PR: 9M Results 2021

PRESS

RELEASE

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Results at 30 September 2021

Record high net profit for the period, driven by business expansion and operations scalability

• Net profit: €270.9 million (+38%)
• Recurring net profit1: €132.0 million (+18%)
• Total revenues: €612.9 million (+37%)
• 'Core' operating costs2: €153.4 million (+4.6%)

Total assets and net inflows grew

• Total assets: €82.1 billion (+17%)
• Assets under Advisory: €6.9 billion (+29%)
• Nine-monthnet inflows: €5.5 billion (+34%)
• Net inflows at the end of October: €6.0 billion
  (+29%)

Payment of the first tranche of the 2019- 2020 dividends approved

• First dividend of €2.7 per share with ex date 22 November 2021
• Capital solidity confirmed with CET1 ratio at 15.2% and TCR at 16.4%

Milan, 4 November 2021 - The Board of Directors of Banca Generali approved today the consolidated results at 30 September 2021.

1. Net of performance fees and income (losses) from trading, M&As, Covid-19-related costs and other one-off items.
2. Operating costs net of sales personnel costs and other one-offs. It should also be noted that the mandatory

contributions paid by the Bank, pursuant to the DSGD and BRRD for the protection of the banking system
(contributions to the Italian Interbank Deposit Protection Fund, European Single Resolution Fund and the Italian
National Resolution Fund for previous interventions) have been reclassified to a dedicated heading below
operating result.	1 / 11

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Michele Seghizzi

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Giuliana Pagliari

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giuliana.pagliari@bancagenerali.i t

Chief Executive Officer and General Manager Gian Maria Mossa stated: "We continue to outgrow our reference market and we are about to close the best year ever in the Bank's history, ensuring solidity and top industry returns for all stakeholders. These excellent results confirm the quality of our unique business model, centred on the quality of our professionals, who increasingly represent a point of reference for both our private clients and all households looking for wealth protection advisory. The continuous innovation of investment platforms, services and solutions and the drive toward digitalisation form the basis of our business model, as they enable a quality relationship with our clients and make sustainability the key element of our offer. Professionalism, customer proximity and customisation are part of our culture and vision, as confirmed by the trust our clients place in us and the ensuing net inflows. We therefore look towards the end of the year with optimism and great enthusiasm, in view of the challenges and ambitions linked to the new three-yearplan we are preparing for the beginning of next year."

RESULTS AT 30 SEPTEMBER 2021

In the first nine months of 2021, net profit amounted to €270.9 million, up 38.4% compared to the same period of the previous year, which had reported a very positive performance. The Bank thus set a new record for the period, despite the extraordinary provisions allocated in the second quarter and the increase in contributions related to banking funds.

The net profit quality, reflected by the recurring component, further improved to €132 million (+18%) compared to the corresponding period of last year. This increase was driven by the business expansion for the period (€82.1 billion; +17% YoY) and the improved asset mix. Recurring profit also grew thanks to the business model scalability and the tight cost discipline, resulting in a record reduction in the cost/income ratio to 34% (net of performance fees).

The Bank's commercial and operating expansion was supported by a capital solidity that continued to exceed the requirements set by the Bank of Italy for the Company in its Supervisory Review and Evaluation Process (SREP).

In further detail:

Net banking income rose to €612.9 million (+ 37%) with a sharp increase in all items.

Net financial income grew significantly to €89.9 million, up 16.5% compared to the same period of the previous year. The increase was chiefly attributable to income from treasury management, and specifically the rebalancing of the Bank's financial investment portfolio. Net interest income declined slightly due to a context of very low interest rates, which negatively impacted reinvestment of maturing assets.

Net fees rose markedly (€523 million; +41%) with a sharp growth of €326.4 million (+21%) in the recurring component.

In detail, the increase in total assets, and particularly in managed solutions, and the initiatives aimed at revenue diversification led gross management fees to grow to €586.9 million (+18%) and

banking and entry fees to €101.5 million (+29%).

