FY19 Results

Alessandro Foti, CEO and General Manager

Milan, February 11th 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.
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

Fineco Results

Next steps and developing opportunities

Key messages

Focus on product areas

Executive Summary

Double digit net profit growth

2019 Net profit at 288.4mln, +20% y/y. This result benefits from the fiscal benefit coming from the Patent box (estimated at around 22mln). Adj. Net profit(1) at 268.8mln, +10% y/y confirming the sustainability of a business model able to deliver consistent results in every market condition
Growing revenues(1) at 658mln, +5% y/y supported by all business areas: Investing, +10% y/y, with management fees up +12% y/y, and Banking area (+2% y/y) thanks to high quality volume growth in deposits and lending. Revamped Brokerage (+15% 2H19/1H19) thanks to an in-depth review of our product offer after the change in the market structure due to lower volatility and increased regulation
Operating Costs well under control at -250mln, +2% y/y. C/I ratio at 37.9%, -0.9 p.p. y/y, confirming operating leverage as a key strength of the Bank

Strong and safe capital position

CET1 ratio at 18.12% and TCR at 33.67%, with a proposal of 32.0 €/cents dividend per share (+5.6% y/y)

Robust commercial activity

2019 Net sales at 5.8bn, TFA at 81.4bn with penetration of Guided products on Assets under Management at 71%
Fineco Asset Management recorded its best quarter in terms of retail total net sales

Delivering on our industrial measures

Banking: initiatives to further improving our client base and slowing down the growth of our Balance Sheet
Investing: further push to move customers' liquidity in Asset under Management, leveraging on product innovation, FAM and the new platform
Brokerage: revamped results after a completely redesigned product offer

Results

Adj. Net Profit at 268.8mln, +10.0% y/y, boosted by diversified revenues growth. C/I ratio at 37.9%, down ~0.9 p.p. y/y confirming our strong operating leverage

5 (1) FY19 non recurring items: Voluntary Scheme: -3.0mln gross, -2.0mln net (1Q19: -0.4mln gross, -0.3mln net; 2Q19: -4.3mln gross, -2.9mln net; 3Q19: +0.4mln gross, +0.3mln net; 4Q19: +1.4mln gross, +0.9mln net); Patent Box estimate: 21.6mln in 4Q19. FY18 non recurring items: Voluntary Scheme: -3.0mln gross, -2.0mln net in 4Q19; Staff expenses -1.6mln gross, -1.1mln net in 3Q19; Integration costs release: -0.1mln gross, -

0.1mln net. (2) Adj. Cost/Income and Adj. RoE calculated net of non recurring items

Net interest income (1/2)

Solid NII, +0.9% 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, Covered bonds, Supranational and Agencies 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 6

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

Net interest income (2/2)

Further improvements for a diversified asset side.

Sensitivity analysis +100bps / -100bps parallel shift: +129mln NII / -119mln NII

(1) Sovereign Supranational & Agencies

(2) Other includes: 0.6bn France, 0.6bn Ireland, 0.4bn Austria, 0.4bn Belgium, 0.3bn Germany, 0.3bn USA, 0.1bn Portugal, 0.1bn Poland in avg FY19 (3) Calculated on nominal value as of Dec.31st, 2019

Commissions and Trading Income

Fees and commissions grew +8.2% y/y. Sustainable growth generating recurring revenues, with Management fees up +11.7% y/y. Revamped Brokerage

(1) Mainly PFAs annual bonus

8 (2) Adj. Trading Income excluding non recurring items: Voluntary Scheme: -3.0mln gross, -2.0mln net (1Q19: -0.4mln gross, -0.3mln net; 2Q19: -4.3mln gross, -2.9mln net; 3Q19: +0.4mln gross, +0.3mln net; 4Q19: +1.4mln gross, +0.9mln net)

Costs Cost efficiency and operating leverage confirmed in our DNA

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

(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 slide 51

Staff expenses and FTE, mln Long Term Incentive Plans, mln

Patent Box Fineco is the first Bank finalizing the agreement

We have finalized the agreement with the Italian Fiscal Authority on the Patent Box for years 2015/2019
Fineco is the first Bank to sign the agreement, which relates to both intellectual properties (our platform internally created and developed) and trademark
Fiscal benefit for the 5 years is estimated at around 22mln (recorded in our 2019 Financial Statement), of which around 5 million related to trademark. The estimated benefit is not going to be distributed.
For 2019, the fiscal benefit related to intellectual properties was estimated in a range between € 3.5 and 4 mln.
The Bank will apply in order to renew the fiscal benefit on intellectual properties for the next 5 years. The renewal of the trademark is excluded due to regulation.
The Patent Box is a tax relief regime for companies generating income through the use of intangible assets. The fiscal benefit for 2015 is determined by excluding from the taxable income the 30% of the income attributable to the use of intangible assets; for 2016 the percentage is equal to 40% and for the remaining years it is equal to 50%.

