FinecoBank : Presentazione risultati 2019

FY19 Results

Alessandro Foti, CEO and General Manager

Milan, February 11th2019

Disclaimer

• This Presentation may contain written and oral"forward-looking statements", which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of FinecoBank S.p.A. (the "Company"). There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of future performance. The Company undertakes no obligation to publicly update 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. The information and opinions contained in this Presentation are provided as at the date hereof and are subject to change without notice. Neither this Presentation nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision.
• The information, statements and opinions contained in this Presentation are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction of the United States or in Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would be unlawful (the "Other Countries"), and there will be no public offer of any such securities in the United States. This Presentation does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries.
• Pursuant the consolidated law on financial intermediation of 24 February 1998 (article154-bis, paragraph 2) Lorena Pelliciari, in her capacity as manager responsible for the preparation of the Company's financial reports declares that the accounting information contained in this Presentation reflects FinecoBank's documented results, financial accounts and accounting records.
• Neither the Company nor any of its representatives, directors or employees accept any liability whatsoever in connection with this Presentation or any of its contents or in relation to any loss arising from its use or from any reliance placed upon it.

2

Agenda

Fineco Results

Next steps and developing opportunities

Key messages

Focus on product areas

3

Executive Summary

Double digit net profit growth

• 2019 Net profit at 288.4mln, +20% y/y.This result benefits from the fiscal benefit coming from the Patent box(estimated at around 22mln). Adj. Net profit(1)at 268.8mln, +10% y/yconfirming the sustainability of a business model able to deliver consistent results in every market condition
• Growing revenues(1)at 658mln, +5% y/ysupported by all business areas: Investing, +10% y/y, with management fees up +12% y/y, and Banking area (+2% y/y) thanks to high quality volume growth in deposits and lending. Revamped Brokerage (+15% 2H19/1H19) thanks to an in-depth review of our product offer after the change in the market structure due to lower volatility and increased regulation
• Operating Costs well under control at-250mln,+2% y/y.C/I ratio at 37.9%, -0.9 p.p. y/y, confirmingoperating leverage as a key strength of the Bank

Strong and safe capital position

• CET1 ratio at 18.12%and TCR at 33.67%, with a proposal of 32.0 €/cents dividend per share (+5.6% y/y)

Robust commercial activity

• 2019 Net sales at 5.8bn, TFA at 81.4bnwith penetration ofGuided products on Assets under Management at 71%
• Fineco Asset Management recorded its best quarter in terms of retail total net sales

Delivering on our industrial measures

• Banking:initiatives to further improving our client base and slowing down the growth of our Balance Sheet
• Investing:further push to move customers' liquidity in Asset under Management, leveraging on product innovation, FAM and the new platform
• Brokerage:revamped results after a completely redesigned product offer

4(1)FY19 non recurring items: Voluntary Scheme: -3.0mln gross, -2.0mln net. Patent Box estimate: 21.6mln in 4Q19. FY18 non recurring items: Voluntary Scheme: -3.0mln gross, -2.0mln net in 4Q19; Staff expenses -1.6mln gross, -1.1mln net in 3Q19; Integration costs release: -0.1mln gross, -0.1mln net.

Adj. RoE(2)

Results

Adj. Net Profit at 268.8mln, +10.0% y/y, boosted by diversified revenues growth. C/I ratio at 37.9%, down ~0.9 p.p. y/y confirming our strong operating leverage

Net Profit, mln		Revenues, mln

excluding non recurring items (1)

Adj. Cost/Income (2)

			+10.0%
Deposit Guarantee Scheme:		288.4
FY19: -18.1mln(gross)
FY18: -14.3mln (gross)	241.2
	+7.8%
				268.8
	+16.3%	244.4
		93.2
63.5	61.0
65.6	60.8	70.7
4Q18	3Q19	4Q19	FY18	FY19
33%	24%	24%	36%	27%
38%	35%	38%	39%	38%

excluding non recurring items(1)

			+4.7%
	+3.3%		625.3	654.8
	+2.0%		657.8
		170.2	628.3
160.4	165.8
163.5	165.4	168.8
4Q18	3Q19	4Q19	FY18	FY19

Operating Costs, mln

excluding non recurring items(1)

	+5.0%		+2.2%
	+11.8%	245.8	249.6
61.4	57.6	64.4	244.1
4Q18	3Q19	4Q19	FY18	FY19

	(1)FY19 non recurring items: Voluntary Scheme: -3.0mln gross, -2.0mln net (1Q19: -0.4mln gross, -0.3mln net; 2Q19: -4.3mln gross, -2.9mln net;
	3Q19: +0.4mln gross, +0.3mln net; 4Q19: +1.4mln gross, +0.9mln net); Patent Box estimate: 21.6mln in 4Q19. FY18 non recurring items: Voluntary
5	Scheme: -3.0mln gross, -2.0mln net in 4Q19; Staff expenses -1.6mln gross, -1.1mln net in 3Q19; Integration costs release: -0.1mln gross,	-
	0.1mln net.

(2)Adj. Cost/Income and Adj. RoE calculated net of non recurring items

Net interest income (1/2)

Solid NII, +0.9% y/y thanks to valuable and sticky sight deposits coupled with high-quality lending portfolio. Increasing diversification in financial investments

Net Interest Income, mln

	(1)	Other(2)		(3)
Financial Investments	Lending	Cost of funding
o/w other Bonds	o/w UC Bonds	+0.9%
				278.7	281.3
	-1.9%			38.8	43.3
	-0.1%		10.6	11.0
71.1	69.8	69.7
3.110.3	2.911.1	2.810.9
				237.8	236.3
60.1	58.5	57.7
-2.4	-2.6	-1.7		-8.6	-9.3
4Q18	3Q19	4Q19		FY18	FY19
18.5	25.6	27.7		63.0	95.8
36.5	31.0	28.5		.9	126 9
	33.4	31.0		15519.4	98.4

Interest-earning assets, avg bn
Financial Investments(1)	Lending	Other(2)	Gross margins(4)
Cost of deposits	1M Euribor	Eurirs 5y
	+13.9%
	+3.4%	+11.2%
	24.8	25.6		24.4
22.5	21.7	22.1	21.9	21.0
19.1			18.8
2.5	2.9	3.1	2.2	2.8
0.9	0.2	0.5	0.9	0.5
4Q18	3Q19	4Q19	FY18	FY19
1.29%	1.17%	1.11%	1.30%	1.20%
-0.04%	-0.04%	-0.03%	-0.04%	-0.04%
-0.37%-0.42%-0.45%	-0.37%	-0.40%
0.33%	-0.39%	-0.24%	0.35%	-0.14%

1. Financial investments include interest income coming from the reinvestments of deposits (both sight and term) in: Government bonds, UC bonds, Covered bonds, Supranational and Agencies and other financial investments (repos and immediate available liquidity)
2. Other net interest income includes Security Lending, Leverage and other (mainly marketing costs). Otherinterest-earning assets include Security Lending and Leverage. See page 46 for details

6(3)Lending: only interest income

(4)Gross margins: interest income related to financial investments, lending, leverage, security lending on interest-earning assets

Net interest income (2/2)

Further improvements for a diversified asset side.

Sensitivity analysis +100bps / -100bps parallel shift: +129mln NII / -119mln NII

Bond Portfolio, avg bn

UC bonds	Spain	SSA (1)
Italy	Other Govies(2)	Covered Bonds

+21.5%

	+4.5%		+16.1%
	20.6	21.6			19.9
17.8		7.5		17.2
	7.9
			8.1
9.2		5.0		9.8
	4.3
			4.3
3.9	3.6	3.8		3.8	3.5
3.2	3.2	3.4		2.9	2.6
0.0 0.41.0	0.4 1.1	0.6 1.2	0.0	0.3 1.0
0.2 0.5
4Q18	3Q19	4Q19		FY18	FY19

Avg Bond portfolio FY19 (excl. UC Bonds): 11.8bn, +59.7% y/y, +10.4% q/q

70%(3)at fixed rate, avg yield: 86bps

UC bonds and Govies run-offs,eop bn

UC Bonds Govies & SSA Covered Bonds

	2.9		2.8		3.1
															1.9				2.1		2.1		2.0
	1.8				2.2
		1.9									1.6
			1.5
									1.4
													0.6		1.8		2.0		2.1		1.7
								1.1
	1.1											1.3
		0.9		0.9					0.9
						0.5
																					0.3
	0.0		0.0		0.0		0.0				0.1		0.1		0.1			0.1			0.0
														2029
	2020		2021		2022	2023			2024		2025	2026		2027		2028
	227	234	145	188		157		UC Bonds avg spread vs Eur1M, bps

Residual maturity total portfolio: 4.6 yrs

o/w UC Bonds: 2.0 yrs

o/w Govies: 6.0 yrs

7

(1)Sovereign Supranational & Agencies

(2)Other includes: 0.6bn France, 0.6bn Ireland, 0.4bn Austria, 0.4bn Belgium, 0.3bn Germany, 0.3bn USA, 0.1bn Portugal, 0.1bn Poland in avg FY19

(3)Calculated on nominal value as of Dec.31st, 2019

Commissions and Trading Income

Fees and commissions grew +8.2% y/y. Sustainable growth generating recurring revenues, with Management fees up +11.7% y/y. Revamped Brokerage

Fees and Commissions, mln		Trading Income, mln

Brokerage	Investing	Banking	Other
Incentives to PFAs (1)
FY19 Management fees: +11.7% y/y	+8.2%
Upfront fees 2% of Investing		325.2
No performance fees	300.4
	+0.6%				77.3
			74.7
	-2.3%
81.8	84.3	82.3
18.2	20.0	20.8		206.8	226.2
58.0	58.3	56.1
0.25.5	0.15.9	0.15.3		0.918.1	0.421.3
4Q18	3Q19	4Q19		FY18	FY19
-0.4	-3.6	-8.0		-14.1	-18.9

mln

excluding non recurring items (2)

o/w Brokerage

			+0.9%
			44.3	44.8
	+55.6%			47.7
			47.3
	+24.1%
		15.3
	11.6
5.9	11.2	13.9
8.9
4Q18	3Q19	4Q19	FY18	FY19
10.6	11.5	11.8	44.8	41.3

