1Q20 Results

Alessandro Foti, CEO and General Manager

Milan, May 11th2020

Disclaimer

  • This Presentation may contain written and oral"forward-looking statements", which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of FinecoBank S.p.A. (the "Company"). There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in this Presentation are provided as at the date hereof and are subject to change without notice. Neither this Presentation nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision.
  • The information, statements and opinions contained in this Presentation are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction of the United States or in Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would be unlawful (the "Other Countries"), and there will be no public offer of any such securities in the United States. This Presentation does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries.
  • Pursuant the consolidated law on financial intermediation of 24 February 1998 (article154-bis, paragraph 2) Lorena Pelliciari, in her capacity as manager responsible for the preparation of the Company's financial reports declares that the accounting information contained in this Presentation reflects FinecoBank's documented results, financial accounts and accounting records.
  • This Presentation has been prepared on a voluntary basis since the financial disclosure additional to thehalf-year and annual ones is no longer compulsory pursuant to law 25/2016 in application of Directive 2013/50/EU, in order to grant continuity with the previous quarterly presentations. FinecoBank is therefore not bound to prepare similar presentations in the future, unless where provided by law. Neither the Company nor any of its representatives, directors or employees shall be liable at any time in connection with this Presentation or any of its contents for any indirect or incidental damages including, but not limited to, loss of profits or loss of opportunity, or any other liability whatsoever which may arise in connection of any use and/or reliance placed on it.

2

Agenda

Fineco Results

Next steps

Key messages

Focus on product areas

3

Executive Summary

Outstanding net profit in challenging market scenario

  • 1Q20 Net profit(1)at 92mln, +45% y/y and +29% q/q and, confirming thesustainability of a business model able to deliver consistent results in every market condition
  • 1Q20 revenues(1)at 201mln, +27% y/yand +19% q/qand supported by all business areas:
    • Brokerage(+110% y/y and +77% q/q) thanks to both the in-depth review of our product offer and to the particularly high market volatility
    • Investing(+12% y/y and +4% q/q) despite negative market performance in 1Q20, with management fees up +8% y/y
    • Banking(+3% y/y and q/q) thanks to high quality volume growth in deposits and lending and to the contribution from the smart repricing in place starting from February 2020
  • Operating Costs well under control at-67mln,+2% y/y.C/I ratio at 33.0%, -8.2 p.p. y/y, confirmingoperating leverage as a key strength of the Bank

Strong and safe capital position

  • 1Q20 CET1 ratio at 19.28%pro-formaand TCRpro-formaat 34.94%,including 2019 dividend payment (32.0 €/cents DPS)

Robust commercial activity

  • Net sales in the first 4 months of the year at 3.1bn(2.1bn in 1Q20), TFA at 79.1bn (75.9bn in 1Q20) with penetration ofGuided products on Assets under Management at 72%
  • Fineco Asset ManagementAUM net sales were 0.5bn in the first 4 months of the year and total assets stood at 13.2bn

4

(1)Figures net of non recurring items: Voluntary Scheme: 1Q20: -1.2mln gross, -0.8mln net. 2019 non recurring items: Voluntary Scheme: 1Q19: -

0.4mln gross, -0.3mln net; 4Q19: +1.4mln gross, +0.9mln net); Patent Box: -0.9mln in 1Q19, -0.9mln in 2Q19, -0.9mln in 3Q19, +20.7mln in 4Q19

Results

1Q20 Net Profit up +45% y/y and +29% q/q, boosted by diversified revenues growth in a complex market environment. C/I ratio at 33.0%, down ~8.2 p.p. y/y confirming our

strong operating leverage

Net Profit, mln

excluding non recurring items (1)

Adj. RoE (2)

Adj. Cost/Income (2)

+45.4%

+28.9%

93.2 91.4

62.3

92.2

71.6

63.5

1Q19 4Q19 1Q20

31% 24% 31%

41% 38% 33%

Revenues, mln

excluding non recurring items (1)

+27.2%

+19.2%

157.7

170.2

200.1

158.2

168.8

201.3

1Q19

4Q19

1Q20

Operating Costs, mln

+1.9%

+3.2%

65.3 64.4 66.5

1Q19 4Q19 1Q20

(1)

1Q20 non recurring items: Voluntary Scheme: 1Q20: -1.2mln gross, -0.8mln net; 2019 non recurring items: Voluntary Scheme:

1Q19: -0.4mln gross, -0.3mln net; 4Q19: +1.4mln gross, +0.9mln net); Patent Box: -0.9mln in 1Q19, +20.7mln in 4Q19.

5

(2)

Adj. Cost/Income and Adj. RoE calculated net of non recurring items

Net interest income (1/2)

Solid NII thanks to valuable and sticky sight deposits coupled with high-quality lending portfolio despite low interest rate environment

Net Interest Income, mln

(1)

(2)

(3)

Financial Investments

Other

Lending

Cost of funding

o/w other Bonds

o/w UC Bonds

-3.2%

70.4

-2.3%

69.7

68.1

10.5

10.9

11.0

2.8

2.8

2.3

o/w days effect

1Q20 vs 4Q19:

-0.8mln

59.7

57.7

56.8

-2.5

-1.7

-2.0

1Q19

4Q19

1Q20

20.1

27.7

28.6

34.0

28.5

26.0

33.4

Interest-earning assets, avg bn

(1)

(2)

Gross margins(4)

Financial Investments

Other

Lending

Cost of deposits

1M Euribor

Eurirs 5y

+14.1%

+3.8%

23.3

25.6

26.6

3.3

3.1

0.8

0.5

2.6

1.0

22.5

22.1

19.7

1Q19

4Q19

1Q20

1.26% 1.11% 1.08%

-0.05%-0.03%-0.03%

-0.37%-0.45%-0.47%

0.13% -0.24%-0.26%

  1. Financial investments include interest income coming from the reinvestments of deposits (both sight and term) in: Government bonds, UC bonds, Covered bonds, Supranational and Agencies and other financial investments (repos and immediate available liquidity)
  2. Other net interest income includes Security Lending, Leverage and other (mainly marketing costs). Otherinterest-earning assets include Security Lending and Leverage. See page 41 for details

6(3)Lending: only interest income

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

Net interest income (2/2)

Further improvements for a diversified asset side.

Sensitivity analysis +100bps / -100bps parallel shift: +134mln NII / -121mln NII

Bond Portfolio, avg bn

UC bonds and Govies run-offs,eop bn

UC bonds

Spain

SSA (1)

Italy

Other Govies(2)

Covered Bonds

+21.3%

+2.9%

22.2

21.6

18.3

7.5

7.2

8.8

5.4

5.0

3.9

3.8

4.0

3.4

3.4

3.6

0.0

1.5

1.3

1.2

0.6

0.6

0.7

1Q19

4Q19

1Q20

Avg Bond portfolio 1Q20 (excl. UC Bonds): 15.0bn, +58.3% y/y, +7.2% q/q

68%(3)at fixed rate, avg yield: 79bps

UC Bonds

Govies & SSA

Covered Bonds

3.1

2.5

2.7

2.2

2.2

2.3

2.2

1.9

1.4

1.9

1.5

1.6

1.4

0.6

1.1

1.8

2.1

2.1

2.0

0.7

1.3

1.1

0.8

0.9

0.9

0.3

0.5

0.6

0.1

0.3

0.0

0.0

0.0

0.1

0.1

0.1

0.1

0.0

0.0

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2044

223

235

146

191

160

UC Bonds avg spread vs Eur1M, bps

Residual maturity total portfolio: 4.9 yrs

o/w UC Bonds: 1.9 yrs

o/w bonds (excl. UC bonds): 6.3 yrs

(1)

Sovereign Supranational and Agencies

(2)

Avg 1Q20 "Other" includes: 0.7bn France, 0.8bn Ireland, 0.5bn USA, 0.4bn Belgium, 0.4bn Austria, 0.4bn Portugal, 0.3bn Germany, 0.1bn Poland,

7

0.1bn UK

(3)

Calculated on nominal value as of Mar.31st, 2020

Non Interest Income

Fees and commissions +36% y/y and +28% q/q boosted by Brokerage. Trading Income +169% y/y and +98% q/q mainly driven by high market volatility

Fees and Commissions, mln

Brokerage Investing Banking Other

+35.8%

+27.7%

105.0

77.4 82.335.4

18.5 20.8

54.2

56.1

60.8

8.8

4.5

5.3

0.1

0.1

0.0

1Q19

4Q19

1Q20

Trading Income, mln

mln

excluding non recurring items (2)

