FinecoBank — Investor Presentation 2018

Feb 6, 2018

FY17 Results

Milan, February 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.
• 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

• FY17 net profit net of non recurring items(1) at 218.5mln, strongly up (+8.9% y/y), 4Q17 at 61.6mln(1) (+17.0% q/q and +11.9% y/y net of non recurring items) confirming sustainable growing path
• Relentless and sound revenue growth boosted by net interest income and fees and commissions: FY17 revenues reaching 586.7mln (+7.9% y/y net of non recurring items(1) ) and 4Q17 at 155.8mln (+5.1% q/q , +12.6% y/y) with well diversified stream of income
• FY17 Operating Costs well under control at 233.2mln (+3.0% y/y) and C/I ratio net of non recurring items(1) down 1.9p.p. confirming operating leverage as a key strength of the bank
• Strong capital position: CET1 ratio transitional at 20.77% with a proposal of 28.5 cents dividend per share, pay-out ratio increased at 81%
• Solid and sustainable commercial activity with a relentless improvement in the asset mix:
• 2017 Net sales at 6.0bn (+18.3% y/y), of which 66% AuM (35% in 2016)
• Total Financial Assets at 68.1bn (+13.2% y/y) as of January 2018
• Guided Products & Services penetration rate on AuM stock up to 64% as of January 2018 (+7.2 p.p. y/y)
• Over 1.208 mln clients (+7.1% y/y)

(1) FY17 non recurring items: FITD/ Voluntary Scheme -12.9mln gross, -8.6mln net, Integration costs release: +0.4mln gross, +0.3mln net, tax savings for the application of the Pex regime (participation exemption) to the capital gains from VISA Europe, realized in 2016: +3.9mln. FY16 non recurring items: Visa sale (revenues) +15.3mln gross, +10.3mln net; positive closing of tax dispute +6.5mln tax release, releases of provisions: Solidarity Fund +2,3mln gross, +1.5mln net and Tercas +1.4mln gross, +1.0mln net; Integration costs: -5.5mln gross, -3.7mln net; writedown of Cassa di Risparmio di Cesena stake: -6.7mln gross, -4.5mln net.

Results

FY17 Net Profit, best year ever despite Deposit Guarantee Scheme contribution. Decreasing Cost / Income thanks to our strong Operating Leverage

(1) FY17 non recurring items: FITD (Voluntary Scheme): -8.6mln net., Integration costs release: +0.3mln net, tax savings for the application of participation exemption regime to the 2016 capital gain on VISA transaction: +3.9mln

FY16 non recurring items: Visa sale (revenues) +15.3mln gross, +10.3mln net; positive closing of tax dispute +6.5mln tax release, releases of provisions: Solidarity Fund +1.5mln net and Tercas +1.0mln net; Integration costs: -3.7mln net; write-down of Cassa di Risparmio di Cesena stake: - 4.5mln net.

(2) Adj. Cost/Income and adj. RoE calculated net of non recurring items.

5 See page 34 for details.

Results

Operating leverage constantly delivered thanks to a relentless revenue growth and operating costs well under control

Net interest income (1/2)

Remarkable net interest income dynamics in a negative rate environment. The announced focus on high quality lending is starting to pay-off

(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) Lending: only interest income

(3) Other net interest income includes Security Lending, Leverage and other (mainly marketing costs), other interest-earning assets include Security

7 Lending and Leverage. See page 37 for details.

(4) Gross margins: interest income related to financial investments, lending, leverage, security lending on interest-earning assets

Net interest income (2/2)

More diversification and further opportunities coming from the maneuvering on current accounts. Sensitivity analysis +100bps parallel shift: +119 mln

Investment Policy

Given current interest environment, the Bank decided to further diversify its investment portfolio, through the non-renewal of UC bonds run-offs and the progressively increase of European government bonds portfolio and Lending activity

INTEREST RATE SENSITIVITY +100bps parallel shift (1M Eur): +119 mln additional NII

(1) includes 29mln Istituto de Credito Oficial (ICO) (2) Other includes 69mln USA, 16mln of Poland

