Credem, 1Q24 results approved: net profit at eur 160.9 million (+19.4%)

PRESS RELEASE

CREDEM, 1Q24 RESULTS APPROVED: NET PROFIT AT €160.9 MILLION (+19.4%), MORE THAN 45,000 NEW CLIENTS

SUSTAINABLE

VALUE FOR

CUSTOMERS

AND

SHAREHOLDERS

COMMERCIAL

BANKING

EXTENDED

BANKING

SERVICES,

CONSUMER CREDIT AND TECHNOLOGY

PRIVATE

BANKING

WEALTH

MANAGEMENT

ROBUST AND CONTINUOUS GROWTH

• Consolidated Net Profit at €160.9 million (+19.4% compared to the same period of the previous year), after the disbursement of more than €32 million in contribution to funds to support distressed banks;
• annualized ROE(1) 17.5%, annualized ROTE(1) 20.1%;
• Operating Income at €525.3 million (+11.3% compared to the end of march 2023).

SOUNDNESS

• Ratios at the top of the industry in Italy and in Europe to protect customers and the market: Banking Group Common Equity Tier 1 Ratio(2) at 15.9%, Credemholding Common Equity Tier 1 Ratio(2) (prudential perimeter) at 14.6% compared to 7.60%, the minimum assigned by ECB(3);
• more than €1.4 billion of margin on regulatory capital requirements;
• low Gross NPL Ratio(4) equal to 2.0%, compared to 2.7% average of Italian banks(5) and to 2.3% average of European banks(5). Net NPL Ratio at 0.8%;
• annualized cost of risk(6) at 3 bps, best in class in the Industry.

BUSINESS DEVELOPMENT AND SUPPORT FOR THE ECONOMY

• More than 45,000 new clients(7);
• Loans to customers(8) at €34.6 billion, +2.2% YoY (more than 5 p.p. compared to the Industry(9), down by 3.1%);
• €52.7 billion of indirect funding from customers (+11.6% YoY);
• Direct funding from customers stood at €36.9 billion (-0.5% YoY(8)).
• Commercial Banking(10): reached €55.4 billion of funding (+6.1% YoY) and €25.6 billion of loans (+0.1% YoY).

●Credemleasing reached €245 million of new contracts;

●Credemfactor recorded €1.127 billion of new gross receivables sold (turnover);

• Avvera: remarkable contribution in new clients acquisition for the Group
  (approximately 17,000 new clients) and €503 million of new loans granted and brokered;
• Credemtel, in 1Q24, recorded a positive growth trend with total revenues of more than €10 million (+9.86 % YoY).
• Credem Euromobiliare Private Banking (CEPB), at the end of March 2024 reached a total business (AUM, AUC, direct funding and loans) equal to €41.7 billion, 77 branches and financial centres present on the national footprint and 655 professionals. 1Q24 Net Profit stood at €17.9 million.
• At the end of March 2024 approximately 56% of AUM and insurance funding of the Group was promoted by the Wealth Management area.

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PRESS RELEASE

INNOVATION

VALUE FOR

PEOPLE

SUSTAINABILITY,

VALUE AND

WELFARE FOR

THE COMMUNITY

Total assets relating to investment products and services with ESG characteristics(11) reached €9.4 billion (+17% compared to the4 same period of 2023);

• ongoing the adoption of the new financial and wealth advisory model which uses an innovative technological platform.
• "Officine Credem" was inaugurated in Reggio Emilia in March 2024, the new place dedicated to the Group's innovation;
• Ongoing development of the digital services to facilitate the relationship between banks and customers and investments in the IT platform.

●more than 85% of employees with a agile working contract;

●continuous training, even remotely, with approximately 5,200 days provided;

●70 new hires to support the growth of the Group.

• 2023 Non Financial Disclosure published at the end of March 2024;
• In March, Opinion Leader 4 Future Observatory, the project on conscious information born from the collaboration between Credem Group Cattolica University, reached the first year of activity.

Today, Credem's Board of Directors, chaired by Lucio Igino Zanon di Valgiurata, approved the consolidated results of the first quarter 2024, confirming the effectiveness of a business model grounded in robust revenue diversification and the ability to sustainably create value and well-being over time for customers, individuals, shareholders, and the community.