+168.9%

+98.4%

26.4

15.3

9.827.6

10.3 13.9

1Q19 4Q19 1Q20

o/w Trading Income from Brokerage

+205.6%

+113.6%

8.2

11.7

25.1

1Q19

4Q19

1Q20

  1. Mainly PFAs annual bonus

8

(2)Adj. Trading Income excluding non recurring items: Voluntary Scheme (1Q20: -1.2mln gross, -0.8mln net; 1Q19: -0.4mln gross, -0.3mln net;

4Q19: +1.4mln gross, +0.9mln net)

Focus on Brokerage

Perfect countercyclical business delivering outstanding results in a complex market environment

In 1Q20 our Brokerage recorded booming resultsdue to skyrocketing volatility, to the in-depth reshape of our offer, and to the enlargement of the market as more Italians are now interested in financial markets

Outstanding 1Q20 brokerage revenues

Skyrocketing volatility in the quarter (1)

+110.1%

+76.5%

30.2

31.6

34.9

35.9

63.4

1Q19

2Q19

3Q19

4Q19

1Q20

No.1 Brokerage platform,

multichannel and fully integrated

  • Well advancedin-houseknow-how,optimizing time-to- market and cost efficiency
  • In-houseback-officeand customer care.Business continuity always guaranteed
  • Order internalization supporting Brokerage performance:equity, bonds and forex
  • Robust risk management, mostly intra-day positions with low risk light traders

Well-diversified brokerage offer

among products…

…and geographies

Funds

Other markets

Forex / CFD

Italy

7%

34%

Derivatives 21%

8%

52%

62%

2%

14%

Bonds

Equity

US

  1. Volatility calculated asavgweekly volatility of BUND, BTP, SP, EUROSTOXX, MINIDAX, DAX, FIB, MINIFIB, NASDAQ,
    9DOW weighted on volumes related to futures traded by our clients

Focus on Investing

1Q20 resilient despite difficult market conditions. AUM expected to recover as volatility calms down from its recent peak

Investing Revenues, mln

Main highlights

Upfront fees

PFA incentives(1)

Management fees

Other income

Increasing Investing revenues driven by lower

PFA incentives compared to 4Q19 (related to AuM

inflows realized in the quarter)

+12.4%

Management feesin 1Q20 affected by:

+3.7%

Lower % of equity on AUM in 1Q20 due

58.8

to negative market effect

1.8

60.9

Increased penetration of decumulation

1.7

productsamong our offer of guided

54.2

63.0

products

61.9

1.1

MANFEE MARGINS, bps

4Q19

1Q20

57.1

2.7

-2.70.1

Pre tax

64

63

-4.0

0.0

-8.7

After tax

46

46

1Q19

4Q19

1Q20

Average AuM, bn

39.3

39.6

(on daily basis)

10

Costs

Cost efficiency and operating leverage confirmed in our DNA

Staff expenses and FTE, mln

FTE #

+10.9%

+1.9%

21.723.6 24.0

1Q19 4Q19 1Q20

1,121 1,187 1,199

Long Term Incentive Plans,mln

Staff expenses, related to top managers and key employees Other administrative expenses, related to PFAs

1.2

0.5

0.8

0.7

0.7

0.5

0.4

0.3

0.3

1Q19

4Q19

1Q20

Non HR Costs(1),mln

OAE

Write-downs/backs & depreciation

-2.6%

43.6

+4.0%

42.5

40.9

38.5 34.336.5

5.1

6.6

6.1

1Q19

4Q19

1Q20

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

11

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

Commercial Loans portfolio, eop mln

Eop, mln

Current accounts/Overdraft (1)

Cards

Personal loans

Mortgages

+26.6%

+4.9%

3,417

3,259

2,700

1,327

1,281

1,069

463

459

442

356

218

271

1,159

1,413

918

Mar.19

Dec.19

Mar.20

Cost of Risk on commercial loans (2)

18 bps

12 bps

14 bps

Mar.19 Dec.19 Mar.20

  • Cost of Risk well under control thanksto the constant improvement in the quality of the credit which is mainly secured and low risk
  • We confirm our strategy aims to build a safe lending portfolio, offering these products exclusively to our very well known base of clients, leveraging on a deep internal IT culture, powerful data warehouse system and Big Data analytics
  • No change in our FY20 CoR expectations(10-15bps)thanks to the high quality of our portfolio, even in a difficult context following Covid-19 outbreak
  • More details on the quality of our portfolio in the following slide, with a deep dive on the main products offered
  1. Current accounts/overdraft Include Lombard loans
  2. Cost of Risk: commercial LLP of the last 12 months on average last 12 months commercial Loans

12

Lending

Strong lending growth with decreasing expected losses for mortgages, personal loans and lombard loans thanks to the quality of our portfolio

Mortgages

Eop, mln

+53.8%

+21.9%

14,505 mortgagesgranted since December 2016

Average customer rate:159bps. 1Q20 Yield(1)at 57bps

918

1,159

1,413

Average Loan to Value 54%,average maturity 19 yrs

Low expected loss (~17 bps)

Mar.19

Dec.19

Mar.20

2020 Guidance

  • yearly new production:
    • 400-500mln
  • Expected yield:
    • 55-70bps

Personal Loans

Eop, mln

+4.0% -0.7%

442 463 459

Mar.19 Dec.19 Mar.20

  • Average ticket €9,100 and average maturity 4.5 years
  • 1Q20 Yield at 393bps
  • Efficient and real time process, instant approval platform for eligible clients' requests thanks to a deep knowledge of clients.
  • Low expected loss(~50 bps)
  • yearly new production:
  • 150-200mln
  • (-20/-40mlnnet)
  • Expected yield:
    ~ 380-410bps

Lombard Loans

Other lombard Credit lombard

Eop, bn

+24.6%

+3.4%

1.11.3 1.3

0.90.21.1 0.21.20.2Mar.19 Dec.19 Mar.20

o/w Credit Lombard(2):

  • Attractive pricing:retail clients 100bps and private clients 75bps (on 3M Eur(3))
  • Differentiated marginsaccording to the riskiness of the pledged assets
  • Very low expected loss(~10 bps)

o/w Credit Lombard(2):

  • Expected growth:
    • 300-350mlnper year
  • Expected yield:
    • 75-85bps
  1. Yield on mortgages net of amortized and hedging costs
  2. Credit Lombard allows to change pledged assets without closing andre-opening the credit line, allowing more flexibility and efficiency

13with floor at zero

Capital Ratios:

Best in class capital position and low risk balance sheet

(1)

CET1 Ratio , %

RWA, mln

Credit

Market

Operational

CET1 capital, mln

w/o 2019 dividend

+30.4%

-169bps

payment

-0.7%

+116bps

+120bps

2,450

3,217

3,195

20.98

18.12

19.28

24.19

25.39

2,074

1,736

2,078

Mar.20

Dec.19

40

14

Mar.19

Dec.19

Mar.20

682 33

1,103

1,103

pro-forma

pro-forma

Mar.19

Dec.19

Mar.20

514

583

616

778

811

Leverage Ratio, %

Total Capital Ratio, %

w/o 2019 dividend

+580bps

w/o 2019 dividend

payment

payment

5.11

3.85

3.73

4.54

4.39

+127bps

+131bps

29.14

33.67

34.94

39.73

41.04

Mar.19

Dec.19

Mar.20

Dec.19

Mar.20

Mar.19

Dec.19

Mar.20

Dec.19

Mar.20

pro-forma

pro-forma

pro-forma

pro-forma

  1. "Starting from 31 December 2019, FinecoBank applied the Standardised Method for determining the regulatory requirement related to operational risk, replacing the Advanced Measurement Method ("AMA") adopted previously."
  2. CET1 ratio in March 2020 y/y decrease is mainly related to the change of model for calculating operational risks following the exit from

14UniCredit Group

Dec.19 includes 2019 dividend payment of 32.0 €/cents. Mar.20 pro-forma includes 2019 dividend payment of 32.0 €/cents.

