FinecoBank — Investor Presentation 2017

Jul 31, 2017

Fineco: 2Q17 Results

Milan, July 31st 2017 Alessandro Foti, CEO and General Manager

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 forwardlooking 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.

Agenda

Focus on product areas

Key messages and Initiatives monitoring

Executive Summary

1H17 net profit at 104.3mln (+3.2% y/y net of non recurring items(1) , +6.8% y/y net of profits from Govies sale in 1Q16(2) ) the best semester ever

2Q17 net profit at 52.6mln (+5.6% y/y net of non recurring items(1) , +1.7% q/q)

1H17 growing revenues (+5.2% y/y net of profits from Govies sale in 1Q16(2) ) boosted by Investing area (+13.7% y/y with management fees up +15.3% y/y) and Banking area (+6.9% y/y thanks to high quality volume growth in deposits and lending). Brokerage performed well in 1H17 despite volatility at the bottom since 2013

1H17 Operating Costs well under control at 121.2mln (+2.9% y/y) confirming operating leverage as a key strength of the bank

Strong capital position: CET1 ratio transitional at 22.14%

Solid and sustainable commercial activity in the first semester with a relentless improvement in the asset mix:

• Net sales at 2.9bn (+9% y/y), of which 61% represented by AuM (12% in 1H16)
• Record high net sales in Guided Products & Services: 2.0bn in the first six months (+17% y/y) with the penetration rate on AuM stock at 60% (+9 p.p. y/y)
• TFA at 63.6bn (+15% y/y) of which TFA related to Private Banking segment at 24bn (+22% y/y)
• ~1.162 mln clients as of June 30th (+7% y/y), 61,756 new clients (+4% y/y)

(1) 2Q16 non recurring items: gain on Visa sale (revenues): +15.3mln gross (+10.3mln net); positive closing of tax dispute: +6.5mln tax release (2) In 1Q16, 704mln (nominal value) of Spanish and Italian government bonds at variable rate and residual maturity <3yrs sold. Govies at fixed rate with maturity between 3 and 6 years were bought afterwards

Results

1H17 Net Profit at 104.3mln, the best semester ever, boosted by high quality revenue growth and operating costs under control

Net Profit, mln

(1) 2Q16 non recurring items: gain on Visa sale (revenues): +15.3mln gross (+10.3mln net); positive closing of tax dispute: +6.5mln tax release (2) In 1Q16, 704mln (nominal value) of Spanish and Italian government bonds at variable rate and residual maturity <3yrs sold. Govies at fixed rate with maturity between 3 and 6 years were bought afterwards

(3) Adj. C/I ratio calculated as Operating Cost divided by Revenues net of non recurring items (see page 28)

5 (4) Adj. RoE: annualized Net Profit net of non recurring items (see page 28) divided by the average book shareholders' equity for the period (excluding dividends expected to be distributed and the revaluation reserves)

Revenues by P&L Items

Sound and diversified stream of revenues. Net interest income +3% y/y despite interest rate environment. Management fees strongly up +15.3% y/y

(1) 2Q16 non recurring items: gain on Visa sale (revenues): +15.3mln gross

(2) In 1Q16 FinecoBank sold some Spanish and Italian government bonds in order to mitigate exposure to interest rate risk: nominal value 704 mln,

6 variable rate, residual maturity < 3 years. As a consequence, Govies at fixed rate with maturity between 3 and 6 years were bought afterwards

Net interest

Sustainable net interest income dynamics despite lower y/y rates supported by double digit growth in volumes, both sticky sight deposits and high quality lending

Lending(1) (mln) and net margins (bps)

Investment policy

7

Volumes, margins and 1M Euribor: average of the period

Net interest sustainability analysis and potential future upside

Sustainability analysis: sight deposits growth to offset lower rates and bond portfolio run-off. Sensitivity analysis +100bps parallel shift: +79 mln

Minimum sight deposits growth to maintain interest income from UC bonds ptf quite aligned to 2016

(1) as of July 17th , spread on 1M Euribor

Costs

Cost efficiency and operating leverage confirmed in our DNA

Other administrative expenses, mln (1)

Write-down/backs and depreciation, mln

Capital Ratios

Best in class capital position and low risk balance sheet

CET1 Ratio transitional, %

CET1 Capital, mln

TFA

Relentless TFA growth thanks to a healthy expansion in net sales Guided products & Services increased at 60% of total AuM

