Banca Ifis

Earnings Release • May 9, 2024

1Q24 results

9 May 2024

Index

• 1. 1Q24 results
• 1. Appendices
  2. 2.1 Segment results
  3. 2.2 Consolidated financial data
  4. 2.3 Company overview

1Q24 results

Net income of €47mln (+33% QoQ and +3% YoY) 1

• Resilient revenues in Commercial Banking, Npl and Proprietary Finance: the Bank is delivering on offsetting cost of funding increase
• Positive impacts of non-commercial items:
  • o €4.7mln (€7.2mln before taxes) trading income benefiting from rates scenario
  • o €3.0mln (€4.5mln before taxes) due to the disposal of an equity stake from the restructuring of a legacy Npl position*
• Asset quality: positive risk/return performance of loan book extends into 2024
• Obtained AA rating upgrade from MSCI (from A) reflecting the commitment of the controlling shareholder on the Bank's environmental, social and governance agenda 2
• Very solid financial position with €2.5bn of available cash** post €1.25bn TLTRO repayment carried out in Dec 23 and March 24 (in advance vs. Sept 24 maturity) 3
• CET1 of 14.98% as of 31 Mar 24, excluding 1Q24 net income 4
• Dividends: €47mln (€0.90 per share) will be paid on 22 May 24 (in addition to €1.2 per share paid in advance on 22 Nov 23) 5

Net revenues

Quarterly Revenues

• Net revenues at €185mln (+5% YoY)

• 1Q24 net revenues breakdown:
  • o Commercial banking revenues at €89mln (€86mln in 4Q23 and €88mln in 1Q23) with strong commercial performance and pricing discipline more than offsetting cost of funding increase
  • o Npl revenues* prove resilient at €74mln (€92mln** in 4Q23 and €69mln in 1Q23) despite inflation and rates scenario. 1Q24 includes €5.7mln revenues from Revalea
  • o Non Core & G&S at €22mln confirming a recurrent and stable contribution to revenues (€14mln in 4Q23 and €19mln in 1Q23). 1Q24 revenues includes €7mln trading gains (mostly the disposal of Government and corporate bonds)
• Bank is delivering on offsetting cost of funding increase

Commercial activity reflects market and 4Q typical seasonality

• Banca Ifis's strong focus on profitability:. 1Q24 factoring average spread at 4.07% (on top of base rate*), +0.14% up YoY
• Factoring customer loans +4.3% YoY vs. +0.2% YoY of the market reflecting focus on more persistent positions

*Euribor 3M (variable rates) or IRS (fixed rates)

• The renewal of tax incentives, expected in 1H24, may provide some acceleration for the leasing market in 2H24
• Equipment and technology: since 3Q23, we are seeing evidence of delays in SME capex decisions. Banca Ifis reported a growth above the market on the basis of commercial effectiveness
• 6 • Automotive: Banca Ifis's strategy remains (i) premium/luxury segments (not volumes) (ii) price/margin discipline (iii) remarketing agreements in place. 1Q24 automotive leasing average spread at 3.92% (on top of base rate*), +0.13% up YoY

Npl portfolio performance resilient and well-positioned*

Revenues from judicial and

• Npl cash collection stable YoY despite significant increase in inflation and in interest rates proves Banca Ifis's know-how in Npl workout

Data on this chart excludes Revalea contribution

Cash collection from Revalea were ~€14mln

*Source: management accounting data and risk management data

Quarterly cash collection (€mln)

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

Asset quality confirmed and overlay fully expresses Bank's prudence

• Asset quality protected by stable overlays, significantly above peers (>1% of performing loans); coverage ratio of NPEs further improved

Coverage	4Q22	4Q23	1Q24
Npl	69%	78%	79%
UTP	39%	44%	46%
Past due	7%	8%	7%
Total	35%	43%	45%

• The QoQ change in asset quality ratios is due to the denominator (lower performing loans given the usual factoring seasonality). Total Npes are substantially stable in €/mln
• In the coming quarters, the Bank may carry out the disposal of certain Npl positions expected to improve asset quality ratios
• The application of the New DoD led to the reclassification mainly into past due of the stock of loans vs. the Italian public health system (historically, a late payer with limited asset quality risk) of €77mln (€74mln in 4Q23)