TFA

Relentless TFA growth thanks to a healthy expansion in net sales. Guided products & Services increased at 72% of total AuM

TFA evolution (Dec.14 - Mar. 20), bn

Cumulated performance

81.4

2.1

Net Sales

+30.7 bn

6.2

-7.6

75.9

Market Effect

-4.1 bn

5.8

(2)

6.2

-4.1

69.3

1.0

67.2

0.5

49.3 5.5

60.2 6.0

55.3 5.0-0.2

TFA Net Market TFA Net Market TFA Net Market TFA 2014 sales effect 2015 sales effect 2016 sales effect 2017

Net Market TFA Net Market TFA Net Market TFA sales effect 2018 sales effect 2019 sales effect 1Q20

36%

44%

56%

63%

67%

71%

72%

Guided products as % of total AuM (1)

15(1)Calculated as Guided Products end of period divided by Asset under Management end of period

  1. 1Q20 market effect:-4.8bn AUM and -2.9bn AUC

TFA breakdown

Successful shift towards high added value products thanks to strong productivity of the network. 1Q20 affected by negative market effect

Breakdown of total TFA, bn

Focus on AUM, bn

Guided products as % of AuM

67.2

60.2

55.3

49.350%

48%

48%63%

48%

56%

44%

81.4

79.1

75.9

69.3

50%

47%

48%

48%

72%

72%

71%

67%

19%

18%

19%

+11.6 bn AUM since the end of 2014, o/w:

Guided Products & Services +17.0bn

AuM à la carte -5.4bn

-12.3%

29.0

33.6

33.5

40.5

35.5

23.9

26.6

21.2

22.4

28.8

25.5

8.5

11.8

16.1

15.4

14.8

12.9

12.3

11.7

11.1

10.0

Dec.14 Dec.15 Dec.16 Dec.17 Dec.18 Dic.19 Mar.20

Guided Products AuM à la carte

36%

21% 20%

20%

Guided Products breakdown, bn

24%

24%

28% 28%31% 30%

32%

31%

35%

33%

Total: 25.5

Core Series

Insurance

4.6

4.8

Stars

1.3

1.0

Advice

Dec.14 Dec.15 Dec.16 Dec.17 Dec.18 Dic.19 Mar.20 Apr.20

AuM AuC Deposits

1.3

Plus

5.4

7.1

(2)

Best in Class

Other (1)

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

16

(1)

"Best in class" are a selection of advisory products and services based on: cost optimization, quality, sustainability and risk

(2)

Other includes: Core Funds, PIR and Core Pension, GP Private, FAM Evolution stand-alone

Net sales breakdown

Solid high quality net sales growth on the wave of structural trends thanks to our diversified business model and with a mix affected by complex environment

Breakdown of total Net Sales, bn

PFA Network - total Net Sales, bn

5.8

5.1

6.2

6.0

5.4

5.5

5.5

5.0

+39%

4.9

+37%

2.3

3.3

y/y

4.3

y/y

2.3

3.3

4.0

+23.6%

3.6

+25.2%

2.7

1.9

4.0

2.6

+41.7%

1.9

4.0

3.1

+48.3%

2.7

0.3

1.8

0.4

3.1

1.3

2.1

3.0

0.2

1.9

0.5

0.9

1.7

1.5

0.7

1.3

0.5

3.5

1.0

1.8

1.5

0.8

1.4

2.9

0.7

0.3

2.6

2.1

1.4

2.2

0.7

1.3

1.9

0.2

1.6

1.9

1.5

1.3

0.1

1.3

1.2

0.9

1.1

0.8

0.9

0.9

0.5

0.7

0.3

-0.2

-0.2

-0.4

-0.3

-0.2

-1.0

-0.8

-0.4

2014 2015 2016 2017 2018 2019 1Q19 4Q19 1Q20 Apr.20

2014 2015 2016 2017 2018 2019 1Q19 4Q19 1Q20 Apr.20

YTD

2,533 2,622

2,6282,607

2,578 2,541

YTD

2,557

AuM

AuC

Deposits

PFA Network - headcount

17AuC and Deposits under advisory have been reclassified within AuM in order to have a better representation of the advisory nature of Advice and Plus services

Organic growth

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

Net Sales, bn- Organic / Recruit, %

Total recruits

Organic

Total recruits(1)

Organic

4.0 5.5

5.0

6.0

6.2

5.8

2.1

4.0

5.5

5.0 6.0

6.2 5.8

2.1

Recruitment costs

2%

18%

11%

11%

10%

7%

5%

26%

19%

19%

14%

15%

9%

9%

(to be amortized)

stock 25.3mln

as of Mar.'20

89%

89%

90%

93%

95%

98%

86%

85%

91%

91%

82%

81%

81%

74%

2014

2015

2016

2017

2018

2019 1Q20

2014

2015

2016

2017

2018

2019 1Q20

125 118 85 98 70 58 20

# of PFAs recruited in the period

18

(1)Total recruits include net inflows related to PFAs recruited over the last 24 months (avg)

Continuously increase of quality and productivity of the network, despite negative market effect in the first quarter of the year

Total Assets per PFA

Eop, mln

+3.1% -7.5%

27.8

25.025.7

15.7

-0.5%

13.8

13.7

y/y

4.44.5 4.0

6.77.6 8.0

Mar.19 Dec.19 Mar.20

9.4

11.3

10.0

+5.4%

y/y

AUM Deposits

AUCGuided Products

TFA concentration per PFA

PFAs with TFA >20mln are 49% (+3%y/y)

and hold 77% of TFA(+2% y/y)

-14

+2.5%

2,557,

2,571

64.2bn

65.8bn

100

100

> €35mln

21%

21%

49%

€25-35mln

15%

16%

46%

47%

€20-25mln

77%

12%

12%

€10-20mln

30%

18%

20%

30%

12%

11%

< €10mln

19%

22%

21%

18%

5%

5%

Mar.19

Mar.20

Mar.19

Mar.20

PFAs

TFA

19

Clients' profile and focus on Private Banking

Total Financial Assets per client

Total TFA: 75.9bn

o/w Private Banking(1): 28.8bn

12.1%

7.4%

Average age:

>500k

11.6%

0.5-1mln

38.0%

8.2% 38.4%

Total clients: 49

100-500k

1-5mln

50-100k

5-10mln

Private clients: 62

46.1%

<50k

38.3%

>10mln

TFA Private Banking, eop bn

Avg TFA per Private client

-0.7%

AuM

AuC

Deposits

-13.7%

0.9mln

29.0

33.4

28.8

30.9

22%

53%

25%

Mar.19

Dec.19

Mar.20

Apr.20

  1. Private Banking clients are clients with more than € 0.5mln TFA with the Bank

20

Agenda

Fineco Results

Next steps

Key messages

Focus on product areas

21

2020 Guidance

On track to achieve our expectations for 2020 results although with a different mix

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

  • Net interest income:confirmed resilient and low risk thanks to the smooth run-off of our bond portfolio, positive effect from volumes (~2.5bn-3bn expected growth of deposits per year) and lending book (~0.8-1bn new production per year), benefit from ECB's tiering, no change in our investment policy with no increase in Fineco risk profile and a more dynamic management of our Treasury
  • Investing:every 1bln change of AuM on 1st May generates ~3.6mln revenues starting from 1st May until year-end
  • Brokerage: acting as countercyclical business. It is expected to remain strong thanks to: 1) the deep reshape of the product offer, 2) the levels of volatility which we expect to be higher than the extremely low levels registered in the past years and 3) to the enlargement of the market (more Italians are interested in financial markets)
  • Banking:banking fees from smart repricing expected to increase by ~20mln
  • Costs:we decrease our guidance(2)to ~4% yearly growth thanks to our strong operating gearing. This guidance does not include up to ~6.5mln of marketing costs in UK. Cost/Income continuously declining in the long run
  • CET1: floor 17%, but we expect to stay at ~18% in 2020
  • Leverage Ratio:very well under control and above 3.5% (for details, see slide 48 in Annex)
  • Cost of Risk: confirmed in the range between 10 and 15 basis points thanks to the quality of our portfolio
  • Net sales:robust, high quality net sales

22

(1)

Forward rate curve as of April 23rd, 2020

(2)

Costs guidance includes 1.5mln of UK operative costs

Current environment is creating the conditions to further enlarge our growth opportunities

Benefiting from current situation with more positive than negative effects in 2020…