1Q24 closed with a consolidated Net Profit equal to €160.9 million (+19.4%), after the disbursement of more than €32 million in contribution to funds to support distressed banks, loans to customers(8) reached €34.6 billion (+2.2% YoY), and more than 45,000 new clients(7), total customers' funding reached €98.2 billion (+6.3% YoY), Gross NPL Ratio(4) stood at 2.0%, compared to 2.7% average of significant Italian banks and to 2.3% average of European banks(5), Net NPL Ratio stood at 0.8% and annualized cost of risk(6) was equal to 3 bps. At the end of March 2024 the Banking Group Common Equity Tier 1 Ratio(2) was 15.9%, Credemholding Common Equity Tier 1 Ratio(2) was 14.6% compared to 7.60%, the minimum assigned by ECB(3), annualized ROTE(1) stood at 20.1% and annualized ROE(1) at 17.5%.

"The first quarter results of 2024 bear witness to the efficacy of the Group's strategy in generating sustainable value, not solely economic, but also social and environmental, within an ever-evolving and intricately complex environment", stated Angelo Campani, Credem General Manager. "Our aim for the upcoming months is to persist in bolstering the nation's economy, aiding families and enterprises in the realization of their endeavors, and in the safeguarding and development of their savings,", continued Campani. "To fulfill our purpose, we shall persist in our investments in innovation, endeavoring to deliver products and services increasingly efficacious and geared toward meeting the clientele's needs. Along this trajectory, we shall rely upon our core values of initiative, trust, and simplicity, and upon the capacity of our people to deploy them adeptly, thereby ensuring a proactive response, as always, to the swift transformations of the context in which we operate", concluded Campani.

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Consolidated economic results(12)(*)

At the end of March 2024 operating income stood at €525.3 million, compared to €472.1 million of the previous year (+11.3% YoY). Within the aggregate, net interest income(13) was equal to €285.6 million compared to €234.8 million of the first quarter 2023 (+21.6% YoY). Non Interest Margin(14)(15) stood at €239.7 million compared to €237.3 million in the same period of the previous year (+1% YoY). In detail, net commission reached €184.4 million (+6.9% YoY) of which €132.1 million in AUM fees (+11.1% YoY) and €52.3 million in banking fees (-2.4% YoY). Contribution from financial activities reached €23 million (-43.2% YoY). Insurance income was €23.4 million (+7.8% YoY).

Operating costs(15) were €221.4 million compared to €206.8 million at the end of March 2023 (+7.1%

YoY). In detail, the administrative expenses amounted to €69.8 million, +10.4% YoY, while staff costs were €151.6 million (+5.6% YoY).

Cost/income(16) stood at 42.1% compared to 43.8% in the first quarter of 2023.

Gross operating profit was €303.9 million compared to €265.3 million in the same period of the previous year (+14.5%). D&A amounted to €26.1 million compared to €24.9 million at the end of March 2023 (+4.8% YoY).

Operating profit was €277.8 million compared to €240.4 million in the first quarter 2023 (+15.6% YoY).

Provisions for risks and charges(15) were €3.5 million compared to €1.3 million in the same period of the previous year. Loan loss provisions(15) were €2.6 million (-38.1% compared to €4.2 million at the end of March 2023). Annualized cost of risk(6) was equal to 3 bps.

Net extraordinary income/charges(15) was -€32.8 million (-€35.7 million at the end of March 2023) including €32.2 million, gross of the tax effect, of the contribution to funds to support distressed banks.

Profit before taxes was €238.9 million compared to €199.2 million in the first quarter 2023 (+19.9% YoY), while taxes for the period amounted to €78.0 million (€64.4 million at the end of March 2023, +21.1% YoY). Consolidated net profit stood at €160.9 million, +19.4% YoY, after the disbursement of more than €32 million in contribution to funds to support distressed banks.

Annualized ROTE(1) was 20.1%, annualized ROE(1) was 17.5%.

