Intesa Sanpaolo: consolidated results as at 31 March 2021

PRESS RELEASE

INTESA SANPAOLO: CONSOLIDATED RESULTS AS AT 31 MARCH 2021

RESULTS FOR Q1 2021 CONFIRM INTESA SANPAOLO'S ABILITY TO EFFECTIVELY FACE THE CHALLENGING AFTERMATH OF THE COVID-19 EPIDEMIC AND ARE FULLY IN LINE WITH THE TARGET OF DELIVERING A FULL-YEAR NET INCOME WELL ABOVE €3.5 BILLION.

RESULTS FOR THE QUARTER REFLECT INTESA SANPAOLO'S SUSTAINABLE PROFITABILITY DERIVING FROM A SOLID CAPITAL BASE AND LIQUIDITY POSITION, A RESILIENT AND WELL-DIVERSIFIED BUSINESS MODEL, THE STRATEGIC FLEXIBILITY IN MANAGING OPERATING COSTS AND THE ASSET QUALITY, WITH A LOW RISK PROFILE BOLSTERING THE SUPPORT PROVIDED TO ITALY BY THE GROUP, WHICH IS ALSO COMMITTED TO BECOMING A REFERENCE MODEL IN TERMS OF SUSTAINABILITY AND SOCIAL AND CULTURAL RESPONSIBILITY.

VALUE GENERATION FOR ALL STAKEHOLDERS WILL BE ACCRETED BY SYNERGIES ESTIMATED AT OVER €1 BILLION DERIVING FROM THE MERGER OF UBI BANCA, SUCCESSFULLY COMPLETED WITH NO SOCIAL COSTS, AND BY MORE THAN €6 BILLION OUT OF PRE-TAX PROFIT DEVOTED BY THE GROUP IN 2020 TO FURTHER STRENGTHENING THE SUSTAINABILITY OF RESULTS.

INTESA SANPAOLO'S INITIATIVES TO FACE THE COVID-19 IMPACTS:

• PROVIDING SAFE CONDITIONS FOR THE GROUP PEOPLE AND CUSTOMERS;
• SUPPORTING HEALTHCARE INITIATIVES WITH MORE THAN €100 MILLION DONATED;
• PROVIDING €150 MILLION FROM THE FUND FOR IMPACT (EQUAL TO 50%) TO REDUCE SOCIO-ECONOMIC DISTRESS;
• FIRST BANK IN ITALY TO SUSPEND MORTGAGE AND LOAN INSTALMENTS EVEN BEFORE THE SPECIFIC REGULATION CAME INTO FORCE (SUSPENSIONS OF PAYMENTS FOR €101 BILLION APPROVED TO DATE), AND TO SIGN THE COLLABORATION PROTOCOL WITH SACE, THUS PROVIDING IMMEDIATE SUPPORT TO ENTERPRISES UNDER THE LIQUIDITY DECREE (€38 BILLION INCLUDING THE SME FUND GRANTED TO DATE);
• UP TO €50 BILLION IN NEW LOANS MADE AVAILABLE TO ENTERPRISES AND PROFESSIONALS TO PROTECT JOBS AND MANAGE PAYMENTS DURING THE EMERGENCY.

THE TRENDS OF THE NEW ENVIRONMENT FIND INTESA SANPAOLO FULLY EQUIPPED, THANKS TO THE GROUP'S COMPETITIVE ADVANTAGES:

• LEADERSHIP IN WEALTH MANAGEMENT & PROTECTION AND STRONGER POSITIONING IN THE HEALTH INSURANCE SECTOR THROUGH RBM;
• EFFECTIVE PROACTIVE CREDIT MANAGEMENT (PULSE) AND GROUP'S STRATEGIC PARTNERSHIPS WITH LEADING NPL INDUSTRIAL PLAYERS;
• STRONG DIGITAL PROPOSITION, WITH AROUND 11.6 MILLION MULTICHANNEL CUSTOMERS AND AROUND 7.1 MILLION CUSTOMERS USING THE INTESA SANPAOLO APP, AND STRATEGIC PARTNERSHIP WITH NEXI AS REGARDS PAYMENT SYSTEMS;
• AROUND 80,000 GROUP PEOPLE IN SMART WORKING AND OPTIMISATION OF THE DISTRIBUTION MODEL WITH BRANCH RATIONALISATION, THE BANCA 5 - SISALPAY STRATEGIC PARTNERSHIP (MOONEY), AND MOST CUSTOMERS WHO WILL BE SERVED THROUGH ALTERNATIVE CHANNELS;
• LEADERSHIP IN INCLUSION IN SUSTAINABILITY INDICES AND ESG INTERNATIONAL ASSESSMENTS.

