FinecoBank — Investor Presentation 2019

May 7, 2019

1Q19 Results

Alessandro Foti, CEO and General Manager

Milan, May 7th 2019

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.

UniCredit and Fineco lay the foundations for Fineco's full independence

Fineco as a fully independent entity

• Fineco and UniCredit have approved certain actions and procedures in order to allow Fineco to operate as a fully independent entity, also potentially outside the Group in the future in the future
• No implications on Fineco strategy and business model: Fineco enjoys limited synergies with UniCredit and, as a fully independent company, it will continue to focus on maximizing shareholders' value via healthy, sustainable and organic growth
• Fineco and UniCredit have agreed to enter into certain transitional arrangements to ensure full continuity and an orderly and smooth transition from a regulatory, liquidity and operational standpoint (see next slide)

Full operational continuity and no material economic impacts

• Fineco's full independence will have no implications for its customers and no material impacts on its capital and liquidity strength, nor on its profitability
• In particular, the transitional arrangements will allow Fineco to confirm its:
• current liquidity investment strategy, with no impact on the related net interest income
• solid capital and liquidity position, comfortably above regulatory requirements, by neutralizing – through a financial collateral granted by UniCredit – any potential RWA / risk concentration increase which may have occurred otherwise
• existing cost efficiency and profitability profile

Potential AT1 issuance

• Leverage Ratio will be close to 3% on a pro forma basis following a potential full independence of Fineco from UniCredit
• With a view to proactively maintaining the ratio comfortably above 3%, and well ahead of the regulatory deadline of 2021, Fineco is evaluating the issuance of up to €200mln AT1 in the next months

Fineco and UniCredit transitional agreements – key pillars

The transitional arrangements entered by Fineco and UniCredit cover the liquidity investment strategy, the trademark and existing intragroup services. Such arrangements will be activated only in case Fineco was to fall outside UniCredit Group.

Liquidity investment strategy

• No change in the investment policy previously communicated to the market, envisaging an increasing diversification of financial investments as the existing stock of UniCredit bonds, currently at €8.3bn(1) , progressively runs off by 2024
• UniCredit will grant a financial collateral in favour of Fineco in order to secure the existing credit risk exposures towards UniCredit and neutralize the capital impacts and risk concentration limits in case of a possible future exit of Fineco from the UniCredit Group

Trademark

• UniCredit and Fineco have also undertaken to maintain in force the existing trademark license agreement, which envisages Fineco's right to use such trademark at the current conditions
• Fineco will have the option to buy the brand in the future at fixed strike prices in a number of given call option windows up to 2032
• In particular, assuming Fineco was to repurchase the trademark at the pre-agreed strike price for that specific period, the exercise of the call option would not be expected to have a material impact on its capital position

Intragroup services

• UniCredit will continue to provide, on an interim basis, certain services to Fineco in line with the current operations and terms in order to allow the Fineco to act in full operational continuity, including, for example, ATMs and other administrative services
• In particular, the current contract for customers' access to banking services through ATMs and physical branches will be extended for 20 years at market conditions agreed time by time

Agenda

Key messages

Developing opportunities and next step

Focus on product areas

5

Executive Summary

• 1Q19 adjusted net profit(1) at 62.6mln, up y/y (+6.1% y/y) confirming the sustainability of a business model able to deliver consistent results in every market condition
• 1Q19 growing adjusted revenues(1) (+1.8% y/y) supported by Investing area (+15.2% y/y) with management fees up +13.7% y/y and Banking area (+4.9% y/y) thanks to high quality volume growth in deposits and lending despite lower contribution from Brokerage (-20% y/y) due to lower volatility and increased regulation.
• 1Q19 Operating Costs well under control at 65.3mln, increasing by 2.6% y/y due different distribution of marketing costs among quarters (net of this, flat y/y). C/I ratio at 41%, flat y/y, confirming operating leverage as a key strength of the bank
• Strong and safe capital position: CET1 ratio transitional at 21.0% and TCR transitional at 29.1%
• 1Q19 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 1.7bn (+3.1% y/y)
• Total Financial Assets at 74.1bn (+8.9% y/y)
• Guided Products & Services penetration rate on AuM stock up to 68% (+3.6 p.p. y/y)
• Almost 1,300mln clients (+6.5% y/y)

Results

1Q19 Net Profit up +6.1% y/y boosted by diversified revenues growth. C/I ratio at 41%. Q/Q comparison impacted by usual 1Q seasonality on costs and low market volatility

(1) 1Q19 non recurring items: Voluntary Scheme: -0.4mln gross, -0.3mln net

4Q18 non recurring items: Voluntary Scheme: -3.0mln gross, -2.0mln net; integration costs -0.1mln gross, -0.1mln net

(2) Adj. Cost/Income and adj. RoE calculated net of non recurring items. See page 43 for details.

