1H21 Results

An Excellent First Half

Growth in Profitability and Balance Sheet Further Strengthened

Data A Strong Bank for a Digital World

August 4, 2021

ISP Delivered an Excellent First Half with €3bn Net Income…

€3.0bn Net income (+17.8% vs 1H20, +106% excluding Nexi capital gain(1)), the best H1 since 2008

Best-ever Q2 Net income at €1.5bn

Highest-ever Operating income (+1.7% vs 1H20(2)) thanks to the best-ever H1 Commissions (+13.2% vs 1H20(2))

Net interest income growth on a quarterly basis (+2.2% vs 1Q21(3))

~€44bn growth in Customer financial assets in H1 to fuel Wealth Management engine

Strong decrease in Operating costs (-2.3% vs 1H20(2))

Best-ever Operating margin (+5.9% vs 1H20(2))

€1.6bn Gross NPL stock reduction in H1 coupled with the lowest-ever H1 NPL inflow

Lowest NPL stock and NPL ratios since 2007, with Gross NPL ratio at 4.1% and Net NPL ratio at 2.1% (3.1% and 1.6% according to EBA definition)

Excellent performance despite COVID-19 impact and while successfully merging UBI Banca, firmly on track to deliver minimum €4bn Net income for 2021

(1) €1.1bn booked in 2Q20

⁽³⁾ Considering, on the basis of management accounts, the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group

⁽²⁾ Data redetermined - where necessary and material - considering the changes in the scope of consolidation following the inclusion of UBI Banca and, on the basis of management accounts, the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group

... while Allocating More than €300m out of Q2 Pre-tax Profit to Succeed in the Coming Years and Further Strengthen the Sustainability of Results

ISP Is Ready to Succeed in the Future…

Common Equity ratio(1) at 15.7% (14.4% Fully phased-in), well above regulatory requirements even under the EBA stress test adverse scenario, coupled with a strong liquidity position, with LCR and NSFR well above 100% and €323bn in Liquid assets

Over €6bn(2) out of 2020 pre-tax profit and more than €300m from Q2 pre-tax profit allocated to succeed in the coming years and further strengthen the sustainability of our results

The lowest NPL stock and NPL ratios since 2007, with 2018-21 NPL deleveraging target exceeded one year ahead of Plan

Distinctive proactive credit management capabilities (Pulse) coupled with strategic partnerships with leading NPL industrial players (Intrum, Prelios)

High operating efficiency with Cost/Income ratio at 49.2%(3)

Over €1bn yearly synergies from the combination with UBI Banca

Successful evolution towards a "light" distribution model and significant room for further branch reduction

A Wealth Management and Protection company with €1.2 trillion in Customer financial assets, with Commissions and Insurance income representing 52% of Operating income

Strong digital proposition, with ~12.1m multichannel clients (91% of total clients) and ~7.5m clients using our App(4)

Strong commitment to ESG, with a leading position in the main sustainability indexes and rankings, and to being the engine of sustainable and inclusive growth

Awarded "Best Bank in Italy" for the second year in a row in the Euromoney Awards for Excellence 2021

(4) Data referring to Banca dei Territori perimeter

⁽¹⁾ Pro-forma fully loaded Basel 3 (30.6.21 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, DTA related to the combination with UBI Banca, the expected absorption of DTA on losses carried forward and the expected distribution of 1H21 Net income of insurance companies)

⁽²⁾ €2.2bn provisions for future COVID-19 impacts, €2.1bn additional provisions on UBI Banca NPL and Performing loans and €2bn integration charges

Profitability	Minimum €4bn Net income for 2021
Dividend payout	75% total cash payout ratio(1) ▪ (dividends and reserves distribution) for 2020 €3.5bn adjusted Net income(2): €694m(3) ─ cash dividends paid in May 2021 €1.9bn additional cash distribution from reserves to be paid on 20 October 2021(4) ─ , the earliest possible date following the termination of the ECB dividend ban 70% cash dividend payout ratio(1) ▪ for 2021 Net income (€2.1bn already accrued in H1), with €1.4bn to be paid as interim dividend on 24 November 2021(5)
Capital	Maintain a solid capital position with a minimum Common Equity ratio(6) of 13% (12% Fully phased-in)
	The integration with UBI Banca adds significant value by delivering synergies above €1bn per year with no social costs

(3) The maximum distributable amount according to the ECB recommendation dated 15.12.20 on dividend policy in the aftermath of the COVID-19 pandemic
(4) Notice of call of the shareholders' meeting for relevant approval by mid-October 2021 to be issued in due course
(5) Relevant resolution from the Board of Directors to be passed on 3 November 2021 when approving results as at 30.9.21
(6) Pro-forma fully loaded Basel 3 (considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, DTA related to the combination with UBI Banca and the expected absorption of DTA on losses carried forward)

⁽¹⁾ Envisaged in the 2018-21 Business Plan

⁽²⁾ Excluding from 2020 stated Net income the items related to the combination with UBI Banca (effect of PPA – including negative goodwill – and integration charges) and the goodwill impairment related to the Banca dei Territori Division

H1 still Impacted by COVID-19, but Strong GDP Recovery Is Expected in 2021-2022

▪ National Recovery and Resilience Plan(4) providing Italy with more than €200bn in grants and loans, of which ~€25bn in 2021

▪ ISP to provide more than €400bn in medium-long term lending to businesses and households in support of Italy's Recovery and Resilience Plan(4)

(1) Source: ISTAT

⁽²⁾ The projections do not incorporate the national accounts data released by Istat on 30 July 2021. If they were included, all other things being equal, they would raise the GDP growth estimate for 2021 by more than one percentage point compared with the figure reported here (3) Source: Consensus Economics, 12 July 2021

ISP Is Fully Equipped for the Challenges Ahead

1H21: An Excellent First Half

Final Remarks

ISP Delivered the Best H1 Net Income since 2008 with Years of Continuous Growth…

Firmly on track to deliver minimum €4bn Net income for 2021

… while Reducing NPL Stock, Strengthening Capital…

⁽¹⁾ Not including €5.2bn Gross NPL (€1.5bn Net) booked in Discontinued operations as of 30.6.21

(2) Pro-forma fully loaded Basel 3 (30.6.21 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, DTA related to the combination with UBI Banca, the expected absorption of DTA on losses carried forward and the expected distribution of 1H21 Net income of insurance companies)

… and Reinforcing an Already Resilient and Efficient Business Model

(1) Considering, on the basis of management accounts, the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group

(2) Excluding Corporate Centre

ISP Is Now Far Better Equipped than Peers to Tackle the Challenges Ahead

Note: figures may not add up exactly due to rounding

(1) Total illiquid assets include Net NPL stock, Level 2 assets and Level 3 assets
(2) Sample: Barclays, BBVA, BNP Paribas, Credit Suisse, Deutsche Bank, HSBC, Lloyds Banking Group, Nordea, Santander, Société Générale, Standard Chartered, UBS and UniCredit (30.6.21 data); Commerzbank, Crédit Agricole Group and ING Group (31.3.21 data); BBVA, Commerzbank, Crédit Agricole Group, ING Group, Santander and UniCredit (Level 2 and Level 3 assets 31.12.20 data)
(3) Calculated as the difference between the Fully Loaded CET1 Ratio vs requirements SREP + Combined Buffer; only top European banks that have communicated their SREP requirement
(4) Sample: BBVA, BNP Paribas, Deutsche Bank, Nordea, Santander, Société Générale and UniCredit (30.6.21 data); Commerzbank, Crédit Agricole Group and ING Group (31.3.21 data). Source: Investor Presentations, Press Releases, Conference Calls, Financial Statements
(5) Considering, on the basis of management accounts, the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group
(6) Sample: Barclays, BBVA, BNP Paribas, Credit Suisse, Deutsche Bank, HSBC, Lloyds Banking Group, Nordea, Santander, Société Générale, Standard Chartered, UBS and UniCredit (30.6.21 data); Commerzbank, Crédit Agricole S.A. and ING Group (31.3.21 data)

Merger with UBI Banca Successfully Completed, Enabling Additional Value Creation

	Our top performing delivery machine at work…	… enabling additional value creation with synergies above €1bn per year
IT	Merger of UBI Banca into ISP successfully completed with: Migration of 587 UBI Banca branches(1) ▪ to BPER Banca on February 22nd (the largest-ever disposal of banking branches in Italy) Completion of IT integration on April 12th ▪ (one of the most extensive IT migrations in Italy involving ~1,000 branches)	Pre-tax annual synergies € m >1,000 >300 +50-60% ~700 Revenue ~150 synergies
Clients	▪ ~2.4m clients transferred to ISP, of which more than 1m multichannel clients (Internet Banking and App) ▪ ~1.4m clients transferred to BPER Banca	>700 Cost ~550 synergies
People	▪ ~14,500 people onboarded ▪ ~5,250 people supported during the transfer to BPER Banca and to BPPB ▪ New organisational structure implemented	Announced Updated estimates
	Two large-scale migrations performed with all ~1,000 former UBI Banca branches and digital channels up and running	▪ Synergies timeline: >80% in 2023, 100% from 2024 ▪ ~€2bn(2) integration charges fully booked in 4Q20

ISP Is Fully Equipped for the Challenges Ahead

1H21: An Excellent First Half

Final Remarks

1H21: Highlights

◼ Excellent economic performance despite COVID-19 containment measures and while successfully merging UBI Banca:
❑ €3,023m Net income (+17.8% vs 1H20, +106% excluding Nexi capital gain(1)), the best H1 since 2008
❑ Best-ever Q2 Net income at €1,507m (+6.5% vs 2Q20)
❑ Highest-ever Operating income at €10,674m (+1.7% vs 1H20(2)) thanks to the best H1 Commissions ever (+13.2% vs 1H20(2))
❑ Net interest income and Commissions growth on a quarterly basis (+2.2% and +2.5% vs 1Q21(3))
❑ Strong decrease in Operating costs (-2.3% vs 1H20(2)) with Administrative costs down 5.4%
❑ Best-ever Operating margin at €5,419m (+5.9% vs 1H20(2)) and Gross income at €4,313m (+1.6% vs 1H20(2) , +38% excluding Nexi capital gain(1))
❑ Annualised Cost of risk at 43bps(3) (vs 48bps in FY20(2), excluding provisions for future COVID-19 impacts)
❑ Lowest-ever H1 NPL inflow
◼ Best-in-class capital position and balance sheet further strengthened:
❑ Common Equity ratio at 15.7%(4) (14.4% Fully phased-in), well above regulatory requirements even under the EBA stress test adverse scenario
❑ €1.6bn Gross NPL stock reduction in H1 (€1.4bn in Q2)
❑ Lowest NPL stock and NPL ratios since 2007, with Gross NPL ratio at 4.1% and Net NPL ratio at 2.1% (3.1% and 1.6% according to EBA definition)
❑ Best-in-class leverage ratio: 6.9%
❑ Strong liquidity position: LCR and NSFR well above 100%; €323bn in Liquid assets

⁽⁴⁾ Pro-forma fully loaded Basel 3 (30.6.21 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, DTA related to the combination with UBI Banca, the expected absorption of DTA on losses carried forward and the expected distribution of 1H21 Net income of insurance companies)

⁽¹⁾ €1.1bn booked in 2Q20

1H21: Strong Growth in Profitability and Balance Sheet Further Strengthened

Excess capital

Pro-forma Fully Loaded CET1 Ratio Buffer vs requirements SREP + Combined Buffer(4), 30.6.21, bps

(1) Including UBI Banca and considering the disposal of branches sold in 1H21
(2) Not including €5.2bn Gross NPL (€1.5bn Net) booked in Discontinued operations as of 30.6.21