Commissions and Trading Income

Sound and diversified stream of revenues thanks to our one-stop-solution model. Management fees strongly up +14.7% y/y

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

(2) In 1Q16: sale of 704mln (nominal value) Spanish and Italian Govies at variable rate and residual maturity <3yrs and consequent purchase of Govies at fixed rate with maturities between 3 and 6 years

Costs

Cost efficiency and operating leverage confirmed in our DNA

Staff expenses and FTE Stock Granting post IPO

(1) Breakdown between development and running costs: managerial data

Other administrative expenses(1) Write-down/backs and depreciation

Capital Ratios

Strong capital base and 28.5 cents dividend distribution equal to 81% dividend payout

(1) Assuming 2017 dividend of 28.5 € cents per share.

Additional Tier 1

Details		Benefits
 Given current favorable market on 23rd January, 2018 the Bank AT1  Coupon fixed at 4.82% for the  Intra-group private placement, SpA  Semi-annual coupon. First 2018 (short first coupon)  Net coupon will impact directly taxes) Key ratios pro-forma(1)	conditions and spread levels, issued a €200mln perpetual initial 5.5 years fully subscribed by UniCredit Interest Payment Date: 3 June Equity reserves (~6.5mln net of with AT1 issue	 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 9
Leverage Ratio % 8.01% AT1 impact	Total Capital ratio % 29.51% AT1 impact	8 7 % 6 Yield 5 4
Leverage ratio 5.67% (stated)	Total Capital 20.77% Ratio (stated)	3 2 Aug-17 Sep-17 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 UniCredit AT1 3Jun.19 UniCredit AT1 3Jun.23 UniCredit AT1 10Sept.21 Unicredit AT1 XS1739839998 UniCredit AT1 XS1619015719 UniCredit AT1 XS1107890847

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

2017

Fineco Issue Date

Intesa AT1 19Jan.21 Intesa AT1 XS1346815787 Intesa AT1 XS1548475968 Giorno Emissione Fineco

Intesa AT1 11Jan.27

2017

TFA

Relentless TFA growth thanks to a healthy expansion in net sales. Guided products & Services increased at 64% 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 (0.5bn in Dec.17, 0.5bn in Sep.17, 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

16 (1) Total recruits include net inflows related to PFAs recruited over the last 24 months (avg) Agenda

Fineco Results

Focus on product areas

Key messages and Initiatives monitoring

17

Revenues by Product Area

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

FY17 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. Staring from 4Q17 some items related to operativity in forex have been reclassified among products areas to have a better managerial representation (+2.2mln in FY17) .

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

20 (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

Guided products on total AuM

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.

FY17 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, 2017 DGS: -7.1 mln 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 (85mln in Dec.17 vs 82mln in Dec.16), collateral deposits and initial and variation margins (43mln in Dec.17 vs 34mln in Dec.16), bad loans (2mln in Dec.17 vs 3mln in Dec.16), other (+3.2mln in Dec.17 vs -1mln in Dec.16)

(2) Cost of risk: ratio between 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)

25

Initiatives monitoring - Banking Area

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

Initiatives monitoring - Investing Area

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

Fineco Asset Management - FAM (1/3) Process update

The project is on track (go live by the end of 1H 2018):

• Authorization process with Central Bank of Ireland ongoing. Formal submission on Dec. 5 th (expected closing in max. 6 months)
• Bilateral Tax ruling (Advance Price Agreement): pre-filing phase concluded with both Italian and Irish Tax Authorities. Formal submission in February (expected closing in 2-3 years on average with effect from 2018)
• New ICAV (Irish Collective Asset Management Vehicle) under approval to simplify, speed up and make more efficient the process of new sub-adviced funds

