FinecoBank

Investor Presentation • Aug 5, 2019

2Q19 Results

Alessandro Foti, CEO and General Manager

Milan, August 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.
• 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

• Following the deconsolidation from the UniCredit Group on May 10th , 2019 Fineco is now an independent public company
• Fineco exit from the UniCredit Group has no implications on its strategy and business model: Fineco had enjoyed limited synergies with UniCredit and, as a fully independent company, it will continue to focus on maximizing shareholders' value via healthy, sustainable and organic growth

Full operational continuity and no material economic impacts

• 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 (see next slide)
• These transitional arrangements cover the liquidity investment strategy, the trademark and existing services provided by UniCredit
• Fineco's full independence has no implications for its customers and no material impacts on its capital and liquidity strength, nor on its profitability
• 2Q19 reflects the main effects coming from the deconsolidation, in particular:
  • release of ~ €10 mln of provisions following the collateralization of UniCredit exposure
  • different calculation methodology leading to an increase in the operational risks and to a decrease in CET1 to 17.8%, still at very solid levels. The decrease will partially be absorbed as soon as the Bank will adopt the Standardized Model in the coming months
  • Leverage ratio pro-forma at 4.0% after the issuance of €300mln AT1

Transitional Arrangements with UniCredit Group

Liquidity Investment Strategy

• No change in the investment policy previously communicated to the market, envisaging an increasing diversification of financial investments as the existing stock of UniCredit bonds, currently at around €8 bn(1) , progressively runs off by 2024
• UniCredit has granted a financial collateral in favour of Fineco in order to secure the existing credit risk exposures towards UniCredit and neutralize the capital impacts and risk concentration limits

Trademark

• UniCredit and Fineco have also undertaken to maintain in force the existing trademark license agreement, which envisages Fineco's right to use such trademark at the current conditions
• Fineco has the option to buy the brand in the future at fixed strike prices in a number of given call option windows up to 2032, with a first window in 2019
• In particular, assuming Fineco was to repurchase the trademark at the pre-agreed strike price for that specific period, the exercise of the call option would not be expected to have a material impact on its capital position

Intragroup Services

• UniCredit will continue to provide, on an interim basis, certain services to Fineco in line with the previous operations and terms in order to allow Fineco to act in full operational continuity, including, for example, smart ATMs and other administrative services
• The contract for customers' access to banking services through smart ATMs and physical branches has been extended for 20 years at market conditions agreed time by time

Agenda

Key messages

Developing opportunities and next step

Focus on product areas

5

Executive Summary

• 1H19 adjusted net profit(1) at 137.3mln, best semester ever, up y/y (+9.7% y/y) confirming the sustainability of a business model able to deliver consistent results in every market condition
• 1H19 growing adjusted revenues(1) (+3.8% y/y) supported by Investing area (+15.8% y/y) with management fees up +12.2% y/y and Banking area (+3.4% y/y) thanks to high quality volume growth in deposits and lending despite lower contribution from Brokerage (-15.1% y/y) due to lower volatility and increased regulation.
• 1H19 Operating Costs well under control at 127.5mln, increasing by 2.3% y/y due to higher staff costs. C/I ratio at 39.4%, -0.6p.p. y/y, confirming operating leverage as a key strength of the Bank
• Strong and safe capital position: CET1 ratio transitional at 17.8%, and TCR transitional at 24.3%, 33.9% pro-forma post 300mln AT1 issuance
• 1H19 commercial activity confirms its robustness with solid and high quality results in net sales, assets and clients. Asset mix coherent with a more complex environment
  • Net sales at 3.3bn, of which 1.6 bn (+13% y/y) in Guided Products & Services
  • Total Financial Assets at 75.9bn (+9% y/y)
  • Guided Products & Services penetration rate on AuM stock up to 69% (+5 p.p. y/y)
  • More than 1,300mln clients (+6% y/y)
• On 4 th July 2019 Fineco was assigned a 'BBB/A-2' rating by S&P Global Ratings

Results

1H19 adj. Net Profit above 137mln, best semester ever, +9.7% y/y boosted by diversified revenues growth and C/I ratio at 39%, down ~0.6p.p. y/y

(1) 1H19 non recurring items: Voluntary Scheme: -4.8mln gross, -3.2mln net (1Q19: -0.4mln gross, -0.3mln net; 2Q19: -4.3mln gross, -2.9mln net) (2) Adj. Cost/Income and adj. RoE calculated net of non recurring items. See page 44 for details.

