Banco di Desio e della Brianza S p A : Consolidated results as at 31 March 2024

PRESS RELEASE

CONSOLIDATED RESULTS AS AT 31 MARCH 2024

Consolidated net profit for the first quarter of Euro 39.1 million, YoY increase of 65.2% on ordinary performance (-

75.3% taking into account extraordinary items in Q1 2023 amounting to Euro 133.1 million1)

Economic performance supported by solid revenue growth (+20.9%) with a good recovery in net commissions

(+4.8%) and a stable cost of risk of 19 bps vs. 36 bps in Q1 2023

Annualised ROE at 11.8%

Further capital strengthening of 26 bps with CET1 at 17.45% and TCR at 18.24% (Banco Desio Group)

Desio, 9 May 2024 - The Board of Directors of Banco di Desio e della Brianza S.p.A. approved the "Consolidated Quarterly Financial Report as at 31 March 2024". The main income statement and balance sheet indicators for the period are summarised in the table below.

PROFITABILITY

SUPPORT FOR THE ECONOMY

RELIABILITY

• Consolidated net profit of Euro 39.1 million (formerly Euro 158.5 million in Q1 2023 influenced by the effect of the extraordinary items related to the "Aquarius" and "Lanternina" transactions for Euro 133.1 million)
• Ordinary profitability increased (ROE annualised at 11.8%) with cost of risk equal to 19 bps2
• Ordinary profitability improved (Euro +16.5 million and +65.2%) as a result of the growth in operating income (+20.9%) against a more moderate growth in related expenses (+13.3%)
• Solid performance of the Operating Margin (Euro +17.5 million and +30.4%) with Net interest income up (Euro +18.3 million and +23.4%)
• Cost income ratio2 at 56.7% (60.8% at Q1 2023)
• Loans to ordinary customers almost stable at Euro 11.6 billion (-0.8% compared to YE 2023) with disbursements to households and businesses during the reporting period amounting to Euro 0.5 billion
• Direct deposits increased to Euro 15.0 billion (+1.3%)3
• Indirect deposits of Euro 21.0 billion (+4.7%, of which ordinary customers up 4.6%)
• Stable incidence of impaired loans: Gross NPL ratio at 3.4% and net NPL ratio at 1.8% (3.3% and 1.7% respectively at YE 2023)
• Solid coverage levels on impaired loans4 at 48.6% and on performing loans at 0.94% (coverage on impaired loans net of government guarantees of 53.4%)
• Liquidity under control with LCR at 198.36% (formerly 244.92% at YE 2023) and NSFR at 130.38% (formerly 132.04%)

	 Capital solidity of Banco Desio Group confirmed with CET1 at 17.45%
	Coefficients6	Banco Desio	Banco Desio Group	Brianza Unione Group7
CAPITAL	Brianza
SOUNDNESS5	CET 1	19.02%	17.45%	12.33%
	TIER 1	19.02%	17.45%	13.17%
	Total Capital	19.88%	18.24%	15.06%

***

• Gross badwill of Euro 51.1 million from the branch acquired from BPER (as a result of the provisional PPA) and gross proceeds of Euro 98.5 million from the sold acquiring branch.
  2 Calculated as the ratio of annualised net adjustments to loans for the period ("Cost of credit" in the Reclassified Income Statement) to total cash exposures to customers net of value adjustments.
  3 Including funding repurchase agreements with institutional customers in the amount of Euro 953 million (Euro 608 million at 31 December 2023) 4 The values shown are grossed up by the amount related to the lower fair value of the acquired impaired loans from the "Lanternina" branch BU.
  5 Based on the Bank of Italy's "SREP" measure communicated to the market on 12 April 2023, which ordered the Brianza Unione "CRR" Group to adopt the following new capital ratios at the consolidated level, starting from the own funds report of 30 June 2023: CET1 ratio of 7.60%, binding - pursuant to art. 67-ter TUB - to the extent of 5.10% (of which 4.50% for minimum regulatory requirements and 0.60% for additional requirements) and the remainder by the capital conservation buffer component, Tier1 ratio of 9.30%, binding to the extent of 6.80% (of which 6.00% for minimum regulatory requirements and 0.80% for additional requirements) and the remainder by the capital conservation buffer component and Total Capital ratio of 11.50%, binding at 9.00% (of which 8.00% against minimum regulatory requirements and 1.00% against additional requirements) and the remainder from the capital conservation buffer component.
  6 Pursuant to the transitional provisions introduced by Regulation (EU) 2017/2395 of 12 December 2017 as amended.
  7 The consolidated ratios at the level of Brianza Unione di Luigi Gavazzi e Stefano Lado S.A.p.A., the parent company of 50.41% of Banco di Desio e della Brianza S.p.A., were calculated in accordance with the provisions of articles 11(2) and (3) and 13(2) of the CRR Regulation.