Net interest income (1/2)

Increasing NII (+2.1% y/y) thanks to valuable and sticky sight deposits coupled with high-quality lending portfolio. Increasing diversification in financial investments

(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 46 for details

(3) Lending: only interest income (4) Gross margins: interest income related to financial investments, lending, leverage, security lending on interest-earning assets 8

Net interest income (2/2)

Further improvements for a diversified asset side. Sensitivity analysis +100bps parallel shift: +113 mln

Bond Portfolio

UC bonds and Govies run-offs

9

Commissions and Trading Income

Fees and commissions grew +8.3% y/y. Sustainable growth generating recurring revenues and very limited upfront fees. Brokerage affected by low volatility in 1Q19

(1) 2019 non recurring items: systemic charges (trading profit) -0,4mln gross; 2018 non recurring items: Voluntary Scheme (trading profit): -3.0mln gross, -2.0mln net in 4Q18

10 (2) Volatility calculated as average volatily of BUND, BTP, SP, EUROSTOXX, MINIDAX, DAX, FIB, MINIFIB, NASDAQ, DOW weighted on volumes related to futures traded by our clients

Costs

Cost efficiency and operating leverage confirmed in our DNA. Quarterly comparison affected by seasonality (mainly PFAs costs) and different marketing costs distribution

(1) Other administrative expenses with breakdown between development and running costs: managerial data

(2) following IFRS16, leasing costs previously accounted in other administrative expenses are now booked in write-down/backs and depreciation. For more details on IFRS16 please refer to page 51

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 (87mln in Mar.19 vs 89mln in Dec.18 vs 85mln in Mar.18), collateral deposits and initial and variation margins (99mln in Mar.19 vs 85mln in Dec.18 vs 36mln in Mar.18), bad loans (1.6mln in Mar.19 vs. 1.6 mln in Dec.18 vs 1.7mln in Mar.18), other (-3.3mln in Mar.18 vs 2.0mln in Dec.18 vs -3.0mln in Mar.18)

(3) New methodology for calculating Cost of Risk to have a better representation of the ratio: commercial LLP of the last 12 months on avg commercial Loans instead of annualized LLP 12

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 13

Capital Ratios

Best in class capital position and low risk balance sheet

TFA

Relentless TFA growth thanks to a healthy expansion in net sales. Guided products & Services increased at 68% of total AuM

TFA evolution (Dec.13 – Mar.19)

TFA breakdown

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

(1) "Best in class" are a selection of advisory products and services based on: cost optimization, quality, sustainability and risk (2) Other includes: Core Funds, PIR and Core Pension

Net sales breakdown

Solid high quality 1Q19 net sales growth on the wave of structural trends in place despite a complex environment. Asset mix returning into AuM with more conservative solutions

Organic growth

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

of PFAs recruited in the period

Agenda

Fineco Results

Developing opportunities and next step

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

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

Committed to maximize Shareholders' value

Strategy based on healthy growth and sustainability with a long term horizon

	A coherent approach in the whole strategy of growth
	 Clients' acquisition driven by high quality services , transparency and fair pricing
HIGH	 Organic growth key in our strategy without short-term aggressive commercial offers and with zero remuneration on current accounts.
QUALITY	 Sustainable investing revenues, almost entirely recurring with only ~2% upfront on total investing fees and no performance fees
LOW RISK	 Safe, robust and low risk Balance Sheet: diversified, highly liquid and low risk asset side combined with valuable and sticky sight deposits
	 Very low Cost of Risk
	 Solid capital position
	 Operating leverage as distinctive competitive advantage for Fineco
FINTECH	 Strong internal IT culture allows us to have a highly scalable business
BANK	 Internal Big Data Analytics allows us to run a low risk business model and to exploit growth opportunities

… leading consistent results in every market conditions

(1) Net Profit adjusted (net of DGS) , mln
CAGR
+10.9%
66.2 61.0 60.4 59.0 55.1 54.8 51.2 52.0 51.7 52.6 47.8 47.7 49.8 45.9 40.1 40.8 37.3 36.4	65.6 63.2 62.6
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18	3Q18 4Q18 1Q19

(1) Net Profit adjusted net of Deposit Guarantee Scheme (FY15: -3.1mln net, FY16: -7.1mln net, FY17: -7.1mln net, FY18: -9.6mln net)

Safe Balance Sheet: simple, highly liquid and low risk asset side, valuable and sticky deposits

(1) Due from banks includes 2.1bn current accounts (immediate available liquidity), 1.7bn term deposits

Fairness and transparency core in our strategy. Sustainable and highly recurring Investing revenues