Fineco Asset Management - FAM (2/3) FAM products and expected efficiencies

	Products	Destination
1	NEW FAM FUNDS OF FUNDS:
	BUILDING BLOCKS (Institutional class)	insurance wrappers (Core Unit, Advice Unit, etc.)
	BUILDING BLOCKS (Retail class)	à la carte or in portfolio solutions (Advice, Stars)
2		SUB-ADVICED FUNDS WITH PREFERRED PARTNERS:
	SINGLE FUNDS (Institutional class)	New FAM funds of funds + Core Series
	SINGLE FUNDS (Retail class)	à la carte, portfolio solutions (Advice, Stars)
3	CORE SERIES

Efficiency on margins

• Savings coming from Core Series internalization
• Lower cost of mandate (sub-advised funds) compared with current distribution fees

Operational efficiency

• Ireland main hub for asset management allowing us to outsource some operational activities in a very efficient way
• Additional efficiencies (establishment costs, marketing costs, fund administration costs)
• Expected annual Operating Costs: ~5mln

Fineco Asset Management - FAM (3/3)

Potential Upside: relevant and recurring improvement in our profitability

UNDERLYING ASSUMPTIONS:

Revenue split: 60% Italy, 40% FAM (Ireland) only Retail class. Institutional Class 100% Ireland

Dividend payout FAM to Fineco SpA: 100%

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 5 companies have been admitted in Italy: Fineco, UniCredit, Leonardo, Ferrero and Prada

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

Further opportunities

	 # new clients: almost 1,500 (55% Italian UK residents, 45% non-Italian UK residents)
Fineco UK	 Product offer: Trading, multicurrencies account, debit cards
	 Among the most competitive players in the market on securities and CFDs
	 Star Plus is an evolution of the current Stars product (Guided products & advisory services).
	 Inclusion of AuC and AuM financial products (Bonds, Stocks, Etf, Funds)
Stars Plus	 Objective: to make AuC profitable and to speed up the transformation from AuC to AuM
	 Fee «on top» (from ~0.20% to 1.0%) with differentiated pricing for AuM, AuC and ETFs
	 New diagnosis and reporting tools in order to increase sales and customers satisfaction
	 Go live in 1H 2018
	 We applied in 2015 for intellectual properties (our platforms internally created and developed) and trademark
Patent Box	 We are in talks with Italian Fiscal Authority, which is quantifying the possible benefits
	 Fiscal benefits are expected for 5 years: 2015, 2016, 2017, 2018 and 2019
	 Process expected to be closed within 1Q 2018

Annex

mln	1Q16	2Q16	3Q16	4Q16	1Q17	2Q17	3Q17	4Q17	FY16	FY17
Net interest income	62.2	61.2	62.5	63.4	62.9	64.3	67.4	70.0	249.4	264.6
Net commissions	58.2	59.7	59.3	65.8	64.7	65.0	69.7	70.7	242.9	270.1
Trading profit	19.6	27.3	10.8	11.3	13.7	12.3	11.1	11.1	69.1	48.2
Other expenses/income	0.1	0.7	-0.8	-2.2	0.5	-0.8	0.1	3.9	-2.2	3.8
Total revenues	140.1	148.8	131.8	138.4	141.8	140.8	148.2	155.8	559.1	586.7
Staff expenses	-18.7	-19.0	-19.3	-16.6	-19.2	-19.7	-19.8	-20.6	-73.7	-79.3
Other admin.exp. net of recoveries	-39.3	-36.1	-31.4	-35.9	-39.2	-38.2	-31.1	-35.0	-142.7	-143.6
D&A	-2.2	-2.4	-2.6	-2.7	-2.3	-2.5	-2.6	-2.9	-10.0	-10.4
Operating expenses	-60.2	-57.5	-53.4	-55.3	-60.7	-60.4	-53.5	-58.6	-226.4	-233.2
Gross operating profit	79.9	91.3	78.4	83.1	81.1	80.4	94.7	97.2	332.7	353.4
Provisions	-1.4	-1.1	-11.3	3.9	-2.4	-0.8	-21.0	5.2	-10.0	-19.0
LLP	-1.4	-1.4	-0.7	-0.7	-0.5	-1.0	-1.5	-2.1	-4.2	-5.2
Integration costs	0.0	0.0	0.0	-5.5	0.0	0.0	0.0	0.4	-5.5	0.4
Profit from investments	0.0	0.0	0.0	-6.7	0.0	-0.4	-1.4	-11.6	-6.7	-13.4
Profit before taxes	77.1	88.8	66.4	74.1	78.2	78.3	70.7	89.1	306.3	316.3
Income taxes	-25.8	-22.3	-21.8	-24.6	-26.5	-25.7	-23.9	-26.0	-94.5	-102.1
Net profit for the period	51.2	66.6	44.6	49.5	51.7	52.6	46.8	63.1	211.8	214.1
Normalised Net Income(1)	51.2	49.8	44.6	55.1	51.7	52.6	52.7	61.6	200.7	218.5

