Credem Group 1H25 Results

GROUP RESULTS 1H25

1H25: HIGHLIGHTS PROFITABILITY

NET

Norm*

Ann. norm.* Ann. norm.*

1H25

PROFIT

NET PROFIT

15.83%

ROTE

Net NPL

Ratio

ROE

Gross NPL Ratio

ASSET QUALITY CET1 Ratio

7.42%

8.41%

CAPITAL SOUNDNESS

*Normalised figure is net of €93.7m (net of tax effect) from the transfer of the merchant acquiring business into Worldline

CET1 Ratio calculated at Credemholding level (prudential perimeter). Lowest P2R among banks directly supervised by the ECB. Authorization has been requested from the ECB for the inclusion of profits in the calculation of

CET1, pursuant to Article 26 paragraph 2 CRR. The minimum CET1 requirement also includes SyRB, the new buffer introduced by the Bank of Italy equal to 0.81% and calculated on the basis of credit and counterparty risk- 2

weighted exposures to Italian residents as at 30 June 2025.

Source Italian and European NPL ratio average (NPL Ratio calculated ex cash balances at central banks and other demand deposit): ECB, Supervisory Banking Statistics 4Q24

1H25: HIGHLIGHTS

Loans

YoY

Direct funding

VOLUMES 1H25 PRODUCTION

Customer funding

Net inflows excluding corporate

+6% VS 1H24 CUSTOMERS

Total customers

Loans and funding: ABI Monthly Outlook July 2025

Credem Group net inflows include AUM, AUC, direct and insurance net inflows from customers 3

468.2

2.1%

442.2

0.3%

BUSINESS DIVERSIFICATION

Operating Income

525.3

504.4

480.0

522.7

475.4

461.6

480.6

471.9

480.6

433.9

€/million

3.9% 1.9%

6.2% 1.8%

4.4%

4.6%

0.4%

1.9%

7.0%

3.9%

54%

56%

58%

52%

49%

52%

37%

37%

40%

40%

42%

44%

1Q24 2Q24 3Q24 4Q24 1Q25 2Q25

Core NIM on Operating Income NII on Operating Income

Income from Financial Activities on Operating Income Performance Fees on Operating Income

The Group presented a significant diversification of revenues with an excellent contribution of recurring commission components (Core NIM*), equal to 44% of total revenues, confirming the important support that this aggregate will provide to income components also in the future

*Core NIM: Non Interest Margin net of non-recurring items (Income from Financial Activities, Performance Fees)

** Core Operating Income: Net Interest Income + Core Non Interest Margin 4

Commercial banking

Credem Banca

Private Banking

Credem Euromobiliare

Private Banking

CONTRIBUTION TO CONSOLIDATED NET PROFIT

€170.5 mln

€22.8 mln

Extended Banking Services, Consumer Credit E Technology

€43.4 mln

Credem Factor Credem Leasing MGT

Avvera

Credemtel

Wealth Management

Euromobiliare SGR Euromobiliare Advisory SIM Euromobiliare Fiduciaria Credem Private Equity

Asset Management

CredemVita

Credem Assicurazioni

Insurance

* €93.7 mln (net of fiscal effect)

Network Factories

Consolidation adjustments and transfer of merchant acquiring *

+€82.7 mln

NET PROFIT €371.8 mln

€52.4 mln

We6lth E Priv6te

S75.2

mln

RECLASSIFIED INCOME STATEMENT

• NII up 2.5% vs 1Q25 despite the reduction of interest rates. Excellent dynamics also of the commission components, with the Core Non Interest Margin, NIM net of non-recurring components, up by 1.2% vs 1Q25. Total revenues (-2.9% vs 1Q25) were affected by a lower income from financial activites and lower performance fees compared with last quarter

• Excellent performance of the Operating Costs down by 3% vs 1Q25. Costs were driven by the reduction in staff expenses, which more than offset the trend in administrative expenses (+3.6% vs 1Q25), that were affected by the continuous IT design and development activity to support dimensional growth

