Banca Ifis S.p.a. · MIL:IF
Banca Ifis — Q2 2025 Earnings Presentation
50 slides from Banca Ifis's earnings presentation, Aug 1, 2025
Slide 1: 2Q25 results
+ Banca lIfis 2Q25 results 1 August 2025
Slide 2: Index
Index 1. Update on illimity 2. 2Q25 results 3. Appendices 2.1 Segment results 2.2 Consolidated financial data 2.3 Company overview 2
Slide 3: Update on illimity
<> Banca lfis 1 Update on illimity
Slide 4: Update on illimity
Update on illimity 1 Following the completion of the tender offer and the reopening of the terms, Banca Ifis has acquired 92.5% of illimity share capital (including own shares). The sell-out procedure for illimity’s outstanding shares will end on August 29th. The outcome of the offer guarantees the
Slide 5: Ready for integration
Ready for integration We are well positioned to benefit from the full integration of illimity, given Banca Ifis’s: •1 Proven track record in reliable execution and value creation o 1H25 net income of €87mln (€40mln in 2Q25), or €94mln excluding €9mln (pre-tax) one- off costs linked to the offer for
Slide 6: Value capture
Value capture We confirm the cost and revenue synergies generated from the transaction, with a detailed execution project already kicked off: •1 Definition of the combined organizational, IT, and business structure •2 Qualitative and quantitative assessment of illimity's personnel, both at managemen
Slide 7: Timetable and next steps
Timetable and next steps 28 July – 29 • Sell out offered to remaining illimity shareholders for either the same price of the August tender offer or for an alternative amount of €4.0767 per share September • Delisting of illimity (exact date to be defined, depending also on the percentage of illimity
Slide 8: 2Q25 results
<> Banca lfis y » 2Q25 results
Slide 9: Net revenues
Net revenues Quarterly Revenues • Net revenues in 2Q25 at €172mln (-9% YoY and -4% QoQ) -9% YoY o Commercial banking revenues at €83mln (€90mln in 1Q25, €87mln in 2Q24) with commercial performance and pricing discipline partially offsetting the rates effects. The QoQ decrease is mainly due to season
Slide 10: Commercial activity focused on profitability
Commercial activity focused on profitability Factoring turnover New leasing equipment and New leasing automotive Excluding Pharma (€bn) technology (€mln) (€mln) -2% YoY -4% YoY +9% YoY Market -6% Market +12% Market -3% 82 87 95 3.5 3.4 68 78 81 3.0 2Q24 1Q25 2Q25 2Q24 1Q25 2Q25 2Q24 1Q25 2Q25 • Fact
Slide 11: Npl portfolio: streamlining workout efficiency
Npl portfolio*: streamlining workout efficiency Quarterly cash collection (€mln) Revenues from judicial and extrajudicial recovery** (€mln) Including • 2Q25 cash collection remains solid Revalea 107 101 95 89 86 73 at €95mln. In 2Q25 judicial revenues slightly down YoY due to lower purchases of NPL
Slide 12: Net interest income sensitivity to reference rates
Net interest income sensitivity to reference rates* Net interest income sensitivity to Actions taken since the beginning of 2024: -0.50% decrease in reference interest rate, €mln 1• Increased duration of overall proprietary bond portfolio from 2.3Y in Dec 23 to 4.2Y in June 25 11-13 6-8 2• Increased
Slide 13: Interest income and cost of funding evolution
Interest income and cost of funding evolution Commercial banking interest income (excluding Npl Business, Non Core and Treasury) and interest expenses Average gross interest income* Cost of funding Base rate, Euribor 3M 6.2% 5.7% 5.3% 4.9% • Base rate QoQ ca. -60 bps • Aggregate interest income QoQ:
Slide 14: Total quarterly costs down through significant efficiency effort
Total quarterly costs down through significant efficiency effort Operating 104 98 103 Other operating costs: +€4mln QoQ mainly due to: costs • +€2mln QoQ indirect tax related to proprietary finance and bank deposits Exposed to • +€1mln QoQ legal and consulting expenses due to project Inflation 35 34