Net interest income (1/2)

Increasing NII (+3.0% 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 47 for details

(3) Lending: only interest income (4) Gross margins: interest income related to financial investments, lending, leverage, security lending on interest-earning assets 8

Net interest income (2/2)

Further improvements for a diversified asset side.

Sensitivity analysis +100bps / -100bps parallel shift: +119mln NII / -108mln NII

UC bonds and Govies run-offs

-100 bps parallel shift (1M Eur): -108mln less NII

Commissions and Trading Income

Fees and commissions grew +8.7% y/y. Sustainable growth generating recurring revenues, with Management fees up +12.2% y/y and very limited upfront fees

(11H19 non recurring items: Voluntary Scheme: -4.8mln gross, -3.2mln net (1Q19: -0.4mln gross, -0.3mln net; 2Q19: -4.3mln gross, -2.9mln net)

10 (2) Volatility calculated as average weekly volatily of BUND, BTP, SP, EUROSTOXX, MINIDAX, DAX, FIB, MINIFIB, NASDAQ, DOW weighted on volumes related to futures traded by our clients

Costs

Cost efficiency and operating leverage confirmed in our DNA

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

(2) 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 page 52

11

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

(1) Current accounts/overdraft Include Lombard loans

(2) It also includes reverse repos (166 mln in June 2019 vs. 145 mln in Mar.19 and 201 mln in Jun.18) and Other loans including current receivables associated with the provisions of financial services (95mln in Jun.19 vs 87mln in Mar.19 vs 101mln in Jun.18), collateral deposits and initial and variation margins (260mln in Jun.19 vs 99mln in Mar.18 vs 79mln in Jun.18), bad loans (1.7mln in Jun.19 vs. 1.6 mln in Mar.19 vs 1.6mln in Jun.18), other (-1.7mln in Jun.19 vs -3.3mln in Mar.19 vs -1.8mln in Jun.19)

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

Lending

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

(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 on own funds and supervisory ratios as of June 2019 are calculated on a Consolidated basis as, following the deconsolidation from the UniCredit Group, the Bank is required to report the own funds and the supervisory ratios on a consolidated basis as Parent Company of the FinecoBank Banking Group. Data until March 2019 were determined on individual basis

(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 June 30, 2019 was calculated by adopting a Margin of Conservativism (MoC)

(3) Following the issuance of 300mln AT1 on July 11th, 2019

14

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

TFA

Relentless TFA growth thanks to a healthy expansion in net sales. Guided products & Services increased at 69% of total AuM

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

17(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 1H19 net sales growth on the wave of structural trends in place despite a complex environment. Asset mix returning into AuM with more conservative solutions

18AuC 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

Agenda

Fineco Results

Developing opportunities and next step

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

22

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
	 Clients' acquisition driven by high quality services , transparency and fair pricing
HIGH QUALITY	 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
	 Solid capital position
	 Operating leverage as distinctive competitive advantage for Fineco
FINTECH	 Strong internal IT culture allows us to have a highly scalable business
BANK	 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
	(1)

(1) Net Profit adjusted (net of DGS) , mln
CAGR
+14.1%
61.0 60.4 59.0 55.1 54.8 51.2 52.0 51.7 52.6 47.8 47.7 49.8 45.9 40.8 37.3 40.1 36.4	74.7 66.2 65.6 63.2 62.6
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18	2Q18 3Q18 4Q18 1Q19 2Q19

