1Q20 Results

Resilient Profitability Coupled with Rock Solid Capital Position

Fully Equipped for a

Challenging Environment

A Strong Bank for a Digital World

May 5, 2020

Disclaimer (1/2)

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN AUSTRALIA, CANADA OR JAPAN (OR IN EXCLUDED COUNTRIES, AS DEFINED HEREAFTER).

The voluntary public exchange Offer described in this document is promoted by Intesa Sanpaolo S.p.A. over the totality of the ordinary shares of Unione di Banche Italiane S.p.A.

This document does not constitute an offer to buy or sell Unione di Banche Italiane S.p.A.'s shares.

Before the beginning of the Tender Period for the Offer, as required by the applicable regulations, the Offeror will publish an Offer Document which Unione di Banche Italiane S.p.A.'s shareholders shall carefully examine.

The Offer is launched exclusively in Italy and the United States. In Italy, the Offer is made on a non-discriminatory basis and on equal terms to all shareholders of Unione di Banche Italiane S.p.A. The Offer is promoted in Italy as Unione di Banche Italiane S.p.A.'s shares are listed on the Mercato Telematico Azionario organised and managed by Borsa Italiana S.p.A. and, except for what is indicated below, is subject to the obligations and procedural requirements provided for by Italian law. In the United States, the Offer will be conducted by way of a private placement memorandum delivered only to "qualified institutional buyers," as defined in Rule 144A of the Securities Act of 1933, as subsequently amended (the "Securities Act"), and subject to other restrictions imposed by U.S. federal securities laws. The U.S. private placement memorandum will not be used in connection with the Offer in Italy or in any of the Other Countries as defined hereafter.

The Offer has not been and will not be made in Canada, Japan, Australia and any other jurisdictions where making the Offer or tendering therein would not be in compliance with the securities or other laws or regulations of such jurisdiction or would require any registration, approval or filing with any regulatory authority. Such jurisdictions, including the United States, Canada, Japan and Australia are referred to as the "Excluded Countries". The Offer has not been and will not be made by using national or international instruments of communication or commerce of the Excluded Countries (including, by way of illustration, the postal network, fax, telex, e- mail, telephone and internet), through any structure of any of the Excluded Countries' financial intermediaries or in any other way. No actions have been taken or will be taken to make the Offer possible in any of the Excluded Countries.

A copy of any document that the Offeror will issue in relation to the Offer, or portions thereof, is not and shall not be sent, nor in any way transmitted, or otherwise distributed, directly or indirectly, in the Excluded Countries unless such document explicitly authorizes such transmission or distribution. Anyone receiving such documents shall not distribute, forward or send them (neither by postal service nor by using national or international instruments of communication or commerce) in the Excluded Countries.

Any tender in the Offer resulting from solicitation carried out in violation of the above restrictions will not be accepted.

This document and any other document issued by the Offeror in relation to the Offer do not constitute and are not part of an offer to buy or exchange, nor of a solicitation to offer to sell or exchange, any security in the United States or in the Excluded Countries. Securities cannot be offered or sold in the United States unless they have been registered pursuant to the Securities Act or are exempt from registration. Securities offered in the context of the transaction described in this Notice will not be registered pursuant to the Securities Act and Intesa Sanpaolo S.p.A. does not intend to carry out a public offer of such securities in the United States. No financial instrument can be offered or transferred in the Excluded Countries without specific approval in compliance with the relevant provisions applicable in such countries or without exemption from such provisions.

This Notice may only be accessed in or from the United Kingdom (i) by investment professionals falling within the scope of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as subsequently amended (the "Order"), or (ii) by high net worth companies and by such other persons falling within the scope of Article 49(2) paragraphs from (a) to (d) of the Order, or (iii) persons to whom the Notice may otherwise be lawfully communicated (all these persons are jointly defined "relevant persons"). Securities described in this Notice are made available only to relevant persons (and any solicitation, offer, agreement to subscribe, purchase or otherwise acquire such securities will be directed exclusively at such persons). Any person who is not a relevant person should not act or rely on this document or any of its contents.

Tendering in the Offer by persons residing in jurisdictions other than Italy may be subject to specific obligations or restrictions imposed by applicable legal or regulatory provisions of such jurisdictions. Recipients of the Offer are solely responsible for complying with such laws and, therefore, before tendering in the Offer, they are responsible for determining whether such laws exist and are applicable by relying on their own advisors. The Offeror does not accept any liability for any violation by any person of any of the above restrictions.

1

Disclaimer (2/2)

The content of this document has a merely informative and provisional nature and is not to be construed as providing investment advice. The statements contained herein have not been independently verified. No representation or warranty, either express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, correctness or reliability of the information contained herein. Neither the Company nor any of its representatives shall accept any liability whatsoever (whether in negligence or otherwise) arising in any way in relation to such information or in relation to any loss arising from its use or otherwise arising in connection with this document. By accessing these materials, you agree to be bound by the foregoing limitations.

This document contains certain forward-looking statements, projections, objectives, estimates and forecasts reflecting the Intesa Sanpaolo management's current views with respect to certain future events. Forward-looking statements, projections, objectives, estimates and forecasts are generally identifiable by the use of the words "may," "will," "should," "plan," "expect," "anticipate," "estimate," "believe," "intend," "project," "goal" or "target" or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts, including, without limitation, those regarding Intesa Sanpaolo's future financial position and results of operations, strategy, plans, objectives, goals and targets and future developments in the markets where Intesa Sanpaolo participates or is seeking to participate.

Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements as a prediction of actual results. The Intesa Sanpaolo Group's ability to achieve its projected objectives or results is dependent on many factors which are outside manage ment's control. Actual results may differ materially from (and be more negative than) those projected or implied in the forward-looking statements. Such forward-looking information involves risks and uncertainties that could significantly affect expected results and is based on certain key assumptions.

All forward-looking statements included herein are based on information available to Intesa Sanpaolo as of the date hereof. Intesa Sanpaolo undertakes no obligation to update publicly 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. All subsequent written and oral forward-looking statements attributable to Intesa Sanpaolo or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.

* * *

This document includes financial projections, some of which reflect management's estimates regarding the projected combined o perations of Intesa Sanpaolo and UBI Banca following the completion of the proposed transaction. These projections were prepared based on Intesa Sanpaolo management forecasts, taking into account publicly available information regarding UBI Banca's operations. These projections are presented for illustrative purposes on ly, are based on various adjustments, assumptions and preliminary estimates, and may not be an indication of Intesa Sanpaolo's financial condition or results of operations following the completion of the proposed transaction.

Moreover, the impact of COVID-19 on the economy as a whole and Intesa Sanpaolo's and UBI's results of operations and overall financial performance remains uncertain in relation to the possible evolutions of aftermath of the pandemic. The financial projections in this press release have not been adjusted for the potential impact of the COVID-19 pandemic on UBI's business, financial results and condition.

* * *

This document is not part of the public exchange offer over UBI Banca shares and does not constitute an offer to buy or exchange UBI Banca's shares or subscribe/buy

Intesa Sanpaolo's shares. Before the beginning of the tender offer period, as required by the applicable regulations, Intesa Sanpaolo will publish an offer document

including a description of terms and conditions of the offer, as well as, inter alia, of the methods to adhere to the offer. The afore-mentioned publication will be disclosed by a specific press release.

* * *

The manager responsible for preparing the company's financial reports, Fabrizio Dabbene, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corresponds to the document results, books and accounting records.

2

ISP Is Fully Equipped for a Challenging Environment…

Common Equity ratio(1) up at 14.5%, well above regulatory requirements (~+590bps(2)); strong

liquidity position, with LCR and NSFR well above 100% and ~€200bn in Liquid assets

€35bn NPL deleveraging delivered since the September 2015 peak(3)

and the lowest NPL stock and NPL ratios since 2009

Distinctive proactive credit management capabilities (Pulse, with >350 dedicated people) coupled with strategic partnerships with leading NPL industrial players (Intrum, Prelios)

~€1.5bn additional buffers built up for future COVID-19 impacts (€0.3bn provisions booked in

Q1 and ~€1.2bn potential additional pre-tax provisioning from the Nexi capital gain)

Successful evolution towards a "light" distribution model, with ~1,000 branches

rationalised since 2018 and significant room for further branch reduction

Strong digital proposition, with ~10m multichannel

clients and ~6m clients using ISP App

Successfully responded to mitigate COVID-19 impact on ISP People and Clients

and support the economy and society

  1. Pro-formafully loaded Basel 3 (31.3.20 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, the expected absorption of DTA on losses carried forward and the expected distribution of 1Q20 Net income of insurance companies)
  2. Calculated as the difference between the Fully Loaded CET1 Ratio vs requirements SREP + Combined Buffer (taking into account the regulatory changes introduced by the ECB on 12.3.20, which require that the Pillar 2 requirement can be respected by partially using equity instruments other than CET1 and contextual revisions of the Countercyclical Capital Buffer by the competent national authorities in the various countries)
  3. Excluding the impact from the adoption of the new Definition of Default applied since November 2019

3

… And Has Delivered an Excellent Q1

€1,151m Net income (+9.6% vs 1Q19), ~€1.4bn excluding provisions for future

COVID-19 impacts, ~€2.3bn pro-forma including Nexi capital gain

Best Q1 ever for Operating margin at €2.7bn (+26.8% vs 1Q19(1)) and

Best Q1 since 2007 for Operating Income (+11.7% vs 1Q19(1))

Resilient Net interest income, benefitting from increasing and

geographically diversified lending volumes in Q1

Significant growth in financial market activities (naturally hedging the impact

of volatility on our fee-based business) and insurance revenues

More than €6bn increase in household sight deposits on a quarterly basis (more than €18bn since 31.3.19), fuelling our Wealth Management engine

Strong decrease in Operating costs (-2.7% vs 1Q19(1)) with

Cost/Income at 44.4%, down 6.6pp vs 1Q19(1)

The lowest ever Gross NPL inflow(2) and €1.3bn NPL deleveraging in Q1(2)

Excellent Q1 performance fully in line with 2020 pre-COVID targets

  1. Data restated for the full line-by-line deconsolidation of the acquiring activities due to the Nexi agreement and to take into account the effects on Operating costs of the Prelios agreement related to UTP servicing
  2. Excluding the impact from the adoption of the new Definition of Default applied since November 2019

4

The Italian Economy Is Resilient Thanks to Strong Fundamentals and Can Leverage on Government Interventions…

Strong Italian household wealth at €10.7tn, of which €4.4tn in financial assets,

coupled with a low level of indebtedness

Manufacturing companies with stronger financial structures than

pre-2008 crisis levels

Export-oriented companies highly diversified in terms of industry and size, with Italian export growth outperforming that of Germany by 1.4pp in 2019

Banking system by far stronger than pre-2008 crisis levels

Extensive support from Government packages worth in total €75bn(1)

and with guarantees up to €750bn

In Q1, the GDP drop has been milder in Italy vs other European countries (e.g., France, Spain), despite the longer lockdown period

  1. Of which €55bn announced but not yet approved

5

… and ISP Is Ready to Face the Crisis

Continue delivering best-in-class profitability, with minimum ~€3bn Net income in 2020 (assuming cost of risk potentially up to ~90bps) and minimum ~€3.5bn Net income in 2021 (assuming cost of risk potentially up to ~70bps)

Maintain a solid capital position (Common Equity(1) ratio >13%, even taking into account the potential distribution of 2019 suspended dividends subject to the ECB recommendation(2))

Deliver payout ratio of 75% in 2020 and 70% in 2021

Combination with UBI Banca has an even stronger industrial rationale in the

COVID-19 emergency, with significant value generation largely achievable even in

the case of ISP acquiring 50% + 1 share

  1. 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 and the expected absorption of DTA on losses carried forward). CET1 ratio fully phased in >12%
  2. After 1.10.20 by year end

6

Contents

ISP Is Fully Equipped for a Challenging Environment

1Q20: An Excellent Start to a Challenging Year

Combination with UBI Banca

Final Remarks

7

In Recent Years, ISP Has Substantially Reduced NPL Stock, while Strengthening Capital and Improving Efficiency…

Gross NPL Stock

€ bn

Net NPL

x

Net NPL ratio, %

x

Gross NPL ratio, %

x

NPL coverage ratio, %

64.5

-53%

30.2

34.2

14.0

30.9.15

31.3.20(1)

17.2

7.1

10.0

3.5

47.0

53.6

ISP Fully Loaded CET1 Ratio

  • After €0.9bn deduction of accrued dividends, based on the 75% Business Plan payout ratio for 2020

14.5

+1.4pp

13.1

31.12.15

31.3.20(2)

€13.4bn in cash dividends paid

over the past 6 years(3)

Cost/Income

%

50.8

-6.4pp

44.4

31.12.15

31.3.20

  1. Including the ~€0.8bn gross impact from the adoption of the new Definition of Default applied since November 2019
  2. Pro-formafully loaded Basel 3 (31.3.20 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, the expected absorption of DTA on losses carried forward and the expected distribution of 1Q20 Net income of insurance companies)
  3. Not including the ~€3.4bn dividend for 2019 suspended in compliance with the ECB recommendation dated 27.3.20 and potentially to be distributed after 1.10.20 by year end, subject to indications to be given by the
    ECB

8

  • and Is Now Far Better Equipped than Peers to Tackle the
    Challenges Ahead

Solid capital position

Buffer vs requirements SREP + Combined Buffer(1), 31.3.20, bps

~590

~+260bps

~330

ISP

Peer average(2)

Rock solid capital base with

~€17bn excess capital(1)

Best-in-class risk profile

Fully Loaded CET1/Total financial illiquid assets(3), 31.3.20, %

67

+45pp

22

ISP(4)

Peer average(5)

Best-in-class leverage

ratio: 6.6%

High operating efficiency

Cost/Income, 31.3.20, %

60.8

-16.4pp

44.4

ISP

Peer average(5)

High strategic flexibility to

reduce costs

  1. Calculated as the difference between the Fully Loaded CET1 Ratio vs requirements SREP + Combined Buffer (taking into account the regulatory changes introduced by the ECB on 12.3.20, which require that the Pillar 2 requirement can be respected by partially using equity instruments other than CET1 and contextual revisions of the Countercyclical Capital Buffer by the competent national authorities in the various countries); only top European banks that have communicated their SREP requirement
  2. Sample: BBVA, Deutsche Bank, Nordea, Santander and Société Générale (31.3.20 data). Source: Investor Presentations, Press Releases, Conference Calls, Financial Statements. Only top European banks that have communicated their 1Q20 results
  3. Total illiquid assets include Net NPL, Level 2 assets and Level 3 assets
  4. 61% including the effect of Real Estate and Art, Culture and Historical Heritage portfolio revaluation
  5. Sample: Barclays, BBVA, Credit Suisse, Deutsche Bank, HSBC, Lloyds Banking Group, Nordea, Santander, Société Générale, Standard Chartered and UBS (31.3.20 data); 31.12.19 data for illiquid assets of Credit Suisse and Lloyds Banking Group; Level 2 and Level 3 assets as of 31.12.19. Only top European banks that have communicated their 1Q20 results

9

An Excellent Q1 with ~€1.5bn Additional Buffers Against COVID-19 Impacts

ISP delivered excellent Q1 Net income (and the highest ever Q1 Operating margin)…

…and can count on additional buffers for COVID-19 impacts

€ m

x

Operating margin, € m

1,075

1,064

688

804

806

901

661

503

306

Provision for future COVID-19 impacts (~€300m pre-tax)

~€2.3bn including Nexi capital gain

~1,360

1,252

1,050 +30%

1,151

~€1.5bn additional buffers for future COVID-19 impacts:

