financial assets at amortised cost	14,974	0.06%
Total sovereign exposures	14,912,215	44.82%
Financial assets at amortised cost - Supranational	2,828,696	8.50%
Financial assets at amortised cost - Agencies and Local Authority exposures	1,777,663	5.34%
Total Supranational, Agencies and Local Authority exposures	4,606,359	13.85%
Total	19,518,574	58.67%

The % shown against the totals were determined on the Group's total assets.

OPERATING STRUCTURE

	Data as at
	March 31, 2024	December 31, 2023
No. Employees	1,404	1,384
No. Personal financial advisors	2,969	2,962
No. Financial shops ¹	429	428

¹Number of Fineco Centers operational: Fineco Centers managed by the Bank and Fineco Centers managed by personal financial advisors (Fineco Centers).

FINECOBANK RATING

	Long term debt	Short term debt	Outlook
S&P GLOBAL RATING	BBB	A-2	Stable

BASIS OF PREPARATION

This Consolidated Interim Financial Report as at 31 st March 2024 – Press Release was prepared on a voluntary basis, to guarantee continuity with previous quarterly reports, as Legislative Decree 25/2016 implementing Directive 2013/50/EU eliminated the obligation for additional periodical financial reports other than the half-year and annual ones.

This Consolidated Interim Financial Report as at 31 st March 2024 – Press Release, as well as the press releases on significant events during the period, the market presentation of the first three months of 2024 and the Database are also available on FinecoBank's website.

This Consolidated Interim Financial Report as at 31st March 2024 – Press Release was not audited by the External Auditors.

Items in the condensed tables of the balance sheet and income statement were prepared according to the models contained in Bank of Italy Circular 262 "Bank financial report: models and rules of compilation" issued by the Bank of Italy, to which were applied the reconciliations illustrated in the "Reconciliation models for the preparation of condensed consolidated financial report" annexed to Financial Statements at December 31st, 2023.

In order to provide additional information on the Group's performance, several alternative performance indicators have been used - APM (such as Cost/income ratio and Cost of Risk), whose description is found in "Glossary of technical terminology and acronyms used" of the Financial Statements at December 31st , 2023, in line with the guidelines published by the European Securities and Markets Authority (ESMA/2015/1415) on 5th October 2015.

The Consolidated Interim Financial Report at 31 st March 2024 – Press Release, shown in reclassified format, was prepared on the basis of the IAS/IFRS in force today. The information contained in this Consolidated Interim Financial Report as at 31 st March 2024 – Press Release was not prepared in accordance with the international accounting standard applicable to interim financial reports (IAS 34).

In the application of the accounting policies, the management is required to make judgements, estimates and assumptions about the carrying amounts of certain assets and liabilities as well as the information regarding contingent assets and liabilities. Estimates and related assumptions take into account all the information available at the reporting date of this document and are based on previous experience and other factors considered reasonable under the circumstances and have been used to estimate the carrying values of assets and liabilities not readily available from other sources. In the presentation of the Consolidated Interim Financial Report at 31 st March 2024 – Press Release, estimates have been used to support the carrying amount of some of the valuation-based items, as required by the accounting standards and regulations. These estimates are largely based, as regards assets, on calculations of future recoverability of the values recognized in the accounts and as regards liabilities, on estimates of the probability of using resources to meet the obligations and on the amount of resources necessary to that end, according to the rules laid down in current legislation and standards. They have been made on the assumption of a going concern, on, i.e. without contemplating the possibility of the forced sale of the estimated items. For some of the above items, the valuation is particularly complex given the uncertainty of the macroeconomic and market situation, recognized by significant levels of volatility in the financial parameters determining the valuation. For other items, the complexity and subjectivity of estimates is influenced by the intricacy of the underlying assumptions, the amount and variability of available information and the uncertainties connected with possible future outcomes of proceedings, disputes and litigation. The parameters and information used to determine the above-mentioned values are therefore significantly affected by multiple factors, which could change rapidly in ways that are currently unforeseeable and, as a result, future effects on the estimated carrying amounts cannot be ruled out.

With specific reference to the assessment of credit exposures, whether represented by receivables or securities, it should be noted that the IFRS9 accounting standard requires that not only historical and current information have to be considered, but also macroeconomic forecast information ("Forward Looking" components), and, in the current crisis context, updating the scenarios underlying the Forward looking components is a particularly complex.

