FinecoBank S p A : PR - FY21 Results

Results at December 31st, 2021 approved

FURTHER CHANGE OF PACE IN THE GROWTH PATH

WITH RECORD NET PROFIT AND REVENUES IN 2021

EFFECTIVE AND SUSTAINABLE BUSINESS MODEL

STRONG BOOST IN ASSET UNDER MANAGEMENT

• Strong growth in net profit: €349.2 million (+7.6% y/y1)
• • Total revenues: €804.5 million (+7.4% y/y1)
  • • • Cost/income ratio: 32.2%
    • Solid Capital Position: CET1 at 18.80%
    • Proposed dividend: €0.39 per share

FIGURES AT JANUARY 31st, 2022

Net sales in the month of January at €673 million, o/w AUM at €329 million

Estimated brokerage revenues in the month of January at €19 million

Milan, February 9th, 2022

The Board of Directors of FinecoBank S.p.A. has approved the results as of December 31st, 2021. Alessandro Foti, CEO and General Manager of FinecoBank, stated:

"Fineco recorded a very strong growth in 2021, with record net profit and revenues. These results confirm a further change of pace in our growth path, strengthened by the effectiveness and solidity of our business

1 2021 net profit, equal to €380.7 million, is represented net of non-recurring items recorded in the period: +32.0 million net related to the fiscal realignment of the intangible asset recorded in Financial Statement as of December 31st, 2019, under the art. 110 of the Legislative Decree 104/2020; €-0.7 million gross (€-0.5 million net) valuation related to the Voluntary Scheme fair value in the fourth quarter.

Figures net of non-recurring items recorded in the 2020: €-1.4 million gross (€-1.0 million net) valuation related to the Voluntary Scheme fair value, of which €-1.2 million gross (€-0.8 million net) in the first quarter of 2020 and €-0.2 million gross (€-0.2 million net) in the third quarter of 2020.

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model able to successfully face all market phases. A path based on quality of offer, operating effectiveness, but especially on an approach focused on transparency and great respect of customers. Together with our financial advisors, we've developed some initiatives to stimulate customers with investment strategies aimed to invest liquidity. In addition, Fineco Asset Management's strong growth and acceleration in the expansion of its offer of investment solutions has allowed the Group to be in the sweet spot to catch all the opportunities arising in the coming year. January net inflows results confirm the strong boost of asset under management even in a high volatility context, and on the other side, the growing interest towards market interaction through our platform, which has been confirmed leader in Italy in retail segment. All this makes up look forward with great optimism".

FINECOBANK

2021

HIGHLIGHTS

UPDATE ON INITIATIVES

• Revenues1 at €804.5 million, +7.4% y/y led by the Investing area (+29.8% y/y), thanks to the growing contribution of Fineco Asset Management, to the increase of Asset under Management, and to the increase in Investing net margins
• Operating costs at €258.9 million, +6.5% y/y (+4.4% y/y2). Cost/Income ratio1 at 32.2%, confirming the Bank's operational efficiency
• Net profit1 reached a new record-high at €349.2 million, up +7.6% y/y compared to 2020 (which was the best result ever), despite higher contribution to systemic charges (€-40.0million compared to €-26.8million in 2020)
• TFA at €107.9 billion, +17.7% y/y thanks to the contribution of high quality net sales, equal to €10.7 billion (+14.7% y/y). Net sales in Asset Under Management stood at €7.3 billion compared with €4.3 billion in the same period of 2020, up by +69.8% y/y
• Fineco Asset Management reaches €24.8 billion of TFA, of which €15.1 billion in retail classes (+43.6% y/y), and €9.7 billion in institutional classes (+67.3% y/y). FAM is proceeding with the activities related to its strategic discontinuity, which will allow it to take more control of the value chain
• 112,091 new customers acquired, +19.1% y/y
• Activities continued to develop Fineco Asset Management, which is experiencing a strong acceleration in the expansion of its offer of investment solutions. After the strong interest by clients for its FAM Target China, ESG Target Global Coupon and for Global Inflation Response, the Asset Management company is launching around 15 new strategies to answer even better and more effectively to customers' needs. Furthermore, Fineco Asset Management will widen its offer with new equity and sustainable solutions
• The process of reshape of the brokerage offer is continuing after the launch of the leveraged certificates, which allows the Bank to become issuer, market maker and distributor through its platform, vertically integrating the business
• Fineco keeps on developing its presence in UK, improving the awareness on the

1. Net of costs strictly related to the growth of the business, mainly: FAM (-4.2 mln y/y) and marketing expenses related to UK (-1.1 mln y/y).

market of its offer, which is now complete

TOTAL FINANCIAL ASSETS AND NET SALES

Total Financial Assets as of December 31st, 2021 amounted to €107.9 billion, up 17.7% compared to December 2020. Stock of Assets under Management was €55.5 billion, up by 22.2% y/y, assets under custody amounted to €23.0 billion (+25.4% y/y), while the stock of direct deposits amounted to €29.5 billion (+5.3% y/y).

