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COVER PAGE
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3
Summary
Corporate Bodies.......................................................................................................7
Letter from the Chairman to Shareholders...............................................................10
Letter from the CEO to Shareholders.......................................................................13
2025 Consolidated Financial Statements and Report...............................................15
Directors’ Report on the Group................................................................................................................17
General aspects...............................................................................................................................................19
Context.............................................................................................................................................................21
Group KPIs.......................................................................................................................................................35
Group financials and income results..............................................................................................................36
Reclassified quarterly evolution......................................................................................................................63
APM - Alternative Performance Measures.....................................................................................................65
Contribution of operating Segments to Group results...................................................................................68
Banca Ifis shares.............................................................................................................................................90
Significant events during the year...................................................................................................................94
Subsequent events........................................................................................................................................104
Information on major risks and uncertainties and international tensions..................................................106
Business outlook...........................................................................................................................................107
Performance of the Group's main companies.............................................................................................108
Sustainability Statement...............................................................................................................................111
Other information...........................................................................................................................................370
Consolidated Financial Statements......................................................................................................373
Consolidated Statement of Financial Position.............................................................................................375
Consolidated Income Statement..................................................................................................................377
Consolidated Statement of Comprehensive Income...................................................................................378
Consolidated Statement of Changes in Equity at 31 December 2025........................................................379
Consolidated Statement of Changes in Equity at 31 December 2024........................................................380
Consolidated Cash Flow Statement.............................................................................................................381
Notes to the Consolidated Financial Statements................................................................................383
Part A - Accounting policies..........................................................................................................................385
Part B - Information on the Consolidated Statement of Financial Position................................................440
Part C - Information on the Consolidated Income Statement.....................................................................492
Part D - Consolidated statement of comprehensive income.......................................................................511
Part E - Information on risks and related hedging policies..........................................................................512
Part F - Information on consolidated equity.................................................................................................601
Part G - Business combinations....................................................................................................................605
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Part H - Related-party transactions...............................................................................................................611
Part I - Share-based payments......................................................................................................................614
Part L - Segment reporting............................................................................................................................619
Part M - Leasing disclosure...........................................................................................................................623
Country-by-country reporting.................................................................................................................627
Attestations and reports........................................................................................................................631
Certification of the Sustainability Statement at 31 December 2025 in accordance with Art. 81-ter, paragraph 1 of Consob Regulation No. 11971 of 14 May 1999 and subsequent amendments and additions........................................................................................................................................................................633
Certification of the Consolidated Financial Statements as at 31 December 2025 pursuant to article 154-bis, paragraph 5, of Italian Legislative Decree No. 58 of 24 February 1998 and Art. 81-ter of Consob Regulation No. 11971 of 14 May 1999 and subsequent amendments and additions...............................634
Board of Statutory Auditors' report...............................................................................................................635
Independent auditors' report on the Sustainability Statement....................................................................654
Independent auditors' report on the Consolidated Financial Statements..................................................661
Attachments to the Consolidated Financial Statements.....................................................................675
Reconciliation between reclassified consolidated financial statements and consolidated financial statements.....................................................................................................................................................677
Glossary..........................................................................................................................................................682
Company Financial Statements and Reports 2025 Banca Ifis S.p.A........................695
Directors' Report....................................................................................................................................697
General aspects.............................................................................................................................................699
Highlights.......................................................................................................................................................700
KPIs................................................................................................................................................................701
Context...........................................................................................................................................................702
Reclassified financial and income results....................................................................................................703
Banca Ifis shares...........................................................................................................................................718
Significant events occurred during the year.................................................................................................721
Subsequent events........................................................................................................................................729
Information on major risks and uncertainties and international tensions..................................................730
Business outlook...........................................................................................................................................731
Other information...........................................................................................................................................732
Reserve from extraordinary tax on 'extra-profits’.........................................................................................734
Annual profit distribution proposal...............................................................................................................735
Financial Statements.............................................................................................................................737
Statement of Financial Position....................................................................................................................739
Income Statement.........................................................................................................................................741
Statement of Comprehensive Income..........................................................................................................742
Statement of Changes in Equity at 31 December 2025...............................................................................743
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Statement of Changes in Equity at 31 December 2024...............................................................................744
Cash Flow Statement....................................................................................................................................745
Notes to the Financial Statements........................................................................................................747
Part A - Accounting policies..........................................................................................................................749
Part B - Information on the Statement of Financial Position.......................................................................786
Part C - Income statement............................................................................................................................827
Part D - Statement of comprehensive income.............................................................................................841
Part E - Information on risks and related hedging policies..........................................................................842
Part F - Information on equity.......................................................................................................................890
Part G - Business combinations....................................................................................................................893
Part H - Related-party transactions...............................................................................................................894
Part I - Share-based payments......................................................................................................................897
Part L - Segment reporting............................................................................................................................901
Part M - Leasing disclosure...........................................................................................................................902
Attestations and reports........................................................................................................................905
Certification of the Annual Financial Statements at 31 December 2025 pursuant to Article 154-bis, paragraph 5, of Italian Legislative Decree no. 58 of 24 February 1998 and Art. 81-ter of Consob Regulation No. 11971 of 14 May 1999 and subsequent amendments and additions..................................................907
Board of Statutory Auditors' report...............................................................................................................908
Independent auditors' report on the Separate Financial Statements..........................................................927
Attachments to the Separate Financial Statements............................................................................937
Reconciliation between reclassified financial statements and individual financial statements...............939
List of fees and services provided by the independent auditing firm and entities belonging to the independent auditing firm's network............................................................................................................944
Please note that any reference made to the "Company Financial Statements and Reports 2025 Banca Ifis S.p.A." within this document is to be construed as to the "Draft Company Financial Statements and Reports 2025 Banca Ifis S.p.A."; the latter are approved by the Board of Directors and represent the Board of Directors' proposal to the Shareholders' Meeting for approval of the 2025 Banca Ifis S.p.A. financial statements and reports.
The accompanying consolidated and separate financial statements of Banca Ifis S.p.A. constitute a non-official version which is not compliant with the provisions of the Commission Delegated Regulation (EU) 2019/815.
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7
Corporate Bodies
8
9
Corporate offices and Independent auditing firm in office at approval of this document
Honorary Chairman
Sebastien Egon Fürstenberg
Board of Directors
Chairman Ernesto Fürstenberg Fassio
Vice Chairman Rosalba Benedetto
Chief Executive Officer Frederik Herman Geertman (1)
Directors Simona Arduini
Monica Billio
Nicola Borri
Beatrice Colleoni
Roberto Diacetti
Moroello Diaz della Vittoria Pallavicini
Roberta Gobbi
Luca Lo Giudice
Antonella Malinconico
Chiara Paolino
Riccardo Preve
(1) The CEO has powers for the ordinary management of the Company.
Board of Statutory Auditors
Chairman Andrea Balelli
Standing Auditors Annunziata Melaccio
Franco Olivetti
Alternate Auditors Marinella Monterumisi
Emanuela Rollino
General Management
Co-General Managers Fabio Lanza
Raffaele Zingone
Manager charged with preparing the
the Company’s financial reports
Massimo Luigi Zanaboni
Independent Auditors
PricewaterhouseCoopers S.p.A.
Parent company name: Banca Ifis S.p.A.
Name of reporting party: Banca Ifis S.p.A.
Name of ultimate parent of Group: Fürstenberg Scogliera Holding S.A.
Reason for change of name: none
Reporting office: Venice
Legal form: S.p.A.
Country of registration: Italy
Main place of business: Mestre - Venice
Legal and administrative headquarters: Via Terraglio, 63 30174 Mestre - Venice (Italy)
Nature of reporting activity: Credit business
Tax Code and Venice Companies Register Number: 02505630109
VAT No.: 04570150278
Enrolment in the Register of Banks No.: 5508
10
Letter from the Chairman to Shareholders
Ernesto Fürstenberg Fassio
Chairman of Banca Ifis S.p.A.
Dear Shareholders,
2025 was a very important year for Banca Ifis. The Public Takeover Bid (voluntary and all-inclusive) launched for illimity Bank laid the foundations for the further industrial development of the Ifis Group, which today is an even greater point of reference for Made in Italy SMEs and for Italy’s real economy. The success of the public takeover bid – with 100% acceptance – has rewarded our long-term vision.
This result further strengthens our banking Group and once again confirms the market’s confidence in our strategy; it enables us to bring together two complementary businesses and create synergy. The integration of Banca Ifis and illimity Bank represents a significant industrial lever that will enable us to further strengthen our expertise in speciality finance and expand our presence in SME services, thereby accelerating the development of new high-potential business lines, such as asset management through the Fürstenberg brand.
Throughout all phases of the extraordinary transaction, Banca Ifis also maintained the strength of its key capital and financial indicators. The results for FY 2025 demonstrate the resilience of our business model: net profit amounts to 328 million Euro, a significant increase, partly due to the contribution of the newly consolidated entities. The Group’s net banking income reached 789,5 million Euro, with a pro forma CET1 ratio of 13,7%. These levels are in line with our targets and confirm the strength of our capital structure, thanks in part to the long-term commitment of our controlling shareholder. Restoring the market’s trust in us remains a priority: the Board of Directors has resolved to pay out 129 million Euro in dividends, equivalent to 2,12 Euro per share, confirming our ability to generate returns as a challenger bank.
What does the merger of illimity into Ifis entail?
1)Our commitment to innovation is amplified through this native digital bank;
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2)The Ifis Group’s human capital is enhanced through the new and complementary skills of the illimiters and Ifis People;
3)Our commercial offering to SMEs is strengthened through new financial services for businesses, which complement and supplement our credit products, thereby expanding our commercial offering and confirming our industry leadership in the Italian SME sector;
4)Through daily banking, which will be further developed, we will offer our corporate and retail customers a fully digital current account with modern and efficient payment services.
5)The Fürstenberg (Finance For Future) division will also be established, which will offer Italian entrepreneurs, businesses and families the opportunity to invest a portion of their wealth in our new asset management service, using the successful platform of Euclidea SIM, now Fürstenberg SIM.
We have worked to ensure not only organisational integration, but also integration in terms of values and principles, between the Ifis People and the illimiters, leveraging the talents present in both organisations.
A further step in our diversification journey is our entry into private banking for the first time since the Bank was founded 43 years ago, through the acquisition of Euclidea SIM (now renamed Fürstenberg SIM), the first step in the development of the new Fürstenberg-branded business line in the asset management market.
We look to the future with confidence and responsibility: we will continue to invest in strengthening our business and our corporate culture, empowering our people, and making our contribution to the economic and social development of the regions where we operate increasingly integrated.
Also in 2025, we made our mark on the market by launching Ifis Sport, our commercial division entirely dedicated to financing the sport system and developing high social impact projects, in line with our vision of integrating sustainability, in all its dimensions, into our business. Our support for young CONI medallist athletes, through the disbursement of 180 thousand Euro in scholarships (bringing the total disbursed since the start of the partnership to over 800 thousand Euro), and for the Ravano Tournament, Europe’s most important school youth sports event, are just two of the numerous initiatives in which we have participated and which demonstrate a commitment that, year after year, is growing and producing tangible positive impacts on local communities and individuals.
2025 was also the year in which we further consolidated the foundations of our sustainable business model. The increasingly holistic integration of sustainability has enabled us to promote various initiatives in the environmental, social and governance areas, in line with the UN 2030 Agenda and the 17 Sustainable Development Goals. We continued to support SMEs on their path to sustainable transformation, with a particular focus on offering products aimed at the energy transition and promoting sustainable mobility. Alongside these initiatives, we further developed partnerships with European institutions to support investments by SMEs. One example is the 200 million Euro agreement with the European Investment Bank (EIB) to support the development of pharmacies in Italy, with a particular focus on female entrepreneurship and cohesion regions. This initiative is part of a long-standing collaboration with the EIB, which has brought the total investments supported jointly with Banca Ifis since 2019 to 800 million Euro, with the aim of accelerating the sustainable transition of our economy.
The strong global transformations of our time make it increasingly clear that the social sphere must be considered of primary importance in the sustainability strategy of a Group like ours, confirming the distinctive approach we have been taking on these issues for years. This is why, through “Kaleidos”, the Social Impact Lab that develops high social impact projects in three areas - inclusion, culture and territory, and personal well-being - we have made investments in the three-year plan period of 10 million Euro, with which we have implemented more than 60 projects. The support to the Bambino Gesù Children's Hospital
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in the search for innovative therapies to fight malignant tumours of the central nervous system and the support to the Banco Alimentare Onlus Foundation continued in 2025, also involving the Ifis People in corporate volunteering experiences. Also thanks to these projects, for the second year running, we were awarded the prestigious accolade of best ESG programme in Europe in the Small-Mid Cap segment by the independent research company Extel Institutional Investors. Also this year, MSCI further recognised our sustainability positioning, upgrading our ESG rating to 'AAA', the second in the last two years.
Support for medical-scientific research was further strengthened with the renewal of our commitment to the aforementioned Bambino Gesù Children's Hospital and the Veneto Institute of Molecular Medicine (VIMM), enabling the activities of these two organisations to become even more effective. Finally, we ensured the continuation of the activities of the Heal Foundation and its “Taxi solidale” project, which ensures adequate transportation for young patients undergoing treatment at facilities in Rome and Milan. In this area, too, these are just some of the many Kaleidos initiatives we carry out for the benefit of the country’s most vulnerable groups.
Our proprietary impact measurement model, developed in collaboration with the Polytechnic University of Milan, allows us to orient Kaleidos's actions towards increasingly distinctive and valuable projects with objective criteria, quantifying the impact on communities generated by social activities. The results of the measurement showed that, on average, every Euro invested by Banca Ifis in sustainability initiatives generated more than five Euro of economic value for the community.
Last year, we strengthened our commitment to the art world through the numerous Ifis art projects. Our International Sculpture Park welcomed over 8 thousand visitors and was once again recognised as one of Italy’s major corporate social responsibility initiatives. Also in the field of social responsibility, we partnered with Letizia Moratti’s Genesi Association to expand the role of art as a vehicle for social messages. With the aim of creating an increasingly strong bridge between the public and private sectors and expanding access to art, we have undertaken projects of the highest calibre. In Venice, we rescued “The Migrant Child”, one of only two works by Banksy in Italy. This work, which carries a very powerful message of integration and resilience, risked being lost forever due to neglect and the adverse weather conditions in the Venetian lagoon. Thanks to our intervention, from 2026, Banksy’s work will once again be fully accessible to the public. Adopting the same approach, last year we brought the busts by Antonio Canova, which we had restored, to Brera: these were displayed in the renowned Pinacoteca Ambrosiana, creating a corridor of beauty that could be admired by all visitors, even those without a ticket. Last but not least, in Rome, we laid the foundations for the creation of the Mario Ceroli House-Museum, which from next year will also become a point of reference for younger generations seeking to learn about artisan craftsmanship, through workshops led directly by Maestro Ceroli.
2025 was also the year in which we consolidated the initiatives forming part of our ‘social banking’ project: the projects launched in 2024 saw the Group's social agenda increasingly integrated into our way of banking, including in the Npl Segment, ensuring a sustainable approach to customers aimed at their financial re-inclusion. This approach has also been enhanced by new initiatives in the areas of financial education, psychological support and reintegration into the world of work.
All these initiatives allowed us to demonstrate in a concrete and tangible way, even during this financial year, our desire to generate a positive impact on the economy, pursuing the double bottom line approach that is the hallmark of our Bank.
Ernesto Fürstenberg Fassio, Chairman of Banca Ifis S.p.A.
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Letter from the CEO to Shareholders
Frederik Geertman
CEO of Banca Ifis S.p.A.
Dear Shareholders,
For Banca Ifis, 2025 was marked by a solid performance in all major business areas and the completion of strategic transactions that redefine the Group's perimeter. The financial results once again testify to the Bank's industrial strength and ability to generate positive results even in a complex macroeconomic context: consolidated net profit reached 328 million Euro, more than doubled compared to the previous year also thanks to the contribution of extraordinary transactions, while the CET1 ratio stood at 13,7% pro-forma, confirming our solid capital position.
The takeover bid on illimity Bank was a strategic transaction that created a new, stronger and more competitive Group. The takeover bid was successfully concluded, bringing Banca Ifis to 100% of illimity's share capital in September, through the completion of the sell-out and squeeze-out procedures.
The integration of illimity will create value in all areas of the Group: from digitisation of processes to specialisation in corporate credit. A transformation that allows us to look to the future with a new industrial platform that is more complete, efficient and effective, and projected towards growth.
To complete this year of development, we launched our entry into the wealth management market with the acquisition of Euclidea SIM, a fundamental step to further diversify the Group's offer and to enhance, through the Fürstenberg brand, a high-potential and increasingly strategic segment in the Italian financial landscape.
On the business side, 2025 represented a year of acceleration in all business lines. In the Npl Segment, we consolidated our leadership thanks to the contribution of recovery activities and the acquisition of new portfolios during the year, particularly in the first part of 2025, leveraging our industrial expertise in credit management, always with a sustainable approach geared towards the financial re-inclusion of client-
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debtors. At the same time, the Commercial & Corporate Banking Segment continued to benefit from the quality of our network and the growing demand for specialised solutions, with revenues reaching 342 million Euro in the stand-alone segment by 2025, confirming the Group's strong positioning in SME lending.
Among the most significant initiatives of the year was the development of leasing, which was strengthened through commercial partnerships with leading manufacturers of technological and industrial goods, enabling us to offer our customers advanced financing solutions and consolidate the Bank's presence in the digital equipping of businesses. Added to this was the growing contribution of structured finance and value-added services activities, which supported our ability to generate recurring margins, as confirmed by their contribution to net interest and other banking income.
Equally important are the results achieved in sustainability: the Bank has further strengthened its positioning in this area, as confirmed by the ratings obtained from the rating ESG agencies, which saw the second consecutive upgrade by MSCI, leading to a rating of AAA, among the best practices in the sector. In environmental matters, we continued our efforts to reduce greenhouse gas emissions, as also reported in the Climate Report, prepared according to the framework of the Task-force on Climate-related Financial Disclosures (TCFD).
In the social sphere, Kaleidos, the Social Impact Lab set up at the impetus of the Chairmanship, continued its activities in support of the local area with initiatives aimed at financing wide-ranging projects serving communities. The focus on the social sphere is also directly linked to the Ifis People, who have always been at the centre of our strategy, with a particular focus on their growth and development. Precisely in this area, the Ifis Academy has strengthened its offering in 2025 through its collaboration with Digit'Ed: thanks to a five-year agreement, the Academy will consolidate its position as a strategic asset for the Bank's sustainable growth, with the aim of enhancing its distinctive skills in a constantly evolving context. Selected sustainability training content is also offered to SMEs to support their sustainable development path.
Having reached this point, we look forward to 2026 with determination to further enhance the initiatives carried out in 2025, which now allow us to face a new phase in our history with greater strength, aware of the role that Banca Ifis is called upon to play in supporting Italian businesses.
Frederik Geertman, Chief Executive Officer of Banca Ifis S.p.A.
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2025 Consolidated Financial Statements and Report
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Directors’ Report on the Group
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General aspects
The "2025 Consolidated Financial Statements and Report" includes the Consolidated Financial Statements, the related Notes to the Consolidated Financial Statements and this Directors' Report on the Group.
The balance sheet and income statement, within this Directors' Report on the Group, are presented in reclassified form, according to management criteria, in order to provide timely information on the Group's general performance based on aggregated economic and financial data that are quick and easy to understand.
To allow a more immediate reading of the results, a condensed reclassified consolidated income statement is prepared within the Directors' Report on the Group. It should be noted that in connection with the acquisition of control of illimity Bank S.p.A. and Euclidea SIM S.p.A. (the latter subsequently renamed Fürstenberg SIM S.p.A. as from 26 January 2026), finalised respectively on 4 July 2025 and 21 November 2025, and the consequent inclusion in the Banca Ifis Group's scope of consolidation of these acquired companies and, in the case of illimity Bank, also of the other companies belonging to the so-called "illimity Group", the figures as at 31 December 2025 and in particular the economic figures are not fully comparable with those of the previous year. With reference to the illimity Group's and Euclidea SIM's contributions to these economic figures, it should be noted that they relate to the relevant post-acquisition periods (which essentially correspond to the second half of 2025 for the illimity Group and to December 2025 for Euclidea SIM).
However, it should be noted that in the tables and comments to the individual items, the contributions of the illimity Group and of Euclidea SIM are presented, where relevant. In this regard, it should be noted, as detailed later in this document, that the consolidated income statement includes the positive effect of the recognition of the gain on a bargain purchase related to the acquisition of the illimity Group" in the amount of 309,9 million Euro. For more details on these operations, refer:
•to the section "Significant events during the year" in this Directors’ Report on the Group;
•to “Part G - Business Combinations” of the Notes to the Consolidated Financial Statements.
Analytical details of the restatements and reclassifications made with respect to the Consolidated financial statements compliant with Bank of Italy Circular 262 are provided in separate tables published among the annexes (see the section “Annexes to the Consolidated Financial Statements" of this document), also in compliance with the requirements of Consob Communication No. 6064293 of 28 July 2006.
Reclassifications and aggregations of the consolidated income statement concern the following:
•net credit risk losses/reversals of the Npl Segment are reclassified to interest receivable and similar income (and therefore to "Net interest income") to the extent to which they represent the operations of this business and are an integral part of the return on the investment;
•net allocations to provisions for risks and charges are excluded from the calculation of "Operating costs";
•cost and revenue items deemed as "non-recurring" (e.g. because they are directly or indirectly related to business combination transactions, such as the "gain on a bargain purchase" in accordance with IFRS 3), are excluded from the calculation of "Operating costs", and are therefore reversed from the respective items as per Bank of Italy Circular 262 (e.g. "Other administrative expenses", "Other operating income/costs") and included in a specific item "Non-recurring expenses and income";
•the ordinary and extraordinary charges introduced against the Group's banks (Banca Ifis, Banca Credifarma and illimity Bank) under the Single and National Resolution Mechanisms (SRF and NRF) and the Deposit Protection Mechanism (DGS or FITD) are shown under a separate item called “Charges related to the banking system” (which is excluded from the calculation of “Operating costs”), instead of being shown under “Other administrative expenses” or “Net allocations to provisions for risks and charges”;
•the following is included under the single item "Net credit risk losses/reversals":
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–net credit risk losses/reversals relating to financial assets measured at amortised cost (with the exception of those relating to the Npl Segment mentioned above) and to financial assets measured at fair value through other comprehensive income;
–net allocations to provisions for risks and charges for credit risk relating to commitments and guarantees granted;
–profits (losses) from the sale/repurchase of loans at amortised cost other than those of the Npl Segment.
The balance sheet components were aggregated without reclassification.
The financial and balance sheet numerical of the Segments are attributed on the basis of homogeneous allocation criteria in order to take into account both the specificity of the various segments and the need to guarantee effective monitoring of business performance over time.
Moreover, the Segment information in relation to the items of the reclassified income statement shows the results at the level of the net profit.
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Context
The international context and the Italian economy in 2026
The military escalation resulting from the attacks by Israel and the United States against strategic targets in Iran, whose reaction immediately widened the conflict to other countries, is producing significant repercussions on the world economy, with a sudden increase in energy prices and volatility, as well as a surge in scenario uncertainty, as confirmed by the rush towards safe haven assets, primarily gold.
It is not yet possible to make definitive estimates of the size and temporal depth of the economic impact of such recent and constantly changing events. However, as early as the opening of the financial markets at the beginning of March 2026, the first direct consequences can already be seen, with a new strong upward impulse in energy prices that will aggravate an economic framework that has long been laden with uncertainties and lacking expansionary momentum, at least for the Eurozone and Italy. To make matters worse, the blockage of the crucial junction of the Strait of Hormuz, as a key route for oil and liquefied gas, is likely to have a knock-on effect on production sectors and logistics.
That being said, world growth in 2025 remains moderate, with a stable pace compared to 2024: according to the World Economic Outlook (January 2026), global growth is estimated at 3,3%, in line with the increase in 2024. Among advanced countries, growth remains driven by the US (in 2025 at +2,1% according to IMF forecasts in January 2026), while Europe continues on a weaker and uneven recovery path. Last year's forecasts already showed the US holding up with expanding consumption and the Eurozone partially absorbing the 2022-2023 shocks (energy, supply chain) but with weak manufacturing still suffering from still high energy prices. This is confirmed by the European Commission's Autumn 2025 Forecast, which revised the EU bloc's growth upwards from 0,9% to 1,3%, thanks to better performance in the first three quarters.
The European Commission's own data certify the unevenness of the recovery at the individual country level:
•Germany: +0,2%;
•France: +0,7%;
•Italy: +0,4%;
•Spain: +2,9%.
In 2025, even before the Iran conflict, the supply risk in the European gas market remained high, despite more manageable TTF prices. After the rebound in summer 2024, TTF futures showed a gradual stabilisation (2025 forecasts around $12/MMBtu; Kpler, 16 December 2025), but the flow structure continued to be a critical point. The end of Russian transit via Ukraine as of 1 January 2025 reduced European pipeline imports by 9% y-o-y in the first half of last year (IEEFA - EU Gas Flows Tracker, September 2025), while imports of liquefied natural gas increased by 21% (IEEFA, September 2025). At the same time, the geography of contracts became even more concentrated: Europe reached record levels of liquefied gas purchases from the US and Russia in the first half of 2025 (IEEFA - European LNG Tracker, October 2025; cumulative values 2022-June 2025: 117,4 billion Euro USA and 37,5 billion Euro Russia), while regasification capacity growth in 2025 is the lowest in three years (+5,7 bcm compared to +24,1 bcm in 2024; IEEFA - European LNG Tracker, October 2025). This leaves the system more exposed to geopolitical and congestion risks (IEEFA; ACER LNG Monitoring Report 2025), confirming that, even in a more stable price environment, the prospective risk related to flows and contracting remains small but present (Kpler; IEEFA).
The weakness of German manufacturing remains a structural drag on the Eurozone, with Germany showing an expected growth of just +0,2% in 2025 in the Commission's Autumn Forecast after two years of stagnation, confirming a still depressed industrial sector (European Commission - Autumn Forecast 2025). In fact, while industrial production increased by +1,5% in 2025 in both the Eurozone and the EU, once again there is great heterogeneity: on the one hand, the Nordic and Baltic countries are expanding strongly (Ireland, Latvia, Sweden, Greece), on the other hand, the economies of Central and Eastern Europe, which are strongly exposed to automotive cycles and international demand, are contracting. Among the large economies, the picture is varied:
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the overall decline of -1,1% in German industry, confirming its structural difficulties particularly in the energy-intensive and automotive sectors, and -0,2% in Italy, is contrasted by the estimated slight growth in France (+0,5%) and the more lively increase in Spain (+1,3%).
At the same time, the polarisation of trade flows persists: while intra-EU exports show weak and widespread signs, extra-EU flows are more resilient in specific categories, such as machinery, medical and high-tech goods, initially benefiting from the front-loading of shipments to the US in anticipation of possible new tariffs and thus from increased demand from some Asian markets (European Commission - Autumn 2025; ECB Projections 2025). The year 2025 marks a phase of normalisation of activity: services have maintained a positive trend, supported by moderately rising employment and incomes, while manufacturing remains below pre-pandemic levels in several core Eurozone countries, slowed down by still fragile foreign demand and relatively high energy costs (European Commission - Autumn 2025).
Banca Ifis's Npl Market Watch, in its February 2026 edition, shows a Eurozone with M3 growth in 2025 and signs of rebalancing of the credit-deposit circuit: loans to the private sector return as a positive contributor to the money supply, while the restrictive impact of long-term liabilities softens.
The expansion of bank lending in the European Union is supporting the activity of households and businesses, also by fostering the expansion of the money supply.
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In a parallel fashion, monetary normalisation (rate cuts in the two-year period 2024-2025) started to be transmitted to market rates.

Year | Deposit Facility | Main Refinancing | Marginal Lending
2019 | -0,50% (from 18/09/2019) | 0,00% | 0,25%
2020 | -0,50% (unchanged) | 0,00% | 0,25%
2021 | -0,50% (unchanged) | 0,00% | 0,25%
2022 | +2,00% (from 21/12/2022) | 2,50% | 2,75%
2023 | +4,00% (from 20/09/2023) | 4,50% | 4,75%
2024 | +3,00% (from 18/12/2024) | 3,15% | 3,40%
2025 | +2,00% (from 11/06/2025) | 2,15% | 2,40%

Source: Banca Ifis Research Department elaborations on ECB data.
Credit quality provides an important building block for the normalisation path outlined in 2025: the stock of Npe of significant EU banks, which fell to a low in Q1 2023, rises again in 2025 but remains at low levels. Again more relevant is the polarisation between countries. Italy and Spain continued to reduce impaired loans, while France and Germany recorded increases, with strong contributions from the corporate segment and, in Germany, from commercial real estate (referred to as “CRE”).
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The incidence of Stage 2 loans, the forward-looking thermometer of risk in the ECB and EBA's view, also shows higher profiles in Germany (albeit with a slight improvement over 2024) and a slight increase in France. In summary, the Eurozone recovery is advancing, but with asymmetric risks that the credit markets have already started to price in.
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The Italian picture in 2025 could be summarised as 'containment of the weak phase and first pro-cyclical signs'. While services continue on a positive pace, construction benefits from public works (NRRP) that compensate for the downsizing of residential incentives, while manufacturing remains weak in line with the brakes from its European partners and exports suffer from EU markets but show the ability to diversify into certain non-EU outlets, in line with the policy implemented by the Italian government.
GDP and main components
(percentage changes over the previous period and percentage points)

ITEMS | 2024 Q4 | 2025 Q1 | 2025 Q2 | 2025 Q3
Imports of goods and services | 0,2 | 1,1 | 0,4 | 1,2
National demand | 0,3 | 0,0 | 0,6 | (0,3)
National consumption | 0,4 | 0,1 | 0,1 | 0,1
household expenditure | 0,4 | 0,2 | 0,1 | 0,1
general government expenditure | 0,4 | (0,3) | 0,2 | 0,2
Gross fixed capital formation | 1,9 | 1,0 | 1,5 | 0,6
Construction | 1,0 | 1,7 | 1,5 | (0,5)
capital goods | 3,0 | 0,2 | 1,5 | 1,9
Stock variation | (0,4) | (0,3) | 0,2 | (0,6)
Exports of goods and services | (0,3) | 2,2 | (1,7) | 2,6
Net exports | (0,1) | 0,4 | (0,7) | 0,5

Source: Bank of Italy - Economic Bulletin 1/2026
On the business side, the "November 2025 Industrial and Services Business Survey" (Bank of Italy) shows that in the first nine months of the year, the sales balance is, in terms of delta penetration of respondents indicating a positive performance, +18 p.p. (services +30 p.p., manufacturing -4 p.p., but up from the previous survey). Looking ahead, six-month expectations remain positive. The increase in hours worked and, especially in services, in employment continued. On the financial front, the demand for loans shows a positive balance (+4 p.p. respondents applying for loans) and access to credit is assessed as improving by companies; only about 3% judge liquidity to be insufficient to cover operational needs until the end of the year. The investments planned for 2025 were realised by two-thirds of the companies; for 2026 a positive balance (+11 p.p.) emerges between those who foresee an increase and those who foresee a reduction in expenditure, with critical issues concentrated in textiles. The picture is consistent with weak but improving cyclicality and a restarting propensity to invest. The latter is confirmed by Assilea 2025 data on leasing and rental stipulations, products that typically have a tendency to anticipate the business cycle.
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STIPULATED LEASING - 2025

STIPULATED LEASING 2025 | Number | Value(thousand Euro) | Var % Number | Var % Value
Leased cars* | 75.042 | 4.574.217 | (3,5)% | 0,4%
NLT cars* | 346.976 | 10.378.852 | 0,7% | 0,3%
Leased commercial vehicles* | 38.447 | 1.885.742 | 3,8% | 8,9%
NLT commercial vehicles* | 55.263 | 1.518.088 | (1,6)% | (5,8)%
Industrial vehicles | 23.333 | 3.104.326 | 3,6% | 2,5%
Cars | 539.061 | 21.461.225 | 0,2% | 0,9%
Financial instrumental | 92.643 | 9.088.532 | 5,5% | 18,1%
Operational instrumental | 110.486 | 1.463.973 | 4,2% | (0,3)%
Instrumental | 203.129 | 10.552.505 | 4,8% | 15,2%
Air and rail | 302 | 770.484 | 11,4% | 35,7%
Built property | 2.055 | 1.905.502 | (5,1)% | 0,0%
Property to be built | 458 | 1.304.816 | 7,3% | 15,7%
Real estate | 2.513 | 3.210.318 | (3,0)% | 5,9%
Renewable energies | 616 | 140.155 | 36,6% | 6,7%
General total | 745.621 | 36.134.687 | 1,4% | 5,8%

Source: Assilea processing; (*) analysis on data from UNRAE Study and Statistics Centre
In lending to households and businesses, the transmission of the decline in official rates can be observed starting in the second half of 2025: this translates into average rates on new transactions falling back to 2024 levels, and supply conditions perceived as more favourable. The 'Economic Survey of Industrial and Services Enterprises' (Bank of Italy, November 2025) found that the recovery of credit access conditions continued in all size classes of companies: 70% of companies assessed supply conditions as stable in the first half of 2025 and 24% reported an improvement (from 15% in the survey on the first half of 2024), driven above all by the fall in interest rates. This perception of the respondents, however, may be influenced by the ample liquidity in the system: the same Bank of Italy periodic survey indicated that almost three quarters of companies declared more than enough liquidity to cover operational needs until the end of the year, only 3% rated it as insufficient.
The scenario for 2024 showed the decline in rates on deposit accounts and loans between mid- and end-2024. The most recent signals (November 2025) are consistent with this trend for Italy. In summary, financial normalisation took shape in 2025.
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Observation date | Loans to non-financial companies(% of amount disbursed)
June 2024 | 5,26
July 2024 | 5,28
August 2024 | 5,13
September 2024 | 4,90
October 2024 | 4,70
November 2024 | 4,53
December 2024 | 4,40
January 2025 | 4,13
February 2025 | 3,99
March 2025 | 3,92
April 2025 | 3,76
May 2025 | 3,66
June 2025 | 3,60
July 2025 | 3,50
August 2025 | 3,39
September 2025 | 3,38
October 2025 | 3,53
November 2025 | 3,52

Source: Bank of Italy database - item MIR0200.
The quality of credit in the Italian banking system remains historically good: the deterioration rate is low and projections indicate a stock of bank Npe at the end of 2025 in the order of around 48 billion Euro, with the Npe ratio around 2,6% and a further decline to around 2,4% by 2027. Critical issues remain sectoral (peaks in construction, trade, hospitality) and, on the corporate side, a slight deterioration in industry, but no systemic wave is visible thanks to the quality of credit provided by banks and the activity of the Npl portfolio transaction market.
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2026-2027 prospects
The year 2026 opens with three macro risks to guard against:
•The first concerns the consequences of the joint Israel-US attack on Iran, in light of our country's known energy vulnerability. In fact, the Conflavoro research office estimates the risk of an economic backlash for Italian companies and families of up to 33 billion Euro in six months in the scenario of a prolonged blockade of the Strait of Hormuz;
•the second relates to 'two-speed Europe': if Germany and France were to suffer prolonged weakness in manufacturing and corporate real estate (referred to as “CRE”), spillovers on European suppliers and funding markets could delay the recovery cycle. The evidence on corporate Npe and German CRE in 2025, while not alarmist, needs to be monitored, as it reflects a combination of higher real estate prices, depreciations and capital absorption;
•the third is trade geopolitics: the Bank of Italy's statistical information systems detect, at the moment, moderate impacts of US duties on 2025, but among companies exporting to the US, the share reporting a reduction in sales rises to 45% of the sample. The risk that a high degree of political volatility remains, therefore, inherent in 2026, especially for foreign-oriented B2B supply chains.
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Year-on-year GDP growth - estimates for World and major economies

Area / Country | 2026 | 2027
World | 3,3% | 3,2%
United States | 2,4% | 2,0%
China | 4,5% | 4,0%
India | 6,4% | 6,4%
Japan | 0,7% | 0,6%
Eurozone | 1,3% | 1,4%
European Union (EU 27) | 1, 5% | 1,6%
Germany | 1,1% | 1,5%
France | 1,0% | 1,2%
Italy | 0,7% | 0,7%
United Kingdom | 1,3% | 1,5%
Brazil | 1,6% | 2,3%

Source: Banca Ifis Research Department processing of IMF data.
Prior to the aforementioned conflict in Iran, at the EU level the combination of rising M3, inflation towards targets and a falling cost of money outlined an extended soft landing scenario, but with the aforementioned asymmetry requiring the calibration of economic policy and macroprudential supervision. The forecast trajectories for the Eurozone indicated moderate growth acceleration between 2026 and 2027.
For Italy, in particular, a moderate recovery was expected in the two-year period 2026-2027: consumption improving thanks to cooling prices and falling rates, exports rising but selective for markets and sectors, and investments conditioned by the recomposition of incentives and greater financial discipline. The public component of the NRRP would continue to support works and digitisation, with spill-over effects on productivity and private demand. In the financial system, the normalisation of the curve could have reduced the average credit cost, facilitating the refinancing of borderline positions and the early workout on Stage 2s, containing asset quality risks.
As for Italy, on the other hand, projections indicate a moderate recovery in 2026-2027, driven by consumption, with investments conditioned by the new incentive equation and normalising capital costs.
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GDP growth and inflation in Italy (percentage change over previous period)

ITEMS | GDP(1) | Inflation(2)
2025 | 2026 | 2027 | 2028 | 2025 | 2026 | 2027 | 2028
IMF (January) | 0,7 | 0,7 | - | - | - | - | - | -
IMF (October) | 0,5 | 0,8 | 0,6 | 0,7 | 1,7 | 2,0 | 2,0 | 2,0
Istat (December)(3) | 0,5 | 0,8 | - | - | 1,7 | 1,4 | - | -
Bank of Italy (December) | 0,6 | 0,6 | 0,8 | 0,9 | 1,7 | 1,4 | 1,6 | 1,9
European Commission (November) | 0,4 | 0,8 | 0,8 | - | 1,7 | 1,3 | 2,0 | -
OECD (December) | 0,5 | 0,6 | 0,7 | - | 1,8 | 1,7 | 1,8 | -
UPB (October) | 0,5 | 0,4 | 0,8 | 0,6 | 1,8 | 1,8 | 1,8 | 1,8

Source: IMF, World Economic Outlook, January 2025; IMF, World Economic Outlook, October 2025; Bank of Italy, Macroeconomic Projections for the Italian Economy (Eurosystem coordinated exercise), 19 December 2025; European Commission, European Economic Forecast. Autumn 2025, November 2025; OECD, OECD Economic Outlook. Resilient Growth but with Increasing Fragilities, December 2025; Parliamentary Budget Office (UPB), Hearing of the President of the Parliamentary Budget Office as part of the hearings prior to the examination of the Public Finance Planning Document 2025, October 2025.
(1) The growth rates indicated in the Bank of Italy and OECD forecasts have been corrected for the number of working days. Without this correction, GDP is projected to grow by 0,5% in 2025, 0,7% in 2026, 0,8% in 2027 and 0,7% in 2028.
(2) Measured on the HICP. The UPB forecasts refer to the consumption deflator.
(3) Deflator of resident household expenditure.
This moderately positive trend will, however, be tested by the significant rise in energy costs: in the first days of March 2026, the quotations of Wti (the standard oil for the US market) and North Sea Brent oil rose by between 8% and 9% at the opening of the markets, with the barrel of oil touching 80 US Dollar. Analysts at EU Perspectives predicted that the price of Brent crude oil could rise to between 120 US Dollar and 140 US Dollar per barrel in the short term, driven not so much by actual supply losses as by risk assessment, delays and perceived threat. The sharpest leap, however, is that of gas prices: in Amsterdam, the Ttf index quotations in the early afternoon of the first post-attack trading day had risen 45% to 46 Euro per megawatt hour, the highest since February 2025; at the same time, futures for May 2026 rose 41,3% to 44,53 Euro and those for June 2026 by 37,7% to 42,99 Euro within a few hours.
Reference markets
Corporates
The scenario of the Italian business sector was elaborated on the basis of the most recent data from the Bank of Italy, taken from the Economic Bulletin 1/2026, the "Economic Survey of Industrial and Service Enterprises" of autumn 2025, and Banca Ifis's Market Watch Pmi Italia in October 2025.
All the sources analysed agree on two fundamental characteristics of the Italian business trend: resilience and sectoral heterogeneity (the latter also referred to as 'leopard-spot').
The Market Watch shows that SMEs have kept their overall turnover almost unchanged (-0,4% estimated change 2025 compared to 2024), but with strong differences by sector: from the positive performance of technology and chemical/pharmaceutical companies or the resilience of mechanics to fashion and automotive, for example, whose market positioning has suffered.
The Italian manufacturing sector is still expanding investments, driven by transformation: about 1 in 4 companies is increasing investments in 2025 and plans to do so also in 2026. Strong focus on sustainability and digital/tech (cloud/IoT/IA). The Bank of Italy, which calls investment an 'anchor' for Italian companies, points out that it is
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supported by favourable financial conditions, incentives and the impact of the NRRP, with an emphasis on process and product innovations.
The employment market remained favourable for companies: in the first nine months of 2025, the balance between companies reporting an increase in hours worked and those indicating a decrease was +12 percentage points, although down from 16 in 2024. In general, employment continues to grow, more in services than in manufacturing.
Profitability was high on the whole: in 2025, around 80% of industrial and service companies expect to close the year in profit. Even among the companies reporting negative effects of tariffs or trade tensions, three quarters still expect a positive bottom line.
Despite the economic slowdown, global uncertainty and still high market rates (albeit improving compared to the past), there was no systemic liquidity scare in 2025, with surveys showing stable/improving liquidity for 88% of SMEs. At the same time, the Bank of Italy's Economic Bulletin points out that it is costs and demand that determine the main tensions, rather than liquidity.
Overall, the outlook for 2026 remains moderately positive, both in financial and economic terms, but conditioned by geopolitical and trade uncertainty. The latter is also linked to a potential competitive challenge: the increased influx of Chinese products into the target markets of Italian companies.
The risks are mainly external: energy, geopolitics and international trade. While a fragile climate related to US trade policy and geopolitical tensions was already emerging before the conflict with Iran, the actual occurrence of this 'external shock' has changed the risks from potential to actual. In Europe, and in Italy in particular, the repercussions on businesses could be immediate: with over 90% of gas and oil imported from abroad, our country is one of the most exposed to energy shocks. According to initial estimates, a 10-15% increase in the price of gas could translate into similar increases in the cost of electricity, directly affecting budgets and further squeezing industrial margins already eroded by the previous energy crisis in 2022-2023.
Non-performing loans (Npls)
In 2025, as already extensively argued, the European macroeconomic environment showed signs of gradual stabilisation: GDP improved again, inflation converged towards more moderate levels and the money supply (M3) continued to grow. On this basis, an impaired credit market still heterogeneous across the EU countries. For the EU as a whole, the stock of Npe amounts to 374 billion Euro (+ 17 billion Euro compared to Q1 2023), with an Npe ratio of 1,84% and essentially stable in 2025.
The deterioration affected both corporations and households, but only corporate also deteriorated when compared to loans. Compared to Q2 2025, the Spanish stock decreased thanks to the contribution of households (-1,2 billion Euro) while the increase in impaired loans in France and Germany was driven by the corporate segment (+1,8 billion Euro and +0,7 billion Euro, respectively). Real estate is the main critical segment in Germany, while the trade and business services segments are added in France.
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Stage 2 loans show, as illustrated above and focusing on the four main countries as stock of impaired loans, higher prospective risks in Germany and relative stability in France, against a reduction in Italy and Spain.
In Italy, the deterioration is being contained. Compared to the September 2025 edition, the forecast improves by 2-3 basis points due to the more favourable macro scenario. Industry shows a slight increase in the default rate, while construction, trade and hospitality remain the most vulnerable sectors. The Npe stock is estimated at 48 billion Euro at the end of 2025, with an Npe ratio at 2,6% and a further decline expected to 2,4% by 2027.
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Gold recently crossed the 3.420 Dollar an ounce mark, a sign that investors are rapidly abandoning risky assets and reducing available liquidity in global markets, potentially affecting the cost of capital for companies. This is an important signal, in addition to the already evident rise in energy costs and the increase in volatility and uncertainty, which calls for a cautious assessment of the flat forecast of the riskiness of households and, above all, businesses.
The Npe transaction market remains dynamic: 22 billion Euro was transacted in 2025, in line with previous estimates. Transactions are increasingly oriented towards granular and unsecured portfolios, while the secondary market, while maintaining its relevance, drops to 47% of the total (-10 p.p. compared to 2024).
All in all, more than 100 billion Euro has been invested in the Npe market between 2015 and 2025, with a significant increase in the ratio of market value to GBV, a sign of a supply chain that has believed in the potential of this market and continues to work from an industrial perspective.
Moreover, the structural reduction of the impaired stock continues: between the 2015 peak and 2027, the expected cumulative decline reaches 109 billion Euro, confirming the effectiveness of the management, restructuring and divestment strategies adopted in recent years.
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The phenomenon of the disposal of the total impaired loan stock (banks and investors) of the Italian system was boosted by the final 2025 data, which show, in comparison with last September's forecasts, an improvement in the collection capacity, with the percentage of recoveries rising from 3,1% to 3,8%, indicating a greater effectiveness of recovery processes. At the same time, the weight of court actions decreased, with the incidence falling from 74% to 71%, signalling a progressive orientation towards out-of-court solutions.
Finally, the specialised operators in the impaired credit sector remain technology-intensive. This is indicated by the speed of adoption of Artificial Intelligence (AI). The spread of AI-based projects is accelerating: since the last monitoring in September 2025, both the number of operators involved (+7) and the number of projects activated (+20) are growing. The main areas of application are predictive analytics, documentation and compliance, and credit management, consolidating the role of AI as a strategic lever.
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Group KPIs

GROUP EQUITY KPIs |  | 2025 | 2024 | CHANGE
CET1 ratio (1) |  | 13,0% | 16,1% | (3,1)%
Total Capital Ratio (1) |  | 15,3% | 18,1% | (2,8)%
CET1 Ratio pro forma (2) |  | 13,7% | 16,1% | (2,4)%
Total Capital Ratio pro forma (2) |  | 16,0% | 18,1% | (2,1)%
Number of company shares (in thousands) |  | 61.819 | 53.811 | 14,9%
Number of shares outstanding at year end (3) | (in thousands) | 61.080 | 52.572 | 16,2%
Price/book value per share |  | 0,73 | 0,64 | 0,09
Dividend per share(4) |  | 2,12 | 2,12 | -

(1) CET1 and Total Capital include the profits accrued by the Banking Group at 31 December 2025, net of the related dividend, including the portion distributed on an interim basis in compliance with the provisions of Article 2433, paragraph 4 of the Italian Civil Code.
(2) The pro-forma figures as at 31 December 2025 are calculated including the effects of the agreements to sell the stake in Hype and a distressed position, which were finalised in January and February 2026.
(3) Outstanding shares are net of treasury shares held in the portfolio.
(4) The figures for FY 2025 comprise the total of 1,20 Euro per share distributed as an interim dividend in November 2025 and 0,92 Euro per share as a proposal for a final dividend for the FY 2025 prepared by the Board of Directors of Banca Ifis.

GROUP ECONOMIC KPIs | 2025 | 2024 | CHANGE
ROE | 16,8% | 9,4% | 7,4%
Normalised ROE (1) | 6,1% | 9,4% | (3,2)%
ROA | 1,5% | 1,2% | 0,3%
Normalised ROA (1) | 0,5% | 1,2% | (0,7)%
Earnings per share (EPS) | 5,78 | 3,08 | 2,70
Normalised earnings per share (EPS) (1) | 1,90 | 3,08 | (1,17)
Reclassified cost/income ratio (2) | 63,3% | 58,2% | 5,1%
Payout ratio | 39,5% | 69,3% | (29,8)%
Normalised payout ratio | 119,8% | 69,1% | 50,7%

(1) These normalised KPIs are calculated considering the normalised net profit attributable to the Parent Company of 108,1 million Euro for 2025, instead of the actual net profit attributable to the Parent Company of 328,0 million Euro. For more details on the normalisation logic, refer to the section 'Group Balance Sheet and Economic Performance' below, under the heading 'Reclassified Economic Aggregates'.
(2) The reclassified 2025 cost/income ratio of 63,3% includes the illimity Group's contribution for the second half of 2025. Excluding this contribution, the 2025 reclassified cost/income ratio is 61,5%.
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Group financials and income results
This section reports on the financial and economic performance of the Banca Ifis Group. As regards the dynamics in terms of overall profitability and cash flows, refer to Part D of the Notes to the Consolidated Financial Statements and the Consolidated Cash Flow Statement within the "Consolidated Financial Statements", respectively.
Reclassified Statement of financial positions items
In connection with the acquisition of control of illimity Bank S.p.A. and Euclidea SIM S.p.A. (the latter subsequently renamed Fürstenberg SIM S.p.A. as from 26 January 2026), finalised respectively on 4 July 2025 and 21 November 2025, and the consequent inclusion in the Banca Ifis Group's scope of consolidation of these acquired companies and, in the case of illimity Bank, also of the other companies belonging to the so-called "illimity Group"), the balance sheet figures at 31 December 2025 are not fully comparable with those of the previous year. However, it should be noted that in the tables and comments to the individual items, the contributions of the illimity Group and of Euclidea SIM are presented, where relevant. For more details on the contribution of the illimity Group, refer to the section 'Performance of the Group's Main Companies' in the Directors' Report on the Group below.

RECLASSIFIED STATEMENT OF FINANCIAL POSITION HIGHLIGHTS(in thousand Euro) | AMOUNTS | CHANGE (1)
31.12.2025 | of which:illimity Group | of which:Banca Ifis Group(2) | 31.12.2024 | ABSOLUTE | %
Cash and cash equivalents | 787.290 | 229.715 | 557.575 | 505.016 | 52.559 | 10,4%
Financial assets mandatorily measured at fair value through profit or loss | 780.619 | 501.366 | 279.253 | 237.032 | 42.221 | 17,8%
Financial assets measured at fair value through other comprehensive income | 1.659.271 | 544.134 | 1.115.137 | 701.830 | 413.307 | 58,9%
Receivables due from banks measured at amortised cost | 700.276 | 98.023 | 602.253 | 703.763 | (101.510) | (14,4)%
Receivables due from customers measured at amortised cost | 16.135.996 | 5.045.581 | 11.090.415 | 10.810.018 | 280.397 | 2,6%
Property, plant and equipment and intangible assets | 385.209 | 74.072 | 311.137 | 252.153 | 58.984 | 23,4%
Tax assets | 368.495 | 120.524 | 247.971 | 213.464 | 34.507 | 16,2%
Other assets | 831.228 | 473.503 | 357.725 | 402.462 | (44.737) | (11,1)%
Total assets | 21.648.384 | 7.086.918 | 14.561.466 | 13.825.738 | 735.728 | 5,3%
Payables due to banks measured at amortised cost | 4.018.193 | 726.634 | 3.291.559 | 1.443.250 | 1.848.309 | 128,1%
Payables due to customers measured at amortised cost | 11.256.836 | 4.987.763 | 6.269.073 | 7.001.763 | (732.690) | (10,5)%
Debt securities issued | 3.441.393 | 579.040 | 2.862.353 | 3.152.737 | (290.384) | (9,2)%
Tax liabilities | 117.272 | 24.165 | 93.107 | 51.924 | 41.183 | 79,3%
Provisions for risks and charges | 106.877 | 22.850 | 84.027 | 52.339 | 31.688 | 60,5%
Other liabilities | 567.266 | 184.834 | 382.432 | 375.579 | 6.853 | 1,8%
Consolidated equity (3) | 2.140.547 | 561.632 | 1.578.915 | 1.748.146 | (169.231) | (9,7)%
Total liabilities and equity | 21.648.384 | 7.086.918 | 14.561.466 | 13.825.738 | 735.728 | 5,3%

(1) The change shown refers only to changes in the Ifis Group perimeter excluding the illimity Group's contribution.
(2) Banca Ifis Group means the perimeter of the Banca Ifis Group, excluding the illimity Group's contribution and including the contribution made by Euclidea SIM.
(3) The equity figures of the illimity Group and the Banca Ifis Group are for representative purposes only to reconcile assets/liabilities.
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Cash and cash equivalents
Cash and cash equivalents include bank current accounts on demand and at 31 December 2025 amount to 787,3 million Euro, of which 229,7 million Euro from the acquisition of the illimity Group. Net of the effect of the illimity Group's contribution, the item amounts to 557,6 million Euro, up from 505,0 million Euro at the end of 2024, and this trend in 2025 is driven by a decrease in overnight deposits of the parent company Banca Ifis, and an increase in liquidity to banks in relation to the trend in underlying loans.
Financial assets mandatorily measured at fair value through profit or loss
The financial assets mandatorily measured at fair value through profit or loss total 780,6 million Euro at 31 December 2025, and include the portfolio acquired from the illimity Group with a value of 501,4 million Euro. This item consists of loans and debt securities that did not pass the SPPI test, equity securities from minority shares and UCITS units.
Below is the breakdown of this line item.

FINANCIAL ASSETS MANDATORILY MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS(in thousands of Euro) | AMOUNTS | CHANGE (1)
31.12.2025 | of which:illimity Group | of which:Banca Ifis Group(2) | 31.12.2024 | ABSOLUTE | %
Debt securities | 95.227 | 37.798 | 57.429 | 69.042 | (11.613) | (16,8)%
Equity securities | 90.228 | 10.221 | 80.007 | 68.725 | 11.282 | 16,4%
UCITS units | 558.617 | 417.711 | 140.906 | 98.058 | 42.848 | 43,7%
Loans | 36.547 | 35.636 | 911 | 1.207 | (296) | (24,5)%
Total | 780.619 | 501.366 | 279.253 | 237.032 | 42.221 | 17,8%

(1) The change shown refers only to changes in the Ifis Group perimeter excluding the illimity Group's contribution.
(2) Banca Ifis Group means the perimeter of the Banca Ifis Group, excluding the illimity Group's contribution and including the contribution made by Euclidea SIM.
Excluding the contribution of the illimity Group for a total of 501,4 million Euro (as detailed in the table above), the increase in the item compared to 31 December 2024 of 42,2 million Euro can be broken down as follows:
•debt securities decreased by 11,6 million Euro (-16,8%), mainly due to the net negative effect of new subscriptions, disposals and redemptions and collections for the year with reference to Banca Ifis's proprietary 'stand-alone' portfolio, which more than offset the effect of net positive fair value changes of 1,1 million Euro;
•the growth in equity securities amounts to 11,3 million Euro (+16,4%), and is due, with reference to the remaining portfolio, mainly to fair value changes during the year (+12,0 million Euro), which more than offset the net negative effect between subscriptions and disposals of securities (-0,7 million Euro);
•the year increase in the balance of UCITS units is 42,8 million Euro (+43,7%) and is recorded following the growth recorded in fair value measurements (+7,3 million Euro) and the positive contribution of net new subscriptions by the Parent Company Banca Ifis, net of redemptions and collections, of 35,5 million Euro;
•the carrying amount of loans decreases by 0,3 million Euro compared to 31 December 2024 (-24,5%); this effect is mainly due to the negative impact of the fair value measurements for the year on loans of the Parent Company Banca Ifis for a total of 0,3 million Euro.
Financial assets measured at fair value through other comprehensive income
Financial assets measured at fair value through other comprehensive income amount to a total of 1.659,3 million Euro at 31 December 2025, up 136,4% compared to the figure at December 2024 mainly due to the effect of 544,1 million Euro from the acquisition of the illimity Group portfolio. Net of this component, the item amounts to 1.115,1 million Euro at 31 December 2025, an increase of 58,9% compared to 31 December 2024.
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Financial assets at fair value through other comprehensive income include debt securities characterised by a Held to Collect & Sell (HTC&S) business model, that have passed the SPPI test and equity securities for which the Group has exercised the OCI Option envisaged by IFRS 9.

FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME(in thousand Euro) | AMOUNTS | CHANGE (1)
31.12.2025 | of which:illimity Group | of which:Banca Ifis Group(2) | 31.12.2024 | ABSOLUTE | %
Debt securities | 1.424.495 | 538.666 | 885.829 | 544.936 | 340.893 | 62,6%
of which: government securities | 1.198.777 | 372.979 | 825.798 | 455.312 | 370.486 | 81,4%
Equity securities | 234.776 | 5.468 | 229.308 | 156.894 | 72.414 | 46,2%
Total | 1.659.271 | 544.134 | 1.115.137 | 701.830 | 413.307 | 58,9%

(1) The change shown refers only to changes in the Ifis Group perimeter excluding the illimity Group's contribution.
(2) Banca Ifis Group means the perimeter of the Banca Ifis Group, excluding the illimity Group's contribution and including the contribution made by Euclidea SIM.
Debt securities owned measured at fair value through other comprehensive income amount to 1.424,5 million Euro at 31 December 2025, including the contribution of the illimity Group of 538,7 million Euro. Net of this contribution, the item amounts to 885,8 million Euro, an increase of 340,9 million Euro (+62,6%) compared to the balance at 31 December 2024, mainly due to the net positive effect between new investments and disposals for the year by the Parent Company Banca Ifis (+344,0 million Euro), which more than offset the decrease in the fair value measurements of Banca Ifis's proprietary portfolio (-3,1 million Euro, mainly attributable to government securities). The related associated net negative fair value reserve amounts to 10,5 million Euro at 31 December 2025, almost entirely associated with Government securities. The illimity Group's contribution to this reserve is a positive 1,0 million Euro, of which 0,7 million Euro on government bonds).
This item also includes equity securities attributable to minority interests, which amount to 234,8 million Euro at 31 December 2025, of which 5,5 million Euro are associated with securities of the illimity Group. Without this effect, this item totals 229,3 million Euro, up 46,2% compared to 31 December 2024. This change derives from the net positive effect between investments and divestments made during the year by Banca Ifis (+66,5 million Euro) as well as the increase in FV values recorded during 2025 on Banca Ifis's proprietary portfolio (+6,0 million Euro). The net fair value reserve associated with FVOCI equity securities as at 31 December 2025 showed a positive value of 2,5 million Euro, which includes the negative contribution of 0,8 million Euro relating to the illimity Group. This figure is a significant improvement compared to the negative value at the end of 2024, which amounted to 7,7 million Euro, both due to the effect of the disposals of securities during the year and the positive fair value changes recorded during 2025 on Banca Ifis's proprietary portfolio.
Receivables due from banks measured at amortised cost
Total loans and advances to banks measured at amortised cost amount to 700,3 million Euro at 31 December 2025, and include the effect of the illimity Group's contribution of 98,0 million Euro, exclusively referring to technical forms other than debt securities. Net of this contribution, the item amounts to 602,3 million Euro, a decrease of 14,4% compared to the figure of 703,8 million Euro at 31 December 2024, mainly attributable to the decrease of 173,7 million Euro on debt securities of banking issuers held by Banca Ifis with a "Held to Collect (HTC)" business model and which passed the SPPI Test. At 31 December 2025, these securities have a carrying amount of 382,3 million Euro, a decrease compared to the figure for December 2024 (-31,2%) mainly due to the net negative effect between new subscriptions and divestments for the year on bank bonds during 2025 within the limits set by the policies defined by the Group.
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Receivables due from customers measured at amortised cost
Total customer loans measured at amortised cost amount to 16136,0 million Euro, of which 5.045,6 million Euro from the illimity Group. The item includes debt securities amounting to 4,1 billion Euro, of which 2,0 billion Euro related to the portfolio acquired from the illimity Group. Net of this component, debt securities amount to 2,1 billion Euro, up 10,2% from the figure of 1,9 billion Euro at 31 December 2024. In all, customer debt securities include government bonds amounting to 2,8 billion Euro, of which 1,0 billion Euro relate to the proprietary portfolio of the illimity Group. Without considering the impact of the illimity Group's contribution, government securities show a positive change of 191,6 million Euro (+12,1%) compared to the figure at 31 December 2024.
Receivables due from customers, in the absence of the illimity Group's contribution as well as the debt securities component, amount to 8.942,6 million Euro, substantially in line with the figure for December 2024 (8.861,4 million Euro).
The main dynamics by segment are shown below:
•the Commercial & Corporate Banking Segment amounted to 7.216,5 million Euro, up by 3,3% compared to 6.985,6 million Euro in December 2024. Performance was characterised by a decline in the Factoring Area (-127,9 million Euro, -4,4%) and increases in the Corporate Banking & Lending Area and the Leasing Area, amounting respectively to 298,3 million Euro (+12,1%) and 60,5 million Euro (+3,8%);
•receivables due from customers in the Npl Segment amount to 1.592,3 million Euro, up by 4,7% compared to 31 December 2024;
•the contribution of the Governance & Services and Non-Core Segment comes to 2.281,6 million Euro, broadly in line with the end-of-2024 figure;
•the contribution of the newly-established illimity Segment, which includes all receivables due from customers acquired by the illimity Group, amounts to 5.045,6 million Euro at 31 December 2025, of which 1.950,6 million Euro related to debt securities. For more details on this Segment, refer to the following section 'Contribution of the Business Segments to the Group's Results' within this Directors' Report on the Group.
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RECEIVABLES DUE FROM CUSTOMERS BREAKDOWN BY SEGMENT(in thousands of Euro) | AMOUNTS | CHANGE
31.12.2025 | 31.12.2024 | ABSOLUTE | %
Commercial & Corporate Banking Segment | 7.216.527 | 6.985.624 | 230.903 | 3,3%
- of which non-performing | 186.220 | 193.814 | (7.594) | (3,9)%
Factoring Area | 2.772.130 | 2.900.077 | (127.947) | (4,4)%
- of which non-performing | 65.214 | 78.026 | (12.812) | (16,4)%
Leasing Area | 1.673.498 | 1.612.971 | 60.527 | 3,8%
- of which non-performing | 15.400 | 13.311 | 2.089 | 15,7%
Corporate Banking & Lending Area | 2.770.899 | 2.472.576 | 298.323 | 12,1%
- of which non-performing | 105.606 | 102.477 | 3.129 | 3,1%
Npl Segment | 1.592.328 | 1.521.001 | 71.327 | 4,7%
- of which non-performing | 1.540.989 | 1.496.755 | 44.234 | 3,0%
Governance & Services and Non-Core Segment(1) | 2.281.560 | 2.303.393 | (21.833) | (0,9)%
- of which non-performing | 40.443 | 29.002 | 11.441 | 39,4%
illimity Segment (1) | 5.045.581 | - | 5.045.581 | n.a.
- of which non-performing | 1.160.799 | - | 1.160.799 | n.a.
Total receivables due from customers | 16.135.996 | 10.810.018 | 5.325.978 | 49,3%
- of which non-performing | 2.928.451 | 1.719.571 | 1.208.880 | 70,3%

(1) In the Governance & Services and Non-Core Segment, at 31 December 2025, there are government securities for 1.770,6 million Euro (1.579,0 million Euro at 31 December 2024) and in the illimity Group Segment, at 31 December 2025, there are government securities for 1.000,2 million Euro.
Total net non-performing exposures, which are significantly impacted by loans from the Npl Segment and loans from the illimity Group (the latter entirely allocated to the illimity Segment), stand at 2.928,5 million Euro at 31 December 2025. Excluding the illimity Group's contribution, net impaired assets amount to 1.767,7 million Euro, compared to 1.719,6 million Euro at 31 December 2024 (+2,8%). Net also of the component relative to the Npl Segment, net non-performing loans come to 226,7 million Euro, up 3,9 million Euro compared with the 222,8 million Euro recorded at 31 December 2024, mainly due to the contribution made by the Governance & Non-Core Services Segment.
The Banca Ifis Group's gross and net core originated Npe ratios as at 31 December 2025 relating to receivables due from customers are 5,2% and 3,1% respectively, and are calculated excluding loans in the Npl Segment, government securities measured at amortised cost and impaired financial assets acquired or originated (POCI), or with them as underlying assets, either for business purposes (e.g. for the relaunch and optimisation of companies in temporary difficulties) or emerging as a result of business combinations. Similarly, portfolios with underlying contract disputes that arose as a result of business combinations were excluded from the calculation of ratios because they did not fit the Group's business model.
For a detailed analysis of receivables due from customers, please see the following section "Contribution of business Segments to Group results” of this Directors' Report on the Group.
Intangible assets and property, plant and equipment
Intangible assets amount to 129,0 million Euro, of which 19,8 million Euro related to the illimity Group and 17,2 million Euro emerged in FY 2025 by way of the provisional recognition of a positive difference to be allocated
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(provisional goodwill) related to the acquisition of Euclidea SIM 1 in November 2025 (for more details on this transaction, refer to the section "Significant events during the year" of this Directors' Report on the Group and to "Part G - Business combinations" of the Notes to the Consolidated Financial Statements). Net of these components, intangible assets amount to 91,9 million Euro, up 7,5% compared to the figure of 85,5 million Euro at 31 December 2024.
The comprehensive item refers to:
•for a total of 73,7 million Euro to software and intangible assets generated internally, up from the balance of 47,5 million Euro as at 31 December 2024, mainly due to the aforementioned contribution of the illimity Group,
•38,0 million Euro for goodwill arising from the acquisition of the former Fbs Group;
•17,2 million Euro to the above-mentioned provisional recognition of a positive difference to be allocated (provisional goodwill) in connection with the acquisition of Euclidea SIM.
Tangible assets amount to 256,2 million Euro, of which 54,2 million Euro derived from the acquisition of the illimity Group. Excluding this effect, the balance at 31 December 2025 would amount to 202,0 million Euro, an increase of 21,2% compared to the figure of 166,7 million Euro at 31 December 2024, mainly due to the investments made in real estate in 2025 by the Parent Company Banca Ifis.
Properties recorded at 31 December 2025 under tangible assets include the sixteenth-century Villa Fürstenberg ("Villa Marocco"), located in Mestre - Venice and historical headquarters of the Group, which houses the Banca Ifis International Sculpture Park within its more than 22 hectares of garden.
Tax assets and liabilities
These items include current and deferred tax assets and liabilities.
Tax assets amount to 368,5 million Euro, of which 120,5 million Euro related to the illimity Group. Net of this effect, the item totals 248,0 million Euro, an increase of 34,5 million Euro compared to the figure at 31 December 2024.
Specifically, current tax assets amount to 117,7 million Euro, including 29,2 million Euro from the illimity Group. Excluding this component, they amount to 88,5 million Euro, an increase of 46,5 million Euro (+110,5%) compared to the figure at 31 December 2024.
Deferred Tax Assets (DTAs) amount to 250,8 million Euro, and include 91,3 million Euro of DTAs recognised with reference to the illimity Group, also due to the tax effect of adjustments related to the PPA on the data of the illimity Group being acquired. After removing the components attributable to the illimity Group, DTAs amount to 159,5 million Euro, a decrease of 12,0 million Euro compared to 31 December 2024. Deferred tax assets, totalling 250,8 million Euro, consist mainly of:
•63,4 million Euro from assets recognised for value adjustments on loans to customers, potentially convertible into tax credits pursuant to Law 214/2011. This figure includes 0,4 million Euro from the illimity Group, net of which the balance was 63,0 million Euro at 31 December 2025 (85,1 million Euro at 31 December 2024);
•65,4 million Euro from assets recognised on tax loss carry-forwards and aid for economic growth (“ACE”) benefit (including 26,5 million Euro for the contribution of the illimity Group; without this contribution, the figure at 31 December 2025 was 38,9 million Euro, down from 40,0 million Euro at 31 December 2024);
•121,9 million Euro from tax misalignments mainly related to financial assets measured at fair value through other comprehensive income (FVOCI), provisions for risks and charges, and write-offs of goodwill
1 Euclidea SIM S.p.A. was renamed Fürstenberg SIM S.p.A. with effect from 26 January 2026.
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and other intangible assets. This balance includes the amount from the illimity Group of 64,4 million Euro, without which the figure would amount to 57,5 million Euro (46,3 million Euro at 31 December 2024).
With regard to the recoverability of deferred tax assets recognised at 31 December 2025, refer to the paragraph on “Risks and uncertainties related to estimates“ within Part A of the Notes to the Consolidated Financial Statements and to “Section 11 - Tax assets and liabilities - Item 110 of Assets and Item 60 of Liabilities” in Part B of the Notes to the Consolidated Financial Statements.
Tax liabilities amount to 117,3 million Euro, of which 24,2 million Euro from the illimity Group. Net of this component, they amount to 93,1 million Euro (51,9 million Euro at 31 December 2024), and are composed as follows:
•by current tax liabilities, amounting to 69,8 million Euro (23,3 million Euro as of 31 December 2024) representing the tax burden for the year, of which 53,0 million Euro related to the Parent Company Banca Ifis;
•deferred tax liabilities, amounting to 47,4 million Euro (28,6 million Euro as of 31 December 2024), comprising 23,7 million Euro relating to the illimity Group's contribution (mainly relating to taxation on adjustments connected to the PPA) and the residual 23,7 million Euro, mainly referring to tax liabilities of the Parent Company Banca Ifis on receivables recognised for default interest that will be taxed upon collection.
Tax assets are included in the calculation of "capital requirements for credit risk" in accordance with (EU) Regulation No. 575/2013 (CRR), as subsequently updated, which was transposed in the Bank of Italy's Circular No. 285.
Here below is the breakdown of the different treatments by type and the relevant impact on CET1 and risk weighted assets (RWAs) at 31 December 2025:
•“deferred tax assets that rely on future profitability and do not arise from temporary differences” are subject to deduction from CET1. It should also be noted that the amount of DTA deducted from CET1, as provided for by Art. 38 par. 5 pursuant to the CRR, is offset by the corresponding deferred tax liabilities;
•the "deferred tax assets that rely on future profitability and arise from temporary differences" are not deducted from CET1 and receive instead a 250% risk weight. The amount weighted according to a factor of 250%, as provided for in Art. 38 para. 5 pursuant to the CRR, is shown net of the offset against the corresponding deferred tax liabilities;
•the "deferred tax assets pursuant to Italian Law No. 214/2011", concerning credit risk losses, that can be converted into tax credits, receive a 100% risk weight;
•"current tax assets" receive a 0% weight as they are exposures to the Central Government.
Other assets and liabilities
Other assets amount to 831,2 million Euro at 31 December 2025 and include the contribution of the illimity Group in the amount of 473,5 million Euro. Net of this effect, the item amounts to 357,7 million Euro, a decrease of 11,1% compared to the balance of 402,5 million Euro at 31 December 2024.
The other asset items are made up as follows:
•financial assets held for trading of 27,5 million Euro, of which 12,5 million Euro related to the proprietary portfolio acquired from the illimity Group. Net of this component, the item amounts to 15,0 million Euro (an increase on the figure of 12,1 million Euro at 31 December 2024), referring almost entirely to derivative transactions offset by mirror positions recorded among financial liabilities held for trading;
•hedging derivative assets, which have a positive fair value of 60,9 million Euro at 31 December 2025, of which 37,5 million Euro related to hedging strategies referred to the illimity Group. Overall, these hedging strategies concern:
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–micro fair value hedging on the price risk associated with equity securities measured at fair value with an impact on comprehensive income;
–micro fair value hedging on interest rate risk related to debt securities;
–micro fair value hedge on the interest rate risk associated with outstanding securities issued, relating to a bond issue of illimity Bank;
–macro fair value hedging on the interest rate risk related to the illimity Group's deposit liabilities);
•equity investments with a balance of 33,6 million Euro, almost entirely relating to equity investments in companies belonging to the illimity Group and subject, directly or indirectly, to significant influence by illimity Bank. Net of the component related to the illimity Group, the remaining balance of the item amounts to 1,5 million Euro, up from the balance of 24 thousand Euro as at 31 December 2024 due to the acquisition by Banca Ifis for 1,5 million Euro during the fourth quarter of 2025 of a shareholding with significant influence in Edulia S.r.l. (for further details, see 'Part A - Accounting Policies', 'A.1 - General', 'Section 3 - Scope and Methods of Consolidation' of the Notes to the Consolidated Financial Statements);
•non-current assets and groups of assets held for sale totalling 157,6 million Euro, relating to:
–for 85,0 million Euro to the equity investment in Hype S.p.A., a jointly controlled company within the illimity Group's perimeter. With regard to this equity investment, the offer of 85 million Euro received from Banca Sella Holding was accepted on 3 November 2025, and, following the obtaining of regulatory authorisations at the beginning of 2026, on 6 February 2026 it was transferred to the Banca Sella Group at the agreed price (for further details, refer to the specific paragraphs included in the sections "Significant events during the year" and "Subsequent events" of this Directors' Report);
–for 64,6 million Euro to credit portfolios of the illimity Group, one portfolio of which was subsequently sold on 28 January 2026 for an equivalent value of 41 million Euro, in line with the carrying value as at 31 December 2025 (for further details, refer to the above-mentioned section "Subsequent events");
–for 8,0 million Euro to loan portfolios of the parent company Banca Ifis that are expected to be sold in the short term;
•other assets of 551,7 million Euro, of which 241,9 million Euro related to the illimity Group. Net of this component, the remaining balance of the item amounts to 309,8 million Euro, down 19,1% from the balance of 383,0 million Euro at 31 December 2024. The main reason for this reduction is the absence in the figures as at 31 December 2025 of receivables from the parent company Fürstenberg Scogliera Holding S.A. (formerly La Scogliera S.A.) related to the Group's tax consolidation, as the balance as of 31 December 2024 related to the receivable from the tax consolidating company Fürstenberg Scogliera Holding (amounting to 25,0 million Euro) was fully collected during the first half of 2025 and since no new receivables from the parent company accrued during 2025 as a result of the termination of the tax consolidation arrangement with this entity (for further details, refer to "Section 11 - Tax assets and liabilities - Item 110 of assets and item 60 of liabilities" in "Part B - Information on the Consolidated Statement of Financial Position" of the Notes to the consolidated financial statements). With reference to the composition of the total balance of the item of 551,7 million Euro, it includes:
–tax receivables of 262,3 million Euro, of which 123,7 million Euro related to the illimity Group. Net of this component, the balance amounts to 138,5 million Euro, down from the book value of 181,1 million Euro at 31 December 2024. The total balance includes 191,8 million Euro related to tax credits for Super Ecobonus and other building tax bonuses with a nominal amount of 209,1 million Euro (of which 77,1 million Euro related to building tax bonus credits from the illimity Group with a nominal value of 82,7 million Euro);
44
–transitional items and effects portfolio in the amount of 81,8 million Euro, of which 28,2 million Euro associated with the illimity Group. Excluding the sub-item of this effect, the balance amounts to 53,6 million Euro, down by 7,6 million Euro compared to December 2024;
–accrued income and deferred expenses of 82,2 million Euro; this contribution includes 18,1 million Euro pertaining to the illimity Group. Excluding this component, the balance amounts to 64,1 million Euro, a decrease of 4,4 million Euro compared to December 2024.
Other liability items amount to 567,3 million Euro, and include the contribution of the illimity Group of 184,8 million Euro. Net of this effect, the item amounts to 382,4 million Euro, substantially in line with the figure of 375,6 million Euro at 31 December 2024.
The other liability items consist mainly of:
•derivative trading liabilities of 26,6 million Euro, of which 12,7 million Euro related to the illimity Group. Net of this component, the sub-item amounts to 13,8 million Euro (mainly relating to transactions offset by opposite positions recognised under financial assets held for trading), substantially in line with the balance at 31 December 2024;
•hedging derivative liabilities, which have a negative fair value of 33,7 million Euro at 31 December 2025, of which 16,6 million Euro related to hedging strategies referred to the illimity Group. Net of this component, the item amounts to 17,2 million Euro, up from the balance of 14,9 million Euro at 31 December 2024. Overall, these hedging strategies concern:
–micro fair value hedging on the price risk associated with equity securities measured at fair value with an impact on comprehensive income;
–micro fair value hedging on interest rate risk related to debt securities;
–macro fair value hedging on the interest rate risk related to the illimity Group's deposit liabilities;
•adjustment of the value of financial liabilities subject to generic hedging, which presents a negative value of 2,9 million Euro and is entirely associated with the illimity Group, as it refers to the equity counterpart at the level of hedged items of the macro fair value hedging strategies of the deposits payable by illimity Bank;
•severance pay liability of 11,4 million Euro, of which 4,3 million Euro related to the liability associated with employees of the illimity Group. Excluding this effect, the item amounts to 7,2 million Euro, a 5,5% reduction compared with the figure of 7,6 million Euro at 31 December 2024;
•other liabilities of 498,4 million Euro, of which 154,2 million Euro associated with the illimity Group. Adjusting for this component, the overall balance amounts to 344,3 million Euro, essentially in line with the balance of 339,4 million Euro at 31 December 2024 despite the absence in the balances at 31 December 2025 of payables to Fürstenberg Scogliera Holding S.A. (formerly La Scogliera S.A.) related to the Group's tax consolidation (similarly to what was commented above for other assets), because the balance at 31 December 2024 related to the debt to the tax consolidating entity Fürstenberg Scogliera Holding (amounting to 29,1 million Euro) was fully settled during the first half of 2025 and because no new debt accrued during the first nine months of 2025 following the discontinuation of the tax consolidation arrangement with this entity. With regard to the composition of the total balance of the item of 498,4 million Euro, the most significant items are mainly attributable to the following:
–total liabilities of 15,0 million Euro, relating to the extraordinary contribution of 27,5% on the excess profits reserve, established pursuant to Article 1, paragraph 69, of Law No. 199 of 30 December 2005, for the Group’s banks (Banca Ifis, illimity Bank and Banca Credifarma), which will be paid during 2026 on the basis of the relevant resolutions of the respective Boards of Directors. For further details, refer to the specific paragraph "Extraordinary Contribution Law No. 199 of 2025" within "Part A - Accounting Policies", "A.1 - General Part", "Section 5 - Other Aspects" of the Notes to the Consolidated Financial Statements;
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–operating liabilities of 189,8 million Euro, of which 40,8 million Euro associated with the illimity Group. Net of this component, the balance is 149,0 million Euro, an increase of 43,7 million Euro compared to 31 December 2024;
–transitory items and amounts to be credited to customers awaiting allocation amounting to 84,5 million Euro, of which 42,7 million Euro related to the illimity Group. Net of this contribution, the sub-item amounts to 41,8 million Euro, up 1,8 million Euro compared to the previous year.
Funding

FUNDING(in thousands of Euro) | AMOUNTS | CHANGE (1)
31.12.2025 | of which:Group illimity | of which:Banca Ifis Group(2) | 31.12.2024 | ABSOLUTE | %
Payables due to banks | 4.018.193 | 726.634 | 3.291.560 | 1.443.250 | 1.848.310 | 128,1%
- Payables due to Central banks: | 721.515 | - | 721.515 | 419.286 | 302.299 | 72,1%
of which: MRO | 500.239 | - | 500.239 | 400.035 | 100.204 | 25,0%
of which: Other deposits | 221.277 | - | 221.277 | 19.251 | 202.026 | n.s.
- Current accounts and on demand deposits | 4.854 | 91.223 | (86.369)(3) | 7.558 | (93.927) | n.s.
- Term deposits | 346.664 | 290.131 | 56.533 | 41.082 | 15.451 | 37,6%
- Loans: | 2.907.972 | 324.771 | 2.583.201 | 969.144 | 1.614.057 | 166,5%
of which: Repurchase agreements | 2.546.864 | 324.771 | 2.222.093 | 630.540 | 1.591.553 | n.s.
of which: Other loans | 361.108 | - | 361.108 | 338.604 | 22.504 | 6,6%
- Other payables due to banks | 37.188 | 20.509 | 16.679 | 6.180 | 10.499 | 169,9%
Payables due to customers | 11.256.836 | 4.987.763 | 6.269.073 | 7.001.763 | (732.690) | (10,5)%
- Current accounts and on demand deposits | 2.215.201 | 1.055.046 | 1.160.155 | 996.217 | 163.938 | 16,5%
- Term deposits | 7.803.055 | 3.343.763 | 4.459.292 | 4.723.074 | (263.782) | (5,6)%
- Loans | 1.184.780 | 564.623 | 620.157 | 1.249.556 | (629.399) | (50,4)%
of which: Repurchase agreements | 604.214 | 352.330 | 251.884 | 1.045.734 | (793.850) | (75,9)%
of which: Other loans | 580.566 | 212.293 | 368.273 | 203.822 | 164.451 | 80,7%
- Other payables due to customers | 53.800 | 24.331 | 29.469 | 32.916 | (3.447) | (10,5)%
Debt securities issued | 3.441.393 | 579.040 | 2.862.353 | 3.152.737 | (290.384) | (9,2)%
Total funding | 18.716.423 | 6.293.437 | 12.422.986 | 11.597.750 | 825.236 | 7,1%

(1) The change shown refers only to changes in the Ifis Group perimeter excluding the illimity Group's contribution.
(2) Banca Ifis Group means the perimeter of the Banca Ifis Group, excluding the illimity Group's contribution and including the contribution made by Euclidea SIM.
(3) For presentation purposes only, this item shows a negative balance, as it also includes the elimination of intercompany balances relating to the current accounts payable of illimity Bank to the Parent Company Banca Ifis (which are included with a positive sign in the column "of which illimity Group" but must be eliminated for the purposes of determining the consolidated balances of the Banca Ifis Group).
Total inflows at 31 December 2025 amount to 18,7 billion Euro, including 6,3 billion Euro in inflows associated with the illimity Group. Net of this component, funding amounts to 12,4 billion Euro, up by 7,1% compared to 31 December 2024. Overall, 60,1% of Banca Ifis Group's funding is represented by debt to customers (60,4% at 31 December 2024), 18,4% by debt securities issued (27,2% at 31 December 2024) and 21,5% by payables due to banks (12,4% at 31 December 2024).
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Payables due to banks amount to 4,0 billion, including 0,7 billion from the illimity Group. The balance excluding this contribution amounts to 3,3 billion Euro, up 128,1% compared to the end of December 2024, mainly due to an increase in repurchase agreements with banks of the Parent Company Banca Ifis of 1,6 billion Euro. In the MRO area, at 31 December 2025, an MRO transaction of 500 million Euro was in place, carried out late December and repaid on 07 January 2026. In addition, an OT (Other Type of operation) transaction with the ECB for 260 million US Dollar (or 221 million Euro) was also outstanding as at 31 December 2025, repaid on 8 January 2026
At 31 December 2025, debt to customers amount to 11,3 billion Euro, of which 5,0 billion Euro from the illimity Group. The balance of this item net of the illimity Group's contribution amounts to 6,3 billion Euro, down 10,5% from 31 December 2024. The decrease is mainly attributable to repurchase agreements with customers of the Parent Company Banca Ifis, equal to 251,9 million Euro (-793,9 million Euro compared to the balance at the end of 2024) and to funding through term deposits (excluding those of the illimity Group), which amounts to 4,5 billion Euro at the end of December 2025 (-5,6% compared to 31 December 2024).
Securities outstanding amount to 3,4 billion Euro as at 31 December 2025, of which 0,6 billion Euro related to the illimity Group (referring to securities issued by illimity Bank and to securitisation notes issued to third parties by vehicles within the perimeter of that Group). Adjusting for the balances associated with the illimity Group, securities outstanding amount to 2,9 billion Euro, down by 0,3 billion Euro compared to 31 December 2024 (-9,2%) as a result of the total repurchase of the senior securities of the Emma and Indigo Lease securitisations (which had a total carrying amount of 668,8 million Euro as at 31 December 2024). More details on these securitisations can be found in 'Section 2 - Risks of the Prudential Consolidation', subsection '1.4 Liquidity risk', paragraph 'Self-securitisation transactions' of 'Part E - Information on risks and related hedging policies' of the Notes to the Consolidated Financial Statements. This buy-back more than offset the increase recorded in 2025 for 402,4 million Euro at the level of the value of bonds issued by the Parent Company Banca Ifis, mainly following the issue on 8 July 2025 of a 400 million Euro bond maturing in November 2029 as part of the EMTN programme (for more details on this, refer to the section "Significant events during the year” of this Directors’ Report on the Group).
Total debt securities issued at 31 December 2025 are composed of:
•securities issued by the SPV ABCP Programme for 952,6 million Euro relating to the senior tranche;
•securities issued by securitisation vehicles belonging to the illimity Group for a total of 5,3 million Euro;
•a subordinated loan issued by the parent company Banca Ifis for 373,2 million Euro, substantially in line with 31 December 2024;
•5 senior bonds issued by Banca Ifis for a total of 1,5 billion Euro, an increase of 402,2 million Euro compared to the figure at the end of December 2024 due to the aforementioned issue of a new bond in July 2025;
•bonds issued by illimity Bank for a total of 573,7 million Euro, of which 197,3 million Euro relating to subordinated loans.
As a result of the dynamics described above and excluding the effect related to the acquisition of the illimity Group's funding, the average cost of funding at 31 December 2025 amounts to 3,30%, down from the average of 3,87% for 2024.
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Provisions for risks and charges

PROVISIONS FOR RISKS AND CHARGES(in thousands of Euro) | AMOUNTS | CHANGE (1)
31.12.2025 | of which:illimity Group | of which:Banca Ifis Group(2) | 31.12.2024 | ABSOLUTE | %
Provisions for credit risk related to commitments and financial guarantees granted | 8.538 | 2.223 | 6.315 | 5.222 | 1.093 | 20,9%
Provisions on other commitments and guarantees given | 62 | - | 62 | 337 | (275) | (81,6)%
Provisions for pensions | 364 | - | 364 | 231 | 133 | 57,6%
Other provisions for risks and charges: | 97.913 | 20.627 | 77.286 | 46.549 | 30.737 | 66,0%
of which: legal and tax disputes | 18.679 | 4.088 | 14.591 | 28.337 | (13.746) | (48,5)%
of which: personnel expenses | 48.976 | 8.901 | 40.075 | 1.931 | 38.144 | n.s.
of which: other | 30.258 | 7.638 | 22.620 | 16.281 | 6.339 | 38,9%
Total provisions for risks and charges | 106.877 | 22.850 | 84.027 | 52.339 | 31.688 | 60,5%

(1) The change shown refers only to changes in the Ifis Group perimeter excluding the illimity Group's contribution.
(2) Banca Ifis Group means the perimeter of the Banca Ifis Group, excluding the illimity Group's contribution and including the contribution made by Euclidea SIM.
Below is the breakdown of the provision for risks and charges at 31 December 2025 by type of dispute compared with the amounts for the end of the prior year (with the specification, where significant, of the effect on the variation level deriving from the contribution of the illimity Group or of Euclidea SIM).
Provisions for credit risk related to commitments and financial guarantees granted
At 31 December 2025, the balance of 8,5 million Euro reflects the write-down of irrevocable commitments to disburse funds and financial guarantees issued by the Group, and includes 2,2 million Euro in contributions from the illimity Group. Net of this effect, the item amounts to 6,3 million Euro, an increase of 20,9% compared to the figure at 31 December 2024.
Provisions on other commitments and guarantees given
At 31 December 2025, the balance of this item is 62 thousand Euro, and does not include balances from the illimity Group. This item decreases by 275 thousand Euro compared to the figure at 31 December 2024.
Provisions for pensions
The item includes the internal provision related to the post-retirement medical plan in favour of certain employees of the Banca Ifis Group, introduced in 2023: this is a defined benefit plan that provides for healthcare and other benefits to employees, even after retirement. The Group is responsible for the costs and risks associated with the provision of such benefits.
At 31 December 2025, the fund in question has a balance of 364 thousand Euro, and does not include contributions from the illimity Group. This balance is 57,6% higher than at 31 December 2024 due to provisions for the year.
Legal and tax disputes
At 31 December 2025, provisions for legal and tax disputes totalling 18,7 million Euro are recorded, of which 4,1 million Euro relate to funds associated with the illimity Group. Without this contribution, the funds in question amount to 14,6 million Euro, down from 28,3 million Euro at 31 December 2024. The decrease of 13,7 million Euro is mainly due to the release of provisions for risks and charges attributable to some individually significant positions of the Parent Company Banca Ifis, of which 4,1 million Euro was attributable to the positive resolution of an outstanding dispute related to the Factoring Area.
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Personnel expenses
As at 31 December 2025, there are provisions for personnel expenses of 49,0 million Euro, of which 8,9 million Euro arose from the illimity Group and related to the provision for the year for the management of the departures of certain executives of the illimity Group as part of the acquisition by Banca Ifis. Without considering the contribution of the illimity Group, the balance amounts to 40,1 million Euro, an increase of 38,1 million Euro compared to the figure as at 31 December 2024, mainly due to the provision of 40,0 million Euro for the year against the signing by the Parent Company Banca Ifis on 29 December 2025 of an agreement with the trade unions concerning a voluntary redundancy plan aimed at accompanying 120 employees to retirement, also through recourse to extraordinary benefits from the Solidarity Fund for the credit sector. For more details, refer to 'Part A - Accounting Policies', 'A.1 - General', 'Section 5 - Other Aspects', paragraph 'Significant Transactions during the Year' of the Notes to the Consolidated Financial Statements.
Other provisions for risks and charges
At 31 December 2025, there are "Other provisions" of 30,3 million Euro outstanding, of which 7,6 million Euro are associated with illimity Group events. Net of this effect, other provisions amount to 22,6 million Euro, an increase of 38,9% compared to the figure at 31 December 2024, which was 16,3 million Euro.
Net of the illimity Group's contribution, the item consists mainly of:
•9,4 million Euro to cover risks related to outstanding disputes on tax credits for Super Ecobonus and other building tax bonuses purchased by the Parent Company Banca Ifis;
•3,4 million Euro for Supplementary Customer Indemnity, almost entirely attributable to the operations of the Leasing Area;
•2,3 million Euro for the provision for risks related to the disposal transactions carried out by the parent company Banca Ifis;
•2,6 million Euro for the indemnity provision set aside for transactions carried out by the subsidiary Ifis Npl Investing;
•0,5 million Euro for the complaints fund.
Consolidated equity
Consolidated equity comes to 2.140,5 million Euro at 31 December 2025, down by 392,4 million Euro compared to the figure at 31 December 2024. This increase is mainly related to:
•the profit for the year attributable to the parent company of 328,0 million Euro;
•the cumulative effect for a total of 183,1 million Euro, net of related costs, of the issuance of new Banca Ifis shares to service the offer on illimity Bank (for further details on this, refer to the specific section "Significant events during the year" within this Directors' Report on the Group);
•the negative change totalling 122,1 million Euro attributable to:
–the payment in May 2025 of the balance dividend from 2024 profits in the amount of 48,8 million Euro;
–the distribution in November 2025 of the 73,3 million Euro interim dividend from 2025 earnings;
•the positive change of 6,8 million Euro in relation to the allocation of bonuses to Top Management, linked to the "Short-Term Incentive System" ("STI") and the exercise of stock options under the "2021-2023 Long-Term Incentive Plan" (the "LTI Plan");
•the positive change in valuation reserves of 3,2 million Euro generated by the measurement of related assets at fair value;
•the positive change in non-controlling interests’ equity of 5,0 million Euro, comprising a positive effect of 5,7 million Euro attributable to the non-controlling interests’ equity acquired from the illimity Group and a positive effect of 0,3 million Euro related to movements during the financial year, which were partially
49
offset by a negative effect of 1,0 million Euro due to the portion of the dividend relating to 2024 profits distributed to third parties by the subsidiary Banca Credifarma;
•the positive change of 2,6 million Euro related to the net effect of the micro fair value hedge of equity securities measured at fair value through other comprehensive income;
•the negative change amounting to 15,0 million Euro, relating to the recognition under the item “other liabilities” of the extraordinary contribution of 27,5% on the excess profits reserve, established pursuant to Article 1, paragraph 69, of Law No. 199 of 30 December 2005, for the Group’s banks (Banca Ifis, illimity Bank and Banca Credifarma), which will be paid during 2026 following the relevant resolutions of the respective Boards of Directors. For further details, refer to the specific paragraph "Extraordinary Contribution Law No. 199 of 2025" within "Part A - Accounting Policies", "A.1 - General Part", "Section 5 - Other Aspects" of these Notes to the Consolidated Financial Statements.
The main changes in consolidated shareholders' equity are summarised in the following tables.

EQUITY: BREAKDOWN(in thousands of Euro) | AMOUNTS | CHANGE
31.12.2025 | 31.12.2024 | ABSOLUTE | %
Share capital | 61.819 | 53.811 | 8.008 | 14,9%
Share premiums | 229.093 | 85.391 | 143.702 | 168,3%
Valuation reserves: | (16.840) | (28.144) | 11.304 | (40,2)%
- securities | (16.650) | (23.150) | 6.500 | (28,1)%
- defined benefit plans (e.g. severance indemnity) | 906 | 574 | 332 | 57,8%
- exchange differences | (5.274) | (5.437) | 163 | (3,0)%
- hedging of equity securities at fair value through other comprehensive income | 4.178 | (131) | 4.309 | n.s.
Reserves | 1.604.673 | 1.543.729 | 60.944 | 3,9%
Interim dividends (-) | (73.296) | (63.084) | (10.212) | 16,2%
Treasury shares (-) | (13.701) | (20.971) | 7.270 | (34,7)%
Equity attributable to non-controlling interests | 20.803 | 15.836 | 4.967 | 31,4%
Profit for the year attributable to the Parent Company | 327.996 | 161.578 | 166.418 | 103,0%
Consolidated equity | 2.140.547 | 1.748.146 | 392.401 | 22,4%

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CONSOLIDATED EQUITY: CHANGES | (in thousands of Euro)
Consolidated equity at 31.12.2024 | 1.748.146
Increases: | 530.493
Profit for the year attributable to the Parent Company | 327.996
Parent Company capital increases to service the Offer on illimity Bank | 183.111
Sale/assignment of treasury shares | 6.893
Change in valuation reserve: | 6.347
- securities (net of realisations) | 3.220
- defined benefit plans (e.g. severance indemnity) | 332
- exchange differences | 163
- hedging of equity securities at fair value through other comprehensive income (net of realisations) | 2.632
Changes in equity interests | 133
Equity attributable to non-controlling interests: | 6.013
- of which from business combinations (acquisition of illimity Group) | 5.686
- of which other changes | 327
Decreases: | 138.092
Dividends distributed: | 122.122
- of which dividend balance on 2024 profit | 48.826
- of which interim dividend on 2025 profit | 73.296
Equity attributable to non-controlling interests (dividends distributed to third parties) | 1.046
Reduction in 'other reserves' for payment of extraordinary contribution Law No. 199 of 2025 | 14.881
Other changes | 43
Consolidated equity at 31.12.2025 | 2.140.547

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Reconciliation of equity and the net result of the Parent Company with the consolidated data attributable to the Parent Company
The following table provides a reconciliation of Banca Ifis S.p.A.'s equity and earnings with the Group's respective figures as at 31 December 2025:

RECONCILIATION OF EQUITY AND THE NET RESULT OF THE PARENT COMPANY WITH THE CONSOLIDATED DATA ATTRIBUTABLE TO THE PARENT COMPANY(in thousand Euro) | 31.12.2025
EQUITY | OF WHICH: PROFIT (LOSS) FOR THE YEAR
Balances of the Parent Company Banca Ifis | 1.622.224 | 160.899
Difference compared to the carrying amounts of the companies consolidated | 519.140 | 348.631
- Ifis Finance Sp. z o.o. | 27.009 | 3.231
- Ifis Finance I.F.N. S.A. | 30 | 757
- Ifis Rental Services | 49.351 | 9.687
- Cap.Ital.Fin. | - | (2.879)
- Banca Credifarma | 77.110 | 12.101
- Ifis Npl Investing | 231.118 | 233.374
- Ifis Npl Servicing | 113.081 | 91.996
- illimity Group | 21.511 | 521
- Euclidea SIM 2 | (70) | (157)
Elimination of intra-group dividends | - | (182.482)
Other consolidation entries | (817) | 948
Consolidated balances attributable to the Parent Company | 2.140.547 | 327.996

Own funds and capital adequacy ratios
Own funds, risk weighted assets and capital ratios as at 31 December 2025 were determined on the basis of the harmonised rules for banks and investment firms contained in Directive 2013/36/EU (CRD) and Regulation (EU) No. 575/2013 (CRR), which transpose the standards set by the Basel Committee into the European Union.
On 19 June 2024, Regulation (EU) 1623/2024 (the “CRR3”) dated 31 May 2024 and Directive (EU) 2024/1619/EU (so called CRD IV) dated 31 May 2024 were published in the Official Journal of the European Union, amending Regulation (EU) 575/2013 (CRR) and Directive 2013/36/EU (CRD) respectively.
With certain exceptions, the amendments came into force on 1 January 2025.
This regulatory framework is made applicable in Italy by means of Bank of Italy Circular No. 285 published on 17 December 2013 and subsequent updates.
2 Effective 26 January 2026 Euclidea SIM was renamed F ü rstenberg SIM.
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OWN FUNDS AND CAPITAL ADEQUACY RATIOS: (in thousand Euro) | Amounts at
31.12.2025 (*) | 31.12.2024 (**)
Common Equity Tier 1 (CET1) capital | 1.802.310 | 1.583.801
Tier 1 capital (T1) | 1.803.194 | 1.584.703
Total Own Funds | 2.131.775 | 1.781.416
Total RWAs | 13.913.593 | 9.836.093
Common Equity Tier 1 ratio | 12,95% | 16,10%
Tier 1 Capital ratio | 12,96% | 16,11%
Ratio – Total Own Funds | 15,32% | 18,11%

(*) CET1, Tier1 and Total Capital include the profits accrued by the Banking Group at 31 December 2025, net of the related dividend, including the portion distributed on an interim basis in compliance with the provisions of Article 2433, paragraph 4 of the Italian Civil Code.
(**) CET1, TIER1 and Total Capital include the profits accrued by the Banking Group at 31 December 2024, net of the related dividend, including the portion distributed on an interim basis in compliance with the provisions of Article 2433, paragraph 4 of the Italian Civil Code.
As at 31 December 2025, own funds, taking into account the transitional treatment adopted to sterilise the effects of unrealised gains and losses measured at fair value with an impact on comprehensive income relating to exposures to central governments, amount to 2.132 million Euro. Own funds also take into account:
•profits accrued by the Banca Ifis Group as at 31 December 2025 net of the relevant dividend, including the portion distributed on account in compliance with the provisions of Article 2433(4) of the Italian Civil Code;
•of the applicable amount of the shortfall in coverage for impaired exposures (referred to as “Calendar Provisioning”) as provided for in Regulation (EU) 630/2019 of 17 April 2019;
•the effects arising from the IPO on illimity Bank and the consolidation of the illimity Group, the impacts of which are mainly attributable to i) capital increase to service the IPO in the amount of 183,5 million Euro ii) inclusion of the final 'gain on a bargain purchase' in the amount of 309,9 million Euro, following the conclusion of the PPA process required by IFRS 3.

STATEMENT OF FINANCIAL POSITION DATA (in thousand Euro) | SEGMENT COMMER CIAL & CORPORA TE BANKING | COMMERCIAL &CORPORATE BANKING | NPL SEGME NT | SEGMEN T NON-CORE AND GOVERN ANCE & SERVICE S | illimity | CONS. GROUP TOTAL
of which: FACTORING AREA | of which: LEASIN G AREA | of which: CORPORAT E BANKING & LENDING AREA |  |  |  |
Total RWA per segment | 5.923.080 | 2.467.630 | 1.288.940 | 2.166.510 | 1.819.369 | 1.215.149 | 3.480.873 | 12.438.471
Market risk |  |  |  |  |  |  |  | 70.152
Operational risk |  |  |  |  |  |  |  | 1.193.979
Risk of adjustment of the credit rating |  |  |  |  |  |  |  | 210.992
Total RWAs |  |  |  |  |  |  |  | 13.913.593

Tab. 3 RWAs by segments as at 31/12/2025
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As at 31 December 2025, risk weighted assets amount to 13.914 million Euro, mainly attributable to the credit and counterparty risk component and, to a lesser extent, to operational, market and credit valuation adjustment (CVA) risk, and also taking into account the consolidation of the risk weighted assets of the illimity Group.
Based on the above, the capital ratios as at 31 December 2025 were as follows:
•CET1 Ratio of 12,95%;
•Tier 1 Ratio of 12,96%;
•Total Capital Ratio: 15,32%.
Lastly, it should be noted that, following the agreements to sell the stake in Hype and a distressed position, which were finalised in January and February 2026, the pro-forma CET1 stood at 13,7% with an overall benefit of approximately 70 bps.
Consolidated own funds and capital adequacy ratios - Fully loaded
As at 31 December 2025, excluding the transitional filter resulting from the sterilisation of unrealised gains and losses measured at fair value with impact on comprehensive income, relating to exposures to central governments, own funds amount to 2.121 million Euro and RWA under full application amount to 14.742 million Euro

OWN FUNDS AND CAPITAL ADEQUACY RATIOS: (in thousand Euro) | Amounts at
31.12.2025 (*) | 31.12.2024 (**)
Common Equity Tier 1 (CET1) capital | 1.791.696 | 1.561.703
Tier 1 capital (T1) | 1.792.853 | 1.562.605
Total Own Funds | 2.121.434 | 1.759.318
Total RWAs | 14.741.738 | 9.836.093
Common Equity Tier 1 ratio | 12,16% | 15,88%
Tier 1 Capital ratio | 12,16% | 15,89%
Ratio – Total Own Funds | 14,39% | 17,89%

(*) CET1, Tier1 and Total Capital include the profits accrued by the Banking Group at 31 December 2025, net of the related dividend, including the portion distributed on an interim basis in compliance with the provisions of Article 2433, paragraph 4 of the Italian Civil Code.
(**) CET1, TIER1 and Total Capital include the profits accrued by the Banking Group at 31 December 2024, net of the related dividend, including the portion distributed on an interim basis in compliance with the provisions of Article 2433, paragraph 4 of the Italian Civil Code.
Supervisory review and evaluation process (SREP)
For the sake of comparison, it should be noted that at 31 December 2025, Banca Ifis, at the consolidated level, is required to comply with the following capital requirements, as part of the Supervisory Review and Evaluation Process (SREP):
•Common Equity Tier 1 (CET1) capital ratio of 8,82%, with a required minimum of 5,50%;
•Tier 1 Capital Ratio of 10,72%, with a required minimum of 7,4%;
•Total Capital Ratio of 13,12%, with a required minimum of 9,80%.
In order to ensure a level of capital that can absorb any losses arising from stress scenarios, as referred to in Article 104 ter of EU Directive 36/2013, the Bank of Italy has also set the following capital levels for the Banca Ifis Group, to which the specific countercyclical coefficient is added:
•CET 1 ratio of 9,82%, consisting of an OCR CET1 ratio of 8,82% and a target component (Pillar 2 Guidance) of 1,00%;
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•Tier 1 ratio of 11,72%, consisting of an OCR T1 ratio of 10,72% and a target component (Pillar 2 Guidance) of 1,00%;
•Total Capital Ratio of 14,12%, consisting of an OCR TC ratio of 13,12% and a target component (Pillar 2 Guidance) of 1,00%.
As at 31 December 2025, the Systemic Risk Buffer (SyRB) is calculated at the target rate of 1,0% applied to material exposures, both at the consolidated and individual level.
Below is a summary table of the requirements in force.

Overall Capital Requirement (OCR) | Pillar 2 Guidance | Total
| Art. 92 CRR | SREP | TSCR | COMBINED REQUIREMENT * | OCR ratio | P2G | OCR and P2G
RCC | COUNTERCYCLICAL BUFFER | SYSTEMIC RISK
CET1 | 4,50% | 1,00% | 5,50% | 2,50% | 0,03% | 0,79% | 8,82% | 1,00% | 9,82%
Tier 1 | 6,00% | 1,40% | 7,40% | 2,50% | 0,03% | 0,79% | 10,72% | 1,00% | 11,72%
TC | 8,00% | 1,80% | 9,80% | 2,50% | 0,03% | 0,79% | 13,12% | 1,00% | 14,12%

At 31 December 2025, the Banca Ifis Group easily met the above-specified requirements.
Procedure for determining the minimum requirement for liabilities subject to bail-in
The minimum requirements of Own Funds and Eligible Liabilities (MREL) communicated by the Bank of Italy to the Parent Company Banca Ifis following the conclusion of the review process of the same, to be maintained at an individual level, are 13,12% of TREA 3 (Total Risk Exposure Amount) and 4,66% of LRE (Leverage Ratio Exposure).
At 31 December 2025, following the monitoring process, both indicators were easily met.
It is also noted that following the introduction of EU Directive 2024/1174 (the “Daisy Chain Act”) there is no longer a minimum MREL requirement in respect of the subsidiary Banca Credifarma.
Group liquidity position and coefficients
The Group has liquidity at 31 December 2025 (in reserves and free assets that can be financed in the ECB) such as to enable it to easily respect the LCR and NSFR limits (with indexes of 747% and 118% respectively).
3 Alternatively, the MREL can be calculated by not deducting the combined buffer requirement from the numerator and calculating the floor by adding the following requirements: regulatory requirement under Art. 92, paragraph 1, letter c) Reg. 575/2013, amounting to 8%, SREP add-on requirement of 1,8%, and an add-on double the combined capital buffer requirement of 6,64% as of the reporting date. The minimum threshold added together is 16,44%.
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Reclassified income statements items
In connection with the acquisition of control of illimity Bank S.p.A. and Euclidea SIM S.p.A. (the latter subsequently renamed Fürstenberg SIM S.p.A. as from 26 January 2026), finalised respectively on 4 July 2025 and 21 November 2025, and the consequent inclusion in the Banca Ifis Group's scope of consolidation of these acquired companies and, in the case of illimity Bank, also of the other companies belonging to the so-called "illimity Group"), the economic figures at 31 December 2025 are not fully comparable with those at the end of the previous year. However, it should be noted that in the tables and comments to the individual items, the contributions of the illimity Group and of Euclidea SIM are presented, where relevant. For more details on the contribution of the illimity Group, refer to the section 'Performance of the Group's Main Companies' in the Directors' Report on the Group below.
Formation of net banking income
Net banking income amounts to 789,5 million Euro, of which 122,7 million Euro relate to the limited contribution to the second quarter 2025 of the illimity Group. Net of this effect, the margin stood at 666,8 million Euro, down compared to 699,2 million Euro as at 31 December 2024, mainly as a result of the lower contribution from net interest income.
The main components of net banking income and their changes compared to the previous year are presented below.

FORMATION OF NET BANKING INCOME(in thousands of Euro) | AMOUNTS | CHANGE (1)
31.12.2025 | of which:illimity Group | of which:Banca Ifis Group(2) | 31.12.2024 | ABSOLUTE | %
Net interest income | 559.345 | 88.546 | 470.799 | 532.505 | (61.706) | (11,6)%
Net commission income | 122.574 | 31.450 | 91.124 | 91.775 | (651) | (0,7)%
Other components of net banking income | 107.540 | 2.699 | 104.841 | 74.872 | 29.969 | 40,0%
Net banking income | 789.459 | 122.695 | 666.764 | 699.152 | (32.388) | (4,6)%

(1) The change shown refers only to changes in the Ifis Group perimeter excluding the illimity Group's contribution.
(2) Banca Ifis Group means the perimeter of the Banca Ifis Group, excluding the illimity Group's contribution and including the contribution made by Euclidea SIM.
Net interest income amounts to 559,3 million Euro, of which 88,5 million Euro come from the July-December 2025 contribution of the illimity Group. Adjusting for this effect, it amounts to 470,8 million Euro, down from 532,5 million Euro at 31 December 2024. 2025 net interest income was affected by the less favourable development of reference rates. The Commercial & Corporate Banking Segment contributed 219,0 million Euro (down from 238,8 million Euro in 2024, mainly due to lower contributions from the Factoring Area as well as the Lending and Corporate Banking Segment), while the Npl Segment recorded net interest income of 269,1 million Euro (down slightly from 280,3 million Euro in 2024). On the other hand, in the Governance & Services and Non-Core Segment, its contribution to the margin decreased by 30,8 million Euro compared to the previous year, mainly due to lower margins in the area of treasury (-23,5 million Euro), the physiological lower contribution of the run-off portfolio of the Non-Core division (-4,4 million Euro) as well as the lower contribution of the Proprietary Finance division (-3,2 million Euro).
Net commissions amount to 122,6 million Euro, of which 31,5 million Euro attributable to the second-half result of the illimity Group. Net of this component, the commission margin amounts to 91,1 million Euro, essentially in line with the figure of 91,8 million Euro at 31 December 2024. In particular:
•commission income amounts to 150,7 million Euro, of which 38,5 million Euro related to the second-half figure for the illimity Group. Net of this effect, commission income amounts to 112,2 million Euro, essentially in line with 31 December 2024, and mainly refers to factoring commissions relating to the
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homonymous Area of the Commercial & Corporate Banking Segment, charged to the turnover generated by individual customers (on a non-recourse or with-recourse basis, in the flat or monthly formula), commissions for Structured Finance transactions, leasing transactions (associated with the homonymous Area of the Commercial & Corporate Banking Segment), servicing activities on behalf of third parties and other fees usually requested from customers for the services provided;
•commission expenses amount to 28,1 million Euro, and this figure includes 7,1 million Euro in commission costs associated with the illimity Group for the six months July-December 2025. Without this effect, commission expenses amount to 21,0 million Euro, up 6,5% compared with the figure at 31 December 2024, and essentially refer to commissions paid to banks and financial intermediaries such as management commissions, commissions paid to third parties for the distribution of Leasing Area products as well as the intermediation activity of affiliated banks and other credit brokers.
The other components of the net banking income amount to 107,5 million Euro at 31 December 2025, and this figure includes 2,7 million Euro of the illimity Group's contribution relating to the second half of 2025. Excluding this component, this economic aggregate amounts to 104,8 million Euro, an increase of 30,0 million Euro compared to 2024. The components of the total balance of the item at 31 December 2025 are shown below:
•net gains from the sale/repurchase of financial assets and liabilities in the amount of 46,4 million Euro, within which are included net losses of 0,7 million Euro related to the economic effect of the disposals carried out in the six months, July-December 2025 by the illimity Group. Net of this effect, net profits amount to 47,1 million Euro, an increase of 5,8 million Euro compared to net profits of 41,3 million Euro at 31 December 2024) and consist mainly of:
–14,8 million Euro related to securities trading in Banca Ifis's proprietary portfolio, mainly due to divestments of debt securities (down from the figure of 25,1 million Euro for 2024), of which 8,5 million Euro related to bank debt securities and 5,4 million Euro to government securities;
–32,6 million Euro from the disposal of loans in the Npl Segment (up significantly from the figure of 16,1 million Euro at 31 December 2024);
•positive net result of other financial assets and liabilities measured at fair value through profit or loss of 21,4 million Euro, and includes a positive contribution of 1,7 million Euro from the illimity Group for July-December 2025. Net of this component, the item amounts to 19,7 million Euro, down 4,4 million Euro compared to the figure at 31 December 2024, mainly reflecting the net positive changes in fair value in 2025 of the UCITS fund units of Banca Ifis and the Npl Segment for 7,3 million Euro (+0,7 million Euro compared to 31 December 2024) and equity securities of the Parent Company for 12,0 million Euro, a decrease of 4,8 million Euro compared to the figure at 31 December 2024 (which, however, included the capital gain from the sale of 6,2 million Euro of equity financial instruments arising from a debt restructuring transaction of a position in the Non-Core division);
•dividends and similar income generated from shares in the Banca Ifis Group's proprietary portfolio in the amount of 32,1 million Euro, of which 1,1 million Euro came from dividends recorded in the second half of 2025 on the proprietary portfolio of the illimity Group. Net of this contribution, the item amounts to 31,0 million Euro (+18,5 million Euro compared to the figure for 2024);
•positive net trading result of 5,8 million Euro, of which 0,8 million Euro related to the positive result recorded in the second half of 2025 by the illimity Group. Excluding this effect, the net result from trading activities is positive by 5,1 million Euro, an improvement of 6,9 million Euro compared to the negative net result of 1,9 million Euro in 2024, mainly due to the better performance of trading derivatives (+6,6 million Euro compared to the balance at 31 December 2024);
•net result of hedging activities positive for 1,9 million Euro as of 31 December 2025, which includes the negative contribution of 0,1 million Euro related to the ineffectiveness on the July-December 2025 period of the hedging strategies activated by the illimity Group. Net of this effect, the net result is a positive 2,0 million Euro, a significant improvement over the negative figure of 1,1 million Euro at 31 December 2024.
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Formation of net profit (loss) from financial activities
Net profit from financial activities amounts to 680,5 million Euro, of which 42,0 million Euro related to the second half 2025 contribution of the illimity Group. Excluding this effect, the net profit would have been 638,5 million Euro compared with the figure of 661,5 million Euro at 31 December 2024 (-3,5%).

FORMATION OF NET PROFIT (LOSS) FROM FINANCIAL ACTIVITIES (in thousands of Euro) | AMOUNTS | CHANGE (1)
31.12.2025 | of which:illimity Group | of which:Banca Ifis Group(2) | 31.12.2024 | ABSOLUTE | %
Net banking income | 789.459 | 122.695 | 666.764 | 699.152 | (32.388) | (4,6)%
Net credit risk losses/reversals | (108.969) | (80.682) | (28.287) | (37.670) | 9.383 | (24,9)%
Net profit (loss) from financial activities | 680.490 | 42.013 | 638.477 | 661.482 | (23.005) | (3,5)%

(1) The change shown refers only to changes in the Ifis Group perimeter excluding the illimity Group's contribution.
(2) Banca Ifis Group means the perimeter of the Banca Ifis Group, excluding the illimity Group's contribution and including the contribution made by Euclidea SIM.
Net credit risk losses amount to 109,0 million Euro at 31 December 2025, of which 80,7 million Euro related to the credit cost for the July-December 2025 period of the illimity Group. Net of the illimity Group's contribution, net losses amount to 28,3 million Euro, down 9,4 million Euro from 37,7 million Euro at 31 December 2024.
For further details regarding the various dynamics associated with the reclassified credit cost, refer to the more detailed discussion in the following paragraph "Contribution of operating Segments to Group results".
Formation of net profit for the year
The breakdown of net profit for the year is summarised in the table below.

FORMATION OF NET PROFIT(in thousands of Euro) | AMOUNTS | CHANGE (1)
31.12.2025 | of which:illimity Group | of which:Banca Ifis Group(2) | 31.12.2024 | ABSOLUTE | %
Net profit (loss) from financial activities | 680.490 | 42.013 | 638.477 | 661.482 | (23.005) | (3,5)%
Operating costs | (499.660) | (89.663) | (409.997) | (406.916) | (3.081) | 0,8%
Charges related to the banking system | (1.281) | (681) | (600) | (8.136) | 7.536 | (92,6)%
Net allocations to provisions for risks and charges | (4.525) | (152) | (4.373) | (478) | (3.895) | 814,9%
Non-recurring expenses and income | 201.394 | (21.420) | 222.814 | (610) | 223.424 | n.s.
of which: for gain on a bargain purchase on acquisition illimity Bank | 309.939 | - | 309.939 | - | 309.939 | n.a.
Profit (loss) on equity investments | 198 | 198 | - | - | - | n.a.
Gains (losses) on disposal of investments | 195 | 195 | - | - | - | n.a.
Pre-tax profit (loss) from continuing operations | 376.811 | (69.510) | 446.321 | 245.342 | 200.979 | 81,9%
Income taxes for the year relating to current operations | (47.903) | (7.600) | (40.303) | (82.168) | 41.865 | (51,0)%
Profit (loss) for the year | 328.908 | (77.110) | 406.018 | 163.174 | 242.844 | 148,8%
Profit (loss) for the year attributable to non-controlling interests | (912) | 545 | (1.457) | (1.596) | 139 | (8,7)%
Profit (loss) for the year attributable to the Parent Company | 327.996 | (76.565) | 404.561 | 161.578 | 242.983 | 150,4%

(1) The change shown refers only to changes in the Ifis Group perimeter excluding the illimity Group's contribution.
(2) Banca Ifis Group means the perimeter of the Banca Ifis Group, excluding the illimity Group's contribution and including the contribution made by Euclidea SIM.
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Operating costs amount to 499,7 million Euro, of which 89,7 million Euro related to the six-month July-December 2025 operations of the illimity Group. Adjusted for this illimity effect, operating costs amount to 410,0 million Euro, substantially in line with the figure as at 31 December 2024.

OPERATING COSTS(in thousands of Euro) | AMOUNTS | CHANGE (1)
31.12.2025 | of which:illimity Group | of which:Banca Ifis Group(2) | 31.12.2024 | ABSOLUTE | %
Administrative expenses: | 509.204 | 89.101 | 420.103 | 417.390 | 2.713 | 0,6%
a) personnel expenses | 209.906 | 32.897 | 177.009 | 169.852 | 7.157 | 4,2%
b) other administrative expenses | 299.298 | 56.204 | 243.094 | 247.538 | (4.444) | (1,8)%
Net impairment losses/reversals on property, plant and equipment and intangible assets | 36.814 | 7.563 | 29.251 | 23.276 | 5.975 | 25,7%
Other operating income/expenses | (46.358) | (7.001) | (39.357) | (33.750) | (5.607) | 16,6%
Operating costs | 499.660 | 89.663 | 409.997 | 406.916 | 3.081 | 0,8%

(1) The change shown refers only to changes in the Ifis Group perimeter excluding the illimity Group's contribution.
(2) Banca Ifis Group means the perimeter of the Banca Ifis Group, excluding the illimity Group's contribution and including the contribution made by Euclidea SIM.
Personnel expenses amount to 209,9 million Euro, and include 32,9 million Euro of the cost for the second half of 2025 related to employees of the illimity Group. Net of this effect, personnel expenses amount to 177,0 million Euro, an increase of 4,2% compared to the previous year. The number of Banca Ifis Group employees as at 31 December 2025 was 2.695, of which 19 were from the acquisition of Euclidea SIM 4 and 672 related to the illimity Group scope of the acquisition. Net of these scopes, the number of employees was 2.004 (2.013 resources as at 31 December 2024).
Other administrative expenses at 31 December 2025 amount to 299,3 million Euro, of which 56,2 million Euro related to the contribution for the six months July-December 2025 of the illimity Group. Excluding this contribution, the figure amounts to 243,1 million Euro, down 4,4 million Euro compared to 31 December 2024.
The performance of this item is detailed in the table below.
4 Euclidea SIM as of 26 January 2026 was renamed Fürstenberg SIM.
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OTHER ADMINISTRATIVE EXPENSES(in thousands of Euro) | AMOUNTS | CHANGE (1)
31.12.2025 | of which:illimity Group | of which:Banca Ifis Group(2) | 31.12.2024 | ABSOLUTE | %
Expenses for professional services | 129.643 | 11.104 | 118.539 | 134.731 | (16.192) | (12,0)%
Legal and consulting fees | 92.278 | 8.341 | 83.937 | 92.898 | (8.961) | (9,6)%
Fees to auditing firms | 1.879 | 628 | 1.251 | 1.173 | 78 | 6,7%
Outsourced services | 35.486 | 2.136 | 33.350 | 40.660 | (7.310) | (18,0)%
Direct and indirect taxes | 40.875 | 5.340 | 35.535 | 37.448 | (1.913) | (5,1)%
Expenses for purchasing goods and other services | 128.780 | 39.761 | 89.019 | 75.359 | 13.660 | 18,1%
Customer information | 8.105 | 16 | 8.089 | 8.019 | 70 | 0,9%
Software assistance and hire | 55.422 | 30.511 | 24.911 | 22.556 | 2.355 | 10,4%
Postage and archiving of documents | 2.996 | 92 | 2.904 | 3.597 | (693) | (19,3)%
Property expenses | 12.361 | 2.376 | 9.985 | 7.966 | 2.019 | 25,3%
Advertising and inserts | 19.264 | 827 | 18.437 | 12.176 | 6.261 | 51,4%
Business travel and transfers | 5.825 | 275 | 5.550 | 5.555 | (5) | (0,1)%
Car fleet management and maintenance | 3.940 | 206 | 3.734 | 3.556 | 178 | 5,0%
Telephone and data transmission expenses | 3.556 | 76 | 3.480 | 3.342 | 138 | 4,1%
Securitisation costs | 4.044 | 2.249 | 1.795 | 1.808 | (13) | (0,7)%
Other sundry expenses | 13.267 | 3.132 | 10.135 | 6.784 | 3.351 | 49,4%
Total other administrative expenses | 299.298 | 56.204 | 243.094 | 247.538 | (4.444) | (1,8)%

(1) The change shown refers only to changes in the Ifis Group perimeter excluding the illimity Group's contribution.
(2) Banca Ifis Group means the perimeter of the Banca Ifis Group, excluding the illimity Group's contribution and including the contribution made by Euclidea SIM.
The sub-item "expenses for professional services" amount to 129,6 million Euro at 31 December 2025, of which 11,1 million Euro for expenses accruing in the second half of 2025 related to the illimity Group. Net of this effect, the sub-item amounts to 118,5 million Euro, down 16,2 million Euro compared to 31 December 2024 (-12,0%). Expenses for professional services consist mainly of:
•"legal and consulting fees", which amount to 92,3 million Euro in 2025, of which 8,3 million Euro for costs in the six months of July-December 2025 related to the illimity Group. Stripping the balance from this effect, it amounts to 83,9 million Euro, down 9,6% from the previous year's figure, mainly due to lower consulting costs;
•costs for "outsourced services", which amount to 35,5 million Euro at 31 December 2025 and include 2,1 million Euro in costs for the third quarter of 2025 for outsourcing activities within the illimity Group. Without this contribution, costs for outsourced activities amount to 33,4 million Euro, a decrease of 7,3 million Euro compared to the figure for last year. The change is mainly attributable to lower recovery costs related to the Npl Segment.
The sub-item "direct and indirect taxes", amounting to 40,9 million Euro, includes 5,3 million Euro relating to expenses for indirect taxes and duties of the illimity Group pertaining to the second half of 2025. Net of this effect, the sub-item amounts to 35,5 million Euro, a reduction of 5,1% compared with the figure at 31 December 2024.
The sub-item "expenses for purchasing goods and other services" amounts to 128,8 million Euro, of which 39,8 million Euro related to the July-December 2025 contribution of the illimity Group. Excluding this contribution, the
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sub-item amounts to 89,0 million Euro, an increase of 18,1% compared to 31 December 2024. The factors that mainly influence the balance of this sub-item are:
•costs for "software assistance and hire", which amount to 55,4 million Euro and include the effect of the second half of 2025 from the illimity Group in the amount of 30,5 million Euro. Net of this, these costs amount to 24,9 million Euro and are up (+10,4%) compared to the figure for 31 December 2024;
•"property expenses", amounting to 12,4 million Euro and including 2,4 million Euro for the contribution of the illimity Group for the second half of 2025. After deducting this contribution, the expenses in question amount to 10,0 million Euro, an increase of 25,3% compared to December 2024 (+2,0 million Euro);
•expenses for “advertising and inserts”, which increase from 12,2 million Euro to 19,3 million Euro in December 2025, of which 0,8 million Euro for the illimity Group’s promotional costs pertaining to July-December 2025. Excluding this effect, the balance is equal to 18,4 million Euro (+6,3 million Euro compared to 31 December 2024).
Net value adjustments on tangible and intangible assets amount to 36,8 million Euro at 31 December 2025, and include value adjustments pertaining to the illimity Group for July-December 2025 amounting to 7,6 million Euro. Without these effects, the balance amounts to 29,3 million Euro, up 25,7% compared to the figure for the previous year, following the investments in tangible and intangible assets made by the Banca Ifis Group (excluding those indirectly resulting from the acquisition of the illimity Group) during 2024 and 2025.
Other net operating income, amounting to 46,4 million Euro at 31 December 2025, includes the second half 2025 contribution of the illimity Group, represented by net income of 7,0 million Euro. Excluding this effect, other net income amounts to 39,4 million Euro, up 5,6 million Euro (+16,6%) compared to the figure at 31 December 2024. The item refers mainly to revenue from the recovery of expenses charged to third parties. The relevant cost component is included in other administrative expenses, namely under legal expenses and indirect taxes, as well as recoveries of expenses associated with leasing operations.
As a result of the dynamics outlined above, operating costs at 31 December 2025 amount to 499,7 million Euro, and include a total of 89,7 million Euro in costs related to the illimity Group's operations in the July-December 2025 period. Without this contribution, operating costs amount to 410,0 million Euro, essentially stable compared to the December 2024 balance.
The item “charges relating to the banking system” includes costs incurred during the year for the operation of the banking system guarantee funds, and amounts to 1,3 million Euro at 31 December 2025, of which 0,7 million Euro represented the contribution of the illimity Group. The balance as at 31 December 2024 amounts to 8,1 million Euro, relating to the cost of the annual contribution to the Interbank Deposit Protection Fund (FITD), of which 7,9 million Euro were attributable to Banca Ifis and the remaining amount to Banca Credifarma.
The item “net allocations to provisions for risks and charges” recorded net allocations of 4,5 million Euro as at 31 December 2025; this figure includes the effect of the illimity Group for the six-month period from July to December 2025, amounting to net allocations of 0,2 million Euro. Net of this component, the balance as at 31 December 2025 shows net allocations of 4,4 million Euro, while the comparative balance as at 31 December 2024 reported net allocations of 0,5 million Euro. Refer to the previous section "Reclassified Statement of financial position items" for details on changes in the provisions for risk and charges during the year.
The item "non-recurring charges and income" shows a net positive balance of 201,4 million Euro at 31 December 2025 and consists of the following items:
•non-recurring operating costs attributable to 2025, amounting to 108,5 million Euro and mainly related to the public exchange and purchase offer for illimity Bank launched by Banca Ifis in January 2025 (for more details see the section on “Significant events during the year” within this Directors’ Report on the Group), as well as to the process of integrating the illimity Group companies into the Banca Ifis Group (such as personnel expenses incurred for voluntary redundancy incentive schemes), of which 87,1 million Euro
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relate to costs incurred by the Parent Company Banca Ifis and 21,4 million Euro to expenses recognised by illimity Bank (the latter limited to the period from July to December 2025);
•the non-recurring income relating to the "gain on a bargain purchase" in accordance with IFRS 3 in the amount of 309,9 million Euro, arising from the acquisition of illimity Bank on 4 July 2025 and from the comparison between the consideration paid and the fair value of the net assets acquired (for more details on the determination of this income, refer to "Part G - Business Combination Transactions involving Companies or Business Units" in the Notes to the Consolidated Financial Statements).
At 31 December 2025, there are net profits on equity investments of 0,2 million Euro, which are entirely attributable to the illimity Group (and therefore this amount is limited to the second half of 2025). Specifically, it represents the effect on the six-month period from July to December 2025 of the valuation of investments subject to joint control or significant influence by illimity Bank.
In 2025, there are net gains from the sale of investments in the amount of 0,2 million Euro, entirely attributable to income realised in the second half of 2025 by the illimity Group.
Profit from current operations before tax amounts to 376,8 million Euro, and incorporates the illimity Group's second-half 2025 earnings before tax loss of 69,5 million Euro.
Income taxes for the nine months ended 31 December 2025 amount to 47,9 million Euro, and include 7,6 million Euro in respect of taxes for the second half of 2025 of the illimity Group (including the tax effect related to the PPA). At the overall level, the tax rate was 12,71%, reflecting the non-taxability of the aforementioned 309,9 million Euro gain on a bargain purchase and the non-recognition of deferred tax assets from tax losses accrued in respect of the companies acquired during the year.
Stripping minority profits for 0,9 million Euro, net profit attributable to the Parent Company amounting to 328,0 million Euro, including the negative contribution from the illimity Group in the second half of 2025 of 76,6 million Euro and the non-recurring effects related to the public exchange and purchase offer for illimity Bank and to the integration process of the illimity Group companies, which are summarised under the item “non-recurring income and expenses”.
In order to isolate the extraordinary effects on the Group's income statement of the income and expenses related to the business combination carried out during the year, the following table provides a normalisation of the result at 31 December 2025.

