Banca Monte dei Paschi di Siena S p A : Press Release 2Q / 6M Financial year 2023

PRESS RELEASE

BOARD APPROVES CONSOLIDATED RESULTS AS AT 30 JUNE 2023

THIRD CONSECUTIVE QUARTER OF NET PROFIT GROWTH WITH A TRIPLE-DIGIT RESULT,

STRONG ORGANIC CAPITAL GENERATION AND SUSTAINABLE VALUE CREATION

2Q23 NET PROFIT OF EUR 383 MILLION (+62.6% Q/Q), BRINGING THE TOTAL FOR 1H23 TO EUR 619 MILLION, AROUND 12 TIMES THE NET PROFIT FOR 1H22 (EUR 53 MILLION)

FULLY LOADED CET1 RATIO OF 15.9%, INCREASING BY OVER 90 BASIS POINTS Q/Q, POSITIONING THE BANK'S CAPITAL STRENGTH AT THE TOP OF THE SYSTEM; BUFFER OF MORE THAN 500 BASIS POINTS ON TIER 1 RATIO REQUIREMENT

ACCELERATION OF OPERATING PERFORMANCE THANKS TO CONSOLIDATION OF COMMERCIAL ACTIVITIES, WITH CORE REVENUES1 IN 2Q23 UP BY +9.6% Q/Q, DRIVEN BY BOTH NET INTEREST INCOME (+14.6%Q/Q)

AND FEES AND COMMISSIONS (+2% Q/Q)

1H23 GROSS OPERATING PROFIT FOR EUR 937 MILLION (+95.9% Y/Y) WITH 2Q23

STRONG CONTRIBUTION OF EUR 523 MILLION (+26.3% Q/Q)

OPERATIONAL EFFICIENCY CONTINUES TO IMPROVE, WITH A COST REDUCTION OF

-3.3% IN 2Q23 AND 14.9% IN 1H23, DRIVEN BY BOTH; SAVINGS IN HR COSTS

FOLLOWING THE EXIT OF >4,000 FTEs ON 1ST DECEMBER 2022 AND THE DECREASE OF

OTHER EXPENSES

COST/INCOME IN 1H23 AT 49% IS ALREADY BELOW THE 2026 PLAN TARGET, AN

IMPROVEMENT COMPARED TO THE FIRST QUARTER AND SIGNIFICANTLY LOWER THAN

THE 69% IN JUNE 2022

TOTAL COMMERCIAL FUNDING2 UP (+0.9% Q/Q, +2.2% VS. 2022 YEAR-END), WITH

HIGHER SHARE OF ASSETS UNDER CUSTODY; LOANS LARGELY STABLE COMPARED TO

2022 YEAR-END

1. Net interest income and fees.
2. Direct and indirect funding.

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YESTERDAY FINALIZED THE SALE OF A FURTHER PACKAGE OF NPEs, WITH A GROSS

BOOK VALUE OF APPROXIMATELY EUR 230 MILLION. ITS IMPACT IS ALREADY

REFLECTED IN THE HALF-YEAR FINANCIAL DATA

2Q23 COST OF RISK AT 51 BASIS POINTS, BRINGING THE 1H23 COST OF RISK TO 54 BASIS POINTS, IN LINE WITH THE 2023 GUIDANCE

GROSS NPEs PROFORMA POST-DISPOSAL AT EUR 3.2 BILLION:

• • GROSS PRO FORMA NPE RATIO AT 4% (4.2% AT 2022 YEAR END)
  • NET PRO FORMA NPE RATIO AT 2.1% (2.2% AT 2022 YEAR END)
• TOTAL PRO FORMA NPE COVERAGE AT 49.8%, +170 BASIS POINTS VS. DECEMBER 2022

SOLID LIQUIDITY POSITION CONFIRMED EVEN AFTER EUR 11 BILLION OF TLTRO REIMBURSMENT: UNENCUMBERED COUNTERBALANCING CAPACITY OVER EUR 26 BILLION, LCR >180%, NSFR >130%

***

Siena, 4 August 2023 - The Board of Directors of Banca Monte dei Paschi di Siena S.p.A. (the "Bank"), which was concluded yesterday evening under the chairmanship of Nicola Maione, has reviewed and approved the consolidated results as at 30 June 2023.