(3) Pro-forma fully loaded Basel 3 (30.6.21 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, DTA related to the combination with UBI Banca, the expected absorption of DTA on losses carried forward and the expected distribution of 1H21 Net income of insurance companies)

(4) Calculated as the difference between the Fully Loaded CET1 Ratio vs requirements SREP + Combined Buffer; only top European banks that have communicated their SREP requirement

(5) Sample: BBVA, BNP Paribas, Deutsche Bank, Nordea, Santander, Société Générale and UniCredit (30.6.21 data); Commerzbank, Crédit Agricole Group and ING Group (31.3.21 data). Source: Investor Presentations, Press Releases, Conference Calls, Financial Statements

Our Excellent Performance Creates Benefits for All Stakeholders

(2) Deriving from Non-performing loans outflow

ISP Successfully Mitigated the COVID-19 Impact

Care for ISP People and Clients ISP People ▪ Remote working enabled for ~79,000 ISP Group People, with "digital coach" to support the switch to smart working and share best practices ▪ Agreements with trade unions for extraordinary measures to support families and childcare and to compensate for COVID-19 work absences in the variable performance bonus(1) calculation ▪ Digital learning enabled for all ISP People in Italy ▪ 6 additional days of paid leave in 2020 for ISP people who worked in the branch network or were unable to work remotely ▪ ~1,700 people hired(2) since January 2020 ▪ "Ascolto e Supporto" project offering mental wellness support to all ISP people ▪ Free insurance policy for adverse vaccination reactions offered to all employees in Italy ISP Clients ▪ ~100% of branches open and fully operational: advisory only by appointment and cash desk service by appointment only in the Italian areas with stricter COVID measures (red zones) ▪ Business continuity ensured by the online branch, Internet Banking, App and ATM/Cash machines (98% active) ▪ Activated remote advisory service, with ~32,000 Relationship Managers ▪ Free extension of ISP health insurance policy coverage to include COVID-19 Continuous support to the real economy and society Lending support €150m (equal to 50%) of the ISP Fund for Impact will be used to reduce the socio-economic distress caused by COVID-19 Voluntary donations €100m to the National Health System through the Civil Protection Department €1m from ISP Charity Fund for COVID-19 scientific research €50bn in credit made available to support companies and professionals during the emergency €10m to support families in financial and social difficulty €350k to Associazione Nazionale Alpini for a field hospital in Bergamo €3.5m through ForFunding to Civil Protection Department €10bn in new credit facilities to boost ~2,500 Italian industrial supplier value chains €80m Programma Rinascimento, including impact loans to micro-enterprises and start-ups for recovery and re-shaping of their business model €600k from Fondazione Intesa Sanpaolo Onlus for vulnerable individuals ~€10bn in loans with a SACE guarantee €109bn suspension of existing mortgage and loan installments for families and companies €29.5bn in loans with a State guarantee (4) (4) (1) Premio Variabile di Risultato (2) Italian perimeter including UBI Banca (3) Suspensions granted until 30.6.21 (flows), including renewals, including UBI Banca considering the disposal of branches sold in H1 (4) As of 30.6.21, including UBI Banca considering the disposal of branches sold in H1 (5) Including UBI Banca and considering the disposal of branches sold in H1 (6) Banca dei Territori perimeter Strong value proposition on digital channels enabled immediate business reaction 1H21(5) vs 1H20 Enhanced digital service(6) Multichannel clients ~12.1m, ~+1.1m App users (4.6/5.0 rating on iOS(8) and 4.5/5.0 on Android(8)) ~7.5m, ~+1.1m # of digital operations ~78.5m, +18% # of digital sales(9) ~1.7m, +94% # of digital payments(10) ~14.4m, +85% Flexible and secure remote work infrastructure(7) Conference call/ video conference (average usage per day) ~459k, +132k Instant messaging (average usage per day) ~490k, +108k €6m from CEO (€1m) and top management for healthcare initiatives, with additional voluntary donations from ISP people and Board of Directors (3) Ranked first, for the second consecutive year, among Italian corporates in the "Cyber Resilience amid a Global Pandemic" AIPSA(12) 97% of staff employees(11) enabled to work from home

(8) As of 30.6.21 (9) Commercial offer sent to the client (website or App) by Relationship manager or online branch, signed electronically by the clients, or self-service purchases

(10) Number of payments with digital wallet (e.g., Apple Pay, Samsung Pay, Google Pay) (11) Governance centre Italian perimeter

(12) Italian Association of Corporate Security Professionals

(7) Italian perimeter

ISP as the Engine of Sustainable and Inclusive Growth…

€76bn in new lending dedicated to the Green Economy, Circular Economy and Green transition as part of the Group's commitment in support of the Italian PNRR
€50bn in credit available to support companies and professionals during the COVID-19 emergency
More than €100m donated to provide COVID-19 relief
€150m (equal to 50%) of the ISP Fund for Impact will be used to reduce socio-economic distress caused by COVID-19

ISP as the engine of the real and social economies…	4Q19	… with a dedicated ESG/Climate Program (ISP4ESG) launched in
	Objectives	▪ Consolidating Group leadership around ESG/Climate topics ▪ Prioritising ESG/Climate themes most relevant for the Group
€76bn in new lending dedicated to the Green Economy,	Governance	▪ Specific sessions of the Executive Committee that meets at least every 3 months to discuss ESG topics ▪ Dedicated ESG Control Room, including 17 Sustainability Managers from all Divisions and Governance areas, coordinated through a central ISP4ESG team, to support the Executive Committee in defining priorities and new initiatives
▪ Circular Economy and Green transition as part of the Group's commitment in support of the Italian PNRR ▪ €50bn in credit available to support companies and professionals during the COVID-19 emergency ▪ More than €100m donated to provide COVID-19 relief ▪ €150m (equal to 50%) of the ISP Fund for Impact will be used to reduce socio-economic distress caused by COVID-19	Initiatives (selected highlights)	▪ Dedicated ESG advisory service and ESG-linked loans to SMEs ▪ ESG specialist coverage and product team supporting IMI C&IB Division Relationship Managers and clients Strong focus on Ethical/ESG funds (€73bn(1) ▪ managed by Eurizon) ▪ Strategic framework and product working group aimed at defining the guidelines for sustainable products for the Group and a credit framework that integrates ESG/Climate metrics in accordance with relevant regulations ▪ Strong focus on ESG training for ISP People and corporate clients (Skills4capital) ▪ In July 2021, ISP reviewed its Coal Policy including a phase out of coal mining by 2025, and introduced a new policy on Unconventional Oil & Gas resources with immediate termination of new loans and phase out by 2030

Link to video: https://group.intesasanpaolo.com/en/editorial-section/Intesa-Sanpaolo-The-driver-of-sustainable-and-inclusive-development

… Delivering Tangible Results for Society

disposal of branches sold in H1 (3) As of 30.6.21, including UBI Banca considering the disposal of branches sold in H1

In 1H21, evaluated over 250 startups Ecobonus: ISP ready to buy tax credits to support families, condominiums (~2,900 since 2018) in 3 acceleration "Decreto Rilancio" which raise the deduction to 110% for expenses related to programmes, with 56 coached startups	and businesses through modular and flexible financial solutions benefitting from the provisions of the energy efficiency and measures to reduce seismic risk
(over 440 since 2018), introducing them to selected investors and ecosystem players (~6,100 and Brescia. 16 hospitals and 3 COVID-19 Emergency Centres to date) in Intensive and Sub-Intensive Care Units	Donated €100m to strengthen the National Health System through the Civil Protection Department across Italy, and in particular in the most affected areas of Bergamo have benefitted from the donation with the creation of 36 new hospital wards and 500 hospital beds mainly
€6bn Circular Economy credit plafond: ~€4.5bn already disbursed (~€2.3bn in 1H21) Bergamo and €5m donated to the Diocese of Brescia	€10m to support families in financial and social difficulty due to the COVID-19 crisis, of which €5m donated to Ricominciamo Insieme project of the Diocese of
Green Bond issued in March 2021 for €1.25bn focused on green mortgages granted for the construction or voluntary donations coming from ISP people and Board purchase of energy efficient properties (energy classification €3.5m donated through ForFunding – A and B); the order book exceeded €3.5bn	€6m in donations coming from the CEO (€1m) and top management's 2019 variable compensation, to strengthen healthcare initiatives, with additional the ISP crowdfunding platform – to support Civil Protection Department COVID initiatives
Three other Green Bonds issued in 2019 and 2017 for a total amount €1m allocated from the ISP Charity Fund to boost COVID-19 scientific research
of €1.75bn (€750m Circular; €500m renewables and energy efficiency and €500m renewable energy sectors by UBI) and direct assistance to vulnerable individuals	€600k intervention by the Fondazione Intesa Sanpaolo Onlus to support entities that have guaranteed primary services
In July 2020, ISP allocated €2bn plafond (~€780m granted since the launch, of which ~€650m in 1H21) for S-Loans dedicated to SMEs to finance projects	€350k donated to ANA(1) to accelerate the construction of a field hospital in Bergamo
aimed at improving their sustainability profile. In April 2021 the product offer was expanded with S-Loan Diversity and in July 2021 with S-Loan Climate Change.	€109bn(2) suspension of existing mortgage and loan installments for families and companies (1st in Italy to launch the initiative before the regulation came into force)
All S-Loans have a reduced interest rate, subject to the annual monitoring of 2 KPIs which must be reported in the borrower's annual report. The new S-Loan Climate Change product, launched to mitigate the impact of climate change is	€50bn in credit made available to support companies and professionals aimed at protecting jobs and managing payments during the emergency
eligible for a 80% green guarantee by SACE	€29.5bn(3) in loans with a State guarantee
Initiatives to reduce child poverty and support people in need well ahead of Business Plan target, delivering since 2018:	€10bn in new credit facilities to boost ~2,500 Italian industrial supplier value chains through enhancement of the Sviluppo Filiere Program
▪ ~19.9 million meals ▪ ~1.2 million dormitory beds	~€10bn(3) in loans with a guarantee from SACE (1st in Italy to sign the collaboration protocol with SACE, providing immediate support to large corporates and SMEs under Liquidity Decree)
▪ ~260,500 medicine prescriptions ▪ ~212,000 articles of clothing	€80m Programma Rinascimento, including impact loans to micro-enterprises and start-ups, for the recovery and to re-shape their business models for the post COVID-19 era, leveraging
ISP's "Giovani e Lavoro" Program underway, in partnership with Generation, aimed at training and introducing 5,000 young people to the Italian labour market:	on growth and innovation projects boosting economic growth and social and territorial cohesion. Launched in Bergamo (€30m, in partnership with the Municipality) and in Florence (€50m, in partnership with CR Firenze Foundation)
~5,000 young people, aged 18-29, applied to the Program in 1H21 (more than 20,000 since 2019) ISP Fund for Impact launched in 4Q18 ~800 students interviewed and ~350 students trained/in training through 14 (~€1.5bn lending capacity). Main initiatives: courses in 1H21 (~4,400 students interviewed and more than 1,800 ▪ "Per Merito", the first line of credit without students trained/in training since 2019) collateral dedicated to university students residing ~1,700 companies involved since the beginning of the Program	Construction at the two building sites of the new Gallerie d'Italia in Turin and Naples is well underway. In Piazza San Carlo in Turin, an avant-garde museum of 9,000 m2 with underground spaces dedicated to photography, and in Via Toledo in Naples a large area of 9,000 m2 for masterpieces (Caravaggio) and numerous cultural activities
in Italy, studying in Italy or abroad; €32m granted ISP is the Main Sponsor of Generation4Universities project, in 1H21 (~€123m since the beginning of 2019) developed by Generation Italy and McKinsey & Company, aimed ▪ MAMMA@WORK: a highly-subsidised loan launched in at facilitating talented senior-year university students to start a July 2020 to balance motherhood and work in their children's successful professional career. The Program, just ended	The "Tiepolo: Venezia, Milano, l'Europa" exhibition at the Milan Gallery was mainly online. All organic and paid digital contents on Gallerie d'Italia and ISP social channels recorded 52.6m views and 1m interactions
early years of life (~€0.5m granted since the launch) in July, involved 69 students from 31 universities and 18 top-tier Italian corporations as potential employers ▪ Support to working mothers in India and people over 50 who have P-Tech initiative, in partnership with IBM, aimed at lost their jobs or have difficulty accessing pension schemes training young professionals in new digital skills:	After the lockdown, two original exhibitions have been open to the public: "Los Angeles (State of Mind)" in Naples and "Painting is back, 80s painting in Italy" in Milan, whose live streaming presentation reached ~800,000 people
▪ "Per Esempio" – dedicated to volunteers of Civil Service, "per Crescere" mentoring activities with 20 ISP "mentors" for 40 dedicated to school age children's parents, "per avere Cura" for families young professionals	As a demonstration of the attention that ISP pays to the world of art and culture, the prestigious
with non-self-sufficient relatives. All 3 initiatives launched in July 2021 (1) Associazione Nazionale Alpini XME StudioStation launched in August 2020: loans to families to support (2) Suspensions granted until 30.6.21 (flows), including renewals, including UBI Banca considering the	"Rosa di Brera 2021" award was given to ISP and its President Emeritus Giovanni Bazoli for his long-term commitment and support to the cultural activities of the important museum

distance learning (~€0.5m granted in 1H21; ~€1.7m granted since launch)