POSITIVES

  • Robust Net sales
  • Booming Brokerage

NEUTRAL

Customers appreciate price/quality

NEGATIVES

NII

Costs savings

Cost of Risk unchanged

Slowing AUM pace

…and further accelerating our long term growth

Society structurally

accelerating towards a more digitalized world

Strengths of our business model:

quality, efficiency, innovation

Fintech DNA:

we were born already digital

In the sweet spot

to capture the

secular trend of

DIGITALIZATION

23

Delivering on industrial measures

Focus on improving revenues mix and slowing down Balance Sheet growth for a better quality business going forward

Our industrial measures

Well-equipped to deal with clients' conservative approach in challenging market environment thanks to:

  • New generation of products:FAM contributing in terms ofproduct innovation, operating efficiency and time-to-market
  • New software developments:to improve PFAs productivity also leveraging on Big Data Analytics capabilities (X-Net,Co-Working platform)

April net sales mix improved again after the spike in market volatility during March

bn

Total net sales

AUM / Net sales

1.7

2.1

1.6

1.5

1.0

0.8

1.0

0.3

1Q19

2Q19

3Q19

4Q19

1Q20

Jan.20

Feb.20

Mar.20

40%

45%

49%

91%

-11%

67%

44%

-77%

3.1

1.0

Apr.20

Apr.20

YTD

69%

14%

  • March recordedmore than 1bn net sales, the highest since December 2015, with a mixreflecting both the flexible and transparent approach of our multichannel platformand the extremely high volatility of financial markets
  • Improved net sales mix in April (AUM at 69% of total net sales)also thanks to volatility calming down

24

Delivering on industrial measures

Fineco Asset Management gaining commercial momentum

Strong contribution to Fineco's AuM net sales

bn

FAM retail class net sales

1.4

0.7

0.7

0.5

0.5

0.9

0.3

0.3

0.0

-0.2

1Q19

2Q19

3Q19

4Q19

1Q20

Increasing penetration in Fineco's AuM net sales thanks

to FAM ability to create modern and innovative multimanager solutions

FAM Growth potential

bn

FAM retail class penetration on:

Fineco's AUM

Fineco's AUM

(excluding insurance)

(total)

35.5

26.4

28.8

24.1

32%

24%

29%

21%

Mar.19

Dec.19

Mar.20

Mar.20

Further room to increase FAM's penetration on Fineco's funds stock enhancing the Bank's open architecture platform

New solutions suitable for volatile markets:

(launched in March 2020): capital preservation solution for more conservative customers' who want to protect their capital

(launched in April 2020): an evolution of the decumulation products for customers' who want to take advantage of bear market phases

25

Agenda

Fineco Results

Next steps

Key messages

Focus on product areas

26

3 Pillars: Efficiency, Innovation and Transparency

The keys of our strategy, still leading our sustainable growth

EFFICIENCY

INNOVATION

TRANSPARENCY

Strong focus on IT & Operations,

Anticipate new needs

Fairness and Respect

more flexibility, less costs

simplifying customers' life

for all our stakeholders

We built everything from scratch

Freedom:Freedom to start over «from scratch», build a new bank, the best you can imagine

Proprietaryback-end:In-house development and automated processes allow an efficient cost structure and fast time to market

Excellent offer:Unique customer user experience, top quality in all services

We were true pioneers

Fineco anticipated a main market trend: digitalization

Moving customer's focus from proximity to service and quality

We believe in a "Quality" One Stop Solution

Providing all services in a single account is a distinctive feature but it's not enough.

Gaining a competitive edge requires high quality on each single service and product

27

Healthy and sustainable growth with a long term horizon

Highly scalable operating platform…

2014

2015

2016

2017

2018

2019

CAGR(2014-2019)

69

81

+ 11%

67

60

1,358

+ 7%

1,278

55

1,200

TFA (bn)

49

1,118

1,048

254

281

+ 13%

226

964

Clients (thd, #)

197

208

658

+ 8%

628

Net profit (1)(mln)

155

587

544

Revenues (1)(mln)

451

544

250

+ 3%

244

233

226

233

Costs (1)(mln)

212

Cost/ Income (1)(%)

47

43

42

40

-9 p.p.

39

38

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

Net Profit adjusted (net of DGS and SRF) (1), mln

CAGR

+16.3%

37.340.1 36.440.8 47.8 45.9 55.1 47.7 51.2 49.8 52.0 54.8 51.7 52.6 61.0 60.4 59.0 66.2 63.2 65.6 63.5 75.6 73.4 72.0 92.4

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

  1. Figures adjusted by non recurring items and Net Profit adjusted net of Deposit Guarantee Scheme and Single Resolution Fund (FY15:-3.1mln net, FY16: -7.1mln net, FY17: -7.1mln net, FY18: -9.6mln net, FY19: -12.1 mln net, 1Q20: -0.3mln gross, -0.2mln net)

28

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

Diversified investment portfolio

  • Investment strategy announced during FY17 results unchanged:UC bonds run- offs, blend of European government bonds diversified across countries, covered bonds, supranational and agencies
  • 99% not exposed to volatility: HTC classification since November 2016

High-quality lending growth

Lending offered exclusively to our well-knownbase of clients

  • Low-risk:CoR at 14bps, cautious approach on mortgages (LTV 54%, avg maturity 19 yrs)
  • Strong competitive advantage leveraging on Big Data Analytics and continuous innovation(i.e. look-through implementation with significant benefits on CET1 ratio)

29.5 bn

23.4

27.2

3.7

1.8

0.8

1.5

0.6

Assets

Liabilities

High-value deposit base

  • Sticky deposits:mostly 'transactional liquidity' gathered without aggressive commercial offers
  • Growth based on quality of services.Cost of funding close to zero
  • +11% CAGR sight deposits growth in the last 10 years,strong resilience during periods of stress/crisis

Rock - solid capital position

pro-forma

CET1

19.3%

LCR

~1000%

pro-forma

TCR

34.9%

NSFR(2)

261%

pro-forma

LEVERAGE RATIO

3.73%

Financial Assets

Customer loans

(1)

Other

Due from Banks

Customer deposits

Other liabilities

Equity

  1. Due from banks includes 1.2bn cash deposited at Bank of Italy as of Mar.20

29(2)NSFR as of Dec.19

Total assets: 99.5% not exposed to volatility

Out of 29.5, only 0.16bn of Assets valuated at fair value with very limited impacts on Equity reserve

Total Assets, eop bn

Gov. Bonds at fair value

Covered bonds

Due from banks(1)

Other (2)

Other Bonds at amortized costs

UC Bonds

Customers loans

29.5

0.2

15.2

0.8

7.1

1.8

o/w Italy HTCS 10.3mln

Financial investments at amortized costs (HTC)

o/w Total non UCG Bonds:

16.1 bn (3)

SSA

Spain

1.4

Ireland

4.0

0.8

France

0.8

0.8Covered

2.6Other (4)

5.8

Italy

3.7

0.7

Mar.20

Massivede-riskingof the Balance Sheet

thanks to thefull collateralization of UC bonds (May 10th, 2019)

  1. Due from banks includes 1.2bn cash deposited at Bank of Italy as of Mar.20
  2. Other refers to tangible and intangible assets, derivatives and other assets
  3. 16.1bn equal to 15.2bn nominal value, o/w Italy 5.35bn nominal value
  4. Other : US, Austria, Belgium, Germany, Poland, Portugal, United Kingdom, Luxembourg

30

Sustainability at the heart of Fineco's business model

Embedding ESG in our Bank's Governance

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

Appointments and Sustainability Committeeestablished to supervise the Bank's sustainable growth strategy and ESG plans, together with a Sustainability Management Committee

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

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

ESG Award

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

First Non Financial Disclosure published in April 2020

Continuously updating our ESG offer

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

ESG model portfolios launched within our Advice Platform

Green mortgagesfor the purchase of real estate with energy rating between A and B Green and Social Bondsare included in our covered bonds portfolio

  1. Standard Ethics is an independent agency which assigns Solicited Sustainability Ratings to companies and sovereign issuers. Fineco is included in the Standard Ethics Italian Banks Index© and in the Standard Ethics Italian Index, among the major environmental, social and governance performance indices and benchmarks.
    The Standard Ethics Rating is an assessment of sustainability and governance based on the principles and voluntary directions of the United Nations, the Organization for Economic Cooperation and Development (OECD) and the European Union.