• LLPs stood at low levels, with a cost of credit at 3 bps, also thanks to a capital gain from NPL disposal for a gross amount of 9.8 million in the second quarter

• Provisions and extraordinary items included 3.6 million in charges from systemic provisions relating to life insurance policies

• The Net Profit stood at 371.8 million. Net of the capital gain deriving from the sale of the merchant acquiring activity, net profit amounted to 278.1 million

NET INTEREST INCOME

Net Interest Income 2Q25 vs 1Q25

3.5

Euribor and spread BTP/Bund

2.3

240.1

148

234.2

0.7

139

138

126

-0.6 111

104

3.92%

3.81%

3.56%

3.00%

2.56%

2.11%

1Q24

2Q24

3Q24

4Q24

1Q25

2Q25

1Q25

Rate effect on commercial volumes1

Effect of Change in Commercial volumes1

Other non-commercial2

Days Effect

2Q25

3 months Euribor (avg) Spread BTP vs Bund 10 yrs (bps; avg)

NII grew vs 1Q25 despite the further decrease of interest rates

The trend was driven by a substantial stability of the commercial component, while the contribution of the "other non-trading" component was positive, thanks to hedging strategies on some liability components that will continue to give good support to the NII in the interest rates reduction scenario

CUSTOMER SPREAD

During 2Q25, the Group showed stability in the customer spread, that stood at 2.87 bps for the second quarter in a row showing

a better trend than that of the Industry, which declined by -8 bps vs 1Q25

The drop in the average cost of funding from customers of the Group (-19bps) offset the lower average profitability of commercial loans (-20bps). The Industry showed a lower reduction in the average cost of funding (-12bps) and a drop in the average profitability of loans to customers of -19bps

Customer spread

3.07

3.04

3.02

2.96

3.21

2.87

3.13

2.87

3.56 3.53 3.48 3.38

Loans to customers

Deposit Rate

1.

16

1.23

1.221.26

1.

16

1.23

1.16

1.06

1.07

0.96 0.95

0.77

4.79

4.79

4.72

4.23 4.27 4.19

4.54

4.02

4.27

3.83

4.08

3.63

1Q24 2Q24 3Q24 4Q24 1Q25 2Q25

Credem: spread Industry: spread

1Q24 2Q24 3Q24 4Q24 1Q25 2Q25

Credem: average loans rate Industry: average loans rate

1Q24 2Q24 3Q24 4Q24 1Q25 2Q25

Credem: average deposit rate Industry: average deposit rate

SECURITIES PORTFOLIO

11,609

12,508

11,965

11,171

13,229

11,525

Securities portfolio breakdown (€/mln, %)

Italian government bond (€/bn)

4.7

4.0

4.0

3.8

4.1

5.2

32%

33%

33%

40%

42%

37%

4%

25%

4%

24%

4%

6%

25%

4%

22%

4%

21%

23%

39%

39%

38%

34%

33%

34%

1Q24 1H24 9M24 FY24 1Q25 1H25

HTC 4.1

HTCS 0.1

FVTPL 0.0

Total 4.1

1Q24 1H24 9M24 FY24 1Q25 1H25

Other non-Italy Other Govies / EFSF/ EIB Other Italy Italian Govies

% Tot Assets

• The value of the securities portfolio stood at 11.2 billion, due to some profit takings made in the first part of the year, mainly on Italian sovereign bonds. The current composition maintained a high diversification and an average maturity of 4.2 years. The HTC components was equal to 61% and showed potential unrealised gains, gross of fiscal effect, equal to about 23 million

• The amount of Italian govies was 37% of the total portfolio and

  98% of them were accounted in HTC with an average maturity of

  3.8 years. The HTCS component of domestic securities had an average maturity of 1.3 years

  19.0%

  18.3% 18.2%

  19.5%

  18.0%

  17.2%

  Rating Securities portfolio:

  42%

AAA / AA A

BBB

NON INTEREST MARGIN

Total* (€/mln)

20.7

23.0

52.3

23.4

9.4

23.0

52.7

18.4

10.0

1.8

52.8

22.2

32.3

9.8

51.7

23.9

8.4

33.1

51.3

20.3

18.2

51.1

22.1

1.3

111.4

109.9

109.8

124.2

121.8

123.4

Performance Fees

Income from Financial Activities

Banking Fees E others

Insurance Income

239.7

219.7

202.6

250.8

241.1 221.5

Asset Management and Brokerage Fees

1Q24 2Q24 3Q24 4Q24 1Q25 2Q25

«Core» NIM**

195.0

187.3

190.8

208.7

199.7

202.0

Total Non interest Margin stood at 221.5 million, with a positive contribution of the recurring components ('core' NIM), which amounted to 202.0 up

7.9% compared to the same period of 2024

GROUP CUSTOMERS FUNDING: NET INFLOWS BREAKDOWN

al Net Inflows

tal Net Inflows net of Corporate

Total Net Inflows

AUC Direct Deposits AUM + Insurance Tot ToTotal Net Inflows net of Corporate

2,693

2,664

2,600

2,324

1,635

1,753

1,421

1,456

1,093

893

977

723

568

266

204

Direct deposit Retail

+190 €mln

-48

-95

-435

-174

2,680

2,686

2,819

265

2,826

1H21

1H22

1H23

1H24

1H25

Net funding stood at nearly 1.5 billion. Total net inflows net of corporates were 2.3 billion:

• Strong performance of Net inflows from Asset Management and Insurance at almost 1.5 billion, thanks to the excellent work of the distribution networks and product factories

• Direct Deposits net inflows were down by 174 million, but net of the corporate component the figure would be positive at around 190 million

• AUC net inflows were positive at 204 million

  DEPOSITS, AUM AND INSURANCE

  Total customer funding Direct deposits E retail bonds**

  +2.6% YoY

  Industry

  Credem

  +171%

  +1.0% YoY

  
  
  

  €/mln Sight / Saving Depo.	1H24 37,109	FY24 38,794	1H25
  			38,639
  Retail Bonds E Other Deposits*	1,154	455	615 39,255
  Tot6l Direct Funding	38,263	39,249
  Insur6nce Reserves	8,801	9,396	9,956
  Portfolio Management	6,110	6,733	6,534
  Mutual Funds E Sicav	14,296	15,110	15,921 12,837
  Others E Third Parties' Products	12,320	12,804
  AUM	32,727	34,647	35,293 45,249 22,645
  AUM + Insur6nce	41,527	44,043
  AUC	21,361	21,923
  TOTAL CUSTOMER FUNDING	101,151	105,214	107,149

  2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1H25

  • Direct customer deposits was equal to 39.3 billion, up 2.6% vs 1H24

  • AUM and Insurance Reserves stood at 45.2 billion, up 9.0% vs 1H24 driven by excellent net production that compensated a slightly negative market effect

  • AUC up by 6.0% YoY, amounting to 22.6 billion

    ASSET QUALITY: GROSS NPL RATIO AND COST OF RISK

    Disposal

    ~40 mn

    Disposal

    ~49 mn

    Disposal

    ~56 mn

    298

    359 363

    267

    340

    222

    46 38 43

    Gross Non Performing Loans (S/mln,%)

    FY23
    
    
    FY24
    
    
    1H25
    
    

    Gross Bad Loans Gross UTP Loans Gross Past Due Loans

    Gross NPL R6tio

    2.5%

    2.3%

    2.8%

    1.6%

    % on Loans (Credem) 0.9	0,8	0.6	1.1	1.0	0.9	0.1	0.1	0.1	lenders**
    % on Loans (Industry)* 1.1	1.0	0.9	1.7	1.6	1.5	0.2	0.2	0.3

