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Banca IFIS Group: Banca IFIS: 66,2 million Euro in profit, 51,8% in Cost/Income ratio. Excellent Enterprises segment’s gross-impaired loan ratio: 10,5%

August 3, 2018

Banca IFIS Group: Banca IFIS: 66,2 million Euro in profit, 51,8% in Cost/Income ratio. Excellent Enterprises segment’s gross-impaired loan ratio: 10,5%

Highlights– Results of the first half of 20181RECLASSIFIED DATA 2: 1 January – 30 June

o o Net banking income: 278,1 million Euro (+9,8%); o Net profit from financial activities:238,1 million Euro (+10,3%); o Operating costs: 144,2 million Euro (+20,7%); o Net profit for the period: 66,2 million Euro (-36,1%); o Credit risk cost of the Enterprises segment: 138 bps; o Enterprises segment’s gross -impaired loan ratio:10,5%; o Total Group employees: 1.577 people (+173 people compared to 2017); o Common Equity Tier 1(CET1) Ratio: 15,13% (15,64% at 31 December 2017)3; o Tier1 (T1) Capital Ratio:15,13% (15,64% at 31 December 2017) 3; o Total Own Funds Capital Ratio: 20,28% (21,07% at 31 December 2017)3.

Highlights– Results of the second quarter of 2018RECLASSIFIED DATA 4: 1 April – 30 June

o Net banking income: 138,7 million Euro (-7,3%); o Net profit from financial activities:109,7 million Euro (-33,1%); o Operating costs: 70,8 million Euro (+10,9%); o Net profit for the period: 28,4 million Euro (-60,0%);

Mestre (Venice), 3 August 2018 – The Board of Directors of Banca IFIS (Fitch BB+, outlook stable) met today under the chairmanship of Sebastien Egon Fürstenberg and approved the interim financial report for the first half of 2018.

““In the first six months of the year, we were extremely active in each segment, evolving our individual businesses, supporting firms that can now work with more confidence and sustainable business models”, says Giovanni Bossi, Banca IFIS CEO. “The Group has developed new alliances to accelerate the growth of the leasing business, working together with high-standing partners. Always concerning the leasing segment, innovation led us to replace our technological platform as well as improve and streamline all operational processes.

We acquired control of Credifarma—to be consolidated in the second half of 2018—to strengthen our presence in the pharmacy lending sector. In the first six months of the year, we announced the acquisition of the servicer FBS and finalised the acquisition of 100% of CapitalFin. This allows the Group to enter the salary-backed loan business, supporting the NPL segment. Finally, in July we launched a new initiative in the insurance sector. The economic and other benefits of all these activities will start materialising in the second half of 2018.

As for NPLs, in July the Group finalised the acquisition of non-performing loan portfolios with a par value of nearly 600 million Euro. Over the next few months, special emphasis will be placed on providing new debt restructuring solutions to entities that currently hold UTPs, so as to identify the best possible solutions to give new momentum to Italian businesses.

Unfortunately, in the second quarter—concludes Giovanni Bossi—our performance was affected by a series of particularly material events that are unlikely to happen again with the same intensity. I am happy with the results of our ordinary activities in the first six months of 2018, and we confirm our guidance across all businesses for the second half of the year”.

The Banca IFIS Group’s results5 for the half quarter of the year can be summarised as follows:

Net banking totalled 278,1 million Euro, +9,8% compared to the first half of 2017 (253,2 million Euro at 30 June 2017). The positive result was largely due to the outstanding performance of the NPL segment—as well as the contribution from the Enterprises segment’s Trade Receivables and Leasing areas. The result for the first half of the year Net banking income was negatively affected by the lower impact of the reversal of the PPA, i.e. the breakdown of the difference between the fair value as measured in the business combination and the carrying amount of the receivables recognised by the former Interbanca Group over time (44,1 million Euro at 30 June 2018, compared to 57,8 million Euro at 30 June 2017, -23,8%) influenced in the recent past by some early payments. Net impairment losses amounted to -40,0 million Euro, compared to 12,1 million Euro in net reversals in the prior-year period, and essentially referred to loans to customers of the Enterprises segment. This was attributable to two factors: the higher provisions set aside (14 million) on an individually significant position in the first six months Net impairment losses of 2018, compared to 26,8 million Euro in reversals in 2017 in the Corporate Banking area. In the first six months of 2018, the Enterprises segment’s cost of credit calculated under IFRS 9 amounted to 138 bps, compared to 31 bps under IAS 39 at 31 December 2017. In the previous year, the Bank had recognised some reversals of impairment losses, excluding which the cost of credit quality would have amounted to 89 bps. Operating costs totalled 144,2 million Euro (119,5 million Euro at 30 June 2017, +20,7%), resulting in a cost/income ratio of 51,8% (49,0% in the prior-year period). Personnel expenses rose to 55,5 million Euro (49,5 million Euro in June 2017, +12,1%), consistently with the addition of new hires (including those of the new subsidiary Capitalfin); at 30 June 2018 Group employees numbered 1.577 (up 173 people). Administrative expenses amounted to 95,1 million Euro, up 36,1% from 69,9 million Euro in the prior-year period. This was the result of the increase reported by the NPL Operating Costs segment, driven by rising judicial debt collection costs as well as the adoption of the new statistical model for estimating the NPL segment’s positions undergoing judicial operations in the NPL area. These costs totalled 14,8 million (that impact on legal expenses and registration fees) and had been previously deferred until the issue of the Garnishment Order. In addition, the period saw an increase in the expenses associated with consulting services related to the adoption of new technological systems and the help provided to the Group’s internal employees in the various projects launched during the first half of the year.

Pre-tax profit totalled 93,9 million Euro in the first six months of 2018, compared to 145,9 million Euro in the prior-year period.

At 30 June 2018, the Group net profit for the period totalled 66,2 million Euro, down 36,1% from 103,7 million Euro at 30 June 2017.

As for the contribution of individual segments6 to the operating and financial results at 30 June 2018, here below are the highlights:

# The Enterprises segment’s net banking income, accounting for 59,3% of the total, amounted to 165,1 million Euro, slightly down from the prior-year period (-3,9%).

Specifically, Trade Receivables generated 80,3 million Euro in net banking income (78,8 million Euro in the first half of 2017, +1,9%); the segment’s turnover rose to 6,1 billion Euro (+8,8% from 30 June 2017), while the number of corporate customers rose to over 5.600. Outstanding trade receivables amounted to 3,4 billion Euro, in line with 31 December 2017. To support the entities that do business with Italy’s Public Administration, the Group continued developing the TiAnticipo web portal, through which companies can upload their government-certified invoices and rapidly obtain financing. As for Leasing, the merger of IFIS Leasing into Banca IFIS was finalised in May, with the adoption of a new technological platform. The Leasing Area’s net banking income totalled 26,2 million Euro, up 7,0% (+1,7 million Euro) compared to 30 June 2017. The increase was driven by net interest income (+0,8 million Euro) as well as commission income (+0,9 million Euro), which benefited from the rise in lending volumes, and the higher number of customers. Corporate Banking’s net banking income totalled 52,5 million Euro, down 7,2 million Euro compared to 30 June 2017. The decline was largely attributable to the lower positive impact of the breakdown of the difference between the fair value as measured in the business combination and the carrying amount of the receivables recognised by the former subsidiary over time (so-called “reversal PPA”), down 12,3 million Euro from the prior-year period—which was to be expected. In the first half of 2017, Corporate Banking reported 26,8 million Euro in net reversals, largely because of an individually significant reversal of impairment losses on receivables. Loans to businesses totalled 5.599,7 million Euro at 30 June 2018, +2,5% compared to the restated data at 1 January 2018.

# The NPL Area7,dedicated to acquiring and converting mostly unsecured non-performing loans into sustainable settlement plans, transferred all its operations to the subsidiary IFIS NPL S.p.A. effective 1 July 2018. With 119,3 million Euro in net banking 79,0 million Euro in 2017, +51,1%) the NPL Area was the Group’s fastest-growing segment, thanks to the higher number of court-issued garnishment orders as well as the strong performance in converting existing portfolios. Cash receipts rose from approximately 54 million Euro in the first half of 2017 to nearly 81 million Euro in the first six months of 2018. During the semester, the Group further refined the statistical measurement models for its assets under management: specifically, it adopted a new model for estimating the positions undergoing judicial operations, resulting in an approximately 34,7 million Euro positive impact through profit or loss.