Brokerage: the perfect countercyclical business

Leading position in Brokerage

• Operating Platform Excellence: multichannel and fully integrated
• Well advanced in-house know-how, optimizing time-to-market and cost efficiency
• In-house back-office and customer care. Business continuity always guaranteed
• Order internalization supporting Brokerage performance: equity, bonds and forex
• Robust risk management, mostly intra-day positions
• Stable and differentiated client base: focus on low risk light traders

Operating Leverage A distinctive competitive advantage of Fineco

	IT and back office internally managed, deep internal know-how
	 17% FTEs in IT department, 24% in Back-Office
Platform scalability	 Core system internally managed
	 Internal DWH to fully leverage on Big Data Analytics
and	 Very low IT CAPEX (~10-12 mln 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 38) net of Deposit Guarantee Scheme (2015: -3.1mln net, 2016: -7.1mln net, 2017: -7.1mln net, 2018: -9.6mln net)

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 PRODUCTIVITY Strong opportunities in enlarging the actively managed clients thanks to our Cyborg Advisory approach and advisory platforms. +11.1% y/y total assets per PFA of which +9.2% y/y AuM and 15.3% y/y guided products and services. Net sales from existing clients almost doubled in the last 2 years.

New platform to further boost productivity of the Bank

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

3

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. widening of multicurrency offer)

Dedicated offer to professional clients: full operative 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)

27

Continuously increase of quality and productivity of the network

Cross selling and clients' profile

Fineco Asset Management in a nutshell AUM at €11.4bn, of which €6.4bn retail classes

3

	STRATEGY	ACHIEVEMENTS	2019 FOCUS
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	Product efficiency Rationalization strategies Optimisation through FAM Series underlying	Further improvements in operational efficiency along all the value chain
SUB-ADVICED FUNDS	Best global investments managers with their flagship strategies at the better conditions for customers - full visibility of underlying assets - improved risk monitoring	31strategies released (78 ISIN) Transformation of Guided Products underlying assets (Insurance wrappers)	Further offer enlargement through an exclusivity agreement for Fineco clients only
		9 FAM Evolution	Modern multi-thematic funds,
FAM EVOLUTION	New building blocks based on customer risk/returns profile for the evolution of FinecoBank advisory platforms.	advisory products released Passive strategies fully developed in house by FAM	continuously monitored and updated, fully ESG (expected launch in 1H19) Further evolution of advisory products

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

Sustainability at the heart of Fineco's business model

Our sustainable growing strategy is inspired by principles and voluntary directions of the most relevant international organisations. Our initiatives are consistent with the achievements of the 17 Sustainable Development Goals (SDGs) of the UN 2030 Agenda.

In 2018 Standard Ethics(1) confirmed our Standard Ethics Rating(2) at "EE", a grade given to sustainable companies with low reputational risk profile and strong prospects for long-term growth.

In 2018 we established an Appointments and Sustainability Committee, in charge of supervising the Bank's sustainable growth strategy and ESG plans, with the support of a Sustainability Management Committee. Moreover, during the same year we defined the Materiality Matrix for the Bank, to define the relevant topics for Fineco and its Stakeholders.

21% of our clients' assets in funds are already ESG(3) (5.3bn in Dec18).

More than 2,000 funds in our open architecture platform are ESG(3) .

We are continuously updating our ESG offer: FAM is expected to launch multi-thematic funds in 1H19 and we will further enrich our Advice platform with ESG model portfolios. In addition, a "Search ESG" will be added in our platform.

(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.

Agenda

Fineco Results

Key messages

Developing opportunities and next step

Focus on product areas

Developing opportunities

• 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
• Second phase already started, with more focus on marketing activities on the territory (value proposition / selling points and education on brokerage) and commercial activities

Patent Box

• We applied in 2015 for intellectual properties (our platforms internally created and developed) and trademark. Fiscal benefits are for 5 years: 2015, 2016, 2017, 2018 and 2019 as the regime is characterized by a 5-year lock-in period. Intellectual proprieties are renewable according to international guidelines
• We expect to close the agreement with Italian Fiscal Authority for the first 5 years by the end of 2019

Next step: New platforms to further boost productivity of the Bank (1/3) Third evolutionary step in Fineco's disruptive growth story

Our unique competitive advantage Why disruptive?