Non recurring items (mln, gross)	1Q16	2Q16	3Q16	4Q16	1Q17	2Q17	3Q17	4Q17	FY16	FY17
VISA sale (Trading Profit)		15.3							15.3	0.0
(2) Extraord systemic charges (Provisions)				3.7			-7.4	7.4	3.7	0.0
(3) Extraord systemic charges (Profit from investm)				-6.7			-1.4	-11.5	-6.7	-12.9
Integration costs				-5.5				0.4	-5.5	0.4
Release of taxes		6.5						3.9	6.5	3.9
Total	0.0	21.9	0.0	-8.5	0.0	0.0	-8.8	0.3	13.3	-8.5

(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.

4Q16: related to Solidarity fund for retail clients invested in subordinated bonds issued by 4 Italian banks rescued in 2016.

(3) 2017: Voluntary Scheme contribution. 2016: Voluntary scheme (contribution for Cassa di Risparmio di Cesena)

P&L net of non recurring items

mln	1Q16	2Q16 Adj.	3Q16	4Q16 Adj.	1Q17	2Q17	3Q17 Adj.	4Q17 Adj.	FY16 Adj. (1)	FY17 Adj. (1)	FY17/ FY16	4Q17/ 4Q16	4Q17/ 3Q17
Net interest income	62.2	61.2	62.5	63.4	62.9	64.3	67.4	70.0	249.4	264.6	6.1%	10.4%	4.0%
Net commissions	58.2	59.7	59.3	65.8	64.7	65.0	69.7	70.7	242.9	270.1	11.2%	7.5%	1.5%
Trading profit	19.6	11.9	10.8	11.3	13.7	12.3	11.1	11.1	53.7	48.2	-10.2%	-2.1%	-0.2%
Other expenses/income	0.1	0.7	-0.8	-2.2	0.5	-0.8	0.1	3.9	-2.2	3.8	n.m.	n.m.	n.m.
Total revenues	140.1	133.5	131.8	138.4	141.8	140.8	148.2	155.8	543.8	586.7	7.9%	12.6%	5.1%
Staff expenses	-18.7	-19.0	-19.3	-16.6	-19.2	-19.7	-19.8	-20.6	-73.7	-79.3	7.6%	23.9%	4.2%
Other admin.expenses	-39.3	-36.1	-31.4	-35.9	-39.2	-38.2	-31.1	-35.0	-142.7	-143.6	0.6%	-2.5%	12.6%
D&A	-2.2	-2.4	-2.6	-2.7	-2.3	-2.5	-2.6	-2.9	-10.0	-10.4	4.2%	6.4%	10.6%
Operating expenses	-60.2	-57.5	-53.4	-55.3	-60.7	-60.4	-53.5	-58.6	-226.4	-233.2	3.0%	5.9%	9.4%
Gross operating profit	79.9	76.0	78.4	83.1	81.1	80.4	94.7	97.2	317.4	353.4	11.4%	17.0%	2.6%
Provisions	-1.4	-1.1	-11.3	0.2	-2.4	-0.8	-13.6	-2.2	-13.7	-19.0	39.1%	n.m.	-83.6%
LLP	-1.4	-1.4	-0.7	-0.7	-0.5	-1.0	-1.5	-2.1	-4.2	-5.2	22.7%	207.2%	36.3%
Integration costs	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	n.m.	n.m.	n.m.
Profit from investments	0.0	0.0	0.0	0.0	0.0	-0.4	0.0	-0.1	0.0	-0.5	n.m.	n.m.	n.m.
Profit before taxes	77.1	73.5	66.4	82.6	78.2	78.3	79.5	92.8	299.5	328.7	9.8%	12.3%	16.7%
Income taxes	-25.8	-23.7	-21.8	-27.5	-26.5	-25.7	-26.8	-31.2	-98.9	-110.2	11.5%	13.2%	16.1%
1 Net profit adjusted	51.2	49.8	44.6	55.1	51.7	52.6	52.7	61.6	200.7	218.5	8.9%	11.9%	17.0%