During the period, the Bank continued diversifying its funding sources and making them more flexible. At 30 June 2018, the Group’s funding structure was as follows:

o 59,4% retail;

o 14,0% debt securities;

o 12,8% ABS;

o 8,9% TLTRO;

o 4,9% other.

As for gross non-performing exposures, following the introduction of the category of the so-called POCI – “purchased or originated credit-impaired” financial assets under the new standard IFRS 9, the new write-off policies adopted by the Group, and in accordance with the 5th update to Circular 262 of the Bank of Italy, the presentation of gross non-performing exposures and the relevant impairment losses has changed significantly starting from 1 January 2018. As a result, gross non-performing exposures in the Enterprises segment accounted for 10,5% of total exposures at 30 June 2018, compared to 20,1% at 1 January 2018.

Overall, the gross non-performing loans of the enterprises segment totalled 615,7 million Euro, with 247,6 million Euro in impairment losses and a coverage ratio of 40,2% at 30 June 2018.

Below is the breakdown of net non-performing loans in the Enterprises segment8 (totalling 368,1 billion Euro):

-- net bad loans amounted to 68,0 million Euro, compared to 62,9 million Euro of the restated data at 1 January 2018 (+8,2%); the net bad-loan ratio was 1,2%, unchanged from the restated data at 1January 2018. The coverage ratio stood at 70,1% (71,0% at 1 January 2018); -- net unlikely to pay totalled 143,7 million Euro, -11,9% from 163,1 million Euro at the data restated at 1 January 2018; the coverage ratio declined to 34,0% from 26,5% at 1 January 2018. The change was mainly attributable to the higher provisions set aside on an individually significant position; -- Net non-performing pastdue exposures totalled 156,5 million Euro, compared with 112,0 million Euro at 1 January 2018 (+39,7%). The rise was partly due to the natural increase in past due exposures to Italy’s Public Administration as well as to new private-sector past due positions, concentrated on individually significant counterparties. The coverage ratio of net non-performing past due exposures stood at 8,5% (10,6% at 1 January 2018).

At the end of the period, consolidated equity totalled 1.373,1 million Euro, compared to 1.368,7 million Euro at 31 December 2017 (+0,3%).

The consolidated Common Equity Tier 1 (CET1), Tier 1 (T1) and Total Own Funds Ratios of the Banca IFIS Group alone, excluding the effect of the consolidation of the Parent Company La Scogliera9 at 30 June 2018, amounted to 15,13% for both the CET1 and T1 ratios, compared to 15,64% at 31 December 2017, while the consolidated Total Own Funds Ratio amounted to 20,28%, compared to 21,07% at 31 December 2017.

For more details, see the Consolidated Interim Report at 30 June 2018, available in the “Institutional Investors” section of the official website www.bancaifis.it

Significant events occurred in the period

The Banca IFIS Group transparently and timely discloses information to the market, constantly publishing information on significant events through press releases. Please visit the “Institutional Investor Relations” and “Media Press” sections of the institutional website www.bancaifis.it to view all press releases. Here below is a summary of the most significant events occurred during the period and before the approval of this document:

Acquisition of control of Cap.Ital.Fin. S.p.A.Concerning the binding offer to acquire control of Cap.Ital.Fin S.p.A. submitted on 24 November 2017, on 2 February 2018 the Bank finalised the acquisition of 100% of Cap.Ital.Fin S.p.A., a company on the register as per Article 106 of the Consolidated Law on Banking that operates across Italy and specialises in salary-backed loans and salary or pension deductions for retirees as well as private- and public-sector and government employees.