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

Cost of Risk on commercial loans (2)

Decreasing Cost of Risk thanks to the constant improvement in the quality of the credit which is mainly secured and low risk
We confirm our strategy aims to build a safe lending portfolio, offering these products exclusively to our very well known base of clients, leveraging on a deep internal IT culture, powerful data warehouse system and Big Data analytics
More details on the quality of our portfolio in the following slide, with a deep dive on the main products offered

(1) Current accounts/overdraft Include Lombard loans

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

Lending

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

	Eop, mln		2020 Guidance
s e g a g t r o M	+35.0% +12.5% 1.2 1.0 0.9 Dec.18 Sep.19 Dec.19	 12,193 mortgages granted since December 2016 Yield(1)  Average customer rate: 168bps. FY19 at 76bps  Average Loan to Value 53% and average maturity 19 yrs  Low expected loss (~23 bps)	 yearly new production: ~350-500mln  Expected yield: ~ 70-80 bps
al s n n o a s o r e L P	+5.4% +1.7% 455 463 439 Dec.18 Sep.19 Dec.19	 Average ticket €9.100 and average maturity 4.5 years  FY19 Yield at 405bps  Efficient and real time process, instant approval platform for eligible clients' requests thanks to a deep knowledge of clients.  Low expected loss (~53 bps)	 yearly new production: ~200-250mln (~20mln net)  Expected yield: ~ 380-410 bps
d r s a n b a m o L o L	Other lombard Credit lombard +27.0% +7.7% 1.3 1.2 1.0 0.2 0.2 0.2 1.1 1.0 0.8 Dec.18 Set.19 Dec.19	Lombard(2) o/w Credit :  Attractive pricing: retail clients 100bps and private Eur(3) clients 75bps (on 3M )  Differentiated margins according to the riskiness of the pledged assets  Very low expected loss (~10 bps)	o/w Credit Lombard(2):  Expected growth: ~300-400mln per year  Expected yield: ~75-85bps

(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

with floor at zero 12

Capital Ratios (1)

Best in class capital position and low risk balance sheet

(1) Data as of December 2018 were determined on individual basis

(2) "Starting from 31 December 2019, FinecoBank applied the Standardised Method for determining the regulatory requirement related to operational risk, replacing the Advanced Measurement Method ("AMA") adopted previously."

TFA

Relentless TFA growth thanks to a healthy expansion in net sales. Guided products & Services increased at 71% of total AuM

TFA breakdown

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

Plus services

(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, GP Private, FAM Evolution stand-alone

Net sales breakdown

Solid high quality FY19 net sales growth on the wave of structural trends in place despite a complex environment. Asset mix returning into AuM with more conservative solutions

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

Organic growth

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

of PFAs recruited in the period

Continuously increase of quality and productivity of the network

Clients' profile and focus on Private Banking

Fineco Results

Next steps and developing opportunities

Key messages

Focus on product areas

2020 Guidance

Given current outlook(1) , our assumptions for 2020, excluding revenues and costs related to UK business development, are:

Net interest income: resilient and low risk thanks to the smooth run-off of our bond portfolio, positive effect from volumes (~2-2.5bn expected growth of deposits per year) and lending book (~1bn new production per year), benefit from ECB's tiering, no change in our investment policy with no increase in Fineco risk profile and a more dynamic management of our Treasury
Investing: fees increasing low double digit with margins flat
Brokerage: increasing by ~+15% y/y
Banking: banking fees expected to increase by 10-20 mln
Costs: around 5% yearly growth, slightly above the trend registered in the period between 2014 and 2018, due to temporary overlapping of costs following the internalization of some activities after the exit from UniCredit Group, extraordinary AGM for the Governance, increased number of Board members. Cost/Income continuously declining in the long run
CET1: floor 17%
Leverage Ratio: above 3.5%
Cost of Risk: in the range between 10 and 15 basis points
Net sales: robust, high quality net sales with a better asset mix

Focus for a better quality business going forward

Our goal is to structurally improve the quality of our net sales and client base to:

Increase, better quality recurring revenues: greater contribution from fees and trading profit from all business areas and a lower exposure to NII

Keep Balance sheet growth under control

This is possible thanks to the industrial measures we are undertaking

Strong focus in the conversion of customers' deposits towards AuM

Repositioning the brand to increase the quality of our client base and further accelerate the growth of high-end customers 2

Accelerating the conversion rate of customers' deposits towards AuM Assisted Selling platform to further boost productivity for the Bank and PFAs

New products with fully digital subscription will be offered through our Assisted Selling platform:

Decumulation products (FAM Target): for customers who want to progressively invest in multi-thematic/profile funds
Insurance capital guarantee product: remunerated solution with a more flexible exitwindow vs a traditional insurance product, suitable for customers with short-term horizon
New multi-thematic funds (FAM Megatrends) to catch secular trends
Pension funds will be offered directly to customers in the coming months
Coming soon new FAM solutions for volatile market: protection funds and income strategies

Fineco will take more directly the driving seat in helping PFAs to develop their customers more efficiently by further extracting value from Big Data Analytics:

X-Net: continuous improvements of our PFAs' cyborg advisory platform, that will be further enhanced with tailor-made solutions to solve customers' financial gaps
Co-Working: it will enable our PFAs to share customers (and related fees) with other colleagues and manage more actively a higher number of customers
Fineco X.0: to further improve the effectiveness of our commercial strategy leveraging on our one single database, allowing the Bank to better target customers with direct campaigns and to fully exploit the growth potential of low-touch clients.

NEW GENERATION OF PRODUCTS

NEW SOFTWARE DEVELOPMENT

Delivering on industrial measures:

Strong acceleration in the conversion of customers' deposits into AUM

Focus on quality to improve revenues mix and slow down the growth of our Balance Sheet

Delivering on industrial measures:

Fineco Asset Management gaining commercial momentum

FAM Growth potential

FAM total assets as of Dec31st, 2019 were equal to 13.8 bn, of which 8.4 bn retail

FAM retail class 2019 Net Sales: 1.7bn
FAM Evolution is the best seller product cluster, with net sales structurally towards retail classes
Increasing penetration in Fineco's AuM net sales thanks to FAM ability to create modern and innovative multimanager solutions

Room to increase FAM's penetration on Fineco Asset under Management stock enhancing the Bank's open architecture platform
Coming soon new solutions suitable for volatile market: FAM will deliver new protection funds and income strategies

Delivering on industrial measures Innovation key for our best-in-class Customer Experience

