FinecoBank — Investor Presentation 2018

Nov 6, 2018

3Q18 Results

Milan, November 6th 2018 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 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) 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.
• This Presentation has been prepared on a voluntary basis since the financial disclosure additional to the half-year and annual ones is no longer compulsory pursuant to law 25/2016 in application of Directive 2013/50/EU, in order to grant continuity with the previous quarterly presentations. FinecoBank is therefore not bound to prepare similar presentations in the future, unless where provided by law. 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

Executive Summary

• 9M18 net profit adjusted(1) at 178.8mln, strongly up y/y (+13.9% y/y(2) ) confirming the sustainability of a business model able to delivery consistent results in every market condition
• 3Q18 net profit adjusted(1) at 53.6mln (+1.8% y/y (2) ). Comparison with 2Q18 affected by the annual contribution to deposit guarantee scheme (-14.3 million gross accounted in 3Q18)
• 9M18 growing revenues (+7.8% y/y) supported by Investing area (+9.9% y/y with management fees up +12.6% y/y) and Banking area (+8.8% y/y thanks to high quality volume growth in deposits and lending).
• 9M18 Operating Costs adjusted(1) well under control at 182.8mln (+4.6% y/y) and C/I ratio at 39%, down -1.2 p.p. y/y, confirming operating leverage as a key strength of the bank
• Strong and safe capital position: CET1 ratio transitional at 20.5% and TCR transitional at 28.9%
• 9M18 commercial activity confirms its robustness with strong y/y increase in net sales, assets and clients. Asset mix coherent with a more complex environment
• Net sales at 4.8bn (+14.5% y/y)
• Total Financial Assets at 70.9bn (+8.4% y/y)
• Guided Products & Services penetration rate on AuM stock up to 66% (+5.1 p.p. y/y)
• Almost 1,260mln clients (+6.5% y/y)

Results

5

9M18 adjusted net profit +14% y/y in a more complex environment. Well diversified revenues up +7.8% y/y and C/I ratio down ~1.2 p.p. y/y at 39%

(1) 9M18 non recurring items: severance (staff expenses) -1.6mln gross, -1.1mln net in 3Q18. 9M17 non recurring items: FITD/ Voluntary Scheme -8.8mln gross, -5.9mln net.

Adj. Cost/Income and adj. RoE calculated net of non recurring items. See page 33 for details.

Net interest income (1/2)

Remarkable net interest income dynamic (+6.6% y/y) in a negative rate environment. Relentless increase in high-quality lending portfolio

(1) Financial investments include interest income coming from the reinvestments of deposits (both sight and term) in: Government bonds, UC bonds and Other Financial Investments (repos and immediate available liquidity)

(2) Other net interest income includes Security Lending, Leverage and other (mainly marketing costs), other interest-earning assets include Security Lending and Leverage. See page 33 for details.

(3) Lending: only interest income

(4) Gross margins: interest income related to financial investments, lending, leverage, security lending on interest-earning assets. 2017 gross margins refined with managerial data for a better representation 6

Net interest income (2/2)

A progressive increase in a more diversified asset side continues. Sensitivity analysis +100bps parallel shift: +113 mln

Commissions and Trading Income

Fees and commissions grew +9.7% y/y with management fees up 12.6% y/y. 3Q18 brokerage affected by low market volatility

Costs

Cost efficiency and operating leverage confirmed in our DNA

Staff expenses and FTE Long Term Incentive Plans

Other administrative expenses(2) Write-down/backs and depreciation

(1) non recurring items: severance (staff expenses) -1.6mln gross in 3Q18

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

(1) Current accounts/overdraft Include Lombard loans

(2) Other loans include current receivables associated with the provisions of financial services (83mln in Sep.18 vs 85mln in Dec.17), collateral deposits and initial and variation margins (85mln in Sep.18 vs 43mln in Dec.17), bad loans (1.8mln in Sep.18 vs 1.6mln in Dec.17), other (+0.2mln in Sep.18 vs +3.2mln in Dec.17)

Lending

Boost in high quality lending volume through mortgages, personal loans and lombard loans

(1) Yield on mortgages net of amortized and hedging costs

(2) Credit Lombard allows to change pledged assets without closing and re-opening the credit line, allowing more flexibility and efficiency

(3) with floor at zero

Capital Ratios

Best in class capital position and low risk balance sheet.