TFA breakdown

Successful shift towards high added value products

Guided Products includes Advice service which comprises a small component of AuC and Deposits (0.4bn in Jun.17, 0.4bn in Dec.16, 0.3bn in Dec.15 and 0.3bn in Dec.14)

Net sales breakdown

Net sales highlights the continuous improvement in the asset mix thanks to the increasing productivity of the network

Organic growth

Net sales organically generated confirmed as key in our strategy of growth

14

Agenda

Fineco Results

Focus on product areas

Key messages and Initiatives monitoring

15

Revenues by Product Area

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

16

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

Banking

Sound performance driven by strong volume growth and customer acquisition thanks to high quality services and customer satisfaction

Managerial Data

Brokerage

Outstanding brokerage results despite the lowest volatility since 2013 confirming the strong potential of this business

Managerial Data

18

(1) Volatility calculated as average volatily of FTSEMIB, DAX, SP500, weighted on related executed orders by our clients. Revenues calculated as brokerage gross core revenues (NII excluded).

Investing

Successful strategy on cyborg advisory approach drove a better asset mix and increasing fees

Managerial Data

(1) Mainly PFAs annual bonus

Agenda

Fineco Results

Focus on product areas

Key messages and Initiatives monitoring

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

In July Standard Ethics(1) upgraded our Standard Ethics Rating(2) to "EE", a "full investment grade" given to sustainable companies with low reputational risk profile and strong prospects for long-term growth

(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.

(2) 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.

1H17 key messages

Healthy growth and sustainability at the heart of Fineco's business model

Clients' acquisition leveraging on high quality services. Cost of funding close to zero

• Organic growth as main engine of growth. Selected recruits to improve the quality and related costs well under control
• High quality Lending with low cost of risk, strong competitive advantage leveraging on Big Data analytics

Delivery of consistent results in every market condition

• Growing revenues thanks to a very well diversified business model with smooth quarterly path
• Sound Brokerage performance in the period, despite the lowest volatility since 2013
• Costs under control on the wave of a huge operating leverage, strong IT internal culture

(1) Net Profit adjusted net of Deposit Guarantee Scheme (2015 DGS: -3.1mln net, 2016 DGS : -7.1mln net)

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

(1) Other loans include current receivables associated with the provisions of financial services (86 mln in Jun.17 vs 82 mln in Dec.16), collateral deposits and initial and variation margins (53 mln in Jun.17 vs 34mln in Dec.16), bad loans (3 mln in Jun.17 vs 3 mln in Dec.16), other (-2 mln in Jun.17 vs -1mln in Dec.16)

(2) Cost of risk: is the ratio of annualized net write-downs of loans and provisions for guarantees and commitments to Loans and receivables with customers (average of the balance at period end and the balance at Dec.31st of the previous year)

23

Initiatives monitoring - Banking Area, focus on Credit

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

1

24

Initiatives monitoring - Investing Area (1/2) Increase network's productivity and Private Banking

Private Banking Total Financial Assets

• Private Banking area is experiencing a huge growth both in terms of assets and clients. Through Private Banking we want to create a deeper relationship with the client, combining advanced technology with the unique professional skills of our advisors to achieve client's life goals
• Tailor-made solutions, portfolio analysis and monitoring, investment advisory, fund research and selection

Initiatives monitoring - Investing Area (2/2) New Management Company

Scope and benefits of the project

• As announced, we are working to set up our own Management Company in Ireland, one of the main financial hubs for asset management industry. It will be 100% owned by FinecoBank
• The aim is to integrate the fund management selection process improving efficiency and creating added value through a vertical and integrated approach
• The Management Company will create and manage mutual funds (funds of funds and sub-advised funds) leveraging on the concept of open architecture. It will act as a hub to select best large-size players and best boutiques in the market
• It will expect to manage both new assets and ~€7bn of current "Core Series". Our expectations are very positive in terms of volume growth in the next years as the majority of new inflows will come from the Management Company. The new funds will enrich both financial and insurance wrappers.
• The project will be implemented through a full disclosure approach with involved Tax Authorities, ensuring an ex-ante compliance of the project at fiscal level avoid issues with the authorities while the company runs at full-steam
• The cost structure is going to be extremely lean and focused on the execution of strategic tasks, while outsourcing administrative services
• This project is expected to generate a relevant and recurring improvement in the future profitability of the Bank