¹ Adj. Net Profit net of non recurring items (see page 34)

Gross Operating Profit – Net profit: walk

(1) FY17 non recurring items: FITD (Voluntary Scheme): -12.9mln gross, -8.6mln net., integration cost: +0.4mln gross, +0.3mln net, tax savings for the application of the Pex regime (participation exemption) to the capital gains from VISA Europe, realized in 2016: +4mln. Delta y/y calculated on FY16 and 4Q16 net of non recurring items.

FY16 non recurring items: Visa sale (revenues) +15.3mln gross, +10.3mln net in 2Q16; positive closing of tax dispute +6.5mln tax release, releases of provisions: Solidarity Fund +2.3mln gross, +1.5mln net and Tercas +1.4mln gross, +1.0mln net; Integration costs: -5.5mln gross, -3.7mln net; writedown of Cassa di Risparmio di Cesena stake: -6.7mln gross, -4.5mln net.

36 See page 34 for details.

Details on Net Interest Income

mln	1Q16	Volumes & Margins	2Q16	Volumes & Margins	3Q16	Volumes & Margins	4Q16	Volumes & Margins	1Q17	Volumes & Margins	2Q17	Volumes & Margins	3Q17	Volumes & Margins	4Q17	Volumes & Margins	FY16	Volumes & Margins	FY17	Volumes & Margins
Sight Deposits	55.4	15,328	54.2	16,105	54.6	16,663	55.7	17,193	55.4	18,193	55.6	18,824	57.2	19,321	58.2	19,662	219.9	16,322	226.4	19,000
Net Margin		1.45%		1.35%		1.30%		1.29%		1.24%		1.18%		1.18%		1.17%		1.35%		1.19%
Term Deposits	-0.3	628	-0.3	540	-0.2	413	-0.1	284	-0.1	131	0.0	50	0.0	26	0.0	11	-0.9	466	-0.2	54
Net Margin		-0.19%		-0.22%		-0.20%		-0.16%		-0.31%		-0.39%		-0.42%		-0.48%		-0.20%		-0.35%
Security Lending	1.0	1,094	1.0	1,217	0.8	1,037	0.7	995	0.7	938	0.6	831	0.5	764	0.3	804	3.6	1,086	2.0	834
Net Margin		0.37%		0.33%		0.31%		0.30%		0.30%		0.30%		0.24%		0.13%		0.33%		0.25%
Leverage - Long	1.8	118	1.6	106	1.6	103	1.7	112	1.9	130	2.2	152	2.6	173	3.0	201	6.8	110	9.6	164
Net Margin		6.20%		6.19%		6.11%		6.24%		6.18%		6.13%		6.29%		6.31%		6.19%		6.24%
Lendings	5.1	511	5.4	555	5.7	674	6.1	723	6.5	794	7.5	1,010	8.0	1,261	8.7	1,546	22.2	616	30.7	1,153
Net Margin		3.98%		3.88%		3.35%		3.34%		3.33%		2.97%		2.52%		2.23%		3.60%		2.66%
o/w Current accounts	1.4	222	1.4	241	1.5	264	1.6	291	1.7	312	1.8	340	1.9	410	2.2	546	5.8	254	7.6	402
Net Margin		2.53%		2.34%		2.20%		2.16%		2.15%		2.09%		1.86%		1.61%		2.30%		1.88%
o/w Cards	1.1	141	1.1	142	1.1	217	1.2	209	1.1	207	1.1	216	1.2	232	1.2	227	4.5	177	4.7	221
Net Margin		3.13%		3.13%		2.10%		2.23%		2.22%		2.12%		2.04%		2.13%		2.55%		2.13%
o/w Personal loans 2.6		148	2.9	173	3.2	194	3.4	223	3.7	257	3.9	297	4.0	317	4.1	340	12.2	184	15.7	303
Net Margin		7.18%		6.84%		6.52%		6.11%		5.78%		5.31%		5.03%		4.80%		6.61%		5.19%
o/w Mortgages 0.0		0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.1	18	0.6	158	0.9	301	1.1	432	0.0	0	2.7	227
Net Margin										1.60%		1.59%		1.15%		1.04%				1.19%
(1) Other	-0.7		-0.7		0.0		-0.7		-1.5		-1.5		-0.9		-0.1		-2.1		-4.0
Total	62.2		61.2		62.5		63.4		62.9		64.3		67.4		70.0		249.4		264.6