Consolidated Quarterly Financial Report as at 31 March 2024 | Page 1

The Board of Directors of Banco di Desio e della Brianza S.p.A., which met on 9 May 2024, approved the "Consolidated Quarterly Financial Report as at 31 March 2024" (hereinafter also the "Report"), prepared on a voluntary basis.

The Report was also prepared for the purposes of determining the result for the period for the calculation of own funds and prudential ratios.

As far as the recognition and measurement criteria are concerned, the Report is prepared in accordance with the IAS/IFRS in force at the reporting date, as shown below in the section "Basis of Preparation".

Please refer to the specific disclosure dedicated to the description of the reference context in which this financial disclosure was prepared, which is conditioned by ongoing war conflicts, as well as the significant uncertainties and risks related to this, which may also have a major impact on the expected results that are linked to a number factors beyond management's control.

The amounts in the tables and statements of the Report are expressed in Euro thousands.

The financial statements in this Report are subject to a limited audit by KPMG S.p.A. for the inclusion of the interim result in own funds.

The balances shown in the financial statements and in the relevant tables for the comparison period include the non-recurring effects arising from (i) the acquisition of the branches BU from the BPER Group, which took place on 20 February 2023 (so- called "Lanternina Transaction"), including those deriving from the Purchase Price Allocation (PPA) process pursuant to IFRS 3 Business Combinations, and (ii) the sale to Worldline Italia of the merchant acquiring business unit, which took place on 28 March 2023 (so-called "Aquarius Transaction").

Consolidated Quarterly Financial Report as at 31 March 2024 | Page 2

Results of the period

Summary data and balance sheet, income statement and financial ratios

The alternative performance measures (APMs) presented in this Report have been identified to facilitate understanding of Banco Desio Group's performance. APMs are not required by international accounting standards, represent supplementary information with respect to the measures defined under IAS/IFRS, and are in no way a substitute for them.

For each APM, where necessary, evidence of the calculation formula is provided, and the quantities used can be inferred from the information contained in the relevant tables and/or reclassified financial statements contained in this Report.

These measures are based on the European Securities and Markets Authority (ESMA) guidelines of 5 October 2015 (ESMA/2015/1415), incorporated in Consob Communication No. 0092543 of 3 December 2015. Adhering to the indications contained in the update of document "ESMA 32-51-370 - Questions and answers - ESMA Guidelines on Alternative Performance Measures (APMs)", published on 17 April 2020, no changes were made to the APMs and no new ad hoc measures were introduced to separately highlight the effects resulting from ongoing war conflicts and the Covid-19 epidemic.

Table 1 - Asset values

	31.03.2024	31.12.2023		Changes
Amounts in Euro thousands			abs.	%
Total assets	18,018,525	18,555,255	-536,730	-2.9%
Financial assets	4,068,627	3,957,354	111,274	2.8%
Cash and cash equivalents (1)	1,091,810	1,655,187	-563,377	-34.0%
Loans with banks (2)	413,124	343,818	69,306	20.2%
Loans to customers(2)	11,556,028	11,653,626	-97,598	-0.8%
Tangible assets (3)	229,739	230,994	-1,255	-0.5%
Intangible assets	41,459	41,619	-160	-0.4%
Payables to banks	1,105,844	1,950,065	-844,221	-43.3%
Payables to customers (4) (5)	12,284,062	12,277,411	6,651	0.1%
Securities issued	2,702,218	2,509,819	192,399	7.7%
Equity (including Profit for the period)	1,393,748	1,354,015	39,733	2.9%
Own Funds	1,376,969	1,366,391	10,578	0.8%
Total indirect inflows	21,018,159	20,075,207	942,952	4.7%
of which Indirect inflows from ordinary customers	13,262,908	12,683,669	579,239	4.6%
of which Indirect inflows from institutional customers	7,755,251	7,391,538	363,713	4.9%