Consolidated balance sheet aggregates (8)(*)

Group Customer Funding at the end of March 2024 stood at €98,165 million compared to €92,323 million in the same period of the previous year (+6.3% YoY). Group Total Funding amounted to €113,791 million compared to €104,998 million at the end of March 2023 (+8.4% YoY). In detail, Direct Deposits from customers reached €36,909 million compared to €37,079 million in the first quarter of the previous year (- 0.5% YoY). Group Direct Deposits amounted to €41,504 million compared to €40,167 million at the end of March 2023 (+3.3% YoY). Insurance reserves stood at €8,564 million, +6.6% compared to €8,034 million in the same period of the previous year. Premiums of life and non-lifeprotection products amounted to €21.4 million, in reduction of -5% YoY. Indirect Customer Deposit amounted to €52,692 million compared to €47,210 million at the end of March 2023 (+11.6% YoY). In detail, AUM amounted to €32,130 million

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compared to €31,339 million in the same period of the previous year (+2.5% YoY). Within the aggregate portfolio management accounts amounted to €5,968 million (+1.3% YoY), mutual funds and Sicav amounted to €14,208 million (+4.4% YoY), third-party products and other assets under management amounted to €11,954 million (+1.0% YoY).

The Group's liquidity reserves amounted to nearly €17.2 billion (€16.1 billion at the end of 2023) thanks to approximately 5.3 billion in deposits with central banks (€6.4 billion at the end of 2023) and €11.9 billion in ECB eligible unencumbered assets (9.7 billion at the end of 2023).

Loans to customers grew by 2.2% YoY (compared to the Industry(9) down by 3.1% in the same period) and stood at €34,552 million compared to €33,800 million in the same period of 2023, preserving a strong focus on asset quality. In detail, Residential Mortgages inflows amounted to €251 million (-50.9% compared to the end of March 2023) with a total stock of €10,609 million (+5.0% YoY).

At the end of March 2024, the securities portfolio reached €12,508 million with an average maturity of 4.8 years. Total Italian government bonds amounted to €4.0 billion (approximately 32% of the portfolio), of which 98% in the HTC accounting category, thus reducing further volatility risks deriving from the Btp-Bund spread.

Net bad loans ratio was 0.16% (compared to 0.23% at the end of March 2023) significantly lower than the industry average(9) equal to 1.03%. Gross bad loans amounted to €290.7 million and the bad loans coverage was 80.8% (75.6% in the same period of the previous year). Net NPL was €281.3 million, down by 11.2% compared to €316.9 million at the end of March 2023. Gross NPL amounted to €695.4 million, down by 4.1% compared to €725.1 million in the same period of the previous year. Coverage of total gross non performing loans was 59.5% (56.3% at the end of March 2023); the figure, including the shortfall(17), was 63.5%. Gross NPL Ratio(4) stood at 2.0% (2.11% at the end of March 2023) vs an average of significant Italian banks(5) of 2.7%, and a EU average(5) of 2.3%.

Capital Ratios

Credemholding CET1 ratio(2) stood at 14.6%, at the highest levels of the industry with over €1.4 billion of margin on regulatory capital requirements; 2024 minimum requirement (SREP)(3) assigned to the Group is equal to 7.6%, the lowest among banks directly supervised by ECB. Tier 1 capital ratio(2) was 14.9% and Total capital ratio(2) was 17.3%.Credem is the most solid institution at European level based on the data published in December 2023 by the European Central Bank relating to the capital requirements (SREP) of the banks directly supervised by the Frankfurt authority, with the confirmation of the Pillar 2 Requirement (P2R) at 1%, affirming the effectiveness of the business model and risk management measures(3).

Businesses and activities of the Group

• COMMERCIAL BANKING
• Commercial Banking(10) (415 retail branches, 45 corporate centers, and the network of 521 financial advisors) reached €55.4 billion of funding (+6.1% compared to the end of March 2023) and 25.6 billion of loans (+0.1% YoY). In detail, the network of financial advisors reached €9.1 billion of funding (+11.4% YoY), €777 million of loans (-1.7% YoY) and hired 14 professionals.

