Banca Sistema

Regulatory Filings • Mar 9, 2020

PRESS RELEASE

BANCA SISTEMA: CAPITAL RATIOS WELL ABOVE THE MINIMUM CAPITAL REQUIREMENTS

Milan, 9 March 2020

Banca Sistema is glad to relay the communication on the final decision of the Bank of Italy on the consolidated capital requirements to be complied with as of the first reference date of the own funds report following the date of receipt of this provision, based on the results of the Supervisory Review and Evaluation Process (SREP).

The consolidated capital requirements to be complied with, based on phase-in criteria, are for the Group:

• Common Equity Tier 1 ratio ("CET1 ratio") 7.75%, unchanged vs 2019;
• Tier 1 ratio 9.55%, +5bps vs 2019;
• Total Capital ratio ("TC ratio") 11.90%, +5bps vs 2019.

The above capital ratios correspond to the Overall Capital Requirement (OCR) ratios, as defined in the Guidance and represent the sum of the binding measures (Total SREP Capital Requirement ratio – TSCR) and the combined capital buffer requirement.

The SREP decision does not include specific quantitative liquidity requirements.

At 31 December 2019, Banca Sistema Group reported the following pro-forma capital ratios¹ :

• • Pro-forma CET1 ratio 13.9%;
• • Pro-forma Tier 1 ratio 14.6%;
• • Pro-forma TC ratio 17.8%;

which are all well above the requirements listed above.

Contacts:

Investor Relations

Carlo Di Pierro Tel. +39 02 80280358 E-mail carlo.dipierro@bancasistema.it

Media Relations

Patrizia Sferrazza Tel. +39 02 80280354 E-mail patrizia.sferrazza@bancasistema.it

Banca Sistema

Banca Sistema, founded in 2011 and listed in 2015 on Borsa Italiana's Star segment, is a financial institution specialized in purchasing trade receivables owed by the Italian Public Administrations and tax receivables, and engages in consumer credit through salary- and pension-backed loans and gold/jewelry-backed loans. The Bank engages in the salary- and pension backed loans business by purchasing loan pools and through the direct origination of the QuintoPuoi product. The gold/jewelry-backed lending business is carried out via the fully-owned company ProntoPegno S.p.A. The bank offers also deposit products to a base of about 35 thousand customers, with an offering that includes current accounts, deposit accounts and securities accounts, in addition to other services as credit management and recovery, bank guarantees and security bonds, PA receivables certification and e-billing. With head offices in Milan and Rome, Banca Sistema is also present in Bologna, Pisa, Naples, Palermo and Rimini, has 215 employees and relies on a multichannel structure.

¹ Pro-forma based on the estimated impact from the adoption of the risk-weighting reduction for CQS/CQP assets under Regulation 876/2019 on 28 June 2021. The regulatory CET1 ratio, TIER1 ratio and TC ratio on the same date come to 11.7, 12.3% and 15.0%, all well above the minimum capital requirements.