  • €0.3bn
    COVID-19 related pre-taxprovision in Q1(1)
  • Nexi capital gain to be booked in Q2/Q3, potentially offsetting up to
    ~€1.2bn pre-tax additional provisioning

1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17 1Q18 1Q19 1Q20

1,798 1,9911,963 2,6062,025 2,002 2,602 2,123 2,024 2,488 2,139 2,713

The excellent performance in Q1 is fully in line

with 2020 pre COVID-19 targets

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

10

ISP Has Proactively Implemented a Complete Set of Responses to Mitigate the COVID-19 Impact

ISP proactive response to COVID-19 across key areas

1

2

3

Care for ISP

Continuous

Immediate

People and

support to the

business

Clients

real economy

reaction

and society

4

Ready to face the new environment leveraging ISP's competitive advantages

11

NOT EXHAUSTIVE

1 ISP Promptly Ensured Safe Working Conditions for Its

People and Clients

Main initiatives to ensure safe working conditions for ISP People and Clients

  • Remote working for more than 35,000 ISP People(1), with "digital coach" to sustain the switch to smart working and share best practices
  • Digital learning enabled for all ISP People in Italy

ISP People ▪ 6 additional days of paid leave for ISP People who work in the

branch network or are unable to work remotely

  • "Ascolto e Supporto" project offering psychological support to all
    ISP People
  • Updated working policies according to WHO(2) guidelines
  • 95% of branches opened with revised opening hours (entrance by appointment only) and employees working on a rotation scheme
  • Business continuity ensured by the online branch, Internet Banking,

ISP Clients

App and ATM/Cash machines (97% active)

▪ Activated remote relationship advisory service, with ~20,000

Relationship Managers

▪ Free extension of ISP health insurance policy coverage to include

COVID-19

  1. As at 31.3.20
  2. World Health Organization

12

2 ISP Is Actively Committed to Supporting Healthcare Priorities and the Real Economy During the COVID-19 Emergency NOT EXHAUSTIVE

Main initiatives to provide active support to healthcare priorities and the real economy

Voluntary donations

Lending support

to strengthen the National Health System through the Civil Protection Department to

purchase medical equipment (e.g., intensive care unit beds), including €5m donated to

€100m the Papa Giovanni XXIII Hospital in Bergamo, €5m donated to the Spedali Civili di

Brescia Hospital in Brescia and €6.5m donated to the Veneto Region for its hospitals

in donations coming from the CEO (€1m) and top management's 2019 variable

compensation, to strengthen healthcare initiatives, with additional voluntary

€6m donations coming from ISP People and Board of Directors

donated to Ricominciamo Insieme project, dedicated to Bergamo families in financial

€5m and social difficulty due to the COVID-19 crisis, in collaboration with the local Diocese

€1m allocated from the ISP Charity Fund to boost COVID-19 scientific research

€350k

donated to Associazione Nazionale Alpini to accelerate the construction of a

field hospital in Bergamo

in credit made available to support companies and professionals for protecting

€50bn jobs and managing payments during the emergency

1st

in Italy to launch the suspension of existing mortgage and loan installments for

families and companies (before the regulation came into force)

1st

in Italy to sign the collaboration protocol with SACE, providing immediate support to

large corporates and SMEs under the Liquidity Decree

€125m (equal to 50%) of the ISP Fund for Impact will be used to

reduce the socio-economic distress caused by COVID-19

13

3 Business Continuity Ensured Thanks to Strong Digital Capabilities

Strong value proposition on digital channels…

…enabled immediate business reaction

1Q20

Enhanced digital service

Flexible and secure remote work infrastructure

Multichannel clients

App users

(4.6/5.0 rating on iOS(1) and 4.4/5.0 on Android(1))

  • of digital operations (average per quarter)
  • of digital sales(2) (average per quarter)

Market Hub(3) orders (average per day)

VPN (secure bank network) (average logins per day)

Internal communication/VC system

(average logins per day)

~9.7m, +500k vs 2019

~5.8m, +300k vs 2019

~26.0m, +12% vs 2019

~350k, +94% vs 2019

~80k, +60% vs 2019

~32k(4), x13 vs 2019

~33k(4), x3 vs 2019

  1. As of March 2020
  2. Commercial offer sent to the client (website or App) by Relationship manager or online branch, signed electronically by the clients, or self service purchases
  3. Banca IMI platform for corporate client operations
  4. Data referring to March 2020

14

4 ISP Can Leverage Its Competitive Advantages in the New Environment

Key trends

Increased demand for health, wealth and business protection

Riskier environment

Client digitalisation

Digital way of working

Strengthened ESG importance

ISP's competitive advantages

  • Best-in-classEuropean player in Life insurance and in Wealth

Management

  • Strong positioning in the protection business (#2 Italian player in health insurance and #3 in non-motorretail with RBM)
  • Distinctive proactive credit management capabilities (Pulse, with >350 dedicated people)
  • Strategic partnerships with leading NPL industrial players (Intrum, Prelios)
  • Among top 4 in Europe for mobile App functionalities(1), with scale for additional investments
  • Already strong digital proposition with ~10m multichannel clients
  • Accelerated digitalisation with more than 35,000 ISP People smart working
  • Strong track record in rapid and effective distribution model optimisation (e.g., ~1,000 branches rationalised since 2018) and further possible branch reduction in light of:
    • Banca 5®-SisalPay strategic partnership
    • ISP high quality digital channels, to continue serving the majority of clients who have changed their habits during COVID-19
  • The only Italian bank listed in the main Sustainability Indices(2)
  • Ranked first among peers by MSCI, CDP, Sustainalytics, three of the top
    ESG international assessments
  1. Source: The Forrester Banking Wave™: European Mobile Apps, Q2 2019
  2. Including: Dow Jones Sustainability Indices, CDP Climate Change A List 2018, 2019 Corporate Knights ''Global 100 Most Sustainable Corporations in the World Index''

15

Italy's Strong Fundamentals Support the Resilience of the Italian

Economy

Italian YoY GDP growth

Strong fundamentals support the resilience of the Italian economy

%

▪ Wealth of Italian households at €10.7tn, of which €4.4tn in

Households

financial assets

▪ Low level of indebtedness

4.5 - 7

▪ Italian companies well positioned to cope with domestic

economic turmoil:

- Manufacturing companies have stronger financial

structures than pre-2008 crisis levels:

Corporates

▫ Profitability: Gross operating margin at 9.1%

▫ Capitalisation: Equity/Total liabilities at 41%

0.3

- Export-oriented companies have become

powerhouses over the past few years, with Italian export

growth outperforming that of Germany by 1.4pp in 2019

▪ The banking system is by far stronger than pre-2008

crisis levels with:

- Higher capital

Banking system

- Huge NPL reduction

- Higher efficiency, with Cost/income ratios better than the

EU average

- High diversification of revenues

▪ Stock of assets owned by Public Sector entities of

~€1.0tn(2) :

(8) - (10.5)

Government

- ~€0.6tn of financial assets

- ~€0.3tn of Real Estate

2019

2020(1)

2021(1)

- ~€0.1tn of other non-financial assets

€75bn(3) Government total package

(1) Source: ISP estimates

with guarantees up to €750bn

  1. Not including infrastructure, natural resources, cultural heritage
  2. Of which €55bn announced but not yet approved

Source: Bank of Italy; ISTAT; "Analisi dei Settori Industriali" Intesa Sanpaolo - Prometeia October 2019

16

Contents

ISP Is Fully Equipped for a Challenging Environment

1Q20: An Excellent Start to a Challenging Year

Combination with UBI Banca

Final Remarks

17

Q1 Impacted by the Sudden COVID-19 Outbreak

Italian GDP YoY growth

Market volatility(1)

10-yearBTP-Bund spread(3)

%

YoY Italy

%

x

Market performance

Bps

QoQ Italy

FTSE MIB Index, %(2)

x

Market performance

4

S&P500 Index, %(2)

3

2

53.5

1

0.2

0.1

0.1

0

-1

-0.3

+39.7pp

-2

-3

-4

13.8

-5

-4.7

1Q

2Q

3Q

4Q

1Q

31.12.19

31.3.20

2019

2020

5.5

(26.9)

Mar. Jun.Sept.Dec. Mar. Jun.Sept.Dec. Mar.

8.5

(20.0)

18

18

18

18

19

19

19

19

20

First restricted "red zones" declared on February 21st, countrywide lockdown on March 10th

  1. Chicago Board Options Exchange (CBOE) Volatility Index; end of the period; source: Bloomberg
  2. Market performance between 30.9.19 and 31.12.19 and between 31.12.19 and 31.3.20

(3) Source: Bloomberg, ISTAT

18

1Q20: Highlights

    • Solid economic performance:
      • €1,151m Net income(+9.6% vs 1Q19)
      • ~€1.4bn Net income excluding €0.3bn provisionfor future COVID-19impacts, the best Q1 since 2008
      • ~€2.3bn pro-formaNet incomeincluding Nexi capital gain (more than 50% of the €4.2bn FY19 Net income already achieved)
      • Best Q1 since 2007 for Operating income at €4,882m(+11.7% vs 1Q19(1)) and best Q1 ever for Operating margin at €2,713m(+26.8% vs 1Q19(1))
      • Strong decrease in Operating costs (-2.7%vs 1Q19(1)) with Cost/Income ratio at 44.4%
      • Annualised cost of risk down to 40bps(vs 53bps in FY19)
      • Robust NPL coverage at 53.6% coupled with the lowest ever NPL Gross inflow(2)
    • Best-in-classcapital position with balance sheet further strengthened:
      • €6.1bn NPL deleveraging since 31.3.19(2)(€1.3bn in Q1(2))
      • The lowest NPL stock and NPL ratiossince 2009
      • Common Equity(3) ratio up at 14.5%, well above regulatory requirements (~+590bps(4)) even under the EBA stress test adverse scenario
      • Best-in-classleverage ratio: 6.6%
      • Strong liquidity position: LCR and NSFR well above 100%; ~€200bn Liquid assets(5)
  2. Data restated for the full line-by-line deconsolidation of the acquiring activities due to the Nexi agreement and to take into account the effects on Operating costs of the Prelios agreement related to UTP servicing
  3. Excluding the impact from the adoption of the new Definition of Default applied since November 2019
  4. Pro-formafully loaded Basel 3 (31.3.20 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, the expected absorption of DTA on losses carried forward and the expected distribution of 1Q20 Net income of insurance companies)
  5. Calculated as the difference between the Fully Loaded CET1 Ratio vs requirements SREP + Combined Buffer (taking into account the regulatory changes introduced by the ECB on 12.3.20, which require that the Pillar 2 requirement can be respected by partially using equity instruments other than CET1 and contextual revisions of the Countercyclical Capital Buffer by the competent national authorities in the various countries)
  6. Stock of own-account eligible assets (including assets used as collateral and excluding eligible assets received as collateral) and cash & deposits with Central Banks

19

1Q20: Strong Growth in Profitability and Balance Sheet Further Strengthened

Net income

€ m

x Cost/Income, %

Provision for future COVID-19

impacts (~€300m pre-tax)

1,050

~1,360

+30%

1,151

1Q19

1Q20

51.0(1)

44.4

ISP Fully Loaded CET1 Ratio

%

After €0.9bn deduction of accrued

dividends, based on the 75% Business

Plan payout ratio for 2020

13.5

14.5

~+1.0pp

31.3.19

31.3.20(3)

NPL stock

€ bn

Net NPL

x

Gross NPL ratio, %

x

Net NPL ratio, %

35.5

31.3

30.2

-15%

16.3

14.2

14.0

31.3.19

31.12.19(2)

31.3.20(2)

8.5

7.6

7.1

4.1

3.6

3.5

Excess capital

Pro-forma Fully Loaded CET1 Ratio Buffer vs requirements SREP + Combined Buffer(4), 31.3.20, bps

~590

~330

~+260bps

ISP

Peer average(5)

  1. Data restated for the full line-by-line deconsolidation of the acquiring activities due to the Nexi agreement and to take into account the effects on Operating costs of the Prelios agreement related to UTP servicing
  2. Including the impact from the adoption of the new Definition of Default applied since November 2019
  3. Pro-formafully loaded Basel 3 (31.3.20 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, the expected absorption of DTA on losses carried forward and the expected distribution of 1Q20 Net income of insurance companies)
  4. Calculated as the difference between the Fully Loaded CET1 Ratio vs requirements SREP + Combined Buffer (taking into account the regulatory changes introduced by the ECB on 12.3.20, which require that the Pillar 2 requirement can be respected by partially using equity instruments other than CET1 and contextual revisions of the Countercyclical Capital Buffer by the competent national authorities in the various countries); only top European banks that have communicated their SREP requirement
  5. Sample: BBVA, Deutsche Bank, Nordea, Santander and Société Générale (31.3.20 data). Source: Investor Presentations, Press Releases, Conference Calls, Financial Statements. Only top European banks that have communicated their 1Q20 results

20

Our Excellent Performance Creates Benefits for All Stakeholders…

Shareholders

Employees

Net income, € bn

4.2

Provision for future COVID-19 impacts (~€300m pre-tax)

Nexi capital gain to be booked in Q2/Q3

2.3

Personnel expenses, € bn

Excess capacity of ~5,000 people being reskilled

(with ~3,500 already redeployed to priority initiatives)

0.9

>50%

0.2 1.4 1.2

FY191Q201Q20

Public Sector

Taxes(1), € bn

0.8

1Q20

  1. Direct and indirect
  2. Deriving from Non-performing loans outflow

Households and Businesses

Medium/Long-term new lending, € bn

Of which €14bn in Italy

16.6

1Q20

~3,140 Italian companies helped to return to

performing status(2) in 1Q20 (~115,000 since 2014)

21

  • and Allows ISP to Be the Engine of Sustainable and Inclusive Growth…
  • €50bn in new lending dedicated to the green economy
  • €50bn in credit available to support companies and professionals during the COVID-19 emergency
  • More than €100m donated to alleviate COVID-19 impacts
  • €125m (equal to 50%) of the ISP Fund for Impact will be used to reduce the socio-economic distress caused by COVID-19

Link to video:https://group.intesasanpaolo.com/en/editorial-section/Intesa-Sanpaolo-The-driver-of-sustainable-and-inclusive-development

22

… with Many Initiatives Already Ongoing

SELECTED HIGHLIGHTS

COVID-19 related initiatives

Supported families and business affected by earthquakes and natural disasters by forgiving mortgages or

In 1Q20 evaluated ~600 start-ups(more than

granting moratoria of mortgages and subsidised loans (∼100 moratoria in 1Q 2020 for ∼€790m of residual loans) and

1,800 since 2018

) in 2 acceleration

∼€40m in subsidised loans granted in 1Q20 (∼€374m since 2018)

programs with 21 coached start-ups(256

Donated €100m to strengthen the National Health System through the Civil Protection Department to

since 2018), introducing them to selected

purchase medical equipment (e.g., intensive care unit beds), including €5m donated to the Papa Giovanni

investors and ecosystem players (~1,600 to

XXIII Hospital in Bergamo, €5m donated to the Spedali Civili di Brescia Hospital in Brescia and €6.5m

date)

donated to the Veneto Region for its hospitals

€6m in donations coming from the CEO (€1m) and top management's 2019 variable compensation,

€5bn Circular Economy credit Plafond: 322

to strengthen healthcare initiatives, with additional voluntary donations coming from ISP People and

projects evaluated, of which 94 already

Board of Directors

financed for ~€936m (€177m in 1Q20)

€5m, donated to Ricominciamo Insieme project, dedicated to Bergamo families in financial

Launched the first Sustainability Bond

and social difficulty following the COVID-19 crisis, in collaboration with the local Diocese

