Banca IFIS (IF) Investor update summary

Strategic transformation and business model update

• Ongoing transformation into an SME and specialty finance banking specialist, aligning with regulatory expectations and risk profile, particularly regarding the NPL business.

• Key milestones include the acquisition of illimity, creation of the Fürstenberg division, and orderly disposal of illimity subsidiaries and assets.

• Board has decided to deconsolidate the NPL business, launching a competitive bidding process for its sale to strengthen capital and accelerate the shift to commercial banking and new services.

• NPL portfolio managed is about €1.5 billion, mainly small tickets unsecured.

• Remaining pharma portfolio is approximately EUR 100 million and is in orderly runoff, reflecting regulatory changes.

Financial guidance and profitability outlook

• 2026 net profit guidance revised down to EUR 100–110 million from previous EUR 170–190 million, excluding NPL deconsolidation effects.

• Main drivers of lower guidance: EUR 30 million in provisions on credit exposures and EUR 40 million in provisions on illimity’s non-core assets, both before tax.

• Prudent provision of €30 million (0.20% of lending assets) made after Bank of Italy inspection.

• Recognition of €70 million in Deferred Tax Assets to aid future capital generation, contributing to CET1 from 2029 onwards.

• Updated guidance does not include potential impacts from the NPL deconsolidation, as the final structure is not yet determined.

Regulatory developments and risk management

• Bank of Italy completed an on-site inspection; final report pending, with proactive voluntary adjustments already made.

• Provisions reflect a more conservative stance on large lending exposures and updated recovery expectations for NPL portfolios.

• Further adjustments may be required once the final inspection report is received.