Look-through implementation drove +208bps YTD benefit on CET1 ratio

(1) Starting from 3Q18, infra-semester results are certified by external Auditors, therefore retained earnings are included in Equity

TFA

Relentless TFA growth thanks to a healthy expansion in net sales. Guided products & Services increased at 66% of total AuM

TFA breakdown

Successful shift towards high added value products thanks to strong productivity of the network

Plus services

Net sales breakdown

Solid 2018 net sales growth on the wave of structural trends in place despite a complex environment

Organic growth

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

of PFAs recruited in the period

Agenda

Fineco Results

Focus on product areas

Key messages

Revenues by Product Area

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

9M18 weight on total revenues for each product area

18

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 relentless clients' acquisition, thanks to high quality services and best-in-class customer satisfaction

Brokerage

Brokerage performance coherent with low markets' volatility in the period

Revenues vs volatility(1)

Managerial Data

20

• 9M18 Revenues affected by low market volatility. In addition, starting from July 2018 new ESMA regulation in place with modest impacts on Brokerage performance. We are setting up new products and solutions to offset this effect.
• Structural improvement thanks to larger base of clients/higher market share and the enlargement of the products offer
• Continuously increasing market share (i.e. market share on equity traded volumes in Italy at 24% as of June 2018(2) , +4.4p.p. vs Dec.17 confirming Fineco as leader in brokerage)

(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) (2) Assosim

Investing

Successful strategy based on our cyborg advisory approach drove a better asset mix and increasing fees y/y

Guided products on total AuM

Managerial Data

(1) Mainly PFAs annual bonus and new 2018-2020 LTI to PFAs starting from 1Q18

21 AuC and Deposits under advisory have been reclassified within AuM in order to have a better representation of the advisory nature of Advice and Plus services

Agenda

Fineco Results

Focus on product areas

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 2018 Standard Ethics(1) confirmed our Standard Ethics Rating(2) at "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.

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
• Sustainable investing revenues for the most represented by recurring fees (entry fees ~4% on investing fees)
• 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
• Brokerage as countercyclical contributor in revenue generation benefitting from spikes in markets' volatility
• Costs under control on the wave of a huge operating leverage, strong IT internal culture

Operating Leverage A distinctive competitive advantage of Fineco

	IT and back office internally managed, deep internal know-how
	 18% FTEs in IT department, 25% in Back-Office
Platform scalability	 Core system internally managed
	 Internal DWH to fully leverage on Big Data Analytics
and	 Very low CAPEX (~10-12mln per year)
Operating gearing	 Continuous innovation (new apps /features, products/services, initiatives) fully in house developed: higher flexibility, better time to market and lower costs
	 Internal development and implementation of regulatory processes and systems (i.e. Mifid 2) to maintain costs well under control

(1) Net Profit adjusted (see page 31) net of Deposit Guarantee Scheme (2015: -3.1mln net, 2016: -7.1mln net, 2017: -7.1 mln net) (2) Net of gain on Visa sale (2016: +15.3mln gross)

Dealing with pressure on margins in a pro-active way

Continuous innovation leveraging on our best-in-class internal IT culture and Big Data analytics to be recognized by clients as a premium brand. (Cyborg-advisory approach, X-Net platform, Plus advisory etc).

Increase PFAs PRODUCTIVITY

Strong opportunities in enlarging the actively managed clients thanks to our Cyborg Advisory approach and advisory platforms. +9.4% y/y total assets per PFA of which +10% y/y AuM and +20% y/y guided products and services.

Net sales from existing clients more than doubled in the last 2 years.

Further increase of our operational efficiency through Fineco Asset Management , being in control of the full AuM value chain for excellent quality and efficiency.

Brand new portfolio solutions and new generation of passive strategies with attractive margins completely developed in house by FAM.

1

2

Continuous innovation on usability and front-end efficiency to deliver distinctive products and services

INVESTING

Advanced reporting to improve usability (X-Net evolution, full access to Advice and Plus also from mobile with customizable widgets)

Monitoring of Advice service more easy and flexible

Continuous evolution of Plus

BROKERAGE

Continuous enlargement of products and markets (i.e. Daily Options with innovative features in terms of usability and customer experience)

Dedicated offer to professional clients: full operativity on binary options, direct access to professional trading desk

BANKING

1

Instant payments through web and mobile

Flexible mortgages combining fixed and floating rates according with clients needs

Instant approval on personal loans leveraging on Big Data analytics

Continuous evolution of Lombard loans more flexible and with no operational impacts for clients

