4Q24 Results

Alessandro Foti CEO and General Manager

FINECO. SIMPLIFYING BANKING.

Milan, February 6 th 2025

Disclaimer

◼ "Pursuant to the paragraph 2 of Article 154 bis of the Consolidated Law on Financial Intermediation (Legislative Decree no. 58 of February 24, 1998), Erick Vecchi, in his capacity as manager responsible for the preparation of FinecoBank S.p.A. (the "Bank")'s financial reports, declares that accounting information contained in this Presentation reflects the Bank's documented results, books and accounting records".
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Agenda

✓Fineco Financial Results

❑ Fineco Commercial Results

❑ Next steps

Executive Summary: further acceleration in our expected growth

Successful growth story: our diversified business model allows us to deliver strong results in every market condition

Strong net profit and operating leverage

◼ 2024 Net Profit is 652.3 mln, +7.1% y/y

◼ 2024 Revenues at 1,316.5 mln, +6.4% y/y supported by all our product area: Net Financial Income (+3.4% y/y, o/w NII +3.3%), Investing (+11.7% y/y) and Brokerage (+13.0% y/y)
◼ Operating Costs well under control at -332.0 mln, +11.3% y/y (+6.1% y/y excluding costs related to the acceleration of the growth of the business(1) ). Strong operating leverage confirmed a key strength of the Bank. C/I ratio at 25.2%

Higher y/y AUM and deposits exp. in 2025 as growth is accelerating

◼ Higher y/y AUM and deposits net sales expected in 2025 thanks to combined effect of reinforcing positive tailwinds from the structural trends coupled with a more efficient marketing activity. We are clearly experiencing this step-up:
- ➢ Strong acceleration in new clients' acquisition (+27.8% y/y in FY24), reaching 2 nd record year in a row. January: 18,781 new clients (+32% y/y), by far best month ever
- ➢ Net sales in FY24 at 10.1 bn, o/w AUM at 4.1 bn. TFA at 140.8 bn with AuM at 66.4 bn. January recorded a further acceleration of total net sales, up by a strong +53% y/y at 887 mln o/w AUM at 221 mln (vs 79 mln in Jan.24) due to usual monthly seasonality (FAM retail net sales at 216 mln); AUC at 1.178 bn and deposits at -512 mln with brokerage clients very active buying govies on the dips after the strong increase in yields, leading to very strong Brokerage revenues, estimated at ~21 mln (+26% y/y)

Solid capital and liquidity position

◼ CET1 ratio at 25.9%, TCR at 35.8%, Leverage ratio at 5.22%
◼ LCR at 909%(2) , NSFR at 382%
◼ 2024 Dividend proposal: € 0.74 per share (+7% y/y)

2025 Guidance

◼ Investing revenues expected to increase low double digit in FY25 vs FY24
◼ Banking fees expected with a slight decrease in FY25 due to new regulation on instant payments
◼ Brokerage: revenues expected to remain strong with a continuously growing floor thanks to the enlargement of our active investors
◼ Operating costs expected in FY25 at around +6% y/y, not including few millions of additional costs for growth initiatives in a range 5/10 mln (mainly: marketing, FAM and AI)
◼ Payout: for FY25 we expect a payout ratio in a range 70/80%

Delivering strong Net Profit in every market condition

Net Profit at 652.3 mln. Results supported by sound acceleration of Investing and Brokerage, confirming the effectiveness of our initiatives, and Net Financial Income. Strong operating leverage confirmed

mln	FY23	FY24	FY24/ FY23
Net financial income	688 0	711 2	3 4%
o/w Net interest income	687 7	710 5	3 3%
o/w Profit from treasury	0 2	0 7	240 7%
Net commissions	489 9	527 0	7 6%
profit Trading	60 4	79 0	30 9%
Other expenses/income	-0 6	-0 8	37 3%
Total revenues	1237 6	5 1316	6 4%
Staff expenses	-126 9	-137 8	8 6%
Other admin .expenses	-144 3	-168 4	16 7%
D&A	-27 1	-25 8	-5 0%
Operating expenses	-298 3	-332 0	11 3%
Gross operating profit	939 3	984 5	4 8%
Provisions	-63 6	-44 9	-29 4%
LLP	-3 6	-2 1	-41 9%
Profit from investments	0 1	1 8	n.s.
Profit before taxes	872 2	939 3	7 7%
Income taxes	-263 1	-287 0	9 1%
profit Net	609 1	652 3	7 1%
(1) ROE	28%	27%
Cost/Income	24%	25%