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

⁽²⁾ pro-forma following the issuance of 300mln AT1 in July 11th, 2019

(3) NSFR as of Mar.19

Total assets: 99% not exposed to volatility

Out of 25.8bn, only 0.3bn of Assets valuated at fair value with limited impacts on Equity reserve

(1) Due from banks includes 2.1bn current accounts (immediate available liquidity) and 1.7bn term deposits as of March 2019; 1.2bn cash deposited at Bank of Italy as of June 2019

(2) Other refers to tangible and intangible assets, derivatives and other assets

• (3) 11.5bn equal to 11.0bn nominal value, o/w Italy 3.7 bn nominal value
• (4) Other : US, Austria, Belgium, Germany, Poland; 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)

Dealing with pressure on margins in a pro-active way

Increase PRODUCTIVITY Continuous innovation leveraging on our best-in-class internal IT culture and Big Data Analytics to be recognized by clients as a premium brand. (Cyborg-advisory approach, X-Net platform, Plus advisory etc).

Strong opportunities in enlarging the actively managed clients thanks to our Cyborg Advisory approach and advisory platforms. +11.3% y/y total assets per PFA of which +9.2% y/y AuM and +16.7% y/y guided products and services. Net sales from existing clients almost doubled in the last 2 years. New platform to further boost productivity of the Bank

Further increase of our operational efficiency through Fineco Asset Management , being in control of the full AuM value chain for excellent quality and efficiency.

Brand new portfolio solutions and new generation of passive strategies with attractive margins completely developed in house by FAM.

1

2

Continuous innovation on usability and front-end efficiency to deliver distinctive products and services

Improve QUALITY OF SERVICES

INVESTING

Advanced reporting to improve usability (X-Net evolution, full access to Advice and Plus also from mobile with customizable widgets)

Launch of new decumulation product FAM Target and new multi-thematic fund FAM Megatrend

Monitoring of Advice service more easy and flexible

Continuous evolution of Plus

BROKERAGE

Continuous enlargement of products and markets (i.e. widening of multicurrency and option offer)

Dedicated offer to professional clients: full operative on binary options, direct access to professional trading desk

BANKING

1

Instant payments through web and mobile

Flexible mortgages combining fixed and floating rates according with clients needs

Instant approval on personal loans leveraging on Big Data Analytics

Continuous evolution of Lombard loans more flexible and with no operational impacts for clients

(1)

97% CUSTOMER SATISFACTION(1)

with 67% «Apostles(2)» clients vs 42% of banking system

Continuously increase of quality and productivity of the network

Cross selling and clients' profile

Fineco Asset Management in a nutshell AUM at €11.9bn, of which €6.8bn 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

Increase OPERATIONAL EFFICIENCY

3

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.

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

Key messages

Developing opportunities and next step

Focus on product areas

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
• ISA and multi-brand funds under implementation
• Second phase already started, with more focus on marketing activities on the territory (value proposition / selling points and education on brokerage) and commercial activities

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.

Next step: New platforms to further boost productivity of the Bank (1/3) Third evolutionary step in Fineco's disruptive growth story

Our unique competitive advantage Why disruptive?

• Best-in-class technology resulting from strong internal IT culture: one single database containing all data, allowing us to have an accurate idea of clients' needs

• PFAs used to technology with a cyborg advisory approach

• We are the only one player able to combine cyborg advisory approach with Big Data analytics

• The new platforms allow to better exploit the potential of growth of assets and clients and at the same time to better serve them

PFAs' productivity further strenghtened through the Assisted Selling Platform and Co-working Platform

Next step: New platforms to further boost productivity of the Bank (2/3) Boosting our PFAs' efficiency and productivity through Big Data Analytics

Assisted Selling Platform

• X-Net, Fineco's cyborg advisory platform for our PFAs, will be further empowered with customers' financial gaps
• The Bank will provide its PFAs with tailor-made solutions to solve customers' financial gaps (e.g. Credit Lombard, pension funds, building blocks based on risk-profile)
• Efficiency and time-saving for PFAs: it will be easier to approach new customers and to manage them (e.g. automatic rebalancing of funds of funds to keep them on the efficient frontier)
• The project will start in 2H19 and the new platform is expected to be launched by the beginning of 2020
• We will start testing the new platform with Credit Lombard in the coming months