96% CUSTOMER SATISFACTION (1)

Continuously increase of quality and productivity of the network

Cross selling and clients' profile

Private Banking

3

CORE SERIES	Innovative and modern approach to build portfolios, thus improving the relationship with clients. Maximum level of diversification and efficiency - global oriented - daily monitoring of strategies and constant dialogue with portfolio manager
SUB-ADVICED FUNDS	First 31 strategies by year-end: 17 strategies already released (44 share classes). Second wave expected before year-end: additional 14 strategies (35 share classes) Best global investments managers with their flagship strategies at the better conditions for customers - full visibility of underlying assets - improved risk monitoring
FAM EVOLUTION	New building blocks based on customer risk/returns profile for the evolution of FinecoBank advisory platforms. The first funds of funds will be released by year-end Brand new passive strategies fully developed in-house by FAM with attractive margins and lower price for clients Individual portfolio solutions (GPM and GPF) leveraging on agreements with external boutiques and FAM advisory

Quality improvement and time to market for customers and distribution needs

Several efficiencies leveraging on a vertically integrated business model combined with the strong operating efficiency which is in Fineco's DNA

Win-win solution: lower price for clients, higher margins

Further opportunities

Fineco UK

• Unique positioning in a highly fragmented market, leveraging on our one-stop solution. Among the most competitive players on Multicurrency account, securities and CFDs
• ISA and multi-brand funds under implementation: expected launch in 1H19
• Dedicated marketing activities on the territory (value proposition / selling points and education on brokerage)
• Ready for the second phase of the initiative, with more focus on marketing and commercial activities

Patent Box

• We applied in 2015 for intellectual properties (our platforms internally created and developed) and trademark
• We are currently in talks with Italian Fiscal Authority, which is quantifying the relevant income
• Fiscal benefits are for 5 years: 2015, 2016, 2017, 2018 and 2019 as the regime is characterized by a five year lock-in period. Intellectual proprieties are renewable according to international guidelines

Annex

mln	1Q17	2Q17	3Q17	4Q17	FY17	1Q18	2Q18	3Q18	9M17	9M18
Net interest income	63.0	64.3	67.4	70.1	264.8	68.9	68.7	69.9	194.7	207.6
Net commissions	64.7	65.0	69.7	70.7	270.1	71.5	74.5	72.7	199.4	218.7
Trading profit	13.7	12.3	11.1	11.1	48.2	14.5	13.1	10.7	37.1	38.3
Other expenses/income	0.5	-0.8	0.1	3.9	3.8	0.5	0.1	-0.4	-0.2	0.2
Total revenues	141.9	140.9	148.3	155.8	586.9	155.4	156.4	153.0	431.1	464.8
Staff expenses	-19.2	-19.7	-19.8	-20.6	-79.3	-20.5	-21.0	-23.2	-58.7	-64.7
Other admin.exp. of recoveries net	-39.2	-38.2	-31.1	-35.0	-143.6	-40.8	-37.5	-34.1	-108.5	-112.4
D&A	-2.3	-2.5	-2.6	-2.9	-10.4	-2.3	-2.5	-2.5	-7.5	-7.3
Operating expenses	-60.7	-60.4	-53.5	-58.6	-233.2	-63.6	-61.0	-59.7	-174.7	-184.4
Gross operating profit	81.2	80.4	94.8	97.3	353.6	91.8	95.4	93.3	256.4	280.5
Provisions	-2.4	-0.8	-21.0	5.2	-19.0	-1.8	-1.9	-15.9	-24.2	-19.6
LLP	-0.6	-1.1	-1.6	-2.1	-5.4	-1.3	0.2	-0.9	-3.2	-2.1
Integration costs	0.0	0.0	0.0	0.4	0.4	0.0	0.0	0.0	0.0	0.0
Profit from investments	0.0	-0.4	-1.4	-11.6	-13.4	0.0	5.2	-0.9	-1.8	4.3
Profit before taxes	78.2	78.3	70.7	89.1	316.3	88.7	98.8	75.6	227.2	263.1
Income taxes	-26.5	-25.7	-23.9	-26.0	-102.1	-29.7	-32.6	-23.0	-76.1	-85.3
Net profit for the period	51.7	52.6	46.8	63.1	214.1	59.0	66.2	52.6	151.0	177.7
Income(1) Normalised Net	51.7	52.6	52.7	61.6	218.5	59.0	66.2	53.6	156.9	178.8