• Best-in-class technology resulting from strong internal IT culture: one single database containing all data, allowing us to have an accurate idea of clients' needs

• PFAs used to technology with a cyborg advisory approach

• We are the only one player able to combine cyborg advisory approach with Big Data analytics

• The new platforms allow to better exploit the potential of growth of assets and clients and at the same time to better serve them

PFAs' productivity further strenghtened through the Assisted Selling Platform and Co-working Platform

Next step: New platforms to further boost productivity of the Bank (2/3) Boosting our PFAs' efficiency and productivity through Big Data Analytics

Assisted Selling Platform

• X-Net, Fineco's cyborg advisory platform for our PFAs, will be further empowered with customers' financial gaps
• The Bank will provide its PFAs with tailor-made solutions to solve customers' financial gaps (e.g. Credit Lombard, pension funds, building blocks based on risk-profile)
• Efficiency and time-saving for PFAs: it will be easier to approach new customers and to manage them (e.g. automatic rebalancing of funds of funds to keep them on the efficient frontier)
• The project will start in 2H19 and the new platform is expected to be launched by the beginning of 2020
• We will start testing the new platform with Credit Lombard in the coming months

Co-Working Platform

• The platform will be integrated in X-Net and will further improve productivity by enabling our PFAs to share customers (and related fees) with other colleagues
• Accelerator for our Assisted Selling Platform as it will allow our PFAs to manage more actively a higher number of customers
• It will represent a further boost to develop Private Banking customers, as they could be covered by more PFAs with a wider set of competences
• Expected launch: end of 2019

Next step: New platforms to further boost productivity of the Bank (3/3) The Assisted Selling Platform - details

PFA X-Net Platform

Agenda

Fineco Results

Key messages

Developing opportunities and next step

Focus on product areas

Revenues by Product Area

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

1Q19 weight on total revenues for each product area

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.

2018 Revenues recasted for trading profit related to Multicurrency (moved from Banking to Brokerage).

Banking

Sound performance driven by strong volume growth and relentless clients' acquisition, thanks to high quality services and best-in-class customer satisfaction

20,616 22,066 22,938 7 3 Mar.18 Dec.18 2 Mar.19 20,624 22,069 22,941 +11.2% +3.9%

Clients and new clients

Managerial Data

Brokerage

1Q19 Brokerage performance affected by low volatility in the period. Continuous enlargement of product offer

• 1Q19 affected by low volatility. We are further diversifying our offer and continuously enlarging our products offer to well-balance the effect coming from new ESMA regulation, in place since July 2018
• 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 24.75% in Dec.18(1) , +5.10p.p. vs Dec.17) confirming Fineco as leader in brokerage

Investing

Successful strategy based on our cyborg advisory approach drove a better asset mix and increasing fees y/y. Very limited upfront fees representing only 2% of investing fees

Guided products on total AuM

Managerial Data

41

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

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

Annex

P&L

mln	1Q18	2Q18	3Q18	4Q18	FY18	1Q19
Net interest income	68 9	68 7	69 9	71 1	278 7	70 4
Net commissions	71 5	74 5	72 7	81 8	300 4	4 77
profit Trading	14 5	13 1	10 7	5 9	44 2	9 8
Other expenses/income	0 5	0 1	-0 4	1 7	1 9	0 2
Total revenues	155 4	156 4	153 0	160 4	625 3	157 .7
Staff expenses	-20 5	-21 0	-23 2	-21 9	-86 6	-21 7
Other admin of recoveries .exp. net	-40 8	-37 5	-34 1	-36 3	-148 7	-38 5
D&A	-2 3	-2 5	-2 5	-3 1	-10 4	-5 1
Operating expenses	-63 6	-61 0	-59 .7	-61 4	-245 8	-65 3
Gross operating profit	91 8	95 4	93 3	99 1	379 5	92 5
Provisions	-1 8	-1 9	-15 9	-1 8	-21 4	-1 0
LLP	-1 3	0 2	-0 9	-2 3	-4 4	-1 3
Integration costs	0 0	0 0	0 0	-0 1	-0 1	0 0
Profit from investments	0 0	5 2	-0 9	-3 2	1 1	-0 7
Profit before taxes	88 .7	98 8	75 6	91 .7	354 .7	89 5
Income taxes	-29 7	-32 6	-23 0	-28 2	-113 5	-27 3
Net profit for the period	59 0	66 2	52 6	63 5	241 2	62 3
Income(1) Normalised Net	59 0	66 2	53 6	65 6	244 4	62 6

Non recurring items (mln , gross)	1Q18	2Q18	3Q18	4Q18	FY18	1Q19
(2) Extraord systemic charges (Trading Profit)	0 0	0 0	0 0	-3 0	-3 0	-0 4
Integration costs	0 0	0 0	0 0	-0 1	-0 1	0 0
Severance	0 0	0 0	-1 6	0 0	-1 6	0 0
Total	0 0	0 0	-1 6	-3 1	-4 8	-0 4