1. At 31 March 2024, Cash and cash equivalents included the current accounts, demand deposits and the amount on demand of Euro 1.0 billion relating to cash in excess of the commitment to maintain the compulsory reserve, invested in overnight deposits (Euro 1.5 billion at the end of the previous period)
2. pursuant to Circular 262, the balance of the financial statements item includes Held-to-collect (HTC) debt securities recognised at amortised cost, which are shown under financial assets in these summaries, and does not include current accounts and demand deposits recognised under Cash and cash equivalents.
3. the balance of the item at 31 March 2024 includes the right of use (RoU Asset) amounting to Euro 56.4 million in respect of operating leases falling under the scope of IFRS16 Leases, which came into effect as of 1 January 2019.
4. the balance of the item does not include the liability recognised in the item Payables to customers in the financial statements in respect of operating leases falling within the scope of IFRS16.
5. including inflows repurchase agreements with institutional customers in the amount of Euro 953 million (Euro 608 million at 31 December 2023).

Table 2 - Economic values (6)

	31.03.2024	31.03.2023		Changes
Amounts in Euro thousands			abs.	%
Operating income	156,425	129,395	27,030	20.9%
of which Net interest income	96,334	78,072	18,262	23.4%
Operating expenses	81,480	71,906	9,574	13.3%
Result from operations	74,945	57,489	17,456	30.4%
Charges related to the banking system	7,155	6,780	375	5.5%
Current result after taxes	41,914	25,376	16,538	65.2%
Non-recurring result after taxes	-2,774	133,110	-135,884	n.s.
Profit (loss) for the period	39,140	158,486	-119,346	-75.3%

1. from Reclassified Income Statement.

Consolidated Quarterly Financial Report as at 31 March 2024 | Page 3

Table 3 - Equity, economic and risk ratios

	31.03.2024	31.12.2023	Changes
			abs.
Equity/Total assets	7.7%	7.3%	0.4%
Equity/Loans to customers	12.1%	11.6%	0.5%
Equity/Payables to customers	11.3%	11.0%	0.3%
Equity/Securities issued	51.6%	53.9%	-2.3%
Common Equity Tier1 (CET1)/Risk-weighted assets (7) (8)	17.4%	17.2%	0.26%
Total Tier 1 capital (T1)/Risk-weighted assets (7) (8)	17.4%	17.2%	0.26%
Total Own funds/Risk-weighted assets (Total capital ratio) (7) (8)	18.2%	18.0%	0.27%
Financial assets/Total assets	22.6%	21.3%	1.3%
Loans with banks/Total assets	2.3%	1.9%	0.4%
Loans to customers/Total assets	64.1%	62.8%	1.3%
Loans to customers/Direct inflows from customers	77.1%	78.8%	-1.7%
Payables to banks/Total assets	6.1%	10.5%	-4.4%
Payables to customers/Total assets	68.2%	66.2%	2.0%
Securities issued/Total assets	15.0%	13.5%	1.5%
Direct inflows from customers/Total assets	83.2%	79.7%	3.5%
	31.03.2024	31.03.2023	Changes
			abs.
Operating expenses/Operating income (Cost/Income ratio)	52.1%	55.6%	-3.5%
(Operating expenses + Banking-related expenses)/Operating income (Cost/Income ratio)	56.7%	60.8%	-4.1%
Net interest income/Operating income	61.6%	60.3%	1.3%
Result from operations/Operating income	47.9%	44.4%	3.5%
Current result after taxes/Equity - annualised (9) (10)	12.0%	10.0%	2.0%
Profit for the year/Equity (9) (R.O.E.) - annualised (10) (11)	11.8%	21.6%	-9.8%
Current result before taxes/Total assets (R.O.A.) - annualised (11)	1.4%	0.7%	0.7%
	31.03.2024	31.12.2023	Changes
			abs.
Net bad loans/Loans to customers	0.5%	0.4%	0.1%
Net non-performing loans/Loans to customers	1.8%	1.7%	0.1%
% Cov erage of bad loans	69.2%	69.6%	-0.4%
% Cov erage of bad loans before write-offs	69.5%	69.9%	-0.4%
% Total cov erage of non-performing loans	48.6%	48.8%	-0.2%
% Cov erage of non-performing loans before write-offs	47.5%	49.0%	-1.5%
% Cov erage of performing loans	0.94%	0.97%	-0.03%