1. Mainly PFAs annual bonus

8	(2)Adj. Trading Income excluding non recurring items: Voluntary Scheme: -3.0mln gross, -2.0mln net (1Q19: -0.4mln gross, -0.3mln net;
2Q19: -4.3mln gross, -2.9mln net; 3Q19: +0.4mln gross, +0.3mln net; 4Q19: +1.4mln gross, +0.9mln net)

Costs

Cost efficiency and operating leverage confirmed in our DNA

Staff expenses and FTE, mln

FTE #	excluding non recurring items (1)
	+7.5%		+6.1%
	+4.7%	86.6	90.2
21.9	22.5	23.6	85.0
4Q18	3Q19	4Q19	FY18	FY19
1,125	1,161	1,187

Long Term Incentive Plans,mln

Staff expenses, related to top managers and key employees

Other administrative expenses, related to PFAs	o/w1.7mln
								6.4	new 2018-
								2020 LTI
								2.6	3.8
1.3		0.7	0.8	3.8	2.0
	0.7		1.7
0.7			0.5			0.5
	0.3
	0.2
4Q18	3Q19		4Q19	FY18	FY19

Non HR Costs,mln		Total Operating costs, mln

OAE	Write-downs/backs & depreciation (2)
	+3.5%		+0.2%
	+16.3%	159.2	159.4
39.5	35.1	40.9
		148.7	136.6
36.3	29.4	34.3
	22.9
3.1	5.8	6.6	10.4
4Q18	3Q19	4Q19	FY18	FY19

excluding non recurring items (1)		CAGR
+2%			2014-2018
		+4%
246	250	212	233	226	233	246
244						244

FY18 FY19 FY14 FY15 FY16 FY17 FY18

Please note that2019 Operating costs grew less than2014-2018CAGR(+2% vs +4%)

1. Non recurring items: severance (staff expenses)-1.6mln gross in 3Q18
2. Following IFRS16, leasing costs previously accounted in other administrative expenses are now booked inwrite-down/backs and depreciation.

9For more details on IFRS16 please refer to slide 51

Patent Box

Fineco is the first Bank finalizing the agreement

• We havefinalized the agreementwith the Italian Fiscal Authority on the Patent Box for years 2015/2019
• Fineco is thefirst Bankto sign the agreement, which relates to both intellectual properties (our platform internally created and developed) and trademark
• Fiscal benefit for the 5 yearsis estimated at around 22mln(recorded in our 2019 Financial Statement), of which around 5 million related to trademark. The estimated benefit is not going to be distributed.
• For2019,the fiscal benefit related to intellectual properties was estimated in a range between € 3.5 and 4 mln.
• The Bank will apply in order to renew the fiscal benefit on intellectual properties for the next 5 years.The renewal of the trademark is excluded due to regulation.
• The Patent Box is a tax relief regime for companies generating income through the use of intangible assets. The fiscal benefit for 2015 is determined by excluding from the taxable income the 30% of the income attributable to the use of intangible assets; for 2016 the percentage is equal to 40% and for the remaining years it is equal to 50%.

10

Boost in high quality lending volume offered exclusively to the existing base of clients, leveraging on our internal Big Data analytics

Commercial Loans portfolio, eop mln

Current accounts/Overdraft (1)	Cards
Personal loans	Mortgages

+23.9%

+9.3%

3,259

2,981

2,629

1,281

1,197

Cost of Risk on commercial loans (2)

24 bps

15 bps

12 bps

Dec.18 Sep.19 Dec.19

Decreasing Cost of Risk thanks to the constant

improvement in the quality of the credit which is mainly

secured and low risk

1,010

455

463

We confirm our strategy aims to build a safe

lending portfolio, offering these products exclusively

439356

to our very well known base of clients, leveraging on a

321

299

deep internal IT culture, powerful data warehouse

system and Big Data analytics

8591,030 1,159

Dec.18 Sep.19 Dec.19

More details on the quality of our portfolio in the

following slide, with a deep dive on the main products

offered

1. Current accounts/overdraft Include Lombard loans
2. New methodology for calculating Cost of Risk to have a better representation of the ratio: commercial LLP of the last 12 months on average last 12 months commercial Loans instead of annualized LLP

11

Lending

Boost in high quality lending volume through mortgages, personal loans and

lombard loans

2020 Guidance

Eop, mln

Mortgages

+35.0%

+12.5%

12,193 mortgagesgranted since December 2016

yearly new production:

Average customer rate:168bps. FY19 Yield(1)at 76bps

~350-500mln

0.9

1.0

1.2

Average Loan to Value 53%and average maturity 19 yrs

Expected yield:

Low expected loss (~23 bps)

~ 70-80 bps

Dec.18

Sep.19

Dec.19

Personal Loans

+5.4%

Average ticket €9.100 and average maturity 4.5 years

yearly new production:

FY19 Yield at 405bps

~ 380-410 bps

+1.7%



Efficient and real time process, instant approval

(~20mln net)

439

455

463

platform for eligible clients' requests thanks to a deep

Expected yield:

knowledge of clients.

Low expected loss (~53 bps)

Dec.18

Sep.19

Dec.19

Lombard Loans

Other lombard Credit lombard

+27.0%

+7.7%

1.01.2 1.3

0.8 0.21.00.21.10.2Dec.18 Set.19 Dec.19

o/w Credit Lombard(2):

• Attractive pricing:retail clients 100bps and private clients 75bps (on 3M Eur(3))
• Differentiated marginsaccording to the riskiness of the pledged assets
• Very low expected loss(~10 bps)

o/w Credit Lombard(2):

• Expected growth:~300-400mlnper year
• Expected yield:

~75-85bps

1. Yield on mortgages net of amortized and hedging costs
2. Credit Lombard allows to change pledged assets without closing andre-opening the credit line, allowing more flexibility and efficiency

12with floor at zero

Capital Ratios(1)

Best in class capital position and low risk balance sheet

(2)

RWA, mln

Credit Market Operational

			+35.4%
					-2.1%
2,376	3,287	3,217
1,972	2,074
1,753
				42
							40
		19		1,273
					1,103
604
Dec.18		Sept.19		Dec.19

Leverage Ratio, %

5.55

3.85 3.85

CET1 Ratio(3), %

CET1 capital, mln

-304bps

+4.3%

21.1617.37 18.12

Dec.18 Sept.19 Dec.19

503 571 583

Total Capital Ratio, %

+409bps

+3.3%

29.58 32.58 33.67

Dec.18

Sept.19

Dec.19

Dec.18

Sept.19

Dec.19

1. Data as of December 2018 were determined on individual basis
2. "Starting from 31 December 2019, FinecoBank applied the Standardised Method for determining the regulatory requirement related to operational risk, replacing the Advanced Measurement Method ("AMA") adopted previously."

13(3)Assuming 2019 dividend of 32.0 €/cent per share

TFA

Relentless TFA growth thanks to a healthy expansion in net sales. Guided products & Services increased at 71% of total AuM

TFA evolution (Dec.13 - Dec. 19), bn

	Cumulated performance							81.4
							6.2
	Net Sales	+32.5 bn			67.2	6.2	-4.1	69.3	5.8
	Market Effect	+5.3 bn			1.0
						60.2	6.0
				55.3	5.0	-0.2
		49.3	5.5	0.5
43.6	4.0	1.7

TFA	Net Market TFA	Net Market TFA	Net Market TFA	Net Market TFA	Net Market TFA	Net Market TFA
2013	sales effect 2014	sales effect 2015	sales effect 2016	sales effect 2017	sales effect 2018	sales effect 2019

28%

36%

44%

56%

63%

67%

71%

Guided products as % of total AuM (1)

14(1)Calculated as Guided Products end of period divided by Asset under Management end of period

TFA breakdown

Successful shift towards high added value products thanks to strong productivity of the network

Breakdown of total TFA, bn

Focus on AUM, bn

Guided products as % of AuM	+17.4%			+16.6 bn AUM since the end of 2014, o/w:
								Guided Products & Services +20.3 bn
					81.4	81.9				AuM à la carte -3.7bn
												+21.0%
			67.2	69.3									40.5
										33.6	33.5
										29.0
		60.2					23.9	26.6
				50%	50%		21.2	22.4	28.8
	55.3				8.5	11.8		16.1
49.3			50%	48%	71%	71%	15.4	14.8		12.9	12.3	11.1	11.7
		Dec.14	Dec.15		Dec.16	Dec.17	Dec.18	Dic.19
		48%		67%
	48%	63%
	56%
48%						Guided Products		AuM à la carte
44%			19%	19%
36%
		20%	20%			Guided Products breakdown, bn
		21%
	24%
24%
											Core Series
					31%	31%		Total: 28.8
				32%			Insurance
		31%	30%
28%	28%
				1.3	5.7		Stars
								6.1	1.2		Advice
Dec.14	Dec.15	Dec.16	Dec.17	Dec.18	Dic.19	Jan.20				5.0		Plus
											Best in Class(1)
		AuM	AuC	Deposits			8.2	1.3
					Other(2)

AuC and Deposits under advisory have been reclassified within AuM in order to have a better representation of the advisory nature of Advice and

Plus services

15	(1) "Best in class" are a selection of advisory products and services based on: cost optimization, quality, sustainability and risk

1. Other includes: Core Funds, PIR and Core Pension, GP Private, FAM Evolutionstand-alone

Net sales breakdown

Solid high quality FY19 net sales growth on the wave of structural trends in place despite a complex environment. Asset mix returning into AuM with more conservative solutions