Gross Npes Loans vs. the public health system in past due Net Npes excluding loans vs. the public health system in past due

*Figures include "Net provisions for unfunded commitments and guarantees and Profit (loss) from sale of loans measured at amortised cost (excluding Npl Segment)"

At present, no signs of macro credit risks materializing in Banca Ifis's commercial business

Payment days in factoring

Stage 2 Stage 1

Ratings migration in credit book** Probability of default***

*** Data refer to €4.8bn exposures in factoring and leasing

MSCI upgraded Banca Ifis's ESG rating to AA

MSCI has upgraded Banca Ifis's ESG rating to AA on 19 April 2024

• Banca Ifis's Overall Industry Adjusted Score has been increased from 7.1 points to 8.2 points since the last rating action

Dimensions	Weight	Industry average	Banca Ifis Score
Carbon Emissions	5%	8.2	7.3
Human Capital Development	35%	3.6	6.7
Corporate governance		6.5	6.8
Corporate behaviour	60%	5.7	5.7

€1.25bn TLTRO pre-payment. €0.79bn TLTRO expiring in Sept. 24

Main funding maturities

€0.79bn TLTRO (expiring in Sep 2024)

€0.4bn senior bond (expiring in June 24)

Completed management actions Ongoing management actions

• ✓€1.25bn TLTRO pre-payment in Dec ²⁰²³ and March 24
• ✓€0.8bn securitization: re-marketing of senior leasing securitization notes (€0.4bn) and ramp-up of the securitization of an unsecured Npl portfolio (€0.4bn) created in 2021*
• ✓€0.7bn senior bond issuances: €0.4bn in Febr. ²⁴ and €0.3bn in Sept. 23
• ✓€0.6bn increase in Rendimax and German deposits

• ✓€0.2bn proprietary portfolio maturing by Sept. 2024

• ➢ All funding actions completed well in advance and well ahead of plan

• ➢ Ca. €0.8bn potential repos with institutional counterparties (using sovereign bonds currently posted at ECB against TLTRO)

Available cash** projected > €1.5bn post full TLTRO repayment Available cash at €2.5bn on 31 March 24, significantly above our target level

*Senior notes to be refinanced on the institutional investors' market. Mezzanine and junior notes to be entirely subscribed by Ifis Npl Investing and not be transferred **Counterbalancing capacity

Capital ratios evolution

CET1 of 14.98% as of 31 Mar 24, excluding 1Q24 net income

Key items of CET1 evolution in 1Q24

• 25bps due to -€169mln of RWA:
  • o -€255mln RWA due to the decrease in credit risk mainly driven by seasonal factoring volumes (-€179mln)
  • o +€86mln RWA increase in market and foreign-exchange risk
• -14bps due to the regulatory partial removal of transitional filters of IFRS 9 provisions

Quarterly and annual results

Reclassified Consolidated Income Statement - (€ mln)	1Q23	4Q23	1Q24
Net interest income	139.4	156.7	140.8
Net commission income	23.3	23.9	23.1
Trading and other revenues	13.1	11.6	1 21.4
Total Revenues	175.8	192.3	185.2
Loan loss provisions	(10.0)	2 (21.5)	(8.6)
Total Revenues - LLP	165.9	170.7	176.6
Personnel expenses	(39.7)	(43.3)	(43.4)
Other administrative expenses	(53.8)	(71.3) 3	(61.9)
Other net income/expenses	2.4	3.1	3.2
Operating costs	(91.1)	(111.5)	(102.1)
Charges related to the banking system	(5.9)	(0.9)	-
Net allocations to provisions for risk and charges	(0.5)	(6.4)	4 (2.1)
Non recurring items	-	(1.6)	-
Gains (Losses) on disposal of investments	-	1.0	-
Pre tax profit	68.4	51.3	72.3
Taxes	(22.1)	(15.5)	(24.7)
Net income - attributable to the Parent company	45.9	35.4	47.2
Customer loans	9,834	10,622	10,089
- of which Npl Business	1,495	1,646	1,618
Total assets	13,300	14,051	13,654
Total funding	11,112	11,821	11,339