Table 4 - Structure and productivity data

	31.03.2024	31.12.2023		Changes
			abs.	%
Number of employees	2,415	2,391	24	1.0%
Number of branches	280	280	0	0.0%
Amounts in Euro thousands
Loans to customers per employee (12)	4,809	5,172	-363	-7.0%
Direct inflows from customers per employee (12)	6,236	6,563	-327	-5.0%
	31.03.2024	31.03.2023		Changes
			abs.	%
Operating income per employee (12) - annualised (10)	258	258	0	0.0%
Result from operations per employee (12) - annualised (10)	122	116	6	5.2%

1. Consolidated equity ratios calculated for Banco Desio. The ratios referred to the prudential supervisory scope of Brianza Unione at 31 March 2024 are: Common Equity Tier1 12.3%; Tier 1 13.2%; Total Capital Ratio 15.1%.
2. Equity ratios at 31.03.2024 are calculated in application of the transitional provisions introduced by EU Regulation 2017/2395; ratios calculated without application of these provisions are as follows: Common Equity Tier1 17.3%; Tier 1 17.3%; Total capital ratio 18.1%
3. net of the result for the period.
4. the 2023 year-end figure at 31.03.2024 is shown.
5. the annualised ROE at 31.03.2024 does not consider the annualisation of the Net non-recurring operating result.
6. based on the number of employees as the arithmetic mean between the period-end figure and the previous year-end figure.

Consolidated Quarterly Financial Report as at 31 March 2024 | Page 4

Consolidated income statement

Profit for the period was Euro 39.1 million, up YoY by 65.2% on ordinary performance and down by -75.3% taking into account extraordinary items in Q1 2023 amounting to Euro 133.1 million. In particular, the result recorded in the first quarter of 2023 was affected by the non-recurring positive effects deriving from (1) the acquisition of the business units of the BPER Group with the recognition of badwill of Euro 51.1 million, before taxes, resulting from the purchase price allocation (PPA) process pursuant to IFRS 3 Business Combinations and (2) from the sale to Worldline Italia of the business unit relating to the merchant acquiring business with the recognition of a gain of Euro 98.5 million, before taxes.

The ordinary part contributes to the profit for the period with a current result of Euro 41.9 million, net of taxes, up 65.2% over the comparison period (Euro 25.4 million) due to the growth in operating income (+20.9%) against a more contained growth in the relative charges (+13.3%); these dynamics are conditioned by the different contribution given by the branches BU acquired from the BPER Group (three months in the reference period compared to just over one month in the comparison period).

Table 5 - Reclassified consolidated income statement

Items				Changes
Amounts in Euro thousands	31.03.2024	31.03.2023	Value	%
10+20	Net interest income	96,334	78,072	18,262	23.4%
70	Div idends and similar income	462	469	-7	-1.5%
40+50	Net commissions	52,243	49,836	2,407	4.8%
80+90+100+	Net result of financial assets and liabilities	6,535	1,086	5,449	501.7%
110
230	Other operating income/expenses	851	-68	919	n.s.
	Operating income	156,425	129,395	27,030	20.9%
190 a	Personnel expenses	-53,749	-45,518	-8,231	18.1%
190 b	Other administrativ e expenses	-24,513	-23,847	-666	2.8%
210+220	Net v alue adjustments on tangible and intangible assets	-3,218	-2,541	-677	26.6%
	Operating expenses	-81,480	-71,906	-9,574	13.3%
	Result from operations	74,945	57,489	17,456	30.4%
130a+100a	Cost of credit	-5,372	-11,272	5,900	-52.3%
130 b	Net v alue adjustments on own securities	1,057	-1	1,058	n.s.
140	Gains/losses from contractual amendments without derecognition	5	22	-17	-77.3%
200 a	Net allocations to prov isions for risks and charges - commitments and guarantees giv en	640	-563	1,203	n.s.
200 b	Net allocations to prov isions for risks and charges - other	-743	-966	223	-23.1%
	Charges related to the banking system	-7,155	-6,780	-375	5.5%
250	Gains (Losses) on inv estments	50	-10	60	n.s.
	Current result before taxes	63,427	37,919	25,508	67.3%
300	Income taxes on current operations	-21,513	-12,543	-8,970	71.5%
	Current result after taxes	41,914	25,376	16,538	65.2%
	Allocations to prov isions for risks and charges, other allocations, "one-off" expenses and	-4,145	147,999	-152,144	n.s.
	rev enues
	Non-recurring result before taxes	-4,145	147,999	-152,144	n.s.
	Income taxes on non-recurring items	1,371	-14,889	16,260	n.s.
	Non-recurring result after taxes	-2,774	133,110	-135,884	n.s.
330	Profit (Loss) for the year	39,140	158,486	-119,346	-75.3%
340	Profit (Loss) for the period attributable to minority interests	0	0
350	Profit (Loss) for the period attributable to the Parent Company	39,140	158,486	-119,346	-75.3%