NORMALISATION PROFIT (LOSS) FOR THE YEAR(in thousand Euro) | AMOUNTS | CHANGE (1)
31.12.2025 | of which:illimity Group | of which:Banca Ifis Group(2) | 31.12.2024 | ABSOLUTE | %
Profit (loss) for the year attributable to the Parent company | 327.996 | (76.565) | 404.561 | 161.578 | 242.983 | 150,4%
gain on a bargain purchase on acquisition of illimity Bank | (309.939) | - | (309.939) | - | (309.939) | n.a.
non-recurring charges (net of tax effect) | 79.513 | 18.972 | 60.541 | 356 | 60.184 | n.s.
taxes on closure of litigation | 10.516 | 10.516 | - | - | - | n.a.
Normalised profit (loss) for the year attributable to the Parent Company | 108.086 | (47.077) | 155.163 | 161.934 | (6.772) | (4,2)%

(1) The change shown refers only to changes in the Ifis Group perimeter excluding the illimity Group's contribution.
(2) Banca Ifis Group means the perimeter of the Banca Ifis Group, excluding the illimity Group's contribution and including the contribution made by Euclidea SIM.
In addition to the gain on a bargain purchase and the non-recurring expenses mainly incurred for the acquisition and integration of the illimity Group, net of the related tax effect, the tax effects related to the settlement of a
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dispute of the illimity Group as a result of the new strategic choices in the new parent company Banca Ifis have been excluded.
Net of the above, the normalised result for FY 2025 amounts to 108,1 million Euro, and includes a normalised loss of 47,1 million Euro relative to the contribution of the illimity Group. Adjusting for this effect, the normalised result amounts to 155,2 million Euro, a decrease of 6,8 million Euro compared to the normalised result for the previous year (from which the non-recurring expenses for 2024, connected to the integration of the former Revalea within the Banca Ifis Group, were excluded, net of the relative tax effect).
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Reclassified quarterly evolution

RECLASSIFIED CONSOLIDATED INCOME STATEMENT: QUARTERLY EVOLUTION (in thousands of Euro) | YEAR 2025 | YEAR 2024
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1
Net interest income | 186.544 | 130.291 | 111.756 | 130.754 | 128.106 | 117.036 | 146.605 | 140.758
Net commission income | 40.129 | 38.091 | 23.829 | 20.525 | 22.209 | 22.657 | 23.835 | 23.074
Other components of net banking income | 26.391 | 17.053 | 36.582 | 27.514 | 17.001 | 17.629 | 18.836 | 21.406
Net banking income | 253.064 | 185.435 | 172.167 | 178.793 | 167.316 | 157.322 | 189.276 | 185.238
Net credit risk losses/reversals | (78.553) | (11.256) | (10.991) | (8.169) | (8.795) | (13.034) | (7.252) | (8.589)
Net profit (loss) from financial activities | 174.511 | 174.179 | 161.176 | 170.624 | 158.521 | 144.288 | 182.024 | 176.649
Personnel expenses | (62.032) | (62.777) | (42.917) | (42.180) | (42.617) | (40.622) | (43.217) | (43.396)
Other administrative expenses | (95.329) | (84.722) | (61.952) | (57.295) | (69.975) | (53.376) | (62.246) | (61.941)
Net impairment losses/reversals on property, plant and equipment and intangible assets | (12.588) | (10.598) | (7.183) | (6.445) | (6.257) | (6.199) | (5.646) | (5.174)
Other operating income/expenses | 18.580 | 10.784 | 8.612 | 8.382 | 11.597 | 6.629 | 7.133 | 8.391
Operating costs | (151.369) | (147.313) | (103.440) | (97.538) | (107.252) | (93.568) | (103.976) | (102.120)
Charges related to the banking system | (1.234) | (26) | (11) | (10) | (15) | (25) | (8.087) | (9)
Net allocations to provisions for risks and charges | (7.496) | (2.564) | 5.398 | 137 | 87 | 141 | 1.443 | (2.149)
Non-recurring expenses and income | (170.148) | 381.103 | (5.137) | (4.424) | (54) | (236) | (280) | (40)
of which: gain on a bargain purchase on acquisition illimity Bank | (90.484) | 400.423 | - | - | - | - | - | -
Profit (loss) on equity investments | 606 | (408) | - | - | - | - | - | -
Gains (losses) on disposal of investments | 141 | 54 | - | - | - | - | - | -
Pre-tax profit (loss) for the period from continuing operations | (154.989) | 405.025 | 57.986 | 68.789 | 51.287 | 50.600 | 71.124 | 72.331
Income taxes for the period relating to continuing operations | 10.654 | (19.675) | (17.784) | (21.098) | (15.898) | (17.280) | (24.289) | (24.701)
Profit (loss) for the period | (144.335) | 385.350 | 40.202 | 47.691 | 35.389 | 33.320 | 46.835 | 47.630
(Profit) loss for the period attributable to non-controlling interests | 66 | (203) | (368) | (407) | (379) | (366) | (397) | (454)
Profit (loss) for the period attributable to the Parent Company | (144.269) | 385.147 | 39.834 | 47.284 | 35.010 | 32.954 | 46.438 | 47.176

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NORMALISED RESULT: QUARTERLY EVOLUTION (in thousands of Euro) | YEAR 2025 | YEAR 2024
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1
Profit (loss) for the period attributable to the Parent Company | (144.269) | 385.147 | 39.834 | 47.284 | 35.010 | 32.954 | 46.438 | 47.176
gain on a bargain purchase on acquisition illimity Bank | 90.484 | (400.423) | - | - | - | - | - | -
non-recurring expenses (net of tax effect) | 59.739 | 13.375 | 3.438 | 2.961 | (16) | 158 | 188 | 26
taxes on closure of litigation | - | 10.516 | - | - | - | - | - | -
Normalised profit (loss) for the period attributable to the Parent Company | 5.954 | 8.615 | 43.272 | 50.245 | 34.994 | 33.112 | 46.626 | 47.202

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APM - Alternative Performance Measures
The Banca Ifis Group has defined a number of indicators, listed in the tables of the Group's KPIs, that provide Alternative Performance Measures (APMs) to help investors identify significant operational trends and financial ratios. In identifying these APMs, the specific indications were taken into account on how to represent the APMs published by ESMA on 1 April 2022 (document called “ESMA32-51-370 Questions and answers – ESMA Guidelines on Alternative Performance Measures”).
In addition, the statement issued by ESMA on 14 October 2025 entitled 'European common enforcement priorities for 2025 annual financial reports', with specific reference to HICs emphasises that their calculations and definitions should be consistent over time, and that caution should be exercised when introducing or adjusting HICs solely to reflect geopolitical impacts (such as customs tariffs). In general, ESMA recommends that IAPs allow for a fair review of the development and performance with reference to the companies' situation and business.
For a proper understanding of these APMs, please consider the following:
•these measures are based exclusively on the Group's historical data and are not indicative of the Group's future performance;
•APMs are non-IFRS measures and, although they are derived from the Group's Consolidated Financial Statements, they are not audited;
•APMs are not intended as a substitute for IFRS measures;
•said APMs shall be considered in conjunction with the Group's financial information derived from its Consolidated Financial Statements;
•since these are non-IFRS measures, the definitions of the measures used by the Group may differ from, and therefore not be comparable to, those used by other companies/groups;
•the APMs used by the Group are consistent across all reporting periods for which the Group has disclosed financial information in these Consolidated Financial Statements.
In accordance with the guidelines issued by ESMA (ESMA/2015/1415), below is a detailed explanation of how these measures were calculated in order to facilitate their understanding.

ROE - Return on equity(in thousands of Euro) | YEAR
2025 | 2024
A. Profit (loss) for the year attributable to the Parent Company | 327.996 | 161.578
B. Average equity attributable to the Parent Company | 1.953.657 | 1.725.002
ROE (A/B) | 16,8% | 9,4%

ROE - Normalised return on equity(in thousand Euro) | YEAR
2025 | 2024
A. Profit (loss) for the year attributable to the Parent Company normalised (1) | 108.086 | 161.934
B. Average equity attributable to the Parent Company normalised (2) | 1.764.656 | 1.725.196
Normalised ROE (A/B) | 6,1% | 9,4%

(1) For the logic of normalisation of the profit for the year pertaining to the Parent Company as at 31 December 2025, refer to the section above entitled "Group financials and income results", paragraph "Reclassified income statement items".
(2) The average normalised parent shareholders' equity figure was determined by considering the shareholders' equity figures including the normalised parent shareholders' equity instead of the actual parent shareholders' equity.
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The average equity attributable to the Parent Company is calculated as a quarterly average of the point figures recorded for each quarter of the reference period.

ROA - Return on Assets(in thousands of Euro) | YEAR
2025 | 2024
A. Profit (loss) for the year attributable to the Parent Company | 327.996 | 161.578
B. Total assets | 21.648.384 | 13.825.738
ROA (A/B) | 1,5% | 1,2%

ROA - Normalised return on Assets(in thousand Euro) | YEAR
2025 | 2024
A. Profit (loss) for the year attributable to the Parent Company normalised (1) | 108.086 | 161.934
B. Total assets | 21.648.384 | 13.825.738
Normalised ROA (A/B) | 0,5% | 1,2%

(1) For the logic of normalisation of the profit for the year pertaining to the Parent Company as at 31 December 2025, refer to the section above entitled "Group financials and income results", paragraph "Reclassified income statement items".

Reclassified cost/income ratio(in thousands of Euro) | YEAR
2025 | 2024
A. Operating costs | 499.660 | 406.916
B. Net banking income | 789.459 | 699.152
Reclassified cost/income ratio (A/B) (1) | 63,3% | 58,2%

(1) The reclassified 2025 cost/income ratio of 63,3% includes the illimity Group's contribution for the second half of 2025. Excluding this contribution, the 2025 reclassified cost/income ratio is 61,5%.

Payout ratio (in thousands of Euro) | YEAR
2025 | 2024
A. Profit (loss) for the year attributable to the Parent Company | 327.996 | 161.578
B. Parent Company dividends (1) | 129.489 | 111.910
Payout Ratio (B/A) (1) | 39,5% | 69,3%

(1) The figures for FY 2025 comprise the total of 1,20 Euro per share distributed as an interim dividend in November 2025 and 0,92 Euro per share as a proposal for a final dividend for the FY 2025 prepared by the Board of Directors of Banca Ifis.

Normalised payout ratio(in thousand Euro) | YEAR
2025 | 2024
A. Profit (loss) for the year attributable to the Parent Company normalised (1) | 108.086 | 161.934
B. Parent Company dividends (2) | 129.489 | 111.910
Normalised payout ratio (B/A) (2) | 119,8% | 69,1%

(1) For the logic of normalisation of the profit for the year pertaining to the Parent Company as at 31 December 2025, refer to the section above entitled "Group financials and income results", paragraph "Reclassified income statement items".
(2) The figures for FY 2025 comprise the total of 1,20 Euro per share distributed as an interim dividend in November 2025 and 0,92 Euro per share as a proposal for a final dividend for the FY 2025 prepared by the Board of Directors of Banca Ifis.
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The Parent Company's dividends are calculated as follows:

Parent Company dividends | YEAR
2025 | 2024
A. Unitary dividend Euro (1) | 2,12 | 2,12
B. Number of shares outstanding (in thousands) (2) | 61.080 | 52.788
Parent Company dividends (A x B) (1) | 129.489 | 111.910

(1) The figures for FY 2025 comprise the total of 1,20 Euro per share distributed as an interim dividend in November 2025 and 0,92 Euro per share as a proposal for a final dividend for the FY 2025 prepared by the Board of Directors of Banca Ifis.
(2) Outstanding shares are net of treasury shares held in the portfolio. This figure is calculated as the weighted average of the No. of shares outstanding at the ex-dividend date and the number of shares outstanding at the ex-dividend date, using the relevant dividend per share as a weighting factor. The 2025 figure takes the value as of 31 December 2025 as the number of shares outstanding on the ex-dividend date.
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Contribution of operating Segments to Group results
Results by operating Segment
In accordance with standard IFRS 8, a company must provide information that allows users of the financial statements to assess the nature and effects on such of the balance of the business it pursues and the economic contexts in which it operates. The contribution therefore needs to be highlighted as made by the various operating Segments to forming the Group’s economic result.
Identification of the operating Segments is consistent with the methods adopted by the Management to take operative decisions and is based on internal reporting, used in order to allocate the resources to the various segments and analyse the relevant performance.
In line with the structure used by Management to analyse the Group's results, the information by Segment is broken down as follows:
•Commercial & Corporate Banking Segment, represents the Group's commercial offer dedicated to companies (with the exception of the offer to companies provided by the companies of the so-called “illimity Group”, which is specifically included in the illimity Segment) and also includes personal loans with the assignment of one-fifth of salary or pension. The Segment consists of the Factoring, Leasing and Corporate Banking & Lending Business Areas. This Segment includes, within the Corporate Banking & Lending Area, the contribution deriving from Euclidea SIM, a company acquired on 21 November 2025 (for further details, see "Part G - Business Combinations" of the Notes to the Consolidated Financial Statements);
•Npl Segment, dedicated to non-recourse factoring and managing distressed loans, servicing and managing non-performing, secured loans, with the exception of Npl loans acquired by the so-called "illimity Group" (which are specifically included in the illimity Segment);
•Governance & Services and Non-Core Segment, which provides the Segments operating in the Group's core businesses with the financial resources and services necessary to perform their respective activities. The Segment includes treasury and proprietary securities desk activities, as well as some corporate loans portfolio assigned for run-off insofar as held to be non-strategic to the Group's development, with the exception of those falling within the remit of the illimity Group (which is included in the illimity Segment referred to in the point below);
•illimity Segment, which includes the contribution of the business units of all the companies included within the illimity Group headed by illimity Bank (for more details on this, refer to the specific section "Voluntary Takeover Bid on all the shares of illimity Bank" within this Directors' Report on the Group). For this reason, this Segment is new in the second half of 2025 in terms of its contribution to the results of the Banca Ifis Group, and therefore the income statement figures only reflect the post-acquisition period (the six months from July to December 2025 only). The results are inclusive of the effects of the so-called “PPA - Purchase Price Allocation”.
The financial and balance sheet numerical of the Segments are attributed on the basis of homogeneous allocation criteria in order to take into account both the specificity of the various segments and the need to guarantee effective monitoring of business performance over time.
Moreover, considering the foregoing, the Segment information in relation to the items of the income statement shows the results at the level of the net profit.
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STATEMENT OF FINANCIAL POSITION DATA(in thousands of Euro) | COMMERCIAL & CORPORATE BANKING SEGMENT | NPL SEGMENT | GOVERNA NCE & SERVICES AND NON-CORE SEGMENT | ILLIMITY SEGMENT | TOTAL CONS.GROUP TOTAL
TOTAL COMMERCI AL & CORPORAT E BANKING SEGMENT | of which: FACTORING AREA | of which: LEASING AREA | of which: CORPORATE BANKING & LENDING AREA
Other financial assets mandatorily measured at fair value through profit or loss |  |  |  |  |  |  |  |
Amounts at 31.12.2025 | 164.082 | 949 | - | 163.133 | 58.253 | 56.918 | 501.366 | 780.619
Amounts at 31.12.2024 | 143.933 | 975 | - | 142.958 | 36.293 | 56.806 | - | 237.032
% Change | 14,0% | (2,7)% | - | 14,1% | 60,5% | 0,2% | n.a. | 229,3%
Financial assets measured at fair value through other comprehensive income |  |  |  |  |  |  |  |
Amounts at 31.12.2025 | 873 | - | - | 873 | - | 1.114.264 | 544.134 | 1.659.271
Amounts at 31.12.2024 | 993 | - | - | 993 | - | 700.837 | - | 701.830
% Change | (12,1)% | - | - | (12,1)% | - | 59,0% | n.a. | 136,4%
Receivables due from customers (1) |  |  |  |  |  |  |  |
Amounts at 31.12.2025 | 7.216.527 | 2.772.130 | 1.673.498 | 2.770.899 | 1.592.328 | 2.281.560 | 5.045.581 | 16.135.996
Amounts at 31.12.2024 | 6.985.624 | 2.900.077 | 1.612.971 | 2.472.576 | 1.521.001 | 2.303.393 | - | 10.810.018
% Change | 3,3% | (4,4)% | 3,8% | 12,1% | 4,7% | (0,9)% | n.a. | 49,3%
Goodwill |  |  |  |  |  |  |  |
Amounts at 31.12.2025 | 17.248 | - | - | 17.248 | 38.020 | - | - | 55.268
Amounts at 31.12.2024 | - | - | - | - | 38.020 | - | - | 38.020
% Change | n.a. | - | - | n.a. | 0,0% | - | - | 45,4%
Other assets |  |  |  |  |  |  |  |
Amounts at 31.12.2025 | 114.656 | 114.656 | - | - | - | 195.170 | 241.914 | 551.740
Amounts at 31.12.2024 | 163.000 | 163.000 | - | - | - | 219.965 | - | 382.965
% Change | (29,7)% | (29,7)% | - | - | - | (11,3)% | n.a. | 44,1%

(1) In the Governance & Services and Non-Core Segment, at 31 December 2025, there are government securities for 1.770,6 million Euro (1.579,0 million Euro at 31 December 2024) and in the illimity Group Segment, at 31 December 2025, there are government securities for 1.000,2 million Euro.
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RECLASSIFIED INCOME STATEMENT DATA AT 31.12.2025(in thousands of Euro) | COMMERCIAL & CORPORATE BANKING SEGMENT | NPL SEGMENT | GOVER-NANCE & SERVICES AND NON-CORE SEGMENT (1) | ILLIMITY SEGMENT | CONS.GROUP TOTAL
TOTAL COMMER-CIAL & CORPORATE BANKING SEGMENT | of which: FACTORING AREA | of which: LEASING AREA | of which: CORPORATE BANKING & LENDING AREA
Net interest income | 219.013 | 101.544 | 52.741 | 64.728 | 269.149 | (17.363) | 88.546 | 559.345
Net commission income | 95.254 | 59.005 | 11.105 | 25.144 | (2.420) | (1.710) | 31.450 | 122.574
Other components of net banking income | 27.583 | (26) | - | 27.609 | 32.406 | 44.852 | 2.699 | 107.540
Net banking income | 341.850 | 160.523 | 63.846 | 117.481 | 299.135 | 25.779 | 122.695 | 789.459
Net credit risk losses/reversals | (34.323) | (8.018) | (4.579) | (21.726) | (140) | 6.176 | (80.682) | (108.969)
Net profit (loss) from financial activities | 307.527 | 152.505 | 59.267 | 95.755 | 298.995 | 31.955 | 42.013 | 680.490
Operating costs | (179.905) | (100.821) | (34.463) | (44.621) | (190.515) | (39.577) | (89.663) | (499.660)
Charges related to the banking system | - | - | - | - |  | (600) | (681) | (1.281)
Net allocations to provisions for risks and charges | (2.058) | (1.882) | 142 | (318) | (2.684) | 369 | (152) | (4.525)
Non-recurring expenses and income | - | - | - | - | - | 222.814 | (21.420) | 201.394
Profit (loss) on equity investments | - | - | - | - | - | - | 198 | 198
Gains (losses) on disposal of investments | - | - | - | - | - | - | 195 | 195
Pre-tax profit (loss) from continuing operations | 125.564 | 49.802 | 24.946 | 50.816 | 105.796 | 214.961 | (69.510) | 376.811
Income taxes for the year relating to current operations | (38.511) | (15.274) | (7.651) | (15.586) | (32.448) | 30.656 | (7.600) | (47.903)
Profit (loss) for the year | 87.053 | 34.528 | 17.295 | 35.230 | 73.348 | 245.617 | (77.110) | 328.908
(Profit) loss for the year attributable to non-controlling interests | - | - | - | - | - | (1.457) | 545 | (912)
Profit (loss) for the year attributable to the Parent Company | 87.053 | 34.528 | 17.295 | 35.230 | 73.348 | 244.160 | (76.565) | 327.996

(1) The income statement figures of the Governance & Services and Non-Core Segment at 31 December 2025 include 309,9 million Euro related to the non-recurring income, i.e. the so-called "gain on a bargain purchase" in accordance with IFRS 3 related to the acquisition of illimity Bank, shown under "Non-recurring charges and income".
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SEGMENT KPIs(in thousands of Euro) | COMMERCIAL & CORPORATE BANKING SEGMENT | NPL SEGMENT | GOVERNAN CE & SERVICES AND NON-CORE SEGMENT (1) | ILLIMITY SEGMENT (1)
TOTAL COMMERCIA L & CORPORATE BANKING SEGMENT | of which: FACTORING AREA | of which: LEASING AREA | of which: CORPORATE BANKING & LENDING AREA
Credit cost (2) |  |  |  |  |  |  |
Amounts at 31.12.2025 | 0,50% | 0,30% | 0,28% | 0,84% | n.s. | (1,09)% | n.s.
Amounts at 31.12.2024 | 0,61% | 0,26% | 0,29% | 1,20% | n.s. | (0,41)% | n.a.
% Change | (0,11)% | 0,04% | (0,01)% | (0,36)% | n.s. | (0,68)% | n.a.
Coverage ratio on gross bad loans |  |  |  |  |  |  |
Amounts at 31.12.2025 | 73,8% | 80,9% | 86,6% | 44,8% | n.s. | 41,0% | n.s.
Amounts at 31.12.2024 | 74,0% | 83,3% | 94,2% | 47,2% | n.s. | 53,1% | n.a.
% Change | (0,2)% | (2,4)% | (7,6)% | (2,4)% | n.s. | (12,1)% | n.a.
RWA (3) |  |  |  |  |  |  |
Amounts at 31.12.2025 | 5.923.080 | 2.467.630 | 1.288.940 | 2.166.510 | 1.819.369 | 1.215.149 | 3.480.873
Amounts at 31.12.2024 | 5.769.725 | 2.729.714 | 1.200.451 | 1.839.560 | 1.733.692 | 1.171.961 | n.a.
% Change | 2,7% | (9,6)% | 7,4% | 17,8% | 4,9% | 3,7% | n.a.

(1) In the Governance & Services and Non-Core Segment, at 31 December 2025, there are government securities for 1.770,6 million Euro (1.579,0 million Euro at 31 December 2024) and in the illimity Group Segment, at 31 December 2025, there are government securities for 1.000,2 million Euro.
(2) This indicator is calculated comparing the value of net credit risk losses/reversals over the annual average loans to customers (calculated quarterly).
(3) Risk Weighted Assets; the amount only relates to the credit risk.
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Commercial & Corporate Banking Segment
The Commercial & Corporate Banking Segment includes the following business Areas:
•Factoring: Area dedicated to supporting the trade credit of SMEs operating on the domestic market, which develop towards export, or which from export, turn to Italian customers; it includes a business unit specialised in the acquisition of tax receivables transferred from bankruptcy proceedings, which operates under the Fast Finance brand. This unit acquires tax receivables, accrued and accruing, already requested for reimbursement, or future, arising from proceedings or in previous years;
•Leasing: Area that provides finance and operating leases - but not real estate leases, as the Group does not offer them - to small economic operators and SMEs;
•Corporate Banking & Lending: this business area includes the contribution from Euclidea SIM, a company acquired on 21 November 2025, and combines several units:
–Structured Finance, a segment dedicated to supporting companies and private equity funds in structuring financing, both bilateral and pooled;
–Equity Investments, a segment dedicated to investments in non-financial companies and in units of intermediaries;
–Lending, a segment dedicated to the Group's medium/long-term operations, focussed on supporting the business operating cycle and the disbursement of consumer credit in the form of salary- or pension-backed loans.
Below are the Segment results at 31 December 2025.

RECLASSIFIED INCOME STATEMENT DATA (in thousands of Euro) | YEAR | CHANGE
2025 | 2024 | ABSOLUTE | %
Net interest income | 219.013 | 238.795 | (19.782) | (8,3)%
Net commission income | 95.254 | 96.175 | (921) | (1,0)%
Other components of net banking income | 27.583 | 16.454 | 11.129 | 67,6%
Net banking income | 341.850 | 351.424 | (9.574) | (2,7)%
Net credit risk losses/reversals | (34.323) | (40.413) | 6.090 | (15,1)%
Net profit (loss) from financial activities | 307.527 | 311.011 | (3.484) | (1,1)%
Operating costs | (179.905) | (164.065) | (15.840) | 9,7%
Net allocations to provisions for risks and charges | (2.058) | (3.194) | 1.136 | (35,6)%
Pre-tax profit (loss) from continuing operations | 125.564 | 143.752 | (18.188) | (12,7)%
Income taxes for the year relating to current operations | (38.511) | (48.144) | 9.633 | (20,0)%
Profit (loss) for the year | 87.053 | 95.608 | (8.555) | (8,9)%

Net profit of the Commercial & Corporate Banking Segment amount to 87,1 million Euro, down 8,6 million Euro compared to 31 December 2024, mainly due to the decrease in net banking income of 9,6 million Euro as well as higher operating costs of 15,8 million Euro (mainly due to the strengthening of the workforce and higher depreciation and amortisation), the effects of which were partially offset by lower net credit risk losses of 6,1 million Euro and an improvement of 1,1 million Euro in the item "net allocations to provisions for risks and charges".
The Segment's net banking income amounts to 341,9 million Euro, down 2,7% compared to the previous year as a result of the reduction in the contribution of the Factoring Area (-16,3 million Euro), the effect of which was partially offset by the positive performance of the Corporate Banking & Lending Area (+4,2 million Euro) and the Leasing Area (+2,5 million Euro). Overall, against the reduction in net interest income (-19,8 million Euro) and essential
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stability of net commissions, the other components of net banking income grew significantly by 11,1 million Euro, thanks to the contribution of the Corporate Banking & Lending Area.
As at 31 December 2025, the Segment recorded net value adjustments of 34,3 million Euro, down 15,1% compared to the previous financial year.
Operating costs amount to 179,9 million Euro as at 31 December 2025, up by 9,7% compared to the previous financial year. This result is mainly due to higher personnel expenses (mainly due to increased headcount), higher amortisation on new software developments that came into use in 2025, and higher other administrative expenses (mainly related to communication and marketing initiatives to support the business in question).
The item “net allocations to provisions for risks and charges” as at 31 December 2025 amounts to 2,1 million Euro, mainly attributable to a 1,9 million Euro provision for Ecobonus related to the Factoring Area. The figure is down from net allocations of 3,2 million Euro at 31 December 2024 (which mainly related to provisions to cover risks connected with outstanding disputes on tax credits for superbonus and other building tax bonuses).
The operating performance of the business areas making up the Segment is described and analysed further on.
The following table details the gross and net amounts as well as the relevant coverage ratios of receivables due from customers by credit quality.

COMMERCIAL & CORPORATE BANKING(in thousands of Euro) | BAD LOANS | UNLIKELY TO PAY | PAST DUE EXPOSURES | TOTAL NON-PERFORMING (STAGE 3) | PERFORMING EXPOSURES (STAGES 1 AND 2) | TOTAL LOANS
POSITION AT 31.12.2025 |  |  |  |  |  |
Nominal amount | 126.099 | 234.011 | 36.437 | 396.547 | 7.071.724 | 7.468.271
Losses | (93.000) | (112.790) | (4.537) | (210.327) | (41.416) | (251.744)
Carrying amount | 33.099 | 121.221 | 31.900 | 186.220 | 7.030.307 | 7.216.527
Coverage ratio | 73,8% | 48,2% | 12,5% | 53,0% | 0,6% | 3,4%
Gross ratio | 1,7% | 3,1% | 0,5% | 5,3% | 94,7% | 100,0%
Net ratio | 0,5% | 1,7% | 0,4% | 2,6% | 97,4% | 100,0%
POSITION AT 31.12.2024 |  |  |  |  |  |
Nominal amount | 118.745 | 208.606 | 57.286 | 384.637 | 6.860.428 | 7.245.065
Losses | (87.825) | (97.986) | (5.012) | (190.823) | (68.618) | (259.441)
Carrying amount | 30.920 | 110.620 | 52.274 | 193.814 | 6.791.810 | 6.985.624
Coverage ratio | 74,0% | 47,0% | 8,7% | 49,6% | 1,0% | 3,6%
Gross ratio | 1,6% | 2,9% | 0,8% | 5,3% | 94,7% | 100,0%
Net ratio | 0,4% | 1,6% | 0,7% | 2,8% | 97,2% | 100,0%

Net non-performing exposures in the Commercial & Corporate Banking Segment stand at 186,2 million Euro at 31 December 2025, down 7,6 million Euro on 31 December 2024 (193,8 million Euro). The trend is mainly attributable to a decrease in exposures classified as past due of 20,4 million Euro (mainly attributable to the Factoring Area), the effect of which was partially offset by the increase in the year of 10,6 million Euro of unlikely to pay (mainly relating to exposures of the Corporate Banking & Lending Area).
The coverage ratio of the impaired portfolio was 53,0% as at 31 December 2025, up from 49,6% as at 31 December 2024 mainly due to the reduction in the incidence of past due within the impaired portfolio.
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In the Commercial & Corporate Banking Segment, there are mainly impaired loans classified as POCI, referring mainly to assets arising from business combinations (excluding those arising from the recent combination relating to the illimity Group, whose POCI are specifically shown in the illimity Segment): the net value of these assets was 8,4 million Euro at 31 December 2025, of which 5,6 million Euro were impaired (both these figures are substantially in line with those at 31 December 2024).

KPIs | AMOUNTS | CHANGE
31.12.2025 | 31.12.2024 | ABSOLUTE | %
Credit cost (1) | 0,50% | 0,61% | - | (0,11)%
RWA (2) | 5.923.080 | 5.769.725 | 153.355 | 2,7%

(1) This indicator is calculated comparing the value of net credit risk losses/reversals over the annual average loans to customers (calculated quarterly).
(2) Risk Weighted Assets; the amount only relates to the credit risk.
To ensure a better understanding of the results for the year, below we comment on the contribution of the individual business areas to the Commercial & Corporate Banking Segment.
Factoring Area

RECLASSIFIED INCOME STATEMENT DATA (in thousands of Euro) | YEAR | CHANGE
2025 | 2024 | ABSOLUTE | %
Net interest income | 101.544 | 114.552 | (13.008) | (11,4)%
Net commission income | 59.005 | 62.279 | (3.274) | (5,3)%
Other components of net banking income | (26) | 11 | (37) | n.s.
Net banking income | 160.523 | 176.842 | (16.319) | (9,2)%
Net credit risk losses/reversals | (8.018) | (6.763) | (1.255) | 18,6%
Net profit (loss) from financial activities | 152.505 | 170.079 | (17.574) | (10,3)%
Operating costs | (100.821) | (89.547) | (11.274) | 12,6%
Net allocations to provisions for risks and charges | (1.882) | (8.905) | 7.023 | (78,9)%
Pre-tax profit (loss) from continuing operations | 49.802 | 71.627 | (21.825) | (30,5)%
Income taxes for the year relating to current operations | (15.274) | (24.558) | 9.284 | (37,8)%
Profit (loss) for the year | 34.528 | 47.069 | (12.541) | (26,6)%

At 31 December 2025, the contribution made by the Factoring Area towards net banking income booked by the Commercial & Corporate Banking Segment comes to 160,5 million Euro, down 9,2% on last year’s results. This result is due to the lesser contribution of net interest income (-13,0 million Euro) and net commission income (-3,3 million Euro). Turnover in 2025 amounts to 13,4 billion Euro, an increase of 122 million Euro compared to the figure as at 31 December 2024, while receivables amount to 3,3 billion Euro, a decrease of 346 million Euro compared to the previous year's figure.
Net credit risk losses total 8,0 million Euro at 31 December 2025, up on the 6,8 million Euro at 31 December 2024.
Therefore, net profit from financial activities amounts to 152,5 million Euro (-10,3% on 31 December 2024).
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Operating costs of 100,8 million Euro at 31 December 2025 are up 11,3 million Euro compared to 31 December 2024. As previously mentioned, this increase was mainly due to higher personnel expenses related to the increase in the workforce, higher amortisation on new software developments that came into use in 2025, as well as higher other administrative expenses (mainly for communication and marketing initiatives to support the business in question).
The item "net allocations to provisions for risks and charges" shows net allocations made at 31 December 2025 of 1,9 million Euro, a significant improvement compared to the net allocations of 8,9 million Euro at 31 December 2024 (which were attributable to the aforementioned provisions to cover risks related to outstanding disputes on tax credits for superbonus and other building tax bonuses). This improvement substantially relates to some releases recorded in 2025 for the successful resolution of existing disputes, which partially offset the provisions made in the year for the area in question, mainly associated with Ecobonus allocations in the amount of 1,9 million Euro.
As regards the main equity aspects, at 31 December 2025, total net commitments for the Area amount to 2.772,1 million Euro, down 4,4% on the figure at 31 December 2024, mainly due to the decrease of net performing exposures (-115,1 million Euro).
The following table shows the gross and net amounts as well as the relevant coverage ratios of receivables due from customers by credit quality.

FACTORING AREA (in thousands of Euro) | BAD LOANS | UNLIKELY TO PAY | PAST DUE EXPOSURES | TOTAL NON-PERFORMING (STAGE 3) | PERFORMING EXPOSURES (STAGES 1 AND 2) | TOTAL LOANS
POSITION AT 31.12.2025 |  |  |  |  |  |
Nominal amount | 85.714 | 73.254 | 16.207 | 175.175 | 2.715.440 | 2.890.615
Losses | (69.359) | (39.987) | (615) | (109.961) | (8.523) | (118.485)
Carrying amount | 16.355 | 33.267 | 15.592 | 65.214 | 2.706.916 | 2.772.130
Coverage ratio | 80,9% | 54,6% | 3,8% | 62,8% | 0,3% | 4,1%
POSITION AT 31.12.2024 |  |  |  |  |  |
Nominal amount | 74.911 | 72.638 | 31.948 | 179.497 | 2.838.617 | 3.018.114
Losses | (62.381) | (37.890) | (1.200) | (101.471) | (16.566) | (118.037)
Carrying amount | 12.530 | 34.748 | 30.748 | 78.026 | 2.822.051 | 2.900.077
Coverage ratio | 83,3% | 52,2% | 3,8% | 56,5% | 0,6% | 3,9%

The Area's total net non-performing exposures amount to 65,2 million Euro, down 16,4% from the 31 December 2024 figure, mainly due to the decrease in past due (-15,2 million Euro) positions, only partly offset by the increase in non-performing exposures. In overall terms, the coverage of impaired exposures increases from 56,5% to 62,8%, mainly due to these changes in terms of the proportion of non-performing loans and past due positions to total impaired loans.

KPIs | AMOUNTS | CHANGE
31.12.2025 | 31.12.2024 | ABSOLUTE | %
Credit cost (1) | 0,30% | 0,26% | - | 0,04%
RWA (2) | 2.467.630 | 2.729.714 | (262.084) | (9,6)%

(1) This indicator is calculated comparing the value of net credit risk losses/reversals over the annual average loans to customers (calculated quarterly).
(2) Risk Weighted Assets; the amount only relates to the credit risk.
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The credit cost increases from 0,26% at 31 December 2024 to 0,30% at 31 December 2025 as a result of the aforementioned economic dynamics in 2025.
It should be noted that net non-performing exposures include a total of 20,1 million Euro in respect of the NHS, down 9,1 million Euro compared with 31 December 2024.
Leasing Area

RECLASSIFIED INCOME STATEMENT DATA (in thousands of Euro) | YEAR | CHANGE
2025 | 2024 | ABSOLUTE | %
Net interest income | 52.741 | 50.530 | 2.211 | 4,4%
Net commission income | 11.105 | 10.786 | 319 | 3,0%
Net banking income | 63.846 | 61.316 | 2.530 | 4,1%
Net credit risk losses/reversals | (4.579) | (4.508) | (71) | 1,6%
Net profit (loss) from financial activities | 59.267 | 56.808 | 2.459 | 4,3%
Operating costs | (34.463) | (34.000) | (463) | 1,4%
Net allocations to provisions for risks and charges | 142 | (344) | 486 | n.s.
Pre-tax profit (loss) from continuing operations | 24.946 | 22.464 | 2.482 | 11,0%
Income taxes for the year relating to current operations | (7.651) | (7.524) | (127) | 1,7%
Profit (loss) for the year | 17.295 | 14.940 | 2.355 | 15,8%

Net banking income from the Leasing Area amounts to 63,8 million Euro, an increase of 2,5 million Euro compared with the figure at 31 December 2024 (+4,1%) due mainly to the higher commercial volumes.
Net credit risk losses on receivables amount to 4,6 million Euro, essentially in line with the figure at 31 December 2024.
Operating costs total 34,5 million Euro, essentially stable on 31 December 2024.
At 31 December 2025, the Area's total net loans amount to 1.673,5 million Euro, up 3,8% compared to 31 December 2024.
The following table shows the gross and net amounts as well as the relevant coverage ratios of receivables due from customers by credit quality.
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LEASING AREA (in thousands of Euro) | BAD LOANS | UNLIKELY TO PAY | PAST DUE EXPOSURES | TOTAL NON-PERFORMING (STAGE 3) | PERFORMING EXPOSURES (STAGES 1 AND 2) | TOTAL LOANS
POSITION AT 31.12.2025 |  |  |  |  |  |
Nominal amount | 13.266 | 16.693 | 9.612 | 39.571 | 1.669.784 | 1.709.355
Losses | (11.485) | (9.833) | (2.853) | (24.171) | (11.686) | (35.857)
Carrying amount | 1.781 | 6.860 | 6.759 | 15.400 | 1.658.098 | 1.673.498
Coverage ratio | 86,6% | 58,9% | 29,7% | 61,1% | 0,7% | 2,1%
POSITION AT 31.12.2024 |  |  |  |  |  |
Nominal amount | 10.074 | 17.628 | 8.505 | 36.207 | 1.612.635 | 1.648.842
Losses | (9.494) | (11.222) | (2.180) | (22.896) | (12.975) | (35.871)
Carrying amount | 580 | 6.406 | 6.325 | 13.311 | 1.599.660 | 1.612.971
Coverage ratio | 94,2% | 63,7% | 25,6% | 63,2% | 0,8% | 2,2%

Net impaired exposures amount to 15,4 million Euro at 31 December 2025, an increase of 2,1 million Euro compared to December 2024 mainly due to the increase in the year in non-performing positions. The coverage ratio of impaired assets increased from 63,2% in December 2024 to 61,1% in December 2025, while the coverage of performing loans was 0,7%, slightly down from the 31 December 2024 figure of 0,8%.

KPIs | AMOUNTS | CHANGE
31.12.2025 | 31.12.2024 | ABSOLUTE | %
Credit cost (1) | 0,28% | 0,29% | - | (0,01)%
RWA (2) | 1.288.940 | 1.200.451 | 88.489 | 7,4%

(1) This indicator is calculated comparing the value of net credit risk losses/reversals over the annual average loans to customers (calculated quarterly).
(2) Risk Weighted Assets; the amount only relates to the credit risk.
Corporate Banking & Lending Area

RECLASSIFIED INCOME STATEMENT DATA (in thousands of Euro) | YEAR | CHANGE
2025 | 2024 | ABSOLUTE | %
Net interest income | 64.728 | 73.713 | (8.985) | (12,2)%
Net commission income | 25.144 | 23.110 | 2.034 | 8,8%
Other components of net banking income | 27.609 | 16.443 | 11.166 | 67,9%
Net banking income | 117.481 | 113.266 | 4.215 | 3,7%
Net credit risk losses/reversals | (21.726) | (29.142) | 7.416 | (25,4)%
Net profit (loss) from financial activities | 95.755 | 84.124 | 11.631 | 13,8%
Operating costs | (44.621) | (40.518) | (4.103) | 10,1%
Net allocations to provisions for risks and charges | (318) | 6.055 | (6.373) | (105,3)%
Pre-tax profit (loss) from continuing operations | 50.816 | 49.661 | 1.155 | 2,3%
Income taxes for the year relating to current operations | (15.586) | (16.062) | 476 | (3,0)%
Profit (loss) for the year | 35.230 | 33.599 | 1.631 | 4,9%

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Net banking income of the Corporate Banking & Lending Area comes to 117,5 million Euro at 31 December 2025, up 4,2 million Euro on 31 December 2024 (+3,7%). The positive change is a result of the combined effect of the following factors:
•a 9,0 million Euro decrease in net interest income, resulting from lower contributions from Lending and Corporate Banking of 5,1 million Euro and 3,9 million Euro, respectively;
•higher net commission income of 2,0 million Euro, mainly from the Lending unit;
•significant increase in the contribution of the other components of net banking income, amounting to 11,2 million Euro, mainly represented by the year write-back of the fair value of securities in the Corporate Banking unit.
Net credit risk losses amount to 21,7 million Euro, down 7,4 million Euro compared to 31 December 2024.
The increase in operating costs of 4,1 million Euro compared to 31 December 2024 was mainly attributable to higher personnel expenses related to the increase in the number of staff, higher legal expenses and lower claims against customers in the Lending business, as well as higher file management costs related to the salary-/pension-backed loans business in line with the higher volumes disbursed.
The item “net allocations to provisions for risks and charges” shows net allocations equal to 0,3 million Euro for the year in question. The comparison with the comparative figure is very much impacted by net releases of 6,1 million Euro in 2024, which related to the settlement of disputes arising from the acquisition of the former Aigis Banca business unit.
At 31 December 2025, the Area's total net receivables due from customers amounts to 2.770,9 million Euro, up 298,3 million Euro on 31 December 2024.
The following table shows the gross and net amounts as well as the relevant coverage ratios of receivables due from customers by credit quality.

CORPORATE BANKING & LENDING AREA (in thousands of Euro) | BAD LOANS | UNLIKELY TO PAY | PAST DUE EXPOSURES | TOTAL NON-PERFORMING (STAGE 3) | PERFORMING EXPOSURES (STAGES 1 AND 2) | TOTAL LOANS
POSITION AT 31.12.2025 |  |  |  |  |  |
Nominal amount | 27.119 | 144.064 | 10.618 | 181.801 | 2.686.500 | 2.868.301
Losses | (12.156) | (62.970) | (1.069) | (76.195) | (21.207) | (97.402)
Carrying amount | 14.963 | 81.094 | 9.549 | 105.606 | 2.665.293 | 2.770.899
Coverage ratio | 44,8% | 43,7% | 10,1% | 41,9% | 0,8% | 3,4%
POSITION AT 31.12.2024 |  |  |  |  |  |
Nominal amount | 33.760 | 118.340 | 16.833 | 168.933 | 2.409.176 | 2.578.109
Losses | (15.950) | (48.874) | (1.632) | (66.456) | (39.077) | (105.533)
Carrying amount | 17.810 | 69.466 | 15.201 | 102.477 | 2.370.099 | 2.472.576
Coverage ratio | 47,2% | 41,3% | 9,7% | 39,3% | 1,6% | 4,1%

Net impaired exposures at 31 December 2025, amounting to 105,6 million Euro, increase by 3,1 million Euro compared to the end of 2024, as the increase in unlikely-to-pay loans during the year (+11,6 million Euro) was only partially offset by the decrease in bad debts and impaired past-due exposures. The coverage of impaired loans ranges from 39,3% in December 2024 to 41,9% in December 2025.
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KPIs | AMOUNTS | CHANGE
31.12.2025 | 31.12.2024 | ABSOLUTE | %
Credit cost (1) | 0,84% | 1,20% | - | (0,36)%
RWA (2) | 2.166.510 | 1.839.560 | 326.950 | 17,8%

(1) This indicator is calculated comparing the value of net credit risk losses/reversals over the annual average loans to customers (calculated quarterly).
(2) Risk Weighted Assets; the amount only relates to the credit risk.
Npl Segment
This is the Banca Ifis Group’s Segment dedicated to non-recourse acquisition and managing secured and unsecured distressed retail loans (excluding those resulting from the acquisition of the illimity Group, included in the specific illimity Segment), as well as third-party portfolio management. The business is closely associated with converting non-performing loans into performing assets and collecting them.
The table below shows the loans portfolio of the Npl Segment, by method of transformation and accounting criterion; the “interest on income statement” refers to the components of the net banking income deriving from the booking at amortised cost of the related loans portfolio; in particular, interest income is included from the amortised cost for 182,3 million Euro and other components of the net interest income from cash flow changes for 126,5 million Euro, as reported in the summary table of “Reclassified economic data” below in this paragraph.

PROPRIETARY PORTFOLIO OF THE NPL SEGMENT (in thousands of Euro) | OUTSTANDING NOMINAL AMOUNT | CARRYING AMOUNTS | CARRYING AMOUNT / RES. NOM. AMOUNT | INTEREST ON INCOME STATEMENT
Cost | 497.893 | 138.989 | 27,9% | -
Non-judicial | 8.871.761 | 479.024 | 5,4% | 106.299
of which: Collective (curves) | 8.307.572 | 183.936 | 2,2% | 14.013
of which: Plans | 564.189 | 295.088 | 52,3% | 92.286
Judicial | 8.449.335 | 930.802 | 11,0% | 202.474
of which: Other positions undergoing judicial processing | 1.372.340 | 139.463 | 10,2% | -
of which: Writs, Property Attachments, Garnishment Orders | 2.086.513 | 634.972 | 30,4% | 176.601
of which: Secured and Corporate | 4.990.482 | 156.367 | 3,1% | 25.873
Total | 17.818.989 | 1.548.815 | 8,7% | 308.773

The business can be divided up into three macro categories:
•post-acquisition management, when all information retrieval operations take place to help decide the most appropriate conversion method, the receivable is classified in a so-called "staging" area and recognised at cost (139,0 million Euro at 31 December 2025), with no contribution to profit or loss. As a rule, 6-12 months later, the positions are directed towards the most appropriate form of management, depending on their characteristics;
•non-judicial operations, which deal with practices that can be handled through collection by settlement. Practices awaiting information about the most appropriate collection instrument are classified into a basin called “mass management” and at 31 December 2025 come to 183,9 million Euro as compared with
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165,5 million Euro at 31 December 2024 (up 11,1%). Practices on which a realignment plan has been agreed and formalised come in at 295,1 million Euro at 31 December 2025;
•legal management, which covers all practices in the various stages of legal processing, ranging from obtaining a court order to a garnishment order. Practices awaiting the most appropriate legal action are included in the category of “Other positions undergoing judicial processing” and come to 139,5 million Euro at 31 December 2025; practices in phases of writ, attachment order and garnishment order are allocated to a specific basin, coming in at 635,0 million Euro. The judicial management basin include all “Secured and Corporate” positions of corporate banking origin or real estate, equal to 156,4 million Euro at 31 December 2025.
Finally, it should be noted that, by seizing market opportunities and in compliance with its business model, the Group may proceed with the sale to third parties of Npl portfolios consisting of positions for which all collection activities have essentially been completed and no further significant recoveries are expected.

RECLASSIFIED INCOME STATEMENT DATA (in thousands of Euro) | YEAR | CHANGE
2025 | 2024 | ABSOLUTE | %
Net interest income | 269.149 | 280.300 | (11.151) | (4,0)%
Net commission income | (2.420) | (1.041) | (1.379) | 132,5%
Other components of net banking income | 32.406 | 16.957 | 15.449 | 91,1%
- of which: gains (losses) on the disposal of financial assets | 32.582 | 16.070 | 16.512 | 102,8%
Net banking income | 299.135 | 296.216 | 2.919 | 1,0%
Net credit risk losses/reversals | (140) | 52 | (192) | n.s.
Net profit (loss) from financial activities | 298.995 | 296.268 | 2.727 | 0,9%
Operating costs | (190.515) | (199.185) | 8.670 | (4,4)%
Net allocations to provisions for risks and charges | (2.684) | 2.227 | (4.911) | n.s.
Non-recurring expenses and income | - | (610) | 610 | (100,0)%
Pre-tax profit (loss) from continuing operations | 105.796 | 98.700 | 7.096 | 7,2%
Income taxes for the year relating to current operations | (32.448) | (33.056) | 608 | (1,8)%
Profit (loss) for the year | 73.348 | 65.644 | 7.704 | 11,7%

Net interest income, which comes to 269,1 million Euro (down 11,2 million Euro on the balance recorded for the previous year), consists of:
•interest income from amortised cost, i.e. the interest accruing at the original effective rate, which increases from 185,1 million Euro at 31 December 2024 to 182,3 million Euro at 31 December 2025, due to a decrease in the average value of underlying assets, which have completed the documentary check phase and have left the staging phase;
•interest income on notes and other minority components, which shows a balance of 3,2 million Euro at 31 December 2025, a reduction on the 6,8 million Euro recorded in 2024;
•other components of net interest income from change in cash flow, which change from 130,5 million Euro of 31 December 2024 to 126,5 million Euro at 31 December 2025, and reflect the change in expected cash flows according to the collections made in respect of forecasts. This item is made up of, on the one hand, out-of-court settlements totalling 37,4 million Euro, to which recovery plans contributed 50,8 million Euro, partly offset by the negative effect of curve models totalling 13,4 million Euro. On the other hand, are legal expenses of 89,1 million Euro, following actions for injunction, attachment and garnishment orders;
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•interest expense of 42,9 million Euro, up 0,8 million Euro on the previous year’s balance.
Net commissions represent a cost of 2,4 million Euro at 31 December 2025, a rise compared to the cost of 1,0 million Euro at 31 December 2024.
During 2025, portfolios of loans and debt securities belonging to the Npl Segment were sold, in line with the Group's policies, generating net profits on disposals of 32,6 million Euro, an increase of 16,5 million Euro compared to 31 December 2024.
In view of the above, the Npl Segment's net banking income comes to a total of 299,1 million Euro, up 2,9 million Euro compared with 31 December 2024.
The item "net credit risk losses/reversals" of the Npl Segment is exclusively related to the change in the allowance for impairment losses on securities and loans related to securitisation transactions with underlying impaired loans.
Operating costs, amounting to 190,5 million Euro as at 31 December 2025, decreased by 8,7 million Euro compared to 31 December 2024, mainly due to lower Npl recovery expenses.
The item “net allocations to provisions for risks and charges” as at 31 December 2025 showed a negative balance of 2,7 million Euro, mainly attributable to a provision to guarantee a portfolio sale. The comparison with the comparative figure as at 31 December 2024, characterised by net reversals of 2,2 million Euro, is influenced by the fact that significant reversals were recorded in that year on disputed files.
As a consequence of the foregoing, the year’s profit of the Npl Segment is 73,3 million Euro, up 7,7 million Euro on 31 December 2024.
Below is the breakdown of net loans by credit quality.

STATEMENT OF FINANCIAL POSITION DATA (in thousands of Euro) | AMOUNTS | CHANGE
31.12.2025 | 31.12.2024 | ABSOLUTE | %
Net bad loans | 1.136.236 | 1.184.378 | (48.142) | (4,1)%
Net unlikely to pay | 400.758 | 308.540 | 92.218 | 29,9%
Net non-performing past due exposures | 3.995 | 3.837 | 158 | 4,1%
Total net non-performing exposures to customers (Stage 3) | 1.540.989 | 1.496.755 | 44.234 | 3,0%
Total net performing exposures (Stages 1 and 2) | 51.339 | 24.246 | 27.093 | 111,7%
- of which: proprietary loans acquired | 7.826 | 10.666 | (2.840) | (26,6)%
- of which: loans and current accounts vs customers | 3.164 | 533 | 2.631 | n.s.
- of which: debt securities | 37.439 | 11.602 | 25.837 | 222,7%
- of which: receivables related to servicer activities | 2.910 | 1.445 | 1.465 | 101,4%
Total on-balance-sheet receivables due from customers | 1.592.328 | 1.521.001 | 71.327 | 4,7%
- of which: owned receivables acquired measured at amortised cost | 1.548.815 | 1.507.421 | 41.394 | 2,7%

As regards the Npl Segment loans, 1.548,8 million Euro are represented by receivables classified as POCI - Purchased or originated credit-impaired -, the category envisaged by the accounting standard IFRS 9. These are loans that were non-performing at the date they were acquired or originated. These receivables represent the Segment's core business. Excluded from this classification are new disbursements of performing loans, debt securities measured at amortised cost, and receivables related to servicer activities on behalf of third parties.
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KPIs | AMOUNTS | CHANGE
31.12.2025 | 31.12.2024 | ABSOLUTE | %
Nominal amount of receivables managed | 17.818.989 | 21.605.929 | (3.786.940) | (17,5)%
RWA (1) | 1.819.369 | 1.733.692 | 85.677 | 4,9%

(1) Risk Weighted Assets; the amount only relates to the credit risk.
Total Estimated Remaining Collections (ERC) amount to 2,5 billion Euro.

NPL SEGMENT NON-PERFORMING LOAN PORTFOLIO PERFORMANCE | 31.12.2025 | 31.12.2024
Opening loan portfolio | 1.507.421 | 1.629.215
Purchases (+) | 168.558 | 18.032
Sales (-) | (77.455) | (49.588)
Gains (losses) on disposals (+/-) | 32.632 | 16.068
Interest income from amortised cost (+) | 182.298 | 185.126
Other components of interest from change in cash flow (+) | 126.475 | 130.487
Collections (-) | (391.114) | (421.919)
Closing loan portfolio | 1.548.815 | 1.507.421

Total purchases in the Npl Segment in 2025 come to 168,6 million Euro, a significant increase on the 18,0 million Euro recorded at 31 December 2024. In 2025, sales of Npls were completed for a total price of 77,5 million Euro, which generated net profits of 32,6 million Euro.
At 31 December 2025, the portfolio managed by the Npl Segment includes 1.771.840 positions, for a nominal amount of 17,8 billion Euro.
Governance & Services and Non-Core Segment
The Segment comprises, among other things, the resources required for the performance of the services of the Strategic Planning, Finance, Operations, Human Resources, Communication, Marketing, Public Affairs & Sustainability functions, as well as the structures responsible for raising, managing and allocating financial resources to the operating Segments. This Segment also includes Proprietary Finance activities (proprietary securities desk) and Securitisation & Structured Solution activities (investment in Asset Backed Securities, instrumental to the realisation of securitisation transactions), with the exception of those falling within the competence of the illimity Group (which is included in the specific illimity Segment). The Segment also includes run-off portfolios originated from the former Interbanca as well as other residual personal loan portfolios.
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RECLASSIFIED INCOME STATEMENT DATA (in thousands of Euro) | YEAR | CHANGE
2025 | 2024 | ABSOLUTE | %
Net interest income | (17.363) | 13.410 | (30.773) | (229,5)%
Net commission income | (1.710) | (3.359) | 1.649 | (49,1)%
Other components of net banking income | 44.852 | 41.461 | 3.391 | 8,2%
Net banking income | 25.779 | 51.512 | (25.733) | (50,0)%
Net credit risk losses/reversals | 6.176 | 2.691 | 3.485 | 129,5%
Net profit (loss) from financial activities | 31.955 | 54.203 | (22.248) | (41,0)%
Operating costs | (39.577) | (43.666) | 4.089 | (9,4)%
Charges related to the banking system | (600) | (8.136) | 7.536 | (92,6)%
Net allocations to provisions for risks and charges | 369 | 489 | (120) | (24,5)%
Non-recurring expenses and income | 222.814 | - | 222.814 | n.a.
-of which: for gain on a bargain purchase provisional on acquisition illimity Bank | 309.939 | - | 309.939 | n.a.
Pre-tax profit (loss) from continuing operations | 214.961 | 2.890 | 212.071 | n.s.
Income taxes for the year relating to current operations | 30.656 | (968) | 31.624 | n.s.
Profit (loss) for the year | 245.617 | 1.922 | 243.695 | n.s.
(Profit) loss for the year attributable to non-controlling interests | (1.457) | (1.596) | 139 | (8,7)%
Profit (loss) for the year attributable to the Parent Company | 244.160 | 326 | 243.834 | n.s.

The Segment's net banking income amounts to 25,8 million Euro, down 25,7 million Euro compared to 31 December 2024 and is determined in particular by the following dynamics:
•net interest income is negative for 17,4 million Euro, decreasing by 30,8 million Euro compared with 31 December 2024. The negative variance is attributable for 23,5 million Euro to lower margins on the treasury side (mainly due to lesser loan volumes compared with 2024), for 4,4 million Euro is due to lower net interest income of the run-off portfolio of the Non-Core division and 3,2 million Euro to the lower contribution from the Proprietary Finance unit.
•other components of net banking income increase by 3,4 million Euro. The positive change is mainly due to the improved performance recorded on the Segment's proprietary portfolio, where the positive effect of higher dividends and similar income of 9,8 million Euro and higher trading profits of 7,9 million Euro was only partially offset by the lower contribution of 9,8 million Euro from gains on disposals and the lower fair value measurements of the financial assets of the Non-Core division of 4,8 million Euro (which, however, in 2024, were characterised by the disposal of a participating financial instrument with a capital gain of 6,2 million Euro).
In terms of funding, the “Rendimax deposit account” product continues to constitute the Group’s main source of finance, with a comprehensive cost of approximately 127,1 million Euro, 6,3 million Euro lower than last year. The reduction was mainly due to lower average assets under management, which fell from 4.394 million Euro in 2024 to 4.219 million Euro at 31 December 2025. The average rate stood at 3,01% at 31 December 2025, broadly in line with last year.
At 31 December 2025, the carrying amount of bonds issued by Banca Ifis amounts to 1.909,7 million Euro , up by 402,4 million Euro compared to the figure at 31 December 2024 (1.507,3 million Euro) mainly as a result of the
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issue on 8 July 2025 of a 400 million Euro bond maturing in November 2029 as part of the EMTN programme (for more details on this, see the section "Significant events occurred in the year" in the Directors’ Report on the Group). Interest expenses accrued in 2025 on total issues amount to 103,1 million Euro.
Funding through securitisations (excluding those relating to the illimity Group, allocated to the illimity Segment) amounts to 952,6 million Euro as at 31 December 2025, and decreased by 687,5 million Euro compared to the figure as at 31 December 2024 following the total repurchase of the senior securities of the Emma and Indigo Lease securitisations (which had a total carrying amount of 668,8 million Euro as at 31 December 2024). For further details with reference to these securitisations, refer to "Section 2 - Prudential Consolidation Risks", subsection "1.4 Liquidity Risk", paragraph "Self-Securitisation Transactions" in "Part E - Information on Risks and Related Hedging Policies" of the Notes to the Consolidated Financial Statements. As a result of these trends during the year, the Segment's securitisation funding as at 31 December 2025 consisted solely of securities issued by the ABCP Programme vehicle in the amount of 952,6 million Euro, relating to the senior tranche.
Accrued interest expense drops from 77,5 million Euro at 31 December 2024 to 40,2 million Euro at 31 December 2025 due to the aforementioned subscriptions by Banca Ifis of the Emma and Indigo Lease securities previously placed with third parties, as well as due to the change in the market curves to which the securitisations are indexed.
Also worth mentioning is the access to funding through an MRO refinancing operation in the amount of 500 million Euro, carried out at the end of December and repaid on 7 January 2026, and an OT (Other Type of operation) operation with the ECB in the amount of 260 million US Dollar (equal to 221 million Euro), repaid on 8 January 2026.
Overall, the average cost of funding allocated to the Segment stood at 3,30% at 31 December 2025, down from the 3,87% average for 2024.
With regard to the credit cost, the figure at 31 December 2025 shows net write-backs of 6,2 million Euro, an improvement of 3,5 million Euro compared to 31 December 2024, essentially due to the positive restructuring of an individually significant position.
Operating costs amount to 39,6 million Euro, recording a reduction of 4,1 million Euro compared to 31 December 2024, mainly due to lower consultancy costs.
The item “charges related to the banking system” includes the costs incurred during the financial year for the operation of the banking system guarantee funds (excluding the portion attributable to illimity Bank, which is allocated to the illimity segment), and amounts to 0,6 million Euro. The comparative balance as at 31 December 2024 amounted to 8,1 million Euro, as it related to the cost of the annual contribution to the Interbank Deposit Protection Fund (FITD), of which 7,9 million Euro were attributable to Banca Ifis and the remaining amount to Banca Credifarma.
With reference to the item “net allocations to provisions for risks and charges”, it shows net reversals of 0,4 million Euro in 2025, substantially in line with the net reversals of 0,5 million Euro in 31 December 2024.
The item "non-recurring charges and income" shows a net positive balance of 222,8 million Euro at 31 December 2025 and consists of the following items:
•non-recurring operating costs attributable to 2025, amounting to 87,1 million Euro and mainly related to the public exchange and purchase offer for illimity Bank launched by Banca Ifis in January 2025 (for more details see the section on “Significant events during the year” within this Directors’ Report on the Group), as well as to the process of integrating the illimity Group companies into the Banca Ifis Group (such as personnel expenses incurred for voluntary redundancy incentive schemes), limited to the portion pertaining to the Governance & Services and Non-Core Segment. In other words, non-recurring costs incurred by companies of the illimity Group are excluded, as they are included in the specific illimity Segment;
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•the non-recurring income relating to the "gain on a bargain purchase" in accordance with IFRS 3 amounting to 309,9 million Euro, arising from the acquisition of illimity Bank on 4 July 2025 and the comparison of the consideration paid with the fair value of the net assets acquired.
Taxes for the year allocated to the Governance & Services and Non-Core Segment were positive for 30,7 million Euro (compared to negative taxes of 1,0 million Euro at 31 December 2024), due to the presence within the Segment's gross profit of 215,0 million Euro of the aforementioned "gain on a bargain purchase" of 309,9 million Euro, which is not taxed.
As a result of the trends described above, the Governance & Services and Non-Core Segment's result for the year was a profit of 245,6 million Euro, a significant increase compared to the figure at 31 December 2024, which amounted to a profit of 1,9 million Euro (+243,7 million Euro) mainly due to the inclusion in the figures at 31 December 2025 of the aforementioned gain on a bargain purchase in the amount of 309,9 million Euro and the aforementioned non-recurring expenses attributable to the Segment (amounting to 87,1 million Euro gross of tax and 60,5 million Euro net of tax). Excluding the profit attributable to minority interests attributable to the Segment, the Segment's contribution to the profit attributable to the Parent Company is positive by 244,2 million Euro. If these non-recurring items were excluded from the result for the financial year, the Governance & Services and Non-Core Segment would register a loss of 5,2 million Euro, down from the profit of 0,3 million Euro at 31 December 2024.
As regards equity figures, at 31 December 2025, total net receivables for the Segment amount to 2.281,6 million Euro, down 21,8 million Euro on the figure at 31 December 2024 (2.303,4 million Euro).
It should be noted that the Governance & Services and Non-Core Segment includes receivables, mainly impaired, belonging to the POCI category, mainly referring to business combinations performed by the Banca Ifis Group during previous financial years (excluding receivables arising from the business combination relating to the illimity Group, which are allocated to the specific illimity Segment):
•net non-performing loans: 5,9 million Euro at 31 December 2025, up 0,2 million Euro on the figure recorded at 31 December 2024;
•net performing exposures: 9,8 million Euro at 31 December 2025, down 1,3 million Euro on the figure recorded at 31 December 2024.
The following table shows the gross and net amounts as well as the relevant coverage ratios of receivables due from customers by credit quality.

GOVERNANCE & SERVICES AND NON-CORE SEGMENT(in thousands of Euro) | BAD LOANS | UNLIKELY TO PAY | PAST DUE EXPOSURES | TOTAL NON-PERFORMING (STAGE 3) | PERFORMING EXPOSURES (STAGES 1 AND 2) | TOTAL LOANS (1)
POSITION AT 31.12.2025 |  |  |  |  |  |
Nominal amount | 9.208 | 41.125 | 7.046 | 57.379 | 2.243.188 | 2.300.567
Losses | (3.778) | (10.941) | (2.217) | (16.936) | (2.072) | (19.008)
Carrying amount | 5.430 | 30.184 | 4.829 | 40.443 | 2.241.117 | 2.281.560
Coverage ratio | 41,0% | 26,6% | 31,5% | 29,5% | 0,1% | 0,8%
POSITION AT 31.12.2024 |  |  |  |  |  |
Nominal amount | 7.938 | 31.084 | 7.106 | 46.128 | 2.278.168 | 2.324.296
Losses | (4.218) | (10.622) | (2.286) | (17.126) | (3.777) | (20.903)
Carrying amount | 3.720 | 20.462 | 4.820 | 29.002 | 2.274.391 | 2.303.393
Coverage ratio | 53,1% | 34,2% | 32,2% | 37,1% | 0,2% | 0,9%

(1) In the Governance & Services and Non-Core Segment, at 31 December 2025, there are government securities amounting to 1.770,6 million Euro (1.579,0 million Euro at 31 December 2024).
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Net impaired loans in the Governance & Services and Non-Core Segment increase by 11,4 million Euro compared to the December 2024 figure, mainly due to an increase in non-performing and unlikely to pay positions. Performing loans are down by 33,3 million Euro compared with the balance of the close of the previous year, despite the increase relating to government securities of the Segment (which went from 1.579,0 million Euro at 31 December 2024 to 1.770,6 million Euro at end December 2025).
The coverage of non-performing exposures in the Segment is affected by receivables whose gross values already take into account the estimate of expected losses. This coverage stands at 29,5% at 31 December 2025, down from 37,1% at 31 December 2024. The coverage of the portfolio as a whole goes from 0,9% at 31 December 2024 to 0,8% at 31 December 2025, and is substantially attributable to the increase in the proportion of non-performing exposures to the total portfolio over the year.
illimity Segment
The illimity Segment includes the contribution of the business units of all the companies included within the illimity Group (for more details on this, see the specific section 'Significant Events during the Year' within this Directors' Report on the Group). Therefore, this Segment is new for the second half of 2025 at the level of the Segments' contribution to the results of the Banca Ifis Group, and at the level of the income statement it is characterised by zero comparative figures and by results at 31 December 2025 limited to the period pertaining to the Banca Ifis Group (i.e. only the six months from July to December 2025, given that control of illimity Bank was achieved on 4 July 2025) and including the effects of the so-called "PPA - Purchase Price Allocation". For more details on the disclosure of Operating Segments, refer to 'Part L - Segment Reporting' of the Notes to the Consolidated Financial Statements.