€1m allocated from the ISP Charity Fund to boost COVID-19 scientific research

focused on the Circular Economy (amount

€350k donated to ANA(1)

to accelerate the construction of a field hospital in Bergamo

€750m)

€50bn in credit made available to support companies and profes-

Initiatives to reduce child poverty and support people in need

sionals protecting jobs and managing payments during COVID-19

1st in Italy to launch the suspension of existing mortgage and loan

well ahead of Business Plan target, delivering since 2018:

installments for families and companies (before the regulation came

▪

~9.3 million meals

into force)

▪

~533,000 dormitory beds

1st in Italy to sign the collaboration protocol with SACE, providing

▪

~140,000 medicine prescriptions

immediate support to large corporates and SMEs under the Liquidity

▪

~103,000 articles of clothing

Decree

ISP's "Giovani e Lavoro" program underway, in partnership with

The Canova / Thorvaldsen exhibition at the Gallerie

Generation, aimed at training and introducing 5,000 young

d'Italia in Milan, in partnership with St Petersburg State

people to the Italian labour

market over three years:

Hermitage Museum and Copenhagen's Thorvaldsens

▪

Museum was one of the most visited exhibitions in

~3,900 young people, aged 18

-29, applied to the Program in

Italy with almost 200,000 visitors, 171 artworks from 83

1Q20 (~13,200 since 2019)

▪

national and international museums and collections

700+ students interviewed and ~320 students trained through

▪

14 courses

1,300+ companies involved since the beginning of the

In 1Q20 Gallerie d'Italia organized 678 workshops for

Program

ISP Fund for Impact launched in

schools involving 17,000 students, 107 tours for

4Q18 (

~€1.25bn

lending capacity)

2,000 vulnerable people and 64 cultural events

attended by 7,200 people

~36,000 doctors and nurses participated in

"Per Merito", the first line of credit without collateral

the Generation COVID-19 training on PPE,

dedicated to all Italian university students, studying in Italy

NIV and emergency management

or abroad; €8m granted in 1Q20 (€

47m since beginning of 2019)

ISP social platform activities for the

#istayathome campaign by the

P-Techinitiative started, in partnership with

Two new initiatives announced in January 2020 to support working

Ministry for Cultural Heritage, Cultural

Activities and Tourism: 424 thousand views

IBM, with the objective of training young

mothers (in Italy and India) and people over the age of 50 who have lost

and 33 thousand total interactions

professionals for new digital jobs

their jobs or have difficulty accessing pension schemes

(1) Associazione Nazionale Alpini

23

ISP Leads in the Main Sustainability Indexes and Rankings

Top ranking(1) for Sustainability

The only Italian

bank listed in the Dow Jones Sustainability Indices, in the CDP Climate A List 2019 and the 2020 Corporate Knights ''Global 100 Most Sustainable Corporations in the

World Index''

2019 Sustainable Development

Award by ASSOSEF(2) for promotion of the Sustainable Development Goals

70

A

AAA

100

97

61

A

AAA

100

94

60

A-

(3)

AAA

94

(3)

93

58

A-

AA

94

90

57

A-

AA

91

88

57

A-

A

90

85

56

A-

A

88

78

55

A-

A

79

73

55

(3)

B

A

77

72

54

B

A

74

71

53

B

BBB

71

70

53

B

BBB

63

66

51

B

BBB

(3)

61

66

50

C

BBB

60

64

(3)

49

C

BBB

51

58

46

C

BBB

51

57

45

C

BBB

46

52

44

C

BBB

38

43

(D)

  1. ISP peer group
  2. Associazione Europea Sostenibilità e Servizi Finanziari
  3. Natixis

Sources: Bloomberg ESG Disclosure Score (Bloomberg as of 30.4.20), CDP Climate Change Score 2019 (https://www.cdp.net/en/companies/companies-scores); MSCI ESG Score 2019 (https://www.msci.com/esg-ratings);

Robeco SAM (Bloomberg as of 30.4.20); Sustainalytics score (Bloomberg as of 30.4.20)

24

Growth in Profitability Achieved Thanks to Solid Operating Performance in a Challenging Environment

1Q20 P&L € m

Non-motor P&C revenues up 105%(3)

~€300m due to

provision for future

4,882

COVID-19 impacts

(15)

312

994

(1,355)

(550)

2,713

1,844

(264)

(403)

(387)

1,747

Including €191m Levies and other charges concerning the banking industry(6) (€273m pre-tax)

1,923

(545)

(227)

~€1,360m excluding provision for future COVID-19 impacts

1,151

Δ% vs 1Q19(1)

Net interest income

Net fees and commissions

Profits on financial assets and liabilities at fair value

Insurance income

Other operating income/expenses

(0.5)

(1.1)

117.0

7.2

n.m.

+0.8% vs 4Q19 adjusting for different number of days in the two quarters

Operating income

11.7

Personnel

Admin.

Depreciation

(2.3)

(5.7)

1.5

Operating costs -2.7%

Operating margin

Loan loss provisions

Other charges/gains(4)

Gross income

26.8

9.2

n.m.

9.0

Taxes

Other(5)

3.4 20.7

Net income

9.6

Δ% vs

0.0

(14.9) 179.2

1.3

n.m.

6.9

(10.7) (26.6)

(7.4)

34.6

(41.8)

n.m.

56.5

75.2

n.m.

32.0

4Q19(2)

Note: figures may not add up exactly due to rounding

  1. Data restated for the full line-by-line deconsolidation of the acquiring activities due to the Nexi agreement and to take into account the effects on Operating costs of the Prelios agreement related to UTP servicing
  2. Data restated to take into account the effects on Operating costs of the Prelios agreement related to UTP servicing
  3. Excluding credit-linked products
  4. Net provisions and net impairment losses on other assets, Other income (expenses), Income (Loss) from discontinued operations
  5. Charges (net of tax) for integration and exit incentives, Effect of purchase price allocation (net of tax), Levies and other charges concerning the banking industry (net of tax), Impairment (net of tax) of goodwill and other intangible assets, Minority interests
  6. Including charges for the Resolution Fund: €248m pre-tax (€171m net of tax), our estimated commitment for the year

25

Net Interest Income: Stable vs 4Q19 with an Increase in the Commercial Component

Quarterly comparison

Net interest income, 1Q20 vs 4Q19

€ m

+€42m commercial component when considering the different number of days in the two quarters

1,747

28

0

1,747

(17)

(11)

Commercial

Due to NPL stock

reduction

component

4Q19 Net interest income

Volumes

Spread

Hedging(1)

Financial components

1Q20 Net interest income

Yearly comparison

Net interest income, 1Q20 vs 1Q19 € m

+€34m excluding NPL stock reduction impact

1,756

33

19

1,747

(47)

(14)

Commercial

component

1Q19 Net interest income

Volumes

Spread

Hedging(1)

Financial components

1Q20 Net interest income

Note: figures may not add up exactly due to rounding

  1. ~€43m benefit from hedging on core deposits in 1Q20

26

€920 Billion in Customer Financial Assets

Direct deposits

€ bnm

+€20.4bn

excluding Repos

427.2

425.5

433.6

31.3.19

31.12.19

31.3.20

+€18.2bn in household sight

deposits on a yearly basis (of

which +€6.3bn in Q1)

Assets under Management

€ bn

358.0

341.2333.5

31.3.19 31.12.19 31.3.20

  • Decline due to negative market performance
  • +€8.8bn of AuM Net inflow on a yearly basis (+€0.5bn in Q1)

Assets under Administration

€ bn

172.3

176.4

151.7

31.3.19 31.12.19 31.3.20

Decline largely due to negative market performance

27

Continued Strong Reduction in Operating Costs while Investing for Growth

Operating costs

€ m

Administrative costs

583

749

550

-5.7%

Total Operating costs

1Q19(1)4Q19(2)1Q20

2,552

Personnel costs

2,230

2,169

-2.7%

1,387

1,518

1,355

-2.3%

f(x)

1Q19

4Q19

1Q20

Investing for growth (+3% on a yearly basis

for IT, Digital, Protection), while

Depreciation

rationalising real estate and others (-1%)

260

285

264

+1.5%

1Q19(1)

4Q19(2)

1Q20

1Q19

4Q19

1Q20

    • ISP maintains high strategic flexibility in managing costs and remains a Cost/Income leader in Europe
    • ~2,830 headcount reduction on a yearly basis, of which ~970 in Q1
    • ~2,150 additional voluntary exits by June 2021 (of which ~1,850 in 2020) already agreed with labour unions and fully provisioned
    • In addition, a further ~1,000 applications for voluntary exits already received and to be evaluated
    • Further possible branch reduction in light of the Banca 5®-SisalPay strategic partnership
  2. Data restated for the full line-by-line deconsolidation of the acquiring activities due to the Nexi agreement and to take into account the effects on Operating costs of the Prelios agreement related to UTP servicing
  3. Data restated to take into account the effects on Operating costs of the Prelios agreement related to UTP servicing

28

The Best Cost/Income Ratio in Europe

Cost/Income(1)

%

82.3

79.5

69.6 71.0

Peer average:

60.4

~60.8%

51.8

53.2

54.4

54.7

44.4

45.0

47.2

ISP

Peer 1

Peer 2

Peer 3

Peer 4

Peer 5

Peer 6

Peer 7

Peer 8

Peer 9

Peer 10 Peer 11

  1. Sample: Barclays, BBVA, Credit Suisse, Deutsche Bank, HSBC, Lloyds Banking Group, Nordea, Santander, Société Générale, Standard Chartered and UBS (31.3.20 data). Only top European banks that have communicated their 1Q20 results

29

Continuous Improvement in Asset Quality, with Lowest NPL Stock since 2009 and Lowest Quarter Ever for NPL Gross Inflow

NPL stock

€ bn

Net NPL

x Gross NPL ratio, %

x Net NPL ratio, %

64.5

-53%

35.5

31.3

30.2

34.2

16.3

14.2

14.0

30.9.15

31.3.19

31.12.19(1)

31.3.20(2)

Intrum deal

Prelios deal

17.2

8.5

7.6

7.1

10.0

4.1

3.6

3.5

18th quarter of continuous deleveraging at no cost to shareholders, €1.3bn in Q1(5)

(1) Including the ~€0.6bn gross impact from the adoption of the new Definition of Default applied since November 2019

(2) Including the ~€0.8bn gross impact from the adoption of the new Definition of Default applied since November 2019

(3) Inflow to NPL (Bad Loans, Unlikely to Pay and Past Due) from performing loans

(4) Inflow to NPL (Bad Loans, Unlikely to Pay and Past Due) from performing loans minus outflow from NPL into performing loans

(5) Excluding the ~€0.1bn gross impact from the adoption of the new Definition of Default applied since November 2019

30

Gross quarterly NPL inflow(3) from performing loans

€ m

Net inflow(4)

876

-12%

771

607

502

1Q19

1Q20(5)

Lowest quarter ever for NPL gross inflows(5)

Solid and Increased Capital Base, Well Above Regulatory Requirements

ISP CET1 Ratios vs requirements SREP + Combined Buffer

31.3.20, %

After €0.9bn deduction of accrued dividends, based on the 75% Business Plan payout ratio for 2020

14.2

14.5

~+5.9pp

8.7

ISP 2020 Fully

ISP

ISP Fully

Loaded

Phased-in

Loaded(1) CET1

requirements

CET1 Ratio

Ratio

SREP +

Combined Buffer

Fully Loaded CET1 Ratio Buffer vs requirements SREP + Combined Buffer(2)

31.3.20, bps

~590

~260bps

~330

ISP buffer vs

Peer average(3)

requirements

buffer vs

SREP +

requirements

Combined

SREP +

Buffer

Combined Buffer

~€17bn excess capital(2)

Note: figures may not add up exactly due to rounding

  1. Pro-formafully loaded Basel 3 (31.3.20 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, the expected absorption of DTA on losses carried forward and the expected distribution of 1Q20 Net income of insurance companies)
  2. Calculated as the difference between the Fully Loaded CET1 Ratio vs requirements SREP + Combined Buffer (taking into account the regulatory changes introduced by the ECB on 12.3.20, which require that the Pillar 2 requirement can be respected by partially using equity instruments other than CET1 and contextual revisions of the Countercyclical Capital Buffer by the competent national authorities in the various countries); only top European banks that have communicated their SREP requirement
  3. Sample: BBVA, Deutsche Bank, Nordea, Santander and Société Générale (31.3.20 data). Source: Investor Presentations, Press Releases, Conference Calls, Financial Statements. Only top European banks that have communicated their 1Q20 results

31

Increased Capital Buffer vs Regulatory Requirements

ISP requirements SREP + Combined Buffer

%

9.4

8.7

-70bps

ISP 2019 Fully

ISP 2020 Fully

Loaded

Loaded

requirements SREP

requirements SREP

+ Combined Buffer

+ Combined Buffer(1)

ISP Fully Loaded CET1 Ratio Buffer vs requirements SREP + Combined Buffer(2)

bps

x CET1 Fully Loaded ratio, %

After €0.9bn deduction of accrued dividends, based on the 75% Business Plan payout ratio for 2020

~590

~460

+130bps

31.12.19

31.3.20(3)

14.1

14.5

  1. Taking into account the regulatory changes introduced by the ECB on 12.3.20, which require that the Pillar 2 requirement can be respected by partially using equity instruments other than CET1 and contextual revisions of the Countercyclical Capital Buffer by the competent national authorities in the various countries
  2. Calculated as the difference between the Fully Loaded CET1 Ratio vs requirements SREP + Combined Buffer
  3. Pro-formafully loaded Basel 3 (31.3.20 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, the expected absorption of DTA on losses carried forward, the expected distribution of 1Q20 Net income of insurance companies)

32

Best-in-Class Excess Capital

Fully Loaded CET1 Ratio Buffer vs requirements SREP + Combined Buffer (1)(2)

bps

  1. Fully Loaded CET1 Ratio(2), %

Best-in-class leverage ratio: 6.6%

~590

~580

~+260bps

~360

Peer

~250

average:

~240

~220

~330bps

ISP

Peer 1

Peer 2

Peer 3

Peer 4

Peer 5

14.5(3)

16.0

12.7

11.4

12.8

10.8

ISP is a clear winner of the EBA stress test

  1. Calculated as the difference between the Fully Loaded CET1 ratio vs requirements SREP + Combined Buffer (taking into account the regulatory changes introduced by the ECB on 12.3.2020, which require that the Pillar 2 requirement can be respected by partially using equity instruments other than CET1 and contextual revisions of the Countercyclical Capital Buffer by the competent national authorities in the various countries); the Countercyclical Capital Buffer is estimated; only top European banks that have communicated their SREP requirement
  2. Sample: BBVA, Deutsche Bank, Nordea, Santander and Société Générale (31.3.20 data). Source: Investor Presentations, Press Releases, Conference Calls, Financial Statements. Only top European banks that have communicated their 1Q20 results
  3. Pro-formafully loaded Basel 3 (31.3.20 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, the expected absorption of DTA on losses carried forward and the expected distribution of 1Q20 Net income of insurance companies)

33

Best-in-Class Risk Profile in Terms of Financial Illiquid Assets

Fully Loaded CET1(1)/Total financial illiquid assets(2)

%

67

43

~+45pp

38

38

30

Peer

20

18

average:

~22%

14

13

13

9

9

ISP(3)