ISP Leads in the Main Sustainability Indexes and Rankings

The only Italian bank listed in the Dow Jones Sustainability Indices and the 2021 Corporate Knights ''Global 100 Most Sustainable Corporations in the World Index''. Ranked first among peers by Bloomberg (ESG Disclosure Score) and MSCI

In 2020 ranking by Institutional Investor, ISP was Europe's Best Bank for overall ESG (only Italian bank among the "Most honoured companies") and in 2021 ISP won Best Italian(1) IR in ESG for a Large Cap company



68	A	AAA	100	17.2
62	A	AAA	99	19.5
61	A	AA	95	21.4
59	A	AA	94	22.1
57	A	AA	93	22.5
56	A	AA	93	23.0
55	A	AA	90	23.1
55	A	AA	88	23.3
54	A	AA	87	23.8
54	B	AA	82	24.8
54	B	AA	70	25.6
54	B	A	67	25.7
54	B	A	62	27.1
54	B	A	62	28.3
53	B	A	60	29.6
47	C	A	57	29.8
46	C	BBB	54	30.0

(1) European raking results expected in September

(D)

(2) ISP peer group

Sources: Bloomberg ESG Disclosure Score (Bloomberg as of 30.6.21), CDP Climate Change Score 2020 (https://www.cdp.net/en/companies/companies-scores); MSCI ESG Score (https://www.msci.com/esg-ratings) Data as of 30.6.21; S&P Global (Bloomberg as of 30.6.21); Sustainalytics score (https://www.sustainalytics.com/ ESG Risk Rating as of 30.6.21)

H1: €3bn Net Income, the Best First Half since 2008

1H21 P&L – considering, on the basis of management accounts, the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group

Note: figures may not add up exactly due to rounding

€ m

(1) Data redetermined - where necessary and material - considering the changes in the scope of consolidation following the inclusion of UBI Banca and, on the basis of management accounts, the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group

(2) Net provisions and net impairment losses on other assets, Other income (expenses), Income (Loss) from discontinued operations

(3) Charges (net of tax) for integration and exit incentives, Effect of purchase price allocation (net of tax), Levies and other charges concerning the banking industry (net of tax), Impairment (net of tax) of goodwill and other intangible assets, Minority interests

Q2: The Best-ever Q2 Net Income

2Q21 P&L – considering, on the basis of management accounts, the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group

Note: figures may not add up exactly due to rounding

(2) Considering, on the basis of management accounts, the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group

(3) Net provisions and net impairment losses on other assets, Other income (expenses), Income (Loss) from discontinued operations

Net Interest Income: Growth on a Quarterly Basis

Quarterly comparison Yearly comparison

Net interest income, 1H21 vs 1H20 € m

Note: figures may not add up exactly due to rounding

(2) €113m benefit from hedging on core deposits in 1H21, of which €59m in 2Q21

Best-ever H1 for Commissions Despite COVID-19 Impact

€1.2 Trillion in Customer Financial Assets, with ~€100bn Increase on a Yearly Basis

Note: figures may not add up exactly due to rounding

(1) Net of duplications between Direct Deposits and Indirect Customer Deposits

(2) Including UBI Banca, considering the disposal of branches sold in 1H21 and the full line-by-line consolidation of the REYL Group and Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21)

Continued Strong Reduction in Operating Costs while Investing for Growth

~4,000 headcount reduction on a yearly basis, of which ~1,900 in H1 (~1,100 in Q2)
~7,200 voluntary exits by 2023 – of which 1,400 exited in H1 – related to the combination with UBI Banca, already agreed with Labour Unions and already fully provisioned (with 3,500 hires by 1H24)
Further branch reduction in light of Mooney and combination with UBI Banca

⁽¹⁾ Data redetermined - where necessary and material - considering the changes in the scope of consolidation following the inclusion of UBI Banca and, on the basis of management accounts, the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group

One of the Best Cost/Income Ratios in Europe

Cost/Income(1)

(1) Sample: Barclays, BBVA, BNP Paribas, Credit Suisse, Deutsche Bank, HSBC, Lloyds Banking Group, Nordea, Santander, Société Générale, Standard Chartered, UBS and UniCredit (30.6.21 data); Commerzbank, Crédit Agricole S.A. and ING Group (31.3.21 data)

€1.6bn Gross NPL Stock Reduction in H1

(1) Excluding €3.2bn Gross NPL (€0.5bn Net) booked in Discontinued operations

(2) Excluding €5.4bn Gross NPL (€2.1bn Net) booked in Discontinued operations

(3) Excluding €3.8bn Gross NPL (€1.1bn Net) booked in Discontinued operations

(4) Excluding €5.2bn Gross NPL (€1.5bn Net) booked in Discontinued operations

Strong Reduction in Loan Loss Provisions and Cost of Risk Coupled with Lowest-ever NPL Inflow

(2) Inflow to NPL (Bad Loans, Unlikely to Pay and Past Due) from performing loans

(3) Inflow to NPL (Bad Loans, Unlikely to Pay and Past Due) from performing loans minus outflow from NPL into performing loans

(4) Including UBI Banca and considering the disposal of branches sold in 1H21

Rock-Solid Capital Base, Well Above Regulatory Requirements

Note: figures may not add up exactly due to rounding

(1) Pro-forma fully loaded Basel 3 (30.6.21 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, DTA related to the combination with UBI Banca, the expected absorption of DTA on losses carried forward and the expected distribution of 1H21 Net income of insurance companies)
(2) Calculated as the difference between the Fully Loaded CET1 Ratio vs requirements SREP + Combined Buffer; only top European banks that have communicated their SREP requirement
(3) Sample: BBVA, BNP Paribas, Deutsche Bank, Nordea, Santander, Société Générale and UniCredit (30.6.21 data); Commerzbank, Crédit Agricole Group and ING Group (31.3.21 data). Source: Investor Presentations, Press Releases, Conference Calls, Financial Statements

Increased Capital Buffer vs Regulatory Requirements

Note: figures may not add up exactly due to rounding

(1) Taking into account the regulatory changes introduced by the ECB on 12.3.20, which require that the Pillar 2 requirement can be respected by partially using equity instruments other than CET1 and contextual revisions of the Countercyclical Capital Buffer by the competent national authorities in the various countries
(2) Calculated as the difference between the Fully Loaded CET1 Ratio vs requirements SREP + Combined Buffer

Best-in-class Excess Capital in Europe

Fully Loaded CET1 Ratio Buffer vs requirements SREP + Combined Buffer(1)(2) bps Fully Loaded CET1 Ratio(2)

, %

Note: figures may not add up exactly due to rounding

(1) Calculated as the difference between the Fully Loaded CET1 ratio vs requirements SREP + Combined Buffer; the Countercyclical Capital Buffer is estimated; only top European banks that have communicated their SREP requirement (2) Sample: BBVA, BNP Paribas, Deutsche Bank, Nordea, Santander, Société Générale and UniCredit (30.6.21 data); Commerzbank, Crédit Agricole Group and ING Group (31.3.21 data). Source: Investor Presentations, Press Releases, Conference Calls, Financial Statements

Best-in-Class Risk Profile in Terms of Financial Illiquid Assets

Fully Loaded CET1(1)/Total illiquid assets(2) %

(1) Fully Loaded CET1. Sample: Barclays, BBVA, BNP Paribas, Credit Suisse, Deutsche Bank, HSBC, Lloyds Banking Group, Nordea, Santander, Société Générale, Standard Chartered, UBS and UniCredit (30.6.21 data); Commerzbank, Crédit Agricole Group and ING Group (31.3.21 data)

(2) Total illiquid assets include Net NPL stock, Level 2 assets and Level 3 assets. Sample: Barclays, BNP Paribas, Credit Suisse, Deutsche Bank, HSBC, Lloyds Banking Group, Nordea, Société Générale, Standard Chartered and UBS (30.6.21 data); BBVA, Santander and UniCredit (Net NPL 30.6.21 data and Level 2 and Level 3 assets 31.12.20 data); Commerzbank, Crédit Agricole Group and ING Group (Net NPL 31.3.21 data and Level 2 and Level 3 assets 31.12.20 data)

(3) Stock of own-account eligible assets (including assets used as collateral and excluding eligible assets received as collateral) and cash and deposits with Central Banks

Capital Position well above Regulatory Requirements even in the EBA Stress Test Adverse Scenario

(1) Pro-forma fully loaded Basel 3 (31.12.20 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, the expected absorption of DTA on losses carried forward and DTA related to the combination with UBI Banca arising from PPA, integration charges, the expected distribution of FY20 Net income of insurance companies and – for 2023 – the disposal to BPER Banca of a portion of branches and related assets and liabilities and the neutralisation of the impact related to the 2018-21 Long-Term Incentive Plan LECOIP 2.0 due to the stress test exercise mechanism)

(2) Fully Loaded CET1 Ratio according to EBA definition

2023 Fully phased-in(1)

ISP Is One of the Winners of the EBA Stress Test

2023 Fully phased-in(1) CET1 Ratio buffer in EBA stress test adverse scenario vs requirements SREP + Combined Buffer bps

⁽²⁾ Sample: BBVA, BNP Paribas, Commerzbank, Crédit Agricole Group, Deutsche Bank, ING Group, Nordea, Santander, Société Générale and UniCredit

⁽³⁾ Pro-forma fully loaded Basel 3 (31.12.20 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, the expected absorption of DTA on losses carried forward and DTA related to the combination with UBI Banca arising from PPA, integration charges, the expected distribution of FY20 Net income of insurance companies and – for 2023 – the disposal to BPER Banca of a portion of branches and related assets and liabilities and the neutralisation of the impact related to the 2018-21 Long-Term Incentive Plan LECOIP 2.0 due to the stress test exercise mechanism)

ISP Business Model Reduces Impact of the Adverse Scenario which Is Based on Very Severe Assumptions for Italy

(1) Fully Loaded CET1 Ratio according to EBA definition

(2) Sample: BBVA, BNP Paribas, Commerzbank, Crédit Agricole Group, Deutsche Bank, ING Group, Nordea, Santander, Société Générale and UniCredit

