Banca Ifis

Investor Presentation • Nov 7, 2019

3Q 2019 RESULTS

7 NOV 2019

Table of contents

Main management initiatives

• Working on the industrial plan, which will be presented in mid January and will focus on 3 main pillars:

• o Becoming the reference partner for SMEs, with a dedicated service model and a full range of customized products
• o Preserving leadership in unsecured NPLs, broadening servicing and purchasing skills to other NPL classes while maintaining control of IFIS NPL
• o Capital strengthening and maintaining a strong liquidity profile

• Main takeaways of 3Q results

• o CET1 at 11.1% (+0.30% QoQ), which does not include 3Q 19 net income
• o Net income impacted by seasonality in NPL and physiological decline in PPA
• o Customer deposits +€0.2bn QoQ confirming Banca IFIS's strong capital and liquidity ratios

In October, completed acquisition of FBS's minority shares to streamline integration synergies

o Consideration of ~€12mln, with no significant impact on CET1

Ongoing disposal of non-core real estate in Milan expected to be completed in 4Q 19 or in 1Q 20

o We have already received the binding offers, which showed a capital gain

Summary results

• €16mln net income
• Reversal of PPA at €10mln (€21mln in 2Q19; €17mln in 1Q19)

Net income Net banking income Operating costs LLP

• €112mln:
• 37% NPL business
• 39% Trade receivables
• 12% Leasing
• 11% Corporate banking
• 1% Others

• €74mln (€64mln in 2Q 19 due to positive one-offs; €74mln in 1Q 19)

• Cost of risk of €14mln (101 bps Enterprises segment), showing normalization

STOCK

Customer loans NPL business Funding CET1

• €7.1bn (-€0.2bn QoQ)
• Trade receivables (-€0.3bn QoQ) as some large transactions with limited revenue contribution were not pursued

• NPLs stable as 3Q 19 due to limited NPL acquisitions

• ERC €2.4bn

• In 3Q 19: €59mln cash collection vs. €44mln P&L contribution *

• €1.0bn Wholesale

• €5.3bn customer deposits (+€0.2bn QoQ), confirming the Bank's ability to attract retail clients

• 11.1% La Scogliera Group Scope, well above the 8.12% SREP

• 14.7% Banca IFIS Group Scope

Seasonality in NPL and physiological decline in PPA impacting revenues and profitability

Net interest income in NPL

Write back of PPA (pre tax) Capital gains from NPL disposal

Quarterly results

(€ mln)	2Q 19	3Q 19	9M 18	9M 19
Net interest income	118.3	91.1	329.2	324.6
Net commission income	22.7	22.2	60.0	68.7
Trading and other revenues	8.1	(1.2)	14.3	(2.1)
Net banking income	149.1	112.0	403.6	391.2
Loan loss provisions (LLP)	(22.0)	(14.0)	(68.9)	(49.0)
Net banking income – LLP	127.1	98.1	334.6	342.2
Personnel expenses	(32.7)	(31.5)	(83.3)	(95.7)
Other administrative expenses	(71.0)	(43.7)	(133.8)	(158.1)
Other net income/expenses	39.8	1.3	8.2	41.4
Operating costs	(64.0)	(74.0)	(208.9)	(212.4)
Gains (Losses) on disposal of
investments	(1.3)	-	-	(1.3)
Pre tax profit	61.8	24.1	125.8	128.6
Taxes	(23.5)	(8.3)	(36.7)	(44.5)
Net income	38.3	15.7	89.0	84.0
Customer loans	7,344	(*) 7,118	6,919	(*) 7,118
of which Business NPL -	1,174	1,189	945	1,189
Total assets	9,888	10,249	9,843	10,249
Direct funding	7,171	7,319	7,080	7,319
of which deposits customer -	5,069	5,257	4,985	5,257
Shareholders Equity	1,472	1,501	1,397	1,501