The main cost and revenue components of the reclassified income statement are analysed below, commenting, where necessary, on cases of comparison on a non-homogeneous basis.

Operating income

The core revenue items from operations increased by approximately Euro 27.0 million (+20.9%) compared to the comparison period, amounting to Euro 156.4 million. The performance is mainly attributable to the growth in net interest income of Euro 18.3 million (+23.4%) and net commissions of Euro 2.4 million (+4.8%), the growth in the

Consolidated Quarterly Financial Report as at 31 March 2024 | Page 5

net result from financial assets and liabilities of Euro 5.4 million (+501.7%) and other operating income and expenses of Euro 0.9 million.

Finally, dividends amounted to Euro 0.5 million, in line with the comparison period.

Operating expenses

The aggregate of operating expenses, which includes personnel expenses, other administrative expenses and net value adjustments on tangible and intangible assets, amounted to approximately Euro 81.5 million (Euro 71.9 million in the comparison period), showing an increase compared to the comparison period of respectively Euro

1. million (+18.1% for the Lanternina Transaction and the renewal of the CCNL), Euro 0.7 million (+2.8%) and Euro

1. million (+26.6%).

Result from operations

Consequently, the result from operations amounted to Euro 74.9 million, an increase over the comparison period (+30.4%).

Current result after taxes

From the result from operations of Euro 74.9 million, we can obtain the current result after taxes of Euro 41.9 million, a growth of 65.2% compared to Euro 25.4 million in the comparison period, mainly due to:

• the cost of credit (given by the balance of Net value adjustments for impairment of financial assets at amortised cost and gains (losses) on sale or repurchase of loans), amounting to approximately Euro 5.4 million (roughly Euro 11.3 million in the previous period influenced by the Lanternina Transaction);
• net value adjustments on securities owned for Euro 1.1 million (zero balance in the comparison period);
• negative net allocations to provisions for risks and charges of Euro 0.1 million (negative by Euro 1.5 million in the comparison period);
• charges related to the banking system of approximately Euro 7.2 million (Euro 6.8 million in the comparison period);
• income taxes on current operations of Euro 21.5 million (Euro 12.5 million in the comparison period);

Non-recurring operating result after taxes

As at 31 March 2024, a negative non-recurring result of about Euro 2.8 million was recorded as a result of:

• charges related to the extraordinary contribution to the Interbank Deposit Protection Fund ("DGS") in the amount of Euro 4.1 million, the recognition of which was brought forward to Q1 to reflect the different dynamics with which the 2024 contribution will be requested compared to previous years

after the related positive tax effect of Euro 1.4 million.

In the comparison period, a positive non-recurring result of about Euro 133.1 million was recorded as a result:

• the proceeds of Euro 98.5 million, net of related costs, from the completion of the transaction for the transfer to Worldline Italia of the Banco Desio merchant acquiring business;
• the provisional badwill of Euro 51.1 million resulting from the purchase price allocation (PPA) process related to the acquisition of the 48 bank branches from BPER Banca S.p.A. (formerly Carige S.p.A.) and by Banco di Sardegna S.p.A. with effect from 20 February 2023;
• expenses amounting to Euro 1.6 million relating to consultancy and IT migration costs associated with the aforementioned Lanternina Transaction

after the related negative tax effect of Euro 14.9 million.

Result for the period

The sum of the current and non-recurring result determines the profit for the period, which amounted to Euro

39.1 million at 31 March 2024, down 75.3% compared to the same period of the previous year, which benefited from the revenue components of the Lanternina Transaction and the Aquarius Transaction.