(1) ROE is calculated as adj.net profit divided by EOP book equity for the period (excl. valuation reserves)

(2) Excluding costs strictly related to the growth of the business, mainly FAM (-2.4 mln y/y) and marketing (-13.0 mln y/y)

Revenues

➢ Solid growth in Net Financial Income (+3.4% y/y, with NII at +3.3% y/y) mainly thanks to our capital light NII (71% ex. lending) driven by our clients' valuable transactional liquidity and not by lending (not affected by additional costs and provisions due to NPL)
➢ Net commissions up by +7.6% y/y driven by Investing (+12.0% y/y) and Brokerage (+9.6% y/y)
➢ Trading profit +30.9% y/y mainly thanks to higher brokerage activity

Costs

The yearly increase is mainly linked to costs related to the growth of the business, related to:

FAM as it is increasing the efficiency of the value chain
Marketing expenses

Net of these items, FY24(2): +6.1% y/y

Net profit

+7.1% y/y

Our priority: accelerating on Investing

Growing AUM thanks to our best-in-class market positioning, coupled with higher efficiency on the value chain through FAM

Increasing Investing revenues thanks to FAM

mln	4Q23	3Q24	4Q24	FY23	FY24
Investing	88 5	93 9	98 8	329 1	367 5
o/w Placement fees	0 9	1 4	1 7	3 4	6 3
Management fees	99 4	108 2	113 3	393 1	431 3
PFA's: incentives to	-8 3	-7 5	-9 3	-34 3	-32 5
PFA's: LTI to	-0 6	-0 4	-0 6	-2 6	-1 9
Other PFA costs	-7 0	-7 4	-8 5	-34 0	-37 0
Other commissions	4 2	0 0	3 4	4 2	3 4
Other income	-0 2	-0 4	-1 1	-0 8	-2 0

NO PERFORMANCE FEES

Combining growth potential from FAM and emerging advisory trend

FAM key to sustain AUM margins thanks to more efficient value chain, Fineco best placed to catch clients demand for efficient and fair solutions

FAM consistently contributing to FBK net sales, with strong room to grow as a % of our Investing

Fineco best placed to catch the fast growing, clients-driven trend of advanced financial advisory

Brokerage: higher floor as the structure of the market is changing

Increased interest in financial markets by clients and big jump into a more digitalized society

Active investors: less than 20 trades per month; Traders: more than 20 trades per month

Brokerage: new initiatives building a potential to be unlocked

Superior price/quality offer, new initiatives and new market trends are the key drivers of our strong brokerage performance

➢ Resilient executed orders despite poor market environment for brokerage, thanks to the increase of the client base
➢ Wider client base will act as a multiplier for revenues as soon as the market environment improves

High quality lending

Offered exclusively to the existing base of clients, leveraging on our internal Big Data analytics

Cost of Risk on commercial loans (2)

◼ Cost of Risk well under control 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
◼ NPE at 27.4 mln with a coverage ratio at 85.3%, NPE ratio at 0.52%
◼ LLP equal to -2.1 mln in FY24

Solvency, liquidity ratios

Capital position well above requirements

emarket sdir scorage
CERTIFIED

		Dec 23	Sept 24	Dec 24	Current Requirement
Y C	CET1 Ratio	24 34%	27 29%	25 91%	8 51%
N E V L O	Capital Ratio Total	34 91%	37 96%	35 78%	12 88%
S	Leverage Ratio	4 95%	5 35%	5 22%	3 00%
(1) LCR Y	823%	897%	909%	100%
T DI UI Q	NSFR	378%	369%	382%	100%
LI	HQLA/Deposits (1)	68%	75%	77%

(€/bn)	Dec.23	Sept.24	Dec.24
CET1 Capital	1.15	1.28	1.31
Tier1 Capital	1.65	1.78	1.81
Total Capital	1.65	1.78	1.81
RWA	4.73	4.69	5.06
o/w credit	3.07	3.03	3.07
o/w market	0.05	0.05	0.10
o/w operational	1.61	1.61	1.89
HQLA (1)	19.46	20.83	21.55

❑ Fineco Financial Results

❑ Next steps

❑ Key messages

Clients' profile and focus on Private Banking

Outperforming the system in Private Banking growth

TFA and Net Sales evolution

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

Net sales organically driven key in our strategy of growth

The structure of recruiting is changing: more interest in the quality of the business model by PFAs

Agenda

❑ Fineco Financial Results