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GRUPPO CREDEM PRESS RELEASE CREDEM , 1H2021 CONSOLIDATED RESULTS : GROWTH OF NET INCOME + 75.1 % , LOANS + 8.9 % ( NEW MORTGAGES + 42 % ) AND DEPOSITS + 15.5 % The Group confirmed its role as accelerator of the Country's economic recovery with strong focus on sustainability , innovation and digitalisation RELEVANT PROFITABILITY AND STRONG VALUE GENERATION Consolidated Net Profit of € 136.4 million ( + 75.1 % compared to June 2020 ) after the disbursement of € 23.9 million contribution to the funds to support distressed banks and € 16.8 million of integration costs related to the merger of Cassa di Risparmio ; • Annualized ROE ( 1 ) 8.8 % , annualized ROTE ( 2 ) 10.2 % . CAPITAL SOUNDNESS AND ASSET QUALITY • Indicators at the top of the Industry in Italy and Europe to protect customers and the market : Banking Group Common Equity Tier 1 Ratio ( 3 ) at 15.99 % , Credemholding Common Equity Tier 1 Ratio ( 3 ) ( prudential perimeter ) at 14,38 % compared to the minimum 7.56 % assigned by the ECB ( 4 ) ; • More than € 1.1 billion margin on regulatory capital requirements ; • low incidence of non performing loans , at 2.6 % of loans ( Gross NPL Ratio ( 5 ) ) compared to the 4.06 average % of Italian banks ( 6 ) . • positive contribution of loan loss provisions due to a recovery on provisions ( collective write- down ) thanks to better macroeconomic expectations ( annualized cost of risk ( 7 ) at -10 bps ) ; ⚫ capital soundness confirmed by the outcome of the stress test conducted by the European Central Bank which values Credem as the Italian bank with the lowest impact in case of economic adverse scenario ACCELERATOR OF ECONOMIC RECOVERY • • Loans to customers ( 8 ) at € 29.8 billion , + 8.9 % YoY ( almost 3X the Industry ( 9 ) up by 3.2 % ) ; New residential mortgages inflows at € 1,105.8 million in the first half ( + 42 % YoY ) ; Launch of a Corporate Venture Capital for research and investment in innovative ( fintech ) companies with high growth potential Project for the creation of a single digital portal for the management of credit support services and business operations COMPETITIVE BUSINESS MODEL COHERENT WITH THE CUSTOMERS ' NEEDS • More than 45,000 new customers ( 10 ) ; development of the bancassurance model : client assets ( 8 ) + 15.5 % to € 83.7 billion of which AUM + 17.3 % to € 32.2 billion , insurance products + 12.3 % to € 8.2 billion ; ongoing development of the distribution network of the bank ( 10 ) ( 499 including branches , business centers and assistance structures for small businesses ) with loans and deposits up by + 13 % YoY . The network of financial advisors , which consists of more than 530 professionals , recorded a 23.5 % increase in loans and deposits ; Development of a strategic project of the service model to achieve , by 2022 , 50 % of branches with automated cashiers and over 90 % of the transactions executed independently by the customer ; 1