Group profit and loss results as at 30 June 2023

The Group's total revenues as at 30 June 2023 stand at EUR 1,851 million, an increase of 19.2% compared to the same period of the previous year.

Revenues for the second quarter of 2023 are up from the previous quarter (+10.6%), driven by higher net interest income (+14.6%) and net fee and commissions (+2.0%).

Net interest income as at 30 June 2023 stands at EUR 1,083 million, a significant increase compared to the same period in 2022 (+64.4%). The increase was mainly driven by (i) the higher contribution of the commercial segment, which benefited from higher interest income on loans, generated by higher interest rates, only partly reduced by higher interest expenses on deposits;

1. the greater contribution from the securities portfolio, as a result of higher yields. On the other hand, the contribution from transactions with central banks is down compared with the previous year, going from a total amount of EUR 97 million in 1H22 to EUR -68 million in 1H23, following the monetary policy decisions taken by the ECB, which led to an increase in the reference rates and certain changes since 23 November 2023, to the terms and conditions of the existing

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TLTRO III auctions. The cost of market funding also increased, mainly as a result of rising interest rates.

Net interest income for the second quarter of 2023 is also up from the previous quarter (+14.6%), thanks to an increased contribution from commercial lending (which continued to benefit from the rise in interest rates), combined with a careful management of funding costs. The positive quarterly trend in net interest income was also supported by the reduction in the net cost of transactions with central banks thanks to the higher benefit on deposited liquidity (EUR 131 million in 2Q23 compared to EUR 87 million in the previous quarter), partially offset by higher interest expenses on TLTRO auctions (EUR 144 million in 2Q23 and EUR 140 million in 1Q23, respectively) and the cost of MRO auctions (EUR 2 million in 2Q23).

Net fees and commissions as at 30 June 2023, amounting to EUR 670 million, show a differentiated dynamic between the various components. Banking commissions3 are almost stable (EUR 377 in the first half of 2023 compared to EUR 379 million in the first half of 2022), excluding third-party loan intermediation fees, the latter being impacted by the development of the internal consumer finance factory, started last year. Wealth management fees4 (-13.9%) were affected by lower commissions, in particular up-front fee on assets under management, only partially offset by higher fees on securities services due to renewed customer interest in fixed-rate investments (mainly government bonds).

Net fee and commission income for the second quarter of 2023 is up on the previous quarter (+2.0%), thanks to the contribution from banking fees. Wealth management fees decreased, with the decline in placement fees only partially offset by the increase in continuing fees.

Dividends, similar income and profit (loss) on investments amount to EUR 53 million, increasing by EUR 2 million compared to 30 June 2022. The result for the second quarter of 2023 was up on the previous quarter (+ EUR 16 million), thanks to the higher income from the AXA participated companies and higher dividend income.

Net profit (loss) from trading, financial assets/liabilities measured at fair value and gains from disposals/repurchases as at 30 June 2023 amounts to EUR 47 million, down by EUR 35 million compared to the values recorded in the same period last year which included gains on the sale of securities for EUR 49 million, and with a contribution from 2Q23 down by EUR 3 million compared to the previous quarter.

As at 30 June 2023 operating expenses amount to EUR 914 million, are lower by -14.9% compared to the first half of 2022, also thanks to further reduction in the second quarter of 2023 by -3.3%. An analysis of the individual aggregates shows that:

• HR costs, amounting to EUR 574 million, are down by -19.4%year-on-year, having benefitted from the downward headcount trend, mainly relating to exits through the Early Retirement Scheme or access to the Solidarity Fund in December 2022, under the trade

1. Including "protection".
2. Excluding "protection".

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union agreement of 4 August 2022. The 2Q23 HR costs remain largely stable compared to the previous quarter;

• other administrative expenses, amounting to EUR 253 million, are down compared

to 30 June 2022 by -5.6% and are lower by -10.5%quarter-on-quarter thanks to the implementation of a rigorous cost management process;

• net value adjustments on property, plant and equipment and intangible assets amount to EUR 87 million as at 30 June 2023 and are down from 30 June 2022 by - 7.9%, also thanks to further reduction by -1.1% in the 2Q23.

As a result of the above trends, the Group's gross operating profit amounts to EUR 937 million, up by +95.9% from 30 June 2022, supported by the 2Q23 contribution of EUR 523 million (+26.3% q/q).

