Credito Emiliano S p A : SREP Requirement 2024

PRESS RELEASE

CREDEM GROUP CONFIRMED AMONG THE BEST BANKS SUPERVISED BY THE ECB FOR CAPITAL SOUNDNESS

• The minimum additional level of capital required by the European Central Bank from the Group (SREP requirement) is confirmed as one of the best in Italy and Europe;

• Capital ratios well above requirements assigned for 2024
• The Group was also confirmed by the European Central Bank as one of the five most resilient banks at a continental level in the event of a negative performance of the economy as part of the stress tests published at the end of July.

The European Central Bank (ECB) has once again confirmed Credito Emiliano's Pillar 2 (P2R) requirement at 1% for 2024, ranking it among the best banks in Italy and in Europe among the major banks directly supervised by Frankfurt.

The P2R requirement is derived from the annual SREP (Supervisory review and evaluation process) analysis, which reaffirmed the soundness of Credito Emiliano's business model and risk management measures.

As a result, the overall capital requirement*, which indicates the minimum level of capital that must be maintained to support the Group's activities and protect depositors, is set at 7.60% for 2024 with respect to the CET 1 ratio. The requirements for the Tier 1 ratio and the Tier Total are respectively set at 9.29% and 11.54%.

As of 30 September 2023, all of the Group's capital ratios are well above the requirements. In particular, the CET1 Ratio at Credemholding level (supervisory perimeter) was equal to 14.8%, with a buffer compared to the SREP requirement that is among the largest in the industry and equal to 716 basis points.

"Capital soundness is a fundamental component of our strategy, which is based on healthy and sustainable growth," declared Angelo Campani, General Manager of Credem. "It is an essential prerequisite for creating value, with a long-term perspective, for all entities with which the Group interacts, thus ensuring that our work has a positive impact on the community and on people's daily lives. Being recognized once again among the best European

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PRESS RELEASE

banks in this area," Campani added, "is further confirmation of the validity of our development path, which we intend to pursue decisively in the future as well."

Furthermore, Credem was confirmed by the European Central Bank among the soundest institutions at continental level also in the context of the stress tests published last 28 July with the aim of verifying the resilience of the European banking industry to adverse scenarios. This result, in particular, placed the Group among the best European institutions, both among those included in the sample of the European Central Bank (ECB) and among those involved by the European Banking Authority (EBA).

In detail, Credem has an impact on the capital ratios, deriving from a potential highly negative prospective economic scenario, of less than -300 bps, which compares with approximately -660 bps of the 41 banks in the reference sample (ECB) and with -460 bps of the 57 banks in the Euro area of the EBA scope (-480 bps the overall average).

The Credem Group, among the leading Italian banking institutions and among the most solid in Europe, is listed on the Italian Stock Exchange and has a total business at the end of September 2023, between total funding and loans, equal to approximately EUR 130 billion.

* This value includes:

1. minimum Own Funds defined by article 92(1)(a) of EU Regulation No. 575/2013 (CRR);
2. capital conservation buffer set by Bank of Italy, amounting to 2.5%;
3. the Pillar 2 requirement of 1% to be held for at least 56.25% in the form of CET1 capital and for at least 75% in the form of Tier 1 capital.
4. the countercyclical capital buffer amounting to 0.0368%

Reggio Emilia, December 1, 2023

Chairman

Lucio Igino Zanon di Valgiurata

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