P&L net of non recurring items

mln	1Q18	2Q18	3Q18 Adj. (1)	4Q18 Adj. (1)	FY18 Adj. (1)	1Q19 Adj. (1)	1Q19/ 1Q18	1Q19/ 4Q18
Net interest income	68.9	68.7	69.9	71.1	278.7	70.4	2.1%	-1.0%
Net commissions	71.5	74.5	72.7	81.8	300.4	77.4	8.3%	-5.4%
Trading profit	14.5	13.1	10.7	8.9	47.3	10.2	-29.5%	14.8%
Other expenses/income	0.5	0.1	-0.4	1.7	1.9	0.2	-60.0%	n.s.
Total revenues	155.4	156.4	153.0	163.5	628.3	158.2	1.8%	-3.2%
Staff expenses	-20.5	-21.0	-21.6	-21.9	-85.0	-21.7	5.5%	-1.2%
Other admin.expenses	-40.8	-37.5	-34.1	-36.3	-148.7	-38.5	-5.6%	5.9%
D&A	-2.3	-2.5	-2.5	-3.1	-10.4	-5.1	119.9%	64.2%
Operating expenses	-63.6	-61.0	-58.1	-61.4	-244.1	-65.3	2.6%	6.4%
Gross operating profit	91.8	95.4	94.9	102.1	384.2	92.9	1.2%	-9.0%
Provisions	-1.8	-1.9	-15.9	-1.8	-21.4	-1.0	-44.7%	-44.9%
LLP	-1.3	0.2	-0.9	-2.3	-4.4	-1.3	-3.3%	-45.7%
Integration costs	0.0	0.0	0.0	0.0	0.0	0.0	25.9%	25.9%
Profit from investments	0.0	5.2	-0.9	-3.2	1.1	-0.7	n.s.	n.s.
Profit before taxes	88.7	98.8	77.2	94.8	359.5	90.0	1.5%	-5.1%
Income taxes	-29.7	-32.6	-23.5	-29.2	-115.1	-27.4	-7.7%	-6.2%
Net profit adjusted 1	59.0	66.2	53.6	65.6	244.4	62.6	6.1%	-4.6%

1Q19 P&L FinecoBank and Fineco Asset Management

mln	Fineco Asset Management	FinecoBank Individual	FinecoBank Consolidated
Net interest income	0.0	70.4	70 4
Dividends	0.0	0.0	0 0
Net commissions	14.3	63.0	77 4
Trading profit	0.1	9.7	9 8
Other expenses/income	0.0	0.2	0 2
Total revenues	14.4	143.3	157 7
Staff expenses	-0.9	-20.8	-21 7
Other of admin recoveries .exp. net	-0.8	-37.7	-38 5
D&A	-0.1	-5.1	1 -5
Operating expenses	-1.7	-63.6	-65 3
Gross operating profit	12.7	79.7	92 5
Provisions	0.0	-1.0	-1 0
LLP	0.0	-1.3	-1 3
Integration costs	0.0	0.0	0 0
Profit on Investments	0.0	-0.7	-0 7
Profit before taxes	12.7	76.8	89 5
Income taxes	-1.6	-25.7	-27 3
Net profit for the period	11.1	51.2	62 3

Details on Net Interest Income

mln	1Q18	Volumes & Margins	2Q18	Volumes & Margins	3Q18	Volumes & Margins	4Q18	Volumes & Margins	FY18	Volumes & Margins	1Q19	Volumes & Margins
Financial Investments	56.9	18,449	57.5	18,887	57.1	18,817	57.7	19,133	229.2	18,822	57.1	19,748
Net Margin		1.25%		1.22%		1.20%		1.20%		1.22%		1.17%
Gross margin	58.6	1.29%	59.8	1.27%	59.3	1.25%	60.1	1.25%	237.8	1.26%	59.6	1.22%
Security Lending	0.2	804	0.2	726	0.2	753	0.4	743	1.1	756	0.6	836
Net Margin		0.11%		0.10%		0.12%		0.24%		0.14%		0.31%
Leverage - Long	2.7	182	2.7	181	3.0	196	3.0	150	11.5	178	2.7	129
Net Margin		6.06%		6.03%		6.11%		7.95%		6.47%		8.45%
Lending	9.2	1,854	9.5	2,080	9.9	2,316	10.3	2,472	38.8	2,180	10.5	2,611
Net Margin		2.01%		1.84%		1.69%		1.65%		1.78%		1.62%
o/w Current accounts	2.4	684	2.6	788	2.8	891	3.0	970	10.8	833	2.9	1,040
Net Margin		1.43%		1.33%		1.23%		1.21%		1.29%		1.14%
o/w Cards	1.2	240	1.2	232	1.2	252	1.2	251	4.8	244	1.2	245
Net Margin		2.00%		2.05%		1.93%		1.97%		1.99%		2.00%
o/w Personal loans	4.3	370	4.4	394	4.4	411	4.5	427	17.6	400	4.6	441
Net Margin		4.67%		4.45%		4.29%		4.18%		4.39%		4.20%
o/w Mortgages	1.3	560	1.4	666	1.4	763	1.6	824	5.7	703	1.8	886
Net Margin		0.96%		0.81%		0.75%		0.75%		0.81%		0.80%
(1) Other	-0.1		-1.2		-0.3		-0.3		-1.9		-0.5
Total	68.9		68.7		69.9		71.1		278.7		70.4
Gross Margin Cost of Deposits		1.33% -0.03%		1.31% -0.04%		1.29% -0.04%		1.29% -0.04%		1.30% -0.04%		1.26% -0.05%