Co-Working Platform

• The platform will be integrated in X-Net and will further improve productivity by enabling our PFAs to share customers (and related fees) with other colleagues
• Accelerator for our Assisted Selling Platform as it will allow our PFAs to manage more actively a higher number of customers
• It will represent a further boost to develop Private Banking customers, as they could be covered by more PFAs with a wider set of competences
• Expected launch: end of 2019

Next step: New platforms to further boost productivity of the Bank (3/3) The Assisted Selling Platform - details

PFA X-Net Platform

Agenda

Fineco Results

Key messages

Developing opportunities and next step

Focus on product areas

Revenues by Product Area

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

1H19 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

1H19 Brokerage performance affected by low volatility in the period. Growing market share in Italy and continuous enlargement of product offer

• 1H19 affected by low volatility. We are further diversifying our offer and continuously enlarging our products offer to well-balance 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

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

42

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

P&L

mln	1Q18	2Q18	3Q18	4Q18	FY18	1Q19	2Q19	1H18	1H19
Net interest income	68 9	68 .7	69 9	71 1	278 .7	70 4	71 4	137 .7	141 8
Net commissions	71 .5	74 .5	72 .7	81 8	300 4	77.4	81 3	146 0	158 6
Trading profit	14 .5	13 1	10 .7	5.9	44 2	9 8	8 0	27 6	17 8
Other expenses/income	0 .5	0 1	-0 4	1 .7	1 9	0 2	0 3	0 6	0 .5
Total revenues	155.4	156.4	153.0	160.4	625.3	157.7	161.1	311.8	318.8
Staff expenses	-20 .5	-21 0	-23 2	-21 9	-86 6	-21 .7	-22 4	-41 .5	-44 1
Other admin of recoveries .exp. net	-40 8	-37 .5	-34 1	-36 3	-148 .7	-38 .5	-34 4	-78 3	-72 9
D&A	-2 3	-2 .5	-2 .5	-3 1	-10 4	-5.1	-5.4	-4 8	-10 .5
Operating expenses	-63.6	-61.0	-59.7	-61.4	-245.8	-65.3	-62.3	-124.6	-127.5
Gross operating profit	91.8	95.4	93.3	99.1	379.5	92.5	98.8	187.2	191.3
Provisions	-1 8	-1 9	-15 9	-1 8	-21 4	-1 0	-2 9	-3 .7	-3 8
LLP	-1 3	0 2	-0 9	-2 3	-4 4	-1 3	1 1	-1 2	-0 1
Integration costs	0 0	0 0	0 0	-0 1	-0 1	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	5.2	5.8
Profit before taxes	88.7	98.8	75.6	91.7	354.7	89.5	103.5	187.5	193.1
Income taxes	-29 .7	-32 6	-23 0	-28 2	-113 .5	-27 3	-31 .7	-62 3	-59 0
profit for period Net the	59.0	66.2	52.6	63.5	241.2	62.3	71.8	125.2	134.1
Income(1) Normalised Net	59.0	66.2	53.6	65.6	244.4	62.6	74.7	125.2	137.3

Non recurring items (mln, gross)	1Q18	2Q18	3Q18	4Q18	FY18	1Q19	2Q19	1H18	1H19
(2) Extraord systemic charges (Trading Profit)	0 0	0 0	0 0	-3 0	-3 0	-0 4	-4 3	0 0	-4 8
Integration costs	0 0	0 0	0 0	-0 1	-0 1	0 0	0 0	0 0	0 0
Severance	0 0	0 0	-1 6	0 0	-1 6	0 0	0 0
Total	0.0	0.0	-1.6	-3.1	-4.8	-0.4	-4.3	0.0	-4.8

