FinecoBank

Investor Presentation • Nov 5, 2019

3Q19 Results

Alessandro Foti, CEO and General Manager

Milan, November 5th 2019

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 FinecoBank S.p.A. (the "Company"). There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in this 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.
• Pursuant the consolidated law on financial intermediation of 24 February 1998 (article 154-bis, paragraph 2) Lorena Pelliciari, in her capacity as manager responsible for the preparation of the Company's financial reports declares that the accounting information contained in this Presentation reflects FinecoBank's documented results, financial accounts and accounting records.
• This Presentation has been prepared on a voluntary basis since the financial disclosure additional to the half-year and annual ones is no longer compulsory pursuant to law 25/2016 in application of Directive 2013/50/EU, in order to grant continuity with the previous quarterly presentations. FinecoBank is therefore not bound to prepare similar presentations in the future, unless where provided by law. Neither the Company nor any of its 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.

Fineco - a fully independent public company

Strategy and Business model

Fineco exit from the UniCredit Group has no implications on its strategy and business model: Fineco enjoyed limited synergies with UniCredit and, as a fully independent company, continues to focus on maximizing shareholders' value via healthy, sustainable and organic growth

Transitional Arrangements with UniCredit Group

Fineco and UniCredit have agreed to enter into certain transitional arrangements to ensure full continuity and an orderly and smooth transition from a regulatory, liquidity and operational standpoint

Benefits from being a fully independent public company

More liquid stock with more than doubled average volumes

Increased efficiency as we now are more flexible and agile to adapt to a fast changing environment in terms of:

Agenda

Fineco Results

Next steps and developing opportunities

Key messages

Focus on product areas

Executive Summary

Net Profit (1): Best 9M ever

• Net profit(1) above 198mln, +11% y/y confirming the sustainability of a business model able to deliver consistent results in every market condition
• Growing revenues(1) at 489mln, +5% y/y supported by all business areas: Investing, +14% y/y, with management fees up +12% y/y and Banking area (+3% y/y) thanks to high quality volume growth in deposits and lending. Revamped Brokerage (+10% q/q) thanks to an in-depth review of our product offer after the change in the market structure due to lower volatility and increased regulation
• Operating Costs well under control at 185mln, +1% y/y due to different distribution of marketing costs among the quarters. C/I ratio at 37.9%, -1.4 p.p. y/y, confirming operating leverage as a key strength of the Bank

Robust commercial activity

• 9M19 Net sales at 4.3bn, with penetration of Guided products on Assets under Management at 70%
• Fineco Asset Management recorded its best month ever in terms of retail total net sales

Innovation key in our next industrial measures

• Banking: room for Smart repricing of banking services and continuous improvement of banking services
• Investing: further push to move customers' liquidity in Asset under Management, leveraging on product innovation, FAM and the new platform
• Brokerage: completely redesigned product offer with new option products and more to come

(1) Figures adjusted net of non recurring items: 9M19 Voluntary Scheme: -4.4mln gross, -2.9mln net (1Q19: -0.4mln gross, -0.3mln net; 2Q19: -4.3mln gross, -2.9mln net; 3Q19: +0.4mln gross, +0.3mln net). 9M18 non recurring items: Staff expenses -1.1mln net (-1.6mln gross)

Results

Best 9M ever, with 198mln adj. Net Profit, +10.8% y/y, boosted by diversified revenues growth. C/I ratio at 37.9%, down ~1.4 p.p. y/y confirming our strong operating leverage

(1) 9M19 non recurring items: Voluntary Scheme: -4.4mln gross, -2.9mln net (1Q19: -0.4mln gross, -0.3mln net; 2Q19: -4.3mln gross, -2.9mln net; 3Q19: +0.4mln gross, +0.3mln net). 9M18 non recurring items: Staff expenses -1.1mln net (-1.6mln gross)

(2) Adj. Cost/Income and Adj. RoE calculated net of non recurring items

7 (3) estimated

Net interest income (1/2)

Solid NII, +1.9% y/y thanks to valuable and sticky sight deposits coupled with high-quality lending portfolio. Increasing diversification in financial investments

(1) Financial investments include interest income coming from the reinvestments of deposits (both sight and term) in: Government bonds, UC bonds and Other Financial Investments (repos and immediate available liquidity)

(2) Other net interest income includes Security Lending, Leverage and other (mainly marketing costs). Other interest-earning assets include Security Lending and Leverage. See page 45 for details

(3) Lending: only interest income 8

(4) Gross margins: interest income related to financial investments, lending, leverage, security lending on interest-earning assets

Net interest income (2/2)

Further improvements for a diversified asset side.

Sensitivity analysis +100bps / -100bps parallel shift: +125mln NII / -114mln NII

UC bonds and Govies run-offs, eop bn

Commissions and Trading Income

Fees and commissions grew +11.1% y/y. Sustainable growth generating recurring revenues, with Management fees up +12.1% y/y. Revamped Brokerage

(1) Adj. Trading Income excluding non recurring items: Voluntary Scheme: 9M19 -4.4mln gross, -2.9mln net (1Q19: -0.4mln gross, -0.3mln net; 2Q19: -4.3mln gross, -2.9mln net, 3Q19: +0.4mln gross, +0.3mln net)

Costs

Cost efficiency and operating leverage confirmed in our DNA. 3Q19 affected by seasonality and different distribution of marketing costs among quarters

0.7 0.5 3Q18 0.8 0.5 1.5 3.0 0.2 5.1 1.1 2Q19 3.1 0.6 3Q19 9M18 9M19 1.5 0.7 2.0 1.5 o/w 1.3mln new 2018- 2020 LTI

(1) Non recurring items : severance (staff expenses) -1.6mln gross in 3Q18

(2) Other administrative expenses with breakdown between development and running costs: managerial data

(3) Following IFRS16, leasing costs previously accounted in other administrative expenses are now booked in write-down/backs and depreciation. For more details on IFRS16 please refer to slide 50 11

Non HR Costs(2), mln

Boost in high quality lending volume offered exclusively to the existing base of clients, leveraging on our internal Big Data analytics

Cost of Risk on commercial loans (2)

• Decreasing Cost of Risk thanks to the constant improvement in the quality of the credit which is mainly secured and low risk
• We confirm our strategy aims to build a safe lending portfolio, offering these products exclusively to our very well known base of clients, leveraging on a deep internal IT culture, powerful data warehouse system and Big Data analytics
• More details on the quality of our portfolio in the following slide, with a deep dive on the main products offered