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	(€ m) Amount		Maturity	Indexation	Spread
1	IT0005010613	Euro		382 5	1-Apr-19	Euribor 1m		0.38%
2	IT0005010282	Euro		382 5	15-Jul-19	Euribor 1m		2.37%
3	IT0005010399	Euro		382 5	14-Oct-19	Euribor 1m		2.40%
4	IT0005010324	Euro		382 5	13-Jan-20	Euribor 1m		2.44%
5	IT0005010365	Euro		382 5	10-Apr-20	Euribor 1m		2.47%
6	IT0005010308	Euro		382 5	9-Jul-20	Euribor 1m		2.49%
7	IT0005010381	Euro		382 5	7-Oct-20	Euribor 1m		2.52%
8	IT0005010332	Euro		382 5	6-Jan-21	Euribor 1m		2.54%
9	IT0005010316	Euro		382 5	6-Apr-21	Euribor 1m		2.56%
10	IT0005010340	Euro		382 5	5-Jul-21	Euribor 1m		2.58%
11	IT0005010225	Euro		382 5	18-Oct-21	Euribor 1m		2.60%
12	IT0005010860	USD1		44 6	7-Apr-20	USD Libor 1m		2.66%
13	IT0005158503	USD1		44 6	23-Dec-22	USD Libor 1m		1.93%
14	IT0005040099	Euro		100 0	24-Jan-22	Euribor 1m		1.46%
15	IT0005057994	Euro		200 0	11-Apr-22	Euribor 1m		1.43%
16	IT0005083743	Euro		300 0	28-Jan-22	Euribor 1m		1.25%
17	IT0005106189	Euro		230 0	20-Apr-20	Euribor 1m		0.90%
18	IT0005114688	Euro		180 0	19-May-22	Euribor 1m		1.19%
19	IT0005120347	Euro		700 0	27-Jun-22	Euribor 1m		1.58%
20	IT0005144065	Euro		450 0	14-Nov-22	3m2 Euribor		1.40%
21	IT0005144073	Euro		350 0	15-Nov-21	3m2 Euribor		1.29%
22	IT0005158412	Euro		250 0	23-Dec-22	3m2 Euribor		1.47%
23	IT0005163180	Euro		600 0	11-Feb-23	3m2 Euribor		1.97%
24	IT0005175135	Euro		100 0	24-Mar-23	3m2 Euribor		1.58%
25	IT0005217606	Euro		350 0	11-Oct-23	3m2 Euribor		1.65%
26	IT0005241317	Euro		622 5	2-Feb-24	3m2 Euribor		1.52%
	Total	Euro		8,640.0		Euribor 1m		1.92%
		1 USD		89.1		USD Libor 1m		2.30%
	Totale Eur e USD			8,729.1				1.92%

Amounts expressed at EUR/USD 1.1218 exchange rate (as of March 30th, 2019)

In order to calculate an average spread on Eur1m, a basis swap of 0.08% is considered

Details on Net Commissions

mln	1Q18	2Q18	3Q18	4Q18	FY18	1Q19
Brokerage	20	20	15	18	74	18
	6	1	8	2	7	5
o/w
Equity	17	16	13	14	61	15
	5	4	1	9	8	6
Bond	0	1	0	0	3	0
	8	2	6	9	6	9
Derivatives	2	2	2	2	10	2
	5	7	2	9	2	3
commissions(1) Other	-0 1	-0 2	-0 1	-0 5	-0 9	-0 2
Investing	47	49	52	58	206	54
	1	5	2	0	8	2
o/w
fees Placement	2 5	2 4	1 4	1 4	7 8	1 1
Management fees	50 2	53 9	54 9	57 0	216 0	57 1
PFA's:	-4	-5	-3	-0	-14	-3
incentives	8	8	1	4	1	0
to
PFA's:	-0	-1	-1	0	-2	-1
LTI	9	1	0	0	9	0
to
Banking	3	4	5	5	18	5
	4	7	4	5	1	4
Other	0	0	0	0	0	0
	3	3	2	2	9	1
Total	71	74	72	81	300	4
	5	5	7	8	4	77