Consolidated Quarterly Financial Report as at 31 March 2024 | Page 6

Table 6 - Reconciliation of financial statements and reclassified income statement as at 31.03.2024

		From														Reclassified
		Financial						Reclassifications
													statement
Items		Statements
										Alloc ations to
			Non-performing			Recov ery of	Expected loss	Amortisation	Gains (Losses)	provisions for
			Fides brokerage	Commission	on sale or	risks and	System	Reclassifications	Personnel	Income
Amount s in Euro thousands	31.03.2024	loans v aluation	taxes/	on securities at	for leasehold	charges / other		31.03.2024
commission	income	repurchase of	allocations,	charges	IFRS16 - Leases	expenses	taxes
			effects	expenses	amortised cost	improv ements
					receiv ables	"one- off"
									expenses and
										revenues
10+20	Net interest income	99,818	-1,069	-2,718								303				96,334
70	Div idends and similar income	462														462
40+50	Net commissions	49,525		2,718	0											52,243
80+90+100+1	Net result of financial assets and liabilities	2,688							3,847	0						6,535
10
230	Other operating income/expenses	9,093				-8,513		271		0						851
	Operating income	161,586	-1,069	0	0	-8,513	0	271	3,847	0	0	303	0	0		156,425
190 a	Personnel expenses	-53,749								0			0			-53,749
190 b	Other administrativ e expenses	-41,289				8,513				0	11,300	-3,037				-24,513
210+220	Net v alue adjustments on tangible and intangible assets	-5,681						-271				2,734				-3,218
	Operating expenses	-100,719	0	0	0	8,513	0	-271	0	0	11,300	-303	0	0		-81,480
	Result from operations	60,867	-1,069	0	0	0	0	0	3,847	0	11,300	0	0	0		74,945
130a+100a	Cost of credit	-1,700	1,069				-875		-3,847	-19						-5,372
130 b	Net v alue adjustments on own securities	182					875									1,057
140	Gains/losses from contractual amendments without derecognition	5														5
200 a	Net allocations to prov isions for risks and charges - commitments and guarantees giv en	640														640
200 b	Net allocations to prov isions for risks and charges - other	-762								19						-743
	Charges related to the banking system									0	-7,155					-7,155
250	Gains (Losses) on inv estments	50														50
	Current result before taxes	59,282	0	0	0	0	0	0	0	0	4,145	0	0	0		63,427
300	Income taxes on current operations	-20,142												-1,371		-21,513
																0
	Current result after taxes	39,140	0	0	0	0	0	0	0	0	4,145	0	0	-1,371		41,914
260	Net result of fair v alue measurement of tangible and intangible assets	0					0									0
	Allocations to prov isions for risks and charges, other allocations, "one-off" expenses and		0				0			0	-4,145					-4,145
	rev enues
	Non-recurring result before taxes	0	0	0	0	0	0	0	0	0	-4,145	0	0	0		-4,145
	Income taxes on non-recurring items													1,371		1,371
	Non-recurring result after taxes	0	0	0	0	0	0	0	0	0	-4,145	0	0	1,371		-2,774
320	Profit (Loss) from discontinued operations after taxes	0			0					0			0	0		0
330	Profit (Loss) for the year	39,140	0	0	0	0	0	0	0	0	0	0	0	0		39,140
340	Profit (Loss) for the period attributable to minority interests	0														0
350	Profit (Loss) for the period attributable to the Parent Company	39,140	0	0	0	0	0	0	0	0	0	0	0	0		39,140

Consolidated Quarterly Financial Report as at 31 March 2024 | Page 7

Consolidated balance sheet

Funding

The value of loans to ordinary customers at 31 March 2024 stood at around Euro 36.0 billion, up from the 2023 year-end figure (+3.3%).

Direct funding amounted to around Euro 15.0 billion, an increase of 1.3% compared to 31 December 2023, as a result of the growth in securities issued (7.7%); amounts due to customers showed slight growth compared to the end of the previous year (+0.1%).

Indirect inflows recorded a balance of Euro 21.0 billion (+4.7%). Inflows from ordinary customers amounted to Euro 13.3 billion, an increase of 4.6% compared to the end of the previous year; the increase is attributable to the positive performance of assets under administration (+8.7%) and assets under management (+2.3%).