    Credem ITA** EU** EU diversified

    Gross non-performing loans remained low at 605 million, also as a result of disposals amounting to a total of 56 million in 1H25

    42

    59 55 52

    44

    
    
    

    34

    31

    
    
    

    39

    27

    47 45

    4 32

    30

    34

    38

    24

    24

    15

    15

    13

    19

    10

    16

    15

    12

    21

    11

    8

    12

    3

    3

    Cost of risk trend (bps)

    2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1H25

    Cost of risk
    
    
    Cost of risk (net of non-recurring events)
    
    

    Cost of risk (bps)

    46

    32

    39

    3

    Credem ITA** EU** EU diversified lenders**

    The cost of risk, which also benefits from the capital gain on Npl disposal, remained at extremely low levels at 3 bps. The default rate also remained at historically low of 0.45%

    *Source: ABI, internal calculation on Bank of Italy figures (TRI30266). Industry data refer to 1Q25

    NPL: COVERAGE

    NPL (€/mln)	Gross	Net	Coverage
    Bad Loans	221.9	38.6	82.6%
    UTP Loans	340.3	191.6	43.7%
    Past Due	42.9	25.4	40.9%
    Total NPL	605.2	255.6	57.8%

    Cover6ge r6tio

    47.2%

    39.6%

    45.6%

    57.8%

    + Net NPL	+255.6
    - (Shortfall + Addendum + Calendar)	+3.6
    NPL Net of Shortfall	+259.2
    Coverage incl. Shortfall	57.2%

    Credem ITA** EU** EU diversified lenders**

• NPL accounting coverage stood at 57.8%. Comprehensive Coverage including Shortfall*, and additional level of coverage coherent with calendar provisioning and addendum, stood at 57.2% on total NPL

• The incidence of Net NPLs on Net Loans** remained at very low levels, 0.70%, compared to 1.50% of the Industry***

• The ratio of Stage 2 credits on the total gross loans, equal to 6.4%, remained well below the Italian and European average

  St6ge 2 (% of gross lo6ns)

  9.2% 9.9% 9.8%

  6.4%

  Credem ITA** EU** EU diversified lenders**

  BONDS ISSUANCES AND MATURITIES

  Recent issues (€/mln) Maturities (€/mln)

  May-25 Jan-24 Sep-23 Jul-23 Jul-23 May-23 Oct-22 May-22

  Jan-22

  T2

  Covered Bond

  Social SP

  Social SP Retail

  Social SP Retail

  Green SNP

  Social T2*

  Covered Bond

  Green SP

  
  
  

  24 25

  €/mln

  0 100 200 300 400 500 600

  750+

  100

  500+

  500

  
  
  

  Retail Istituzionale

  Social Green

Covered Bond

Call Date

Call Date

2027

600

2029

500

2023

Senior Preferred

2022

MREL ratio vs TREA 1

Deposits, not covered and not preferential

Senior unsecured liabilities

Senior non-preferred liabilities

T2

CET1

1.6%

Senior Non Preferred

107.5

2002

Call Date

2028 400

Call Date

3

2032

2025

2027

2002

2002

Call Date

Call Date

Tier 2

Senior Preferred (Retail Bond)

2025 2026 2027 2028 2029 2030 2031 2032 … 2037

1H25 Requirement inc. CBR

• In May, Credemholding issued a 200 million T2. Having already received the regulator's approval, in September there will be the possibility to early redeem a 200 million T2 with natural maturity 2030

• High MREL buffer vs the requirement

  LIQUIDITY

  NSFR LCR

  167%

  168%

  162%

  136% 134%

  132%

  FY23 FY24 1H25E

  Loan to Deposit Ratio*

  0.96 0.92 0.94

  FY23 FY24 1H25

  FY23 FY24 1H25

• Liquidity ratios remained sound and well above minimum capital requirements, enabling the Group to have a greater flexibility in setting future funding strategies

