Credem Group 1Q25 Results

GROUP RESULTS 1Q25

1Q25: HIGHLIGHTS €229 MLN €136 MLN

15.2%

13.4%

PROFITABILITY

NET

Norm*

Norm.*

Norm.*

1Q25

PROFIT

NET PROFIT

15.7%

ROTE

Net NPL

Ratio

ROE

Gross NPL Ratio

ASSET QUALITY CET1 Ratio

7.66%

8.01%

CAPITAL SOUNDNESS

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

**Calculated as the normalised figure and adding the profitability for the period on average tangible equity net of dividends and average equity net of dividends, respectively, generated by the transfer of the merchant acquiring business into Worldline and amounting to €93.7 mln

2

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. Taking into account the numerous signaling innovations of the new Basel 4 regulation in force as of 1 January 2025, the European Central Bank postponed, until 30 June 2025, the sending of prudential reports referring to March 2025; following this postponement, the risks were estimated and calculated according to the new Basel 4 regulation, taking into account the clarifications and interpretations received. The work needed to adapt procedures to the production of the new supervisory reports has not yet been completed.

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

1Q25: HIGHLIGHTS

Loans

-0.1%

YoY

Direct funding

VOLUMES 1Q25 PRODUCTION

Customer funding

Net inflows excluding corporate

+6% VS 1Q24 CUSTOMERS

Total customers

Loans and funding: ABI Monthly Outlook Aprile 2025

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

BUSINESS DIVERSIFICATION

Operating Income

€/million

3.9% 1.9% 2.1% 6.2% 1.8%

4.4%

4.6%

0.4%

1.9%

7.0%

54%

56%

58%

52%

49%

37%

37%

40%

40%

42%

1Q24 2Q24 3Q24 4Q24 1Q25

Core NIM on Operating Income NII on Operating Income

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

The dynamics of core revenues was influenced by the reduction in the NII, accounting 49% of the total in the quarter. The Group presented a significant diversification of revenues with an excellent contribution of recurring commission components (Core NIM*), equal to 42% of total revenues, confirming the effectiveness of the Federation of Business

*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

€77.7 mln

€11.4 mln

Extended Banking Services, Consumer Credit E Technology

€21.7 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

Consolidation adjustments and transfer of merchant acquiring *

-€89.8 mln

€28.7 mln

We6lth E Priv6te

S40.1

mln

* €93.7 mln (net of fiscal effect)

Network Factories

NET PROFIT €229.3 mln

RECLASSIFIED INCOME STATEMENT

• Total revenues down by 9.5% YoY due to the correction of the NII down by 18% compared to the peaks of the same period last year, while the commission components grew, with the Core Non Interest Margin, NIM net of non-recurring components, up by 2.4% vs 1Q24

• Operating Costs trend (+6.0% vs 1Q24) was driven by the effects of the further contractual increase in September and consistent with the continuous IT design and development activity to support dimensional growth

• LLPs stood at low levels, with a cost of credit at 11 bps, confirming the remarkable asset quality of the Group

• Extraordinary profits included 95 million deriving from the transfer of merchant acquiring activities to Worldline, finalized on 20 January 2025

• The Net Profit stood at 229.3 million and net of the capital gain deriving from the sale of the merchant acquiring activity it amounted to 135.6 million

NET INTEREST INCOME 1Q25 VS 4Q24

Non-Recurring Effects

4Q24

Rate effect on commercial volumes1

Effect of Change in Commercial volumes1

Other non-commercial2

NII net of non recurring effetcs

Effect of sales of Securities portfolio volumes3

Renewal of liabilities hedging derivatives

Days Effect 1Q25

NII trend in 1Q25 was characterized by the further reduction in rates and the presence of some non-recurring effects that were present in the

quarter:

• A reduction in the securities portfolio, which allowed the Group to have a positive effect on the economic components of the Result from Financial Activity, with the aim of reconstituting the portfolio during the year

• An effect of discontinuity following the expiry and subsequent renewal of some hedging derivatives on liabilities which had provided excellent benefits during 2024 and which will support the financial margin during 2025 in a scenario of decreasing rates

• A day effect on the quarter weighing nearly 6 million

CUSTOMER SPREAD

During 1Q25, the Group showed better stability in the customer spread compared to that of the Industry, with a contraction for