Annex

P&L

mln	1Q16	2Q16	1H16	3Q16	4Q16	FY16	1Q17	2Q17	1H17
Net interest income	62.2	61.2	123.4	62.5	63.4	249.4	62.9	64.3	127.2
Net commissions	58.2	59.7	117.8	59.3	65.8	242.9	64.7	65.0	129.7
Trading profit	19.6	27.3	46.9	10.8	11.3	69.1	13.7	12.3	26.0
Other expenses/income	0.1	0.7	0.8	-0.8	-2.2	-2.2	0.5	-0.8	-0.2
Total revenues	140.1	148.8	289.0	131.8	138.4	559.1	141.8	140.8	282.7
Staff expenses	-18.7	-19.0	-37.7	-19.3	-16.6	-73.7	-19.2	-19.7	-38.9
Other admin.exp. net of recoveries	-39.3	-36.1	-75.4	-31.4	-35.9	-142.7	-39.2	-38.2	-77.4
D&A	-2.2	-2.4	-4.6	-2.6	-2.7	-10.0	-2.3	-2.5	-4.8
Operating expenses	-60.2	-57.5	-117.7	-53.4	-55.3	-226.4	-60.7	-60.4	-121.2
Gross operating profit	79.9	91.3	171.2	78.4	83.1	332.7	81.1	80.4	161.5
Provisions	-1.4	-1.1	-2.6	-11.3	3.9	-10.0	-2.4	-0.8	-3.1
LLP	-1.4	-1.4	-2.8	-0.7	-0.7	-4.2	-0.5	-1.0	-1.5
Integration costs	0.0	0.0	0.0	0.0	-5.5	-5.5	0.0	0.0	0.0
Profit from investments	0.0	0.0	0.0	0.0	-6.7	-6.7	0.0	-0.4	-0.4
Profit before taxes	77.1	88.8	165.9	66.4	74.1	306.3	78.2	78.3	156.5
Income taxes	-25.8	-22.3	-48.1	-21.8	-24.6	-94.5	-26.5	-25.7	-52.2
Net profit for the period	51.2	66.6	117.8	44.6	49.5	211.8	51.7	52.6	104.3
Normalised Net Income(1)	51.2	49.8	101.0	44.6	55.1	200.7	51.7	52.6	104.3

Non recurring items (mln, gross)	1Q16	2Q16	1H16	3Q16	4Q16	FY16	1Q17	2Q17	1H17
VISA sale (Trading Profit)		15.3	15.3			15.3		0.0	0.0
(2) Extraord systemic charges (Provisions)			0.0		3.7	3.7			0.0
Integration costs			0.0		-5.5	-5.5			0.0
Cassa di Risp di Cesena (Profit from investm)			0.0		-6.7	-6.7			0.0
Release of taxes		6.5	6.5			6.5		0.0	0.0
Total	0.0	21.9	21.9	0.0	-8.5	13.3	0.0	0.0	0.0

(1) Net of non recurring items

(2) Solidarity fund for retail clients invested in subordinated bonds issued by 4 Italian banks rescued

P&L net of non recurring items

mln	1Q16	2Q16 Adj	1H16 Adj	1Q17	2Q17	1H17	1H17/ 1H16	2Q17/ 2Q16	2Q17/ 1Q17
Net interest income	62.2	61.2	123.4	62.9	64.3	127.2	3.0%	5.0%	2.2%
Net commissions	58.2	59.7	117.8	64.7	65.0	129.7	10.1%	9.0%	0.5%
Trading profit	19.6	11.9	31.6	13.7	12.3	26.0	-17.7%	2.9%	-10.4%
Other expenses/income	0.1	0.7	0.8	0.5	-0.8	-0.2	n.m.	n.m.	n.m.
Total revenues	140.1	133.5	273.6	141.8	140.8	282.7	3.3%	5.5%	-0.7%
Staff expenses	-18.7	-19.0	-37.7	-19.2	-19.7	-38.9	3.2%	3.7%	2.6%
Other admin.expenses	-39.3	-36.1	-75.4	-39.2	-38.2	-77.4	2.7%	6.0%	-2.4%
D&A	-2.2	-2.4	-4.6	-2.3	-2.5	-4.8	4.8%	2.7%	7.4%
Operating expenses	-60.2	-57.5	-117.7	-60.7	-60.4	-121.2	2.9%	5.1%	-0.4%
Gross operating profit	79.9	76.0	155.9	81.1	80.4	161.5	3.6%	5.8%	-0.9%
Provisions	-1.4	-1.1	-2.6	-2.4	-0.8	-3.1	23.4%	-30.6%	-67.5%
LLP	-1.4	-1.4	-2.8	-0.5	-1.0	-1.5	-45.0%	-26.5%	85.5%
Integration costs	0.0	0.0	0.0	0.0	0.0	0.0
Profit from investments	0.0	0.0	0.0	0.0	-0.4	-0.4	n.m.	n.m.	n.m.
Profit before taxes	77.1	73.5	150.5	78.2	78.3	156.5	3.9%	6.5%	0.1%
Income taxes	-25.8	-23.7	-49.5	-26.5	-25.7	-52.2	5.3%	8.3%	-3.1%
Net profit adjusted 1	51.2	49.8	101.0	51.7	52.6	104.3	3.2%	5.6%	1.7%