Non recurring items (mln, gross)	1Q17	2Q17	3Q17	4Q17	FY17	1Q18	2Q18	3Q18	9M17	9M18
(2) (Provisions) Extraord systemic charges	0.0	0.0	-7.4	7.4	0.0	0.0	0.0	0.0	-7.4	0.0
(3) Extraord systemic charges (Profit from investm)	0.0	0.0	-1.4	-11.5	-12.9	0.0	0.0	0.0	-1.4	0.0
Integration costs	0.0	0.0	0.0	0.4	0.4	0.0	0.0	0.0	0.0	0.0
Severance								-1.6	0.0	-1.6
Release of taxes	0.0	0.0	0.0	3.9	3.9	0.0	0.0	0.0	0.0	0.0
Total	0.0	0.0	-8.8	0.3	-8.5	0.0	0.0	-1.6	-8.8	-1.6

(1) Net of non recurring items

(2) 3Q17 write-down related to the residual commitment to the Voluntary Scheme moved to Profit from Investment in 4Q17 following the payment.

(3) 2017: Voluntary Scheme contribution.

P&L net of non recurring items

mln	3Q17 . (1) Adj	9M17 (1) Adj	2Q18	3Q18 (1) Adj	9M18 (1) Adj	9M18/ 9M17	3Q18/ 3Q17	3Q18/ 2Q18
Net interest income	67 4	194 7	68 7	69 9	207 6	6 6%	3 7%	1 7%
Net commissions	69 7	199 4	74 5	72 7	218 7	9 7%	4 3%	-2 5%
Trading profit	11 1	37 1	13 1	10 7	38 3	3 3%	-3 6%	-18 0%
Other expenses/income	0 1	-0 2	0 1	-0 4	0 2	n.m.	n.m.	n.m.
Total revenues	148 3	431 1	156 4	153 0	464 8	7 8%	3 2%	-2 2%
Staff expenses	-19 8	-58 7	-21 0	-21 6	-63 1	7 5%	9 2%	2 9%
Other admin .expenses	-31 1	-108 5	-37 5	-34 1	-112 4	3 6%	9 5%	-9 2%
D&A	-2 6	-7 5	-2 5	-2 5	3 -7	-2 3%	-6 6%	-1 6%
Operating expenses	-53 5	-174 7	-61 0	-58 1	-182 8	4 6%	8 6%	-4 7%
Gross operating profit	94 8	256 4	95 4	94 9	282 1	10 0%	0 1%	-0 6%
Provisions	-13 6	-16 8	-1 9	-15 9	-19 6	16 7%	16 5%	n.m.
LLP	-1 6	-3 2	0 2	-0 9	-2 1	-36 4%	-43 2%	n.m.
Profit from investments	0 0	-0 4	2 5	-0 9	4 3	n.m.	n.m.	n.m.
Profit before taxes	5 79	236 0	98 8	77 2	264 7	12 2%	-2 9%	-21 9%
Income taxes	-26 8	-79 0	-32 6	-23 5	-85 9	8 7%	-12 3%	-27 8%
1 profit adjusted Net	52 7	156 9	66 2	53 6	178 8	13 9%	1 8%	-19 0%

(1) Net of non recurring items (see page 33 for details)

9M18 P&L FinecoBank and Fineco Asset Management

mln	Fineco Asset Management	FinecoBank Individual	FinecoBank Consolidated
Net interest income	0 0	207 6	207 6
Dividends	0 0	0 0	0 0
Net commissions	11 9	206 8	218 7
profit Trading	0 0	38 3	38 3
Other expenses/income	0 0	0 3	0 2
Total revenues	11 9	453 1	464 8
Staff expenses	-1 5	-63 2	-64 7
Other admin of recoveries net .exp.	-0 9	-111 6	-112 4
D&A	0 0	-7 3	-7 3
Operating expenses	-2 4	-182 1	-184 4
Gross operating profit	9 5	271 0	280 5
Provisions	0 0	-19 6	-19 6
LLP	0 0	-2 1	-2 1
Profit Investments on	0 0	4 3	4 3
Profit before taxes	9 5	253 5	263 1
Income taxes	-1 2	-84 1	-85 3
profit for period Net the	8 3	169 4	177 7