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Michele Seghizzi

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Michele.seghizzi@bancagenerali. it

Investor Relations

Giuliana Pagliari

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giuliana.pagliari@bancagenerali.i t

Variable fees rose further to €196.6 million compared to €100.4 million for the same period of the previous year as a result of the market trends and the positive performance generated.

Operating costs amounted to €171.1 million, up 4.4%, fully in line with the three-year targets, while projects aimed at developing the Bank's digital and technological infrastructure continued.

The modest cost increase compared to the Bank's business expansion confirmed the operating leverage potential of the business model. The Bank maintained its outstanding operating efficiency, with a ratio of total costs to total assets at 28 bps (30 bps at year-end 2020) and a cost/income ratio, net of non-recurring items such as variable fees, at 34.4% (23.7% on a reported basis).

Operating result totalled €441.8 million, up 55.9% compared to the previous year.

Provisions and net adjustments totalled €110.4 million due to the recognition of the extraordinary €80 million provision for the notes purchase offer - successfully completed on 7 October 2021 - regarding the securitisations of healthcare receivables and reserved for professional clients, for a notional value of €478 million. Net of the extraordinary provision, the item would have amounted to €30.4 million, up compared to €21.2 million for the same period of last year, mainly due to higher provisions for loyalty plans following the robust growth of commercial results for the period.

Contributions related to banking funds (Italian National Resolution and Interbank Deposit Protection Funds) were €14.5 million, up 30.2% compared to the previous year.

The average tax rate - gross of the one-off tax benefit of €13.1 million linked to the redemption of goodwill, trademarks and intangible assets and excluding the lower tax burden associated with the aforementioned extraordinary provision - was 21.4%, in line with medium term expectation.

RESULTS FOR Q3 2021

Net banking income amounted to €180.2 million, up 24%, driven by €114 million net recurring fees, also up 24% thanks to total assets and the improved product mix.

Net financial income was €34.6 million, increasing by 31% mainly due to income from trading activities linked to the financial assets rebalancing and diversification processes.

Variable fees (€31.6 million; +16%) contributed positively, although declining compared to the previous quarters.

Operating costs amounted to €58.7 million, with an 8% increase chiefly attributable to one-off charges linked to the expansion on the Swiss market. Core costs for the period were €52 million, up 4.5% and therefore in line with the projections of the three-year plan.

Net profit for the quarter was at €80.8 million (+27%), net, inter alia, of €8.4 million contributions related to banking funds, which rose by 18% compared to the previous year.

The tax rate for the period was 23.3%.

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CONTACTS:

www.bancagenerali.com

Media Relations

Michele Seghizzi

Tel. [phone]

Michele.seghizzi@bancagenerali. it

Investor Relations

Giuliana Pagliari

Tel: [phone]

giuliana.pagliari@bancagenerali.i t

CAPITAL RATIOS AT 30 SEPTEMBER 2021

At 30 September 2021, the Bank's CET1 ratio was 15.2% and Total Capital Ratio (TCR) was 16.4%, continuing to far exceed the specific requirements set for the Group by the Bank of Italy (CET 1 ratio at 7.75% and Total Capital Ratio at 11.84%, as the minimum required by the SREP - Supervisory Review and Evaluation Process).

It should be recalled that capital ratios for the period were calculated based on the most prudential assumptions set forth by the dividend policies in place3. Accordingly, dividend is projected at far above the €1.25 per share floor established by the said polices.

NOTICE ON 2019-2020 DIVIDEND PAYMENT

In today's meeting, the Board of Directors assessed the satisfaction of the conditions for the payment of the first tranche of dividend, equal to €2.7 per share, for a total of €315,499,420, of which: €289,207,237 calculated on the 2020 net profit and €26,292,183 drawn from previous years' retained earnings.