Brand new dashboard for credit and debit cards, which will also be fully digitalized Payments:
- upgrade of mobile payment services
- Fineco Pay peer-to-peer: to send and receive money with no need of IBAN code (both on website and on app)
Renewal of our banking homepage both on the website and on APP with real-time debit/credit data
Simplification of our onboarding process via mobile by sending the PIN codes by real-time

Further enlargement of our multicurrency basket (CZK, DKK, HKD, HUF, NOK, NZD, PLN, SGD), which will be active 24/7

€

⁽¹⁾ Source: Kantar Tri*M Index, December 2019 (2) Source: Reputation Institute, December 2019

Preserving our best price/quality ratio Where we stand after the Smart Repricing

Reasons behind our Smart Repricing

Cost/revenue imbalance of the current account service due to:

further reduction in interest rates which are estimated to remain negative for longer than originally expected
increased contribution for systemic charges

Other evidences

Improve the asset mix and further slow down the growth of our Balance Sheet
Rebalance our revenues mix

An overview on clients reaction

2020 expected current accounts closures due to repricing: 50-60k
Clients closing their current accounts were low value and with few TFAs
Going forward we expect a lower number of new clients but with higher quality

€ 121 avg branch costs € 76 avg online costs ING (Conto Arancio) HelloBank! (Hello! Money) 25 184 Fineco 138 Poste Italiane (BancoPosta Premium) 30 B.Generali (BG Deluxe) 47 152 Credit Agricole (Smart) 56 205 110 CheBanca (Yellow) 60 BPER (Ondemand) 73 B.Mps (Mio Plus) 58 98 Banca Sella (Websella) 59 74 0 161 Banco BPM (YouWelcome NEW) 81 24 BNL (X-Smart) 122 129 Deutsche Bank (Smart New) UBI Banca (Qubì) 146 Webank 141 UniCredit (MyGenius Silver) 173 B.Mediolanum 190 IWBank (IWConto) 93 142 89 252 91 0 Widiba (Conto PLUS) 4 20 Intesa SanPaolo (Xme) Online Branch

Competitive landscape (1)

27 (1) Most convenient current accounts. Source: Figures based on publicly available costs for families with average online operations of the main Italian banks (ICC – Indicatore Complessivo dei Costi). The figures relates to the costs of current accounts reported in brackets.

€

Delivering on industrial measures Improving quality of our clients

Outperforming in Private Banking growth

(1) AIPB (Associazione Italiana Private Banking) figures as of Sept19

(2) "Modelli Misti" include the following players: Allianz Financial Advisors, Banca Euromobiliare, Banca Generali PB, Banca Mediolanum, Banca Patrimoni Sella, CheBanca!, Deutsche Bank, Fideuram ISPB, Fineco

Brokerage: an effective and timely reshape of our offer

In 1H19 our Brokerage business suffered effects coming from the persistently low market volatility and the introduction of ESMA regulation in place starting from July 2018. The business has been completely reshaped.

No.1 Brokerage Platform, multichannel Well-diversified and fully integrated among products… …and geographies  Well advanced in-house know-how, optimizing time-to market and cost efficiency Funds  In-house back-office and customer care. Business Forex / CFD continuity always guaranteed Italy 6% 26%  Order internalization supporting Brokerage 11% Derivatives 15% performance: equity, bonds and forex 61% 12% 65% 3%	 New options allowing customers to exploit volatility also when it is low  Optimization of our systematic internalizer with new products  Repricing of our Forex and 24h brokerage platform  Coming soon: Asian markets, CFD on cryptocurrencies, further enlargement of our multicurrency basket, in depth review of our professional platform	 4Q19 Brokerage best quarter since 2Q18  2019 revenues fully recovered and are flat y/y (+15% 2H19 vs 1H19 and +19% 2H19 vs 2H18)

with low risk light traders Equity	 Robust risk management, mostly intra-day positions	Other markets US Bonds

Fineco UK

Unique positioning in a highly fragmented market, leveraging on our one-stop solution platform
Outstanding Multicurrency offer, also used for trading
Investing platform constantly updated, with M&G Investments and Columbia Threadneedle already live. We also launched Fineco Asset Management funds, giving access to sub-adviced funds of 8 different asset managers through FAM Series
Annual cost of the investing platform: 25 bps
Branch: We notified UK Regulators our intention to open a commercial branch in UK. This has no requirements of capital and no costs attached. It will allow us to offer ISA, SIPP and Faster Payments
In the coming weeks we will start our marketing campaign. The first move will leverage on our best-in-class brokerage offer
We will give more details on our UK plans by the end of 1Q20

Fineco Results

Next steps and developing opportunities

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

Healthy and sustainable growth with a long term horizon

TFA (bn) Revenues (2) (mln) Cost/ Income (2) (%) + p.p. Clients (thd, #) Costs (mln) ⁴⁹ ⁵⁵ ⁹⁶⁴ 1,048 1,118 1,200 ⁴⁵¹ ⁵⁴⁴ ⁵⁴⁴ ⁵⁸⁷ + + ²¹² ²³³ ²²⁶ ²³³ ⁴⁷ ⁴³ ⁴² ⁴⁰ ⁶⁰ ⁶⁷ Net profit (1) (mln) ¹⁵⁵ ¹⁹⁷ ²⁰⁸ ²²⁶ + 39 244 628 1,278 69 254 81 1,358 281 658 250 38 + 11% 3% 7%13%8% -9 2014 2015 2016 2017 2018 2019 CAGR (2014-2019)

Highly scalable operating platform…

…with a diversified revenues mix leading consistent results in every market conditions

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

Total assets: 99% not exposed to volatility

Out of 28.0bn, only 0.3bn of Assets valuated at fair value with limited impacts on Equity reserve

(1) Due from banks includes 0.8bn cash and 0.3 bn compulsory reserves deposited at Bank of Italy as of Dec. 2019

(2) Other refers to tangible and intangible assets, derivatives and other assets
(3) 14.7bn equal to 13.9bn nominal value, o/w Italy 5.0 bn nominal value

(4) Other : US, Austria, Belgium, Germany, Poland, Portugal, United Kingdom; Covered Bonds

Sustainability at the heart of Fineco's business model

Embedding ESG in our Bank's Governance

Our sustainable growth strategy is inspired by principles of the most relevant international organisations, consistent with the achievements of the 17 Sustainable Development Goals (SDGs) of the UN 2030 Agenda.