31(2)Morningstar ESG rating above «Average»

Agenda

Fineco Results

Next steps

Key messages

Focus on product areas

32

Revenues by Product Area

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

Banking, mln

37%

+3.5%

+2.9%

72.1

72.5

74.6

1Q19

4Q19

1Q20

Brokerage, mln

32%

Investing, mln

30%

+110.1%

1Q20

Management

+12.4%

+76.5%

fees

+8.4% y/y

+3.7%

63.4

30.2

35.9

54.2

58.8

60.9

1Q19

4Q19

1Q20

1Q19

4Q19

1Q20

1Q20 weight on total revenues for each product area

Managerial Data. Revenues attributable to single each product area, generated by products / services offered to customers according to

33

the link between products and product area. Banking includes revenues generated by direct deposits and credit products. Investing

includes revenues generated by asset under management products; Brokerage includes revenues from trading activity.

Banking

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

Revenues

mln

Net Interest

Trading income

Fees and commissions

Other

+3.5%

+2.9%

74.6

72.1 72.565.8

66.9

67.6

8.8

5.3

4.5

0.1 0.2

-0.1 0.1

-0.10.2

1Q19

4Q19

1Q20

Sight deposits

Eop, bn

+17.4%

+5.2%

22.925.6 26.9

Mar.19 Dec.19 Mar.20

Clients and new clients

thd, ## of new clients

+5.0%

+0.4%

1,299 1,358 1,364

Mar.19

Dec.19

Mar.20

31 118 22

Managerial Data

34

Brokerage

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

Revenues

Executed orders

mln

Net Interest

Trading profit

mln

Fees and commissions

Other

+99.8%

+77.6%

+110.1%

12.1

6.1

6.8

+76.5%

63.4

1Q19

4Q19

1Q20

3.0

Volatility (1)

35.9 35.4

30.2 3.4

3.4

20.8

18.5

25.1

11.7

8.2

0.0

0.0

0.0

1Q19

4Q19

1Q20

  • Booming brokerage thanks to skyrocketing volatility in 1Q20 and to the reshape of our product offer
  • Structural improvementthanks to larger base of clients/higher market share and the enlargement of the products offer
  • Continuously increasing market share(i.e. market share on equity traded volumes in Italy at 27.0% in Dec.19(2), +2.3p.p. vs Dec.18) confirming Fineco as leader in brokerage

Managerial Data

35

(1)Volatility calculated as avg weekly volatility of BUND, BTP, SP, EUROSTOXX, MINIDAX, DAX, FIB, MINIFIB, NASDAQ, DOW weighted on

volumes related to futures traded by our clients

(2)Assosim

Investing

Increasing revenues y/y thanks to a successful strategy based on our cyborg advisory approach. Very limited upfront fees, representing only 3% of investing fees

Revenues (Net fees)

Assets under Management

mln

PFA incentives(1)

Upfront fees

Management fees Other income

+12.4%

+3.7%

58.8

1.8

60.9

1.7

54.2

63.0

61.9

1.1

57.1

2.7

0.1

-4.0

-2.7

0.0

-8.7

1Q20

Management

fees

+8.4 y/y -1.8% q/q

eop, bn

Guided Products / AUM

-1.3%

-12.3%

36.0 40.535.5

68% 71% 72%

Mar.19 Dec.19 Mar.20

Average Asset under Management

daily avg, bn

+13.1%

+0.7%

35.039.3 39.6

1Q19

4Q19

1Q20

1Q19

4Q19

1Q20

Managerial Data

36

Annex

37

P&L

mln

1Q19

2Q19

3Q19

4Q19

FY19

1Q20

Net interest income

70.4

71.4

69.8

69.7

281.3

68.1

Net commissions

77.4

81.3

84.3

82.3

325.2

105.0

Trading profit

9.8

8.0

11.6

15.3

44.8

26.4

Other expenses/income

0.2

0.3

0.1

2.9

3.6

0.6

Total revenues

157.7

161.1

165.8

170.2

654.8

200.1

Staff expenses

-21.7

-22.4

-22.5

-23.6

-90.2

-24.0

Other admin.exp. net of recoveries

-38.5

-34.4

-29.4

-34.3

-136.6

-36.5

D&A

-5.1

-5.4

-5.8

-6.6

-22.9

-6.1

Operating expenses

-65.3

-62.3

-57.6

-64.4

-249.6

-66.5

Gross operating profit

92.5

98.8

108.2

105.8

405.2

133.6

Provisions

-1.0

-2.9

-19.8

-3.5

-27.1

-1.1

LLP

-1.3

1.1

-1.2

-0.6

-2.0

-1.0

Profit from investments

-0.7

6.5

0.4

1.1

7.4

-0.1

Profit before taxes

89.5

103.5

87.6

102.8

383.5

131.4

Income taxes

-27.3

-31.7

-26.6

-9.6

-95.1

-40.0

Net profit for the period

62.3

71.8

61.0

93.2

288.4

91.4

Net profit adjusted (1)

63.5

75.6

61.7

71.6

272.3

92.2

Non recurring items (mln, gross)

1Q19

2Q19

3Q19

4Q19

FY19

1Q20

Extraord systemic charges (Trading Profit) (2)

-0.4

-4.3

0.4

1.4

-3.0

-1.2

Patent Box

-0.9

-0.9

-0.9

20.7

18.1

0.0

Total

-1.3

-5.2

-0.5

22.1

15.1

-1.2

(1)

Net of non recurring items

38

(2)

Voluntary Scheme valuation

P&L net of non recurring items

mln

1Q19

2Q19

3Q19

4Q19

FY19

1Q20

1Q20/

1Q20/

Adj. (1)

Adj. (1)

Adj. (1)

Adj. (1)

Adj. (1)

Adj. (1)

1Q19

4Q19

Net interest income

70.4

71.4

69.8

69.7

281.3

68.1

-3.2%

-2.3%

Net commissions

77.4

81.3

84.3

82.3

325.2

105.0

35.8%

27.7%

Trading profit

10.3

12.3

11.2

13.9

47.7

27.6

168.9%

98.4%

Other expenses/income

0.2

0.3

0.1

2.9

3.6

0.6

191.0%

-80.5%

Total revenues

158.2

165.4

165.4

168.8

657.8

201.3

27.2%

19.2%

Staff expenses

-21.7

-22.4

-22.5

-23.6

-90.2

-24.0

10.9%

1.9%

Other admin.expenses

-38.5

-34.4

-29.4

-34.3

-136.6

-36.5

-5.3%

6.3%

D&A

-5.1

-5.4

-5.8

-6.6

-22.9

-6.1

17.8%

-7.8%

Operating expenses

-65.3

-62.3

-57.6

-64.4

-249.6

-66.5

1.9%

3.2%

Gross operating profit

92.9

103.1

107.8

104.4

408.2

134.8

45.1%

29.1%

Provisions

-1.0

-2.9

-19.8

-3.5

-27.2

-1.1

14.6%

-68.2%

LLP

-1.3

1.1

-1.2

-0.6

-2.0

-1.0

-24.1%

61.3%

Profit from investments

-0.7

6.5

0.4

1.1

7.4

-0.1

-86.5%

-107.9%

Profit before taxes

90.0

107.8

87.2

101.4

386.4

132.6

47.3%

30.8%

Income taxes

-26.5

-32.2

-25.6

-29.8

-114.2

-40.4

52.1%

35.4%

Net profit adjusted (1)

63.5

75.6

61.7

71.6

272.3

92.2

45.4%

28.9%

(1)Net of non recurring items (see page 38 for details)

39

1Q20 P&L FinecoBank and Fineco Asset Management

mln

Fineco Asset

Management

Net interest income

0.0

Dividends

0.0

Net commissions

16.6

Trading profit

0.1

Other expenses/income

0.1

Total revenues

16.8

Staff expenses

-0.8

Other admin.exp. net of recoveries

-1.1

D&A

-0.1

Operating expenses

-1.9

Gross operating profit

14.9

Provisions

0.0

LLP

0.0

Profit on Investments

0.0

Profit before taxes

14.9

Income taxes

-1.9

Net profit for the period

13.0

FinecoBank Individual

68.1

0.0

88.4

26.3

0.5

183.3

-23.2-35.4-6.0

-64.6

118.7

-1.1-0.9-0.1

116.5

-38.1

78.5

FinecoBank Consolidated68.1 0.0 105.0 26.4 0.6 200.1-24.0-36.5-6.1-66.5133.6-1.1-1.0-0.1131.4-40.091.4

