Intesa Sanpaolo S p A : 2021 Half-Yearly Results

1H21 Results

An Excellent First Half

Growth in Profitability and Balance Sheet

Further Strengthened

A Strong Bank for

a Digital World

August 4, 2021

ISP Delivered an Excellent First Half with €3bn Net Income…

€3.0bn Net income (+17.8% vs 1H20, +106% excluding Nexi capital gain(1)), the best H1 since 2008

Best-ever Q2 Net income at €1.5bn

Highest-ever Operating income (+1.7% vs 1H20(2)) thanks to

the best-ever H1 Commissions (+13.2% vs 1H20(2))

Net interest income growth on a quarterly basis (+2.2% vs 1Q21(3))

~€44bn growth in Customer financial assets in H1 to fuel Wealth Management engine

Strong decrease in Operating costs (-2.3% vs 1H20(2))

Best-ever Operating margin (+5.9% vs 1H20(2))

€1.6bn Gross NPL stock reduction in H1 coupled with the lowest-ever H1 NPL inflow

Lowest NPL stock and NPL ratios since 2007, with Gross NPL ratio at 4.1% and

Net NPL ratio at 2.1% (3.1% and 1.6% according to EBA definition)

Excellent performance despite COVID-19 impact and while successfully merging UBI Banca, firmly

on track to deliver minimum €4bn Net income for 2021

1. €1.1bn booked in 2Q20
2. Data redetermined - where necessary and material - considering the changes in the scope of consolidation following the inclusion of UBI Banca and, on the basis of management accounts, the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group
3. Considering, on the basis of management accounts, the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group

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... while Allocating More than €300m out of Q2 Pre-tax Profit to Succeed in the Coming Years and Further Strengthen the Sustainability of Results

€ m

~€200m pre-tax

~€125m pre-tax

460

~140

~90

~230

One-off positive impact	Additional provisions	Strengthening of	Q2 one-off
of certain intangibles	on specific NPL	insurance technical	contribution
realignment	portfolios to accelerate	reserves(1)
	NPL deleveraging

(1) Booked in Net provisions and net impairment losses on other assets

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ISP Is Ready to Succeed in the Future…

Common Equity ratio(1) at 15.7% (14.4% Fully phased-in), well above regulatory requirements even under the EBA stress test adverse scenario, coupled with a strong liquidity position, with LCR and NSFR well above 100% and €323bn in Liquid assets

Over €6bn(2) out of 2020 pre-tax profit and more than €300m from Q2 pre-tax profit allocated to succeed in the coming years

and further strengthen the sustainability of our results

The lowest NPL stock and NPL ratios since 2007, with 2018-21 NPL deleveraging target exceeded one year ahead of Plan

Distinctive proactive credit management capabilities (Pulse)

coupled with strategic partnerships with leading NPL industrial players (Intrum, Prelios)

High operating efficiency with Cost/Income ratio at 49.2%(3)

Over €1bn yearly synergies from the combination with UBI Banca

Successful evolution towards a "light" distribution model and significant room for further branch reduction

A Wealth Management and Protection company with €1.2 trillion in Customer financial assets, with Commissions and

Insurance income representing 52% of Operating income

Strong digital proposition, with ~12.1m multichannel clients (91% of total clients) and ~7.5m clients using our App(4)

Strong commitment to ESG, with a leading position in the main sustainability indexes and rankings, and to being

the engine of sustainable and inclusive growth

Awarded "Best Bank in Italy" for the second year in a row in the Euromoney Awards for Excellence 2021

(1) Pro-forma fully loaded Basel 3 (30.6.21 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, DTA related to the combination with UBI Banca, the expected absorption of DTA on losses carried forward and the expected distribution of 1H21 Net income of insurance companies)

(2) €2.2bn provisions for future COVID-19 impacts, €2.1bn additional provisions on UBI Banca NPL and Performing loans and €2bn integration charges

(3) Considering, on the basis of management accounts, the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group

(4) Data referring to Banca dei Territori perimeter

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… and to Continue Delivering Best-In-Class Performance

Profitability Minimum €4bn Net income for 2021

• 75% total cash payout ratio(1) (dividends and reserves distribution) for 2020 €3.5bn adjusted Net income(2):
• • €694m(3) cash dividends paid in May 2021

Dividend payout	─ €1.9bn additional cash distribution from reserves to be paid on 20 October 2021(4),
	the earliest possible date following the termination of the ECB dividend ban

• 70% cash dividend payout ratio(1) for 2021 Net income (€2.1bn already accrued in H1), with €1.4bn to be paid as interim dividend on 24 November 2021(5)

Capital		Maintain a solid capital position with a minimum Common Equity ratio(6)	of 13% (12% Fully
	phased-in)

The integration with UBI Banca adds significant value by

delivering synergies above €1bn per year with no social costs

1. Envisaged in the 2018-21 Business Plan
2. Excluding from 2020 stated Net income the items related to the combination with UBI Banca (effect of PPA - including negative goodwill - and integration charges) and the goodwill impairment related to the Banca dei Territori Division
3. The maximum distributable amount according to the ECB recommendation dated 15.12.20 on dividend policy in the aftermath of the COVID-19 pandemic
4. Notice of call of the shareholders' meeting for relevant approval by mid-October 2021 to be issued in due course
5. Relevant resolution from the Board of Directors to be passed on 3 November 2021 when approving results as at 30.9.21
6. Pro-formafully loaded Basel 3 (considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, DTA related to the combination with UBI Banca and the expected absorption of DTA on losses carried forward)

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