Materiality Matrix defined, to determine the relevant topics for Fineco and its Stakeholders on which Fineco has based its first Non Financial Statement

Our Standard Ethics Rating(1) at "EE" was confirmed in 2019, ^a grade given to sustainable companies with low reputational risk profile and strong prospects for long-term growth. In 2019 Standard Ethics also assigned us an ESG Award

MSCI has upgraded FinecoBank's rating at "A" from "BBB"

Continuously updating our ESG offer

Around 40% of funds with ^a rating Morningstar equal to "high", "above average" and "average"
FAM Megatrends launched in July ²⁰¹⁹

ESG model portfolios launched within our Advice Platform

Green mortgages for the purchase of real estate with energy rating between ^A and ^B

Green and Social Bonds are included in our covered bonds portfolio

(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.

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

Next steps and developing opportunities

Key messages

Focus on product areas

Revenues by Product Area

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

FY9 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

Managerial Data

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

Brokerage

Revamped Brokerage thanks to review of the offer. Growing market share in Italy and continuous enlargement of product offer

FY19 affected by low volatility. We are further diversifying our offer and continuously enlarging our products offer to wellbalance 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 27.0% in Dec.19(2) , +2.3p.p. vs Dec.18) confirming Fineco as leader in brokerage

Managerial Data

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

(1) Volatility calculated as avg weekly volatility of BUND, BTP, SP, EUROSTOXX, MINIDAX, DAX, FIB, MINIFIB, NASDAQ, DOW weighted on volumes related to futures traded by our clients (2) Assosim 40

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

33.5 36.0 36.8 38.3 40.5

Dec.18 Mar.19 Jun.19 Sep.19 Dec.19

Managerial Data

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

mln	1Q18	2Q18	3Q18	4Q18	FY18	1Q19	2Q19	3Q19	4Q19	FY19
Net interest income	68.9	68.7	69.9	71.1	278.7	70.4	71.4	69.8	69.7	281.3
Net commissions	71.5	74.5	72.7	81.8	300.4	77.4	81.3	84.3	82.3	325.2
Trading profit	14.5	13.1	10.7	5.9	44.3	9.8	8.0	11.6	15.3	44.8
Other expenses/income	0.5	0.1	-0.4	1.7	1.9	0.2	0.3	0.1	2.9	3.6
Total revenues	155.4	156.4	153.0	160.4	625.3	157.7	161.1	165.8	170.2	654.8
Staff expenses	-20.5	-21.0	-23.2	-21.9	-86.6	-21.7	-22.4	-22.5	-23.6	-90.2
Other admin.exp. net of recoveries	-40.8	-37.5	-34.1	-36.3	-148.7	-38.5	-34.4	-29.4	-34.3	-136.6
D&A	-2.3	-2.5	-2.5	-3.1	-10.4	-5.1	-5.4	-5.8	-6.6	-22.9
Operating expenses	-63.6	-61.0	-59.7	-61.4	-245.8	-65.3	-62.3	-57.6	-64.4	-249.6
Gross operating profit	91.8	95.4	93.3	99.1	379.5	92.5	98.8	108.2	105.8	405.2
Provisions	-1.8	-1.9	-15.9	-1.8	-21.4	-1.0	-2.9	-19.8	-3.5	-27.2
LLP	-1.3	0.2	-0.9	-2.3	-4.4	-1.3	1.1	-1.2	-0.6	-2.0
Integration costs	0.0	0.0	0.0	-0.1	-0.1	0.0	0.0	0.0	0.0	0.0
Profit from investments	0.0	5.2	-0.9	-3.2	1.1	-0.7	6.5	0.4	1.1	7.4
Profit before taxes	88.7	98.8	75.6	91.7	354.8	89.5	103.5	87.6	102.8	383.5
Income taxes	-29.7	-32.6	-23.0	-28.2	-113.5	-27.3	-31.7	-26.6	-9.6	-95.1
Net profit for the period	59.0	66.2	52.6	63.5	241.2	62.3	71.8	61.0	93.2	288.4
Net profit adjusted (1)	59.0	66.2	53.6	65.6	244.4	62.6	74.7	60.8	70.7	268.8

Non recurring items (mln, gross)	3Q18	4Q18	FY18	1Q19	2Q19	3Q19	4Q19	FY19
(2) Extraord systemic charges (Trading Profit)	0.0	-3.0	-3.0	-0.4	-4.3	0.4	1.4	-3.0
Integration costs	0.0	-0.1	-0.1	0.0	0.0	0.0	0.0	0.0
Severance	-1.6	0.0	-1.6	0.0	0.0			0.0
Patent Box	0.0	0.0		0.0	0.0	0.0	21.6	21.6
Total	-1.6	-3.1	-4.8	-0.4	-4.3	0.4	23.0	18.6

