Mediobanca S p A : CheBanca! BoD Financial statements for 2Q 2020-21 approved

PRESS RELEASE

CheBanca! Board of Directors' Meeting

Financial statements for 2Q 2020-21 approved

Record 6M results by assets (€30bn, up 8%),

revenues (€173m, up 9%; of which €60m in fees, up 21%),

and net profit (€23m, up 20%)

Strengthening ongoing of new brand identity "Alza la visione" ("Raise your vision"), product offering for affluent and premier clients, and distribution network

TFAs increase to €29.9bn (up 7.6% in 6M; up 4.2% in 2Q),

with NNM €1.6bn in 6M (€0.8bn in both quarters),

twice as high as last year

AUM/AUA up to €13.9bn (up 11.3% in 6M; up 7.5% in 2Q)

Customer loans total €10.7bn (up 4.5% in 6M; up 3% in 2Q),

with new loans in residential mortgage lending totalling €1.1bn (€0.7bn in 2Q, vs €0.4bn in 1Q)

Distribution network resumes growth following the slowdown due to Covid-19: 896

professionals and 200 POS

Affluent relationship managers now total 467 (13 added in 6M), responsible for €0.5bn of AUM/AUA in 6M

Financial advisors now total 429 (15 added in 6M), responsible for €0.4bn of AUM/AUA in 6M

Revenues, GOP and net profit improving materially

Strong increase in revenues vs 1H FY 2019-20, up 8.9% to €173.3m,

Driven by material growth in fee income (up 21% to €60.5m), the majority of which recurring

Costs up 4.3% to €128.4m, due to expansion in operations and distribution

Asset quality remains excellent, including in relation to management of moratoria Strong increase in GOP (up 17.8% to €33.7m) and net profit (up 19.5% to €22.7m)

CheBanca! S.p.A. - Sede Legale: Viale Bodio 37, Palazzo 4, 20158 Milano - Capitale Sociale € 506.250.000,00 i.v. - Codice Fiscale, Partita IVA e Iscrizione al Registro delle Imprese di Milano n° 10359360152 - Codice ABI 03058.5 - Banca iscritta all'Albo delle Banche e appartenente al Gruppo Bancario Mediobanca iscritto all'Albo dei Gruppi Bancari - Banca iscritta al Registro Unico degli Intermediari Assicurativi e Riassicurativi - Socio unico, direzione e coordinamento: Mediobanca S.p.A. - Aderente al Fondo Interbancario di Tutela dei Depositi e al Fondo Nazionale di Garanzia. CheBanca!® è un marchio registrato di CheBanca! S.p.A

The CheBanca! investment programme has continued in the first half of the new financial year, in line with the priorities of the Mediobanca Group 2019-23 Strategic Plan, with a gradual repositioning of the brand, and the product offering being geared towards the affluent/premier client bracket. The advertising campaign "Alza la tua visione" ("Raise your vision") has continued, with the objective of establishing CheBanca! as long-term partner in advisory services and financial planning. Work on repositioning the branch office network has carried in line with this.

Since the start of October 2020, as the medical emergency worsened again, operations at the branches and the FAs' offices have once again been managed by appointment only, and the use of remote collaboration instruments has been increased still further, to guarantee continuous and ongoing coverage of relations with customers.

OPERATIONS AND PRODUCT PORTFOLIO DEVELOPMENT

• The new advertising campaign "Alza la tua visione" ("Raise your vision") has continued very effectively, the objective being to establish CheBanca! as long-termpartner in advisory services and financial planning, combining competence, innovation, sustainability and the Mediobanca Group's solidity. Investments in the distribution network continued, in order to align the branch offices with the new concept that combines elegance, confidentiality and a focus on the environment.
• Enhancement of distribution structure: overall the distribution network now consists of 467 affluent and premier relationship managers (vs 454 at end-June 2020) and 429 FAs (vs 414 at end-June 2020), working at 200 branches and POS (vs 192 at end-June 2020).
• Placement of new Target Maturity Fund launched: Mediobanca Diversified Credit Portfolio 2024 placed by Mediobanca SGR.
• Open architecture offering strengthened, with three new distribution agreements in in the six months.

GROWTH IN BUSINESS VOLUMES

TFAs UP 7.6% TO €29.9bn, CUSTOMER LOANS UP 4.5% TO €10.7bn

• Total Financial Assets ("TFAs") reached €29.9bn, up 7.6% on end-June2020, with a 11.3% increase in AUM/AUA, to €13.9bn.
• Net New Money ("NNM") in 3M totalled €0.8bn (vs €0.5bnin 2Q 2019-20 and €0.8bn in 1Q 2020-21), reflecting substantial growth in AUM/AUA (up €0.5bn) and direct funding, with the latter in its transactional component reaching €11bn.
  Growth in AUM/AUA reflects a balanced contribution from the leading distribution channels in the six months, with the network's productivity levels among the highest in the affluent segment:

•

•

•

60% Relationship Managers: €0.3bn in NNM in the AUM/AUA component. TFAs managed by the proprietary channel totalled €24.1bn, split between €10.1bn in AUM/AUA and €14.0bn in deposits.