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-Jan-18	Euribor 1m	0.51%
2 IT0005010266	Euro	382.5	24-Jan-18	Euribor 1m	2.08%
3 IT0005010274	Euro	382.5	23-Apr-18	Euribor 1m	2.14%
4 IT0005010290	Euro	382.5	23-Jul-18	Euribor 1m	2.19%
5 IT0005010357	Euro	382.5	19-Oct-18	Euribor 1m	2.24%
6 IT0005010373	Euro	382.5	18-Jan-19	Euribor 1m	2.29%
7 IT0005010613	Euro	382.5	1-Apr-19	Euribor 1m	2.33%
8 IT0005010282	Euro	382.5	15-Jul-19	Euribor 1m	2.37%
9 IT0005010399	Euro	382.5	14-Oct-19	Euribor 1m	2.40%
10 IT0005010324	Euro	382.5	13-Jan-20	Euribor 1m	2.44%
11 IT0005010365	Euro	382.5	10-Apr-20	Euribor 1m	2.47%
12 IT0005010308	Euro	382.5	9-Jul-20	Euribor 1m	2.49%
13 IT0005010381	Euro	382.5	7-Oct-20	Euribor 1m	2.52%
14 IT0005010332	Euro	382.5	6-Jan-21	Euribor 1m	2.54%
15 IT0005010316	Euro	382.5	6-Apr-21	Euribor 1m	2.56%
16 IT0005010340	Euro	382.5	5-Jul-21	Euribor 1m	2.58%
17 IT0005010225	Euro	382.5	18-Oct-21	Euribor 1m	2.60%
18 IT0005010142	USD1	41.7	19-Apr-18	USD Libor 1m	2.34%
19 IT0005010860	USD1	41.7	7-Apr-20	USD Libor 1m	2.66%
20 IT0005158503	USD1	41.7	23-Dec-22	USD Libor 1m	1.93%
21 IT0005040099	Euro	100.0	24-Jan-22	Euribor 1m	1.46%
22 IT0005057994	Euro	200.0	11-Apr-22	Euribor 1m	1.43%
23 IT0005083743	Euro	300.0	28-Jan-22	Euribor 1m	1.25%
24 IT0005106189	Euro	230.0	20-Apr-20	Euribor 1m	0.90%
25 IT0005114688	Euro	180.0	19-May-22	Euribor 1m	1.19%
26 IT0005120347	Euro	700.0	27-Jun-22	Euribor 1m	1.58%
27 IT0005144065	Euro	450.0	14-Nov-22	3m2 Euribor	1.40%
28 IT0005144073	Euro	350.0	15-Nov-21	3m2 Euribor	1.29%
29 IT0005158412	Euro	250.0	23-Dec-22	3m2 Euribor	1.47%
30 IT0005163180	Euro	600.0	11-Feb-23	3m2 Euribor	1.97%
31 IT0005175135	Euro	100.0	24-Mar-23	3m2 Euribor	1.58%
32 IT0005217606	Euro	350.0	11-Oct-23	3m2 Euribor	1.65%
33 IT0005241317	Euro	622.5	2-Feb-24	3m2 Euribor	1.52%
Total	Euro	10,702.5		Euribor 1m	2.01%
	1 USD	125.1		USD Libor 1m	2.31%
Totale Eur e USD		10,827.6			2.02%