Breakdown of total Net Sales, bn		PFA Network - total Net Sales, bn

Guided			-6.1%						-6.1%
Products
+35.5%				5.8							5.1
2019/2018			6.2
			6.0						5.4	5.5
	5.5
							4.9
		5.0
			2.3	3.3				4.3
										2.3	3.3
4.0							3.6
2.7
	1.9	4.0					2.6		4.0
							1.9
3.1		0.3		1.8			3.0				1.3
0.9						0.7	0.2
		2.9	0.5		3.5					0.3		2.6
			2.1					2.2	1.9
	1.9						1.6
		1.5		0.3					0.4
1.2				0.9		1.1
								0.10.2
-0.2						0.20.2	-0.3
				-1.0	-0.1					-0.8	0.1
2014	2015	2016	2017	2018	2019	Jan.20	2014	2015	2016	2017	2018	2019	Jan.20
							2,533	2,622	2,628	2,607	2,578	2,541
		AuM	AuC	Deposits		PFA Network - headcount

16AuC and Deposits under advisory have been reclassified within AuM in order to have a better representation of the advisory nature of Advice and Plus services

Organic growth

Net sales organically generated confirmed as key in our strategy of growth

Net Sales, bn- Organic / Recruit, %

New recruits of the year

Organic

Total recruits(1)

Organic

4.0 5.5	5.0	6.0	6.2	5.8	4.0	5.5	5.0	6.0	6.2 5.8	Recruitment costs
	11%	11%	10%	7%	5%				14%	15%	9%	(to be amortized)
18%		26%	19%	19%
						stock 25.6mln
												as of Dec.'19

	89%	89%	90%	93%	95%			86%	85%	91%
82%		81%	81%
				74%

2014

2015

2016

2017

2018

2019

2014

2015

2016

2017

2018

2019

125 118 85 98 70 58

# of PFAs recruited in the period

17	(1)Total recruits include net inflows related to PFAs recruited over the last 24 months (avg)

Continuously increase of quality and productivity of the network

Total Assets per PFA

Eop, mln

+19.7%

+4.6%

TFA concentration per PFA

PFAs with TFA >20mln are 54% (+23%y/y)

and hold 81% of TFA(+11% y/y)

+18.0%

26.6

23.2

27.8

		-37
		2,541,
2,578	59.9bn	70.7bn
			1	1

14.815.7 +22.9%y/y

12.8

4.04.5 4.5

6.47.4 7.6

Dec.18 Sep.19 Dec.19

8.7	10.4	11.3	+30.6%
y/y

AUM Deposits

AUCGuided Products

> €35mln

€25-35mln

€20-25mln

€10-20mln

< €10mln

18%	25%
14%	54%	42%		52%
			17%
12%									81%
			13%				19%
32%				18%
			27%				12%
														11%
24%						21%
19%					15%
										6%
														4%
		Dec.18		Dec.19
			Dec.18	Dec.19
		PFAs					TFA

18

Clients' profile and focus on Private Banking

		Total Financial Assets per client
	Total TFA: 81.4bn
			o/w Private Banking(1): 33.4bn
	11.0%		7.4%			Average age:
>500k	10.5%				0.5-1mln
41.1%		8.1%		Total clients: 49
100-500k				1-5mln
			37.3%		Private clients: 62
50-100k						5-10mln
			47.3%
<50k	37.3%			>10mln
TFA Private Banking, eop bn	Avg TFA per Private client
	+29.5%			AuM	AuC	Deposits
	+4.8%				0.9mln
	31.9	33.4	33.9			17%
25.8
					26%	56%
Dec.18	Sep.19	Dec.19	Jan.19

1. Private Banking clients are clients with more than € 0.5mln TFA with the Bank

19

Agenda

Fineco Results

Next steps and developing opportunities

Key messages

Focus on product areas

20

2020 Guidance

Given current outlook(1), our assumptions for 2020,excluding revenues and costs related to UK business development, are:

• Net interest income:resilient and low risk thanks to the smooth run-off of our bond portfolio, positive effect from volumes (~2-2.5bn expected growth of deposits per year) and lending book (~1bn new production per year), benefit from ECB's tiering, no change in our investment policy with no increase in Fineco risk profile and a more dynamic management of our Treasury
• Investing:fees increasing low double digit with margins flat
• Brokerage: increasing by ~+15% y/y
• Banking:banking fees expected to increase by 10-20 mln
• Costs:around 5% yearly growth, slightly above the trend registered in the period between 2014 and 2018, due to temporary overlapping of costs following the internalization of some activities after the exit from UniCredit Group, extraordinary AGM for the Governance, increased number of Board members. Cost/Income continuously declining in the long run
• CET1: floor 17%
• Leverage Ratio:above 3.5%
• Cost of Risk: in the range between 10 and 15 basis points
• Net sales:robust, high quality net sales with a better asset mix

21

(1)Forward rate curve as of January 27th, 2020

Focus for a better quality business going forward

Our goal is to structurally improve the quality of our net sales and client base to:

• Increase, better quality recurring revenues:greater contribution from fees and trading profit from all business areas and a lower exposure to NII
• KeepBalance sheet growth under control

This is possible thanks to the industrial measures we are undertaking

1. Strong focusin the conversion ofcustomers' deposits towards AuM
2. Repositioning the brand to increase the quality of our client baseand furtheraccelerate the growth of high-end customers

22

Accelerating the conversion rate of customers' deposits towards AuM	1

Assisted Selling platform to further boost productivity for the Bank and PFAs

NEW

GENERATION OF PRODUCTS

NEW

SOFTWARE

DEVELOPMENT

New products with fully digital subscriptionwill be offered through our Assisted Selling platform:

• Decumulation products (FAM Target):for customers who want to progressively invest in multi-thematic/profile funds
• Insurance capital guarantee product:remunerated solution with a more flexible exit- window vs a traditional insurance product, suitable for customers with short-term horizon
• Newmulti-thematic funds (FAM Megatrends) to catch secular trends
• Pension fundswill be offered directly to customers in the coming months
• Coming soon new FAM solutions for volatile market:protection funds and income strategies

Fineco will take more directly the driving seat in helping PFAs to develop their customers more efficiently by further extracting value from Big Data Analytics:

• X-Net:continuous improvements of our PFAs' cyborg advisoryplatform, that will be further enhanced with tailor-made solutions to solve customers' financial gaps
• Co-Working:it will enable our PFAs to share customers(and related fees) with other colleagues and manage more actively a higher number of customers
• Fineco X.0: to further improve the effectiveness of our commercial strategyleveraging on our one single database, allowing the Bank to better target customerswith direct campaigns and to fully exploit the growth potential oflow-touchclients.

23

Delivering on industrial measures:

1

Strong acceleration in the conversion of customers' deposits into AUM

							Better quality net sales									Improving mix of TFA
bn			AUM			AUC			Deposits							bn			AUM			AUC		Deposits
														1.0									69.3			81.4	81.9
												49%	1.5	0.3
1.7				1.6
															48.3%	49.7%	49.9%
																67%
		40%			45%		124%	91%
			9%				56%
51%							33%		50%
									-1%												19.9%	18.8%	19.0%
															-17%
										-73%	-24%
		1Q19		2Q19	3Q19	4Q19	Jan.20				31.8%	31.4%	31.2%
												New initiatives are starting to pay:
																FY18			FY19	Jan.20
												-	New generation of products
												-	Increased PFA productivity

Focus on quality to improve revenues mix and slow down the growth of our Balance Sheet

24

Delivering on industrial measures:	1

Fineco Asset Management gaining commercial momentum

FAM contribution to Fineco's AuM Net Sales

bn			3.3
			1.9	52%
		1.4
		45%
0.7
24%				0.2
	4%					78%
	3M19	1H19	9M19	FY19	Jan.20

Fineco AUM net sales FAM retail net sales / Fineco AUM

FAM Growth potential

• FAM retail class 2019 Net Sales: 1.7bn
• FAM Evolution is the best seller product cluster, with net sales structurally towards retail classes
• Increasing penetration in Fineco's AuM net salesthanks to FAM ability to create modern and innovative multimanager solutions

bn

AuM Stock as of Jan.2020

	40.9
14.2
5.6
8.6	21%
AuM	AuM
FAM	Fineco

Institutional Classes Retail Classes % FAM retail classes / Fineco's AuM

FAM total assets as of Dec31st, 2019 were equal to 13.8 bn, of which 8.4 bn retail

• Room to increase FAM's penetration on Fineco Asset under Management stockenhancing the
  Bank's open architecture platform
• Coming soon new solutions suitable for volatile market: FAM will deliver new protection funds and income strategies

25

Delivering on industrial measures	2

Innovation key for our best-in-class Customer Experience

Improving an already best-in-class Customer Experience

97%	n.1	APP
BANK
	4.6
CUSTOMER	IN TERMS OF	+ 210,000 ratings
SATISFACTION (1)	REPUTATION(2)

Continuous upgrade of our banking platform

Brand new dashboard for credit and debit cards, which will also befully digitalized

€Payments:

• upgrade of mobile payment services
• Fineco Paypeer-to-peer: to send and receive money with no need of IBAN code (both on website and on app)

Renewal of our banking homepageboth on the website and on APP with real-time debit/credit data

Simplification of our onboarding processvia mobile by sending the PIN codes by real-time

Our Family Budget Planner, MoneyMap, further enhanced and for freefor all our clients

Further enlargement of our multicurrencybasket (CZK, DKK, HKD, HUF, NOK, NZD, PLN, SGD), which will be active 24/7

1. Source: Kantar Tri*M Index, December 2019
2. Source: Reputation Institute, December 2019

26

Preserving our best price/quality ratio	2
Where we stand after the Smart Repricing
Reasons behind our Smart			Competitive landscape (1)
Repricing