Peer 1

Peer 2

Peer 3

Peer 4

Peer 5

Peer 6

Peer 7

Peer 8

Peer 9

Peer 10

Peer 11

~€200bn in Liquid assets(4) with LCR and NSFR well above 100%

  1. Fully Loaded CET1: Barclays, BBVA, Credit Suisse, Deutsche Bank, HSBC, Lloyds Banking Group, Nordea, Santander, Société Générale, Standard Chartered and UBS (31.3.20 data). Only top European banks that have communicated their 1Q20 results
  2. Total illiquid assets include Net NPL, Level 2 assets and Level 3 assets. Sample: Barclays, BBVA, Deutsche Bank, HSBC, Nordea, Santander, Société Générale, Standard Chartered and UBS (31.3.20 data); Credit Suisse and Lloyds Banking Group (31.12.19 data). Level 2 and Level 3 assets as of 31.12.19
  3. 61% including the effect of Real Estate and Art, Culture and Historical Heritage portfolio revaluation
  4. Stock of own-account eligible assets (including assets used as collateral and excluding eligible assets received as collateral) and cash & deposits with Central Banks

34

Contents

ISP Is Fully Equipped for a Challenging Environment

1Q20: An Excellent Start to a Challenging Year

Combination with UBI Banca

Final Remarks

35

Progress Update on UBI Banca Exchange Offer

Transaction approved by ISP Extraordinary Shareholder General Meeting (EGM)

Exchange ratio confirmed at 1.70x, even following the suspension of the dividend payment on 2019 Net

Income(1). ~28%(2) premium offered to UBI Banca shareholders, with an increase of ~5pp vs premium

announced on 17.2.20 (ISP intends to convene an Ordinary Shareholders' Meeting after 1.10.20 to execute

the distribution of part of the reserves to shareholders by the end of the financial year 2020(3), which, if

approved, will also benefit UBI Banca shareholders that have tendered their shares)

Very disciplined transaction management and low execution risk (consideration for disposal to BPER

of a portion of the combined branch network revised to the lower of 0.55x of CET1 capital allocated to the identified banking network and 80% of the implied multiple paid by ISP for the CET1 capital of UBI Banca)

Offer will be conditioned upon valid tender of 66.67% of UBI Banca share capital, value creation largely achievable even if ISP acquires just 50% + 1 share: ISP will proceed with the planned initiatives (i.e., integration of IT systems, disposal of branches, de-riskingand integration of the activities between the two banking groups) even with 50% + 1 share

Strong support to UBI Banca's reference territories of interest, further enhancing local presence and

leveraging a strengthened banking group

Strong transaction rationale even more compelling in the aftermath of the COVID-19

outbreak for both ISP and UBI Banca shareholders

  1. In compliance with the ECB's recommendation dated 27.3.20 on dividend policy in the aftermath of the COVID-19 pandemic, ISP's proposed distribution of €3.4bn cash dividend on 2019 Net income, equal to 19.2 euro cents per share, has been suspended by ISP Board of Directors on 31.3.20
  2. Factset, volume-weighted average share price as at 14.2.20
  3. Subject to the indications of the ECB

36

Fully on Track to Complete Exchange Offer by August 2020

17 February 2020

6 March 2020

27 April 2020

Beginning of

June 2020

Mid June 2020

End of June

2020

August 2020

End of 2020

Delivery

ISP's Notice pursuant to Art. 102

✓

Exchange Offer Document filing

✓

ISP Annual Shareholders' General Meeting conferring mandate to the BoD

✓

for Capital Increase

Expected authorisations by supervisory authorities

Expected approval of the Exchange Offer Document by CONSOB

Start of the Exchange Offer period

Envisaged settlement of the Exchange Offer

Envisaged disposal of branches and related assets and liabilities to BPER

Banca upon the fulfilment of the conditions set forth in the Agreement

Note: refer to the communication pursuant to article 102 of Legislative Decree 24 February 1998 no. 58 for further information on the Offer

37

Transaction Terms Remain Unchanged

Consideration

and Premium

offered

Offer conditions

  • Exchange Ratio of 1.70 newly issued ISP shares for each UBI Banca share tendered
  • Implied premium(1) of ~28% and ~39% based on spot and 6-monthvalue-weighted average price
  • At least 66.67% of UBI Banca's share capital to be acquired. This condition can be waived by ISP at its own discretion, provided that at least 50% + 1 share has been acquired. In particular, under such scenario, it is worth noting that:
    • The envisaged value creation remains largely confirmed
    • ISP would, in any case, proceed with the planned activities for the integration of UBI Banca aimed at de-riskingUBI Banca's balance sheet and supporting value creation
    • No premium envisaged for the remaining minority UBI Banca shareholders following the merger

Additional

agreements to pre-emptively address potential Antitrust concerns

  • Sale for cash of a 400 / 500 branch network: Agreement with BPER with a price mechanism to reflect market conditions (i.e. consideration equal to the lower of (i) 0.55x of the CET1 capital allocated to the identified branch network, or (ii) 80% of the implied multiple paid by ISP for the CET1 capital of UBI Banca)
  • Sale for cash to UnipolSai of insurance activities related to the branches sold to
    BPER

Note: refer to the communication pursuant to article 102 of Legislative Decree 24 February 1998 no. 58 for further information on the Offer

(1) Based on FactSet as at 14.2.2020

38

Solid Transaction Rationale Gains Strength in the COVID-19 Context

European leader with a resilient and diversified business model

Significant synergy generation (~€730m annually pre-tax)with no social costs, largely achievable

even in the case of ISP acquiring just 50% + 1 share

Negative goodwill of €3.9bn(1) arising from the transaction fully covers integration costs (~€1.3bn pre-tax, ~€0.9bn net of tax) and additional Loan loss provisions to accelerate NPL deleveraging (~€1.8bn pre-tax, ~€1.2bn net of tax)

Accelerating NPL reduction, at no cost to shareholders: in 2020, expected additional Loan loss

provisions (~€1.2bn net of tax) leveraging the negative goodwill from the transaction; in 2021,

expected ~€4bn UBI Banca gross NPL disposal on highly provisioned positions

UBI shareholders adhering to the Offer would benefit from ISP dividend payment on 2019 Net

Income (subject to compliance with ECB and ISP Shareholders Meeting resolution)

Payout ratio(2) of 75% in 2020 and 70% in 2021

Solid capital position (Common Equity(3) ratio >13% in 2021)

Net income expected above ~€5bn starting in 2022

Beyond 2021, rewarding shareholders while maintaining solid capital position

Very low execution risk due to ISP's proven track record in managing integrations

  1. Based on ISP share price as at 30.4.20. Net of the impact from the Agreement with BPER Banca to sell a portion of branches and related assets and liabilities to pre-emptively address Antitrust issues. The effective determination of the negative goodwill will result from the outcome of the Purchase Price Allocation procedure envisaged by accounting principle IFRS3
  2. Excluding net income generated by the negative goodwill not allocated to integration costs and accelerated NPL deleveraging
  3. 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 and the expected absorption of DTA on losses carried forward). CET1 ratio fully phased in >12%

39

Attractive Value Proposition for the Territory, Customers, Community and People of the UBI Group

Creation of 4 new regional Departments in Bergamo, Brescia, Cuneo and Bari, each with its own network of

around 300-400 branches with high lending capacity and managerial autonomy: credit faculty up to €50 million for

each regional Department manager, with autonomy in spending and personnel resource management

Creation of a centre of excellence in Pavia for agriculture coordinating all Group activities in this sector

UBI Banca brand enhancement in reference territories if customer surveys rank UBI brand above ISP's

Additional €10bn in lending per year in the three-yearperiod 2021-2023,with no reduction in credit granted to

mutual customers

Creation of Consigli del Territorio: local oversight committees to coordinate initiatives, formed by bank

representatives and prominent community leaders

Stipulation of agreements to benefit local communities: real estate and artistic heritage, donations to the territory,

innovation and scientific research, welfare, social housing, healthcare...

Full involvement of UBI's territorial Foundations in ISP's initiatives to support local communities, and enhancement

of their role for ISP's social and cultural actions

Creation of a leading Impact Bank, with a new unit based in Brescia, Bergamo and Cuneo (UBI Banca's

envisaged standalone initiatives in Sustainability and social support for the territory will be doubled)

Hiring of 2,500 young people (one young person for every two voluntary exits) with more than half in the territories

of Bergamo, Brescia, Pavia, Cuneo and southern Italy

Enhancement of UBI Banca personnel across various Divisions and Governance areas. For example: the Heads of

the new regional Departments (Bergamo, Brescia, Cuneo and Bari) and of the centre of excellence for agriculture (Pavia) will be appointed from among UBI Banca People; the people of UBI Banca to remain in their territories

without any social impact

Talent development program will include ~300 people from UBI Banca (~100 more than UBI Banca standalone)

40

Contents

ISP Is Fully Equipped for a Challenging Environment

1Q20: An Excellent Start to a Challenging Year

Combination with UBI Banca

Final Remarks

41

ISP Is Fully Equipped to Face the Crisis

ISP is fully equipped for a challenging environment:

  • Best-in-classexcess capital, low leverage and strong liquidity
  • ~€1.5bn additional buffers to tackle future COVID-19impacts
  • Low NPL stock, with robust coverage at 53.6%
  • Well-diversifiedand resilient business model
  • High strategic flexibility in managing costs, with Cost/Income ratio at 44.4%

ISP has delivered an excellent Q1:

  • Highest Q1 Net income(1) since 2008
  • Best Q1 ever for Operating margin, driven by revenue growth and cost reduction
  • The lowest ever gross NPL inflow
  • Continue delivering best-in-class profitability with:
    • Minimum ~€3bn Net income in 2020 assuming cost of risk potentially up to ~90bps
    • Minimum ~€3.5bn Net income in 2021 assuming cost of risk potentially up to ~70bps
  • Maintain a solid capital position (Common Equity(2) ratio >13%, even taking into account the potential distribution of 2019 suspended dividends subject to the ECB recommendation(3))
  • Deliver payout ratio of 75% in 2020 and 70% in 2021

The combination with UBI Banca has an even stronger industrial

rationale in the COVID-19 emergency, with significant value generation

largely achievable even in the case of ISP acquiring 50% + 1 share

  1. When excluding ~€300m provisions for the COVID-19 impact
  2. 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 and the expected absorption of DTA on losses carried forward). CET1 ratio fully phased in >12%
  3. After 1.10.20 by year end

42

1Q20 Results

Detailed Information

MIL-BVA327-15051trim.13-90141/LR

Key P&L and Balance Sheet Figures

€ m

Operating income

Operating costs

Cost/Income ratio

Operating margin

Gross income (loss)

Net income

1Q20

4,882

(2,169)

44.4%

2,713

1,923

1,151

Loans to Customers

Customer Financial Assets(1)

of which Direct Deposits from Banking Business

of which Direct Deposits from Insurance Business and Technical Reserves

of which Indirect Customer Deposits

  • Assets under Management
  • Assets under Administration

RWA

31.3.20

404,900

919,602

433,618

156,454

485,168

333,470

151,698

297,119

Note: figures may not add up exactly due to rounding

(1) Net of duplications between Direct Deposits and Indirect Customer Deposits

44

Contents

Detailed Consolidated P&L Results

Liquidity, Funding and Capital Base

Asset Quality

Divisional Results and Other Information

45

1Q20 vs 1Q19: ~€1,360m Net Income Excluding the ProvisionMIL-BVA327-15051trimfor.13-90141/LR Future COVID-19 Impacts, Best Q1 Result since 2008

€ m

1Q19

1Q20

%

pro-forma(1)

Net interest income

1,756

1,747

(0.5)

Net fee and commission income

1,865

1,844

(1.1)

Income from insurance business

291

312

7.2

Profits on financial assets and liabilities at fair value

458

994

117.0

Other operating income (expenses)

(1)

(15)

n.m.

Operating income

4,369

4,882

11.7

Personnel expenses

(1,387)

(1,355)

(2.3)

Other administrative expenses

(583)

(550)

(5.7)

Adjustments to property, equipment and intangible assets

(260)

(264)

1.5

Operating costs

(2,230)

(2,169)

(2.7)

Operating margin

2,139

2,713

26.8

Net adjustments to loans

(369)

(403)

9.2

Net provisions and net impairment losses on other assets

(30)

(419)(2)

n.m.

Other income (expenses)

6

3

(50.0)

Income (Loss) from discontinued operations

19

29

52.6

Gross income (loss)

1,765

1,923

9.0

Taxes on income

(527)

(545)

3.4

Charges (net of tax) for integration and exit incentives

(22)

(15)

(31.8)

Effect of purchase price allocation (net of tax)

(40)

(26)

(35.0)

Levies and other charges concerning the banking industry (net of tax)

(146)

(191)(3)

30.8

Impairment (net of tax) of goodwill and other intangible assets

0

0

n.m.

Minority interests

20

5

(75.0)

Net income

1,050

1,151

9.6

+27% excluding the provision for future COVID-19 impacts

+30% excluding the provision for future COVID-19 impacts

Note: figures may not add up exactly due to rounding

  1. Data restated for the full line-by-line deconsolidation of the acquiring activities due to the Nexi agreement and to take into account the effects on Operating costs of the Prelios agreement related to UTP servicing
  2. Including ~€300m (~€210m net of tax) provision for future COVID-19 impacts
  3. €273m pre-tax of which charges for the Resolution Fund: €248m pre-tax (€171m net of tax), our estimated commitment for the year

46

Q1 vs Q4: Strong Growth in Profitability

€ m

4Q19

1Q20

Δ%

pro-forma(1)

Net interest income

1,747

1,747

0.0

Net fee and commission income

2,166

1,844

(14.9)

Income from insurance business

308

312

1.3

Profits on financial assets and liabilities at fair value

356

994

179.2

Other operating income (expenses)

(10)

(15)

50.0

Operating income

4,567

4,882

6.9

Personnel expenses

(1,518)

(1,355)

(10.7)

Other administrative expenses

(749)

(550)

(26.6)

Adjustments to property, equipment and intangible assets

(285)

(264)

(7.4)

Operating costs

(2,552)

(2,169)

(15.0)

Operating margin

2,015

2,713

34.6

Net adjustments to loans

(693)

(403)

(41.8)

Net provisions and net impairment losses on other assets

(168)

(419)(2)

149.4

Other income (expenses)

50

3

(94.0)

Income (Loss) from discontinued operations

25

29

16.0

Gross income (loss)

1,229

1,923

56.5

Taxes on income

(311)

(545)

75.2

Charges (net of tax) for integration and exit incentives

(27)

(15)

(44.4)

Effect of purchase price allocation (net of tax)

(12)

(26)

116.7

Levies and other charges concerning the banking industry (net of tax)

(22)

(191)(3)

768.2

Impairment (net of tax) of goodwill and other intangible assets

0

0

n.m.