• Includes €7.2mln from the disposal of some Government and Corporate bonds (benefiting from the low in interest rates in Jan 24) and €6mln from the disposal of an equity stake coming from the restructuring of a legacy Npl position 1
• Provisions on a certain structured finance exposures 2
• Includes: -€4mln recurring costs of Revalea as well as seasonality (lawyers, information providers) 3
• Includes €1.5mln provision for the disposal of the equity stake coming from the restructuring of a legacy Npl position 4

In the above statements, net impairment losses/reversals on receivables of the Npl Segment were reclassified to interest receivable and similar income to the extent to which they represent the operations of this business and are an integral part of the return on the investment. In addition:

• Operating costs exclude "Net allocations to provisions for risks and charges" , "Charges related to the banking system" and "Non recurring items"

• of which customer deposits 5,091 5,815 6,156 - of which TLTRO and LTRO 2,035 1,578 816 Shareholders Equity 1,650 1,694 1,742

• Loan loss provisions include: "Net provisions for unfunded commitments and guarantees"; "Profit (loss) from sale of loans measured at amortised cost (excluding Npl Segment)"

2.1 Segment results

1Q24 Results: P&L break-down by business unit

	2014
> Banca CERTIFIE

		Commercial & Corporate banking
Data in € mln	Npl	Factoring	Leasing	Corp. Banking & Lending	Tot. Commercial & Corporate banking	Non core & G&S	Consolidated	1
Net interest income	74	28	13	20	60	6	141
Net commission income	(0)	17	3	5	24	(1)	23
Trading & other revenues	1	0	0	5	5	16	21
Net revenues	74	45	16	29	89	22	185
-Of which PPA	1	-	-	-	-	2	3
Loan loss provisions	0	(2)	(2)	(6)	(10)	2	(9)
Operating costs	(50)	(25)	(9)	(10)	(44)	(8)	(102)
Charges related to the banking system	-	-	-	-	-	-	-
Net allocations to provisions for risk and charges	0	(1)	(0)	-	(1)	(2)	(2)
Net income	16	11	3	8	23	9	48
Net income attributable to non controlling interests	-	-	-	-	-	(0)	(0)
Net income attributable to the Parent company	16	11	3	8	23	8	47
Net income (%)	34%	23%	7%	17%	48%	19%	100%
Customer Loans	1,618	2,572	1,551	2,399	6,522	1 1,948	10,089
RWA1	1,875	2,540	1,323	1,825	5,688	1,431	8,994
2 Allocated capital	281	380	198	273	852	214	1,347

Breakdown of customer loans in Non Core & G&S

• o G&S: includes €1.4bn of Government bonds at amortized costs
• o Non Core: includes €0.03bn of performing loans mainly ex Interbanca, €0.1bn retail mortgages and €0.03bn of Npl (former Interbanca + Banca Ifis)

(1) RWA Credit and counterparty risk only. It excludes RWA from operating, market risks and CVA (~€1bn) (2) RWA (Credit and counterparty risk only)

Factoring

Turnover - €bn

Net customer loans - €mln

2,359

2,845

2,572

Data in €mln	1Q23	2Q23	3Q23	4Q23	1Q24
Net revenues	43	44	44	42	45
Net revenues / avg. customer loans	6.6%	7.0%	7.1%	6.5%	6.6%
Loan loss provisions*	(3)	1	(4)	(23)	(2)

2,467 2,558

*Loan loss provisions include: "Net provisions for unfunded commitments and guarantees"; "Profit (loss) from sale of loans measured at amortised cost (excluding Npl Segment)"

** Net revenues include interest income – interest expenses + commissions

• Banca Ifis has strong focus on profitability: in 1Q24 factoring average spread at 4.07% (on top of base rate*), +0.14% up YoY
• Net revenues** / average customer loans at 6.6% well above market average
• Turnover is down QoQ due to usual year end seasonality

Factoring – Italian business*

Active clients Turnover

• Banca Ifis is market leader in terms of number of clients (23% market share vs. 5% in terms of turnover) reflecting its strong focus on small tickets and profitability

Market share Loans and revenues breakdown -1Q24

• Medium/large corporate represents ca. 53% of customer loans and ca. 48% of revenues