P&L net of non recurring items

mln	1Q18	2Q18	3Q18 (1) Adj	4Q18 (1) Adj	FY18 . (1) Adj	1Q19 (1) Adj	2Q19 Adj (1)	1H18	1H19 (1)
Net interest income	68 9	68 7	69 9	71 1	278 7	70 4	71 4	137 6	Adj 141 8
Net commissions	71 5	74 5	72 7	81 8	300 4	77 4	81 3	146 0	158 6
Trading profit	14 5	13 1	10 7	8 9	47 3	10 2	12 3	27 6	22 6
Other expenses/income	0 5	0 1	-0 4	1 7	1 9	0 2	0 3	0 6	0 5
Total revenues	155 4	156 4	153 0	5 163	628 3	158 2	165 4	311 8	5 323
Staff expenses	-20 5	-21 0	-21 6	-21 9	-85 0	-21 7	-22 4	-41 5	-44 1
Other admin .expenses	-40 8	-37 5	-34 1	-36 3	-148 7	-38 5	-34 4	-78 3	-72 9
D&A	-2 3	-2 5	-2 5	-3 1	-10 4	1 -5	4 -5	-4 8	-10 5
Operating expenses	-63 6	-61 0	-58 1	-61 4	-244 1	-65 3	-62 3	-124 6	-127 5
Gross operating profit	91 8	95 4	94 9	102 1	384 2	92 9	103 1	187 2	196 0
Provisions	-1 8	-1 9	-15 9	-1 8	-21 4	-1 0	-2 9	-3 7	-3 8
LLP	-1 3	0 2	-0 9	-2 3	-4 4	-1 3	1 1	-1 2	-0 1
Profit from investments	0 0	5 2	-0 9	-3 2	1 1	-0 7	6 5	5 2	5 8
Profit before taxes	88 7	98 8	2 77	94 8	359 5	90 0	107 8	187 5	197 8
Income taxes	-29 7	-32 6	-23 5	-29 2	-115 1	-27 4	-33 1	-62 3	-60 5
1 Net profit adjusted	59 0	66 2	53 6	65 6	244 4	62 6	74 7	125 2	137 3

1H19 P&L FinecoBank and Fineco Asset Management

mln	Fineco Asset Management	FinecoBank Individual	FinecoBank Consolidated
Net interest income	0	141	141
	0	8	8
Dividends	0	13	0
	0	1	0
Net commissions	29	128	158
	8	8	6
Trading profit	0	17	17
	0	8	8
Other expenses/income	0	0	0
	0	6	5
Total revenues	29	302	318
	9	1	8
Staff expenses	-2	-41	-44
	2	9	1
Other admin.exp. net of recoveries	-1	-71	-72
	5	4	9
D&A	-0	-10	-10
	1	4	5
Operating expenses	-3	-123	-127
	8	8	5
Gross operating profit	26	178	191
	1	3	3
Provisions	0	-3	-3
	0	8	8
LLP	0	-0	-0
	0	2	1
Profit on Investments	0	5	5
	0	8	8
Profit before taxes	26	180	193
	1	1	1
Income taxes	-3	-55	-59
	3	7	0
Net profit for the period	22	124	134
	8	4	1