  CONSOLIDATED CAPITAL RATIOS

  Fully phased figures Fully phased figures

  Credem Group Credemholding

  €, million	FY24		1H25		FY24		1H25
  CET 1	3,660		3,833		3,391		3,574
  Total Capital	4,093		4,275		3,979		4,174
  Capital absorption from:	1,748		1,807		1,746		1,806
  Credit and Counterparty	1,532		1,546		1,530		1,546
  Market	4		9		4		9
  Operational	212		252		212		252
  CET 1 Ratio	16.7%		17.0%		15.5%		15.8%
  Tot. Capital Ratio	18.7%		18.9%		18.2%		18.5%
  RWAs	21,850		22,588		21,829		22,577

  742 bps Buffer vs Srep 2025 (8.41%)

• The Group's capital position remained very strong, with a CET1 ratio at both the Banking Group and Holding (Prudential Perimeter) levels of 17.0% and 15.8% respectively, thanks to excellent organic capital generation offsetting the RWA expansion

• Current level of CET1 Ratio ensures a high capital buffer of 742 bps vs SREP2025 which includes the impact of the SyRB

ATTACHMENTS

RECLASSIFIED CONSOLIDATED INCOME STATEMENT BY BUSINESS LINE VOLUMES RECLASSIFIED BY BY BUSINESS LINE ASSETS E LIABILITIES

10,047

10,474

36,364

36,687

Assets (€/mln)

1Q25 1H25

110

119

4,139

4,349

7,386

6,822

3,219

2,533

Fin. Assets through PEL

Fin. Assets HTCS Fin. Assets HTC Fin. Assets (insurance

companies)

Due from banks Loans to customers

1Q25 1H25

Wholesale Funding

Retail Funding

Bonds -Wholesale*

Other -Wholesale**

EIB/CDP

ECB - Tltro III ECB - Other

Deposits Bonds - Retail*

Insurance Reserves

Equity

39,005

39,010

9,553

9,956

Liabilities (€/mln)

3,858

4,058

3,783

2,761

499

487

245

245

4,267

4,436

Source: internal calculation

* Nominal value at issuing date 23

LIQUIDITY RESERVES

Liquidity Reserves (€/bn)

6.2

6.2

9.5

9.1

1.8

2.1

Total Other ECB eligible

unencumbered assets

ECB eligible unencumbered securities

Cash and deposits with Central Banks

1H25 1Q25

17.5

17.4

• The total value of the Group's Liquidity Reserves stood at €17.5 billion, equal to 27% of Total Assets

• The value of Cash and deposits with Central

  Banks decreased to €1.8 billion

• ECB eligible unencumbered securities grow to €9.5 billion and other ECB eligible unencumbered Assets were equal to €6.2 billion

• High granularity of deposits with an average of Private clients and Small Business deposits ~€20,000 and a deposit mix of Private clients and Small Businesses VS Corporate equal to approximately 74% -26%

Source: management data, internal calculation

DISCLAIMER AND CONTACTS

The manager responsible for preparing the company's financial reports Mr. Giuseppe Malato of Credito Emiliano S.p.A., declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corresponds to the document results, books and accounting records.

***

This presentation includes certain forward looking statements, projections, objectives and estimates reflecting the current views of the management of the Company with respect to future events. Forward looking statements, projections, objectives, estimates and forecasts are generally identifiable by the use of the words "may," "will," "should," "plan," "expect," "anticipate," "estimate," "believe," "intend," "project," "goal" or "target" or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts, including, without limitation, those regarding the Company's future financial position and results of operations, strategy, plans, objectives, goals and targets and future developments in the markets where the Company participates or is seeking to participate. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements as a prediction of actual results. The Group's ability to achieve its projected objectives or results is dependent on many factors which are outside management's control. Actual results may differ materially from (and be more negative than) those projected or implied in the forward-looking statements. Such forward-looking information involves risks and uncertainties that could significantly affect expected results and is based on certain key assumptions. All forward-looking statements included herein are based on information available to the Company as of the date hereof. The Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.