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

Revenues breakdown by Product Area

mln	1Q18	2Q18	3Q18	4Q18	FY18	1Q19
Net interest income	67 3	68 4	68 5	69 7	273 8	69 6
Net commissions	3 4	4 7	4 5	5 5	18 1	4 5
Trading profit	0 0	0 0	0 0	0 0	0 0	0 0
Other	0 1	0 2	0 1	0 0	0 4	0 1
Banking Total	70 8	73 3	73 0	75 2	292 3	74 2
Net interest income	0 0	0 0	0 0	0 0	0 0	0 0
Net commissions	47 1	49 5	52 2	58 0	206 8	54 2
Trading profit	0 0	0 0	0 0	0 0	0 0	0 0
Other	0 0	0 0	0 0	1 7	1 7	0 0
Total Investing	47 1	49 5	52 2	59 7	208 5	54 2
Net interest income	3 2	3 2	3 4	3 6	13 4	3 4
Net commissions	20 6	20 1	15 8	18 2	74 7	18 5
Trading profit	13 8	12 2	8 2	10 6	44 8	8 2
Other	0 0	0 0	0 0	0 0	0 0	0 0
Total Brokerage	37 7	35 4	27 4	32 4	132 9	30 2

Managerial Data

IFRS 9 P&L impacts

mln	1Q18	2Q18	3Q18	4Q18	FY18	1Q19
Profit Trading	0 6	0 9	0 9	-3 8	-1 4	0 8
Visa	0 6	0 9	0 9	-0 7	1 6	1 2
Scheme Voluntary	0 0	0 0	0 0	-3 0	-3 0	-0 4
Loan Loss Provisions	-0 4	2 4	-0 4	-0 6	1 0	-1 0
Profit Investments on	0 0	3 5	-0 9	-3 1	1 3	-0 7
Govies	-0 2	-0 2	-0 1	-0 8	-1 3	0 2
UC Bonds	0 2	5 5	-0 8	-2 3	2 6	-0 8
impacts from IFRS Total 9	0 2	8 6	-0 4	-7 5	0 8	-0 9

Accounting standard IFRS 9, starting from January 1 st , 2018, introduced a new impairment accounting model for credit exposures and resulted in an extension of the Bank's scope of recognition.

In detail, P&L IFRS 9 impacted:

• Trading Profit: impacts from VISA and Voluntary Scheme valuation
• Loan Loss Provisions: impacts from deposits with UniCredit
• Profit on Investments: valuation on UniCredit Bonds and Government Bonds

IFRS 16 impacts

mln	1Q18	2Q18	3Q18	4Q18	FY18	1Q19
Net interest Income						-0 2
Other Administrative Expenses	-3 1	-3 1	-3 1	-3 4	-12 7
offices financial Leasing Reggio Emilia and shops	-2 3	-2 3	-2 3	-2 4	-9 4
Leasing Milano headquarter	-0 8	-0 8	-0 8	-0 9	-3 3
Write-down/backs and depreciation						-2 2
Leasing Reggio Emilia offices and financial shops						-2 2

Accounting standard IFRS 16, starting from January 1st, 2019, replaced the previous set of international accounting principles and interpretations on leasing and in particular IAS17, so comparison with 2018 is not significant.

In detail, P&L IFRS 16 impacted:

• Net Interest Income: the application of the new accounting standard envisages an impact on NII of -0.2mln following the discounting of the liabilities linked to leasing
• Write-down/backs and depreciation: rents previously accounted in Other Administrative Expenses, following the application of the new accounting standards are now booked in Write-down/backs and Depreciation

Breakdown Total Financial Assets

mln	Mar 18	Jun 18	Sep 18	Dec 18	Mar 19
AUM	33 536 ,	34 496 ,	34 930 ,	33 485 ,	35 988 ,
o/w Funds and Sicav	26 666 ,	26 809 ,	26 795 ,	24 853 ,	26 361 ,
o/w Insurance	6 395 ,	7 043 ,	7 355 ,	7 618 ,	8 401 ,
o/w GPM	1	1	1	1	1
o/w AuC deposits under advisory +	475	643	779	1 012 ,	1 225 ,
o/w in Advice	475	477	494	535	572
o/w in Plus	0	166	285	477	653
AUC	13 890 ,	14 366 ,	14 395 ,	13 779 ,	15 187 ,
o/w Equity	8 573 ,	8 736 ,	8 846 ,	8 007 ,	9 137 ,
o/w Bond	298 5 ,	613 5 ,	534 5 ,	759 5 ,	6 037 ,
o/w Other	20	18	15	13	13
Direct Deposits	20 624 ,	20 968 ,	21 536 ,	22 069 ,	22 941 ,
o/w Sight	20 616 ,	20 962 ,	21 532 ,	22 066 ,	22 938 ,
o/w Term	7	6	4	3	2
Total	68 050 ,	69 830 ,	70 861 ,	69 333 ,	74 116 ,
o/w Guided Services Products &	21 425 ,	22 199 ,	22 879 ,	22 370 ,	24 301 ,

