9M20 Results

Resilient Profitability and Rock-Solid Capital Position Strengthened Further Combination with UBI Banca Brings Additional Value Creation

Data A Strong Bank for a Digital World

ISP Delivered Excellent Nine-Month Performance with ~€3bn Minimum Net Income Target for 2020 Already Achieved…

€3.1bn Net income (the second-best 9M Net income since 2008) excluding the effects of the combination with UBI Banca, €4bn excluding provisions for future COVID-19 impacts

€6.4bn stated Net income, including the negative goodwill arising from the combination with UBI Banca(1) – to be used in Q4 to offset integration costs, improve efficiency and accelerate NPL deleveraging – and the two-month contribution of the operations of UBI Banca(2)

Strong Q3 recovery in Net interest income and Commissions, with significant acceleration in AuM Net Inflows(3) (€3bn vs €2.2bn in Q2 and €0.5bn in Q1)

Strong decrease in Operating costs (-3.7% vs 9M19(3)(4))

Annualised cost of risk down to 44bps(3) (vs 53bps in FY19) excluding provisions for future COVID-19 impacts

The lowest-ever 9M and quarterly Gross NPL inflow(5), with €1bn NPL deleveraging in Q3(5) coupled with increased coverage (54.4%(3) vs 53.1% in H1)

Common Equity ratio up at 15.2%(6) (at 15.9% excluding the negative impact from the combination with UBI Banca, ~+100bps in Q3)

(3) Excluding UBI Banca

(4) Data restated for the full line-by-line deconsolidation of the acquiring activities related to the Nexi agreement and to take into account the effects on Operating costs of the Prelios agreement related to UTP servicing and the RBM Assicurazione Salute acquisition
(5) Excluding the impact from the adoption of the new Definition of Default applied since November 2019 and excluding UBI Banca

(6) Pro-forma fully loaded Basel 3 (30.9.20 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, the expected absorption of DTA on losses carried forward and arising from the disposal to BPER Banca of a portion of branches and related assets and liabilities and the expected distribution of 9M20 Net income of insurance companies)

⁽¹⁾ €3,264m estimated, net of the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities. The effective determination of the negative goodwill will result from the outcome of the Purchase Price Allocation procedure envisaged by accounting principle IFRS3. Integration charges related to the combination with UBI Banca and additional provisions to accelerate deleveraging will be booked in Q4

⁽²⁾ €39m for the period 5.8.20-30.9.20, not considering the disposal to BPER Banca of a portion of branches and related assets and liabilities and after €48m (net of tax) of full-year contribution to the Deposit Guarantee Scheme

… Is Fully Equipped for a Challenging Environment…

Common Equity ratio(1) well above regulatory requirements (~+660bps(2)) coupled with a strong liquidity position, with LCR and NSFR well above 100% and more than €280bn in Liquid assets(3)

€36.5bn NPL deleveraging delivered since the September 2015 peak(4) , increased coverage and the lowest NPL stock and NPL ratios since 2008

Distinctive proactive credit management capabilities (Pulse) coupled with strategic partnerships with leading NPL industrial players (Intrum, Prelios)

€1.3bn in provisions for future COVID-19 impacts booked in 9M, of which €430m in Q3(5)

A Wealth Management and Protection company with more than €1 trillion in Customer financial assets

High operating efficiency with Cost/Income ratio at 50.2%(5)

Successful evolution towards a "light" distribution model, with more than 1,000 branches rationalised since 2018 and significant room for further branch reduction

Strong digital proposition, with more than 10m multichannel clients(5)(6) and more than 6m clients using ISP App(5)(6)

Successful mitigation of COVID-19 impact on ISP People and Clients and support to the economy and society

(1) Pro-forma fully loaded Basel 3 (30.9.20 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, the expected absorption of DTA on losses carried forward and arising from the disposal to BPER Banca of a portion of branches and related assets and liabilities and the expected distribution of 9M20 Net income of insurance companies)

(2) Calculated as the difference between the Fully Loaded CET1 Ratio vs requirements SREP + Combined Buffer

(3) Including UBI Banca (€235bn excluding UBI Banca)

(4) Excluding the impact from the adoption of the new Definition of Default applied since November 2019 and excluding UBI Banca

(5) Excluding UBI Banca

(6) More than 12m multichannel clients and more than 7m clients using App when including UBI Banca, not considering the disposal to BPER Banca of a portion of branches and related assets and liabilities

… and Ready to Succeed in the Future

	Continue delivering best-in-class profitability, with
	▪ Minimum ~€3bn Net income target in 2020 already achieved (assuming cost of risk of ~90bps)
Profitability	▪ Minimum ~€3.5bn Net income in 2021 (assuming cost of risk of ~70bps) without considering the combination with UBI Banca
	▪ Minimum ~€5bn Net income starting in 2022 including the benefits from the combination with UBI Banca
Capital	Maintain a solid capital position (minimum Common Equity(1) ratio of 13%, even when taking into account the potential cash distribution from reserves in light of the 2019 Net income allocated to reserves, subject to ECB approval)
Dividend payout	Deliver payout ratio of 75% in 2020 and 70% in 2021(2)
▪ ▪	The combination with UBI Banca is well underway and adds significant value by improving asset quality and delivering synergies with no social costs, and with very low execution risk New Business Plan by the end of 2021, as soon as the macroeconomic scenario becomes clearer

⁽²⁾ Without considering the combination with UBI Banca. The same payout ratios apply when considering the combination with UBI Banca, excluding from 2020 Net income the portion generated by the negative goodwill not allocated to integration costs and accelerated NPL deleveraging

⁽¹⁾ Pro-forma fully loaded Basel 3 (considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, the expected absorption of DTA on losses carried forward and arising from the disposal to BPER Banca of a portion of branches and related assets and liabilities). CET1 ratio fully phased in >12%

The Italian Economy Is Resilient Thanks to Strong Fundamentals and Can Leverage on Government Interventions and EU Financial Support

Strong Italian household wealth at €10.7tn, of which €4.4tn in financial assets, coupled with low household debt

Manufacturing companies have stronger financial structures than pre-2008 crisis levels

Export-oriented companies highly diversified in terms of industry and size, Italian exports have outperformed Germany's by almost 8pp over the past 5 years(1)

Banking system by far stronger than pre-2008 crisis levels

Extensive support from Government packages, worth more than 6% of 2020 GDP and about 4% of 2021 GDP

EU financial support (Next Generation EU) to fund the national recovery and resilience plan providing Italy more than €200bn in grants and loans, of which €25bn in 2021

GDP increased by 16.1% in 3Q20 vs 2Q20, while industrial production is expected to rebound by as much as +30% in the same period
On a yearly basis, GDP is expected to grow by 5.3% in 2021(2), after the forecasted 9.9% decrease in 2020(2)
S&P recently upgraded the outlook on Italy rating to "stable"

ISP Is Successfully Managing a Challenging Environment

9M20: Excellent Nine-Month Performance

Combination with UBI Banca

Final Remarks

In Recent Years, ISP Has More than Halved NPL Stock, Increased NPL Coverage while Significantly Strengthening Capital…

A very resilient business model, with 56% of 9M Gross income(6) from Wealth Management and Protection activities

(1) Including the ~€0.9bn gross impact from the adoption of the new Definition of Default applied since November 2019 and excluding UBI Banca
(2) Including the ~€1bn gross impact from the adoption of the new Definition of Default applied since November 2019 and excluding UBI Banca
(3) Not considering the disposal to BPER Banca of a portion of branches and related assets and liabilities and not considering additional provisions to accelerate NPL deleveraging to be booked in Q4 using part of the negative goodwill
(4) Pro-forma fully loaded Basel 3 (30.9.20 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, the expected absorption of DTA on losses carried forward and arising from the disposal to BPER Banca of a portion of branches and related assets and liabilities and the expected distribution of 9M20 Net income of insurance companies)
(5) Excluding UBI Banca
(6) Excluding Corporate Centre and UBI Banca

… and Is Now Far Better Equipped than Peers to Tackle the Challenges Ahead

Note: figures may not add up exactly due to rounding

(1) Total illiquid assets include Net NPL, Level 2 assets and Level 3 assets
(2) 58% including the effect of Real Estate and Art, Culture and Historical Heritage portfolio revaluation and excluding UBI Banca (61% including UBI Banca)
(3) Sample: BBVA, Barclays, Deutsche Bank, Credit Suisse, Nordea, HSBC, Santander, Standard Chartered and UBS (Fully Loaded CET1 and Net NPL 30.9.20 data); BNP Paribas and Lloyds Banking Group (Fully Loaded CET1 30.9.20 data and Net NPL 30.6.20 data); Commerzbank, Crédit Agricole Group, ING Group, Société Générale and UniCredit (Fully Loaded CET1 and Net NPL 30.6.20 data); Level 2 assets and Level 3 assets 30.6.20 data
(4) Including UBI Banca (6.9% excluding UBI Banca)
(5) Calculated as the difference between the Fully Loaded CET1 Ratio vs requirements SREP + Combined Buffer; only top European banks that have communicated their SREP requirement
(6) Sample: BBVA, BNP Paribas, Deutsche Bank, Nordea and Santander (30.9.20 data); Commerzbank, Crédit Agricole Group, ING Group, Société Générale and UniCredit (30.6.20 data). Source: Investors' Presentations, Press Releases, Conference Calls, Financial Statements
(7) Including UBI Banca for the period 5.8.20-30.9.20, not considering the disposal to BPER Banca of a portion of branches and related assets and liabilities
(8) Excluding UBI Banca
(9) Sample: Barclays, BBVA, BNP Paribas, Credit Suisse, Deutsche Bank, HSBC, Lloyds Banking Group, Nordea, Santander, Standard Chartered and UBS (30.9.20 data); Commerzbank, Crédit Agricole S.A., ING Group, Société Générale and UniCredit (30.6.20 data)

ISP Delivered the Second-Best 9M Net Income of the Past Eleven Years

(1) Management data including the contribution of the two former Venetian banks – excluding public cash contribution of €3.5bn to offset the impact of the acquisition of certain assets of the two former Venetian banks on ISP's capital ratios – and the Morval Group consolidation

(2) Including the estimated negative goodwill arising from the combination with UBI Banca (net of the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities) and the two-month contribution of UBI Banca operations (for the period 5.8.20-30.9.20, not considering the disposal to BPER Banca of a portion of branches and related assets and liabilities)

ISP Proactively Implemented a Complete Set of Responses to Mitigate the COVID-19 Impact

ISP Promptly Ensured Safe Working Conditions for Its People and Clients 1 NOT EXHAUSTIVE

⁽¹⁾ As of 30.9.20,~77,000 including UBI Banca

ISP Actively Committed to Supporting Healthcare Priorities and the Real Economy During the COVID-19 Emergency 2

Main initiatives to provide active support to healthcare priorities and the real economy

	€100m	to strengthen the National Health System through the Civil Protection Department throughout Italy, and in particular in the most affected areas of Bergamo and Brescia. 16 hospitals and 2 COVID-19 Emergency Centres benefitted from the donation with the creation of 36 new hospital wards and 500 hospital beds mainly in Intensive and Sub-Intensive Care Units
	€10m	to support families in financial and social difficulty due to the COVID-19 crisis, of which €5m donated to Ricominciamo Insieme project of the Diocese of Bergamo and €5m donated to the Diocese of Brescia
	€6m	in donations from the CEO (€1m) and top management's 2019 variable compensation, to strengthen healthcare initiatives, with additional voluntary donations from ISP People and Board of Directors
Voluntary donations	€3.5m	donated through ForFunding – the ISP crowdfunding platform – to support Civil Protection Department initiatives related to the COVID-19 emergency
	€1m	allocated from the ISP Charity Fund to boost COVID-19 scientific research
	€600k	intervention by Fondazione Intesa Sanpaolo Onlus to support entities that have guaranteed primary services and direct assistance to vulnerable individuals
	€350k	donated to Associazione Nazionale Alpini to accelerate the construction of a field hospital in Bergamo
	(1)(2) €66bn	for families and companies (1st in Italy to launch the initiative before the suspension of existing mortgage and loan installments regulation came into force), of which ~€52bn for enterprises and ~€14bn for households
	€50bn
		in credit made available to support companies and professionals to protect jobs and manage payments during the emergency
	(3)(4) €16bn	in loans with a State guarantee
Lending support	€10bn	in new credit facilities to boost ~2,500 Italian industrial supplier value chains through the enhancement of the Sviluppo Filiere Program
	€8bn (3)	in loans with a guarantee from SACE (1st in Italy to sign the collaboration protocol with SACE, providing immediate support to large corporates and SMEs under Liquidity Decree)
	€80m	Programma Rinascimento, including impact loans to micro-enterprises and start-ups, for the recovery and the re-shaping of their business models for the post COVID-19 scenario, leveraging on growth and innovation projects boosting economic growth and social and territorial cohesion. Launched in Bergamo (€30m, in partnership with the Municipality) and in Florence (€50m, in partnership with CR Firenze Foundation)

(1) Suspensions granted until mid-October (flows), including renewals

(2) ~€83bn including UBI Banca (3) As of 16.10.20
(4) ~€19bn including UBI Banca

€125m (equal to 50%) of the ISP Fund for Impact will be used to reduce the socioeconomic distress caused by COVID-19