RECLASSIFIED INCOME STATEMENT DATA (in thousands of Euro) | YEAR
2025(1)
Net interest income | 88.546
Net commission income | 31.450
Other components of net banking income | 2.699
Net banking income | 122.695
Net credit risk losses/reversals | (80.682)
Net profit (loss) from financial activities | 42.013
Operating costs | (89.663)
Charges related to the banking system | (681)
Net allocations to provisions for risks and charges | (152)
Non-recurring expenses and income | (21.420)
Profit (loss) on equity investments | 198
Gains (losses) on disposal of investments | 195
Pre-tax profit (loss) from continuing operations | (69.510)
Income taxes for the year relating to current operations | (7.600)
Profit (loss) for the year | (77.110)
(Profit) loss for the year attributable to non-controlling interests | 545
Profit (loss) for the year attributable to the Parent Company | (76.565)

(1) The figures refer to the period of illimity in the Banca Ifis Group as of 4 July 2025 and are inclusive of the effects of the relevant PPA.
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The Segment's net banking income stands at 122,7 million Euro, and is determined in particular by the following dynamics:
•the net interest income is positive for 88,5 million Euro, and is made up of interest income for 184,2 million Euro (which includes the effect relating to the so-called "reversal" on the six months of the adjustments of the PPA on the financial assets at amortised cost of the illimity Group) and interest expense of 95,7 million Euro, representing the cost of funding in the period July-December 2025 of the illimity Group, which includes the bond issues of illimity Bank and the securitisation securities issued by the various vehicles included in the illimity Group's consolidation scope;
•net commissions of 31,5 million Euro, of which 38,5 million Euro related to commission income and 7,1 million Euro to commission expenses;
•the other components of net banking income amount to 2,7 million Euro for the six months, reflecting the performance recorded on the illimity Group's proprietary portfolio, consisting of dividends and similar income of 1,1 million Euro, a positive result from trading activities of 0,8 million Euro, a loss of hedging activities for 0,1 million Euro, the positive contribution of 1,7 million Euro from the fair value measurement of financial assets, as well as losses from the disposal of debt securities of 0,7 million Euro.
The credit cost for the period July-December 2025 shows net adjustments of 80,7 million Euro.
Operating costs amount to 89,7 million Euro, and consist of personnel expenses of 32,9 million Euro, other administrative expenses of 56,2 million Euro, net operating income of 7,0 million Euro, and net adjustments to tangible and intangible assets of 7,6 million Euro.
The item “Charges related to the banking system” includes the costs incurred during the second half of 2025 for the operation of the banking system's guarantee funds pertaining to illimity Bank and comes to 0,7 million Euro.
Net allocations to provisions for risks and charges amount to 0,2 million Euro for the six months.
The item “non-recurring income and expenses” shows a net balance as at 31 December 2025 negative by 21,4 million Euro and includes the non-recurring operating costs attributable to the period from July to December 2025 related to the Offer for illimity Bank and to the process of integration of the illimity Group companies into the Banca Ifis Group, limited to the portion pertaining to the illimity Segment. These costs refer to the share for the period of offer-related consultancy costs incurred by illimity Bank, ICT costs related to the integration into the Banca Ifis Group, as well as personnel expenses for redundancy incentives.
At 31 December 2025, the Segment records net profits on shareholdings of 0,2 million Euro. Specifically, it represents the effect on the six-month period from July to December 2025 of the valuation of investments subject to joint control or significant influence by illimity Bank.
The illimity Segment shows net profits from the sale of investments of 0,2 million Euro, which only accrued in the second half of 2025.
As a result of the above trends, the result for the year of the illimity Segment before tax was a loss of 69,5 million Euro. DTAs from tax losses accrued by the illimity Group were not recognised. At the level of the illimity Segment, taxes for the year are still negative and amount to 7,6 million Euro, reflecting:
•10,5 million Euro for negative tax effects related to the settlement of a dispute in the illimity Group as a result of new strategic choices in the new parent company Banca Ifis;
•positive tax effects of 2,9 million Euro, mainly reflecting the so-called "reversal" on the six months of the PPA.
Net of the tax effect and excluding the loss attributable to third parties pertaining to the illimity Segment amounting to 0,5 million Euro, the Segment's contribution to the profit attributable to the Parent Company is negative by 76,6 million Euro.
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Net of the extraordinary and non-recurring items impacting the income statement in the second half of the year for the illimity Segment (relating to non-recurring charges as above amounting to 19,0 million Euro net of tax, as well as to the tax effect of 10,5 million Euro from the settlement as a result of Banca Ifis’ new strategic choices), the contribution to profit attributable to the Parent Company would have been negative by 47,1 million Euro.
Regarding balance sheet data, at 31 December 2025, the total net receivables of the Segment amount to 5.045,6 million Euro. It should be noted that the illimity Segment includes financial assets (loans and debt securities) mainly impaired loans belonging to the POCI category, referring both to the Npl purchase activity carried out by the illimity Group and to the additional impaired assets that emerged as a result of the business combination relating to the acquisition of the illimity Group by Banca Ifis (i.e. the assets that were classified as impaired at the date of purchase, 4 July 2025). The POCI of the illimity Segment have a carrying amount of 1.093,2 million Euro at 31 December 2025.
The following table shows the gross and net amounts as well as the relevant coverage ratios of financial assets due from customers at amortised cost by credit quality.

ILLIMITY SEGMENT(in thousand Euro) | BAD LOANS | UNLIKELY TO PAY | PAST DUE EXPOSURES | TOTAL NON-PERFORMING (STAGE 3) | PERFORMING EXPOSURES (STAGES 1 AND 2) | TOTAL LOANS (1)
POSITION AT 31.12.2025 |  |  |  |  |  |
Nominal amount | 172.989 | 920.440 | 77.343 | 1.170.772 | 4.121.680 | 5.292.452
Losses | (1.224) | (5.202) | (3.547) | (9.973) | (236.898) | (246.871)
Carrying amount | 171.765 | 915.238 | 73.796 | 1.160.799 | 3.884.782 | 5.045.581
Coverage ratio | 0,7% | 0,6% | 4,6% | 0,9% | 5,7% | 4,7%

(1) At 31 December 2025, government securities amounting to 1,000,2 million Euro are held in the illimity Segment.
The coverage of non-performing exposures in the Segment is affected by such receivables whose gross values already take into account the estimate of expected losses.

KPIs | AMOUNTS
31.12.2025
RWA (1) | 3.480.873

(1) Risk Weighted Assets; the amount only relates to the credit risk.
Even after the acquisition by Banca Ifis, illimity continued, in agreement with the new parent company, the analysis activities concerning the valuation of certain securitisation notes and units of AIFs recorded as a result of transformation operations of its assets that occurred in previous years, which had already begun in the 2024 financial year following the recommendations transmitted by the Bank of Italy following the inspection to which illimity Bank was subjected in the previous year.
These analyses are part of a verification process aimed at ensuring, at each reporting date, an accurate and timely update of the estimates and aimed at including the best available information - time by time - in the determination of expected cash flows and the related impact on these instruments in the financial statements.
In particular, in estimating the Expected Credit Loss (ECL) on certain securitisation notes underlying the above-mentioned transformation transactions, the most up-to-date information on the actual recoverability of the credit positions in the portfolio was factored in, also in light of the due diligence activities completed in December.
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In addition, Internal Audit carried out a third update of the assessment concerning the verification of the classification and valuation, for accounting and prudential purposes, of these financial instruments, which was completed in December and was also factored into these Financial Statements.
The inclusion of these elements in the best estimates of the instruments' recoverability led to the reclassification of some specific securitisation notes to credit status, resulting in a change in their classification to Stage 3 impaired financial assets as of the date of acquisition of the illimity Group.
Finally, an overall analysis was performed that also factored in the results of the due diligence, including on the recoverability of the remaining credit exposures recorded in the balance sheet; the most up-to-date information was then included in the estimates, which led to an increase in value adjustments, also in consideration of the progressive deterioration of the portfolio that occurred during the period.
These effects were factored into the Purchase Price Allocation (PPA) process at the date of acquisition of the illimity Group.
For more details on the PPA process with reference to the figures of the illimity Group, refer to 'Part G - Business Combinations of Companies or Business Units' of the Notes to the Consolidated Financial Statements.
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Banca Ifis shares
The share price
The ordinary shares of Banca Ifis are listed on the STAR segment, and the bank is listed on the Ftse Italia Mid Cap index. The following table shows the share prices at the end of the year.

Official share price | 31.12.2025 | 31.12.2024 | 31.12.2023 | 31.12.2022 | 31.12.2021
Share price at year-end | 25,38 | 21,18 | 15,70 | 13,31 | 17,07

Price/book value
Below is the ratio of the share price at year-end and equity attributable to the Parent Company per share outstanding.

Price/book value | 31.12.2025 | 31.12.2024 | 31.12.2023 | 31.12.2022 | 31.12.2021
Share price at year-end | 25,38 | 21,18 | 15,70 | 13,31 | 17,07
Equity attributable to the Parent Company per share | 34,70 | 32,95 | 32,01 | 30,24 | 29,85
Price/book value | 0,73 | 0,64 | 0,49 | 0,44 | 0,57

The situation in terms of price/book value shows a value of less than per unit for all the years reported: in this regard, it should be noted that this is a structural situation for the Italian context in that the quotations show significant discounts for all Italian banks even with respect to tangible net worth.

Outstanding shares | 31.12.2025 | 31.12.2024 | 31.12.2023 | 31.12.2022 | 31.12.2021
Number of shares outstanding at year end (in thousands)(1) | 61.080 | 52.572 | 52.468 | 52.433 | 53.472

(1) Outstanding shares are net of treasury shares held in the portfolio.
Earnings per share and Price/Earnings
Here below is the earnings per share (EPS), namely the ratio of the profit for the period attributable to the Parent Company to the weighted average of the ordinary shares outstanding at year-end, net of treasury shares in portfolio. For more details, please refer to “Section 25 - Earnings per Share” in “Part C - Information on the Consolidated Income Statement” of the Notes to the Consolidated Financial Statements.

Earnings per share and diluted earnings per share | 31.12.2025 | 31.12.2024
Net profit for the year attributable to the Parent Company (in thousands of Euro) | 327.996 | 161.578
Average number of outstanding shares (1) | 56.770.114 | 52.529.787
Average number of shares outstanding for diluted earnings per share purposes | 57.376.954 | 53.383.843
Earnings per share (EPS) | 5,78 | 3,08
Diluted earnings per share (EPS) | 4,39 | 3,03
Normalised net profit for the year attributable to the parent company(in thousand Euro) (2) | 108.086 | 161.934
Normalised earnings per share (EPS) | 1,90 | 3,08
Normalised diluted earnings per share (EPS) | 1,88 | 3,03

(1) Outstanding shares are net of treasury shares held in the portfolio.
(2) For the logic of normalisation of the net profit for the year pertaining to the Parent Company, see the section 'Group financials and income results', 'Reclassified income statement items'.
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Payout ratio
The Board of Directors of Banca Ifis will propose to the Shareholders' Meeting the distribution of a balance on the dividend for FY 2025 of 0,92 Euro (gross of withholding taxes) for each of the Banca Ifis shares issued and outstanding (and therefore excluding treasury shares held by the Bank). In November 2025, an interim dividend of 1,20 Euro per share had already been distributed for FY 2025. The total 2025 dividends (interim payment and balance) thus amount to 2,12 Euro per share, corresponding to a payout ratio of 39,5%.

Payout ratio (in thousands of Euro) | 2025 | 2024
Net profit attributable to the Parent Company | 327.996 | 161.578
Parent Company dividends (1) | 129.489 | 111.910
Payout ratio (1) | 39,5% | 69,3%
Normalised net profit attributable to the Parent Company (2) | 108.086 | 161.934
Normalised payout ratio (2) | 119,8% | 69,1%

(1) The figures for FY 2025 comprise the total of 1,20 Euro per share distributed as an interim dividend in November 2025 and 0,92 Euro per share as a proposal for a final dividend for the FY 2025 prepared by the Board of Directors of Banca Ifis.
(2) For the logic of normalisation of the net profit for the year pertaining to the Parent Company, see the section 'Group financials and income results', 'Reclassified income statement items'.
Shareholders
As at 31 December 2024, the parent company's share capital amounted to 53.811.095 Euro and was divided into 53.811.095 shares, each worth a nominal amount of 1 Euro.
During 2025, the Board of Directors of Banca Ifis resolved, in execution of the mandate conferred by the Extraordinary Shareholders' Meeting of 17 April 2025, to increase the share capital for cash, in one or more instalments and in divisible form, with the exclusion of option rights pursuant to Article 2441, paragraph 4, first sentence, of the Italian Civil Code, to service the tender offer launched by Banca Ifis on illimity Bank. In particular:
•on 04 July 2025 (when control was acquired of illimity Bank), 7.069.448 Banca Ifis ordinary shares - regular entitlement, coupon 32 - worth a nominal amount of 1,00 Euro each were issued, with an increase in share capital from 53.811.095,00 Euro to 60.880.543,00 Euro divided into 60.880.543 ordinary shares worth a nominal amount of 1,00 Euro each;
•on 21 July 2025, following the reopening of the terms of the Offer, 605.983 Banca Ifis ordinary shares - regular entitlement, coupon 32 - worth a nominal amount of 1,00 Euro each were issued, with an increase in share capital from 60.880.543,00 Euro to 61.486.526,00 Euro divided into 61.486.526 ordinary shares worth a nominal amount of 1,00 Euro each;
•on 5 September 2025, following conclusion of the sell-out procedure, 53.929 Banca Ifis ordinary shares - regular entitlement, coupon 32 - worth a nominal amount of 1,00 Euro each were issued, with an increase in share capital from 61.486.526,00 Euro to 61.540.455,00 Euro divided into 61.540.455 ordinary shares worth a nominal amount of 1,00 Euro each;
•on 19 September 2025, following conclusion of the joint procedure, 278.470 Banca Ifis ordinary shares - regular entitlement, coupon 32 - worth a nominal amount of 1,00 Euro each were issued, with an increase in share capital from 61.540.455,00 Euro to 61.818.925,00 Euro divided into 61.818.925 ordinary shares worth a nominal amount of 1,00 Euro each.
For more details on these share issues to service the Offer on illimity Bank, refer to the section “Significant events during the year” below in this Directors' Report on the Group.
As a result of the above dynamics, the share capital of the Parent Company at 31 December 2025 amounts to 61.818.925,00 Euro and is broken down into 61.818.925 shares for a nominal amount of 1 Euro each.
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Below are Banca Ifis's shareholders that, either directly or indirectly, own equity instruments with voting rights representing over 3% of Banca Ifis's share capital:
•Ernesto Fürstenberg Fassio (through Fürstenberg Scogliera Holding S.A.): 45,1%;
•market: 49,5%;
•Riccardo Preve: 4,2% (on its own for 0,3% and through Preve Costruzioni S.p.A. for 3,9%).
The remaining 1,2% corresponds to the portion of treasury shares held by Banca Ifis.
Corporate governance rules
Banca Ifis has adopted the Corporate Governance Code for listed companies. The Bank's Board of Directors has established the Control and Risk Committee, the Appointments Committee and the Remuneration Committee. The Board of Directors has also appointed a Supervisory Body with autonomous powers of initiative and control pursuant to Italian Legislative Decree No. 231/2001.
Internal dealing rules
Banca Ifis regulations on internal dealing are aligned with the relevant EU legislation (EU Regulation No. 596/2014, the Market Abuse Regulation) and aims to ensure the utmost transparency in the Bank's disclosures to the market.
The “Policy on transactions carried out by Relevant Persons and Persons Closely Related to them in shares, debt securities and related financial instruments issued by Banca Ifis S.p.A.” (Internal Dealing Policy) regulates:
•the requirements related to identifying the Relevant Persons and the so-called “closely related people”;
•the management of information relating to transactions exceeding the minimum amount threshold on units, credit securities or related instruments issued by Banca Ifis, carried out, directly or indirectly, by a Relevant Person or by a Closely Related Person and subject to notification obligations;
•the handling of closed periods, i.e. those periods during which the Relevant Persons must refrain from trading in shares or other debt instruments issued by Banca Ifis as well as financial instruments linked to them.
The Relevant Persons are:
•the members of the Board of Directors;
•the members of the Board of Statutory Auditors;
•managers regarded as “key managers”, i.e.:
–CEO of Parent Company;
–Co-General Manager Chief Operating Officer (COO);
–Co-General Manager Chief Commercial Officer (CCO);
–Head of the Communication, Marketing, Public Affairs & Sustainability Department;
–Chief of Staff and Chairman's Communication;
–Chief Financial Officer (CFO);
–Manager charged with preparing the company’s financial reports;
–Chief Financial Officer (CLO);
–Head of the Npl Department;
–Head of Internal Audit;
–Head of Compliance;
–Chief Financial Officer (CRO);
–Head of Anti-Money Laundering;
–Head of the Human Resources Department;
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–General Counsel;
–Head of the Investor Relations & Corporate Development Department;
–CEO of Ifis Npl Servicing;
–General Manager of Ifis Npl Servicing;
–CEO of Banca Credifarma.
•any person holding an interest, calculated pursuant to Article 118 of the Issuers' Regulation, equal to at least 10% of the share capital of Banca Ifis, represented by shares with voting rights as well as another individual who controls the Bank;
•additional persons identified as such, even for limited periods of time, by specific resolution of the Board of Directors of Banca Ifis.
Persons closely related to Relevant Persons are also subject to the Internal Dealing Policy.
This document is available on Banca Ifis's website, www.bancaifis.it, in the "Corporate Governance" Section, “Internal Dealing” sub-section.
Rules for the handling of inside information
Internal procedures for handling inside information and the list of individuals who have access to inside information are aligned with the Market Abuse Regulation.
In compliance with Article 115-bis of Italian Legislative Decree No. 58/1998, Banca Ifis has created a list of individuals who, in performing their professional and work duties or in carrying out their activity, have access to inside information (the list of insiders). Banca Ifis constantly updates this list.
In addition, the Group has adopted the “Group policy for the handling of inside information” in order to:
•prevent individuals who, based on their duties, have no reason to know such information from accessing it;
•identify the individuals who have access to such information at all times.
This policy also describes the process of handling inside information of third-party issuers, also with reference to the management of passive market surveys.
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Significant events during the year
The Banca Ifis Group transparently and promptly discloses information to the market, constantly publishing information on significant events through press releases. Please refer to the "Media" section of the institutional website www.bancaifis.it to view all press releases, as well as to the specific section dedicated to the offer on all shares of illimity Bank.
Voluntary totalitarian tender and exchange offer on all shares of illimity Bank
On 7 January 2025, the Board of Directors of Banca Ifis approved the promotion of a voluntary takeover and exchange offer on all shares of illimity Bank. The offer was disclosed to the market on 8 January 2025 by means of a notice circulated pursuant to Article 102, paragraph 1 of Legislative Decree No. 58/98 (the "TUF") and Article 37 of the regulations adopted by Consob Resolution No. 11971/99 (the "Issuers' Regulations"). The offer envisaged the acquisition by Banca Ifis of 100% ownership of the shares of illimity Bank listed on Euronext Milan, Segment Euronext STAR Milan. In particular, Banca Ifis has proposed that for each share of illimity Bank tendered to the offer, a consideration expressing a unit valuation of 3,55 Euro, based on the official price of Banca Ifis shares on 7 January 2025, will be paid. This consideration originally consisted of:
•0,1 newly issued shares of Banca Ifis for each share of illimity Bank and
•a cash component originally of 1,414 Euro, thereafter adjusted to 1,506 Euro following the detachment, on 19 May 2025, of the coupon for the balance of the dividend for FY 2024.
On 10 March 2025, Banca Ifis announced that the Italian Antitrust Authority (AGCM) had granted its authorisation for the transaction, without imposing any conditions, limitations or requirements, and that, in light of this, Banca Ifis did not identify any further antitrust authorisations necessary to complete the offer.
On 14 March 2025, the President of the Council of Ministers forwarded to Banca Ifis the resolution accepting the proposal of the Ministry of Economy and Finance (MEF) not to exercise the special powers under the “Golden Power” regulation in relation to the acquisition by Banca Ifis, through the Offer, of the entire share capital of illimity.
On 28 April 2025, Banca Ifis received approval from the European Central Bank (ECB) for the direct and indirect acquisition of a controlling stake in illimity Bank, in accordance with Articles 19 et seq. of Italian Legislative Decree No. 385 of 1 September 1993.
Following the authorisation of the European Central Bank, on 2 May 2025 Banca Ifis also received all the necessary authorisations pertaining to the Bank of Italy and specifically:
•the authorisation of the indirect acquisition of a controlling interest in illimity SGR S.p.A.5 and the purchase of a qualified shareholding in Hype S.p.A.;
•the authorisation of the acquisition of the stake in illimity for a consideration exceeding 10% of the Banca Ifis Group's equity on a consolidated basis; and
•the ruling to ascertain that the amendments to Banca Ifis's articles of association resulting from the share capital increase to service the offer do not conflict with the sound and prudent management of Banca Ifis.
The Bank of Italy also confirmed the eligibility of the new shares issued as part of the capital increase as Common Equity Tier 1 (CET1).
After obtaining the aforementioned regulatory authorisations, Consob, by resolution No. 23543 of 7 May 2025, approved the offer document pursuant to Article 102, paragraph 4 of the TUF.
5 This company was renamed Fürstenberg SGR S.p.A. as of 18 December 2025.
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On 8 May 2025, the Board of Directors of Banca Ifis resolved, in execution of the mandate conferred by the Extraordinary Shareholders' Meeting of 17 April 2025, to increase the share capital for cash, in one or more tranches and in divisible form, with the exclusion of option rights pursuant to Article 2441, paragraph 4, first sentence, of the Italian Civil Code, to service the total voluntary takeover offer promoted by Banca Ifis on all the ordinary shares of illimity pursuant to Articles 102 and 106, paragraph 4, of the TUF.
On 24 June 2025, Banca Ifis announced that it would pay a cash premium of 5%, equal to 0,1775 Euro (the "additional cash consideration"), for each illimity share tendered to the offer if the acceptance threshold were to exceed 90% of illimity's share capital (the "90% threshold").
On 27 June 2025, the accession period for the offer ended. On the basis of the results of the acceptances on that date, which reached 84,092%, in order to reach the threshold of 90% - the relevant threshold for the residual takeover bid and subsequent squeeze out procedures - the Bank announced, upon completion of the acceptance period, that it wished to proceed with the reopening of the terms pursuant to and for the purposes of Article 40-bis, paragraph 1, letter a), of the Issuers' Regulation; as a result, the acceptance period was reopened for 5 trading days and, precisely, for the sessions from 7 July to 11 July 2025.
Based on these final results of the Bid, as of the payment date (4 July 2025) Banca Ifis holds 70.694.489 illimity shares.
On 4 July 2025 Banca Ifis announced the new composition of the subscribed and paid up share capital resulting from the paid up and divisible share capital increase pursuant to the resolution of 8 May 2025, in partial execution of the mandate conferred on the Board of Directors by the Extraordinary Shareholders' Meeting of 17 April 2025, to service the voluntary takeover offer for all the ordinary shares of illimity Bank, through the issue of a maximum number of 8.406.781 ordinary shares of Banca Ifis, worth a nominal amount of 1,00 euro each, with regular dividend rights and the same characteristics as the shares in circulation on the issue date, to be released by contribution in kind as to service the offer.
The certificate of capital increase was filed on 04 July 2025 with the Companies' Register of Venice, Rovigo. 7.069.448 Banca Ifis ordinary shares - regular entitlement, coupon 32 - worth a nominal amount of 1,00 Euro each were issued, with an increase in share capital from 53.811.095,00 Euro to 60.880.543,00 Euro divided into 60.880.543 ordinary shares worth a nominal amount of 1,00 Euro each.
On 11 July 2025, the re-opening period for the offer ended. At the end of the reopening period, total acceptances of the bid reached 92,488% (taking into account treasury shares). Therefore, on the basis of the results of the re-opening of the terms and taking into account the 70.694.489 illimity shares already tendered to the bid during the acceptance period, on the payment date following the re-opening of the terms (18 July 2025) Banca Ifis held 77.752.504 illimity shares, representing 92,488% of its share capital (taking into account treasury shares).
On the basis of the final results achieved, which were confirmed on 16 July 2025, Banca Ifis took steps to give effect to the payment of the 5% cash bonus to each illimity shareholder who tendered their illimity shares to the bid.
The payment date was set for 18 July 2025. On that date, against the transfer in favour of Banca Ifis of the right of ownership of the illimity shares tendered during the reopening of the terms, Banca Ifis:
•in favour of members who brought their illimity shares into the offer during the reopening of the terms:
–issued and allotted the Banca Ifis shares offered, at a ratio of 0,10 newly issued Banca Ifis shares for every illimity share tendered, and thus for a total of 605.983 new Banca Ifis shares, representing 0,985% of Banca Ifis's share capital following the issue of these new Banca Ifis shares;
–paid 1,6835 Euro for each illimity share tendered and so for a total of 10.201.728,85 Euro; and
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•in favour of the adherents who had already tendered their illimity shares to the bid during the acceptance period (and had therefore already received the consideration on the payment date of 4 July 2025), paid only the additional cash consideration (0,1775 Euro per illimity share), as a supplement.
The deadline for the payment of the cash amount of the fractional part in favour of the subscribers who tendered their illimity shares to the bid during the reopening of the terms was set for 25 July 2025, as provided in Section F, Paragraph F.6 of the Offer Document.
On 21 July 2025, Banca Ifis communicated the new composition of the subscribed and paid-up share capital resulting from the paid-in and divisible share capital increase pursuant to the resolution of 8 May 2025, in partial execution of the mandate conferred on the Board of Directors by the Extraordinary Shareholders' Meeting of 17 April 2025, to service the offer.
The certificate of capital increase was filed on 21 July 2025 with the Companies' Register of Venice, Rovigo. 605.983 Banca Ifis ordinary shares - regular entitlement, coupon 32 - worth a nominal amount of 1,00 Euro each were issued, with an increase in share capital from 60.880.543,00 Euro (as updated by communication given on 4 July 2025) to 61.486.526,00 Euro divided into 61.486.526 ordinary shares worth a nominal amount of 1,00 Euro each.
On the basis of the final results of the reopening of the terms, the legal requirements for the fulfilment of the purchase obligation pursuant to article 108, paragraph 2, of the TUF have been verified, given that Banca Ifis holds a total shareholding of more than 90%, but less than 95%, of the share capital of illimity Bank, calculated by calculating the 76.754.322 shares tendered in acceptance of the offer as well as the 998.182 treasury shares held by illimity Bank, which, for the purposes of calculating the threshold set forth in Article 108, paragraph 2, of the TUF, must be counted in the overall stake held by Banca Ifis (numerator) without being deducted from the share capital of illimity Bank (denominator).
Therefore, Banca Ifis, as stated in the Offer Document, has not expressed its intention to restore a sufficient free float to ensure the regular trading of illimity shares and has undertaken to fulfill the obligation to purchase pursuant to Article 108, paragraph 2, of the TUF in relation to the remaining 7.313.486 illimity shares, representing 8,700% of illimity Bank's share capital (including treasury shares).
As part of the procedure for the fulfilment of the obligation to purchase pursuant to Article 108, paragraph 2 of the TUF, Banca Ifis paid to the shareholders of illimity Bank who requested Banca Ifis to purchase their residual shares pursuant to Article 108, paragraph 2 of the TUF the consideration per residual share, determined in accordance with the provisions of Article 108, paragraphs 3 and 5 of the TUF, namely:
•a consideration identical to the consideration of the bid, i.e. for each illimity share tendered to the offer, 1,6835 Euro, as cash component, and 0,1 newly issued Banca Ifis shares, as share component (the "share consideration" and, together with the cash consideration, the "purchase obligation consideration pursuant to article 108, paragraph 2, of the TUF"); or, alternatively,
•only to shareholders who expressly requested it in the request for sale, a full cash consideration of 4,0767 Euro for each illimity share, calculated pursuant to article 50-ter, paragraph 1, letter a) of the Issuers’ Regulation, and, therefore, equal to the sum (x) of the weighted average of the official prices of Banca Ifis shares recorded on Euronext Milan Euronext STAR Milan segment, in the five trading days preceding the payment date as a result of the reopening of the terms (i.e., in the sessions of 11 July, 14 July, 15 July, 16 July and 17 July 2025), which is equal to 23,9317 Euro, multiplied by 0,1 (i.e. the exchange rate) and (y) of the cash consideration (the "alternative cash consideration").
The period agreed with Borsa Italiana during which Banca Ifis complied with the purchase obligation pursuant to Article 108, paragraph 2 of the TUF, and the holders of residual shares could, by submitting a request for sale, request Banca Ifis to purchase such illimity shares, commenced at 08:30 (Italian time) on 28 July 2025 and ended at 17:30 (Italian time) on 29 August 2025 (the "period for submission of requests for sale"). At the time the sell-out started on 28 July 2025, Banca Ifis held 91,3% of the share capital of illimity Bank on the market.
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The sell-out procedure was successfully completed on 29 August 2025, as by the close of the application period, requests for sale had been submitted for a total of 2.446.348 residual shares. These residual shares represent 2,910% of the share capital of illimity Bank and 33,447% of the total residual shares subject to the procedure for the fulfilment of the purchase obligation pursuant to Article 108(2) of the TUF (including treasury shares). Therefore, on the basis of these provisional results and taking into account the 2.446.348 residual shares subject to requests for sale, the 76.754.322 shares of illimity Bank already held by Banca Ifis at the closing date and the 998.182 treasury shares held by illimity Bank, Banca Ifis was found to own 80.198.852 shares of illimity Bank, representing 95,398% of illimity Bank's share capital (taking into account treasury shares).
Based on these results, on 5 September 2025 (the date of payment of the purchase obligation consideration) Banca Ifis paid:
•in favour of the holders of 539.298 residual shares (representing 22,045% of the residual shares for which requests to sell were submitted) who requested to receive the consideration, for each residual share for which a request to sell was submitted:
–1,6835 Euro, as cash consideration and thus for a total of 907.908,18 Euro; and
–0,1 newly issued Banca Ifis shares, as consideration in shares, according to the ratio of 0,1 Banca Ifis shares for each illimity Bank share requested for sale, and thus for a total of 53.920 new Banca Ifis shares, representing 0,088% of Banca Ifis's share capital following the issuance of such new shares;
•in favour of the holders of 1.907.050 residual shares (representing 77,955% of the residual shares for which requests to sell were submitted) who requested to receive the alternative cash consideration, 4,0767 Euro for each residual share for which a request to sell was submitted, and so for a total of 7.774.470,74.
On 05 September 2025, Banca Ifis communicated the new composition of the subscribed and paid-up share capital resulting from the paid-in and divisible share capital increase pursuant to the resolution of 8 May 2025, in partial execution of the mandate conferred on the Board of Directors by the Extraordinary Shareholders' Meeting of 17 April 2025, to service the offer.
The certificate of capital increase was filed on 05 September 2025 with the Companies' Register of Venice, Rovigo. 53.929 Banca Ifis ordinary shares - regular entitlement, coupon 32 - worth a nominal amount of 1,00 Euro each were issued, with an increase in share capital from 61.486.526,00 Euro (as updated by communication given on 21 July 2025) to 61.540.455,00 Euro divided into 61.540.455 ordinary shares worth a nominal amount of 1,00 Euro each.
The 53.929 newly-issued Banca Ifis shares were assigned as a share component of the consideration to the shareholders of illimity Bank who submitted requests to sell their shares of illimity Bank in the context of the procedure for the fulfilment of the purchase obligation pursuant to Article 108(2) of the TUF by Banca Ifis.
In consideration of the foregoing, the legal prerequisites for the fulfilment of the purchase obligation pursuant to Article 108, paragraph 1, of the TUF and for the exercise of the purchase right pursuant to Article 111 of the TUF in relation to the remaining 3.868.956 shares of illimity Bank, representing 4,602% of the share capital (the so-called "squeeze out"), as Banca Ifis came to hold an overall stake of more than 95% in the share capital of illimity Bank. Therefore, Banca Ifis, as stated in the Offer Document, by exercising its squeeze-out right, has also fulfilled its purchase obligation pursuant to Article 108(1) of the TUF vis-à-vis the shareholders of illimity Bank who so requested, thereby giving effect to the joint procedure.
As part of the joint procedure, Banca Ifis undertook to pay to the shareholders of illimity Bank, for each additional residual share, a consideration determined pursuant to the provisions of Article 108(3) and (5) of the TUF, i.e.:
•a consideration identical to the consideration of the offer, i.e. 1,6835 Euro, as consideration in cash, and 0,1 newly issued Banca Ifis shares, as consideration in shares; or, alternatively
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•only to illimity Bank shareholders who expressly request it in the request for sale of the additional residual shares (the “request for sale for the joint procedure”), a full cash consideration of 4,0767 Euro for each illimity share, calculated pursuant to article 50-ter, paragraph 1, letter a) of the Issuers’ Regulation, and, therefore, equal to the sum (x) of the weighted average of the official prices of Banca Ifis shares recorded on Euronext Milan Euronext STAR Milan segment, in the five trading days preceding the payment date as a result of the reopening of the terms (i.e., in the sessions of 11 July, 14 July, 15 July, 16 July and 17 July 2025), which is equal to 23,9317 Euro, multiplied by 0,1 (the exchange rate) and (y) of the cash consideration, as alternative cash consideration.
The period of the joint procedure started at 08:30 (Italian time) on 8 September 2025 and ended at 17:30 (Italian time) on 12 September 2025.
On 12 September 2025, the aforesaid joint procedure was concluded and applications were submitted for the sale of a total of 2.075.029 additional residual shares, representing 2,468% of the share capital of illimity Bank and 53,633% of the total additional residual shares subject to the joint procedure.
Based on these results, Banca Ifis paid on 19 September 2025 (the payment date of the joint procedure):
•in favour of the holders of 990.787 additional residual shares (representing 47,748% of the additional residual shares for which requests for sale were submitted for the joint procedure) who requested to receive the consideration, for each additional residual share for which a request for sale was submitted:
–1,6835 Euro as consideration in cash; and
–0,1 newly issued Banca Ifis shares, as consideration in shares;
•in favour of the holders of 1.084.242 additional residual shares (representing 52,252% of the additional residual shares for which a request for sale for the joint procedure has been submitted) who requested to receive the alternative cash consideration, 4,0767 for each additional residual share for which a request for sale for the joint procedure has been submitted.
The holders of the remaining 1.793.927 additional shares who did not submit a request for the joint procedure (the "non-requesting shareholders") only received the bid consideration.
Therefore, considering also the non-requesting shareholders, Banca Ifis on 19 September paid the following in settlement of the squeeze out:
•for the additional requesting shareholders who did not request the alternative cash consideration and for the non-requesting shareholders, Banca Ifis:
–issued and allotted the consideration in shares, i.e. Banca Ifis shares offered, at a ratio of 0,1 newly issued Banca Ifis shares for each additional share remaining, for a total of 278.470 new Banca Ifis shares, equal to 0,450% of Banca Ifis' share capital following the issuance of these new Banca Ifis shares; Banca Ifis' share capital following this issuance is represented by 61.818.925 ordinary shares;
–paid the cash consideration (i.e. 1,6835 for each additional remaining share) and so for a total of 4.688.066,02;
•for the additional requesting shareholders who requested the alternative cash consideration, Banca Ifis paid the alternative cash consideration (i.e. 4,0767 Euro for each additional share requested to be sold in the joint procedure) and so for a total of 4.420.129,36 Euro.
Borsa Italiana, pursuant to Article 2.5.1, paragraph 6, of the Stock Exchange Regulations, consequently ordered, by order No. 9059 taken on 2 September 2025, the delisting of the shares of illimity Bank from the listing on Euronext Milan, Euronext STAR Milan segment (so-called "delisting") as of 19 September 2025 (the payment date of the joint procedure), subject to the suspension of trading in the shares of illimity Bank on 17 and 18 September 2025.
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On 19 September 2025, Banca Ifis communicated the new composition of the subscribed and paid-up share capital resulting from the paid-in and divisible share capital increase pursuant to the resolution of 8 May 2025, in partial execution of the mandate conferred on the Board of Directors by the Extraordinary Shareholders' Meeting of 17 April 2025, to service the offer.
The certificate of capital increase was filed on 19 September 2025 with the Companies' Register of Venice, Rovigo. 278.470 Banca Ifis ordinary shares - regular entitlement, coupon 32 - worth a nominal amount of 1,00 Euro each were issued, with an increase in share capital from 61.540.455,00 Euro (as updated by communication given on 5 September 2025) to 61.818.925,00 Euro divided into 61.818.925 ordinary shares worth a nominal amount of 1,00 Euro each.
The 278.470 newly issued Banca Ifis shares were allotted as a share component of the consideration to the shareholders of illimity Bank in the context of the joint procedure.
As a result of the completion of the squeeze-out procedure, on 19 September 2025, Banca Ifis holds 100% of the share capital of illimity Bank. The value of the equity investment held by Banca Ifis in illimity Bank totalled 330,5 million Euro, which represents the cumulative acquisition cost of illimity Bank's shares through the various stages of the aforementioned offer. Specifically, 147,0 million Euro was disbursed through cash consideration while 183,5 million Euro was paid through an offer of Banca Ifis shares.
On 25 September 2025, the Ordinary and Extraordinary Shareholders' Meeting of illimity Bank took place, which was called to resolve, inter alia, on the renewal of the corporate bodies. This meeting appointed a Board of Directors of illimity Bank for the financial years 2025, 2026 and 2027 (expiring with the approval of the Financial Statements for FY 2027), consisting of, among others, Ernesto Fürstenberg Fassio as Chairman, Rosalba Benedetto and Luca Lo Giudice as Vice Chairmen, and Frederik Geertman as CEO.
On 18 December 2025, Banca Ifis announced that it had completed the due diligence activities preparatory to the determination of the badwill (or 'gain on a bargain purchase' under IFRS 3) arising from the acquisition of illimity Bank, as requested by the European Central Bank (ECB) on 29 April. The results are in line with the Banca Ifis Group's estimates and expectations. The analysis, conducted by an independent external company, allows Banca Ifis to confirm the cost and revenue synergies announced on 8 January 2025 and quantifiable in the order of about 75 million Euro per year, before taxes. The outcome of the due diligence revealed the need for additional impairments at the date of acquisition of 75 million Euro (of which 20 million Euro was already included and expensed in the results as at 30 September 2025) on top of the previous impairments of 290 million Euro made by illimity Bank during 2025.
As required by the European Central Bank, the outcome of the due diligence was transmitted to the Bank of Italy after approval by the Board of Directors of Banca Ifis.
Banca Ifis reported the impacts of the due diligence in the Preliminary Updated Results to 31 December 2025, approved by the Board of Directors on 11 February 2026, and in this Consolidated Financial Statements as at 31 December 2025.
On 9 February 2026, the Board of Directors of illimity Bank ratified the appointment of Raffaele Zingone (former Co-General Manager and Chief Commercial Officer of Banca Ifis) as the company's new Chief Executive Officer. Zingone, who will continue in his role at Banca Ifis, succeeds Frederik Geertman, who has led illimity Bank since last September.
Banca Ifis will now pursue the roadmap to the full integration of illimity Bank into the banking group, to be completed during 2026.
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The Shareholders' Meeting has approved the 2024 Financial Statements and the distribution of a dividend of 0,92 Euro per share for the year
On 17 April 2025, the Extraordinary and Ordinary Shareholders' Meeting of Banca Ifis, approved the 2024 Financial Statements and the consequent distribution of a dividend balance of 0,92 Euro for each Banca Ifis ordinary share issued and outstanding, already considered as a deduction of Equity at 31 December 2024, with ex-dividend no. 31 date of 19 May 2025, record date of 20 May 2025 and payment date of 21 May 2025. At the same time, the Shareholders' Meeting also approved the renewal of the Board of Directors and expanded from 13 to 14 the number of Directors who will hold office until the date of the Shareholders' Meeting convened to approve the Annual Report for the year ending 31 December 2027. Rosalba Benedetto and Chiara Paolino join the Board of Directors. They will further strengthen the Board's expertise in the areas of brand reputation, sustainability and corporate management.
The Board of Directors of Banca Ifis, which met on the sidelines of the Shareholders' Meeting, renewed Frederik Geertman as CEO and appointed Rosalba Benedetto as Vice Chairman of the Banking Group.
Completed issue of a 400 million Euro bond maturing in November 2029
On 8 July 2025, Banca Ifis completed the placement of a 400 million Euro senior preferred debenture loan aimed at institutional investors. The transaction is part of the 5 billion Euro EMTN issuance programme.
In detail, the bond issue matures in November 2029 and the reoffer price was set at 99,758 with a coupon payable annually of 3,625%. The offer was subscribed for 1,5 times the amount issued.
The bond issued by Banca Ifis is listed on the Luxembourg Stock Exchange, with a rating of Baa3 by Moody's and BB+ by Fitch.
Acquisition of Euclidea SIM finalised: Banca Ifis enters asset management services
In line with the principles announced at the start of the year by Ernesto Fürstenberg Fassio to develop a distinctive and competitive offering both technologically and in terms of transparency and cost efficiency, Banca Ifis signed an agreement on Monday 28 July 2025 to acquire 100% of the shares of Euclidea SIM S.p.A. and successfully completed the acquisition on 21 November 2025. The closing of the transaction came after the Banca Ifis Group obtained the necessary regulatory approvals from the Bank of Italy and the clearance with respect to Golden Power. The purchase of Euclidea SIM generated an impact on the Banca Ifis Group's CET1 ratio of approximately 20 bps.
Euclidea SIM is an independent securities brokerage firm offering analysis and portfolio management services. Euclidea's experienced market managers base their choices on a proprietary AI- and machine learning-based "fund ranking" algorithm for selecting actively and passively managed funds based on objective parameters (e.g. cost and historical performance). Through the use of its digital platform, the brokerage firm is thus able to offer a portfolio management service with transparent and competitive pricing and very positive historical performance. The company manages a clientèle mainly concentrated in the private segment: at the end of 2024, the company managed around 400 million Euro in assets on behalf of more than 2.000 clients.
The transaction constitutes the first step in a broader project to expand the offering to the sphere of asset management services.
Leveraging its own history and Euclidea SIM's positive track record, Banca Ifis can thus also broaden the areas of dialogue with business customers, already served within the Commercial & Corporate Banking Segment, and take advantage of the synergies between the Bank and Euclidea SIM by flanking the Rendimax deposit account with a customised advanced digital asset management service.
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With the acquisition of Euclidea, through the new Fürstenberg brand, the new line of financial services and products in asset management, investment funds and advisory is being prepared. The products and the investment platform will continue to maintain the Euclidea brand, which characterises its quality, innovative footprint, and the market proposition, which is also confirmed by the track record obtained in recent years.
Directors Regazzi and Meruzzi join the Board of illimity Bank and resign from the Board of Banca Ifis
On 25 September 2025, following the successful completion of the offer on illimity Bank on 19 September 2025 and in order to be appointed to the Board of Directors of that company, the independent directors Monica Regazzi and Giovanni Meruzzi resigned from their positions of:
•member of the Board of Directors and of the Supervisory Body, as far as Monica Regazzi is concerned;
•member of the Board of Directors and Chair of the Remuneration Committee and Supervisory Body, as far as Giovanni Meruzzi is concerned.
At this stage, the appointment of Monica Regazzi and Giovanni Meruzzi to the Board of Directors of illimity Bank was promoted by Banca Ifis in order to ensure the Parent Company's oversight during the company's integration phase, guaranteeing the presence of directors with adequate skills and experience, as well as the independence requirements provided for by current regulations.
At the date of their resignation, Monica Regazzi and Giovanni Meruzzi did not hold shares in Banca Ifis and, in line with the remuneration policy adopted by the Banca Ifis Group, their termination of office does not entail the payment of allowances or other benefits.
Restructuring of the Emma SPV securitisation worth over 600 million Euro
On 8 October 2025, Banca Ifis successfully completed an STS securitisation transaction of loans with a total nominal amount of 610 million Euro for the purpose of funding its subsidiary Banca Credifarma. The transaction, with Banca Ifis acting as Sole Arranger, was finalised with the acquisition of the loans by the special purpose vehicle Emma SPV.
The transaction, which took the form of a restructuring ("size increase") of a transaction originally carried out in 2018 by the former Farbanca and previously restructured in 2021, allowed Banca Credifarma, the originator of the securitised loans, to increase its funding on more favourable terms, in terms of both cost and duration. Specifically, three classes of asset-backed securities were issued as part of the transaction: the senior class, with a nominal amount of 438,3 million Euro, was fully subscribed by Banca Ifis; the mezzanine and junior classes, with a nominal value of 58,5 million Euro and 112,9 million Euro, respectively, were fully subscribed by Banca Credifarma as originator. The senior bonds were also admitted to trading on the Euronext Access Milan segment managed by Borsa Italiana and were rated by Moody's and Scope Rating agencies with a rating of Aa3 (sf) and AAA (sf), respectively. The receivables as collateral for the transaction derive from land, mortgage and unsecured loans granted by Banca Credifarma. The restructuring made it possible to bring the transaction into line with the requirements for STS securitisations ("Simple, Transparent and Standardised" securitisations) under EU Regulation 2017/2042 (Securitisation Regulation) , as well as to adapt the characteristics of the deal and the senior securities so that the latter could be used as collateral in funding transactions with the ECB.
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85 million Euro offer received from Banca Sella for the sale of the stake held by illimity Bank in Hype accepted
On 3 November 2025, the Board of Directors of illimity Bank, meeting in extraordinary session under the chairmanship of Ernesto Fürstenberg Fassio, accepted the offer of Banca Sella Holding to acquire 50% of the capital of Hype.
The offer includes a financial consideration of 85 million Euro. With the transaction, the Banca Ifis Group would obtain a capital benefit of approximately 55 bps in terms of CET1.
The offer was made by Banca Sella Holding, which identified Banca Sella as the buyer, in accordance with the procedure set out in the shareholders' agreements signed in June 2023 by the then CEO of illimity Bank, Mr Corrado Passera, and Banca Sella Holding.
For significant events occurring after 31 December 2025 with regard to this Hype shareholding, refer to the section below entitled 'Subsequent events'.
Distribution of a 2025 interim dividend of 73,3 million Euro (1,20 Euro per share)
On 10 November 2025, the Board of Directors of Banca Ifis resolved to distribute an interim dividend on 2025 profits for a total amount of euro 73.295.604,00, equal to 1,2 euro per share (gross of withholding taxes), for each of the 61.079.670 Banca Ifis shares issued and outstanding (already net of 739.255 treasury shares). The interim dividend 2025 was paid with ex-dividend date 24 November 2025, record date of 25 November and payment date of 26 November 2025. The report by the Board of Directors and the accounting statement at 30 September 2025 pursuant to Article 2433-bis of the Italian Civil Code, on the basis of which the Board of Directors of Banca Ifis resolved to distribute the interim dividend and included in the Interim Report as at 30 September 2025 - are made available to the public at the Bank's registered office, as well as on the authorised storage mechanism and on the Bank's institutional website, www.bancaifis.it, in the “Investor Relations & Corporate Development" section. Lastly, for the purposes of the distribution of the interim dividend, on 10 November 2025, the independent auditing firm PricewaterhouseCoopers S.p.A. issued the opinion required by Article 2433-bis of the Italian Civil Code, which has been made available to shareholders at the Bank's registered office.
Riccardo Preve and Moroello Diaz della Vittoria Pallavicini co-opted as Members of the Board of Directors of Banca Ifis, replacing the resigning Giovanni Meruzzi and Monica Regazzi
On 11 December 2025, following the positive completion on 3 December of the prior fit and proper assessment by the Bank of Italy, the resolution adopted by the Board of Directors of Banca Ifis on 23 October 2025 became effective. Said resolution provided for the co-optation, pursuant to Article 2386 of the Italian Civil Code and Article 11 of the Articles of Association, and subject to the suspensive condition of a positive outcome of the prior fit and proper assessment by the Bank of Italy, of Mr Riccardo Preve (non-independent director) and Mr Moroello Diaz della Vittoria Pallavicini (independent director), in replacement of the resigning Giovanni Meruzzi and Monica Regazzi. The latter had been appointed in September 2025 to the Board of Directors of illimity Bank in order to ensure oversight by the Parent Company Banca Ifis during the integration phase. The co-opted directors will remain in office until the next Shareholders’ Meeting of Banca Ifis, which will be called upon to confirm them for the remainder of the current Board’s term of office. Mr Moroello Diaz della Vittoria Pallavicini was also appointed as a member of the Remuneration Committee, replacing Prof. Giovanni Meruzzi. The Remuneration Committee is therefore composed as follows: Beatrice Colleoni (Chair), Moroello Diaz della Vittoria Pallavicini and Luca Lo Giudice.
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Fürstenberg is launched: the investment ecosystem designed for entrepreneurs and families Fürstenberg SGR as the first milestone
The Banca Ifis Group, also in light of the recent corporate transactions, has embarked on a transformation path that will enable it to enter daily banking through the illimity retail platform, one of the assets recently brought into the Group, and to integrate its investment companies and divisions under the Fürstenberg brand.
This plan will lead Banca Ifis to expand its offering, while consistently preserving its specialty finance vocation, and confirms the shareholder’s commitment to long-term growth.
Within this evolution, illimity SGR, a company within the illimity ecosystem specialising in alternative investments, as of 18 December 2025 adopted the name Fürstenberg SGR, thereby becoming an integral part of the range of financial services and products for asset management that will be offered to clients under the new Fürstenberg brand.
What has just been described, however, represents only the first step in a broad project that will be progressively enriched over the coming months (see also what is reported later in the section 'Subsequent events').
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Subsequent events
Banca Ifis issues a ten-year Tier 2 bond for 400 million Euro
On 13 January 2026, Banca Ifis successfully completed the placement of a Tier 2 subordinated bond targeted at institutional investors. The issuance has a ten-year maturity, expiring in April 2036, carries a coupon of 4,546% and is callable after 5 years. The amount issued totals 400 million Euro.
At the end of the placement, the Bank recorded an issue price of 100%, equivalent to a spread of 200 basis points over the reference rate: this represents the lowest spread ever achieved by the Bank for a Tier 2 subordinated issuance. The issuance is intended to replace other subordinated bonds currently outstanding, issued by Banca Ifis and illimity Bank, and will generate significant medium-term savings in terms of funding costs for the Banca Ifis Group.
The bond has been listed on the Luxembourg Stock Exchange and is rated Ba3 by Moody’s and BB- by Fitch.
Euclidea SIM changes its name to Fürstenberg SIM and the Fürstenberg ecosystem also welcomes the Corporate & Investment Banking divisions of Banca Ifis and illimity Bank
With effect from 26 January 2026, Euclidea SIM, the investment firm acquired by Banca Ifis in November 2025 and active in portfolio analysis and management services, has changed its name to Fürstenberg SIM and has officially become part of the Fürstenberg ecosystem. Through the product brand Fürstenberg Euclidea, Fürstenberg SIM will offer clients an advanced investment management approach, focusing on simple solutions designed to address the complexity of the financial world.
Furthermore, as of 26 January 2026, the Corporate & Investment Banking (CIB) divisions of Banca Ifis and illimity Bank have also been incorporated under the Fürstenberg brand. These divisions include the operational units of Structured Finance, Equity Investment, M&A Advisory, Equity Capital Markets and Debt Capital Markets.
These are two decisive milestones in the wide-ranging project that is leading Banca Ifis to market itself in the asset management market under the Fürstenberg brand name (see also the section on "Significant events during the year" above).
The objective of this new and multi-faceted division is to support families, entrepreneurs and institutional investors in the growth and enhancement of their wealth.
This target will be pursued through an integrated approach, ranging from wealth management to Investment Banking solutions based on specialised expertise and a deep understanding of the entrepreneurial landscape. This is complemented by access to Private Capital through co-investments in small and medium-sized enterprises and high-potential mid-caps.
The mission of the new entity is also clearly reflected in the payoff chosen to express the vision underpinning the project: "Finance for Future", which confirms the Group’s commitment to generating sustainable value over time for all stakeholders.
The Group’s services and products are showcased on the new website www.furstenberg.eu, which serves as a dedicated online platform for visibility and promotion.
Disposal to Banca Sella of the equity interest held by illimity Bank in Hype for a price of 85 million Euro
Following the receipt of the required regulatory approvals in early 2026, on 6 February 2026 the equity interest held by illimity Bank in Hype, corresponding to 50% of the company’s share capital, was sold to the Banca Sella Group at the agreed price of 85 million Euro, with an impact of 55 basis points in terms of CET1.
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Disposal by illimity Bank of loan assets in the amount of 41 million Euro
On 28 January 2026, illimity Bank finalised a transaction for the sale of loans recorded under assets held for sale for an equivalent value of 41 million Euro, in line with the carrying value in the balance sheet as at 31 December 2025.
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Information on major risks and uncertainties and international tensions
This section aims to provide a specific disclosure on the impacts generated by international tensions, especially with reference to the Middle East and the continuing Russia-Ukraine conflict, to which international tensions related to restrictive trade policies mainly implemented by the Trump administration have been added.
At the Banca Ifis Group level, country risk monitoring is carried out on conflict-affected countries. This continuous monitoring has revealed a limited number of counterparties present in the areas involved by the current international tensions, to which modest direct credit exposures correspond. Similarly, no particular critical issues have been noted with regard to the trade receivables portfolio.
Furthermore, the Risk Management function, in addition to the risk factors usually considered, continues to deem it reasonable to include the current geopolitical tense situation as an additional risk factor.
With regard to the analyses carried out by the Banca Ifis Group on the impact of the introduction of customs duties by the US administration on European products, refer to what is detailed in the Notes to the Consolidated Financial Statements, within the sub-section "2.3 Methods for measuring expected losses", paragraph "1.1 Credit Risk" of "Section 2 - Risks of the Consolidated Financial Statements" within "Part E - Information on Risks and Related Hedging Policies", as well as to what is stated in this Directors' Report on the Group in the paragraph "Business outlook".
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Business outlook
In the current macroeconomic context, the Italian and European economies are going through a phase of moderate but stable growth, after the slowdown recorded in 2025. The most recent forecasts by the European Commission and the Bank of Italy indicate an increase in Italian GDP of around 1% in 2026, supported by improved business confidence, a gradual recovery of investments and recovering domestic demand.
Inflation, after the peak observed in the previous two years, is gradually moving back towards the 2% target, thanks to lower energy prices and reduced tensions on food and industrial goods. This development allowed the European Central Bank (ECB) to start a cycle of lowering reference rates, which will continue, albeit gradually, during 2026.
The lower interest rate environment favours an improvement in financing conditions for households and businesses, with positive effects on lending and funding volumes, but also leads to downward pressure on bank interest income. In this scenario, the Banca Ifis Group will continue to focus on careful liquidity management, strengthening the diversification of funding sources and a selective pricing strategy to preserve the overall profitability of the portfolio.
At the international level, however, uncertainty factors related to financial market volatility, the geopolitical situation in some global areas and the evolution of fiscal policies in major European countries remain.
The ongoing war involving Iran has shifted from a regional crisis to a geopolitical uncertainty, with potential macroeconomic implications that cannot be foreseen to date. The conflict has raised the price of oil and gas, and, if it continues for several months, could fuel inflationary pressures and reduce global growth.
Overall, the macroeconomic conditions forecast for 2026 are deemed consistent with the maintenance of a stable framework for the Italian banking system and the continuation of the sustainable growth path undertaken by the Banca Ifis Group.
In 2025, net profit attributable to the Parent Company Banca Ifis amounted to 328,0 million Euro and includes the positive contribution of Banca Ifis and the effects of the first-time consolidation of the illimity Group as of 1 July 2025. Non-recurring items mainly relate to the gain on a bargain purchase (badwill) and non-recurring integration charges as well as the due diligence results on the illimity Group and costs related to the offer on illimity Bank.
The pro-forma CET1 stood at 13,7%, confirming the Banca Ifis Group's ability to successfully finalise an extraordinary transaction such as the acquisition of illimity Bank without affecting its solidity profile.
For FY 2026, the Banca Ifis Group expects to achieve net profit in the range of 170–190 million Euro, in the absence of macroeconomic or geopolitical shocks. The Group's strategy is focused on the integration project, on the commercial development of the combined entity and on reducing the cost of funding, with the aim of achieving significant benefits in terms of cost and revenue synergies as early as 2027.
In particular, with regard to the integration of illimity Bank, the sale of Hype to the Banca Sella Group for 85 million Euro has already been finalised, with an impact of 55 bps of CET1. The review of the perimeter of non-core assets is continuing and is expected to generate positive results for the Group in the coming months. In addition, the reorganisation continues of strategic IT partnerships with a view to improving the Group's efficiency and technological competitiveness, particularly in areas with a high innovation content such as AI, and allowing confirmation of the cost synergies announced with the voluntary totalitarian tender and exchange offer.
Finally, the full integration of the direct banking platform and other strategic business areas of illimity Bank will enable Banca Ifis to further strengthen its market leadership in supporting SMEs.
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Performance of the Group's main companies
The following is a summary of the main equity investments in Group companies with evidence of the most significant balance sheet, income statement and operating data referring to 31 December 2025.
With regard to the parent company Banca Ifis, reference is made to the '2025 Report and Financial Statements' of Banca Ifis included in this bundle.
Ifis Npl Investing

STATEMENT OF FINANCIAL POSITION DATA (in thousands of Euro) | AMOUNTS | CHANGE
31.12.2025 | 31.12.2024 | ABSOLUTE | %
Total assets | 1.688.997 | 1.689.157 | (160) | (0,0)%
Receivables due from customers measured at amortised cost | 1.553.840 | 1.512.262 | 41.578 | 2,7%
Equity | 507.766 | 560.767 | (53.001) | (9,5)%

INCOME STATEMENT DATA (in thousands of Euro) | AMOUNTS | CHANGE
31.12.2025 | 31.12.2024 | ABSOLUTE | %
Net banking income | 141.263 | 116.290 | 24.975 | 21,5%
Operating costs | (129.117) | (133.043) | 3.926 | (3,0)%
Profit (loss) for the year | 91.996 | 75.582 | 16.414 | 21,7%

The balance sheet changes recorded between the end of 2025 and the end of 2024 with reference to loans to customers are mainly due to the dynamics relating to the purchases of Npl portfolios made during the year (for more details, refer to the balance sheet comments on the Npl segment within the section "Contribution of operating Segments to Group results" within this Directors' Report on the Group).
As far as the income statement figures are concerned, Ifis Npl Investing posted a net profit of 92,0 million Euro as at 31 December 2025, an increase of 21,7% compared to the figure of 75,6 million Euro as at 31 December 2024. In particular, growth was led by net banking income, up 25,0 million Euro (+21,5%) from the previous year, thanks to higher net interest income (+4,3 million Euro, mainly due to the containment of the cost of funding) and higher profits from the sale of financial assets (+16,6 million Euro).
Against these trends in net interest and other banking income, there was substantial stability in operating costs.
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Banca Credifarma

STATEMENT OF FINANCIAL POSITION DATA (in thousands of Euro) | AMOUNTS | CHANGE
31.12.2025 | 31.12.2024 | ABSOLUTE | %
Total assets | 815.798 | 719.482 | 96.316 | 13,4%
Receivables due from customers measured at amortised cost | 747.554 | 700.781 | 46.773 | 6,7%
Equity | 131.837 | 129.154 | 2.683 | 2,1%

INCOME STATEMENT DATA (in thousands of Euro) | AMOUNTS | CHANGE
31.12.2025 | 31.12.2024 | ABSOLUTE | %
Net banking income | 34.828 | 36.734 | (1.906) | (5,2)%
Operating costs | (17.584) | (15.593) | (1.991) | 12,8%
Profit (loss) for the year | 12.101 | 13.020 | (919) | (7,1)%

Banca Credifarma reported a net profit of 12,1 million Euro as at 31 December 2025, compared to 13,0 million Euro in 2024 (-7,1%).
Net banking income totals 34,8 million Euro, down 5,2% from 2024, mainly due to the lesser contribution made by net interest income, which decreases by 8,2%, coming to 28,6 million Euro. The 17,2% reduction in interest income compared to 2024 was in fact only partially offset by the parallel decrease in interest expenses, which accrued on deposits from other banks, the Emma securitisation programme and customer current accounts.
As at 31 December 2025, the company recorded net write-backs on loans amounting to 0,9 million Euro, a significant improvement over the previous year's figure of 1,4 million Euro.
Operating costs amount to 17,6 million Euro, up 12,8% from 15,6 million Euro in 2024, mainly as a result of higher net allocations to provisions for risks and charges (+0,5 million Euro) and an increase in administrative expenses (+0,9 million Euro).
As a result of these dynamics at the level of the decrease in net banking income and the increase in operating costs, the effects of which were only partially offset by the improvement in the credit cost, Banca Credifarma's 2025 profit was 0,9 million Euro worse than the 2024 figure.
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illimity Group
The figures reported here for the illimity Group are intended as those for the purposes of the consolidated financial statements of the Banca Ifis Group. Therefore, the figures at the income statement level are characterised by nil comparative data and by results as at 31 December 2025 limited to the period pertaining to the Banca Ifis Group (i.e. only the six months from July to December 2025, considering that control of illimity Bank was achieved on 4 July 2025) and including the effects of the so-called "PPA - Purchase Price Allocation". In substance, the figures reported below correspond, net of any reclassifications, with those reported with reference to the illimity Segment in the section 'Contribution of Business Segments to Group Results' of this Directors' Report on the Group.

STATEMENT OF FINANCIAL POSITION DATA (in thousands of Euro) | AMOUNTS | CHANGE
31.12.2025 | 31.12.2024 | ABSOLUTE | %
Total assets | 7.086.918 | n.a. | n.a. | n.a.
Receivables due from customers measured at amortised cost | 5.045.581 | n.a. | n.a. | n.a.
Equity | 561.632 | n.a. | n.a. | n.a.

INCOME STATEMENT DATA (in thousands of Euro) | AMOUNTS | CHANGE
31.12.2025 | 31.12.2024 | ABSOLUTE | %
Net banking income | 123.995 | n.a. | n.a. | n.a.
Operating costs | (112.232) | n.a. | n.a. | n.a.
Profit (loss) for the year | (77.110) | n.a. | n.a. | n.a.