P&L net of non recurring items

			3Q18	4Q18	FY18	1Q19	2Q19	3Q19	4Q19	FY19
mln	1Q18	2Q18	Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)
Net interest income	68.9	68.7	69.9	71.1	278.7	70.4	71.4	69.8	69.7	281.3
Net commissions	71.5	74.5	72.7	81.8	300.4	77.4	81.3	84.3	82.3	325.2
Trading profit	14.5	13.1	10.7	8.9	47.3	10.3	12.3	11.2	13.9	47.7
Other expenses/income	0.5	0.1	-0.4	1.7	1.9	0.2	0.3	0.1	2.9	3.6
Total revenues	155.4	156.4	153.0	163.5	628.3	158.2	165.4	165.4	168.8	657.8
Staff expenses	-20.5	-21.0	-21.6	-21.9	-85.0	-21.7	-22.4	-22.5	-23.6	-90.2
Other admin.expenses	-40.8	-37.5	-34.1	-36.3	-148.7	-38.5	-34.4	-29.4	-34.3	-136.6
D&A	-2.3	-2.5	-2.5	-3.1	-10.4	-5.1	-5.4	-5.8	-6.6	-22.9
Operating expenses	-63.6	-61.0	-58.1	-61.4	-244.1	-65.3	-62.3	-57.6	-64.4	-249.6
Gross operating profit	91.8	95.4	94.9	102.1	384.2	92.9	103.1	107.8	104.4	408.2
Provisions	-1.8	-1.9	-15.9	-1.8	-21.4	-1.0	-2.9	-19.8	-3.5	-27.2
LLP	-1.3	0.2	-0.9	-2.3	-4.4	-1.3	1.1	-1.2	-0.6	-2.0
Profit from investments	0.0	5.2	-0.9	-3.2	1.1	-0.7	6.5	0.4	1.1	7.4
Profit before taxes	88.7	98.8	77.2	94.8	359.5	90.0	107.8	87.2	101.4	386.4
Income taxes	-29.7	-32.6	-23.5	-29.2	-115.1	-27.4	-33.1	-26.4	-30.7	-117.7
Net profit adjusted (1)	59.0	66.2	53.6	65.6	244.4	62.6	74.7	60.8	70.7	268.8

FY19 P&L FinecoBank and Fineco Asset Management

mln	Fineco Asset Management	FinecoBank Individual	FinecoBank Consolidated
Net interest income	-0.1	281.4	281.3
Dividends	0.0	48.3	0.0
Net commissions	62.5	262.7	325.2
Trading profit	0.2	44.6	44.8
Other expenses/income	2.7	1.0	3.6
Total revenues	65.2	638.0	654.8
Staff expenses	-4.1	-86.1	-90.2
Other admin.exp. net of recoveries	-2.9	-133.8	-136.6
D&A	-0.2	-22.6	-22.9
Operating expenses	-7.2	-242.5	-249.6
Gross operating profit	58.1	395.5	405.2
Provisions	0.0	-27.2	-27.2
LLP	0.0	-2.0	-2.0
Profit on Investments	0.0	7.4	7.4
Profit before taxes	58.1	373.7	383.5
Income taxes	-7.3	-87.8	-95.1
Net profit for the period	50.8	285.9	288.4

Details on Net Interest Income

mln	1Q18	Volumes & Margins	2Q18	Volumes & Margins	3Q18	Volumes & Margins	4Q18	Volumes & Margins	1Q19	Volumes & Margins	2Q19	Volumes & Margins	3Q19	Volumes & Margins	4Q19	Volumes & Margins	FY18	Volumes & Margins	FY19	Volumes & Margins
Financial Investments	56.9	18,449	57.5	18,887	57.1	18,817	57.7	19,133	57.1	19,748	58.0	20,582	55.9	21,714	56.0	22,114	229.2	18,822	227.0	21,040
Net Margin		1.25%		1.22%		1.20%		1.20%		1.17%		1.13%		1.02%		1.01%		1.22%		1.08%
Gross margin	58.6	1.29%	59.8	1.27%	59.3	1.25%	60.1	1.25%	59.7	1.23%	60.4	1.18%	58.5	1.07%	57.7	1.04%	237.8	1.26%	236.3	1.12%
Security Lending	0.2	804	0.2	726	0.2	753	0.4	743	0.6	836	0.4	386	0.0	0	0.3	307	1.1	756	1.4	382
Net Margin		0.11%		0.10%		0.12%		0.24%		0.32%		0.44%		0.00%		0.44%		0.14%		0.37%
Leverage - Long	2.7	182	2.7	181	3.0	196	3.0	150	2.7	129	3.2	153	3.3	157	3.3	154	11.5	178	12.4	148
Net Margin		6.06%		6.03%		6.11%		7.95%		8.45%		8.35%		8.38%		8.38%		6.47%		8.39%
Lending	9.2	1,854	9.5	2,080	9.9	2,316	10.3	2,472	10.5	2,611	10.8	2,754	11.1	2,912	10.9	3,050	38.8	2,180	43.3	2,832
Net Margin		2.01%		1.84%		1.69%		1.65%		1.62%		1.58%		1.51%		1.42%		1.78%		1.53%
o/w Current accounts	2.4	684	2.6	788	2.8	891	3.0	970	2.9	1,040	3.2	1,112	3.2	1,169	3.4	1,241	10.8	833	12.7	1,141
Net Margin		1.43%		1.33%		1.23%		1.21%		1.14%		1.14%		1.10%		1.07%		1.29%		1.11%
o/w Cards	1.2	240	1.2	232	1.2	252	1.2	251	1.2	245	1.2	252	1.2	282	1.2	265	4.8	244	4.9	261
Net Margin		2.00%		2.05%		1.93%		1.97%		2.00%		1.92%		1.74%		1.87%		1.99%		1.88%
o/w Personal loans	4.3	370	4.4	394	4.4	411	4.5	427	4.6	441	4.6	448	4.6	457	4.5	459	17.6	400	18.3	451
Net Margin		4.67%		4.45%		4.29%		4.18%		4.20%		4.09%		3.98%		3.92%		4.39%		4.05%
o/w Mortgages	1.3	560	1.4	666	1.4	763	1.6	824	1.8	886	1.9	942	2.0	1,005	1.8	1,084	5.7	703	7.4	979
Net Margin		0.96%		0.81%		0.75%		0.75%		0.80%		0.82%		0.79%		0.64%		0.81%		0.76%
(1) Other	-0.1		-1.2		-0.3		-0.3		-0.5		-1.0		-0.4		-0.8		-1.9		-2.8
Total	68.9		68.7		69.9		71.1		70.4		71.4		69.8		69.7		278.7		281.3
Gross Margin Cost of Deposits		1.33% -0.03%		1.31% -0.04%		1.29% -0.04%		1.29% -0.04%		1.26% -0.05%		1.25% -0.04%		1.17% -0.04%		1.11% -0.03%		1.30% -0.04%		1.20% -0.04%