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• EXTENDED BANKING SERVICES, CONSUMER CREDIT & TECHNOLOGY
• Credemleasing reached €245 million of new contracts down by 12.7% compared to the last year
• Credemfactor recorded €1.127 billion (-10.4% YoY) of new gross receivables sold (turnover);
• Avvera, company active in mortgages, salary and pension-backed loans and consumer credit, reached €503 million of loans granted and brokered in the first quarter of the year: €150 million of new mortgages brokered, new finalised loans of about €166 million, new salary backed loans equalled to €106 million and finally, new personal loans reached €81 million. Remained relevant the contribution of the company to the acquisition of new clientele for the Group with approximately 17,000 new customers. Furthermore, on January 15, 2024, the company launched Splittypay by Avvera onto the market, a 'Buy Now Pay Later' product that allows customers to split their purchases, made in partner physical stores, into 4 payments.
• Credemtel, the company active in the offer of digital services to businesses and the Public Administration, as at 31 March 2024 recorded a positive growth trend with total revenues of more than €10 million (+9.86
  % YoY).
• PRIVATE BANKING
• Credem Euromobiliare Private Banking (CEPB), the Private Bank of Credem Group, at the end of March
  2024 reached a total business (AUM, AUC, direct funding and loans) equal to €41.7 billion, 77 branches and financial centres present on the national footprint and 655 professionals. 1Q24 Net Profit was €17.9 million; ongoing the strengthening of the professionals network (16 new entries in the first quarter 2024) with profiles boasting solid expertise in the financial sphere, and the enhancement in the specialization levels of channels and support structures catering to high-net-worth clientele.
• WEALTH MANAGEMENT
• Wealth management area of the Group, which includes Euromobiliare Asset Management SGR, Euromobiliare Advisory Sim, Credem Private Equity SGR, Euromobiliare Fiduciaria, Credemvita and Credemassicurazioni, consolidated the adoption of the new financial and wealth advisory model, leveraging an innovative technological platform to assess daily the quality of approximately 350,000 client portfolios holding financial instruments;
• continued the development of a wide and diversified range of investment solutions also with a focus on sustainability; at the end of March 2024, total assets relating to investment products and services with ESG characteristics(11) reached €9.4 billion (+17% compared to the4 same period of 2023);
• during the first quarter of the year, Credemassicurazioni launched the new "Impresa Protetta" policy tailored for artisanal activities and small to medium-sized enterprises, safeguarding them from potential damages to buildings and their contents, covering events of diverse nature and form.;
• Euromobiliare Asset Management SGR introduced two new placement funds starting from February 20th, available at Credem Banca branches and through financial advisors. The Fund incorporates a novel mechanism capable of seizing market opportunities to accumulate the equity component under certain conditions ('buy the dip'). 'Euromobiliare Obbligazioni Valore 2028' is a target date bond fund primarily investing in the bond market with a diversified portfolio comprising over 150 issuances and issuers,

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PRESS RELEASE

predominantly investment-grade. The product is available in both accumulation and income distribution classes;

• In the first quarter 2024, Euromobiliare Advisory SIM recorded a remarkable growth of €173.13 million of new delegated management mandates concerning equity and bond lines composed of securities selected through a dedicated investment strategy ('building blocks'). Furthermore recorded positive flows for €102 million of portfolio management accounts.
• INNOVATION AND DIGITAL TRANSFORMATION
• "Officine Credem" was inaugurated in Reggio Emilia in March 2024, the new place dedicated to the Group's innovation to foster interaction among companies, startups, universities, clients, and civil society following a distributed innovation model (open innovation) and to promote the well-being of the community. The space is designed to enable hybrid work dynamics with external companies and stakeholders. This initiative is part of a broader development program that, with the creation of the new specialized area AINEXT, composed of 20 units and 350 individuals spread throughout the Group, will allow for the integration of expertise in artificial intelligence, data, and information-related technologies, also interacting with external entities involved in innovation;
• digital services: in 1Q24, more than 21 million operations were made by clients through remote channels (96% of the total) and more than 214,000 virtual interactions through customer care (mail, chat, messages and other instruments such as chatbot and voicebot which use artificial intelligence).
• VALUE FOR THE PEOPLE OF THE GROUP
• a the end of March 2024, more than 85% of employees with a smart working contract With the aim of further enhancing the balance between personal and professional life and further valorizing individuals' organizational skills and initiative through the values of trust, simplicity, and initiative;
• approximately 5,200 training hours were delivered in the first quarter of the year to all staff, with a view to fostering professional growth and expanding skills, focusing on regulatory (including cybersecurity), technical, and personal development training;
• furthermore, the hiring process continues with 70 individuals joining the Group as of March 31, 2024. Specifically, these new additions will bolster the network of branches across the national territory, the virtual contact center providing assistance and consultancy via remote channels to clients, and the corporate area dedicated to the development of digital solutions and innovation.
• SUSTAINABILITY, VALUE AND WELFARE FOR THE COMMUNITY
• 2023 Non Financial Disclosure published at the end of March 2024, a synthesis of achieved results aims to anchor value creation within a long-term timeframe, embracing the triple dimensions of environmental, economic, and social sustainability, while involving a broader spectrum of stakeholders. Activities undertaken in 2023 contributed to advancing 11 out of the 17 Sustainable Development Goals (SDGs) outlined in the UN 2030 Agenda. Particularly noteworthy over the three-year period (2020-2023)(18) were accomplishments in the environmental sector, with a reduction of greenhouse gas emissions by 21% attributable to heating and corporate vehicles, a 28% decrease in purchased energy, and a 37% decline in paper consumption and business travel emissions, in the Social sphere, 76% of training was digitally administered, and 86% of employees benefited from active flexible work contracts, and in corporate