With regard to comments on the financial and economic dynamics of the illimity Group that contributed to the results of the Banca Ifis Group as at 31 December 2025, refer to the comments in the paragraph "illimity Segment" contained within the section "Contribution of operating Segments to Group results" of this Directors' Report on the Group.
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Sustainability Statement
The desire to create value for all stakeholders is inherent in the DNA of Banca Ifis. This objective is translated into a sustainability approach that is integrated into the Group's strategic and operational framework, following the "double bottom line" approach inspired by the Chairmanship. The Bank's sustainable transformation, which started with the initiatives included in the D.O.E.S. Business Plan, has been translated into concrete initiatives on all “E”,”S”,”G” dimensions. These actions have led the Bank to achieve important results, which are detailed and described in the Group's Consolidated Sustainability Report.
The year 2025 marked a milestone in the Group's journey: the takeover bid on illimity Bank kicked off an industrial project combining two innovative realities to create a banking group of reference for Italian small and medium-sized enterprises. Added to this was the acquisition of Fürstenberg SIM (formerly known as Euclidea SIM), the Group's first step into asset management services, which will be offered to clients under the new Fürstenberg brand.
The Group is focused on making the most of its assets, realizing the synergies communicated to the market and promoting a modern and inclusive corporate culture. In this path of growth and transformation, ESG topics continue to represent an opportunity for development, consistent with the strategy and approach followed over the past few years. The Group has integrated them into its business through financial products and services that can support SMEs in their sustainable transition path. Sustainability has also become the foundation of the Bank’s business model, including in the management of non-performing loans, which can represent an opportunity for financial reintegration, by offering sustainable repayment plans that enable families and businesses to regain access to credit. Consolidated Sustainability Reporting responds to the regulatory requirements launched at European level in the area of ESG disclosure, representing not only a disclosure tool, but also an opportunity to represent the Group's approach to sustainability to stakeholders, emphasising actions, metrics and objectives linked to the most relevant sustainability topics.
With regard to the environment, the Group's commitment to reducing the indirect impacts of its financing activities continued, alongside a focus on limiting energy consumption, sourcing energy from renewable sources and adopting the highest international standards (such as LEED certification) for the optimisation of the Group's real estate assets. As a partner for SME customers, the Group continued to work on expanding its product offering for sustainable mobility and energy transition.
With reference to social issues, which have always been a distinctive element of the Group since the launch of Kaleidos, the Social Impact Lab set up in 2022 at the impetus of the Chairmanship, 2025 was an opportunity to consolidate the initiatives launched: since its inception, Kaleidos has developed more than 60 high social impact projects with a commitment of 10 million Euro. This was flanked by the impact measurement model prepared in collaboration with the Polytechnic University of Milan, which makes it possible to objectively quantify the social impact generated on the communities and people benefiting from the initiatives developed. The results of the measurement showed that, on average, every Euro invested by Banca Ifis in initiatives supporting the territory that have generated more than five Euro of social value for the general public. The commitment in the social sphere, increasingly integrated into the business, has also materialised in the strengthening of the sustainable Npl collection model, and with the launch of a financing product dedicated to companies operating in the 'Economy of Beauty'. The commitment is also reflected in an articulated plan in favour of employees and aimed at enhancing the themes of diversity, equity and inclusion: after obtaining the Winning Women Institute certification as the first financial institution in Italy, the Group's positioning was confirmed by the certification according to the UNI PdR 125:2022 standard.
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Also in the social sphere, through Ifis art, a project that brings together all the initiatives carried out by the Bank to promote art, Banca Ifis started work in June to rescue and secure The Migrant Child, one of only two works by the artist Banksy on Italian soil. The work was finally saved on 24 July 2025 and the Bank will now proceed with the restoration of the building that housed it, Palazzo San Pantalon in Venice.
Aspects of good governance underpin the Group's activities, not only with reference to elements of regulatory compliance and safeguarding integrity and ethics, but also with a focus on transparency towards stakeholders, as demonstrated in the Consolidated Sustainability Report.
The Group's commitment, recognised by all stakeholders, has led to important awards, such as the award as the best ESG programme in Europe in the Small-Mid Cap segment, assigned for the second year running by the independent research company Extel Institutional Investors, and the upgrade to 'AAA' of the ESG rating assigned by MSCI (second consecutive upgrade in two years), which includes Banca Ifis among the leaders in the sector.
This path will also be further enriched through the integration of the sustainability practices of the new subsidiary illimity Bank, which, in line with Banca Ifis, is positioned at the top of the main international indexes, and whose main sustainability initiatives are described in this document and explored in the Consolidated Sustainability Report of illimity.
Finally, in January 2026, Banca Ifis further strengthened its sustainability positioning also with reference to the most important international initiatives, by signing up to the Principles for Responsible Banking and the principles of the Global Compact, initiatives born under the aegis of the United Nations.
With the transposition of Directive (EU) 2022/2464, known as the Corporate Sustainability Reporting Directive (CSRD), Legislative Decree No. 125 of 6 September 2024 introduced into Italian law the obligation for several categories of companies, including large public interest companies, to draw up an annual sustainability statement. This reporting must comply with the standards set by the European Financial Reporting Advisory Group (EFRAG) and the requirements of other applicable European regulations, such as EU Regulations 2088/2019 and 852/2020.
Banca Ifis S.p.A., a public interest entity that meets the required size criteria, will publish - as of financial year 2024 - a Consolidated Sustainability Statement in line with the provisions of Legislative Decree no. 125/24. This requires a dual approach, considering both the impacts of the company on society and the environment (inside-out perspective) and how sustainability factors affect the company itself (outside-in perspective).
The data and information collection process was carried out in cooperation with the different business functions according to the principles of relevance, faithful representation, comparability, verifiability and comprehensibility, as recommended by EFRAG's ESRS (see ESRS 1, section 2).
This Sustainability Report represents the result of a continuous journey towards achieving corporate transparency and the integrated management of sustainability within the Bank's strategy, in line with the Group's approach, the UN 2030 Agenda, the goals of the Paris Agreement and the transition to a sustainable economy.
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Consultation guide
1. General Disclosures
1.1 ESRS 2 - General disclosures
2. Environment
2.1 Disclosures pursuant to Article 8 of Delegated Regulation (EU) 2020/852 (Taxonomy Regulation)
2.2 E1 - Climate change
2.3 E4 - Biodiversity and ecosystems
3. Social
3.1 S1 - Own workforce
3.2 S2 - Workers in the value chain
3.3 S3 – Affected communities
3.4 S4 – Consumers and end-users
4. Governance
4.1 G1 – Business conduct
5. Other sustainability information
5.1 Disclosures pursuant to Article 8 of Delegated Regulation (EU) 2020/852 (Taxonomy Regulation)
5.2 Disclosure requirements in ESRS covered by the undertaking’s Sustainability Statement
5.3 Minimum disclosure requirements: MDR-P Policies overview

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1. General disclosures
1.1 ESRS 2 - General disclosures
1.1.1 Basis for preparation
Consolidation scope
[BP-1 DP 5a,bi,bii]
The Consolidated Sustainability Statement has been prepared by the Parent Company Banca Ifis S.p.A. and includes all companies consolidated on a line-by-line basis in the Financial Statements with reference to the reporting period between 1 January 2025 and 31 December 2025.
More specifically, the following entities are included in the reporting 6:
•Ifis Finance Sp. z o.o.
•Ifis Rental Services S.r.l.
•Ifis Npl Investing S.p.A.
•Cap.Ital.Fin. S.p.A.
•Ifis Npl Servicing S.p.A.
•Ifis Finance I.F.N. S.A.
•Banca Credifarma S.p.A.
•illimity Group
•Fürstenberg SIM S.p.A.7
The scope of the Consolidated Sustainability Statement coincides with that of financial reporting, ensuring consistency and comparability between the non-financial and financial information reported in the Consolidated Financial Statements 8. For further details, please refer to the Notes to the Consolidated Financial Statements, Section 3 - Scope and methods of consolidation, Part A. With regard to the illimity Group and Fürstenberg SIM S.p.A., the acquisition transactions were completed on July 4, 2025, and November 21, 2025, respectively. Specifically, regarding the illimity Group, Banca Ifis' consolidated reporting includes the most significant initiatives and policies.
[BP-1 DP 5c]
The information contained in the Consolidated Sustainability Statement includes the material impacts, risks and opportunities (hereinafter also referred to as “IROs”) associated with Banca Ifis that emerged as material from the double materiality assessment (also referred to as double materiality assessment), which cover both its own operations and direct and indirect business relationships along the value chain. With reference to the latter, this information mainly concerns, upstream, the suppliers involved in the development of the Group's products and
6 It should be noted that only the investee illimity Bank is subject to the scope of application of Legislative Decree no. 125/2024 on a consolidated basis; no other company included in the Banca Ifis Group's consolidation perimeter is subject to the obligation to prepare its Sustainability Report on an individual or consolidated basis. It is specified that no operational control was identified for any of the companies consolidated using the equity method. As regards Justlex and Redacta, these companies were considered as value chain players by virtue of their existing business relationship with the Group and included in the reporting of indirect Scope 3 emissions. Specifically, the materiality assessment conducted on the Scope 3 categories revealed the predominance of the supply component over the investment component of the Justlex and Redacta companies; therefore, these companies were placed in Scope 3 category 1. With regard to the newly-associated Edulia, the materiality assessment revealed the prevalence of the investment component over the supply component; therefore, the company was placed in Scope 3 category 15.
7 It should be noted that Euclidea SIM S.p.A., acquired on 21 November 2025, was renamed Fürstenberg SIM S.p.A. effective 26 January 2026.
8 It should be noted that due to the residual size of the Group's activities for Romania and Poland (employees <2%), the policies and actions described refer to Italy, except where specified.
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services and, downstream, the customers reached through business relations, as well as the communities and territories within which the Bank operates.
For more details on the materiality assessment, refer to the section "double materiality assessment" (see 1.1 ESRS 2 - General Disclosures, section 1.1.4 Managing Impacts, Risks and Opportunities: double materiality assessment). Information on the coverage of policies, actions, targets and metrics, as well as data on the value chain, are set out in the different thematic chapters of the document.
[BP-1 DP 5d]
The Group has decided not to make use of the option to omit information on intellectual property, know-how or innovation results.
Disclosures in relation to specific circumstances
[BP-2 DP 10a,b]
The Ifis Group's Consolidated Sustainability Report includes a number of quantitative disclosures prepared on the basis of estimates, industry averages and other proxies, as these are not always based on directly available primary data.
In particular, as part of the reporting on Climate Change under ESRS E1, quantitative data on the entire value chain, upstream and downstream, are reported in order to fulfil the E1-6 reporting requirements on gross Scope 1, 2 and 3 greenhouse gas emissions and total GHG emissions, using estimates based on industry average data and additional proxies.
The Group periodically reviews the emission categories mapped and reported and, during 2025, expanded the scope of Scope 3 emissions calculation and reporting by including four additional categories compared to previous reporting.
With reference to Scope 3 emissions, the categories included in the reporting boundary are therefore: no. 1 "Purchased goods and services", no. 2 "Capital goods", no. 3 "Fuel and energy-related activities", no. 5 "Waste generated during operations", no. 6 "Business travel", no. 7 "Employee commuting" and no. 15 "Investments" identified by the GHG Protocol.
In addition, from a methodological point of view, refinements were made to make the calculation more reliable and precise.
Below are the metrics differentiated by type of underlying data used by Ifis Group to prepare estimates for its value chain based on indirect sources, as well as the basis for the preparation used to determine each metric.
For category no. 1, emissions arising from purchasing expenses related to lawyers and consultants, auditing firms, outsourcing services, customer information expenses, software support and rental, telephone and data transmission expenses, advertising and advertisements, document postage and archiving, and other miscellaneous expenses are reported. These emissions were calculated using the GHG Protocol's Spend-Based Method using emission factors provided by Eurostat based on the NACE economic activities contained in the Environmentally Extended Input Output (EEIO).
For category no. 2, emissions from tangible and intangible fixed assets, purchased during the year, are reported, calculated according to the 'Spend-based' methodology on balance sheet data using emission factors provided by Eurostat based on the categories contained in the EEIO.
For category No. 3, emissions from fuel and energy-related activities are considered, i.e. emissions related to the car fleet and emissions related to the consumption of leased premises and buildings. This category is calculated by applying the average-data method, with emission factors derived by the Department for Energy Security and
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Net Zero (DESNZ 9) from the document 'Conversion factors 2025: full set (for advanced users)'. It is specified that, where precise data on the consumption of owned or leased premises were not available, an estimate based on Energy Performance Certificates (APE) was used.
For category no. 5, emissions from ordinary and special waste are reported, calculated according to the Average-data method, with emission factors derived from the Department for Energy Security and Net Zero (DESNZ). It is specified that ordinary waste, if not derived from weighing systems, was estimated using certain reference indicators: for Italy the per m² indices of the MEF TARES Guidelines, and for foreign locations the EEA per capita indices. Waste destination percentages were determined on the basis of data available from the Eurostat database.
For category no. 6, with reference to Italian sites, emissions related to employees' business travel, including air flights, train journeys, car journeys and other means of transport, calculated on the basis of data offered by ticketing service providers and related emission factors derived from the Department for Energy Security and Net Zero (DESNZ) are considered; with reference to foreign sites, emissions were calculated by applying the 'Spend-Based' methodology, using emission factors derived from the Department for Energy Security and Net Zero (DESNZ).
For category no. 7, emissions from employee commuting calculated according to the distance-based and average-data methodologies based on the results of the internal questionnaire on home-work trips are reported. These emissions were calculated using emission factors derived from the Department for Energy Security and Net Zero (DESNZ).
Finally, for category No. 15, the calculation was performed by applying a differentiated level of estimation depending on the availability and granularity of the input data. Where available, timely counterparty data were used; in the absence of such information, the calculation was conducted using sector proxies, in line with the Partnership for Carbon Accounting Financials (PCAF), assigning quality scores of 4 or 5 depending on the specific case. To this end, data and proxies from established databases such as the Bank of Italy, European Environment Agency and Bloomberg were used. Where necessary, this information was supplemented with Eurostat's Environmentally Extended Input-Output (EEIO) tables, which provide average emission factors per NACE sector, expressed in terms of emission intensity per unit of turnover at the average European level. For 2025, government bond issues were also included, estimated in line with the PCAF guidelines.
[BP-2 DP 10c,11a]
As described above, despite the adoption of 'reasonable efforts' in accordance with the regulations when compiling sustainability data, it was not possible to use data derived from primary sources for Scope 3 category 1, 2 and almost all category 15 10. This is due to several factors, including the complexity of the value chain, characterised by the presence of numerous players, the lack of sector-specific standards, the limited use of IT tools for the direct collection of data and information, as well as the significant presence of small and medium-sized enterprises (SMEs) within the Group's customer base, which have limited capabilities in monitoring and reporting sustainability data.
Therefore, uncertainties in measurement resulting from the use of proxies and secondary data persist, however the accuracy of metrics calculated using sectoral proxies is ensured by assumptions, data quality and authoritative sources used at the national, European or international level: as mentioned above, the EEIO emission factors provided by Eurostat with reference to category 1 and 2 emissions and part of category 6 and the emission factors provided by the Department for Energy Security and Net Zero (DESNZ) for categories 3, 5, 6 and 7 were considered. Category 15 emission factors were deduced using institutional sources and international databases, including
9 Formerly known by the acronym DEFRA.
10 For further details on use of primary data refer to E1-6 AR 46g,h.
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sectoral data from the Bank of Italy, GHG emissions from the European Environment Agency and Bloomberg financial indicators, used to calculate sectoral Emission Intensity. For government bonds, official UNFCCC and OECD emission data were also used. Any further methodological details will be provided in the following paragraphs of the disclosure.
In addition, the Bank has adopted an IT platform as a centralised tool for the collection and processing of monetary amounts and quantitative metrics reported by the various business functions, defining a structured approach to ensure the accuracy, consistency and reliability of the reported information, while reducing levels of measurement uncertainty.
[BP-2 DP 10d]
Also with a view to the future, Banca Ifis aims at increasingly accurate reporting, favouring, where possible, the use of point data over estimates, using the best available standards (such as GHG Protocol and PCAF).
[BP-2 DP 9a,b]
In accordance with the definitions of "time horizons" for reporting purposes under the EFRAG ESRS, the Banca Ifis Group adopts the following time intervals:
•short-term time horizon: corresponding to the period adopted as the reference period for its financial statements, i.e. one year;
•medium-term time horizon: up to five years from the end of the short-term reference period;
•long-term time horizon: beyond five years.
[BP-2 DP 13a,b]
Following the acquisitions made during 2025, this Consolidated Sustainability Report includes the consolidated data referring to the Group's new scope for the reporting period, as well as any methodological refinements aimed at aligning reporting processes. In view of the new reporting scope, the comparative figures for FY 2024 have not been updated.
With specific reference to metrics, details on relevant methodological refinements and corrections are given in the dedicated chapters (see 2.2 ESRS E1 - Climate Change, section 2.2.4 Metrics; 3.1 ESRS S1 - Own Labour Force, section 3.1.10 Metrics).
This report has been prepared in accordance with the framework of the Task Force on Climate-related Financial Disclosures (TCFD); to this end, a reconciliation table has been drawn up between the sections of the Consolidated Sustainability Report and the expectations of the TCFD (see Other Sustainability Information, section 5.4 Reconciliation of TCFD Requirements to Consolidated Sustainability Reporting).
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1.1.2 Strategy
[SBM-1 DP 42]
Banca Ifis was founded in 1983 as a specialised factoring operator. Today, the Bank and the Group support businesses, particularly SMEs, with specialised credit solutions: factoring, leasing, medium/long-term loans and corporate & investment banking.
Over the years, the Group has also become one of the main specialised operators in the Italian impaired loans sector and a leader in the Npl - small ticket unsecured segment, combining purchasing and management or transformation of non-performing loans. The acquisition of the servicer FBS in 2019, today Ifis Npl Servicing, was the first step on a path that has consolidated the Group's role as an integrated player active across the entire impaired loans chain, from portfolio purchase to portfolio management. In addition, it has a division entirely dedicated to the management and financing of tax credits through advances and boasts a significant presence in pharmacy finance through Banca Credifarma, which was created through the merger by incorporation of Credifarma into Farbanca on 11 April 2022.
These corporate activities are flanked by services for retail customers, with the Rendimax Deposit Account, an on-line deposit account for family and business savings, and the Rendimax Current Account. Since 2018, the Group operates in consumer credit with Cap.Ital.Fin. S.p.A., a financial intermediation company specialised in salary- and pension-backed loans, also in payment delegations.
During 2025, the Group finalised the acquisition of 100% of the illimity Group, the challenger bank created with a strong technological and digital vocation, which stands out for its innovative model and its broad offer of credit to SMEs in the areas of performing, restructuring, recovery and investment banking services, as well as a wide range of digital retail products. Finally, in November 2025, Banca Ifis successfully completed the acquisition of 100% of Fürstenberg SIM (formerly Euclidea SIM), a securities brokerage company offering portfolio analysis and management services.
These acquisitions strengthen the Bank's leadership position in the speciality finance market, ensuring greater commercial action in services to SMEs and expanding the Group's market perimeters. The Group, also in light of the recent corporate transactions, has embarked on a transformation path that will enable it to enter daily banking through the illimity retail platform, one of the assets recently brought into the Group, and to integrate its investment companies and divisions under the Fürstenberg brand. This plan will lead Banca Ifis to expand its offering, while consistently preserving its specialty finance vocation, and confirms the shareholder’s commitment to long-term growth.
Within this evolution, illimity SGR, a company within the illimity ecosystem specialising in alternative investments, as of 18 December 2025 adopted the name Fürstenberg SGR, thereby becoming an integral part of the range of financial services and products for asset management that will be offered to clients under the new Fürstenberg brand.
The Group operates in the Italian banking scene, a significant market for Banca Ifis, as an active player in speciality finance and abroad, with a focus on Eastern Europe where Ifis Finance Sp. z.o.o. in Poland and Ifis Finance I.F.N. S.A. are present in Poland and Romania, respectively.
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The number of employees by geographical area is shown below:
[SBM-1 DP 40aiii]

Geographical area | Number of employees (head count)
2025 | 2024
Italy | 2.668 | 1.983
Poland | 15 | 14
Romania | 12 | 16
Total employees | 2.695 | 2.013

It should be noted that the increase in the number of employees with reference to Italy, compared to what was reported in 2024, is due to the inclusion in the count also of the employees of the illimity Group, amounting to 672, and of Fürstenberg SIM, amounting to 19, as at 31 December 2025.
[SBM-1 DP 40ai,aii,e,f,g]
The conclusion of the D.O.E.S 2022-2024 (Digital, Open, Efficient, Sustainable) Business Plan, together with the achievement of all the targets set, further strengthened the Bank's orientation towards digitisation and sustainability.
Also in view of the perimeter changes during 2025, the Group's strategic lines in the ESG area will be consolidated during 2026, in order to integrate the opportunities arising from the synergies created into the next Business Plan.
Recent acquisitions have also led the Group to extend the scope of products and services offered and acquire new customer groups to which it can offer concrete solutions to support its sustainable transition. In addition to offering various solutions to support the green transition of SMEs, such as tools for sustainable mobility, energy efficiency, subsidised loans and scoring tools to assess the ESG performance of clients, recent acquisitions offer a sustainable financing model linked to ESG objectives of corporate clients, in line with illimity's Green, Social & Sustainability-Linked Loan Framework. This tool enables loans that support projects with positive environmental and social impacts, as well as the Bank's ESG commitments, with a view to transparency and alignment with international best practices.
With reference to the Npl (non-performing loans) business, the implementation of the strategy aimed at enhancing the Group's sustainable recovery model 11 continues, whose ultimate goal is the financial re-inclusion of households and businesses. The Group's products and services related to sustainability topics are described in detail in the chapter on the Transition Plan (see 2.2 ESRS E1 - Climate Change, section 2.2.1 Transition Plan, DP 16b).
[SBM-1 DP 42a]
On the basis of the business model described above and the corporate structure as at 31 December 2025, the Group collects data on its operating perimeter and value chain in a centralised manner through information flows from the companies to the parent company, Banca Ifis, which analyses and develops them, with the aim of
11 Banca Ifis operates in the field of impaired loan recovery with an approach based on dialogue and transparency, interpreting its recovery action as an opportunity for financial re-inclusion, consistent with the approach promoted by the Chairman and focussed on sustainability.
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identifying significant IROs and possible relationships between the various elements of the value chain, periodically producing reports and documentation useful to internal and external stakeholders.
[SBM-1 DP 42,c]
As regards the various elements of the Banca Ifis value chain, it is structured into a network of upstream counterparts, including suppliers, business partners, banks and investors, and downstream counterparts, including customers, employees, communities and distributor partners, with the aim of offering targeted financial solutions and supporting the economic and social fabric.
In particular, the upstream value chain consists of all the resources and activities that enable the Group to deliver its products and services:
•suppliers play a key role by providing strategic consulting services to support business innovation and digitisation, as well as goods and services essential to the Group's operational functioning. These also include information providers, which offer data and analysis crucial for credit assessment, risk management and decision-making support. A further crucial contribution comes from legal activity services, which ensure regulatory compliance and provide assistance in handling disputes.
•business partners are mainly represented by suppliers of capital goods and motor vehicles. These entities support leasing and financing operations by providing the Group with machinery, equipment and vehicles necessary for the pursuit of financial activities aimed at companies and individuals;
•partner banks assume a strategic role in supporting Banca Ifis in the management of impaired loans through co-investment and joint asset management transactions;
•investors, finally, represent an important source of capital for the Bank. These include institutional investors, such as funds and insurance companies, who contribute to the financial strength and growth of the Group's operations.
In a parallel fashion, the Group's downstream value chain includes the distribution and delivery of services to end users:
•distributor partners, including brokers and agents, play an essential role in the dissemination of the Bank's financial products and services, facilitating the matching of supply and demand for credit and leasing solutions, as well as operating in the management of impaired loans;
•customers represent the central point in the downstream value chain. Banca Ifis's customers are both private individuals and companies, who benefit from a wide range of financial solutions, including leasing, factoring, loans and credit management tools, tailored to their specific needs;
•communities and the third sector, with which Banca Ifis actively cooperates to promote sustainable economic development initiatives and projects with a social purpose.
The integration of upstream and downstream activities supports the Group's own operations, enabling it to offer innovative solutions, manage risks effectively and support long-term economic and social growth.
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[SBM-1 DP 42b]
In addition, the mapping of the value chain involved the identification and evaluation of activities and processes through which the Bank generates value. These include supporting SMEs, which has always been in the DNA of the Group, which sees itself as “a company that banks”. With this in mind, the focus is on entrepreneurs with the aim of responding to their needs with a diversified and structured Commercial and Corporate Banking offering, including factoring, financial leasing and operating leases, advisory services for corporate acquisitions, M&A and medium- and long-term financing, tax credit purchases, Investment Banking and Special Situations. In the Npl segment, the value generated is hinged on the combination of the capacity to acquire and transform bad loans, offering families and businesses the possibility of agreeing on and managing sustainable repayment plans. In particular, recovery activities are interpreted with a view to the financial re-inclusion of families and businesses, with a substantial focus not only on compliance with applicable regulations and self-regulatory codes, but also with specific processes aimed at meeting the needs of debtor clients.
In addition to its ordinary business of factoring, leasing and financing to support businesses, in 2025 the Bank continued to assist SMEs - both customers and non-customers - by offering opportunities for products combined with public subsidies to support investments and working capital, such as financial leasing associated with the Nuova Sabatini facility, financial leasing assisted by the SME Guarantee Fund, financing assisted by the SME Guarantee Fund, factoring with recourse assisted by the SME Guarantee Fund and financing assisted by the SupportItalia SACE guarantee.
Finally, starting 2019, the Bank has launched a series of products and services that can improve the quality of life of customers and stakeholders. This approach takes the form of an innovative financial offer ranging from products dedicated to sustainable mobility to products dedicated to energy transition. The main initiatives implemented by the Ifis Group include:
•leasing products aimed at promoting sustainable mobility by offering hybrid and electric cars;
•e-bike rental dedicated to small hirers and tourism operators;
•leasing products related to the energy transition of SMEs, the leasing of photovoltaic systems and charging stations and columns;
•the conduct of regular analyses, in concert with the business structures, to identify additional customer financing opportunities to support the sustainable transition.
Alongside these, the Group has further strengthened its social commitment with a product designed to reduce the gap between Northern and Southern Italy in health and medical care. In particular, the Bank has set up a series of partnerships with leading medical equipment distributors that form the basis of a new leasing and rental product entirely dedicated to pharmacies, healthcare operators and medical centres in six Italian regions: Calabria,
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Campania, Apulia, Sardinia, Sicily and Molise. The service consists of diagnostics, prevention and treatment. The new tool reinforces the Group's commitment to supporting personal well-being and raising awareness of health and scientific research topics. To do so, the Bank has entered into partnerships that allow priority access to medical devices and has defined a subsidised price for the cost of leasing and renting per medical instrument.
In 2025, 'Valore Venezia' was launched, a distinctive product to enhance Banca Ifis's positioning in supporting the territory and the art world. Specifically, this product is aimed at companies belonging to specific sectors and categories active in the world of beauty, allowing them to access a flexible form of credit with subsidised pricing.
Understanding the interaction between capital, strategic pillars and the company's business model is essential to develop a sustainable value creation process over time. This requires the ability to intercept changes in the external environment, including the evolving needs of stakeholders, in order to respond effectively, generate value and strengthen the organisation's resilience.
Constant monitoring of market trends, with particular attention to the main macroeconomic, industrial and regulatory dynamics, as well as to the changing needs of stakeholders, allows us to manage risks and seize opportunities, maximising the value generated through the strategy adopted. Actively listening to stakeholders plays a crucial role in this process: understanding their expectations guides informed choices, improving product offerings and contributing to people's financial well-being and quality of life.
The Group's objective is to support customers and stakeholders in addressing social and environmental challenges, supporting their investments in a context of financial strength.
Interests and views of stakeholders
[SBM-2 DP 45ai,aiii,aiv,b]
Transparency and dialogue have always been the hallmarks of Banca Ifis's approach to communication with key stakeholder categories: employees, customers, investors, shareholders, local communities, agents, institutions, industry associations, media and suppliers. Through constant interaction with stakeholders, the Group is able to understand and respond to diverse needs.
This is pursued through a variety of tools and initiatives, such as customer focus through social networks, company websites, projects and events. In addition, the Group is committed to optimising its communication actions, with the aim of offering the best experience to its stakeholders and providing timely responses to questions and enquiries. These activities are aimed, on the one hand, at monitoring corporate reputation also through dedicated platforms and, on the other hand, at integrating any considerations arising from stakeholder involvement into the Group's strategy and activities.
One concrete example is the engagement of relevant internal and external stakeholders in the analysis of double materiality assessment through the assessment of the Bank's impacts, risks and opportunities. As detailed in the dedicated section (see 1.1 ESRS 2 - General Disclosures, section 1.1.4 Managing Impacts, Risks and Opportunities: Double materiality assessment), Banca Ifis has adopted a structured approach that includes the involvement of stakeholders, articulated in three phases, paying particular attention to those most closely connected to the business model and strategy through training sessions, interviews and dedicated focus groups, aimed at gathering feedback and considerations that are also useful from a strategic perspective. The process started with the active engagement of several strategic internal functions in order to conduct a thorough analysis of impacts, risks and opportunities. Subsequently, an external survey was conducted to collect feedback from external stakeholders, expanding and strengthening the internal evaluation. Finally, top management provided an overall strategic vision, consolidated the analyses and defined the final evaluations.
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[SBM-2 DP 45aiv,av]
The results of this assessment allowed for the definition of material issues for the Bank from both an impact and financial materiality perspective, both on its own operations and on the value chain.
[SBM-2 DP 45d]
The entire process and its results have been brought to the attention and approval of the Sustainability Committee and the Board of Directors in order to keep these bodies informed of the perspectives of the Group's stakeholders.
[SBM-2 DP 45aiii]
In a parallel fashion, the Parent Company's Communication, Marketing, Public Affairs & Sustainability Department manages and coordinates the dialogue and engagement of the stakeholders, through the most appropriate channels and methods, chosen from time to time on the basis of specific needs. Specifically, it is supported by the Parent Company's Investor Relations & Corporate Development function for the management of relations and dialogue activities with the financial market, particularly with shareholders and investors, according to the principles of fairness, transparency, collaboration and absolute respect for the independence of roles. In addition, with particular reference to customers, their involvement is effectively managed by the Marketing & Business Strategy Department.
[SBM-2 DP 45a,aii]
The different engagement activities that were developed with key stakeholders are outlined below:

Stakeholder category | Engagement activity
Employees | •corporate intranet with dedicated preparation and editorial plan;•initiatives to involve employees in events and activities linked to donations and sponsorships with the aim of involving them in the areas of value for the Bank and themselves;•deployment of sports activities: promotion and brokering of registrations for inter-bank sports events;•Good Morning Ifis and Good Evening Ifis: sending press reviews of daily information;•internal newsletters;•the Linkedin Ambassador Project;•the organisation of internal contests on the company intranet, held on the occasion of sponsorships/international days/internal initiatives.
Customers | •surveys aimed at collecting feedback on study and research activities as well as on customer platforms (myIfis);•events related to innovation, change and the relationship, also connected with the presentation of the results of analyses conducted by the Research Department;•social channels in which the timeliness of response is assured in every channel;•customer care web and social;•involvement of stakeholders and companies in the reporting of trend dynamics in observatories and market watches;•“The voice of our experts” column.
Shareholders, investors and analysts | •road shows and conferences in Italy and Europe, conference calls with the management;

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Stakeholder category | Engagement activity
| •events dedicated to networking of listed companies and the market;•quarterly financial reports and annual financial statements;•financial highlights on social networks;•press releases;•dedicated meetings with investors and analysts.
Agents | •events and conventions.
Institutions and regulators | •meetings with representatives of the institutions;•participation in working parties and committees.
Industry associations | •institutional meetings;•group representatives on the association bodies.
Media | •events (e.g. press conferences);•dedicated meetings;•press releases.
Community | •support for social projects or interventions;•local initiative partnerships;•meetings and events on the territory;•collaborations with the academic world.
Suppliers | •institutional website with dedicated area for information on invoicing and Code of Ethics;•meetings scheduled as necessary and according to the type of supply.

The stakeholder engagement methods described allow for the collection and evaluation of stakeholders' interests, opinions and rights with the aim of integrating them, where possible, into the corporate strategy and model. In particular:
[S1.SBM-2 DP 12]
•with regard to its employees, the Group has integrated considerations of diversity and inclusion, workers' rights and well-being into its strategy;
[S2.SBM-2 DP 9]
•with regard to workers in the value chain, in particular suppliers 12, the Bank provides specific safeguards, in order to gather relevant information on its partners (e.g. DURC - the consolidated document attesting to compliance with the payment of social security and welfare contributions) and also started a process in early 2025 to collect information on the sustainability profile of the most relevant suppliers;
12 Please note that the term 'suppliers' refers to suppliers subject to the expenditure cycle.
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[S3.SBM-2 DP 7]
•with reference to local communities, the Group develops partnerships and collaborations with third-sector entities and non-profit organisations to support the communities, people and territories in which the Group operates through Kaleidos, the Bank's Social Impact Lab created in 2022 at the instigation of the Chairmanship;
[S4.SBM-2 DP 8]
•with reference to end consumers, the Group has created dedicated products and services to support the sustainable transition of SME customers and has launched a project aimed at promoting the financial re-inclusion of Npl debtor customers, through sustainable ethical management of debt collection and support to individuals in difficulty.
[SBM-2 DP 45a]
With specific reference to the illimity Group, the main stakeholder categories have been similarly identified: governance bodies (illimity Board of Directors, Parent Company Sustainability Committee), customers, shareholders, investors (e.g. bondholders) and analysts, suppliers and partners, communities (industry associations, academia, etc.), employees and collaborators, and other stakeholder categories such as regulators and NGOs/research institutes.
The illimity Group has engaged in involving stakeholders through various methods and frequencies, depending on the activity and the purpose of the engagement. Specifically, for the purposes of the materiality assessment for FY 2025, only some specific categories of stakeholders, i.e. only employees and suppliers, were directly involved and expressed their assessment of relevance to sustainability issues, while the assessment of financial materiality was expressed by the illimity Group's internal structures.
[SBM-2 DP 45ci]
In the context of the gradual integration of the illimity Group into the Banca Ifis Group, the aim is to enhance the Group's assets, generate synergies and build a modern, inclusive and open corporate culture. The strategic review of the activities of illimity and its subsidiaries is already underway and the integration of the two highly complementary entities offers a significant opportunity for both industrial and financial growth.
In this context, Banca Ifis has initiated a detailed integration plan that includes:
•the definition of a new organisational set-up and business structure, and the evaluation of technology platforms;
•the qualitative and quantitative assessment of the illimity Group's personnel at all levels to meet the needs of the new combined entity;
•the alignment of balance sheet policies with Banca Ifis standards;
•monitoring of operations with the aim of increasing efficiency, ensuring business continuity and high service levels;
•the introduction of cross-selling initiatives to increase revenues from their respective customers.
This process aims to strengthen the Group's competitive position, offer solid remuneration to shareholders and generate value for all stakeholders, making a decisive contribution to supporting the Italian real economy, through credit of increasing quality.
1.1.3 Governance
Banca Ifis adopts the traditional administration & control model, considering it, at present, to be the most suited for ensuring the efficiency of operations and effectiveness of controls given its specific characteristics.
Under the model adopted by Banca Ifis:
•strategic supervision is performed by the Board of Directors;
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•the CEO is responsible for the company's operations. The Chief Executive Officer implements the resolutions passed by the Board of Directors, with the assistance of the Co-General Managers identified as the Chief Commercial Officer (CCO) and Chief Operating Officer (COO);
•control is performed by the Board of Statutory Auditors.
Pursuant to the Articles of Association, the Board of Directors has set up three board committees, which, with proposal, investigation and advisory functions, enable the body with strategic supervisory functions to take its decisions in a more informed manner: the Control and Risk Committee; the Appointments Committee; and the Remuneration Committee.
In addition, the Endoconsulting Scenarios and Sustainability Committee was set up in 2025, which is responsible for investigative, propositional and advisory functions in evaluating and deciding on sustainability issues in all their variations related to the operations of the Bank and the Group.
The composition, functioning and responsibilities of the board Committees are governed in the General Regulations and the Regulations of the Board of Directors and the Board Committees.
The Group publishes on its website information on the members of the administrative, management and supervisory bodies, indicating the roles and responsibilities assigned to each. For each member of a corporate body of Banca Ifis, a summary curriculum vitae is publicly available, while the full version, which also includes specific competencies, is contained within the set of documents provided to shareholders when submitting lists for the election of corporate bodies. These documents are always accessible among the material relating to the Shareholders' Meeting that appointed each representative.
The Bank operates in compliance with industry regulations and voluntarily adheres to Borsa Italiana's Corporate Governance Code, providing a broad set of information, both through the pages of its website and in the Report on Corporate Governance and Ownership Structure, approved annually by the Board of Directors and available on the corporate website.
The Report also includes details on the composition and diversity of corporate bodies, the annual self-assessment process to which they are subjected, and the annual training plans prepared for corporate officers.
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Role of the administrative, management and supervisory bodies
[GOV-1 DP 21a,d,e]

Members of the administrative, management and supervisory bodies | UoM | 2025 (1) | 2024
Number of executive members | No. | 1 | 1
Number of non-executive members | No. | 16 | 15

(1)The reported figures of 17 members correspond to 14 members of the Board of Directors and 3 members of the Board of Statutory Auditors.

Members of the Board of Directors | UoM | 2025 | 2024
Board of Directors' gender diversity ratio (1) | % | 50 | 54
Percentage of independent Board members (2) | % | 57 | 77

(1) The ratio is calculated by dividing the number of female members of the Board of Directors by the total number of members. It should be noted that the Board of Statutory Auditors by its very nature does not perform executive or management functions, but only control activities.
(2) The percentage represents independent, non-executive members of the Board. This ratio is calculated by dividing the number of independent board members (8) by the total number of board members (14).
The composition of Banca Ifis's Board of Directors takes into account several factors, including the age and gender balance of its members, reflecting the core values underlying the Group's operations.
Specifically, with reference to the collective composition of the administrative body at the date of approval of this document:
•Adequate gender diversity is recorded, with 50% female board members and an average female-to-male ratio of 1,0;
•29% of board members are under 50 years old, 64% of board members are between 50 and 65 years old and 7% are over 65 years old.
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Board of Directors

Office | Members | Date of first appointment (1) | In office
from | to
Chair | Ernesto Fürstenberg Fassio | 2019 | 17/04/2025 | Approval of the 2027 financial statements
Chief Executive Officer | Frederik Herman Geertman | 2021 | 17/04/2025 | Approval of the 2027 financial statements
Director Vice Chairman | Rosalba Benedetto | 2025 | 17/04/2025 | Approval of the 2027 financial statements
Independent Director | Nicola Borri | 2024 | 17/04/2025 | Approval of the 2027 financial statements
Independent Director | Moroello Diaz della Vittoria Pallavicini | 2025 | 02/12/2025 | Approval of the 2027 financial statements
Independent Director | Chiara Paolino | 2025 | 17/04/2025 | Approval of the 2027 financial statements
Independent Director | Roberta Gobbi | 2022 | 17/04/2025 | Approval of the 2027 financial statements
Independent Director (LID) | Simona Arduini | 2019 | 17/04/2025 | Approval of the 2027 financial statements
Independent Director | Monica Billio | 2019 | 17/04/2025 | Approval of the 2027 financial statements
Director | Antonella Malinconico | 2016 | 17/04/2025 | Approval of the 2027 financial statements
Independent Director | Roberto Diacetti | 2019 | 17/04/2025 | Approval of the 2027 financial statements
Independent Director | Beatrice Colleoni | 2019 | 17/04/2025 | Approval of the 2027 financial statements
Director | Riccardo Preve | 2005 | 03/12/2025 | Approval of the 2027 financial statements
Director | Luca Lo Giudice | 2019 | 17/04/2025 | Approval of the 2027 financial statements

(1)This means the date the director was first appointed (ever) to the Board.
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Board of Auditors

Office | Members | Date of first appointment (1) | In office
from | to
Chair | Andrea Balelli | 2022 | 17/04/2025 | Approval of the 2027 financial statements
Standing Auditor | Franco Olivetti | 2019 | 17/04/2025 | Approval of the 2027 financial statements
Standing Auditor | Annunziata Melaccio | 2022 | 17/04/2025 | Approval of the 2027 financial statements
Alternate Auditor | Marinella Monterumisi | 2019 | 17/04/2025 | Approval of the 2027 financial statements
Alternate Auditor | Emanuela Rollino | 2022 | 17/04/2025 | Approval of the 2027 financial statements

(1)This means the date the Chairman/Auditor was first appointed (ever) to the Board of Statutory Auditors.
[GOV-1 DP 21b]
There is no representation of employees 13 or other employees in the administration, management and supervisory bodies 14. Industry regulations, applicable to banks, require that, at the application stage, the exponent provide information on his professionalism and competence in order to be subjected to the “Fit&Proper” process prior to taking office. In order to be considered eligible, the exponent must have exercised, for at least three years, specific activities (i.e. administration, control, management tasks, university teaching as a first or second level lecturer) in the credit, financial, securities or insurance sector or in sectors/matters in any event functional and/or related to such sectors.
[GOV-1 DP 21c]
To foster adequate suitability of the administrative body, the Board of Directors, as provided for by the applicable industry regulations, provides the Shareholders with detailed indications on the optimal qualitative and quantitative composition. The aim is to ensure the presence of members with wide-ranging and consolidated expertise within the administrative body; the same activities are also carried out by the Board of Statutory Auditors.
13 “Employee” means a natural person who, in accordance with national law or practice, has an employment relationship with the enterprise.
14 “Workers' representatives” means: trade union representatives, designated or elected by trade unions in accordance with national laws and practices, and representatives freely elected by workers, independent of the employer's control and in compliance with national regulations or collective agreements. These representatives do not carry out activities reserved for trade unions or compromise their position. It should be noted, in any case, that Rosalba Benedetto, a Group employee, is a member of the Parent Company's Board of Directors.
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Expertise of the Administrative Body

Areas of expertise | Directors possessing the relevant professionalism/competence
2025
Financial markets | 64%
Regulation in the banking and finance industry | 64%
Strategic planning and guidelines | 100%
Organisational and corporate governance structures | 79%
Risk management | 71%
Internal control systems and other operating mechanisms | 71%
Banking and financial activities and products | 71%
Accounting and financial reporting | 71%
Information technology | 36%

In addition to what is represented in the table above, the current board of directors also has the following and additional skills, professionalism and experience in the following areas with respect to the external reference regulations: knowledge and expertise in the areas of ESG issues of human capital management and development, diversity & inclusion management, ethics and corporate social responsibility, sustainable development and combating climate change, ESG and sustainable finance, procurement & supply chain management, and ESG regulations and standards.
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Expertise of the Supervisory Body
The controlling body is also obliged, in compliance with the applicable sector regulations, to provide shareholders with information on its composition, both quantitative and qualitative, which it considers optimal.

Areas of expertise | Directors possessing the relevant professionalism/competence
2025
Financial markets | 80%
Regulation in the banking and finance industry | 80%
Strategic planning and guidelines | 80%
Organisational and corporate governance structures | 100%
Risk management | 80%
Internal control systems and other operating mechanisms | 100%
Banking and financial activities and products | 80%
Accounting and financial reporting | 100%
Information technology | 40%

In addition to what is shown in the table above, the current auditing body has additional skills, professionalism and experience in specific areas that go beyond what is required by the relevant external regulations. These include, among others, specific knowledge of Banca Ifis, knowledge of remuneration policies, ESG (social and environmental sustainability) skills.
Governance Structure in Sustainability
[GOV-1 DP 22a]
The parent company adopts a governance structure in the area of sustainability based on a 'decentralised' model. The Communication, Marketing, Public Affairs & Sustainability Department, at the instigation of the Chair, the Board of Directors and the Sustainability Committee, coordinates and manages activities in the field of sustainability in cooperation with the other departments involved, each within its specific competence.
In particular:
•Chairman of the Board of Directors: promotes the culture of corporate social responsibility and the ethical and sustainable development of the Bank and the Group in the long term and presides over the implementation of social, philanthropic, charitable and cultural initiatives of the Bank and the Group;
•Honorary Chairman: upholds the Group's founding values, taking into account the characteristics of the Group and the family nature of the Bank's long-term controlling shareholder (on, for example, culture and social responsibility, sustainable and digital development, innovation);
•Vice Chairman: supports the Bank in the development of projects in the area of sustainability in all its forms and in the other areas of competence, identifying rules and principles, and coordinating with the Chairman for all communications concerning the Board of Directors, where these are presented as communications by the Vice Chairman;
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•Board of Directors: is responsible for the strategic supervision of the Bank and has the task of setting strategic guidelines and constantly monitoring their implementation with a view to proper and prudent management. When developing strategies for the entire Group, the Board takes sustainability goals into account and integrates ESG factors into business decisions;
•Scenarios and Sustainability Committee: board committee tasked with supporting, with investigative, propositional and advisory functions, assessments and decisions relating to sustainability matters related to the exercise of business activity and its dynamics of interaction with all stakeholders, corporate social responsibility, the examination of scenarios for the preparation of the business plan also on the basis of the analysis of issues relevant to the generation of value in the long term and, more generally, the sustainability governance of the Bank and the Group.
•Sustainability Committee: supports the Board of Directors in defining and assessing guidelines in the field of sustainability, ensuring the oversight of initiatives and actions with an environmental, social or governance impact, as well as the assessment, management and mitigation of sustainability-related risks to which the Group is exposed;
•Communication, Marketing, Public Affairs & Sustainability Department: is responsible for managing ESG activities, both within the Parent Company and in its subsidiaries. Management coordinates the functions that are involved in these activities. Within the Brand, Corporate Communication and Sustainability Operating Unit, the figure of the Sustainability Manager has been created to coordinate the implementation of the activities envisaged by the Group's sustainability strategy.
[GOV-1 DP 23,b]
The Board of Directors annually resolves on a training plan to supplement any areas and subjects to be implemented, and each body (Board of Directors, board Committees, Board of Auditors, Supervisory Board) has a budget that can be activated autonomously. The plans are prepared taking into account the results of the self-assessment on the functioning of the Body itself in order to foster the continuous updating and development of the skills necessary to perform the role and functions of the Body.
As mentioned above, the training courses provided to corporate officers, and therefore also the skills acquired by them, are always contextualised in the specific scenario of the Bank and Group companies. In particular, in addition to competences relevant to banking and the financial sector, significant competences are also expected in relation to impacts, risks and opportunities relevant to the company. From a methodological viewpoint, in fact, the courses are generally constructed with a training part delivered by prestigious external lecturers, to provide the general contextual framework, and a second part conducted by internal lecturers, with specific cases of analysis relevant to the reality of the Bank and the Group.
[GOV-1 DP 23a]
As far as sustainability matters are concerned, there is a well-established competence in this area in both the board of directors and the supervisory board.
In addition to the areas of competence declared by each director at the application stage, further competences were identified through the annual self-assessment process, which have been acquired in the meantime, also thanks to the annual training provided to Board members.
The self-assessment for the first year of the mandate showed that skills, professionalism, knowledge and experience in the following areas were adequately represented on the Board of Directors: information technology; digitalisation, innovation and cybersecurity; ESG; and managerial skills.
As part of the first year's self-assessment, an in-depth analysis of ESG competencies was also conducted, in line with the previous self-assessment. The following are the conclusions drawn by the directors, the result of their reflection on their individual expertise in this specific area.
In support of this growth process, specific training sessions were held in 2025 for members of corporate bodies, focusing on the topics:
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•ESG and sustainability risks;
•ESG and banking/Social Banking: which areas have the greatest impact.

Level of ESG competencies emerging from the self-assessment | UoM | Excellent | Good | Fair
Human capital management and development | % | 67 | 25 | 8
Diversity & Inclusion management | % | 67 | 33 | 0
Ethics and corporate social responsibility | % | 92 | 8 | 0
Sustainable development and fight against climate change | % | 58 | 42 | 1
ESG and sustainable finance | % | 67 | 33 | 0
Procurement and supply chain management | % | 75 | 25 | 1
ESG regulation and standards | % | 75 | 25 | 0

In addition, in order to continuously implement, deepen and update these skills, sustainability topics have been covered in training meetings over the past three years.
[GOV-1 DP 22b]
In a parallel fashion, with the aim of creating sustainable value for all stakeholders, the parent company has integrated ESG considerations into its banking processes by involving all functional competencies of the company and promoting an ongoing commitment to ESG matters.
The integration of sustainability into banking processes makes it possible to support companies in their sustainable transition process, to strengthen the trust of investors, markets and all stakeholders, and to improve corporate reputation by counteracting activities and practices deemed incompatible with the Group's principles and effectively managing ESG risks. In this context, the parent company seeks to foster sustainable economic development by giving preference, in its financing decisions, to companies that adopt ethical behaviour and are distinguished by environmentally friendly production methods, the assurance of inclusive working conditions that respect human rights, and the observance of the best standards of corporate governance.
The ESG Policy defines the guidelines that the Banca Ifis Group applies with regard to sustainability, consistent with the principles set out in the Group's Code of Ethics and its values. The responsibilities of each body are defined in the corporate mission and related policies. Updates to the internal regulations attributable to the ESG sphere, including the General Regulations and the Regulations of the Board of Directors and Board Committees to describe these responsibilities more comprehensively, were approved in the competent places. In addition, article 12, letter g) of the Articles of Association assigns the Chairman the task of “promoting the culture of corporate social responsibility and the ethical and sustainable development of the Bank and the Group in the long term and overseeing the implementation of the Bank's and the Group's social, philanthropic, welfare and cultural initiatives in compliance with the regulations, including internal ones, in force from time to time and the appreciation of the artistic heritage”.
The different company departments are in charge of progressively integrating sustainability considerations into the different business processes.
The function of strategic supervision of sustainability issues is performed by the Board of Directors, which is called upon, amongst others, to deliberate on the Bank's strategic guidelines and to verify their implementation, ensuring the sound and prudent management of Banca Ifis on an ongoing basis with the aim of creating sustainable and
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lasting value. In this context, the Board takes into account the objectives of sustainable finance and, in particular, the need to integrate environmental, social and governance (ESG) factors, including climate change issues, into business decision-making processes and strategies for the entire Group. It is also responsible for the approval, on an annual basis, of the Risk Appetite Framework (hereinafter also 'RAF'), the ICAAP Report and the ILAAP Report, drawn up on the basis of the strategic indications provided by the Board. The BoD defines the organisational set-up and supervises its implementation through quarterly monitoring of the results in the quarterly financial reports and the annual financial statements.
[GOV-1 DP 22c]
The Board of Directors is regularly updated on the Group's objectives and results in the area of sustainability. More specifically, during the meeting of last 4 December, the Sustainability Committee approved the results of the double materiality assessment preparatory to the 2025 Consolidated Sustainability Statement, which were then approved by the Board of Directors. In addition, as for last year, the Board of Directors annually approves the Sustainability Statement, which is included in the Directors’ Report within the Consolidated Financial Statements.
[GOV-1 DP 22ci]
The Sustainability Committee, which operates for the entire Group, was established from among the Parent Company's Management Committees. It is a collegial body of deliberative, propositional and consultative nature with portfolio. The Committee reports to the Parent Company Board of Directors on its activities at least once every six months. During 2025, 21 meetings of the Board of Directors of Banca Ifis were held.
[GOV-1 DP 22cii]
The Communication, Marketing, Public Affairs & Sustainability Department together with the Finance Department inform the Sustainability Committee about the management, monitoring and control of material risks, impacts and opportunities and the results of the double materiality assessment at least once a year.
[GOV-1 DP 22ciii]
With regard to the management of material aspects in the area of sustainability, each responsible function within the Group performs first-level controls in the context of the double materiality assessment process. These controls, carried out by the competent managers, may subsequently be subject to second-level verification by the Financial & Sustainability Reporting Monitoring & Control function, in accordance with the methods and tools defined in the internal regulations, in particular the Policy for the Management of Incorrect Financial Reporting and Sustainability Risk.
The Board of Directors, within the scope of its competences, oversees the governance of the risks to which the Bank is exposed, identifying in a timely manner their sources, possible developments and the necessary safeguards provided for by the internal control system, including those related to the Consolidated Sustainability Statement.
[GOV-1 DP 22d]
At the strategic level, the decision-making bodies, in cooperation with the relevant functions, identify the objectives to be implemented in the area of sustainability and ensure their consistency with the corporate mission, promoting transparent reporting in the Group's various reports, including, for example, the Group Transition Plan. The Board of Directors also completed the adoption of the entire set of regulations necessary to govern the process, using internal tools to guide and orient the company's operations in line with sustainability principles.
[G1.GOV-1 DP 5b]
In addition to specific technical expertise in the field of sustainability, the Banca Ifis Group's governing bodies have consolidated experience in responsible business conduct, which is crucial for the effective implementation of their functions.
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The members of the management and supervisory bodies must in fact undergo a rigorous process of evaluation of the requirements provided for by the specific industry regulations.
The Board of Directors appoints one of its members (including, if necessary, the Chief Executive Officer) as the person responsible for Group anti-money laundering, without prejudice to the collective responsibility of the corporate bodies for the prevention of money laundering and terrorist financing.
[G1.GOV-1 DP 5a]
In addition, at the proposal of the Chief Executive Officer and with the involvement of the Chair, the Board approves, verifies and ensures the proper dissemination and implementation of corporate values through the Code of Ethics. Corporate bodies and employees are required to respect and comply with the provisions of the Code. The Chairman of the Board of Directors actively promotes a culture of corporate social responsibility and the ethical and sustainable development of the Bank and the Group over the long term, also overseeing social, philanthropic, charitable and cultural initiatives. With reference to the Code of Ethics, the Supervisory Body reports to the Board of Directors on the monitoring of the application of the document and any problems related to its implementation.
Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies
[GOV-2 DP 26a]
As mentioned above, the results of the double materiality assessment are brought to the attention of the Sustainability Committee and the Board of Directors, who review and approve them at least once a year 15. Banca Ifis also undertakes to keep the Board of Directors and the Sustainability Committee informed of the effectiveness of the policies adopted, the actions taken, the metrics analysed and the targets set, as well as the duty of due diligence. This approach allows for effective management and supervision of these issues at the Bank level.
[GOV-2 DP 26c]
Therefore, these bodies have been informed of the entire list of material impacts, risks and opportunities, as set out in the "double materiality assessment" section (see 1.1 ESRS 2 - General Disclosures, Section 1.1.4 Management of Impacts, Risks and Opportunities: Double materiality assessment).
These impacts, risks and opportunities are integrated into the company's sustainability strategy, orienting policies, actions and objectives on the various ESG topics. In this context, the policies and targets set are also brought to the attention of the Committee and the Board.
[GOV-2 DP 26b]
When defining the Group's strategies, the Board of Directors takes sustainability objectives into account by integrating ESG factors into business decisions.
Through the Sustainability Committee, which supports the Board in defining and evaluating sustainable guidelines, the oversight of initiatives and actions with ESG impacts is ensured, as well as the assessment, management and mitigation of sustainability, climate and environmental, social and governance material risks. In addition to the results of the double materiality assessment, the Committee also considers regulatory developments in order to define ESG strategies and objectives, with the aim of mitigating negative risks and impacts and enhancing positive opportunities and impacts.
15 During 2025, the boards of directors, management and auditors did not consider any trade-offs concerning the relevant impacts, risks and opportunities in relation to their business strategy.
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Integration of sustainability-related performance in incentive schemes
Parent company Banca Ifis
[GOV-3 DP 29,a,b]
The Remuneration Policy, defined annually by the Parent Company, is defined with the aim of aligning the conduct of management and staff with the interests of all stakeholders, guiding their action towards the achievement of sustainable medium to long-term objectives - including sustainable finance objectives that take into account, amongst others, environmental, social and governance factors, within the framework of prudent current and prospective risk-taking.
For the year 2025, Banca Ifis, in continuity with the previous year, promoted through its incentive systems the adoption of ESG KPIs at all levels of the corporate organisation, considering all three main areas of intervention, Environmental, Social and Governance. With specific reference to the Npl business, specific KPIs have been identified in the area of Social Banking, which will complement those of the Bank, confirming the focus on the needs of people with an ethical and sustainable collection model for the Npl business, with a view to financial re-inclusion.
Banca Ifis’s Remuneration Policy includes a Short Term Incentive Plan (STI), is drawn up annually, the recognition of which is conditional on the opening of specific access gates and the achievement of qualitative and quantitative performance targets assigned to the beneficiaries.
As in 2024, ESG KPIs are planned for 2025 for all variable beneficiaries within the corporate organisation, confirming the Bank's commitment to the path towards sustainable development.
The sustainability goals also meet the principle of 'gender neutrality'. Remuneration policies are, in fact, gender-neutral and contribute to the pursuit of complete equality in the economic and regulatory treatment of staff. They promote an equal level of remuneration for staff, including in terms of the conditions for its recognition and payment, for equal work.
[GOV-3 DP 29c]
In this context, the Parent Company’s Remuneration Policy is also geared towards creating sustainable value over time for all stakeholders and the eco-system in which the Group operates. The Sustainability Committee supports the important path taken by the Bank in integrating ESG criteria into its mission and business model, with a clear vision: sustainability, in all its forms, represents a lever for creating value and a fundamental driver of development, which pays attention to the impacts on people, the environment and the community.
For FY 2025, the Bank promoted through its short-term incentive system the extension of ESG Key Performance Indicators (KPIs) to all levels of responsibility in the corporate organisation, considering all three main areas of intervention.
[GOV-3 DP 29a]
More specifically, Banca Ifis's short-term incentive system emphasises the importance of responsible and sustainable management of business activities. For key personnel, including the CCO, COO and CEO, performance indicators consider commitment to decarbonisation and reduction of direct environmental impacts, maintenance of gender equity, promotion of ESG training, enrichment of the product portfolio with at least one new product/service in the ESG area, and maintenance/improvement of ESG ratings.
With specific reference to the Npl business, specific KPIs have been identified in the area of sustainable recovery, which continues on from the previous year, with more challenging targets and that flank those of the Parent Company, confirming the focus on the needs of people with an ethical and sustainable collection model for the Npl business, with a view to financial re-inclusion. These KPIs, related to the Npl segment, also apply to the Chief Executive Officer and the COO.
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For personnel who are not beneficiaries of the short-term incentive scheme (STI), but who are beneficiaries of the variable performance bonus (ISR), a specific KPI related to the utilisation of ESG training is foreseen.
Finally, the involvement of the Sustainability Committee in defining remuneration and incentive policies reflects the Group's desire to direct its strategies on sustainability risks, in accordance with current regulations.
[GOV-3 DP 29e]
The Bank's remuneration and incentive policies described in the Remuneration and Remuneration Report provide for the commitment of ESG KPIs within the framework of Management by Objectives (MBO) and, if present, also within the framework of long-term plans.
For the short-term incentive scheme, the objectives are also detailed in the Implementing Regulation ("Regulation on Short-Term Incentive Schemes"), which falls within the remit of the Board of Directors. This includes the staff performance appraisal forms and a more detailed description of the incentive systems of the other categories of staff divided into homogeneous clusters, including salespeople.
The performance scorecard includes a predefined number of quantitative and qualitative indicators, each of which is given a weight in percentage terms on the total of at least 10% to ensure the significance of the objective and no more than 30% to maintain an adequate weighting of the multiple objectives.
Variable remuneration accrues according to a performance curve on target achievement levels. The result obtained from each KPI determines a weighted score, on a recognition curve varying between a minimum and a maximum achievable. The sum of the weighted scores obtained corresponds to the performance achieved in proportion to which, only if it is at least equal to a predetermined minimum score, is the amount of the incentive quantified; the latter may in any case not exceed a predetermined maximum level.
As part of the at least annual review of policies, the Board of Directors analyses, with the support of the Remuneration Committee, the gender neutrality of remuneration policies and any gender pay gap and its evolution over time.
When implementing the annual bonus system, where appropriate, the Human Resources Department focuses its attention on the gender pay gap by implementing the most significant improvement measures in favour of the less represented gender, in order to reduce the gap.
The Bank's incentive systems, both short-term and long-term, are usually prepared as part of the Parent Company's annual remuneration and incentive policies and then described in the Report on Remuneration Policy and Remuneration Paid. The Policy is submitted to the Remuneration Committee for evaluation, to the Sustainability Committee as far as it is concerned, and to the Board of Directors for resolution to submit it to the Shareholders' Meeting. Short-term and, if present, long-term implementation regulations are prepared following the shareholders' meeting resolution. It is specified that no long-term plans are envisaged in 2025.
[GOV-3 DP 29c]
In particular, for FY 2025, sustainable finance targets that take ESG factors into account have been confirmed within the short-term incentive schemes; some of these targets have been extended to the remaining corporate population not benefiting from the short-term incentive scheme (STI) but receiving the performance bonus (ISR).
The objectives assigned to the Chief Executive Officer for 2025 represent a combination of quantitative and qualitative criteria, referring to Banca Ifis's results, as well as qualitative aspects relating to strategic action. The performance scorecard includes the declination of the following KPIs:
•Economic-financial KPIs with a weight of 65%, structured over three specific drivers (profitability, credit cost and efficiency), consistent with the Parent Company's 2025 objectives;
•KPI of strategy and sustainability with a weight of 35%, which aim to assess the achievement of strategic directives, as well as the achievement of corporate objectives in the ESG area.
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The short-term variable remuneration cap payable to the CEO is set at 60% of fixed remuneration; variable remuneration will accrue on the basis of the degree of achievement of objectives, with variable remuneration being paid on a linear progression between 60% and 100% of the target bonuses.
[GOV-3 DP 29d]
The percentage of variable remuneration linked to the achievement of sustainability-related targets and impacts is, on average, 15%: within the short-term incentive scheme (STI), the overall weight of ESG KPIs varies between 10% and 20%, depending on the role held. Specifically, 20% is allocated to senior roles in the Npl business, 15% to Identified Staff (excluding Npl), while for all other beneficiaries the expected weight is 10%16. The performance appraisal system (Performup), which governs the Variable Result Bonus (ISR), also includes a KPI related to sustainability, with a weight of 10%.
[GOV-3 DP 29c]
Also for 2025, the provision of a Variable Result Bonus anchored to ESG topics. The agreement signed confirms the approach of the previous year, also thanks to a more than positive return from employees as it encourages their greater involvement in achieving the company's objectives and thus increasing Banca Ifis’s profitability, productivity, competitiveness and efficiency.
In continuity with last year, therefore, again in 2025 the Agreement provides for an additional form of incentive of up to 20% on top of the actual basic bonus, with the aim of rewarding distinctive conduct in terms of fairness, transparency, ethics, collaboration among employees and quality of work, as well as a different, more favourable structure of the employee welfare plan
[E1.GOV-3 DP 13]
[ESRS 2 MDR-M DP 75]
The members of the Board of Directors, in line with current remuneration policies, receive fixed remuneration only. As mentioned above, the part of variable remuneration for senior figures, linked to the achievement of sustainability-related targets and impacts amounts to 15% on average. The objectives assigned to the Chief Executive Officer combine quantitative and qualitative criteria including ESG topics. For the Chief Executive Officer and top management, the Parent Company's ESG KPIs include a specific indicator linked to the decarbonisation targets of the financing portfolio, in line with the Bank's communicated commitment in this regard.
[GOV-3 DP 29]
Similarly, the illimity Group also has incentive schemes related to sustainability issues, intended for the governing body, management and beneficiary employees and governed by internal regulations and documentation published on the illimity Bank website.
The main variable remuneration mechanisms available to illimity Bank are:
•the annual incentive scheme (Management by Objectives - MBO), aimed at persons entitled to receive a variable component of remuneration linked to the fulfilment of specific conditions (set forth in the Annual Variable Incentive Plan Regulation - MBO 2025) and the performance objectives associated with each employee, in order to encourage and recognise the adoption of behaviour consistent with the illimity Group's long-term planning;
•the Long-Term Incentive Plan (LTIP), aimed at recipients of ordinary shares upon achievement of specific objectives and conditions (set forth in the Regulations of the 2021-2025 Long-Term Incentive Plan), in order to enhance the actual contributions made by the beneficiaries in line with the objectives of the 2021-2025 Strategic Plan of the illimity Group.
16 For more details, refer to the 2025 Report on the Remuneration Policy and Remuneration Paid.
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Statement on due diligence
[GOV-4 DP 30-32]
Banca Ifis integrates the duty of care into its business processes and strategies, as better described in the references below.