Business Continuity Ensured Thanks to Strong Digital Capabilities 3

Strong value proposition on digital channels…		…enabled immediate business reaction
Enhanced digital service	Multichannel clients	9M20 ~10.1m(1) , +994k vs 9M19
	App users (4.6/5.0 rating on iOS(2) and 4.3/5.0 on Android(2))	~6.2m(1) , +1,000k vs 9M19
	# of digital operations	~84.4m, +26% vs 9M19
	# of digital sales(3)	~1.3m, +199% vs 9M19
	# of digital payments(4)	~13.7m, +131% vs 9M19
	Market Hub(5) orders (average per day)	~58k, +10% vs 9M19
Flexible and secure	Conference call/video conference (average usage per day)	~380k(6) , +190k vs September 2019
remote work infrastructure	Instant messaging (average usage per day)	~390k(6) , +90k vs September 2019
~96% of staff employees(7) enabled to work from home vs ~50% in 3Q19
Ranked first among Italian corporates in the "Cyber Resilience amid a Global (8) by AIPSA(7) Pandemic" competition organised

(1) More than 12m multichannel clients and more than 7m clients using App when including UBI Banca, not considering the disposal to BPER Banca of a portion of branches and related assets and liabilities

(2) As of September 2020

(3) Commercial offer sent to the client (website or App) by Relationship manager or online branch, signed electronically by the clients, or self-service purchases

(4) Number of payments with digital wallet (e.g. Apple Pay, Samsung Pay, Google Pay)

(5) IMI C&IB platform for corporate client operations

(6) Data referring to September 2020

(7) Governance centre Italian perimeter

(8) Italian Association of Corporate Security Professionals

ISP Can Leverage Its Competitive Advantages in the New Environment 4

Key trends		ISP's competitive advantages
Increased demand for health, wealth and business protection		▪ Best-in-class European player in Life insurance and in Wealth Management ▪ Strong positioning in the protection business (#2 Italian player in health insurance and #3 in non-motor retail with RBM)
Riskier environment		▪ Distinctive proactive credit management capabilities (Pulse) ▪ Strategic partnerships with leading NPL industrial players (Intrum, Prelios)
Client digitalisation		▪ Among top 4 in Europe for mobile App functionalities(1), with scale for additional investments ▪ Already strong digital proposition with more than 10m multichannel clients(2) ▪ Distinctive digital value proposition for SMEs, Mid and Large Corporates (CIB2B) ▪ Strategic partnership with Nexi in payment systems
Digital way of working		▪ with remote working enabled for more than 63,000 ISP People(3) Accelerated digitalisation ▪ Strong track record in rapid and effective distribution model optimisation (e.g., more than 1,000 branches rationalised since 2018) and further branch reduction in light of: – Combination with UBI Banca – Banca 5®-SisalPay strategic partnership – ISP high-quality digital channels, to continue serving the majority of clients who have changed their habits during COVID-19
Strengthened ESG importance		▪ The only Italian bank listed in the main Sustainability Indexes(4) ▪ Ranked first among peers by MSCI and CDP, two of the top ESG international assessments
(1) Source: The Forrester Banking Wave™: European Mobile Apps, Q2 2019		Awarded "Best Bank in Italy" in the Euromoney awards for Excellence 2020 (2) More than 12m multichannel clients when including UBI Banca, not considering the disposal to BPER Banca of a portion of branches and related assets and liabilities

(3) As of 30.9.20,~77,000 including UBI Banca

13 (4) Including: Dow Jones Sustainability Indexes, CDP Climate Change A List 2018, 2019 Corporate Knights ''Global 100 Most Sustainable Corporations in the World Index''

ISP Is Successfully Managing a Challenging Environment

9M20: Excellent Nine-Month Performance

Combination with UBI Banca

Final Remarks

COVID-19 Outbreak Impacted the Real Economy and Financial Markets

(1) Source: Bloomberg, ISTAT

(2) Chicago Board Options Exchange (CBOE) Volatility Index; period average; source: Bloomberg

(3) Market performance between 30.3.19 and 31.12.19 and between 31.12.19 and 30.9.20

(4) Lifting of all travel restrictions across the country

9M20 Highlights: ~€3bn Minimum Net Income Target for 2020 Already Achieved

◼ Solid economic performance despite three months of a countrywide lockdown:
- ❑ €3,073m Net income (the second-best 9M Net income since 2008) excluding the effects of the combination with UBI Banca, €4bn excluding provisions for future COVID-19 impacts (~€3bn minimum Net income target for 2020 already achieved)
- ❑ €6,376m stated Net income, including €3,264m of negative goodwill arising from the combination with UBI Banca(1) – to be used in Q4 to offset integration costs, improve efficiency and accelerate NPL deleveraging – and €39m twomonth contribution of the operations of UBI Banca(2)
- ❑ Q3 Net income at €507m(3), ~€800m excluding provisions for future COVID-19 impacts
- ❑ Strong Q3 recovery in Net interest income and Commissions, with acceleration in AuM Net inflows(4) (€3bn vs €2.2bn in Q2 and €0.5bn in Q1)
- ❑ Significant decrease in Operating costs (-3.7% vs 9M19(4)(5) and -5.3% vs 3Q19(4)(5)) and the lowest-ever Administrative costs (-7.7% vs 9M19(4)(5) and -10.5% vs 3Q19(4)(5))
- ❑ Annualised cost of risk down to 44bps(4) (vs 53bps in FY19) excluding provisions for future COVID-19 impacts
- ❑ The lowest-ever 9M and quarterly Gross NPL inflow(6), coupled with increased NPL coverage (54.4%(4) vs 53.1% in H1)
◼ Best-in-class capital position and balance sheet further strengthened:
- ❑ Common Equity ratio up at 15.2%(7) (up at 15.9% excluding the negative impact from the combination with UBI Banca, ~+100bps in Q3), well above regulatory requirements (~+660bps(8))
- ❑ €3.7bn NPL deleveraging since 30.9.19(6) (€2.7bn in 9M(6) and €1bn in Q3(6))
- ❑ The lowest NPL stock and NPL ratios since 2008
- ❑ Best-in-class leverage ratio: 6.6%(9)
- ❑ Strong liquidity position: LCR and NSFR well above 100%; more than €280bn in Liquid assets(10)

(4) Excluding UBI Banca

(8) Calculated as the difference between the Fully Loaded CET1 Ratio vs requirements SREP + Combined Buffer

¹⁶ (10) Stock of own-account eligible assets (including assets used as collateral and excluding eligible assets received as collateral) and cash and deposits with Central Banks and including UBI Banca (€235bn excluding UBI Banca)

⁽¹⁾ Estimated, net of the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities. The effective determination of the negative goodwill will result from the outcome of the Purchase Price Allocation procedure envisaged by accounting principle IFRS3. Integration charges related to the combination with UBI Banca and additional provisions to accelerate deleveraging will be booked in Q4

⁽²⁾ For the period 5.8.20-30.9.20, not considering the disposal to BPER Banca of a portion of branches and related assets and liabilities and after €48m (net of tax) of full-year contribution to the Deposit Guarantee Scheme

⁽³⁾ Excluding the estimated negative goodwill arising from the combination with UBI Banca and the two-month contribution of the operations of UBI Banca

⁽⁵⁾ Data restated for the full line-by-line deconsolidation of the acquiring activities related to the Nexi agreement and to take into account the effects on Operating costs of the Prelios agreement related to UTP servicing and the RBM Assicurazione Salute acquisition

⁽⁶⁾ Excluding the impact from the adoption of the new Definition of Default applied since November 2019 and excluding UBI Banca

⁽⁷⁾ Pro-forma fully loaded Basel 3 (30.9.20 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, the expected absorption of DTA on losses carried forward and arising from the disposal to BPER Banca of a portion of branches and related assets and liabilities and the expected distribution of 9M20 Net income of insurance companies)

⁽⁹⁾ Including UBI Banca (6.9% excluding UBI Banca)

9M20: Strong Growth in Profitability and Balance Sheet Further Strengthened

(1) Including the impact from the adoption of the new Definition of Default applied since November 2019 and excluding UBI Banca

(2) Pro-forma fully loaded Basel 3 (30.9.20 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, the expected absorption of DTA on losses carried forward and arising from the disposal to BPER Banca of a portion of branches and related assets and liabilities and the expected distribution of 9M20 Net income of insurance companies)

(3) Calculated as the difference between the Fully Loaded CET1 Ratio vs requirements SREP + Combined Buffer; only top European banks that have communicated their SREP requirement

(4) Sample: BBVA, BNP Paribas, Deutsche Bank, Nordea and Santander (30.9.20 data); Commerzbank, Crédit Agricole Group, ING Group, Société Générale and UniCredit (30.6.20 data). Source: Investors' Presentations, Press Releases, Conference Calls, Financial Statements

(5) Not considering the disposal to BPER Banca of a portion of branches and related assets and liabilities and not considering the additional provisions to accelerate NPL deleveraging to be booked in Q4 using part of the negative goodwill

Our Excellent Performance Creates Benefits for All Stakeholders

Excluding UBI Banca

(1) Excluding the Net income portion generated by the Negative Goodwill not allocated to integration costs and accelerated NPL deleveraging

(2) Direct and indirect

(3) Deriving from Non-performing loans outflow

ISP as the Engine of Sustainable and Inclusive Growth…

€50bn in new lending dedicated to the Green Economy
€50bn in credit available to support companies and professionals during the COVID-19 emergency
More than €100m donated to provide COVID-19 relief
€125m (equal to 50%) of the ISP Fund for Impact will be used to reduce socioeconomic distress caused by COVID-19

Note: excluding UBI Banca

Link to video:https://group.intesasanpaolo.com/en/editorial-section/Intesa-Sanpaolo-The-driver-of-sustainable-and-inclusive-development

… Delivering Tangible Results for Society

SELECTED HIGHLIGHTS COVID-19 related initiatives

(1) Associazione Nazionale Alpini
(2) Suspensions granted until mid-October (flows), including renewals
(3) ~€83bn including UBI Banca (4) As of 16.10.20
(5) ~€19bn including UBI Banca

20 XME StudioStation launched in August 2020: loans to families to support distance learning International Turin Book Fair (Salone del Libro):"SalTo Notte" which consisted of two digital

events (Milan and Naples), with 114,075 views

ISP Leads in the Main Sustainability Indexes and Rankings

(1) ISP peer group

(2) Natixis

Sources: Bloomberg ESG Disclosure Score (Bloomberg as of 30.9.20), CDP Climate Change Score 2019 (https://www.cdp.net/en/companies/companies-scores); MSCI ESG Score 2019 (https://www.msci.com/esg-ratings) Data as of 14 10 20; Robeco SAM (Bloomberg as of 30.9.20); Sustainalytics score (https://www.sustainalytics.com/ ESG Risk Rating as of 20.10.20)

9M: ~€3bn Minimum Net Income Target for 2020 Already Achieved

9M20 P&L (excluding negative goodwill(1) arising from combination with UBI Banca and the two-month contribution of the operations(2) of UBI Banca) € m

Note: figures may not add up exactly due to rounding

(1) €3,264m estimated, net of the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities. The effective determination of the negative goodwill will result from the outcome of the Purchase Price Allocation procedure envisaged by accounting principle IFRS3

(2) €39m for the period 5.8.20-30.9.20, not considering the disposal to BPER Banca of a portion of branches and related assets and liabilities and after €48m (net of tax) of full-year contribution to the Deposit Guarantee Scheme

(3) Data restated for the full line-by-line deconsolidation of the acquiring activities related to the Nexi agreement and to take into account the effects on Operating costs of the Prelios agreement related to UTP servicing and the RBM Assicurazione Salute acquisition

(4) Excluding credit-linked products
(5) Net provisions and net impairment losses on other assets, Other income (expenses), Income (Loss) from discontinued operations
(6) Charges (net of tax) for integration and exit incentives, Effect of purchase price allocation (net of tax), Levies and other charges concerning the banking industry (net of tax), Impairment (net of tax) of goodwill and other intangible assets, Minority interests
(7) Including charges for the Resolution Fund: €254m pre-tax (€175m net of tax), charges for the Deposit Guarantee Scheme: €226m pre-tax (€155m net of tax) and €86m pre-tax (€58m net of tax) for the additional contribution to the National Resolution Fund

Q3: Strong Recovery in Net Interest Income and Commissions

3Q20 P&L (excluding negative goodwill(1) arising from the combination with UBI Banca and the two-month contribution of the operations(2) of UBI Banca) € m

Note: figures may not add up exactly due to rounding

(4) Net provisions and net impairment losses on other assets, Other income (expenses), Income (Loss) from discontinued operations

(5) Charges (net of tax) for integration and exit incentives, Effect of purchase price allocation (net of tax), Levies and other charges concerning the banking industry (net of tax), Impairment (net of tax) of goodwill and other intangible assets, Minority interests