Cost/revenue imbalance of the current account service due to:

• further reduction in interest rateswhich are estimated to remain negative for longer than originally expected
• increased contribution for systemic charges

Other evidences

• Improve the asset mixand furtherslow down the growth of our Balance Sheet
• Rebalance our revenues mix

An overview on clients reaction

• 2020 expected current accounts closures due to repricing:50-60k
• Clientsclosing their current accounts were low value and with few TFAs
• Going forwardwe expect a lower number of new clients but with higher quality

€			Online			Branch										€ 76 avg						€ 121 avg
															online costs	branch costs
						Webank	0
						0
					IWBank (IWConto)		4																									89
			Widiba(Conto PLUS)			20
				ING(Conto Arancio)			24
						Fineco			25
Poste Italiane(BancoPosta Premium)				30
			B.Generali (BG Deluxe)					47										59
			Credit Agricole (Smart)						56																				91
			HelloBank!(Hello! Money)							58
					CheBanca (Yellow)							60
			Banca Sella (Websella)									73																													161
	Banco BPM(YouWelcome NEW)									74																					98
					B.Mps(Mio Plus)									81																			93
					BPER(Ondemand)											110																141
						BNL(X-Smart)										122																	184
					UBI Banca (Qubì)										129															152
			Deutsche Bank (Smart New)															138																	173
			UniCredit (MyGenius Silver)										142												252
						B.Mediolanum											146
			Intesa SanPaolo (Xme)												190								205

27	(1)	Most convenient current accounts. Source: Figures based on publicly available costs for families with average online operations of the main
Italian banks (ICC - Indicatore Complessivo dei Costi). The figures relates to the costs of current accounts reported in brackets.

Delivering on industrial measures	2

Improving quality of our clients

Total Financial Assets per client

Figures as of Dec.19Total TFA: 81.4bn

o/w Private Banking: 33.4bn

>500k 100-500k

50-100k <50k

	11.0%
			7.4%
10.5%
	41.1%	8.1%
			37.3%

37.3%	47.3%

Average age:

0.5-1mln

1-5mln	Total clients: 49
5-10mln	Private clients: 62
>10mln

Outperforming in Private Banking growth

€ bn, TFA

AIPB

FinecoBank

AIPB

(1)

(2)

"Modelli Misti"

+29%

+12%

+12%

+23%

869

425

778

380

33

34

32

26

Dec.18

Sep.19

Dec.19

Jan.19

Dec.18

Sep.19

Dec.18

Sep.19

1. AIPB (Associazione Italiana Private Banking) figures as of Sept19
2. "Modelli Misti" include the following players: Allianz Financial Advisors, Banca Euromobiliare, Banca Generali PB, Banca Mediolanum,

28Banca Patrimoni Sella, CheBanca!, Deutsche Bank, Fideuram ISPB, Fineco

Brokerage: an effective and timely reshape of our offer

In 1H19 our Brokerage business suffered effects coming from the persistently low market volatilityand the introduction of ESMA regulationin place starting from July 2018. The business has been completely reshaped.

• New optionsallowing customers to exploit volatility also when it is low
• Optimization of our systematic internalizerwith new products
• Repricing of our Forexand24h brokerage platform
• Coming soon: Asian markets, CFD on cryptocurrencies, further enlargement of our multicurrency basket, in depth review of our professional platform

• 4Q19 Brokerage best quarter since
  2Q18
• 2019 revenues fully recovered and are flat y/y(+15% 2H19 vs 1H19 and +19% 2H19 vs 2H18)

No.1 Brokerage Platform, multichannel

and fully integrated

• Well advancedin-houseknow-how,optimizing time-to- market and cost efficiency
• In-houseback-officeand customer care.Business continuity always guaranteed
• Order internalization supporting Brokerage performance:equity, bonds and forex
• Robust risk management, mostly intra-day positions with low risk light traders

Well-diversified

among products…	…and geographies
Funds			Other markets
Forex / CFD		Italy
	6%				26%
Derivatives 15%	11%		61%
				65%		12%
	3%			US
Bonds

Equity

29

Fineco UK

UK Italian Other

Almost 6,500 clients (1)	New clients acquired (2)
	31%	21%
54%	69%	18%	60%	82%
non-Italian	non-Italian
	15%

• Unique positioningin a highly fragmented market, leveraging on our one-stopsolution platform
• Outstanding Multicurrency offer, also used for trading
• Investing platform constantly updated, with M&G Investments and Columbia Threadneedle already live. We also launched Fineco Asset Management funds, giving access to sub-adviced funds of 8 different asset managers through FAM Series
• Annual cost of the investing platform: 25 bps
• Branch:We notified UK Regulators our intention to open a commercial branch in UK. This has no requirements of capital and no costs attached. It will allow us to offer ISA, SIPP and Faster Payments
• In the coming weekswe will start our marketing campaign.The first move will leverage on our best-in-class brokerage offer
• We will givemore details on our UK plans by the end of 1Q20

30	(1)	Number of clients as of Dec 31st, 2019
(2)	New clients acquired from October 1st, 2019 until December 31st, 2019

Agenda

Fineco Results

Next steps and developing opportunities

Key messages

Focus on product areas

31

3 Pillars: Efficiency, Innovation and Transparency

The keys of our strategy, still leading our sustainable growth

EFFICIENCY	INNOVATION	TRANSPARENCY
Strong focus on IT & Operations,	Anticipate new needs	Fairness and Respect
more flexibility, less costs	simplifying customers' life	for all our stakeholders

We built everything from scratch

Freedom:Freedom to start over «from scratch», build a new bank, the best you can imagine

Proprietaryback-end:In-house development and automated processes allow an efficient cost structure and fast time to market

Excellent offer:Unique customer user experience, top quality in all services

We were true pioneers

Fineco anticipated a main market trend: digitalization

Moving customer's focus from proximity to service and quality

We believe in a "Quality" One Stop Solution

Providing all services in a single account is a distinctive feature but it's not enough.

Gaining a competitive edge requires high quality on each single service and product

32

Healthy and sustainable growth with a long term horizon

Highly scalable operating platform…

	2014	2015	2016	2017	2018	2019	CAGR(2014-2019)
					69	81	+ 11%
				67
			60		1,358	+ 7%
				1,278
		55		1,200
TFA (bn)	49	1,118
1,048		254	281	+ 13%
			226
	964
Clients (thd, #)
197	208			658	+ 8%
			628
Net profit (1)(mln)	155		587
	544
Revenues (2)(mln)	451	544				250	+ 3%
			244
		233	226	233
Costs (mln)	212
Cost/ Income (2)(%)	47	43	42
		40			-9 p.p.
			39	38

…with a diversified revenues mix leading consistent results in every market conditions

Net Profit adjusted (net of DGS)(1), mln

CAGR

+11.9%

37.3 40.1 36.4 40.847.8 45.9 55.1 47.7 51.2 49.8 52.0 54.8 51.7 52.6 61.0 60.4 59.0 66.2 63.2 65.6 62.6 74.7 72.5 71.1

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19

(1)Net Profit adjusted net of Deposit Guarantee Scheme (FY15: -3.1mln net, FY16: -7.1mln net, FY17: -7.1mln net, FY18: -9.6mln net, FY19: -12.1 mln net)

33

Safe Balance Sheet: simple, highly liquid and low risk asset side, valuable and sticky deposits

Diversified investment portfolio

• Investment strategy announced during FY17 results:UC bonds run-offs, blend of European government bonds diversified across countries
• 99% not exposed to volatility: HTC classification since November 2016

High-quality lending growth

Lending offered exclusively to our

well-known base of clients

• Low-risk:CoR at 12bps, cautious approach on mortgages (LTV 53%, avg maturity 19 yrs)
• Strong competitive advantage leveraging on Big Data Analytics and continuous innovation(i.e. look-through implementation with significant benefits on CET1 ratio)

28.0 bn

22.3
	25.9
3.7
0.7 1.3	1.4 0.7
Assets	Liabilities

High-value deposit base

• Sticky deposits:mostly 'transactional liquidity' gathered without aggressive commercial offers
• Growth based on quality of services.Cost of funding close to zero
• +10% CAGR sight deposits growth in the last 10 years,strong resilience during periods of stress/crisis

Rock - solid capital position

CET1	18.1%	LCR	~1000%
TCR	33.7%	NSFR(2)	253%
	LEVERAGE RATIO	3.85%

Financial Assets Customer loans Due from Banks(1)Other

Customer deposits Other liabilities Equity

1. Due from banks includes 0.8bn cash deposited at Bank of Italy as of Dec.19

34(2)NSFR as of Sept.19

Total assets: 99% not exposed to volatility

Out of 28.0bn, only 0.3bn of Assets valuated at fair value with limited impacts on Equity reserve

Total Assets, eop bn

Gov. Bonds at fair value		Covered bonds		Due from banks(1)		Other(2)
Other Bonds at amortized costs		UC bonds		Customer loans

28.0
0.3	o/w Italy HTCS 0.2bn	o/w Total non UCG Bonds:
	14.7 bn(3)
			Spain
13.7	Italy		4.0
	5.3
	Financial investments
	at amortized costs (HTC)
0.6			1.2	SSA
7.5		2.6	0.7 0.8
	Ireland
		Other (4)	France
1.3
3.7	Massivede-riskingof the Balance Sheet
0.9	thanks to thefull collateralization of UC bonds (May 10th, 2019)
Dec.19

1. Due from banks includes 0.8bn cash and 0.3 bn compulsory reserves deposited at Bank of Italy as of Dec. 2019
2. Other refers to tangible and intangible assets, derivatives and other assets
3. 14.7bn equal to 13.9bn nominal value, o/w Italy 5.0 bn nominal value
4. Other : US, Austria, Belgium, Germany, Poland, Portugal, United Kingdom; Covered Bonds

35

Sustainability at the heart of Fineco's business model

Embedding ESG in our Bank's Governance

Our sustainable growth strategy is inspired by principles of the most relevant international organisations, consistent with the achievements of the 17 Sustainable Development Goals(SDGs) of the UN 2030 Agenda.