40

Details on Net Interest Income

mln

1Q19

Volumes &

2Q19

Volumes &

3Q19

Volumes &

4Q19

Volumes &

FY19

Volumes &

1Q20

Volumes &

Margins

Margins

Margins

Margins

Margins

Margins

Financial Investments

57.1

19,748

58.0

20,582

55.9

21,714

56.0

22,114

227.0

21,040

54.8

22,543

Net Margin

1.17%

1.13%

1.02%

1.01%

1.08%

0.98%

Gross margin

59.7

1.23%

60.4

1.18%

58.5

1.07%

57.7

1.04%

236.3

1.12%

56.8

1.01%

Security Lending

0.6

836

0.4

386

0.0

0

0.3

307

1.4

382

0.7

634

Net Margin

0.32%

0.44%

0.00%

0.44%

0.37%

0.44%

Leverage - Long

2.7

129

3.2

153

3.3

157

3.3

154

12.4

148

2.9

137

Net Margin

8.45%

8.35%

8.38%

8.38%

8.39%

8.42%

Lending

10.5

2,611

10.8

2,754

11.1

2,912

10.9

3,050

43.3

2,832

11.0

3,293

Net Margin

1.62%

1.58%

1.51%

1.42%

1.53%

1.34%

o/w Current accounts

2.9

1,040

3.2

1,112

3.2

1,169

3.4

1,241

12.7

1,141

3.4

1,316

Net Margin

1.14%

1.14%

1.10%

1.07%

1.11%

1.05%

o/w Cards

1.2

245

1.2

252

1.2

282

1.2

265

4.9

261

1.2

242

Net Margin

2.00%

1.92%

1.74%

1.87%

1.88%

2.02%

o/w Personal loans

4.6

441

4.6

448

4.6

457

4.5

459

18.3

451

4.5

462

Net Margin

4.20%

4.09%

3.98%

3.92%

4.05%

3.93%

o/w Mortgages

1.8

886

1.9

942

2.0

1,005

1.8

1,084

7.4

979

1.8

1,273

(1)

Net Margin

0.80%

0.82%

0.79%

0.64%

0.76%

0.57%

Other

-0.5

-1.0

-0.4

-0.8

-2.8

-1.3

Total

70.4

71.4

69.8

69.7

281.3

68.1

Gross Margin

1.26%

1.25%

1.17%

1.11%

1.20%

1.08%

Cost of Deposits

-0.05%

-0.04%

-0.04%

-0.03%

-0.04%

-0.03%

Volumes and margins: average of the period

Net margin calculated on real interest income and expenses

41

2019 quarterly figures have been reclassified due to a managerial recast

(1)

Other includes mainly marketing costs

UniCredit bonds underwritten

ISIN Currency

Amount (€ m)

Maturity

Indexation

Spread

1

IT0005010365

Euro

382.5

10-Apr-20

Euribor 1m

2.47%

2

IT0005010308

Euro

382.5

9-Jul-20

Euribor 1m

2.49%

3

IT0005010381

Euro

382.5

7-Oct-20

Euribor 1m

2.52%

4

IT0005010332

Euro

382.5

6-Jan-21

Euribor 1m

2.54%

5

IT0005010316

Euro

382.5

6-Apr-21

Euribor 1m

2.56%

6

IT0005010340

Euro

382.5

5-Jul-21

Euribor 1m

2.58%

7

IT0005010225

Euro

382.5

18-Oct-21

Euribor 1m

2.60%

8

IT0005040099

Euro

100.0

24-Jan-22

Euribor 1m

1.46%

9

IT0005057994

Euro

200.0

11-Apr-22

Euribor 1m

1.43%

10

IT0005083743

Euro

300.0

28-Jan-22

Euribor 1m

1.25%

11

IT0005106189

Euro

230.0

20-Apr-20

Euribor 1m

0.90%

12

IT0005114688

Euro

180.0

19-May-22

Euribor 1m

1.19%

13

IT0005120347

Euro

700.0

27-Jun-22

Euribor 1m

1.58%

14

IT0005144065

Euro

450.0

14-Nov-22

Euribor 3m

1.40%

15

IT0005144073

Euro

350.0

15-Nov-21

Euribor 3m

1.29%

16

IT0005158412

Euro

250.0

23-Dec-22

Euribor 3m

1.47%

17

IT0005163180

Euro

600.0

11-Feb-23

Euribor 3m

1.97%

18

IT0005175135

Euro

100.0

24-Mar-23

Euribor 3m

1.58%

19

IT0005217606

Euro

350.0

11-Oct-23

Euribor 3m

1.65%

20

IT0005241317

Euro

622.5

2-Feb-24

Euribor 3m

1.52%

Total

Euro

7,110.0

Euribor 1m

1.92%

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

42

Details on Net Commissions

mln

1Q19

2Q19

3Q19

4Q19

FY19

1Q20

Brokerage

18.5

18.0

20.0

20.8

77.3

35.4

o/w

Equity

15.6

14.7

15.9

17.0

63.2

30.0

Bond

0.9

0.9

1.4

0.7

3.9

1.0

Derivatives

2.3

2.2

2.7

2.6

9.7

4.5

Other commissions(1)

-0.2

0.2

0.0

0.6

0.5

-0.2

Investing

54.2

57.6

58.3

56.1

226.2

60.8

o/w

Placement fees

1.1

1.3

1.1

1.8

5.4

1.7

Management fees

57.1

59.7

61.5

63.0

241.3

61.9

to PFA's: incentives

-3.0

-4.3

-3.6

-8.0

-18.9

-2.5

to PFA's: LTI

-1.0

0.8

-0.7

-0.7

-1.6

-0.2

Banking

4.5

5.6

5.9

5.3

21.3

8.8

Other

0.1

0.1

0.1

0.1

0.4

0.0

Total

77.4

81.3

84.3

82.3

325.2

105.0

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

43

Revenues breakdown by Product Area

mln

1Q19

2Q19

3Q19

4Q19

FY19

1Q20

Net interest income

67.6

68.8

67.0

66.9

270.3

65.8

Net commissions

4.5

5.6

5.9

5.3

21.3

8.8

Trading profit

-0.1

-0.1

-0.2

0.2

-0.2

-0.1

Other

0.1

0.1

0.1

0.1

0.4

0.2

Total Banking

72.1

74.3

72.7

72.5

291.7

74.6

Net interest income

0.0

0.0

0.0

0.0

0.0

0.0

Net commissions

54.2

57.6

58.3

56.1

226.2

60.8

Trading profit

0.0

0.0

0.0

0.0

0.0

0.0

Other

0.0

0.0

0.0

2.7

2.7

0.1

Total Investing

54.2

57.6

58.3

58.8

228.9

60.9

Net interest income

3.4

3.7

3.4

3.4

14.0

3.0

Net commissions

18.5

18.0

20.0

20.8

77.3

35.4

Trading profit

8.2

9.9

11.5

11.7

41.3

25.1

Other

0.0

0.0

0.0

0.0

0.0

0.0

Total Brokerage

30.2

31.6

34.9

35.9

132.6

63.4

Managerial Data

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

44

IFRS 9 P&L impacts

mln

1Q19

2Q19

3Q19

4Q19

1Q20

Trading Profit

0.8

-3.6

0.6

1.9

-2.3

Visa

1.2

0.7

0.2

0.4

-1.1

Voluntary Scheme

-0.4

-4.3

0.4

1.4

-1.2

Loan Loss Provisions

-1.0

3.1

-0.0

0.0

0.0

Profit on Investments

-0.7

6.5

0.4

1.1

-0.1

Govies

0.2

-0.8

-0.1

1.1

-0.1

UC Bonds

-0.8

7.3

0.5

-0.0

0.0

Total impacts from IFRS 9

-0.9

5.9

1.1

3.0

-2.3

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

In detail, P&L IFRS 9 impacted:

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

45

Breakdown Total Financial Assets

mln

Mar.19

Jun.19

Sep.19

Dec.19

Mar.20

AUM

35,988

36,819

38,325

40,505

35,516

o/w Funds and Sicav

26,361

26,426

27,477

28,786

24,122

o/w Insurance

8,401

9,002

9,369

10,115

9,961

o/w GPM

1

26

55

93

127

o/w AuC + deposits under advisory

1,225

1,365

1,425

1,512

1,307

o/w in Advice

572

600

603

598

516

o/w in Plus

653

765

822

914

792

AUC

15,187

15,229

15,158

15,324

13,485

o/w Equity

9,137

9,207

9,573

9,841

8,308

o/w Bond

6,037

6,011

5,575

5,448

5,147

o/w Other

13

12

11

35

30

Direct Deposits

22,941

23,844

25,099

25,590

26,925

o/w Sight

22,938

23,842

25,098

25,588

26,924

o/w Term

2

2

2

1

1

Total

74,116

75,892

78,583

81,419

75,927

o/w Guided Products & Services

24,301

25,354

26,697

28,788

25,486

o/w TFA Private Banking

29,041

29,970

31,891

33,437

28,844

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

46

Balance Sheet

mln

Mar.19

Jun.19

Sep.19

Dec.19

Mar.20

Due from Banks (1)

3,807

1,941

2,033

1,320

1,801

Customer Loans

3,029

3,409

3,568

3,680

3,741

Financial Assets

19,012

19,920

21,532

22,313

23,414

Tangible and Intangible Assets

243

242

247

279

280

Derivatives

29

49

72

65

76

Other Assets

259

274

308

366

207

Total Assets

26,380

25,835

27,760

28,023

29,519

Customer Deposits

23,311

24,140

25,429

25,920

27,202

Due to Banks

1,605

207

188

155

331

Derivatives

32

84

156

95

144

Funds and other Liabilities

393

477

698

471

365

Equity

1,040

928

1,289

1,382

1,477

Total Liabilities and Equity

26,380

25,835

27,760

28,023

29,519

  1. Due from banks includes: 1.2bn cash and 0.3bn compulsory reserves deposited at Bank of Italy as of Mar.2020; 1.2bn cash deposited at Bank of Italy as of June 2019, 1.2bn cash and 0.2bn compulsory reserves deposited at Bank of Italy as of Sept. 2019, and 0.8bn cash and 0.3bn compulsory reserves deposited at Bank of Italy as of Dec. 2019

47

Leverage Ratio Sensitivity

  • OUR PRIORITY: to slow down the growth of our Balance Sheetthrough the conversion of deposits into Asset under Management and through the repricing of our Banking services
  • OUR GUIDANCE: Leverage Ratio above 3.5%considering a growth of deposits in a range between 2.5-3bn per year

STRESS TEST SCENARIO

T1 Capital (mln)

0

30

40

50

60

70

80

90

100

110

120

130

140

150

-

3.85%

3.95%

3.99%

4.02%

4.06%

4.10%

4.13%

4.17%

4.20%

4.24%

4.27%

4.31%

4.34%

4.38%

500

3.78%

3.88%

3.92%

3.95%

3.99%

4.02%

4.06%

4.09%

4.13%

4.16%

4.20%

4.23%

4.27%

4.30%

(mln)

1,000

3.72%

3.82%

3.85%

3.89%

3.92%

3.96%

3.99%

4.02%

4.06%

4.09%

4.13%

4.16%

4.20%

4.23%

1,500

3.65%

3.75%

3.79%

3.82%

3.85%

3.89%

3.92%

3.96%

3.99%

4.02%

4.06%

4.09%

4.12%

4.16%

2,000

3.59%

3.69%

3.72%

3.76%

3.79%

3.82%

3.86%

3.89%

3.92%

3.96%

3.99%

4.02%

4.06%

4.09%

flows

2,500

3.53%

3.63%

3.66%

3.70%

3.73%

3.76%

3.79%

3.83%

3.86%

3.89%

3.92%

3.96%

3.99%

4.02%

3,000

3.48%

3.57%

3.61%

3.64%

3.67%

3.70%

3.73%

3.77%

3.80%

3.83%

3.86%

3.89%

3.93%

3.96%

3,500

3.42%

3.52%

3.55%

3.58%

3.61%

3.64%

3.67%

3.71%

3.74%

3.77%

3.80%

3.83%

3.86%

3.90%

4,000

3.37%

3.46%

3.49%

3.52%

3.56%

3.59%

3.62%

3.65%

3.68%

3.71%

3.74%

3.77%

3.80%

3.84%

deposits

4,500

3.32%

3.41%

3.44%

3.47%

3.50%

3.53%

3.56%

3.59%

3.62%

3.65%

3.68%

3.72%

3.75%

3.78%

5,000

3.27%

3.36%

3.39%

3.42%

3.45%

3.48%

3.51%

3.54%

3.57%

3.60%

3.63%

3.66%

3.69%

3.72%

5,500

3.22%

3.31%

3.34%

3.37%

3.40%

3.43%

3.46%

3.49%

3.52%

3.55%

3.57%

3.60%

3.63%

3.66%

6,000

3.17%

3.26%

3.29%

3.32%

3.35%

3.38%

3.41%

3.43%

3.46%

3.49%

3.52%

3.55%

3.58%

3.61%

6,500

3.13%

3.21%

3.24%

3.27%

3.30%

3.33%

3.36%

3.39%

3.41%

3.44%

3.47%

3.50%

3.53%

3.56%

Net

7,000

3.08%

3.17%

3.19%

3.22%

3.25%

3.28%

3.31%

3.34%

3.37%

3.39%

3.42%

3.45%

3.48%

3.51%

7,500

3.04%

3.12%

3.15%

3.18%

3.21%

3.23%

3.26%

3.29%

3.32%

3.35%

3.37%

3.40%

3.43%

3.46%

8,000

3.00%

3.08%

3.11%

3.13%

3.16%

3.19%

3.22%

3.24%

3.27%

3.30%

3.33%

3.36%

3.38%

3.41%

8,500

2.95%

3.04%

3.06%

3.09%

3.12%

3.15%

3.17%

3.20%

3.23%

3.26%

3.28%

3.31%

3.34%

3.36%

9,000

2.92%

3.00%

3.02%

3.05%

3.08%

3.10%

3.13%

3.16%

3.18%

3.21%

3.24%

3.27%

3.29%

3.32%

9,500

2.88%

2.96%

2.98%

3.01%

3.04%

3.06%

3.09%

3.12%

3.14%

3.17%

3.20%

3.22%

3.25%

3.27%

10,000

2.84%

2.92%

2.94%

2.97%

3.00%

3.02%

3.05%

3.07%

3.10%

3.13%

3.15%

3.18%

3.21%

3.23%

LR > 3.5%

3.0% < LR < 3.5%

LR < 3.0%

Considering our organic capital generation(1)after dividend distribution and payment of AT1 coupon, also in case of extremely adverse market scenario and

assuming 5 billion of deposit

growth in 2020 (vs 2.4bn on

average in the period 2015-'19),

ourLeverage ratio would

remain around 3.5%.

(1)In 2019 we generated 58mln of organic capital after the payment of AT1 coupon and assuming the distribution of €0.32 DPS

48

Main Financial Ratios

Mar.19

Jun.19

Sep.19

Dec.19

Mar.20

PFA TFA/ PFA (mln) (1)

25.0

25.6

26.6

27.8

25.7

Guided Products / TFA (2)

33%

33%

34%

35%

34%

Cost / income Ratio (3)

41.3%

39.4%

37.9%

37.9%

33.0%

CET 1 Ratio (4)

21.0%

17.8%

17.4%

18.1%

19.3%

Adjusted RoE (5)

31.2%

34.0%

27.3%

27.5%

30.7%

Leverage Ratio (6)

5.11%

2.89%

3.85%

3.85%

3.73%

  1. PFA TFA/PFA: calculated as end of period Total Financial Assets related to the network divided by number of PFAs eop
  2. Calcuated as Guided Products eop divided by Total Financial Assets eop
  3. C/I ratio net of non recurring items (see page 38) calculated as Operating Costs divided by Revenues net of non recurring items
  4. 1Q20 CET1 ratiopro-forma
  5. RoE: Net Profit, net of non recurring items (see page 38) divided by the average book shareholders' equity for the period (excluding dividends expected to be distributed and the revaluation reserves)