Details on Net Interest Income

mln	1Q17	Volumes & Margins	2Q17	Volumes & Margins	3Q17	Volumes & Margins	1Q18	Volumes & Margins	2Q18	Volumes & Margins	3Q18	Volumes & Margins	9M17	Volumes & Margins	9M18	Volumes & Margins
Financial Investments	55.4	17,530	55.6	17,864	57.2	18,086	56.9	18,449	57.5	18,887	57.0	18,817	168.3	17,827	171.5	18,718
Net Margin		1.28%		1.25%		1.26%		1.25%		1.22%		1.20%		1.26%		1.22%
Gross margin	56.3	1.30%	56.7	1.27%	58.5	1.28%	58.6	1.29%	59.8	1.27%	59.3	1.25%	171.5	1.29%	177.7	1.27%
Security Lending	0.7	938	0.6	831	0.5	764	0.2	804	0.2	726	0.2	753	1.8	844.3	0.6	760.5
Net Margin		0.30%		0.30%		0.24%		0.11%		0.10%		0.12%		0.28%		0.11%
Leverage - Long	1.9	130	2.2	152	2.6	173	2.7	182	2.7	181	3.0	196	6.6	151.6	8.5	186.6
Net Margin		5.79%		5.76%		5.91%		6.06%		6.03%		6.11%		5.83%		6.07%
Lendings	6.6	794	7.5	1,010	8.1	1,261	9.2	1,854	9.5	2,080	9.9	2,316	22.2	1,021.7	28.6	2,083.4
Net Margin		3.36%		2.99%		2.54%		2.01%		1.84%		1.69%		2.90%		1.83%
o/w Current accounts	1.7	312	1.8	340	1.9	410	2.4	684	2.6	788	2.8	891	5.5	354.0	7.8	787.8
Net Margin		2.20%		2.13%		1.89%		1.43%		1.33%		1.23%		2.06%		1.32%
o/w Cards	1.1	207	1.1	216	1.2	232	1.2	240	1.2	232	1.2	252	3.5	218.6	3.6	241.3
Net Margin		2.22%		2.12%		2.04%		2.00%		2.05%		1.93%		2.12%		1.99%
o/w Personal loans	3.7	257	3.9	297	4.0	317	4.3	370	4.4	394	4.4	411	11.7	290.3	13.1	391.3
Net Margin		5.81%		5.34%		5.05%		4.67%		4.45%		4.29%		5.37%		4.46%
o/w Mortgages	0.1	18	0.6	158	0.9	301	1.3	560	1.4	666	1.4	763	1.6	158.9	4.1	663.0
Net Margin		1.61%		1.59%		1.15%		0.96%		0.81%		0.75%		1.32%		0.83%
(1) Other	-1.5		-1.6		-0.9		-0.1		-1.2		-0.2		-4.1		-1.6
Total	63.0		64.3		67.4		68.9		68.7		69.9		194.7		207.6
Gross Margin Cost of Deposits		1.35% -0.02%		1.34% -0.02%		1.35% -0.03%		1.33% -0.03%		1.31% -0.04%		1.29% -0.04%		1.35% -0.02%		1.31% -0.04%