Slide 15: Loan loss provisions stable at historical low levels
Loan loss provisions stable at historical low levels Loan loss provisions* Coverage 4Q24 1Q25 2Q25 Bad loan coverage Bad loans 73% 70% 67% down QoQ due to the disposal of an old UTP 45% 44% 44% vintage NPL portfolio 11 Past due 11% 12% 14% 8 Total 48% 48% 46% 1Q25 2Q25 Gross 6.1% Gross • The QoQ cha
Slide 16: No signs of widespread macro credit risks materializing
No signs of widespread macro credit risks materializing in Banca Ifis’s commercial business Payment days in factoring Stage 1 and stage 2 loans* Coverage Stage 1: 0.9% Coverage Stage 2: 2.7% 92% 91% 91% 91% 91% 90% 90% 91% 93% 92% 78 79 77 76 76 76 75 75 75 75 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24
Slide 17: Sound and increasing capital ratios
Sound and increasing capital ratios Total 18.43% (0.26)% 18.18% CET1 of 16.52% as of 30 Jun 25, included net capital income after deducting the dividends accrued in 1H 2025 Key items of CET1 evolution in 2Q25 CET1 16.55% (0.03)% 16.52% • +0.44% due to net income after deducting from capital 0.44% (0
Slide 18: Quarterly results
Quarterly results Reclassified Consolidated Income Statement - (€ 1 Main items in 2Q25 other revenues 1Q25 2Q25 1H24 1H25 mln) Net interest income 130.8 111.8 287.4 242.5 • €4mln structured finance / equity Net commission income 20.5 23.8 46.9 44.4 investment (€12mln in 1Q25) Trading and other reven
Slide 19: Appendices
<> Banca lfis Appendices
Slide 20: 2.1 Segment results
Index Bancalfis 2.1 Segment results 20
Slide 21: 2Q25 Results: P&L break-down by business unit
2Q25 Results: P&L break-down by business unit Commercial & Corporate banking Corp. Banking Tot. Commercial Non core & 1 Breakdown of customer loans Data in € mln Npl Factoring Leasing & Corporate Consolidated & Lending G&S in Non Core & G&S banking Net interest income 64 23 13 17 53 (5) 112 Net comm
Slide 22: Factoring
Factoring Turnover - €bn • Banca Ifis has strong focus on profitability: in 2Q25 factoring average spread at 3.55% (on top of base rate) 3.5 3.3 3.4 3.0 3.4 • Net revenues** / average customer loans at 3.0 5.7% 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Net customer 2,572 2,744 2,361 2,900 2,647 2,711 loans - €m
Slide 23: Factoring – Italian business
Factoring – Italian business* Market share - 2024 Loans and revenues breakdown 22% 6% 3% 37% 43% Other Small [ < 10 mln] Medium [ < 50 mln] 23% 26% Large [ > 50 mln] 5% 34% 29% Active clients Turnover Average loans Revenues 2024 • Banca Ifis is market leader in terms of number of • Medium/large corp
Slide 24: Leasing
Leasing New business - €mln 1• In 2Q25 new business remained strong (the 1 150 169 130 223 149 173 tax incentives provided strong seasonality in the leasing market in 4Q24) 39 • Automotive: Banca Ifis’s strategy (i) 27 28 premium/luxury segments (not volumes) (ii) 31 93 26 38 54 22 42 51 price/margi
Slide 25: Npl Business: portfolio evolution
Npl Business*: portfolio evolution Npl portfolio evolution (including Revalea) Key numbers* • 1.9mln tickets, #1.3mln borrowers NBV** 1,507 1,534 €mln • Extensive portfolio diversification by location, type and age of borrower GBV €bn 20.1 0.3 (1.3) 19.0 Npls acquired in 2Q25: €0.3bn GBV • Starting
Slide 26: Npl Business: ERC
Npl Business*: ERC ERC assumptions ERC: €2.6bn (including Revalea) • ERC based on proprietary statistical models built using internal historical data series and homogeneous clusters of borrowers 1.3 2.6 o Type of borrower, location, age, amount due, employment status 1.3 2.5 o Time frame of recovery
Slide 27: Npl Business: GBV and cash recovery