Net Interest Income Growth on a Yearly and Quarterly Basis

Quarterly comparison Yearly comparison Net interest income, 3Q20 vs 2Q20 € m Net interest income, 9M20 vs 9M19 € m 58 7 9 2Q20 Net interest income Volumes Spread Hedging Financial components (1) 3Q20 Net interest income (2) 1,750 (6) 1,818 147 34 Hedging Financial components (1) 9M19 Net interest income 9M20 Net interest income (2) Volumes Spread 5,258 (99) (25) 5,315 Commercial component Commercial component €103m excluding NPL stock reduction impact

(2) Excluding the two-month contribution to the P&L of the operations of UBI Banca

€1 Trillion in Customer Financial Assets

Customer financial assets(1)

(1) Net of duplications between Direct Deposits and Indirect Customer Deposits (2) Not considering the disposal to BPER Banca of a portion of branches and related assets and liabilities

Continued Strong Reduction in Operating Costs while Investing for Growth

Operating costs

ISP maintains high strategic flexibility in managing costs
~3,000 headcount reduction on a yearly basis, of which 1,555 in Q3
~500 additional voluntary exits by June 2021 (of which ~100 by the end of 2020) already agreed with labour unions and fully provisioned (not including the agreement of at least 5,000 additional voluntary exits with up to 2,500 hires by 2023 signed on 29.9.20, related to the combination with UBI Banca)
Further possible branch reduction in light of the Banca 5®-SisalPay strategic partnership and combination with UBI Banca

(1) Data restated for the full line-by-line deconsolidation of the acquiring activities related to the Nexi agreement and to take into account the effects on Operating costs of the Prelios agreement related to UTP servicing and the RBM Assicurazione Salute acquisition

One of the Best Cost/Income Ratios in Europe

(1) Sample: Barclays, BBVA, BNP Paribas, Credit Suisse, Deutsche Bank, HSBC, Lloyds Banking Group, Nordea, Santander, Standard Chartered and UBS (30.9.20 data); Commerzbank, Crédit Agricole S.A., ING Group, Société Générale and UniCredit (30.6.20 data)

(2) Excluding UBI Banca

27 (3) Including UBI Banca for the period 5.8.20-30.9.20, not considering the disposal to BPER Banca of a portion of branches and related assets and liabilities

Continuous Improvement in Asset Quality, with the Lowest NPL Stock since 2008, Together with the Lowest-ever 9M and Quarterly Gross NPL Inflow

(1) Excluding the ~€0.4bn gross impact in 9M from the adoption of the new Definition of Default applied since November 2019 and excluding UBI Banca (2) Excluding the ~€0.1bn gross impact in Q3 from the adoption of the new Definition of Default applied since November 2019 and excluding UBI Banca (3) Including the ~€0.6bn gross impact from the adoption of the new Definition of Default applied since November 2019 and excluding UBI Banca

(4) Including the ~€0.9bn gross impact from the adoption of the new Definition of Default applied since November 2019 and excluding UBI Banca

(5) Including the ~€1bn gross impact from the adoption of the new Definition of Default applied since November 2019 and excluding UBI Banca

(6) Not considering the disposal to BPER Banca of a portion of branches and related assets and liabilities and not considering additional provisions to accelerate NPL deleveraging to be booked in Q4 using part of the negative goodwill

(7) Inflow to NPL (Bad Loans, Unlikely to Pay and Past Due) from performing loans. Excluding UBI Banca

(8) Inflow to NPL (Bad Loans, Unlikely to Pay and Past Due) from performing loans minus outflow from NPL into performing loans. Excluding UBI Banca

Loan Loss Provisions Down, Excluding €1.3bn Provisions for Future COVID-19 Impacts

Rock-Solid Capital Base even Higher, Well Above Regulatory Requirements

Note: figures may not add up exactly due to rounding

(2) Calculated as the difference between the Fully Loaded CET1 Ratio vs requirements SREP + Combined Buffer; only top European banks that have communicated their SREP requirement

(3) Sample: BBVA, BNP Paribas, Deutsche Bank, Nordea and Santander (30.9.20 data); Commerzbank, Crédit Agricole Group, ING Group, Société Générale and UniCredit (30.6.20 data). Source: Investors' Presentations, Press Releases, Conference Calls, Financial Statements

Increased Capital Buffer vs Regulatory Requirements

Note: figures may not add up exactly due to rounding

(1) Taking into account the regulatory changes introduced by the ECB on 12.3.20, which require that the Pillar 2 requirement can be respected by partially using equity instruments other than CET1 and contextual revisions of the Countercyclical Capital Buffer by the competent national authorities in the various countries

(2) Calculated as the difference between the Fully Loaded CET1 Ratio vs requirements SREP + Combined Buffer

(3) Pro-forma fully loaded Basel 3 (30.9.20 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, the expected absorption of DTA on losses carried forward and arising from the disposal to BPER Banca of a portion of branches and related assets and liabilities and the expected distribution of 9M20 Net income of insurance companies)

Best-in-Class Excess Capital

Note: figures may not add up exactly due to rounding

(1) Calculated as the difference between the Fully Loaded CET1 ratio vs requirements SREP + Combined Buffer; the Countercyclical Capital Buffer is estimated; only top European banks that have communicated their SREP requirement
(2) Sample: BBVA, BNP Paribas, Deutsche Bank, Nordea and Santander (30.9.20 data); Commerzbank, Crédit Agricole Group, ING Group, Société Générale and UniCredit (30.6.20 data). Source: Investors' Presentations, Press Releases, Conference Calls, Financial Statements
(3) Including UBI Banca (6.9% excluding UBI Banca)
(4) Pro-forma fully loaded Basel 3 (30.9.20 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, the expected absorption of DTA on losses carried forward and arising from the disposal to BPER Banca of a portion of branches and related assets and liabilities and the expected distribution of 9M20 Net income of insurance companies)

Best-in-Class Risk Profile in Terms of Financial Illiquid Assets

More than €280bn in Liquid assets(4) with LCR and NSFR well above 100%

(1) Fully Loaded CET1. Sample: Barclays, BBVA, BNP Paribas, Credit Suisse, Deutsche Bank, HSBC, Lloyds Banking Group, Nordea, Santander, Standard Chartered and UBS (30.9.20 data); Commerzbank, Crédit Agricole Group, ING Group, Société Générale and UniCredit (30.6.20 data)

(2) Total illiquid assets include Net NPL, Level 2 assets and Level 3 assets. Sample: BBVA, Barclays, Deutsche Bank, Credit Suisse, Nordea, HSBC, Santander, Standard Chartered and UBS (Net NPL 30.9.20 data); BNP Paribas, Commerzbank, Crédit Agricole Group, ING Group, Lloyds Banking Group, Société Générale and UniCredit (Net NPL 30.6.20 data); Level 2 assets and Level 3 assets 30.6.20 data

(3) 58% including the effect of Real Estate and Art, Culture and Historical Heritage portfolio revaluation and excluding UBI Banca (61% including UBI Banca)

(4) Stock of own-account eligible assets (including assets used as collateral and excluding eligible assets received as collateral) and cash and deposits with Central Banks and including UBI Banca (€235bn excluding UBI Banca)

Reconciliation Between Net Income and Stated Net Income

€ m

	Intesa Sanpaolo Group Q3 P&L				Intesa Sanpaolo Group 9M P&L
P&L	Stated(1)	UBI Banca contribu tion for the period 5.8.20-30.9.20	Excluding the operations of UBI Banca and negative goodwill(2)	Stated(1)	Excluding the operations of UBI Banca and negative goodwill(2)
Net interest income	2,099	281	1,818	5,596	5,315
Net fees and commissions	2,133	272	1,861	5,721	5,449
Profits on trading	126	5	121	1,383	1,378
Insurance income	298	3	295	1,034	1,031
Other operating income/expenses	2	14	(12)	(1)	(15)
Operating income	4,658	575	4,083	13,733	13,158
Personnel	(1,595)	(237)	(1,358)	(4,331)	(4,094)
Admin.	(658)	(88)	(570)	(1,794)	(1,706)
Depreciation	(303)	(35)	(268)	(834)	(799)
Operating margin	2,102	215	1,887	6,774	6,559
Loan loss provisions	(938)	(85)	(853)	(2,739)	(2,654)
Other charges/gains(3)	(44)	(7)	(37)	944	951
Gross income	1,120	123	997	4,979	4,856
Taxes	(320)	(31)	(289)	(1,194)	(1,163)
Other(4)	3,010	3,211	(201)	2,591	(620)
Net income	3,810	3,303	507	6,376	3,073
UBI Banca two-month contribution (€39m Net income) not representative of future profitability

and impacted by €48m (net of tax) of full-year contribution to the Deposit Guarantee Scheme

(1) Including the estimated negative goodwill arising from the combination with UBI Banca (€3,264m net of the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities) and the two-month contribution of UBI Banca operations (€39m Net income for the period 5.8.20-30.9.20, not considering the disposal to BPER Banca of a portion of branches and related assets and liabilities)

(2) Excluding the estimated negative goodwill arising from the combination with UBI Banca (€3,264m net of the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities) and the two-month contribution of UBI Banca operations (€39m Net income for the period 5.8.20-30.9.20, not considering the disposal to BPER Banca of a portion of branches and related assets and liabilities)

(3) Net provisions and net impairment losses on other assets, Other income (expenses), Income (Loss) from discontinued operations

(4) Charges (net of tax) for integration and exit incentives, Effect of purchase price allocation (net of tax), Levies and other charges concerning the banking industry (net of tax), Impairment (net of tax) of goodwill and other intangible assets, Minority interests

ISP Is Successfully Managing a Challenging Environment

9M20: Excellent Nine-Month Performance

Combination with UBI Banca

Final Remarks

ISP Has Completed a Large Number of Key UBI Integration Activities

Description Delivered ▪ Set up a core team dedicated to the integration ▪ Appointed UBI Banca's new Board of Directors ▪ Signed labour union agreement (~3 months in advance) for at least 5,000 voluntary exits and up to 2,500 hires, with no social costs ▪ Ongoing HR interviews with UBI Banca management ▪ Ongoing prioritisation of gaps identified between ISP and UBI Banca systems, for ISP-UBI Banca integration ▪ Ongoing prioritisation of gaps identified between UBI Banca and BPER systems, necessary for branch disposal ▪ Completed mapping of the ESG/Impact initiatives of ISP and UBI Banca ▪ Completed all the mandatory activities foreseen by the integration plan to date (365 activities as of 15.10.20) ▪ Adoption by UBI Banca of ISP Group code ▪ Ongoing integration of the commercial networks (already launched joint commercial initiatives) ▪ Alignment of ATM withdrawal fees ▪ Almost completed alignment of credit policies (e.g., by sector) ▪ Ongoing alignment of pricing policies of ISP and UBI Banca retail business ▪ Identified solution for Pramerica product placement in the network and identified target and transitional commercial offer Governance operational activities Business activities

and

▪ Completed UBI Banca life, non-life and health product catalog analysis, including comparison with ISP products

ISP Outside-In Analysis Showed ~€700m of Expected Synergies by 2024…

…which are now considered as a floor both on the revenue and cost side after initial joint analysis commercial performance in October

ISP Fully Respected the Timing to Complete the Exchange Offer and Has Already Planned the Next Steps for the Integration of UBI Banca

NOT EXHAUSTIVE

		Delivered
17 February 2020	ISP's Notice pursuant to Art. 102	✓
25 June 2020	Approval of the Exchange Offer Document by CONSOB	✓
6 – 30 July 2020	Exchange Offer period	✓
5 August 2020	Settlement of the Exchange Offer	✓
29 September 2020	Agreement with labour unions for at least 5,000 voluntary exits and up to 2,500 new hires by 2023	✓
5 October 2020	Settlement of the Squeeze-out and delisting of UBI Banca	✓
15 October 2020	Appointment of a new Board of Directors for UBI Banca	✓
By December 2020	Definition of the carved-out perimeter subject to disposal
By December 2020	Additional Loan loss provisions to accelerate NPL deleveraging
By February 2021	Disposal of branches and related assets and liabilities to BPER Banca	Next Steps
By April 2021	Merger of UBI Banca into ISP and completion of IT integration
By December 2021	Completion of integration of the two Groups and – wherever possible – integration of UBI Banca's Product Companies
By December 2021	UBI Banca gross NPL disposal on highly-provisioned positions

ISP Is Successfully Managing a Challenging Environment

9M20: Excellent Nine-Month Performance

Combination with UBI Banca

Final Remarks

ISP Is Fully Equipped to Succeed in this Challenging Environment

ISP is fully equipped for this challenging environment:

Best-in-class excess capital, low leverage and strong liquidity
€1,312m(1) in additional provisions already booked in 9M to tackle future COVID-19 impacts
Low NPL stock, with robust coverage at 54.4%(1)
Well-diversified and resilient business model
High strategic flexibility in managing costs, with Cost/Income ratio at 50.2%(1)

ISP delivered excellent performance in 9M:

Second-best 9M Net income since 2008(1) (~€3bn minimum Net income target for 2020 already achieved)
Strong recovery in Net interest income and Commissions in Q3
Strong cost reduction
Lowest-ever 9M and quarterly Gross NPL inflow
Common Equity Ratio up ~+100bps in Q3 excluding the negative impact from the combination with UBI Banca
Continue delivering best-in-class profitability with:
- ─ Minimum ~€3bn Net income in 2020 assuming cost of risk of ~90bps, without considering the combination with UBI Banca
- ─ Minimum ~€3.5bn Net income in 2021 assuming cost of risk of ~70bps, without considering the combination with UBI Banca
- ─ Minimum ~€5bn Net income starting in 2022, including the benefits from the combination with UBI Banca
Maintain a solid capital position (minimum Common Equity(2) ratio of 13%, even when taking into account the potential cash distribution from reserves in light of the 2019 Net income allocated to reserves, subject to ECB approval)
Deliver payout ratio of 75% in 2020 and 70% in 2021(3)
On top of the cash dividend from 2020 Net income, ISP will seek ECB approval for a cash distribution to shareholders from reserves in 2021 in light of the 2019 Net income allocated to reserves in 2020
The combination with UBI Banca is well underway and adds significant value by improving asset quality and delivering synergies with no social costs, and with very low execution risk
New Business Plan by the end of 2021, as soon as the macroeconomic scenario becomes clearer

⁽³⁾ Without considering the combination with UBI Banca. The same payout ratios apply when considering the combination with UBI Banca, excluding from 2020 Net income the portion generated by the negative goodwill not allocated to integration costs and accelerated NPL deleveraging

⁽¹⁾ Excluding UBI Banca

⁽²⁾ Pro-forma fully loaded Basel 3 (considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, the expected absorption of DTA on losses carried forward and arising from the disposal to BPER Banca of a portion of branches and related assets and liabilities relating to the combination with UBI Banca). CET1 ratio fully phased in >12%

9M20 Results

Detailed Information

9M20: Key P&L Figures

€ m

	Including UBI Banca(1)	Excluding UBI Banca
Operating income	13,733	13,158
Operating costs	(6,959)	(6,599)
Cost/Income ratio	50.7%	50.2%
Operating margin	6,774	6,559
Gross income (loss)	4,979	4,856
Net income	6,376	3,073
Net income excluding negative goodwill(2)	3,112

(1) Including UBI Banca from 5.8.20, not considering the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities

(2) €3,264m estimated, net of the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities. The effective determination of the negative goodwill will result from the outcome of the Purchase Price Allocation procedure envisaged by accounting principle IFRS3. Integration charges related to the UBI Banca combination and additional provisions to accelerate NPL deleveraging to be booked in Q4

9M20: Key Balance Sheet Figures

€ m	UBI Banca(1) Including	Excluding UBI Banca
Loans to Customers	489,148	403,901
Customer Financial Assets(2)	1,179,606	982,116
of which Direct Deposits from Banking Business	547,328	449,007
of which Direct Deposits from Insurance Business and Technical Reserves	169,690	167,099
of which Indirect Customer Deposits	631,026	531,857
- Assets under Management	430,230	356,481
- Assets under Administration	200,796	175,376
RWA	342,251	285,775

Note: figures may not add up exactly due to rounding

(1) Not considering the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities

(2) Net of duplications between Direct Deposits and Indirect Customer Deposits

Detailed Consolidated P&L Results

Liquidity, Funding and Capital Base

Asset Quality

Divisional Results and Other Information

MIL-BVA327-15051trim.13-90141/LR 9M20 vs 9M19: €3.1bn Net Income, Second-Best 9M Result since 2008 9M19 %

€ m

		9M20
	pro-forma(1) [ A ]	(including UBI Banca(2)) [ B ]	(excluding UBI Banca) [ C ]	[ C ] / [ A ]
Net interest income	5,258	5,596	5,315	1.1
Net fee and commission income	5,796	5,721	5,449	(6.0)
Income from insurance business	948	1,034	1,031	8.8
Profits on financial assets and liabilities at fair value	1,572	1,383	1,378	(12.3)
Other operating income (expenses)	14	(1)	(15)	n.m.
Operating income	13,588	13,733	13,158	(3.2)
Personnel expenses	(4,229)	(4,331)	(4,094)	(3.2)
Other administrative expenses	(1,849)	(1,794)	(1,706)	(7.7)
Adjustments to property, equipment and intangible assets	(773)	(834)	(799)	3.4
Operating costs	(6,851)	(6,959)	(6,599)	(3.7)
Operating margin	6,737	6,774	6,559	(2.6)	(3.9)% excluding €1,312m
Net adjustments to loans	(1,396)	(2,739)	(3) (2,654)	90.1	in provisions for future
Net provisions and net impairment losses on other assets	(86)	(224)	(217)	152.3	COVID-19 impacts
Other income (expenses)	5	5	5	0.0
Income (Loss) from discontinued operations	63	1,163	1,163	n.m.
Gross income (loss)	5,323	4,979	4,856	(8.8)
Taxes on income	(1,513)	(1,194)	(1,163)	(23.1)
Charges (net of tax) for integration and exit incentives	(79)	(77)	(77)	(2.5)
Effect of purchase price allocation (net of tax)	(105)	(4) 3,187	(77)	(26.7)
Levies and other charges concerning the banking industry (net of tax)	(338)	(474)	(5) (425)	25.7
Impairment (net of tax) of goodwill and other intangible assets	0	0	0	n.m.
Minority interests	22	(45)	(41)	n.m.
Net income	3,310	6,376	3,073	(7.2)

Note: figures may not add up exactly due to rounding

(2) Including UBI Banca from 5.8.20, not considering the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities

(3) Including €1,312m in provisions for future COVID-19 impacts

(4) Including €3,264m estimated negative goodwill, net of the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities. The effective determination of the negative goodwill will result from the outcome of the Purchase Price Allocation procedure envisaged by accounting principle IFRS3. Integration charges related to the UBI Banca combination and additional provisions to accelerate NPL deleveraging to be booked in Q4

(5) €612m pre-tax of which charges for the Resolution Fund: €254m pre-tax (€175m net of tax), charges for the Deposit Guarantee Scheme: €226m pre-tax (€155m net of tax) and €86m pre-tax (€58m net of tax) for the additional contribution to the National Resolution Fund

Q3 vs Q2: Strong Recovery in Net Interest Income and Commissions 2Q20 %

€ m

		3Q20
	[ A ]	(including UBI Banca(1)) [ B ]	(excluding UBI Banca) [ C ]	[ C ] / [ A ]
Net interest income	1,750	2,099	1,818	3.9
Net fee and commission income	1,744	2,133	1,861	6.7
Income from insurance business	367	298	295	(19.6)
Profits on financial assets and liabilities at fair value	263	126	121	(54.0)
Other operating income (expenses)	12	2	(12)	n.m.
Operating income	4,136	4,658	4,083	(1.3)
Personnel expenses	(1,380)	(1,595)	(1,358)	(1.6)
Other administrative expenses	(583)	(658)	(570)	(2.2)
Adjustments to property, equipment and intangible assets	(267)	(303)	(268)	0.4
Operating costs	(2,230)	(2,556)	(2,196)	(1.5)
Operating margin	1,906	2,102	1,887	(1.0)
Net adjustments to loans	(2) (1,398)	(938)	(3) (853)	(39.0)
Net provisions and net impairment losses on other assets	262	(67)	(60)	n.m.
Other income (expenses)	(21)	23	23	n.m.
Income (Loss) from discontinued operations	1,134	0	0	(100.0)
Gross income (loss)	1,883	1,120	997	(47.1)
Taxes on income	(313)	(320)	(289)	(7.7)
Charges (net of tax) for integration and exit incentives	(35)	(27)	(27)	(22.9)
Effect of purchase price allocation (net of tax)	(24)	(4) 3,237	(27)	12.5
Levies and other charges concerning the banking industry (net of tax)	(86)	(197)	(5) (148)	72.1
Impairment (net of tax) of goodwill and other intangible assets	0	0	0	n.m.
Minority interests	(10)	(3)	1	n.m.
Net income	1,415	3,810	507	(64.2)

Note: figures may not add up exactly due to rounding

(1) Including UBI Banca from 5.8.20, not considering the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities

(2) Including €882m in provisions for future COVID-19 impacts

(3) Including €430m in provisions for future COVID-19 impacts

(5) €218m pre-tax

MIL-BVA327-15051trim.13-90141/LR

Net Interest Income: Yearly and Quarterly Growth Despite All-Time Low Interest Rates

Data excluding UBI Banca

◼ Strong growth vs 2Q20 (+3.9%) and vs 3Q19 (+4.4%) despite continued all-time low interest rates
◼ 3.1% growth in average Direct deposits from banking business vs Q2 (+7.2% vs 3Q19)
◼ 5.0% growth in average Performing loans to customers vs 3Q19
◼ Increase mainly due to the commercial component
◼ 4.9% growth in average Direct deposits from banking business
◼ 4.9% growth in average Performing loans to customers

Net Interest Income: Increase Mainly Due to Commercial Component Growth

Data excluding UBI Banca

Note: figures may not add up exactly due to rounding

(1) ~€125m benefit from hedging on core deposits in 9M20, of which ~€45m in 3Q20

Net Fee and Commission Income: Strong Increase vs Q2

Data excluding UBI Banca

◼ Commissions from Commercial banking activities up 4.1% (+€21m) vs Q2
◼ Increase vs Q2 mainly due to the growth in commissions from Management, dealing and consultancy activities (+8.7%; +€93m)
◼ €3bn in AuM net inflows in 3Q20
◼ 9M20 impacted by three months of countrywide lockdown and market volatility
◼ Commissions from Commercial banking activities down 7.6% (-€129m)
◼ Commissions from Management, dealing and consultancy activities down 3.3% (-€116m)

Profits on Financial Assets and Liabilities at Fair Value: €1.4bn in 9M20

Data excluding UBI Banca

MIL-BVA327-15051trim.13-90141/LR Operating Costs: Further Significant Reduction while Investing for Growth

Data excluding UBI Banca

double-digit decrease vs 3Q19 ◼ 1,555 headcount reduction in Q3

◼ Lowest-ever Other administrative expenses (-7.7%)
◼ Increase in Adjustments due to investments to trigger growth
◼ Cost/Income ratio at 50.2% (vs 51.8% in FY19 proforma)
◼ 3,007 headcount reduction

Net Adjustments to Loans: Yearly Decline when Excluding Provisions for Future COVID-19 Impacts

Data excluding UBI Banca

◼ Twentieth consecutive quarterly reduction in gross NPL stock, at no cost to shareholders
◼ 3Q20, the lowest quarter ever for gross NPL inflow(1)
◼ €1bn(1) gross NPL deleveraging in Q3

◼ Down 3.9% when excluding provisions for future COVID-19 impacts

◼ Annualised cost of credit down to 44bps (vs 53bps in FY19) when excluding provisions for future COVID-19 impacts
◼ Lowest-ever 9M NPL inflow(1)
◼ €3.7bn(1) gross NPL deleveraging on a yearly basis (€36.5bn(1) since the peak of 30.9.15, of which €2.7bn(1) in 9M20)

(1) Excluding the impact from the adoption of the new Definition of Default (DoD) since November 2019 and UBI Banca

Detailed Consolidated P&L Results

Liquidity, Funding and Capital Base

Asset Quality

Divisional Results and Other Information

Strong Growth in Customer Financial Assets

Note: figures may not add up exactly due to rounding

(1) Net of duplications between Direct Deposits and Indirect Customer Deposits

54 (2) Not considering the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities

Mutual Funds Mix

Data excluding UBI Banca

MIL-BVA327-15051trim.13-90141/LR

Funding Mix

Retail funding represents 82% of Direct deposits from banking business

Note: figures may not add up exactly due to rounding

(1) 38% placed with Private Banking clients
(2) Certificates of deposit + Commercial papers
(3) Including Certificates

Strong Funding Capability: Broad Access to International Markets

Data excluding UBI Banca

ISP Main Wholesale Issues

2019

◼ €1bn covered bonds, JPY13.2bn (~€105m) senior unsecured, €3.5bn senior unsecured, CHF250m senior unsecured, \$2bn senior unsecured and €750m green bond placed. On average 94% demand from foreign investors; orderbooks average oversubscription ~2.4x
- ❑ February: €1bn covered bonds backed by residential mortgages
- ❑ March: second senior unsecured Tokyo Pro-Bond transaction for a total of JPY13.2bn (~€105m) split between 3y and 15y tranches
- ❑ June: €2.25bn dual tranche 5/10y senior unsecured issue
- ❑ September: inaugural CHF250m 5y senior unsecured issue and \$2bn triple-tranche senior unsecured issue split between \$750m 5y, \$750m 10y and \$500m 30y
- ❑ November: €1.25bn 7y senior unsecured issue and €750m 5y senior unsecured green bond focused on the Circular Economy, under the ISP Sustainability Bond Framework

2020

◼ GBP350m senior unsecured, €3bn AT1 and €1.25bn senior unsecured placed. On average 85% demand from foreign investors; orderbooks average oversubscription ~3.5x
- ❑ January: GBP350m 10y senior unsecured issue, first GBP transaction by an Italian bank since 2010
- ❑ February: €1.5bn dual-tranche 5/10y Additional Tier 1 issue, first ever dual-tranche AT1 in the Euro market
- ❑ May: €1.25bn 5y senior unsecured issue, first Italian bank transaction since the COVID-19 outbreak
- ❑ August: €1.5bn dual-tranche 7.5/11y Additional Tier 1 issue, second ISP issue of this kind this year