Volumes and margins: average of the period Net margin calculated on real interest income and expenses 2019 quarterly figures have been reclassified due to a managerial recast

(1) Other includes mainly marketing costs

UniCredit bonds underwritten

ISIN	Currency	Amount (€ m)	Maturity	Indexation	Spread
1 IT0005010324	Euro	382.5	13-Jan-20	Euribor 1m	2.44%
2 IT0005010365	Euro	382.5	10-Apr-20	Euribor 1m	2.47%
3 IT0005010308	Euro	382.5	9-Jul-20	Euribor 1m	2.49%
4 IT0005010381	Euro	382.5	7-Oct-20	Euribor 1m	2.52%
5 IT0005010332	Euro	382.5	6-Jan-21	Euribor 1m	2.54%
6 IT0005010316	Euro	382.5	6-Apr-21	Euribor 1m	2.56%
7 IT0005010340	Euro	382.5	5-Jul-21	Euribor 1m	2.58%
8 IT0005010225	Euro	382.5	18-Oct-21	Euribor 1m	2.60%
9 IT0005040099	Euro	100.0	24-Jan-22	Euribor 1m	1.46%
10 IT0005057994	Euro	200.0	11-Apr-22	Euribor 1m	1.43%
11 IT0005083743	Euro	300.0	28-Jan-22	Euribor 1m	1.25%
12 IT0005106189	Euro	230.0	20-Apr-20	Euribor 1m	0.90%
13 IT0005114688	Euro	180.0	19-May-22	Euribor 1m	1.19%
14 IT0005120347	Euro	700.0	27-Jun-22	Euribor 1m	1.58%
15 IT0005144065	Euro	450.0	14-Nov-22	Euribor 3m	1.40%
16 IT0005144073	Euro	350.0	15-Nov-21	Euribor 3m	1.29%
17 IT0005158412	Euro	250.0	23-Dec-22	Euribor 3m	1.47%
18 IT0005163180	Euro	600.0	11-Feb-23	Euribor 3m	1.97%
19 IT0005175135	Euro	100.0	24-Mar-23	Euribor 3m	1.58%
20 IT0005217606	Euro	350.0	11-Oct-23	Euribor 3m	1.65%
21 IT0005241317	Euro	622.5	2-Feb-24	Euribor 3m	1.52%
Total	Euro	7,492.5		Euribor 1m	1.94%

Details on Net Commissions

mln	1Q18	2Q18	3Q18	4Q18	1Q19	2Q19	3Q19	4Q19	FY18	FY19
Brokerage	20.6	20.1	15.8	18.2	18.5	18.0	20.0	20.8	74.7	77.3
o/w
Equity	17.5	16.4	13.1	14.9	15.6	14.7	15.9	17.0	61.8	63.2
Bond	0.8	1.2	0.6	0.9	0.9	0.9	1.4	0.7	3.6	3.9
Derivatives	2.5	2.7	2.2	2.9	2.3	2.2	2.7	2.6	10.2	9.7
Other commissions(1)	-0.1	-0.2	-0.1	-0.5	-0.2	0.2	0.0	0.6	-0.9	0.5
Investing	47.1	49.5	52.2	58.0	54.2	57.6	58.3	56.1	206.8	226.2
o/w
Placement fees	2.5	2.4	1.4	1.4	1.1	1.3	1.1	1.8	7.8	5.4
Management fees	50.2	53.9	54.9	57.0	57.1	59.7	61.5	63.0	216.0	241.3
to PFA's: incentives	-4.8	-5.8	-3.1	-0.4	-3.0	-4.3	-3.6	-8.0	-14.1	-18.9
to PFA's: LTI	-0.9	-1.1	-1.0	0.0	-1.0	0.8	-0.7	-0.7	-2.9	-1.6
Banking	3.4	4.7	4.5	5.5	4.5	5.6	5.9	5.3	18.1	21.3
Other	0.3	0.3	0.2	0.2	0.1	0.1	0.1	0.1	0.9	0.4
Total	71.5	74.5	72.7	81.8	77.4	81.3	84.3	82.3	300.4	325.2

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

Revenues breakdown by Product Area

mln	1Q18	2Q18	3Q18	4Q18	1Q19	2Q19	3Q19	4Q19	FY18	FY19
Net interest income	66.1	67.1	67.0	68.0	67.6	68.8	67.0	66.9	268.1	270.3
Net commissions	3.4	4.7	4.5	5.5	4.5	5.6	5.9	5.3	18.1	21.3
Trading profit	0.0	0.1	0.1	0.0	-0.1	-0.1	-0.2	0.2	0.2	-0.2
Other	0.1	0.2	0.1	0.0	0.1	0.1	0.1	0.1	0.4	0.4
Total Banking	69.6	72.0	71.6	73.4	72.1	74.3	72.7	72.5	286.7	291.7