Npl Business*: GBV and cash recovery Judicial recovery Non judicial recovery – Voluntary plans 1Q25 data Judicial recovery (€ mln) GBV % GBV, data in €mln include Revalea To be processed Frozen 2,173 27% 603 565 Court injunctions [“precetto”] and foreclosures 1,191 15% 528 522 510 510 Order of assig
Slide 28: Npl Business: cash recovery and P&L contribution
Npl Business*: cash recovery and P&L contribution 1 Cash collection • Starting early 2024, Banca Ifis concentrated on Revalea purchase and integration (limited other portfolio acquisitions) and on streamlining recovery activity on the existing stocks with more focus on extrajudicial activity • Start
Slide 29: Npl Business: GBV and NBV evolution
Npl Business*: GBV and NBV evolution GBV - €mln 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Waiting for workout - Positions at cost 126 254 257 428 324 563 Extrajudicial positions 12,838 11,561 10,575 8,515 10,862 10,369 - Ongoing attempt at recovery 12,310 11,039 10,065 8,005 10,259 9,804 - Non-judicial payment
Slide 30: Npl Business: P&L and cash evolution
Npl Business*: P&L and cash evolution P&L - €mln 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Waiting for workout - Positions at cost Extrajudicial positions 21 20 13 35 31 20 - Ongoing attempt at recovery (2) (2) (3) (7) (1) (3) - Non-judicial payment plans 23 22 17 41 32 23 Judicial positions 52 60 40 39 55 53 -
Slide 31: Npl Business: portfolio diversification
Npl Business*: portfolio diversification Breakdown of GBV by type Breakdown of GBV by borrower age Other Consumer 18-39 4% 29% 6% 40-49 >60 20% 44% Banking 50-59 67% 30% Breakdown of GBV by ticket size Breakdown of GBV by region 5k North 10% 38.6% > 100k 26% from 5k to South & Island Center 20k 29%
Slide 32: 2.2 Consolidated financial data
Index 2.2 Consolidated financial data 32
Slide 33: Customer loans
Customer loans Customer loans (€ mln) – Includes Revalea 10,810 10,552 10,704 • 2Q25 customer loans at €10,704mln, €152mln QoQ mainly due Corp. Banking & Lending (€118mln QoQ) 2,303 2,223 2,299 • Banca Ifis maintained disciplined in pricing and underwriting 2,473 2,600 2,482 1,613 1,623 6,934 1,603
Slide 34: Asset quality – 2Q25
Asset quality – 2Q25 Asset quality (€ mln) • The QoQ change in asset quality ratios is mainly due to Consolidated ratios 4Q24 1Q25 2Q25 lower performing loans reflecting factoring seasonality. Gross Npe* 5.4% 6.1% 5.8% Total Gross and Net Npes are roughly stable QoQ Net Npe* 2.9% 3.3% 3.2% • Asset q
Slide 35: Funding
Funding Funding (€mln) 11,231 11,645 • Customer deposits -€209mln QoQ mainly following the 11,598 reduction of repurchase agreements (-€230mln) 1,043 400 1,491 2,139 • Securitizations: €1,328mln of factoring and leasing 1,645 300 500 1,577 • €500mln MRO to finance the proprietary government 1,328 1,
Slide 36: Reclassified consolidated operating costs
Reclassified consolidated operating costs* Operating costs (€mln) 2Q25 operating costs (+€6mln QoQ) 104 107 103 • +€0.7mln QoQ in personnel expenses due to different timeframe in 94 98 variable compensation • +€5mln QoQ in other operating costs driven by: o +€2mln QoQ workout seasonality in NPL o +€
Slide 37: Proprietary portfolio: resilient contribution to P&L
Proprietary portfolio: resilient contribution to P&L • Mid duration level The core yields level in 2Q25 has been taken • Low volatility accounting treatment: FVTPL < 1% as a good opportunity to add Austrian RAGbs and Netherland Govies to the proprietary • Low RWA density and relevant funding eligibi
Slide 38: 2.3 Company overview
Index 2.3 Company overview 38
Slide 39: Banca Ifis: a long-term track record of sustainable growth