Preferred unsecured senior bond placementIn April 2018, Banca IFIS announced and successfully completed the placement of its first preferred unsecured senior bond issue. The 300 million Euro bond has a 5-year maturity and a 2% fixed coupon rate, and the issue price was 99,231%. The bond, reserved for institutional investors except for those in the United States, was issued under Banca IFIS S.p.A.’s EMTN Programme and will be listed on the Irish Stock Exchange. Fitch assigned a “BB+” long-term rating to the bond.

Agreement to acquire FBS S.p.A.

On 15 May 2018, the Group finalised an agreement to acquire control over FBS S.p.A., a company operating in the NPL segment as a servicing specialist (including both master and special services), manager of secured and unsecured NPL portfolios, due diligence advisor, and investor authorised to conduct NPL transactions. The deal was notified to the Bank of Italy and is expected to close by September 2018 with the Group’s acquisition of 90% of FBS for 58,5 million Euro.

Significant subsequent events

Acquisition of control of Credifarma S.p.A.On 2 July 2018, the Group finalised the acquisition of a controlling interest in Credifarma S.p.A., a company specialising in pharmacy lending. The deal was finalised through Banca IFIS’s acquisition of the combined 32,5% stake of UniCredit and BNL – BNP Paribas Group as well as the acquisition of part of Federfarma’s current interest in the company, amounting to 21,5%. Finally, the lender finalised a capital increase reserved for Banca IFIS to provide Credifarma with a robust financial position for regulatory purposes as well as to pursue future growth plans. The deal requires an overall investment—including the capital increase—of approximately 8,8 million Euro.

Transfer of Banca IFIS’s business unit dedicated to Non-Performing LoansIFIS NPL S.p.A., the joint-stock company into which Banca IFIS spun off its NPL segment, became fully operational on 1 July 2018. The transaction, announced in December 2017, now becomes effective as Banca IFIS’s Board of Directors has approved the transfer of the business unit.IFIS NPL has obtained the authorisation to extend financing and was entered into the register of financial intermediaries pursuant to Article 106 of the Italian Consolidated Law on Banking effective 1 July 2018.

Declaration of the Corporate Accounting Reporting Officer Pursuant to Article 154 bis, Paragraph 2 of the Consolidated Law on Finance, the Corporate Accounting Reporting Officer, Mariacristina Taormina, declares that the accounting information contained in this press release corresponds to the accounting records, books and entries.

Reclassified financial statements

Net impairment losses on receivables of the NPL were reclassified to Interest receivable and similar income to present more fairly this particular business, for which net impairment losses represent an integral part of the return on the investment.

Consolidated Statement of Financial Position

ASSETS AMOUNTS AT CHANGE (in thousands of Euro) --------------------- ------------------- 30.06.2018 31.12.2017 ABSOLUTE % ----------------------------------------------------------------- ---------- ---------- ---------- -------- 10. Cash and cash equivalents 47 50 (3 ) (6,0 )% ---- ------------------------------------------------------------ ---------- ---------- -------- - ----- -- 20. Financial assets at fair value through profit or loss 161.145 94.421 66.724 70,7 % ---- ------------------------------------------------------------ ---------- ---------- -------- - ----- -- a) financial assets held for trading 30.625 35.614 (4.989 ) (14,0 )% ---- ------------------------------------------------------------ ---------- ---------- -------- - ----- -- c) other financial assets mandatorily measured at fair value 130.520 58.807 71.713 121,9 % ---- ------------------------------------------------------------ ---------- ---------- -------- - ----- -- 30. Financial assets at fair value through other comprehensive 433.827 442.576 (8.749 ) (2,0 )% income ---- ------------------------------------------------------------ ---------- ---------- -------- - ----- -- 40. Financial assets measured at amortised cost 8.278.499 8.153.319 125.180 1,5 % ---- ------------------------------------------------------------ ---------- ---------- -------- - ----- -- a) due from banks 1.568.042 1.760.752 (192.710 ) (10,9 )% ---- ------------------------------------------------------------ ---------- ---------- -------- - ----- -- b) loans to customers 6.710.457 6.392.567 317.890 5,0 % ---- ------------------------------------------------------------ ---------- ---------- -------- - ----- -- 90. Property, plant and equipment 130.399 127.881 2.518 2,0 % ---- ------------------------------------------------------------ ---------- ---------- -------- - ----- -- 100. Intangible assets 24.815 24.483 332 1,4 % ---- ------------------------------------------------------------ ---------- ---------- -------- - ----- -- of which: goodwill 1.504 834 670 80,3 % ---- ------------------------------------------------------------ ---------- ---------- -------- - ----- -- 110. Tax assets: 400.773 438.623 (37.850 ) (8,6 )% ---- ------------------------------------------------------------ ---------- ---------- -------- - ----- -- a) current 46.433 71.309 (24.876 ) (34,9 )% ---- ------------------------------------------------------------ ---------- ---------- -------- - ----- -- b) deferred 354.340 367.314 (12.974 ) (3,5 )% ---- ------------------------------------------------------------ ---------- ---------- -------- - ----- -- 130. Other assets 303.238 272.977 30.261 11,1 % ---- ------------------------------------------------------------ ---------- ---------- -------- - ----- -- Total assets 9.732.743 9.554.330 178.413 1,9 % ---- ------------------------------------------------------------ ---------- ---------- -------- - ----- --