(1) Net of non recurring items 2Q16: gain on Visa sale (revenues): +15.3mln gross (+10.3mln net); positive closing of tax dispute: +6.5mln tax release

Details on Net Interest Income

mln	1Q16	Volumes & Margins	2Q16	Volumes & Margins	1H16	Volumes & Margins	3Q16	Volumes & Margins	4Q16	Volumes & Margins	FY16	Volumes & Margins	1Q17	Volumes & Margins	2Q17	Volumes & Margins	1H17	Volumes & Margins
Sight Deposits	55.4	15,328	54.2	16,105	109.6	15,716	54.6	16,663	55.7	17,193	219.9	16,322	55.4	18,193	55.6	18,824	111.0	18,509
Net Margin		1.45%		1.35%		1.40%		1.30%		1.29%		1.35%		1.24%		1.18%		1.21%
Term Deposits	-0.3	628	-0.3	540	-0.6	584	-0.2	413	-0.1	284	-0.9	466	-0.1	131	0.0	50	-0.1	90
Net Margin		-0.19%		-0.22%		-0.21%		-0.20%		-0.16%		-0.20%		-0.31%		-0.39%		-0.33%
Security Lending	1.0	1,094	1.0	1,217	2.0	1,156	0.8	1,037	0.7	995	3.6	1,086	0.7	938	0.6	831	1.3	884
Net Margin		0.37%		0.33%		0.35%		0.31%		0.30%		0.33%		0.30%		0.30%		0.30%
Leverage - Long	1.8	118	1.6	106	3.5	112	1.6	103	1.7	112	6.8	110	1.9	130	2.2	152	4.0	141
Net Margin		6.20%		6.19%		6.19%		6.11%		6.24%		6.19%		6.18%		6.13%		6.15%
Lendings	5.1	511	5.4	555	10.4	533	5.7	674	6.1	723	22.2	616	6.5	794	7.5	1,010	14.0	902
Net Margin		3.98%		3.88%		3.93%		3.35%		3.34%		3.60%		3.33%		2.97%		3.13%
Other	-0.7		-0.7		-1.4		0.0		-0.7		-2.1		-1.5		-1.5		-3.0
Total	62.2		61.2		123.4		62.5		63.4		249.4		62.9		64.3		127.2

Volumes and margins: average of the period Net margin calculated on real interest income and expenses