Non-recurrent items

Data in €mln	2Q 19	3Q 19	9M 19
Other admin. expenses	(31)	0	(31)
Other net income /expenses	39	4	42
Operating costs	8	4	11
Taxes	(8)	(4)	(11)
Net income	0	0	0

• 2Q 19 and 3Q 19 included the closing of a tax proceeding of former Interbanca with no impact on Banca IFIS's net income

BANCA IFIS In these financial statements, net impairment losses/reversals on receivables of the NPL segment were entirely reclassified to interest receivable and similar income as they represent an integral part of return on investment

(*) Of which ~ €70mln of ITA Government bond at amortised cost

Capital structure

CET1 +0.30% QoQ mainly due to RWA decrease driven by (i) lower volumes and stronger focus on margins in factoring (ii) optimization of the proprietary portfolio

Capital generation in future quarters

• CET1 does not include 3Q 19 net income
• Real estate disposal expected to be completed in 4Q 19 or 1Q 20
• Progressive use of DTA against future profits (€111.3mln as at 30 Sep 19) currently fully deducted from CET1 (~128bps)
• Ordinary winding down of former Interbanca customer loans (€0.5bn as at 30 Sep 19)

7 BANCA IFIS *The application of the 2013/36/EU (CRD IV) Directive and EU Regulation 575/2013 (CRR) envisages that only 50.7% of the excess capital of Banca IFIS Group Scope is included in the CET1 of La Scogliera Group Scope. Excess Capital of €0.3bn is not included in CET1 of La Scogliera Group Scope ** SREP received by the Bank of Italy to be applied in 2019

Positioning in NPL

Banks	• Early detection / • New calendar intervention at the provisioning early signs of regulation financial difficulties
Companies	• Increase in scale / • Negotiate with banks consolidation restructuring plans • Increase financial at the early signs of planning and financial difficulties reporting	• Banca IFIS acts as investor and 1 servicer
Services	• Consolidation with • Potential partnership 3/4 large players with financial and several institutions to inject specialized players new financing	2 • Leader in unsecured NPLs • Strengthening servicing and 3 accelerating integration of FBS by
Investors	• NPE market to • NPL as a new asset continue to provide class attractive returns in the medium terms	acquiring the remaining 10% minority stake
Regulator	• Regulatory provisioning requirements • Asset quality targets • Capital requirements • Calendar

Strengthening servicing business

Segment breakdown

Data in € mln

		Enterprises			NPL	G&S	Total
	Trade Receivables	Leasing	Corporate Banking	Tax Receivables
Net banking income	127	42	47	10	169	(3)	391
- of which PPA	3	-	39	-	-	6	47
Loan loss provisions (LLP)	(32)	(8)	(6)	0	-	(3)	(49)
Net banking income - LLP	95	34	41	10	169	(6)	342
% total	28%	10%	12%	3%	49%	(2)%	100%
Net customer loans	3,286	1,425	733	185	1,189	300(4)	7,118
RWA from counterparty risk(1)			4,373		1,634	165	6,173
% total			71%		26%	3%	100%
					Counterparty RWA on other group assets(2)		1,555
					Operating and market risks and CVA(3)		1,016

Total RWA 8,743

Trade Receivables

Data in euro million*	3Q 18	4Q 18	1Q 19	2Q 19	3Q 19
Net banking income	43	46	41	43	43
of which PPA -	1	1	1	1	1
Net banking income / average customer loans	5.3%	5.6%	4.8%	4.9%	5.1%
Loan loss provisions	(26)	(20)	(9)	(18)	(5)

• Trade receivables down by -€0.2bn QoQ, with limited revenue impact. In 3Q 19 there was stronger focus on margins and some large transactions with limited revenue contribution were not pursued
• Lending and turnover are expected to improve in 4Q 2019, which is usually the stronger quarter of the year
• Net banking income / average customer loans at 5.1%,
• Loan loss provisions of €5mln showing some stabilization. In 2018 and 1H 2019, LLP was impacted by one-off provisions on a few large tickets

BANCA IFIS * Data based on management accounting. Factoring includes Polish business