High Liquidity: LCR and NSFR Well Above Regulatory Requirements

Data excluding UBI Banca

◼ Refinancing operations with the ECB: €82.9bn (of which ISP: €70.9bn(3) and UBI Banca: €12bn(4))

◼ Loan to Deposit ratio(5) at 90% (89% including UBI Banca(6))

(3) Consisting entirely of TLTRO III, out of a maximum allowance of €90.2bn

(4) Consisting entirely of TLTRO III, out of a maximum allowance of €25.6bn, not considering the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities

(5) Loans to Customers/Direct Deposits from Banking Business

⁽¹⁾ Stock of own-account eligible assets (including assets used as collateral and excluding eligible assets received as collateral) and cash & deposits with Central Banks

⁽²⁾ Eligible assets freely available (excluding assets used as collateral and including eligible assets received as collateral) and cash & deposits with Central Banks

⁽⁶⁾ Not considering the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities

Solid and Increased Capital Base

◼ 15.2%(2) pro-forma fully loaded Common Equity ratio ◼ 6.6%(3) leverage ratio

(1) After the deduction of accrued dividends, assumed equal to 75% of the Net income for the period (excluding the portion generated by the negative goodwill), and coupons accrued on the Additional Tier 1 issues

BPER Banca of a portion of branches and related assets and liabilities and the expected distribution of 9M20 Net income of insurance companies). 15.9% excluding the impact from UBI Banca combination

(3) Including UBI Banca, not considering the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities

Detailed Consolidated P&L Results

Liquidity, Funding and Capital Base

Asset Quality

Divisional Results and Other Information

Non-performing Loans: Sizeable Coverage

(1) Bad Loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past Due (Scaduti e sconfinanti)

(2) Not considering the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities

MIL-BVA327-15051trim.13-90141/LR

Non-performing Loans: Lowest-ever 9M Inflows

Data excluding UBI Banca

(1) Bad Loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past Due (Scaduti e sconfinanti)

(2) 2012 figures recalculated to take into consideration the regulatory changes to Past Due classification criteria introduced by the Bank of Italy (90 days since 2012 vs 180 days up until 31.12.11)

(3) Excluding ~€0.4bn impact from the adoption of the new Definition of Default (DoD) since November 2019

Non-performing Loans: 3Q20, Lowest-ever Gross Inflow

Note: figures may not add up exactly due to rounding

(1) Bad Loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past Due (Scaduti e sconfinanti)

(2) Excluding €183m impact from the adoption of the new Definition of Default (DoD) since November 2019

(3) Excluding €77m impact from the adoption of the new Definition of Default (DoD) since November 2019

(4) Excluding €5m impact from the adoption of the new Definition of Default (DoD) since November 2019

(5) Excluding €3m impact from the adoption of the new Definition of Default (DoD) since November 2019

(6) Excluding €178m impact from the adoption of the new Definition of Default (DoD) since November 2019

(7) Excluding €74m impact from the adoption of the new Definition of Default (DoD) since November 2019

MIL-BVA327-15051trim.13-90141/LR

Non-performing Loans: Strong Decrease in Net Inflow

Note: figures may not add up exactly due to rounding

(1) Bad Loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past Due (Scaduti e sconfinanti)

(2) Excluding €183m impact from the adoption of the new Definition of Default (DoD) since November 2019

(3) Excluding €77m impact from the adoption of the new Definition of Default (DoD) since November 2019

(4) Excluding €5m impact from the adoption of the new Definition of Default (DoD) since November 2019

(5) Excluding €3m impact from the adoption of the new Definition of Default (DoD) since November 2019

(6) Excluding €178m impact from the adoption of the new Definition of Default (DoD) since November 2019

(7) Excluding €74m impact from the adoption of the new Definition of Default (DoD) since November 2019

New Bad Loans: Strong Decrease in Gross Inflow vs 3Q19

€ bn; data excluding UBI Banca

BdT new Bad Loans(1) gross inflow

	3Q19	2Q20	3Q20
Total	0.3	0.1	0.2
Households	0.1	-	0.1
SMEs	0.2	0.1	0.1

IMI C&IB new Bad Loans(1) gross inflow

	3Q19	2Q20	3Q20
Total	-	-	-
Global Corporate	-	-	-
International	-	-	-
Financial Institutions	-	-	-

MIL-BVA327-15051trim.13-90141/LR

New Unlikely to Pay: Strong Decrease in Gross Inflow

€ bn; data excluding UBI Banca

	3Q19	2Q20	3Q20
Total	0.8	0.6	0.4
Households	0.2	0.3	0.2
SMEs	0.6	0.3	0.2

BdT gross inflow of new Unlikely to Pay IMI C&IB gross inflow of new Unlikely to Pay

	3Q19	2Q20	3Q20
Total	0.1	-	0.1
Global Corporate	0.1	-	0.1
International	-	-	-
Financial Institutions	-	-	-

Non-performing Loans: Twentieth Consecutive Quarterly Decline in Gross Stock

E-MARKET SDIR CERTIFIED

		Gross NPL					Net NPL
€ bn	31.12.19	30.6.20	30.9.20 excluding UBI Banca	30.9.20 including UBI Banca(1)	€ bn	31.12.19	30.6.20	30.9.20 excluding UBI Banca	30.9.20 including UBI Banca(1)
Bad Loans - of which forborne	19.4 2.7	17.6 2.3	17.0 2.3	20.4 3.2	Bad Loans - of which forborne	6.7 1.1	6.4 1.0	6.1 0.9	7.7 1.4
Unlikely to pay - of which forborne	11.0 4.4	11.1 4.3	11.0 4.3	14.2 6.3	Unlikely to pay - of which forborne	6.7 2.9	6.6 2.8	6.3 2.8	8.5 4.2
Past Due - of which forborne	0.9 0.1	1.2 0.1	0.9 0.1	1.0 0.1	Past Due - of which forborne	0.7 0.1	1.0 0.1	0.7 -	0.8 0.1
Total	31.3	29.9	29.0	35.6	Total	14.2	14.0	13.2	17.0 Excluding additional provisions to accelerate deleveraging

to be booked in Q4 using part of the negative goodwill

€36.5bn(2) NPL deleveraging since the peak of 30.9.15 (€3.7bn(2) since 30.9.19, of which €2.7bn(2) in 9M), leading to the lowest NPL stock and NPL ratios since 2008

Note: figures may not add up exactly due to rounding

(1) Not considering the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities

(2) Excluding the impact from the adoption of the new Definition of Default (DoD) since November 2019 and UBI Banca

Loans to Customers: A Well-diversified Portfolio

Data excluding UBI Banca

Breakdown by business area (data as at 30.9.20)

◼ Low risk profile of residential mortgage portfolio

❑ Instalment/available income ratio at 31%
❑ Average Loan-to-Value equal to 58%
❑ Original average maturity equal to ~23 years
❑ Residual average life equal to ~19 years

Breakdown by economic business sector

	30.9.20
Loans of the Italian banks and companies of the Group
Households	28.8%
Public Administration Financial companies	1.8% 7.8%
Non-financial companies	35.7%
of which:
SERVICES	7.3%
DISTRIBUTION	6.0%
REAL ESTATE	3.2%
CONSTRUCTION	2.0%
UTILITIES	1.9%
TRANSPORTATION MEANS	1.9%
METALS AND METAL PRODUCTS	1.8%
TRANSPORT	1.6%
AGRICULTURE	1.5%
FOOD AND DRINK	1.4%
MECHANICAL	1.2%
FASHION	1.1%
INTERMEDIATE INDUSTRIAL PRODUCTS	1.0%
ELECTROTECHNICAL AND ELECTRONIC	0.7%
HOLDING AND OTHER	0.4%
BASE AND INTERMEDIATE CHEMICALS	0.4%
MATERIALS FOR CONSTRUCTION	0.3%
INFRASTRUCTURE	0.3%
ENERGY AND EXTRACTION	0.3%
PHARMACEUTICAL	0.3%
FURNITURE	0.3%
PUBLISHING AND PRINTING	0.2%
NON-CLASSIFIED UNITS	0.2%
OTHER CONSUMPTION GOODS	0.2%
MASS CONSUMPTION GOODS	0.1%
WHITE GOODS	0.1%
Rest of the world	11.1%
Loans of international banks and companies of the Group	11.6%
Non-performing loans	3.3%
TOTAL	100.0%

Moratoria Volumes: Enterprises Accounting for ~73%

Data excluding UBI Banca

(1) Not considering the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities

Detailed Consolidated P&L Results

Liquidity, Funding and Capital Base

Asset Quality

Divisional Results and Other Information

Divisional Financial Highlights

Data as at 30.9.20, excluding UBI Banca

	Divisions
	Banca dei Territori	IMI Corporate & Investment Banking	International Subsidiary Banks(1)	Private Banking(2)	Asset Management(3)	Insurance (4)	Corporate Centre / (5) Others	Total
Operating Income (€ m)	5,991	3,456	1,413	1,435	549	956	(642)	13,158
Operating Margin (€ m)	2,279	2,658	690	992	439	786	(1,285)	6,559
Net Income (€ m)	253	1,538	378	643	326	473	(538)	3,073
Cost/Income (%)	62.0	23.1	51.2	30.9	20.0	17.8	n.m.	50.2
RWA (€ bn)	80.1	99.0	32.5	9.4	1.4	0.0	63.3	285.8
Direct Deposits from Banking Business (€ bn)	221.9	89.9	44.8	40.8	0.0	0.0	51.6	449.0
Loans to Customers (€ bn)	207.3	134.5	35.3	9.4	0.3	0.0	17.2	403.9

Note: figures may not add up exactly due to rounding

(1) Excluding the Russian subsidiary Banca Intesa which is included in IMI C&IB

(2) Fideuram, Intesa Sanpaolo Private Banking, Intesa Sanpaolo Private Bank (Suisse) Morval, and Siref Fiduciaria

(3) Eurizon

(4) Fideuram Vita, Intesa Sanpaolo Assicura, Intesa Sanpaolo Life, Intesa Sanpaolo RBM Salute and Intesa Sanpaolo Vita

(5) Treasury Department, Central Structures and consolidation adjustments

Banca dei Territori: 9M20 vs 9M19

€ m	9M19	9M20	%
	pro-forma(1)
Net interest income	3,099	3,069	(1.0)
Net fee and commission income	3,111	2,860	(8.1)
Income from insurance business	2	0	(100.0)
Profits on financial assets and liabilities at fair value	61	71	16.4
Other operating income (expenses)	(3)	(9)	(200.0)
Operating income	6,270	5,991	(4.4)
Personnel expenses	(2,334)	(2,200)	(5.7)
Other administrative expenses	(1,553)	(1,509)	(2.8)
Adjustments to property, equipment and intangible assets	(6)	(3)	(50.0)
Operating costs	(3,893)	(3,712)	(4.6)
Operating margin	2,377	2,279	(4.1)	9M20 including
Net adjustments to loans	(1,093)	(1,877)	71.7	€787m in provisions
Net provisions and net impairment losses on other assets	(34)	(43)	26.5	for future COVID-19 impacts
Other income (expenses)	0	30	n.m.
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	1,250	389	(68.9)
Taxes on income	(456)	(128)	(71.9)
Charges (net of tax) for integration and exit incentives	(15)	(8)	(46.7)
Effect of purchase price allocation (net of tax)	(1)	0	n.m.
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	0	0	n.m.
Net income	778	253	(67.5)

€787m in provisions for future COVID-19

⁽¹⁾ Data restated for the full line-by-line deconsolidation of the acquiring activities related to the Nexi agreement, the merger of Mediocredito Italiano into ISP, the attribution of the ex Capital Light data and some Operating costs from the Corporate Centre to the pertaining Divisions and to take into account the effects on Operating costs of the Prelios agreement related to UTP servicing

Note: figures may not add up exactly due to rounding

Banca dei Territori: Q3 vs Q2

	2Q20	3Q20	%
Net interest income	1,014	1,009	(0.5)
Net fee and commission income	887	983	10.8
Income from insurance business	(0)	(0)	(64.1)
Profits on financial assets and liabilities at fair value	21	31	48.2
Other operating income (expenses)	(1)	(7)	(400.2)
Operating income	1,921	2,016	5.0
Personnel expenses	(745)	(718)	(3.7)
Other administrative expenses	(502)	(509)	1.3
Adjustments to property, equipment and intangible assets	(1)	(1)	(13.1)
Operating costs	(1,248)	(1,227)	(1.7)
Operating margin	672	789	17.3	Q3 including €202m in
Net adjustments to loans	(997)	(514)	(48.5)	provisions for future COVID-19 impacts
Net provisions and net impairment losses on other assets	(14)	(12)	(17.7)	(€585m in Q2)
Other income (expenses)	0	30	n.m.
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	(339)	293	n.m.
Taxes on income	118	(94)	n.m.
Charges (net of tax) for integration and exit incentives	(2)	(4)	135.9
Effect of purchase price allocation (net of tax)	0	0	n.m.
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	0	0	n.m.
Net income	(223)	195	n.m.