UniCredit bonds underwritten

	ISIN	Currency	Amount (€ m)	Maturity	Indexation	Spread
1	IT0004307861 Amortizing	Euro	150.0	2-Oct-17	Euribor 1m	0.51%
	IT0004307861 Amortizing	Euro	150.0	2-Jan-18	Euribor 1m	0.51%
2	IT0005010258	Euro	382.5	27-Jul-17	Euribor 1m	1.94%
3	IT0005010738	Euro	382.5	25-Oct-17	Euribor 1m	2.01%
4	IT0005010266	Euro	382.5	24-Jan-18	Euribor 1m	2.08%
5	IT0005010274	Euro	382.5	23-Apr-18	Euribor 1m	2.14%
6	IT0005010290	Euro	382.5	23-Jul-18	Euribor 1m	2.19%
7	IT0005010357	Euro	382.5	19-Oct-18	Euribor 1m	2.24%
8	IT0005010373	Euro	382.5	18-Jan-19	Euribor 1m	2.29%
9	IT0005010613	Euro	382.5	1-Apr-19	Euribor 1m	2.33%
10	IT0005010282	Euro	382.5	15-Jul-19	Euribor 1m	2.37%
11	IT0005010399	Euro	382.5	14-Oct-19	Euribor 1m	2.40%
12	IT0005010324	Euro	382.5	13-Jan-20	Euribor 1m	2.44%
13	IT0005010365	Euro	382.5	10-Apr-20	Euribor 1m	2.47%
14	IT0005010308	Euro	382.5	9-Jul-20	Euribor 1m	2.49%
15	IT0005010381	Euro	382.5	7-Oct-20	Euribor 1m	2.52%
16	IT0005010332	Euro	382.5	6-Jan-21	Euribor 1m	2.54%
17	IT0005010316	Euro	382.5	6-Apr-21	Euribor 1m	2.56%
18	IT0005010340	Euro	382.5	5-Jul-21	Euribor 1m	2.58%
19	IT0005010225	Euro	382.5	18-Oct-21	Euribor 1m	2.60%
20	IT0005010142	USD1	43.8	19-Apr-18	USD Libor 1m	2.34%
21	IT0005010134	USD1	43.8	1-Apr-19	USD Libor 1m	2.53%
22	IT0005010860	USD1	43.8	7-Apr-20	USD Libor 1m	2.66%
23	IT0005010217	USD1	43.8	1-Apr-21	USD Libor 1m	2.75%
24	IT0005158503	USD1	43.8	23-Dec-22	USD Libor 1m	1.93%
25	IT0005040099	Euro	100.0	24-Jan-22	Euribor 1m	1.46%
26	IT0005057994	Euro	200.0	11-Apr-22	Euribor 1m	1.43%
27	IT0005083743	Euro	300.0	28-Jan-22	Euribor 1m	1.25%
28	IT0005106189	Euro	230.0	20-Apr-20	Euribor 1m	0.90%
29	IT0005114688	Euro	180.0	19-May-22	Euribor 1m	1.19%
30	IT0005120347	Euro	700.0	27-Jun-22	Euribor 1m	1.58%
31	IT0005144065	Euro	450.0	14-Nov-22	Euribor 3m2	1.40%
32	IT0005144073	Euro	350.0	15-Nov-21	Euribor 3m2	1.29%
33	IT0005158412	Euro	250.0	23-Dec-22	Euribor 3m2	1.47%
34	IT0005163180	Euro	600.0	11-Feb-23	Euribor 3m2	1.97%
35	IT0005175135	Euro	100.0	24-Mar-23	Euribor 3m2	1.58%
36	IT0005217606	Euro	350.0	11-Oct-23	Euribor 3m2	1.65%
37	IT0005241317	Euro	622.5	2-Feb-24	Euribor 3m2	1H17 1.52%
	Total	Euro	11,617.5		Euribor 1m	1.989%
		USD 1	219.1		USD Libor 1m	2.442%

Amounts expressed at EUR/USD 1.1412 exchange rate (as of June30th)

In order to calculate an average spread on Eur1m, a basis swap of 0.06% is considered

Details on Net Commissions

mln	1Q16	2Q16	1H16	3Q16	4Q16	FY16	1Q17	2Q17	1H17
Brokerage	20.3	18.5	38.8	16.6	19.5	74.9	20.3	18.3	38.5
o/w
Equity	16.5	15.2	31.7	12.9	16.0	60.6	16.7	15.2	31.9
Bond	1.1	1.1	2.3	0.9	1.2	4.4	1.0	0.9	1.9
Derivatives	3.2	2.6	5.8	2.4	2.4	10.6	2.4	2.0	4.4
Other commissions(1)	-0.5	-0.5	-1.0	0.4	-0.1	-0.7	0.1	0.2	0.3
Investing	37.5	40.2	77.6	41.0	44.1	162.7	43.7	44.6	88.3
o/w
Placement fees	1.8	2.8	4.6	2.4	2.9	9.9	3.1	2.9	6.0
Management fees	40.0	40.5	80.5	43.0	44.0	167.4	45.3	47.4	92.8
to PFA's	-4.3	-3.2	-7.4	-4.4	-2.7	-14.6	-4.7	-5.7	-10.5
Banking	0.3	0.8	1.1	1.6	2.0	4.7	0.6	1.9	2.6
Other	0.1	0.3	0.4	0.1	0.1	0.6	0.1	0.2	0.4
Total	58.2	59.7	117.8	59.3	65.8	242.9	64.7	65.0	129.7

(1) Other commissions include security lending and other PFA commissions related to AuC