Leasing

Data in euro million*	3Q 18	4Q 18	1Q 19	2Q 19	3Q 19
Net banking income	12	13	14	15	14
Net banking income / average customer loans	3.6%	3.8%	3.9%	** 4.1%	3.8%
Loan loss provisions	(3)	(3)	(2)	(3)	(4)

New business* - €mln

Highlights*

• New leasing -6% vs QoQ, especially in transportation
• New leasing production is expected to improve in 4Q 2019, which is usually the strongest quarter of the year
• Stability in terms of asset quality
• Time to money: ca 2/3 of leasing approval within same day for auto and equipment; real time for technology. Acceptance rate of ca. 65%-70%
• Third party contracts for re-marketing of returned leasing/rentals provide clear recovery estimates

NPL Business: portfolio evolution

NPL portfolio evolution				Key numbers
* NBV 1,172 €mln			1,188	• 1.7mln tickets, #1.2mln borrowers • Extensive portfolio diversification by location, type and age of borrower
GBV 16.4 €bn	0.2	0.0	16.6	NPLs acquired in 3Q: €0.2bn GBV
				• In 3Q 2019, Banca IFIS carried out few NPL acquisitions as there were limited disposals in the market
				• Banca IFIS is participating in all the ongoing disposal processes of unsecured NPLs with estimated GBV of €4bn. The closing of these processes is expected in 4Q 19 and 1Q 20
2Q 19	Purchases	Disposals	3Q 19	No NPLs disposed in 3Q 19

• No NPL disposals in 3Q 19. Potential disposal processes in 4Q 19

NPL Business: ERC

ERC breakdown*

Data in € bn	GBV	NBV	ERC
Waiting for workout - At cost	1.8	0.2	0.4
Extrajudicial positions	9.6	0.3	0.6
Judicial positions	5.2	0.7	1.5
Total	16.6	1.2	2.4

• ERC based proprietary statistical models built using internal historical data series and homogeneous clusters of borrowers
• o Type of borrower, location, age, amount due, employment status
• o Time frame of recovery
• o Probability of decay
• ERC represents Banca IFIS's expectation in terms of gross cash recovery. Internal and external costs of positions in non-judicial payment plans (GBV of €0.4bn in 3Q 19), court injunction ["precetto"] issued and order of assignments (GBV of €1.1bn in 3Q 19) have already been expensed in P&L
• €0.9bn cash recovery (including proceeds from disposals) in 2014 - 3Q 2019

NPL Business: GBV and cash recovery

Judicial recovery

Judicial recovery (€ mln)	GBV	%
Freezed*	2,192	42%
Court injunctions ["precetto"] and foreclosures	511	10%
Order of assignments	612	12%
Secured and Corporate	1,911	37%
Total	5,226	100%

Non judicial recovery – Voluntary plans

GBV, data in €mln Judicial + non judicial recovery, data in €mln

ODA Secured and Corporate Actual cash repayments Expected cash repayments Cash repayments > internal model estimates

Judicial recovery - Growth of ODA and secured Actual cash repayments > expected cash repayments **

** Excluding FBS

NPL Business: cash recovery

• Confirmation of Banca IFIS's strong know-how in recovery with continuous increase in cash collections
• Cash collections:
• €59mln in 3Q 19, -13% vs. 2Q 19 and +30% vs. 3Q 18
• €183mln in 9M 19; +45% vs. 9M 18 and +117% vs. 9M 17
• 3Q was impacted by usual seasonality due to courts shutting down in August

Data in € mln (excluding disposals)	1Q 17	2Q 17	3Q 17	4Q 17	1Q 18	2Q 18	3Q 18	4Q 18	1Q 19	2Q 19	3Q 19	2017 YE	2018 YE
Cash collection	25	29	30	44	40	41	45	55	57	67	59	128	181
* Contribution to P&L	35	36	32	58	67	56	46	69	66	60	44	162	238
Cash collection / contribution to P&L	70%	80%	93%	75%	60%	73%	98%	79%	87%	112%	132%	79%	76%