(3) Restrictions on dividend/incentive schemes/AT1 coupon payments

ISP Is Fully Equipped for the Challenges Ahead

1H21: An Excellent First Half

Final Remarks

ISP Is Fully Equipped to Continue to Succeed in the Future

ISP delivered an excellent H1:

Highest Net income since 2008
Highest-ever Operating income and Commissions
Best-ever Operating margin and Gross income
Strong cost reduction
€1.6bn Gross NPL stock reduction and lowest-ever NPL inflow
Increase in Common Equity Ratio

ISP is fully equipped to succeed in the future:

Best-in-class excess capital, low leverage and strong liquidity
Over €6bn out of 2020 pre-tax profit and more than €300m from Q2 pre-tax profit allocated to further strengthen the future sustainability of our results
Low NPL stock
High operating efficiency (Cost/Income ratio at 49.2%(1)) and strategic flexibility in managing costs
Over €1bn yearly synergies from the combination with UBI Banca
Continue delivering best-in-class profitability with minimum €4bn Net income for 2021
Delivering best-in-class distribution to shareholders with
─ a 75%(2) total cash payout ratio (dividends and reserves distribution) for 2020 €3.5bn adjusted Net income(3):
- €694m(4) cash dividends paid in May 2021
- €1.9bn additional cash distribution from reserves to be paid on 20 October 2021(5), the earliest possible date following the termination of the ECB dividend ban
─ a 70%(2) cash dividend payout ratio for 2021 Net income (€2.1bn already accrued in H1), with €1.4bn to be paid as interim dividend on 24 November 2021(6)
Maintain a solid capital position with a minimum Common Equity ratio(7) of 13% (12% fully phased-in)

▪ Well-diversified and resilient business model

▪ €3.0bn Net income delivered in H1 despite COVID-19 impact and while successfully merging UBI Banca

Rock-solid capital base, well above regulatory requirements even under the EBA stress test adverse scenario
Firmly on track to deliver minimum €4bn Net income for 2021

(2) Envisaged in the 2018-21 Business Plan

(5) Notice of call of the shareholders' meeting for relevant approval by mid-October 2021 to be issued in due course
(6) Relevant resolution from the Board of Directors to be passed on 3 November 2021 when approving results as at 30.9.21

⁽⁷⁾ Pro-forma fully loaded Basel 3 (considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, DTA related to the combination with UBI Banca and the expected absorption of DTA on losses carried forward)

⁽¹⁾ Considering, on the basis of management accounts, the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group

⁽³⁾ Excluding from 2020 stated Net income the items related to the combination with UBI Banca (effect of PPA – including negative goodwill – and integration charges) and the goodwill impairment related to the Banca dei Territori Division

⁽⁴⁾ The maximum distributable amount according to the ECB recommendation dated 15.12.20 on dividend policy in the aftermath of the COVID-19 epidemic

1H21 Results

Detailed Information

Key P&L and Balance Sheet Figures

€ m	1H21(1)		30.6.21
Operating income	10,674	Loans to Customers	463,297
Operating costs	(5,255)	Customer Financial Assets(2)	1,231,370
Cost/Income ratio	49.2%	of which Direct Deposits from Banking Business	531,612
Operating margin	5,419	of which Direct Deposits from Insurance Business and Technical Reserves	204,198
Gross income (loss)	4,313	of which Indirect Customer Deposits	697,912
Net income	3,023	- Assets under Management	459,366
		- Assets under Administration	238,546
		RWA	329,748
		Total Assets	1,057,595

Note: figures may not add up exactly due to rounding

(2) Net of duplications between Direct Deposits and Indirect Customer Deposits

Detailed Consolidated P&L Results

Liquidity, Funding and Capital Base

Asset Quality

Divisional Results and Other Information

1H21 vs 1H20: €3bn Net Income, the Best First Half since 2008 1H20 %

€ m

			1H21
	redetermined(1) [ A ]	stated(2) [ B ]	redetermined(3) [ C ]	[ C ] / [ A ]
Net interest income	4,077	4,013	3,947	(3.2)
Net fee and commission income	4,136	4,777	4,683	13.2
Income from insurance business	896	811	854	(4.7)
Profits on financial assets and liabilities at fair value	1,355	1,140	1,139	(15.9)
Other operating income (expenses)	30	65	51	70.0
Operating income	10,494	10,806	10,674	1.7
Personnel expenses	(3,308)	(3,333)	(3,282)	(0.8)
Other administrative expenses	(1,443)	(1,358)	(1,365)	(5.4)
Adjustments to property, equipment and intangible assets	(628)	(606)	(608)	(3.2)
Operating costs	(5,379)	(5,297)	(5,255)	(2.3)
Operating margin	5,115	5,509	5,419	5.9
Net adjustments to loans	(2,081)	(1,007)	(1,001)	(51.9)
Net provisions and net impairment losses on other assets	(180)	(351)	(354)	96.7
Other income (expenses)	13	191	191	n.m.
Income (Loss) from discontinued operations	1,379	0	58	(95.8)
Gross income (loss)	4,246	4,342	4,313	1.6
Taxes on income	(997)	(921)	(922)	(7.5)
Charges (net of tax) for integration and exit incentives	(37)	(107)	(107)	189.2
Effect of purchase price allocation (net of tax)	(50)	(34)	(34)	(32.0)
Levies and other charges concerning the banking industry (net of tax)	(297)	(292)	(4) (279)	(6.1)
Impairment (net of tax) of goodwill and other intangible assets	0	0	0	n.m.
Minority interests	(299)	35	52	n.m.
Net income	2,566	3,023	3,023	17.8

+38% excluding €1.1bn Nexi capital gain booked in 2Q20

Note: figures may not add up exactly due to rounding

(1) Data redetermined - where necessary and material - considering the changes in the scope of consolidation following the inclusion of UBI Banca and - on the basis of management accounts - the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group

(2) Including the contribution of branches sold in 1H21 and the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni from the effective date of their acquisition and REYL Group from 1.1.21

(3) Considering, on the basis of management accounts, the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group

(4) €403m pre-tax of which charges for the Resolution Fund: €278m pre-tax (€192m net of tax), our commitment for the year fully funded, and additional contribution to the National Resolution Fund: €103m pre-tax (€69m net of tax)

Q2 vs Q1: €1.5bn Net Income, the Best-ever Q2

€ m

	1Q21		2Q21	 %
	redetermined(1) [ A ]	stated(2) [ B ]	redetermined(1) [ C ]	[ C ] / [ A ]
Net interest income	1,952	2,000	1,995	2.2
Net fee and commission income	2,313	2,382	2,370	2.5
Income from insurance business	398	438	456	14.6
Profits on financial assets and liabilities at fair value	795	344	344	(56.7)
Other operating income (expenses)	32	16	19	(40.6)
Operating income	5,490	5,180	5,184	(5.6)
Personnel expenses	(1,627)	(1,657)	(1,655)	1.7
Other administrative expenses	(653)	(708)	(712)	9.0
Adjustments to property, equipment and intangible assets	(307)	(300)	(301)	(2.0)
Operating costs	(2,587)	(2,665)	(2,668)	3.1
Operating margin	2,903	2,515	2,516	(13.3)
Net adjustments to loans	(402)	(599)	(599)	49.0
Net provisions and net impairment losses on other assets	(134)	(218)	(220)	64.2
Other income (expenses)	198	(7)	(7)	n.m.
Income (Loss) from discontinued operations	48	0	10	(79.2)
Gross income (loss)	2,613	1,691	1,700	(34.9)
Taxes on income	(837)	(82)	(85)	(89.8)
Charges (net of tax) for integration and exit incentives	(52)	(55)	(55)	5.8
Effect of purchase price allocation (net of tax)	(16)	(18)	(18)	12.5
Levies and other charges concerning the banking industry (net of tax)	(196)	(83)	(3) (83)	(57.7)
Impairment (net of tax) of goodwill and other intangible assets	0	0	0	n.m.
Minority interests	4	54	48	n.m.
Net income	1,516	1,507	1,507	(0.6)

Note: figures may not add up exactly due to rounding

(2) Including the contribution of branches sold in 1H21 and the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni from the effective date of their acquisition and REYL Group from 1.1.21
(3) €119m pre-tax of which charges for the additional contribution to the National Resolution Fund: €103m pre-tax (€69m net of tax)

Net Interest Income: Quarterly Increase

◼ Increase vs 1Q21 despite the challenging environment and continued all-time low interest rates
◼ 7.9% growth in average Direct deposits from banking business vs 2Q20 (+1.9% vs Q1)
◼ 1.9% growth in average Performing loans to customers vs 2Q20
◼ Increase in the commercial component
◼ 9.8% growth in average Direct deposits from banking business
◼ 3.2% growth in average Performing loans to customers

Net Interest Income: Quarterly Increase

Note: figures may not add up exactly due to rounding

(1) €113m benefit from hedging on core deposits in 1H21, of which €59m in 2Q21

Net Fee and Commission Income: Best-ever H1 and Q2 despite the Challenging Environment

◼ Best Q2 ever
◼ Increase vs Q1 mainly due to growth in commissions from Commercial banking activities (+10.7%; +€63m)
◼ €4.1bn in AuM net inflows in Q2(1)
◼ 1H21, the best-ever H1 despite multiple lockdowns and while successfully merging UBI Banca
◼ Commissions from Commercial banking activities up 5.3% (+€62m)
◼ Commissions from Management, dealing and consultancy activities up 16.5% (+€423m)

Profits on Financial Assets and Liabilities at Fair Value: Excellent Performance

Contributions by Activity

	2Q20 redetermined	1Q21 redetermined	2Q21(1)	1H20 redetermined	1H21(1)
Customers	104	85	72	261	157
Capital markets	(72)	318	97	407	415
Trading and Treasury	263	387	173	713	560
Structured credit products	12	5	2	(26)	7

Note: figures may not add up exactly due to rounding

MIL-BVA327-15051trim.13-90141/LR Operating Costs: Further Significant Yearly Reduction while Investing for Growth

(2) Including UBI Banca and not considering the disposal of branches sold in 1H21

Net Adjustments to Loans: Significant Yearly Reduction Coupled with a Strong Decrease in NPL Stock and Inflows

Detailed Consolidated P&L Results

Liquidity, Funding and Capital Base

Asset Quality

Divisional Results and Other Information

Strong Growth in Customer Financial Assets

Note: figures may not add up exactly due to rounding

(1) Net of duplications between Direct Deposits and Indirect Customer Deposits

considering, on the basis of management accounts, the contribution of branches sold in 1H21)

Funding Mix

Retail funding represents 83% of Direct deposits from banking business

Note: figures may not add up exactly due to rounding

(1) Including Senior non-preferred

(2) Certificates of deposit + Commercial papers

(3) Including Certificates

Strong Funding Capability: Broad Access to International Markets

High Liquidity: LCR and NSFR Well Above Regulatory Requirements

◼ Refinancing operations with the ECB: ~€130bn(4) consisting entirely of TLTRO III, out of a maximum allowance of ~€133bn

◼ Loan to Deposit ratio(5) at 87%

(2) ISP stand-alone

(4) €36bn borrowed in March (settlement date 27.3.21) and €11bn borrowed in June (settlement date 24.6.21)

(5) Loans to Customers/Direct Deposits from Banking Business

⁽¹⁾ Stock of own-account eligible assets (including assets used as collateral and excluding eligible assets received as collateral) and cash & deposits with Central Banks

⁽³⁾ Eligible assets freely available (excluding assets used as collateral and including eligible assets received as collateral) and cash & deposits with Central Banks

Solid Capital Base

◼ 15.7%(3) pro-forma fully loaded Common Equity Tier 1 ratio (14.4% fully phased-in) ◼ 6.9% leverage ratio

