FinecoBank Banca Fineco : - PR Interim Financial Report as at March 31, 2017

FinecoBank will voluntarily publish an "Interim Financial Report - Press Release" for Q1 and Q3 of each year in order to ensure continuity with the previous quarterly reports.

• Net profit:€51.7 million, +0.9% y/y (+8.0% y/y excluding the sale of government securities1in Q1 2016)

• Operating income: €141.8 million, +1.2% y/y (+5.0% y/y excluding the sale of government securities in Q1 2016)

• Operating costs: €60.7 million, essentially stable y/y

• CET1 ratio at 22.24% (transitional)

  FIGURES AT APRIL 30TH, 2017

• Net sales April 2017: €592 million (+59% y/y) of which €308 million Assets under Management (+182% y/y)

• Total net sales: €1,972 million (+9% y/y), of which Guided Products

  €1,384 million (+72% compared to 2016). Guided Products at 59% of AUM stock (+11 p.p. y/y)

• Total financial assets: €62.97 billion (+12.8% y/y)

• Over 1,149,000 total clients, +7% y/y (o/w 9,452 new clients in April alone, +23% y/y)

Milan, May 9th, 2017

The Board of Directors of FinecoBank S.p.A. has approved the results at March 31st, 2017. Alessandro Foti, CEO and General Manager of FinecoBank, stated:

"The first quarter of year ends once again with very solid results, thanks to a well diversified and sustainable business model, able to face every market phase. We're particularly satisfied with April total net sales, as it confirms the high quality in the mix of new inflows thanks to our cyborg-advisory approach and to the growing interest of our customers towards our advanced advisory services.

Moreover, the new initiatives launched by the Bank, in particular on lending area, had a very positive feedback from our customers, confirming the appreciation for our 'one stop solution' model, able to meet all their financial needs".

1 €3.4 million net (€5 million gross) profit deriving from the sale of government securities recorded in the "Available-for-sale financial assets" portfolio. This sale (€704 million nominal value, at floating rate, with average remaining maturity of less than 3 years) was made with a view to mitigating exposure to interest rate risk. A corresponding amount of government securities was purchased in the same quarter (€706 million nominal value with maturity between three and six years).

Total Financial Assets at March 31st, 2017 totalled €62.2 billion, up 13% compared to March 2016 with a constant improvement of the asset mix and of the quality of total net sales. At this regard, the growth of "Guided Products & Services" continued to increase as a percentage of total AUM, reaching 59% compared to 47% in March 2016 and 56% in December 2016.

Total net sales came to €1.4 billion in the first quarter of 2017, of which €0.8 billion in Assets under Management (+€0.9 billion y/y) and €0.5 billion in Assets under Custody, and direct deposits amounted to

€76 million. Net sales of "Guided Products & Services" since the beginning of the year totalled €1.0 billion (+145% y/y).

The balance of Assets under Management increased by 4.0% compared to year-end 2016, and amounted to

€29.7 billion at March 31st, 2017; Assets under Custody totalled €13.9 billion (+6.2% compared to year-end 2016); direct deposits totalled €18.6 billion, up compared to year-end 2016 due to the continuous growth in new clients and "transactional" deposits.

The TFA related to Private Banking clients, i.e. with assets above €500,000, totalled €23.3 billion, up 19% y/y.

As at March 31st, 2017, the network is composed of 2,639 Personal Financial Advisors (2,628 at the end of 2016) operating countrywide through 365 Fineco Centers. Net sales through the network of PFA in the first three months of the year totalled €1,246 million, up 2% on the same period of 2016.

New clients acquired since the beginning of the year were 32,075, of which 10,644 in the month of March alone (+14% y/y). The number of total clients at March 31st, 2017 was higher than 1,142,000, up 6% on March 2016.

Net interest income totalled €62.9 million, posting a slight drop compared to the €63.4 million of the last quarter of the year (-0.8% q/q) for higher costs related to commercial initiatives and accounted in net interest income2, but higher than the €62.2 million of Q1 2016 (+1.1% y/y). The double-digit increase in transactional liquidity, the reduction in cost of the term deposits and the greater incidence of lending more than offset the lower interest income associated with the drop in market rates. The average lending rate for the financial investment of all deposits (both demand and term) amounted to 1.25% in Q1 2017 compared to 1.42% in the same period of 2016.

2 Costs related to commercial initiatives booked in Net interest income as linked to current accounts

Compared to the fourth quarter of 2016, higher net fees from trading and order collection for financial instruments (+2.7% q/q) and net fees for asset management products and financial advisory (+3.3% q/q) were recorded. These were offset by lower net commissions for payment systems and higher passive commissions for financial advisors mostly due to the expected annual bonus matured in the period.

The increase compared to Q1 2016 is mainly due to the higher net commissions for asset management products and financial advisory (+15.9% y/y).

Commissions for asset management products and advisory recorded an increase compared to both Q4 2016 and Q1 2016 owing to the continuous increase in AuM inflows and in the percentage of Guided Products & Services on total AUM, equal to 59% as at March 31st, 2017, compared to 56% of the previous quarter and to 47% of the same period last year.

€60.2 million of the first three months of 2016 (+0.8% y/y) thanks to the Bank's strong operating leverage. Comparison with Q4 2016 (+9.8% q/q) reflects the typical seasonal factor and it is mainly attributable to contributions paid for the activity of Financial Advisors. Contributions to the ENSARCO Foundation have a fixed annual limit that is mainly filled in the early months of the year, while contributions to the FIRR termination compensation fund entail decreasing rates as specific thresholds are reached. The cost/income ratio was 42.80%.

The Profit for the period amounted to €51.7 million in Q1 2017, marking a 4.5% increase over the €49.5 million recorded in Q4 2016, and a 0.9% increase over the €51.2 million recorded in Q1 2016. Net of profit

Interim Financial Report at March 31, 2017 - Press Release

deriving from the sale of government securities for €5 million in Q1 2016, the profit for the period rose by 8.0% y/y.

Shareholders' equity amounted to €732 million and includes the net profit for the year 2016 distributed to shareholders' in April 2017, which totalled €170.2 million.

The Bank confirms its capital strength with a CET1 ratio (transitional) at 22.24% (22.94% at year-end 2016). The Total capital ratio (transitional) came to 22.24% (22.94% at year-end 2016).

The leverage ratio was 7.89% (8.26% at year-end 2016) and was calculated in accordance with EU Delegated Regulation 2015/62 of October 10, 2014. As required by Circular No. 285 of the Bank of Italy, Part Two, Chapter 12, Section III Exercise of national discretion, exposures to the UniCredit Group companies based in Italy and weighted at 0% pursuant to Article 113, par. 6 of the CRR have not been included in the calculation of total exposure, in accordance with Article 429 (7) of the CRR amended by the Delegated Regulation (EU) 2015/62.

No significant events were recorded after during Q1 2017 and after period end.

During the Q1 2017 it is worth mentioning the reinforcement of the Credit area. In particular, the new offer of residential mortgages, which has completed FinecoBank's range of products within the "one-stop solution" model, has been much appreciated by customers. Moreover, the new Rolling Lombard has been launched during the current month, allowing to change pledged assets without closing and re-opening the credit line.

Fineco is ready to extend its services to UK residents, as the "Family and Friends" initiative launched in the month of April is over.

Within the Investing area, it is noteworthy the re-launch of Private Banking, with the aim to strengthen even more the positioning of the Bank in that segment.

As for Asset Management, FinecoBank is considering the opportunity and feasibility to integrate the existing business model with the constitution of a management house within its own holding perimeter.