Credem (-9 bps) and for the Industry (-17 bps vs 4Q24)

The effect is mainly attributable to the lower impact on the average rate of loans to customers in the quarter (-19 bps vs. -27 bps Industry). The dynamics of the average cost of funding was similar (-10 bps vs -9 bps Industry)

Customer spread

3.07

3.04

3.02

2.96

3.21

2.87

3.56 3.53 3.48 3.38

Loans to customers

Deposit Rate

1.16 1.23

1.22 1.26

1.16 1.23

1.16

1.06

1.07

0.96

4.79

4.79

4.72

4.23 4.27

4.19

4.54

4.02

4.27

3.83

1Q24 2Q24 3Q24 4Q24 1Q25

Credem: spread Industry: spread

1Q24 2Q24 3Q24 4Q24 1Q25

Credem: average loans rate Industry: average loans rate

1Q24 2Q24 3Q24 4Q24 1Q25

Credem: average deposit rate Industry: average deposit rate

SECURITIES PORTFOLIO

11,609

12,508

11,965

11,525

13,229

Securities portfolio breakdown (€/mln, %)

Italian government bond (€/bn)

4.7

4.0

4.0

3.8

5.2

32%

33%

33%

40%

42%

4%

25%

4%

24%

4%

25%

4%

22%

4%

21%

39%

39%

38%

34%

33%

1Q24 1H24 9M24 FY24 1Q25

HTC 4.6

HTCS 0.1

FVTPL 0.0

Total 4.7

1Q24 1H24 9M24 FY24 1Q25

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

% Tot Assets

• The value of the securities portfolio decreased to 11.5 billion, due to some profit takings made in 1Q25, mainly on Italian and foreign sovereign bonds. The current composition maintained a high diversification and an average maturity of 4.1 years. The HTC components was equal to 64% and showed a low level of potential unrealised losses, gross of fiscal effect, equal to about 1 million

• The amount of Italian govies was 42% of the total portfolio and

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

3.5 years. The HTCS component of domestic securities had an average maturity of 1.5 years

19,0%

18,3% 18,2%

19,5%

18,0%

Rating Securities portfolio:

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

111.4

109.9

109.8

124.2

121.8

Performance Fees

Income from Financial Activities

Banking Fees E others

Insurance Income

239.7

219.7

202.6

250.8

241.1

Asset Management and Brokerage Fees

1Q24 2Q24 3Q24 4Q24 1Q25

«Core» NIM**

195.0

187.3

190.8

208.7

199.7

Total Non interest Margin reached 241.1 million, with a positive contribution of the recurring components ('core' NIM), which amounted to almost 200

million in 4Q24, growing in 1Q25 by 2.4% compared to the same period of 2024

• Asset Management and Brokerage Fees, equal to 121.8 million, recorded good stability despite the lower placements that had instead characterized 4Q24

• Bank commissions were nearly stable at 51.3 million

• The Result from Insurance Activities stood at 20.3 million

• Excellent results from financial activities which benefited from sales on the securities portfolio in 1Q25 and reached 33.1 million

  OPERATING COSTS AND DEA

  Operating costs (€/mln) Employees

  202

  
  
  

  221

  
  
  

  223

  
  
  

  257

  
  
  

  235

  
  
  

  6,608 6,616 6,628 6,614 6,680

  6,068 6,140 6,195 6,201 6,219

  5,609

  5,763 5,899

  1Q24 2Q24 3Q24 4Q24 1Q25

  Payroll
  Administrative Expenses
  
  

  DEA (S/mln)

  2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1Q25

  135

150

152

Fin6nci6l Advisors

26.1

26.9

27.1

27.4

26.6

827 855

820

831 833 835 833

833

841

770

785

812

820

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1Q25

The structural growth of the Group continues to be supported by the ongoing improvement of the high level of customer service and by the intense planning and IT activity which is reflected in the dynamics of Administrative Costs. The trend in Staff Expenses vs 1Q24 was affected by the further contractual increase which occurred in September 2024

LOANS TO CUSTOMERS

9.6

9.6

9.3

9.4

9.2

10.6

3.3

3.3

7.7

10.7

3.3

3.5

8.1

10.8

3.3

3.6

7.6

11.1

3.4

3.7

8.8

11.3

3.4

3.8

7.8

Other Loans

Residential

Mortgage

Leasing

Consumer Finance

Short-Term Loans

Loans to customers (€/bn)