¹⁹ * Management accounting. It includes only factoring distributed by Italian branches. It excludes foreign subsidiaries, factoring vs. PA, others. Data refer to €38mln revenues and €2.3bn loans

Leasing

New business - €mln

					1
	155	164	142	211	150	1
	28 50 77	29 56 79	24 54 64	37 87 87	31 38 81
	1Q23 Autolease	2Q23	3Q23 Equipment	4Q23	1Q24 Technology
Net customer loans - €mln	1,475	1,499	1,494	1,552	1,551

Data in €mln	1Q23	2Q23	3Q23	4Q23	1Q24
Net revenues	15	15	16	16	16
Net revenues / avg customer loans	4.2%	4.1%	4.2%	4.1%	4.1%	2
Loan loss provisions*	(1)	(1)	(1)	(1)	(2)	3

• The renewal of tax incentives, expected in 1H24, may provide some acceleration for the leasing market in 2H24. Banca Ifis's growth was above market in both equipment/technology and automotive
  • o Equipment and technology: evidence of delays in SME capex decisions
  • o Automotive: Banca Ifis's strategy (i) premium/luxury segments (not volumes) (ii) price/margin discipline (iii) remarketing agreements in place
• Net revenues / average customer loans at 4.1% in 1Q24 2
• Asset quality risk is mitigated by sector and borrower diversification and by the remarketing agreements for repossessed assets 3

*Loan loss provisions include:

"Net provisions for unfunded commitments and guarantees";

"Profit (loss) from sale of loans measured at amortised cost (excluding Npl Segment)"

Npl Business*: portfolio evolution

Npl portfolio evolution (excluding Revalea)

NBV** €mln	1,422			1,399
GBV €bn	20.0	0	(0.2)	19.8
	4Q23	Purchases	Disposals and others	1Q24

Key numbers*

• 1.9mln tickets, #1.3mln borrowers
• Extensive portfolio diversification by location, type and age of borrower

No Npls acquired in 1Q24

• Following the acquisition of Revalea from Mediobanca completed on 31 Oct. 23, Banca Ifis achieved the Npl purchase targets of the 2022-24 Business Plan 1Y in advance. Banca Ifis is selective on Npl purchases going forward
• As at 31 Dec 23, Revalea had a portfolio of small ticket unsecured Npls of €6.1bn in terms of GBV (NBV of €208mln)***

Npls disposals and others in 1Q24: €0.2bn GBV*

• The disposals of "tails" generated a capital gain of €0.1mln. "Others" includes cash collection on the existing portfolio

*Source: management accounting data, excludes Revalea

**Does not include customer loans (invoices to be issued) related to Ifis Npl Servicing third parties servicing activities. Excludes Revalea ***Including PPA

Npl Business*: ERC

ERC: €2.6bn (excludes Revalea)

2.5

ERC breakdown

Data in €bn	GBV	NBV	ERC
Waiting for workout - At cost	0.1	0.0	0.0
Extrajudicial positions	12.8	0.5	0.8
Judicial positions	6.8	0.9	1.8
Total	19.8	1.4	2.6

ERC assumptions

• ERC based on proprietary statistical models built using internal historical data series and homogeneous clusters of borrowers
  • o Type of borrower, location, age, amount due, employment status
  • o Time frame of recovery
  • o Probability of decay
• ERC represents Banca Ifis's expectation in terms of gross cash recovery. Internal and external costs of positions in nonjudicial payment plans (GBV of €0.5bn in 1Q24), court injunctions ["precetto"] issued and order of assignments (GBV of €2.1bn in 1Q24) have already been expensed in P&L
• €2.6bn cash recovery (including proceeds from disposals) was generated in the years 2014 –1Q 2024

Npl Business*: GBV and cash recovery

Judicial recovery

Judicial recovery (€ mln)	GBV	%	To be processed
Frozen	1,388	20%
Court injunctions ["precetto"] and foreclosures	1,236	18%
Order of assignments	832	12%
Secured and Corporate	3,386	49%
Total	6,842	100%