The following tables show the development of funding in the reporting period and the breakdown of direct and indirect funding, respectively.

Table 7 - Inflows from customers

		Incidence		Incidence	Changes
Amounts in Euro thousands	31.03.2024	31.12.2023	Value	%
		%		%
Payables to customers	12,284,062	34.1%	12,277,411	35.2%	6,651	0.1%
Securities issued	2,702,218	7.5%	2,509,819	7.2%	192,399	7.7%
Direct inflows	14,986,280	41.6%	14,787,230	42.4%	199,050	1.3%
Inflows from ordinary customers	13,262,908	36.8%	12,683,669	36.4%	579,239	4.6%
Inflows from institutional customers	7,755,251	21.6%	7,391,538	21.2%	363,713	4.9%
Indirect inflows	21,018,159	58.4%	20,075,207	57.6%	942,952	4.7%
Total inflows from customers	36,004,439	100.0%	34,862,437	100.0%	1,142,002	3.3%

Table 8 - Direct inflows from customers

					Changes
Amounts in Euro thousands	31.03.2024	Incidence	31.12.2023	Incidence	Value	%
		%		%
Payables to customers	12,284,062	82.0%	12,277,411	83.0%	6,651	0.1%
Current accounts and deposits	10,675,496	71.2%	11,129,419	75.2%	-453,923	-4.1%
current accounts and demand deposits	9,679,863	64.6%	10,116,726	68.4%	-436,863	-4.3%
fixed-term deposits and restricted curren	995,633	6.6%	1,012,693	6.8%	-17,060	-1.7%
Repurchase agreements and securities lending	953,284	6.4%	607,636	4.1%	345,648	56.9%
Loans and other payables	655,282	4.4%	540,356	3.7%	114,926	21.3%
Securities issued	2,702,218	18.0%	2,509,819	17.0%	192,399	7.7%
measured at fair v alue	2,701,999	18.0%	2,509,466	17.0%	192,533	7.7%
certificates of deposit and other securities	219	0.0%	353	0.0%	-134	-38.0%
Direct inflows	14,986,280	100.0%	14,787,230	100.0%	199,050	1.3%

Consolidated Quarterly Financial Report as at 31 March 2024 | Page 8

Table 8-bis - Indirect inflows from customers

		Incidence		Incidence	Changes
Amounts in Euro thousands	31.03.2024	31.12.2023	Value	%
		%		%
Assets under Administration	4,936,805	23.5%	4,541,442	22.6%	395,363	8.7%
Assets under Management	8,326,103	39.6%	8,142,227	40.6%	183,876	2.3%
Asset management	1,271,447	6.0%	1,230,806	6.1%	40,641	3.3%
Mutual funds and Sicav	4,058,844	19.3%	3,923,722	19.5%	135,122	3.4%
Banking-insurance products	2,995,812	14.3%	2,987,699	15.0%	8,113	0.3%
Inflows from ordinary customers	13,262,908	63.1%	12,683,669	63.2%	579,239	4.6%
Inflows from institutional customers (1)	7,755,251	36.9%	7,391,538	36.8%	363,713	4.9%
Assets under Administration	7,086,725	33.7%	6,741,530	33.6%	345,195	5.1%
Assets under Management	668,526	3.2%	650,008	3.2%	18,518	2.8%
Indirect inflows (1)	21,018,159	100.0%	20,075,207	100.0%	942,952	4.7%

1. Inflows fro m institutional custo mers include securities on deposit underlying the Bancassurance segment of ordinary customers amounting to abo ut Euro 2.1billion (at 31.12.2023 abo ut Euro 2.1 billion).

The in-depth investigations conducted on investments held by customers (securities, funds, asset management, etc.) relating to issuers based in Russia, Belarus and Ukraine, or in any case having the rouble as their issuing currency, have not so far revealed any significant risk profiles.

Employment and coverage

The overall value of loans to customers as at 31 March 2024 stood at approximately Euro 11.6 billion, substantially in line with the balance at the end of 2023 (-0.8%).

The following table shows the breakdown of loans to customers by type at 31 March 2024 (compared to 31 December 2023).