Loan loss provisions booked by the Group as at 30 June 2023 amount to EUR 205 million, down from the EUR 225 million reported in the same period previous year. The 2Q23 contribution shows a decrease compared to the previous quarter (-8.9%), despite a further increase of overlays.

As at 30 June 2023, the ratio between the annualised loan loss provisions and the sum of customer loans plus the value of securities from the disposal/securitisation of NPEs reflects a stable trend with a cost of risk of 54 bps (55 bps as at 31 March 2023 and 31 December 2022).

The Group's net operating profit as at 30 June 2023 shows a balance of EUR 734 million, compared to a result of EUR 255 million in the first half of 2022. The 2Q23 contribution of EUR 426 million is up by +37.9% from the previous quarter.

The following items also contribute to the result for the period:

• other net provisions for risks and charges amounting to EUR -2million, in the first half, compared to the same period of the previous year. The 2Q23 contribution is higher by EUR 11 million compared to the previous quarter;
• other gains (losses) on investments amounting to EUR -1million compared to a profit of EUR 1 million recognised in the first half of the previous year. The 2Q23 contribution improved by EUR 2 million compared to the previous quarter;

• restructuring costs/one-off contribution of EUR -3 million positive for EUR 9.7 million;

charges totalling EUR 4 million, compared to a in the first half of 2022. The contribution in 2Q23 is

• risks and charges related to SRF, DGS and similar schemes, totalling EUR -59million, consisting of the Group's contribution due to the Single Resolution Fund (SRF) booked in the first quarter of 2023, down from the EUR -89 million booked in the same period of the previous year;
• DTA fees, totalling EUR -31million, remain largely unchanged year-on-year; the 2Q23 contribution is in line with the previous quarter. The amount, calculated according to the criteria of Law Decree 59/2016 converted into Law No. 119 of 30 June 2016,

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consists of the fees due as at 30 June 2023 for DTAs (Deferred Tax Assets) which are convertible into tax credits;

• net gains (losses) on property, plant and equipment and intangible assets measured at fair value, amounting to EUR -29million (fully recorded in 2Q23), following the periodic revaluation of real estate compared to the contribution of EUR - 11 million recognised in the same period of 2022;
• gains (losses) on disposal of investments, contributing essentially zero in both quarters of 2023, slightly down from the amount recorded in the first half of 2022 (gain of EUR 0.8 million).

As a result of the above trends, the Group's pre-taxprofit for the period amounts to EUR 615 million, up from the pre-tax profit of EUR 44 million recorded in the corresponding period of 2022. Profit for the second quarter of 2023 amounts to EUR 395 million, up from EUR 220 million in the previous quarter.

Taxes on profit (loss) from continuing operations register a positive contribution of EUR 4 million (EUR +9 million as at 30 June 2022), largely due to the valuation of DTAs net of tax relating to the 1H P&L result.

As a result of the above trends, the Parent Company's profit for the period amounts to EUR 619 million as at 30 June 2023, almost twelve times the net result achieved in the first half of 2022 for EUR 53 million. The result for the second quarter (amounting to EUR +383 million) is up by +62.6% on the previous quarter (amounting to EUR +236 million).

Group balance sheet aggregates as at 30 June 2023

The Group's total funding volumes as at 30 June 2023 amount to EUR 178.8 billion, up EUR

1.0 billion from 31 March 2023 mainly as a result of the increase in indirect funding (EUR +0.9 billion). Direct funding remains largely stable (EUR +0.1 billion).

The aggregate registers also an upturn compared to 31 December 2022 (EUR +4.4 billion) thanks to the increase both in direct funding (EUR +2.1 billion) and indirect funding (EUR +2.3 billion).

Direct funding volumes stand at EUR 84.1 billion, in line vs. the end of March 2023 (EUR +0.1 billion). The increase in repurchase agreements (EUR +0.6 billion) more than offsets the decrease registered for current accounts (EUR -0.5 billion), while time deposits, bonds and other forms of funding are stable.

The aggregate is up compared to 31 December 2022 (EUR +2.1 billion). The decline in current accounts (EUR -2.8 billion) and other forms of funding (EUR -0.1 billion), following the ongoing measures to optimise the cost of funding and the increased investor appetite in assets under custody, is more than offset by higher volumes of repurchase agreements (EUR +3.8 billion). An increase is also registered for time deposits (EUR +0.4 billion) and bonds (EUR +0.8 billion),

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