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	1H18	Volumes & Margins	1H19	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	114.5	18,668	115.1	20,165
Net Margin		1.25%		1.22%		1.20%		1.20%		1.22%		1.17%		1.13%		1.24%		1.15%
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%	118.4	1.28%	120.0	1.20%
Security Lending	0.2	804	0.2	726	0.2	753	0.4	743	1.1	756	0.6	836	0.4	386	0.4	765	1.1	611
Net Margin		0.11%		0.10%		0.12%		0.24%		0.14%		0.31%		0.44%		0.11%		0.36%
Leverage - Long	2.7	182	2.7	181	3.0	196	3.0	150	11.5	178	2.7	129	3.2	153	5.5	182	5.9	141
Net Margin		6.06%		6.03%		6.11%		7.95%		6.47%		8.45%		8.35%		6.05%		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	18.7	1,967	21.3	2,683
Net Margin		2.01%		1.84%		1.69%		1.65%		1.78%		1.62%		1.58%		1.92%		1.60%
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	5.0	736	6.1	1,076
Net Margin		1.43%		1.33%		1.23%		1.21%		1.29%		1.14%		1.14%		1.38%		1.14%
o/w Cards	1.2	240	1.2	232	1.2	252	1.2	251	4.8	244	1.2	245	1.2	252	2.4	236	2.4	248
Net Margin		2.00%		2.05%		1.93%		1.97%		1.99%		2.00%		1.92%		2.02%		1.96%
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	8.6	382	9.1	444
Net Margin		4.67%		4.45%		4.29%		4.18%		4.39%		4.20%		4.09%		4.55%		4.15%
o/w Mortgages	1.3	560	1.4	666	1.4	763	1.6	824	5.7	703	1.8	886	1.9	942	2.7	613	3.7	914
Net Margin		0.96%		0.81%		0.75%		0.75%		0.81%		0.80%		0.82%		0.88%		0.81%
(1) Other	-0.1		-1.2		-0.3		-0.3		-1.9		-0.5		-1.0		-1.4		-1.6
Total	68.9		68.7		69.9		71.1		278.7		70.4		71.4		137.6		141.8
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%		1.32% -0.04%		1.26% -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	IT0005010282	Euro	382 5	15-Jul-19	Euribor 1m	2 37%
2	IT0005010399	Euro	382 5	14-Oct-19	Euribor 1m	2 40%
3	IT0005010324	Euro	382 5	13-Jan-20	Euribor 1m	2 44%
4	IT0005010365	Euro	382 5	10-Apr-20	Euribor 1m	2 47%
5	IT0005010308	Euro	382 5	9-Jul-20	Euribor 1m	2 49%
6	IT0005010381	Euro	382 5	7-Oct-20	Euribor 1m	2 52%
7	IT0005010332	Euro	382 5	6-Jan-21	Euribor 1m	2 54%
8	IT0005010316	Euro	382 5	6-Apr-21	Euribor 1m	2 56%
9	IT0005010340	Euro	382 5	5-Jul-21	Euribor 1m	2 58%
10	IT0005010225	Euro	382 5	18-Oct-21	Euribor 1m	2 60%
11	IT0005040099	Euro	100 0	24-Jan-22	Euribor 1m	1 46%
14	IT0005057994	Euro	200 0	11-Apr-22	Euribor 1m	1 43%
15	IT0005083743	Euro	300 0	28-Jan-22	Euribor 1m	1 25%
16	IT0005106189	Euro	230 0	20-Apr-20	Euribor 1m	0 90%
17	IT0005114688	Euro	180 0	19-May-22	Euribor 1m	1 19%
18	IT0005120347	Euro	700 0	27-Jun-22	Euribor 1m	1 58%
19	IT0005144065	Euro	450 0	14-Nov-22	3m(1) Euribor	1 40%
20	IT0005144073	Euro	350 0	15-Nov-21	3m(1) Euribor	1 29%
21	IT0005158412	Euro	250 0	23-Dec-22	3m(1) Euribor	1 47%
22	IT0005163180	Euro	600 0	11-Feb-23	3m(1) Euribor	1 97%
23	IT0005175135	Euro	100 0	24-Mar-23	3m(1) Euribor	1 58%
24	IT0005217606	Euro	350 0	11-Oct-23	3m(1) Euribor	1 65%
25	IT0005241317	Euro	622 5	2-Feb-24	3m(1) Euribor	1 52%
	Total	Euro	8 257 5 ,		Euribor 1m	1 98%