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

(1) Other includes mainly marketing costs

UniCredit bonds underwritten

	ISIN	Currency	Amount (€ m)	Maturity	Indexation	Spread
1	IT0005010357	Euro	382 5	19-Oct-18	Euribor 1m	2 24%
2	IT0005010373	Euro	382 5	18-Jan-19	Euribor 1m	2 29%
3	IT0005010613	Euro	382 5	1-Apr-19	Euribor 1m	0 38%
4	IT0005010282	Euro	382 5	15-Jul-19	Euribor 1m	2 37%
5	IT0005010399	Euro	382 5	14-Oct-19	Euribor 1m	2 40%
6	IT0005010324	Euro	382 5	13-Jan-20	Euribor 1m	2 44%
7	IT0005010365	Euro	382 5	10-Apr-20	Euribor 1m	2 47%
8	IT0005010308	Euro	382 5	9-Jul-20	Euribor 1m	2 49%
9	IT0005010381	Euro	382 5	7-Oct-20	Euribor 1m	2 .52%
10	IT0005010332	Euro	382 5	6-Jan-21	Euribor 1m	2 .54%
11	IT0005010316	Euro	382 5	6-Apr-21	Euribor 1m	2 .56%
12	IT0005010340	Euro	382 5	5-Jul-21	Euribor 1m	2 .58%
13	IT0005010225	Euro	382 5	18-Oct-21	Euribor 1m	2 60%
14	IT0005010860	USD1	43 2	7-Apr-20	USD Libor 1m	2 66%
15	IT0005158503	USD1	43 2	23-Dec-22	USD Libor 1m	1 93%
16	IT0005040099	Euro	100 0	24-Jan-22	Euribor 1m	1 46%
17	IT0005057994	Euro	200 0	11-Apr-22	Euribor 1m	1 43%
18	IT0005083743	Euro	300 0	28-Jan-22	Euribor 1m	1 25%
19	IT0005106189	Euro	230 0	20-Apr-20	Euribor 1m	0 90%
20	IT0005114688	Euro	180 0	19-May-22	Euribor 1m	1 19%
21	IT0005120347	Euro	700 0	27-Jun-22	Euribor 1m	1 .58%
22	IT0005144065	Euro	450 0	14-Nov-22	3m2 Euribor	1 40%
23	IT0005144073	Euro	350 0	15-Nov-21	3m2 Euribor	1 29%
24	IT0005158412	Euro	250 0	23-Dec-22	3m2 Euribor	1 47%
25	IT0005163180	Euro	600 0	11-Feb-23	3m2 Euribor	1 97%
26	IT0005175135	Euro	100 0	24-Mar-23	3m2 Euribor	1 .58%
27	IT0005217606	Euro	350 0	11-Oct-23	3m2 Euribor	1 65%
28	IT0005241317	Euro	622 5	2-Feb-24	3m2 Euribor	1 .52%
	Total	Euro	9 405 0 ,		Euribor 1m	1 94%
		1 USD	86 4		USD Libor 1m	2 30%
	Totale Eur e USD		9 491 4 ,			1 94%

Amounts expressed at EUR/USD 1.1576 exchange rate (as of September 30th, 2018)

In order to calculate an average spread on Eur1m, a basis swap of 0.07% is considered

Details on Net Commissions

mln	1Q17	2Q17	3Q17	1Q18	2Q18	3Q18	9M17	9M18
Brokerage	20	18	16	20	20	15	55	56
	3	3	8	6	1	8	3	5
o/w
Equity	16	15	13	17	16	13	45	47
	7	2	5	5	4	1	4	0
Bond	1	0	0	0	1	0	2	2
	0	9	7	8	2	6	7	7
Derivatives	2	2	1	2	2	2	6	7
	4	0	9	5	7	2	3	3
commissions(1) Other	0 1	0 2	0 6	-0 1	-0 2	-0 1	0 9	-0 5
Investing	43	44	47	47	49	52	135	148
	7	6	1	1	5	2	4	8
o/w
Placement fees	3 1	2 9	2 3	2 5	2 4	1 4	8 3	6 4
Management fees	45 3	47 4	48 5	50 2	53 9	54 9	141 3	159 1
PFA's:	-4	-5	-3	-4	-5	-3	-14	-13
incentives	7	7	7	8	8	1	2	7
to
PFA's:	0	0	0	-0	-1	-1	0	-2
LTI	0	0	0	9	1	0	0	9
to
Banking	0	1	5	3	4	4	8	12
	6	9	7	4	7	5	2	6
Other	0	0	0	0	0	0	0	0
	1	2	2	3	3	2	5	7
Total	64	65	69	71	74	72	199	218
	7	0	7	5	5	7	4	7

Starting from 2018, incentives to PFAs and 2018-2020 LTI to PFAs have been restated among product areas with an even higher incidence to Investing to better reflect the focus of incentives in the asset mix improvement. 1Q18 has been restated accordingly.

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

Revenue breakdown by Product Area

mln	1Q17	2Q17	3Q17	1Q18	2Q18	3Q18	9M17	9M18
Net interest income	62 0	63 1	65 5	67 3	68 4	68 5	190 7	204 2
Net commissions	0 6	1 9	5 7	3 4	4 7	4 5	8 2	12 6
Trading profit	1 9	1 7	1 2	1 4	1 5	2 1	4 9	4 9
Other	0 1	0 1	0 1	0 1	0 2	0 1	0 3	0 4
Total Banking	64 7	66 9	5 72	72 1	74 8	75 1	204 1	222 0
Net interest income	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
Net commissions	43 7	44 6	47 1	47 1	49 5	52 2	135 4	148 8
Trading profit	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
Total Investing	43 7	44 6	47 1	47 1	49 5	52 2	135 4	148 8
Net interest income	2 8	3 2	3 4	3 2	3 2	3 4	9 4	9 8
Net commissions	20 3	18 3	16 8	20 6	20 1	15 8	55 3	56 5
Trading profit	11 5	10 4	9 7	12 4	10 7	6 1	31 6	29 3
Other	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
Total Brokerage	34 6	31 9	29 9	36 3	34 0	25 3	96 3	95 6