1Q24 1H24 9M24 2024 1Q25

Total

34.6

35.2

34.7

36.4

35.4

Ongoing volumes expansion that grew by 2.5%, while the Industry showed a contraction of 0.1% YoY

• Excellent performance of Consumer Credit (+14.1% vs 1Q24), thanks to the growth of Avvera which reached €3.3 billion (vs €2.6 billion in 1Q24) of personal loans, target loans and salary-backed loans

• Short-term loans recorded an increase of 1.2% y/y. The performance of 'Residential Mortgages' and 'Leasing' remained sound, +6.1% and +1.7% vs

  1Q24

• «Other Mortgages» (-4.2% vs 1Q24) were affected by the reduction in loans guaranteed by the State (€1.1 billion vs €1.9 billion 1Q24) disbursed during the COVID period

GROUP CUSTOMERS FUNDING: NET INFLOWS BREAKDOWN

Total Net Inflows

Total Net Inflows net of Corporate

AUC Direct Deposits AUM + Insurance Total Net Inflows Total Net Inflows net of Corporate

1,616

1,338

1,516

1,233

1,103

564

828

697

712

481

723

458

58

155

314

-124

-28

-181

-394

-203

-264

-72

-318

-370

Direct deposit corporate

-762 €mln

-1,020

1Q21

1Q22

1Q23

1Q24

1Q25

Net funding flows are down by 370 million, mainly due to seasonal outflows of direct deposits on corporate. Total net inflows net of corporates, which recorded outflows of around 1.3 billion, were positive for 828 million:

• Strong performance of Net inflows from Asset Management and Insurance exceeding 720 million, affirming the ability of the Federation of Business to express value through the quality of the distribution networks and product factories, encouraging commercial development and the evolution of the product range

• AUC net inflows were slightly down by around 70 million

  DEPOSITS, AUM AND INSURANCE

  Total customer funding Direct deposits E retail bonds**

  +3.7% YoY

  Industry

  Credem

  +170%

  +1.5% YoY

  
  
  

  €/mln Sight / Saving Depo.	1Q24 35,796	FY24 38,794	1Q25
  			37,778
  Retail Bonds E Other Deposits*	1,113	455	486 38,264
  Tot6l Direct Funding	36,909	39,249
  Insur6nce Reserves	8,564	9,396	9,553
  Portfolio Management	5,968	6,733	6,527
  Mutual Funds E Sicav	14,208	15,110	15,324 12,516
  Others E Third Parties' Products	11,954	12,804
  AUM	32,130	34,647	34,366 43,920 21,865
  AUM + Insur6nce	40,694	44,043
  AUC	20,562	21,923
  TOTAL CUSTOMER FUNDING	98,165	105,214	104,049

  2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1Q25

  • Direct customer deposits was equal to 38 billion, up 3.7% vs 1Q24

  • AUM and Insurance Reserves stood at 44.0 billion, up 7.9% vs 1Q24 driven by excellent net production that compensated a negative market effect

  • Almost stable AUC also up, amounting to 21.9 billion

ASSET QUALITY: GROSS NPL RATIO AND COST OF RISK

Disposal

~40 mn

Disposal

~49 mn

298

Disposal

~9 mn

260

359 363 350

267

46 38 48

Gross Non Performing Loans (S/mln,%)

FY23

FY24

1Q25

Gross NPL R6tio

2.3%

1.8%

2.5%

2.8%

Gross non-performing loans remained low at

€658 million, confirming the absence of significant NPL inflows

Gross Bad Loans Gross UTP Loans Gross Past Due Loans

Credem ITA EU** EU

Cost of risk trend (bps) Cost of risk (bps)

42 44 59 55 52

31 47 45 4

32 34

24 24

38

Both the cost of risk and the default rate confirmed at extremely low levels,

34 27 39

30

21 15 13

19 16

10

15 15 12 11

11 8 12 11

46

32

39

11

Credem ITA EU** EU

equal to 11 bps and 0.53% respectively

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019202020212022202320241Q25

Cost of risk

Cost of risk (net of non-recurring events)

