Credem: General shareholders’meeting approved 2017 results. Net profit +41.4% at 186.5 Euro/mln, dividend +33% at 0.20 Euro per share. The bod appointed Lucio Igino Zanon di Valgiurata as new Chairman

CREDEM: GENERAL SHAREHOLDERS' MEETING APPROVED 2017 RESULTS. NET PROFIT +41.4% AT €186.5 MLN, DIVIDEND +33% AT 0.20 EURO PER SHARE. THE BoD APPOINTED LUCIO IGINO ZANON DI VALGIURATA AS NEW CHAIRMAN

2017 results approved with Net Profit at €186,5 million (+41.4% YoY) and dividend at 0.20 euro per share (+33% YoY)

New Credem's Board of Directors appointed for 2018-2020

Board of Directors, held after the Shareholders' Meeting, appointed Lucio Igino Zanon di Valgiurata as Chairman, Enrico Corradi and Luigi Maramotti as Deputy Chairmen

Credem's General Shareholders' Meeting, chaired by Giorgio Ferrari, approved today the 2017 financial statements and the distribution of a dividend of €0.20 per share, 33% higher compared to the previous year. The dividend will be payable from May 16th, 2018, with shares going ex-div on May 14th, 2018 and record date on May 15th, 2018. Total dividends to be paid to shareholders reached €66.2 million, for an overall amount of €165.5 million paid over the last three years(1).

Shareholders' Meeting also appointed the Board of Directors for fiscal years 2018-2019-2020 with the slate voting system ("voto di lista"). The designated Directors were: Claudia Alfieri, Riccardo Bruno, Enrico Corradi, Giorgio Ferrari, Giorgia Fontanesi, Luigi Maramotti, Alessandro Merli, Ernestina Morstofolini, Benedetto Giovanni Maria Renda, Paola Schwizer, Giovanni Viani, Lucio Igino Zanon di Valgiurata.

In accordance with the supervisory provisions, the General Shareholders' Meeting also approved the Group's remuneration policies carried out in 2017 and proposed for 2018, which define the criteria and the terms of the compensation schemes designed for board members, employees and staff of Credito Emiliano and all the controlled companies. The remuneration plans based on shares and aimed at Credem Group's "key personnel" were approved and the related details were communicated on March 15th, 2018, on the occasion of the 2017 Credem Group Financial Statements' approval and are therefore available on the websitewww.credem.it.

Credem's Board of Directors, held after the Shareholders' Meeting, appointed Lucio Igino Zanon di Valgiurata as Chairman and Enrico Corradi and Luigi Maramotti as Deputy Chairmen. On the basis of the provided documentation, independency requirements - as defined by art. 148(3) of TUF and art. 3 of Codice di Autodisciplina delle Società Quotate - were met for Directors Riccardo Bruno, Alessandro Merli, Ernestina Morstofolini, Paola Schwizer.

Lucio Igino Zanon di Valgiurata declared: "I'm honored to be given this appointment and proud of how Credem Group was able to deliver outstanding results continuously over the years. My designation is a choice of continuity and I would like to express - also on behalf of the Board of Directors - our special thanks to Giorgio Ferrari, who played an extremely valuable role over the last 30 years of Presidency, leading the Group to achieve a healthy growth through his vision, his foresight, his ability to listen and his wisdom, making Credem one of the most sound, profitable and reliable groups within the industry. I feel a major responsibility because the competitive landscape poses numerous and

complex challenges. Nevertheless, I do believe that the Group is in its best conditions to face such challenges, aiming for more and more ambitious achievements".

Giorgio Ferrari declared: "The years spent in the bank's Presidency have been extremely rewarding because, even if challenged by very difficult moments due to the financial market evolution, the Group has always found the gateway to face competition and to create value over time. I believe our strength lies in the company values and in the focus on all of our stakeholders: clients, employees, shareholders, suppliers and civil society. We have come a long way because our people grew together with our numbers, and I think that is the best competitive advantage for our future. My heartfelt thanks to all the Directors for the constant support I was given and my warmest wishes to Lucio Igino Zanon di Valgiurata, together we shared years of strong commitment to the Board of Directors".

The composition of the BoD Internal Committees was defined as follows:

• - Executive Committee: Enrico Corradi, Giorgio Ferrari, Giorgia Fontanesi, Luigi Maramotti; the Chairman of the Executive Committee will be elected in its first meeting;

• - Group Risk Committee: Paola Schwizer (Chairwoman), Riccardo Bruno, Alessandro Merli, Lucio Igino Zanon di Valgiurata;

• - Group Nomination Committee: Ernestina Morstofolini (Chariwoman), Alessandro Merli, Lucio Igino Zanon di Valgiurata;

• - Group Remuneration Committee: Ernestina Morstofolini (Chairwoman), Paola Schwizer, Lucio Igino Zanon di Valgiurata;

• - Independent Directors Committee: Alessandro Merli (Chairman), Riccardo Bruno, Ernestina Morstofolini, Paola Schwizer.