Appointments and Sustainability Committeeestablished to supervise the Bank's sustainable growth strategy and ESG plans, together with a Sustainability Management Committee

Materiality Matrixdefined, to determine the relevant topics for Fineco and its Stakeholders on which Fineco has based its first Non Financial Statement

Our Standard Ethics Rating(1)at "EE"was confirmed in 2019, a grade given to sustainable companies with low reputational risk profile and strong prospects for long-term growth. In 2019 Standard Ethics also assigned us an ESG Award

MSCI has upgraded FinecoBank's rating at "A" from "BBB"

Continuously updating our ESG offer

Around 40% of funds with a rating Morningstar equal to "high", "above average" and "average" FAM Megatrends launched in July 2019

ESG model portfolios launched within our Advice Platform

Green mortgagesfor the purchase of real estate with energy rating between A and B Green and Social Bondsare included in our covered bonds portfolio

1. Standard Ethics is an independent agency which assigns Solicited Sustainability Ratings to companies and sovereign issuers. Fineco is included in the Standard Ethics Italian Banks Index© and in the Standard Ethics Italian Index, among the major environmental, social and governance performance indices and benchmarks.
   The Standard Ethics Rating is an assessment of sustainability and governance based on the principles and voluntary directions of the United Nations, the Organization for Economic Cooperation and Development (OECD) and the European Union.

36(2)Morningstar ESG rating above «Average»

Agenda

Fineco Results

Next steps and developing opportunities

Key messages

Focus on product areas

37

Revenues by Product Area

Well diversified stream of revenues allow the bank to successfully face any market environment

Banking, mln	45%

	-1.2%		+1.8%
	-0.3%	286.7	291.7
73.4	72.7	72.5
4Q18	3Q19	4Q19	FY18	FY19

	Brokerage, mln		20%
			+0.1%
	+11.0%		132.5	132.6
	+3.0%
32.4	34.9	35.9
4Q18	3Q19	4Q19	FY18	FY19

	Investing, mln		35%
		FY19
		Management
		fees	+9.8%
	-1.5%	+11.7% y/y
	+0.8%	208.5	228.9
59.7	58.3	58.8
4Q18	3Q19	4Q19	FY18	FY19

FY9 weight on total revenues for each product area

Managerial Data. Revenues attributable to single each product area, generated by products / services offered to customers according to the link between products and product area. Banking includes revenues generated by direct deposits and credit products. Investing

38includes revenues generated by asset under management products; Brokerage includes revenues from trading activity.

2018 Revenues recasted for trading profit related to Multicurrency (moved from Banking to Brokerage).

Banking

Sound performance driven by strong volume growth and relentless clients' acquisition, thanks to high quality services and best-in-class customer satisfaction

Revenues

Sight deposits

mln	Net Interest			Trading income
	Fees and commissions	Other
							+1.8%
		-1.2%				291.7
			-0.3%
	73.4			286.7 270.3
	72.7	72.5	268.1

68.0 67.0 66.9

21.3

18.1

5.5	5.9	5.3
0.0 0.0	0.1	0.1	0.2	0.4 0.2	0.4
		-0.2
-0.2
4Q18	3Q19	4Q19	FY18	FY19

Eop, bn

+16.0%

+2.0%

22.125.1 25.6

Dec.18 Sep.19 Dec.19

Clients and new clients

thd, ## of new clients

+6.3%

+1.5%

1,278

1,338

1,358

1,361

Dec.18

Sep.19

Dec.19

Jan.20

112

87

118

8

39

Managerial Data

2018 Revenues recasted for trading profit related to Multicurrency (moved from Banking to Brokerage).

Brokerage

Revamped Brokerage thanks to review of the offer. Growing market share in Italy and continuous enlargement of product offer

Revenues	Executed orders

mln	Net Interest	Trading profit		mln
	Fees and commissions	+0.1%		+10.0%		-2.2%
	2H19 vs 1H19: +14.7%	132.5	132.6		+4.3%	25.9	25.3
	2H19 vs 2H18: +18.6%	13.0	14.0	6.2	6.6	6.8
				4Q18	3Q19	4Q19	FY18	FY19
	+11.0%	74.7				Volatility (1)
	+3.0%	77.3

32.4	34.9	35.9
				3.4
	3.4
	3.6						44.8
		20.0	20.8	41.3
18.2
10.6	11.5	11.7
4Q18	3Q19	4Q19	FY18	FY19

• FY19 affected by low volatility.We are further diversifying our offer and continuously enlarging our products offerto well- balance the effect coming from new ESMA regulation, in place since July 2018
• Structural improvementthanks to larger base of clients/higher market share and the enlargement of the products offer
• Continuously increasing market share(i.e. market share on equity traded volumes in Italy at 27.0% in Dec.19(2), +2.3p.p. vs Dec.18) confirming Fineco as leader in brokerage

Managerial Data

2018 Revenues recasted for trading profit related to Multicurrency (moved from Banking to Brokerage).

40	(1)Volatility calculated as avg weekly volatility of BUND, BTP, SP, EUROSTOXX, MINIDAX, DAX, FIB, MINIFIB, NASDAQ, DOW weighted on
volumes related to futures traded by our clients

1. Assosim

Investing

Successful strategy based on our cyborg advisory approach drove a better asset mix and increasing fees y/y. Very limited upfront fees representing only 2% of investing fees

Revenues (Net fees)		Assets under Management

mln
Upfront fees	Management fees	Other(1)
			FY19
			Management	+9.4%
			fees
			+11.7 y/y
					226.2
				206.8	5.4
				7.8
	-3.3%
		-3.8%		241.3
				216.0
58.0		58.3	56.1
1.4		1.1	1.8
57.0		61.5	63.0
-0.4		-4.3	-8.7	-17.1	-20.5
4Q18	3Q19	4Q19	FY18	FY19

eop, bn

		+21.0%
			+5.7%
33.5	36.0	36.8	38.3	40.5
Dec.18	Mar.19	Jun.19	Sep.19	Dec.19

Guided products on total AuM

%

+4.3 p.p.

+1.4 p.p.

67%	68%	69%	70%	71%
Dec.18	Mar.19	Jun.19	Sep.19	Dec.19

Managerial Data

AuC and Deposits under advisory have been reclassified within AuM in order to have a better representation of the advisory nature of Advice and Plus services

41

(1)Mainly PFAs annual bonus and new 2018-2020 LTI to PFAs starting from 1Q18

Annex

42

P&L

mln	1Q18	2Q18	3Q18	4Q18		FY18		1Q19	2Q19	3Q19	4Q19		FY19
Net interest income	68.9	68.7	69.9	71.1	278.7	70.4	71.4	69.8	69.7	281.3
Net commissions	71.5	74.5	72.7	81.8	300.4	77.4	81.3	84.3	82.3	325.2
Trading profit	14.5	13.1	10.7	5.9	44.3	9.8	8.0	11.6	15.3	44.8
Other expenses/income	0.5	0.1	-0.4	1.7	1.9	0.2	0.3	0.1	2.9	3.6
Total revenues	155.4	156.4	153.0	160.4		625.3		157.7	161.1	165.8	170.2		654.8
Staff expenses	-20.5	-21.0	-23.2	-21.9	-86.6	-21.7	-22.4	-22.5	-23.6	-90.2
Other admin.exp. net of recoveries	-40.8	-37.5	-34.1	-36.3	-148.7	-38.5	-34.4	-29.4	-34.3	-136.6
D&A	-2.3	-2.5	-2.5	-3.1	-10.4	-5.1	-5.4	-5.8	-6.6	-22.9
Operating expenses	-63.6	-61.0	-59.7	-61.4	-245.8	-65.3	-62.3	-57.6	-64.4	-249.6
Gross operating profit	91.8	95.4	93.3	99.1		379.5		92.5	98.8	108.2	105.8		405.2
Provisions	-1.8	-1.9	-15.9	-1.8	-21.4	-1.0	-2.9	-19.8	-3.5	-27.2
LLP	-1.3	0.2	-0.9	-2.3	-4.4	-1.3	1.1	-1.2	-0.6	-2.0
Integration costs	0.0	0.0	0.0	-0.1	-0.1	0.0	0.0	0.0	0.0	0.0
Profit from investments	0.0	5.2	-0.9	-3.2	1.1	-0.7	6.5	0.4	1.1	7.4
Profit before taxes	88.7	98.8	75.6	91.7		354.8		89.5	103.5	87.6	102.8		383.5
Income taxes	-29.7	-32.6	-23.0	-28.2	-113.5	-27.3	-31.7	-26.6	-9.6	-95.1
Net profit for the period	59.0	66.2	52.6	63.5		241.2		62.3	71.8	61.0	93.2		288.4
Net profit adjusted (1)	59.0	66.2	53.6	65.6		244.4		62.6	74.7	60.8	70.7		268.8
Non recurring items (mln, gross)	1Q18	2Q18	3Q18	4Q18		FY18		1Q19	2Q19	3Q19	4Q19		FY19
Extraord systemic charges (Trading Profit) (2)	0.0	0.0	0.0	-3.0	-3.0	-0.4	-4.3	0.4	1.4	-3.0
Integration costs	0.0	0.0	0.0	-0.1	-0.1	0.0	0.0	0.0	0.0	0.0
Severance	0.0	0.0	-1.6	0.0	-1.6	0.0	0.0			0.0
Patent Box	0.0	0.0	0.0	0.0			0.0	0.0	0.0	21.6	21.6
Total	0.0	0.0	-1.6	-3.1		-4.8		-0.4	-4.3	0.4	23.0		18.6

