Banca Monte dei Paschi di Siena : Board approves results as at 30 june 2018

Positive trend of main economic indicators, already highlighted in 1Q18, continues:

net interest income increases by 6.4% Q/Q thanks to increased volumes and higher profits from securities, fees and commissions essentially stable (-0.9% Q/Q)

operating costs up by 1.5% Q/Q; cutbacks expected in 2019 thanks to personnel exits to be carried out by means of the solidarity fund

Loans to customers[1] up by EUR 1.4 billion thanks to increase in new mortgages; current accounts and time deposits increased by EUR 4.1 billion from the end of December 2017

NPE reduction continues, following the completion of the EUR 24.1 billion securitisation process according to the Restructuring Plan timeline:

ongoing sale of leasing and small-ticket bad loans for a maximum of EUR 3.7 billion (vs. the 2018 Restructuring Plan target of EUR 2.6 billion), with expected closure by the year-end

UTPs already reduced by EUR 0.9 billion and further EUR 0.8 billion already on the market, vs. a 2018 target of EUR 1.5 billion

Improvement of all the main asset quality indicators confirmed:

cost of risk for 1H18 at 56 basis points (61 basis points in 1Q18)

NPE coverage at 56% (bad loans coverage at 69%)

default rate at 1.6% and danger rate at 13.5% (annualised half-yearly data)

Transitional Common Equity Tier 1: 13.0%, equal to c. EUR 8.4 billion, slightly below vs. the previous quarter for the widened BTP-Bund spread. Total Capital ratio 14.4%

Texas ratio[2] at c. 100%

[1] Current accounts, mortgages and other forms of lending.

[2] Gross non-performing exposures / (tangible shareholders' equity + loan loss provisions)

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