LIABILITIES AND EQUITY AMOUNTS AT CHANGE (in thousands of Euro) ------------------------- ------------------- 30.06.2018 31.12.2017 ABSOLUTE % ------------------------------------------------------ ---------- - ---------- - ---------- -------- 10. Financial liabilities measured at amortised cost. 7.819.032 7.725.159 93.873 1,2 % ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- -- a) due to banks 882.324 791.977 90.347 11,4 % ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- -- b) due to customers 4.840.864 5.293.188 (452.324 ) (8,5 )% ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- -- c) debt securities issued 2.095.844 1.639.994 455.850 27,8 % ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- -- 20. Financial liabilities held for trading 38.627 38.171 456 1,2 % ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- -- 60. Tax liabilities: 50.519 40.076 10.443 26,1 % ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- -- a) current 8.734 1.477 7.257 491,3 % ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- -- b) deferred 41.785 38.599 3.186 8,3 % ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- -- 80. Other liabilities 421.087 352.999 68.088 19,3 % ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- -- 90. Post-employment benefits 7.792 7.550 242 3,2 % ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- -- 100. Provisions for risks and charges: 22.603 21.656 947 4,4 % ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- -- a) commitments and guarantees granted 2.524 590 1.934 327,8 % ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- -- c) other provisions for risks and charges 20.079 21.066 (987 ) (4,7 )% ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- -- 120. Valuation reserves (14.478 ) (2.710 ) (11.768 ) 434,2 % ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- -- 150. Reserves 1.168.592 1.038.155 130.437 12,6 % ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- -- 160. Share premiums 102.052 101.864 188 0,2 % ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- -- 170. Share capital 53.811 53.811 - 0,0 % ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- -- 180. Treasury shares (-) (3.103 ) (3.168 ) 65 (2,1 )% ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- -- 200. Profit (loss) for the period (+/-) 66.209 180.767 (114.558 ) (63,4 )% ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- -- Total liabilities and equity 9.732.743 9.554.330 178.413 1,9 % ---- ------------------------------------------------- ---------- - ---------- - -------- - ----- --