(1) Current accounts/overdraft Include Lombard loans

(2) New methodology for calculating Cost of Risk to have a better representation of the ratio: commercial LLP of the last 12 months on average last 12 months commercial Loans instead of annualized LLP

Lending

Boost in high quality lending volume through mortgages, personal loans and lombard loans

	Eop, mln		2019 Guidance
s e g a g t r o M	+29.6% +20.0% 1,030 859 795 Sep.18 Dec.18 Sep.19	 10,875 mortgages granted since December 2016  Yield(1) Average customer rate: 179bps. 9M19 at 80bps  Average Loan to Value 53% and average maturity 19 yrs  Very low expected loss (~23 bps)	 yearly new production: ~330-380mln  Expected yield: ~ 70-80 bps
al s n n o a s o r e L P	+9.7% +3.6% 455 439 415 Sep.18 Dec.18 Sep.19	 Average ticket €9.100 and average maturity 4.5 years  9M19 Yield at 409bps  Efficient and real time process, instant approval platform for eligible clients' requests thanks to a deep knowledge of clients.  Low expected loss (~60 bps)	 yearly new production: ~200-250mln  Expected yield: ~ 380-410 bps
d r s a n b a m o L o L	Other lombard Credit lombard +30.1% +17.9% 1,184 1,004 910 182 220 231 1,001 784 679 Set.18 Dec.18 Set.19	Lombard(2) o/w Credit :  Attractive pricing: retail clients 100bps and private Eur(3) clients 75bps (on 3M )  Differentiated margins according to the riskiness of the pledged assets  Very low expected loss (~10 bps)	o/w Credit Lombard(2):  Expected growth: ~300-350mln per year  Expected yield: ~75-85bps

(1) Yield on mortgages net of amortized and hedging costs

(2) Credit Lombard allows to change pledged assets without closing and re-opening the credit line, allowing more flexibility and efficiency

with floor at zero 13

Capital Ratios (1)

Best in class capital position and low risk balance sheet

(1) Data as of September 2018 were determined on individual basis

14

(2) Following the exit from UniCredit Group, the Bank started a process to ask the Supervisory Authority to use a less sophisticated method for determining the regulatory requirement and, prudentially, the requirement as of September 30th , 2019 was calculated by adopting a Margin of Conservativism (MoC)

TFA

Relentless TFA growth thanks to a healthy expansion in net sales. Guided products & Services increased at 70% of total AuM

TFA evolution (Dec.13 – Sept. 19), bn

(1) Calculated as Guided Products end of period divided by Asset under Management end of period

TFA breakdown

Successful shift towards high added value products thanks to strong productivity of the network

AuC and Deposits under advisory have been reclassified within AuM in order to have a better representation of the advisory nature of Advice and Plus services

16(1) "Best in class" are a selection of advisory products and services based on: cost optimization, quality, sustainability and risk (2) Other includes: Core Funds, PIR and Core Pension, GP Private, FAM Evolution stand-alone

Net sales breakdown

Solid high quality 9M19 net sales growth on the wave of structural trends in place despite a complex environment. Asset mix returning into AuM with more conservative solutions

17 AuC and Deposits under advisory have been reclassified within AuM in order to have a better representation of the advisory nature of Advice and Plus services

Organic growth

Net sales organically generated confirmed as key in our strategy of growth

of PFAs recruited in the period

(1) Total recruits include net inflows related to PFAs recruited over the last 24 months (avg) 18

Continuously increase of quality and productivity of the network

Clients' profile and focus on Private Banking

Agenda

Fineco Results

Next steps and developing opportunities

Key messages

Focus on product areas

What's next – It's not just about Net Interest Income

A resilient, low risk Net Interest Income

Given current outlook(1) , our assumptions for 2020 are:

• Run-off of our bond portfolio is smooth and gentle as it has been built in a very conservative way, with no major cliffs
• Positive effect coming from continuous building up of volumes (~2.5bn expected growth of deposits per year) and lending book (~0.8-1bn new production per year)
• Benefit from tiering on our liquidity deposited at Bank of Italy with up to 6x our mandatory deposits (~250mln as of Sept.19) at zero rate
• No change in our investment policy: we will continue to invest in a blend of diversified European Govies and Covered Bonds and no increase in the risk profile of the Bank
• NII sensitivity for +100bps/-100bps parallel shift: +125mln additional NII / -114mln less NII

Industrial measures going forward

The Bank is undertaking industrial measures to reduce the exposure to Net Interest Income through:

Acceleration in the conversion of customers' deposits towards Asset under Management 1

Possible smart repricing coupled with an continuous improvement of our banking services, preserving our positioning as best price/quality offer in the market

This measures will change our revenues' mix - with a higher contribution from Investing and Banking fees - and will further lighten our Balance Sheet

Accelerating the conversion rate of customers' deposits towards AuM Assisted Selling platform to further boost productivity for the Bank and PFAs

NEW GENERATION OF PRODUCTS

NEW SOFTWARE DEVELOPMENT New products with fully digital subscription will be offered through our Assisted Selling platform:

• Decumulation products (FAM Target): for customers who want to progressively invest in multi-thematic/profile funds
• Insurance capital guarantee product: remunerated solution with a more flexible exitwindow vs a traditional insurance product, suitable for customers with short-term horizon
• New multi-thematic funds (FAM Megatrends) to catch secular trends
• Pension funds will be offered directly to customers in the coming months

Fineco will take more directly the driving seat in helping PFAs to develop their customers more efficiently by further extracting value from Big Data Analytics:

• X-Net: continuous improvements of our PFAs' cyborg advisory platform, that will be further enhanced with tailor-made solutions to solve customers' financial gaps
• Co-Working: it will enable our PFAs to share customers (and related fees) with other colleagues and manage more actively a higher number of customers
• Fineco X.0: to further improve the effectiveness of our commercial strategy leveraging on our one single database, allowing the Bank to better target customers with direct campaigns and to fully exploit the growth potential of low-touch clients.