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

o/w TFA Private Banking 26,109 26,992 27,474 25,830 29,041

Balance Sheet

mln	Mar 18	Jun 18	Sep 18	Dec 18	Jan 1st 19	Mar 19
Due from Banks	3 488 ,	3 224 ,	3 398 ,	3 059 ,	3 059 ,	3 807 ,
Customer Loans	2 318 ,	2 633 ,	2 736 ,	2 955 ,	2 955 ,	3 029 ,
Financial Assets	17 106 ,	17 199 ,	17 678 ,	18 238 ,	18 238 ,	19 012 ,
Tangible and Intangible Assets	112	112	112	115	180	243
Derivatives	0	3	0	8	8	29
Other Assets	211	254	259	357	357	259
Total Assets	235 23 ,	425 23 ,	24 183 ,	24 733 ,	24 797 ,	26 380 ,
Customer Deposits	20 916 ,	21 197 ,	21 827 ,	22 273 ,	22 333 ,	23 311 ,
Due Banks to	960	908	1 000 ,	1 010 ,	1 014 ,	1 605 ,
Derivatives	0	2	0	8	8	32
Funds and other Liabilities	367	445	452	466	466	393
Equity	992	874	904	976	976	1 040 ,
Liabilities Equity Total and	23 235 ,	23 425 ,	24 183 ,	24 733 ,	24 797 ,	26 380 ,

IFRS16: the Bank decided to not disclose comparative data from previous periods, as allowed by new accounting standards.

No effect was recorded in net equity on the date of first application. This is because for the purposes of FTA, the financial liabilities for leasing were valued and recorded at the current value of the residual future payments on the transition date, and the corresponding assets consisting of the right of use were valued at the amount of the financial liability plus the advanced leasing payments recorded in the financial situation immediately prior to the date of initial application (31st December, 2018).

Total assets: 98% not exposed to volatility

Out of 26.4bn, only 0.5bn of Assets valuated at fair value with limited impacts on Equity reserve

(1) Due from banks includes 2.1bn current accounts (immediate available liquidity), 1.7bn term deposits

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

(3) Other HTC: 384.0mln France, 337.9mln Ireland, 305.3mln Belgium , 305.0mln Austria, 258.0mln Germany, 118.0mln Poland (4) Other HTCS: 69.3mln US, 41.1mln Ireland , 36.3mln France

Main Financial Ratios

	Mar	Jun	Sep	Dec	Mar
	18	18	18	18	19
PFA TFA/ PFA (mln) (1)	5 22	23 0	23 4	23 2	25 0
Guided Products / TFA (2)	31%	32%	32%	32%	33%
Cost / income Ratio (3)	41 0%	40 0%	39 3%	38 9%	41 3%
CET	20	20	20	21	21
1	2%	7%	5%	2%	0%
Ratio
(4)	35	37	35	35	30
Adjusted	1%	0%	2%	7%	8%
RoE
(5)	7	6	6	5	5
Leverage	15%	51%	00%	55%	11%
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 43) calculated as Operating Costs divided by Revenues net of non recurring items

(4) RoE: Net Profit, net of non recurring items (see page 43) 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

High-value deposit base confirms strong resilience over time

Sight deposits growth

• 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: 4bps
• 83% 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

Headquarters acquisition - details

Deal

• January ³¹st 2019: completed the headquarters acquisition in Milan from Immobiliare Stampa S.C.p.A. (controlled by Banca Popolare di Vincenza S.p.A. in compulsory winding up)
• Price of the deal: €62mln
• Rationales: favourable conditions of the deal, expected running cost savings and limited additional impacts on capital ratios, given the introduction of new IFRS 16 accounting standard (leasing) in place since January 2019

Capital ratios impacts

• With the new IFRS ¹⁶, leasing value impacts RWA and capital ratios
• Additional expected impact (building acquisition versus recognition of leasing value): -34bps on CET1 ratio, absolutely manageable considering our rock-solid capital position

Additional Tier 1

Details	Benefits
 Given current favorable market conditions and spread levels, on 23rd January, 2018 the Bank issued a €200mln perpetual AT1	 Sustain a more diversified investment strategy through the non-renewal of UC Bonds run-offs and the progressive increase of European Govies
 Coupon fixed at 4.82% for the initial 5.5 years	 Leverage Ratio evolution in a comfortable zone, even
 Intra-group private placement, fully subscribed by UniCredit SpA	by further diversifying the investment portfolio
 Semi-annual coupon: 5.9mln net of taxes in 2018	 Several benefits came from intra-group private placement, both in terms of effective costs savings and
 Net coupon will impact directly Equity reserves (~6.5mln net of taxes per year)	faster issuance process, allowing the Bank to maximize the benefits of the deal

UniCredit and Intesa AT1 yield at first call 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