Non judicial recovery – Voluntary plans

Non-judicial payment plans

Actual vs. model cash repayments

collections in secured and corporate were impacted by longer auction timeframes

In 2Q22 and 4Q23 cash

Judicial recovery – Order of Assignments

Judicial + non judicial recovery, data in €mln

Actual cash repayments Model cash repayments

Cash collection - Excludes Revalea 1

• Npl cash collection at €98mln substantially stable despite persistent high inflation
• As planned in the 3Y Business Plan, the Bank is progressively increasing settlements ("saldi e stralci") to reduce timeframe of collections

Data in € mln (excluding disposals)	1Q22	2Q22	3Q22	4Q22	1Q23	2Q23	3Q23	4Q23	1Q24	2022 YE	2023 YE
Cash collection	91	91	101	100	97	98	100	102	98	384 1	397
Contribution to P&L**	73	71	67	84	73	69	70	89	73	295	301
Cash collection / contribution to P&L	125%	128%	152%	120%	134%	141%	142%	115%	133%	130%	132%

*Source: management accounting data. Excludes Revalea

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

Npl Business*: GBV and NBV evolution

GBV - €mln	1Q22	2Q22	3Q22	4Q22	1Q23	2Q23	3Q23	4Q23	1Q24
Waiting for workout - Positions at cost	3,850	4,193	1,571	1,284	1,096	1,149	286	155	126
Extrajudicial positions	11,155	11,379	13,386	14,302	14,196	13,510	13,558	12,850	12,838
- Ongoing attempt at recovery	10,670	10,896	12,914	13,831	13,720	13,035	13,041	12,326	12,310
- Non-judicial payment plans	485	483	471	471	476	475	517	525	528
Judicial positions	7,245	7,323	7,498	7,478	7,539	7,338	7,328	6,997	6,842
- Freezed**	1,662	1,715	1,725	1,627	1,708	1,609	1,572	1,526	1,388
- Court injunctions ["precetto"] issued and foreclosures	818	858	913	978	1,018	1,073	1,119	1,188	1,236
- Order of assignments	763	786	798	822	838	837	862	847	832
- Secured and Corporate	4,002	3,963	4,062	4,051	3,975	3,819	3,776	3,435	3,386
Total	22,250	22,895	22,455	23,065	22,831	21,996	21,173	20,001	19,805

NBV - €mln	1Q22	2Q22	3Q22	4Q22	1Q23	2Q23	3Q23	4Q23	1Q24 ***
Waiting for workout - Positions at cost	148	159	77	114	86	92	27	14	9
Extrajudicial positions	436	438	464	470	468	460	484	490	485
- Ongoing attempt at recovery	208	208	237	238	230	222	223	217	209
- Non-judicial payment plans	228	230	227	232	238	239	262	273	276
Judicial positions	898	908	929	921	929	913	922	918	905
- Freezed**	240	235	229	208	211	194	186	175	156
- Court injunctions ["precetto"] issued and foreclosures	181	187	200	207	209	216	231	252	256
- Order of assignments	320	333	335	346	355	355	359	353	359
- Secured and Corporate	157	154	164	160	154	149	146	138	134
Total	1,483	1,505	1,469	1,505	1,483	1,465	1,434	1,422	1,399

*Source: management accounting data, excludes Revalea

**Other Judicial positions

***Does not include customer loans (invoices to be issued) related to Ifis Npl Servicing third parties servicing activities

Npl Business*: P&L and cash evolution

P&L - €mln	1Q22	2Q22	3Q22	4Q22	1Q23	2Q23	3Q23	4Q23	1Q24
Waiting for workout - Positions at cost
Extrajudicial positions	29	25	23	22	27	26	23	37	21
- Ongoing attempt at recovery	(1)	0	4	1	(1)	0	0	3	(2)
- Non-judicial payment plans	30	24	18	21	28	26	23	34	23
Judicial positions	44	47	44	62	46	43	47	52	52
- Freezed**	-	-	-	-	-	-	-	-	-
- Court injunctions and foreclosures + Order of assignments	41	40	36	54	40	37	38	46	47
- Secured and Corporate	2	7	8	8	6	6	9	6	6
Total	73	71	67	84	73	69	70	89	73