ALREADY DELIVERING

Our very first initiatives confirm the strategy is paying off as shown by strong net sales results of the recently launched FAM Target and FAM Megatrends

Accelerating the conversion rate of customers' deposits towards AuM Fineco Asset Management gaining commercial momentum

FAM Growth potential

• FAM retail class October 2019 Net Sales: 353mln (estimated)
• September and October 2019 best months ever in terms of retail net sales
• FAM Evolution is the best seller product cluster, with net sales structurally towards retail classes
• Increasing penetration in Fineco's AuM net sales thanks to FAM ability to create modern and innovative multimanager solutions

Room to increase FAM's penetration on Fineco Asset under Management stock enhancing the Bank's open architecture platform

1

Smart repricing preserving our best price/quality ratio

Improving an already best-in-class Customer Experience

Continuous upgrade of our banking platform

Brand new dashboard for credit and debit cards, which will also be fully digitalized, and upgrade of mobile payment services

Renewal of our banking homepage

Simplification of our onboarding process via mobile

Two pillars for a smart repricing

25

Sintetico di Costo)

Brokerage: an effective and timely reshape of our offer

In 1H19 our Brokerage business suffered effects coming from the persistently low market volatility and the introduction of ESMA regulation in place starting from July 2018. The business has been completely reshaped.

• New options allowing customers to exploit volatility also when it is low
• Enlargement of our multicurrency basket up to ¹³ currencies
• Optimization of our systematic internalizer with new products
• Repricing of our Forex and 24h brokerage platform
• Coming soon: Asian markets

No.1 Brokerage Platform, multichannel and fully integrated Well-diversified

• Well advanced in-house know-how, optimizing timeto-market and cost efficiency
• In-house back-office and customer care. Business continuity always guaranteed
• Order internalization supporting Brokerage performance: equity, bonds and forex
• Robust risk management, mostly intra-day positions with low risk light traders
• 3Q19 Brokerage best quarter of the last year
• 9M19 almost flat compared to 9M18

Inserire 1H19vs 1H18 -15% e ora stiamo recuperando

Developing opportunities

Fineco UK

• Unique positioning in a highly fragmented market, leveraging on our one-stop solution. Among the most competitive players on Multicurrency account, securities and CFDs
• Investing platform under implementation with M&G Investments already launched, full offer of our open platform expected in the next few months
• Annual cost of the platform: 25bps
• Second phase already started, with more focus on marketing activities on the territory (value proposition / selling points and education on brokerage) and commercial activities
• We are evaluating to open a permanent presence in the UK

Patent Box

• We applied in 2015 for intellectual properties (our platforms internally created and developed) and trademark. Fiscal benefits are for 5 years: 2015, 2016, 2017, 2018 and 2019 as the regime is characterized by a 5-year lock-in period. Intellectual proprieties are renewable according to international guidelines
• We expect to close the agreement with Italian Fiscal Authority for the first 5 years by the end of 2019. Otherwise, we can't exclude the possibility to opt for self-calculation as set by the Decree "Decreto Crescita", definitively approved in law n. 58 of 28 June 2019

Fineco Results

Next steps and developing opportunities

Focus on product areas

3 Pillars: Efficiency, Innovation and Transparency The keys of our strategy, still leading our sustainable growth

Strong focus on IT & Operations, more flexibility, less costs

EFFICIENCY INNOVATION TRANSPARENCY Anticipate new needs simplifying customers' life

We built everything from scratch

Freedom: Freedom to start over «from scratch», build a new bank, the best you can imagine Proprietary back-end: In-house development and automated processes allow an efficient cost structure and fast time to market Excellent offer: Unique customer user experience, top quality in all services

We were true pioneers

Fineco anticipated a main market trend: digitalization Moving customer's focus from proximity to service and quality

We believe in a "Quality" One Stop Solution

Providing all services in a single account is a distinctive feature but it's not enough. Gaining a competitive edge requires high quality on each single service and product

Sustainability as main pillar of growth

(1) Source: Kantar Tri*M Index, May 2019 (2) Apostles clients are very or extremely satisfied and loyal clients, according to Kantar Tri*M Index (3) Source: Reputation Institute, May 2019

Committed to maximize Shareholders' value

Strategy based on healthy growth and sustainability with a long term horizon

	A coherent approach in the whole strategy of growth
HIGH QUALITY	 Clients' acquisition driven by high quality services , transparency and fair pricing  Organic growth key in our strategy without short-term aggressive commercial offers and with zero remuneration on current accounts.  Sustainable investing revenues, almost entirely recurring with only ~2% upfront on total investing fees and no performance fees
LOW RISK	 Safe, robust and low risk Balance Sheet: diversified, highly liquid and low risk asset side combined with valuable and sticky sight deposits  Very low Cost of Risk
FINTECH BANK	 Solid capital position  Operating leverage as distinctive competitive advantage for Fineco  Strong internal IT culture allows us to have a highly scalable business  Internal Big Data Analytics allows us to run a low risk business model and to exploit growth opportunities
	… leading consistent results in every market conditions
Net Profit adjusted (net of DGS) CAGR 40.1 37.3 36.4	(1) , mln +12.8% 74.7 72.5 66.2 63.2 65.6 61.0 60.4 62.6 59.0 55.1 54.8 52.6 51.2 49.8 52.0 51.7 47.8 45.9 47.7 40.8
1Q14 2Q14 3Q14	4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

Safe Balance Sheet: simple, highly liquid and low risk asset side, valuable and sticky deposits

Total assets: 99% not exposed to volatility

Out of 27.8bn, only 0.3bn of Assets valuated at fair value with limited impacts on Equity reserve

(1) Due from banks includes 1.2bn cash deposited at Bank of Italy as of June 2019 and 1.2bn cash and 0.2 bn compulsory reserves deposited at Bank of Italy as of Sept. 2019

• (2) Other refers to tangible and intangible assets, derivatives and other assets
• (3) 13.5bn equal to 12.8bn nominal value, o/w Italy 4.4 bn nominal value
• (4) Other : US, Austria, Belgium, Germany, Poland, Portugal; Covered Bonds

Operating Leverage

A distinctive competitive advantage of Fineco

	IT and back office internally managed, deep internal know-how
	 17% FTEs in IT department, 24% in Back-Office
Platform scalability	 Core system internally managed
	 Internal DWH to fully leverage on Big Data Analytics
and	 Very low IT CAPEX (~10-12 mln per year)
Operating gearing	 Continuous innovation (new apps /features, products/services, initiatives) fully in house developed: higher flexibility, better time to market and lower costs
	 Internal development and implementation of regulatory processes and systems (i.e. Mifid 2) to maintain costs well under control

(1) Net Profit adjusted (see page 38) net of Deposit Guarantee Scheme (2015: -3.1mln net, 2016: -7.1mln net, 2017: -7.1mln net, 2018: -9.6mln net)

Sustainability at the heart of Fineco's business model

Embedding ESG in our Bank's Governance

Our sustainable growth strategy is inspired by principles of the most relevant international organisations, consistent with the achievements of the 17 Sustainable Development Goals (SDGs) of the UN 2030 Agenda.