⁽³⁾ Pro-forma fully loaded Basel 3 (30.6.21 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, DTA related to the combination with UBI Banca, the expected absorption of DTA on losses carried forward and the expected distribution of 1H21 Net income of insurance companies)

⁽¹⁾ ISP stand-alone

⁽²⁾ Considering the ECB recommendation dated 15.12.20 on dividend policy in the aftermath of the COVID-19 epidemic, the impact from IFRS9 FTA phasing-in (~20bps in 1Q21) and after the deduction of accrued dividends (€2.1bn in 1H21), assumed equal to 70% of the Net income for the period, and coupons accrued on the Additional Tier 1 issues

Detailed Consolidated P&L Results

Liquidity, Funding and Capital Base

Asset Quality

Divisional Results and Other Information

MIL-BVA327-15051trim.13-90141/LR Non-performing Loans: Sizeable and Increased Coverage after Impressive Deleveraging

Cash coverage; %

(1) Bad Loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past Due (Scaduti e sconfinanti)

Non-performing Loans: Lowest-ever H1 Inflows

(1) Bad Loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past Due (Scaduti e sconfinanti)

(2) 2012 figures recalculated to take into consideration the regulatory changes to Past Due classification criteria introduced by the Bank of Italy (90 days since 2012 vs 180 days up until 31.12.11)

(3) Including UBI Banca and considering the disposal of branches sold in 1H21

Non-performing Loans: Strong Decrease in Gross Inflow vs 2Q20

€ m

Note: figures may not add up exactly due to rounding

(1) Bad Loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past Due (Scaduti e sconfinanti)

(2) Including UBI Banca and considering the disposal of branches sold in 1H21

MIL-BVA327-15051trim.13-90141/LR

Non-performing Loans: Strong Decrease in Net Inflow vs 2Q20

€ m

Note: figures may not add up exactly due to rounding

(1) Bad Loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past Due (Scaduti e sconfinanti)

(2) Including UBI Banca and considering the disposal of branches sold in 1H21

MIL-BVA327-15051trim.13-90141/LR

Non-performing Loans: Lowest Stock and Ratios since 2007

x Gross NPL ratio, %				x Net NPL ratio, %
		Gross NPL					Net NPL
€ bn	30.6.20(1)	31.12.20(2)	31.3.21(3)	30.6.21(4)	€ bn	30.6.20(1)	31.12.20(5)	31.3.21(6)	30.6.21(7)
Bad Loans - of which forborne	19.9 3.2	9.6 1.6	9.8 1.8	9.3 1.9	Bad Loans - of which forborne	7.5 1.5	4.0 0.7	4.0 0.8	3.7 0.8
Unlikely to pay - of which forborne	13.4 6.3	10.7 4.2	10.4 4.5	9.4 3.9	Unlikely to pay - of which forborne	8.3 4.2	6.2 2.8	6.1 3.0	5.5 2.7
Past Due - of which forborne	1.3 0.1	0.6 -	0.5 -	0.6 -	Past Due - of which forborne	1.1 0.1	0.5 -	0.4 -	0.5 -
Total	34.6 7.1	20.9 4.4	20.7 4.4	19.3 4.1	Total	16.8 3.6	10.7 2.3	10.5 2.3	9.7 2.1
				3.1% according to EBA definition					1.6% according to EBA definition

Note: figures may not add up exactly due to rounding

(1) Including UBI Banca and considering the disposal of branches sold in 1H21

(2) Not including €5.4bn gross NPL booked in Discontinued operations

(3) Not including €3.8bn gross NPL booked in Discontinued operations

(4) Not including €5.2bn gross NPL booked in Discontinued operations

(5) Not including €2.1bn net NPL booked in Discontinued operations

(6) Not including €1.1bn net NPL booked in Discontinued operations

(7) Not including €1.5bn net NPL booked in Discontinued operations

Loans to Customers: A Well-diversified Portfolio

Breakdown by business area (data as at 30.6.21)

◼ Low risk profile of residential mortgage portfolio

❑ Instalment/available income ratio at 31%
❑ Average Loan-to-Value equal to ~60%
❑ Original average maturity equal to ~24 years
❑ Residual average life equal to ~19 years

Breakdown by economic business sector

	30.6.21
Loans of the Italian banks and companies of the Group
Households	30.2%
Public Administration	4.2%
Financial companies	8.3%
Non-financial companies	44.8%
of which:
SERVICES	4.5%
UTILITIES	4.3%
TRANSPORTATION MEANS	3.6%
CONSTRUCTION AND MATERIALS FOR CONSTR.	3.4%
DISTRIBUTION	3.3%
REAL ESTATE	3.2%
TRANSPORT	2.5%
FOOD AND DRINK	2.4%
FASHION	2.2%
METALS AND METAL PRODUCTS	2.2%
ENERGY AND EXTRACTION	1.9%
AGRICULTURE	1.9%
INFRASTRUCTURE	1.7%
TOURISM	1.6%
CHEMICALS, RUBBER AND PLASTICS	1.4%
MECHANICAL	1.3%
PHARMACEUTICAL	0.8%
FURNITURE AND WHITE GOODS	0.8%
ELECTRICAL COMPONENTS AND EQUIPMENT	0.8%
MEDIA	0.5%
WOOD AND PAPER	0.5%
OTHER CONSUMPTION GOODS	0.2%
Loans of international banks and companies of the Group	10.4%
Non-performing loans	2.1%
TOTAL	100.0%

€42bn expired moratoria with 1.9% default rate

Note: figures may not add up exactly due to rounding (1) €3.5bn according to EBA criteria

Detailed Consolidated P&L Results

Liquidity, Funding and Capital Base

Asset Quality

Divisional Results and Other Information

Divisional Financial Highlights

	Divisions
	Banca dei Territori	IMI Corporate & Investment Banking	International Subsidiary Banks(1)	Private Banking(2)	Asset Management(3)	Insurance(4)	Corporate Centre / (5) Others	Total redetermined(6)
Operating Income (€ m)	4,434	2,456	967	1,192	633	820	172	10,674
Operating Margin (€ m)	1,247	1,810	461	761	528	631	(19)	5,419
Net Income (€ m)	352	1,220	251	631	376	439	(246)	3,023
Cost/Income (%)	71.9	26.3	52.3	36.2	16.6	23.0	n.m.	49.2
RWA (€ bn)	100.0	109.5	33.7	12.0	1.9	0.0	72.7	329.7
Direct Deposits from Banking Business (€ bn)	281.3	88.1	47.7	49.6	0.0	0.0	64.8	531.6
Loans to Customers (€ bn)	252.8	149.6	37.3	12.9	0.4	0.0	10.4	463.3

Note: figures may not add up exactly due to rounding

(1) Excluding the Russian subsidiary Banca Intesa which is included in IMI C&IB

(2) Fideuram, Intesa Sanpaolo Private Banking, Intesa Sanpaolo Private Bank (Suisse) Morval, REYL Group, and Siref Fiduciaria

(3) Eurizon

(4) Assicurazioni Vita (former Aviva Vita), Cargeas Assicurazioni, Fideuram Vita, Intesa Sanpaolo Assicura, Intesa Sanpaolo Life, Intesa Sanpaolo RBM Salute, Intesa Sanpaolo Vita, and Lombarda Vita

(5) Treasury Department, Central Structures and consolidation adjustments

(6) Considering, on the basis of management accounts, the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group

Banca dei Territori: 1H21 vs 1H20

	1H20	1H21	%
	redetermined

Net interest income	2,138	1,976	(7.6)
Net fee and commission income	2,190	2,401	9.6
Income from insurance business	0	0	n.m.
Profits on financial assets and liabilities at fair value	49	50	2.0
Other operating income (expenses)	6	7	16.7
Operating income	4,383	4,434	1.2
Personnel expenses	(1,795)	(1,744)	(2.8)
Other administrative expenses	(1,485)	(1,440)	(3.0)
Adjustments to property, equipment and intangible assets	(3)	(3)	0.0
Operating costs	(3,283)	(3,187)	(2.9)
Operating margin	1,100	1,247	13.4
Net adjustments to loans	(1,613)	(667)	(58.6)
Net provisions and net impairment losses on other assets	(33)	(24)	(27.3)
Other income (expenses)	0	0	n.m.
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	(546)	556	n.m.
Taxes on income	196	(185)	n.m.
Charges (net of tax) for integration and exit incentives	(5)	(16)	220.0
Effect of purchase price allocation (net of tax)	0	(2)	n.m.
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	0	(1)	n.m.
Net income	(355)	352	n.m.

Banca dei Territori: Q2 vs Q1

	1Q21	2Q21	%
	redetermined

Net interest income	987	989	0.2
Net fee and commission income	1,203	1,197	(0.5)
Income from insurance business	0	0	96.9
Profits on financial assets and liabilities at fair value	29	21	(28.0)
Other operating income (expenses)	7	1	(91.3)
Operating income	2,226	2,208	(0.8)
Personnel expenses	(877)	(867)	(1.2)
Other administrative expenses	(715)	(725)	1.4
Adjustments to property, equipment and intangible assets	(2)	(2)	16.2
Operating costs	(1,594)	(1,594)	(0.0)
Operating margin	632	615	(2.7)
Net adjustments to loans	(285)	(381)	33.7
Net provisions and net impairment losses on other assets	(17)	(7)	(58.0)
Other income (expenses)	0	(0)	n.m.
Income (Loss) from discontinued operations	0	(0)	n.m.
Gross income (loss)	330	226	(31.4)
Taxes on income	(108)	(76)	(29.8)
Charges (net of tax) for integration and exit incentives	(2)	(13)	461.4
Effect of purchase price allocation (net of tax)	(2)	(1)	(54.7)
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	(0)	(1)	257.0
Net income	217	135	(37.8)

IMI Corporate & Investment Banking: 1H21 vs 1H20

	1H20 redetermined	1H21	%
Net interest income	958	1,058	10.4
Net fee and commission income	519	576	11.0
Income from insurance business	0	0	n.m.
Profits on financial assets and liabilities at fair value	1,156	821	(29.0)
Other operating income (expenses)	6	1	(83.3)
Operating income	2,639	2,456	(6.9)
Personnel expenses	(222)	(233)	5.0
Other administrative expenses	(413)	(402)	(2.7)
Adjustments to property, equipment and intangible assets	(12)	(11)	(8.3)
Operating costs	(647)	(646)	(0.2)
Operating margin	1,992	1,810	(9.1)
Net adjustments to loans	(265)	(54)	(79.6)
Net provisions and net impairment losses on other assets	2	2	0.0
Other income (expenses)	0	0	n.m.
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	1,729	1,758	1.7
Taxes on income	(573)	(548)	(4.4)
Charges (net of tax) for integration and exit incentives	(5)	(10)	100.0
Effect of purchase price allocation (net of tax)	0	20	n.m.
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	0	0	n.m.
Net income	1,151	1,220	6.0

IMI Corporate & Investment Banking: Q2 vs Q1

	1Q21	2Q21	%
	redetermined

Net interest income	539	519	(3.6)
Net fee and commission income	281	294	4.7
Income from insurance business	0	0	n.m.
Profits on financial assets and liabilities at fair value	567	254	(55.3)
Other operating income (expenses)	1	(0)	n.m.
Operating income	1,389	1,067	(23.2)
Personnel expenses	(109)	(124)	13.6
Other administrative expenses	(197)	(206)	4.6
Adjustments to property, equipment and intangible assets	(5)	(6)	14.0
Operating costs	(311)	(335)	7.9
Operating margin	1,078	732	(32.1)
Net adjustments to loans	(66)	12	n.m.
Net provisions and net impairment losses on other assets	(3)	5	n.m.
Other income (expenses)	0	0	n.m.
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	1,009	749	(25.8)
Taxes on income	(318)	(230)	(27.6)
Charges (net of tax) for integration and exit incentives	(5)	(5)	17.1
Effect of purchase price allocation (net of tax)	20	0	(100.0)
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	0	0	n.m.
Net income	707	514	(27.3)

