The Board of directors of Banca Finnat approves the consolidated results from first 9 months of 2021

PRESS RELEASE

BANCA FINNAT BOARD OF DIRECTORS APPROVES CONSOLIDATED RESULTS FROM FIRST NINE MONTHS OF 2021 WITH €4.3 MILLION GROUP PROFIT AND 30.2% CET 1 CAPITAL RATIO

• NET FEE AND COMMISSION INCOME UP 10.2% TO 79.3% OF DEALING MARGIN FROM PREVIOUS 71.7%.
• DEALING MARGIN AMOUNTS TO €48.6 MILLION COMPARED TO €48.8 MILLION AT 30 SEPTEMBER 2020 (-0.4%).
• NET IMPAIRMENT LOSSES ON CREDIT RISK DOWN FROM €2.2 MILLION AT 30 SEPTEMBER 2020 TO €154 THOUSAND.
• CONSOLIDATED NET INCOME UP 3.4% TO €4.3 MILLION FROM €4.2 MILLION IN THE FIRST NINE MONTHS OF 2020.
• OVERALL ASSETS UNDER MANAGEMENT REACH €17.3 BILLION, WITH OVER 12% GROWTH ON THE END OF 2020 AND A 28% RISE IN INDIRECT DEPOSITS.
• CONSOLIDATED CET 1 CAPITAL RATIO AT 30.2%.

Rome, 12 November 2021 - The Banca Finnat Euramerica S.p.A. board of directors, which met today, examined and approved the Consolidated Interim Report dated 30 September 2021. The aforementioned Report will be published on the Company's corporate website www.bancafinnat.itunder Investor Relations/Regulated Information/Statements, on the authorised SDIR-NIS/NIS Storage platform (www.emarketstorage.com) and made available on the Borsa Italiana S.p.A. website (www.borsaitaliana.it).

Consolidated results from first nine months of 2021

• The Dealing Margin amounted to €48,562 thousand compared to €48,757 thousand at 30.09.2020 (-0.4%). The overall decrease, equal to €195 thousand, is attributable to:
• • A €3.56 million rise (+10.2%) in Net fee and commission income, from €34.95 million at 30.09.2020 to €38.5 million. The Bank accounts for €2.25 million, the subsidiary InvestiRE SGR €1.26 million, and other Group companies €50 thousand of this increase.
  • A €4.57 million drop (-36.4%) in Net interest income (from €12.55 million at 30.09.2020 to €8 million), attributable to the lower contribution from treasury transactions and from the banking book.
  • Trading income rose to €1.4 million from a €800 thousand trading expense in the first nine months of 2020.
  • Other Financial assets mandatorily measured at fair value recorded a net loss of €124 thousand, compared to a €529 thousand loss at 30.09.2020.
  • A €1.07 million drop in Dividends and similar income (from €1.79 million at 30.09.2020 to €722 thousand).
  • A €719 thousand drop in Net gain from disposal of financial assets at amortised cost and financial assets at fair value through other comprehensive income (€81 thousand compared to €800 thousand at 30.09.2020).

The income statement also highlights:

• Net impairment losses for credit risk of €154 thousand associated with impairment losses on Financial assets at amortised cost of €130 thousand and Financial assets at fair value through other comprehensive income of €24 thousand, compared to overall impairment losses of €2.2 million at 30.09.2020.
• Operating Costs rose by 6.2% to €39.6 million from €37.3 million at 30.09.2020. This rise was driven by a 7.8% increase in labour costs (from €25.8 million at 30.09.2020 to €27.9 million) due both to the effect of high-profile additions to the

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workforce and the allocation of variable costs provided for under the incentive scheme.

• Net income on equity investments stood at €326 thousand compared to a €221 thousand loss at 30.09.2020.
• Income taxes of €2.8 million at a 30.6% tax rate, compared to 32.6% (€2.9 million in taxes) at 30.09.2020.
• Group Net Income rose to €4.3 million from €4.2 million at 30.09.2020.
• The Group's Consolidated shareholders equity rose to €223.1 million from €222.3 million at 31.12.2020, with a Regulatory capital of €185.3 million (€184.5 million at 31.12.2020) and a 30.2% CET 1 Capital Ratio (34.9% at 31.12.2020). To mitigate the impact arising from application of the new reporting standard on own funds, the bank opted to adhere to the transitional arrangements. Without this application, own funds would have been equal to €184.1 million with a CET 1 capital ratio of 30%.
• Total Group AUM rose to €17.3 billion - a 12% rise on 31.12.2020 with a 28% increase in indirect deposits.