Appointments and Sustainability Committee established to supervise the Bank's sustainable growth strategy and ESG plans, together with a Sustainability Management Committee

Materiality Matrix defined, to determine the relevant topics for Fineco and its Stakeholders

Our Standard Ethics Rating(2) at "EE" was confirmed in 2019, ^a grade given to sustainable companies with low reputational risk profile and strong prospects for long-term growth

In ²⁰¹⁹ Standard Ethics also assigned us an ESG Award

Continuously updating our ESG offer

21% of our clients' assets in funds are already ESG(3) (5.3bn in Dec18). More than 2,000 funds in our open architecture platform are ESG(2)

Multi-thematic fund launched by FAM

ESG model portfolios launched within our Advice Platform

Green mortgages for the purchase of real estate with energy rating between ^A and ^B

(1) Standard Ethics is an independent agency which assigns Solicited Sustainability Ratings to companies and sovereign issuers. Fineco is included in the Standard Ethics Italian Banks Index© and in the Standard Ethics Italian Index, among the major environmental, social and governance performance indices and benchmarks.

The Standard Ethics Rating is an assessment of sustainability and governance based on the principles and voluntary directions of the United Nations, the Organization for Economic Cooperation and Development (OECD) and the European Union.

Agenda

Fineco Results

Next steps and developing opportunities

Key messages

Focus on product areas

Revenues by Product Area

Well diversified stream of revenues allow the bank to successfully face any market environment

9M19 weight on total revenues for each product area

Managerial Data. Revenues attributable to single each product area, generated by products / services offered to customers according to the link between products and product area. Banking includes revenues generated by direct deposits and credit products. Investing includes revenues generated by asset under management products; Brokerage includes revenues from trading activity.

2018 Revenues recasted for trading profit related to Multicurrency (moved from Banking to Brokerage).

Banking

Sound performance driven by strong volume growth and relentless clients' acquisition, thanks to high quality services and best-in-class customer satisfaction

Managerial Data

2018 Revenues recasted for trading profit related to Multicurrency (moved from Banking to Brokerage).

Brokerage

Revamped Brokerage thanks to review of the offer. Growing market share in Italy and continuous enlargement of product offer

• 9M19 affected by low volatility. We are further diversifying our offer and continuously enlarging our products offer to wellbalance the effect coming from new ESMA regulation, in place since July 2018
• Structural improvement thanks to larger base of clients/higher market share and the enlargement of the products offer
• Continuously increasing market share (i.e. market share on equity traded volumes in Italy at 26.6% in Jun.19(1) , +2.6p.p. vs Jun.18) confirming Fineco as leader in brokerage

Managerial Data

(2) Assosim

2018 Revenues recasted for trading profit related to Multicurrency (moved from Banking to Brokerage).

(1) Volatility calculated as avg weekly volatility of BUND, BTP, SP, EUROSTOXX, MINIDAX, DAX, FIB, MINIFIB, NASDAQ, DOW weighted on volumes related to futures traded by our clients 39

Investing

Successful strategy based on our cyborg advisory approach drove a better asset mix and increasing fees y/y. Very limited upfront fees representing only 2% of investing fees

Managerial Data

40

AuC and Deposits under advisory have been reclassified within AuM in order to have a better representation of the advisory nature of Advice and Plus services

(1) Mainly PFAs annual bonus and new 2018-2020 LTI to PFAs starting from 1Q18

Annex

mln	1Q18	2Q18	3Q18	4Q18	FY18	1Q19	2Q19	3Q19	9M18	9M19
Net interest income	68.9	68.7	69.9	71.1	278.7	70.4	71.4	69.8	207.6	211.6
Net commissions	71.5	74.5	72.7	81.8	300.4	77.4	81.3	84.3	218.7	242.9
Trading profit	14.5	13.1	10.7	5.9	44.2	9.8	8.0	11.6	38.3	29.4
Other expenses/income	0.5	0.1	-0.4	1.7	1.9	0.2	0.3	0.1	0.2	0.7
Total revenues	155.4	156.4	153.0	160.4	625.3	157.7	161.1	165.8	464.8	484.6
Staff expenses	-20.5	-21.0	-23.2	-21.9	-86.6	-21.7	-22.4	-22.5	-64.7	-66.6
Other admin.exp. net of recoveries	-40.8	-37.5	-34.1	-36.3	-148.7	-38.5	-34.4	-29.4	-112.4	-102.3
D&A	-2.3	-2.5	-2.5	-3.1	-10.4	-5.1	-5.4	-5.8	-7.3	-16.3
Operating expenses	-63.6	-61.0	-59.7	-61.4	-245.8	-65.3	-62.3	-57.6	-184.4	-185.2
Gross operating profit	91.8	95.4	93.3	99.1	379.5	92.5	98.8	108.2	280.4	299.4
Provisions	-1.8	-1.9	-15.9	-1.8	-21.4	-1.0	-2.9	-19.8	-19.6	-23.6
LLP	-1.3	0.2	-0.9	-2.3	-4.4	-1.3	1.1	-1.2	-2.1	-1.4
Integration costs	0.0	0.0	0.0	-0.1	-0.1	0.0	0.0	0.0	0.0	0.0
Profit from investments	0.0	5.2	-0.9	-3.2	1.1	-0.7	6.5	0.4	4.3	6.3
Profit before taxes	88.7	98.8	75.6	91.7	354.7	89.5	103.5	87.6	263.0	280.7
Income taxes	-29.7	-32.6	-23.0	-28.2	-113.5	-27.3	-31.7	-26.6	-85.3	-85.5
Net profit for the period	59.0	66.2	52.6	63.5	241.2	62.3	71.8	61.0	177.7	195.2
Normalised Net Income(1)	59.0	66.2	53.6	65.6	244.4	62.6	74.7	60.8	178.8	198.1