Minority interests

15

5

(66.7)

Net income

872

1,151

32.0

Note: figures may not add up exactly due to rounding

  1. Data restated to take into account the effects on Operating costs of the Prelios agreement related to UTP servicing
  2. Including ~€300m (~€210m net of tax) provision for future COVID-19 impacts
  3. €273m pre-tax of which charges for the Resolution Fund: €248m pre-tax (€171m net of tax), our estimated commitment for the year

47

MIL-BVA327-15051trim.13-90141/LR

+82% excluding the provision for future COVID-19 impacts

+56% excluding the provision for future COVID-19 impacts

Net Interest Income: Stable vs Q4 Despite All-Time Low Interest Rates

Quarterly Analysis

Yearly Analysis

€ m

Euribor 1M; % € m

Euribor 1M; %

1,747

1,747

0.0%

-0.45

-0.47

4Q19

1Q20

1,756

1,747

-0.5%

-0.37

-0.47

1Q19

1Q20

pro-forma

  • +0.8% when considering an equal number of days in the two quarters
  • 2.9% growth in average Performing loans to customers
  • Decrease due to decline in market rates, NPL stock reduction and lower contribution from core deposit hedging
  • 3.7% growth in average Direct deposits from banking business
  • 3.4% growth in average Performing loans to customers

48

Net Interest Income: Quarterly Increase in the Commercial Component

Quarterly Analysis

Yearly Analysis

€ m

€ m

+€42m when considering the different

+€34m excluding NPL

number of days in the two quarters

stock reduction impact

1,747

28

0

1,747

1,756

33

19

1,747

(17)

(11)

(47)

(14)

Commercial

Due to NPL stock

Commercial

reduction

component

component

4Q19

Volumes Spread

Hedging(1)

Financial

1Q20

1Q19

Volumes Spread

Hedging(1)

Financial

1Q20

components

pro-forma

components

Note: figures may not add up exactly due to rounding

(1) ~€43m benefit from hedging on core deposits in 1Q20

49

Net Fee and Commission Income: Impacted by the Challenging Environment

Quarterly Analysis

€ m

2,166

1,844 -14.9%

4Q19 1Q20

Yearly Analysis

€ m

1,865 1,844

1Q19 1Q20 pro-forma

-1.1%

  • Decrease due to the decline in performance fees, the year-end seasonality in Commercial banking activities and difficult market conditions
  • Growth in commissions from Management, dealing and consultancy activities (+2.8%; +€31m), despite difficult market conditions

50

Profits on Financial Assets and Liabilities at Fair Value: Best Quarter Ever

Quarterly Analysis

€ m

994

356

4Q19 1Q20

Customers

Capital markets

Trading and Treasury

Structured credit products

Note: figures may not add up exactly due to rounding

Yearly Analysis

€ m

994

+179.2%

458

+117.0%

1Q19

1Q20

pro-forma

Contributions by Activity

1Q19

4Q19

1Q20

pro-forma

142

139

148

82

22

405

218

198

480

16

(3)

(38)

51

Operating Costs: Further Significant Reduction while InvestingMIL-BVA327-15051trim.13for-90141/LRGrowth

Quarterly Analysis

Yearly Analysis

Operating Costs

€ m

€ m

2,552

-15.0%

2,169

4Q19

1Q20

pro-forma

Other Administrative Expenses

€ m

€ m

749 550 -26.6%

4Q19 1Q20

pro-forma

Personnel Expenses

Operating Costs

Personnel Expenses

€ m

€ m

1,518

1,355

-10.7%

2,230

2,169 -2.7%

1,355 -2.3%

1,387

4Q19

1Q20

1Q19

1Q20

1Q19

1Q20

pro-forma

Adjustments

Other Administrative Expenses

Adjustments

€ m

€ m

285

264

-7.4%

583

550 -5.7%

264 +1.5%

260

4Q19

1Q20

1Q19

1Q20

1Q19

1Q20

pro-forma

  • Strong decrease vs Q4, a quarter affected by seasonal year-end effect
  • ~970 headcount reduction in Q1

52

  • Strong reduction (-5.7%) in Other administrative expenses
  • Cost/Income ratio down to 44.4% (vs 51.9% in FY19 pro-forma)
  • Increase in Adjustments due to investments to trigger growth
  • ~2,830 headcount reduction

Net Adjustments to Loans: Quarterly Reduction Coupled with a Strong Decrease in NPL Stock and Inflows

Quarterly Analysis

Yearly Analysis

€ m

€ m

693

403

-41.8%

403

369

+9.2%

4Q19

1Q20

1Q19

1Q20

pro-forma

  • Eighteenth consecutive quarterly reduction in NPL stock, at no cost to shareholders
  • The lowest-ever gross NPL inflow(1)
  • €1.3bn(1) gross NPL deleveraging in Q1
  • Annualised cost of credit down to 40bps (vs 53bps in FY19)
  • €6.1bn(1) gross NPL deleveraging on a yearly basis (~€35bn(1) since the peak of 30.9.15)

(1) Excluding the impact from the adoption of the new Definition of Default (DoD) since November 2019

53

Contents

Detailed Consolidated P&L Results

Liquidity, Funding and Capital Base

Asset Quality

Divisional Results and Other Information

54

€920 Billion in Customer Financial Assets

  • 31.3.20 vs 31.3.19 and 31.12.19

Customer Financial Assets(1)

Direct Deposits from Banking Business

€ bn

€ bn

942

961

920

427

426

434

31.3.19

31.12.19

31.3.20

31.3.19

31.12.19

31.3.20

(2.3)

(4.3)

+1.5

+1.9

Direct Deposits from Insurance Business and

Indirect Customer Deposits

Technical Reserves

€ bn

€ bn

Assets under adm.

514

534

Assets under mgt.

485

154

166

156

172

176

152

341

358

333

31.3.19

31.12.19

31.3.20

31.3.19

31.12.19

31.3.20

+1.4

(5.7)

(5.5)

(9.2)

Note: figures may not add up exactly due to rounding

55

(1) Net of duplications between Direct Deposits and Indirect Customer Deposits

MIL-BVA327-15051trim.13-90141/LR

Mutual Funds Mix

Mutual funds mix

%

100

100

100

100

Fixed income,

57%

45%

46%

49%

monetary and

other funds

+8pp

Equity,

55%

54%

51%

balanced

43%

and flexible

funds

31.12.13

31.12.18

31.12.19

31.3.20

56

MIL-BVA327-15051trim.13-90141/LR

Funding Mix

Breakdown of Direct Deposits from Banking Business

€ bn; 31.3.20

% Percentage of total

434

338

95

Wholesale RetailTotal

22

78

100

  • Current accounts and deposits
  • Repos and securities lending
  • Senior bonds
  • Covered bonds
  • Short-terminstitutional funding
  • Subordinated liabilities
  • Other deposits

Wholesale Retail

8312

14-

399(1)

12-

12(2)-

8

Placed with

2

Private Banking

clients

316(3)

Retail funding represents 78% of Direct deposits from banking business

Note: figures may not add up exactly due to rounding

  1. 40% placed with Private Banking clients
  2. Including €1bn in EMTN puttable and €11bn in Certificates of deposit + Commercial papers

(3) Including Certificates

57

Strong Funding Capability: Broad Access to International Markets

2020-2022 MLT Maturities

€ bn

Wholesale

Retail

ISP Main Wholesale Issues

2019

~€6bn of bonds expiring in the period

1.4.20 - 31.12.20, of which ~€5bn wholesale

◼ €1bn covered bonds, JPY13.2bn (~€105m) senior unsecured, €3.5bn

senior unsecured, CHF250m senior unsecured, $2bn senior unsecured

and €750m green bond placed. On average 94% demand from foreign

investors; orderbooks average oversubscription ~2.4x

❑ February: €1bn covered bonds backed by residential mortgages

11

12

❑ March: second senior unsecured Tokyo Pro-Bond transaction for a

total of JPY13.2bn (~€105m) split between 3y and 15y tranches

9

❑ June: €2.25bn dual tranche 5/10y senior unsecured issue

❑ September: inaugural CHF250m 5y senior unsecured issue and $2bn

9

9

triple-tranche senior unsecured issue split between $750m 5y, $750m

10y and $500m 30y

7

2

2

3

❑ November: €1.25bn 7y senior unsecured issue and €750m 5y senior

unsecured green bond focused on the Circular Economy, under the ISP

Sustainability Bond Framework

2020

FY20 FY21 FY22◼ GBP350m senior unsecured and €1.5bn AT1 placed. On average 89%

demand from foreign investors; orderbooks average oversubscription ~3.9x

❑ January: GBP350m 10y senior unsecured issue, first GBP transaction by an Italian bank since 2010

❑ February: €1.5bn dual-tranche 5/10y Additional Tier 1 issue, the first ever dual-tranche AT1 in the Euro market

Note: figures may not add up exactly due to rounding

58

High Liquidity: ~€200bn in Liquid Assets with LCR and NSFR Well

Above Regulatory Requirements

Liquid assets(1)

Unencumbered eligible assets with Central

Banks(2) (net of haircuts)

€ bn

€ bn

194

190

199

99

118

96

31.3.19

31.12.19

31.3.20

31.3.19

31.12.19

31.3.20

    • Total refinancing operations with the ECB: ~€68.4bn(3) (of which TLTRO: ~€53.9bn,
      LTRO: €7bn, and US$ refinancing operations: ~€7.5bn countervalue)
    • Loan to Deposit ratio(4) at 93%
  2. Stock of own-account eligible assets (including assets used as collateral and excluding eligible assets received as collateral) and cash & deposits with Central Banks
  3. Eligible assets freely available (excluding assets used as collateral and including eligible assets received as collateral) and cash & deposits with Central Banks
  4. In March 2020, a ~€4.8bn countervalue borrowed under the US$ refinancing operations, with maturity on 11.6.20, ~€18bn borrowed under the TLTRO III against a partial repayment of ~€12.5bn of the amount taken under the previous TLTRO II, €7bn borrowed under the LTRO, with maturity on 24.6.20 and a ~€2.7bn countervalue borrowed under the US$ refinancing operations, with maturity on 18.6.20. In December 2019, €17bn borrowed under the TLTRO III (out of a maximum allowance of ~€54bn) against a partial repayment of €29bn of the amount taken under the previous TLTRO II (~€60.5bn)
  5. Loans to Customers/Direct Deposits from Banking Business

59

Solid and Increased Capital Base

Phased-in Common Equity Ratio

Phased-in Tier 1 Ratio

Phased-in Total Capital Ratio

%

%

%

17.2

17.7

18.5

13.1

13.9

14.2

14.8

15.3

16.1

31.3.19

31.12.19

31.3.20(1)

31.3.19

31.12.19

31.3.20(1)

31.3.19

31.12.19

31.3.20(1)

    • 14.5% pro-forma fully loaded Common Equity ratio(2)
    • 6.6% leverage ratio
  2. Considering the suspension of the 2019 dividend proposal regarding the ~€3.4bn cash distribution to shareholders - in compliance with the ECB recommendation dated 27.3.20 on dividend policy in the aftermath of the COVID-19 epidemic -, the impact from IFRS9 FTA phasing-in (~20bps in 1Q20) and after the deduction of accrued dividends, assumed equal to 75% of the Net income for the period, and coupons accrued on the Additional Tier 1 issues
  3. Pro-formafully loaded Basel 3 (31.3.20 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, the expected absorption of DTA on losses carried forward and the expected distribution of 1Q20 Net income of insurance companies)

60

Contents

Detailed Consolidated P&L Results

Liquidity, Funding and Capital Base

Asset Quality

Divisional Results and Other Information

61

MIL-BVA327-15051trim.13-90141/LR

Non-performing Loans: Sizeable Coverage

Cash coverage; %

Total NPL(1)

54.6% excluding DoD(2) impact

54.1

54.6

53.6

31.3.19

31.12.19

31.3.20

Bad Loans

Unlikely to Pay

Past Due

66.2

65.3

64.4

27.4% excluding DoD(2) impact

37.1

38.7

38.7

25.2

16.0

15.9

31.3.19

31.12.19

31.3.20

31.3.19

31.12.19

31.3.20

31.3.19

31.12.19

31.3.20

  1. Bad Loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past Due (Scaduti e sconfinanti)
  2. New Definition of Default applied since November 2019

62

Non-performing Loans: Lowest-ever Gross Inflow

Gross inflow of new NPL(1) from Performing Loans

Net inflow of new NPL(1) from Performing Loans

  • bn
    3.5 3.4

2.8 -78%

2.2

1.6

Impact from the acquisition of the two former Venetian banks

1.2

1.1

0.9

0.8

€ bn

Impact from the acquisition of the two former Venetian banks

2.5

2.0

-80%

1.5

1.3

1.2

0.7 0.6 0.6 0.5

(2)

(3)

1Q12

1Q13

1Q14

1Q15

1Q16

1Q17

1Q18

1Q19

1Q20

(2)

(3)

1Q12

1Q13

1Q14

1Q15

1Q16

1Q17

1Q18

1Q19

1Q20

  1. Bad Loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past Due (Scaduti e sconfinanti)
  2. 2012 figures recalculated to take into consideration the regulatory changes to Past Due classification criteria introduced by the Bank of Italy (90 days since 2012 vs 180 days up until 31.12.11)
  3. Excluding ~€0.1bn impact from the adoption of the new Definition of Default (DoD) since November 2019

63

MIL-BVA327-15051trim.13-90141/LR

Non-performing Loans: Strong Decrease in Gross Inflow

€ m

Gross inflow of new NPL(1) from Performing Loans

876

809

771

-12%

1Q194Q19(2)1Q20(3)

Bad LoansUnlikely to Pay

433

529

365

16

11

12

1Q19

4Q19

1Q20

1Q19

4Q19(4)

1Q20(5)

Note: figures may not add up exactly due to rounding

(1)

Bad Loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past Due (Scaduti e sconfinanti)

(2)

Excluding €623m one-off impact from the adoption of the new Definition of Default (DoD) since November 2019

(3)

Excluding €129m impact from the adoption of the new Definition of Default (DoD) since November 2019

(4)

Excluding €57m one-off impact from the adoption of the new Definition of Default (DoD) since November 2019

(5)

Excluding €16m impact from the adoption of the new Definition of Default (DoD) since November 2019

(6)

Excluding €566m one-off impact from the adoption of the new Definition of Default (DoD) since November 2019

(7)

Excluding €113m impact from the adoption of the new Definition of Default (DoD) since November 2019

64

Past Due

427 269 394

1Q19 4Q19(6) 1Q20(7)

MIL-BVA327-15051trim.13-90141/LR

Non-performing Loans: Strong Decrease in Net Inflow

€ m

Net inflow of new NPL(1) from Performing Loans

607

541

502

-17%

1Q194Q19(2)1Q20(3)

Bad Loans

Unlikely to Pay

243

345

173

6

1

(3)

1Q19

4Q19(4)

1Q20(5)

1Q19

4Q19

1Q20

Note: figures may not add up exactly due to rounding

  1. Bad Loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past Due (Scaduti e sconfinanti)
  2. Excluding €623m one-off impact from the adoption of the new Definition of Default (DoD) since November 2019
  3. Excluding €129m impact from the adoption of the new Definition of Default (DoD) since November 2019
  4. Excluding €57m one-off impact from the adoption of the new Definition of Default (DoD) since November 2019
  5. Excluding €16m impact from the adoption of the new Definition of Default (DoD) since November 2019
  6. Excluding €566m one-off impact from the adoption of the new Definition of Default (DoD) since November 2019
  7. Excluding €113m impact from the adoption of the new Definition of Default (DoD) since November 2019

65

Past Due

358

195

332

1Q19

4Q19(6)

1Q20(7)

MIL-BVA327-15051trim.13-90141/LR

New Bad Loans: Decrease in Gross Inflow

  • bn

Group's new Bad Loans(1) gross inflow

BdT

0.7

C&IB

International

0.1

0.4

Subsidiary Banks

0.1

0.1

0.3

0.5

0.3

1Q19

4Q19

1Q20

BdT's new Bad Loans(1) gross inflow

C&IB's new Bad Loans(1) gross inflow

1Q19

4Q19

1Q20

1Q19

4Q19

1Q20

Total

0.3

0.5

0.3

Total

-

0.1

-

Households

0.1

0.1

0.1

Banca IMI(2)

-

-

-

SMEs

0.2

0.4

0.2

Global Corporate

-

0.1

-

Note: figures may not add up exactly due to rounding

  1. Sofferenze
  2. Capital Markets and Investment Banking

International

-

-

-

Financial Institutions

-

-

-

66

MIL-BVA327-15051trim.13-90141/LR

New Unlikely to Pay: Decrease in Gross Inflow

  • bn

Group's gross inflow of new Unlikely to Pay

BdT

0.8

1.0

C&IB

0.1

0.7

International

0.1

0.1

Subsidiary Banks

0.1

0.1

0.8

0.7

0.6

1Q19

4Q19

1Q20

BdT's gross inflow of new Unlikely to Pay

C&IB's gross inflow of new Unlikely to Pay

1Q19

4Q19

1Q20

1Q19

4Q19

1Q20

Total

0.6

0.8

0.7

Total

0.1

0.1

-

Households

0.2

0.3

0.3

Banca IMI(1)