Table 9 - Breakdown of loans to customers

					Changes
Amounts in Euro thousands	31.03.2024	Incidence %	31.12.2023	Incidence %	Value	%
Mortgages	8,004,781	69.2%	8,147,015	69.9%	-142,234	-1.7%
fixed rate	4,898,372	42.4%	4,943,202	42.4%	-44,830	-0.9%
variable rate	733,274	6.3%	747,764	6.4%	-14,490	-1.9%
m ixed rate (1)	2,373,135	20.5%	2,456,049	21.1%	-82,914	-3.4%
Current accounts	875,942	7.6%	888,054	7.6%	-12,112	-1.4%
Finance lease	156,271	1.4%	154,409	1.3%	1,862	1.2%
Credit cards, personal loans and salary-backed loans	1,509,699	13.1%	1,440,166	12.4%	69,533	4.8%
Other transactions	1,009,335	8.7%	1,023,982	8.8%	-14,647	-1.4%
Loans to customers	11,556,028	100.0%	11,653,626	100.0%	-97,598	-0.8%

1. This category of loans includes loans the interest rate of which may change from fixed to v ariable at maturities and/or conditions set in the contract.

The sub-item "Other transactions" includes financing transactions other than those indicated in the previous sub- items (e.g. bullet loans, advances on invoices and bills subject to collection, import/export advances and other miscellaneous items).

On the overall portfolio, the Credit Department continued its monitoring activities, whose analysis of the positions revealed an increase in the deterioration of existing credit facilities - albeit at levels in line with the pre-pandemic period - on which risk containment and management actions were activated.

Consolidated Quarterly Financial Report as at 31 March 2024 | Page 9

Monitoring the indirectly most exposed positions is one of the first drivers of attention in order to ensure the best quality of the credit portfolio over time and, at the same time, to identify the best solutions to enable companies to continue their business. In continuity with the actions taken in the Covid context, the Bank adopted the Temporary Crisis Framework (TCF) that allowed SMEs to apply for access to MCC-guaranteed financing to address liquidity needs related to the economic and financial turmoil caused by the ongoing conflicts and by the measures implemented by the ECB, which led to a significant increase in rates.

The table below summarises the gross and net indicators of credit risk and the relative coverage levels (the values shown therein are grossed up by the amount related to the lower fair value of the impaired acquired loans of the Lanternina perimeter).

Table 10 - Credit quality as at 31 March 2024

			31.03.2024
Amounts in Euro thousands	Gross	Incidence %	Value	Coverage		Incidence %
of total	Net exposure	of total
	exposure	adjustments	ratio
	loans		loans
Bad loans	171,315	1.5%	(118,628)	69.2%	52,687	0.5%
Unlikely to pay	218,402	1.8%	(75,523)	34.6%	142,879	1.2%
Impaired past-due	14,339	0.1%	(2,234)	15.6%	12,105	0.1%
Total impaired	404,056	3.4%	(196,385)	48.6%	207,671	1.8%
Stage 1 exposures	9,497,491	80.1%	(15,629)	0.16%	9,481,862	82.0%
Stage 2 exposures	1,958,660	16.5%	(92,165)	4.71%	1,866,495	16.2%
Performing exposures	11,456,151	96.6%	(107,794)	0.94%	11,348,357	98.2%

Total loans to customers

11,860,207

100.0%

(304,179)

2.6%

11,556,028

100.0%

Table 10-bis - Credit Quality as at 31 December 2023

			31.12.2023
Amounts in Euro thousands	Gross	Incidence %	Value	Coverage		Incidence %
of total	Net exposure	of total
	exposure	adjustments	ratio
	loans		loans
Bad loans	157,737	1.4%	(109,847)	69.6%	47,890	0.4%
Unlikely to pay	218,463	1.8%	(78,741)	36.0%	139,722	1.2%
Impaired past-due	15,091	0.1%	(2,390)	15.8%	12,701	0.1%
Total impaired	391,291	3.3%	(190,978)	48.8%	200,313	1.7%
Stage 1 exposures	9,488,837	79.4%	(15,825)	0.17%	9,473,012	81.3%
Stage 2 exposures	2,076,703	17.3%	(96,402)	4.64%	1,980,301	17.0%
Performing exposures	11,565,540	96.7%	(112,227)	0.97%	11,453,313	98.3%
Total loans to customers	11,956,831	100.0%	(303,205)	2.5%	11,653,626	100.0%

Consolidated Quarterly Financial Report as at 31 March 2024 | Page 10