Non recurring items (mln, gross)	1Q18	2Q18	3Q18	4Q18	FY18	1Q19	2Q19	3Q19	9M18	9M19
(2) Extraord systemic charges (Trading Profit)	0.0	0.0	0.0	-3.0	-3.0	-0.4	-4.3	0.4	0.0	-4.4
Integration costs	0.0	0.0	0.0	-0.1	-0.1	0.0	0.0	0.0	0.0	0.0
Severance	0.0	0.0	-1.6	0.0	-1.6	0.0	0.0		-1.6	0.0
Total	0.0	0.0	-1.6	-3.1	-4.8	-0.4	-4.3	0.4	-1.6	-4.4

P&L net of non recurring items

mln	1Q18	2Q18	3Q18	4Q18	FY18	1Q19	2Q19	3Q19	9M18	9M19
			Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)
Net interest income	68.9	68.7	69.9	71.1	278.7	70.4	71.4	69.8	207.6	211.6
Net commissions	71.5	74.5	72.7	81.8	300.4	77.4	81.3	84.3	218.7	242.9
Trading profit	14.5	13.1	10.7	8.9	47.3	10.2	12.3	11.2	38.3	33.8
Other expenses/income	0.5	0.1	-0.4	1.7	1.9	0.2	0.3	0.1	0.2	0.7
Total revenues	155.4	156.4	153.0	163.5	628.3	158.2	165.4	165.4	464.8	489.0
Staff expenses	-20.5	-21.0	-21.6	-21.9	-85.0	-21.7	-22.4	-22.5	-63.1	-66.6
Other admin.expenses	-40.8	-37.5	-34.1	-36.3	-148.7	-38.5	-34.4	-29.4	-112.4	-102.3
D&A	-2.3	-2.5	-2.5	-3.1	-10.4	-5.1	-5.4	-5.8	-7.3	-16.3
Operating expenses	-63.6	-61.0	-58.1	-61.4	-244.1	-65.3	-62.3	-57.6	-182.8	-185.2
Gross operating profit	91.8	95.4	94.9	102.1	384.2	92.9	103.1	107.8	282.1	303.8
Provisions	-1.8	-1.9	-15.9	-1.8	-21.4	-1.0	-2.9	-19.8	-19.6	-23.6
LLP	-1.3	0.2	-0.9	-2.3	-4.4	-1.3	1.1	-1.2	-2.1	-1.4
Profit from investments	0.0	5.2	-0.9	-3.2	1.1	-0.7	6.5	0.4	4.3	6.3
Profit before taxes	88.7	98.8	77.2	94.8	359.5	90.0	107.8	87.2	264.7	285.1
Income taxes	-29.7	-32.6	-23.5	-29.2	-115.1	-27.4	-33.1	-26.4	-85.9	-87.0
Net profit adjusted 1	59.0	66.2	53.6	65.6	244.4	62.6	74.7	60.8	178.8	198.1

9M19 P&L FinecoBank and Fineco Asset Management

mln	Fineco Asset Management	FinecoBank Individual	FinecoBank Consolidated
Net interest income	-0	211	211
	1	7	6
Dividends	0	13	0
	0	1	0
Net commissions	46	196	242
	1	8	9
Trading profit	0	29	29
	1	3	4
Other expenses/income	0	0	0
	0	7	7
Total revenues	46	451	484
	1	6	6
Staff expenses	-3	-63	-66
	1	5	6
Other admin.exp. net of recoveries	-2	-100	-102
	3	0	3
D&A	-0	-16	-16
	2	1	3
Operating expenses	-5	-179	-185
	6	6	2
Gross operating profit	40	272	299
	5	0	4
Provisions	0	-23	-23
	0	6	6
LLP	0	-1	-1
	0	4	4
Profit on Investments	0	6	6
	0	3	3
Profit before taxes	5	253	280
	40	3	7
Income taxes	-5	-80	-85
	1	5	5
Net profit for the period	35	172	195
	4	8	2

Details on Net Interest Income

mln	1Q18	Volumes & Margins	2Q18	Volumes & Margins	3Q18	Volumes & Margins	4Q18	Volumes & Margins	FY18	Volumes & Margins	1Q19	Volumes & Margins	2Q19	Volumes & Margins	3Q19	Volumes & Margins	9M18	Volumes & Margins	9M19	Volumes & Margins
Financial Investments	56.9	18,449	57.5	18,887	57.1	18,817	57.7	19,133	229.2	18,822	57.1	19,748	58.0	20,582	55.9	21,714	171.5	18,718	171.0	20,681
Net Margin		1.25%		1.22%		1.20%		1.20%		1.22%		1.17%		1.13%		1.02%		1.23%		1.11%
Gross margin	58.6	1.29%	59.8	1.27%	59.3	1.25%	60.1	1.25%	237.8	1.26%	59.7	1.23%	60.4	1.18%	58.6	1.07%	177.7	1.27%	178.6	1.15%
Security Lending	0.2	804	0.2	726	0.2	753	0.4	743	1.1	756	0.6	836	0.4	386	0.0	0	0.6	761	1.1	407
Net Margin		0.11%		0.10%		0.12%		0.24%		0.14%		0.31%		0.44%		0.00%		0.11%		0.35%
Leverage - Long	2.7	182	2.7	181	3.0	196	3.0	150	11.5	178	2.7	129	3.2	153	3.3	157	8.5	187	9.2	146
Net Margin		6.06%		6.03%		6.11%		7.95%		6.47%		8.45%		8.35%		8.38%		6.07%		8.40%
Lending	9.2	1,854	9.5	2,080	9.9	2,316	10.3	2,472	38.8	2,180	10.5	2,611	10.8	2,754	11.1	2,912	28.6	2,083	32.4	2,759
Net Margin		2.01%		1.84%		1.69%		1.65%		1.78%		1.62%		1.58%		1.51%		1.83%		1.57%
o/w Current accounts 2.4		684	2.6	788	2.8	891	3.0	970	10.8	833	2.9	1,040	3.2	1,112	3.2	1,169	7.8	788	9.3	1,107
Net Margin		1.43%		1.33%		1.23%		1.21%		1.29%		1.14%		1.14%		1.10%		1.32%		1.13%
o/w Cards	1.2	240	1.2	232	1.2	252	1.2	251	4.8	244	1.2	245	1.2	252	1.2	282	3.6	241	3.6	259
Net Margin		2.00%		2.05%		1.93%		1.97%		1.99%		2.00%		1.92%		1.74%		1.99%		1.88%
o/w Personal loans 4.3		370	4.4	394	4.4	411	4.5	427	17.6	400	4.6	441	4.6	448	4.6	457	13.1	391	13.7	449
Net Margin		4.67%		4.45%		4.29%		4.18%		4.39%		4.20%		4.09%		3.98%		4.46%		4.09%
o/w Mortgages	1.3	560	1.4	666	1.4	763	1.6	824	5.7	703	1.8	886	1.9	942	2.0	1,005	4.1	663	5.7	944
Net Margin		0.96%		0.81%		0.75%		0.75%		0.81%		0.80%		0.82%		0.79%		0.83%		0.80%
(1) Other	-0.1		-1.2		-0.3		-0.3		-1.9		-0.6		-1.0		-0.5		-1.6		-2.1
Total	68.9		68.7		69.9		71.1		278.7		70.4		71.4		69.8		207.6		211.6
Gross Margin Cost of Deposits		1.33% -0.03%		1.31% -0.04%		1.29% -0.04%		1.29% -0.04%		1.30% -0.04%		1.26% -0.05%		1.25% -0.04%		1.17% -0.04%		1.31% -0.04%		1.23% -0.04%