IMI Corporate & Investment Banking: 9M20 vs 9M19

	9M19	9M20	%
	pro-forma(1)
Net interest income	1,380	1,600	15.9
Net fee and commission income	688	728	5.8
Income from insurance business	0	0	n.m.
Profits on financial assets and liabilities at fair value	1,036	1,120	8.1
Other operating income (expenses)	2	8	300.0
Operating income	3,106	3,456	11.3
Personnel expenses	(304)	(302)	(0.7)
Other administrative expenses	(508)	(480)	(5.5)
Adjustments to property, equipment and intangible assets	(17)	(16)	(5.9)
Operating costs	(829)	(798)	(3.7)
Operating margin	2,277	2,658	16.7	9M20 including
Net adjustments to loans	(177)	(308)	74.0	€267m in provisions for future COVID-19
Net provisions and net impairment losses on other assets	(13)	(42)	223.1	impacts
Other income (expenses)	3	0	(100.0)
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	2,090	2,308	10.4
Taxes on income	(677)	(760)	12.3
Charges (net of tax) for integration and exit incentives	(4)	(10)	150.0
Effect of purchase price allocation (net of tax)	0	0	n.m.
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	0	0	n.m.
Net income	1,409	1,538	9.2

Note: figures may not add up exactly due to rounding

(1) Data restated for the merger of Mediocredito Italiano into ISP, the attribution of the ex Capital Light data and some Operating costs from the Corporate Centre to the pertaining Divisions and to take into account the effects on Operating costs of the Prelios agreement related to UTP servicing

IMI Corporate & Investment Banking: Q3 vs Q2

€ m

	2Q20	3Q20	%
Net interest income	533	570	6.9
Net fee and commission income	249	240	(3.6)
Income from insurance business	0	0	n.m.
Profits on financial assets and liabilities at fair value	172	51	(70.3)
Other operating income (expenses)	7	2	(76.6)
Operating income	960	862	(10.2)
Personnel expenses	(106)	(100)	(5.3)
Other administrative expenses	(156)	(161)	3.2
Adjustments to property, equipment and intangible assets	(6)	(5)	(21.0)
Operating costs	(268)	(266)	(0.7)
Operating margin	693	597	(13.9)
Net adjustments to loans	(232)	(72)	(69.2)
Net provisions and net impairment losses on other assets	(5)	(43)	785.5
Other income (expenses)	0	0	n.m.
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	456	482	5.8
Taxes on income	(149)	(153)	2.8
Charges (net of tax) for integration and exit incentives	(3)	(5)	36.2
Effect of purchase price allocation (net of tax)	0	0	n.m.
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	0	0	n.m.
Net income	303	324	6.9

Q3 including €36m in provisions for future COVID-19 impacts (€231m in Q2)

International Subsidiary Banks: 9M20 vs 9M19

	9M19	9M20	%

Net interest income	1,030	981	(4.8)
Net fee and commission income	397	368	(7.3)
Income from insurance business	0	0	n.m.
Profits on financial assets and liabilities at fair value	85	89	4.7
Other operating income (expenses)	(27)	(25)	(7.4)
Operating income	1,485	1,413	(4.8)
Personnel expenses	(398)	(393)	(1.3)
Other administrative expenses	(246)	(248)	0.8
Adjustments to property, equipment and intangible assets	(78)	(82)	5.1
Operating costs	(722)	(723)	0.1
Operating margin	763	690	(9.6)
Net adjustments to loans	(36)	(173)	380.6
Net provisions and net impairment losses on other assets	0	(2)	n.m.
Other income (expenses)	5	6	20.0
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	732	521	(28.8)
Taxes on income	(141)	(114)	(19.1)
Charges (net of tax) for integration and exit incentives	(27)	(29)	7.4
Effect of purchase price allocation (net of tax)	0	0	n.m.
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	0	0	n.m.
Net income	564	378	(33.0)

9M20 including €60m in provisions for future COVID-19 impacts

Note: figures may not add up exactly due to rounding. Excluding the Russian subsidiary Banca Intesa which is included in IMI C&IB

International Subsidiary Banks: Q3 vs Q2

€ m

	2Q20	3Q20	%
Net interest income	322	328	2.0
Net fee and commission income	116	128	10.6
Income from insurance business	0	0	n.m.
Profits on financial assets and liabilities at fair value	44	27	(37.9)
Other operating income (expenses)	(11)	(9)	15.9
Operating income	471	475	0.9
Personnel expenses	(130)	(132)	1.4
Other administrative expenses	(85)	(83)	(2.4)
Adjustments to property, equipment and intangible assets	(27)	(28)	1.9
Operating costs	(242)	(242)	0.1
Operating margin	229	233	1.6
Net adjustments to loans	(103)	(48)	(53.4)
Net provisions and net impairment losses on other assets	14	(2)	n.m.
Other income (expenses)	0	0	(75.5)
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	141	183	30.0
Taxes on income	(30)	(39)	31.1
Charges (net of tax) for integration and exit incentives	(9)	(11)	14.0
Effect of purchase price allocation (net of tax)	0	0	n.m.
Levies and other charges concerning the banking industry (net of tax)	(0)	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	0	0	n.m.
Net income	102	133	31.2

Q2 including €60m in provisions for future COVID-19 impacts

Private Banking: 9M20 vs 9M19

€ m

	9M19	9M20	%

Net interest income	132	154	16.7
Net fee and commission income	1,276	1,260	(1.3)
Income from insurance business	0	0	n.m.
Profits on financial assets and liabilities at fair value	33	16	(51.5)
Other operating income (expenses)	3	5	66.7
Operating income	1,444	1,435	(0.6)
Personnel expenses	(260)	(256)	(1.5)
Other administrative expenses	(147)	(144)	(2.0)
Adjustments to property, equipment and intangible assets	(42)	(43)	2.4
Operating costs	(449)	(443)	(1.3)
Operating margin	995	992	(0.3)	9M20 including €6m
Net adjustments to loans	0	(15)	n.m.	in provisions for future COVID-19 impacts
Net provisions and net impairment losses on other assets	(38)	(34)	(10.5)
Other income (expenses)	9	6	(33.3)
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	966	949	(1.8)
Taxes on income	(280)	(295)	5.4
Charges (net of tax) for integration and exit incentives	(14)	(11)	(21.4)
Effect of purchase price allocation (net of tax)	(1)	(1)	0.0
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	0	1	n.m.
Net income	671	643	(4.2)

Private Banking: Q3 vs Q2

€ m

	2Q20	3Q20	%
Net interest income	54	52	(3.5)
Net fee and commission income	414	420	1.5
Income from insurance business	0	0	n.m.
Profits on financial assets and liabilities at fair value	9	5	(44.9)
Other operating income (expenses)	1	3	107.1
Operating income	478	479	0.4
Personnel expenses	(87)	(91)	3.9
Other administrative expenses	(48)	(47)	(3.9)
Adjustments to property, equipment and intangible assets	(15)	(14)	(2.5)
Operating costs	(150)	(151)	0.7
Operating margin	327	328	0.2
Net adjustments to loans	(16)	4	n.m.
Net provisions and net impairment losses on other assets	(16)	(12)	(23.8)
Other income (expenses)	0	(1)	n.m.
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	296	319	7.8
Taxes on income	(92)	(99)	7.8
Charges (net of tax) for integration and exit incentives	(3)	(4)	17.0
Effect of purchase price allocation (net of tax)	(0)	(0)	n.m.
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	0	0	0.0
Net income	200	216	7.7

Q2 including €6m in provisions for future COVID-19 impacts

Asset Management: 9M20 vs 9M19

	9M19	9M20	%
Net interest income	0	0	n.m.
Net fee and commission income	527	528	0.2
Income from insurance business	0	0	n.m.
Profits on financial assets and liabilities at fair value	5	(2)	n.m.
Other operating income (expenses)	26	23	(11.5)
Operating income	558	549	(1.6)
Personnel expenses	(55)	(57)	3.6
Other administrative expenses	(49)	(49)	0.0
Adjustments to property, equipment and intangible assets	(4)	(4)	0.0
Operating costs	(108)	(110)	1.9
Operating margin	450	439	(2.4)
Net adjustments to loans	0	0	n.m.
Net provisions and net impairment losses on other assets	0	0	n.m.
Other income (expenses)	0	0	n.m.
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	450	439	(2.4)
Taxes on income	(106)	(112)	5.7
Charges (net of tax) for integration and exit incentives	0	0	n.m.
Effect of purchase price allocation (net of tax)	0	0	n.m.
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	0	(1)	n.m.
Net income	344	326	(5.2)

Asset Management: Q3 vs Q2

€ m

	2Q20	3Q20	%

Net interest income	(0)	(0)	4.8
Net fee and commission income	169	185	9.3
Income from insurance business	0	0	n.m.
Profits on financial assets and liabilities at fair value	8	2	(74.0)
Other operating income (expenses)	10	8	(24.1)
Operating income	186	194	4.1
Personnel expenses	(19)	(22)	14.4
Other administrative expenses	(16)	(16)	(2.0)
Adjustments to property, equipment and intangible assets	(1)	(1)	(0.9)
Operating costs	(37)	(39)	6.6
Operating margin	150	155	3.5
Net adjustments to loans	0	(0)	n.m.
Net provisions and net impairment losses on other assets	0	0	76.7
Other income (expenses)	0	0	n.m.
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	150	155	3.4
Taxes on income	(38)	(40)	4.3
Charges (net of tax) for integration and exit incentives	(0)	(0)	0.0
Effect of purchase price allocation (net of tax)	0	0	n.m.
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	(0)	(0)	(16.0)
Net income	111	115	3.1

Insurance: 9M20 vs 9M19

	9M19	9M20	%
	pro-forma(1)
Net interest income	0	0	n.m.
Net fee and commission income	0	1	n.m.
Income from insurance business	917	962	4.9
Profits on financial assets and liabilities at fair value	0	0	n.m.
Other operating income (expenses)	(8)	(7)	(12.5)
Operating income	909	956	5.2
Personnel expenses	(68)	(72)	5.9
Other administrative expenses	(85)	(87) (11)	2.4 37.5
Adjustments to property, equipment and intangible assets	(8)
Operating costs	(161)	(170)	5.6
Operating margin	748	786	5.1
Net adjustments to loans	0	0	n.m.
Net provisions and net impairment losses on other assets	(1)	(16)	n.m.
Other income (expenses)	0	0	n.m.
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	747	770	3.1
Taxes on income	(200)	(216)	8.0
Charges (net of tax) for integration and exit incentives	(1)	(11)	n.m.
Effect of purchase price allocation (net of tax)	(12)	(14)	16.7
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	(39)	(56)	43.6
Net income	495	473	(4.4)

Note: figures may not add up exactly due to rounding

(1) Data restated to take into account the effects of the RBM Assicurazione Salute acquisition

Insurance: Q3 vs Q2

€ m

	2Q20	3Q20	%

Net interest income	0	(0)	n.m.
Net fee and commission income	0	0	(2.1)
Income from insurance business	332	288	(13.2)
Profits on financial assets and liabilities at fair value	0	0	n.m.
Other operating income (expenses)	(2)	(3)	(22.6)
Operating income	330	286	(13.4)
Personnel expenses	(26)	(24)	(7.2)
Other administrative expenses	(30)	(33)	11.2
Adjustments to property, equipment and intangible assets	(4)	(4)	(1.1)
Operating costs	(60)	(61)	2.4
Operating margin	270	224	(16.9)
Net adjustments to loans	0	0	n.m.
Net provisions and net impairment losses on other assets	(2)	(7)	205.7
Other income (expenses)	0	0	n.m.
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	268	217	(18.9)
Taxes on income	(73)	(61)	(16.6)
Charges (net of tax) for integration and exit incentives	(7)	(2)	(67.1)
Effect of purchase price allocation (net of tax)	(3)	(6)	57.5
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	(17)	(2)	(86.2)
Net income	167	146	(12.7)

MIL-BVA327-15051trim.13-90141/LR

Quarterly P&L

Data excluding UBI Banca € m

	1Q19	2Q19	3Q19	4Q19	1Q20	2Q20	3Q20
		pro-forma(1)
Net interest income	1,756	1,761	1,741	1,747	pro-forma(2) 1,747	1,750	1,818
Net fee and commission income	1,865	1,965	1,966	2,166	1,844	1,744	1,861
Income from insurance business	323	304	321	320	369	367	295
Profits on financial assets and liabilities at fair value	458	634	480	356	994	263	121
Other operating income (expenses)	(1)	10	5	(10)	(15)	12	(12)
Operating income	4,401	4,674	4,513	4,579	4,939	4,136	4,083
Personnel expenses	(1,388)	(1,419)	(1,422)	(1,519)	(1,356)	(1,380)	(1,358)
Other administrative expenses	(587)	(625)	(637)	(752)	(553)	(583)	(570)
Adjustments to property, equipment and intangible assets	(260)	(252)	(261)	(285)	(264)	(267)	(268)
Operating costs	(2,235)	(2,296)	(2,320)	(2,556)	(2,173)	(2,230)	(2,196)
Operating margin	2,166	2,378	2,193	2,023	2,766	1,906	1,887
Net adjustments to loans	(369)	(554)	(473)	(693)	(403)	(3) (1,398)	(5) (853)
Net provisions and net impairment losses on other assets	(30)	(37)	(19)	(168)	(419)	(4) 262	(60)
Other income (expenses)	6	1	(2)	50	3	(21)	23
Income (Loss) from discontinued operations	19	22	22	25	29	1,134	0
Gross income (loss)	1,792	1,810	1,721	1,237	1,976	1,883	997
Taxes on income	(535)	(446)	(532)	(312)	(561)	(313)	(289)
Charges (net of tax) for integration and exit incentives	(22)	(30)	(27)	(27)	(15)	(35)	(27)
Effect of purchase price allocation (net of tax)	(40)	(28)	(37)	(12)	(26)	(24)	(27)
Levies and other charges concerning the banking industry (net of tax)	(146)	(96)	(96)	(22)	(191)	(86)	(148)
Impairment (net of tax) of goodwill and other intangible assets	0	0	0	0	0	0	0
Minority interests	1	6	15	8	(32)	(10)	1
Net income	1,050	1,216	1,044	872	1,151	1,415	507