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governance, with a 32% increase in stakeholder involvement in assessing company impacts, coupled with a notable 43% of ESG training sessions directed at Board of Directors, extended to Board of Auditors and Group Top Managers, focusing on sustainability themes.

• The first year of activity of the Opinion Leader 4 Future Observatory, a project on conscious information born from the collaboration between Credem and the Catholic University, has achieved significant objectives: 5 research studies, 9 workshops, approximately 100 social media posts, 139 articles, 10,000 interviewees, and over 100 million potentially reached individuals. The project aims to stimulate debate and discussion on relevant dynamics of people's daily lives, thus contributing to the improvement of society as a whole.
• 182 new trees were planted at the end of March 2024, which will absorb 72.1 tonnes of carbon dioxide in the first 10 years of their life. This activity is carried out by the institute in collaboration with Treedom, a B Corporation certified company by B Lab (a non-profitorganization based in the U.S.A.), specialized in reforestation projects and characterized by a platform that allows online tracking of project growth and development. The initiative was started by the institute in 2018, and currently 4,804 trees have been planted for an expected reduction of 792.8 tonnes of carbon dioxide over the next 10 years.

Predictable evolution of management

During the first quarter of 2024, the Group achieved outstanding economic performance: results continue to be supported by favorable interest rate trends and robust development in other income components, fueled by growth in AUM benefiting from a favorable market environment. Moreover, asset quality remains very high. However, the outlook is not without uncertainties; macroeconomic stability appears threatened by various ongoing conflicts, the persistence of which may generate market volatility and impact commodity prices, leading to fluctuations in inflation dynamics that will further complicate the predictability of future monetary policies.

This scenario may have some repercussions on the Group's banking aggregates: the trend in net interest income may be affected by rate contractions, and potentially on the margin of AUM in case of abrupt market slowdowns.

In terms of volumes, deposit growth is expected to continue at rates above market averages, with specialized networks capable of promoting the comprehensive commercial offerings of product companies. There may be a temporary slowdown in lending growth, similar to what major competitors have experienced, pending a more robust recovery in credit demand and corporate investment dynamics. Credit risk is expected to remain generally contained.

The Group is actively engaged in various project areas, from wealth management to corporate banking, with the development of technological innovation initiatives to meet consumers' growing needs for new digital tools. Branches will continue to play a primary role in client advisory and assistance, while the development of an omnichannel offering will also continue.

ESG (Environmental, Social, Governance) themes will also see further acceleration in 2024 following regulatory developments and the Group's participation in the Net-Zero Banking Alliance (NZBA).

***

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PRESS RELEASE

In accordance with paragraph 2 of Article 154-bis of the Consolidated Law on Finance (D. Lgs. 58/98 "Testo Unico delle disposizioni in materia di intermediazione finanziaria"), the Financial Reporting Manager Paolo Tommasini declares that the accounting information, both individual and consolidated, contained in this press release corresponds to document results, books and accounting records.

***

Attached are the individual and consolidated balance sheet and income statement and the reclassified consolidated income statement. The additional periodic financial information referring to March 31, 2024 is not subject to audit. Further information on Credem and the Group companies is available on the website www.credem.it and in the Investor Relations section there is a presentation commenting on the consolidated results as at 31 March 2024.

(*) ALTERNATIVE PERFORMANCE INDICATORS

Credem Group adopts a set of Alternative Performance Measures ("APMs") in order to enhance a deeper comprehension of the information regarding the economic and financial trends. At this linkis available a table illustrating the definition and the calculation of each APM used by the Group, as well as a reconciliation with the lines in the financial reports and related comments.