Details on Net Commissions

mln	1Q18	2Q18	3Q18	4Q18	FY18	1Q19	2Q19	1H18	1H19
Brokerage	20.6	20.1	15.8	18.2	74.7	18.5	18.0	40.7	36.5
o/w
Equity	17.5	16.4	13.1	14.9	61.8	15.6	14.7	33.9	30.3
Bond	0.8	1.2	0.6	0.9	3.6	0.9	0.9	2.0	1.8
Derivatives	2.5	2.7	2.2	2.9	10.2	2.3	2.2	5.1	4.5
Other commissions(1)	-0.1	-0.2	-0.1	-0.5	-0.9	-0.2	0.2	-0.4	0.0
Investing	47.1	49.5	52.2	58.0	206.8	54.2	57.6	96.6	111.8
o/w
Placement fees	2.5	2.4	1.4	1.4	7.8	1.1	1.3	5.0	2.5
Management fees	50.2	53.9	54.9	57.0	216.0	57.1	59.7	104.1	116.8
to PFA's: incentives	-4.8	-5.8	-3.1	-0.4	-14.1	-3.0	-4.3	-10.6	-7.3
to PFA's: LTI	-0.9	-1.1	-1.0	0.0	-2.9	-1.0	0.8	-1.9	-0.2
Banking	3.4	4.7	4.5	5.5	18.1	4.5	5.6	8.1	10.0
Other	0.3	0.3	0.2	0.2	0.9	0.1	0.1	0.6	0.2
Total	71.5	74.5	72.7	81.8	300.4	77.4	81.3	146.0	158.6

(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	1H18	1H19
Net interest income	66 1	67 1	67 0	68 0	268 1	67 6	68 8	133 1	136 4
Net commissions	3 4	4 7	4 5	5 5	18 1	4 5	5 6	8 1	10 0
Trading profit	0 0	0 1	0 1	0 0	0 2	-0 1	-0 1	0 1	-0 2
Other	0 1	0 2	0 1	0 0	0 4	0 1	0 1	0 3	0 2
Total Banking	69 6	72 0	71 6	73 4	286 7	72 1	74 3	141 6	146 5
Net interest income	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	96 6	111 8
Trading profit	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
Investing Total	47 1	49 5	52 2	59 7	208 5	54 2	57 6	96 6	111 8
Net interest income	3 0	3 0	3 3	3 6	13 0	3 4	3 7	6 1	7 2
Net commissions	20 6	20 1	15 8	18 2	74 7	18 5	18 0	40 7	36 5
Trading profit	13 8	12 2	8 2	10 6	44 8	8 2	9 9	26 0	18 1
Other	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	72 8	61 8

Managerial Data

IFRS 9 P&L impacts

mln	1Q18	2Q18	3Q18	4Q18	FY18	1Q19	2Q19	1H18	1H19
Trading Profit	0 6	0 9	0 9	-3 8	-1 4	0 8	-3 6	1 5	-2 8
Visa	0 6	0 9	0 9	-0 7	1 6	1 2	0 7	1 5	1 9
Voluntary Scheme	0 0	0 0	0 0	-3 0	-3 0	-0 4	-4 3	0 0	-4 8
Loan Loss Provisions	-0 4	2 4	-0 4	-0 6	1 0	-1 0	3 1	2 0	2 1
Profit Investments on	0 0	3 5	-0 9	-3 1	1 3	-0 7	6 5	3 5	8 5
Govies	-0 2	-0 2	-0 1	-0 8	-1 3	0 2	-0 8	-0 4	-0 7
UC Bonds	0 2	5 5	-0 8	-2 3	2 6	-0 8	3 7	5 7	6 5
Total impacts from IFRS 9	0 2	8 6	-0 4	5 -7	0 8	-0 9	5 9	8 8	5 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	1H18	1H19
Net interest Income						-0 2	-0 2		-0 4
Other Administrative Expenses	-3 1	-3 1	-3 1	-3 4	-12 7			-6 2
Leasing Reggio Emilia offices and financial shops	-2 3	-2 3	-2 3	-2 4	-9 4			-4 7
Leasing Milano headquarter	-0 8	-0 8	-0 8	-0 9	-3 3			-1 6
Write-down/backs and depreciation						-2 2	-2 3		-4 5
Leasing Reggio Emilia offices and financial shops						-2 2	-2 3		-4 5