-

-

-

SMEs

0.4

0.5

0.4

Global Corporate

0.1

0.1

-

International

-

-

-

Financial Institutions

-

-

-

Note: figures may not add up exactly due to rounding

(1) Capital Markets and Investment Banking

67

Non-performing Loans: Eighteenth Consecutive Quarterly Decline in Stock

  • bn

Gross NPL

€ bn

31.3.19

31.12.19

31.3.20

Net NPL

31.3.19 31.12.19 31.3.20

Bad Loans

- of which forborne

Unlikely to pay

- of which forborne

Past Due

- of which forborne

21.0

19.4

18.4

Bad Loans

2.6

2.7

2.4

- of which forborne

14.0

11.0

10.8

Unlikely to pay

6.3

4.4

4.2

- of which forborne

€0.3bn excluding DoD(1)

€0.3bn excluding DoD(1)

0.5

0.9

1.0

Past Due

-

0.1

0.1

- of which forborne

€30.7bn excluding DoD(1)

€29.4bn excluding DoD(1)

7.1

6.7

1.0

1.1

8.8

6.7

4.4

2.9

€0.2bn excluding DoD(1)

0.4

0.7

-

0.1

€13.7bn excluding DoD(1)

6.6

1.0

6.6

2.8

€0.2bn excluding DoD(1)

0.8

0.1

€13.3bn excluding DoD(1)

Total

35.5

31.3

30.2

Total

16.3

14.2

14.0

~€35bn(1) NPL deleveraging since the peak of 30.9.15 (of which €1.3bn(1) in Q1), leading to

the lowest NPL stock and NPL ratios since 2009

Note: figures may not add up exactly due to rounding

(1) Excluding the impact from the adoption of the new Definition of Default (DoD) since November 2019

68

MIL-BVA327-15051trim.13-90141/LR

Loans to Customers: A Well-diversified Portfolio

Breakdown by business area

(data as at 31.3.20)

Repos, Capital markets and

Financial InstitutionsGlobal Corporate & Structured Finance

Non-profit13%

Breakdown by economic business sector

31.3.20

Loans of the Italian banks and companies of the Group

Households

28.4%

Public Administration

1.9%

Financial companies

9.2%

Non-financial companies

32.0%

1%

SMEs 17%

22%

of which:

SERVICES

6.4%

DISTRIBUTION

5.1%

REAL ESTATE

3.2%

UTILITIES

2.7%

CONSTRUCTION

1.8%

METALS AND METAL PRODUCTS

1.7%

AGRICULTURE

1.5%

12% International

Network

Consumer

6%

Finance

6%

RE & Construction

23%

Residential Mortgages

  • Low risk profile of residential mortgage portfolio
    • Instalment/available income ratio at 31%
    • Average Loan-to-Value equal to 57%
    • Original average maturity equal to ~23 years
    • Residual average life equal to ~18 years

Note: figures may not add up exactly due to rounding

69

FOOD AND DRINK

1.3%

TRANSPORT

1.2%

MECHANICAL

1.0%

FASHION

0.9%

INTERMEDIATE INDUSTRIAL PRODUCTS

0.9%

ELECTROTECHNICAL AND ELECTRONIC

0.6%

TRANSPORTATION MEANS

0.6%

HOLDING AND OTHER

0.5%

ENERGY AND EXTRACTION

0.4%

INFRASTRUCTURE

0.3%

BASE AND INTERMEDIATE CHEMICALS

0.3%

PUBLISHING AND PRINTING

0.3%

MATERIALS FOR CONSTRUCTION

0.3%

NON-CLASSIFIED UNITS

0.3%

FURNITURE

0.2%

PHARMACEUTICAL

0.2%

OTHER CONSUMPTION GOODS

0.2%

MASS CONSUMPTION GOODS

0.1%

WHITE GOODS

0.1%

Rest of the world

13.3%

Loans of international banks and companies of the Group

11.8%

Non-performing loans

3.5%

TOTAL

100.0%

Contents

Detailed Consolidated P&L Results

Liquidity, Funding and Capital Base

Asset Quality

Divisional Results and Other Information

70

MIL-BVA327-15051trim.13-90141/LR

Divisional Financial Highlights

Data as at 31.3.20

Divisions

Banca dei

Corporate &

International

Private

Asset

Corporate

Investment

Subsidiary

(3)

Insurance

(4)

Centre /

Total

(2)

Territori

Banking

(1)

Banking

Management

(5)

Banks

Others

Operating Income (€ m)

2,054

1,633

468

478

168

283

(202)

4,882

Operating Margin (€ m)

818

1,368

229

337

135

239

(413)

2,713

Net Income (€ m)

280

911

143

227

100

160

(670)

1,151

Cost/Income (%)

60.2

16.2

51.1

29.5

19.6

15.5

n.m.

44.4

RWA (€ bn)

85.4

105.8

32.6

9.4

1.3

0.0

62.7

297.1

Direct Deposits from Banking Business (€ bn)

202.5

88.6

42.9

39.9

0.0

0.0

59.6

433.6

Loans to Customers (€ bn)

195.4

144.3

34.5

9.0

0.2

0.0

21.5

404.9

Note: figures may not add up exactly due to rounding

  1. Excluding the Russian subsidiary Banca Intesa included in C&IB
  2. Fideuram, Intesa Sanpaolo Private Banking, Intesa Sanpaolo Private Bank (Suisse) Morval, and Siref Fiduciaria
  3. Eurizon
  4. Fideuram Vita, Intesa Sanpaolo Assicura, Intesa Sanpaolo Life and Intesa Sanpaolo Vita
  5. Treasury Department, Central Structures and consolidation adjustments

71

Banca dei Territori: 1Q20 vs 1Q19

€ m

Net interest income Net fee and commission income Income from insurance business Profits on financial assets and liabilities at fair value Other operating income (expenses) Operating income Personnel expenses Other administrative expenses Adjustments to property, equipment and intangible assets Operating costs

Operating margin Net adjustments to loans Net provisions and net impairment losses on other assets Other income (expenses) Income (Loss) from discontinued operations

MIL-BVA327-15051trim.13-90141/LR

1Q19

1Q20

%

pro-forma

(1)

1,037

1,046

0.9

1,018

990

(2.8)

0

0

n.m.

18

18

0.0

(1)

0

n.m.

2,072

2,054

(0.9)

(772)

(737)

(4.5)

(511)

(498)

(2.5)

(2)

(1)

(50.0)

(1,285)

(1,236)

(3.8)

787

818

3.9

(301)

(366)

21.6

(7)

(17)

142.9

0

0

n.m.

0

0

n.m.

Gross income (loss)

479

435

(9.2)

Taxes on income

(172)

(152)

(11.6)

Charges (net of tax) for integration and exit incentives

(6)

(3)

(50.0)

Effect of purchase price allocation (net of tax)

0

0

n.m.

Levies and other charges concerning the banking industry (net of tax)

0

0

n.m.

Impairment (net of tax) of goodwill and other intangible assets

0

0

n.m.

Minority interests

0

0

n.m.

Net income

301

280

(7.0)

Note: figures may not add up exactly due to rounding

  1. Data restated for the full line-by-line deconsolidation of the acquiring activities due to the Nexi agreement, the merger costs from the Corporate Centre to the pertaining Divisions and to take into account the effects on Operating costs of

of Mediocredito Italiano into ISP, the attribution of the ex Capital Light data and some Operating the Prelios agreement related to UTP servicing

72

MIL-BVA327-15051trim.13-90141/LR

Banca dei Territori:

Q1 vs Q4

€ m

4Q19

1Q20

%

pro-forma(1)

Net interest income

1,036

1,046

1.0

Net fee and commission income

1,068

990

(7.3)

Income from insurance business

0

0

(100.0)

Profits on financial assets and liabilities at fair value

19

18

(5.7)

Other operating income (expenses)

(0)

0

n.m.

Operating income

2,122

2,054

(3.2)

Personnel expenses

(797)

(737)

(7.5)

Other administrative expenses

(600)

(498)

(17.0)

Adjustments to property, equipment and intangible assets

(2)

(1)

(45.0)

Operating costs

(1,398)

(1,236)

(11.6)

Operating margin

724

818

13.0

Net adjustments to loans

(417)

(366)

(12.2)

Net provisions and net impairment losses on other assets

(77)

(17)

(78.0)

Other income (expenses)

111

0

(100.0)

Income (Loss) from discontinued operations

0

0

n.m.

Gross income (loss)

340

435

27.8

Taxes on income

(110)

(152)

38.8

Charges (net of tax) for integration and exit incentives

(9)

(3)

(66.0)

Effect of purchase price allocation (net of tax)

0

0

n.m.

Levies and other charges concerning the banking industry (net of tax)

0

0

n.m.

Impairment (net of tax) of goodwill and other intangible assets

0

0

n.m.

Minority interests

0

0

n.m.

Net income

222

280

26.1

Note: figures may not add up exactly due to rounding

(1) Data restated for the attribution of the ex Capital Light data and some Operating costs from the Corporate Centre to the pertaining Divisions and to take into account the effects on Operating costs of the Prelios

agreement related to UTP servicing

73

MIL-BVA327-15051trim.13-90141/LR

Corporate and Investment Banking: 1Q20 vs 1Q19

€ m

1Q19

1Q20

%

pro-forma(1)

Net interest income

457

497

8.8

Net fee and commission income

216

239

10.6

Income from insurance business

0

0

n.m.

Profits on financial assets and liabilities at fair value

120

897

647.5

Other operating income (expenses)

0

0

n.m.

Operating income

793

1,633

105.9

Personnel expenses

(102)

(96)

(5.9)

Other administrative expenses

(165)

(161)

(2.4)

Adjustments to property, equipment and intangible assets

(7)

(8)

14.3

Operating costs

(274)

(265)

(3.3)

Operating margin

519

1,368

163.6

Net adjustments to loans

(43)

(4)

(90.7)

Net provisions and net impairment losses on other assets

(10)

6

n.m.

Other income (expenses)

0

0

n.m.

Income (Loss) from discontinued operations

0

0

n.m.

Gross income (loss)

466

1,370

194.0

Taxes on income

(149)

(457)

206.7

Charges (net of tax) for integration and exit incentives

(1)

(2)

100.0

Effect of purchase price allocation (net of tax)

0

0

n.m.

Levies and other charges concerning the banking industry (net of tax)

0

0

n.m.

Impairment (net of tax) of goodwill and other intangible assets

0

0

n.m.

Minority interests

0

0

n.m.

Net income

316

911

188.3

Note: figures may not add up exactly due to rounding

  1. Data restated for the merger of Mediocredito Italiano into ISP, the attribution of the ex Capital Light data and some Operating costs from the Corporate Centre to the pertaining Divisions and to take into account the effects on Operating costs of the Prelios agreement related to UTP servicing

74

MIL-BVA327-15051trim.13-90141/LR

Banca IMI: A Significant Contribution to Group Results

1Q20 Results

Banca IMI Operating Income(1)

of which: Global Markets

€ m

RWA (€ bn)

€ m

676

667

(15)

20

766

4

676

90

Fixed

Credits

Equity Brokerage Global

Income and

Markets

Commodity

Global

Investment

Total

+

Markets

Banking &

Banca IMI

of which: Investment Banking & Structured Finance

Structured Finance

€ m

90

22.7

4.0

26.7

◼ ~28% of Operating income is customer driven

64

1

18

7

◼ Cost/Income ratio at 14.7%

Investment

Equity

M&A

Debt

Structured

◼ Q1 Net income at €411m

Capital

Advisory

Markets

Finance

Banking &

Markets

Struct.

Finance

Note: figures may not add up exactly due to rounding

(1) Banca IMI S.p.A. and its subsidiaries

75

MIL-BVA327-15051trim.13-90141/LR

Corporate and Investment Banking:

Q1 vs Q4

€ m

4Q19

1Q20

%

pro-forma(1)

Net interest income

492

497

1.1

Net fee and commission income

312

239

(23.3)

Income from insurance business

0

0

n.m.

Profits on financial assets and liabilities at fair value

196

897

356.8

Other operating income (expenses)

(0)

0

n.m.

Operating income

999

1,633

63.4

Personnel expenses

(128)

(96)

(24.9)

Other administrative expenses

(182)

(161)

(11.3)

Adjustments to property, equipment and intangible assets

(8)

(8)

5.3

Operating costs

(317)

(265)

(16.4)

Operating margin

682

1,368

100.4

Net adjustments to loans

(43)

(4)

(90.8)

Net provisions and net impairment losses on other assets

(29)

6

n.m.

Other income (expenses)

0

0

n.m.

Income (Loss) from discontinued operations

0

0

n.m.

Gross income (loss)

610

1,370

124.5

Taxes on income

(187)

(457)

144.0

Charges (net of tax) for integration and exit incentives

(1)

(2)

77.2

Effect of purchase price allocation (net of tax)

0

0

n.m.

Levies and other charges concerning the banking industry (net of tax)

0

0

n.m.

Impairment (net of tax) of goodwill and other intangible assets

0

0

n.m.

Minority interests

0

0

n.m.

Net income

422

911

116.0

Note: figures may not add up exactly due to rounding

(1) Data restated for the attribution of the ex Capital Light data and some Operating costs from the Corporate Centre to the pertaining Divisions and to take into account the effects on Operating costs of the Prelios

agreement related to UTP servicing

76

MIL-BVA327-15051trim.13-90141/LR

International Subsidiary Banks: 1Q20 vs 1Q19

€ m

1Q19

1Q20

%

Net interest income

338

331

(2.1)

Net fee and commission income

128

123

(3.9)

Income from insurance business

0

0

n.m.

Profits on financial assets and liabilities at fair value

22

19

(13.6)

Other operating income (expenses)

(6)

(5)

(16.7)

Operating income

482

468

(2.9)

Personnel expenses

(131)

(131)

0.0

Other administrative expenses

(81)

(81)

0.0

Adjustments to property, equipment and intangible assets

(26)

(27)

3.8

Operating costs

(238)

(239)

0.4

Operating margin

244

229

(6.1)

Net adjustments to loans

(6)

(22)

266.7

Net provisions and net impairment losses on other assets

4

(14)

n.m.

Other income (expenses)

0

5

n.m.

Income (Loss) from discontinued operations

0

0

n.m.

Gross income (loss)

242

198

(18.2)

Taxes on income

(54)

(46)

(14.8)

Charges (net of tax) for integration and exit incentives

(7)

(9)

28.6

Effect of purchase price allocation (net of tax)

0

0

n.m.

Levies and other charges concerning the banking industry (net of tax)

0

0

n.m.

Impairment (net of tax) of goodwill and other intangible assets

0

0

n.m.

Minority interests

0

0

n.m.

Net income

181

143

(21.0)

Note: figures may not add up exactly due to rounding. Excluding the Russian subsidiary Banca Intesa included in C&IB

77

MIL-BVA327-15051trim.13-90141/LR

International Subsidiary Banks:

Q1 vs Q4

€ m

4Q19

1Q20

%

Net interest income

340

331

(2.7)

Net fee and commission income

140

123

(12.0)

Income from insurance business

0

0

n.m.