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	47.1	49.5	52.2	58.0	54.2	57.6	58.3	56.1	206.8	226.2
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	1.7	0.0	0.0	0.0	2.7	1.7	2.7
Total Investing	47.1	49.5	52.2	59.7	54.2	57.6	58.3	58.8	208.5	228.9

Net interest income	3.0	3.0	3.3	3.6	3.4	3.7	3.4	3.4	13.0	14.0
Net commissions	20.6	20.1	15.8	18.2	18.5	18.0	20.0	20.8	74.7	77.3
Trading profit	13.8	12.2	8.2	10.6	8.2	9.9	11.5	11.7	44.8	41.3
Other	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Total Brokerage	37.5	35.3	27.3	32.4	30.2	31.6	34.9	35.9	132.5	132.6

Managerial Data

Please note that, starting from December 31st, 2019, "Trading profit" also includes dividends and similar revenues on equity investments held at fair value in the item "Dividend income and similar revenue", previously included in the item "Dividends and other income from equity investments" in the reclassified income statement. 2018 figures were also reclassified.

IFRS 9 P&L impacts

mln	1Q18	2Q18	3Q18	4Q18	1Q19	2Q19	3Q19	4Q19	FY18	FY19
Trading Profit	0.6	0.9	0.9	-3.8	0.8	-3.6	0.6	1.9	-1.4	-0.4
Visa	0.6	0.9	0.9	-0.7	1.2	0.7	0.2	0.4	1.6	2.6
Voluntary Scheme	0.0	0.0	0.0	-3.0	-0.4	-4.3	0.4	1.4	-3.0	-3.0
Loan Loss Provisions	-0.4	2.4	-0.4	-0.6	-1.0	3.1	-0.0	0.0	1.0	2.1
Profit on Investments	0.0	5.3	-0.9	-3.1	-0.7	6.5	0.4	1.1	1.3	7.4
Govies	-0.2	-0.2	-0.1	-0.8	0.2	-0.8	-0.1	1.1	-1.3	0.4
UC Bonds	0.2	5.5	-0.8	-2.3	-0.8	7.3	0.5	-0.0	2.6	7.0
Total impacts from IFRS 9	0.2	8.6	-0.4	-7.5	-0.9	5.9	1.1	3.0	0.8	9.2

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	1Q19	2Q19	3Q19	4Q19	FY18	FY19
Net interest Income					-0.2	-0.2	-0.2	-0.3		-1.0
Other Administrative Expenses	-3.3	-3.2	-3.3	-3.5					-13.3
(1) Leasing Reggio Emilia offices and financial shops	-2.5	-2.5	-2.5	-2.6					-10.0
Leasing Milano headquarter	-0.8	-0.8	-0.8	-0.9					-3.3
Write-down/backs and depreciation					-2.2	-2.3	-2.3	-2.6		-9.5
Leasing Reggio Emilia offices and financial shops					-2.2	-2.3	-2.3	-2.6		-9.5

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 -1.0mln 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	Jun.19	Sep.19	Dec.19
AUM	33,536	34,496	34,930	33,485	35,988	36,819	38,325	40,505
o/w Funds and Sicav	26,666	26,809	26,795	24,853	26,361	26,426	27,477	28,786
o/w Insurance	6,395	7,043	7,355	7,618	8,401	9,002	9,369	10,115
o/w GPM	1	1	1	1	1	26	55	93
o/w AuC + deposits under advisory	475	643	779	1,012	1,225	1,365	1,425	1,512
o/w in Advice	475	477	494	535	572	600	603	598
o/w in Plus	0	166	285	477	653	765	822	914
AUC	13,890	14,366	14,395	13,779	15,187	15,229	15,158	15,324
o/w Equity	8,573	8,736	8,846	8,007	9,137	9,207	9,573	9,841
o/w Bond	5,298	5,613	5,534	5,759	6,037	6,011	5,575	5,448
o/w Other	20	18	15	13	13	12	11	35
Direct Deposits	20,624	20,968	21,536	22,069	22,941	23,844	25,099	25,590
o/w Sight	20,616	20,962	21,532	22,066	22,938	23,842	25,098	25,588
o/w Term	7	6	4	3	2	2	2	1
Total	68,050	69,830	70,861	69,333	74,116	75,892	78,583	81,419

o/w Guided Products & Services	21,425	22,199	22,879	22,370	24,301	25,354	26,697	28,788
o/w TFA Private Banking	26,109	26,992	27,474	25,830	29,041	29,970	31,891	33,437

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

Balance Sheet

mln	Mar.18	Jun.18	Sep.18	Dec.18	1st Jan.19	Mar.19	Jun.19	Sep.19	Dec.19
Due from Banks (1)	3,488	3,224	3,398	3,059	3,059	3,807	1,941	2,033	1,320
Customer Loans	2,318	2,633	2,736	2,955	2,955	3,029	3,409	3,568	3,680
Financial Assets	17,106	17,199	17,678	18,238	18,238	19,012	19,920	21,532	22,313
Tangible and Intangible Assets	112	112	112	115	180	243	242	247	279
Derivatives	0	3	0	8	8	29	49	72	65
Other Assets	211	254	259	357	357	259	274	308	366
Total Assets	23,235	23,425	24,183	24,733	24,797	26,380	25,835	27,760	28,023
Customer Deposits	20,916	21,197	21,827	22,273	22,333	23,311	24,140	25,429	25,920
Due to Banks	960	908	1,000	1,010	1,014	1,605	207	188	155
Derivatives	0	2	0	8	8	32	84	156	95
Funds and other Liabilities	367	445	452	466	466	393	477	698	471
Equity	992	874	904	976	976	1,040	928	1,289	1,382
Total Liabilities and Equity	23,235	23,425	24,183	24,733	24,797	26,380	25,835	27,760	28,023

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).