In particular, the TFA related to Private Banking customers, i.e. with assets above €500,000, totalled €48.8 billion, up 26.3% y/y.

In 2021, total net sales amounted to €10.7 billion (+14.7% y/y), again proving to be solid, of high quality, and no need of short-term commercial policies. The asset mix shifted positively towards asset under management, standing at €7.3 billion (+69.8% y/y). Assets under custody amounted to €1.9 billion (-24.4% y/y), while direct deposits were equalled to €1.5 billion (-40.9% y/y).

Since the start of the year, inflows into "Guided products & services" reached €6.8 billion, confirming customer appreciation. The ratio of Guided Products on total AuM rose to 76% compared to 74% in December 2020.

As of December 31st, 2021, the network was composed of 2,790 Personal Financial Advisors operating through 424 Fineco Centers. Inflows through the PFA network were equal to €9.9 billion in 2021.

As of December 31st, 2021, Fineco Asset Management managed €24.8 billion of assets, of which €15.1 billion were retail class (+43.6% y/y) and around €9.7 billion institutional class (+67.3% y/y).

A total of 112,091 new customers were acquired in 2021 (+19.1% y/y). The total number of customers as of December 31st, 2021 was 1,428,170.

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MAIN INCOME STATEMENT RESULTS AT 31.12.21

Figures and variations in this paragraph and in the next one on quarterly results are shown net of non- recurring items1.

mln	1Q20	2Q20	3Q20	4Q20		1Q21	2Q21	3Q21	4Q21		FY20	FY21		FY21/		4Q21/	4Q21/
Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)		Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)		Adj. (1)	Adj. (1)		FY20		4Q20	3Q21
Net financial income	72.0	75.1	68.6	64.1	75.1	72.8	69.2	62.9	279.7	280.0	0.1%	-1.9%	-9.2%
o/w Net interest income	68.2	70.1	68.6	63.9	61.8	62.5	61.8	61.8	270.7	247.9	-8.4%	-3.3%	-0.1%
o/w Profit from treasury	3.8	5.0	-0.1	0.3	13.2	10.3	7.4	1.1	9.0	32.1		n.s.		n.s.	n.s.
Net commissions	95.9	98.6	92.3	92.6	108.1	106.3	110.1	126.4	379.4	450.8	18.8%	36.5%	14.8%
Trading profit	23.8	25.1	20.5	18.8	23.9	16.7	15.6	18.9	88.2	75.0	-14.9%	0.1%	20.7%
Other expenses/income	0.6	0.8	0.2	0.4	0.5	0.1	-1.5	-0.5	1.9	-1.3		n.s.		n.s.	-65.8%
Total revenues	192.2	199.6	181.5	175.9		207.6	195.9	193.5	207.6		749.2	804.5		7.4%		18.0%	7.3%
Staff expenses	-24.0	-24.9	-24.6	-26.0	-26.2	-26.7	-27.4	-29.3	-99.5	-109.6	10.1%	12.8%	7.2%
Other admin.expenses	-27.4	-28.5	-27.8	-34.3	-30.6	-29.9	-27.6	-34.9	-118.0	-123.1	4.3%	1.7%	26.1%
D&A	-6.1	-6.2	-6.4	-6.8	-6.3	-6.4	-6.4	-7.1	-25.4	-26.2	3.1%	4.7%	10.6%
Operating expenses	-57.5	-59.6	-58.8	-67.2	-63.1-63.0-61.5	-71.3	-243.0	-258.9	6.5%	6.2%	16.1%
Gross operating profit	134.8	140.0	122.7	108.7		144.5	132.9	132.0	136.3		506.2	545.7		7.8%		25.3%	3.2%
Provisions	-1.1	-6.5	-32.0	5.5	-8.2	-5.8	-31.1	-4.9	-34.1	-49.9	46.6%		n.s.	-84.4%
LLP	-1.0	-2.7	0.1	0.2	-0.5	-1.2	-0.4	0.4	-3.3	-1.7	-50.5%		n.s.	n.s.
Profit from investments	-0.1	-3.7	-0.2	-2.3	-0.6	1.8	0.3	-0.4	-6.3	1.1		n.s.	-80.6%	n.s.
Profit before taxes	132.6	127.1	90.7	112.2		135.2	127.7	100.9	131.4		462.5	495.1		7.1%		17.1%	30.2%
Income taxes	-40.4	-38.3	-25.3	-34.0	-40.4	-37.8	-28.3	-39.4	-138.0	-146.0	5.8%	16.1%	39.3%
Net profit adjusted (1)	92.2	88.7	65.3	78.2		94.7	89.9	72.6	91.9		324.5	349.2		7.6%		17.5%	26.7%

