Banca Ifis

Earnings Release • Nov 9, 2017

HIGHLIGHTS

(Million Euro)

Net profit	149,1	(66,3 at 30/09/2016)	+125%
Equity	1.338,7	(1.228,6 at 01/01/2017*)	+9,0%
Funding	7.526,8	(7.037,7 at 31/12/2016)	+6,9%
Loans	5.961,3	(5.928,2 at 31/12/2016)	+0,6%

GROUP KPIs	30/09/2017	30/09/2016
Cost of credit SMEs	-19 b.p.	+80** b.p	** 31/12/2016
EPS	2,79	1,25
Book value/share €	25,06	11,05

NET BANKING INCOME 2016 RESTATED by quarter (NBI)

(Million Euro)

Group's 2016 NBI recalculated with the new Internal Transfer Rates (TIT). Due to external (market rates) and internal (composition and funding rates) changes, it has been necessary to revise and update the TIT calculation method.

	Trade receiv.	Corporate banking	Leasing	Area NPL	Tax receiv.	G & S	Total
1Q16	33,7			24,6	4,0	14,3	76,6
2Q16	34,3			33,8	3,7	2,5	74,3
3Q16	33,7			49,0	2,7	1,4	86,8
4Q16	46,8	3,0	-1,2	40,9	3,0	-4,2	88,3
Total	148,5	3,0	-1,2	148,3	13,4	14,0	326,0

MARGINS (NBI and NPFA*)

(Million Euro)

NBI: 371,3 ( in 237,7 9M 2016) +56,2%

NPFA*: 391,7

(218,2 in 9M 2016) +79,5%

Data 9M Trade receivables Corporate banking Leasing Area NPL Tax receiv. G&S NBI 2017 97,6 108,8 46,5 108,4 12,0 -2,0 371,3 NBI 2016 101,7 na na 107,4 10,4 18,2 237,7 % Change -4,0% na na 0,9% 16,2% -110,9% 56,2% NPFA 2017 83,4 147,7 42,5 108,4 11,8 -2,1 391,7 NPFA 2016 86,5 na na 107,4 10,1 14,2 218,2 % Change -3,5% na na 0,9% 17,2% -114,9% +79,5%

INSIGHT ON TRADE RECEIVABLES SEGMENT

INSIGHT ON CORPORATE BANKING SEGMENT

INSIGHT ON LEASING SEGMENT

INSIGHT ON NPL AREA

INSIGHT ON AREA NPL

INSIGHT ON TAX RECEIVABLES

NET PROFIT

BALANCE SHEET – ASSET STRUCTURE

(Million Euro) % change 30.09.2017 vs 31.12.2016

ASSET QUALITY & NPE TREND

Trade Receivables

13

CREDIT QUALITY: SMEs LENDING

(Million Euro) % 9M17 data

Loans to customers : 5.067,9 -3,2%

9M2017	Trade Receivables	Corporate Banking	Leasing	Total SMEs Lending
Net NPL	33,0	33,8	16,6	83,5
% Net NPL/Loans	1,2%	3,3%	1,3%	1,6%
% NPE/Loans	8,1%	15,9%	2,7%	8,3%
NPL COVERAGE	88,5%	91,8%	79,1%	89,3%
NPE COVERAGE	56,6%	74,9%	71,9%	67,4%

BALANCE SHEET – LIABILITIES STRUCTURE

(Million Euro) % change 30.09.2017 vs 31.12.2016

rendimax + contomax+ corporate time depo

5.155,3 +11,6%

Due to banks 965,2 +91,5% 700,3 TLTRO n.a.

Debt Securities

1.224,0 -17,8%

385,4 Bonds 0,6 Certificates of deposit 838,0 Securitization

Deposits Due to banks Debt securities Other

BANCA IFIS GROUP: EQUITY BREAKDOWN

(Million Euro)

EQUITY: CHANGES
Net equity at 31.12.2016	1.218,8
Difference on the acquisition price of Interbanca Group	9,8
Increases	153,9
Profit for the period	149,1
Change of AFS reserve	4,5
Other	0,3
Minorities	0,0
Decreases	43,8
Dividends	43,8
Net equity at 30.09.2017	1.338,7

Banca IFIS Group only KPIs	2017	2016
	30/09	31/12
Common Equity Tier 1 Ratio (CET1)	17,14%	15,71%
Tier 1 Capital Ratio (T1)	17,14%	15,71%
Total Own Fund Capital Ratio	17,14%	15,71%

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

The information, statements and opinions contained in this Presentation are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction of the United States or in Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would be unlawful (the "Other Countries"), and there will be no public offer of any such securities in the United States. This Presentation does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries. Pursuant the consolidated law on financial intermediation of 24 February 1998 (article 154-bis, paragraph 2) Mariacristina Taormina, 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 the Banca IFIS's documented results, financial accounts and accounting records.

Neither the Company nor any member of Banca IFIS nor any of its or their respective representatives, directors or employees accept any liability whatsoever in connection with this Presentation or any of its contents or in relation to any loss arising from its use or from any reliance placed upon it.