Note: figures may not add up exactly due to rounding

(2) Data restated to take into account the effects of the RBM Assicurazione Salute acquisition
(3) Including €882m in provisions for future COVID-19 impacts
(4) Including the write-back of ~€300m in provisions for future COVID-19 impacts booked in 1Q20
(5) Including €430m in provisions for future COVID-19 impacts

⁽¹⁾ Data restated for the full line-by-line deconsolidation of the acquiring activities related to the Nexi agreement and to take into account the effects on Operating costs of the Prelios agreement related to UTP servicing and the RBM Assicurazione Salute acquisition

Net Fee and Commission Income: Quarterly Development Breakdown

Data excluding UBI Banca

€ m

Net Fee and Commission Income
	1Q19	2Q19	3Q19	4Q19	1Q20	2Q20	3Q20
		pro-forma(1)
Guarantees given / received	55	56	58	60		50 49	48
Collection and payment services	119	128	123	137	114	103	106
Current accounts	308	306	304	304	293	295	299
Credit and debit cards	74	80	89	82		63 68	83
Commercial banking activities	556	570	574	583	520	515	536
Dealing and placement of securities	180	195	190	199	185	168	185
Currency dealing	3	2	3	2		3 3	3
Portfolio management	542	561	571	697	550	516	548
Distribution of insurance products	326	361	363	391	344	333	364
Other	62	65	69	68		62 50	63
Management, dealing and consultancy activities	1,113	1,184	1,196	1,357	1,144	1,070	1,163
Other net fee and commission income	196	211	196	226	180	159	162
Net fee and commission income	1,865	1,965	1,966	2,166	1,844	1,744	1,861

Note: figures may not add up exactly due to rounding

(1) Data restated for the full line-by-line deconsolidation of the acquiring activities related to the Nexi agreement

Market Leadership in Italy

Note: figures may not add up exactly due to rounding

(1) Excluding Corporate Centre

(2) Data as at 30.9.20, considering the impact from the disposal to BPER Banca of a portion of branches and related assets and liabilities

(3) Including bonds

(4) Data as at 30.6.20

(5) Mutual funds; data as at 30.6.20

International Subsidiary Banks: Key P&L Data by Country

Data as at 30.9.20, excluding UBI Banca (Δ% vs 9M19)

Operating Margin

Gross Income

(14.3) (35.6) (23.5) (14.2) (35.9) (28.9) (60.8) (50.5) (71.5) (71.1) n.m.

180 167 119 48 ¹⁸ ¹⁶ ¹² ¹⁰ ¹ 156 (23.3) (5.0) (0.1) (6.9) +43.4 (21.2) (10.8) (26.2) (31.7) (10.2) (55.7)

Note: excluding the Russian subsidiary Banca Intesa which is included in IMI C&IB

International Subsidiary Banks by Country: 8.7% of the Group's Total Loans

Data as at 30.9.20, excluding UBI Banca

Total Loans
Data as at 30.9.20, excluding UBI Banca
											Total		Total
	Hungary	Slovakia	Slovenia	Croatia	Bosnia	Serbia	Albania	Romania	Moldova	Ukraine	CEE	Egypt
Oper. Income (€ m)	127	332	5 0	318	3 2	193	2 8	3 1	7	1 1	1,129	269	1,398
% of Group total	1.0%	2.5%	0.4%	2.4%	0.2%	1.5%	0.2%	0.2%	0.1%	0.1%	8.6%	2.0%	10.6%
Net income (€ m)	9	5 4	6	8 5	6	6 7	8	4	1	(3)	237	106	343
% of Group total	0.3%	1.7%	0.2%	2.8%	0.2%	2.2%	0.3%	0.1%	0.0%	n.m.	7.7%	3.5%	11.1%
Customer Deposits (€ bn)	4.1	16.2	2.4	9.6	0.8	4.4	1.3	0.9	0.2	0.1	39.9	4.6	44.5
% of Group total	0.9%	3.6%	0.5%	2.1%	0.2%	1.0%	0.3%	0.2%	0.0%	0.0%	8.9%	1.0%	9.9%
Customer Loans (€ bn)	3.1	15.0	1.9	7.1	0.8	3.7	0.4	0.8	0.1	0.1	32.8	2.5	35.3
% of Group total	0.8%	3.7%	0.5%	1.8%	0.2%	0.9%	0.1%	0.2%	0.0%	0.0%	8.1%	0.6%	8.7%
Total Assets (€ bn)	6.0	18.8	2.9	12.4	1.2	6.0	1.5	1.3	0.2	0.2	50.5	5.7	56.2
% of Group total	0.7%	2.2%	0.3%	1.4%	0.1%	0.7%	0.2%	0.2%	0.0%	0.0%	5.8%	0.7%	6.5%
Book value (€ m) - intangibles	658 30	1,593 121	305 6	1,742 22	161 2	916 44	185 4	185 3	3 4 2	5 3 2	5,832 236	549 7	6,381 243

Note: figures may not add up exactly due to rounding. Excluding the Russian subsidiary Banca Intesa which is included in IMI C&IB

International Subsidiary Banks by Country: Loan Breakdown and Coverage

Data as at 30.9.20, excluding UBI Banca

											Total		Total
	Hungary	Slovakia	Slovenia	Croatia	Bosnia	Serbia	Albania	Romania	Moldova	Ukraine	CEE	Egypt
Performing loans (€ bn) of which:	3.0	14.8	1.9	6.9	0.8	3.6	0.4	0.8	0.1	0.1	32.2	2.5	34.7
Retail local currency	44%	61%	42%	33%	33%	23%	22%	12%	60%	26%	46%	56%	47%
Retail foreign currency	0%	0%	0%	19%	15%	29%	14%	18%	1%	1%	8%	0%	8%
Corporate local currency	24%	35%	58%	24%	11%	6%	15%	37%	16%	40%	29%	28%	29%
Corporate foreign currency	32%	4%	0%	24%	41%	42%	49%	33%	24%	32%	17%	15%	17%
Bad loans(1) (€ m)	14	107	1	52	5	18	4	13	1	0	215	1	216
Unlikely to pay(2) (€ m)	45	74	21	147	9	14	6	14	1	0	331	48	379
Performing loans coverage	1.5%	0.7%	1.0%	1.6%	2.1%	2.0%	1.4%	2.2%	4.1%	1.4%	1.2%	1.5%	1.2%
Bad loans(1) coverage	68%	62%	94%	79%	69%	71%	60%	57%	n.m.	n.m.	70%	97%	71%
Unlikely to pay(2) coverage	47%	44%	48%	42%	44%	50%	33%	36%	50%	n.m.	44%	45%	44%
Annualised cost of credit(3) (bps)	65	47	56	102	129	92	n.m.	69	65	178	68	32	65

Note: figures may not add up exactly due to rounding. Excluding the Russian subsidiary Banca Intesa which is included in IMI C&IB

(1) Sofferenze

(2) Including Past due

(3) Net adjustments to loans/Net customer loans

MIL-BVA327-15051trim.13-90141/LR Common Equity Ratio as at 30.9.20: from Phased-in to Pro-forma Fully Loaded

	~€ bn	~bps
Direct-deduction relevant items
DTA on losses carried forward(1) IFRS9 transitional adjustment	1.6 (2.1)	48 (61)
Total	(0.5)	(13)
Cap relevant items(*)(2)
Total	0.0	19
(*) as a memo, constituents of deductions subject to cap: - Other DTA(3)	1.5
- Investments in banking and financial companies	2.4
RWA from 100% weighted DTA(4)	(10.0)	44
Total estimated impact		51
Pro-forma fully loaded Common Equity ratio		15.2%

Note: figures may not add up exactly due to rounding

⁽¹⁾ Considering the expected absorption of DTA on losses carried forward (€1.8bn as at 30.9.20)

⁽²⁾ Following the application of the Danish Compromise, insurance investments are risk weighted instead of being deducted from capital. In the amount of insurance investments, the expected distribution of 9M20 Net income of insurance companies is considered, which for the sake of simplicity is left included in the benefit allocated to this caption

⁽³⁾ Other DTA: mostly related to provisions for risks and charges, considering the total absorption of DTA related to IFSR9 FTA (€1.3bn as at 30.9.20) and DTA related to the non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of operations of the two former Venetian banks (€0.3bn as at 30.9.20) and the sale of the going concern to BPER Banca due to the acquisition of UBI Banca (€0.4bn as at 30.9.20). DTA related to goodwill realignment and adjustments to loans are excluded due to their treatment as credits to tax authorities

⁽⁴⁾ Considering the total absorption of DTA convertible into tax credit related to goodwill realignment (€6.2bn as at 30.9.20) and adjustments to loans (€3.8bn as at 30.9.20)

Total Exposure(1) by Main Countries

Data excluding UBI Banca

				DEBT SECURITIES
			Banking Business		Insurance
	AC	FVTOCI	FVTPL(2)	Total	Business(3)	Total	LOANS
EU Countries	30,608	49,999	10,652	91,259	64,993	156,252	391,210
Austria	135	135	-89	181	4	185	1,040
Belgium	820	1,368	37	2,225	153	2,378	1,170
Bulgaria	0	0	14	14	93	107	24
Croatia	55	1,196	171	1,422	169	1,591	7,109
Cyprus	0	0	0	0	0	0	238
Czech Republic	134	0	0	134	0	134	520
Denmark	0	8	0	8	17	25	119
Estonia	0	0	0	0	0	0	4
Finland	0	105	26	131	36	167	283
France	2,901	5,050	92	8,043	2,814	10,857	8,314
Germany	1,135	2,996	-106	4,025	894	4,919	10,710
Greece	25	0	26	51	0	51	128
Hungary	164	935	7	1,106	36	1,142	2,917
Ireland	483	1,112	321	1,916	61	1,977	320
Italy	19,742	20,624	10,185	50,551	55,316	105,867	310,069
Latvia	0	0	0	0	0	0	33
Lithuania	0	0	15	15	0	15	1	€63.2bn including UBI Banca
Luxembourg	120	403	144	667	0	667	5,375
Malta	0	0	0	0	0	0	24
The Netherlands	199	1,021	198	1,418	696	2,114	2,810
Poland	38	112	13	163	29	192	836
Portugal	117	507	148	772	7	779	160
Romania	56	308	-3	361	262	623	844
Slovakia	0	976	105	1,081	0	1,081	13,202
Slovenia	1	212	25	238	0	238	1,829
Spain	4,122	12,395	-772	15,745	2,862	18,607	2,721
Sweden	0	182	48	230	19	249	267
United Kingdom	361	354	47	762	1,525	2,287	20,143
Albania	332	211	2	545	0	545	398
Egypt	0	1,735	2	1,737	56	1,793	2,784
Japan	0	1,967	723	2,690	90	2,780	725
Russia	0	90	6	96	46	142	5,345
Serbia	0	707	2	709	0	709	3,912
U.S.A.	1,405	5,901	158	7,464	2,719	10,183	6,136
Other Countries	1,084	4,160	385	5,629	2,971	8,600	20,998
Total	33,429	64,770	11,930	110,129	70,875	181,004	431,508

Note: management accounts. Figures may not add up exactly due to rounding

(1) Exposure to sovereign risks (central and local governments), banks and other customers. Book Value of Debt Securities and Net Loans as at 30.9.20

(2) Taking into account cash short positions

(3) Excluding securities in which money is collected through insurance policies where the total risk is retained by the insured