Revenues totalled €804.5 million in 2021, increasing by 7.4% compared to €749.2 million of the previous year.

Net Financial Income stood at €280.0 million, in line compared to the €279.7 million recorded in 2020, thanks to profits from Treasury Management, which offset the decrease in Net Interest Income due to the fall in market interest rates.

Net commissions amounted to €450.8 million, increasing by 18.8% compared to €379.4 million in 2020. This increase is mainly due to the higher net commissions related to the Investing area (+29.9% y/y) thanks to the volume effect and the higher contribution of Fineco Asset Management. Banking fees grew at €49.2 million (+43.9% y/y), while Brokerage net commissions stood at € 126.2 million, down (-5.4% y/y) mainly due to the lower volatility in 2021 compared to the peaks recorded in 2020.

Trading profit amounted to €75.0 million in 2021, down (-14.9% y/y) compared to 2020 due to the aforementioned reduced volatility compared to the peak recorded in 2020.

Operating costs in 2021 were well under control at €258.9 million, up 6.5% y/y mainly due for expenses strictly connected to the growth of the business2, net of which the increase in operating costs is equal to 4.4% y/y.

Staff expenses totalled €109.6 million, increasing by €10.1 million mainly due to the increase in the number of employees, which rose from 1,262 as of December 31st, 2020 to 1,305 as of December 31st, 2021 also due to the gradual internalisation of some services following the exit from the UniCredit Group and to the Irish subsidiary Fineco Asset Management, which is preparing to further improve the efficiency of the value chain in the Investing area.

The cost/income ratio net of non-recurring items1 was 32.2%.

Gross operating profit amounted to €545.7 million as of December 31st, 2021, up by 7.8% y/y.

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Other charges and provisions totaled €-49.9 million, increasing compared to €-34.1 million in 2020 mainly due to ordinary annual contribution to the Deposit Guarantee Schemes (DGS), equal to €-32.3 million (compared to €-25.9 million in 2020), and to the contribution to the Single Resolution Fund (€-7.7 million in 2021 and -0.9 million in 2020).

Loan loss provisions amounted to €-1.7 million, also favored by write-backs after the improvement of the update macroeconomic scenario as requested under IFRS9.

The cost of risk is equal to 4 basis points.

Profit on Investments amounted to €1.1 million, as a result of the improvement of the updated macroeconomic scenario as required under IFRS9, which led to write-backs in the period, mainly on the Bank's sovereign exposures.

Profit before taxes stood at €495.1 million, up by 7.1% y/y compared to €462.5 million in 2020.

Net profit for the period was equal to €349.2 million, increasing by 7.6% y/y.

MAIN INCOME STATEMENT RESULTS FOR THE FOURTH QUARTER 2021

Revenues in the fourth quarter totalled €207.6 million, up by 7.3% q/q and by 18.0% y/y.

Net Financial Income stood at €62.9 million, down by 9.2% q/q and by 1.9% y/y.

Net commissions amounted to €126.4 million, increasing by 14.8% compared to the previous quarter and increasing by 36.5% compared to the fourth quarter of 2020, mainly due mainly due to higher Investing commissions (€ 82.3 million, +15.3% q/q and +42.4% y/y).

Trading profit equalled to €18.9 million, up compared to €15.6 million of third quarter of 2021 and compared to €18.8 million in the fourth quarter of 2020.

Total operating costs came to €71.3 million, increasing by 16.1% q/q and by 6.2% y/y, mainly due to the aforementioned higher expenses related to business growth.

Gross operating profit was equal to €136.3 million, increasing by 3.2% q/q and by 25.3% y/y.

Other charges and provisions amounted to €-4.9million.

Loan loss provisions amounted to €0.4 million.

Profits from investments stood at €-0.4million.

Profit before taxes in the quarter was equal to €131.4 million, up by 30.2% q/q and by 17.1% y/y.

Net profit in the quarter was equal to €91.9 million, up by 26.7% q/q and by 17.5% y/y.

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