	(1)	Net of non recurring items
43	(2)	Voluntary Scheme valuation

P&L net of non recurring items

mln		1Q18	2Q18	3Q18	4Q18	FY18	1Q19	2Q19	3Q19	4Q19	FY19
	Adj.	(1)	Adj.	(1)	Adj.	(1)	Adj.	(1)	Adj.	(1)	Adj.	(1)	Adj. (1)	Adj. (1)
Net interest income		68.9	68.7	69.9	71.1	278.7	70.4	71.4	69.8	69.7	281.3
Net commissions		71.5	74.5	72.7	81.8	300.4	77.4	81.3	84.3	82.3	325.2
Trading profit		14.5	13.1	10.7	8.9	47.3	10.3	12.3	11.2	13.9	47.7
Other expenses/income	0.5	0.1	-0.4	1.7	1.9	0.2	0.3	0.1	2.9	3.6
Total revenues		155.4	156.4	153.0	163.5	628.3	158.2	165.4	165.4	168.8	657.8
Staff expenses		-20.5	-21.0	-21.6	-21.9	-85.0	-21.7	-22.4	-22.5	-23.6	-90.2
Other admin.expenses	-40.8	-37.5	-34.1	-36.3	-148.7	-38.5	-34.4	-29.4	-34.3	-136.6
D&A		-2.3	-2.5	-2.5	-3.1	-10.4	-5.1	-5.4	-5.8	-6.6	-22.9
Operating expenses	-63.6	-61.0	-58.1	-61.4	-244.1	-65.3	-62.3	-57.6	-64.4	-249.6
Gross operating profit	91.8	95.4	94.9	102.1	384.2	92.9	103.1	107.8	104.4	408.2
Provisions		-1.8	-1.9	-15.9	-1.8	-21.4	-1.0	-2.9	-19.8	-3.5	-27.2
LLP		-1.3	0.2	-0.9	-2.3	-4.4	-1.3	1.1	-1.2	-0.6	-2.0
Profit from investments	0.0	5.2	-0.9	-3.2	1.1	-0.7	6.5	0.4	1.1	7.4
Profit before taxes		88.7	98.8	77.2	94.8	359.5	90.0	107.8	87.2	101.4	386.4
Income taxes		-29.7	-32.6	-23.5	-29.2	-115.1	-27.4	-33.1	-26.4	-30.7	-117.7
Net profit adjusted	(1)	59.0	66.2	53.6	65.6	244.4	62.6	74.7	60.8	70.7	268.8

(1)Net of non recurring items (see page 43 for details)

44

FY19 P&L FinecoBank and Fineco Asset Management

mln		Fineco Asset		FinecoBank			FinecoBank
	Management			Individual			Consolidated
Net interest income		-0.1			281.4		281.3
Dividends		0.0			48.3		0.0
Net commissions		62.5			262.7		325.2
Trading profit		0.2			44.6		44.8
Other expenses/income		2.7			1.0		3.6
Total revenues		65.2			638.0			654.8
Staff expenses		-4.1			-86.1		-90.2
Other admin.exp. net of recoveries		-2.9			-133.8		-136.6
D&A		-0.2			-22.6		-22.9
Operating expenses		-7.2			-242.5		-249.6
Gross operating profit		58.1			395.5			405.2
Provisions		0.0			-27.2		-27.2
LLP		0.0			-2.0		-2.0
Profit on Investments		0.0			7.4		7.4
Profit before taxes		58.1			373.7			383.5
Income taxes		-7.3			-87.8		-95.1
Net profit for the period		50.8			285.9			288.4

45

Details on Net Interest Income

mln	1Q18	Volumes &	2Q18	Volumes &	3Q18	Volumes &	4Q18	Volumes &		1Q19	Volumes &	2Q19	Volumes &	3Q19	Volumes &	4Q19	Volumes &		FY18	Volumes &	FY19	Volumes &
		Margins		Margins		Margins		Margins			Margins		Margins		Margins		Margins			Margins		Margins
Financial Investments	56.9	18,449	57.5	18,887	57.1	18,817	57.7	19,133	57.1	19,748	58.0	20,582	55.9	21,714	56.0	22,114	229.2	18,822	227.0	21,040
Net Margin		1.25%		1.22%		1.20%		1.20%			1.17%		1.13%		1.02%		1.01%			1.22%		1.08%
Gross margin	58.6	1.29%	59.8	1.27%	59.3	1.25%	60.1	1.25%	59.7	1.23%	60.4	1.18%	58.5	1.07%	57.7	1.04%	237.8	1.26%	236.3	1.12%
Security Lending	0.2	804	0.2	726	0.2	753	0.4	743	0.6	836	0.4	386	0.0	0	0.3	307	1.1	756	1.4	382
Net Margin		0.11%		0.10%		0.12%		0.24%			0.32%		0.44%		0.00%		0.44%			0.14%		0.37%
Leverage - Long	2.7	182	2.7	181	3.0	196	3.0	150	2.7	129	3.2	153	3.3	157	3.3	154	11.5	178	12.4	148
Net Margin		6.06%		6.03%		6.11%		7.95%			8.45%		8.35%		8.38%		8.38%			6.47%		8.39%
Lending	9.2	1,854	9.5	2,080	9.9	2,316	10.3	2,472	10.5	2,611	10.8	2,754	11.1	2,912	10.9	3,050	38.8	2,180	43.3	2,832
Net Margin		2.01%		1.84%		1.69%		1.65%			1.62%		1.58%		1.51%		1.42%			1.78%		1.53%
o/w Current accounts	2.4	684	2.6	788	2.8	891	3.0	970	2.9	1,040	3.2	1,112	3.2	1,169	3.4	1,241	10.8	833	12.7	1,141
Net Margin		1.43%		1.33%		1.23%		1.21%			1.14%		1.14%		1.10%		1.07%			1.29%		1.11%
o/w Cards	1.2	240	1.2	232	1.2	252	1.2	251	1.2	245	1.2	252	1.2	282	1.2	265	4.8	244	4.9	261
Net Margin		2.00%		2.05%		1.93%		1.97%			2.00%		1.92%		1.74%		1.87%			1.99%		1.88%
o/w Personal loans	4.3	370	4.4	394	4.4	411	4.5	427	4.6	441	4.6	448	4.6	457	4.5	459	17.6	400	18.3	451
Net Margin		4.67%		4.45%		4.29%		4.18%			4.20%		4.09%		3.98%		3.92%			4.39%		4.05%
o/w Mortgages	1.3	560	1.4	666	1.4	763	1.6	824	1.8	886	1.9	942	2.0	1,005	1.8	1,084	5.7	703	7.4	979
Net Margin		0.96%		0.81%		0.75%		0.75%			0.80%		0.82%		0.79%		0.64%			0.81%		0.76%
Other (1)	-0.1		-1.2		-0.3		-0.3		-0.5		-1.0		-0.4		-0.8		-1.9		-2.8
Total	68.9		68.7		69.9		71.1			70.4		71.4		69.8		69.7			278.7		281.3
Gross Margin		1.33%		1.31%		1.29%		1.29%			1.26%		1.25%		1.17%		1.11%			1.30%		1.20%
Cost of Deposits		-0.03%		-0.04%		-0.04%		-0.04%			-0.05%		-0.04%		-0.04%		-0.03%			-0.04%		-0.04%

	Volumes and margins: average of the period
	Net margin calculated on real interest income and expenses
46	2019 quarterly figures have been reclassified due to a managerial recast
(1)Other includes mainly marketing costs

UniCredit bonds underwritten

	ISIN	Currency Amount (€ m)	Maturity	Indexation	Spread
1	IT0005010324	Euro	382.5	13-Jan-20	Euribor 1m	2.44%
2	IT0005010365	Euro	382.5	10-Apr-20	Euribor 1m	2.47%
3	IT0005010308	Euro	382.5	9-Jul-20	Euribor 1m	2.49%
4	IT0005010381	Euro	382.5	7-Oct-20	Euribor 1m	2.52%
5	IT0005010332	Euro	382.5	6-Jan-21	Euribor 1m	2.54%
6	IT0005010316	Euro	382.5	6-Apr-21	Euribor 1m	2.56%
7	IT0005010340	Euro	382.5	5-Jul-21	Euribor 1m	2.58%
8	IT0005010225	Euro	382.5	18-Oct-21	Euribor 1m	2.60%
9	IT0005040099	Euro	100.0	24-Jan-22	Euribor 1m	1.46%
10	IT0005057994	Euro	200.0	11-Apr-22	Euribor 1m	1.43%
11	IT0005083743	Euro	300.0	28-Jan-22	Euribor 1m	1.25%
12	IT0005106189	Euro	230.0	20-Apr-20	Euribor 1m	0.90%
13	IT0005114688	Euro	180.0	19-May-22	Euribor 1m	1.19%
14	IT0005120347	Euro	700.0	27-Jun-22	Euribor 1m	1.58%
15	IT0005144065	Euro	450.0	14-Nov-22	Euribor 3m	1.40%
16	IT0005144073	Euro	350.0	15-Nov-21	Euribor 3m	1.29%
17	IT0005158412	Euro	250.0	23-Dec-22	Euribor 3m	1.47%
18	IT0005163180	Euro	600.0	11-Feb-23	Euribor 3m	1.97%
19	IT0005175135	Euro	100.0	24-Mar-23	Euribor 3m	1.58%
20	IT0005217606	Euro	350.0	11-Oct-23	Euribor 3m	1.65%
21	IT0005241317	Euro	622.5	2-Feb-24	Euribor 3m	1.52%
	Total	Euro	7,492.5		Euribor 1m	1.94%

