Credito Emiliano S p A : CREDEM, Shareholders Meeting approved 2022 Results

PRESS RELEASE

CREDEM, SHAREHOLDERS MEETING APPROVED 2022 RESULTS

• Consolidated net profit of €317 million, up by 23.4% YoY(1);
• dividend distribution of €0.33 per share (+10% YoY) for a total amount of more than €110 million;
• Credem Group confirmed the soundnest at European level among commercial banks(2);
• The Non-FinancialDisclosure, that summarized the results and activities implemented by the Group within the scope of sustainability, was recently published: in 2022 focus on connections between environment, economy and society.

Today, Credem General Shareholders' Meeting, chaired by Lucio Igino Zanon di Valgiurata, approved the 2022 financial statements.

In detail, the period closed with a consolidated net profit of €317 million, after the disbursement of more than €60 million contributions to funds to support distressed banks. The result was up by 23.4%** YoY(1). The Group confirmed the capital soundness and asset quality that, together with the high profitability, achieved with a strong diversification of the sources of revenues, allowed the distribution of a dividend equal to €0.33 per share (+10% compared to 2021). The total amount of dividends therefore amounted to €112.3 million. The dividend will be payable starting from May 17 2023 with coupon detachment on May 15 2023 and record date on May 16 2023.

"We certainly lived a year full of challenges", Lucio Igino Zanon di Valgiurata, chairman of Credem declared,"in which the Group once again confirmed its ability to generate value and transfer it to the community, maintaining profitability, solidity and efficiency at the top of the Industry. The world around us is changing fast", Zanon continued ,"and the needs of people are rapidly changing and evolving. People, also in the banking sector, are looking for values, which go beyond the protection of savings and support for families and businesses. Our job thus becomes more complex but also more compelling and we want to continue investing to be a reference partner for our stakeholders with whom we want to share objectives and values, to contribute to the well-being of the community as a whole" Zanon concluded.

1

PRESS RELEASE

2022 AT A GLANCE

The results were achieved in a difficult scenario thanks to a diversified and tailor-madeservice model based on the needs of different customer segments. During 2022, the Group continued to invest heavily in the organizational model, in the distribution networks, in the asset management product factories, in people, innovation and sustainability.

In this scenario the Group continued the development of the bancassurance model, which proved to be particularly effective in managing the customers needs, who continued to demonstrate confidence in the Group's ability to protect and enhance their savings. Nearly 130,000 new customers(3) were acquired and net inflows of customers funding(4) in 2022 amounted to €4.4 billion.

During 2022, the Group continued to support the local economy with customer loans(4) which reached €34.5 billion, up by 4% compared to 2021 (+€1.3 billion in absolute value), a growth almost four times higher than the industry average(5) (+1.1% in the same period).

Asset quality remained at the highest levels in the Industry, the Gross NPL Ratio(6) further decreased, despite being already at the top of the market, to 2.1%, compared to 3.15% of the average of Italian significant banks and 2.29% average of European Banks(7) with coverage levels among the highest in the industry.

The Group reaffirmed its strong capital soundness, in favor of all stakeholders, with Banking Group CET1 Ratio(8) at 15.2% despite the strong support to the economy and to the customers' needs. Credemholding CET1 Ratio(8) (prudential perimeter) stood at 13.72% with more than 600 bps compared to the minimum regulatory level (including the additional SREP requirement(2) assigned by the European Central Bank) of 7,56% for 2023. ROTE(9) was equal to 11.5%, ROE(12) 9.8%.

Following completion of the annual Supervisory Review and Evaluation Process (SREP) - communicated by the Group to the market on December 15 - the ECB confirmed the 2023 Pillar 2 requirement (P2R) assigned to Credito Emiliano at 1%, reaffirming the soundness of the business model and of the risk management monitoring system of the Group(2). Therefore, the 2023 total capital requirement amounts to 7.56% for the CET 1 ratio. Tier 1 ratio and Tier Total requirements are respectively 9.25% and 11.5%. In detail, Credem was confirmed as the soundest institution at European level among commercial banks and best in class in Italy within the banks directly supervised by the European Central Bank which gave consent to the publication of aggregated data(2).