As of 30 September 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.

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)

Contact information

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

IR Manager:

Gian Franco Traverso Guicciardi - Tel. [phone] - E-mail:[e-mail]

Press office - Comin & Partners:

Giorgia Bazurli- Tel.[phone] - E-mail:[e-mail]

Annex Consolidated Balance Sheet and Income Statement at 30.09.2021

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INCOME STATEMENT

(in thousands of Euros)

			1 January	1 January	1 July	1 July
			30	30	30	30
	Items	September	September	September	September
	2021	2020	2021	2020
10.	Interest and similar income	10,437	14,432	3,092	4,948
20.	Interest and similar expense	(2,459)	(1,883)	(903)	(715)
30.	Net interest income	7,978	12,549	2,189	4,233
40.	Fee and commission income	40,203	36,918	13,244	12,184
50.	Fee and commission expense	(1,698)	(1,973)	(563)	(633)
60.	Net fee and commission income	38,505	34,945	12,681	11,551
70.	Dividends and similar income	722	1,792	-	711
80.	Net trading expense	1,400	(800)	219	(188)
100.	Net gain from disposal or repurchase of:	81	800	37	46
	a)	financial assets at amortised cost	61	64	-	-
	b)	financial assets at fair value through other comprehensive
	income	20	736	37	46
110.	Net losses on other financial assets and liabilities at fair value	(124)	(529)	205	(111)
	through profit and loss
	b) other financial assets mandatorily measured at fair value	(124)	(529)	205	(111)
120.	Total income	48,562	48,757	15,331	16,242
130.	Net impairment losses for credit risk associated with:	(154)	(2,172)	(59)	(354)
	a)	financial assets at amortised cost	(130)	(2,503)	(29)	(491)
	b)	financial assets at fair value through other comprehensive
	income	(24)	331	(30)	137
140.	Net modification gains (losses)	(161)	(185)	(1)	(35)
150.	Net financial income	48,247	46,400	15,271	15,853
190.	Administrative expenses:	(40,843)	(38,055)	(12,479)	(11,852)
	a)	personnel expenses	(27,860)	(25,834)	(8,850)	(8,337)
	b)	other administrative expenses	(12,983)	(12,221)	(3,629)	(3,515)
200.	Net reversals of (accruals to) provisions for risks and charges	159	(77)	29	(10)
	a)	commitments and guarantees given	159	(10)	29	(10)
	b)	other	-	(67)	-	-

210. Depreciation and net impairment losses on property,

	equipment and investment property	(2,553)	(2,550)	(854)		(853)
220.	Amortisation and net impairment losses on intangible assets	(140)	(181)		(49)		(63)
230.	Other operating income, net	3,802	3,610	1,274	1,098
240.	Operating costs	(39,575)	(37,253)	(12,079)	(11,680)
250.	Net loss on equity investments	326	(221)		(82)		(58)
290.	Profit (loss) from continuing operations before taxes	8,998	8,926	3,110	4,115
300.	Income taxes	(2,753)	(2,913)	(973)		(1,333)
310.	Profit from continuing operations after taxes	6,245	6,013	2,137	2,782
330.	Profit for the year	6,245	6,013	2,137	2,782
340.	Profit for the year attributable to non-controlling interests	1,901	1,811	555	643
350.	Profit for the year attributable to the owner of the parent		4,344			4,202		1,582			2,139

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STATEMENT OF FINANCIAL POSITION (in thousands of Euros)

	Assets	30.09.2021	31.12.2020
10.	Cash and cash equivalents	903	711
20.	Financial assets at fair value through profit and loss	33,525	27,867
	a)	financial assets held for trading	8,558	6,847
	c)	other financial assets mandatorily measured at fair value	24,967	21,020
30.	Financial assets at fair value through other comprehensive income	313,704	341,825
40.	Financial assets at amortised cost	1,616,649	1,378,338
	a)	loans and receivables with banks	158,442	124,563
	b)	loans and receivables with customers	1,458,207	1,253,775
70.	Equity investments	10,986	10,694
90.	Property, equipment and investment property	20,600	17,899
100.	Intangible assets	31,138	31,170
	of which:
	-	goodwill	28,129	28,129
110.	Tax assets	8,930	10,319
	a)	current	71	809
	b)	deferred	8,859	9,510
130.	Other assets	15,856	23,310
	Total assets	2,052,291	1,842,133

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