Financial Performance - FY22 Net income reached €55 billion excluding Russia de-risking, exceeding the >€5 billion Business Plan target[3] - FY22 Stated Net income was €4354 million, the best year since 2007[3] - Operating income increased by 33% compared to FY21[3] - Net interest income grew significantly by 202% compared to FY21, with a strong acceleration in Q4 (+284% vs Q3)[3] - Operating costs decreased by 04% compared to FY21, with the Cost/Income ratio down to 509%[3] Capital Position and Distribution - The fully phased-in Common Equity ratio increased to 135%[3] - €3 billion in cash dividends are planned for 2022, representing a 70% payout ratio[3] - A second tranche of buyback worth €17 billion will be launched, bringing the total additional distribution to €34 billion[3] Asset Quality and Risk Management - Gross NPL stock was reduced by €46 billion in FY22, reaching the lowest-ever NPL stock and ratio at 10%[3] - Russia exposure was reduced by 68% in H2, down to below 03% of Group customer loans[3] Customer Financial Assets - Customer financial assets exceeded €12 trillion, with a €26 billion increase in Q4[18]

Financial Data and Key Indicators Changes - In Q3 2022, the company achieved a net income of €4.4 billion, excluding provisions for Russia de-risking, marking the best nine-month performance since 2008 [4][11] - The net interest income grew by more than 8% year-on-year, with a quarterly increase of 14% despite lower benefits from TLTRO [14][15] - The net NPL ratio reached a record low of 1%, with a reduction in NPL stock by almost €7 billion year-on-year [22][24] Business Line Data and Key Indicators Changes - Insurance income reached a record high, driven by strong growth in non-motor P&C revenues [14] - Operating costs decreased by almost 2% year-on-year, demonstrating effective cost management despite inflation [21][32] - The company reported a total contribution from net interest income, commissions, and insurance income up over 6% year-on-year [15] Market Data and Key Indicators Changes - Customer financial assets were around €1.2 trillion, with short-term direct deposits increasing by €12 billion year-on-year [20] - The company allocated €30 billion to assist families and businesses facing high energy costs, reflecting its commitment to the real economy [10] Company Strategy and Development Direction - The company is focused on delivering high-quality results in the short term while building a strong bank for the next decade through ongoing execution of its business plan [6][26] - The rollout of Isybank, the new digital bank, is accelerating with significant investments and hiring of around 300 specialists [7] - The company aims to exceed its €6.5 billion net income target for 2025, supported by strong net interest income and a zero-NPL status [6][36] Management's Comments on Operating Environment and Future Outlook - The management remains positive about the Italian economy, citing stronger fundamentals compared to previous crises [8][30] - Despite potential economic slowdowns in 2023, the company expects a quick recovery in 2024, supported by government interventions and EU financial support [30] - The management upgraded the net income guidance for 2022 to more than €4 billion, reflecting strong operating performance and reduced Russia exposure [33][34] Other Important Information - The company has already accrued €2.3 billion in dividends and plans to distribute €1.4 billion as an interim dividend [5][34] - The company is committed to a 70% cash payout ratio and has completed the first tranche of its share buyback program, repurchasing around 5% of shares [5][34] Q&A Session Summary Question: What is the reasonable level of cost of risk considering a mild recession in 2023? - The management expects a cost of risk between 25 and 30 basis points, with a potential increase of 10 basis points if non-performing loans are disposed of [46][47] Question: What is the guidance for net interest income for 2023? - The expectation is for net interest income to be well above €11 billion, with an increase of €2 billion at a Euribor rate of 2% [44][45] Question: What is the company's view on the potential introduction of a banking tax in Italy? - The management has no evidence of a banking tax being introduced in Italy and believes the current taxation is already significant compared to other European countries [59][60] Question: How will the company manage the share buyback program? - The management will wait for the final results of the group before deciding on the second tranche of the buyback, emphasizing the importance of maintaining capital during uncertain economic conditions [50][56] Question: What is the impact of TLTRO on the company's financials? - The management indicated that TLTRO will not have a significant impact going forward, and they plan to repay it in a relatively short period depending on loan volumes [86][87]