Managerial Data

Breakdown Total Financial Assets

mln	Mar 17	Jun 17	Sep 17	Dec 17	Mar 18	Jun 18	Sep 18
AUM	30 182 ,	31 059 ,	31 797 ,	33 563 ,	33 536 ,	34 496 ,	34 930 ,
o/w Funds and Sicav	24 984 ,	25 461 ,	25 901 ,	26 999 ,	26 666 ,	26 809 ,	26 795 ,
o/w Insurance	4 749 ,	145 5 ,	431 5 ,	6 075 ,	6 395 ,	043 7 ,	355 7 ,
o/w GPM	9	9	7	7	1	1	1
o/w AuC deposits under advisory +	440	444	458	483	475	643	779
o/w in Advice	440	444	458	483	475	477	494
o/w in Plus	0	0	0	0	0	166	285
AUC	13 461 ,	13 429 ,	13 884 ,	13 681 ,	13 890 ,	14 366 ,	14 395 ,
o/w Equity	698 7 ,	817 7 ,	8 221 ,	8 378 ,	8 573 ,	8 736 ,	8 846 ,
o/w Bond	5 695 ,	5 552 ,	5 616 ,	5 284 ,	5 298 ,	5 613 ,	5 534 ,
o/w Other	68	60	47	20	20	18	15
Direct Deposits	18 559 ,	19 139 ,	19 674 ,	19 941 ,	20 624 ,	20 968 ,	21 536 ,
o/w Sight	18 504 ,	19 105 ,	19 659 ,	19 931 ,	20 616 ,	20 962 ,	21 532 ,
o/w Term	55	34	14	10	7	6	4
Total	62 202 ,	63 627 ,	65 355 ,	185 67 ,	050 68 ,	69 830 ,	70 861 ,

o/w Guided Products & Services	17 470 ,	18 399 ,	19 190 ,	21 227 ,	21 425 ,	22 199 ,	22 879 ,
o/w TFA Private Banking	23 255 ,	23 978 ,	25 053 ,	25 886 ,	26 109 ,	26 992 ,	27 474 ,

AuC and Deposits under advisory have been reclassified within AuM in order to have a better representation of the advisory nature of Advice and

40 Plus services

Balance Sheet

mln	Mar 17	Jun 17	Sep 17	Dec 17	Jan 1st 18	Mar 18	Jun 18	Sep 18
Due from Banks	15 462 ,	14 827 ,	14 293 ,	13 878 ,	3 036 ,	3 488 ,	3 224 ,	3 398 ,
Customer Loans	1 166 ,	1 504 ,	1 716 ,	2 129 ,	2 129 ,	2 318 ,	2 633 ,	2 736 ,
Financial Assets	3 912 ,	4 770 ,	5 429 ,	5 885 ,	16 733 ,	17 106 ,	17 199 ,	17 678 ,
Tangible and Intangible Assets	112	113	113	113	113	112	112	112
Derivatives	12	15	16	10	0	0	3	0
Other Assets	262	284	249	326	325	211	254	259
Total Assets	20 927 ,	513 21 ,	815 21 ,	22 340 ,	335 22 ,	235 23 ,	425 23 ,	24 183 ,
Customer Deposits	18 884 ,	19 441 ,	20 008 ,	20 205 ,	20 205 ,	20 916 ,	21 197 ,	21 827 ,
Due Banks to	980	930	697	926	926	960	908	1 000 ,
Derivatives	17	16	19	9	0	0	2	0
Funds and other Liabilities	314	506	421	468	476	367	445	452
Equity	732	621	672	732	729	992	874	904
Total Liabilities and Equity	20 927 ,	513 21 ,	815 21 ,	22 340 ,	335 22 ,	235 23 ,	425 23 ,	24 183 ,

IFRS9: the Bank decided to not disclose comparative data from previous periods, as allowed by new accounting standards.