Cash - €mln	1Q22	2Q22	3Q22	4Q22	1Q23	2Q23	3Q23	4Q23	1Q24
Waiting for workout - Positions at cost
Extrajudicial positions	49	49	52	51	50	52	52	52	51
- Ongoing attempt at recovery	5	6	11	8	6	7	8	7	5
- Non-judicial payment plans	44	44	41	43	44	45	44	45	46
Judicial positions	42	42	49	49	48	45	48	50	47
- Freezed**	-	-	-	-	-	-	-	-	-
- Court injunctions and foreclosures + Order of assignments	33	32	35	37	36	34	37	36	38
- Secured and Corporate	9	10	14	13	12	11	11	14	9
Total *Source: management accounting data. Excludes Revalea	91	91	101	100	97	98	100	102	98

**Other Judicial positions

Npl Business*: portfolio diversification

Breakdown of GBV by ticket size Breakdown of GBV by region

*Source: management accounting data and risk management data. Excludes Revalea (i.e. data refer only to property portfolio)

Breakdown of GBV by type Breakdown of GBV by borrower age

2.2 Consolidated financial data

Customer loans

• 1Q24 customer loans at €10,089mln, -€533mln QoQ due to:

o Normal seasonality in factoring (-€273mln QoQ)

o Disposal of some bonds booked in G&S (-€289mln QoQ)

Asset quality – 1Q24

Asset quality (€ mln)

Consolidated ratios	3Q23	4Q23	1Q24
Gross Npe*	6.1%	5.5%	5.7%
Net Npe*	3.9%	3.2%	3.3%

Commercial & Corporate Banking	Gross	Coverage %	Net
Bad loans	99	83%	17
UTPs	182	47%	96
Past dues	97	5%	92
Total Npes	378	46%	206

Non Core & G&S**	Gross	Coverage %	Net
Bad loans	13	55%	6
UTPs	23	36%	14
Past dues	9	36%	6
Total Npes	44	42%	26

• Asset quality ratios in 1Q24

• o Gross Npe Ratio*: 5.7% (5.5% % in 4Q23); 4.7% excluding loans in past due vs. Italian public health system
• o Net Npe Ratio*: 3.3% (3.2% in 4Q23); 2.2% excluding loans in past due vs. Italian public health system
• Gross and Net Npe in Commercial & Corporate Banking came in at €378mln (€375mln in 4Q23) and €206mln (€213mln in 4Q23), respectively. The QoQ change in asset quality ratios is due to lower performing loans (factoring seasonality). Total NPEs are substantially stable in €/mln
• In coming quarters, the Bank expects to carry out the disposal of some small Npl portfolios to reduce asset quality ratios
• The New Definition of Default led to the reclassification mainly into past due of €77mln loans vs. the Italian public health system

*Includes commercial loans in Commercial Banking, Non Core and G&S. It excludes Npl business and €1.4bn Government bonds at amortized costs in G&S.

** Npes in Non Core & G&S that arose from the acquisition of former Interbanca, in accordance with IFRS 9 are qualified as POCI ("purchased or originated credit-impaired") and are booked net of provisions

Funding

1,452 1,436 1,757 1,853 2,071 1,578 ⁸¹⁶ 1,166 1,139 ⁸⁵¹ Funding (€mln) 11,727 11,821 11,339

5,281 5,815 6,156

3Q23 4Q23 1Q24

3Q23 4Q23 1Q24

Customer deposits Bonds Securitization TLTRO & LTRO Other

LCR >1,200% >1,100% >2,600% NSFR >100% >100% >100%

1,706

1,810

• Customer deposits (+6% QoQ, +€342mln) due to marketing campaigns in Rendimax and German deposits
• Securitizations: €1,346mln of factoring and leasing; €360mln of Banca Credifarma securitizations
• "Other" decrease due to banking repo with underlying proprietary portfolio (€469mln in 1Q24 vs €715mln in 4Q23)
• €400mln senior bond issuance in Febr. 24 (€400mln bond expiring in June 24)
• Banca Ifis has €0.79bn TLTRO expiring in Sept. 2024. €1.25bn TLTRO repaid in advance in Dec 2023 and March 24
• Average cost of funding at 3.86% in 1Q24
• Starting from 2024, MREL at 14.8% of TREA (including 2.5% CBR as per art. 128 CRD). The requirement of ca. €1.5bn is entirely covered by equity

