Intesa Sanpaolo: Consolidated Results as at 30 June 2018

Turin - Milan, 1 August 2018 - At its meeting today, the Board of Directors of Intesa Sanpaolo approved the consolidated half-yearly report as at 30 June 2018 (5). Results for the first half of 2018 reflect the Group's strengths - sustainable profitability and a solid capital position - deriving from a business model that is resilient and well diversified, with a focus on Wealth Management & Protection driven by a client-centric approach involving customers' assets of around €1tn and with financial activities providing natural hedging against the impacts of market volatility on fee-based revenues.

Half-yearly results show that the Bank is firmly on track to deliver on the 2018-2021 Business Plan targets, and achieve a 2018 net income higher than the €3.8bn net income of 2017 (6). They also highlight the Group's continued support to the country, which includes its commitment to become a reference model on social and cultural responsibility:

● net income at €927m in Q2 2018 versus €1,252m in Q1 2018 and €837m in Q2 2017 (6), and €2,179m in H1 2018 versus €1,738m in H1 2017 (6). Adding the net capital gain of around €400m from the Intrum partnership - to be booked by year-end 2018 - to the net income of H1 2018, the result is around €2,580m corresponding to 68% of the €3.8bn net income of 2017 (6).

● gross income up 21.8% on H1 2017 (6);

● operating margin up 17% on H1 2017;

● operating income up 6.1% on H1 2017, in the presence of net flow of customer financial assets directed, in the first half of 2018, towards an allocation limiting the exposure to the high market volatility, with €6.3bn of AuM net inflow and a €7.2bn increase in direct deposits, under which household sight deposits rose by over €10bn;

● high efficiency, highlighted by a cost/income of 49% - a figure that places Intesa Sanpaolo in the top tier of its European peers;

● operating costs down 3.4% on H1 2017;

● net adjustments to loans down 17.9% on H1 2017;

● H1 2018 annualised cost of risk down to 59bps versus the 81bps of full-year 2017;