Credem Group - 10 years of growth

2

PRESS RELEASE

2013

2014

2015

2016

2017

2018

2019

2020

2021

Growth 10

2022

years

Net income	115.9	151.8	166.2	131.9	186.5	186.7	201.3	201.6	352.4	317	+173,5%
(€ million)
Operating
Income	995.3	1,068	1,127	1,106	1,148	1,157	1,204.5	1,202.1	1,336.7	1,472.9	+48%
(€ million)
Loans	19,938	21,508	22,649	23,687	24,720	25,497	26,684	29,299	33,156	34,483	+73%
(€ million)
Customer's
funding	55,369	62,801	69,254	73,989	79,023	76,995	84,559	92,062	104,911	101,946	+84.1%
(€ million)
											+382
CET1 Ratio	9.9%	11.1%	13.5%	13.2%	13.3%	12.7%	13.5%	15.59%	13.7%	13.72%	basis
											points
Dividend	0.12	0.15	0.15	0.15	0.2	0.2	--(*)--	0.2	0.3	0.33	+175%
(€ per share)

People

5,609

5,763

5,899

6,068

6,140

6,195

6,202

6,219

6,608

6,616

+18%

(*) dividend not distributed following ECB recommendations valid for the whole banking system

NON-FINANCIAL STATEMENT: IN 2022 FOCUS ON THE CONNECTIONS BETWEEN THE ENVIRONMENT, THE ECONOMY AND SOCIETY

Credem published the Consolidated Non-Financial Statement (DNF) which summarizes the results and activities implemented during 2022 in the field of sustainability.

Principles of Governance:

• important involvement of collegial bodies in the analysis, assessment and objects of sustainability issues;
• 75% of board training sessions (board induction) focused on environmental, social issues and, more generally, consistent with the topics reported in the NFS;
• ESG (Environmental, Social, Governance) assessment criteria introduced in remuneration policies.

3

PRESS RELEASE

Planet:

• progressive integration of environmental and climatic risks into the Group's business model through an initial set of specific indicators within the framework of the Risk Appetite Framework;
• reduction, compared to 2019, of 10% of energy consumption within the organization, of 18% of direct emissions produced by buildings and company cars (Scope 1), of 24% of indirect emissions resulting from the generation of purchased electricity and heating (Scope 2 Location Based) and 42% of emissions limited to indirect emissions attributable to the Group's activity and relating to business travel and paper consumption (Scope 3). The objective of achieving carbon emissions neutrality in the areas defined as Scope 1 and 2 by 2025 by offsetting residual emissions through an equivalent number of certified carbon credits was confirmed;
• the development of the "Credem forest" continued in 2022 as well. A total of 3,542 trees were planted, which will absorb almost 400,000 kg of CO2 over the course of 10 years of life.

People:

• the Charter on Equal Opportunities promoted by the Sodalitas Foundation was signed to contribute to the fight against all forms of discrimination in the workplace and to enhance diversity within the company organization;
• the Top Employer certification was confirmed for the seventh year in a row, certifying the best working conditions for employees and, the Equal Salary certificate was confirmed for the third consecutive year, certifying equal pay between women and men;
• More than 85% of employees have a remote working contract;
• More than 40,000 days of training provided (over 6 days per capita on average).

Prosperity:

• 85% of the economic value generated was distributed to the Group's stakeholders: 49% to employees and collaborators, 26% to the public administration through taxes and contributions to international, national and local funds, in support of society and the communities in which the Group operates, 16% to suppliers, 8% to shareholders and the remaining share to the environment and the community;
• assets invested in sustainable investment products amounted to almost €8 billion, equal to 29% of total managed and insurance assets of the Group's product factories and the number of ESG products increased from 4 products in 2019 to 34 products in 2022;
• issue of the first sustainable bond (green senior preferred bond) for an amount of €600 million and placement of a Tier II subordinated social bon (the first issued by a European bank issuer) for an amount of €200 million;
• the continuous and structural nature of financial education activities in primary and secondary schools and universities was confirmed through collaboration with the Foundation for Financial Education and Savings (Feduf).