Financial Data and Key Metrics Changes - The company reported a net income of €2.4 billion for the first half of 2022, with a provision of €1.1 billion for Russia-Ukraine exposure. Excluding these provisions, it would have been the best first half since 2008 [7][8] - The net income for the first semester, excluding provisions for Russia and Ukraine, was €3.3 billion, achieving the best-ever half-year operating income and margin [10][11] - Net interest income grew by 2.5%, with a strong acceleration of 7% in the second quarter, compensating for a slight decline in commissions [11][12] Business Line Data and Key Metrics Changes - The second quarter was the best ever for insurance income, which increased by 60% [12] - Customer financial assets reached €1.2 trillion, with short-term direct deposits increasing by €16 billion year-on-year [13] - The company achieved a gross NPL stock reduction of over €4 billion in the first six months, with a net NPL stock now at just €6 billion and a net NPL ratio of 1% [15][24] Market Data and Key Metrics Changes - The company’s exposure to Russia and Ukraine represents just 1% of group customer loans, with a decrease of €400 million since the beginning of the conflict [15][16] - The Italian economy is described as stronger than in previous crises, with solid fundamentals and lower debt levels among households and corporates [5][24] Company Strategy and Development Direction - The company is committed to a €6.5 billion net income target by 2025, with a focus on maintaining a zero-NPL status and a low underlying cost of risk [21][25] - Significant investments are being made in technology and digital banking, with the rollout of the new digital bank Isybank well underway [9][18] - The company is actively managing costs, achieving a 2.5% reduction in operating costs [12][13] Management's Comments on Operating Environment and Future Outlook - Management remains positive about the Italian economy despite potential challenges from inflation and geopolitical tensions, citing strong fundamentals [5][6] - The outlook for 2022 is expected to align with the excellent first-half performance, with a commitment to delivering best-in-class profitability [26] - Management expressed confidence in the ability to navigate potential economic slowdowns, emphasizing the resilience of the business model [21][24] Other Important Information - The company has allocated €1.1 billion for Russia-Ukraine provisions and still holds €400 million in generic provisions related to COVID [25] - A one-off contribution of €50 million was made to support employees facing inflationary pressures [6][20] Q&A Session Summary Question: NII sensitivity and future outlook - The first question focused on the net interest income (NII) sensitivity and the conditions for the second phase of the buyback program. Management highlighted the importance of monitoring the economic environment and ECB policies [28][34] Question: NPLs and cost of risk - A follow-up question addressed the NPL ratio and its impact on the cost of risk in 2023. Management indicated that the cost of risk would likely remain low, even in a recession scenario [46][50] Question: Government bonds and TLTRO strategy - Questions were raised regarding the strategy for government bonds and TLTRO, with management indicating a cautious approach to managing liquidity and interest income [47][56] Question: Client behavior and lending trends - Inquiry about client behavior in lending and investment spaces revealed a positive outlook for corporate lending, with companies expected to finance investments through self-cash flows [64][67] Question: Overlays and future provisions - Questions about the use of overlays confirmed that the company does not expect to utilize additional overlays this year, maintaining a cautious stance on future economic conditions [64][69]

Financial Performance - H1 Net income reached €3.3 billion, excluding €1.1 billion in provisions/writedowns for Russia-Ukraine exposure, marking the best first half since 2008[6] - Q2 saw a strong acceleration of Net interest income, increasing by 6.9% compared to Q1[6] - Operating costs decreased by 2.5% compared to 1H21, resulting in a Cost/Income ratio of 47.5%[6] - Net income excluding provisions/writedowns for Russia-Ukraine exposure in Q2 was €1.6 billion, a 6.6% increase[17] Asset Quality - Gross NPL stock was reduced by €4.1 billion in H1, with €3.2 billion reduction in Q2[6] - The gross NPL ratio reached a record low of 1.8%, and the net NPL ratio was at 1.0%[6] - The bank's exposure to Russia is limited to approximately 1% of Group customer loans[49] Capital and Liquidity - Customer financial assets exceeded €1.2 trillion[22] - The fully phased-in CET1 ratio stood at 12.5%, including the impact of a €3.4 billion buyback[67] Strategic Initiatives - The 2022-2025 Business Plan is proceeding at full speed, with key industrial initiatives well underway[6] - The bank is committed to ESG, with a focus on social impact and climate[81]