Profits on financial assets and liabilities at fair value

39

19

(50.9)

Other operating income (expenses)

(6)

(5)

(15.4)

Operating income

513

468

(8.7)

Personnel expenses

(143)

(131)

(8.3)

Other administrative expenses

(100)

(81)

(19.2)

Adjustments to property, equipment and intangible assets

(26)

(27)

2.1

Operating costs

(270)

(239)

(11.3)

Operating margin

243

229

(5.8)

Net adjustments to loans

(41)

(22)

(46.6)

Net provisions and net impairment losses on other assets

5

(14)

n.m.

Other income (expenses)

4

5

16.9

Income (Loss) from discontinued operations

0

0

n.m.

Gross income (loss)

211

198

(6.3)

Taxes on income

(40)

(46)

15.8

Charges (net of tax) for integration and exit incentives

(13)

(9)

(30.6)

Effect of purchase price allocation (net of tax)

0

0

n.m.

Levies and other charges concerning the banking industry (net of tax)

(0)

0

n.m.

Impairment (net of tax) of goodwill and other intangible assets

0

0

n.m.

Minority interests

0

0

n.m.

Net income

159

143

(9.9)

Note: figures may not add up exactly due to rounding. Excluding the Russian subsidiary Banca Intesa included in C&IB

78

Private Banking: 1Q20 vs 1Q19

€ m

Net interest income Net fee and commission income Income from insurance business Profits on financial assets and liabilities at fair value Other operating income (expenses) Operating income Personnel expenses Other administrative expenses Adjustments to property, equipment and intangible assets Operating costs

Operating margin Net adjustments to loans Net provisions and net impairment losses on other assets Other income (expenses) Income (Loss) from discontinued operations Gross income (loss) Taxes on income Charges (net of tax) for integration and exit incentives Effect of purchase price allocation (net of tax) Levies and other charges concerning the banking industry (net of tax) Impairment (net of tax) of goodwill and other intangible assets Minority interests Net income

Note: figures may not add up exactly due to rounding

MIL-BVA327-15051trim.13-90141/LR

1Q19

1Q20

%

44

48

9.1

424

427

0.7

0

0

n.m.

14

3

(78.6)

0

0

n.m.

482

478

(0.8)

(87)

(78)

(10.3)

(47)

(49)

4.3

(14)

(14)

0.0

(148)

(141)

(4.7)

334

337

0.9

(3)

(3)

0.0

(10)

(6)

(40.0)

9

6

(33.3)

0

0

n.m.

330

334

1.2

(94)

(103)

9.6

(4)

(4)

0.0

0

0

n.m.

0

0

n.m.

0

0

n.m.

0

0

n.m.

232

227

(2.2)

79

MIL-BVA327-15051trim.13-90141/LR

Private Banking:

Q1 vs Q4

€ m

4Q19

1Q20

%

Net interest income

45

48

5.8

Net fee and commission income

472

427

(9.5)

Income from insurance business

0

0

n.m.

Profits on financial assets and liabilities at fair value

9

3

(66.4)

Other operating income (expenses)

2

0

(100.0)

Operating income

528

478

(9.5)

Personnel expenses

(94)

(78)

(17.4)

Other administrative expenses

(58)

(49)

(14.9)

Adjustments to property, equipment and intangible assets

(14)

(14)

2.0

Operating costs

(166)

(141)

(14.9)

Operating margin

363

337

(7.1)

Net adjustments to loans

(1)

(3)

172.7

Net provisions and net impairment losses on other assets

8

(6)

n.m.

Other income (expenses)

(0)

6

n.m.

Income (Loss) from discontinued operations

0

0

n.m.

Gross income (loss)

369

334

(9.5)

Taxes on income

(116)

(103)

(10.9)

Charges (net of tax) for integration and exit incentives

(7)

(4)

(44.2)

Effect of purchase price allocation (net of tax)

(0)

0

n.m.

Levies and other charges concerning the banking industry (net of tax)

0

0

n.m.

Impairment (net of tax) of goodwill and other intangible assets

0

0

n.m.

Minority interests

1

0

(100.0)

Net income

246

227

(7.9)

Note: figures may not add up exactly due to rounding

80

MIL-BVA327-15051trim.13-90141/LR

Asset Management:

1Q20 vs 1Q19

€ m

1Q19

1Q20

%

Net interest income

0

0

n.m.

Net fee and commission income

167

174

4.2

Income from insurance business

0

0

n.m.

Profits on financial assets and liabilities at fair value

3

(12)

n.m.

Other operating income (expenses)

10

6

(40.0)

Operating income

180

168

(6.7)

Personnel expenses

(18)

(16)

(11.1)

Other administrative expenses

(17)

(16)

(5.9)

Adjustments to property, equipment and intangible assets

(1)

(1)

0.0

Operating costs

(36)

(33)

(8.3)

Operating margin

144

135

(6.3)

Net adjustments to loans

0

0

n.m.

Net provisions and net impairment losses on other assets

0

0

n.m.

Other income (expenses)

0

0

n.m.

Income (Loss) from discontinued operations

0

0

n.m.

Gross income (loss)

144

135

(6.3)

Taxes on income

(27)

(35)

29.6

Charges (net of tax) for integration and exit incentives

0

0

n.m.

Effect of purchase price allocation (net of tax)

0

0

n.m.

Levies and other charges concerning the banking industry (net of tax)

0

0

n.m.

Impairment (net of tax) of goodwill and other intangible assets

0

0

n.m.

Minority interests

0

0

n.m.

Net income

117

100

(14.5)

Note: figures may not add up exactly due to rounding

81

MIL-BVA327-15051trim.13-90141/LR

Asset Management:

Q1 vs Q4

€ m

4Q19

1Q20

%

Net interest income

0

0

(100.0)

Net fee and commission income

272

174

(36.0)

Income from insurance business

0

0

n.m.

Profits on financial assets and liabilities at fair value

1

(12)

n.m.

Other operating income (expenses)

9

6

(34.7)

Operating income

282

168

(40.4)

Personnel expenses

(27)

(16)

(40.7)

Other administrative expenses

(21)

(16)

(23.4)

Adjustments to property, equipment and intangible assets

(1)

(1)

(29.0)

Operating costs

(49)

(33)

(33.0)

Operating margin

233

135

(42.0)

Net adjustments to loans

0

0

(100.0)

Net provisions and net impairment losses on other assets

0

0

(100.0)

Other income (expenses)

0

0

n.m.

Income (Loss) from discontinued operations

0

0

n.m.

Gross income (loss)

233

135

(42.0)

Taxes on income

(58)

(35)

(40.0)

Charges (net of tax) for integration and exit incentives

(0)

0

n.m.

Effect of purchase price allocation (net of tax)

0

0

n.m.

Levies and other charges concerning the banking industry (net of tax)

0

0

n.m.

Impairment (net of tax) of goodwill and other intangible assets

0

0

n.m.

Minority interests

0

0

(100.0)

Net income

174

100

(42.6)

Note: figures may not add up exactly due to rounding

82

MIL-BVA327-15051trim.13-90141/LR

Insurance:

1Q20 vs 1Q19

€ m

1Q19

1Q20

%

Net interest income

0

0

n.m.

Net fee and commission income

0

0

n.m.

Income from insurance business

266

285

7.1

Profits on financial assets and liabilities at fair value

0

0

n.m.

Other operating income (expenses)

(2)

(2)

0.0

Operating income

264

283

7.2

Personnel expenses

(21)

(21)

0.0

Other administrative expenses

(21)

(20)

(4.8)

Adjustments to property, equipment and intangible assets

(3)

(3)

0.0

Operating costs

(45)

(44)

(2.2)

Operating margin

219

239

9.1

Net adjustments to loans

0

0

n.m.

Net provisions and net impairment losses on other assets

0

(6)

n.m.

Other income (expenses)

0

0

n.m.

Income (Loss) from discontinued operations

0

0

n.m.

Gross income (loss)

219

233

6.4

Taxes on income

(58)

(66)

13.8

Charges (net of tax) for integration and exit incentives

0

(2)

n.m.

Effect of purchase price allocation (net of tax)

(4)

(5)

25.0

Levies and other charges concerning the banking industry (net of tax)

0

0

n.m.

Impairment (net of tax) of goodwill and other intangible assets

0

0

n.m.

Minority interests

0

0

n.m.

Net income

157

160

1.9

Note: figures may not add up exactly due to rounding

83

MIL-BVA327-15051trim.13-90141/LR

Insurance:

Q1 vs Q4

€ m

4Q19

1Q20

%

Net interest income

0

0

n.m.

Net fee and commission income

0

0

n.m.

Income from insurance business

299

285

(4.8)

Profits on financial assets and liabilities at fair value

0

0

n.m.

Other operating income (expenses)

(4)

(2)

(55.2)

Operating income

295

283

(4.1)

Personnel expenses

(26)

(21)

(19.5)

Other administrative expenses

(29)

(20)

(30.9)

Adjustments to property, equipment and intangible assets

(4)

(3)

(19.6)

Operating costs

(59)

(44)

(25.1)

Operating margin

236

239

1.2

Net adjustments to loans

0

0

n.m.

Net provisions and net impairment losses on other assets

(0)

(6)

n.m.

Other income (expenses)

0

0

n.m.

Income (Loss) from discontinued operations

0

0

n.m.

Gross income (loss)

236

233

(1.2)

Taxes on income

(64)

(66)

3.8

Charges (net of tax) for integration and exit incentives

(2)

(2)

21.1

Effect of purchase price allocation (net of tax)

(4)

(5)

25.0

Levies and other charges concerning the banking industry (net of tax)

0

0

n.m.

Impairment (net of tax) of goodwill and other intangible assets

0

0

n.m.

Minority interests

0

0

n.m.

Net income

167

160

(4.0)

Note: figures may not add up exactly due to rounding

84

MIL-BVA327-15051trim.13-90141/LR

Quarterly P&L

€ m

1Q19

2Q19

3Q19

4Q19

1Q20

pro-forma(1)

Net interest income

1,756

1,761

1,741

1,747

1,747

Net fee and commission income

1,865

1,965

1,966

2,166

1,844

Income from insurance business

291

284

301

308

312

Profits on financial assets and liabilities at fair value

458

634

480

356

994

Other operating income (expenses)

(1)

10

5

(10)

(15)

Operating income

4,369

4,654

4,493

4,567

4,882

Personnel expenses

(1,387)

(1,418)

(1,421)

(1,518)

(1,355)

Other administrative expenses

(583)

(622)

(632)

(749)

(550)

Adjustments to property, equipment and intangible assets

(260)

(252)

(261)

(285)

(264)

Operating costs

(2,230)

(2,292)

(2,314)

(2,552)

(2,169)

Operating margin

2,139

2,362

2,179

2,015

2,713

Net adjustments to loans

(369)

(554)

(473)

(693)

(403)

Net provisions and net impairment losses on other assets

(30)

(37)

(19)

(168)

(419)

Other income (expenses)

6

1

(2)

50

3

Income (Loss) from discontinued operations

19

22

22

25

29

Gross income (loss)

1,765

1,794

1,707

1,229

1,923

Taxes on income

(527)

(441)

(527)

(311)

(545)

Charges (net of tax) for integration and exit incentives

(22)

(30)

(27)

(27)

(15)

Effect of purchase price allocation (net of tax)

(40)

(28)

(37)

(12)

(26)

Levies and other charges concerning the banking industry (net of tax)

(146)

(96)

(96)

(22)

(191)

Impairment (net of tax) of goodwill and other intangible assets

0

0

0

0

0

Minority interests

20

17

24

15

5

Net income

1,050

1,216

1,044

872

1,151

Note: figures may not add up exactly due to rounding

(1) Data restated for the full line-by-line deconsolidation of the acquiring activities due to the Nexi agreement and to take into account the effects on Operating costs of the Prelios agreement related to UTP servicing

85

Net Fee and Commission Income: Quarterly Development Breakdown

€ m

Net Fee and Commission Income

1Q19

2Q19

3Q19

4Q19

1Q20

pro-forma

(1)

Guarantees given / received

55

56

58

60

50

Collection and payment services

110

118

113

127

105

Current accounts

308

306

304

304

293

Credit and debit cards

74

80

89

82

63

Commercial banking activities

547

560

564

573

511

Dealing and placement of securities

180

195

190

199

185

Currency dealing

12

12

13

12

12

Portfolio management

542

561

571

697

550

Distribution of insurance products

326

361

363

391

344

Other

62

65

69

68

62

Management, dealing and consultancy activities

1,122

1,194

1,206

1,367

1,153

Other net fee and commission income

196

211

196

226

180

Net fee and commission income

1,865

1,965

1,966

2,166

1,844

Note: figures may not add up exactly due to rounding

(1) Data restated for the full line-by-line deconsolidation of the acquiring activities due to the Nexi agreement

86

Market Leadership in Italy

1Q20 Operating Income

Leader in Italy

Breakdown by business area(1)

Corporate and

Investment Banking

32%

Banca

40%

dei Territori

Insurance 6%

Private Banking 9% 3%9%

Asset Management International

Subsidiary

Banks

Ranking

Market share(2)

%

1

17.0

Loans

1

Deposits(3)

18.2

1 Asset Management(4)

21.6

1

Pension Funds(5)

22.9

Note: figures may not add up exactly due to rounding

(1) Excluding Corporate Centre

(2) Data as at 31.3.20

(3) Including bonds

(4) Mutual funds; data as at 31.12.19

(5) Data as at 31.12.19

87

International Subsidiary Banks: Key P&L Data by Country

Data as at 31.3.20

( % vs 1Q19)

Operating Income

€ m

(4.1)

(12.5)

+11.4

(6.2)

+6.1

(1.3)

(5.8)

+0.8

(13.0)

+0.2

+11.6

110

106

92

62

43

17

11

11

9

4

2

Slovakia

Croatia

Egypt

Serbia

Hungary

Slovenia

Romania

Bosnia

Albania

Ukraine

Moldova

Operating Margin

€ m

(17.4) (6.8) +5.2 (12.7) +51.4 +3.5 (12.6) (12.4) (27.7) +1.5 (6.4)

59

56

53

38

16

6

6

4

4

0

(1)

Croatia

Slovakia

Egypt

Serbia

Hungary

Bosnia

Slovenia

Romania

Albania

Moldova

Ukraine

Operating Costs

€ m

(1.2)

(5.2)

+21.1

(10.3)

+6.3

+5.3

(0.9)

(1.9)

+4.4

+1.4

+14.3

54

46

39

27

24

11

7

5

5

5

2

Slovakia

Croatia

Egypt

Hungary

Serbia

Slovenia

Romania

Bosnia

Albania

Ukraine

Moldova

Gross Income

€ m

(15.9) (16.6) (22.6) (16.2) (39.0) +46.7 +2.9 (19.5) (31.0) +26.6 +87.3

54

47

43

30

13

8

7

5

4

0

0

Croatia

Egypt

Slovakia

Serbia

Hungary

Romania

Slovenia

Bosnia

Albania

Moldova

Ukraine

Note: excluding the Russian subsidiary Banca Intesa included in C&IB

88

International Subsidiary Banks by Country: 8.5% of the Group's Total Loans

Data as at 31.3.20

Total

Total

CEE

Hungary Slovakia Slovenia Croatia Bosnia Serbia Albania Romania Moldova Ukraine

Egypt

Oper. Income (€ m)

43

110

17

106

11

62

9

11

2

4

376

92

468

% of Group total

0.9%

2.3%

0.3%

2.2%

0.2%

1.3%

0.2%

0.2%

0.0%

0.1%

7.7%

1.9%

9.6%

Net income (€ m)

(2)

14

5

35

4

22

3

7

0

(0)

88

34

122

% of Group total

n.m.

1.2%

0.5%

3.0%

0.3%

1.9%

0.3%

0.6%

0.0%

n.m.