* It includes only interest income, excludes cost of funding and some minor items (i.e. net commission income and the gains on sales of receivables)

NPL

Consolidated operating costs

Personnel expenses (€mln)

• Operating costs ~+€10mln vs. 2Q 19
• o ~+€4mln one-off due to the closing of a tax proceeding of former Interbanca with no impact on Banca IFIS's net income. This one-off was ~+€8mln in 2Q 19 and ~+€4mln in 3Q 19 (~+ €4mln in operating costs QoQ)
• o ~+€3mln due to FITD and Resolution Fund
• o ~+€3mln due to increase in advisory fees, legal and recovery costs and decrease in cost of personnel
• o 9M 19 cost / income ratio at 54.3% (51.8 % at 9M 18)

Other adm. expenses and other income / expenses (€mln)

Customer loans

Highlights

• Focus on short term loans, very selective on long term maturities. This trend is expected to continue in coming quarters
• Trade receivables were down -€0.3bn QoQ with limited revenue impact. In 3Q 19, there was stronger focus on margins and some large transactions with limited revenue contribution were not pursued
• NPL stable QoQ due to very few acquisitions. Banca IFIS is participating in all the ongoing disposal processes of unsecured NPLs

Funding

	1Q 19	2Q 19	3Q 19
LCR	>1,000%	>1,300%	>1,600%
NSFR	>100%	>100%	>100%

• 3Q 19, customer deposits at €5,257mln (+€188mln QoQ) confirming Banca IFIS's strong capital and liquidity ratios
• No significant change in average cost of funding which remains substantially stable at ca. 1.5%
• New bond issuance to be considered only at attractive yields and after the presentation of the industrial plan
• We are considering the TLTRO as part of our funding strategy, taking into account the diversification and stability of our ALM

Asset quality – 3Q 19

Enterprises	Gross	Coverage %	Net
Bad loans	230	70%	69
UTP	233	46%	126
Past due	136	8%	125
Total	599	47%	320

Enterprises Net of POCI	Gross	Coverage %	Net
Bad loans	203	80%	41
UTP	210	51%	102
Past due	136	8%	125
Total	549	51%	269

POCI	GrossCoverage	%	Net
Bad loans	27	0%	27
UTP	24	0%	24
Past due	-	0%	-
Total	51	0%	51

Highlights

• NPL Business not included in this analysis
• Enterprises (net of POCI): bad loans and UTP coverage at 80% and 51% respectively
• NPEs that arose from the acquisition of Interbanca, in accordance with IFRS 9 are qualified as POCI ("purchased or originated credit-impaired") and are booked net of provisions
• NPEs ratio in Enterprises
• o Gross NPE %: 10.1% (9.4% at 30 June 2019)
• o Net NPE %: 5.7% (5.3% at 30 June 2019)
• In addition for Enterprises Segment (highlighted in the left table), as at 30 Sept 2019, G&S had € 40mln gross NPEs, of which:
• o €26mln gross other loans (of which €7mln gross bad loans, €16mln gross UTP and €3mln gross past due)

• o €15mln POCI

• Working on the business plan to be presented in mid January

• CET 1 of 11.1% (+0.30% QoQ), which does not include 3Q 19 net income
• 3Q 19 net income impacted by seasonality in NPL and physiological decline in PPA
• We expect 2019 net income target around our guidance provided on 11 February 2019, subject to the inclusion of the capital gain on the disposal of the real estate in Milan in 4Q 2019

Segment breakdown

Appendix

03 Focus on DTA and PPA

NPL Business

• NPL Business: stock by recovery phase
• Judicial and extrajudicial workout
• NPL Business: GBV and NBV evolution
• NPL Business: P&L and cash evolution
• Accounting of extrajudicial workout
• Accounting of judicial workout
• NPL portfolio diversification