Banca Ifis: a long-term track record of sustainable growth Banca Ifis: a long-term track record of sustainable growth Leadership in small-ticket Acquisition in specialty finance Entry in small ticket profitable segments Specialized Npl factoring player 2022-24 2011-15 2016-21 1983-2010 Shareholder I
Slide 40: Stable shareholders and governance
Stable shareholders and governance • La Scogliera provides, as main shareholder, continuity and stability to Banca Ifis La Scogliera (Fürstenberg Family) • Strategic ESG focus both in specific positioning initiatives and in core operations (AAA MSCI rating) o Long term value creation with a strategy
Slide 41: A Family Bank challenger, but with years track record
A Family Bank challenger, but with 40 years track record Commercial and Corporate Banking Npl ► Specialised player for SMEs, with a broad range of credit ► Investor and servicer specialized in small ticket NPEs, products (factoring, lending, leasing, and rental) with a distinctive vertically integra
Slide 42: Consistent core net income growth with a low risk profile
Consistent “core net income” growth, driven by our core capabilities, with a low risk profile Net income target, €mln Actual Target Banca Ifis’ risk profile Business Plan targets Net 118 137 160 • Structurally protected liquidity income, €mln position (maturities) • Marginal contribution of extraord
Slide 43: Total assets and liabilities
Total assets and liabilities Assets (€mln) Liabilities (€mln) 13,579 13,961 13,579 13,961 Total Funding 697 517 679 548 215 182 Other and Other liabilities 410 1,799 386 Tangible/Intangible 1,801 1,749 1,970 assets Shareholders 1,491 2,139 Tax Assets Equity 300 500 Other funding 1,577 1,328 Cash 1,4
Slide 44: Banca Ifis's superior risk-return trade-off (1/3)
Banca Ifis’s superior risk-return trade-off (1/3) Data in Turnover 4 times per year; client/debtor double risk € bn assessment; rapidly adapting sector exposure Secured against the pharmacies in a regulated sector, protected from competitors 2.7 80% state guaranteed >80% in rating classes 1-5 1.6 Av
Slide 45: Banca Ifis's superior risk-return trade-off (2/3)
Banca Ifis’s superior risk-return trade-off (2/3) € bn Average Duration in Y Average ticket size Factoring 2.7 0.21* €325k* Leasing 1.4 1.9 €50k auto €60k equipment Rental 0.2 1.4 €5k Medium term lending 0.7 2.6 €200k Loans to pharmacies 0.8 7.5 €400k Structured finance 0.8 4.0 €12mln Npls 1.5 4.0 €
Slide 46: Banca Ifis's superior risk-return trade-off (3/3)
Banca Ifis’s superior risk-return trade-off (3/3)* Customer deposit breakdown Very limited corporate deposits 6,372 6,163 Corporate 20% 1,168 917 Retail Other deposits** 80% 650 712 323 319 Corporate deposits Rendimax deposits: 83% protected by FITD German retail deposits Above €100K 17% Below €100K
Slide 47: MSCI upgraded Banca Ifis's ESG rating to AAA
MSCI upgraded Banca Ifis’s ESG rating to AAA Strong ESG commitment reflected in the ESG rating: Banca Ifis’s upgraded to AAA from AA on 29 March 2025 • Banca Ifis’s Overall Industry Adjusted Score was 7.0 compared to industry average of 5.1 Industry Banca Ifis Dimensions Weight average Score Financi
Slide 48: Our ESG achievements
Our ESG achievements Financed Reporting Emissions and transparency Approximately 80% of exposures and financed Climate reporting aligned with the emissions considered by Banca Ifis NZBA recommendations of the Task force on Climate- targets, focused on Automotive sector related Financial Disclosures
Slide 49: Our ESG goals
Our ESG goals Environmental Social Governance Net-Zero Banking Alliance1 Social Impact Lab Governance ESG State and deliver on carbon objectives, as Manage projects to foster diversity and Further strengthen inclusion and diversity the first Italian bank to join the Net-Zero social inclusion in a de
Slide 50: Disclaimer
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,