THE CAPITAL POSITION WAS SOLID AND WELL ABOVE REGULATORY REQUIREMENTS: PRO-FORMA FULLY LOADED COMMON EQUITY TIER 1 RATIO WAS 15.7% DEDUCTING DIVIDENDS ACCRUED IN Q1 2021 FROM CAPITAL.

NET INCOME AT €1,516 MILLION.

GROSS INCOME UP 22.2% ON Q1 2020.

CREDIT QUALITY IMPROVED. GROSS NPLs WERE REDUCED BY 0.8% ON YEAR-END 2020 AND BY AROUND €32 BILLION SINCE THE END OF 2017 EXCEEDING BY AROUND €6 BILLION THE €26 BILLION DELEVERAGING TARGET SET FOR THE ENTIRE FOUR-YEAR PERIOD OF THE 2018-2021 BUSINESS PLAN. NPL RATIO WAS 4.4% GROSS AND 2.3% NET. ANNUALISED COST OF RISK IN Q1 2021 DECREASED TO 35 BASIS POINTS.

INTESA SANPAOLO CONTINUES TO OPERATE AS A GROWTH ACCELERATOR IN THE REAL ECONOMY IN ITALY. IN Q1 2021, MEDIUM/LONG-TERM NEW LENDING GRANTED BY THE GROUP TO ITALIAN HOUSEHOLDS AND BUSINESSES AMOUNTED TO AROUND €21 BILLION. IN Q1 2021, THE GROUP FACILITATED THE RETURN TO PERFORMING STATUS OF AROUND 2,900 COMPANIES, THUS SAFEGUARDING AROUND 14,500 JOBS. THIS BROUGHT THE TOTAL TO AROUND 126,000 COMPANIES SINCE 2014, WITH AROUND 630,000 JOBS SAFEGUARDED OVER THE SAME PERIOD.

THE GROUP'S SOCIAL AND CULTURAL RESPONSIBILITY HAS TRANSLATED, IN ITALY, INTO:

• INITIATIVES TO REDUCE CHILD POVERTY AND SUPPORT PEOPLE IN NEED, DELIVERING, SINCE 2018, AROUND 17.7 MILLION MEALS, 1.1 MILLION DORMITORY BEDS, 244,000 MEDICINE PRESCRIPTIONS AND 203,000 ITEMS OF CLOTHING;
• THE FUND FOR IMPACT, WITH AROUND €107 MILLION GRANTED, SINCE ITS LAUNCH, BY PER MERITO (THE FIRST LINE OF CREDIT WITHOUT COLLATERAL DEDICATED TO ALL ITALIAN UNIVERSITY STUDENTS), THE LAUNCH, IN JULY 2020, OF MAMMA@WORK (A SUBSIDISED LOAN TO BALANCE MOTHERHOOD AND WORK, WITH AROUND €0.3 MILLION GRANTED SINCE LAUNCH) AND, IN AUGUST 2020, OF "XME STUDIOSTATION" (LOANS TO FAMILIES TO SUPPORT DISTANCE LEARNING, WITH AROUND €1.6 MILLION GRANTED SINCE LAUNCH);
• A €6 BILLION CIRCULAR ECONOMY CREDIT PLAFOND TO SUPPORT SUSTAINABLE DEVELOPMENT, WITH AROUND €3.4 BILLION ALREADY DISBURSED; S-LOAN TO IMPROVE SMEs' SUSTAINABILITY PROFILE (A €2
  BILLION PLAFOND ALLOCATED, WITH AROUND €520 MILLION GRANTED SINCE LAUNCH);
• IN Q1 2021, AROUND 175 START-UPS EVALUATED (OVER 2,800 SINCE 2018) IN TWO ACCELERATION PROGRAMS WITH 22 COACHED START-UPS (OVER 410 SINCE 2018);
• GIOVANI E LAVORO PROGRAM UNDERWAY AIMED AT INTRODUCING 5,000 YOUNG PEOPLE TO THE ITALIAN LABOUR MARKET: IN Q1 2021, AROUND 3,000 YOUNG PEOPLE APPLIED TO THE PROGRAM (OVER 18,000 SINCE 2019), AROUND 300 STUDENTS WERE INTERVIEWED AND AROUND 100 STUDENTS TRAINED /
  IN TRAINING THROUGH FOUR COURSES, WITH AROUND 1,500 COMPANIES INVOLVED SINCE THE LAUNCH OF THE PROGRAM (OVER 3,800 STUDENTS INTERVIEWED AND OVER 1,500 TRAINED / IN TRAINING SINCE 2019);
• FIRST EDITION OF THE GALLERIE D'ITALIA ACADEMY ADVANCED TRAINING COURSE IN "MANAGEMENT OF ARTISTIC-CULTURAL HERITAGE AND CORPORATE COLLECTIONS"; DIGITAL PROMOTION OF THE TIEPOLO EXHIBITION: TIEPOLO HAS BECOME A VIRTUAL TOUR AND AN INNOVATIVE IMMERSIVE EXPERIENCE; SOTTO UN UNICO CIELO: SEVEN VIDEOS ON TIEPOLO'S MASTERPIECES IN VENETO AND FRIULI REGIONS; DIGITAL INITIATIVES DEDICATED TO TIEPOLO ON THE WEBSITES GALLERIE D'ITALIA, INTESA SANPAOLO AND PROGETTO CULTURA.

