Banca Generali S p A : Investor Presentation 1H 2021

INVESTOR PRESENTATION

1H 2021 RESULTS

AGENDA

Our Vision:

To Be the No.1 Private Bank unique by Value of Service, Innovation and Sustainability

Preliminary remarks

1H 2021 Financial Results

Net Inflows, Assets and recruiting

Business update and closing remarks

Appendix

2

1H 2021 RESULTS: EXECUTIVE SUMMARY

SOUND OPERATING TREND

Business trend: ongoing positive momentum

• Total Assets at €80.4bn (+17% YoY). Assets under Advisory at €6.8bn (+33%)
• Total Net inflows at €3.8bn (+35% YoY), Net Inflows in Managed Solutions at €2.5bn (+105%)
• FAs network steadily growing by size (2,139 FAs, +4% YoY) and value (Assets/FA at €37.1m, +14%)

Financial Results: sound results despite large one-off provisions

• 1H21 reported net profit at €190.1m (+44%), 1H 2021 recurring net profit at €83.3m (+23%)
• 2Q21 Reported net profit at €54.7m (+3%) including an €80.0m one-off provision to protect clients' investments
• 2Q21 Recurring net profit at €46.0m (+32% YoY, +23% vs. 1Q21) as underlying profitability improves steadily

Capital position: solid even after incorporating more than €500 million for dividends

• CET 1 ratio at 15.3%, TCR at 16.5% and leverage ratio at 4.3% - assuming allocation to dividend of 80% of 1H21 net profit
• €1.25 dividend floor on 2021 results has already been allocated, adding to €3.3 approved for the financial years 2019/2020 1
• DPS payment dates expected to occur in 4Q21 (€2.7/share) and 1Q22 (€0.6/share) following BoD's verifications that all requisites are met

3	NOTE: 1) Already approved by Banca Generali's AGM on 22 April 2021

STATEMENT ON THE 2Q 2021 ONE-OFF PROVISION

Purchase offer

Assumptions for the

provision

Facts

Full protection

of clients' investments

In September, Banca Generali will launch an offer to its clients to purchase all senior notes of the outstanding securitizations of health receivables for a total of €478m. All clients will receive a sum not lower than the sum invested, net of repayments and coupons received

With the aim of protecting the clients against potential loss, Banca Generali has made a prudent provision for €80m. The assumptions for the definition of the amount of the provision are:

• A fair value of the notes lower than the purchase value offered to clients
• A 100% take-up of the purchase offer

This decision has been taken in the light of:

• Some critical issues that emerged in the procedures for the recovery of health receivables, also related to the long pandemic situation
• An in-depth analysis of the portfolio of receivables carried out with the support of a sector specialist, which identified a fair value and quality lower than the one expected

Although Banca Generali only acted as a Placement Agent, it has nevertheless decided to take on this commitment to protect its clients' investment, leveraging on its capital strength and solid financial results. The investments of Banca

Generali's clients will thus be fully protected.

4

RESULTS AT A GLANCE

BEST INTERIM RESULTS DESPITE LARGE ONE-OFF CHARGE

(€ mil)		1H 20		1H 21	% Chg
Net Interest Income	42.4	43.9	3.5%
Net income (loss) from trading activities and Dividends	8.4	11.4	35.5%
Net Financial Income	50.8	55.3	8.8%

Comments

Sound Banking Income (+43%)

 Net Financial Income (+9%) supported by a sticky NII and

buoyant trading income leveraging on volatility of bond markets

Gross recurring fees

Fee expenses

Net recurring fees

Variable fees

Total Net Fees

Total Banking Income

Staff expenses

Other general and administrative expense Depreciation and amortisation

Other net operating income (expense)

382.0

-203.8

178.2

73.2

251.4

302.2

-51.3

-44.9

-15.5

2.2

449.2 17.6%

-236.8 16.2%

212.4 19.2%

165.0 n.m.

377.4 50.1%

432.7 43.2%

-53.3 4.0%

-46.9 4.6%

-17.1 10.1%

5.0 n.m.

during 2Q

 Net Recurring Fees (+19%) benefitted from a continued asset

expansion, particularly in Managed Solutions, and lower cost of

growth

 Record contribution from variable fees on growing assets and

positive performance to clients

Strong operating profit (+66%)

 Operating costs (+2.7%) hardly changed in absolute value,

despite the sharp increase in business volumes. Cost income

Total operating costs	-109.4	-112.3	2.7%
Cost /Income Ratio		31.1%		22.0%	-9.1 p.p.
Operating Profit	192.8	320.4	66.1%

ratio (net of performance fees) decreased to 35% (from 40%)

Large non recurring, non-operating charges (+40%)

Net adjustments for impair.loans and other assets Net provisions for liabilities and contingencies Contributions to banking funds

Gain (loss) from disposal of equity investments

Profit Before Taxation

Direct income taxes

-4.7

-14.4

-4.0

-0.1

169.7

-37.7

-4.1-13.1%

-98.6 n.m.

-6.1 52.7%

-0.1 45.3%

211.5 24.6%

-21.4-43.2%

• Higher non-operating charges primarily linked to FA loyalty plan and higher contributions to banking funds
• One-offprovision of €80 million as already described

Solid Net profit, after all (+44%)

 Tax-rate benefitted from a one-off €13.1m tax contribution (see

Tax rate	22.2%	10.1%	-12.1 p.p.
Net Profit		131.9		190.1	44.1%

slide 7)

5