Volumes and margins: average of the period Net margin calculated on real interest income and expenses

UniCredit bonds underwritten

	ISIN	Currency	(€ m) Amount	Maturity	Indexation	Spread
1	IT0005010399	Euro	382 5	14-Oct-19	Euribor 1m	2 40%
2	IT0005010324	Euro	382 5	13-Jan-20	Euribor 1m	2 44%
3	IT0005010365	Euro	382 5	10-Apr-20	Euribor 1m	2 47%
4	IT0005010308	Euro	382 5	9-Jul-20	Euribor 1m	2 49%
5	IT0005010381	Euro	382 5	7-Oct-20	Euribor 1m	2 52%
6	IT0005010332	Euro	382 5	6-Jan-21	Euribor 1m	2 54%
7	IT0005010316	Euro	382 5	6-Apr-21	Euribor 1m	2 56%
8	IT0005010340	Euro	382 5	5-Jul-21	Euribor 1m	2 58%
9	IT0005010225	Euro	382 5	18-Oct-21	Euribor 1m	2 60%
10	IT0005040099	Euro	100 0	24-Jan-22	Euribor 1m	1 46%
11	IT0005057994	Euro	200 0	11-Apr-22	Euribor 1m	1 43%
12	IT0005083743	Euro	300 0	28-Jan-22	Euribor 1m	1 25%
13	IT0005106189	Euro	230 0	20-Apr-20	Euribor 1m	0 90%
14	IT0005114688	Euro	180 0	19-May-22	Euribor 1m	1 19%
15	IT0005120347	Euro	700 0	27-Jun-22	Euribor 1m	1 58%
16	IT0005144065	Euro	450 0	14-Nov-22	3m1 Euribor	1 40%
17	IT0005144073	Euro	350 0	15-Nov-21	3m1 Euribor	1 29%
18	IT0005158412	Euro	250 0	23-Dec-22	3m1 Euribor	1 47%
19	IT0005163180	Euro	600 0	11-Feb-23	3m1 Euribor	1 97%
20	IT0005175135	Euro	100 0	24-Mar-23	3m1 Euribor	1 58%
21	IT0005217606	Euro	350 0	11-Oct-23	3m1 Euribor	1 65%
22	IT0005241317	Euro	622 5	2-Feb-24	3m1 Euribor	1 52%
	Total	Euro	7 875 0 ,		Euribor 1m	1 96%

Details on Net Commissions

mln	1Q18	2Q18	3Q18	4Q18	FY18	1Q19	2Q19	3Q19	9M18	9M19
Brokerage	20	20	15	18	74	5	18	20	56	56
	6	1	8	2	7	18	0	0	5	5
o/w
Equity	17	16	13	14	61	15	14	15	47	46
	5	4	1	9	8	6	7	9	0	2
Bond	0	1	0	0	3	0	0	1	2	3
	8	2	6	9	6	9	9	4	7	2
Derivatives	2	2	2	2	10	2	2	2	3	2
	5	7	2	9	2	3	2	7	7	7
commissions(1) Other	-0 1	-0 2	-0 1	-0 5	-0 9	-0 2	0 2	0 0	-0 5	-0 1
Investing	47	49	52	58	206	54	57	58	148	170
	1	5	2	0	8	2	6	3	8	1
o/w
Placement fees	2 5	2 4	1 4	1 4	8 7	1 1	1 3	1 1	6 4	3 6
fees Management	50 2	53 9	54 9	57 0	216 0	57 1	59 7	61 5	159 1	178 3
PFA's:	-4	-5	-3	-0	-14	-3	-4	-3	-13	-10
incentives	8	8	1	4	1	0	3	6	7	9
to
PFA's:	-0	-1	-1	0	-2	-1	0	-0	-2	-0
LTI	9	1	0	0	9	0	8	7	9	9
to
Banking	3	4	4	5	18	4	5	5	12	15
	4	7	5	5	1	5	6	9	6	9
Other	0	0	0	0	0	0	0	0	0	0
	3	3	2	2	9	1	1	1	7	3
Total	71	74	72	81	300	77	81	84	218	242
	5	5	7	8	4	4	3	3	7	9

(1) Other commissions include security lending and other PFA commissions related to AuC

Revenues breakdown by Product Area

mln	1Q18	2Q18	3Q18	4Q18	FY18	1Q19	2Q19	3Q19	9M18	9M19
Net interest income	66 1	67 1	67 0	68 0	268 1	67 6	68 8	67 0	200 1	203 4
Net commissions	3 4	4 7	4 5	5 5	18 1	4 5	5 6	5 9	12 6	15 9
Trading profit	0 0	0 1	0 1	0 0	0 2	-0 1	-0 1	-0 2	0 2	-0 3
Other	0 1	0 2	0 1	0 0	0 4	0 1	0 1	0 1	0 4	0 2
Total Banking	69 6	72 0	71 6	73 4	286 7	72 1	74 3	72 7	213 2	219 2
Net interest income	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
Net commissions	47 1	49 5	52 2	58 0	206 8	54 2	57 6	58 3	148 8	170 1
Trading profit	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
Other	0 0	0 0	0 0	1 7	1 7	0 0	0 0	0 0	0 0	0 0
Total Investing	47 1	49 5	52 2	59 7	208 5	54 2	57 6	58 3	148 8	170 1
Net interest income	3 0	3 0	3 3	3 6	13 0	3 4	3 7	3 4	9 4	10 6
Net commissions	20 6	20 1	15 8	18 2	74 7	18 5	18 0	20 0	56 5	56 5
Trading profit	13 8	12 2	8 2	10 6	44 8	8 2	9 9	11 5	34 2	29 6
Other	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
Total Brokerage	37 5	35 3	27 3	32 4	132 5	30 2	31 6	34 9	100 1	96 7