The information on personal and professional background of the new Board members together with the slate ("lista") are available on the websitewww.credem.it - section: "Governance - Assemblee".

In 2017 Credem Group registered the following consolidated results: capital soundness at the highest level in the industry, with a CET1 Ratio(2) at 13.69%, more than 6 percentage points above the minimum 2018 Srep requirement(3) at 7.375%; profitability furtherly improved, with a consolidated Net Profit that grew by 41.4% YoY at €186.5 million (despite the €19.8 million contribution, gross of fiscal effect, for the national and European banks' rescue funds); loans to customers(4) up by 4.4% YoY, with an asset quality among the best in the industry (Gross NPL ratio at 5.2%); continuous investments in people with 256 hirings(5); steady increase in the number of new customers(6) (more than 100 thousands new customers acquired in 2017) and in the Group customers' funding(4) (+€4.1 billion YoY).

At the end of December 2017 the Group's distribution network consisted of 691 branches, corporate centers and financial stores, with 6,140 employees, 820 financial advisors with mandate, 207 Creacasa agents and 98 agents with exclusive mandate for "salary backed loans".

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In accordance with paragraph 2 of Article 154-bis of the Consolidated Law on Finance, the Financial Reporting Manager Paolo Tommasini declares that the accounting information,

both individual and consolidated, contained in this press release correspond to documentary records, ledgers and accounting entries.

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Additional information about Credem and the other companies of the Group are available on Credem websitewww.credem.it and for a commented presentation of 2017 consolidated financial results please visit the Investor Relations section.

NOTES:

• (1) Total 2017 dividends to be paid to shareholders of €66.2 million, compared to €49.7 million in 2016 and €49.6 million in 2015;

• (2) Phased-in figure. By article 11(2), 11(3), and 13(2) of the EU Regulation No. 575/2013 (CRR), banks controlled by a financial holding shall meet the requirements set by such Regulation on the basis of the consolidated accounts of the financial holding. In light of these rules on capital ratios, the consolidation perimeter of the Group changed, within the framework set by the prudential supervision of the regulator. Therefore, capital ratios were calculated on Credemholding, which holds 77.3% of Credem Spa share capital;

• (3) Such value includes: i) the minimum requirement as stated by the Art. 92(1)(a) of the Capital Requirements Regulation (CRR) 575/2013; ii) the requirement fixed by the Bank of Italy as capital conservation buffer and equal to 1.875% in 2018 as defined in the Circular No. 285 issued on 12/17/2013 - 18° update (http://www.bancaditalia.it/compiti/vigilanza/normativa/archivio-norme/circolari/c285/Aggiornamento-18-041016.pdf); iii) the additional requirement under Art. 16(2)(a) of Directive 1024/2013, requested by the ECB and equal to 1%; iv) the coefficient of the countercyclical capital reserve requested by the Bank of Italy and equal to 0% for the second quarter 2018 (http://www.bancaditalia.it/compiti/stabilita-finanziaria/politica-macroprudenziale/ccyb-2-2018/index.html)

• (4) Loans to Customers do not include repos with the Cassa di Compensazione e Garanzia. Group's Direct Deposits include the contribution of all companies belonging to the banking group, while Insurance Reserves include Credemvita's technical reserves and financial liabilities valued at fair value. Regarding Customers' Funding, bonds issued to institutional investors and indirect deposits from financial institutions are deducted from the total. Group Customers' Funding includes Insurance Reserves.

• (5) Data referred to Credem Spa only. Hirings net of intra-group transfers and rehirings;

• (6) Data referred to Credem Spa only.

ALTERNATIVE PERFORMANCE INDICATORS

Credem Group adopts a set of Alternative Performance Measures ("APMs") in order enhance a deeper comprehension of the information regarding the economic and financial trends. At the following link is available a table illustrating the definition and the calculation of each APM used by the Group, as well as a reconciliation with the lines in the financial reports and related comments.

Reggio Emilia, April 27th, 2018

CREDITO EMILIANO SPA
(Chairman)
Lucio Igino Zanon di Valgiurata
Contacts:
Media Relations Credem	Investor Relations Credem
[phone] - 0522 582075	[phone] - 3611
[e-mail]	[e-mail]

www.credem.it