02

04

La Scogliera: implications of CRD IV

• The application of the 2013/36/EU (CRD IV) Directive and EU Regulation 575/2013 (CRR) envisages that 49.3% of the excess capital of the Banca IFIS Group Scope is not included in the CET1 of La Scogliera Group Scope. CET1 excess capital of €0.4bn is not included in La Scogliera Group Scope

Data in €billion

Data as at 30 Sept 2019	Banca IFIS Group Scope	Capital requirements*	Excess capital	Minority stake of La Scogliera	Excess capital not included	La Scogliera Group Scope
CET1	1.3		0.7	49.3%	0.4	1.0
Total Capital	1.7		0.8	49.3%	0.4	1.3
CET1 %	14.7%	7.0%		49.3%		11.1%
Total Capital %	19.2%	10.5%		49.3%		14.8%
RWA	8.7					8.7
						26

BANCA IFIS *Capital requirements at parent company level. At group level capital requirements are: CET1 8.12%, Total Capital 12.5% **Net of Treasury shares

03 Focus on DTA and PPA

NPL Business

• NPL Business: stock by recovery phase
• Judicial and extrajudicial workout
• NPL Business: GBV and NBV evolution
• NPL Business: P&L and cash evolution
• Accounting of extrajudicial workout
• Accounting of judicial workout
• NPL portfolio diversification

04

Segment breakdown (1/2)

Consolidated P&L - Data in €mln	3Q 18	4Q 18	1Q 19	2Q 19	3Q 19
Net interest income	100	140	115	118	91
Net commission income	20	25	24	23	22
Trading and other income	6	8	(9)	8	(1)
Net banking income	125	173	130	149	112
Loan loss provisions (LLP)	(29)	(31)	(13)	(22)	(14)
Net banking income – LLP	97	142	117	127	98
Personnel expenses	(28)	(28)	(31)	(33)	(32)
Other administrative expenses	(39)	(43)	(43)	(71)	(44)
Other net income/expenses	2	6	0	40	1
Operating costs	(65)	(65)	(74)	(64)	(74)
Gains (Losses) on disposal of investments	-	-	-	(1)	-
Pre-tax profit	32	77	43	62	24
Taxes	(9)	(19)	(13)	(24)	(8)
Net income	23	58	30	38	16

P&L breakdown - Data in €mln	3Q 18	4Q 18	1Q 19	2Q 19	3Q 19
Net interest income	100	140	115	118	91
o/w Enterprises	57	75	53	62	53
o/w NPL Business	43	66	61	56	40
o/w G&S	(0)	(1)	1	(0)	(2)
Net commission Income	20	25	24	23	22
o/w Enterprises	20	24	22	22	21
o/w NPL Business	0	0	1	1	1
o/w G&S	(0)	0	0	(0)	(0)
Trading and other income	6	8	(9)	8	(1)
o/w Enterprises	(1)	(5)	(8)	2	(1)
o/w NPL Business	6	10	0	8	(0)
o/w G&S	1	4	(1)	(1)	0
Net banking income	125	173	130	149	112
o/w Enterprises	76	94	67	86	73
o/w NPL Business	49	76	63	65	41
o/w G&S	0	3	1	(2)	(2)
o/w PPA	17	31	17	21	10
o/w Enterprises	15	29	14	19	8
o/w NPL Business	-	-	-	-	-
o/w G&S	1	2	2	2	1

Segment breakdown (2/2)

Enterprises - Data in €mln	1Q 18	2Q 18	3Q 18	4Q 18	1Q 19	2Q 19	3Q 19
Bad loans (net)	63	68	74	68	68	72	69
Unlikely to pay (net)	160	144	165	147	150	140	126
Past due loans (net)	120	156	122	95	89	103	125
Total non performing loans (stage 3)	343	368	362	310	307	315	320
Performing loans (stage 1 and 2)	5,030	5,232	5,308	5,608	5,648	5,619	5,309
Total loans	5,373	5,600	5,669	5,918	5,955	5,934	5,629