Interest income and cost of funding evolution

Interest income (excluding Npl Business, Non Core and treasury) and interest expenses

• Positive seasonality in factoring in 2Q and 4Q
• Prudent funding policy has priority over funding costs
• Last 2 years show proven ability to pass cost of funding increase to clients

Proprietary portfolio: resilient contribution to P&L

• Long term «fundamental» positioning strongly focused on investment grade bond area / high dividend equity stocks coupled with opportunistic trading approach

• Mid duration level (2.8Y)
• Strategic use (at around 81% of total assets* in 1Q24) of HTC to reduce proprietary portfolio volatility coupled with rigorous management of durations (AML)
• Low volatility accounting treatment: FVTPL < 1%
• Low RWA density and relevant funding eligibility
• Significant and stable contribution to P&L given by interest margins flow

1Q24 proprietary portfolio revenues at around €29.1mln, +€8.1mln (+39%) vs. 1Q23

• 1Q24: €19.2mln interest income + €9.9mln trading and other income (of which €0.8mln dividends)
• Trading activity together with relevant bond disposals had a positive impact on 1Q24 revenues

of €mln end of Type - Data in asset at as	Bonds				Total
(*) quarter	Government	Financial	Corporate	Equity
Held collect/amortized to cost	1373	656	97		2127
(FVOCI) Held collect and sell to	267	63	52	104	486
(HTC HTC&S) Total and	1640	720	150	104	2613
for Held trading/Funds/Other FVTPL					5
Total portfolio	1640	720	150	104	2618
Percentage of total	62 6% ,	27 5% ,	5 7% ,	4 0% ,	100 0% ,
Modified Held collect/amortized Duration to cost	2 4 ,	2 8 ,	2 1 ,	NA	2 5 ,
Held collect and sell (FVOCI) Modified Duration to	4 8 ,	2 4 ,	1 9 ,	NA	4 0 ,
Modified FVTPL Duration					0 6 ,
Average Modified duration - YEARS	2 9 ,	2 7 ,	2 0 ,	NA	2 8 ,

Expected 2024 strategic and revenues pillars:

• Bond portfolio modified duration extension, naturally driven by maturity ladder together with cherry picking on long dated securities
• Potential increase in bond investments depending on market conditions
• Estimated dividends at ca. €9mln

Reclassified consolidated operating costs*

1Q24 operating costs -€9mln QoQ

• HR costs stable QoQ
• -€9mln QoQ in other operating costs. Main QoQ changes:
  • o -€3mln due to savings on lawyers, information providers and travelling expenses
  • o -€3mln seasonality on marketing investments/expenses
  • o -€2mln QoQ due to seasonality in Npl recovery costs

Personnel expenses (€mln)

Operating costs (€mln)

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

2.3 Company overview

Banca Ifis: a long-term track record of sustainable growth Banca Ifis: a long-term track record of sustainable growth

1. Own funds; 2. Increase in the capital levels driven by the acquisition of the former GE Capital Interbanca Group on 30 November 2016, with a gain on bargain purchase of €623.6mln recognized in the income statement and as such included in the Group's post-transaction capital position at 31 December 2016; 3. Average payout ratio within the time period; 4. Excluding gain from the rebalancing of the government bond portfolio from the profit of 2015; 5. Progressive payout ratio, upon exceeding the threshold of earnings necessary to satisfy the Bank's capital requirements. Subject to Bank of Italy's approval. Distribution of 50% of the consolidated net income up to €100mln. Distribution of 100% of the consolidated net income > €100mln; 6. Net-Zero Banking Alliance

Stable shareholders and governance

• La Scogliera provides, as main shareholder, continuity and stability to Banca Ifis
• Strategic ESG focus both in specific positioning initiatives and in core operations (AA MSCI rating)
  • o Long term value creation with a strategy focused on creating continuous adequate earnings, self funding superior growth and delivering attractive and steady dividends
  • o Forefront in business and digital innovation
  • o Prudent attitude towards risks but able seize industrial opportunities when they arise (i.e. acquisition of Interbanca, acquisition of Revalea)
• La Scogliera does not own any material assets other than Banca Ifis

Free float: 49.5%*

*Includes private banking, long only funds, hedge funds (limited presence), retails, index linked funds

