Banca Finnat Euramerica S p A : Board Of Directors Approves Separate And Consolidated Financial Statements For 2021

PRESS RELEASE

BANCA FINNAT BOARD OF DIRECTORS APPROVES

SEPARATE AND CONSOLIDATED FINANCIAL STATEMENTS FOR 2021

• GROUP PROFIT RISES SIGNIFICANTLY FROM €5.1 MILLION AT 31.12.2020 TO €6.1 MILLION
• TOTAL INCOME STANDS AT €67.5 MILLION COMPARED TO €68.2 MILLION AT 31.12.2020 BENEFITING FROM AN 11% RISE IN CONSOLIDATED NET FEE AND COMMISSION INCOME AGAINST A 37% DROP IN NET INTEREST INCOME
• IMPAIRMENT LOSSES ON FINANCIAL ASSETS DROP FROM €5.2 MILLION TO €1.1 MILLION
• TOTAL GROUP'S ASSETS UNDER MANAGEMENT AT €18.1 BILLION
• CET 1 CAPITAL RATIO AT 31.1%

Rome 21 March 2022 - The Banca Finnat Euramerica S.p.A. board of directors, which met today, examined and approved the Consolidated and the Separate Financial Statements relating to 2021 drawn up in accordance with IAS/IFRS international accounting standards. Data are confirmed as in line with that approved by the board of directors on 10.02.2022 and announced to the media using the legal channels. The board also examined and approved the Report on Corporate Governance and the ownership structure pursuant to art. 123 bis of Leg. Dec. 24 February 1998 no. 58, the Remuneration Report pursuant to art. 123 ter of Leg. Dec. 24 February 1998 no. 58 and art. 84 quater of Consob Regulation no. 11971/1999, and the 2022 Incentive Plan and the Remuneration Policies for Directors, Employees and Consultants not bound by an employment relationship.

All documents will be made available to the public as envisaged by law at Banca Finnat headquarters in Piazza del Gesù, 49, Rome; on the authorised SDIR-NIS/NIS storage platform (www.emarketstorage.com) and under Investor Relations/Corporate Governance and Investor Relations/Regulated Information on the Company's website (www.bancafinnat.it). The separate and the consolidated financial statements at 31

December 2021 will also be made available on the Borsa Italiana S.p.A website (www.borsaitaliana.it).

Consolidated results 2021

• Total Income fell to €67.5 million from €68.2 million at 31.12.2020 (down 1%); this was positively impacted by an 11% rise in Net fee and commission income (from €49.4 million at 31.12.2020 to €54.9 million), in particular due to the 17% rise in Net fee and commission income related to Banca Finnat thanks to the contribution of financial advisory, brokerage and corporate finance services, plus a 7% growth in revenues from the subsidiary InvestiRE Sgr. The Total Income was also positively affected by Net Trading Income, which grew from negative €253 thousand at 31.12.2020 to €1.5 million in the positive, as well as Net Income from Financial assets at fair value up to €17 thousand from negative €399 thousand at 31.12.2020, despite the €1.07 million drop in Dividends and similar income (from €1.8 million at 31.12.2020 to €722 thousand) and €1.27 million lower Profit on disposal of Financial assets (from €1.45 million at 31.12.2020 to €179 thousand).
  Net interest income fell by 37%, from €16.2 million at 31.12.2020 to €10.2 million, mainly due to a drop in the contribution of transactions on the reverse repurchase agreements portfolio.
• Net Impairment Losses on credit risk from financial assets fell to €1.1 million from €5.2 million at 31.12.2020. This change is mainly caused by lower analytical adjustments on non-performing positions carried out by the Bank while maintaining the coverage rate of non-performing receivables unchanged.
• Operating Costs rose to €53.9 million from €51.1 million at 31.12.2020; the increase is mainly due to personnel costs, up from €36 million at 31.12.2020 to €38 million as a result of rising fixed and variable pay.
• Taxes reflected a tax rate of 28.9%, down from the previous 32.75%.
• Group Net Income rose significantly from €5.1 million at 31.12.2020 to €6.1 million, a 20.4% increase.
• Total Group's Assets under Management stand at €18.1 billion.

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The Group's capital strength is confirmed by shareholders equity of €227.2 million,

up from €222.3 million at 31.12.2020. The consolidated regulatory capital stands at €189.4 million (184.5 million at 31.12.2020), with a consolidated CET 1 Capital Ratio of 31.1% (34.9% at 31.12.2020) calculated based on the transitional arrangements envisaged following the entry into force of the new reporting standard IFRS 9 and in compliance with the waiver granted by EU Regulation 2020/873 (art. 473bis, section 7bis). Without these transitional arrangements, the consolidated CET 1 Capital Ratio would be equal to 31%.

As of 31 December 2021 there were 28,810,640 treasury shares in the portfolio (28,810,640 on 31 December 2020), equal to 7.9% of the Bank's share capital.

Dividend

The board of directors voted to propose at the shareholders' meeting the distribution of a unit dividend per share equal to €0.012.

Convocation of Ordinary Meeting

Finally, the board of directors granted the Chair a mandate to convene the ordinary general meeting of shareholders in a single call at the headquarters on 28 April 2022, as indicated in the corporate events calendar for 2022. The notice of convocation of the general meeting and the related documentation will be published within the terms and according to the procedures provided for by current laws and regulations.

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The financial reporting manager in charge of drawing up corporate accounts (Giulio Bastia) declares, pursuant to article 154 bis(2) of the T.U.F., that the accounting information given in this press release complies with the accounting records, books and entries.

(PURSUANT TO ART. 66 OF CONSOB RESOLUTION NO. 11971 OF 14 MAY 1999)

For further information:

Banca Finnat Euramerica S.p.A. (www.bancafinnat.it):

IR Manager:

Gian Franco Traverso Guicciardi - tel. [phone] [e-mail]

Press office - Comin & Partners:

Giorgia Bazurli - tel. [phone] [e-mail]

Encl. Statement of Financial Position, Income Statement and consolidated and separate Statements of Comprehensive Income to 31.12.2021

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STATEMENT OF FINANCIAL POSITION (in thousands of Euros)

	Assets	31.12.2021	31.12.2020
10.	Cash and cash equivalents	115,367	72,655
20.	Financial assets at fair value through profit and loss	35,459	27,867
	a)	financial assets held for trading	9,327	6,847
	c)	other financial assets mandatorily measured at fair value	26,132	21,020
30.	Financial assets at fair value through other comprehensive income	345,869	341,825
40.	Financial assets at amortised cost	1,339,422	1,306,394
	a)	loans and receivables with banks	54,372	52,619
	b)	loans and receivables with customers	1,285,050	1,253,775
70.	Equity investments	10,385	10,694
90.	Property, equipment and investment property	19,896	17,899
100.	Intangible assets	31,089	31,170
	of which:
	-	goodwill	28,129	28,129
110.	Tax assets	9,993	10,319
	a)	current	74	809
	b)	deferred	9,919	9,510
130.	Other assets	38,408	23,310
	Total assets	1,945,888	1,842,133

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