Having therefore assessed (i) the absence of limits and conditions set forth by the European Central Bank and the Bank of Italy that could conflict with or limit the dividend payment resolved upon by the Shareholders' Meeting, and, in any event, compliance with the supervisory regulations and guidelines applicable from time to time; and that (ii) the Total Capital Ratio at the company and consolidated level continues to exceed the SREP minimum requirements plus a 1.7% buffer, thus equal to 9.7% and 13.5%, respectively, Banca Generali will pay the aforementioned dividend.

In this regard, ex date 22 November 2021, record date 23 November 2021 and payment date 24 November 2021 are confirmed.

With regard to the second dividend, equal to €0.60 per share, for a total of €70,110,982 to be fully drawn from previous' years retained earnings, it bears recalling that the satisfaction of the conditions for the related payment will be assessed by the Board of Directors called to approve the preliminary consolidated results at 31 December 2021, the scheduled date of which will be duly established and disclosed in the 2022 financial calendar in accordance with the statutory and regulatory provisions.

The second dividend will be distributed with ex date 21 February 2022, record date 22 February 2022 and payment date 23 February 2022.

3 The 2019-2021 dividend policy approved by Banca Generali envisages a 70-80% payout ratio of net profit generated in the period, with a floor of €1.25. Dividend distribution is subject to the TCR level defined in the targets of the Risk-Adjusted Framework and cannot exceed a 100% earnings' payout.

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CONTACTS:

www.bancagenerali.com

Media Relations

Michele Seghizzi

Tel. [phone]

Michele.seghizzi@bancagenerali. it

Investor Relations

Giuliana Pagliari

Tel: [phone]

giuliana.pagliari@bancagenerali.i t

COMMERCIAL RESULTS

Total assets amounted to €82.1 billion, up 17% compared to September 2020 (+10% YTD).

In detail, managed solutions (in-house and third-party funds, financial and insurance

wrappers) stood at €42 billion, up 22% compared to September 2020, thus accounting for 51.3% of total assets and increasing by two additional percentage points compared to 48.9% for the previous year.

Assets under Advisory (BGPA) reached €6.9 billion, up 29% compared to September 2020 and accounting for 8.4% of total assets.

Net inflows for the first nine months of 2021 were €5.5 billion, increasing by 34% compared to September 2020. The growth was driven by managed solutions, which more than doubled compared to the previous year reaching €3.7 billion thanks to the Lux IM Sicavs and the insurance and financial wrappers, as they offer greater customisation options.

It should be noted that 75% of net inflows from the beginning of the plan (2019-9M21) was gathered by Banca Generali's existing Financial Advisor network4. The result significantly exceeded the Three-year Plan forecasts of a contribution from the current network equal to 58% of total net inflows.

ESG managed solutions further rose in the third quarter of 2021, with a €223 million increase in net inflows, to €1 billion YTD. Total assets amounted to €6.0 billion, after excluding several strategies of third-party asset managers, pending any indications on the intention of classifying Article 6 funds in accordance with Article 8 or Article 9 pursuant to the new EU Sustainable Finance Disclosure Regulation (SFDR). At 30 September 2021, ESG solutions accounted for 14.3% of managed solutions, up sharply compared to 11% compared to the same period of the previous year.

OCTOBER 2021 NET INFLOWS

Robust net inflows continued in October, standing at €560 million, of which €305 million from managed solutions (funds and financial and insurance wrappers).

Net inflows reached €6 billion YTD, up by 29% compared to the previous year. In addition to the significant volume increase, worth of mention is the quality of net inflows: managed solutions totalled €4.0 billion, twice the value of €2 billion recorded for the same period of the previous year.

All managed solutions showed an outstanding performance, with net inflows of €1.2 billion for Lux IM and €1.2 billion for insurance wrappers. Financial wrappers also recorded excellent net inflows of €528 million, nearly ten times higher than the previous year.

Assets under Advisory (BGPA) reached €7.0 billion at the end of October, up +30% compared to the same period of the previous year.

4 Banca Generali's Financial Advisors, excluding new recruits for the year and the previous year.

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