(1) Due from banks includes: 1.2bn cash deposited at Bank of Italy as of June 2019, 1.2bn cash and 0.2 bn compulsory reserves deposited at Bank of Italy as of Sept. 2019, and 0.8bn cash and 0.3 bn compulsory reserves deposited at Bank of Italy as of Dec. 2019

Main Financial Ratios

	Mar.18	Jun.18	Sep.18	Dec.18	Mar.19	Jun.19	Sep.19	Dec.19
PFA TFA/ PFA (mln) (1)	22.5	23.0	23.4	23.2	25.0	25.6	26.6	27.8
Guided Products / TFA (2)	31%	32%	32%	32%	33%	33%	34%	35%
Cost / income Ratio (3)	41.0%	40.0%	39.3%	38.9%	41.3%	39.4%	37.9%	37.9%
CET 1 Ratio	20.2%	20.7%	20.5%	21.2%	21.0%	17.8%	17.4%	18.1%
Adjusted RoE (4)	35.1%	37.0%	35.2%	35.7%	30.8%	33.6%	27.0%	27.1%
Leverage Ratio (5)	7.15%	6.51%	6.00%	5.55%	5.11%	2.89%	3.85%	3.85%

(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 ratios until Mar.19 are calculated on Individual basis, according to the EC Delegated Act 2015/62 regarding the exclusion of intra-group

High-value deposit base confirms strong resilience over time

Double-digit deposit growth throughout the last 10 years (+10.4% 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

Fineco - a fully independent public company

Strategy and Business model

Fineco exit from the UniCredit Group has no implications on its strategy and business model: Fineco enjoyed limited synergies with UniCredit and, as a fully independent company, continues to focus on maximizing shareholders' value via healthy, sustainable and organic growth

Transitional Arrangements with UniCredit Group

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

Benefits from being a fully independent public company

More liquid stock with more than doubled average volumes

Increased efficiency as we now are more flexible and agile to adapt to a fast changing environment in terms of:

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

Fineco Asset Management in a nutshell

AUM at €14.2bn, of which €8.6bn retail classes (1)

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

Better risk management thanks to the look-through on daily basis on funds' underlying assets

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

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, Intesa 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

Additional Tier 1

First public placement successfully issued with strong demand (9x the offer)

€200 mln AT1 issued in January 2018 €300 mln AT1 issued in July 2019

On January 23rd , 2018 the Bank issued a €200mln perpetual AT1
Coupon fixed at 4.82% for the initial 5.5 years
Private placement, fully subscribed by UniCredit SpA
Semi-annual coupon
Coupon (net of taxes) will impact directly Equity reserves
On July 11th , 2019 Fineco issued a €300mln perpetual AT1 in order to maintain the Leverage Ratio above 3.5% after the exit from the UniCredit Group
Coupon fixed at 5.875% (initial guidance at 6.5%) for the initial 5.5 years
Public placement, with strong demand (9x, €2.7bn), listed in Euronext Dublin
Semi-annual coupon
Coupon (net of taxes) will impact directly Equity reserves
The instrument was assigned a BB- rating by S&P

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FinecoBank — Investor Presentation 2020

4321_ir_2020-02-11_0c31eceb-cfe1-4a4e-8a73-e01ceb14f95b.pdf

FY19 Results

Disclaimer

Fineco Results

Executive Summary

Double digit net profit growth

Strong and safe capital position

Robust commercial activity

Delivering on our industrial measures

Results

Net interest income (1/2)

Net interest income (2/2)

Commissions and Trading Income

Costs Cost efficiency and operating leverage confirmed in our DNA

Staff expenses and FTE, mln Long Term Incentive Plans, mln

Patent Box Fineco is the first Bank finalizing the agreement

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

Cost of Risk on commercial loans (2)

Lending

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

Capital Ratios (1)

Best in class capital position and low risk balance sheet

TFA breakdown

Net sales breakdown

Organic growth

of PFAs recruited in the period

Continuously increase of quality and productivity of the network

Clients' profile and focus on Private Banking

2020 Guidance

Focus for a better quality business going forward

Our goal is to structurally improve the quality of our net sales and client base to:

This is possible thanks to the industrial measures we are undertaking

NEW GENERATION OF PRODUCTS

NEW SOFTWARE DEVELOPMENT

Delivering on industrial measures:

Delivering on industrial measures:

FAM Growth potential

Delivering on industrial measures Innovation key for our best-in-class Customer Experience

Preserving our best price/quality ratio Where we stand after the Smart Repricing

Reasons behind our Smart Repricing

Other evidences

An overview on clients reaction

Competitive landscape (1)

Delivering on industrial measures Improving quality of our clients

Outperforming in Private Banking growth

Brokerage: an effective and timely reshape of our offer

Fineco UK

Fineco Results

3 Pillars: Efficiency, Innovation and Transparency The keys of our strategy, still leading our sustainable growth

We built everything from scratch

We were true pioneers

We believe in a "Quality" One Stop Solution

Healthy and sustainable growth with a long term horizon

…with a diversified revenues mix leading consistent results in every market conditions

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

Total assets: 99% not exposed to volatility

Sustainability at the heart of Fineco's business model

Embedding ESG in our Bank's Governance

Continuously updating our ESG offer

Revenues by Product Area

FY9 weight on total revenues for each product area

Banking

Brokerage

Investing

Annex

P&L net of non recurring items

FY19 P&L FinecoBank and Fineco Asset Management

Details on Net Interest Income

UniCredit bonds underwritten

Details on Net Commissions

Revenues breakdown by Product Area

IFRS 9 P&L impacts

IFRS 16 impacts

Breakdown Total Financial Assets

Balance Sheet

Main Financial Ratios

High-value deposit base confirms strong resilience over time

Fineco - a fully independent public company

FinecoBank Investor Presentation 2020