Consolidated Income Statement

ITEMS AMOUNTS AT CHANGE (in thousands of Euro) ------------------------- ------------------- 30.06.2018 30.06.2017 ABSOLUTE % --------------------------------------------------------------- ---------- - ---------- - --------- --------- 10. Interest receivable and similar income 281.019 251.042 29.977 11,9 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 20. Interest due and similar expenses (51.442 ) (49.495 ) (1.947 ) 3,9 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 30. Net interest income 229.577 201.547 28.030 13,9 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 40. Commission income 46.885 41.241 5.644 13,7 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 50. Commission expense (7.111 ) (6.877 ) (234 ) 3,4 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 60. Net commission income 39.774 34.364 5.410 15,7 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 70. Dividends and similar income 301 40 261 652,5 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 80. Net profit (loss) from trading (352 ) (309 ) (43 ) 13,9 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 100. Gain (loss) on sale or buyback of: 1.997 17.577 (15.580 ) (88,6 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- a) financial assets measured at amortised cost 1.999 17.625 (15.626 ) (88,7 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- b) financial assets at fair value through other - (48 ) 48 (100,0 )% comprehensive income ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- c) financial liabilities (2 ) - (2 ) - ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 110. Net result of other financial assets and liabilities at 6.820 - 6.820 - fair value through profit or loss ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- b) other financial assets mandatorily measured at fair 6.820 - 6.820 - value ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 120. Net banking income 278.117 253.219 24.898 9,8 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 130. Net credit risk losses/reversal on: (40.036 ) 12.109 (52.145 ) (430,6 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- a) financial assets measured at amortised cost (39.752 ) 12.784 (52.536 ) (411,0 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- b) financial assets at fair value through other (284 ) (675 ) 391 (57,9 )% comprehensive income ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 150. Net profit (loss) from financial activities 238.081 265.328 (27.247 ) (10,3 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 190. Administrative expenses: (150.536 ) (119.336 ) (31.200 ) 26,1 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- a) personnel expenses (55.451 ) (49.484 ) (5.967 ) 12,1 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- b) other administrative expenses (95.085 ) (69.852 ) (25.233 ) 36,1 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 200. Net allocations to provisions for risks and charges 948 1.276 (328 ) (25,7 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- a) commitments and guarantees granted 1.140 3.173 (2.033 ) (64,1 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- b) other net provisions (192 ) (1.897 ) 1.705 (89,9 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 210. Net impairment losses/reversal on property, plant and (2.846 ) (2.048 ) (798 ) 39,0 % equipment ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 220. Net impairment losses/reversal on intangible assets (3.079 ) (3.894 ) 815 (20,9 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 230. Other operating income/expenses 11.337 4.547 6.790 149,3 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 240. Operating costs (144.176 ) (119.455 ) (24.721 ) 20,7 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 290. Pre-tax profit (loss) for the period from continuing 93.905 145.873 (51.968 ) (35,6 )% operations ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 300. Income taxes for the period relating to current operations (27.696 ) (42.211 ) 14.515 (34,4 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 330. Profit (Loss) for the period 66.209 103.662 (37.453 ) (36,1 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 340. Profit (Loss) for the period attributable to - 5 (5 ) (100,0 )% non-controlling interests ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ -- 350. Profit (loss) for the period attributable to the Parent 66.209 103.657 (37.448 ) (36,1 )% company ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------ --