4

PRESS RELEASE

In accordance with the supervisory provisions, the General Shareholders' Meeting approved the Group's remuneration policies carried out in 2022 and proposed for 2023, which define the criteria and the terms of the compensation schemes designed for board members, employees and staff of Credito Emiliano and all the controlled companies. The share-based compensation plans for key personnel were also approved, the details of which were communicated on March 24 and can be consulted on the website www.credem.it. In detail, the remuneration plans, in line with the long-term corporate values, strategies and objectives, are linked with corporate results, consistent with liquidity and capital levels needed to face the activities undertaken and, in any case, such as to avoid distorted incentives that could lead to regulatory violations or excessive risk-taking for the Bank and the Group.

***

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.

For additional information about Credem and the other companies in the Group, please visit www.credem.it.On the Investor Relations page it is available the presentation of 2022 consolidated results.

(*) 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 the following linka table illustrating the definition and the calculation of each APM used by the Group is available, as well as a reconciliation with the lines in the financial reports and related comments.

NOTE

1. YoY change calculated on 2021 net profit excluding the positive effects of badwill for €95.6 million. 2021 net profit including badwill was equal to €352.4 million;
2. Credem was the most solid commercial bank in Europe and the best in Italy based on the publication of data relating to capital requirements (SREP) released by the relevant banks supervised directly by the Frankfurt authority. The requirement taken into consideration is the Pillar 2 Requirement (P2R) which for the Credem Group is equal to 1.0%, the best parameter in Italy and in first place in Europe among commercial banks within the panel of directly supervised institutions from Frankfurt who have given their consent to the publication of data in aggregate form, available at the following link:https://www.bankingsupervision.europa.eu/banking/srep/html/p2r.en.html.See also the press releasesThe Credem Group is confirmed as one of the best banks supervised by the ECB in terms of capital solidityCredem is confirmed as the most solid commercial bank in Europe;
3. the figure refers to new customers acquired by Credem, Credem Euromobiliare Private Banking and Avvera;
4. loans do not include repos, in the technical form of repurchase agreements, to the Compensation and Guarantee Fund, and at December 2022 the securities valued at amortized cost, equal to €7,861 million. Cassa Compensazione e Garanzia repurchase agreements are excluded from total direct deposits, while the contribution of the companies belonging to the banking group is included. Insurance funding includes Credemvita's technical reserves and financial liabilities valued at fair value. For customer deposits, bond 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 €133 million;
5. sourceABI Monthly Outlook January 2023 - Summary;the figure for net non-performing loans on net systemic loans is updated to November 2022;
6. calculated as the ratio between Total Gross NPL equal to €735.7 million and and Gross Loans to Customers equal to €34,981.3 million;
7. source:Supervisory Banking Statistics - Third Quarter 2022,NPL Ratio calculated excluding cash balances at central banks and other demand deposit;
8. 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 78.8% of Credem Spa share capital. Pursuant to art. 26(2) of EU Regulation No. 575/2013 of 26 June 2013 (CRR), the inclusion of interim or year-end profits in the Common Equity Tier1 Capital (CET1) is subject to the prior permission of the competent authority (ECB), for which it is required that they shall be audited by the External Auditors.
   Credem Group's Periodic Financial Reporting was not subject to external auditing. The Credemholding's consolidated financial report was subject to limited auditing and only for the purpose of including the "Net Income for the Period'' into the calculation of CET1 Capital, as required by CRR with regards to prudential requirements for credit institutions and investment firms, by Ernest & Young S.p.a. Data and capital ratios of this press release include the interim net income as of 31 December 2022, which was approved today by the Board of Directors. Without including the "Net Income for the period" in the calculation of CET1
   Capital, the CET1 Ratio would have been 13.2%;
9. 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)

5