International Subsidiary Banks: 1H21 vs 1H20

€ m

	1H20	1H21	%
	redetermined

Net interest income	652	649	(0.5)
Net fee and commission income	239	263	10.0
Income from insurance business	0	0	n.m.
Profits on financial assets and liabilities at fair value	63	73	15.9
Other operating income (expenses)	(16)	(18)	12.5
Operating income	938	967	3.1
Personnel expenses	(261)	(264)	1.1
Other administrative expenses	(190)	(186)	(2.1)
Adjustments to property, equipment and intangible assets	(54)	(56)	3.7
Operating costs	(505)	(506)	0.2
Operating margin	433	461	6.5
Net adjustments to loans	(125)	(78)	(37.6)
Net provisions and net impairment losses on other assets	0	(16)	n.m.
Other income (expenses)	6	4	(33.3)
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	314	371	18.2
Taxes on income	(67)	(84)	25.4
Charges (net of tax) for integration and exit incentives	(18)	(19)	5.6
Effect of purchase price allocation (net of tax)	0	0	n.m.
Levies and other charges concerning the banking industry (net of tax)	(44)	(17)	(61.4)
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	0	0	n.m.
Net income	185	251	35.7

Note: figures may not add up exactly due to rounding. Excluding the Russian subsidiary Banca Intesa which is included in IMI C&IB

International Subsidiary Banks: Q2 vs Q1

	1Q21	2Q21	%
	redetermined
Net interest income	323	326	0.8
Net fee and commission income	122	141	16.1
Income from insurance business	0	0	n.m.
Profits on financial assets and liabilities at fair value	30	43	40.3
Other operating income (expenses)	(7)	(11)	(54.5)
Operating income	468	499	6.5
Personnel expenses	(130)	(134)	3.5
Other administrative expenses	(93)	(93)	0.2
Adjustments to property, equipment and intangible assets	(28)	(29)	2.0
Operating costs	(250)	(256)	2.1
Operating margin	218	243	11.5
Net adjustments to loans	(47)	(31)	(35.4)
Net provisions and net impairment losses on other assets	(6)	(9)	45.9
Other income (expenses)	2	2	31.5
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	166	205	23.7
Taxes on income	(44)	(40)	(7.9)
Charges (net of tax) for integration and exit incentives	(9)	(10)	3.6
Effect of purchase price allocation (net of tax)	0	0	n.m.
Levies and other charges concerning the banking industry (net of tax)	(9)	(8)	(5.3)
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	0	(0)	n.m.
Net income	104	147	41.1

Private Banking: 1H21 vs 1H20

	1H20	1H21	%
	redetermined

Net interest income	129	106	(17.8)
Net fee and commission income	943	1,040	10.3
Income from insurance business	0	0	n.m.
Profits on financial assets and liabilities at fair value	21	32	52.4
Other operating income (expenses)	2	14	600.0
Operating income	1,095	1,192	8.9
Personnel expenses	(225)	(226)	0.4
Other administrative expenses	(163)	(170)	4.3
Adjustments to property, equipment and intangible assets	(34)	(35)	2.9
Operating costs	(422)	(431)	2.1
Operating margin	673	761	13.1
Net adjustments to loans	(21)	1	n.m.
Net provisions and net impairment losses on other assets	(23)	(17)	(26.1)
Other income (expenses)	12	194	n.m.
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	641	939	46.5
Taxes on income	(197)	(287)	45.7
Charges (net of tax) for integration and exit incentives	(8)	(10)	25.0
Effect of purchase price allocation (net of tax)	(1)	(11)	n.m.
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	(2)	0	n.m.
Net income	433	631	45.7

Private Banking: Q2 vs Q1

. .	٠ v

v ٠ -

	1Q21	2Q21	%
	redetermined
Net interest income	52	53	2.1
Net fee and commission income	522	518	(0.7)
Income from insurance business	0	0	n.m.
Profits on financial assets and liabilities at fair value	20	12	(38.0)
Other operating income (expenses)	7	7	(7.1)
Operating income	601	591	(1.7)
Personnel expenses	(110)	(116)
Other administrative expenses	(79)	(91)	16.3
Adjustments to property, equipment and intangible assets	(18)	(17)	(5.0)
Operating costs	(207)	(224)	8.6
Operating margin	395	366	(7.2)
Net adjustments to loans	(0)	1	n.m.
Net provisions and net impairment losses on other assets	(7)	(9)	30.6
Other income (expenses)	194	0	(100.0)
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	582	358	(38.5)
Taxes on income	(181)	(106)	(41.3)
Charges (net of tax) for integration and exit incentives	(4)	(6)	38.1
Effect of purchase price allocation (net of tax)	(0)	(11)	n.m.
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	(1)	2	n.m.
Net income	395	237	(40.0)

Asset Management: 1H21 vs 1H20

	1H20	1H21	%
	redetermined
Net interest income	0	0	n.m.

Net fee and commission income	448	595	32.8
Income from insurance business	0	0	n.m.
Profits on financial assets and liabilities at fair value	(4)	(2)	(50.0)
Other operating income (expenses)	16	40	150.0
Operating income	460	633	37.6
Personnel expenses	(44)	(50)	13.6
Other administrative expenses	(54)	(51)	(5.6)
Adjustments to property, equipment and intangible assets	(4)	(4)	0.0
Operating costs	(102)	(105)	2.9
Operating margin	358	528	47.5
Net adjustments to loans	0	0	n.m.
Net provisions and net impairment losses on other assets	0	0	n.m.
Other income (expenses)	0	0	n.m.
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	358	528	47.5
Taxes on income	(94)	(141)	50.0
Charges (net of tax) for integration and exit incentives	0	(1)	n.m.
Effect of purchase price allocation (net of tax)	0	0	n.m.
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	(21)	(10)	(52.4)
Net income	243	376	54.7

Asset Management: Q2 vs Q1

	1Q21	2Q21	%
	redetermined

Net interest income	(0)	(0)	16.6
Net fee and commission income	286	310	8.4
Income from insurance business	0	0	n.m.
Profits on financial assets and liabilities at fair value	(1)	(1)	58.1
Other operating income (expenses)	17	23	41.4
Operating income	301	332	10.5
Personnel expenses	(23)	(27)	15.2
Other administrative expenses	(26)	(26)	0.7
Adjustments to property, equipment and intangible assets	(2)	(2)	1.4
Operating costs	(51)	(55)	7.4
Operating margin	250	278	11.2
Net adjustments to loans	0	(0)	n.m.
Net provisions and net impairment losses on other assets	(0)	0	n.m.
Other income (expenses)	0	0	n.m.
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	250	278	11.4
Taxes on income	(68)	(73)	8.3
Charges (net of tax) for integration and exit incentives	(0)	(1)	477.0
Effect of purchase price allocation (net of tax)	0	0	n.m.
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	(10)	(0)	(97.5)
Net income	172	204	18.4

Insurance: 1H21 vs 1H20

	1H20	1H21	%
	redetermined

Net interest income	0	0	n.m.
Net fee and commission income	(1)	1	n.m.
Income from insurance business	837	825	(1.4)
Profits on financial assets and liabilities at fair value	0	0	n.m.
Other operating income (expenses)	(1)	(6)	500.0
Operating income	835	820	(1.8)
Personnel expenses	(67)	(71)	6.0
Other administrative expenses	(105)	(108)	2.9
Adjustments to property, equipment and intangible assets	(10)	(10)	0.0
Operating costs	(182)	(189)	3.8
Operating margin	653	631	(3.4)
Net adjustments to loans	0	0	n.m.
Net provisions and net impairment losses on other assets	(19)	(132)	594.7
Other income (expenses)	0	0	n.m.
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	634	499	(21.3)
Taxes on income	(178)	(110)	(38.2)
Charges (net of tax) for integration and exit incentives	(8)	(7)	(12.5)
Effect of purchase price allocation (net of tax)	(8)	(12)	50.0
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	(106)	69	n.m.
Net income	334	439	31.4

Insurance: Q2 vs Q1

	1Q21	2Q21	%
	redetermined
Net interest income	(0)	(0)	12.5
Net fee and commission income	0	0
Income from insurance business	386	439	13.6
Profits on financial assets and liabilities at fair value	0	0	n.m.
Other operating income (expenses)	(3)	(2)	29.7
Operating income	383	437	14.0
Personnel expenses	(34)	(38)	10.6
Other administrative expenses	(48)	(59)	22.2
Adjustments to property, equipment and intangible assets	(5)	(5)	12.7
Operating costs	(87)	(102)	17.2
Operating margin	296	335	13.0
Net adjustments to loans	0	0	n.m.
Net provisions and net impairment losses on other assets	(3)	(128)	n.m.
Other income (expenses)	0	0	n.m.
Income (Loss) from discontinued operations	0	0	n.m.
Gross income (loss)	293	207	(29.4)
Taxes on income	(80)	(30)	(62.5)
Charges (net of tax) for integration and exit incentives	(1)	(6)	433.9
Effect of purchase price allocation (net of tax)	(5)	(7)	45.3
Levies and other charges concerning the banking industry (net of tax)	0	0	n.m.
Impairment (net of tax) of goodwill and other intangible assets	0	0	n.m.
Minority interests	18	51	180.4
Net income	225	214	(4.7)

Quarterly P&L

	1Q20	2Q20	3Q20	4Q20	1Q21	2Q21
			redetermined(1)
Net interest income	2,040	2,037	2,129	2,072	1,952	1,995
Net fee and commission income	2,122	2,014	2,147	2,442	2,313	2,370
Income from insurance business	440	456	353	436	398	456
Profits on financial assets and liabilities at fair value	1,049	306	127	193	795	344
Other operating income (expenses)	1	29	1	6	32	19
Operating income	5,652	4,842	4,757	5,149	5,490	5,184
Personnel expenses	(1,646)	(1,662)	(1,646)	(1,744)	(1,627)	(1,655)
Other administrative expenses	(696)	(747)	(744)	(898)	(653)	(712)
Adjustments to property, equipment and intangible assets	(314)	(314)	(313)	(315)	(307)	(301)
Operating costs	(2,656)	(2,723)	(2,703)	(2,957)	(2,587)	(2,668)
Operating margin	2,996	2,119	2,054	2,192	2,903	2,516
Net adjustments to loans	(538)	(1,543)	(972)	(1,440)	(402)	(599)
Net provisions and net impairment losses on other assets	(431)	251	(64)	(121)	(134)	(220)
Other income (expenses)	13	0	22	62	198	(7)
Income (Loss) from discontinued operations	149	1,230	80	129	48	10
Gross income (loss)	2,189	2,057	1,120	822	2,613	1,700
Taxes on income	(635)	(362)	(322)	(191)	(837)	(85)
Charges (net of tax) for integration and exit incentives	(15)	(22)	(27)	(1,485)	(52)	(55)
Effect of purchase price allocation (net of tax)	(26)	(24)	3,237	(1,227)	(16)	(18)
Levies and other charges concerning the banking industry (net of tax)	(206)	(91)	(178)	(38)	(196)	(83)
Impairment (net of tax) of goodwill and other intangible assets	0	0	0	(912)	0	0
Minority interests	(156)	(143)	(20)	(68)	4	48
Net income	1,151	1,415	3,810	(3,099)	1,516	1,507

€546m and €393m respectively when excluding the accounting effect of the combination with UBI Banca and of the impairment of goodwill

Note: figures may not add up exactly due to rounding

(1) Data redetermined - where necessary and material - considering the changes in the scope of consolidation following the inclusion of UBI Banca and - on the basis of management accounts - the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita(former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group