Core elements of due diligence | Sections in the Consolidated Sustainability Statement
a) Embedding due diligence in governance, strategy and business model | 1.1.3 Governance – ESRS 2 GOV-2 1.1.3 Governance – ESRS 2 GOV-3 1.1.4 Impact, risk and opportunity management: Double materiality assessment; 2.2.2 Energy, climate change adaptation and mitigation (Material impacts, risks and opportunities); 3.1 S1 - Own workforce (Material impacts, risks and opportunities); 3.2 S2 - Workers in the value chain (Material impacts, risks and opportunities); 3.3 S3 - Affected communities (Material impacts, risks and opportunities); 3.4 S4 - Consumers and end-users (Material impacts, risks and opportunities) - ESRS 2 SBM-3 2.2.1 Transition Plan - ESRS E1-1 2.2.2 Energy, Adaptation and Mitigation of Climate Change (The Group's Approach and Policies) - ESRS E1-2 3.1.1 Health and safety; 3.1.2 Work-life balance; 3.1.3 Training and skills development; 3.1.4 Equal treatment and opportunities for all; 3.1.5 Working conditions; 3.1.6 Other work-related rights (privacy) (The Group's approach and policies) - ESRS S1-1 3.2.1 Worker-related rights in the value chain (Approach and reference policies) - ESRS S2-1 3.4.1 Digitalisation and access to (quality) information; 3.4.2 Privacy; 3.4.3 Access to products and services; 3.4.4 Responsible marketing practices (Approach and reference policies) - ESRS S4-1
b) Engaging with affected stakeholders in all key steps of the due diligence | 1.1.2 Strategy - ESRS 2 SBM-2 3.1.7 Engagement processes - ESRS S1-2 3.4.5 Engagement Processes - ESRS S4-2
c) Identifying and assessing adverse impacts | 1.1.4 Impact, risk and opportunity management: Double materiality assessment - ESRS IRO-1
d) Taking actions to address those adverse impacts | 2.2.2 Energy, Adaptation and Mitigation of Climate Change (The Actions) - ESRS E1-3 3.1.1 Health and safety; 3.1.4 Equal treatment and opportunities for all; 3.1.5 Working conditions; 3.1.6 Other work-related rights (privacy) (Actions) - ESRS S1-4 3.2.1 Worker-related rights in the value chain (Actions) - ESRS S2-4 3.4.1 Digitalisation and access to (quality) information; 3.4.2 Privacy; 3.4.3 Access to products and services; 3.4.4 Responsible marketing practices (Actions) - ESRS S4-4
e) Tracking the effectiveness of these efforts and communicating | 2.2.3 Targets - ESRS E1-4 2.2.4 Metrics - ESRS E1-5 and ESRS E1-6 3.1.8 Channels - ESRS S1-3

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Core elements of due diligence | Sections in the Consolidated Sustainability Statement
| 3.1.9 Targets - ESRS S1-5 3.1.10 Metrics – ESRS S1-6, ESRS S1-7, ESRS S1-8, ESRS S1-9, ESRS S1-10, ESRS S1-12, ESRS S1-14, ESRS S1-16 e ESRS S1-17 3.2.2 Channels - ESRS S2-3 3.2.3 Targets - ESRS S2-5 3.4.6 Channels - ESRS S4-3 3.4.7 Targets - ESRS S4-5

Risk management and internal controls over the Sustainability Statement
[GOV-5 DP 36a]
The Banca Ifis Group's internal control system consists of rules, procedures and organisational structures aimed at ensuring, among other things, adherence to the business strategies, the effectiveness and efficiency of processes, and compliance of operations with the law, supervisory regulations, and the policies, procedures and codes of conduct adopted by the Group. The ESG internal control system was developed to meet the specificities of the Consolidated Sustainability Statement, following a similar approach to that adopted for financial reporting. This system is based on a Group methodological framework, focussed on criteria of consistency and reliability, which consists of the following main aspects:
•use of a coherent, centrally developed internal control system model, based on internationally recognised methodological standards, such as the “Co.So. Framework ICSR”;
•updating and dissemination within the Group according to centrally established parameters.
The pillars of this model, applied to sustainability reporting, include:
•Company Level Controls: represent the structural elements of the control system, with particular reference to the alignment of governance policies with ESG topics;
•Process Controls: relate to the description of the organisational model, including roles, processes and controls functional to the quality of the Consolidated Sustainability Statement. They also include periodic monitoring of operational activities, with the aim of gathering evidence to assess the effectiveness of internal controls over the Consolidated Sustainability Statement environment.
All business operations, where envisaged, are subject to audits by the functions or business Areas that own the various processes and operations (line controls or first line of defence), as well as by second and third line of defence departments.
With regard to the management of the risk of an incorrect Consolidated Sustainability Statement, the Group assesses the completeness, adequacy and reliability of the system of internal controls with regard to financial reporting and the Consolidated Sustainability Statement. In this context, the risk management process consists of the following sub-processes:
•identification;
•measurement;
•monitoring;
•attenuation;
•reporting.
Following the identification of the qualitative and quantitative data points relevant to the Consolidated Sustainability Statement and the data points to be included in the scope of activity using the results of the double materiality assessment, the Group has assessed the risks associated with the whole process.
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[GOV-5 DP 36b]
For each applicable quantitative data point, a risk assessment of erroneous Consolidated Sustainability Statements was carried out. This assessment determines the level of inherent (potential) risk, taking into account aspects such as the connection with changes in principles and required disclosure compared to the previous period, the nature and volume of underlying transactions, and the presence of estimation processes. Risks were also identified in terms of Assertion, in line with ESRS 1 (European Sustainability Reporting Standard 1) of the CSRD.
[GOV-5 DP 36c]
By way of example, but not limited to, the main risks identified during the preliminary analysis carried out on the 2025 Consolidated Sustainability Statement process are "inconsistency of the data/information reported within the IT platform used for data collection with the supporting evidence", "inconsistency and incompleteness of the players/sectors integrated in the IROs long list", "incompleteness/inaccuracy of the double materiality assessment due to an inappropriate assessment of the context", "incompleteness/inaccuracy of the double materiality assessment due to the lack of consideration of the contributions provided by the stakeholders involved".
Once the risks impacting the analysed processes have been identified, the activity continues by identifying the controls that the Bank's structures have put in place to mitigate these risks.
These controls involve different approaches depending on the nature of the information (referred to as “data points”) to be verified, specifically:
•for data points of a qualitative nature, the identification of first-level controls is envisaged in order to verify the conformity and completeness of the data with the requirements of the regulations and compliance with the Group’s policies, actions and targets;
•for data points of a quantitative nature, first-level controls are to be identified to mitigate the risk of an erroneous Consolidated Sustainability Statement;
•for processes relating to the Consolidated Sustainability Statement, first-level controls are to be identified to mitigate the risk of an erroneous Consolidated Sustainability Statement.
For each identified risk, at least one 'key control' is identified, i.e. a control essential to prevent material errors that cannot be intercepted by other controls. A test of design ('ToD') is performed on each 'key control' to check its suitability and, if positive, testing of operational effectiveness ('ToE') is carried out.
[GOV-5 DP 36d]
In the event of significant deviations that could affect the reliability of the Consolidated Sustainability Statement, the Banca Ifis Group proceeds swiftly to request that the anomaly be remedied to the relevant structure and to monitor the implementation of the required corrective measures, with a view to continually improving and updating the internal control system.
[GOV-5 DP 36e]
The Manager charged with preparing the company’s financial reports shares the annual Sustainability Statement with the Chief Executive Officer and then presents it to the Board of Directors, the Control and Risk Committee and the Board of Statutory Auditors. The report describes the verification activities carried out, their results and any shortcomings found.
[GOV-5 DP 36a]
Similarly, the illimity Group has its own system of internal controls to support the completeness, reliability and accuracy of data and sustainability information subject to reporting. The framework includes the description of the organisational model for the production of the Consolidated Sustainability Statement of illimity and the control tests in the execution of operational activities to obtain the necessary evidence for the assessment of the effectiveness of the system of internal controls. Specifically, the system adopted provides for the identification of processes with a significant impact on reporting and specific first-level controls, in addition to controls aimed at
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certifying the conformity of reporting, integrating risk assessments and control measures into business processes and ensuring periodic reporting to the administration, management and supervisory bodies.
[GOV-5 DP 36b]
In this context, illimity conducts analyses of key processes and their underlying reporting activities in order to identify, assess and prioritise risks based on probability and impact, with continuous monitoring of the effectiveness of controls and mitigation measures in place.
[GOV-5 DP 36c]
The risks identified in relation to illimity's Sustainability Statement are related to consistency with the Consolidated Financial Statements, completeness and accuracy of double materiality assessment, proper representation of the value chain and data integrity, mitigated through checkpoints governing how checks are performed, responsibilities and frequency of checks, as well as evidence produced and corrective actions implemented in the event of errors.
[GOV-5 DP 36d]
The results of the illimity Group's controls are integrated into the ESG risk management and monitoring processes, including ICAAP, ILAAP and Risk Self Assessment, and contribute to the assessment of the financial materiality of risks.
[GOV-5 DP 36e]
The findings of the risk and control assessments of the Sustainability Statement of the illimity Group are submitted to the Board of Directors at least annually. The results of the ICAAP and ILAAP exercises are forwarded to the Supervisory Authority, while the Board of Auditors is periodically informed about the progress of the sustainability reporting process.
1.1.4 Impact, risk and opportunity management: Double materiality assessment
[SBM-3 DP 48a]

ESRS | Sub topic | Impact materiality | Financial materiality - risks | Financial materiality - opportunities | Time horizon
E1 | Climate change adaptation |  |  |  |
Climate change mitigation |  |  |  |
Energy |  |  |  |
E4 | Direct impact drivers of biodiversity loss |  | Not material |  |
Impacts on the state of species |  |  |
S1 | Working conditions |  |  |  |
Equal treatment and opportunities for all |  |  |  |

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ESRS | Sub topic | Impact materiality | Financial materiality - risks | Financial materiality - opportunities | Time horizon

Other work-related rights (privacy)
Working conditions
S2
Other work-related rights
Not material
S3
Communities’ economic, social and cultural rights
Not material
Impacts for consumers and/or end-users
S4
Social inclusion of consumers and/or end- users
Corporate culture
Protection of whistle-blowers
Political engagement and lobbying activities
Management of relationships with suppliers including payment practices
G1
Corruption and bribery
Key:
own operations value chain
short-term medium-term long-term
Further details on the material impacts, risks and opportunities for the Banca Ifis Group are discussed in the respective thematic chapters.
[SBM-3 DP 48b]
Impacts, risks and opportunities identified as material for Banca Ifis are integrated into its business model through actions and targeted strategies. Specifically, with reference to environmental issues, and therefore to the effects
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of greenhouse gas (GHG) emissions, current and projected, generated directly and indirectly, the Banca Ifis Group is committed to implementing concrete actions to limit negative effects and generate positive impacts to reduce its environmental impact and promote sustainable transition. The adoption of specific initiatives, such as improving energy efficiency and supporting sustainable mobility, mitigates climate risks and enhances market opportunities.
In the value chain, the Group promotes innovative financial products for the sustainable transition of SMEs. The strategy also includes strengthening governance on ESG risks, a focus on the workforce with welfare and gender equality initiatives, and investments in digital technologies to support transparency, security and better access to services.
Environment
Specifically, with regard to environmental issues, the Group is committed to implementing various actions that generate direct and indirect impacts, in order to limit negative effects and generate positive impacts.
For example, the Group offers itself as a partner to accompany its customers on the path to sustainable transition, having also defined Net Zero targets in relation to the emissions of its portfolio complemented by decarbonisation targets for the main financed sectors. In a parallel fashion, the Group also aims to reduce its own emissions. It also identifies the business implications of climate stress and the associated socio-economic transition, seizing emerging opportunities, including through the proper identification, understanding and management of risks (in line with the Materiality Assessment exercise carried out) and climate and environmental opportunities that the Group may encounter.
With regard to the topic of biodiversity, on the other hand, the double materiality assessment highlights positive impacts and material opportunities in view of the promotion of initiatives and investments that favour the protection of ecosystems, biodiversity and land conservation within the Bank's infrastructure. For this reason, the Group implements several actions to protect these aspects within its proprietary assets such as the International Sculpture Park, in addition to the Bank's commitment to adopt a strategic approach integrated in the ESG Policy.
Social
The in-house workforce is one of the core elements of the Group's strategy and business model, and the positive impacts it generates foster a continuous strengthening of the overall strategic approach.
The Group also carries out its activities with respect for the environment and human rights, constantly striving to establish a reliable and inclusive approach to minimise negative impacts, respecting both internal workers and those along the value chain.
Finally, special attention is paid to the development and promotion of the communities and territory in which the Group operates, through the generation of material impacts and opportunities closely linked to the corporate strategy and aligned with the mission and objectives of the Kaleidos Social Impact Lab. Similarly, the Group's focus on customers and consumers is also read with a view to sustainability, for example through the adoption of an ethical and sustainable debt collection model aimed at the financial re-inclusion of debtors.
Governance
Finally, with regard to aspects relating to corporate culture, the Group continues to pursue and disseminate the principles of fairness, professional ethics and its corporate values, which are fundamental to the definition of the Group's integrity.
[SBM-3 DP 48ci,cii,ciii,civ]
The double materiality assessment conducted by the Group led to the identification of 70 material impacts, risks and opportunities, appropriately described within the thematic ESRS chapters. These were identified by
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considering all operations, activities, entities and processes involved in the life cycle of the services offered, both upstream and downstream, also taking into account counterparts such as indirect suppliers and end users.
Moreover, the Group's material impacts are directly reflected on people and the environment: on the one hand, they generate benefits through initiatives such as the renovation of buildings and support for the sustainable transition of SMEs; on the other hand, they contribute to the generation of indirect GHG emissions (e.g. financing-related emissions).
These impacts stem from the strategy and business model, which focus on sustainable growth, digitisation and inclusiveness. Their effects manifest themselves both in the short term, with operational and energy improvements, and in the long term, with innovation and social inclusion projects. In particular, impacts arise mainly from the Group's activities and relationships with counterparties along the value chain, such as suppliers and customers.
[SBM-3 DP 48g]
The 2025 double materiality assessment demonstrated substantial alignment with the findings of the double materiality assessment conducted with reference to the year 2024, both in terms of material ESRS and IRO topics. Compared to the previous year, the number of impacts, risks and opportunities within the list submitted for evaluation has been rationalised with the aim of making them more in line with the Group's context and business. In addition, through a structured process, the material impacts, risks and opportunities for the subsidiaries acquired during 2025 were integrated.
[SBM-3 DP 48d]
With reference to the current financial effects, a study of the effects of climate and environmental risks on credit risk was carried out in 2025, analysing the possible impacts that climate events could cause on the risk parameters represented by the Probability of Default (PD) and the Loss Given Default (LGD) rate and consequently on the Expected Credit Loss (ECL) of the performing portfolio. The analyses carried out showed that, with reference to the overall scenario of 2025 (weighted 60% as 'baseline', 30% as ‘adverse’ and 10% as 'climate'), the impact of climate risks on the Banca Ifis Group's risk parameters (PD and LGD) is to be considered entirely marginal at the level of ECL increase, in line with previous years. However, despite the negligible impact, these effects were included in the determination of the ECL through an adjustment of the risk parameters in the preparation of the Financial Statements as at 31 December 2025. To this end, an 'adverse weather' scenario was introduced with a 10% weighting for the forward-looking conditioning of the risk parameters (PD and LGD).
For more details, refer to the Notes to the Consolidated Financial Statements, Part E - Information on Risks and Related Hedging Policies.
[SBM-3 DP 48f]
In addition, in order to gain an ever better understanding of the environment in which it operates, Banca Ifis periodically carries out a resilience analysis: work to identify and assess the impact of climate and environmental risks on the entire ecosystem in which the Group operates. This process, which includes an initial analysis of market trends, a subsequent sectoral in-depth analysis and an assessment of the risks and opportunities associated with the different segments of each sector's value chain, aims to provide a solid information basis to guide strategic decisions related to the management of these risks, promoting a sustainable and conscious approach to climate and environmental challenges.
Based on the evidence from these analyses, Banca Ifis will direct its strategy and business processes to strengthen its resilience, mitigating material impacts, managing risks related to the ecological transition and seizing opportunities offered by sustainable business models. This translates into an evolution of the commercial offer, favouring the financing of sectors and companies with less exposure to environmental risks, the integration of ESG criteria in credit assessment processes and the investment in low-impact solutions for its operations, thus contributing to the sustainable development of the ecosystem in which it operates.
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Description of the processes to identify and assess material impacts, risks and opportunities
[IRO-1 DP 53a,c]
The Banca Ifis Group conducted the double materiality assessment to identify the material sustainability impacts, risks and opportunities (known as IROs) in order to integrate them into strategic decisions.
The double materiality assessment has two interconnected dimensions:
•materiality of impact (inside-out): a sustainability issue is considered material when it produces impacts, actual or potential, positive or negative, on people or the environment in the short, medium or long term. Impacts may arise from direct business activities or from the value chain, including products and services offered and business relationships;
•financial materiality (outside-in): an issue is considered material from a financial point of view when it has or could have significant effects on the company's economic performance, financial position, cash flows, access to finance or cost of capital.
The identification of impacts, risks and opportunities was done through a top-down approach, focusing on the Group's core business, i.e. banking. Although the analysis considered all entities included in the scope of the Consolidated Sustainability Statement, the focus remained mainly on the core banking business. Furthermore, it is specified that, although the analysis followed a top-down approach, the impacts, risks and opportunities relating to the subsidiaries acquired during 2025 were integrated.
In addition, the process was conducted in accordance with ESRS 1 'General Requirements' of the European Sustainability Reporting Standards (ESRS), which constitutes the framework for preparing the Consolidated Sustainability Statement of an entity as a whole, and EFRAG's IG1 Double Materiality Guidelines. These tools provide guidance on the process of assessing double materiality; therefore, the Group has established an ESRS-compliant double materiality assessment process adapted to its specific circumstances.
[IRO-1 DP 53b,c]
In particular, according to the EFRAG Guidelines - IG1, the implementation of double materiality assessment requires the execution of four fundamental steps:
1.understanding the context of the organisation;
2.identification of IROs related to sustainability issues under the ESRS Standards;
3.evaluation and determination of material IROs;
4.reporting against the material IROs.
1.Understanding the context of the organisation
[IRO-1 DP 53bi]
By examining the information collected, Banca Ifis identified dependencies and resources, business relationships and geographical presence, considering direct operations, the upstream and downstream value chain, and the various stakeholders involved.
The internal analysis examined:
•the Bank's business model, related business strategy, business activities, market trends and customer solutions;
•annual financial reports;
•the 2024 Sustainability Statement;
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•other available information and external reports;
•additional documentation, such as the Risk Catalogue, Climate Materiality Assessment, Risk Self Assessment, IT Scenarios & Threats and the list of IROs identified for the 2024 Sustainability Statement;
•the Code of Ethics, the Group's ESG Policy, the Environmental Policy, the Organisation, Management and Control Model pursuant to Legislative Decree no. 231/2001 and the various policies relating to process and sustainability topics;
•the corporate website of Banca Ifis.
In order to conduct the double materiality assessment process in a comprehensive and regulatory-compliant manner, the bank also considered its existing relationships with its suppliers, customers and internal and external stakeholders (such as employees and affected communities), focusing mainly on the Italian territory, where Banca Ifis conducts almost all of its activities. In addition, special attention was paid to any factors that generate or could generate negative impacts on people, the environment and society.
[IRO-1 DP 53bii]
Impacts arising from the Bank's activities or its business relationships were identified through a preliminary document analysis and subsequently assessed in the double materiality assessment through input from the stakeholders involved.
The following activities were conducted in the course of the external analysis to identify potential new risks and impacts:
•in-depth analysis of industry benchmarks, carried out by studying the main annual and sustainability reports of peer and competitor companies in the financial sector;
•consultation of authoritative references to adopt a comprehensive and informed approach to sustainability and responsible governance (see 1.1 ESRS 2 - General Disclosures, section 1.1.4 Managing Impacts, Risks and Opportunities: double materiality assessment, DP 53g).
In addition, further relevant aspects were taken into account when analysing the context, including the legal and regulatory landscape, public documentation such as media reports, and scientific articles and publications exploring general trends in sustainability.
The systematic approach adopted has created a solid basis for managing sustainability-related risks and opportunities, integrating a strategic vision and an in-depth understanding of the business environment and its relationships.
Stakeholder engagement
[IRO-1 DP 53biii]
The mapping of internal and external stakeholders constituted a key step in the process of double materiality assessment. The Group has identified an exhaustive list of internal and external stakeholders with the aim of ensuring an integrated and inclusive approach.
In particular, the double materiality assessment was initially carried out internally by the Group through the active engagement of various categories of internal stakeholders, i.e. corporate functions and departments that are strategic and essential for the assessment of IROs. These include Risk Management, Sustainability, Business, General Services, Human Resources, Compliance, Procurement, Finance, General Counsel. These functions have made essential contributions to the identification and assessment of IROs, bringing specific expertise and key perspectives to support a comprehensive and thorough analysis.
Subsequently, the company conducted an analysis addressed to external stakeholders with a twofold objective: on the one hand, to obtain feedback on identified impacts, risks and opportunities, and on the other hand, to support and reinforce the Group's assessment of double materiality.
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In line with regulatory requirements, Banca Ifis has divided its external stakeholders into two main categories:
•impacted stakeholders: individuals or groups whose interests may be affected, positively or negatively, by Banca Ifis's activities and business relationships along the entire value chain, such as customers, communities, the environment, consumers and suppliers;
•users of the Consolidated Sustainability Statement: stakeholders of sustainability data, both financial and non-financial, such as current and potential investors, lenders and creditors (e.g. asset managers and lenders), business partners, trade unions and social partners, civil society and NGOs, governments, regulators, academic analysts and experts, industry associations, media, ESG assessors, government agencies.
Following the mapping and identification of the main stakeholders, the Bank adopted specific approaches to engage with the respective stakeholders and users of the Consolidated Sustainability Statement, taking into account the peculiarities of each category and using differentiated tools such as thematic workshops and one-to-one meetings, all aimed at gathering considerations and assessments in the area of double materiality.
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2.Identification of current and potential IROs related to sustainability topics
[IRO-1 DP 53c,ci,ciii]
In order to effectively identify the impacts, risks and opportunities to be analysed, the Group has adopted a structured approach consisting of the following steps:
•identification of topics, sub-topics and sub-sub-topics for each ESRS standard;
•integration of relevant information from previous materiality assessments, existing reports or analyses (e.g. human rights impact assessments and climate scenario analyses) and external inputs, such as World Economic Forum and OECD guidelines;
•consideration of the risks identified in the Group Risk Management Risk Inventory, Climate Materiality Assessment and Risk Self Assessment, including credit, market, operational, reputational, strategic and compliance risks;
•mapping of players in the value chain, both upstream and downstream, analysing stakeholders such as shareholders, employees, suppliers and customers. Data was collected on the size, activities and geographic areas of the companies with which Banca Ifis does business, in order to identify material risk areas and related IROs;
•assessment of the ways in which impacts translate into risks and opportunities, bearing in mind that not all risks and opportunities are strictly related to Banca Ifis's activities or impacts, some of which may be due to the environment in which the Group operates or dependencies related to natural, human and social resources;
•analysis of IROs, including consideration of the time horizon associated with each;
•review of the due diligence process, in line with the UN Guiding Principles on Business and Human Rights and the OECD Guidelines, to ensure adherence to the highest international standards.
In the double materiality process, the Group once assessed individual IROs through the relevant thresholds 17 and methodologies, aggregated the results of the IROs for the reporting topics, prioritising them on the basis of the value of the impacts, in order to give importance to the risks and, finally, to the opportunities.
In order to identify and prioritise sustainability risks, the Bank made use of the analyses and findings of the Materiality Assessment, i.e. the analysis of the significance of climate and environmental risks conducted by the Group's Risk Management function, which highlighted the correlations between sustainability risks, in particular climate and environmental risks, and the traditional risks of the banking system. In addition, the findings of the Risk Self-Assessment and IT Scenarios & Threats were also optimised in the course of 2025, in order to provide a comprehensive and granular identification of the different ESG risk categories and ensure consistency between the findings of the analyses.
3.Evaluation and determination of material IROs
[IRO-1 DP 53b,biv,cii]
To determine the materiality of impact, the Group assessed the significance of impacts, both positive and negative, taking several factors into consideration. These include magnitude, which measures the severity of the impacts or the benefits caused by them; extent, which assesses how widespread the impacts are; irremediability, considered only for negative impacts, which indicates whether and to what extent the negative impacts could be
17 The preliminary threshold for assessing the materiality of each sustainability topic was set at '4' for both impact materiality and financial materiality. It should be noted that exclusively for operational, reputational and IT risks, assessed by association with Risk Self Assessment, the materiality threshold was set at values greater than '8'.
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remedied, for example, by restoring the environment or people impacted to their previous state; and likelihood, which expresses how likely it is that such impacts will occur.
With regard to financial materiality, the magnitude, i.e. the magnitude of the impacts should a risk or opportunity materialise, and the likelihood of these risks and opportunities materialising, were taken into account. With particular reference to magnitude, it is determined from the Materiality Assessment, identifying the relevant CCO areas.
In the assessment of potential negative impacts on human rights, the severity of the impact is given priority over its likelihood, while the determination of financial materiality is based on the joint analysis of the magnitude of the economic effects and the likelihood of their materialisation.
In addition to the parameters described above, the evaluation process included an in-depth analysis of further key elements in order to ensure a comprehensive understanding of double materiality. Amongst these, particular attention was paid to impacted stakeholders, i.e. individuals or groups affected by the company's activities, to time horizons, divided into short, medium and long term to ensure an integrated and time-projected view, and to the value chain, with a specific focus on the most critical geographical areas and business relationships. This analysis allowed for a more precise contextualisation of impacts and opportunities across the entire spectrum of the company's activities.
To identify material sustainability issues, the Bank also assessed the list of IROs taking into account both current impacts (net of mitigation measures) and potential impacts.
[IRO-1 DP 53biv,c,cii]
[IRO-2 DP 59]
Following the normalisation of results, each impact, risk and opportunity was given a score on a scale of '1' to '4', where '1' indicates a low rating and '4' a very high rating. This scoring system was used to measure both the severity of impacts and the magnitude of risks and opportunities, with a focus on impacts that had already occurred, which were automatically assigned the maximum score of '4'. The likelihood rating scale followed the same criterion, with scores from '1' (low probability) to '4' (high probability).
Finally, the Group has established quantitative and qualitative thresholds to determine the materiality of issues to be disclosed, using risk management processes both to define thresholds and to assess the significance of impacts for disclosure purposes. In particular, Banca Ifis defined the materiality thresholds through a two-step process: first, the list of IROs was drawn up and then an assessment was conducted to define a preliminary threshold for both impact materiality and financial materiality; in a second step, the consistency of the results related to sustainability issues with stakeholders was verified. The threshold for defining the materiality of each sustainability issue was set at '4' for both impact and financial materiality 18. In accordance with ESRS 1 and the Guideline, once individual IROs have been assessed according to appropriate thresholds and methodologies, results can be aggregated for reporting topics, in order to identify the relevant material ESRS topics.
[IRO-1 DP 53ciii,e]
The Group conducted impact, risk and opportunity assessments through the direct engagement of specific corporate functions, adopting a structured and thorough approach. In order to assess the overall risk profile and optimise the risk management and integration processes, the risks identified in the Risk Inventory provided by Risk Management in the Climate Materiality Assessment and Risk Self Assessment of the Group, were also integrated into the analysis for an overall and consistent view. These include credit risks, market risks, operational risks, reputational risks, strategic risks and compliance risks.
18 As previously specified, for operational, reputational and IT risks, the materiality threshold was set at values greater than '8'.
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Sustainability risks were classified in view of their relevance to stakeholders and the results of the assessment of their financial materiality. Therefore, the process of identifying, analysing and managing these risks has been integrated into the overall risk management system, contributing to the definition of the corporate risk profile.
The integration of these factors examines risk appetite, ICAAP, credit and market risk management strategies, liquidity impact, credit risk assessment models and provisions.
[IRO-1 DP 53f]
As far as opportunities are concerned, the Group identified and assessed them taking into account the strategic guidelines dictated by the Parent Company, the business objectives and the opportunities that emerged during the extraordinary transactions that took place during 2025.
The process of identifying, evaluating and managing opportunities was carried out by involving the individual corporate functions for the areas of their competence, which formulated considerations on the basis of the overall process of managing the topics.
[IRO-1 DP 53g]
As part of the double materiality assessment, Banca Ifis considered several authoritative sources, including FTSE4Good Index Series, Global Risk Report 2024, MSCI ESG Indices, CDP, MIB ESG Index, Integrated Governance Services, Standard Ethics Indices, Bloomberg Gender-Equality Index 2022 (GEI), World Economic Forum, OECD, STOXX® Sustainability Indices, UNEP FI - Impact Radar and Principles for Responsible Banking (PRB).
To complement these sources, the Risk Management function's in-depth analyses were based on risk drivers identified by info providers such as Moody's and ENCORE, which allow for the identification of climate and environmental transition risk indicators on the basis of economic sector, and info providers such as ThinkHazard and Istat/ISPRA, which allow for the identification of physical risk indicators on the basis of geographic location.
[IRO-1 DP 53h]
In addition, during 2025, the assessments carried out as part of the double materiality assessment conducted by the illimity Group were integrated into the IROs evaluation process, aligning the criteria and evaluation methods, in order to enable comparability of results between the two perimeters.
4.Reporting on material IROs
[IRO-1 DP 53d]
Finally, as previously described (see 1.1 ESRS 2 - General Disclosures, Section 1.1.3 Governance, DP 26), the results of the double materiality assessment process were submitted to the attention of the governing bodies, such as the Sustainability Committee and the Board of Directors, which formally approved the results. In addition, the Consolidated Sustainability Statement is certified by the Manager charged with preparing the company’s financial reports. To this end, a special internal control system was set up to verify the data and information reported in the disclosure. This system has been integrated into specific operational procedures.
[G1.IRO-1 DP 6]
In the double materiality assessment process used to identify material impacts, risks and opportunities with regard to business conduct, the stakeholders involved in the assessment took into account the Group's business activity, the geolocation of activities located in Italy and the downstream and upstream value chain.
Methodological insight into the assessment of climate and environmental IROs
[E1.IRO-1 DP 20a, AR 9]
The Group has prepared specific analyses to investigate climate change impacts, risks and opportunities.
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In particular, in order to identify material climate impacts, the Group analysed the company's activities and the total greenhouse gas (GHG) emissions generated by the organisation, through discussions with the relevant corporate functions.
The analysis revealed two main impacts:
•generation of finance-related indirect emissions (Scope 3);
•generation of direct and indirect GHG emissions resulting in negative environmental sustainability performance (Scope 1 and 2).
In addition, two further climate change-related impacts were identified: the first related to the improvement of the working environment through the green renovation of company buildings, and the second related to the development of entrepreneurship and the improvement of the sustainability profile of counterparties through credit access channels for SMEs and ESG performance assessments.
[E1.IRO-1 DP 20c,ci,cii]
The Group integrates into its strategic and financial planning the prospective opportunities for the future from a climate perspective, in accordance with its business model. The Group mapped climate-related opportunities by grouping them into two areas:
•the ecological transition, which includes projects aimed at generating energy from renewable sources and innovative solutions for the energy transition, as well as support for SMEs in obtaining capital (through the NRRP, European Investment Bank, EIB) to meet environmental and/or Industry 4.0 objectives (e.g. through Nuova Sabatini on environmental investments);
•the sustainable mobility, which includes the development of sustainable mobility products and services, the strengthening of the leasing market for low environmental impact vehicles and the entry into the leasing sector for alternative mobility (e.g. e-bikes).
As mentioned, over the years, the Group has implemented several innovative projects to spread awareness of the business culture with the aim of supporting Italian SMEs not only through financial products and services, but also by narrating and highlighting the most virtuous realities, which can act as a guide for those who want to do sustainable business.
In a parallel fashion, the Banca Ifis Group collaborates with several leading financial and non-financial partners in the energy transition to take an active part in the international effort to combat climate change. Finally, the Group has already started a process of gradual decarbonisation of the portion of its banking portfolio with high emissions, setting itself intermediate emission reduction targets for 2030 with the aim of achieving net zero in 2050.
[E1.IRO-1 DP 20b,bi,c,ci]
In order to ensure an adequate integration of climate and environmental risks within the Risk Management Framework, the Risk Management function conducts a materiality assessment for traditional risk categories involving a quantitative assessment, using various analytical tools. The Climate & Environmental (C&E) Materiality Assessment is conducted annually with the aim of updating the risk management framework in light of portfolio developments and identifying any new risks arising from climate and environmental events.
Materiality Assessment involves identifying causal mechanisms that transfer risk from climate or environmental events to traditional risks and thus to credit risk, operational risk, liquidity risk, business risk, market risk and reputational risk. In 2024, the analysis was also extended to environmental risks, including biodiversity, pollution, water use and waste management. These risks were analysed both physically, through georeferencing, and transitionally through a sectoral approach. In 2025, the ENCORE provider further modified the methodology for assigning transition scores, adopting a new system and increasing the number of risk classes by introducing new biodiversity indicators.
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The analysis is updated regularly and annually by the Risk Management function, with the aim of refining the methodologies and the scope of risks included in the analysis, as well as the Group's exposure to risks. Furthermore, it is specified that this analysis is brought to the attention of the Sustainability Committee at least annually.
[E1.IRO-1 DP 20b,bii,c,cii]
The process adopted by Banca Ifis consists of three main activities aimed at identifying and assessing climate and environmental (C&E) risk factors material to the Bank.
1.Development of the C&E risk factors taxonomy: the first phase consists of the creation of a C&E taxonomy, with the identification of the main risk drivers linked to two main categories:
•climate risks divided into:
–transition risks: related to technological, regulatory and market developments (e.g. changes in regulations, technological innovations and market perception);
–physical hazards: distinguished between acute (e.g. floods, landslides, fires) and chronic (e.g. sea level rise, drought);
•environmental risks: divided up into:
–transition risks: similar to climate risks, influenced by technology, regulation and market sentiment;
–physical hazards: both acute and chronic;
2.Identification of transmission channels and time horizons: this phase involves the qualitative analysis of the propagation of risks and the definition of their time horizons, with particular attention to the main impacts on the Bank;
3.Definition of Materiality Assessment: in the final stage, the quantitative assessment of the materiality of C&E risk factors is carried out, taking into account all identified risk types.
In order to ensure a better fit with the Group's specific business models, risks were grouped into macro-areas, also taking into account the guidelines provided by the European Central Bank (ECB) on the internal capital adequacy assessment process (ICAAP) and liquidity assessment process (ILAAP).
In particular, the analysis of physical risks considered adverse weather events, both chronic and acute, identifying those most material to Banca Ifis's operating environment. The assessment of their significance was conducted in relation to potential impacts on traditional risks, which in turn were examined through various factors, including portfolio geo-referencing, business operations and strategic assets for business continuity.
With regard to transition risks, the analysis was carried out at sector level, identifying the sectors most exposed to specific environmental issues, such as biodiversity, pollution, water use and waste management. Again, potential impacts were assessed in relation to traditional risks, providing an integrated picture of their significance.
This structured approach enables Banca Ifis to effectively understand and manage climate and environmental risk factors, integrating them into its decision-making processes and risk management strategies. The adoption of analytical tools such as sector heatmapping and geo-referenced analysis ensures precise identification of the most exposed areas and segments, facilitating the implementation of targeted mitigation measures (e.g. insurance policies).
The above analyses were conducted in line with the Net-Zero Banking Alliance (NZBA), which the Group joined in 2021; although the initiative was restructured in 2025, the guidelines of the framework remain available and applied by the Group.
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Materiality of climate and environmental risks
After the preliminary mapping of climate and environmental risks, the materiality assessment also includes a detailed examination of the channels of transmission of C&E risk factors to traditional risks, the time horizons with which C&E risk factors manifest themselves given Banca Ifis's operations, and an assessment of the risks identified as material. Below is a summary of the main risks analysed by Banca Ifis.
Credit risk
[E1.IRO-1 AR 11,12]

Risk type | Transmission channel | Description | Time horizon
Climate physical risk | Business continuity of the company and Npl/salary-backed loans realignment plans | An acute physical risk can lead to disruptions in the value chain and lead to a decrease in sales. Similarly, physical damage to plants could affect normal operating capacity and thus the company's future financial solvency, with effects in terms of probability of default (PD) | Medium-term
Commercial and residential properties could be damaged by acute or chronic climatic events, impacting the valuation of buildings and adjacent properties. In addition, the ability of borrowers to repay their loans may be impaired due to the operational inability to continue their income-generating activities (e.g. property used as a pharmacy, main residence) | Medium-term
Climate transition risks | Repayment capacity on corporate loans and Npl/salary-backed loans realignment plans | Technology: Reduced competitiveness due to lack of investment in new technologies with lower emissions impact, resulting in higher PD Politics and regulations: Reduced profits for high-carbon companies due to greenhouse gas emission taxes, which in turn can affect access to and the cost of financing and the ability to repay debts by increasing the PD Market Sentiment: consumer preferences may further push demand towards greener opportunities and affect the profitability of companies, worsening the PD of those companies that are not aligned with new green market trends | Medium-term
Value of real estate on secured exposures | Technology: energy-intensive real estate (e.g. High APE ratings) can lead to a depreciation of the property in the event of enforcement of the guarantee with an impact on the loss given default (LGD) rate Policy and regulations: the value of the collateral could be reduced in the case of policies that impose legal limits related to the degree of energy efficiency, worsening the borrower's creditworthiness towards the bank and impacting LGD Market Sentiment: increased demand for energy-efficient housing may negatively affect the value of low-energy-efficient collaterals and impact LGD | Medium-term
Environmental physical risk | Business continuity of the company | Companies operating in areas vulnerable to environmental risks may suffer significant economic losses due to the degradation of ecosystems. This degradation can be caused both by acute events, such as natural disasters, and by chronic, gradual changes. Such phenomena can compromise the natural resources required for business operations, adversely affect | Medium-term

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Risk type
Transmission channel
Description
Time horizon
production and increase operating costs, jeopardising long-term profitability and the associated repayment capacity
Environmental transition risks
Repayment capacity on corporate loans
Companies exposed to environmental risks can suffer significant economic consequences due to the failure to adopt environmentally friendly technologies, the delay in aligning with regulations to reduce pollution, and the increasing scarcity of natural resources such as water and biodiversity. These risks may materialise in economic losses resulting from regulatory sanctions or increased operating costs due to reduced availability of essential resources. Moreover, inefficiency in managing these aspects can make companies less competitive in a market increasingly oriented towards environmental sustainability
Medium-term
The study of the effects of climate and environmental risk factors on the credit risk of the Group’s portfolio followed two complementary approaches that guarantee, on one hand, the highlighting of aspects linked to the peculiarities of the segments to which the Group is exposed, and on the other the analysis of the geographical distribution of its loans, highlighting particular concentrations in areas at risk of adverse events. The procedure carried out fostered the development of new knowledge and the dissemination of an awareness of such risk factors that the Group pursues with regard to both its employees and its various stakeholders (e.g. customers, suppliers, shareholders).
With regard to risk factors linked to the transition process, there are several transmission channels affecting credit risk. In order to capture these aspects, a risk mapping exercise was carried out, which led to the assignment of a risk level according to the sector to which each counterparty in the portfolio belongs (via ATECO code).
Also with reference to risk factors linked to the energy transition, another line of analysis was that of real estate securing loans granted by the Banca Ifis Group subsidiary Banca Credifarma. In this case, the effect of transition risk on credit risk is closely linked to the energy class of the real estate pledged as collateral. In these terms, a detailed analysis of the transition risk was carried out on Banca Credifarma's securitised portfolio by assessing the EPCs of the properties, with the aim of taking into account the possible devaluation on property values in the event of resale, due to the market discount applied for low energy class properties.
With regard to physical, acute and chronic risk factors, the impact was quantified by geo-referencing the customers in the portfolio. The analysis carried out by the Group made it possible to associate physical risk at the level of individual counterparties on the basis of their geographical location, at a municipal level, identifying risks that are relevant to the context in which it operates. In addition, georeferencing methods were refined with reference to counterparties belonging to the automotive sector (given its importance in the Group's portfolio and in the decarbonisation strategies defined by Banca Ifis), considering the global location of production sites and associating the relative production data.
The materiality assessment of climate and environmental (C&E) risk factors on credit risk took the form of a graphical representation of the risk (a “heatmap”) showing the significance of the associated transition and physical risk for each segment. More specifically, the risk assessments also conducted for the purposes of the double materiality assessment were enhanced by the internal analyses performed by the Risk Management function and the results of the assessment performed by the same function. The materiality assessment revealed a ~22% share of exposures to 'High' or 'Very High' climate and environmental risk sectors (e.g. Chemical Industry, Steel Industry, Farming); overall, the degree of materiality of C&E risk factors on credit risk was assessed by Banca Ifis as moderate.
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In addition to the data downloaded from the various infoproviders, the following analysis indicators were used to define sectoral transition risks for environmental topics:
•information on the topics of 'Pollution (Air, Soil, Water)', 'Biodiversity (Disturbance, Ecosystem Use)' and 'Water Use' from the ENCORE infoprovider (https://encorenature.org/en);
•climate information already retrieved from Moody's on 'Carbon Transition (GHG Emissions)' and 'Waste and Pollution (Circular Economy)' for the construction of the climate and environmental transition score.
As previously mentioned, during 2025 the ENCORE provider made substantial changes to the methodology for assigning transition scores, in particular, it changed the sectoral classification for assigning risk scores (from GICS - Global Industry Classification Standard to ISIC - International Standard Industrial Classification), changed the number of the risk classes (from 4 to 5) and introduced new indicators related to Biodiversity, such as 'Introduction of Invasive Species' and 'Extraction of Biotic/Abiotic Resources'.
As far as physical risk drivers are concerned, hazard indicators are collected at provincial level by the infoprovider THINK HAZARD and supplemented with more detailed information at municipal level on certain aspects relevant to the Italian territory, such as floods, landslides, volcanoes and sea level rise, based on sources such as ISTAT, ISPRA and INGV. An analysis provided by NATURA2000, which maps Italian areas of high biodiversity in relation to habitats, species and natural parks, has also been incorporated. The analysis assesses the potential impact of companies located in the vicinity of these areas, differentiating it by economic macro-sector.
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In addition, the following risk was material exclusively for the illimity Group:

Risk type | Transmission channel | Description | Time horizon
Transition risk | Loan repayment capacity of corporate clients and profitability | Credit risk due to deterioration in the creditworthiness of counterparties due to higher transition costs:1) for the development of a transition plan i.e. specific interventions needed for the sector, e.g:- for energy efficiency;- to reduce the level of GHG emissions;- to comply with new climate-related regulatory constraints (e.g. on the use of fossil fuel energy sources applied in the counterparty's sector, energy class/energy consumption, level of GHG emissions);2) for the introduction of specific taxes (e.g. carbon tax). | Long-term

Business risk
[E1.IRO-1 AR 11,12]

Risk type | Transmission channel | Description | Time horizon
Transition and physical risks | Profitability linked to segments exposed to C&E risks | The Bank operates in sectors that may be affected by transitional climate risks related to the transition to a sustainable economy, as well as the impact of acute and chronic physical risks that may affect portfolio counterparties and affect the Bank's ability to generate margins in these sectors | Medium-/long-term

The analysis uses the segment-level credit risk materiality exercise and the segmentation of the portfolio into high-risk Climate & Environmental (C&E) segments as a starting point. On the basis of the counterparties in each segment, the relevant net banking income is associated and the percentage of revenue of the total generated in high C&E risk segments is calculated. The 2025 analysis shows that about 25% of the Group's net banking income is generated on high C&E risk segments.
Market risk
To date, the Group's market risk is not material, amounting to approximately 1% of risk weighted assets (RWAs) and being mainly composed of transactions for economic hedging and/or developing the Group's investment portfolio.
In this context, carefully implemented risk monitoring and consequent risk management activities aim at containing portfolio volatility and hedging material risks deriving from exogenous sources. The Bank conducts recurring analyses of the materiality of climate and environmental risk factors in relation to the sovereign portfolio.
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[E1.IRO-1 AR 11,12]

Risk type | Transmission channel | Description | Time horizon
Physical risks | Sovereign securities portfolio | The bank's credit risk with respect to sovereign exposures may increase in the event of acute or chronic weather events, as they impact the income of sovereign states:-Lower tax revenues from affected businesses (e.g., decreasing the physical capital of companies) and higher expenditures to deal with the economic effects of physical weather events (e.g., repair or prevention of damage to infrastructure or public assets and increased social costs) | Long-term
Transition risks | Sovereign securities portfolio | Technology: climate change mitigation and adaptation policies also derive from necessary public investment, implying an increase in public spending Politics and regulation: sovereign states may face higher litigation costs as efforts towards a sustainable transition progress Market sentiment: changes in consumer preferences, a weaker overall economy and lower fiscal income could have an impact on sovereign riskiness | Medium-term

In particular, numerous IMF (International Monetary Fund) research articles have shown that climate and environmental risk is able to influence the risk of sovereign default, reflecting on government bond spreads. Banca Ifis assesses this risk according to the INFORM index, developed by the Disaster Risk Management Knowledge Centre and also mentioned by the European Commission.
Based on the results of the materiality assessment, no changes to the current practices in force are currently necessary. However, the Bank will continue to evaluate the adoption of additional safeguards, aimed at integrating the analysis of C&E risk factors into the relevant investment/disinvestment choices.
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Operational risk
[E1.IRO-1 AR 11,12]

Risk type | Transmission channel | Description | Time horizon
Physical risks | Compromise of operating sites, prop. data centres and major IT outsourcers | The Bank could be significantly impacted by the impairment of its operating sites, including those of its Foreign Subsidiaries, branches and data centres exposed to high climatic risks, in addition to the business continuity analyses already in place. | Medium-term
Ex-lege suspension of payment flows for extreme events | Due to extreme weather events, the Bank could be exposed to possible interventions by the legislator to support the population that could lead to the suspension of instalments and/or repayment of Npl/salary-backed loans repayment plans. | Medium-term
Transition risks | Lawsuits by NGOs / Activists | A possible climate lawsuit by activists/NGOs could lead to fines/compensation in litigation. | Short-term

The study of the effects of climatic and environmental risk factors on operational and reputational risks was conducted, with reference to both physical and transitional risks, by assessing:
•the potential impacts of acute weather events in financial and business continuity terms;
•the negative effects that could be generated on the Banca Ifis Group's reputation as a result of conduct or business practices that conflict with its ambitions and regulatory environment.
The occurrence of extreme climatic and environmental events could, in fact, jeopardise the Group's business continuity with serious repercussions on the Group's main operating sites (including branches), on those of outsourcers critical for stability (e.g. Mestre, Milan, Parma, and Padua) and on the main data centre sites (proprietary or third-party).
In this context, in order to estimate the relevance of infrastructure in terms of profitability and business volumes generated, several proxies were calculated, such as the contribution of the individual branch to net banking income, weighted for probability of occurrence of climate events or the number of staff operating at the Group's main offices.
From the point of view of operational risks, various scenarios resulting from the occurrence of acute climate and environmental events were analysed. In order to quantify the impact on Banca Ifis's portfolios, a provincial geo-referencing of exposure was considered, identifying the provinces with the highest concentration and therefore most exposed to the effects of C&E risk factors.
The final result of the climate and environmental risk factors materiality assessment is a heatmap, constructed based on an approach that considers impact analysis by probability and is linked, on the basis of potential materiality, to the different departments of the Bank and the Subsidiaries.
Analyses show that the most economically significant branches, most exposed to climate and environmental risks, are located in the provinces of Milan, Pisa, Naples, Pescara and Rome, accounting for approximately 35% of net banking income; in all, foreign subsidiaries are exposed to low climate risks.
The update of the Materiality Assessment exercise envisaged the following activities in relation to operational risk. In this regard the Banca Ifis Group:
•has incorporated the “Business Continuity Plan” according to the specificities of the extreme climatic and environmental events analysed. In addition, the Bank extended the analysis to include the potential impacts to the Group resulting from the impairment of the operations of the foreign subsidiaries;
•has assessed, through geo-referencing of customers in the Npl portfolio, the potential impact of possible interventions by the legislator to support populations affected by extreme weather events that may lead
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to the suspension of the repayment of Npl and salary-backed loan realignment plans. The most economically significant operations exposed to high climate and environmental risks are located in the provinces of Rome, Latina, Naples, Salerno, and Turin, for a total of ~23% of the perimeter considered (Npl and Cap.Ital.Fin.), with an overall medium-high risk. On the remaining approximately 77% of the perimeter distributed throughout the country, the Bank is exposed to medium to low climate and environmental risks;
•it applied a risk assessment methodology that involves identifying relevant stakeholders sensitive to potential lawsuits by NGOs/activists, quantifying the degree of sensitivity and assessing the impact and likelihood of occurrence, in order to obtain an overall score.
Reputational risk
[E1.IRO-1 AR 12]

Risk type | Transmission channel | Description | Time horizon
Transition risks | Exposure to high C&E risk segments | The Bank may be exposed to investors and stakeholders on the development of the share of exposure to high-risk C&E sectors | Short-term
Non-alignment with Net Zero targets | Having ambitious targets on NZBA's emission-intensive priority sectors could expose the bank to a misalignment that could have a significant impact on multiple stakeholders | Short-term
Non-compliance with C&E regulations and expectations | The Bank must be aligned with C&E risk expectations and evolving regulations in the European Union, which may lead to further inspections by supervisory authorities and fines for non-compliance | Short-term
Risk of greenwashing the product offering | The Bank is exposed to the risk of disclosing 'green' products without sufficient evidence of their 'green' impact | Short-term

With regard to reputational risk, scenarios have been identified, such as non-compliance with C&E regulations or non-alignment with decarbonisation targets, which may generate risk through stakeholders sensitive to the topics impacted.
More specifically, to analyse the climate and environmental effects on reputational risk, a framework made up of four distinct steps was constructed:
•identification of reputational risk scenarios based on the C&E risk taxonomy;
•identification of relevant stakeholders (suppliers, investors, supervisor, employees) and quantification of their degree of sensitivity to the different scenarios;
•risk assessment, for each scenario, including analysis of the impact and probability of occurrence in order to obtain an overall risk score;
•aggregation of results, applying weighting factors based on the relevance associated with the stakeholders.
Based on the analyses of the most material reputational risk scenarios, the Bank is exposed to a moderate overall risk.
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Liquidity risk
[E1.IRO-1 AR 11]

Risk type | Transmission channel | Description | Time horizon
Physical risk | Bank Run | Physical risks can damage real estate or company property, potentially causing an increase in demand for liquidity and the withdrawal of some deposits | Long-term

Following the materiality assessments, the Bank assessed the possibility of applying corrective measures to the way liquidity reserves are managed, as well as to the provisioning of funds; specifically, the Bank conducted a sensitivity analysis of the LCR (Liquidity Coverage Ratio) regulatory indicator by applying stress assumptions to both available reserves and net outflows based on the dynamics observed on certain reference scenarios. The analysis showed that the liquidity risk from a climate and environmental perspective is non-material: therefore, there is currently no need to apply corrective measures to the way liquidity reserves are managed with a view to integrating climate and environmental risks. Banca Ifis will continue the monitoring analysis of potential risks and the related impacts related to this risk exposure, as well as in evaluating the adoption of any safeguards that may become necessary in time.
However, the aforementioned risk is significant for the illimity Group.
[E1.IRO-1 AR 11c,12b,c]

Reference segments | % exposure
Very high and high C&E sectors | 25%
Moderate C&E risk sectors | 50%
Low Risk C&E Sectors | 19%
Individuals and PA | 6%
Total | 100%

The main segments considered to be at 'Very High' and 'High' C&E risk include: Chemical Industry - Goods and Specialities, Manufacture of Coke and Products from Petroleum Refining, Extraction of Crude Oil and Natural Gas, Steel Industry (Production and Components), Crop and Forestry and Animal and Fish Farming.
[E1.IRO-1 DP 21]
The materiality assessment on credit risk has also enabled the creation of a sectoral heatmap to identify the C&E risk areas in the credit portfolio, including:
•heatmap of climate transition and environmental risk at sector level;
•bottom-up analysis of physical risk at the customer level using geo-referencing.
Heatmap of climate transition and environmental risk at sector level
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In order to identify the sectors of economic activity in the loan portfolio that present the greatest climate and environmental risks, the Bank has conducted an assessment activity, grouping these sectors into homogeneous groups based on the sector of economic activity of the counterparties analysed (ATECO code).
In order to construct a segmental heatmap showing the portions of the portfolio exposed to different types of risk, the Bank has therefore:
•identified transition risks using a "top down" approach: for each macro segment of economic activity, a risk score on a scale of 1 (Low) to 4 (Very High) was associated with third-party info providers;
•identified physical risks through a "bottom up" approach: each counterparty, associated with a particular segment of economic activity, was analysed punctually by geo-referencing their respective production/legal locations, a process that made it possible to identify precisely the physical risks to which the counterparties are exposed (details follow).
In addition, it should be noted that loan assets backed by real estate to Banca Credifarma's retail customers were also included in the perimeter and categorised as exposures with moderate transition risk. Indeed, a project was initiated to enable the timely collection of the information necessary for risk assessment also on the entire portfolio of loans secured by real estate (e.g. Mutuo Dipendenti prima casa (first home employee loan); the activities were started from this very product dedicated to employees and extended to Banca Credifarma due to its materiality, with the aim, in the long run, of extending the collection of information to all Group companies.
Following the initial findings of the materiality exercise, the Bank proceeded with the identification of various strategies to monitor and control climate and environmental risk factors. Specifically, the Bank has identified the following mitigants and measures:
•inclusion within the RAF of an indicator to monitor the percentage of exposure to assets classified as high transition risk with respect to the banking group's total exposure;
•inclusion within the RAF of two indicators to monitor the percentage of exposure to territories (Italian municipalities) classified as high flood and/or mudslide risk with respect to the banking group's total exposure;
•update and monitoring of the results of the materiality exercise once a year;
•annual update of the Bank's risk taxonomy document and transmission channels for climate and environmental risks.
In addition to the mitigation and monitoring measures already implemented, the Bank has worked on (i) the implementation of a strengthened credit framework from an ESG perspective, (ii) the strengthening of ESG analyses for credit operations, and (iii) the development of a sensitivity analysis of the loan portfolio with respect to climate and environmental risk factor issues, analysed further below.
[E1.IRO-1 AR 15]
Climate Stress Test and the scenarios considered
In line with the Bank of Italy's expectations on climate and environmental risk factors, the Parent company Banca Ifis updated its sensitivity analysis of the loan portfolio with respect to these issues in 2025. In this context, the Parent company independently conducted a Climate Stress Test exercise based on the short-term climate scenarios published by the UNEP Finance Initiative in July 2024 using the same framework and satellite models as the ICAAP stress test.
A scenario combining the effects of both Transition Risk and Physical Risk was considered.
Transition risk
With regard to transition risks, the macroeconomic shocks of the "Stringent carbon price" scenario, which anticipates all effects of the Delayed Transition scenario of the NGFS from 2031 to 2023, were considered. The carbon price increases between 57 US Dollar and 368 US Dollar per tonne of CO 2 by 2027, gradually over five years
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depending on the country. Advanced economies reach a more ambitious average price of around 325 dollars per tonne of CO 2 in 2027, while other regions keep prices below 231 dollars. The basic assumption is that rising carbon prices underpin coordinated global policies aimed at mitigating climate change. The impact of these policies has two phases:
•In the first stage, environmental policies lead to an increase in inflation due to the introduction of new energy taxes and a negative impact on productivity due to a change in the energy mix by companies. Following a reduction in demand, fossil fuel prices fall;
•in the second phase, the carbon tax generates public revenue that can be used for sustainable initiatives that can lead to increased public and private investment.
Physical risk
With regard to physical risk, the macroeconomic shocks of the "Chronic impacts" scenario, which models the extreme chronic risks, such as high temperatures, sea-level rise and changes in precipitation of the NGFS scenarios, were considered. These risks will gradually increase in significance over time, having a severe impact on GDP within 20-30 years. However, in this scenario, these chronic risks have been brought forward to the present.
Unlike the 30-year long-term scenarios, the short-term climate scenario considered does not fully reflect the benefits of the transition and the related economic recovery. In terms of severity, it is, albeit not much, less negative than a typical EU-wide stress test scenario. Compared to the baseline, Italy's economic growth is projected to decrease by around 5,5% at a cumulative 2-year level (compared to 7,4% in the adverse scenario of the EU-Wide stress test).
To make the scenario consistent with the current economic environment, the macroeconomic projections were defined by applying the Climate scenario shocks to the latest baseline projections underlying the Budget (source: Prometeia). This approach ensures consistency and comparability of results between the Budget (baseline) scenario and the Stress Test Core (ICAAP) scenario.
Results of the Climate Stress Test on Credit Risk
The exposures subject to the climatic stress test exercise are the same as those subject to the core ICAAP exercise and cover about 94% of the receivables due from customers portfolio (the perimeter underlying the calculation of the consolidated Npe ratio), ensuring high coverage. The impact of the climate scenario on the profit and loss account was estimated in terms of value adjustments and Npe ratio ("Non-Performing Exposure ratio"), using the same methodological infrastructure as in the ICAAP for suitable comparability of results. Compared to the ICAAP with the same severity as the EU-Wide stress test 2025, the climate scenario is less severe as also mentioned in the previous paragraph.
[E1.IRO-1 AR 12d]
Also in light of the above analyses, the Group aims to cultivate its competitive advantage by continuing to periodically monitor the evolution of the emissions financed in its portfolio and taking concrete action to meet its commitments, including by developing dedicated products and services to support our companies in their path of innovation and growth towards a transition to a low-emission economy.
In addition to this, the Bank has identified segments that are not compatible with the level of ESG risk and compliance with the Code of Ethics (i.e. Sensitive Segments Policy), and therefore excluded from any type of transactions and financing. Some of the most relevant segments in terms of combating climate change include:
•nuclear energy;
•tobacco cultivation and production;
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•production of controversial weapons (i.e. antipersonnel mines, cluster bombs and munitions, chemical, bacteriological or nuclear weapons, weapons of mass destruction banned by international treaties);
•coal mining;
•unconventional oil & gas 19.
[E4.IRO-1 DP 17a,c]
At the same time, with reference to biodiversity and ecosystems, the Bank has identified material impacts, risks and opportunities for its own operations only, in view of the assessments carried out with reference to biodiversity conservation activities implemented on the Bank's premises, especially given the presence of the International Sculpture Park.
[E4.IRO-1 DP 17b]
Furthermore, the analysis of the organisation's possible dependencies with respect to the topic at hand was carried out by adopting a qualitative approach, based on an assessment of the interactions between the company's activities and the natural environment. The survey conducted revealed no significant evidence of direct or indirect dependencies on biodiversity, ecosystems and related services, either within their operating sites or along the entire value chain.
[E4.IRO-1 DP 17c]
With regard to opportunities, the assessment process was carried out by the functions taking into consideration the potential development of initiatives and investments that favour the protection of ecosystems, biodiversity and land conservation within the Bank's infrastructure 20.
[E4.IRO-1 DP 19a]
It should be noted that the Group's offices are not located in or near biodiversity-sensitive areas.
[E2.IRO-1 DP 11a]
[E3.IRO-1 DP 8a]
[E5.IRO-1 DP 11a]
Following the double materiality assessment process described above, no material impacts, risks and opportunities were identified in the areas of pollution, water and marine resources and the circular economy.
[E2.IRO-1 DP 11b]
[E3.IRO-1 DP 8b]
[E5.IRO-1 DP 11b]
These assessments are based on an informed analysis conducted by the internal stakeholders involved, which took into account the Group's business model, core activities, and the impact and risks of these issues on portfolio counterparties.
Materiality of social and governance risks
In line with the process adopted for climate and environmental risks, in order to integrate an informed management of social and governance risks, Banca Ifis has adopted a process structured in three main steps,
19 Tar sands, shale/tight oil and gas, onshore/offshore oil and gas in the Arctic region, oil in the Sacred Cape area of the Amazon, unconventionally extracted liquefied natural gas.
20 It is specified that the Group’s sites are not within or near sensitive areas in terms of biodiversity.
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aimed at identifying and assessing the material risk factors for the Bank in its own operations and in the value chain (i.e. suppliers, customers).
The identification of the main drivers and factors relating to Social and Governance risks was carried out through an in-depth analysis of market literature (i.e. EBA Report on Environmental and Social Risks) and regulatory acts at European level (i.e. Corporate Sustainability Reporting Directive - CSRD, European Pillar of Social Rights and Social Taxonomy).
1.Development of the S&G risk factors taxonomy: the first phase consists of the creation of a S&G taxonomy, with the identification of the main risk drivers linked to three main categories:
•Politics and regulations;
•Market Sentiment;
•Environmental Risk.
2.Identification of transmission channels and time horizons: this phase involves the qualitative analysis of the propagation of risks and the definition of their time horizons, with particular attention to the main impacts on the Bank. The effects that these risk factors have on the Bank's traditional risks, including credit risk, operational risk, and reputational risk, are analysed.
3.Definition of Materiality Assessment: in the final stage, the quantitative assessment of the materiality of C&E risk factors is carried out, taking into account all identified risk types.
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Development of Taxonomy of Social and Governance Risk Factors

Risk type | Risk drivers | Description
Social Risks | Politics and Regulations | Legislation (local, European and international) on employee privacy, both internally and along the value chain (e.g. financed counterparties and suppliers) entails the need to integrate mitigation safeguards into their processes and operations, and require additional investments (e.g. in replacing suppliers or relocating production facilities). Moreover, the presence of business relations with companies that do not comply with regulations (local, European and international) on human rights, health and safety, and equal treatment, could expose the Group to reputational and operational risks (e.g. substitution of suppliers)
Market Sentiment | The absence of effective oversight on social issues (e.g. privacy of employees and other stakeholders) may generate the risk that customers and other relevant stakeholders (e.g. suppliers) will turn to competitors perceived as more responsible, resulting in reputational risks and loss of market share. In addition, misleading, non-transparent and customer-unfriendly conduct in the promotion or development of financial products and the presence of business relations with companies that do not oversee social issues (e.g. health and safety, equal treatment, privacy and the protection of human rights) can undermine the trust of customers and stakeholders, exposing the organisation to litigation, sanctions and reputational damage in addition to loss of competitiveness and the progressive erosion of market share
Environmental Risk | Physical climate/environmental risk: the increase in the frequency of extreme weather events and the degradation of ecosystem services could lead to:•significant financial impacts on already disadvantaged communities/populations, thus leading to a risk for businesses in terms of labour shortages and/or a drop in demand due to a worsening socio-economic environment•systems/data integrity failures resulting in the unavailability of data that could compromise the protection of personal information and generate operational, legal or reputational impacts Climate transition risk: Technological and regulatory changes to address climate change could have an impact on the labour market in certain sectors (e.g. high-emission), entailing the risk of amplifying social critical issues as well as a risk for companies in terms of labour shortages and/or a drop in demand due to a worsening socio-economic environment

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Risk type | Risk drivers | Description
Governance Risks | Politics and Regulations | Regulations (local, European and international) on sustainability reporting, transparency, integrity and good conduct, active or passive corrupt practices, money laundering within companies and protection of whistleblowers among their own workers and along the value chain imply the need to integrate mitigation measures into their own processes and operations (e.g. the activation of secure and confidential whistleblower channels), also involving significant investments. Furthermore, the absence of adequate safeguards may expose the company to the risk of receiving sanctions and generate potential legal and reputational impacts, potentially generating additional costs. In addition, a lack of attention to internal governance issues can lead to an increase in turnover, resulting in replacement costs and operational risks related to staff shortages
Market Sentiment | The absence of effective oversight on governance issues (e.g. corrupt practices) may generate the risk of compromising the trust of customers and other relevant stakeholders, including suppliers, entailing the risk that they will turn to competitors perceived as more responsible, with consequent reputational, operational, and supply relationship disruption risks and loss of market share.A shift in customer preferences towards more climate-friendly consumption could entail a risk with respect to supply relationships not aligned with sustainability criteria, generating a drop in demand and a shift towards competitors perceived as more sustainable, with consequent reputational, operational and market risks
Environmental Risk | Climate transition risk: technological and regulatory changes to address climate change could impact on:•complexity and number of documents and reports that an entity must report, for example on sustainability, for regulatory compliance purposes•relationships along the value chain leading to additional costs or the need to change supply relationships, e.g. by requiring more disclosure and commitments in terms of sustainability

Credit risk

Risk type | Transmission channel | Description | Time horizon
Social Risks | Business continuity and repayment capacity | The companies may be involved in human and labour rights litigation (e.g. exploitation of workers, child labour) that could jeopardise the continuity of the company's operations and its business model by jeopardising the Group's ability to repay its exposure | Medium-term

The "EBA Report on Environmental and Social Risks in the Context of the Prudential Framework" defines risk drivers as elements that can turn environmental and social factors into risks by having a negative financial impact on the economic and financial activities of counterparties and/or assets of institutions.
The credit risk arising from the deterioration of the credit quality of financed counterparties involved in litigation related to forced or child labour practices is therefore analysed.
The results of the analyses conducted have determined the non-materiality of the risk; nevertheless, the Group will continue to monitor these areas and will progressively integrate the information supervision on the 'social'
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positioning of counterparties, through the collection of punctual ESG data, in line with the available methodologies and market practices.
Operational risk

Risk type | Transmission channel | Description | Time horizon
Social Risks | Violations/non-compliance with internal policies | The Bank, in the presence of behaviour that does not comply with the principles of equal opportunities and inclusion, could be exposed to internal disputes, disciplinary sanctions and inefficiencies in the management of human resources, with consequent impacts on business operations and the organisational climate | Short-term
Non-compliance with regulations | The Bank could incur inspections, sanctions or litigation by the competent authorities in the event of proven violations of labour regulations and related labour law aspects, with potential economic, legal and reputational impacts | Short-term
Computer security breaches and systems unavailability | Breaches of IT security or systems unavailability, could lead to compromises in the availability and integrity of the Bank's data, with negative effects on business continuity, process efficiency and customer service delivery | Short-term
Business interruption / loss of data availability and integrity | Unauthorised access that can compromise confidentiality and data integrity, causing disruptions, operational slowdowns and unavailability of critical systems with direct impact on the Group's operations | Short-term
Inadequacy of commercial control and monitoring processes | Should the Bank's operational procedures and internal controls prove inadequate, it could incur non-compliant behaviour or unfair practices towards customers, leading to litigation, sanctions and economic losses with repercussions on the effectiveness of business processes | Short-term
Governance Risks | Non-compliance with regulations | Failure to comply with internal regulations or procedures when dealing with authorities may result in inspection findings, fines and litigation costs, with direct impacts on operational efficiency and compliance obligations | Short-term