NPL Business - Data in €mln	1Q 18	2Q 18	3Q 18	4Q 18	1Q 19	2Q 19	3Q 19
Bad loans (net)	563	582	676	782	818	864	883
Unlikely to pay (net)	268	268	266	306	301	303	299
Past due loans (net)	0	1	1	0	0	0	0
Total non performing loans (stage 3)	831	850	943	1,088	1,120	1,167	1,182
Performing loans (stage 1 and 2)	1	1	2	5	6	7	7
Total loans	832	851	945	1,093	1,125	1,174	1,189

G&S - Data in €mln	1Q 18	2Q 18	3Q 18	4Q 18	1Q 19	2Q 19	3Q 19
Bad loans (net)	13	13	13	12	12	11	13
Unlikely to pay (net)	14	14	14	19	20	17	13
Past due loans (net)	5	7	7	5	4	4	3
Total non performing loans (stage 3)	32	34	34	36	35	32	28
Performing loans (stage 1 and 2)	220	225	272	267	207	204	271
Total loans	252	259	305	303	242	236	300

Segment breakdown

03 Focus on DTA and PPA

NPL Business

• NPL Business: stock by recovery phase
• Judicial and extrajudicial workout
• NPL Business: GBV and NBV evolution
• NPL Business: P&L and cash evolution
• Accounting of extrajudicial workout
• Accounting of judicial workout
• NPL portfolio diversification

02

04

Focus on DTA

charges

Other

DTAs

Data in €/mln

Convertible DTA	• • • •	DTAs related to write downs of loans convertible into tax credits (under Law 214/2011) Their recovery is certain regardless of the presence of future taxable income and is defined by fiscal law (range ca. 5%-12% per annum, with full release by 2026) No time and amount limit in the utilization of converted DTA Capital requirements: 100% weight on RWA	218.4
DTA due to tax losses (non convertible)	• • • •	DTAs on losses carried forward (non-convertible) and DTAs on ACE (Allowance for Corporate Equity) deductions can be recovered in subsequent years only if there is positive taxable income No time limit to the use of fiscal losses against taxable income of subsequent years Capital requirements: 100% deduction from CET1 DTAs generated due to negative valuation reserves and provisions for risks and	111.3 (83.4+28.0*)

non-convertible • Capital requirements: deduction from CET1 or weighted in RWA depending on certain thresholds. For Banca IFIS they would be weighted at 250% but they are substantially offset by DTL

BANCA IFIS * Includes €28.0mln of net tax credits booked as loans towards La Scogliera as part of the consolidated fiscal accounts. The tax credit stemmed from Interbanca's PPA in fiscal year 2017, following the merger of Interbanca into Banca IFIS

** Includes €5.8mln of DTA related to IFIS Rental not included in the Banking Group because not regulated entity

38.5**

Focus on PPA

Description

• In 2016, following the acquisition of Interbanca, Banca IFIS valued the performing and non performing loans of Interbanca by applying a market discount and a liquidity discount to reflect purchase price
• The purchase price allocation (PPA) is written back with the progressive maturity or the disposal of Interbanca's loans
• o As at 30 Sept 19, the residual amount of pretax PPA is €182mln

Net customer loans and PPA - €mln

PPA Reversal in P&L	1Q 18	2Q 18	3Q 18	4Q 18	1Q 19	2Q 19	3Q 19	Outstanding 3Q 19
Enterprises	20	20	15	29	14	19	8	144
G&S	1	2	1	2	2	2	1	39
Total	22	22	17	31	17	21	10	182

01 La Scogliera: implications of CRD IV

Segment breakdown

Appendix

03 Focus on DTA and BS

NPL Business

• NPL Business: stock by recovery phase
• Judicial and extrajudicial workout
• NPL Business: GBV and NBV evolution
• NPL Business: P&L and cash evolution
• Accounting of extrajudicial workout
• Accounting of judicial workout
• NPL portfolio diversification