Net Fee and Commission Income: Quarterly Development Breakdown

€ m

Net Fee and Commission Income
	1Q20	2Q20	3Q20	4Q20	1Q21	2Q21
				redetermined(1)
Guarantees given / received	51	48	47	50	47	55
Collection and payment services	124	113	115	140	137	139
Current accounts	352	353	360	366	344	352
Credit and debit cards	65	73	85	89	61	106
Commercial banking activities	592	587	607	645	589	652
Dealing and placement of securities	199	168	193	229	295	288
Currency dealing	1	1	2	2	3	3
Portfolio management	663	649	687	844	733	781
Distribution of insurance products	388	365	396	418	406	383
Other	73	60	67	68	53	45
Management, dealing and consultancy activities	1,324	1,243	1,345	1,561	1,490	1,500
Other net fee and commission income	206	184	195	236	234	218
Net fee and commission income	2,122	2,014	2,147	2,442	2,313	2,370

Note: figures may not add up exactly due to rounding

Market Leadership in Italy

Note: figures may not add up exactly due to rounding

(1) Excluding Corporate Centre
(2) Data as at 30.6.21
(3) Including bonds
(4) Data as at 31.3.21
(5) Mutual funds; data as at 31.3.21

International Subsidiary Banks: Key P&L Data by Country

Gross Income

International Subsidiary Banks by Country: 8% of the Group's Total Loans

International Subsidiary Banks by Country: 8% of the Group's Total Loans
Data as at 30.6.21
											Total		Total
	Hungary	Slovakia	Slovenia	Croatia	Bosnia	Serbia	Albania	Romania	Moldova	Ukraine	CEE	Egypt
Oper. Income (€ m)	9 6	225	3 3	209	2 3	133	2 0	1 9	5	7	771	182	953
% of Group total	0.9%	2.1%	0.3%	2.0%	0.2%	1.2%	0.2%	0.2%	0.0%	0.1%	7.2%	1.7%	8.9%
Net income (€ m)	1 5	6 1	7	6 9	6	5 0	6	(7)	1	(3)	206	6 4	270
% of Group total	0.5%	2.0%	0.2%	2.3%	0.2%	1.6%	0.2%	n.m.	0.0%	n.m.	6.8%	2.1%	8.9%
Customer Deposits (€ bn)	4.8	16.8	2.7	10.1	0.8	4.9	1.3	0.9	0.2	0.2	42.6	4.8	47.4
% of Group total	0.9%	3.2%	0.5%	1.9%	0.2%	0.9%	0.3%	0.2%	0.0%	0.0%	8.0%	0.9%	8.9%
Customer Loans (€ bn)	3.5	15.7	1.9	7.3	0.8	3.9	0.4	0.9	0.1	0.1	34.6	2.7	37.3
% of Group total	0.7%	3.4%	0.4%	1.6%	0.2%	0.8%	0.1%	0.2%	0.0%	0.0%	7.5%	0.6%	8.1%
Total Assets (€ bn)	6.8	20.5	3.4	13.0	1.2	6.5	1.6	1.4	0.2	0.2	54.9	6.0	60.8
% of Group total	0.6%	1.9%	0.3%	1.2%	0.1%	0.6%	0.1%	0.1%	0.0%	0.0%	5.2%	0.6%	5.8%
Book value (€ m) - intangibles	728 31	1,733 127	320 6	1,835 24	172 2	978 39	194 4	174 4	3 2 2	5 7 3	6,223 241	627 8	6,851 249

Note: figures may not add up exactly due to rounding. Excluding the Russian subsidiary Banca Intesa which is included in IMI C&IB

International Subsidiary Banks by Country: Loan Breakdown and Coverage

Data as at 30.6.21

											Total		Total
	Hungary	Slovakia	Slovenia	Croatia	Bosnia	Serbia	Albania	Romania	Moldova	Ukraine	CEE	Egypt
Performing loans (€ bn) of which:	3.4	15.6	1.9	7.1	0.8	3.8	0.4	0.9	0.1	0.1	34.0	2.6	36.7
Retail local currency	48%	61%	42%	32%	33%	24%	22%	13%	57%	35%	46%	58%	47%
Retail foreign currency	0%	0%	0%	20%	14%	29%	14%	15%	0%	1%	8%	0%	8%
Corporate local currency	25%	33%	57%	24%	14%	6%	14%	46%	15%	40%	29%	29%	29%
Corporate foreign currency	27%	5%	0%	25%	39%	42%	50%	26%	28%	25%	17%	13%	17%
Bad loans(1) (€ m)	10	97	2	59	5	19	4	8	0	0	204	0	204
Unlikely to pay(2) (€ m)	57	67	18	165	9	26	4	23	1	0	370	64	434
Performing loans coverage	1.5%	0.6%	1.1%	1.8%	2.1%	1.7%	1.5%	2.1%	2.6%	1.1%	1.2%	1.5%	1.2%
Bad loans(1) coverage	58%	65%	87%	68%	72%	71%	56%	53%	68%	n.m.	67%	100%	68%
Unlikely to pay(2) coverage	43%	45%	49%	34%	36%	49%	43%	43%	59%	n.m.	40%	46%	41%
Annualised cost of credit(3) (bps)	34	29	12	53	82	37	71	236	n.m.	n.m.	41	52	42

Note: figures may not add up exactly due to rounding. Excluding the Russian subsidiary Banca Intesa which is included in IMI C&IB

(1) Sofferenze

(2) Including Past due

(3) Net adjustments to loans/Net customer loans

MIL-BVA327-15051trim.13-90141/LR Common Equity Tier 1 Ratio as at 30.6.21: from Phased-in to Pro-forma Fully Loaded

E-MARKET SDIR
CERTIFIED

	~€ bn	~bps
Direct-deduction relevant items
DTA on losses carried forward(1) IFRS9 transitional adjustment	1.9 (1.5)	58 (45)
Total	0.3	13
Cap relevant items(*)(2)
Total	0.0	23
(*) as a memo, constituents of deductions subject to cap:
- Other DTA(3)	1.6
- Investments in banking and financial companies	2.9
RWA from 100% weighted DTA(4)	(9.4)	44
Total estimated impact		81
Pro-forma fully loaded Common Equity Tier 1 ratio		15.7%

Note: figures may not add up exactly due to rounding

⁽¹⁾ Considering the expected absorption of DTA on losses carried forward (€2.1bn as at 30.6.21)

⁽²⁾ Following the application of the Danish Compromise, insurance investments are risk weighted instead of being deducted from capital. In the amount of insurance investments, the expected distribution of 1H21 Net income of insurance companies is considered, which for the sake of simplicity is left included in the benefit allocated to this caption

⁽³⁾ Other DTA: mostly related to provisions for risks and charges, considering the total absorption of DTA related to IFSR9 FTA (€1.2bn as at 30.06.21) and DTA related to the non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of operations of the two former Venetian banks (€0.2bn as at 30.06.21) and DTA related to the acquisition of UBI Banca (€0.7bn as at 30.06.21). DTA related to goodwill realignment and adjustments to loans are excluded due to their treatment as credits to tax authorities

⁽⁴⁾ Considering the total absorption of DTA convertible into tax credit related to goodwill realignment (€6.2bn as at 30.6.21) and adjustments to loans (€3.2bn as at 30.6.21)

Total Exposure(1) by Main Countries

€ m

	DEBT SECURITIES
			Banking Business
	AC	FVTOCI	FVTPL(2)	Total	Insurance Business(3)	Total	LOANS
EU Countries	36,486	45,507	8,952	90,945	83,861	174,806	429,588
Austria	157	175	-149	183	415	598	728
Belgium	836	3,009	255	4,100	728	4,828	1,071
Bulgaria	0	0	-1	-1	95	94	28
Croatia	72	1,026	171	1,269	239	1,508	7,368
Cyprus	0	0	0	0	100	100	32
Czech Republic	99	0	0	99	32	131	811
Denmark	33	20	10	63	77	140	54
Estonia	0	0	0	0	2	2	6
Finland	15	82	94	191	174	365	258
France	3,048	5,139	-476	7,711	5,050	12,761	11,961
Germany	1,307	2,288	-648	2,947	2,887	5,834	7,484
Greece	25	0	72	97	6	103	275
Hungary	398	839	11	1,248	57	1,305	3,139
Ireland	502	1,251	492	2,245	168	2,413	508
Italy	24,799	17,915	10,733	53,447	66,093	119,540	364,364
Latvia	0	0	3	3	21	24	33
Lithuania	0	0	0	0	0	0	1
Luxembourg	131	603	195	929	159	1,088	7,055
Malta	0	0	0	0	0	0	122
The Netherlands	233	897	73	1,203	1,410	2,613	1,893
Poland	50	167	0	217	62	279	1,130
Portugal	203	1,086	-268	1,021	728	1,749	153
Romania	66	350	8	424	437	861	1,042
Slovakia	0	406	15	421	47	468	13,829
Slovenia	1	232	-16	217	63	280	1,849
Spain	4,487	9,803	-1,623	12,667	4,654	17,321	4,197
Sweden	24	219	1	244	157	401	197
Albania	190	384	1	575	0	575	418
Egypt	0	1,733	1	1,734	84	1,818	3,227
Japan	55	2,366	140	2,561	278	2,839	635
Russia	0	117	16	133	66	199	5,438
Serbia	2	706	6	714	0	714	4,140
United Kingdom	555	531	35	1,121	2,043	3,164	16,485
U.S.A.	2,270	5,340	263	7,873	3,368	11,241	7,111
Other Countries	1,447	6,242	211	7,900	3,714	11,614	25,260
Total	41,005	62,926	9,625	113,556	93,414	206,970	# 492,302

Note: management accounts. Figures may not add up exactly due to rounding

(1) Exposure to sovereign risks (central and local governments), banks and other customers. Book Value of Debt Securities and Net Loans as at 30.6.21

(2) Taking into account cash short positions

(3) Excluding securities in which money is collected through insurance policies where the total risk is retained by the insured

Exposure to Sovereign Risks(1) by Main Countries

€ m

	DEBT SECURITIES
			Banking Business		Insurance		FVTOCI/AFS	LOANS
	AC		FVTOCI FVTPL(2)	Total	Business(3)	Total	Reserve (4)
EU Countries	24,303	37,214	6,257	67,774	72,741	140,515	343	11,942
Austria	0	76	-153	-77	286	209	-1	0
Belgium	790	1,989	-12	2,767	512	3,279	-30	0
Bulgaria	0	0	-4	-4	63	59	0	0
Croatia	11	1,026	171	1,208	229	1,437	3	1,236
Cyprus	0	0	0	0	100	100	0	0
Czech Republic	0	0	0	0	0	0	0	0
Denmark	0	0	0	0	0	0	0	0
Estonia	0	0	0	0	0	0	0	0
Finland	0	13	94	107	44	151	-12	0
France	2,544	3,717	-483	5,778	2,110	7,888	-54	4
Germany	513	1,481	-668	1,326	1,570	2,896	1	0
Greece	0	0	72	72	6	78	0	0
Hungary	217	813	11	1,041	43	1,084	10	112
Ireland	145	345	6	496	124	620	0	0