40% Financial Advisors: €0.2bn in NNM in the AUM/AUA component. TFAs managed by the FAs channel totalled €5.8bn, split between €3.8bn in AUM/AUA and €2bn in deposits.

Per capita productivity levels remain among the highest in the sector: €0.61m per manager/advisor in the six months, vs a sector average of €0.53m.

2

Loans to households rose in the six months, from €10.2bn to €10.7bn, on new mortgage loans of €1.1bn, significantly higher in the second quarter (€0.7bn in 2Q vs €0.4bn in 1Q). Asset quality remains at excellent levels. Gross NPLs increased in the same period, from €194.9m to €199.9m, representing 1.85% of total loans (slightly lower than 1.88% at end-June 2020). Net NPLs decreased from €110.3m to €107m, and represent 1% of total net loans with a coverage ratio of 46.5% (higher than 43.4% at the start of the year). Net bad debts increased, from €46.3m to €48.9m, and account for 0.46% of total net loans. The coverage ratio decreased from 56.2% to 55.1%.

With regard to moratoria, activities intended to support clients continued during the six months, granting moratoria (the total amount of which increased from €601m to €662m) and guaranteed credit lines under the Liquidity Decree (in a total amount of €17m). During the six-month period moratoria involving some €228.4m expired, over 80% of which resumed regular repayments, hence the stock reduced to €467.4m, 90% of which granted under Consap measures, and 60% for employees who have been laid off. Of these, more than 50% have been prudentially classified as stage 2, in view of the ongoing pandemic situation and in the light of the ECB guidelines in this area.

PROFITABILITY IMPROVING ACROSS ALL TIME HORIZONS

The profit and loss account reflects a healthy performance compared to 1H 2019-20:

• Revenues were up 8.9% (from €159.1m to €173.3m) due to net interest income, which was up 3.0% (from €108.6m to €111.9m) but in particular to fee income which continues to grow materially (up 21%, from €50.0m to €60.5m), especially the managed component which increased from €33.5m to €39.7m.
• Operating costs rose by 4.3% (up €5.3m; from €123.1m to €128.4m), due both to labour costs which rose by €2.9m (from €57.1m to €60m), due to the expansion of the distribution structure, increase in operations and development of the franchise, and administrative expenses, which were up slightly, by 3.6% (or €2.4m; from €66.0m to €68.4m).
• Loan loss provisions rose by €3.8m (from €7.4m to €11.2m), due to reclassifications on prudential grounds in connection with loans still under moratoria arrangements. Despite the cost of risk being higher than in 1H 2019-20 (from 14 bps to 22 bps), it remains at low levels.
• GOP came in at €34.5m, up 18.6% on the €29.1m reported in 1Q 2019-20.
• Net profit climbed by 19.5% to reach €22.7m (from €19m), reflecting the trends described above.

The main profit-and-loss items performed as follows compared to 1Q 2020-21:

• Revenues were up 8.8%, or €7.3m (from €83.0m to €90.3m). Of the revenue items, net interest income rose by 1.6%, or €0.9m (from €55.5m to €56.4m) and fee income by 22.4%, or €6.1m (from €27.2m to €33.3m), the latter again driven by the managed component, which increased from €18.2m to €21.5m.
• Operating costs were up 2.5%, or €1.6m (from €63.4m to €65m), chiefly due to seasonal factors affecting operations and expansion activities.
• Loan loss provisions decreased by €0.8m, or 13.3% (from €6.0m to €5.2m).
• Gross and net profit both increased, respectively by €6.7m (from €13.9m to €20.6m; up 48.2%) and €4.3m (from €9.2m to €13.5m; up 46.7%).

3

CHEBANCA!'S COMMITMENT

CheBanca!'s commitment to support the community in these difficult times has continued during the six months. Following a first project in April 2020 with the "Hope" non-profit organization to acquire medical machinery and equipment to help the hospitals of Lombardy, a project has been launched with the Progetto Arca onlus foundation, which will continue throughout 2021, in support of a thousand families in difficulty by regularly delivering food parcels and necessity goods to them.

Milan, 29 January 2021
Mediobanca Investor Relations	Mediobanca Media Relations
Tel. no.: (0039) 02-8829.860/647	Tel. no.: (0039) 02-8829.627/319

4