1. In order to calculate an average spread on Eur1m, a basis swap of 0.05% is considered

47

Details on Net Commissions

mln	1Q18	2Q18	3Q18	4Q18		1Q19	2Q19	3Q19	4Q19		FY18	FY19
Brokerage	20.6	20.1	15.8	18.2	18.5	18.0	20.0	20.8	74.7	77.3
o/w
Equity	17.5	16.4	13.1	14.9	15.6	14.7	15.9	17.0	61.8	63.2
Bond	0.8	1.2	0.6	0.9	0.9	0.9	1.4	0.7	3.6	3.9
Derivatives	2.5	2.7	2.2	2.9	2.3	2.2	2.7	2.6	10.2	9.7
Other commissions(1)	-0.1	-0.2	-0.1	-0.5	-0.2	0.2	0.0	0.6	-0.9	0.5

Investing	47.1	49.5	52.2	58.0	54.2	57.6	58.3	56.1	206.8	226.2
o/w
Placement fees	2.5	2.4	1.4	1.4	1.1	1.3	1.1	1.8	7.8	5.4
Management fees	50.2	53.9	54.9	57.0	57.1	59.7	61.5	63.0	216.0	241.3
to PFA's: incentives	-4.8	-5.8	-3.1	-0.4	-3.0	-4.3	-3.6	-8.0	-14.1	-18.9
to PFA's: LTI	-0.9	-1.1	-1.0	0.0	-1.0	0.8	-0.7	-0.7	-2.9	-1.6
Banking	3.4	4.7	4.5	5.5	4.5	5.6	5.9	5.3	18.1	21.3
Other	0.3	0.3	0.2	0.2	0.1	0.1	0.1	0.1	0.9	0.4
Total	71.5	74.5	72.7	81.8		77.4	81.3	84.3	82.3		300.4	325.2

(1)Other commissions include security lending and other PFA commissions related to AuC

48

Revenues breakdown by Product Area

mln	1Q18	2Q18	3Q18	4Q18		1Q19	2Q19	3Q19	4Q19		FY18	FY19
Net interest income	66.1	67.1	67.0	68.0	67.6	68.8	67.0	66.9	268.1	270.3
Net commissions	3.4	4.7	4.5	5.5	4.5	5.6	5.9	5.3	18.1	21.3
Trading profit	0.0	0.1	0.1	0.0	-0.1	-0.1	-0.2	0.2	0.2	-0.2
Other	0.1	0.2	0.1	0.0	0.1	0.1	0.1	0.1	0.4	0.4
Total Banking	69.6	72.0	71.6	73.4		72.1	74.3	72.7	72.5		286.7	291.7
Net interest income	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Net commissions	47.1	49.5	52.2	58.0	54.2	57.6	58.3	56.1	206.8	226.2
Trading profit	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Other	0.0	0.0	0.0	1.7	0.0	0.0	0.0	2.7	1.7	2.7
Total Investing	47.1	49.5	52.2	59.7		54.2	57.6	58.3	58.8		208.5	228.9
Net interest income	3.0	3.0	3.3	3.6	3.4	3.7	3.4	3.4	13.0	14.0
Net commissions	20.6	20.1	15.8	18.2	18.5	18.0	20.0	20.8	74.7	77.3
Trading profit	13.8	12.2	8.2	10.6	8.2	9.9	11.5	11.7	44.8	41.3
Other	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Total Brokerage	37.5	35.3	27.3	32.4		30.2	31.6	34.9	35.9		132.5	132.6

Managerial Data

Please note that, starting from December 31st, 2019, "Trading profit" also includes dividends and similar revenues on equity investments held at fair value in the item "Dividend income and similar revenue", previously included in the item "Dividends and other income from equity investments" in the reclassified income statement. 2018 figures were also reclassified.

49

IFRS 9 P&L impacts

mln	1Q18	2Q18	3Q18	4Q18		1Q19	2Q19	3Q19	4Q19		FY18	FY19
Trading Profit	0.6	0.9	0.9	-3.8	0.8	-3.6	0.6	1.9	-1.4	-0.4
Visa	0.6	0.9	0.9	-0.7	1.2	0.7	0.2	0.4	1.6	2.6
Voluntary Scheme	0.0	0.0	0.0	-3.0	-0.4	-4.3	0.4	1.4	-3.0	-3.0
Loan Loss Provisions	-0.4	2.4	-0.4	-0.6	-1.0	3.1	-0.0	0.0	1.0	2.1
Profit on Investments	0.0	5.3	-0.9	-3.1	-0.7	6.5	0.4	1.1	1.3	7.4
Govies	-0.2	-0.2	-0.1	-0.8	0.2	-0.8	-0.1	1.1	-1.3	0.4
UC Bonds	0.2	5.5	-0.8	-2.3	-0.8	7.3	0.5	-0.0	2.6	7.0
Total impacts from IFRS 9	0.2	8.6	-0.4	-7.5		-0.9	5.9	1.1	3.0		0.8	9.2

Accounting standard IFRS 9, starting from January 1st, 2018, introduced a new impairment accounting model for credit exposures and resulted in an extension of the Bank's scope of recognition.

In detail, P&L IFRS 9 impacted:

• Trading Profit: impacts from VISA and Voluntary Scheme valuation
• Loan Loss Provisions: impacts from deposits with UniCredit
• Profit on Investments: valuation on UniCredit Bonds and Government Bonds

50

IFRS 16 impacts

mln	1Q18	2Q18	3Q18	4Q18		1Q19	2Q19	3Q19	4Q19		FY18	FY19
Net interest Income					-0.2	-0.2	-0.2	-0.3			-1.0
Other Administrative Expenses	-3.3	-3.2	-3.3	-3.5						-13.3
Leasing Reggio Emilia offices and financial shops (1)	-2.5	-2.5	-2.5	-2.6						-10.0
Leasing Milano headquarter	-0.8	-0.8	-0.8	-0.9						-3.3
Write-down/backs and depreciation					-2.2	-2.3	-2.3	-2.6			-9.5
Leasing Reggio Emilia offices and financial shops					-2.2	-2.3	-2.3	-2.6			-9.5

Accounting standard IFRS 16, starting from January 1st, 2019, replaced the previous set of international accounting principles and interpretations on leasing and in particular IAS17, so comparison with 2018 is not significant.

In detail, P&L IFRS 16 impacted:

1. • Net Interest Income: the application of the new accounting standard envisages an impact on NII of -1.0mln following the discounting of the liabilities linked to leasing
   • Write-down/backsand depreciation: rents previously accounted in Other Administrative Expenses, following the application of the new accounting standards are now booked in Write-down/backs and Depreciation
2. 2018 figures relating to Leasing of Reggio Emilia offices and financial shops have been reclassified due to a managerial recast

51

Breakdown Total Financial Assets

mln	Mar.18	Jun.18	Sep.18	Dec.18		Mar.19	Jun.19	Sep.19	Dec.19
AUM	33,536	34,496	34,930	33,485	35,988	36,819	38,325	40,505
o/w Funds and Sicav	26,666	26,809	26,795	24,853	26,361	26,426	27,477	28,786
o/w Insurance	6,395	7,043	7,355	7,618	8,401	9,002	9,369	10,115
o/w GPM	1	1	1	1	1	26	55	93
o/w AuC + deposits under advisory	475	643	779	1,012	1,225	1,365	1,425	1,512
o/w in Advice	475	477	494	535	572	600	603	598
o/w in Plus	0	166	285	477	653	765	822	914
AUC	13,890	14,366	14,395	13,779	15,187	15,229	15,158	15,324
o/w Equity	8,573	8,736	8,846	8,007	9,137	9,207	9,573	9,841
o/w Bond	5,298	5,613	5,534	5,759	6,037	6,011	5,575	5,448
o/w Other	20	18	15	13	13	12	11	35
Direct Deposits	20,624	20,968	21,536	22,069	22,941	23,844	25,099	25,590
o/w Sight	20,616	20,962	21,532	22,066	22,938	23,842	25,098	25,588
o/w Term	7	6	4	3	2	2	2	1
Total	68,050	69,830	70,861	69,333		74,116	75,892	78,583	81,419
o/w Guided Products & Services	21,425	22,199	22,879	22,370		24,301	25,354	26,697	28,788
o/w TFA Private Banking	26,109	26,992	27,474	25,830		29,041	29,970	31,891	33,437

AuC and Deposits under advisory have been reclassified within AuM in order to have a better representation of the advisory nature of Advice and Plus services

52

Balance Sheet

mln	Mar.18	Jun.18	Sep.18	Dec.18		1st Jan.19		Mar.19	Jun.19	Sep.19	Dec.19
Due from Banks (1)	3,488	3,224	3,398	3,059	3,059	3,807	1,941	2,033	1,320
Customer Loans	2,318	2,633	2,736	2,955	2,955	3,029	3,409	3,568	3,680
Financial Assets	17,106	17,199	17,678	18,238	18,238	19,012	19,920	21,532	22,313
Tangible and Intangible Assets	112	112	112	115	180	243	242	247	279
Derivatives	0	3	0	8	8	29	49	72	65
Other Assets	211	254	259	357	357	259	274	308	366
Total Assets	23,235	23,425	24,183	24,733		24,797		26,380	25,835	27,760	28,023
Customer Deposits	20,916	21,197	21,827	22,273	22,333	23,311	24,140	25,429	25,920
Due to Banks	960	908	1,000	1,010	1,014	1,605	207	188	155
Derivatives	0	2	0	8	8	32	84	156	95
Funds and other Liabilities	367	445	452	466	466	393	477	698	471
Equity	992	874	904	976	976	1,040	928	1,289	1,382
Total Liabilities and Equity	23,235	23,425	24,183	24,733		24,797		26,380	25,835	27,760	28,023

IFRS16: the Bank decided to not disclose comparative data from previous periods, as allowed by new accounting standards.

No effect was recorded in net equity on the date of first application. This is because for the purposes of FTA, the financial liabilities for leasing were valued and recorded at the current value of the residual future payments on the transition date, and the corresponding assets consisting of the right of use were valued at the amount of the financial liability plus the advanced leasing payments recorded in the financial situation immediately prior to the date of initial application (31st December, 2018).