Italy	15,836	15,862	9,152	40,850	62,801	103,651	419	10,130
Latvia	0	0	3	3	21	24	0	29
Lithuania	0	0	0	0	0	0	0	0
Luxembourg	0	146	0	146	0	146	-1	0
Malta	0	0	0	0	0	0	0	0
The Netherlands	52	241	-36	257	350	607	0	0
Poland	50	69	0	119	26	145	-1	0
Portugal	84	1,069	-297	856	656	1,512	12	0
Romania	66	350	8	424	414	838	0	6
Slovakia	0	378	15	393	0	393	3	204
Slovenia	1	224	-16	209	63	272	1	174
Spain	3,994	9,391	-1,606	11,779	3,323	15,102	-7	47
Sweden	0	24	0	24	0	24	0	0
Albania	190	384	1	575	0	575	4	1
Egypt	0	1,733	1	1,734	84	1,818	18	369
Japan	0	2,103	137	2,240	0	2,240	9	0
Russia	0	101	16	117	0	117	-1	0
Serbia	2	706	6	714	0	714	6	77
United Kingdom	0	136	-3	133	106	239	-4	0
U.S.A.	1,297	4,186	168	5,651	6	5,657	-130	0
Other Countries	1,171	3,958	174	5,303	1,387	6,690	-44	5,082
Total	26,963	50,521	6,757	84,241	74,324	158,565	201	# 17,471

Banking Business Government bond duration: 6.5y Adjusted duration due to hedging: 0.4y

Note: management accounts. Figures may not add up exactly due to rounding

(1) Exposure to central and local governments. Book Value of Debt Securities and Net Loans as at 30.6.21

(2) Taking into account cash short positions

(3) Excluding securities in which money is collected through insurance policies where the total risk is retained by the insured

(4) Net of tax and allocation to insurance products under separate management

MIL-BVA327-15051trim.13-90141/LR

Exposure to Banks by Main Countries(1)

€ m

	DEBT SECURITIES
			Banking Business
	AC	FVTOCI	FVTPL(2)	Total	Insurance Business(3)	Total	LOANS
EU Countries	1,986	4,749	959	7,694	4,311	12,005	24,233
Austria	139	44	4	187	97	284	354
Belgium	11	1,011	265	1,287	74	1,361	421
Bulgaria	0	0	0	0	0	0	0
Croatia	44	0	0	44	0	44	101
Cyprus	0	0	0	0	0	0	0
Czech Republic	0	0	0	0	0	0	15
Denmark	20	8	10	38	54	92	42
Estonia	0	0	0	0	0	0	0
Finland	9	22	0	31	66	97	52
France	245	762	-18	989	1,389	2,378	10,009
Germany	75	490	17	582	344	926	5,965
Greece	0	0	0	0	0	0	56
Hungary	129	26	0	155	12	167	42
Ireland	0	28	0	28	0	28	254
Italy	960	1,139	551	2,650	1,431	4,081	4,964
Latvia	0	0	0	0	0	0	0
Lithuania	0	0	0	0	0	0	0
Luxembourg	0	314	188	502	10	512	783
Malta	0	0	0	0	0	0	62
The Netherlands	100	302	3	405	354	759	208
Poland	0	89	0	89	0	89	12
Portugal	0	17	1	18	0	18	1
Romania	0	0	0	0	0	0	67
Slovakia	0	28	0	28	0	28	0
Slovenia	0	8	0	8	0	8	4
Spain	236	320	-63	493	462	955	816
Sweden	18	141	1	160	18	178	5
Albania	0	0	0	0	0	0	10
Egypt	0	0	0	0	0	0	56
Japan	28	100	0	128	64	192	97
Russia	0	0	0	0	0	0	80
Serbia	0	0	0	0	0	0	66
United Kingdom	155	211	13	379	599	978	4,605
U.S.A.	291	503	26	820	1,721	2,541	884
Other Countries	74	1,843	16	1,933	631	2,564	5,988
Total	2,534	7,406	1,014	10,954	7,326	18,280	# 36,019

Note: management accounts. Figures may not add up exactly due to rounding

(1) Book Value of Debt Securities and Net Loans as at 30.6.21

(2) Taking into account cash short positions

(3) Excluding securities in which money is collected through insurance policies where the total risk is retained by the insured

Exposure to Other Customers by Main Countries(1)

€ m

		DEBT SECURITIES
			Banking Business		Insurance		LOANS
	AC	FVTOCI	FVTPL(2)	Total	Business(3)	Total
EU Countries	10,197	3,544	1,736	15,477	6,809	22,286	393,413
Austria	18	55	0	73	32	105	374
Belgium	35	9	2	46	142	188	650
Bulgaria	0	0	3	3	32	35	28
Croatia	17	0	0	17	10	27	6,031
Cyprus	0	0	0	0	0	0	32
Czech Republic	99	0	0	99	32	131	796
Denmark	13	12	0	25	23	48	12
Estonia	0	0	0	0	2	2	6
Finland	6	47	0	53	64	117	206
France	259	660	25	944	1,551	2,495	1,948
Germany	719	317	3	1,039	973	2,012	1,519
Greece	25	0	0	25	0	25	219
Hungary	52	0	0	52	2	54	2,985
Ireland	357	878	486	1,721	44	1,765	254
Italy	8,003	914	1,030	9,947	1,861	11,808	349,270
Latvia	0	0	0	0	0	0	4
Lithuania	0	0	0	0	0	0	1
Luxembourg	131	143	7	281	149	430	6,272
Malta	0	0	0	0	0	0	60
The Netherlands	81	354	106	541	706	1,247	1,685
Poland	0	9	0	9	36	45	1,118
Portugal	119	0	28	147	72	219	152
Romania	0	0	0	0	23	23	969
Slovakia	0	0	0	0	47	47	13,625
Slovenia	0	0	0	0	0	0	1,671
Spain	257	92	46	395	869	1,264	3,334
Sweden	6	54	0	60	139	199	192
Albania	0	0	0	0	0	0	407
Egypt	0	0	0	0	0	0	2,802
Japan	27	163	3	193	214	407	538
Russia	0	16	0	16	66	82	5,358
Serbia	0	0	0	0	0	0	3,997
United Kingdom	400	184	25	609	1,338	1,947	11,880
U.S.A.	682	651	69	1,402	1,641	3,043	6,227
Other Countries	202	441	21	664	1,696	2,360	14,190
Total	11,508	4,999	1,854	18,361	11,764	30,125	# 438,812

Note: management accounts. Figures may not add up exactly due to rounding

(1) Book Value of Debt Securities and Net Loans as at 30.6.21

(2) Taking into account cash short positions

(3) Excluding securities in which money is collected through insurance policies where the total risk is retained by the insured

Disclaimer

"The manager responsible for preparing the company's financial reports, Fabrizio Dabbene, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corresponds to the document results, books and accounting records".

* * *

This presentation includes certain forward looking statements, projections, objectives and estimates reflecting the current views of the management of the Company with respect to future events. Forward looking statements, projections, objectives, estimates and forecasts are generally identifiable by the use of the words "may," "will," "should," "plan," "expect," "anticipate," "estimate," "believe," "intend," "project," "goal" or "target" or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts, including, without limitation, those regarding the Company's future financial position and results of operations, strategy, plans, objectives, goals and targets and future developments in the markets where the Company participates or is seeking to participate.

Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements as a prediction of actual results. The Group's ability to achieve its projected objectives or results is dependent on many factors which are outside management's control. Actual results may differ materially from (and be more negative than) those projected or implied in the forward-looking statements. Such forward-looking information involves risks and uncertainties that could significantly affect expected results and is based on certain key assumptions.

All forward-looking statements included herein are based on information available to the Company as of the date hereof. The Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law. All subsequent written and oral forwardlooking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.

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Intesa Sanpaolo

4465_ip_2021-08-04_c495260f-0630-44d3-8332-4a71682544b4.pdf

1H21 Results

An Excellent First Half

Data A Strong Bank for a Digital World

ISP Delivered an Excellent First Half with €3bn Net Income…

ISP Is Ready to Succeed in the Future…

H1 still Impacted by COVID-19, but Strong GDP Recovery Is Expected in 2021-2022

ISP Is Fully Equipped for the Challenges Ahead

ISP Delivered the Best H1 Net Income since 2008 with Years of Continuous Growth…

… while Reducing NPL Stock, Strengthening Capital…

… and Reinforcing an Already Resilient and Efficient Business Model

ISP Is Now Far Better Equipped than Peers to Tackle the Challenges Ahead

Merger with UBI Banca Successfully Completed, Enabling Additional Value Creation

ISP Is Fully Equipped for the Challenges Ahead

1H21: Highlights

1H21: Strong Growth in Profitability and Balance Sheet Further Strengthened

Excess capital

Our Excellent Performance Creates Benefits for All Stakeholders

ISP Successfully Mitigated the COVID-19 Impact

ISP as the Engine of Sustainable and Inclusive Growth…

… Delivering Tangible Results for Society

ISP Leads in the Main Sustainability Indexes and Rankings

H1: €3bn Net Income, the Best First Half since 2008

Q2: The Best-ever Q2 Net Income

Net Interest Income: Growth on a Quarterly Basis

Quarterly comparison Yearly comparison

Best-ever H1 for Commissions Despite COVID-19 Impact

€1.2 Trillion in Customer Financial Assets, with ~€100bn Increase on a Yearly Basis

Continued Strong Reduction in Operating Costs while Investing for Growth

One of the Best Cost/Income Ratios in Europe

€1.6bn Gross NPL Stock Reduction in H1

Strong Reduction in Loan Loss Provisions and Cost of Risk Coupled with Lowest-ever NPL Inflow

Rock-Solid Capital Base, Well Above Regulatory Requirements

Increased Capital Buffer vs Regulatory Requirements

Best-in-class Excess Capital in Europe

Best-in-Class Risk Profile in Terms of Financial Illiquid Assets

Capital Position well above Regulatory Requirements even in the EBA Stress Test Adverse Scenario

ISP Is One of the Winners of the EBA Stress Test

ISP Business Model Reduces Impact of the Adverse Scenario which Is Based on Very Severe Assumptions for Italy

ISP Is Fully Equipped for the Challenges Ahead

Final Remarks

ISP Is Fully Equipped to Continue to Succeed in the Future

1H21 Results

Detailed Information

Key P&L and Balance Sheet Figures

1H21 vs 1H20: €3bn Net Income, the Best First Half since 2008 1H20 %

Q2 vs Q1: €1.5bn Net Income, the Best-ever Q2

Net Interest Income: Quarterly Increase

Net Interest Income: Quarterly Increase

Net Fee and Commission Income: Best-ever H1 and Q2 despite the Challenging Environment

Profits on Financial Assets and Liabilities at Fair Value: Excellent Performance

Contributions by Activity

MIL-BVA327-15051trim.13-90141/LR Operating Costs: Further Significant Yearly Reduction while Investing for Growth

Net Adjustments to Loans: Significant Yearly Reduction Coupled with a Strong Decrease in NPL Stock and Inflows

Strong Growth in Customer Financial Assets

Funding Mix

Retail funding represents 83% of Direct deposits from banking business

Strong Funding Capability: Broad Access to International Markets

High Liquidity: LCR and NSFR Well Above Regulatory Requirements

Solid Capital Base

MIL-BVA327-15051trim.13-90141/LR Non-performing Loans: Sizeable and Increased Coverage after Impressive Deleveraging

Non-performing Loans: Lowest-ever H1 Inflows

Non-performing Loans: Strong Decrease in Gross Inflow vs 2Q20

Non-performing Loans: Strong Decrease in Net Inflow vs 2Q20

Non-performing Loans: Lowest Stock and Ratios since 2007

Loans to Customers: A Well-diversified Portfolio

Breakdown by business area (data as at 30.6.21)

◼ Low risk profile of residential mortgage portfolio

Breakdown by economic business sector

€42bn expired moratoria with 1.9% default rate

Divisional Financial Highlights

Banca dei Territori: 1H21 vs 1H20

Banca dei Territori: Q2 vs Q1

IMI Corporate & Investment Banking: 1H21 vs 1H20

IMI Corporate & Investment Banking: Q2 vs Q1

International Subsidiary Banks: 1H21 vs 1H20

International Subsidiary Banks: Q2 vs Q1

Private Banking: 1H21 vs 1H20