Total assets: 96% not exposed to volatility

Out of 24.2bn, only 0.9bn of Assets valuated at fair value with limited impacts on Equity reserve

(1) Due from banks include 2.2bn current accounts (immediate available liquidity), 1.1bn term deposits

(2) Other refers to tangible and intangible assets, derivatives and other assets

(3) Other HTC: 197.6mln France , 78.6mln Poland, 116,5mln Ireland, 71.3mln Germany, 86.5mln Austria

(4) Other HTCS: 35.1mln France, 65.7mln US, 40.9mln Ireland

High-value deposit base confirms strong resilience over time

• Double-digit deposit growth throughout the last 10 years (+11% CAGR), with no impacts from 2008 financial crisis and 2011 sovereign debt crisis
• Strong resilience during periods of stress/crisis: 912mln worst liquidity outflow on April 10th , 2012
• High-value deposit base: most of our deposits is transactional liquidity. Customer rate: zero; cost of funding: 3bps
• 79% of total sight deposits: core liquidity(1) in a stressed scenario according to clients' behavioral model
• Structural trends in place in Italy combined with best in class banking platform and high-quality services will continue to support our deposit growth

Additional Tier 1

Details	Benefits
 Given current favorable market conditions and spread levels, on 23rd January, 2018 the Bank issued a €200mln perpetual AT1  Coupon fixed at 4.82% for the initial 5.5 years  Intra-group private placement, fully subscribed by UniCredit SpA  Semi-annual coupon. First Interest Payment Date on June rd 3 , 2018 (short first coupon): 2.1mln net of taxes  Net coupon will impact directly Equity reserves (~6.5mln net of taxes per year)	 Sustain a more diversified investment strategy through the non-renewal of UC Bonds run-offs and the progressive increase of European Govies  Leverage Ratio evolution in a comfortable zone, even by further diversifying the investment portfolio  Several benefits came from intra-group private placement, both in terms of effective costs savings and faster issuance process, allowing the Bank to maximize the benefits of the deal UniCredit and Intesa AT1 yield at first call date
Key ratios pro-forma(1) with AT1 issue
Leverage Ratio Total Capital ratio

Intesa AT1 19Jan.21

UniCredit AT1 3Jun25 UniCredit AT1 3Jun.23

Intesa AT1 11Jan.27

(1) Ratios transitional. Total Capital ratio assuming 2017 dividend of 28.5 € cents per share.

UniCredit AT1 10Sept.21 Fineco Issue Date

Cooperative Compliance Scheme:

FinecoBank admitted in the Cooperative Compliance Scheme with the Revenue Agency

In July 2017, FinecoBank has been admitted to the Cooperative Compliance Scheme(1) , which allows the Bank to take part to a register of taxpayers (published on the Revenue Agency's official website) operating in full transparency with the Italian tax Authorities. This is a fundamental milestone for our Bank

Until now, only few companies have been admitted in Italy, of which among Banks: Fineco, UniCredit, and BPER

Key requirements to be admitted:

• subjective and objective requirements (resident legal entities with specific sizing thresholds)
• effective system in place for identifying, measuring, managing and controlling tax risk in line with the "essential" requirements of the Tax Control Framework envisaged by law, Revenue Agency ordinances and by the OECD documents published on the subject

Several advantages:

• closer relationship of trust and cooperation with the Revenue Agency
• Increase of the level of certainty on significant tax issues under conditions of full transparency
• agreed and preventive risk assessment of situations likely to generate tax risks
• fast track ruling

Main Financial Ratios

	Mar	Jun	Sep	Dec	Mar	Jun	Sep
	17	17	17	17	18	18	18
TFA/ (mln) PFA PFA (1)	20 2	20 7	21 4	22 2	22 5	23 0	23 4
Guided Products / TFA (2)	28%	29%	29%	32%	31%	32%	32%
Cost / income Ratio (3)	42 8%	42 8%	40 5%	39 7%	41 0%	40 0%	39 3%
CET	22	22	20	20	20	20	20
1	2%	1%	7%	8%	2%	7%	5%
Ratio
Adjusted	39	39	39	40	35	36	35
(4)	5%	3%	0%	3%	1%	9%	4%
RoE
Leverage	7	6	5	5	15%	51%	6
Ratio	89%	79%	95%	67%	7	6	00%
(5)

(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 33) calculated as Operating Costs divided by Revenues net of non recurring items

(4) Adjusted RoE: annualized Net Profit, net of non recurring items (see page 33) divided by the average book shareholders' equity for the period (excluding dividends expected to be distributed and the revaluation reserves)

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