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• ROBUST NET INCOME:
• • €1,516M IN Q1 2021 VS €393M IN Q4 2020, EXCLUDING THE ITEMS RELATED TO THE ACQUISITION OF UBI BANCA (°) AND THE ACCOUNTING IMPACT OF THE RELATED GOODWILL IMPAIRMENT (°°),
    AND €1,151M IN Q1 2020
• GROSS INCOME UP BY 22.2% ON Q1 2020
• NET FEE AND COMMISSION INCOME UP BY 8.9% ON Q1 2020
• OPERATING COSTS DOWN BY 2.6% ON Q1 2020
• IMPROVEMENT IN CREDIT QUALITY TREND:
• • DECREASE IN NPLs:
  • • GROSS NPL REDUCTION: AROUND €32BN SINCE DECEMBER 2017 AND AROUND €44BN SINCE THE SEPTEMBER 2015 PEAK
    • NPL STOCK DOWN 0.8% GROSS AND 2.3% NET ON YEAR-END 2020, NPL TO TOTAL LOAN RATIO OF 4.4% GROSS AND 2.3% NET
  • ANNUALISED COST OF RISK IN Q1 2021 DOWN TO 35 BASIS POINTS
• SOLID CAPITAL POSITION, WELL ABOVE REGULATORY REQUIREMENTS:
• • COMMON EQUITY TIER 1 RATIO AS AT 31 MARCH 2021, AFTER THE DEDUCTION FROM CAPITAL OF €1,061M OF DIVIDENDS ACCRUED IN Q1 2021:
  • • 14.9% PHASED-IN(1) (2)
    • 14.4% FULLY LOADED (1) (3)
    • 15.7% PRO-FORMA FULLY LOADED (1) (*)

____________

1. Effect of the purchase price allocation (including negative goodwill), determined following the outcome of the

PPA (Purchase Price Allocation) procedure, and integration charges.

1. Write-offof goodwill of the Banca dei Territori Division, also related to the increase in the accounting value of the Division following the integration with UBI Banca.

1. After the deduction of dividends accrued in Q1 2021 and the coupons accrued on the Additional Tier 1 issues.
2. Calculated including the mitigation of the impact of the first time adoption of IFRS 9.
3. Calculated excluding the mitigation of the impact of the first time adoption of IFRS 9.

1. Estimated by applying the fully loaded parameters to the financial statements as at 31 March 2021, taking into account the total absorption of deferred tax assets (DTAs) related to goodwill realignment, loan adjustments, the first time adoption of IFRS 9 and the non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the Aggregate Set of Banca Popolare di Vicenza and Veneto Banca, as well as the expected absorption of DTAs on losses carried forward and DTAs on the acquisition of UBI Banca, deriving from PPA, integration charges and the sale of the going concern to BPER Banca, and the expected distribution of the Q1 2021 net income of insurance companies.

