NET PROFIT OF 14.9 MILLION EURO IN THE SECOND QUARTER OF 2021 (+18% OVER 1Q21) 

TAKING THE NET RESULT FOR THE HALF-YEAR TO 27.4 MILLION (+85% VS. 1H20) 

GROWTH IN VOLUMES, SIGNIFICANT PROFITS FROM DYNAMIC MANAGEMENT OF  DISTRESSED CREDIT, IMPROVEMENTS IN OPERATING LEVERAGE DRIVE THE RESULTS 

2021-25 STRATEGIC PLAN TARGETS PRESENTED IN JUNE CONFIRMED 

➢ Growth Credit Division: highly dynamic quarter with net customer loans rising by 16% over  the previous quarter (+64% y/y) to 1 billion euro and a tangible contribution coming from the  initiatives launched at the beginning of the year 

➢ Distressed Credit Division: strong progression in economic results also thanks to credit  management generating very significant profit from closed distressed credit positions and  investments driven by the dynamism of the Energy sector 

➢ Direct Banking Division: solid operating progress in the development of the new initiatives  envisaged by year end: “New HYPE” and B-ILTY 

➢ Liquidity of 0.8 billion euro and robust capital base with CET1 Ratio of 17.2% (17.6% pro forma) 

Milan, 6 August 2021 – Chaired by Rosalba Casiraghi, the Board of Directors of illimity Bank S.p.A.  (“illimity” or the “Bank”) approved yesterday the illimity Group’s results at 30 June 2021. 

illimity reports solid financial and operating performance in the second quarter of 2021, a strong  foundation to develop the trajectory of achieving its short and medium-long term targets set out  in its 2021-25 Strategic Plan presented on 22 June 2021. 

In detail: 

• net profit for the second quarter reached 14.9 million euro, up by 18% over the previous  quarter. Net profit for the half year totalled 27.4 million euro (14.8 million euro in the first half  2020), corresponding to an ROE1 of ca. 9% on an annualised basis; 

• the generation of new lending and investments remained robust and in acceleration  in the second quarter, driven by corporate lending with public guarantees, factoring and  investments in distressed credit especially in the Energy segment. In total, net customer  loans exceeded 2.3 billion euro at 30 June 2021, a rise of 4% over the first quarter and 32%  

1 ROE – Return On Equity: calculated as ratio between net profit annualised for the period and average half-year equity (1/1-30/6/2021)

1 

over the same period of the previous year; 

• the quarter benefited from the early contribution from the initiatives launched during  2021- capital markets activity for SME customers, illimity SGR, the purchasing of tax credits  arising from the government’s Ecobonus scheme – which led the considerable progress in  fees and commissions, which were up by 76% over the previous quarter; 

• the dynamic management of distressed credit portfolio once again made a significant  contribution to the quarter’s profits, generating income of 26 million euro, of which 3.7  million arising from credit revaluation already recognised in the first quarter; 

• also due to these significant profits, and with a gradual increase in the scalability of the  Bank’s operating structure as business volumes increase, the quarterly Cost income ratio  fell to 58% (62% for the first half year); 

• the Bank made real operating progress in the development of the new initiatives  envisaged in the Plan: a pilot project was launched for B-ILTY, the new fully digital direct  bank designed for small corporates, while the offer of the “New HYPE” is currently being  finalised; 

• the Bank’s risk profile once again proved itself very robust: the CET1 Ratio stood at 17.2%  at the end of June 2021 (17.6% pro-forma including special shares), despite the rise in  volumes; the ratio between gross organic doubtful loans and total gross organic loans to  customers remained at 3%, and would fall to below 1% if the loan portfolio of the former  Banca Interprovinciale is excluded. Liquidity was abundant at approximately 800 million  euro at the end of June 2021. 

Corrado Passera, CEO and Founder of illimity, commented: “We are very pleased with the  results delivered, which confirm the trajectory of reaching the targets for the short and medium-long  term set in the Strategic Plan presented in June. All the growth drivers included in the Plan are  moving in the right direction: the increase in loan and investment activity, the quality of our  portfolios, the scale effect that is becoming increasingly visible and the first sizeable contributions coming from the initiatives launched during 2021. 

In the quarter just ended and in July we also laid real operating foundations for the development of  the initiatives related to the launch of B-ILTY, an innovative digital bank designed for small  corporates, and we are finalising activities for the launch of the “New HYPE”. 

Lastly, with the unanimous vote of our shareholders at the general meeting held at the end of July,  we have added another step to our partnership with the ION Group, which we hope, starting with  the licensing of our IT platform, which we will already benefit from this year, will be extended to new  important collaboration in other areas”.