For the purposes of calculating expected credit losses, the Group uses specific models that adopt risk parameters (Probability of Default "PD" and Loss Given Default"LGD") by forward-looking analysis through specific scenarios developed by the external provider Moody's Analytics. In particular, the forward-looking component is determined by three macroeconomic scenarios: a baseline scenario, a positive scenario and an adverse scenario. The baseline scenario is weighted at 40% as it is considered the most likely to occur. The positive and adverse scenarios are weighted at 30% and respectively represent better or worse alternative possibilities. Forward-looking factors used as of March 31st, 2024 include prospective information that considers possible developments in the geopolitical and economic crisis triggered by the military conflict between Russia and Ukraine and the conflict in the Middle East between the State of Israel and Hamas.

With regard to the projections of future cash flows, assumptions and parameters used for the purposes of assessing the recoverability of goodwill, the Fineco brands and domains accounted for in the financial statements, it should be noted that the parameters and information used are significantly influenced by the macroeconomic market scenario, which could undergo unpredictable changes in light of the uncertainties highlighted above. In this regard, it should be noted that as at 31 st March 2024 the Bank assessed that the reasonably estimated changes in the forecast data used as at 31 December 2023 are not such as to have a significant impact on the positive outcome of the impairment test carried out with reference to this date, the results of which confirmed the sustainability of the goodwill accounted for in the financial statements,

not highlighting the need for a write-down in any of the hypothesized scenarios, confirming a value in use significantly higher than the book value.

In cases in which the accounts did not fully reflect the reporting of items on an accruals "pro rata temporis" basis, such as administrative expenses, the accounting figure was supplemented by estimates based on the budget.

With reference to contribution obligations pursuant to Directive 2014/49/EU (Deposit Guarantee Schemes – DGS), it should be noted that in February 2024, Article 42-bis "Transitional Rule: 2024 contributions" was introduced into the Statutes of the Interbank Deposit Guarantee Fund, aimed at enabling the target level of 0.8% of protected deposits to be reached within the timeframe defined by law, no later than 2nd July 2024. For the contribution due for 2024, the financial envelope is made up of ordinary and additional contributions to which the member banks are liable as at 31st March 2024. For this reason, the contribution for the 2024 financial year was recognized in the income statement for the first quarter of 2024 under "Other charges and provisions", rather than at the end of the third quarter as was the case in the past. The contribution for the financial year 2024 was estimated at € 35 million (€ 35 million paid in the financial year 2023).

With regard to the contribution obligations under Directive 2014/59/EU (Single Resolution Fund), it provided for the initiation of a mandatory contribution mechanism to collect by December 31st, 2023, the target level of funding, equal to 1% of the protected deposits of all authorized institutions in the European territory. The accumulation period can be extended by an additional four years if funding mechanisms have made cumulative disbursements of more than 0.5% of protected deposits. The described target resource level was reached by December 31st, 2023, therefore, no contribution was recognized in the income statement for the first quarter of 2024. As a reminder, the Parent Company's portion for 2023, recognized in "Other charges and provisions" in the first quarter of 2023, was € 6.6 million.

The scope of consolidation includes the parent company FinecoBank and the fully consolidated subsidiary Fineco Asset Management DAC. Vorvel SIM S.p.A., the only investment subject to significant influence, was consolidated using the equity method. Finally, with regard to Fineco International Ltd, it should be noted that the company's application for "dissolution" at the English Company House (commercial register) became effective on March 12th, 2024.

CERTIFICATIONS AND OTHER COMMUNICATIONS

Related-Party Transactions

With reference to paragraph 8 of Article 5 "Disclosure of related-party transactions" of the Consob Regulation on related-party transactions (adopted by Consob with resolution no. 17221 of 12 March 2010 and subsequently amended), please note that in the first quarter of 2024 minor intercompany transactions and/or transactions with related parties in general, both Italian and foreign, were conducted within the ordinary course of business and related financial activities of the Bank, and were carried out under arm's length conditions, i.e. conditions similar to those applied to transactions with unrelated third parties.

During the same period, no other transactions were undertaken with related parties that could significantly affect the Bank's asset situation and results, or atypical and/or unusual transactions, including intercompany and related party transactions.

DISCLAIMER

This Press Release may contain written and oral "forward-looking statements", which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of FinecoBank S.p.A. (the "Company"). There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in this Press Release are provided as at the present date and are subject to change without notice. Neither this Press Release nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision.

The information, statements and opinions contained in this Press Release are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction of the United States or in Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would be unlawful (the "Other Countries"), and there will be no public offer of any such securities in the United States or in the Other Countries. This Press Release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or in the Other Countries.