Consolidated Income Statement: 2nd Quarter

ITEMS AMOUNTS AT CHANGE (in thousands of Euro) ------------------------- -------------------- 30.06.2018 30.06.2017 ABSOLUTE % --------------------------------------------------------------- ---------- - ---------- - --------- ---------- 10. Interest receivable and similar income 134.008 135.564 (1.556 ) (1,1 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 20. Interest due and similar expenses (23.911 ) (25.004 ) 1.093 (4,4 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 30. Net interest income 110.097 110.560 (463 ) (0,4 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 40. Commission income 23.605 23.457 148 0,6 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 50. Commission expense (3.651 ) (3.312 ) (339 ) 10,2 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 60. Net commission income 19.954 20.145 (191 ) (0,9 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 70. Dividends and similar income 301 40 261 652,5 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 80. Net profit (loss) from trading 368 1.306 (938 ) (71,8 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 100. Gain (loss) on sale or buyback of: 920 17.625 (16.705 ) (94,8 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- a) financial assets measured at amortised cost 922 17.625 (16.703 ) (94,8 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- c) financial liabilities (2 ) - (2 ) - ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 110. Net result of other financial assets and liabilities at 7.099 - 7.099 - fair value through profit or loss ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- b) other financial assets mandatorily measured at fair 7.099 - 7.099 - value ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 120. Net banking income 138.739 149.676 (10.937 ) (7,3 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 130. Net credit risk losses/reversal on: (29.079 ) 14.277 (43.356 ) (303,7 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- a) financial assets measured at amortised cost (28.876 ) 14.937 (43.813 ) (293,3 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- b) financial assets at fair value through other (203 ) (660 ) 457 (69,2 )% comprehensive income ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 150. Net profit (loss) from financial activities 109.660 163.953 (54.293 ) (33,1 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 190. Administrative expenses: (77.084 ) (64.129 ) (12.955 ) 20,2 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- a) personnel expenses (28.624 ) (25.411 ) (3.213 ) 12,6 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- b) other administrative expenses (48.460 ) (38.718 ) (9.742 ) 25,2 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 200. Net allocations to provisions for risks and charges 3.754 2.873 881 30,7 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- a) commitments and guarantees granted 982 2.428 (1.446 ) (59,6 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- b) other net provisions 2.772 445 2.327 522,9 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 210. Net impairment losses/reversal on property, plant and (1.460 ) (852 ) (608 ) 71,4 % equipment ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 220. Net impairment losses/reversal on intangible assets (1.656 ) (1.631 ) (25 ) 1,5 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 230. Other operating income/expenses 5.691 (72 ) 5.763 (8004,2 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 240. Operating costs (70.755 ) (63.811 ) (6.944 ) 10,9 % ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 290. Pre-tax profit (loss) for the period from continuing 38.905 100.142 (61.237 ) (61,2 )% operations ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 300. Income taxes for the period relating to current operations (10.550 ) (29.168 ) 18.618 (63,8 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 330. Profit (Loss) for the period 28.355 70.974 (42.619 ) (60,0 )% ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 340. Profit (Loss) for the period attributable to - 4 (4 ) (100,0 )% non-controlling interests ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- -- 350. Profit (loss) for the period attributable to the Parent 28.355 70.970 (42.615 ) (60,0 )% company ---- ---------------------------------------------------------- ---------- - ---------- - ------- - ------- --

Consolidated Income Statement: Quarterly

CONSOLIDATED INCOME STATEMENT: QUARTERLY EVOLUTION YEAR 2018 YEAR 2017 (in thousands of Euro) ------------------- --------------------------------------- 2nd Q. 1st Q. 2nd Q. 1st Q. 2nd Q. 1st Q. -------------------------------------------------- --------- --------- --------- --------- --------- --------- Net interest income 110.097 119.480 121.252 91.872 110.560 90.987 -------------------------------------------------- ------- - ------- - ------- - ------- - ------- - ------- - Net commission income 19.954 19.820 21.129 18.272 20.145 14.219 -------------------------------------------------- ------- - ------- - ------- - ------- - ------- - ------- - Other components of net banking income 8.688 78 7.639 11.945 18.971 (1.663 ) -------------------------------------------------- ------- - ------- - ------- - ------- - ------- - ------- - Net banking income 138.739 139.378 150.020 122.089 149.676 103.543 -------------------------------------------------- ------- - ------- - ------- - ------- - ------- - ------- - Net credit risk losses/reversals (29.079 ) (10.957 ) (37.075 ) (1.140 ) 14.277 (2.168 ) -------------------------------------------------- ------- - ------- - ------- - ------- - ------- - ------- - Net profit (loss) from financial activities 109.660 128.421 112.945 120.949 163.953 101.375 -------------------------------------------------- ------- - ------- - ------- - ------- - ------- - ------- - Personnel expenses (28.624 ) (26.827 ) (24.469 ) (24.298 ) (25.411 ) (24.073 ) -------------------------------------------------- ------- - ------- - ------- - ------- - ------- - ------- - Other administrative expenses (48.460 ) (46.625 ) (48.511 ) (34.257 ) (38.718 ) (31.134 ) -------------------------------------------------- ------- - ------- - ------- - ------- - ------- - ------- - Net allocations to provisions for risks and 3.754 (2.806 ) 1.719 (2.922 ) 2.873 (1.597 ) charges -------------------------------------------------- ------- - ------- - ------- - ------- - ------- - ------- - Net impairment losses/reversals on property, (3.116 ) (2.809 ) (2.688 ) (2.822 ) (2.483 ) (3.459 ) plant and equipment and intangible assets -------------------------------------------------- ------- - ------- - ------- - ------- - ------- - ------- - Other operating income/expenses 5.691 5.646 4.028 3.028 (72 ) 4.619 -------------------------------------------------- ------- - ------- - ------- - ------- - ------- - ------- - Operating costs (70.755 ) (73.421 ) (69.921 ) (61.271 ) (63.811 ) (55.644 ) -------------------------------------------------- ------- - ------- - ------- - ------- - ------- - ------- - Pre-tax profit from continuing operations 38.905 55.000 43.024 59.678 100.142 45.731 -------------------------------------------------- ------- - ------- - ------- - ------- - ------- - ------- - Income taxes for the period relating to continuing (10.550 ) (17.146 ) (11.387 ) (14.210 ) (29.168 ) (13.043 ) operations -------------------------------------------------- ------- - ------- - ------- - ------- - ------- - ------- - Profit for the period 28.355 37.854 31.637 45.468 70.974 32.688 -------------------------------------------------- ------- - ------- - ------- - ------- - ------- - ------- - Profit (Loss) for the period attributable to - - (7 ) 2 4 1 non-controlling interests -------------------------------------------------- ------- - ------- - ------- - ------- - ------- - ------- - Profit for the period attributable to the Parent 28.355 37.854 31.644 45.466 70.970 32.687 company -------------------------------------------------- ------- - ------- - ------- - ------- - ------- - ------- -

