Banca Ifis

Investor Presentation • Mar 16, 2017

Banca IFIS Group: 2016 financial results

March 2017

HIGHLIGHTS

		(Million Euro)
--	--	----------------	--

Net profit	687,9	(162,0 at 31/12/2015)	+324,7%
Equity	1.218,8	(573,5 at 31/12/2015)	+112,5%
Funding	7.037,7	(6.150,5 at 31/12/2015)	+14,4%
Loans	5.928,2	(3.437,1 at 31/12/2015)	+72,5%

GROUP KPIs	12 months 2016	12 months 2015
Cost of credit SMEs	80 b.p.	89 b.p.
EPS	12,94	3,05
Adjusted* EPS	1,69	1,49
Book value/share €	22,81	10,81

* 2016 adj for Interbanca acquisition; 2015 adj for gain on bond portfolio sale

NET BANKING INCOME (NBI)

(Million Euro)

326,0 (404,3 in 12 months 2015)

+16,5% LFL Banca IFIS old perimeter (excluding gain from bond portfolio sale in 2015)

-19,4% change in 12 months 2016/2015

Data	Trade receivables	Corporate banking	Leasing	DRL	Tax receiv.	G&S
2016	174,4*	3,0**	-1,2**	154,7	14,0	-19,0
2015	158,7	na	na	52,7	20,3	172,6

% Change 9,9% na na 193,7% -31,2% -111,0%

BREAKDOWN BY CLUSTER IN TRADE RECEIVABLES SEGMENT

INSIGHT ON TRADE RECEIVABLES SEGMENT

YR end data

INSIGHT ON NPL AREA

NET RESULT OF FINANCIAL OPERATIONS

(Million Euro)

+20,1% excl. 124,5 m Euro plusvalue from govvies sale in April 2015 0,0%

Data	Trade receivables	Corporate banking	Leasing	DRL	Tax receiv.	G&S
2016	154,1	2,9	-2,7	154,7	13,6	-23,3
2015	137,4	na	na	52,7	19,9	163,7
% Change	+12,2%	na	na	193,7%	-31,6%	-114,3%

NET PROFIT

BALANCE SHEET – ASSET STRUCTURE

CREDIT QUALITY: TRADE RECEIVABLES

(Million Euro) % change 31.12.2016 vs 31.12.2015

Loans to customers : 3.092,5 +8,6%

CREDIT QUALITY: CORPORATE BANKING

(Million Euro) % change 31.12.2016 vs 31.12.2015

Loans to customers : 905,7

CREDIT QUALITY: LEASING

(Million Euro) % change 31.12.2016 vs 31.12.2015

Loans to customers : 1235,6

BALANCE SHEET – LIABILITIES STRUCTURE

	(Million Euro) % change 31.12.2016 vs 31.12.2015
--	--------------------------------------------------

rendimax + contomax		Total funds and deposits
4.519,3	+45,2%	5.549,1 -9,8%
Corporate time depo
101,5		Debt and securities in issue (bond, securitization, deposit
PCT		certificates)
		1.488,6 (0 at 31.12.2015)
50,9 due from banks	-86,8%
270,3 due to customers	-88,1%	Total funding
Due to banks		7.037,7 +14,4%
453,1	+62,5%

DEBT SECURITIES PORTFOLIO AT 31.12.2016

(Million Euro) Accounting at Fair Value

	By December 2017 1*	from January to December 2019	from January to December 2020	Total
Total	270,3	30,1	52,8	353,2
% on total	76,5%	8,5%	15,0%	100%

1*= As of today all expired.

BANCA IFIS GROUP: EQUITY BREAKDOWN

(Million Euro)

EQUITY: CHANGES
Net equity at 31.12.2015	573,5
	Increases	696,8
	Profit for the period	687,9
	Shares sale	8,7
	Other	0,1
	Decreases	(51,5)
	(40,3)
Change	of AFS reserve	(10,1)
	Forex changes	(1,1)
	Other	(0)
Net equity at 31.12.2016		1.218,8
Banca IFIS only KPIs	2016	2015
	31/12	31/12
Common Equity Tier 1 Ratio (CET1)	15,71%	15,78%
Tier 1 Capital Ratio	15,71%	15,78%
Total Own Fund Capital Ratio	15,71%	15,78%

(Million Euro)

(*) Net bad loans/Net Loans to customers (within Trade receivables) **Ratio without parent company La Scogliera minority

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.