02

04

NPL Business: stock by recovery phase

Cluster	GBV 3Q19 €mln	% total	Description	Average time frame	Accounting valuation	Cash proceeds
Waiting for workout - Positions at cost	1,783	11%	Recently acquired, under analysis to select the best recovery strategy, to be assigned either to extrajudicial or to judicial recovery	6 months	Acquisition cost
Extrajudicial positions	9,574	58%
-Ongoing attempt of recovery	9,194	55%	Managed by internal and external call centres and recovery networks. The purpose is the transformation into voluntary payment plans (or into judicial recovery if conditions arises)	NA	Statistical model (collective valuation)	No
- Non-judicial payment plans	380	2%	Sustainable cash yields agreed with debtors through call centres and collection agents	5 years	Increase in value (P&L), with valuation based on agreed plan, net of historical delinquency rate, discounted at the IRR used for acquisition	Yes
Judicial positions	5,226	32%
- Freezed*	2,192	13%	Judicial process has started; but the court injunction ["precetto"] has not been issued	6-12 months	Acquisition cost	No
- Court injunctions ["precetto"] issued and foreclosures ("pignoramento")	511	3%	Court injunction ["precetto"] already issued; legal actions continue to get the order of assignment	8-12 months	#1 increase in value at court injunction ["precetto"] and #2 increase in value at foreclosure ["Pignoramento"]. Part of the legal costs are expensed in P&L	No
- Order of assignments	612	4%	Enforcement order already issued. The cash repayment plan is decided by the court and starts afterwards	2-4 months	#3 increase in value. The remaining legal costs are expensed in P&L	Yes
- Secured and Corporate	1,911	12%	Ongoing execution of real estate collaterals	4 years	Analytical valuation (expected time frame and amount to be recovered)	Yes
Total	16,583	100%

BANCA IFIS

Source: split according to management accounting. Please note that the presentation of this table has been improved compared to the past in order to better highlight the correlation regarding both the operating and financial impacts of transferring positions between different categories. *Other Judicial positions

NPL Business: GBV and NBV evolution

GBV - €mln	1Q 17	2Q 17	3Q 17	4Q 17	1Q 18	2Q 18	3Q 18	4Q 18	1Q 19	2Q 19	3Q 19
Waiting for workout - Positions at cost	2,525	2,325	3,614	2,522	2,298	2,014	1,840	3,472	2,864	1,598	1,783
Extrajudicial positions	6,047	6,573	6,702	8,050	8,050	8,145	9,667	8,956	9,745	9,862	9,574
- Ongoing attempt of recovery	5,776	6,297	6,420	7,733	7,725	7,817	9,332	8,617	9,393	9,491	9,194
- Non-judicial payment plans	271	276	283	317	325	328	335	340	352	371	380
Judicial positions	1,874	2,127	2,220	2,503	2,664	2,738	3,170	3,327	4,015	4,913	5,226
- Freezed*	1,640	1,655	1,713	1,810	1,515	1,435	1,712	1,692	1,822	1,931	2,192
- Court injunctions ["precetto"] issued and foreclosures	0	0	0	0	253	336	376	411	464	487	511
- Order of assignments	185	233	269	317	388	462	476	536	561	609	612
- Secured and Corporate	48	238	238	376	508	505	606	689	1,167	1,886	1,911
Total	10,445	11,025	12,536	13,075	13,011	12,897	14,676	15,756	16,624	16,373	16,583

NBV - €mln	1Q 17	2Q 17	3Q 17	4Q 17	1Q 18	2Q 18	3Q 18	4Q 18	1Q 19	2Q 19	3Q 19 **
Waiting for workout - Positions at cost	147	132	128	94	61	57	96	225	174	148	160
Extrajudicial positions	231	244	239	283	287	285	302	291	306	313	308
- Ongoing attempt of recovery	130	139	139	160	160	154	167	153	162	164	154
- Non-judicial payment plans	101	105	100	122	127	131	135	138	144	149	154
Judicial positions	254	325	349	423	484	509	547	577	643	711	720
- Freezed*	189	219	229	266	222	194	203	188	205	207	215
- Court injunctions ["precetto"] issued and foreclosures	0	0	0	0	52	80	94	107	118	118	118
- Order of assignments	63	82	95	123	148	174	183	209	227	244	245
- Secured and Corporate	2	25	25	33	62	61	67	73	94	142	142
Total	631	701	716	799	832	851	945	1,093	1,123	1,172	1,188

