FinecoBank S p A : Presentazione risultati 2Q23

2Q23 Results

Alessandro Foti

CEO and General Manager

Milan, August 1st 2023

FINECO. SIMPLIFYING BANKING.

Disclaimer

• "Pursuant to the paragraph 2 of Article 154 bis of the Consolidated Law on Financial Intermediation (Legislative Decree no. 58 of February 24, 1998), Lorena Pelliciari, in her capacity as manager responsible for the preparation of FinecoBank S.p.A. (the "Company")'s financial reports, declares that accounting information contained in this Presentation reflects the Company's documented results, books and accounting records".
• This Presentation may contain written and oral "forward-looking statements", which include all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, objectives, estimates, forecasts, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of the Company. There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in this Presentation are provided as at the date hereof and are subject to change without notice. Information, opinions, valuations and forecasts contained in this Presentation have not been audited by any independent body. Neither this Presentation nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision.
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2

Agenda

✓Fineco Financial Results

• Fineco Commercial Results
• Next steps
• Fineco international business
• Key messages

3

Executive Summary

Successful growth story: becoming more a Platform than a Bank. Our diversified business model allows us to deliver strong results in every market condition

Strong net profit and operating leverage

• 1H23 adj. Net Profit at 308.9mln, +38.8% y/y(1) (+63% y/y excluding 1H22 Profits from Treasury management)
• 1H23 adj. Revenues at 600.7mln, +29.4% y/y(1) mainly supported by Net Financial Income (+86.1% y/y, o/w NII +158.5%) and Investing (+4.8% y/y). Brokerage confirmed a structurally higher floor vs pre-pandemic levels
• Operating Costs well under control at -144.5mln, +6.2% y/y (+5.0% y/y excluding costs related to the acceleration of the growth of the business(2)). Strong operating leverage confirmed a key strength of the Bank. Adj. C/I ratio at 24.1%

Outstanding commercial dynamics driven by organic growth

		◼	Strong acceleration in new clients' acquisition (+25.2% y/y in 1H23), with no
				change in our marketing strategy nor short term aggressive commercial offer
		◼	Net sales in 1H23 at 5.2 bn, o/w AUM at 1.9 bn. TFA at 115.9 bn with AuM at 55.8
				bn. July estimate: Strong net sales at 0.5 bn, o/w Deposits at ~200 mln despite
				higher taxes y/y (~+260 mln y/y), AUM at ~40 mln due to insurance outflows (~-
				160mln), AUC at ~250 mln. Brokerage revenues estimated at ~14 mln (>35% vs
				average July revenues in 2017-2019 y/y)
		◼ Leading PFA productivity vs peers thanks to organic growth
4	(1)	2022 non recurring items: 1Q22 -0.3 mln gross (-0.2 mln net) due to Voluntary Scheme
(2)	Excluding costs strictly related to the growth of the business, mainly FAM (-0.6 mln y/y) and marketing (-0.9 mln y/y)
		(3)	Avg 12 months
		(4)	Assumptions based on forward rate curve as of July 28th, 2023

Solid capital and liquidity position

• CET1 ratio at 23.20%,TCR at 34.04%, Leverage ratio at 4.68%
• LCR at 785%(3), NSFR at 384%

Guidance: strong growth confirmed

• Expected Net Financial Income for FY23 confirmed at around +70% vs FY22(4)
• Expected Investing revenues in FY23 confirmed to increase high single digit vs FY22 with higher after-taxmargins. ManFee margins after tax confirmed at ~55bps in FY24 (pre- tax ~73bps)
• Brokerage guidance confirmed: revenues expected strong with a floor higher vs pre-Covid period
• Operating costs expected in FY23 at +6% vs FY22, not including additional costs for: FAM strategic discontinuity (~2 mln) and additional marketing expenses (at least ~3 mln)
• Cost of Risk: in a range 5/9 bps in 2023
• Growing CET1 ratio and Leverage ratio

Delivering strong Net Profit in every market condition

Adj. Net Profit at 308.9mln, +38.8% y/y boosted by strong acceleration of Investing, confirming the effectiveness of our initiatives, and Net Financial Income. Strong operating leverage confirmed

mln			1H22	1H23	1H23/
		Adj.	( )	Adj.	( )	1H22
			1	1
Net financial income	176.4	328.3	86.1%
o/w Net interest income	127.0	328.2	158.5%
o/w Profit from treasury	49.4	0.1	-99.8%
Net commissions	232.5	242.1	4.1%
Trading profit		55.1	30.1	-45.4%
Other expenses/income	0.4	0.2	-46.1%
Total revenues	464.3	600.7	29.4%
Staff expenses	-57.5	-60.4	4.9%
Other admin.expenses	-65.3	-70.9	8.6%
D&A			-13.2	-13.2	0.4%
Operating expenses	-136.0	-144.5	6.2%
Gross operating profit	328.3	456.2	39.0%
Provisions		-12.5	-12.0	-3.9%
LLP			-1.2	-2.1	69.8%
Profit from investments	-0.8	-0.6	-22.9%
Profit before taxes	313.8	441.5	40.7%
Income taxes		-91.3	-132.6	45.3%
Net profit		222.5	308.9	38.8%
ROE	(2)		26%	32%
Cost/Income	(2)	29%	24%

Revenues

• Strong growth in Net Financial Income (+86.1% y/y, with NII at +158.5% y/y) mainly thanks to our capital light NII (>70% ex. lending) driven by our clients' valuable transactional liquidity and not by lending (not affected by additional costs and provisions due to NPL)
• Net commissions growing by +4.1% y/y driven by Investing (+4.8% y/y) and Banking (+14.5% y/y)
• Trading profit excluding the effects from ineffectiveness of the hedging derivatives(3): -18.9% y/y mainly due to lower brokerage activity

Costs

The yearly increase is mainly linked to costs related to the growth of the business, related to:

• FAM as it is increasing the efficiency of the value chain
• Marketing expenses

Net of these items, 1H23(4): +5.0% y/y

Net profit

+63.0% y/y excluding 1H22 Profits from Treasury management

	(1)	2022 non recurring items: 1H22 -0.3 mln gross (-0.2 mln net) due to Voluntary Scheme
	(2)	Adj. Cost/Income and Adj. RoE calculated net of non recurring items. ROE is calculated as annualised adj.net profit divided by average book equity for the period (excl. valuation reserves)
	(3)	The ineffectiveness of the hedging derivatives was equal to +11.7 mln in 1H22 and -5.1 mln in 1H23. The value depends on the application of accounting standards IFRS9, and is influenced both by the spread between the ESTR and the Euribor and by the
5	amount of the fair value of the derivatives
(4)	Excluding costs strictly related to the growth of the business, mainly FAM (-0.6 mln y/y) and marketing (-0.9 mln y/y)