Financial Data and Key Metrics Changes - In Q1 2022, the company reported a net income of €1.7 billion, the best quarterly performance since 2008 when excluding provisions for the Russia-Ukraine exposure [9][31][49] - The company provisioned €800 million for the Russia-Ukraine exposure, which impacted the net income [9][34] - The outlook for 2022 was revised to more than €4 billion net income, assuming no critical changes to commodity supplies [10][53] Business Line Data and Key Metrics Changes - Net interest income grew over 1% on a quarterly basis, with a 1.3% increase when adjusted for the number of days [14][35] - Commission income saw a 1% year-on-year growth, with significant contributions from wealth management and insurance [32][24] - Operating costs decreased by 3.2% year-on-year, improving the cost-income ratio to 46.3% [21][15] Market Data and Key Metrics Changes - The company reported a €28 billion increase in short-term direct deposits year-on-year, which will support wealth management growth [24][36] - The NPL stock is now lower than €6 billion, with an NPL ratio of just 1%, positioning the company among the best in Europe [20][50] Company Strategy and Development Direction - The new business plan focuses on four pillars: massive upfront de-risking, structural cost reduction, growth in commissions, and significant ESG commitment [16][30] - The company aims to achieve a net income target of €6.5 billion by 2025, with a 70% payout ratio each year [12][53] - The company is transitioning towards a digital bank with the establishment of Isybank and significant investments in technology [22][29] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the company's resilience and ability to navigate the challenging environment, citing strong fundamentals in the Italian economy [47][49] - The management highlighted that the company is well-equipped to handle the impact of the Russia-Ukraine conflict, with a limited exposure of just 1% of group customer loans [39][41] - The management remains optimistic about achieving profitability targets despite geopolitical uncertainties [53][70] Other Important Information - The company has committed €10 million to support humanitarian initiatives related to the Ukraine crisis and has assisted employees affected by the conflict [28][27] - The company has a strong capital position with a fully phased common equity Tier 1 ratio of 13.6% [42][86] Q&A Session Summary Question: Share buyback approval status - The company submitted the buyback proposal to the ECB on April 1, 2022, and expects approval within 90 days [60][63] Question: Cost and IT investments flexibility - The company retains flexibility in its IT investments and does not foresee delays, emphasizing the importance of technological upgrades [64][66] Question: Profitability outlook assumptions - The management provided insights into the assumptions behind the profitability outlook, indicating a conservative approach to provisioning and exposure management [68][70] Question: Provisions for Russia and Ukraine exposures - The management explained the rationale behind the provisions for Russia and Ukraine, emphasizing a country risk approach [100][104] Question: Interest rate sensitivity - The management confirmed that for every 50 basis points increase in interest rates, net interest income could increase by more than €900 million [37][115]

A strong bank for a sustainable world 1Q22 Results Solid operating performance in a challenging environment Fully focused on executing the 2022-2025 Business Plan May 6, 2022 MIL-BVA362-03032014-90141/VR ISP delivered solid operating performance in a challenging environment, thanks to a well-diversified and resilient business model Execution of the 2022-2025 Business Plan proceeding at full speed, with key industrial initiatives well underway €1.7bn Net income excluding €0.8bn provisions/writedowns for Russ ...

Financial Data and Key Metrics Changes - In 2021, the company achieved a net income of €4.2 billion, the best year since 2007, reaching €5.3 billion when excluding additional provisions for deleveraging [13][14] - Revenues increased by 2%, with operating margin rising over 5%, marking the best year ever for the company [22] - The company plans to achieve a net income above €5 billion in 2022, with a payout ratio of 70% [29] Business Line Data and Key Metrics Changes - Commissions reached a record high, growing over 9% compared to the previous year, offsetting the decline in net interest income [20] - Customer financial assets grew by €90 billion on a yearly basis, with net inflows into assets under management positive by €17 billion [24] - Administrative costs decreased by almost 6% compared to last year, translating into a cumulative reduction of €600 million over the past four years [25] Market Data and Key Metrics Changes - The company reported a significant increase in retail direct customer deposits, with more than €20 billion added in the last quarter [21] - Gross NPL decreased by €10.5 billion on a yearly basis, with NPL ratios and stocks now among the best in Europe [26][27] - The fully loaded common equity Tier 1 ratio stood at 15.2%, indicating a strong capital position [27] Company Strategy and Development Direction - The company’s strategy is focused on revenue growth, efficiency, and derisking, with a goal to become a 0 NPL bank [7][32] - The new business plan emphasizes massive upfront derisking, structural cost reduction, growth in commissions, and significant ESG commitment [10][38] - The creation of a new digital bank, Easybank, aims to serve 4 million clients and enhance competitiveness against fintech challengers [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a net income of €6.5 billion by 2025, with a strong capital position and low NPL ratios [32][41] - The outlook for 2022 is positive, with expectations of increasing revenues and a strong decline in cost of risk [29] - The company aims to contribute over €520 billion to the real economy over the next 40 years, reinforcing its commitment to social impact [47] Other Important Information - The company plans to return more than €22 billion to shareholders, primarily through cash dividends, with a commitment to increase distributions year by year [111] - A significant focus on ESG initiatives includes a commitment to net zero by 2030 and substantial investments in social housing and financial inclusion [104][102] Q&A Session Summary Question: What are the key targets for the new business plan? - The company aims for a net income of €6.5 billion by 2025, maintaining a very low NPL level and increasing revenues through commissions and insurance income [32][41] Question: How does the company plan to address fintech competition? - The creation of Easybank will allow the company to serve digital clients more efficiently and protect its retail franchise against fintech threats [56] Question: What is the company's approach to ESG commitments? - The company is committed to significant contributions to society, including €500 million for social needs and €90 billion in new lending for the green transition [100][104]