Managerial Data

IFRS 9 P&L impacts

mln	1Q18	2Q18	3Q18	4Q18	FY18	1Q19	2Q19	3Q19	9M18	9M19
Profit Trading	0 6	0 9	0 9	-3 8	-1 4	0 8	-3 6	0 6	2 3	-2 2
Visa	0 6	0 9	0 9	-0 7	1 6	1 2	0 7	0 2	2 3	2 2
Scheme Voluntary	0 0	0 0	0 0	-3 0	-3 0	-0 4	-4 3	0 4	0 0	-4 4
Loan Loss Provisions	-0 4	2 4	-0 4	-0 6	1 0	-1 0	3 1	-0 0	1 6	2 1
Profit Investments on	0 0	5 3	-0 9	-3 1	1 3	-0 7	6 5	0 4	4 4	6 3
Govies	-0 2	-0 2	-0 1	-0 8	-1 3	0 2	-0 8	-0 1	-0 5	-0 8
UC Bonds	0 2	5 5	-0 8	-2 3	2 6	-0 8	3 7	0 5	4 9	0 7
Total impacts from IFRS 9	0 2	8 6	-0 4	5 -7	0 8	-0 9	5 9	1 1	8 3	6 1

Accounting standard IFRS 9, starting from January 1 st , 2018, introduced a new impairment accounting model for credit exposures and resulted in an extension of the Bank's scope of recognition.

In detail, P&L IFRS 9 impacted:

• Trading Profit: impacts from VISA and Voluntary Scheme valuation
• Loan Loss Provisions: impacts from deposits with UniCredit
• Profit on Investments: valuation on UniCredit Bonds and Government Bonds

IFRS 16 impacts

mln	1Q18	2Q18	3Q18	4Q18	FY18	1Q19	2Q19	3Q19	9M18	9M19
Net interest Income						-0 2	-0 2	-0 2		-0 7
Other Administrative Expenses	-3 1	-3 1	-3 1	-3 4	-12 7				-9 3
offices financial Leasing Reggio Emilia and shops	-2 3	-2 3	-2 3	-2 4	-9 4				-7 0
Leasing Milano headquarter	-0 8	-0 8	-0 8	-0 9	-3 3				-2 3
Write-down/backs and depreciation						-2 2	-2 3	-2 3		-6 8
Leasing Reggio Emilia offices and financial shops						-2 2	-2 3	-2 3		-6 8

Accounting standard IFRS 16, starting from January 1st, 2019, replaced the previous set of international accounting principles and interpretations on leasing and in particular IAS17, so comparison with 2018 is not significant.

In detail, P&L IFRS 16 impacted:

• Net Interest Income: the application of the new accounting standard envisages an impact on NII of -0.7mln following the discounting of the liabilities linked to leasing
• Write-down/backs and depreciation: rents previously accounted in Other Administrative Expenses, following the application of the new accounting standards are now booked in Write-down/backs and Depreciation

Breakdown Total Financial Assets

mln	Mar 18	Jun 18	Sep 18	Dec 18	Mar 19	Jun 19	Sep 19
AUM	33 536 ,	34 496 ,	34 930 ,	33 485 ,	35 988 ,	36 819 ,	38 325 ,
o/w Sicav Funds and	26 666 ,	26 809 ,	26 795 ,	24 853 ,	26 361 ,	26 426 ,	27 477 ,
o/w Insurance	6 395 ,	043 7 ,	355 7 ,	618 7 ,	8 401 ,	9 002 ,	9 369 ,
o/w GPM	1	1	1	1	1	26	55
o/w AuC deposits under advisory +	475	643	779	1 012 ,	1 225 ,	1 365 ,	1 425 ,
o/w in Advice	475	477	494	535	572	600	603
o/w in Plus	0	166	285	477	653	765	822
AUC	13 890 ,	14 366 ,	14 395 ,	13 779 ,	15 187 ,	15 229 ,	15 158 ,
o/w Equity	8 573 ,	8 736 ,	8 846 ,	8 007 ,	9 137 ,	9 207 ,	9 573 ,
o/w Bond	5 298 ,	5 613 ,	5 534 ,	5 759 ,	6 037 ,	6 011 ,	5 575 ,
o/w Other	20	18	15	13	13	12	11
Direct Deposits	20 624 ,	20 968 ,	21 536 ,	22 069 ,	22 941 ,	23 844 ,	25 099 ,
o/w Sight	20 616 ,	20 962 ,	21 532 ,	22 066 ,	22 938 ,	23 842 ,	25 098 ,
o/w Term	7	6	4	3	2	2	2
Total	050 68 ,	69 830 ,	70 861 ,	69 333 ,	74 116 ,	75 892 ,	583 78 ,

o/w Guided Products & Services	21 425 ,	22 199 ,	22 879 ,	22 370 ,	24 301 ,	25 354 ,	26 697 ,
o/w TFA Private Banking	26 109 ,	26 992 ,	27 474 ,	25 830 ,	29 041 ,	29 970 ,	31 891 ,

AuC and Deposits under advisory have been reclassified within AuM in order to have a better representation of the advisory nature of Advice and Plus services

Balance Sheet

mln	Mar 18	Jun 18	Sep 18	Dec 18	1st Jan 19	Mar 19	Jun 19	Sep 19
(1) Due from Banks	3 488 ,	3 224 ,	3 398 ,	3 059 ,	3 059 ,	3 807 ,	1 941 ,	2 033 ,
Customer Loans	2 318 ,	2 633 ,	2 736 ,	2 955 ,	2 955 ,	3 029 ,	3 409 ,	3 568 ,
Financial Assets	17 106 ,	17 199 ,	17 678 ,	18 238 ,	18 238 ,	19 012 ,	19 920 ,	21 532 ,
Tangible and Intangible Assets	112	112	112	115	180	243	242	247
Derivatives	0	3	0	8	8	29	49	72
Other Assets	211	254	259	357	357	259	274	308
Total Assets	235 23 ,	425 23 ,	24 183 ,	24 733 ,	24 797 ,	26 380 ,	25 835 ,	27 760 ,
Customer Deposits	20 916 ,	21 197 ,	21 827 ,	22 273 ,	22 333 ,	23 311 ,	24 140 ,	25 429 ,
Due Banks to	960	908	1 000 ,	1 010 ,	1 014 ,	1 605 ,	207	188
Derivatives	0	2	0	8	8	32	84	156
Funds and other Liabilities	367	445	452	466	466	393	477	698
Equity	992	874	904	976	976	1 040 ,	928	1 289 ,
Total Liabilities and Equity	23 235 ,	23 425 ,	24 183 ,	24 733 ,	24 797 ,	26 380 ,	25 835 ,	27 760 ,

IFRS16: the Bank decided to not disclose comparative data from previous periods, as allowed by new accounting standards.