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Reputational risk

Risk type | Transmission channel | Description | Time horizon
Social Risks | Violations/non-compliance with internal policies | Internal/external complaints or reports of discriminatory behaviour, harassment or non-compliance with equal opportunities principles could lead to reputational damage for the Bank and possible intervention by the competent authorities | Short-term
Negative stakeholder perception | The Bank, in the event of violations of regulations on labour issues, could suffer public disclosure of such failures, generating mistrust among customers, investors and public opinion, with a consequent undermining of its reputation and credibility on the market | Short-term
Computer security breaches and systems unavailability | Breaches of data confidentiality or the unavailability of systems, even due to cyber-attacks or inadequate internal processes, can compromise the image and perception of reliability by stakeholders, with negative effects on the Bank's reputation and thus its competitive positioning | Short-term
Loss of trust by customers and regulators | In the presence of incidents of unauthorised access to customers' personal data, the Bank could suffer a loss of trust by customers and regulators, accompanied by widespread media coverage, with potential reputational impacts and the launch of investigations by the competent authorities | Short-term
Breaches of the rules of conduct and fair market practices | The Bank may be subject to investigations or sanctions by supervisory authorities for conduct that does not comply with customer protection regulations or for unfair commercial practices (including debt collection activities), with consequent legal and reputational impacts | Short-term
Governance Risks | Non-compliance with regulations | The Bank may receive inspections by supervisory authorities and fines/sanctions in the event of proven violations of anti-corruption, anti-money laundering and anti-money laundering regulations issued by the European Union and its Member State, with reputational repercussions | Short-term

The main operational, reputational and IT risks analysed refer to:
•operational risk due to non-compliance with labour law aspects of the own workforce;
•risk of loss due to breach of confidentiality, failure of integrity/inadequacy of systems and data;
•risk of operational losses due to unauthorised access to customer data (Data Breach) by Banca Ifis in-house staff for personal gain
•reputational risk due to the detection of potential discrimination against employees;
•reputational risk due to failure to respect customers' interests, unfair market practices and lack of codes of conduct (including debt collection activities);
•reputational and compliance risk arising from conduct that does not comply with the principles of fairness, honesty and transparency in relations with the regulatory authorities with which the Group has institutional relations.
These risks find analogy in the sustainability issues of ESRS, in particular with regard to their own workforce (diversity, working conditions, confidentiality), consumers and/or end-users, and business conduct.
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The process carried out for the construction of the risk materiality framework in the social and governance spheres consisted of two main steps:
1.an analysis of operational and reputational risks was carried out, starting from the risk scenarios mapped in the Risk Self Assessment (RSA) as well as the scenarios and threats assessed in the ICT and Security risk analyses. Subsequently, these risks were brought under the list of risks defined within the scope of the double materiality assessment, consistent with the topics, sub-topics and sub-sub-topics of the ESRS Standards;
2.risk levels were converted, in order to harmonise the assessment scale, and material risks were defined according to the double materiality assessment.
Operational and reputational risks identified as material will be integrated into the new Materiality Assessment process and will be valued and assessed in the context of the DMA 2026. The Banca Ifis Group's Operational & IT Risk Team adopts a proactive approach to the control and monitoring of reputational risks, supporting responsible and socially aware management. Quarterly monitoring of key risk indicators allows for early detection of critical signals and strengthens the overall resilience of the Group. Indicators relating to:
•staff turnover: the monitoring of staff turnover, in line with ESG practices related to the social dimension, allows the quarterly trend of the Banca Ifis Group's workforce to be analysed, with details by individual legal entity. The analysis considers changes between consecutive quarters, distinguishing between new hirings and terminations;
•disputes: the monitoring of disputes represents a tool for identifying possible operational errors, non-compliant business practices or signs of reduced customer satisfaction, elements that may reflect on the reputational profile of the Banca Ifis Group. The monitoring returns the quarterly trend of the number of accepted versus settled objections, highlighting the contribution of each legal entity to the overall dynamics of the Group;
•Social Media, Press and Web: the monitoring of digital and media mentions of the Banca Ifis Group makes it possible to assess the evolution of external sentiment and the emergence of potential sources of reputational risk. The analysis considers the trend of mentions on social media over time, distinguishing in particular those with a negative connotation, and notes the number of unfavourable articles or content published in the press and on the web;
•Retail funding: the monitoring of retail funding data allows the early detection of possible reputational risks related to customer turnover or reductions in funding volumes. The monitoring includes key risk indicators, including the turnover rate of customers (operational and non-operational), the rate of change in funding volumes and the overall impact of turnover on total retail funding volume.
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2. Environment
2.1 Disclosures pursuant to Article 8 of Delegated Regulation (EU) 2020/852 (Taxonomy Regulation)
The European Taxonomy, as defined by the Regulation (EU) 2020/852 (EU Taxonomy Regulation), establishes a system for classifying economic activities as climate and environmentally sustainable by defining specific scientific and performance criteria for identifying such activities. According to the European Taxonomy, economic activities can be considered eligible or ineligible for the Taxonomy, based on the presence or absence of the description of such activities within the Delegated Regulation governing the criteria for defining an activity as environmentally sustainable. An eligible activity is defined as environmentally sustainable, i.e. aligned with the Taxonomy, if it complies with the technical screening criteria defined in the Delegated Regulation (EU) 2021/2139, as subsequently amended and supplemented, for at least one of the 6 environmental objectives provided for by the legislation, namely:
•climate change mitigation;
•climate change adaptation;
•sustainable use and protection of water and marine resources;
•transition to a circular economy;
•pollution prevention and control;
•protection and restoration of biodiversity and ecosystems.
In 2022, Article 8 of Regulation (EU) 2020/852 introduced at the European level a Taxonomy disclosure requirement aimed at companies and financial market participants required to publish a Sustainability Statement, as set forth in Directive (EU) 2022/2464 (CSRD). Consistent with regulatory requirements, as of FY 2023 the Banca Ifis Group has reported the portion of its on-balance sheet and off-balance sheet assets eligible and aligned to the EU Taxonomy.
Delegated Regulation (EU) 2021/2178 21 defines the methodology and indicators for reporting required under the Taxonomy Regulation. Article 4 of the aforementioned Regulation provides that credit institutions shall, from FY 2023 onwards, make the required disclosures on the basis of the specifications in Annex V and that these shall be presented in tabular form using the templates in Annex VI.
In January 2026, following a simplification process that started in 2025, the European Commission published the new Delegated Regulation (EU) 2026/73, which supplements and amends, amongst others, Delegated Regulation (EU) 2021/2178, in particular, making numerous simplifications to the disclosures that entities must publish under the EU Taxonomy and a number of revisions to the KPI calculation logic, with the aim of reducing the administrative burden for European companies, while ensuring maximum transparency and clarity in sustainability reporting. The new Regulation, which is applicable as of 1 January 2026, allows financial companies to determine the reporting methods to be adopted for FY 2025. In particular, the Regulation provides the option of using three different reporting options:
•the first option is to report on the basis of the templates and rules already applied for FY 2024 reporting;
•the second option is to adopt the new reporting modalities regulated under Delegated Regulation (EU) 2021/2178 as revised by Delegated Regulation (EU) 2026/73;
•while the third option allows the KPIs of Taxonomy not to be reported, instead reporting a specific statement within the Management Report.
The Banca Ifis Group has adopted the new reporting methods as revised by Delegated Regulation (EU) 2026/73 with reference to the 2025 reporting period, also in view of what the European Securities and Markets Authority
21 Delegated Regulation (EU) 2021/2178 as supplemented by Delegated Regulation (EU) 2022/1214, Delegated Regulation (EU) 2023/2486 and Delegated Regulation (EU) 2026/73.
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(ESMA) highlighted in its "Common Enforcement Priorities"22 on 2025 reporting: Indeed, ESMA indicates that companies 'are encouraged to apply the revised rules to their disclosures in 2026 (financial year 2025)'.
The values reported within the Reporting Templates referring to FY 2025 and the key performance indicators are, therefore, not precisely comparable with those reported with reference to FY 2024.
The regulation specifically envisages that the key performance indicators (hereinafter also KPIs) required for credit institutions shall be:
•the Green Asset Ratio (GAR), which indicates the ratio of the credit institution's assets that finance economic activities aligned with the taxonomy or are invested in such activities to total covered assets;
•KPIs for off-balance sheet exposures, which indicate the share of economic activities aligned with the taxonomy of assets underlying the off-balance sheet exposures. With reference to FY 2025 23, this disclosure is required in relation to:
–financial guarantees supporting loans and advances and other corporate debt instruments (FinGuar KPI);
–assets under management (AuM KPI).
Credit institutions shall represent key performance indicators in tabular format, using the templates in Annex VI to Delegated Regulation (EU) 2021/2178, i.e:
•Template 0: Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation;
•Template 1 - Assets for the calculation of GAR: the template contains evidence of stock and flow values of on-balance-sheet and off-balance-sheet exposures as at 31/12/2025, showing eligible exposures aligned with environmental objectives;
•Template 2 - GAR: Sector information: the model contains evidence of exposures to the top 10 Taxonomy-eligible Sectors, calculated as an aggregate of all exposures to a given sector, identified by NACE code. The template also requires companies to report exposures to nuclear24 and fossil gas25assets, including eligibility and alignment percentages to these sectors;
•Template 3 - KPI GAR Stock: the template contains evidence of GAR values on the stock of loans and advances, debt securities and equity instruments calculated from the information in Template 1;
•Template 4 - KPI GAR (Flow): the template contains evidence of GAR values on the flow of loans and advances, debt securities and equity instruments generated during the year, calculated from the information in Template 1;
•Template 5 - KPIs off-balance sheet exposures: the table contains evidence of the Stock and Flow values for the FinGuar KPI and the AuM KPI, respectively, for the KPIs on financial guarantees and assets under management calculated from the information in Template 1.
Each template is published in two versions: using as weighting factors for corporate exposures the respective eligibility and alignment KPIs on Capex (capital expenditure) and Turnover (turnover) reported by counterparties subject to CSRD and by those who have chosen voluntarily to publish a sustainability statement.
The new Delegated Regulation (EU) 2026/73, whose new reporting modalities have been adopted by the Group as of FY 2025, has removed the requirement for companies to prepare a dedicated disclosure relating to exposures to the nuclear and fossil gas sectors, providing that information on the eligibility/alignment of exposures to these
22 ESMA, European common enforcement priorities for 2025 corporate reporting.
23 The trading book KPI and the fees and commissions KPI will have to be published by credit institutions as of 1 January 2028.
24 Referred to in Annexes I and II, Sections 4.26, 4.27 and 4.28 of Delegated Regulation (EU) 2021/2139.
25 Referred to in Annexes I and II, Sections 4.29, 4.30 and 4.31 of Delegated Regulation (EU) 2021/2139.
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sectors should be reported within Model 2. This point represents a novelty compared to the financial years 2023 and 2024, during which companies were required to include these sectors within additional dedicated models.
Approach adopted for the identification of eligible and aligned activities
The disclosure for the year 2025 is based on the gross carrying amount of on-balance sheet and off-balance sheet assets as at 31/12/2025, and refers to the prudential consolidation perimeter, as indicated by the regulations 26. Starting from the year 2025, the Banca Ifis Group also includes the illimity Group and Fürstenberg SIM (formerly Euclidea SIM) in its prudential consolidation perimeter. With reference to the illimity Group, it should be noted that the latter will also publish the information according to the Taxonomy in its Sustainability Statement.
The Banca Ifis Group, for FY 2025, in accordance with the availability of counterparty data, reports information using reported data, as required by regulations.
In assessing the eligibility and alignment of exposures, the Group included the following assets in its analysis:
•Loans and advances to businesses
For the assessment of the taxonomy-aligned, eligible and non-taxonomy-eligible exposures to 27 financial and non-financial enterprises subject to CSRD obligations and to those reporting voluntarily, the Group used taxonomy data published by the counterparties in relation to the 2024 reporting year, provided by external infoproviders.
In particular, the following were used:
–for non-financial corporations and credit institutions: the KPIs of eligibility and alignment, in terms of capital expenditure (Capex) and in terms of turnover (Turnover), towards the six environmental objectives defined by the Taxonomy [climate change mitigation (CCM), climate change adaptation (CCA), sustainable use and protection of water and marine resources (WTR), transition to a circular economy (CE), pollution prevention and control (PPC), protection and restoration of biodiversity and ecosystems (BIO)];
–for insurance companies: the eligibility and alignment KPIs published with reference to underwriting and investment activity, detailing the contribution to the 6 environmental objectives 28;
–for companies operating in the nuclear and fossil gas sectors, eligibility and alignment data published in the dedicated disclosures required by the regulations were retrieved.
•Debt securities (including green bonds) and equity instruments
For the purpose of calculating the GAR and KPI of AuM, debt securities for which the use of proceeds is known are included among other exposures. In particular, the regulations stipulate that bond issues designated as green bonds by issuers are to be assessed according to the level of alignment with the
26 Annex V of Delegated Regulation (EU) 2021/2178 requires credit institutions to report relevant KPIs based on the scope of their prudential consolidation determined in accordance with Title II, Chapter 2, Section 2 of Regulation (EU) No. 575/2013.
27 The reference perimeter is made up of Italian-based companies included in the Consob list of entities that have published a Sustainability Statement (or Non-Financial Statement) as at 31 December 2024 (latest update available) and the Group's customers based in Europe, for which the Bank has an exposure of more than 100.000 Euro, who have published a Sustainability Statement (or Non-Financial Statement).
28 In order to consider both businesses in which the insurance companies are active, the Banca Ifis Group decided, just like last year, to use an arithmetic average of the KPIs provided by the counterparties. This approach was adopted in line with the indications given in Commission Communication C/2024/6691 of 8 November 2024.
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taxonomy of economic activities or projects financed, based on specific information provided by the issuer.
Given the lack of precise information provided by the issuers with reference to the alignment quotas to the Taxonomy, the Bank, consistent with previous reporting exercises, assesses the eligibility and alignment of all bonds in the portfolio, including those that could be associated with the financing of green projects, considering the punctual KPIs related to the Taxonomy published by the counterparties in relation to the 2024 reporting year and provided by external infoprovider (see what is indicated for exposures related to "Loans and advances to businesses"). The same logic is applied in assessing the eligibility and matching of equity instruments in the portfolio.
With regard to the calculation of the KPI for AuM, it should be noted that current regulations require institutions to analyse the underlying investments through the so-called look-through of the fund itself. To ensure full consistency with regulatory requirements, the Bank uses a leading market data provider to obtain the necessary information for the look-through of the funds included in its management products.
•Loans and advances to households collateralised by residential immovable property
With regard to exposures associated with loans to private customers (referred to as “households”) for the purchase and ownership of buildings, the Banca Ifis Group analysed its loans portfolio by assessing exposure, date of disbursement, residual life and classification of the outstanding relationship. On the basis of this analysis, the Bank decided to retrieve the information of the energy certifications of the loans disbursed to employees, through an internal campaign, and to exclude residential mortgages in run-off and non-performing loans classified as bad loans, as they were maturing mortgages, with an issue date that was not recent and for which the retrieval of the information was not material for the purposes of the taxonomy alignment analysis.
In order to assess the alignment of exposures (i.e. employee loans) with the technical screening criteria for the Climate Change Mitigation Objective, set forth in Delegated Regulation (EU) 2021/2139 29, a three-step distinctive process was adopted:
–firstly, a check was made on the year of construction of the buildings used as collateral for the loans granted by the Bank, distinguishing between buildings constructed before and after 31 December 2020;
–the Bank then carried out an audit to verify compliance with the substantial contribution criteria 30:
▪in the case of loans collateralised by residential immovable property constructed before 31 December 2020, the presence of an energy efficiency class of at least "A" or of a Building Energy Performance (Primary Energy Demand, PED) falling within the TOP 15% of the climatic zone to which it belongs.
▪in the case of loans collateralised by residential immovable property constructed after 31 December 2020, it was verified that the PED was below the threshold set for Nearly Zero-Energy Building (NZEB) requirements of the climate zone to which they belong, reduced by 10%;
–subsequently, for those properties meeting the above substantial contribution criteria, the Bank verified that the financed properties do not cause significant harm (compliance with Do No Significant Harm, DNSH criteria) to the Climate Change Adaptation objective. To do so, a further
29 See Delegated Regulation (EU) 2021/2139, Annex I, point "7.7. Acquisition and ownership of buildings”.
30 Substantial contribution assessments were performed by associating each province with the corresponding Climate Zone and verifying the PED and NZEB thresholds (threshold source: Report CTI & CRIF “Percentage-distribution-of-primary-energy-Ep-values-in-the-Italian-national-building-stock”).
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examination of the physical risk associated with the province where the financed properties are located was carried out. This assessment was conducted through the use of the physical climate risk assessment template already in use by the Bank's Risk Management structure, which weights risks on the basis of the business sector considered, with particular reference to the "Real Estate Activities" sector. For taxonomic purposes, properties with a physical risk other than "High" and "Very High" were considered aligned according to the template developed internally.
•Retail – Credits consumptions for the purchase of motor vehicles (Ifis leasing)
With reference to loans granted to households for the purchase of motor vehicles, the Bank carried out a series of checks during 2024 to identify the share of EU Taxonomy eligible and aligned exposures, based on the requirements of the reference regulations 31, by analysing the information present within the Bank's systems.
In particular, an audit was carried out to verify compliance with the substantial contribution criteria. This verification revealed the lack of availability of the necessary information for the verification of the Do Not Significant Harm (DNSH) criterion. For this reason, the Banca Ifis Group only publishes the share of exposures that is Taxonomy eligible.
31 See Delegated Regulation 2021/2139, Annex I, point "6.5 Transport by motorbikes, passenger cars and light commercial vehicles".
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Results of applicable KPIs (Template 0)
Below are reported the main results for the Banca Ifis Group's share of exposures deriving from taxonomy aligned economic activities in terms of stock and flow as at 31/12/2025:
Template 0 - Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation - FY 2025 (figures in monetary value are expressed in million Euro)

Disclosure reference date31.12.2025 |  |  |  |  |  |  |
| Total exposures to taxonomy aligned activities (EUR) | KPI(1)(%) | KPI(2)(%) | % coverage (over total assets) (3) (%) | Non-assessed exposures (% of covered assets) (4)(%) | Non-assessed exposures (% of covered assets)(5) (%)
Turnover | Capex | Turnover | Capex |  | Turnover | Capex
Main KPI | Green Asset Ratio (GAR) stock | 188,7 | 278,5 | 4,8% | 7,1% | 17,6% | - | -
| Total exposures to taxonomy aligned activities (EUR) | KPI (6)(%) | KPI (7)(%) | % coverage (of total assets) (8)(%) | Non-assessed exposures (% of covered assets) (9)(%) | Non-assessed exposures (% of covered assets) (10) (%)
Turnover | Capex | Turnover | Capex |  | Turnover | Capex
Additional KPIs | GAR (flow) | 534,5 | 781,1 | 1,7% | 2,4% | 62,8% | - | -
Trading book |  |  |  |  |  |  |
Financial guarantees | - | - | - | - | - | - | -
Assets under management | 5,1 | 8,0 | 6,2% | 9,6% | 7,8% | - | -
Fees and commisions income(11) |  |  |  |  |  |  |

(1) Based on the Turnover KPI of the counterparty.
(2) Based on the CapEx KPI of the counterparty.
(3) % of assets covered by the KPI over banks’ total assets.
(4) In accordance with Article 7(8) of Delegated Regulation 2021/2178.
(5) In accordance with Article 7(8) of Delegated Regulation 2021/2178.
(6) Based on the Turnover KPI of the counterparty.
(7) Based on the CapEx KPI of the counterparty.
(8) % of assets covered by the KPI over banks’ total assets.
(9) In accordance with Article 7(8) of Delegated Regulation 2021/2178.
(10) In accordance with Article 7(8) of Delegated Regulation 2021/2178.
(11) Fee and commission income from services other than lending and AuM.
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Template 0 - Summary of the KPIs that credit institutions must report pursuant to Article 8 of the Taxonomy Regulation - FY 2024

Main KPIs | Total environmentally sustainable assets | KPIs based on Turnover | KPIs based on Capex | % coverage (of total assets) | % of assets excluded from the numerator of the GAR (Article 7 (2) and (3) and Section 1.1.2. of Annex V) | % of assets excluded from the GAR denominator (Article 7 (1)) and Section 1.2.4 of Annex V)
Green Asset Ratio (GAR) stock | Environmentally sustainable activities based on:Turnover: 100,7 million EUR Capex: 147,8 million EUR | 0,9% | 1,3% | 81,2% | 56,3% | 18,8%

Additional KPIs | Total environmentally sustainable assets | KPIs based on Turnover | KPIs based on Capex | % coverage (of total assets) (1) | % of assets excluded from the numerator of the GAR (Article 7 (2) and (3) and Section 1.1.2. of Annex V) | % of assets excluded from the GAR denominator (Article 7 (1)) and Section 1.2.4 of Annex V)
GAR (flow) | Environmentally sustainable activities based on:Turnover: 295,5 million EUR Capex: 560,5 million EUR | 0,6% | 1,2% | 96,4% | 67,5% | 3,6%
Trading book |  |  |  |  |  |
Financial guarantees |  |  |  |  |  |
Assets under management |  |  |  |  |  |
Fees and commisions income (2) |  |  |  |  |  |

(1) The values were calculated using the Total Covered Asset (TCA) as the flow numerator and the Total Asset of the Banca Ifis Group (TA) as the denominator in terms of flow, relative to exposures for the reporting year.
(2) Fee and commission income from services other than loans and financial assets under management, this KPI, together with the Trading Book KPI, will be reported by Banca Ifis starting from FY 2027 and therefore subject to publication from FY 2028.
The results, deriving from the application of the regulations described above, are strongly impacted by the nature of the Banca Ifis Group's business, which is specialised and diversified in financial services for Small and Medium Enterprises (SMEs) and with a low value of specialised exposures to households (i.e. loans and advances to individuals for the purchase and ownership of real estate).
The Banca Ifis Group, for the purposes of calculating the Green Asset Ratio (GAR), has considered GAR assets of 3.945,5 million Euro (17,6% of total assets), thus excluding from total assets the exposures in central governments, central banks, supranational issuers, the trading book, undertakings and entities not subject to the CSRD, derivatives, on demand interbank loans, cash and cash equivalents and other categories of assets (e.g. goodwill, commodities). The main results for the share of exposures arising from economic activities aligned with the Taxonomy in terms of stock as at 31.12.2025 is:
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•188,7 million Euro, which corresponds to 4,8% of the GAR assets, using turnover as a weighting factor for exposures;
•278,5 million Euro, which corresponds to 7,1% of the GAR assets, using capex as a weighting factor for exposures.
Total GAR assets (the denominator of the KPIs above) includes only exposures to corporates in the CSRD perimeter (or that publish voluntary reporting), exposures to households for residential immovable property purchase/renovation and motor vehicle purchases, loans to local governments and collateral relating to residential and commercial property, and therefore excludes exposures to undertakings and entities not subject to the CSRD, derivatives, on demand interbank loans, cash and cash equivalents and other asset classes (e.g. goodwill, commodities) included in previous years.
Furthermore, the FY 2025 results were also affected by the acquisitions of the illimity Group and Fürstenberg SIM.
In order to allow a comparison between the GAR values for FY 2025 and those for the 2024 financial year, the GAR 2024 value is shown below, referring to the previous year's perimeter, calculated according to the new calculation logics adopted as of 2025, which envisage the inclusion, for the Banca Ifis Group, only of exposures to companies that prepare a sustainability report and loans for the purchase/renovation of residential immovable property and for the purchase of motor vehicles to households:
•100,7 million Euro, which corresponds to 2,9% of GAR assets, using Turnover as the exposure weight (the value reported in FY 2024, using total covered assets as the denominator, was 0,9%);
•147,8 million Euro, which corresponds to 4,2% of GAR assets, using Capex as the exposure weight (the value reported in FY 2024, using total covered assets as the denominator, was 1,3%).
Specifically, the bulk of the Banca Ifis Group's aligned assets, which constitute the numerator of the GAR and, with the new calculation methodology, also the denominator of the KPI, refer to general purpose loans to corporates, which constitute the core business of the Banca Ifis Group.
With regard to off-balance sheet assets, there are no exposures aligned with the Taxonomy associated with Financial Guarantees as there are no guarantees granted to companies subject to CSRD. Unlike in previous years, the indicator of exposures related to Assets under Management is instead applicable for the Banca Ifis Group, given the entry of the illimity Group and Fürstenberg SIM, which provide asset management services, into the Group in 2025, which contribute to the calculation of the AuM KPI.
The Assets Under Management (AuM KPI) in terms of stock for FY 2025 is:
•5,1 million Euro, which corresponds to 6,2% of assets under management, using Turnover as a weighting factor;
•8,0 million Euro, corresponding to 9,6% of assets under management, using Capex as a weighting factor.
The key performance indicators required by Article 8 of the EU Taxonomy Regulation in tabular format, using the templates in Annex VI of Delegated Regulation (EU) 2021/2178 are reported in the section “Other sustainability information”.
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2.2 E1 - Climate change
2.2.1 Transition Plan
[E1-1 DP 14]
Aware of its role and contribution in sustainable development processes and its commitments to decarbonising its portfolio, the Group aims to achieve sustainability targets through a dedicated Transition Plan, defined in 2024. In line with good market practice and the goal of limiting global warming to 1,5°, the Bank has developed a Climate Change Transition Plan in order to achieve its targets for the most relevant sectors, also integrating initiatives with specific business opportunities and related monitoring.
[E1-1 DP 16a]
Banca Ifis has defined a structured monitoring process of the financed issues and the definition of specific targets related to the highest impact sectors, with particular reference to automotive (Auto Leasing, Truck Leasing, Automotive Manufacturers and Distributors 32), which accounts for more than 80% of the financed exposures and emissions (in reference to the most significant segments). These targets are based on scientifically validated decarbonisation scenarios that comply with international standards.
In this context, the European automotive industry, including the Italian one, is involved in a complex phase of transformation, characterised by intensifying regulatory obligations related to decarbonisation, a demand for electric vehicles (EVs) in non-linear evolution, and an increasing exposure to competitive risks and industrial reconversion along the value chain. According to the latest data from ACEA 33, battery electric car (BEV) registrations in the European Union reached 1,66 million Euro units in the period January-November 2025, representing a market share of 16,9%, up from 13,4% in the same period in 2024. This dynamic is part of a progressively evolving regulatory framework characterised by the implementation of European regulations on decarbonisation, circularity and raw material supply, including the Euro 7 Regulation, the extension of ETS 2 to transport and manufacturing, the Carbon Border Adjustment Mechanism (CBAM) for carbon-intensive materials, the Battery Regulation and the Critical Raw Materials Act (CRMA). Although these measures may in the short term lead to a curbing of demand and an increase in conversion costs for producers, in the medium term they are intended to foster competitiveness, technological innovation and the development of circular models.
In 2025, there was also an increase in registrations of plug-in hybrid vehicles (PHEVs) in the European Union, which reached around 0,9 million Euro units in the January-November period, with a market share of around 9%. Despite growth in absolute terms, PHEVs continue to account for a smaller share than other electrified fuels, in a context characterised by a progressive reallocation of demand towards fully electric vehicles (BEVs). In Italy, despite an increase in registrations by 2025, PHEVs maintain an overall low penetration compared to the European average.
This development in demand is accompanied by an increasing presence of Chinese-made electric vehicles in the European market, which is a structural factor of competitive pressure for local manufacturers. According to Transport & Environment (T&E)34, Chinese-origin BEVs account for around a quarter of total EV sales in Europe, a share that in 2024 has been growing strongly compared to previous years and will continue to be high in 2025, partly due to the expansion of the offer of cost- and technology-competitive models. This trend underlines the need for Europe to develop an in-house production chain, in particular in the battery sector, to reduce import dependency and strengthen the competitiveness of the European automotive industry, also in the light of the
32 Portfolio composition as at 31 March 2022, latest available emission data.
33 https://www.acea.auto/pc-registrations/new-car-registrations-1-4-in-november-2025-year-to-date-battery-electric-16-9-market-share/
34 https://www.transportenvironment.org/te-italia/articles/un-veicolo-elettrico-su-quattro-venduto-nel-2024-in-europa-sara-prodotto-in-cina
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evolving regulatory framework introducing increasing requirements on sustainable sourcing, traceability, recycled content and security of supply.
In response to the challenges related to the transition of the automotive sector, European manufacturers are called upon to strengthen their technological innovation capacities in electric vehicles, to contribute to the development and deployment of recharging infrastructures and to define industrial strategies and competitive positioning in a context of increasing international competition. In a parallel fashion, the strengthening of the European battery supply chain is of strategic importance: according to T&E 35, the European Union has the potential to produce 56% of its cathode demand by 2030, although current production still remains limited and highly dependent on the scalability of investments and the continuity of support policies.
To achieve these goals, it is crucial that Europe and Italy invest in the development of a local battery production chain and the expansion of charging infrastructure. Furthermore, the implementation of supportive policies, such as incentives for the purchase of electric vehicles and investment in infrastructure, will be crucial to stimulate demand and support the local automotive industry.
[E1-1 DP 16b]
With reference to the GHG emission reduction targets (see 2.2 E1 - Climate Change, section 2.2.3 Targets) and climate change mitigation actions (see 2 E1 - Climate Change, section 2.2.2 Energy, Adaptation and Climate Change Mitigation), an explanation of the identified decarbonisation levers and main planned actions, divided between financed GHG emissions and own GHG emissions, is provided below.
Financed GHG emissions - Product and service portfolio
Car leasing: Banca Ifis has set ambitious targets for the car leasing sector with a target to reduce financed emissions from 130 gCO 2 e/km in 2019 to 85gCO 2 e/km by 2030. Leasing contracts for electric- or hybrid-powered vehicles signed in 2025 account for about 30% of the car sector.
The Bank also carries out prospective analyses on the portfolio's counterparties, assessing the possible evolution of the vehicle mix and the roll-overs of the main strategic manufacturers for the Group, both in terms of volumes and for meeting sustainable targets. These analyses make it possible to monitor the alignment to the defined targets, also considering possible portfolio recompositions or regulatory adjustments.
The Group has also forged strong partnerships with major and strategically important companies in the sector, including manufacturers specialising in full electric vehicles, promoted initiatives dedicated to these products and launched awareness and promotional campaigns via social channels and the company website. Finally, there are volume-related incentives for these products (e.g., photovoltaics, recharging systems, full electric cars and e-bikes) and awareness-raising activities on ESG topics promoted by the sales network, in support of the Group's sustainable mobility strategy.
Truck leasing: Banca Ifis aims to reduce financed emissions by 30% from 52 gCO 2 e/tkm in 2020 36 to 37 gCO 2 e/tkm by 2030. In particular, commercial vehicles and semi-trailers play a central role in achieving the Group's targets, as they contribute significantly to the economic result, accounting for about 30% of the volumes of the Auto Leasing segment. The truck leasing portfolio also shows a shift towards CNG engines, which offer lower emissions than traditional diesel engines, confirming the Bank's commitment to more sustainable mobility solutions.
35 https://www.transportenvironment.org/te-italia/articles/batterie-per-auto-elettriche-quelle-made-in-eu-potrebbero-essere-fino-al-60-meno-inquinanti-di-quelle-cinesi
36 Emission data to 2020 for the application of EU Regulation 2019/1242 on emission targets for heavy duty vehicles.
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Automotive Manufacturers and Distributors sector: Banca Ifis aims to reduce its financed automotive emissions from 153 gCO 2 e/km in 2019 to 85 gCO 2 e/km by 2030. This target is in line with the targets set at European level and confirms the Bank's commitment to environmental sustainability in the automotive sector.
To this end, the Group has integrated ESG criteria into its credit assessment process to analyse and classify sectors according to the environmental, social and governance risks associated with their activities, enabling a targeted assessment of the sustainability of credit-steering counterparties. Based on the analysis carried out in this context, an approval process based on specific rules is also envisaged, including possible progressive approval mechanisms.
Own GHG emissions - Sustainable mobility
Renewal of company fleets
The Banca Ifis Group continued its collaboration with Stellantis for the renewal of company fleets, with the aim of making more than 50% of vehicles hybrid or electric by 2025.
During the year, the Group has already surpassed this target, reaching 73,5% of hybrid, plug-in hybrid, mild hybrid or fully electric vehicles by 31 December 2025. Of these, 7,0% are fully electric vehicles, while 100% of new orders are hybrid or electric vehicles.
In support of this commitment, the new 'E-mobility' initiative was launched in 2025, with the aim of promoting sustainable mobility and raising awareness of the Bank's commitment to the environment. The initiative provides branded full-electric vehicles for Ifis People to use during working hours for company commuting.
Devices for electric charging of cars
The Group continued to develop the project for the installation of electric charging devices for passenger cars. This project aims to increase the number of existing charging points at major company locations by 2025.
Own GHG emissions - Use of energy from renewable sources and energy efficiency
Purchase of electricity from renewable sources: since 2021, the Group has been mainly using green energy from renewable sources (e.g. wind, photovoltaic, geothermal, hydroelectric, biogas, biomass) for the supply of all the main offices and branches in Italy.
Ordinary and extraordinary renovations and upgrades of premises: the Group has been committed for several years to plant design according to the best available energy efficiency technologies and to the procurement of renewable electricity from the grid or self-produced.
Development of solutions to self-produce energy from renewable sources: in November 2024, a photovoltaic system was activated, with a capacity of approximately 180 kWp, on the roof of the Mondovì office building with the aim of reducing the direct impact of the building itself by around one third of consumption.
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Other initiatives to support decarbonisation
New products for sustainable mobility: in 2023, Banca Ifis launched the 'e-bike rental' product to promote sustainable mobility and support active tourism. This initiative is mainly aimed at small and medium-sized enterprises in the tourism and hospitality sector that want to equip themselves with fleets of electric bicycles to improve their offer. This product is also available to private customers from August 2025. The Bank also extended its range of products related to sustainable mobility by introducing leasing and rental options for electric quadricycles, in line with the Group's sustainability strategy.
Supporting decarbonisation and SMEs: the Bank signed two agreements with the European Investment Bank (EIB) in 2021 and 2024 to make available, respectively, a ceiling of 100 million Euro in loans to support SME projects with an environmental focus and 300 million Euro to support innovative investments. More specifically, the 2024 agreement is the first signed by the EIB with an Italian bank entirely dedicated to promoting innovation initiatives under the “National 4.0 Transition Plan”.
In 2025, this collaboration was further strengthened with the introduction of a new credit line to support Italian pharmacies, with a focus on female entrepreneurs. Under the agreement, the EIB is to make 100 million Euro available to Banca Ifis, divided into two contracts of 50 million Euro each, to create a credit line at favourable interest rates. Banca Ifis, in turn, will guarantee the disbursement of an additional ceiling limit of the same amount, bringing the total limit to 200 million Euro. Of these, at least 30% (over 60 million Euro) will be allocated to support female entrepreneurship in Italian pharmacies.
In a parallel fashion, the Group has developed a wide range of services and products including MCC Mortgages and Leasing with Sabatini Green facilitation, to finance brand new machinery, plant and equipment with low environmental impact, and Mortgages with SACE Green guarantee.
Special attention has also been paid to leasing photovoltaic systems and charging stations for electric vehicles, supporting companies in their energy transition and improving their environmental efficiency through removable capital goods.
Finally, the Group has developed an agreement with an external partner to offer ESG training for SMEs within the 'myIfis' platform in order to support them in their sustainable transition path.
[E1-1 DP 16h]
Sustainability is integrated into the Bank's business model and is a crucial element for development, ensuring compatibility between business activities and environmental needs. In particular, the Group has formalised its ESG commitments within the 2022-2024 D.O.E.S. (Digital, Open, Efficient, Sustainable) Business Plan concluded with the achievement of all set ESG targets. In 2025, with particular reference to climate and environmental issues, the monitoring of these issues continued through the implementation of projects to comply with the Bank of Italy's 'Supervisory Expectations on Climate and Environmental Risks'. The targets deriving from the strategic choices defined by the Group are declined in decarbonisation initiatives and strategies described with reference to E1-1 DP 16b and will also be considered in the elaboration of the next Business Plan, making climate change issues central.
[E1-1 DP 16i]
The Transition Plan was approved by the Board of Directors in September 2024, after being shared with the Sustainability Committee that same month.
[E1-1 DP 16j]
Banca Ifis has established a structured monitoring process, with a particular focus on the car leasing sector, to ensure timely and continuous monitoring of progress against set sustainability targets and implemented initiatives. This system makes it possible to analyse the performance of financed issues and assess the impact of the policies adopted, with the aim of keeping the Group's operations aligned with its stated strategic targets.
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At least annually, the data and analyses are also presented to the Sustainability Committee with a view to strategic portfolio steering. In the event of significant deviations from targets or failure to achieve expected performance, the Committee assumes a key role in developing corrective actions.
[E1-1 DP 16g]
Banca Ifis does not fall into any of the categories foreseen by European legislation for exclusion from the EU-Paris Aligned Benchmark (EU PAB).
The illimity Group has also adopted its own specific medium- to long-term transition plan (referred to as the “Climate Strategy”), aimed at curbing its direct emissions, zeroing net indirect emissions from purchased and consumed energy production (Scope 2), promoting the development of sustainable finance and decarbonisation of high-emission sectors in its current and prospective portfolio.
2.2.2 Energy, adaptation and mitigation of climate change
Material impacts, risks and opportunities
Environmental protection and compatibility between economic initiative and ecological needs are fundamental dimensions of the Banca Ifis Group's attention to sustainability.
Particularly focused on reducing its environmental impact, the Group adopts solutions to improve energy efficiency both inside and outside the organisation. It also strives to consolidate a culture of respect for the environment, encouraging individual and collective responsibility and encouraging the adoption of practices in line with the principles of sustainability.
[E1.SBM-3 DP 48a]
Material climate change risks are reported in the General Disclosures section (see 1.1 ESRS 2 - General Disclosures, Section 1.1.4 Managing Impacts, Risks and Opportunities: Double materiality assessment, Assessment and determination of material IROs, Materiality of climate and environmental risks).
[E1.SBM-3 DP 18]
Credit institutions are exposed to climate-related risks and opportunities mainly through lending activities, as well as through other financial intermediation activities and proprietary investment operations. As financial intermediaries, banks may assume significant climate-related risks through their transactions with their customers and counterparties.
It is essential that banks disclose potential climate-related issues that could have a financial impact on the organisation by providing, as set out below, a description of the methods used to determine the main climate-related risks and opportunities for the Banca Ifis Group.
Risk type
As mentioned in the chapter on General Disclosures (see 1.1 ESRS 2 - General Disclosures, section 1.1.4 Managing Impacts, Risks and Opportunities: double materiality assessment), in determining its sustainability strategy, the Group adopted a structured approach to identify the impacts of climate and environmental risk factors. In defining the taxonomy of these risks, the main risk drivers associated with the climate and environment and their transmission channels were analysed within the traditional risk framework of credit institutions, depending on the Group's activities and the time horizon of propagation of the effects. Finally, the last step involved the materiality assessment of climate and environmental risk factors through the definition of the Materiality Assessment, in order to understand the Bank's degree of exposure and possible monitoring and mitigation strategies for these risks.
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As recurrently represented in the literature, the activity is preparatory to the identification of climate and environmental risk drivers, which are grouped into two macro-categories:
•transition risks: risks associated with the transition to a low-carbon economy that is more environmentally sustainable;
•physical risks: risks associated with extreme climatic phenomena (acute) or progressive environmental degradation (chronic).
The table below describes the main categories and respective risk drivers associated with physical and transitional climate and environmental risks and their impact time horizon.

Risk type | Risk drivers | Time horizon (1)
Climate transition risks | Regulatory | Global policy (e.g. Paris Agreement) can limit activities and segments with a high level of emissions and environmental risk. As an example, the regulation on Energy Performance Certificates may impact the value of portfolio properties | MT
Technological | The transition to low-impact technologies requires a higher cost for companies to retrofit plants and production facilities, potentially impacting the business model and the ability to generate revenues and profits | MT
Market | A shift in consumer preferences towards more climate-friendly consumption potentially impacts all mayor sectors associated with high energy consumption and/or high levels of pollution or operators whose practices do not respect the diffused ESG sensitivity (e.g. reduced packaging) | MT
Climate physical risk | Acute | Heat waves, fires, floods, droughts, landslides, earthquakes | ST
Chronic | Extreme temperatures, soil erosion, water stress, sea level rise | MT/LT
Environmental transition risks | Technological | Policies to reduce environmental impact and the transition to environmentally friendly technologies and products can affect companies with high levels of pollutant emissions, inefficient waste and resource (including water) management | MT
Regulatory | Green policies and technologies, together with a growing market awareness of environmental damage, can influence activities that negatively impact ecosystems and biodiversity | MT
Market | The adoption of advanced technologies, the growing demand for environmentally sustainable products and policies for efficient water management can affect water-intensive companies, reducing productivity in specific sectors | MT
Environmental physical risks | Acute and chronic | Risks related to extreme phenomena (acute risks) or gradual long-term changes (chronic risks) in environmental resources are caused by pollution, water scarcity and loss of biodiversity | ST/MT/LT

(1) Short-term (ST): 1-3 years, Medium-term (MT): 3-5 years, Long-term (LT): >5 years.
Based on the described drivers, the Bank has therefore assessed the degree of interconnectedness of climate and environmental risks by analysing the main transmission channels and identified the impacts generated on the traditional risks of the Group's business.
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With regard to the identification of risks, the Bank has mapped climate and environmental risks with the aim of integrating them into its risk management system and assessing their materiality in terms of impact compared to traditional risks. This activity is part of the path taken by Banca Ifis, in line with the supervisory expectations published in April 2022 by the Bank of Italy, with the January 2025 EBA guidelines and with industry best practices.
The analysis of the materiality of climate and environmental risks is conducted annually, with the aim of updating the risk management system according to the evolution of the portfolio and identifying new potential risks related to climate and environmental events.
In 2023, the Bank extended this assessment to all the Group's subsidiaries, further refining the way physical and transitional climate and environmental risks are mapped. In 2024, refinements were made to the methodology for calculating physical and transition risks, as described below. In particular, with reference to the latter risk factors, some details are given below on the drivers identified:
•physical risks: adverse weather events, both chronic and acute, were analysed, identifying the most relevant to Banca Ifis's operating environment. The assessment of the materiality of these risks was based on the potential effects on traditional risks, which were also analysed in relation to factors such as portfolio geo-referencing, business operations and key business continuity assets. Information on the likelihood of occurrence of the different risks was acquired through public infoproviders and analysed from the bottom-up;
•transition risks, the drivers identified can be grouped into three categories:
–technological innovation, depending on the costs required to upgrade facilities and production sites, potentially impacting the business model and the ability of enterprises to generate revenues;
–regulatory evolution, depending on the restrictions and sanctions to which counterparty enterprises that are active in segments that hinder the environmental and climate targets defined by the regulator (e.g. Paris Agreement);
–consumer preferences, dictated by an revolution towards climate-friendly consumption and a focus on ESG topics, which could also impact companies from a reputational point of view.
The information on the materiality of transition risks for the Credit analysis was analysed by economic sector, using the ATECO code (top-down approach); for the Reputational and Operational analysis, they were assessed according to the estimated impact on the stakeholders deemed most significant for the Banca Ifis Group; for the Liquidity analysis, the impact on the Liquidity Coverage Ratio was assessed.
On the basis of the analyses conducted and the specific characteristics of Banca Ifis, the results of the materiality assessment on the main traditional risks will be provided in this section. In addition to the preliminary mapping of climate and environmental risks, this process also includes a detailed examination of the channels of transmission of C&E risks to traditional risks, the time horizons with which C&E risks manifest themselves given Banca Ifis's operations, and an assessment of materiality.
The following is a summary of the transmission channels analysed for the purpose of the Materiality Assessment, which have been further elaborated in the chapter on General Disclosures (see 1.1 ESRS 2 - General Disclosures, section 1.1.4 Managing Impacts, Risks and Opportunities: Double materiality assessment, DP 20).
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Type of risk | Transmission channel | Time horizon
Credit risk | Climate physical risk | Business continuity and Npl/salary-backed loans recovery plans | MT
Climate transition risks | Repayment capacity on corporate loans | MT
Value of real estate on secured exposures | MT
Environmental physical risks | Business continuity of the company | MT
Environmental transition risks | Repayment capacity on corporate loans | MT
Business risk | Physical risks / Transition risks | Profitability linked to segments exposed to C&E risks | MT / LT
Market risk | Physical risks | Sovereign securities portfolio | LT
Transition risks | Sovereign securities portfolio | MT
Operational risk | Physical risks | Compromise of operating sites, prop. data centres and major IT outsourcers | MT
Ex-lege suspension of payment flows for extreme events | MT
Transition risks | Lawsuits by NGOs / Activists | ST
Reputational risk | Transition risks | Exposure to high C&E risk segments | ST
Non-alignment with Net Zero targets | ST
Non-compliance with C&E regulations and expectations | ST
Risk of greenwashing the product offering | ST
Liquidity risk | Physical risks | Bank Run | MT / LT

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Resilience analysis
[E1.SBM-3 DP 19a]
The objective of the operating context analysis is to identify and understand the impact of climate and environmental risks on the overall ecosystem in which Banca Ifis operates, supporting strategic decisions through an integrated view of risk factors and opportunities related to climate transition. In 2025, the resilience analysis exercise was updated, using the same methodological approach as in the previous exercise, incorporating new policies, focusing on the evolution of relevant and strategic sectors and redefining the potential impacts of policies on them.
[E1.SBM-3 DP 19b]
In the initial phase, the analysis focuses on drawing a clear picture of the general context related to C&E issues by identifying three main dimensions: the global environment, market trends and the competitive landscape. Each dimension has been deepened through the identification of specific drivers to interpret the main trends in the short and medium term (up to 2030).
A central element of the analysis is the study of climate scenarios elaborated by various public institutions, which allows for an assessment of the different perspectives and trajectories envisaged for the containment of climate change. This study also considers the actions taken by national and supranational governments to achieve climate neutrality by 2050, in line with the goals of the Paris Agreement.
To this end, various scenarios developed by leading global and European institutions were analysed, analysing their key features in detail (e.g., basic assumptions, type of expected trajectory, temperature targets, geographical and sectoral coverage). A special focus was on the NGFS (Network for Greening the Financial System) and IPR (International Policy Response) scenarios, which are considered the most comprehensive due to their geographical granularity and wide availability of sectoral variables.
For the purpose of updating the resilience analysis exercise, the two IPR scenarios, namely the Forecast Policy Scenario and the Required Policy Scenario, were examined. The former was selected as the main reference ('guiding scenario') as it was found to be most suitable for conducting an in-depth analysis of climate policies, assessing the impact of such policies on key sectors of Banca Ifis's portfolio in terms of potential risks and opportunities. On the other hand, the Required Policy Scenario was considered to be poorly suited to the Banca Ifis context, as the parameters are not usable for forward-looking models, the reference data is not current and the link to the economic sectors would potentially only be qualitative. Therefore, the analysis focused on sectors identified as having a high emission impact according to the IPR Forecast scenario and in which Banca Ifis is significant in terms of portfolio exposures (i.e. automotive, real estate, agriculture).
Banca Ifis's resilience analysis focuses mainly on transition risks related to climate change, without considering physical risks, and aims to provide a clear qualitative view of how climate policies will affect sectors in the short and medium term. The focus was on assessing the impacts of transition risks, examining the possible implications for the portfolio in terms of risks and opportunities on the basis of the final data analysed in September 2025.
[E1.SBM-3 AR 7b]
The analysis maintained alignment with the business scenarios considered to define GHG emission reduction targets by 2030, ensuring that Banca Ifis's climate and strategic assessments reflect a temporal and sectoral consistency, in line with Disclosure Requirement E1-4.
[E1.SBM-3 DP 19c]
This resilience analysis exercise consolidates the Bank’s wish to understand the challenges and opportunities arising from the climate transition, providing input that could guide future policy guidance. The results of the analysis could influence the assessment of investment opportunities and mitigation actions, both in the short and medium term, but their integration into strategic decisions is still evolving.
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The results of this resilience analysis exercise show a clear classification of value chain segments in relation to the risks impacts of climate transition policies. For the Automotive sector segments, high impacts were identified mainly concentrated on the production segments, while for the Agriculture sector the most impacted segment was that of farms. For the real estate sector, the impacts are more distributed along the value chain, although a higher concentration on the construction segment of commercial and residential real estate can be observed.
The main uncertainty in the analysis lies in the variability of climate policies globally and the evolution of national and supranational regulations, which could significantly affect the resilience of sectors in the medium-term.
In order to analyse climate policies and qualitatively assess their impact on target sectors, Banca Ifis has structured a specific framework consisting of two main macro-phases:
•identification, analysis and update of all climate policies, to identify the most relevant policies for the sectors analysed;
•qualitative impact assessment, with the aim of defining replicable criteria for measuring the materiality of the impact of climate policies on both individual sectors and Banca Ifis's entire portfolio.
The first macro-phase is divided into three steps aiming to:
a)identify relevant policies, based on the analysis of climate initiatives highlighted in the IPR Forecast scenario (the 2025 update considered the analysis of 27 policies);
b)deepen and verify policies by integrating the narrative of selected climate policies via the International Energy Agency (IEA) database;
c)integrate specific details in a targeted manner, including additional information such as set targets and approval paths, using additional sources (e.g. European Commission, European Parliament, Italian Government).
The second macro-phase adopts a two-step approach, dividing the sectors into key segments of their value chain. As part of the 2025 resilience analysis, the sectors and segments already identified in the previous year were evaluated and confirmed. This phase allows for a more granular analysis, enabling the precise identification of the segments most impacted by climate policies. The Banca Ifis portfolio under analysis, limited to gross exposures (excluding Npls and Treasury/Central Services), was classified according to the ATECO codes and the most relevant ESG sectors, cross-referencing the areas identified by the IPR Forecast as most impacted in terms of issues.
The analysis focused on three main macro-sectors: real estate, automotive and agriculture. For each sector, an assessment of the impact of climate policies was carried out, using studies by specialised providers (e.g. IPR and IEA), complemented by expert-based analysis. This approach made it possible to identify the risks and opportunities associated with each sector over short- (1-3 years) and medium-term (up to 2030) time horizons.
In order to obtain a comprehensive assessment of the impact of climate policies on Banca Ifis's portfolio sectors, a methodology was adopted that also considers the Materiality Assessment criterion, conducted by the Risk Management function, to identify sector-specific C&E risks, based on transition risk drivers derived from international provider studies and returned in the form of weighted scores.
Each segment of the value chain was assessed in terms of risk and opportunity, assigning a score in four levels: low, medium, medium-high and high. The results were summarised in a matrix that graphically represents the positioning of segments with respect to risks and opportunities. Based on this matrix, the segments were classified into four strategic categories:
•high-risk segments with limited opportunities, with low resilience to climate transition (no such segments emerged in the exercise update);
•segments with moderate opportunities, but counterbalanced by prevailing risks (e.g. motor vehicle production);
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•segments with a balance of risks and opportunities, where the potential for growth or resilience (e.g. market trends and fiscal/European incentives) is held back by risks related to the climate transition, such as increased costs and regulatory pressures (e.g. maintenance and real estate restructuring);
•segments with opportunities prevailing over identified risks, with a greater capacity to adapt to the impacts of sectoral policies and climate transition (e.g. farms).
[E1.SBM-3 AR 8b]
The process of analysis and identification of segments of the value chain, described above, is updated periodically, with continuous monitoring of the most relevant market dynamics. Moreover, this approach makes it possible to identify, within the priority areas, the areas most exposed to risks and those offering new opportunities to be explored. This in-depth analysis contributes to enriching the information set to support the business planning process, driven by an in-depth knowledge of risk and opportunity dynamics.
Group approach and policies
[E1-2 DP 24]
With the aim of effectively managing the impacts, risks and opportunities associated with environmental issues and, in particular, climate change, Banca Ifis has defined a set of specific policies, described in detail in the chapter Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview), which form an integral part of the Group's sustainability framework.
Among these, the ESG Policy establishes the strategic guidelines on sustainability, promoting the integration of environmental, social and governance factors in the company's activities; the Environmental Policy defines the Group's commitments in managing its direct and indirect environmental impacts; while the Credit Policy identifies the criteria and guidelines for granting credit, integrating the assessment of the counterparty also with the analysis of its ESG profile, based on available information, with reference to the portfolio in perimeter. Lastly, the Sensitive Sectors Policy identifies the areas of activity with respect to which the Group has decided not to operate, as they are deemed inconsistent with the ethical principles and guidelines enshrined in the Code of Ethics and characterised by a high exposure to ESG risks, including specific coal, anthracite and lignite mining methods and specific gas and oil extraction, production and refining methods, characterised by a high environmental impact/risk (see 1.1 ESRS 2 - General Disclosures, section 1.1.4 Managing Impacts, Risks and Opportunities: Double materiality assessment- AR 12d).
At the same time, the illimity Group has the Facility Management Procedure, aimed at regulating the proper management and maintenance of the buildings and facilities used, with a view to operational efficiency and environmental sustainability. In addition, illimity Bank has the ESG Investment Policy (proprietary finance) through which it intends to orientate treasury and investment banking investment choices with respect to ESG issues with the aim of generating sustainable value over time and enabling responsible development consistent with the Bank's requirements.
[E1-2 DP 25]
Regarding the integration of sustainability issues into the Bank's downstream value chain (customers), aspects of climate change mitigation and adaptation, energy efficiency and the promotion of renewable energy are regulated within the ESG Policy and the Credit Policy.
In addition, Banca Ifis has integrated the credit risk taking process and the credit assessment of customers with an in-depth analysis of variables. This approach makes it possible to identify and manage the ESG risk associated with counterparties, fostering greater sustainability in credit decisions. The main interventions carried out in the following stages of the process are outlined below:
1. Origination phase, i.e. identification of customers whose economic sector:
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•is distant from ethical principles, leading to the rejection of the business opportunity;
•belongs to a risky sectoral ESG class, triggering an enhanced underwriting process.
2. Preliminary ESG verification phase: collection of the information needed to assess the file and steer it towards the appropriate underwriting process.
3. Evaluation and deliberation phase:
•introduction, where necessary, of an enhanced underwriting workflow with escalation mechanisms;
•ESG analysis by a specialised team based on publicly available information such as climate and environmental change management and human and labour rights practices;
•enrichment of the credit appraisal with ESG assessments integrated into the overall credit analysis;
•possibility of introducing mitigation instruments, in relation to ESG risk.
The model described above was structured with the aim of systematically and thoroughly supporting the analysis conducted within the credit process. This approach makes it possible to examine, on the basis of publicly available information, the characteristics of clients in terms of ESG variables, integrating traditional financial and risk assessments with sustainability considerations. This process aims to ensure a comprehensive view of the risk associated with each counterparty, taking into account not only economic soundness, but also the impact and practices adopted by clients with respect to sustainability and social responsibility issues. The integration of ESG analysis fosters a more informed allocation of credit resources, and also contributes to strengthening the Bank's attention to responsible and sustainable credit management, in line with the Bank's strategic corporate objectives and growing regulatory and market expectations.
As governed by the ESG policy, the Group, during the assessment phase, and in compliance with the relevant operational regulations, analyses the sustainability profile of counterparties also through the use of a synthetic ESG indicator (ESG score). This indicator, provided by external providers or calculated using proprietary methodologies, is based on available information and is taken into account by a specialised team within the ESG assessment carried out on counterparties. The indicator includes, where available, data on the environmental sustainability of counterparts, with a focus on climate change mitigation and adaptation, energy efficiency and the use of renewable energy.
To support this activity, the Bank defined the key elements related to the perimeter (e.g. sector, counterparty and transaction) and the process (e.g. credit and lending process), which constitute the new framework.
Actions
[ESRS 2 MDR-A DP 68a,b,c]
The Group is attentive towards the responsible management of environmental impacts, not only by developing internal processes and policies outlining its commitment, but also by implementing concrete actions to promote sustainability. The Group adopts an integrated approach that includes, on the one hand, specific measures to reduce the environmental impact of company buildings and, on the other hand, impact management-oriented actions along the entire value chain, including customer financing.
Financed GHG emissions
[E1-3 DP 28,29a]
With regard to financed GHG emissions, the Group recognises the key role of the financial system in the sustainable transition and therefore encourages the development of products and services for customers aimed
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at promoting ethical lifestyles, sustainable business development and projects with high environmental value. In particular, the Group is committed to reducing its portfolio-financed greenhouse gas emissions also by adhering to international initiatives and frameworks and adopting an evidence-based measurement and monitoring approach.
In 2025, the Bank followed up on the following initiatives, which were incorporated and further detailed in the Transition Plan (see 2.2 ESRS E1 - Climate Change, Section 2.2.1 Transition Plan, DP 16b):
•car leasing: support for sustainable mobility through a portfolio that includes a growing share of hybrid and electric vehicles, awareness-raising campaigns for the renewal of leasing contracts on electric cars, strategic partnerships with manufacturers of full electric vehicles and incentives for the sales network linked to the promotion of products aimed at energy transition;
•truck leasing: promotion of environmentally friendly solutions through the leasing of industrial vehicles and semi-trailers, with a focus on the introduction of natural gas engines as an alternative to diesel engines;
•automotive sector: integration of ESG criteria into the credit assessment process through an enhanced framework, which assesses the environmental and sustainability risk of counterparties to ensure responsible management of financed issues.
Other initiatives to support decarbonisation include:
•power generation: support for SMEs with incentives such as the Nuova Sabatini Green, for investments in photovoltaic systems and energy efficiency solutions, promoting the adoption of low environmental impact technologies;
•sustainable mobility: introduction of products such as 'e-bike rental' for active tourism, leasing of electric quadricycles and development of rental solutions for refurbished IT assets, promoting sustainable mobility and the circular economy;
•support for SMEs: collaborations with financial institutions to offer financing on favourable terms, favouring projects focused on environmental issues and innovative energy transition and the Industry 4.0 Plan;
•financial products focused on environmental issues: offer of MCC mortgages and leasing with Sabatini Green facilities and SACE Green mortgages to support the purchase of sustainable capital goods and the realisation of projects compliant with the European Taxonomy.
Own GHG emissions
[E1-3 DP 28,29a]
With particular reference to energy and change mitigation and adaptation issues, the Group fosters the adoption of measures intended to promote research and implementation of solutions to improve the energy efficiency of its sites and to reduce the environmental impact of its business activities. Specifically, the Group has decided to use electricity supplies mainly from renewable sources, design solutions to self-produce energy from renewable sources and, where possible, implement enhancement and renovation of its real estate assets following the highest standards of environmental compatibility. Furthermore, the Bank promotes sustainable mobility solutions aimed at the gradual replacement of the corporate car fleet with hybrid or electric vehicles supported by an adequate corporate network of dedicated electric charging points. Where relevant, it undertakes to offset its residual greenhouse gas emissions through specific offsetting projects.
As part of its own GHG emissions, the Group implements a number of projects to help reduce these impacts.
On the subject of sustainable mobility, the actions initiated and/or continued in 2025 are reported:
•company fleet renewal: the Group has continued its collaboration with Stellantis to renew company fleets, aiming to make more than 50% of vehicles hybrid or electric by 2025;
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•car electric charging devices: the project continued to install additional electric car charging devices, in addition to those already present, at the Group's main sites. More specifically, an increase has been recorded the number of electric car charging points at the Group's locations, which, at the date of publication of this document, amount to 91.
In this context, the illimity Group has chosen to operate entirely in the cloud and without a branch network in order to minimise emissions related to work locations, and also provides environmental training initiatives for staff.
In the area of sustainable mobility, the illimity Group's corporate car policy provides for the allocation of a car, as a benefit, based on sustainability principles and in line with intended use for service reasons. The Group has equipped itself with efficient cars that do not exceed specific climate-changing emission thresholds, as well as hybrid, plug-in hybrid and electric vehicles that meet European pollutant emission standards.
The initiative, which started in 2024, involved a limited number of full-electric cars and led to the gradual evolution of the illimity Group's car fleet consisting of electric, hybrid, mild hybrid and plug-in vehicles. The adoption of these technologies has improved the company's environmental performance, with positive feedback from staff as well. In order to encourage the choice of full-electric cars by company car recipients, illimity contributes specific incentives to support this choice.
Use of renewable energy and energy efficiency
Since 2021, the Group has been mainly using green energy from renewable sources (e.g. wind, photovoltaic, geothermal, hydroelectric, biogas, biomass) for the supply of all the main offices and branches in Italy. During 2025, ordinary and extraordinary renovation and redevelopment of its main premises continued, according to the highest standards of eco-compatibility, focusing on plant design according to the best available energy-efficient technologies and the supply of 100% renewable energy from the grid or self-produced.
In addition, solutions have been developed to self-produce energy from renewable sources: in November 2024, a new photovoltaic system was activated, with a capacity of approximately 180 kWp, on the roof of the Mondovì office building with the aim of reducing the direct impact of the building itself by around one third of consumption.
In 2025, consumption stood at 2,9 million Euro kWh, remaining at levels consistent with the Group's energy efficiency path and responsible management of energy needs.
The illimity Group is also committed to promoting and using renewable sources, with the aim of ensuring that the entire electricity requirements of its main sites come from energy certified through Guarantees of Origin.
The illimity Group's Scope 2 emissions, calculated using market-based methodology, have seen a reduction in recent years, despite the expansion of the reporting scope according to European standards, which has consequently increased energy consumption and thus Scope 1 and Scope 2 emissions.
By purchasing certified electricity with Guarantees of Origin, Scope 2 emissions calculated using the market-based method will be further reduced to net zero by 2030, in line with the illimity Group's current Transition Plan.
[ESRS 2 MDR-A DP 69a,b]
[E1-3 DP 29ci,cii, DP 16c]
For some of the above-mentioned actions, the significant monetary amounts in terms of Capex (capital expenditure) and Opex (operating expenditure), related to the implementation of the measures undertaken, are reported 37, reflecting the economic impact of the actions implemented.
37 It should be noted that, for this reporting exercise, Banca Ifis has not identified any future financial resources allocated to the action plan.
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In addition, a detailed breakdown of the reconciliation of these expenses to the budget is provided, showing the correspondence with the relevant accounting categories. This approach ensures transparency and traceability of the investments made, facilitating the analysis of the financial and operational effects of the initiatives taken.