49(6)Leverage ratios until Mar.19 are calculated on Individual basis, according to the EC Delegated Act 2015/62 regarding the exclusion of intra-group

exposure. 1Q20 Leverage ratio pro-forma

High-value deposit base confirms strong resilience over time

Sight deposits growth, Eop bn

+17.4%

y/y

Financial

Sovereign

Worst liquidity outflow

crisis

debt crisis

last 10 years

CAGR: 11.3%

  • Double-digitdeposit growththroughout the last 10 years (+11.3% CAGR), with no impacts from 2008 financial crisis and 2011 sovereign debt crisis
  • Strong resilience during periods of stress/crisis: 912mln worst liquidity outflow on April 10th, 2012
  • High-valuedeposit base:most of our deposits is transactional liquidity. Customer rate: zero; cost of funding: 4bps
  • 83% of total sight deposits: core liquidity(1)in a stressed scenario according to clients' behavioral model
  • Structural trendsin place in Italy combined with best in class banking platform andhigh-qualityserviceswill continue to support our deposit growth
  1. The Core liquidity is determined applying a stress test scenario that presumes a political crisis in EU and a credit spread widening, more severe50for the periphery, but material also for core and semi-core countries

Fineco - a fully independent public company starting from May 2019

Strategy and Business model

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

Transitional Arrangements with UniCredit Group

Fineco and UniCredit have agreed to enter into certain transitional arrangements to ensure full continuityand an orderly and smooth transition from a regulatory, liquidity and operational standpoint

INVESTMENT

STRATEGY

  • No change in the investment policyenvisaging an increasing diversification of financial investments as the existing stock of UniCredit bonds progressively runs off by 2024
  • UniCredit has granted a financial collateralin favor of Fineco to secure the credit risk exposures towards UniCredit andneutralize the capital impacts and risk concentration limits

INFRAGROUP

SERVICES

TRADEMARK

  • UniCredit will continue to provide, on an interim basis, certain servicesin order to allow Fineco to act in full operational continuity. The contract for customers' access to banking services through smart ATMs and physical branches has been extended for 20 years
  • Fineco has exercised at the end of 2019the option for the purchase of its brand at the price of €22.5mln plus VAT

51

Benefits from being a fully independent public company

  • More liquid stockwith more than doubled average volumes
  • Increased efficiencyas we now aremore flexible and agile to adapt to a fast changing environment in terms of:

MARKETING AND

COMMUNICATION

TECHNOLOGY

TREASURY

More freedomin terms of marketing strategy, tone of voiceand communication on social media(very important for

Brokerage)

Possibility to fully exploit our operational efficiency to offer a better customer experiencewith more flexibility (e.g. Strong Customer Authentication)

Improved efficiency and flexibility in our decision making, withno need to increase risk profile

52

Delivering on industrial measures

Innovation key for our best-in-class Customer Experience

Improving an already best-in-class Customer Experience

97%

n.1

APP

BANK

4.6

CUSTOMER

IN TERMS OF

+ 210,000 ratings

SATISFACTION (1)

REPUTATION (2)

Continuous upgrade of our banking platform

Brand new dashboard for credit and debit cards, which will also befully digitalized

€Payments:

  • upgrade of mobile payment services
  • Fineco Paypeer-to-peer: to send and receive money with no need of IBAN code (both on website and on app)

Renewal of our banking homepageboth on the website and on APP with real-time debit/credit data

Simplification of our onboarding processvia mobile by sending the PIN codes by real-time

Our Family Budget Planner, MoneyMap, further enhanced and for freefor all our clients

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

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

53

Preserving our best price/quality ratio

An update on the main outcomes from our Smart Repricing

Competitive landscape (1)

€

Online

Branch

€ 79 avg

€ 123 avg

online costs

branch costs

Webank

0

IWBank (IWConto)

4

89

Widiba(Conto Flat)

20

ING(Conto Arancio)

24

Fineco

25

Poste Italiane(BancoPosta Premium)

30

CheBanca (Yellow)

48

48

B.Generali (BG Deluxe

47

59

Credit Agricole (Smart)

56

91

HelloBank!(Hello! Money)

58

Banca Sella (Websella)

62

161

Banco BPM(YouWelcome NEW)

74

98

B.Mps(Mio Plus)

81

93

BNL(X-Smart)

122

184

UBI Banca (Qubì)

129

152

BPER (Ondemand)

134

166

Deutsche Bank (Smart New)

138

181

B.Mediolanum

146

UniCredit(MyGenius Silver)

184

294

Intesa SanPaolo (Xme)

190

205

54

(1)

Most convenient current accounts. Source: Figures based on publicly available costs for families with average online operations of the main

Italian banks (ICC - Indicatore Complessivo dei Costi). The figures relates to the costs of current accounts reported in brackets.

Brokerage: an effective and timely reshape of our offer

In 1Q20 our Brokerage recorded booming resultsdue to skyrocketing volatility and an in-depth reshape of our offer

  • New optionsallowing customers to exploit volatility also when it is low
  • Optimization of our systematic internalizerwith new products

Multicurrency available in 24h and over the weekend, further enlargement of currencies basket

Repricing of futures

Coming soon: Knock-out options overnight, CFD on cryptocurrencies

Enlargement of the brokerage market client base

No. of customers who started trading since March signal a very high intereston brokerage offer

No. of customers who have started trading is 3x the usual averagewe have seen pre Covid period

The strong number coming from the cluster 0 - 2 month indicates a great performance on our acquisition channel

Account opened:

0 - 2 months ago

2 - 12 months ago

more than 12 months ago

55

Fineco Asset Management in a nutshell

AUM at €13.2bn, of which €8.2bn retail classes (1)

FAM EVOLUTION(25 strategies)

FAM Target: decumulation product to progressively invest in multi-thematic/profile funds

FUNDS OF

FAM Megatrend: multi-thematic fund investing in secular trends

New building blocksboth vertical and based on risk profile

FUNDS

FAM Target Boost: an evolution of the decumulation products for customers' who want

to take advantage of bear market phases

CORE SERIES(30 strategies)

Release ofPremium Share Classes

Additional sub-advisory mandates in pipeline to further enlarge the offer through

FAM SERIES

quality and exclusivity agreements for Fineco clients only

(sub-adviced

funds)

FAM Global Defence: new capital preservation solution

32 strategies

Underlying funds for advisory solutions (both funds of funds and Insurance wrappers)

INSTITUTIONALallowing a better control of the value chain to retain more margins and lower

BUSINESS

customers' TER

40 strategies, including also Passive and new Smart Beta funds

BENEFITS

Quality improvement and time to market for customers and distribution needs

Several efficienciesleveraging on a vertically integrated business model combined with the strong operating efficiency which is in Fineco's DNA

Better risk managementthanks to the look-through on daily basis on funds' underlying assets Win-winsolution: lower price for clients, higher margins

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(1)Figures as of April 30th, 2020

Patent Box

Fineco is the first Bank finalizing the agreement in February 2020

  • The Patent Box is a tax relief regime for companies generating income through the use of intangible assets. Wefinalized the agreementwith the Italian Fiscal Authority on the Patent Box for years 2015/2019
  • Fineco is thefirst Bankto sign the agreement, which relates to both intellectual properties (our platform internally created and developed) and trademark
  • Fiscal benefit for the 5 yearsis ~22mln(recorded in our 2019 Financial Statement), of which ~5mln related to trademark
  • For2019,the fiscal benefit related to intellectual properties is~3.5mln
  • The Bank applied in order to renew the fiscal benefit on intellectual properties for the next 5 years.The renewal of the trademark is excluded due to regulation.
  • The Italian Tax Revenue Agency has confirmed our renewal - as regards the software - of the regime for2020-2024. As prescribed by law, the Tax Authorities now have to officially validate the use of the methodology agreed for the period 2015-2019. In the meantime, we will assume the same methodology, considering that we have defined our agreement with Revenues Agency few months ago and we don't expect significant changes

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Additional Tier 1

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

€200 mln AT1 issued in January 2018

€300 mln AT1 issued in July 2019

  • On January 23rd, 2018 the Bank issued a €200mlnperpetual AT1
  • Coupon fixed at4.82%for the initial 5.5 years
  • Private placement, fully subscribed by UniCredit SpA
  • Semi-annualcoupon
  • Coupon (net of taxes) will impact directly Equity reserves
  • On July 11th, 2019 Fineco issued a €300mlnperpetual AT1 in order to maintain the Leverage Ratio above 3.5% after the exit from the UniCredit Group
  • Coupon fixed at5.875%(initial guidance at 6.5%) for the initial
    5.5 years
  • Public placement, with strong demand (9x, €2.7bn), listed in Euronext Dublin
  • Semi-annualcoupon
  • Coupon (net of taxes) will impact directly Equity reserves
  • The instrument was assigned aBB- rating by S&P

Italian AT1 yield at first call date

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Finecobank S.p.A. published this content on 11 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 May 2020 12:18:06 UTC