7.6%

3.0%

10.6%

Customer Deposits (€ bn)

4.0

15.1

2.3

9.1

0.8

4.0

1.2

0.9

0.2

0.1

37.7

5.0

42.7

% of Group total

0.9%

3.5%

0.5%

2.1%

0.2%

0.9%

0.3%

0.2%

0.0%

0.0%

8.7%

1.2%

9.8%

Customer Loans (€ bn)

3.0

14.6

1.9

6.9

0.8

3.4

0.4

0.9

0.1

0.1

32.0

2.5

34.5

% of Group total

0.7%

3.6%

0.5%

1.7%

0.2%

0.8%

0.1%

0.2%

0.0%

0.0%

7.9%

0.6%

8.5%

Total Assets (€ bn)

5.7

17.7

2.7

11.9

1.2

5.5

1.4

1.3

0.2

0.2

48.0

6.1

54.2

% of Group total

0.7%

2.1%

0.3%

1.4%

0.1%

0.7%

0.2%

0.2%

0.0%

0.0%

5.7%

0.7%

6.4%

Book value (€ m)

648

1,529

301

1,674

159

873

169

188

33

60

5,634

526

6,160

- intangibles

32

112

6

21

2

45

4

3

2

2

229

9

238

Note: figures may not add up exactly due to rounding. Excluding the Russian subsidiary Banca Intesa included in C&IB

89

International Subsidiary Banks by Country: Loan Breakdown and Coverage

Data as at 31.3.20

Total

Total

CEE

Hungary Slovakia Slovenia Croatia Bosnia Serbia

Albania Romania Moldova Ukraine

Egypt

Performing loans (€ bn)

2.9

14.5

1.9

6.7

0.8

3.4

0.3

0.8

0.1

0.1

31.4

2.4

33.9

of which:

Retail local currency

40%

60%

42%

33%

33%

21%

21%

11%

57%

22%

45%

56%

45%

Retail foreign currency

0%

0%

0%

19%

15%

29%

13%

19%

1%

2%

8%

0%

8%

Corporate local currency

25%

35%

58%

22%

9%

2%

14%

34%

17%

45%

28%

26%

28%

Corporate foreign currency

35%

5%

0%

25%

43%

47%

53%

36%

26%

31%

19%

18%

19%

Bad loans

(1)

(€ m)

15

100

3

56

4

17

3

13

2

0

213

0

213

(2)

53

87

23

127

10

25

8

13

1

0

347

52

399

Unlikely to pay (€ m)

Performing loans coverage

1.1%

0.6%

0.7%

1.6%

1.6%

1.3%

1.7%

1.3%

4.7%

0.8%

1.0%

1.3%

1.0%

Bad loans

(1)

coverage

69%

63%

84%

75%

75%

69%

57%

61%

33%

n.m.

69%

100%

70%

(2)

44%

45%

43%

40%

33%

60%

38%

41%

0%

n.m.

44%

43%

44%

Unlikely to pay coverage

Annualised cost of credit

(3)

(bps)

68

36

n.m.

33

n.m.

92

n.m.

n.m.

6

46

33

n.m.

26

Note: figures may not add up exactly due to rounding. Excluding the Russian subsidiary Banca Intesa included in C&IB

  1. Sofferenze
  2. Including Past due
  3. Net adjustments to loans/Net customer loans

90

Common Equity Ratio as at 31.3.20: from Phased-into ProMIL-BVA327-forma-15051trim.13-90141/LRFully Loaded

~€ bn

~bps

Direct-deduction relevant items

DTA on losses carried forward(1)

1.4

47

IFRS9 transitional adjustment

(2.1)

(70)

Total

(0.8)

(23)

Cap relevant items(*)(2)

Total

0.0

10

(*) as a memo, constituents of deductions subject to cap:

- Other DTA(3)

1.8

- Investments in banking and financial companies

0.8

RWA from 100% weighted DTA(4)

(8.2)

40

Total estimated impact

27

Pro-

forma fully loaded Common Equity ratio(5)

14.5%

Note: figures may not add up exactly due to rounding

  1. Considering the expected absorption of DTA on losses carried forward (€1.5bn as at 31.3.20)
  2. Following the application of the Danish Compromise, insurance investments are risk weighted instead of being deducted from capital. In the amount of insurance investments, the expected distribution of 1Q20 Net income of insurance companies is considered, which for the sake of simplicity is left included in the benefit allocated to this caption
  3. Other DTA: mostly related to provisions for risks and charges, considering the total absorption of DTA related to IFSR9 FTA (€1.2bn as at 31.3.20) and DTA related to the non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of operations of the two former Venetian banks (€0.3bn as at 31.3.20). DTA related to goodwill realignment and adjustments to loans are excluded due to their treatment as credits to tax authorities
  4. Considering the total absorption of DTA convertible into tax credit related to goodwill realignment (€4.9bn as at 31.3.20) and adjustments to loans (€3.4bn as at 31.3.20)
  5. Considering the suspension of the 2019 dividend proposal regarding the ~€3.4bn cash distribution to shareholders in compliance with the ECB recommendation dated 27.3.20 on dividend policy in the aftermath of the

COVID-19 epidemic

91

Total Exposure(1) by Main Countries

€ m

DEBT SECURITIES

Banking Business

Insurance

LOANS

Total

AC

FVTOCI

FVTPL(2)

Total

Business(3)

EU Countries

24,521

51,645

5,879

82,045

62,951

144,996

392,176

Austria

187

113

55

355

4

359

1,285

Belgium

1,993

1,052

93

3,138

148

3,286

1,143

Bulgaria

0

0

0

0

89

89

26

Croatia

56

1,162

183

1,401

100

1,501

7,004

Cyprus

0

0

0

0

0

0

304

Czech Republic

106

0

0

106

0

106

590

Denmark

0

30

0

30

19

49

120

Estonia

0

28

0

28

0

28

6

Finland

0

95

20

115

35

150

313

France

1,225

4,648

188

6,061

2,498

8,559

10,915

Germany

1,137

2,701

-3,020

818

1,137

1,955

7,766

Greece

36

0

17

53

0

53

2,121

Hungary

163

1,005

19

1,187

10

1,197

2,869

Ireland

887

1,079

371

2,337

112

2,449

394

Italy

15,150

21,781

6,807

43,738

54,091

97,829

302,690

Latvia

0

0

0

0

0

0

35

Lithuania

0

5

0

5

0

5

8

Luxembourg

122

430

195

747

0

747

6,281

Malta

0

0

0

0

0

0

187

The Netherlands

411

967

339

1,717

680

2,397

3,065

Poland

41

111

-5

147

30

177

1,389

Portugal

410

416

105

931

7

938

174

Romania

56

283

0

339

228

567

919

Slovakia

0

682

4

686

0

686

12,737

Slovenia

1

216

0

217

0

217

1,833

Spain

2,170

14,302

375

16,847

2,437

19,284

3,219

Sweden

0

135

90

225

1

226

228

United Kingdom

370

404

43

817

1,325

2,142

24,555

Albania

459

38

1

498

0

498

371

Egypt

0

1,572

1

1,573

51

1,624

2,909

Japan

0

1,784

665

2,449

78

2,527

1,174

Russia

0

151

0

151

44

195

5,381

Serbia

0

911

5

916

0

916

3,684

U.S.A.

592

7,479

804

8,875

2,473

11,348

9,634

Other Countries

1,162

4,192

619

5,973

2,762

8,735

25,391

Total

26,734

67,772

7,974

102,480

68,359

170,839

440,720

Note: management accounts. Figures may not add up exactly due to rounding

  1. Exposure to sovereign risks (central and local governments), banks and other customers. Book Value of Debt Securities and Net Loans as at 31.3.20
  2. Taking into account cash short positions
  3. Excluding securities in which money is collected through insurance policies where the total risk is retained by the insured

92

MIL-BVA327-15051trim.13-90141/LR

Exposure to Sovereign Risks(1) by Main Countries

€ m

DEBT SECURITIES

Banking Business

Insurance

Total

FVTOCI/AFS

LOANS

AC

FVTOCI

FVTPL(2)

Total

Business(3)

Reserve (4)

EU Countries

15,278

44,059

2,687

62,024

55,632

117,656

-743

12,523

Austria

0

34

55

89

2

91

0

0

Belgium

1,050

918

74

2,042

4

2,046

-40

0

Bulgaria

0

0

0

0

61

61

0

0

Croatia

0

1,162

183

1,345

89

1,434

1

1,141

Cyprus

0

0

0

0

0

0

0

0

Czech Republic

0

0

0

0

0

0

0

0

Denmark

0

22

0

22

0

22

0

0

Estonia

0

0

0

0

0

0

0

0

Finland

0

45

0

45

3

48

0

0

France

932

3,361

-107

4,186

1,135

5,321

-110

4

Germany

515

1,930

-3,177

-732

484

-248

-7

0

Greece

0

0

17

17

0

17

0

0

Hungary

0

995

19

1,014

10

1,024

-3

108

Ireland

540

484

-1

1,023

109

1,132

-7

0

Italy

9,659

19,336

4,894

33,889

51,680

85,569

-267

10,835

Latvia

0

0

0

0

0

0

0

35

Lithuania

0

5

0

5

0

5

0

0

Luxembourg

0

16

0

16

0

16

-2

0

Malta

0

0

0

0

0

0

0

0

The Netherlands

262

359

256

877

121

998

-2

0

Banking Business Government bond

Poland

41

59

-5

95

18

113

-2

0

duration: 5.7 years

Portugal

378

400

68

846

0

846

-17

0

Romania

56

283

0

339

228

567

-10

7

Adjusted duration due to hedging: 0.8 years

Slovakia

0

616

4

620

0

620

-14

130

Slovenia

0

208

0

208

0

208

0

204

Spain

1,845

13,817

332

15,994

1,586

17,580

-263

59

Sweden

0

0

88

88

0

88

0

0

United Kingdom

0

9

-13

-4

102

98

0

0

Albania

459

38

1

498

0

498

0

1

Egypt

0

1,570

1

1,571

51

1,622

-8

0

Japan

0

1,755

658

2,413

0

2,413

-9

0

Russia

0

133

0

133

0

133

-14

0

Serbia

0

911

5

916

0

916

4

93

U.S.A.

13

6,301

480

6,794

10

6,804

-16

0

Other Countries

1,052

2,806

428

4,286

1,005

5,291

-145

5,851

Total

16,802

57,573

4,260

78,635

56,698

135,333

-931

18,468

Note: management accounts. Figures may not add up exactly due to rounding

  1. Exposure to central and local governments. Book Value of Debt Securities and Net Loans as at 31.3.20
  2. Taking into account cash short positions
  3. Excluding securities in which money is collected through insurance policies where the total risk is retained by the insured
  4. Net of tax and allocation to insurance products under separate management

93

MIL-BVA327-15051trim.13-90141/LR

Exposure to Banks by Main Countries(1)

€ m

DEBT SECURITIES

Banking Business

Insurance

LOANS

Total

AC

FVTOCI

FVTPL(2)

Total

Business(3)

EU Countries

1,996

4,644

1,276

7,916

3,025

10,941

33,288

Austria

177

47

0

224

0

224

255

Belgium

0

110

17

127

22

149

466

Bulgaria

0

0

0

0

0

0

1

Croatia

0

0

0

0

0

0

69

Cyprus

0

0

0

0

0

0

1

Czech Republic

0

0

0

0

0

0

1

Denmark

0

8

0

8

0

8

61

Estonia

0

28

0

28

0

28

0

Finland

0

21

19

40

0

40

96

France

175

808

227

1,210

679

1,889

9,123

Germany

18

545

146

709

106

815

3,712

Greece

0

0

0

0

0

0

2,103

Hungary

132

10

0

142

0

142

48

Ireland

0

38

-1

37

0

37

40

Italy

1,193

1,461

630

3,284

1,361

4,645

5,661

Latvia

0

0

0

0

0

0

0

Lithuania

0

0

0

0

0

0

0

Luxembourg

0

316

191

507

0

507

1,183

Malta

0

0

0

0

0

0

159

The Netherlands

73

315

0

388

212

600

231

Poland

0

52

0

52

0

52

8

Portugal

0

16

-1

15

0

15

4

Romania

0

0

0

0

0

0

42

Slovakia

0

66

0

66

0

66

0

Slovenia

0

8

0

8

0

8

1

Spain

132

445

22

599

245

844

638

Sweden

0

109

-1

108

0

108

10

United Kingdom

96

241

27

364

400

764

9,375

Albania

0

0

0

0

0

0

2

Egypt

0

0

0

0

0

0

319

Japan

0

10

0

10

52

62

60

Russia

0

18

0

18

0

18

59

Serbia

0

0

0

0

0

0

75

U.S.A.

243

699

268

1,210

1,127

2,337

1,213

Other Countries

32

1,050

131

1,213

701

1,914

5,587

Total

2,271

6,421

1,675

10,367

4,905

15,272

40,603

Note: management accounts. Figures may not add up exactly due to rounding

  1. Book Value of Debt Securities and Net Loans as at 31.3.20
  2. Taking into account cash short positions
  3. Excluding securities in which money is collected through insurance policies where the total risk is retained by the insured

94

MIL-BVA327-15051trim.13-90141/LR

Exposure to Other Customers by Main Countries(1)

€ m

DEBT SECURITIES

Banking Business

Insurance

Total

LOANS

Business(3)

AC

FVTOCI

FVTPL(2)

Total

EU Countries

7,247

2,942

1,916

12,105

4,294

16,399

346,365

Austria

10

32

0

42

2

44

1,030

Belgium

943

24

2

969

122

1,091

677

Bulgaria

0

0

0

0

28

28

25

Croatia

56

0

0

56

11

67

5,794

Cyprus

0

0

0

0

0

0

303

Czech Republic

106

0

0

106

0

106

589

Denmark

0

0

0

0

19

19

59

Estonia

0

0

0

0

0

0

6

Finland

0

29

1

30

32

62

217

France

118

479

68

665

684

1,349

1,788

Germany

604

226

11

841

547

1,388

4,054

Greece

36

0

0

36

0

36

18

Hungary

31

0

0

31

0

31

2,713

Ireland

347

557

373

1,277

3

1,280

354

Italy

4,298

984

1,283

6,565

1,050

7,615

286,194

Latvia

0

0

0

0

0

0

0

Lithuania

0

0

0

0

0

0

8

Luxembourg

122

98

4

224

0

224

5,098

Malta

0

0

0

0

0

0

28

The Netherlands

76

293

83

452

347

799

2,834

Poland

0

0

0

0

12

12

1,381

Portugal

32

0

38

70

7

77

170

Romania

0

0

0

0

0

0

870

Slovakia

0

0

0

0

0

0

12,607

Slovenia

1

0

0

1

0

1

1,628

Spain

193

40

21

254

606

860

2,522

Sweden

0

26

3

29

1

30

218

United Kingdom

274

154

29

457

823

1,280

15,180

Albania

0

0

0

0

0

0

368

Egypt

0

2

0

2

0

2

2,590

Japan

0

19

7

26

26

52

1,114

Russia

0

0

0

0

44

44

5,322

Serbia

0

0

0

0

0

0

3,516

U.S.A.

336

479

56

871

1,336

2,207

8,421

Other Countries

78

336

60

474

1,056

1,530

13,953

Total

7,661

3,778

2,039

13,478

6,756

20,234

381,649

Note: management accounts. Figures may not add up exactly due to rounding

  1. Book Value of Debt Securities and Net Loans as at 31.3.20
  2. Taking into account cash short positions
  3. Excluding securities in which money is collected through insurance policies where the total risk is retained by the insured

95

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Intesa Sanpaolo S.p.A. published this content on 05 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 May 2020 11:08:05 UTC