1. Due from banks includes: 1.2bn cash deposited at Bank of Italy as of June 2019, 1.2bn cash and 0.2 bn compulsory reserves deposited at Bank of Italy as of Sept. 2019, and 0.8bn cash and 0.3 bn compulsory reserves deposited at Bank of Italy as of Dec. 2019

53

Main Financial Ratios

	Mar.18	Jun.18	Sep.18	Dec.18		Mar.19	Jun.19	Sep.19	Dec.19
PFA TFA/ PFA (mln) (1)	22.5	23.0	23.4	23.2		25.0	25.6	26.6	27.8
Guided Products / TFA (2)	31%	32%	32%	32%		33%	33%	34%	35%
Cost / income Ratio (3)	41.0%	40.0%	39.3%	38.9%		41.3%	39.4%	37.9%	37.9%
CET 1 Ratio	20.2%	20.7%	20.5%	21.2%		21.0%	17.8%	17.4%	18.1%
Adjusted RoE (4)	35.1%	37.0%	35.2%	35.7%		30.8%	33.6%	27.0%	27.1%
Leverage Ratio (5)	7.15%	6.51%	6.00%	5.55%		5.11%	2.89%	3.85%	3.85%

1. PFA TFA/PFA: calculated as end of period Total Financial Assets related to the network divided by number of PFAs eop
2. Calcuated as Guided Products eop divided by Total Financial Assets eop
3. C/I ratio net of non recurring items (see page 43) calculated as Operating Costs divided by Revenues net of non recurring items
4. RoE: Net Profit, net of non recurring items (see page 43) divided by the average book shareholders' equity for the period (excluding dividends expected to be distributed and the revaluation reserves)
5. Leverage ratios until Mar.19 are calculated on Individual basis, according to the EC Delegated Act 2015/62 regarding the exclusion ofintra-group54exposure

High-value deposit base confirms strong resilience over time

Sight deposits growth, Eop bn

28

+16.0%

y/y

25

23

20

Financial

18

Sovereign

crisis

15

debt crisis

last 10 years

13

CAGR: 10.4%

10

8

5

Worst liquidity outflow

3

1-Jul-07

1-Jul-081-Oct-08

1-Jul-09

1-Jan-101-Apr-101-Jul-101-Oct-101-Jan-11

1-Apr-111-Jul-111-Oct-111-Jan-121-Apr-121-Jul-121-Oct-121-Jan-131-Apr-13

1-Jul-13

1-Jul-14

1-Jul-15

1-Jul-16

1-Jul-17

1-Jul-18

1-Oct-181-Jan-191-Apr-191-Jul-191-Oct-19

1-Jan-07

1-Apr-07

1-Oct-07

1-Jan-08

1-Apr-08

1-Jan-09

1-Apr-09

1-Oct-09

1-Oct-13

1-Jan-14

1-Apr-14

1-Oct-14

1-Jan-15

1-Apr-15

1-Oct-15

1-Jan-16

1-Apr-16

1-Oct-16

1-Jan-17

1-Apr-17

1-Oct-17

1-Jan-18

1-Apr-18

• Double-digitdeposit growththroughout the last 10 years (+10.4% CAGR), with no impacts from 2008 financial crisis and 2011 sovereign debt crisis
• Strong resilience during periods of stress/crisis: 912mln worst liquidity outflow on April 10th, 2012
• High-valuedeposit base:most of our deposits is transactional liquidity. Customer rate: zero; cost of funding: 4bps
• 83% of total sight deposits: core liquidity(1)in a stressed scenario according to clients' behavioral model
• Structural trendsin place in Italy combined with best in class banking platform andhigh-qualityserviceswill continue to support our deposit growth

1. The Core liquidity is determined applying a stress test scenario that presumes a political crisis in EU and a credit spread widening, more severe55for the periphery, but material also for core and semi-core countries

Fineco - a fully independent public company

Strategy and Business model

Fineco exit from the UniCredit Group has no implications on its strategy and business model:Fineco enjoyed limited synergies with UniCredit and, as a fully independent company, continues to focus on maximizing shareholders' value via healthy, sustainable and organic growth

Transitional Arrangements with UniCredit Group

Fineco and UniCredit have agreed to enter into certain transitional arrangements to ensure full continuityand an orderly and smooth transition from a regulatory, liquidity and operational standpoint

INVESTMENT

STRATEGY

• No change in the investment policyenvisaging an increasing diversification of financial investments as the existing stock of UniCredit bonds, currently at around €7.1bn(1), progressively runs off by 2024
• UniCredit has granted a financial collateralin favor of Fineco to secure the credit risk exposures towards UniCredit andneutralize the capital impacts and risk concentration limits

INFRAGROUP

SERVICES

TRADEMARK

• UniCredit will continue to provide, on an interim basis, certain servicesin order to allow Fineco to act in full operational continuity. The contract for customers' access to banking services through smart ATMs and physical branches has been extended for 20 years
• Fineco has exercised at the end of 2019the option for the purchase of its brand at the price of €22.5mln plus VAT

56	(1)	Nominal value as at February 11th, 2020

Benefits from being a fully independent public company

• More liquid stockwith more than doubled average volumes
• Increased efficiencyas we now aremore flexible and agile to adapt to a fast changing environment in terms of:

MARKETING AND

COMMUNICATION

TECHNOLOGY

TREASURY

More freedomin terms of marketing strategy, tone of voiceand communication on social media(very important for

Brokerage)

Possibility to fully exploit our operational efficiency to offer a better customer experiencewith more flexibility (e.g. Strong Customer Authentication)

Improved efficiency and flexibility in our decision making, withno need to increase risk profile

57

Headquarters acquisition - details

Deal

• January 31st2019: completed the headquarters acquisitionin Milan from Immobiliare Stampa S.C.p.A. (controlled by Banca Popolare di Vincenza S.p.A. in compulsory winding up)





Price of the deal: €62mln

Rationales:favourable conditions of the deal, expected running cost savings and limited

additional impacts on capital ratios, given the introduction of new IFRS 16 accounting standard (leasing) in place since January 2019

Main P&L impacts

Annual rent savings

Amortizing costs on acquisition (in 33 yrs)

Yearly saving costs equal to ~€2.5mln

Capital ratios impacts

• With thenew IFRS 16, leasing value impacts RWA and capital ratios
• Additional expected impact (building acquisition versus recognition of leasing value):-34bpson CET1 ratio, absolutely manageable considering our rock-solid capital position

58

Fineco Asset Management in a nutshell

AUM at €14.2bn, of which €8.6bn retail classes (1)

		FAM EVOLUTION(22 strategies)
		FAM Target: new decumulation product to progressively invest in multi-thematic/profile
		funds
FUNDS OF		FAM Megatrend: new multi-thematic fund investing in secular trends
FUNDS		New building blocksboth vertical and based on risk profile
		CORE SERIES(30 strategies)
		Release ofPremium Share Classes
FAM SERIES		Additional sub-advisory mandates in pipeline to further enlarge the offer through
(sub-adviced		quality and exclusivity agreements for Fineco clients only
funds)		
		32 strategies
		Underlying funds for advisory solutions (both funds of funds and Insurance wrappers)
INSTITUTIONAL		allowing a better control of the value chain to retain more margins and lower
	customers' TER
BUSINESS
	40 strategies, including also Passive and new Smart Beta funds

BENEFITS

Quality improvement and time to market for customers and distribution needs

Several efficienciesleveraging on a vertically integrated business model combined with the strong operating efficiency which is in Fineco's DNA

Better risk managementthanks to the look-through on daily basis on funds' underlying assets Win-winsolution: lower price for clients, higher margins

59

(1)Figures as of January 31st, 2020

Cooperative Compliance Scheme:

FinecoBank admitted in the Cooperative Compliance Scheme with the Revenue Agency

In July 2017,FinecoBank has been admitted to the Cooperative Compliance Scheme(1), which allows the Bankto take part to a register of taxpayers (published on the Revenue Agency's official website)operating in full transparency with the Italian tax Authorities. This isa fundamental milestone

for our Bank

Until now, only few companieshave been admitted in Italy, of which among Banks: Fineco, UniCredit, Intesa and BPER

Key requirements to be admitted:

• subjective and objective requirements(resident legal entities with specific sizing thresholds)
• effective system in place for identifying, measuring, managing and controlling tax riskin line with the "essential" requirements of theTax Control Frameworkenvisaged by law, Revenue Agency ordinances and by the OECD documents published on the subject

Several advantages:

• closer relationship oftrust and cooperationwith the Revenue Agency
• Increase of the level of certainty on significant tax issuesunder conditions of full transparency
• agreed and preventive risk assessmentof situations likely to generate tax risks
• fast track ruling

60	(1)pursuant to articles 3-7 of Legislative Decree 128/2015 in July 2017

Additional Tier 1

First public placement successfully issued with strong demand (9x the offer)

€200 mln AT1 issued in January 2018		€300 mln AT1 issued in July 2019

• On January 23rd, 2018 the Bank issued a €200mlnperpetual AT1
• Coupon fixed at4.82%for the initial 5.5 years
• Private placement, fully subscribed by UniCredit SpA
• Semi-annualcoupon
• Coupon (net of taxes) will impact directly Equity reserves

• On July 11th, 2019 Fineco issued a €300mlnperpetual AT1 in order to maintain the Leverage Ratio above 3.5% after the exit from the UniCredit Group
• Coupon fixed at5.875%(initial guidance at 6.5%) for the initial
  5.5 years
• Public placement, with strong demand (9x, €2.7bn), listed in Euronext Dublin
• Semi-annualcoupon
• Coupon (net of taxes) will impact directly Equity reserves
• The instrument was assigned aBB- rating by S&P

Italian AT1 yield at first call date

61