Credem: general shareholders’ meeting approved 2016 results, dividend at €0.15 per share

Credem's General Shareholders' Meeting, chaired by Giorgio Ferrari, approved today 2016 financial statements, confirming the distribution of a dividend of €0.15 per share, stable in comparison with last year. The dividend will be payable as from May 17th, 2017 (record date will be May 16th, 2017), with shares going ex-div on May 15th, 2017; total dividends paid to shareholders will amount to €49.7 million.

"2016 results prove that the Group is capable of reacting convincingly and effectively to the adversities brought by a still very tough scenario", Giorgio Ferrari, Credem's Chairman of the BoD declared "The focus on credit quality as well as strong investments on people and technology enhanced the increase of market shares and customers' base expansion, while continuing to supply a significant support to the growth of the country", Ferrari continued "Profitability and solidity performances, reached by means of an organic growth strategy and

without the recourse to capital increases over the last nine years, allowed, also in 2016, the distribution of a significant dividend to shareholders, resulting in a total dividend payout amounting to almost €50 million (€150 million over the last three years). Being encouraged by these results, we can aim now at even more challenging targets, driven by the relentless mission of continuing to create value over time", Ferrari concluded.

In 2016 the Group continued to stand at the top of the banking sector in terms of solidity and credit quality. CET1 Ratio(1) was 13.15%, almost doubling the 2017 ECB regulatory SREP minimum requirement(2) fixed at 6.75%. Also, in 2016 the Group continued to sustain the economy, with Loans to Customers(3) increased by 4.6% YoY to €23,687 million, compared to the industry whose performance in 2016 was +0.4% YoY(4). Such an increase was realized while confirming Group's excellent credit quality over time, with Net Bad Loans' Ratio at 1.46%, less than one third of the industry average amounting to 4.89%(4). Group Customers' Funding at the end of 2016 was up by 7.6% YoY to

€62,910 million (+€4.4 billion in value). In 2016 the Group gained 112 thousand new customers(5).

In 2016, Net Consolidated Profit was €131.9 million after contributing a total amount above €37 million (gross of the fiscal effect) to the Single Resolution Fund and to the Deposit Guaranteed Scheme. In 2015, Net Consolidated Profit had been €166.2 million, including some significant non recurrent positive components. 2016 ROE(6) was 5.4% (it had been 7% in 2015).

The Group in 2016 hired 280 people(7), out of which 65.7% were young professionals, while total staff grew by +2.5% YoY (+7.3% in 3 years). Also, a plan to hire 120 young professionals within the end of 2017 was started. IT investments amounted to approximately €40 million in order to develop technological infrastructures and provide customers with up to date integrated software solutions on different sales channels.

In compliance with the current supervisory regulations related to this matter, the shareholders' meeting approved the remuneration policy carried out by the Group in 2016 as well as the one proposed for 2017 that sets fundamentals and features of remuneration plans destinated to executives, employees and collaborators of the companies of Credem Group.

Also, the assembly approved the remuneration plans based on financial instruments destinated to Credem Group's key personnel. Details of such plans were already specified in the press release issued on March, 16th, 2017 announcing the approval of the 2016 draft results by the BoD, and are available to the public on Credem's corporate website www.credem.it

***

At the end of 2016, Credem Group's distribution networks consisted of 631 branches, corporate centers and financial stores with 6,068 employees, 855 financial advisers with mandate, 259 Creacasa agents and 102 agents with exclusive mandate for "salary backed loans".

***

In accordance with paragraph 2 of Article 154-bis of the Consolidated Law on Finance, the Financial Reporting Manager Paolo Tommasini declares that the accounting information, both individual and consolidated, contained in this press release correspond to documentary records, ledgers and accounting entries.

***

For additional information about Credem and the other companies in the Group, please visit Credem website www.credem.it

NOTES:

1. Phased-in figures. On the back of article 11, comma 2, 3, and 13 of the EU regulation n. 575/2013 (CRR), banks controlled by a financial holding are requested to meet the requirements set by such a regulation on the base of the consolidated accounts of the holding. Because of this rule on capital ratios, the consolidation perimeter of the Group was changed, within the framework set by the prudential supervision of the regulator. Therefore, capital ratios were calculated on Credemholding, which holds 77.3% of Credem Spa share capital.

2. such value includes: i) the minimum requirement as stated by the Art. 92(1)(a) of the Capital Requirements Regulation (CRR) 575/2013; ii) the requirement fixed by the Bank of Italy as capital conservation buffer and equal to 1.25% in 2017 as defined in the Circolare n. 285 issued on 12/17/2013 - 18° update (https://www.bancaditalia.it/compiti/stabilita-finanziaria/politica- macroprudenziale/documenti/Comunicato_web_CCoB_-_IT.pdf); iii) the additional requirement as per Art. 16(2)(a) of Directive 1024/2013, requested by the ECB and equal to 1%; iv) the coefficient of the countercyclical capital reserve requested by the Bank of Italy and equal to 0% for the first quarter 2017 (https://www.bancaditalia.it/media/comunicati/documenti/2016-02/20161216-cs-ccyb-1-2017.pdf)

3. Loans to Customers do not include repos with the Cassa di Compensazione e Garanzia. Group's Direct Deposits include the contribution of all companies belonging to the banking group, while Insurance Reserves include Credemvita's technical reserves and financial liabilities valued at fair value. Regarding Customers' Funding, bonds issued to institutional investors and indirect deposits from financial institutions are deducted from the total. Group Customers' Funding includes Insurance Reserves.

4. Source ABI Monthlly Outlook - Economia e Mercati Finanziari - Creditizi, February 2017 - Sintesi: https://www.abi.it/DOC_Mercati/Analisi/Scenario-e-previsioni/ABI-Monthly- outlook/Sintesi%20febbraio%202017%20st.pdf ;

5. Data referred to Credem Spa only;

6. Roe=Net Profit/[(Total Equity previous year + Total Equity current year)/2]. Total Equity = line 140 + line 150 + line 170 + line 180 + line 190 - line 200 + Net Profit net of dividends distributed or deliberated from the parent company (part of line 220).

7. Data referred to Credem Spa only, net of intergroup and other movements.

Reggio Emilia, April 27th 2017

CREDITO EMILIANO SPA

(Chairman) Giorgio Ferrari

+39 02 77426202 / +39 0522 582075

rel@credem.it

+39 0522 583029 / 582580

investor@credem.it

www.credem.it