*Source: ABI, internal calculation on Bank of Italy figures (TRI30266). Industry data refer to 4Q24

diversified lenders**

NPL: COVERAGE

Cover6ge r6tio

47.2%

39.6%

45.6%

59.7%

Credem ITA EU** EU diversified lenders**

• NPL accounting coverage stood at 59.7%. Comprehensive Coverage including Shortfall*, and additional level of coverage coherent with calendar provisioning and addendum, stood at 58.7% on total NPL

• The incidence of Net NPLs on Net Loans** remained at very low levels, 0.75%, compared to 1.46% of the Industry***

• The incidence of Stage 2 credits on the total gross loans, equal to 5.8%, remained well below the Italian and European average

  St6ge 2 (% of gross lo6ns)

  9.2% 9.9% 9.8%

  5.8%

  Credem ITA EU** EU diversified lenders**

  BONDS ISSUANCES AND MATURITIES

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

  €/mln

  2022

  2023

  24

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

  0 100 200 300 400 500 600

  
  
  

  Retail Istituzionale

  Social Green

Covered Bond Social SP

Social SP Retail

Social SP Retail

Green SNP

Social T2*

Covered Bond

Green SP

Covered Bond

750+

100

500+

500

600

500

Senior Preferred

Call Date

2028 400

Senior Non Preferred

MREL ratio vs TREA *

Deposits, not covered and not preferential

Senior unsecured liabilities

Senior non-preferred liabilities

T2

CET1

1.7%

1Q25 Requirement inc. CBR

Tier 2

Senior Preferred (Retail Bond)

Call Date Call Date

2025

2027

200**

200**

107.5***

2025 2026 2027 2028 2029 2030 2031 2032

• In 2025 there will be the possibility, subject to authorization from the regulator, to call up a 200 million T2 in advance

• High MREL buffer vs the requirement

  LIQUIDITY

  NSFR LCR

  167%

  168%

  176%

  132% 136% 136%

  FY23 FY24 1Q25E

  Loan to Deposit Ratio*

  0.96 0.92 0.93

  FY23 FY24 1Q25

  FY23 FY24 1Q25

• 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			1Q25		FY24		1Q25
  CET 1	3,660		3,773		3,391		3,503
  Total Capital	4,093		4,220		3,979		4,107
  Capital absorption from:	1,748		1,790		1,746		1,788
  Credit and Counterparty	1,532		1,530		1,530		1,528
  Market	4		8		4		8
  Operational	212		252		212		252
  CET 1 Ratio	16.7%		16.9%		15.5%		15.7%
  Tot. Capital Ratio	18.7%		18.9%		18.2%		18.4%
  RWAs	21,850		22,372		21,829		22,345

  766 bps Buffer vs Srep 2025 (8.01%)

• The Group's capital position remained very strong, with a CET1 ratio at both the Banking Group and Holding (Prudential Perimeter) levels of 16.9% and 15.7% respectively, thanks to excellent organic capital generation offsetting the RWA expansion that includes also the effect of Basel IV

• Current level of CET1 Ratio ensures a high capital buffer vs SREP2025 which includes the first impact of the SyRB of 766 bps

Authorization has been requested from the ECB for the inclusion of profits in the calculation of CET1, pursuant to art. 26 paragraph 2 CRR

ATTACHMENTS

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

9,888

10,047

36,364

35,425

Assets (€/mln)

FY24 1Q25

83

110

5,404

4,139

7,826

7,386

4,933

3,219

Fin. Assets through PEL

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

companies)

Due from banks Loans to customers

Equity

Deposits Bonds - Retail* Insurance

Reserves

ECB - Tltro III ECB - Other

EIB/CDP

Other -Wholesale**

Bonds -Wholesale*

Retail Funding

Wholesale Funding

FY24

6,806

39,005

38,019

9,396

9,553

Liabilities (€/mln)

3,858

3,858

3,783

497

499

500

245

245

4,293

4,267

Source: internal calculation

* Nominal value at issuing date 23

LIQUIDITY RESERVES

Liquidity Reserves (€/bn)

6.2

5.9

6.7

9.1

2.1

4.3

Total Other ECB eligible

unencumbered assets

ECB eligible unencumbered securities

Cash and deposits with Central Banks

1Q25 FY24

17.4

17.0

• The total value of the Group's Liquidity Reserves stood at €17.4 billion, equal to 27% of Total Assets

• The value of Cash and deposits with Central

  Banks decreased to €2.1 billion

• ECB eligible unencumbered securities grow to €9.1 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 75% -25%

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.