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 -0.4mln 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
AUM	33 536 ,	34 496 ,	34 930 ,	33 485 ,	35 988 ,	36 819 ,
o/w Funds and Sicav	26 666 ,	26 809 ,	26 795 ,	24 853 ,	26 361 ,	26 426 ,
o/w Insurance	6 395 ,	043 7 ,	355 7 ,	618 7 ,	8 401 ,	9 002 ,
o/w GPM	1	1	1	1	1	26
o/w AuC deposits under advisory +	475	643	779	1 012 ,	1 225 ,	1 365 ,
o/w in Advice	475	477	494	535	572	600
o/w in Plus	0	166	285	477	653	765
AUC	13 890 ,	14 366 ,	14 395 ,	13 779 ,	15 187 ,	15 229 ,
o/w Equity	8 573 ,	8 736 ,	8 846 ,	8 007 ,	9 137 ,	9 207 ,
o/w Bond	298 5 ,	613 5 ,	534 5 ,	759 5 ,	6 037 ,	6 011 ,
o/w Other	20	18	15	13	13	12
Direct Deposits	20 624 ,	20 968 ,	21 536 ,	22 069 ,	22 941 ,	23 844 ,
o/w Sight	20 616 ,	20 962 ,	21 532 ,	22 066 ,	22 938 ,	23 842 ,
o/w Term	7	6	4	3	2	2
Total	68 050 ,	69 830 ,	70 861 ,	69 333 ,	74 116 ,	75 892 ,
o/w Guided Services Products &	21 425 ,	22 199 ,	22 879 ,	22 370 ,	24 301 ,	25 354 ,

o/w TFA Private Banking 26,109 26,992 27,474 25,830 29,041 29,970

Balance Sheet

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

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 2.1bn current accounts (immediate available liquidity) and 1.7bn term deposits as of March 2019; 1.2bn cash deposited at Bank of Italy as of June 2019

CET1 Ratio evolution

(1) mainly purchase of securities not settled by the end of June which generate commitments for unsettled financial assets that has been completely recovered at the beginning of July at the settlement date

Main Financial Ratios

	Mar	Jun	Sep	Dec	Mar	Jun
	18	18	18	18	19	19
PFA TFA/ PFA (mln) (1)	22 5	23 0	23 4	23 2	25 0	25 6
/ Guided Products TFA (2)	31%	32%	32%	32%	33%	33%
Cost / income Ratio (3)	41 0%	40 0%	39 3%	38 9%	41 3%	39 4%
CET	20	20	20	21	21	17
1	2%	7%	5%	2%	0%	8%
Ratio
Adjusted	35	37	35	35	30	33
(4)	1%	0%	2%	7%	8%	7%
RoE
(5)	15%	6	6	5	5	4
Leverage	7	51%	00%	55%	11%	03%
Ratio

(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 43) calculated as Operating Costs divided by Revenues net of non recurring items

(4) RoE: Net Profit, net of non recurring items (see page 43) divided by the average book shareholders' equity for the period (excluding dividends expected to be distributed and the revaluation reserves)

(5) Leverage ratio as of Jun.19 is calculated on a Consolidated basis and pro-forma following the issuance of 300mln AT1 on July 11th, 2019.

Leverage ratio «as is» equaled 2.89%. Leverage ratios until Mar.19 are calculated on Individual basis, according to the EC Delegated Act 2015/62 regarding the exclusion of intra-group exposure

56

High-value deposit base confirms strong resilience over time

Sight deposits growth

• Double-digit deposit growth throughout the last 10 years (+11% 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

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

Fairness and transparency core in our strategy. Sustainable and highly recurring Investing revenues

Brokerage: the perfect countercyclical business

Leading position in Brokerage

• Operating Platform Excellence: multichannel and fully integrated
• Well advanced in-house know-how, optimizing time-to-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
• Stable and differentiated client base: focus on low risk light traders