In Dec.17 we sold \$100mln of UC Bonds (expiring in 2019 and 2021) that would not have passed SPPI test (IFRS9), generating a profit of 4mln recorded in Other Income/expenses line in 4Q17

Amounts expressed at EUR/USD 1.1993 exchange rate (as of December 31° )

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

Details on Net Commissions

mln	1Q16	2Q16	3Q16	4Q16	1Q17	2Q17	3Q17	4Q17	FY16	FY17
Brokerage	20.3	18.5	16.6	19.5	20.3	18.3	16.8	18.0	74.9	73.3
o/w
Equity	16 5	15 2	12 9	16 0	16 7	15 2	13 5	15 2	60 6	60 6
Bond	1 1	1 1	0 9	1 2	1 0	0 9	0 7	0 9	4 4	3 6
Derivatives	3 2	2 6	2 4	2 4	2 4	2 0	1 9	1 9	10 6	8 2
commissions(1) Other	-0 5	-0 5	0 4	-0 1	0 1	0 2	0 6	0 0	-0 7	0 9
Investing	37.5	40.2	41.0	44.1	43.7	44.6	47.1	48.3	162.7	183.7
o/w
fees Placement	1 8	2 8	2 4	2 9	3 1	2 9	2 3	3 2	9 9	11 5
fees Management	40 0	40 5	43 0	44 0	45 3	47 4	48 5	50 7	167 4	192 0
PFA's to	-4 3	-3 2	-4 4	-2 7	-4 7	-5 7	-3 7	-5 7	-14 6	-19 9
Banking	0.3	0.8	1.6	2.0	0.6	1.9	5.7	4.2	4.7	12.4
Other	0.1	0.3	0.1	0.1	0.1	0.2	0.2	0.2	0.6	0.7
Total	58.2	59.7	59.3	65.8	64.7	65.0	69.7	70.7	242.9	270.1

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

Revenue breakdown by Product Area

mln	1Q16	2Q16	3Q16	4Q16	1Q17	2Q17	3Q17	4Q17	FY16	FY17
Net interest income	59.7	58.9	59.9	61.3	62.0	63.1	65.5	67.3	239.8	257.8
Net commissions	0.3	0.8	1.6	2.0	0.6	1.9	5.7	4.2	4.7	12.4
Trading profit	0.9	1.1	0.9	1.5	1.9	1.7	1.2	1.3	4.4	6.2
Other	0.0	0.1	0.1	0.1	0.1	0.1	0.1	0.0	0.2	0.3
Total Banking	61.0	60.8	62.5	64.9	64.7	66.8	72.4	72.8	249.1	276.8
Net interest income	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Net commissions	37.5	40.2	41.0	44.1	43.7	44.6	47.1	48.3	162.7	183.7
Trading profit	0.0	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	0.0
Total Investing	37.5	40.2	41.0	44.1	43.7	44.6	47.1	48.3	162.7	183.7
Net interest income	3.0	2.8	2.6	2.8	2.8	3.2	3.4	3.7	11.2	13.1
Net commissions	20.3	18.5	16.6	19.5	20.3	18.3	16.8	18.0	74.9	73.3
Trading profit	13.3	11.1	9.6	10.2	11.5	10.4	9.7	8.8	44.1	40.4
Other	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Total Brokerage	36.6	32.3	28.7	32.5	34.6	31.9	29.9	30.4	130.1	126.8