A Family Bank challenger, but with 40 years track record

• ► Specialised player for SMEs, with a broad range of credit products (factoring, lending, leasing, and rental)
• ► Market leader in profitable businesses (e.g., SME factoring, Tech Rental, Pharmacies)
• ► "Light" commercial network (without cash services) rooted in the most industrialized areas of the country

• ► Customer interaction based on a high-performance service model and a reputation for efficiency

• ► Investor and servicer specialized in small ticket NPEs, with a distinctive vertically integrated business model
• ► Execution track record with originators, investors, and other servicers, supported by pricing capabilities and proprietary debtors' database
• ► Proven collection strategy with distinctive skip tracing¹ capabilities and internal "legal factory" team

Consistent "core net income" growth, driven by our core capabilities, with a low risk profile

Banca Ifis' risk profile

• Structurally protected liquidity position (maturities)
• Marginal contribution of extraordinary revenues
• Diversification
• Fragmentation of exposures and prudent credit policies
• Cost/income protected through resource re-skilling

Total assets and liabilities

*Customer loans include part of the proprietary finance portfolio

41

Banca Ifis's superior risk-return trade-off (1/3)

Banca Ifis's superior risk-return trade-off (2/3)

	والا الامارات المنتدى المواقع
Banca SERTIFIED

Factoring	€ bn 2.6	Average Duration in Y 0.20*	Average ticket size €400k*
Leasing	1.4	2.7	€50k auto €60k equipment
Rental	0.2	2.0	€5k
Medium term lending	0.7	2.8	€250k
Loans to pharmacies	0.8	7.5	€400k
Structured finance	0.8	4.0	€12mln
Npls	1.6	4.0	€12k
Government bonds	1.4	2.5	Government bonds classified as HTC
Other	0.7	-	€0.4bn financial bonds portfolio 5Y €0.1bn retail mortgages

*Excluding factoring to PA, taxed incentives ("superbonus 110%") and VAT credit

Customer loans: >70% of Banca Ifis's customer loan book has a duration shorter than 3Y

Banca Ifis's superior risk-return trade-off (3/3)*

Very limited corporate deposits Customer deposit breakdown

Rendimax deposits: 85% protected by FITD

Our ESG achievements

Financed Emissions

Approximately 80% of exposures and financed emissions considered by Banca Ifis NZBA targets, focused on Automotive sector

Projects and partnerships

More than 30 projects financed through the Social Impact Lab Kaleidos. €1mln donated to Italian Food Bank, equal to 10 million meals distributed

Diversity and inclusion

Banca Ifis, the first Italian bank certified by the Winning Women Institute, obtained UNI PdR 125 certification on diversity and inclusion

Reporting and transparency

The Group published its first Report aligned with the recommendations of the Task force on Climate-related Financial Disclosures

Impact

measurement

Launch of a "social impact measurement" model developed with Triadi – Polytechnic University of Milan spin-off. Average multiplier of ~4 for Kaleidos' projects

Sustainability Committee

The President of the Group chaired the Sustainability Committee (all top managers are members), further strengthening the governance of ESG matters

Our ESG goals

Environmental Social Governance

Net-Zero Banking Alliance¹

State and deliver on carbon objectives, as the first Italian bank to join the Net-Zero Banking Alliance (achieve net-zero emissions on own loans portfolio by 2050, by setting intermediate targets on priority sectors by 2030)

SME clients' environmental transition

Support SME clients' sustainable transition via subsidized loans, advisory, and scoring service (even with other partners)

Social Impact Lab

Manage projects to foster diversity and social inclusion in a dedicated Social Impact Lab focused on Culture, Community, and Wellbeing

Social banking

Set the market benchmark in supporting the financial recovery of debtors: ethical collection model, support to fragile families

Ifis People

Invest in the growth and development of a young and dynamic workforce with training inclusion programs; smart working and flexible work hours

Governance ESG

Further strengthen inclusion and diversity (nationality/heritage as well as gender) and empower the Sustainability Committee through chairmanship President Ernesto Fürstenberg Fassio

Obtained AA rating grade from MSCI.

Management committed to improve the rating level already obtained in the course of the plan

Disclaimer

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