NOTES:

1. Annualized figures. ROE for the period equal to 4.3%. ROE= net profit/[(previous year's equity + equity)/ 2]. Equity: algebraic sum of valuation reserves (item 120 + item 125), redeemable shares (item 130), reserves (item 150), share premiums (item 160), capital (item 170) - treasury shares (item 180), consolidated profit net of dividends distributed (or approved) by the parent company or in any case by the consolidation company (item 200); ROTE for a period equal to 5.0%. ROTE calculated as net profit/[(tangible equity previous year + tangible equity)/2]. Tangible equity: algebraic sum of valuation reserves (item 120 + item 125), redeemable shares (item 130), reserves (item 150), share premiums (item 160), capital (item 170) - treasury shares (item 180) , consolidated profit net of dividends distributed (or approved) by the parent company or in any case by the consolidation company (item 200) - intangible assets (item 100);
2. by article 11(2), 11(3), and 13(2) of the EU Regulation No. 575/2013 (CRR), banks controlled by a financial holding shall meet the requirements set by such Regulation on the basis of the consolidated statements of the financial holding. In light of these rules on capital ratios, the consolidation perimeter of the Group changed, within the framework set by the prudential supervision. Therefore, capital ratios were calculated on Credemholding, which holds 79.47% of Credem Spa share capital. Pursuant to art. 26(2) of EU Regulation No. 575/2013 of 26 June 2013 (CRR), the net profit for the 1Q was not included in the calculation of the Common Equity Tier1 Capital. Credem
   Group's Periodic Financial Reporting as at 31 March 2024 was not subject to external auditing;
3. see press releaseCredem, the soundest Bank in Europe;
4. calculated as a ratio between Total Gross NPLs, € 695.4 million, and Gross Loans to Customers, €35,052.2 million;
5. source:Supervisory Banking Statistics - Fourth Quarter 2023,NPL Ratio calculated excluding cash at central banks and other sight deposits;
6. calculated as Net value adjustments/write-backs due to impairment of Loans / Loans to customers (without considering the securities component);
7. the figure refers to new customers acquired by Credem, Credem Euromobiliare Private Banking and Avvera;
8. loans do not include repos, in the technical form of repurchase agreements, to the Compensation and Guarantee Fund, and at March 2024 the securities valued

at amortized cost, equal to €6,399.4 million. Repurchase agreements are excluded from total direct deposits, while the contribution of the companies belonging to the banking group is included. Insurance deposits include technical provisions and financial liabilities valued at the fair value of Credemvita. For customer deposits, bonds issued on institutional markets and indirect funding of a financial nature are deducted for all reference periods. Insurance reserves are also included in total customer deposits; finally the counterpart to the capitalization of properties and cars for rent (IFRS16) is excluded for approximately €142.3 million; total net inflows include direct and indirect funding from customers;

(9) source ABI Monthly Outlook April 2024 - Summary;Industry net bad loans on net loans is updated as at February 2024;

1. management data relating to Credem's Commercial Banking Business Unit (415 retail branches, 45 business centers and the network of 521 financial advisors). The figure for loans does not include leasing and factoring;
2. included in the Art. 8 and 9 of the European directive that regulates sustainable investments (SFDR);
3. P&L reclassified figures. The reclassification was performed also considering management accounting figures that could not be directly taken from the financial statements and from the explanatory note. Some reclassifications for the year 2023 related to the introduction of IFRS17 were removed; these reclassifications had been

made

on

the

non-interest

margin

and

operating

expenses

to

allow

for

a

consistent

comparison

with

2022;

1. includes cash-flows from assets at fair value and "Profit/Loss from Equity Investments"and the profits/losses of equity investments valued using the equity method;
2. includes Credemvita Operating Income and "Other operating income/charges" net of extraordinary income/expenses;
3. The recovery of indirect taxes charged to clientele (€31.7 million at March 2024; €28 million at March 2023) was deducted both from Non Interest Margin

and from Operating Costs. The contribution the Single Resolution Fund of €32.2 million at March 2024 (€29.4 million at March 2023) was deducted from Other Administrative Costs; the fee paid to the Single Resolution Fund (€0 million at March 2024, €5.1 million at March 2023) and initially accounted in the Provisions for Risk and Charges, was included in "Extraordinary charges" (portion potentially recoverable and recorded in assets under 'security deposits'); net result from impairment related to financial assets valued at amortized cost and referred to securities (€0.7 million at March 2024, €0.9 million at March 2023) were included in the Non Interest Margin; the result deriving from bad loans and utp disposals was included in "Net adjustments to loans and other financial transactions" (€0.5 million in March 2024, €0.2 million in March 2023);