Managerial Data

Breakdown Total Financial Assets

mln	Mar 16	Jun 16	Sep 16	Dec 16	Mar 17	Jun 17	Sep 17	Dec 17
AUM	25 565 ,	25 911 ,	27 522 ,	28 608 ,	29 742 ,	30 614 ,	31 339 ,	33 080 ,
o/w Sicav Funds and	22 332 ,	22 395 ,	23 645 ,	24 258 ,	24 984 ,	25 461 ,	25 901 ,	26 999 ,
o/w Insurance	3 219 ,	3 505 ,	3 865 ,	4 339 ,	4 749 ,	5 145 ,	5 431 ,	6 075 ,
o/w GPM	14	12	12	11	9	9	7	7
AUC	12 889 ,	12 688 ,	13 051 ,	13 078 ,	13 895 ,	13 870 ,	14 341 ,	14 164 ,
o/w Equity	6 718 ,	6 526 ,	6 877 ,	7 135 ,	7 969 ,	8 110 ,	8 531 ,	8 718 ,
o/w Bond	6 086 ,	6 081 ,	6 091 ,	5 859 ,	5 858 ,	5 700 ,	5 763 ,	5 426 ,
o/w Other	85	82	83	84	68	60	47	20
Direct Deposits	16 527 ,	16 965 ,	16 989 ,	18 509 ,	18 566 ,	19 142 ,	19 674 ,	19 941 ,
o/w Sight	15 915 ,	16 491 ,	16 638 ,	18 296 ,	18 504 ,	19 105 ,	19 659 ,	19 931 ,
o/w Term	612	475	351	213	62	38	15	10
Total	54 980 ,	55 564 ,	57 562 ,	60 195 ,	62 202 ,	63 627 ,	65 355 ,	67 185 ,

Balance Sheet

mln	Mar 16	Jun 16	Sep 16	Dec 16	Mar 17	Jun 17	Sep 17	Dec 17
Due from Banks	15 404 ,	15 299 ,	14 442 ,	15 736 ,	15 462 ,	14 827 ,	14 293 ,	13 878 ,
Customer Loans	827	880	972	1 017 ,	1 166 ,	1 504 ,	1 716 ,	2 129 ,
Financial Assets	2 629 ,	2 933 ,	3 592 ,	3 764 ,	3 912 ,	4 770 ,	429 5 ,	885 5 ,
Tangible and Intangible Assets	111	111	112	112	112	113	113	113
Derivatives	7	9	8	9	12	15	16	10
Other Assets	286	328	327	349	262	284	249	326
Total Assets	265 19 ,	561 19 ,	453 19 ,	20 986 ,	20 927 ,	513 21 ,	815 21 ,	22 340 ,
Customer Deposits	16 693 ,	17 133 ,	17 250 ,	18 801 ,	18 884 ,	19 441 ,	20 008 ,	20 205 ,
Due Banks to	1 504 ,	1 362 ,	1 139 ,	1 111 ,	980	930	697	926
Derivatives	20	18	15	11	17	16	19	9
Funds and other Liabilities	355	446	392	382	314	506	421	468
Equity	692	603	656	681	732	621	672	732
Liabilities Equity Total and	19 265 ,	19 561 ,	19 453 ,	20 986 ,	20 927 ,	21 513 ,	21 815 ,	22 340 ,

Main Financial Ratios

	Mar	Jun	Sep	Dec	Mar	Jun	Sep	Dec
	16	16	16	16	17	17	17	17
TFA/ (mln) PFA PFA (1)	17 8	17 9	18 8	19 6	20 2	20 7	21 4	22 2
Guided Products / TFA (2)	22%	24%	26%	27%	28%	29%	29%	32%
Cost / (3) income Ratio	43 0%	43 0%	42 2%	41 6%	42 8%	42 9%	40 5%	39 8%
CET	21	22	23	22	22	22	20	20
Ratio	3%	7%	1%	9%	2%	1%	7%	8%
1
Adjusted	43	42	40	40	39	39	39	40
RoE	4%	1%	0%	8%	5%	3%	0%	3%
(4)
(5)	10	9	8	8	7	6	5	5
Leverage	14%	46%	23%	26%	89%	79%	95%	67%
Ratio

(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 34) 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