Declaration of the Nominated Official in charge of drawing up company accounts

The undersigned Lorena Pelliciari, as Nominated Official in charge of drawing up Company Accounts of FinecoBank S.p.A.,

DECLARES

in compliance with the provisions of the second paragraph of Article 154-bis of the "Consolidated Finance Act", that the accounting information contained in this press release corresponds to results in the Company accounts, books and records.

Milan, 7 th May 2024

The Nominated Official in charge of drawing up company accounts

TOTAL NET SALES - APRIL 2024

In April net sales were robust at € 844 million, confirming the soundness of the Fineco growth path thanks to the tendency of costumers to continue their investments and to a further acceleration in new clients' acquisition.

The asset mix sees Asset under Custody at € 610 million, while Asset under Management stood at € 195 million: FAM retail net sales were € 209 million, confirming the ability to catch disinvestments from insurance products, which were equal to € -215 million. Direct deposits were positive at € 38 million.

Estimated brokerage revenues equalled to around € 17 million in April, up by 50% compared to the average revenues for 2017-2019. Since the beginning of the year, estimated revenues reached around € 71 million (+9% y/y).

figures in € million
TOTAL NET SALES	APR 2024	APR 2023	JAN-APR '24	JAN-APR '23
Assets under management	195.4	267.0	663.9	1,307.5
Assets under custody	609.7	755.1	3,139.3	3,685.0
o/w Third party deposit current accounts	-19.6	25.2	-44.5	168.6
Direct deposits	38.5	-190.8	-728.0	-1,420.7
TOTAL NET SALES	843.6	831.3	3,075.2	3,571.8
TOTAL FINANCIAL ASSETS	APR 2024	DEC 2023	APR 2023
Assets under management	59,916.7	58,016.1	54,378.6
Assets under custody	40,387.4	36,098.5	29,144.4
o/w Third party deposit current accounts	585.3	629.8	529.8
Direct deposits	27,714.4	28,441.8	29,149.2
TOTAL FINANCIAL ASSETS	128,018.5	122,556.5	112,672.2

FAM, record retail net sales at € 209 million. TFA at € 32 billion In April, Fineco Asset Management recorded retail net sales equal to € 209 million, thanks in particular to the strong interest by clients for the new solutions with a cautious approach, characterized by a strong protection. FAM assets as of April 30th , 2024 were equal to € 32.0 billion, of which € 21.0 billion retail class (+18.4% y/y) and € 10.9 billion institutional class (+5.2% y/y). The penetration rate of FAM retail classes on the Bank's Asset Under Management reached 35.1% compared to 32.7% a year ago.

Total Financial Assets at € 128 billion

Total Financial Assets were equal to € 128.0 billion, up by 13.6% y/y. In particular, TFA related to Private Banking were at € 59.6 billion, up by 20.9% y/y.

Over 11,500 new clients in April

In April, 11,560 new clients (+36.6% y/y) were acquired, bringing the total from the beginning of the year to 51,105 (+27% y/y) Total number of clients reached 1,598,198 (+5.7% y/y) as of April 30 th , 2024.

figures in € million
PFA NETWORK NET SALES	APR 2024	APR 2023	JAN-APR '24	JAN-APR '23
Assets under management	199.4	267.5	684.9	1,305.4
Assets under custody	399.1	582.9	2,202.8	2,780.5
o/w Third party deposit current accounts	-10.1	16.5	-18.5	100.2
Direct deposits	11.9	-189.2	-551.7	-1,152.9
TOTAL NET SALES	610.4	661.2	2,336.0	2,933.0
PFA NETWORK TFA	APR 2024	DEC 2023	APR 2023
Assets under management	59,461.1	57,551.2	53,918.5
Assets under custody	30,129.8	27,020.9	21,695.8
o/w Third party deposit current accounts	326.2	344.7	277.2
Direct deposits	21,583.2	22,133.3	22,723.9
TOTAL FINANCIAL ASSETS	111,174.1	106,705.5	98,338.2

Enquiries Fineco - Media Relations Fineco - Investor Relations Tel.: +39 02 2887 2256 Tel. +39 02 2887 2358 mediarelations@finecobank.com investors@finecobank.com

Barabino & Partners Tel. +39 02 72023535 Emma Ascani e.ascani@barabino.it +39 335 390 334

Fine Comunicato n.1615-40-2024	Numero di Pagine: 22
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