1. calculated as the ratio between operating costs and operating income, without including the value of depreciation. Calculating the figure as the ratio between (operating costs + depreciation and amortization) and operating income the ratio would be equal to 47.1%
2. shortfall is calculated as the difference between ELBE - Expected Loss Best Estimate (which represents the best estimate of the expected loss for each credit exposure, given its stage and the current economic environment) and Net Adjustments to Loans. The shortfall amount is considered in the calculation of comprehensive coverages

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on Non Performing Loans both in the "Addendum to the ECB Guidance to banks on Non Performing Loans" and in the draft law proposed by the European Commission aimed at introducing minimum coverage on Non Performing Loans;

(18) targets set in 2020 based on 2019 data and finalized in 2023.

Reggio Emilia, 7 May 2024

CREDITO EMILIANO SPA

(Chairman)

Lucio Igino Zanon di Valgiurata

	CONTACTS
Media relations Credem	Investor relations Credem
+39.0522.582075	+39.0522.583076 - 583741
[e-mail]	[e-mail]
	www.credem.it

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PRESS RELEASE

CREDEM - CONSOLIDATED BALANCE SHEET (€,000)

		Assets			03/31/2024			12/31/2023
	10.	Cash and cash equivalents		5,548,177		6,326,610
	20.	Financial assets at fair value through profit or loss		5,215,501		4,981,387
		a) financial assets held for trading		49,160		61,042
		c) other financial assets mandatorily measured at fair value through profit or loss		5,166,341		4,920,345
	30.	Financial assets at fair value through other comprehensive income		9,304,965		8,962,120
	40.	Financial assets at amortized cost		42,291,314		44,465,032
		a) Loans to banks		1,340,187		1,601,177
		b) Loans to customers		40,951,127		42,863,855
	50.	Hedging derivatives		700,539		568,146
	60.	Remeasurement of financial assets backed by general hedging (+/-)		2,339		35,042
	70.	Equity investments		56,857		54,955
	80.	Insurance Activities (former Technical reserves attributable to reinsurers)		13,447		15,362
		b) Reinsurance contracts held that are assets		13,447		15,362
	90.	Tangible assets		450,202		446,995
	100.	Intangible assets		480,713		490,784
		of which
		- goodwill		291,342		291,342
	110.	Tax assets		650,497		631,254
		a) current		183,415		187,114
		b) deferred		467,082		444,140
	120.	Non-current assets and disposal groups classified as held for sale		-		357
	130.	Other Assets		1,026,357		1,039,600
		Total Assets		65,740,908		68,017,644
		Liabilities				03/31/2024			12/31/2023
	10.	Financial liabilities at amortised cost		49,223,398	52,777,314
		a) due to banks		6,106,559	5,786,317
		b) due to customers		38,574,908	42,409,361
		c) outstanding securities		4,541,931	4,581,636
	20.	Financial liabilities held for trading		22,806		27,211
	30.	Financial liabilities at fair value		4,064,190	3,884,977
	40.	Hedging derivatives		708,854	911,206
	50.	Remeasurement of financial liabilities backed by general hedging (+/-)		(83,750)		(52,488)
	60.	Tax liabilities		506,966	403,052
		a) current		183,699	118,155
		b) deferred		323,267	284,897
	80.	Other liabilities		2,711,444	1,635,519
	90.	Provisions for staff termination indemnities		38,686		52,952
	100.	Provisions for risk and charges:		228,290	219,365
		a) commitments and guarantees given		5,080	5,228
		b) pensions and similar commitments		1,098	1,194
		c) other provisions		222,112	212,943
	110.	Insurance Liabilities (former Technical reserves)		4,499,930	4,287,991
		a) Insurance contract liabilities		4,499,930	4,287,991
	120.	Valuation reserves		(105,186)		(115,271)
	150.	Reserves		3,107,721	2,767,249
	160.	Share premium reserve		321,800	321,800
	170.	Share capital		341,320	341,320
	180.	Treasury shares (-)		(6,490)		(6,674)
	190.	Minority interests (+/-)		3	3
	200.	Profit (loss) for the period (+/-)		160,926	562,118
		Total liabilities and shareholders' equity		65,740,908	68,017,644

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