Revenue breakdown by Product Area

mln	1Q16	2Q16	1H16	3Q16	4Q16	FY16	1Q17	2Q17	1H17
Net interest income	59.7	58.9	118.6	59.9	61.3	239.8	61.9	63.0	125.0
Net commissions	0.3	0.8	1.1	1.6	2.0	4.7	0.6	1.9	2.6
Trading profit	0.9	1.1	2.0	0.9	1.5	4.4	1.3	1.0	2.3
Other	0.0	0.1	0.1	0.1	0.1	0.2	0.1	0.1	0.2
Total Banking	61.0	60.8	121.7	62.5	64.9	249.1	64.0	66.1	130.1
Net interest income	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Net commissions	37.5	40.2	77.6	41.0	44.1	162.7	43.7	44.6	88.3
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	0.0	0.0	0.0	0.0	0.0	0.0
Total Investing	37.5	40.2	77.6	41.0	44.1	162.7	43.7	44.6	88.3
Net interest income	3.0	2.8	5.8	2.6	2.8	11.2	2.8	3.2	6.0
Net commissions	20.3	18.5	38.8	16.6	19.5	74.9	20.3	18.3	38.5
Trading profit	13.3	11.1	24.4	9.6	10.2	44.1	11.5	10.4	21.9
Other	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Total Brokerage	36.6	32.3	68.9	28.7	32.5	130.1	34.6	31.9	66.4

Managerial Data

Breakdown TFA

mln	March 16	June 16	Sept 16	Dec. 16	March 17	June 17
AUM	25,565	25,911	27,522	28,608	29,742	30,614
o/w Funds and Sicav	22,332	22,395	23,645	24,258	24,984	25,461
o/w Insurance	3,219	3,505	3,865	4,339	4,749	5,145
o/w GPM	14	12	12	11	9	9
AUC	12,889	12,688	13,051	13,078	13,895	13,870
o/w Equity	6,718	6,526	6,877	7,135	7,969	8,110
o/w Bond	6,086	6,081	6,091	5,859	5,858	5,700
o/w Other	85	82	83	84	68	60
Direct Deposits	16,527	16,965	16,989	18,509	18,566	19,142
o/w Sight	15,915	16,491	16,638	18,296	18,504	19,105
o/w Term	612	475	351	213	62	38
Total	54,980	55,564	57,562	60,195	62,202	63,627

o/w Guided Products & Services	12,082	13,298	14,949	16,135	17,470	18,399

Balance Sheet

mln	March 16	June 16	Sept 16	Dec. 16	March 17	June 17
Due from Banks	15,404	15,299	14,442	15,736	15,462	14,827
Customer Loans	827	880	972	1,017	1,166	1,504
Financial Assets	2,629	2,933	3,592	3,764	3,912	4,770
Tangible and Intangible Assets	111	111	112	112	112	113
Derivatives	7	9	8	9	12	15
Other Assets	286	328	327	349	262	284
Total Assets	19,265	19,561	19,453	20,986	20,927	21,513
Customer Deposits	16,693	17,133	17,250	18,801	18,884	19,441
Due to Banks	1,504	1,362	1,139	1,111	980	930
Derivatives	20	18	15	11	17	16
Funds and other Liabilities	355	446	392	382	314	506
Equity	692	603	656	681	732	621
Total Liabilities and Equity	19,265	19,561	19,453	20,986	20,927	21,513

	March 16	June 16	Sept 16	Dec. 16	March 17	June 17
PFA TFA/ PFA (mln) (1)	17.8	17.9	18.8	19.6	20.2	20.7
Guided Products / TFA (2)	22%	24%	26%	27%	28%	29%
Cost / income Ratio (3)	43.0%	43.0%	42.2%	41.6%	42.8%	42.9%
CET 1 Ratio	21.3%	22.7%	23.1%	22.9%	22.2%	22.1%
Adjusted RoE (4)	43.4%	42.1%	40.0%	40.8%	39.5%	39.3%
Leverage Ratio (5)	10.14%	9.46%	8.23%	8.26%	7.89%	6.79%

(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 28)

(4) Adjusted RoE: annualized Net Profit, net of non recurring items (see page 28) divided by the average book shareholders' equity for the period (excluding dividends and donations expected to be distributed and the evaluation reserves)

(5) Leverage ratio based on CRR definition, according to the EC Delegated Act 2015/62 regarding the exclusion of intra-group exposure

Highly scalable operating platform

Platform excellence and cost discipline providing strong operating leverage

Stated Revenues, Operating Costs, Cost/Income Ratio as of December 2016 Financial Income Statement.