BANCA IFIS

Source: split according to management accounting. Please note that the presentation of this table has been improved compared to the past in order to better highlight the correlation regarding both the operating and financial impacts of transferring positions between different categories.

*Other Judicial positions **Does not include customer loans (invoices to be issued) related to FBS third parties servicing activities

NPL Business: P&L and cash evolution

P&L - €mln	1Q 17	2Q 17	3Q 17	4Q 17	1Q 18	2Q 18	3Q 18	4Q 18	1Q 19	2Q 19	3Q 19
Waiting for workout - Positions at cost
Extrajudicial positions	18	15	16	28	21	13	13	17	19	19	19
- Ongoing attempt of recovery	1	1	(1)	0	2	(3)	(3)	(4)	(3)	(2)	(1)
- Non-judicial payment plans	17	14	18	28	19	16	16	21	22	21	20
Judicial positions	17	21	16	31	46	43	33	53	46	42	26
- Freezed*	0	0	0	0	0	0	0	0	0	0	0
Court injunctions and - foreclosures + Order of assignments	17	20	15	28	44	41	26	42	37	28	18
- Secured and Corporate	0	1	1	2	3	2	7	11	9	14	7
Total	35	36	32	58	67	56	46	69	66	60	44

Cash - €mln	1Q 17	2Q 17	3Q 17	4Q 17	1Q 18	2Q 18	3Q 18	4Q 18	1Q 19	2Q 19	3Q 19
Waiting for workout - Positions at cost
Extrajudicial positions	18	19	21	29	21	21	22	26	27	32	27
- Ongoing attempt of recovery	2	3	3	6	4	4	3	3	4	6	4
- Non-judicial payment plans	16	16	18	23	17	17	19	23	23	26	23
Judicial positions	7	10	10	15	19	20	23	29	30	35	32
- Freezed*	0	0	0	0	0	0	0	0	0	0	0
- Court injunctions and foreclosures + Order of assignments	7	8	9	12	15	17	19	22	24	25	25
- Secured and Corporate	0	2	0	3	4	3	4	7	6	11	7
Total	25	29	30	44	40	41	45	55	57	67	59

BANCA IFIS

Source: split according to management accounting. Please note that the presentation of this table has been improved compared to the past in order to better highlight the correlation regarding both the operating and financial impacts of transferring positions between different categories. *Other Judicial positions

NPL Business*: portfolio diversification

Breakdown of Gross Bad Loans by ticket size Gross NPL breakdown by region

BANCA IFIS

Data as at 30 Sept 2019 Source: management accounting, risk management data *Excluding FBS

Disclaimer

• This Presentation may contain written and oral "forward-looking statements", which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of Banca IFIS (the "Company"). There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus such forward-looking statements are not a reliable indicator of future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in this Presentation are provided as at the date hereof and are subject to change without notice. Neither this Presentation nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision.
• The information, statements and opinions contained in this Presentation are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction of the United States or in Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would be unlawful (the "Other Countries"), and there will be no public offer of any such securities in the United States. This Presentation does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries.
• Mariacristina Taormina, Manager charged with preparing the financial reports of Banca IFIS S.p.A., pursuant to the provisions of Art. 154 bis, paragraph 2 of Italian Legislative Decree no.58 dated 24 February 1998, declares that the accounting information included into this document corresponds to the related books and accounting records.
• Neither the Company nor any member of Banca IFIS nor any of its or their respective representatives directors or employees accept any liability whatsoever in connection with this Presentation or any of its contents or in relation to any loss arising from its use or from any reliance placed upon it.