EQUITY: BREAKDOWN AMOUNTS AT CHANGE (in thousands of Euro) ------------------------- -------------------- 30.06.2018 31.12.2017 ABSOLUTE % -------------------------- ---------- - ---------- - ---------- --------- Share capital 53.811 53.811 - 0,0 % -------------------------- ---------- - ---------- - -------- - ------ -- Share premiums 102.052 101.864 188 0,2 % -------------------------- ---------- - ---------- - -------- - ------ -- Valuation reserves: (14.478 ) (2.710 ) (14.036 ) 517,9 % -------------------------- ---------- - ---------- - -------- - ------ -- - Securities (7.946 ) 2.275 (12.489 ) (549,0 )% -------------------------- ---------- - ---------- - -------- - ------ -- - Post-employment benefits 75 20 55 275,0 % -------------------------- ---------- - ---------- - -------- - ------ -- - exchange differences (6.607 ) (5.005 ) (1.602 ) 32,0 % -------------------------- ---------- - ---------- - -------- - ------ -- Reserves 1.168.592 1.038.155 132.705 12,8 % -------------------------- ---------- - ---------- - -------- - ------ -- Treasury shares (3.103 ) (3.168 ) 65 (2,1 )% -------------------------- ---------- - ---------- - -------- - ------ -- Profit for the period 66.209 180.767 (114.558 ) (63,4 )% -------------------------- ---------- - ---------- - -------- - ------ -- Equity 1.373.083 1.368.719 4.364 0,3 % -------------------------- ---------- - ---------- - -------- - ------ --

OWN FUNDS AND CAPITAL ADEQUACY RATIOS: AMOUNTS AT ------------------------- BANCA IFIS BANKING GROUP SCOPE 30.06.2018 31.12.2017 (in thousands of Euro) -------------------------------------- ---------- - ---------- - Common equity Tier 1 Capital (CET1) 1.175.684 1.152.603 -------------------------------------- ---------- - ---------- - Tier 1 Capital (T1) 1.175.684 1.152.603 -------------------------------------- ---------- - ---------- - Total own funds 1.575.684 1.552.792 -------------------------------------- ---------- - ---------- - Total RWA 7.769.825 7.369.921 -------------------------------------- ---------- - ---------- - Common Equity Tier 1 Ratio 15,13 % 15,64 % -------------------------------------- ---------- - ---------- - Tier 1 Capital Ratio 15,13 % 15,64 % -------------------------------------- ---------- - ---------- - Total Own Funds Capital Ratio 20,28 % 21,07 % -------------------------------------- ---------- - ---------- -

Attachment

-- 20180803_Banca IFIS, utile a 66,2 milioni. Cost income ratio a 51,8%. Rapporto attività deteriorate e impieghi_10,5%_EN

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