€129.2bn including UBI Banca

Exposure to Sovereign Risks(1) by Main Countries

Data excluding UBI Banca

€ m

				DEBT SECURITIES
			Banking Business		Insurance	Total	FVTOCI/AFS	LOANS
	AC		FVTOCI FVTPL(2)	Total	Business(3)		Reserve (4)
EU Countries	21,224	42,716	7,986	71,926	56,983	128,909	313	11,502
Austria	0	44	-90	-46	2	-44	0	0
Belgium	790	1,261	23	2,074	4	2,078	-11	0
Bulgaria	0	0	14	14	62	76	1	0
Croatia	0	1,196	171	1,367	158	1,525	4	1,211
Cyprus	0	0	0	0	0	0	0	0
Czech Republic	0	0	0	0	0	0	0	0
Denmark	0	0	0	0	0	0	0	0
Estonia	0	0	0	0	0	0	0	0
Finland	0	14	2	16	3	19	0	0
France	2,565	3,504	-49	6,020	1,098	7,118	-43	4
Germany	515	2,191	-195	2,511	293	2,804	-14	0
Greece	0	0	26	26	0	26	0	0
Hungary	6	935	7	948	36	984	4	116	Banking Business Government bond
Ireland	139	493	-2	630	58	688	-2	0	duration: 6.2y
									Adjusted duration due to hedging: 1.1y
Italy	13,178	18,692	8,483	40,353	53,000	93,353	434	9,795
Latvia	0	0	0	0	0	0	0	33
Lithuania	0	0	15	15	0	15	0	0	€51.9bn including UBI Banca
Luxembourg	0	0	3	3	0	3	0	0	Banking Business Government bond
Malta	0	0	0	0	0	0	0	0
The Netherlands	52	377	93	522	76	598	-1	0	duration: 6y
Poland	38	60	13	111	18	129	-1	0	Adjusted duration due to hedging: 1.2y
Portugal	85	490	113	688	0	688	-4	0
Romania	56	308	-3	361	262	623	-8	7
Slovakia	0	947	105	1,052	0	1,052	6	91
Slovenia	1	204	25	230	0	230	1	196
Spain	3,799	11,977	-811	14,965	1,813	16,778	-53	49
Sweden	0	23	46	69	0	69	0	0
United Kingdom	0	0	-3	-3	100	97	0	0
Albania	332	211	2	545	0	545	4	1
Egypt	0	1,735	2	1,737	56	1,793	-3	326
Japan	0	1,885	693	2,578	0	2,578	2	0
Russia	0	90	6	96	0	96	-4	0
Serbia	0	707	2	709	0	709	7	97
U.S.A.	921	4,723	-112	5,532	7	5,539	-49	0
Other Countries	975	2,262	226	3,463	1,212	4,675	-66	4,946
Total	23,452	54,329	8,805	86,586	58,258	144,844	204	16,872

Note: management accounts. Figures may not add up exactly due to rounding

(1) Exposure to central and local governments. Book Value of Debt Securities and Net Loans as at 30.9.20

(2) Taking into account cash short positions

(3) Excluding securities in which money is collected through insurance policies where the total risk is retained by the insured

(4) Net of tax and allocation to insurance products under separate management

€103.2bn including UBI Banca

MIL-BVA327-15051trim.13-90141/LR

Exposure to Banks by Main Countries(1)

Data excluding UBI Banca

€ m

				DEBT SECURITIES
		Banking Business Insurance					LOANS
	AC	FVTOCI	FVTPL(2)	Total	Business(3)	Total
EU Countries	1,537	4,038	682	6,257	3,405	9,662	28,707
Austria	125	46	0	171	0	171	243
Belgium	0	88	11	99	24	123	571
Bulgaria	0	0	0	0	0	0	1
Croatia	42	0	0	42	0	42	15
Cyprus	0	0	0	0	0	0	0
Czech Republic	0	0	0	0	0	0	2
Denmark	0	8	0	8	0	8	67
Estonia	0	0	0	0	0	0	0
Finland	0	46	24	70	0	70	73
France	249	1,058	12	1,319	987	2,306	6,730
Germany	18	546	72	636	38	674	8,222
Greece	0	0	0	0	0	0	112
Hungary	128	0	0	128	0	128	6
Ireland	0	38	0	38	0	38	18
Italy	792	976	414	2,182	1,258	3,440	5,288
Latvia	0	0	0	0	0	0	0
Lithuania	0	0	0	0	0	0	0	€2.3bn including UBI Banca
Luxembourg	0	195	93	288	0	288	615
Malta	0	0	0	0	0	0	0
The Netherlands	53	291	16	360	208	568	299
Poland	0	52	0	52	0	52	24
Portugal	0	17	0	17	0	17	1
Romania	0	0	0	0	0	0	53
Slovakia	0	29	0	29	0	29	0
Slovenia	0	8	0	8	0	8	4
Spain	130	345	9	484	374	858	484
Sweden	0	75	0	75	18	93	44
United Kingdom	0	220	31	251	498	749	5,835
Albania	0	0	0	0	0	0	23
Egypt	0	0	0	0	0	0	64
Japan	0	31	24	55	60	115	61
Russia	0	0	0	0	0	0	70
Serbia	0	0	0	0	0	0	56
U.S.A.	0	238	206	444	1,287	1,731	780
Other Countries	30	1,309	118	1,457	643	2,100	4,064
Total	1,567	5,616	1,030	8,213	5,395	13,608	33,825

Note: management accounts. Figures may not add up exactly due to rounding

(1) Book Value of Debt Securities and Net Loans as at 30.9.20

(2) Taking into account cash short positions

(3) Excluding securities in which money is collected through insurance policies where the total risk is retained by the insured

€9bn including UBI Banca

Exposure to Other Customers by Main Countries(1)

Data excluding UBI Banca

€ m

				DEBT SECURITIES
			Banking Business		LOANS
	AC	FVTOCI	FVTPL(2)	Total	Business(3)	Total
EU Countries	7,847	3,245	1,984	13,076	4,605	17,681	351,001
Austria	10	45	1	56	2	58	797
Belgium	30	19	3	52	125	177	599
Bulgaria	0	0	0	0	31	31	23
Croatia	13	0	0	13	11	24	5,883
Cyprus	0	0	0	0	0	0	238
Czech Republic	134	0	0	134	0	134	518
Denmark	0	0	0	0	17	17	52
Estonia	0	0	0	0	0	0	4
Finland	0	45	0	45	33	78	210
France	87	488	129	704	729	1,433	1,580
Germany	602	259	17	878	563	1,441	2,488
Greece	25	0	0	25	0	25	16
Hungary	30	0	0	30	0	30	2,795
Ireland	344	581	323	1,248	3	1,251	302
Italy	5,772	956	1,288	8,016	1,058	9,074	294,986
Latvia	0	0	0	0	0	0	0
Lithuania	0	0	0	0	0	0	1	€9bn including UBI Banca
Luxembourg	120	208	48	376	0	376	4,760
Malta	0	0	0	0	0	0	24
The Netherlands	94	353	89	536	412	948	2,511
Poland	0	0	0	0	11	11	812
Portugal	32	0	35	67	7	74	159
Romania	0	0	0	0	0	0	784
Slovakia	0	0	0	0	0	0	13,111
Slovenia	0	0	0	0	0	0	1,629
Spain	193	73	30	296	675	971	2,188
Sweden	0	84	2	86	1	87	223
United Kingdom	361	134	19	514	927	1,441	14,308
Albania	0	0	0	0	0	0	374
Egypt	0	0	0	0	0	0	2,394
Japan	0	51	6	57	30	87	664
Russia	0	0	0	0	46	46	5,275
Serbia	0	0	0	0	0	0	3,759
U.S.A.	484	940	64	1,488	1,425	2,913	5,356
Other Countries	79	589	41	709	1,116	1,825	11,988
Total	8,410	4,825	2,095	15,330	7,222	22,552	380,811

Note: management accounts. Figures may not add up exactly due to rounding

(1) Book Value of Debt Securities and Net Loans as at 30.9.20

(2) Taking into account cash short positions

(3) Excluding securities in which money is collected through insurance policies where the total risk is retained by the insured

€17bn including UBI Banca

Disclaimer

"The manager responsible for preparing the company's financial reports, Fabrizio Dabbene, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corresponds to the document results, books and accounting records".

* * *

This presentation includes certain forward looking statements, projections, objectives and estimates reflecting the current views of the management of the Company with respect to future events. Forward looking statements, projections, objectives, estimates and forecasts are generally identifiable by the use of the words "may," "will," "should," "plan," "expect," "anticipate," "estimate," "believe," "intend," "project," "goal" or "target" or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts, including, without limitation, those regarding the Company's future financial position and results of operations, strategy, plans, objectives, goals and targets and future developments in the markets where the Company participates or is seeking to participate.

Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements as a prediction of actual results. The Group's ability to achieve its projected objectives or results is dependent on many factors which are outside management's control. Actual results may differ materially from (and be more negative than) those projected or implied in the forward-looking statements. Such forward-looking information involves risks and uncertainties that could significantly affect expected results and is based on certain key assumptions.

All forward-looking statements included herein are based on information available to the Company as of the date hereof. The Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law. All subsequent written and oral forwardlooking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.

AI Terminal

Intesa Sanpaolo

4465_ip_2020-11-04_6a1c740c-3977-433e-ba00-11787f2988a8.pdf

9M20 Results

Resilient Profitability and Rock-Solid Capital Position Strengthened Further Combination with UBI Banca Brings Additional Value Creation

Data A Strong Bank for a Digital World

ISP Delivered Excellent Nine-Month Performance with ~€3bn Minimum Net Income Target for 2020 Already Achieved…

… Is Fully Equipped for a Challenging Environment…

Successful mitigation of COVID-19 impact on ISP People and Clients and support to the economy and society

… and Ready to Succeed in the Future

The Italian Economy Is Resilient Thanks to Strong Fundamentals and Can Leverage on Government Interventions and EU Financial Support

ISP Is Successfully Managing a Challenging Environment

In Recent Years, ISP Has More than Halved NPL Stock, Increased NPL Coverage while Significantly Strengthening Capital…

A very resilient business model, with 56% of 9M Gross income(6) from Wealth Management and Protection activities

… and Is Now Far Better Equipped than Peers to Tackle the Challenges Ahead

ISP Delivered the Second-Best 9M Net Income of the Past Eleven Years

ISP Proactively Implemented a Complete Set of Responses to Mitigate the COVID-19 Impact

ISP Promptly Ensured Safe Working Conditions for Its People and Clients 1 NOT EXHAUSTIVE

ISP Actively Committed to Supporting Healthcare Priorities and the Real Economy During the COVID-19 Emergency 2

Main initiatives to provide active support to healthcare priorities and the real economy

Business Continuity Ensured Thanks to Strong Digital Capabilities 3

ISP Can Leverage Its Competitive Advantages in the New Environment 4

COVID-19 Outbreak Impacted the Real Economy and Financial Markets

9M20 Highlights: ~€3bn Minimum Net Income Target for 2020 Already Achieved

9M20: Strong Growth in Profitability and Balance Sheet Further Strengthened

Our Excellent Performance Creates Benefits for All Stakeholders

Excluding UBI Banca

ISP as the Engine of Sustainable and Inclusive Growth…

… Delivering Tangible Results for Society

ISP Leads in the Main Sustainability Indexes and Rankings

(1) ISP peer group

9M: ~€3bn Minimum Net Income Target for 2020 Already Achieved

Q3: Strong Recovery in Net Interest Income and Commissions

Net Interest Income Growth on a Yearly and Quarterly Basis

€1 Trillion in Customer Financial Assets

Customer financial assets(1)

Continued Strong Reduction in Operating Costs while Investing for Growth

Operating costs

One of the Best Cost/Income Ratios in Europe

Continuous Improvement in Asset Quality, with the Lowest NPL Stock since 2008, Together with the Lowest-ever 9M and Quarterly Gross NPL Inflow

Loan Loss Provisions Down, Excluding €1.3bn Provisions for Future COVID-19 Impacts

Rock-Solid Capital Base even Higher, Well Above Regulatory Requirements

Increased Capital Buffer vs Regulatory Requirements

Best-in-Class Excess Capital

Best-in-Class Risk Profile in Terms of Financial Illiquid Assets

More than €280bn in Liquid assets(4) with LCR and NSFR well above 100%

Reconciliation Between Net Income and Stated Net Income

ISP Has Completed a Large Number of Key UBI Integration Activities

ISP Outside-In Analysis Showed ~€700m of Expected Synergies by 2024…

ISP Fully Respected the Timing to Complete the Exchange Offer and Has Already Planned the Next Steps for the Integration of UBI Banca

ISP Is Fully Equipped to Succeed in this Challenging Environment

ISP is fully equipped for this challenging environment:

9M20 Results

Detailed Information

9M20: Key P&L Figures

9M20: Key Balance Sheet Figures

MIL-BVA327-15051trim.13-90141/LR 9M20 vs 9M19: €3.1bn Net Income, Second-Best 9M Result since 2008 9M19 %

Q3 vs Q2: Strong Recovery in Net Interest Income and Commissions 2Q20 %

Net Interest Income: Yearly and Quarterly Growth Despite All-Time Low Interest Rates

Data excluding UBI Banca

Net Interest Income: Increase Mainly Due to Commercial Component Growth

Data excluding UBI Banca

Net Fee and Commission Income: Strong Increase vs Q2

Data excluding UBI Banca

Profits on Financial Assets and Liabilities at Fair Value: €1.4bn in 9M20

MIL-BVA327-15051trim.13-90141/LR Operating Costs: Further Significant Reduction while Investing for Growth

Data excluding UBI Banca

Net Adjustments to Loans: Yearly Decline when Excluding Provisions for Future COVID-19 Impacts

Data excluding UBI Banca

Strong Growth in Customer Financial Assets

Mutual Funds Mix

Data excluding UBI Banca

MIL-BVA327-15051trim.13-90141/LR

Funding Mix

Retail funding represents 82% of Direct deposits from banking business

Strong Funding Capability: Broad Access to International Markets

Data excluding UBI Banca

ISP Main Wholesale Issues

2019

2020