No effect was recorded in net equity on the date of first application. This is because for the purposes of FTA, the financial liabilities for leasing were valued and recorded at the current value of the residual future payments on the transition date, and the corresponding assets consisting of the right of use were valued at the amount of the financial liability plus the advanced leasing payments recorded in the financial situation immediately prior to the date of initial application (31st December, 2018).

(1) Due from banks includes 1.2bn cash deposited at Bank of Italy as of June 2019 and 1.2bn cash and 0.2 bn compulsory reserves deposited at Bank of Italy as of Sept. 2019

Main Financial Ratios

	Mar	Jun	Sep	Dec	Mar	Jun	Sep
	18	18	18	18	19	19	19
TFA/ (mln) PFA PFA (1)	22 5	23 0	23 4	23 2	25 0	25 6	26 6
Guided Products / TFA (2)	31%	32%	32%	32%	33%	33%	34%
(3) Cost / income Ratio	41 0%	40 0%	39 3%	38 9%	41 3%	39 4%	37 9%
CET	20	20	20	21	21	17	17
1	2%	7%	5%	2%	0%	8%	4%
Ratio
Adjusted	35	37	35	35	30	33	27
RoE	1%	0%	2%	7%	8%	6%	0%
(4)
Leverage	15%	6	6	5	5	2	3
Ratio	7	51%	00%	55%	11%	89%	85%
(5)

(1) PFA TFA/PFA: calculated as end of period Total Financial Assets related to the network divided by number of PFAs eop

(2) Calcuated as Guided Products eop divided by Total Financial Assets eop

(3) C/I ratio net of non recurring items (see page 40) calculated as Operating Costs divided by Revenues net of non recurring items

(4) RoE: Net Profit, net of non recurring items (see page 40) divided by the average book shareholders' equity for the period (excluding dividends expected to be distributed and the revaluation reserves)

(5) Leverage ratios until Mar.19 are calculated on Individual basis, according to the EC Delegated Act 2015/62 regarding the exclusion of intra-group

High-value deposit base confirms strong resilience over time

• Double-digit deposit growth throughout the last 10 years (+10.7% CAGR), with no impacts from 2008 financial crisis and 2011 sovereign debt crisis
• Strong resilience during periods of stress/crisis: 912mln worst liquidity outflow on April 10th , 2012
• High-value deposit base: most of our deposits is transactional liquidity. Customer rate: zero; cost of funding: 4bps
• 83% of total sight deposits: core liquidity(1) in a stressed scenario according to clients' behavioral model
• Structural trends in place in Italy combined with best in class banking platform and high-quality services will continue to support our deposit growth

Headquarters acquisition - details

Deal

• January ³¹st 2019: completed the headquarters acquisition in Milan from Immobiliare Stampa S.C.p.A. (controlled by Banca Popolare di Vincenza S.p.A. in compulsory winding up)
• Price of the deal: €62mln
• Rationales: favourable conditions of the deal, expected running cost savings and limited additional impacts on capital ratios, given the introduction of new IFRS 16 accounting standard (leasing) in place since January 2019

Capital ratios impacts

• With the new IFRS ¹⁶, leasing value impacts RWA and capital ratios
• Additional expected impact (building acquisition versus recognition of leasing value): -34bps on CET1 ratio, absolutely manageable considering our rock-solid capital position

Fineco Asset Management in a nutshell AUM at €12.6bn, of which €7.4bn retail classes

Quality improvement and time to market for customers and distribution needs

Several efficiencies leveraging on a vertically integrated business model combined with the strong operating efficiency which is in Fineco's DNA

Better risk management thanks to the look-through on daily basis on funds' underlying assets

Win-win solution: lower price for clients, higher margins

Cooperative Compliance Scheme:

FinecoBank admitted in the Cooperative Compliance Scheme with the Revenue Agency

In July 2017, FinecoBank has been admitted to the Cooperative Compliance Scheme(1) , which allows the Bank to take part to a register of taxpayers (published on the Revenue Agency's official website) operating in full transparency with the Italian tax Authorities. This is a fundamental milestone for our Bank

Until now, only few companies have been admitted in Italy, of which among Banks: Fineco, UniCredit, Intesa and BPER

Key requirements to be admitted:

• subjective and objective requirements (resident legal entities with specific sizing thresholds)
• effective system in place for identifying, measuring, managing and controlling tax risk in line with the "essential" requirements of the Tax Control Framework envisaged by law, Revenue Agency ordinances and by the OECD documents published on the subject

Several advantages:

• closer relationship of trust and cooperation with the Revenue Agency
• Increase of the level of certainty on significant tax issues under conditions of full transparency
• agreed and preventive risk assessment of situations likely to generate tax risks
• fast track ruling

Additional Tier 1

First public placement successfully issued with strong demand (9x the offer)

€200 mln AT1 issued in January 2018 €300 mln AT1 issued in July 2019

• On January 23rd , 2018 the Bank issued a €200mln perpetual AT1
• Coupon fixed at 4.82% for the initial 5.5 years
• Private placement, fully subscribed by UniCredit SpA
• Semi-annual coupon

• Coupon (net of taxes) will impact directly Equity reserves

• On July 11th , 2019 Fineco issued a €300mln perpetual AT1 in order to maintain the Leverage Ratio above 3.5% after the exit from the UniCredit Group

• Coupon fixed at 5.875% (initial guidance at 6.5%) for the initial 5.5 years
• Public placement, with strong demand (9x, €2.7bn), listed in Euronext Dublin
• Semi-annual coupon
• Coupon (net of taxes) will impact directly Equity reserves
• The instrument was assigned a BB- rating by S&P

UniCredit and Intesa AT1 yield at first call date