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Banca IFIS Group: Net profit for the period 68,3 million, Net banking income 279,2 million

SDIR: 1.2

2nd quarter 2019: 1 April – 30 June

• Net banking income: 149,1 million Euro (+7,5% vs 2Q18);
• Net profit from financial activities: 127,1 million Euro (+15,9% vs 2Q18);
• Net profit for the period: 38,4 million Euro (+35,3% vs 2Q18);

Results first half 2019

RECLASSIFIED DATA: 1 January – 30 June
• Net profit for the period: 68,3 million Euro (+3,2% vs 1H18).
• Net banking income: 279,2 million Euro (+0,4% vs 1H18);
• Contribution of the PPA down to 37,5 million Euro, compared with 44,1 million at 30 June 2018;
• Operating costs: 138,4 million Euro (-4,0% vs 1H18);
• Cost of credit (Enterprises segment) 34,6 million Euro (-11,3% vs 1H18);

Capital requirements with the consolidation within La Scogliera:
• CET1: 10,81% (+0,52% vs 1Q2019) that includes the consolidation of FBS. CET1 remains above the SREP requirement of 8,12%; TCR: 14,51% (14,01% at 31 December 2018) towards a SREP requirement of 12,5%.

Capital requirements without the consolidation within La Scogliera2:
• CET1: 14,03% (13,74% at 31 December 2018); TCR: 18,49% (18,20% at 31 December 2018).

Mestre (Venice), 2 August 2019 – The Board of Directors of Banca IFIS met today under the chairmanship of Sebastien Egon Fürstenberg and approved the results for the first half of 2019.

“During these first six months of the year, the Bank has performed well in all its main activities, showing a solid business and results in line with expectations,” explains Banca IFIS CEO, Luciano Colombini. In detail, the figures for the last quarter show a net profit up to 38,4 million Euro (+35,3% on the second quarter of 2018) and net banking income of 149,1 million Euro (+7,5% on the second quarter of 2018) thanks to the more than positive contribution of the non-performing loans business (44% of the total) and the Enterprises segment.

Regarding SMEs, we are now well positioned and competitive. In the NPL business, in the second quarter, we recorded a double-digit increase in cash recoveries on our NPL portfolio of +19% compared to the first quarter (+66% the trend change) for 67 million Euro.

In this first half of 2019, the Banca IFIS Group signed acquisition contracts for 700 million new unsecured NPLs.

At 30 June, the Banca IFIS Group’s portfolio amounted to 16,4 billion Euro nominal amount, plus 6,4 billion Euro in third-party management through the subsidiary FBS for a total amount of 22,8 billion Euro (nominal amount).

In terms of capital requirements, CET1 at the end of June rose to 10,81% (+0,52% on the previous quarter) thanks to profits made in the first six months of the year. The level is well above the 8,12% required by SREP.

With the team, we are already outlining the guidelines of the new Business Plan that we will present this autumn and that will be the result of teamwork”, concluded Colombini.