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HIGHLIGHTS:
OPERATING	Q1 2021	+8.9%	TO €5,461M FROM €5,013M IN Q4 2020
INCOME:
	-2%	FROM €5,570M IN Q1 2020
OPERATING	Q1 2021	-12.3%	TO €2,542M FROM €2,899M IN Q4 2020
COSTS:
	-2.6%	FROM €2,610M IN Q1 2020
OPERATING	Q1 2021	+38.1%	TO €2,919M FROM €2,114M IN Q4 2020
MARGIN:
	-1.4%	FROM €2,960M IN Q1 2020
GROSS INCOME:	Q1 2021	€2,630M	FROM €740M IN Q4 2020
			FROM €2,153M IN Q1 2020
NET INCOME:	Q1 2021	€1,516M	FROM €393M IN Q4 2020 EXCLUDING THE ITEMS RELATED TO

THE ACQUISITION OF UBI BANCA (*) AND THE ACCOUNTING

IMPACT OF THE RELATED GOODWILL IMPAIRMENT (**)

FROM €1,151M IN Q1 2020

CAPITAL RATIOS: COMMON EQUITY TIER 1 RATIO AFTER DIVIDENDS ACCRUED IN Q1 2021:

14.9% PHASED-IN(4) (5)

14.4% FULLY LOADED (4) (6)

15.7% PRO-FORMA FULLY LOADED (4) (°)

_________

1. Effect of the purchase price allocation (including negative goodwill), determined following the outcome of the PPA (Purchase Price Allocation) procedure, and integration charges.

1. Write-offof goodwill of the Banca dei Territori Division, also related to the increase in the accounting value of the Division following the integration with UBI Banca.

1. After the deduction of dividends accrued in Q1 2021 and the coupons accrued on the Additional Tier 1 issues.
2. Calculated including the mitigation of the impact of the first time adoption of IFRS 9.
3. Calculated excluding the mitigation of the impact of the first time adoption of IFRS 9.

1. Estimated by applying the fully loaded parameters to the financial statements as at 31 March 2021, taking into account the total absorption of deferred tax assets (DTAs) related to goodwill realignment, loan adjustments, the first time adoption of IFRS 9 and the non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the Aggregate Set of Banca Popolare di Vicenza and Veneto Banca, as well as the expected absorption of DTAs on losses carried forward and DTAs on the acquisition of UBI Banca, deriving from PPA, integration charges and the sale of the going concern to BPER Banca, and the expected distribution of the Q1 2021 net income of insurance companies.

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Turin - Milan, 5 May 2021 - At its meeting today, the Board of Directors of Intesa Sanpaolo approved the consolidated interim statement as at 31 March 2021 (°) (7).

Results for the first quarter 2021 confirm Intesa Sanpaolo's ability to effectively face the challenging aftermath of the COVID-19 epidemic and are fully in line with the target of delivering a full-year net income well above €3.5bn.

Results reflect Intesa Sanpaolo's sustainable profitability deriving from a solid capital base and liquidity position, a resilient and well-diversifiedbusiness model, the strategic flexibility in managing operating costs and the asset quality, with a low risk profile bolstering the support provided to Italy by the Group, which is also committed to becoming a reference model in terms of sustainability and social and cultural responsibility.

Value generation for all stakeholders will be accreted by synergies estimated at over €1bn deriving from the merger of UBI Banca, successfully completed with no social costs, and by more than €6bn out of pre-taxprofit devoted by the Group in 2020 to further strengthening the sustainability of results.

The trends of the new environment find Intesa Sanpaolo fully equipped thanks to the Group's competitive advantages:

• growing demand for health, wealth and business protection: Intesa Sanpaolo leadership in Wealth Management & Protection and stronger positioning in the health insurance sector enhanced through the acquisition of RBM;
• riskier environment: effective proactive credit management (Pulse) and Group's strategic partnerships with NPL leading industrial players;
• customer digitalisation: top positioning in Europe for mobile app functionalities and Group's strong digital proposition, with around 11.6 million multichannel customers and around 7.1 million customers using the Intesa Sanpaolo App, and strategic partnership with Nexi in payment systems (stake in Nexi share capital);
• digital way of working: around 80,000 Group people in smart working and optimisation of the distribution model with around 1,100 branches rationalised since 2018 and possible further branch reduction following the acquisition of UBI Banca, the Banca 5 - SisalPay (Mooney) strategic partnership, and changes in the behaviour of customers brought about by COVID-19with most of them who will continue to be served by the Group via its high-qualityalternative channels;

1. In accordance with Article 65-bis and Article 82-ter of the Issuers' Regulation, effective as of 2 January 2017, Intesa
   Sanpaolo opted for periodical disclosure, on a voluntary basis, of financial information as at 31 March and 30 September of each financial year, in addition to the annual report and the half-yearly report. This information consists of interim statements approved by the Board of Directors, basically providing continuity with the interim statements published in the past.

(7) Methodological note on the scope of consolidation on page 23.

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