Site renovations and upgrades (including charging columns) | UoM | 2025 | 2024 | Item
Capex | € | 3.326.701 | 861.226 | Balance Sheet: tangible assets
Opex | € | 42.161 | 15.320 | Income statement: other administrative expenses

The total Capex amount of €3.326.701 was allocated as follows: €3.118.307 earmarked for the renovation of premises and €208.393 for the installation of charging stations. As far as Opex expenses are concerned, €16.766 is attributable to renovations and €25.396 associated with columns.
[E1-3 DP 29b]

GHG emissions reductions | UoM | Target
Expected | tCO 2 e | 1.776 (2030)
Achieved | tCO 2 e | 0

Managing risks associated with portfolio exposures
[E1-3 DP 28,29a]
The management of risks associated with credit exposures is a central element of the Banca Ifis Group's approach, which has progressively strengthened the integration of environmental, social and governance factors into its decision-making and risk control processes.
In this context, Banca Ifis has an integrated credit framework from an ESG perspective, supported by a structured process for assessing the sustainability profile of counterparties based on pre-established ESG criteria. the framework is based on specific key elements of scope, including sector, counterparty and transaction, and process, such as lending policies and lending arrangements.
At the segment level, the segments most exposed to ESG risks were identified by means of a specific materiality assessment carried out by Risk Management, in line also with the evidence from the C&E risk assessment process already mentioned.
At the counterparty level, the Bank has identified a data provider to acquire a synthetic score to represent the individual counterparty's level of compliance with environmental, social and governance issues.
Having defined the above scope of application, the enhanced credit framework was launched in 2024 through:
•a definition of the role of the credit policies in steering and monitoring of ESG risks during the underwriting phase;
•the identification of the scopes and thresholds for the activation of the reinforced credit underwriting process (e.g. turnover and type of product, ESG risk at segment level and counterparty level).
The application of the enhanced credit framework provides for:
•the deliberative escalation of the decision-making body;
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•the drafting of a supplementary appraisal for ESG-steered and appraised counterparties that will enter the enhanced credit framework.
The disclosure supplement contains a qualitative analysis of the counterparty's sustainability profile and level of adequacy in the environmental, social and governance areas (e.g. climate change and biodiversity management approach, emissions reductions, human and labour rights practices, and anti-corruption and anti-money laundering controls in place).
The analysis of the counterparty's ESG profile integrates the evidence provided by the data provider with information obtained by consulting publicly available sources and is aimed at identifying the potential impacts of ESG on both credit risk and reputational risk.
The document is made available to the credit decision maker to highlight the main ESG characteristics of the counterparty and integrate the related considerations into the credit decision, assessing the possibility of introducing mitigation measures on the basis of the reference ESG risk and in light of the type of product requested (short or medium/long-term).
At the same time, the Banca Ifis Group addresses the specific risks associated with technological and climatic changes through a coordinated set of tools and safeguards integrated into its lending and product development processes. In particular, with regard to companies that operate using CO ₂-intensive technologies, the Bank applies principles and guidelines aimed at ensuring prudent management of the overall exposure to each counterparty. In addition, the ESG Scoring Tool (EST) is used in the credit assessment process, which calculates the ESG rating of companies and defines a score that can influence the credit risk, also affecting the analysts' decision-making autonomy. Similarly, in order to mitigate the financial impacts of acute and chronic climatic events, which can compromise plants, buildings and production assets, the Bank also makes available to customers the 'Natural Catastrophes' policy, aimed at protecting corporate assets and promoting business continuity.
Finally, with particular reference to the possible depreciation in the value of real estate collateral, attributable both to the introduction of policies imposing specific energy efficiency standards for the rental or sale of real estate, and to the increase in demand for energy-efficient housing, the related credit exposures were analysed as part of the Materiality Assessment.
For Banca Credifarma, in the context of mortgage-backed loans, the Risk Management function conducted a proxy mapping of energy classes, using the public SIAPE database, which returns the distribution of EPC classes at provincial level. The analysis shows a moderate concentration of guarantee properties in the lowest energy classes (F and G), which can be attributed to the location of properties in areas characterised by buildings with lower energy classes than the national average or by redevelopment constraints related to building and cultural heritage. For the Banca Ifis Employee Mortgage product, which has a marginal incidence in terms of the number of properties and mortgage value, it was instead possible to survey the energy class data, which showed that more than 37% of exposures fell into class A.
Similarly, illimity Bank integrates the assessment of physical and transitional risks into its internal capital adequacy and liquidity processes (ICAAP/ILAAP) and prospective self-assessment of operational risks (RSA), taking measures to mitigate the potential impacts of climate change.
In particular, the illimity Group measures physical risk by analysing how potentially damaging natural events can affect deposits and the strength of the portfolio. On the basis of historical data on Italian municipalities exposed to hydrogeological, hydraulic and other risks (ISPRA sources), the behaviour of depositors is observed in terms of early withdrawal or non-renewal, also in order to cope with potential damage (deduced from historical risk maps) or actual damage (deriving from recent instability scenarios recorded in some areas of the country). The results of these analyses are integrated into the liquidity adequacy assessment processes.
The assessment is also completed by considering the ESG performance of the loan and investment portfolio and analysing the environmental scores of the financed counterparties. Finally, the sectoral concentration of portfolios
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and the outcomes of the risk scenarios identified in the materiality assessment are examined in order to obtain a coherent and integrated view of the illimity Group's overall exposure to physical risks and the possible impacts on deposits.
To mitigate the risk of deterioration in counterparties' creditworthiness - linked to higher compliance costs for the climate transition - illimity integrates ESG criteria into its credit assessment and risk management processes, applying propensity and tolerance thresholds for indicators such as counterparties' ESG score and portfolio emission intensity in carbon-intensive sectors, for which targets and limits have been defined. In addition, the illimity Group has adopted dedicated tools to collect and analyse the emission data of the financed entities.
Alongside these instruments, the Banca Ifis Group pays particular attention to monitoring the reputational risk associated with non-compliance with climate and environmental regulations and expectations. To this end, it promotes a widespread environmental culture among all employees, through information and training initiatives, a clear definition of responsibilities and transparent communication of the results of environmental management, supported by dedicated reporting and adherence to recognised standards and frameworks, including the Bank of Italy's 'Supervisory Expectations on Climate and Environmental Risks'.
Finally, as part of the development of new products as well as the integration of existing ones, there is a specific assessment of the characteristics that qualify as a 'Sustainable Product'. This assessment, carried out with the support of the Sustainability team, represents a further safeguard for the Bank, ensuring that ESG qualifications are only awarded following a structured analysis by the competent functions, with a view to transparent and fair communication to its clients.
In a parallel fashion, illimity Bank is also active in this area: a pillar of its Climate Strategy is in fact the promotion of sustainable finance, with the aim of supporting companies, including those in carbon-intensive sectors, through innovative instruments such as Sustainability-Linked Loans and Green Loans.
These solutions link financing conditions to the achievement of measurable environmental goals, providing incentives for companies to improve their sustainability performance and integrate environmental responsibility into business models.
These initiatives make it possible to expand and qualify the offer to customers with solutions that favour mitigation and adaptation to climate change. At the same time, they contribute to strengthening the Bank's ability to attract and retain customers, thanks also to its reputational positioning on these issues and the robustness of its ICT systems, which are able to guarantee business continuity even in the presence of events related to physical risk.
2.2.3 Targets
[ESRS 2 MDR-T DP 80a,b,c,d,e,f,g,j]
The emission reduction targets reported in this section refer to the emissions of the Parent company, in line with the reporting boundary applied in the previous year, and the illimity Group, respectively. Following the consolidation of recent acquisitions, the process of defining Group-wide decarbonisation targets will be initiated during the next financial year, with the aim of ensuring the alignment of perimeters, methodologies and reference time horizons.
[E1-4 DP 32, 33]
As outlined above, the Banca Ifis Group identifies itself as a digital, open, efficient and sustainable bank. In this context, the Bank has committed to bring its loans and investment portfolios into line with the achievement of the zero net emissions goal by 2050, as per the targets set by the Paris Climate Agreement. Therefore, setting decarbonisation targets emphasises the Group's determination towards a sustainable transition and low levels of greenhouse gas emissions.
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Financed GHG emissions
Below are the emission reduction targets financed on the sectors deemed material for Banca Ifis: Auto Leasing, Truck Leasing and Automotive Manufacturers and Distributors and which the Group aims to achieve by 2030.
[E1-4 DP 34a,b, AR 25a,b]

Scope 3 GHG emission reduction targets by category(1) | UoM | Type | Baseline (2) (year) | 2030 Target
Auto Leasing | gCO 2 e/km | Reduction target | 130 (2019) | 85
Truck Leasing | gCO 2 e/tkm | Reduction target | 52 (3) (2020) | 37
Automotive Manufacturers and Distributors | gCO 2 e/km | Reduction target | 153 (2019) | 85

(1) Sectors outlined by the Net-Zero Banking Alliance with IEA Net-Zero 2050 reference scenario.
(2) Portfolio composition as at 31 March 2022, latest available emission data.
(3) Emission data to 2020 for the application of EU Regulation 2019/1242 on emission targets for heavy duty vehicles.
This scenario is consistent with the forecasts of electrification of the Italian market by 2030 and with a cost level in line with the other scenarios considered, and is based on scientifically validated decarbonisation scenarios (IEA Net Zero scenario).
In this context, the base year value was defined on the basis of the composition of the portfolio as at 31 March 2022, referring to the latest available data on issues and in line with the Banca Ifis Group's NZBA disclosure. With specific regard to the Leasing Truck segment, emission data referring to 2020 were used, in accordance with the EU Regulation 2019/1242 on HGV emission targets.
In addition, the analysis took into account potential operational and financial risks, in particular those related to the range provided by electric vehicles (EVs) and the evolution of related leasing costs, evaluating solutions that balance environmental sustainability and economic efficiency. In this context, the scenario defined envisages greater electrification of the corporate fleet, while maintaining a clear predominance of hybrid vehicles to meet the specific needs of the bank's operating model and its commercial network.
The three targets related to Automotive Leasing, Truck Leasing, and Automotive Manufacturers and Distributors focus on sectors that represent 33%, 15%, and 13% of the financed emissions, respectively, and together account for 61% of Scope 3 emissions, Category 15 (94% of emissions when considering the most carbon-intensive sectors)38. Additionally, these three targets—Automotive Leasing, Truck Leasing, and Automotive Manufacturers and Distributors—represent 6%, 2%, and 2% of the portfolio considered in the calculation of financed emissions.
As of December 31, 2025, the progress towards the three targets is as follows:
•Automotive Leasing: 138 gCO 2 e/km (an increase of 6% compared to the baseline);
•Truck Leasing: 52 gCO 2 e/tkm (stable compared to the baseline);
•Automotive Manufacturers and Distributors: 138 gCO 2 e/km (a decrease of 10% compared to the baseline).
38 The scope includes the Lending Ifis portfolio as of December 31, 2025, with Scope 3 emissions from Category 15 (management data).
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Own GHG emissions
[E1-4 DP 33]
With reference to its own GHG emissions, the Banca Ifis Group has set specific targets 39 to reduce GHG emissions from its corporate fleet by 2030 in order to make a concrete and significant contribution to the fight against climate change. The company's strategy is based on a measurable commitment: to accelerate the transition to a more sustainable mix of electric vehicles, with the aim of increasing their current share 40.
Indeed, the Banca Ifis Group's business model is based on an extensive commercial network, which covers the territory extensively, while the physical branch network is geographically less widespread. In the past years, the sales network has grown extensively and will continue to expand in order to ensure the achievement of the ambitious business goals.
The Banca Ifis Group is positioned as a low-emission institution in terms of its own GHG, thanks to the sustainability initiatives already undertaken in the past few years, which have enabled, as mentioned above, the maximum energy optimisation of the offices and the procurement of mainly renewable electricity, making the company car fleet the main source of emissions with a significant reduction margin.
In 2022, a partnership was signed with Stellantis, with the aim of supporting the ecological transition through the adoption of vehicles with a lower environmental impact. This commitment led to the definition of the 2024 emission baseline, which reflects the progress of a journey that began three years ago and marked an important step towards sustainable corporate mobility management.
Bearing in mind that the Group's growth will entail a necessary growth of the commercial network and, therefore, of the corporate fleet, Banca Ifis will in any case commit to further reducing Scope 1 emissions by 10% by 2030, through the progressive adoption of full electric or high-efficiency hybrid vehicles, to the detriment of thermal engine cars.
To ensure that the target is met, changes in the share of the car fleet for each type of low-emission vehicle (i.e. high-efficiency hybrid, FEV) will be monitored over time. In this sense, the Banca Ifis Group's approach makes it possible to track improvements, assess the effectiveness of implemented actions and ensure that the transition takes place gradually.
These targets were predefined internally by the Human Resources Department with the support of the competent General Services function and subsequently approved by the Sustainability Committee, in order to ensure the inclusion of the main stakeholders concerned.
[E1-4 DP 34a,b, AR 25a,b]

Sub-topic | Action | Type | Baseline Scope 1(1) | Target
Climate change mitigation | Reduction of the CO 2 emissions of the car fleet | Reduction target | 1.974 tCO 2 e (2024) | 1.776 tCO 2 e (2030)-10%

(1) As 2024 was the first year of application of the CSRD, the year 2024 was taken as the first year in which a full Scope 1 calculation was carried out, in line with the requirements of the regulations, for the purpose of defining the target value.
39 It should be noted that these targets were set consistent with limiting global warming to 1,5 °C.
40 Banca Ifis adopts the car fleet as its main decarbonisation lever, implementing targeted strategies to reduce emissions, e.g. through a gradual transition to low-emission vehicles.
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In setting emission reduction targets for the corporate fleet, Banca Ifis conducted an in-depth analysis of operational, market and financial variables to ensure ambitious but realistic targets.
The considerations were based on a scenario that allows for an average performance in line with the market in terms of emissions per employee, estimated at between 1 and 1,5 tonnes of CO ₂.
The value of emissions for 2025, related to the same scope for which the target was defined in 2024, amounts to 2,098 tCO ₂ e. The increase compared to 2024, although not significant, is due to the rise in the usage of the company fleet, which is currently undergoing a gradual transition to a full electric fleet.
[E1-4 DP 34e]
Details follow of the methodological choices made by the Bank to define the decarbonisation targets:
With regard to the target setting exercise for financed issues, exposures considered material include the following types of performing lending to non-financial corporations, both Large and SMEs (excluding Private Entities and Public Administration):
•used for cash;
•bonds with a Held to Collect (HTC) business model - only in sectors defined as priorities by the Net Zero Banking Alliance;
•leasing - Transportation;
•factoring (both with and without recourse).
[E1-4 DP 34b, AR 24]
The definition of emission reduction targets and objectives was formulated taking into account sector specificities and following benchmark analyses that highlighted best market practices, in line with the main competitors.
With regard to the target for Scope 1,the CO ₂ emission baseline for the reduction lever through electrification of the car fleet was calculated on the basis of the current year's emissions (GHG emissions) and the vehicle mix adopted in 2024 41.
Specifically, 2024 emissions were determined using consumption recorded in the same year and applying conversion factors in tCO ₂ e, in accordance with the industry guidelines and UK Government GHG Conversion Factors for Company Reporting - DEFRA 2024 database guidelines.
It should be noted that the Base Year emissions figure (2024), used for the purpose of setting the targets described in AR 25 a) and b), refers exclusively to the reporting boundary applied in the previous year and does not include emissions attributable to acquisitions completed during 2025. On a like-for-like basis with the other CSRD 2025 indicators, the share of Scope 1 emissions currently covered by the target would be 87%. The scope of emissions varies from sector to sector in order to maximise coverage: for car manufacturers and distributors, Scope 3 was considered, which includes emissions along the value chain, while for car leasing, Scope 1 and 2 were included, representing emissions generated from the use of vehicles by consumers, equivalent to Scope 3 for manufacturers.
The coverage of the value chain was delineated by considering only selected segments of each sector, in accordance with the main portfolio alignment methodologies. For car manufacturers and distributors, the analysis focused on car manufacturers, excluding manufacturers of components such as tyres and brakes, while for leasing of light vehicles and trucks the focus was on vehicles purchased by customers.
41 The Group is committed to a path of gradual reduction of its own emissions in line with an internally defined decarbonization trajectory, which has not yet been developed in consideration of the ambition of the Paris Agreement.
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Finally, the portfolio coverage was defined according to best practice, with a coverage of over 99% for car leasing (excluding decommissioned vehicles, obsolete brands and light commercial vehicles without declared emissions) and over 95% for car manufacturers and distributors.
[E1-4 DP 34f, AR 30c]
As indicated in the previous section, Banca Ifis has identified its own decarbonisation levers based on the targets set (see 2.2 ESRS E1 - Climate Change, Transition Plan section, DP 16b), promoting sustainable mobility, the adoption of hybrid and electric solutions in car and truck leasing, the integration of ESG criteria in credit processes, support to SMEs for low environmental impact investments, the development of sustainable financial products and the renewal of the corporate fleet with low environmental impact vehicles.
The targets were defined taking into account available climate scenarios and in particular taking as a reference the scenario published by the International Energy Agency (IEA) 'Net Zero Emissions by 2050', compatible with limiting global warming to 1,5°C.
[E1-4 DP 32, 34e, E1-3 DP 28,29a]
Banca Ifis has defined its emission reduction targets based on reliable and recognised data sources, mainly drawn from public databases, such as the International Council on Clean Transportation (ICCT) and Transition Pathway Initiative (TPI) reports, and from official counterpart reports.
This approach ensures transparency and reliability in the measurement of emissions and the definition of strategies. TPI, in particular, considers Scope 3, category 11 emissions, which represent the emissions generated by the use of the product sold and correspond to the entire life cycle of the cars sold.
Emission intensity in the automotive sector is calculated on the basis of average Tank-to-Wheel CO 2 emissions per kilometre, using standardised methodologies such as the WLTP cycle. For the calculation of the issuance curves of the overall portfolio, a weighting approach in line with best market practice was adopted, taking into account the availability of data for each sector.
Furthermore, the Net-Zero alignment targets were defined following the IEA NZE scenario, which is based on scientific evidence and compatible with limiting global warming to 1,5 degrees Celsius, thus consolidating the Bank's commitment to support a sustainable transition in line with global climate goals.
Risk Management monitors the financed issues and inertial values to 2030, based on portfolio composition, on a half-yearly basis on the three target sectors. In particular, prospective analyses are carried out for car leasing, on the potential evolution of the portfolio and the roll-over of manufacturers relevant to the Group (both in terms of volumes and particularly virtuous declared targets), in order to verify alignment with decarbonisation targets even in the event of a potential portfolio recomposition and regulatory changes or adjustments to the vehicle manufacturers’ targets. Should significant deviations occur, an internal procedure is in place to share them with the Sustainability Committee and the Bank Departments involved in the lending process, strategic planning and business.
In addition, the Communications, Marketing, Public Affairs & Sustainability Department periodically monitors the national and international context and market in order to proactively incorporate any significant changes resulting from the analysis.
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The targets set by illimity
[E1-4 DP 32,33,34b AR 24, AR 25a,b]
As part of the Climate Strategy approved in November 2024, illimity has set measurable GHG emission reduction targets, including zeroing out Scope 2 emissions according to the 'market-based' method by 2030 and setting science-based targets at 2030 and 2050 for the most carbon-intensive sectors. These targets are consistent with the perimeter of the illimity emissions inventory and include both the Bank's indirect emissions related to energy consumption (Scope 2) and the financed emissions attributable to Category 15 "Investments" of Scope 3, with the aim of progressively aligning the loan portfolio to sectoral decarbonisation trajectories.

|  |  | 2023 | Target
Sector | Sector-specific scenario | UoM (1) | Illimity Baseline(2) | 2030 % reduction vs baseline | 2030 | 2050 % reduction vs baseline | 2050
Shipping: Maritime freight and passenger transport operators Ship operations | Poseidon Principles (based on 2023 IMO GHG Strategy) | gCO 2/tnm | 25,5 | -64% | 9,1 | -100% | 0
Power: Energy production Generation | IEA NZE 2050 | KgCO 2/kWh | 0,3 | -42% | 0,19 | -100% | 0
Steel: Steel production Manufacturing | IEA NZE 2050 | tCO 2/t steel product | The strategy aims to restrict future financings to companies that commit to aligning with sector-specific decarbonisation targets for 2030 and 2050 | n.a. | 1,07 | n.a. | 0,12
Oil & Gas: Oil and gas extraction, oil refining Upstream, Midstream | IEA NZE 2050 | gCO 2 e/MJ | n.a. | 58 | n.a. | 17
Real Estate: Property redevelopment and development Operations | SBTi 1.5°C pathway for Italy | tCO 2 e/m 2 | n.a. | 0,007 | n.a. | 0,0004

(1) Targets are expressed in terms of physical emission intensity (CO 2/unit of physical output) and not in absolute values, as this metric allows for more effective monitoring of companies' efforts to reduce emissions per unit of output through the adoption of sustainable technologies and solutions.
(2) The base value chosen to measure progress towards GHG emission reduction targets was set at 2023. The base value and base year did not change as they were defined with the publication of the Climate Strategy in November 2024.
[E1-4 DP 34e, AR 30c]
The targets, based on solid scientific evidence, are aligned to the 1,5°C limit of the Paris Agreement and defined on the basis of the IEA Net Zero Emissions 2050 scenario. The methodology adopted uses sectoral decarbonisation pathways and takes into account environmental, social, technological, regulatory and market developments, offering flexibility over time. The Climate Strategy is also based on internationally recognised scenarios (IEA, SBTi, Poseidon Principles) for the most carbon-intensive sectors.
[E1-4 DP 34f]
To help achieve its goals, illimity has identified several decarbonisation levers, in particular with regard to Scope 3 (Category 15) emissions with the aim of achieving zero emissions by 2030: exclusion of high-impact sectors,
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identification of targets for carbon-intensive sectors, promotion of transition finance and the provision of funding in green projects (e.g. Green Loan). In addition, illimity supports counterparts in defining credible and science-based target-aligned transition plans.
[E1-4 DP 34a,b AR 24]
With reference to Scope 2 according to the 'market-based' method, the main decarbonisation leverage used relates to the purchase of energy with Guarantees of Origin (GO); the illimity Group has therefore committed to modifying its electricity supply contracts to include an increasing use of GO until, by 2030, all of its supply is covered.

Reducing in Scope 2 emissions market-based method | UoM | Base year (2023) | 2030 target | 2035 target | 2040 target | 2045 target | 2030 target
Absolute value of GHG emissions | tCO 2 e | 96,8 | 0 | 0 | 0 | 0 | 0
Percentage reduction in GHG emissions | % | - | 100 | 100 | 100 | 100 | 100

2.2.4 Metrics
[ESRS 2 MDR-M DP 75, 77a]
In the metrics reporting process, Banca Ifis actively involved the relevant corporate functions, ensuring a qualified contribution in their respective fields. The methodologies and significant assumptions adopted are fully aligned with the European Sustainability Reporting Standards (ESRS) and current regulatory requirements, thus ensuring compliance with transparency requirements, consistency with European sustainability standards and accurate and reliable reporting.
In particular, the calculation of Scope 1, 2 and 3 emissions, expressed in tCO 2 e, was carried out following industry guidelines, such as the ABI Lab Support document for preparing the sustainability statement according to the European Sustainability Reporting Standards (ESRS) on the environment 2025 in banks, as well as the GHG Protocol. It should be noted that the quantification of these emissions has not been validated by an external body outside the assurance provider.
The figures reported in the disclosure refer to both the Italian and foreign perimeter and include the effects of the recent acquisitions of the illimity Group and Fürstenberg SIM (formerly Euclidea SIM). The contribution of the latter is only considered for the period after their integration into the Group, and therefore the figures do not include values for periods prior to the acquisitions.
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Energy consumption and mix
[E1-5 DP 37,a,b,c,ci,cii,ciii, AR 34]

Total energy consumption of own operations by source | UoM | 2025 | 2024
Fossil sources (1) | MWh | 9.062 | 7.766
Share of fossil sources in total energy consumption | % | 73 | 70
Nuclear sources | MWh | 0 | 0
Share of nuclear sources in total energy consumption | % | 0 | 0
Renewable sources (2) | MWh | 3.342 | 3.270
Share of renewable sources in total energy consumption | % | 27 | 30
Fuel consumption for renewable sources, including biomass | MWh | 0 | 0
Consumption of electricity, heat, steam and cooling purchased or acquired from renewable sources | MWh | 3.118 | 3.148
Consumption of self-generated non-fuel renewable energy | MWh | 224 | 122
Total (3) | MWh | 12.404 | 11.036

(1) For the consumption of fossil fuels, data on the car fleet, natural gas and purchased electricity not covered by Guarantees of Origin are used.
(2) The Group is committed to using green electricity from renewable sources (e.g. wind, photovoltaic, geothermal, hydroelectric, biogas, biomass). Currently, the share of renewable energy in total consumption is 27%. It should also be noted that the Group currently sources 89% of its electricity from certified renewable sources through Guarantees of Origin (GO), confirming its commitment to the use of electricity from certified renewable sources.
(3) The organisation constantly monitors its energy consumption and energy mix, ensuring that they are in line with its targets.
The methodologies adopted for the calculation of metrics related to energy consumption and energy mix are based on the application of the ABI LAB guidelines and the GHG Protocol.
It should be noted that, for the quantification of consumption of owned and rented properties, both in Italy and abroad, for which it was not possible to obtain precise data from utility bills, estimates were made from Energy Performance Certificates (APE).
In particular, for all properties for which the Energy Performance Certificate (APE) is available, the energy consumption value was calculated as the product of the respective surface areas (m 2) and the respective energy performance indices.
In particular, in order to reflect the real use of the real estate, for the 2025 calculation it was decided to apply a corrective reduction of 30% of the calculated consumption value, to take into account the fact that the real estate, although occupied during the week, is not used to full capacity.42 Finally, in order to differentiate between electricity
42 It should be noted that the 30% reduction applied to the consumption resulting from the APE reflects the desire to realistically represent the actual use of the real estate: considering that the real estate is used exclusively from Monday to Friday (5 days out of 7) and not continuously during the whole day, the actual use on an annual basis corresponds to approximately 70% of the total number of days, i.e. approximately 260 days out of 365.
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and methane gas consumption, consumption was allocated according to the activation periods of the heating and cooling systems. Considering that cooling is only activated in the summer months, roughly from May to the end of August, 30% is allocable to Scope 2, it follows that 70% of consumption is allocable to Scope 1.
The increase, though not significant, in overall energy consumption compared to previous years is attributable both to the contribution from recent acquisitions (equal to 896 MWh for the illimity Group), and to the increase in fossil fuels, the prevalent contribution of which is attributable to the use of the company fleet, which is currently undergoing a gradual transition to a full electric fleet.
Energy carriers are reported in the following units:
•Natural gas: Standard cubic metres;
•Electricity: Kilowatt-hour;
•Petrol and Diesel for car fleet: Tonnes;
•Methane for car fleet: Tonnes;
•LPG for car fleet: Tonnes.
This input data was then converted into the unit of measurement required by the regulations.
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Gross Scope 1 and 2 GHG emissions
[E1-6 DP 48a,49a,b,50,52a,b]

Gross GHG emissions | Level | UoM | 2025 | 2024
Scope 1 (1) | Consolidated accounting group | tCO 2 e | 2.280 | 1.974
Investees with operational control | tCO 2 e | 0 | 0
Scope 2 (location-based) (2) | Consolidated accounting group | tCO 2 e | 907 | 1.049
Investees with operational control | tCO 2 e | 0 | 0
Scope 2 (market-based) (3) | Consolidated accounting group | tCO 2 e | 168 | 114
Investees with operational control | tCO 2 e | 0 | 0

(1) The following factors were used for the calculation of Scope 1 emissions: ABI Lab Guidelines on the Bank's Implementation of the European Sustainability Reporting Standard (ESRS) on the Environment 2025; Department for Energy Security and Net Zero (DESNZ 43). The quantities of energy vectors used by the Group, such as natural gas and fuels for the company car fleet, expressed in the relevant units and multiplied by the respective emission factors as per the Banking Industry Guidelines, were taken into account. It should be noted that, for the quantification of GHG emissions from buildings without point consumption data, estimates were made from Energy Performance Certificates (APE), as previously indicated.
(2) For the calculation of Scope 2 emissions according to the 'location-based' method, the entire volume of electricity purchased by the Group was considered by estimating consumption, as previously reported, where no precise data are available, then multiplied by the relevant specific emission factors (Abi Lab Guidelines for Italian locations and AIB 2025 - Supplier mix for foreign locations). Emissions of CH4 and N2O were also included in the calculation, where available emission factors allowed. No tools were used to calculate them, nor were any assumptions made to quantify the emissions.
(3) For the calculation of Scope 2 emissions according to the "market-based" method, the share of electricity purchased by the Group (estimating consumptions, as reported previously, where no timely data is available) without Guarantees of Origin (GO), multiplied by the specific emission factors of the "Residual mix" stated in the AIB 2025, was considered. No assumptions were made or specific tools used to calculate emissions, and GHG emissions other than CO 2, such as CH4 and N2O, were not considered as they were not available in the emission factors used. Included in the calculation are emissions from car consumption at public petrol stations and the estimated electricity consumption for owned and rented properties with no timely data, whose energy source is not certified within the Guarantee of Origin certificates.
[E1-6 AR 45d]
As described above, renewable energy certified through Guarantees of Origin (GO) is used for buildings owned by Country Italy, without using contractual instruments for the purchase or sale of energy with attributes associated with energy generation (bundled energy) in relation to Scope 2 GHG emissions. The organisation focuses on the purchase of certified renewable energy, avoiding buying and selling energy. It should also be noted that, for the year 2025, the share of energy certified through Guarantees of Origin stands at 89%, confirming the organisation's commitment to the use of renewable sources and the reduction of Scope 2 emissions.
43 Formerly known by the acronym DEFRA.
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With regard to Scope 1 and 2, the deviations from previous years are also small overall. In particular, the increase in Scope 1 emissions is mainly attributable to consumption from fossil fuels, with the illimity Group contributing about 9% of the total.
With regard to Scope 2, the variability observed is attributable, on the one hand, to the variation in the emission factors 44 adopted in the location-based approach and, on the other hand, to recent acquisitions, in particular the illimity Group for the market-based approach, which contributes approximately 86 tonnes of CO ₂ e.
Gross Scope 3 GHG emissions
[E1-6 AR 46i]
As part of the reporting of other indirect emissions (Scope 3), it should be noted that during 2025, the new emissions categories material for the Group under the GHG Protocol were identified, supplementing the information already provided in previous years. In particular, the following categories were quantified by the organisation, also in line with industry best practice:
•Category 1 - Purchased goods and services;
•Category 2 - Capital goods;
•Category 3 - Fuel and energy related activities;
•Category 5 - Waste generated in operations;
•Category 6 - Business travel;
•Category 7 - Employee commuting;
•Category 15 - Investments.
With regard to the other Scope 3 indirect emission categories under the GHG Protocol, it should be noted that the Bank conducted internal assessments to verify their applicability and relevance to its business model. As a result of these analyses, these categories were excluded from the Consolidated Sustainability Statement because they were deemed not applicable, irrelevant or difficult to quantify due to the complexity of finding input data. With a view to continuous improvement, reporting will be refined annually, incorporating, where possible, any emission sources excluded for the reasons described above.
[E1-6 AR 39b]
Below are the methodologies adopted by Banca Ifis for the above categories:
•Category 1 'Purchased goods and services': for the quantification of emissions, the Spend-Based Method was used, in line with the GHG Protocol, using as input the costs in Euro of goods and services purchased by the Bank deducted from the Balance Sheet and relating to the year 2025.
Some expenditure items were excluded because they could represent double counting with issues already reported in Scope 1, 2 and 3 (e.g: "Business travel" or "Expenses related to real estate") or because they were deemed to be items that could not be classified as purchases of goods and services (e.g. "Charges" or "Fees").
The emission factors, expressed in tCO 2 e/monetary unit, were associated with the various expenditure categories in a timely manner. It should be noted that the emission factors adopted include all climate-altering gases and come from a public database, with average values representative of the entire EU geography, including the 27 Member States (Source: Eurostat, Environmentally Extended Input Output –
44 Location-based emission factors change annually as they reflect the updated characteristics of the reference electricity mix.
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EEIO database). This database was considered representative and in line with what is suggested by the GHG Protocol and ABI Lab guidelines, as well as industry best practices.
•Category 2 'Capital goods': this category includes issues associated with the acquisition of capital assets during the reporting period, which are not already included in Category 1, from the tangible and intangible fixed assets register. In line with the GHG Protocol, the calculation was implemented using the 'Spend-based' methodology, whereby expenditure items are associated with the consistent ATECO code and multiplied by the relevant emission factors from Eurostat's Environmentally Extended Input Output database (EEIO).
•Category 3 'Fuel and energy-related activities': this category includes emissions from the production of fuel and energy purchased and consumed by the company during the reporting year, which are not already included in Scope 1 or Scope 2. For the calculation of category emissions, the 'Average-data method' was adopted, whereby secondary emission factors are used to estimate upstream emissions per unit of consumption (e.g. kg CO 2 e/kWh).
The emission factors used for the calculation are those published in the Department for Energy Security and Net Zero (DESNZ).
•Category 5 'Waste generated in operations': this category includes indirect emissions from the treatment of waste generated by the organisation. The estimation was carried out using the 'Average-data method', in accordance with the GHG Protocol guidelines.
For ordinary waste, where no point data from weighing were available, estimates were made. In particular, the quantity generated in the Italian perimeter was estimated using the production indices at m² reported in the MEF TARES Guidelines. For foreign locations, on the other hand, the per capita indices of the European Environment Agency (EEA) were used, while waste destination percentages were taken from Eurostat. For the purpose of applying the Department for Energy Security and Net Zero (DESNZ) emission factors, this waste was classified as 'Household residual waste', as this definition is more consistent with the nature of municipal waste.
For special waste, where present, the punctual information in the MUD was used. Emission factors from the Department for Energy Security and Net Zero (DESNZ) database were applied to the quantities measured, depending on the CER code and the specific management mode.
•Category 6 'Business Travel': for the quantification of emissions, the 'Distance-Based Method' was used, in line with the GHG Protocol, using the kilometres travelled and the type of vehicle used in 2025 as input data for the Italian locations. Emission factors, expressed in kgCO 2 e/km travelled and converted to tCO 2 e/km travelled, come from the Department for Energy Security and Net Zero (DESNZ) database. For the foreign locations, the Spend-Based Method was applied using the Euro expenditure on travel as input. As in Category 1, emission factors provided by Eurostat based on the specific economic activity in the Environmentally-Extended Input-Output (EEIO) database were used.
•Category 7 'Employee commuting': this category includes indirect emissions generated by employees' commuting between their home and place of work. In order to collect information on commuting habits, an internal survey is periodically carried out by means of a questionnaire addressed to employees, which records the type of vehicle used, the days of smart working, the distance travelled and the type of fuel used.
Emissions for employees who responded to the questionnaire are estimated using the distance-based method. For non-respondents and foreign locations, the 'Average Data Method' is applied instead, using the average values generated by the commuting model. Emissions were then calculated using emission factors from the Department for Energy Security and Net Zero (DESNZ) database.
•Category 15 'Investments': the quantification of the issues financed involved the combined use of counterparty data, where available, and sector data for the coverage of the remainder of the portfolio. In particular, Scope 1 and Scope 2 emission data (verified and unverified) obtained through external suppliers, master data bases, internal accounting and management systems were used. In line with the Partnership for Carbon Accounting Financials (PCAF) framework, counterparty point data were assigned
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quality scores of 1 or 2, while the use of sector proxies was associated with scores of 4 or 5, depending on the level of granularity and reliability of the available information.
With regard to the processing of sectoral data, a structured information gathering and consolidation exercise was carried out in the first phase, aimed at ensuring the robustness of the estimates. The sectoral approach allowed the use of official and certified sources, including sectoral business volumes from Bank of Italy data, sectoral GHG emissions available from the European Environment Agency, as well as some sectoral financial information, such as the Debt to Asset ratio, from Bloomberg. Based on this information, the calculation of sectoral Emission Intensity was then implemented, a key element for estimating the environmental impact of different investment sectors. Once the perimeter of analysis was defined, the emission intensity values were attributed to the individual counterparties in the portfolio on the basis of their prevailing economic activity, by means of punctual mapping by ATECO code. As an alternative to this structured process, for some specific cases the sectoral emission intensity was derived from Eurostat's Environmentally Extended Input-Output (EEIO) tables, which provide average emission factors per NACE sector, expressed in terms of emission intensity per unit of turnover at the average European level. Compared to the previous year, the calculation methodology was refined, allowing the inclusion of low emitting sectors as well. This development, together with the extension of the reporting to issues from government bonds, made it possible to increase the percentage of asset coverage.
In FY 2025, in fact, issues associated with Government Securities were also included in the scope of calculation for all countries, considering both securities classified as HTCs and HTCs, quantified according to the 'consumption based' approach provided for by the PCAF. Scope 1 emissions were obtained via the EEA database. For Scope 2, Scope 3 and export-related emissions of individual countries, the OECD Data Explorer dataset was used, with the most up-to-date data referring to 2020. To compensate for the time mismatch between sources, the methodology adopted involves applying a percentage increase to Scope 2, Scope 3 and Export emissions, based on an estimate provided by an external provider. All the emissions described above were then allocated by applying an allocation factor that takes into account the exposure to government bonds as a ratio of GDP adjusted for purchasing power parity and converted into Euro.
[E1-6 AR 46g,h]
The reporting boundary for Scope 3 includes Categories 1, 2, 3, 5, 6, 7 and 15, which cover the entire perimeter of the Group, as specified above.
Primary data was used for categories 3, 5, 6, 7 and 15. Specifically:
•Category 3, 'Fuel and energy-related activities': primary data account for approximately 97% of the total and are mainly derived from consumption records, such as utility bills or fuel cards;.
•Category 5, 'Waste generated in operations': the share of primary data is 2% and is based on point information from MUD declarations or waste management forms;
•Category 6, 'Business travel': for the Italian locations, the analysis was conducted without the use of estimates, using only primary data provided 98% by partners along the value chain. For foreign locations, in the absence of available primary data, the Spend-Based methodology was applied, in line with the GHG Protocol.
•Category 7, 'Employee commuting': primary data was derived from surveys that collected data from employees on their home-to-work commuting habits. In particular, two separate surveys were used for Ifis and the illimity Group, which ensured a primary data coverage of 79% and 72% respectively;
•Category 15, 'Investments': primary data cover 8% of the perimeter and are obtained through external suppliers. For the remaining portion of the portfolio, the quantification was performed using a sectoral approach, without using primary counterparty data.
For the remaining categories, methodologies were adopted that did not allow the use of primary data. In particular:
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Category 1, 'Purchased goods and services' and Category 2, 'Capital goods', were calculated using the 'Spend-Based' methodology, applied to the product categories of other administrative expenses and details from the asset books purchased in the current year.
[E1-6 DP 51, AR 46g]

Gross Scope 3 GHG emissions by category (1) | UoM | 2025 | 2024
Purchased goods and services (2) | tCO 2 e | 39.108 | 32.862
% of scope 3 GHG calculated using primary data | 0 | 0
Capital goods(2) | tCO 2 e | 48.575 | -
% of scope 3 GHG calculated using primary data | 0 | -
Fuel and energy-related activities(3) | tCO 2 e | 659 | -
% of scope 3 GHG calculated using primary data | 97 | -
Waste generated in operations (3) | tCO 2 e | 101 | -
% of scope 3 GHG calculated using primary data | 2 | -
Business travel (4) | tCO 2 e | 477 | 446
% of scope 3 GHG calculated using primary data | 98 | 98
Employee commuting(3) | tCO 2 e | 1.856 | -
% of scope 3 GHG calculated using primary data (Parent company) | 79 | -
% of scope 3 GHG calculated using primary data (illimity) | 72 | -
Investments (5) | tCO 2 e | 5.127.671 | 3.227.564
% of scope 3 GHG calculated using primary data | 8 | 0

(1) The reporting boundary for Scope 3, in Categories 1, 2, 3, 5, 6 and 7, includes the entire Group. For Category 15, on the other hand, the analysis concerns the Group, net of the exclusions reported in connection with AR 46g,h.
(2) For the calculation of categories 1 and 2, the emission factors provided by Eurostat based on the NACE economic activities contained in the Environmentally-extended input-output (EEIO) database were used
(3) For the calculation of categories 3, 5 and 7, emission factors from the Department for Energy Security and Net Zero (DESNZ) were used.
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(4) For the calculation of category 6, the Department for Energy Security and Net Zero (DESNZ) emission factors and the emission factors provided by Eurostat based on the NACE economic activities contained in the Environmentally Extended Input-output (EEIO) database were used.
(5) For the calculation of category 15, the emission factors described in AR 39b were used. Exposure figures are reported as at 31 December 2025. It is specified that this category was deemed not applicable for Fürstenberg SIM.
[E1-6 AR 46i]
With regard to the other Scope 3 indirect emission categories under the GHG Protocol other than those reported, it should be noted that the Bank conducted internal assessments to verify their applicability and relevance to its business model. As a result of these analyses, these categories were excluded from the report because they were deemed not applicable, irrelevant or difficult to quantify due to the complexity of finding input data. With a view to continuous improvement, reporting will be refined annually, incorporating, where possible, any category emission sources excluded for the reasons described above 45.
Gross scope 1, 2, 3 and Total GHG emissions
[E1-6 DP 44,52a,b]

Total GHG emissions | UoM | 2025 | 2024
Total GHG emissions location-based | tCO 2 e | 5.221.635 | 3.263.895
Total GHG emissions market-based | tCO 2 e | 5.220.895 | 3.262.960

[E1-6 DP 47]
During 2025, the Group finalised the acquisitions of the illimity Group and Fürstenberg SIM. These operations led to a change in the reporting boundary, so the results of the current reporting year are not fully comparable with those of previous periods.
[E1-6 DP 55]
For the purpose of calculating DP 53, 'net revenues' are reported in accordance with Article 43, paragraph 2, letter c) of Council Directive 86/635/EEC by including the following consolidated items as at 31 December 2025 (in thousands of Euro): interest and similar income, securities income, commission income, net components from financial transactions, and other operating income.
Specifically, the following items of the consolidated income statement 262 were considered: 10, 40, 70, 80, 90, 100, 110, 230 (positive components only), 250 and 280.
[E1-6 DP 53, AR 55]

GHG emissions intensity | UoM | 2025 | 2024
Net revenues | €/000 | 1.530.793 | 1.061.292
GHG emissions intensity, location-based (total GHG emissions per net revenue) | tCO 2 e/€ | 3,4 | 3,1

45 Excluded categories include: upstream transport and distribution (Category 4), upstream leasing activities (Category 8), downstream transportation and distribution (Category 9), processing of products sold (Category 10), use of products sold (Category 11), end-of-life treatment of products sold (Category 12), downstream leasing activities (Category 13) and franchising activities (Category 14).
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GHG emissions intensity, market-based (total GHG emissions per net revenue) | tCO 2 e/€ | 3,4 | 3,1

Net revenue of 1,5 billion Euro as at 31 December 2025 was 44% higher than at 31 December 2024 (1,1 billion Euro). In addition to the contribution from the inclusion of the illimity Group's six-month net revenue, the change was mainly attributable to the IFRS 3 'gain on a bargain purchase' of 309,9 million Euro (included within 'Other operating income'), resulting from the acquisition of illimity Bank on 4 July 2025.
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[E1-6 AR 48]

|  | Retrospective | Target
| Base year | 2024 | 2025 | %2025/2024 | 2030 | Annual target % / Base year (1)
Scope 1 GHG emissions |  |  |  |  |  |
Gross Scope 1 GHG emissions (tCO 2 e) | 1.974 | 1.974 | 2.280 | 16% | 1.776 | 2%
Percentage of Scope 1 GHG emissions from regulated emissions trading schemes (%) |  |  |  |  |  |
Scope 2 GHG emissions |  |  |  |  |  |
Gross location-based Scope 2 GHG emissions (tCO 2 e) |  | 1.049 | 907 | -14% |  |
Gross market-based Scope 2 GHG emissions (tCO 2 e) |  | 114 | 168 | 47% |  |
Significant Scope 3 GHG emission |  |  |  |  |  |
Total Gross indirect (Scope 3) GHG emissions (tCO 2 eq) |  | 3.260.872 | 5.218.447 | 60% |  |
1. Purchased goods and services | - | 32.862 | 39.108 | 19% |  |
2. Capital goods | - | - | 48.575 | - |  |
3. Fuel and energy-related activities | - | - | 659 | - |  |
5. Waste generated in operational activities | - | - | 101 | - |  |
6. Business travel | - | 446 | 477 | 7% |  |
7. Employee commuting | - | - | 1.856 | - |  |
15. Investments |  | 3.227.564 | 5.127.671 | 59% |  |
Total GHG emissions |  |  |  |  |  |
Total GHG emissions (location-based) (tCO 2 e) |  | 3.263.895 | 5.221.635 | 60% |  |
Total GHG emissions (market-based) (tCO 2 e) |  | 3.262.960 | 5.220.895 | 60% |  |

(1) The target was set every five years, so it is not possible to report the annual variation.
The targets shown in the table refer to the reporting boundary applied in the previous year.
Following the consolidation of recent acquisitions, the process of defining Group-wide decarbonisation targets will be initiated during the next financial year, with the aim of ensuring the alignment of perimeters, methodologies and reference time horizons.
It should therefore be noted that, considering the Base Year 2024, on a like-for-like basis with respect to the other CSRD 2025 indicators, the share of Scope 1 currently covered by the target would reach 87%.
With reference to the emission targets on the most relevant sectors in terms of materiality (with particular reference to the automotive world, i.e. Auto Leasing, Truck Leasing, Automotive Manufacturers and Distributors, representing more than 80% of the financed exposures and emissions considered by the NZBA), reference can be made to the table on ESRS E1-4 DP 34a,b, AR 25a,b in which the 2030 targets, expressed in gCO 2 e/km, are shown.
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[E1-6 AR 43c, AR 45e]
Biogenic CO ₂ emissions for Scope 1 and 2 are not applicable as the Group does not use biomass, biofuels, biogas or other bioenergy sources; similarly, for indirect Scope 3 emissions, the reported categories do not include emission sources related to the biodegradation of biomass or the use of biogenic fuels.
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2.3 E4 - Biodiversity and ecosystems
Material impacts, risks and opportunities
Banca Ifis considers it essential to integrate environmental, climate change and biodiversity issues within its risk assessment processes and banking decisions, adopting a responsible and sustainable approach. This vision is concretely reflected in the Group’s commitment to specific projects, which aim to reduce environmental impact, preserve biodiversity and promote the transition to a low-carbon economy.
For the current reporting year, the Group has not identified measurable metrics and targets in the area of biodiversity; however, it has regulated these in specific Policies with a view to continuous engagement.
[E4.SBM-3 DP 16a,aii]
In view of the fact that the Bank's Head Office in Venezia Mestre is home to an International Sculpture Park located in the over 22 hectares of gardens of Villa Fürstenberg, a positive impact related to contributing to the conservation of biodiversity and the protection of ecosystems and an opportunity related to the promotion of initiatives and investments that favour the protection of ecosystems, biodiversity and the conservation of the land within the Bank's infrastructure were identified as material. Although no specific material IROs were detected, the Bank considers it of paramount importance to also consider biodiversity topics within business considerations with reference to its value chain.
[E4.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon
Biodiversity and ecosystems
Contribution to the conservation of biodiversity and the protection of ecosystems through the activities carried out within the framework of park and nectar forest protection | Potential positive impact | Own operations | Medium-term
Promoting initiatives and investments that foster ecosystem protection, biodiversity and land conservation within the Bank's infrastructure | Opportunity | Own operations | Medium-term

Group approach and reference policies
[E4-2 DP 22]
The Group defines principles and guidelines for environmental protection decisions, including biodiversity, through its ESG Policy (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview), pledging to protect nature and support the transition to a sustainable, green economy.
[E4-2 DP 23a,b,c, 24a]
The Bank's commitment to biodiversity is integrated into the business model as a strategic element of its credit policies, finding expression in the Credit Policy (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview). The latter integrates the biodiversity dimension into the risk assessment and management of credit exposures, considering the environmental impacts generated by counterparties' activities and their attention to the protection of natural ecosystems. The Credit Support, ESG & Monitoring business unit integrates environmental and climate considerations into the analysis of the counterparty's ESG risk profile, in the related appraisal supplement and through dedicated ESG questionnaires. Within this scope, information on the biodiversity of counterparties is collected, where this information is publicly
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available and concrete, as defined in the Credit Policy. In addition to this, the Group analyses within the Materiality Assessment process the issue of biodiversity, which is included among the criteria for assessing the materiality of the climate (both physical and transitional) and environmental (e.g. biodiversity-related) risks to which the Banca Ifis Group is exposed, with the ultimate aim of mapping and identifying traditional risks that could be affected by such events.
Actions
[ESRS 2 MDR-A DP 68a,b,c]
[E4-3 DP 27]
The Bank's commitment to contribute directly to the preservation of biodiversity and the protection of ecosystems is realised, mainly within the International Sculpture Park, the exhibition space housed within the more than 22 hectares of gardens surrounding the 16th-century Villa Fürstenberg, the Group's historic headquarters. In this space, the often monumental works of great Italian and international masters of contemporary sculpture merge with their surroundings, creating a place where nature and sculpture dialogue in a timeless embrace. Within the park, lawns are mowed regularly, hedges are pruned and kept tidy, and the clearing of pathways of weeds is kept under constant control, in order to enhance the environment and the works included. The constant attention and care of the flora in the park is a fundamental element in the protection of the ecosystems: for example, thousands of bulbs including narcissus, hyacinths, snowdrops, fritillaria, semi-annual plants and ornamental perennials have been planted, as well as new trees to compensate for the maintenance work. The visual experience has recently been enhanced by a privet maze that fits harmoniously into the artistic context of the park. Checks are carried out on the degree of stability of the area's remarkable botanical heritage, monitoring the species present, first of all with the identification and cataloguing of each plant individual starting with the trees. Careful visual observation plays a very important role in the approach, which is then supplemented according to the protocol of the Italian Arboricultural Society. To date, 3.400 trees have been counted, in addition to the more recently planted ones, in the total area comprising the fifteen hectares under protection. It is a huge job that involves a forestry technician and gardeners who routinely take care of the park. These preventive investigations are of fundamental importance, not only to be able to remedy critical situations and secure the area, but also and above all in view of the increasingly frequent effects of climate change. With the aim of verifying the effectiveness of the actions taken, the Communications, Marketing, Public Affairs & Sustainability Department receives regular updates on its nectariferous forest and monitors the material KPIs.
In order to enrich the biodiversity of the Park, the volume “La Natura della Scultura contemporanea – Il Parco Internazionale di Scultura di Banca Ifis: storie, idee, visioni” [The Nature of Contemporary Sculpture - The Banca Ifis International Sculpture Park: Stories, Ideas, Visions], was produced. This work, also distributed to employees, tells the story of the Park, the artists, the works included and the tree species it houses, focusing on the flora and fauna present. In addition to activities that protect and enhance biodiversity within the Park, the Bank is committed to promoting biodiversity, including through the 'Oases of Biodiversity' project, developed in collaboration with 3Bee.
Through this initiative, the Group has planted 100 nectariferous trees in two different areas of Italy (Lombardy and Lazio) building two real nectariferous forests where the trees are protected and cared for by specific local growers. In this way, in addition to increasing and protecting the biodiversity of the land, trees contribute to the absorption of CO 2 in the air, promoting a healthier and more resilient environment. Within the Banca Ifis Oasis, there are seven different types of trees (hawthorns, wild blackthorns, Judas trees, wild cherry trees, laurels, charcoal-burner broom and hogweed) specially chosen as the types that most attract and nourish pollinating insects within the forest (on average, more than 7700 pollinators are nourished annually). Nectariferous plants within the forest produce a total of approximately 78 kg of nectar over a 20-year average, with an absorption of 305,9 K CO 2 per year potential.
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3. Social
3.1 S1 - Own workforce
Material impacts, risks and opportunities
[S1.SBM-3 DP 13a,15]
The centrality of people in Banca Ifis's strategy is reflected in the close connection between the impact on its own workforce and the focus on Ifis People. The Group in fact recognises that employees are an essential resource, not only for their contribution to economic results, but also for the crucial role they play in consolidating the corporate culture and promoting the values of social and ethical responsibility. Consistent with this vision, Banca Ifis gives strategic priority to investing in the growth and development of human capital, through an effective training system and the strengthening of dialogue and cross-functional relations between the various corporate functions, supporting equal opportunities, inclusiveness and respect for human rights. Further areas of focus include protecting the health and safety of workers, improving retention and attracting new talent, enhancing work-life balance, and promoting an inclusive, discrimination-free working environment. The targets set by the Group and the numerous actions implemented confirm the centrality of these issues in the corporate strategy, which will form the basis of the next Business Plan. Investing in human capital is a key element of the Group's sustainability strategy, which aims to generate long-term value not only through financial performance, but also by encouraging the active engagement of employees and their development of skills in view of future challenges.
[S1.SBM-3 DP 14,a,16]
As part of the double materiality assessment, the Banca Ifis Group investigated the impacts, risks and opportunities across all Ifis People 46, including both employees and non-employees. For more information, see the Metrics section "Characteristics of the enterprise's employees" (see 3.1 S1 - Own workforce, section 3.1.10 Metrics, S1-6).
[S1.SBM-3 DP 14b]
With regard to significant negative impacts, these were identified as potential and related to individual incidents. In particular, they concern: (i) health and safety, with particular reference to potential harm to workers arising from occupational injuries and illnesses; (ii) unequal treatment arising from incidents of harassment and/or discrimination due to non-inclusive practices in the workplace and the gender pay gap for equal employment and skills or difficulty in accessing senior positions or professional growth paths for the less-represented gender; (iii) working conditions related to employment instability, resulting from the high use of fixed-term and/or temporary contracts; and (iv) right to privacy, especially with regard to potential violations arising from inadequate management systems or ineffective application of procedures and preventive actions. These impacts are adequately prevented and handled, as better explained in the following paragraphs, and can affect all types of workers in their own workforce.
[S1.SBM-3 DP 14c]
At the same time, the analysis revealed positive impacts affecting the entire employee population of the Banca Ifis Group 47. The actions taken by the Bank to generate these impacts are described and detailed in the sections on Work-life balance (see 3.1 ESRS S1 - Own workforce, section 3.1.2 Work-life balance, DP 38c), Training and skills development (see 3.1 ESRS S1 - Own workforce, section 3.1.3 Training and skills development, DP 38c), to Equal treatment and opportunities for all (see 3.1 ESRS S1 - Own workforce, section 3.1.4 Equal treatment and
46 It should be noted that, with particular reference to the identified risks related to employees, these refer to the entire workforce without distinguishing categories of workers who are more exposed to risk with particular characteristics, who work in particular contexts or who perform certain activities.
47 Refer to the description of the types of employees in the metrics section.
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opportunities for all, DP 38c) and to Working conditions (see 3.1 ESRS S1 - Own workforce, section 3.1.5 Working conditions, DP 38c).
[S1.SBM-3 DP 13b,14d,15]
Aware of the strategic importance of its workforce, Banca Ifis has identified significant risks and opportunities arising not only from the impacts and dependencies related to human capital management, but also from the Group's strategy and business model. The main risks identified include potential discrimination and violations of employees' rights, labour law defaults and disputes related to working conditions, as well as the risk of breaches of privacy, system and data integrity failures and unavailability of IT infrastructures, including as a result of cyber-attacks or inadequate internal processes.
To mitigate the risks associated with discrimination, the Group has launched initiatives aimed at fostering the inclusion and enhancement of diversity through projects included in Kaleidos, helping to strengthen a fair and sustainable corporate culture. These actions are aimed at fostering a safe, inclusive and growth-oriented working environment, contributing to the reduction of operational risks and strengthening the company's ability to attract, develop and retain talent in the long term. At the same time, to mitigate the risks of data loss and breach of privacy, initiatives were implemented to protect confidentiality and data security, including training activities for cybersecurity certifications and awareness-raising programmes on the correct behaviour to prevent cyber-attacks.
Among the main opportunities, again identified within the same double materiality process, are initiatives aimed at improving working environments, including through the promotion of actions dedicated to the protection of confidentiality and privacy. In addition, the Banca Ifis Group has adopted measures dedicated to work-life balance and employee welfare, the development of initiatives for professional growth and continuous training, as well as projects aimed at promoting values such as gender equality, inclusion and valuing diversity. These actions, in addition to enhancing organisational well-being, contribute to making the Bank more resilient and competitive in the long term, improving the ability to attract and retain talent and ensuring a constant alignment between internal competencies and the institution's strategic needs.
[S1.SBM-3 DP 14e]
Lastly, it is specified that the transition plan defined by the Group, aimed at reducing negative impacts on the environment, does not produce significant impacts on Banca Ifis's workforce, as it focuses on initiatives aimed at the most relevant sectors of the counterparties in its portfolio, linking initiatives to specific business opportunities and performance metrics.
3.1.1 Health and safety
Banca Ifis Group considers occupational safety and health protection of its employees as priority and non-negotiable objectives. Every activity and phase of the company's life must comply with adequate safety standards, since compliance with these requirements is the minimum condition for guaranteeing the legitimacy of business processes and fostering organisational efficiency. Taking into account the various existing and emerging risks, Banca Ifis is committed to continuously improving its performance in the area of safety and health protection for all.
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[S1.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon
Health and safety
Damage to workers resulting from occupational accidents and diseases | Potential negative impact | Own operations | Medium-term
Improvement of the corporate environment, taking into account the new dynamics related to different ways of working and employee safety | Opportunity | Own operations | Medium-term

Group approach and policies
[S1-1 DP 19]
Banca Ifis oversees occupational health and safety issues in a structured manner through the adoption of the Corporate Health and Safety Policy, which expresses the Group's commitment to promoting healthy working environments that comply with regulatory and management standards (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview). The policy, supported in its implementation by the Integrated Safety and Environment Manual, defines principles and responsibilities relating to the prevention of occupational risks, the protection of workers' welfare and the continuous improvement of Health & Safety performance. In addition, the Group, as stated in the ESG Policy (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview) is committed to meeting adequate safety requirements and ensuring a safe, healthy and inclusive working environment, including through the prevention and mitigation of psychosocial risks and the promotion of physical, psychological and social well-being.
[S1-1 DP 23]
The Integrated Safety and Environment Manual establishes, among other things, a specific procedure for the management of accidents and injuries at work, defining the responsibilities, the operating methods to be adopted in the event of an accident, incident, dangerous behaviour or sickness, and the analysis of events for accident management, providing for the implementation of any improvement actions. The Group has also defined, within its organisational structure, appropriate operating procedures, sensitive processes, and the human and economic resources necessary to pursue high standards of health and safety in the workplace.
Actions
[ESRS 2 MDR-A DP 68a,b,c]
[S1-4 DP 37,40b]
The Banca Ifis Group is actively committed to guaranteeing the health and safety of its employees, recognising in the constant improvement of the corporate environment and in the promotion of initiatives aimed at well-being strategic opportunities to grow as a company that cares about people. On the one hand, it works to optimise company space, with a focus on new dynamics related to different working methods and safety protection; on the other hand, it promotes initiatives aimed at improving the well-being and protecting the health of employees and their families.
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With these aims, in 2025, environmental monitoring and surveys were carried out to assess the internal well-being of property workplaces, performing air and water quality analyses at the Group’s main locations and monitoring noise levels and micro climate, which have resulted in the adoption of improvements.
In addition, the Group launched a restructuring process of its offices with a view to improving flexibility and sustainability and supply functional, comfortable environments, with an innovative design: offices, meeting rooms and common areas feature furnishings and new technologies that promote the exchange and sharing of information. For example, the building restructuring of the offices sees particularly close attention being paid to new dynamics linked to co-working procedures, flexibility of space and remote working.
With reference to the promotion of initiatives for the well-being of employees and their families, the partnership with a third party continued in 2025, through which employees benefit from unlimited access at a discounted price to sports centres and gyms throughout the country, as well as free on-line digital training, live streaming and on-demand, and other services such as nutritional counselling at a discounted rate. A partnership was also renewed with Italy's leading online psychology service, which aims to promote the psychological well-being of the Bank's people by offering five free sessions with online professionals and subsidised rates for any follow-up meetings, to support both work and personal issues.
In the area of topics related to psychological-physical well-being and relational and emotional areas of people's lives, Banca Ifis also continued its collaboration with Welfood. In 2025, six online meetings of the 'Ifis Feelings' column, dedicated to affection and couple relationships, took place. Recordings of all meetings are also made available on demand on the company intranet.
In order to promote a positive working environment and prevent possible inappropriate behaviour, in addition to the training activity with the Trust Adviser on the Group Policy for Combating Discrimination, Violence and Harassment, in November the Bank delivered a training awareness webinar on digital communication, aimed at the entire corporate population. The aim of the initiative was to raise awareness of the risks associated with the use of the Internet, social media and artificial intelligence, providing them with the tools to recognise and counteract online discrimination and violence.
At the same time, the Group continued to pursue a series of initiatives to promote the health and safety of its employees and their family members. Within the framework of Kaleidos, a blood donation day was organised in 2025 in cooperation with AVIS at the Via Borghetto office in Rome, in which more than twenty colleagues signed up; a similar initiative had also been carried out at the end of the previous year at the Via Bianchini office in Rome. Also in this context, the partnership with WelfareCare continued, aimed at spreading the culture of preventive healthcare. In 2025, some 900 mammography and breast ultrasound examinations were performed and offered to employees and their families thanks to the WelfareCare mobile clinic brought to sites in Milan, Mestre, Mondovì, Florence, Ravenna and Bari.
[S1-4 DP 37,38a]
The Banca Ifis Group is actively committed to preventing the possible negative impact of occupational accidents and illnesses, implementing targeted measures to protect the health and safety of its employees with the aim of protecting their well-being and ensuring business continuity in a safe environment.
More specifically, the Group's staff are called to comply with health and safety provisions as well as attend mandatory training programmes. This is partly outsourced and mainly supplied by the Prevention and Protection Service, suitably trained to this end, and is delivered exclusively during working hours, free of charge and with a final test. In 2025, the Group provided around 2.700 hours of mandatory training on health and safety practices and procedures.
Group employees, in addition to undergoing regular statutory health checks, have comprehensive health cover for illness, accident, permanent disability and life in the event of death.
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Finally, occupational medicine and health surveillance are outsourced to a national network of appointed physicians, coordinated by a coordinating doctor. Under no circumstances does the internal organisation become aware of the medical data of its employees.
[S1-4 DP 38d]
In order to ensure the effectiveness of its internal controls, the Banca Ifis Group has structured an internal monitoring system to ensure compliance with the principles described in the Group Policy and the proper implementation of the actions taken. In this context, the Prevention and Protection Service conducts safety audits on a regular basis, paying particularly close attention to newly opened locations or offices, and where significant changes are made to the layout of work environments. In addition, it provides regular information flows to the Supervisory Body, reporting on health and safety activities. These flows include an annual reporting of the controls carried out, which allows us to verify the correct application of the mitigation procedures laid down in the Integrated Safety and Environment Manual. The assessment and updating of risks, collected in the site-specific Risk Assessment Document (DVR) and the Assessment of Risks of Interference (DUVRI), are continuously monitored, with particular attention to building safety, emergency preparedness, management of contracted activities and interference risks. Any non-conformities are handled through in-depth analysis and the adoption of corrective measures by implementing all necessary actions in advance and with priority.
In the event of an accident in the workplace, the Integrated Safety and Environment Manual provides, as already mentioned, a procedure for analysing and managing accidents, with the introduction of improvement and/or mitigation actions to prevent the occurrence or repetition of such events. These actions are subsequently monitored by verifying their effectiveness through on-site visits and the direct involvement of employees during training.
[S1-4 DP 39]
As part of the Integrated Health and Safety Management System, the Group also has processes in place to identify preventive mitigation measures and establish priorities for action.
In particular, the occupational health service works with the Employer and the Prevention and Protection Service to identify and assess all risks. In addition, it carries out annual inspections of work sites to verify compliance with health and safety measures. The appointed physician plans and carries out health surveillance, preparing, updating and keeping custody of, at his own responsibility, the medical records and risk factors of each and every worker.
The system is based on a three-level control hierarchy is adopted, entrusted to trained and competent figures. The first level is represented by the supervisors, who operate through a new portal dedicated to the sharing and management of operational controls; the second level involves the Prevention and Protection Service; the third level involves a third-party audit. Completing this system, the Internal Audit function carries out spot checks to verify compliance with the procedures envisaged by the Integrated Manual.
In addition, the Manual contains, in its procedures, all formal instruments necessary for any workers to make reports to the Prevention and Protection Service of any potentially damaging situations or dangerous behaviour, in order to collect useful information with which to identify future action to be taken.
[S1-4 DP 41]
Lastly, Banca Ifis ensures that its business practices cannot in any way compromise the health and safety of its workforce, thanks to health surveillance contracts that actively guard against such effects, in accordance with the regulatory provisions in force from time to time.
[S1-4 DP 43]
The Employer, supported by the Prevention and Protection Service and the competent doctor, has the task of identifying risks and managing the relevant preventive measures, in order to ensure a safe and secure workplace for employees. Through the HR Business Partner and Safety, Environment & Real Estate Projects functions, shall ensure (pursuant to Legislative Decree No. 81/08) that each worker receives adequate information and training
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on safety, with particular regard to occupational health and safety risks related to the company's activities in general or to the protection and prevention measures and activities adopted.
To this end, HR Business Partner requires the new employee to see further documents such as, for example, the file for the information and training of workers on residual risks and the protective measures applied.
3.1.2 Work-life balance
The Group optimises the balance between professional and private life in respect of the principle of equal treatment to all employees and collaborators, right from the selection phase, without any distinction or preference based on personal, social or membership characteristics. In particular, work-life balance is considered fundamental to employee well-being and organisational efficiency, contributing, for example, to reduced turnover and increased productivity.
[S1.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon
Work-life balance
Protection of work-life balance through the use of part-time contracts, remote work and flexitime, parental/family leave, time bank/extra leave | Actual positive impact | Own operations | Medium-term
Improving retention and attracting new talent through initiatives targeting employee health and safety and creating systems/tools to ensure a better work-life balance | Opportunity | Own operations | Medium-term

Group approach and policies
[S1-1 DP 19, AR 17a]
In line with the ESG Policy (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview), the Banca Ifis Group is committed to promoting the involvement and motivation of people, through actions aimed at fostering corporate well-being and promoting healthy lifestyles. In addition, Banca Ifis adopts the Group Policy for Employee Management (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview), which defines principles and guidelines for managing relations with employees.
Actions
[ESRS 2 MDR-A DP 68a,b,c]
[S1-4 DP 37,40b]
In pursuit of the opportunity to promote a work-life balance, the Group has planned to introduce innovative systems and tools that support the reconciliation of these two spheres, encouraging greater flexibility in working arrangements and improving the conditions for access to family benefits. These initiatives aim to ensure a working environment that meets individual needs, contributing to the overall well-being of all employees and strengthening the corporate culture.
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In particular, the two trade union agreements also applied in 2025:
•on 'smart working', 'welfare' and 'canteen ticket', aimed at supporting the management of the different stages of parenthood and promoting work-life balance. These agreements include specific onboarding programmes for mothers and fathers returning from maternity or paternity leave, a smart working plan that also allows them to work continuously from the fifth month of pregnancy until the sixth month of the child's life (without prejudice to the compulsory maternity period), and offers two days of smart working to parents with children up to the age of fourteen. They also provide for the possibility of concluding part-time contracts and, for particularly serious situations, the activation of teleworking through individual agreements;
•on flexibility which, while respecting the thirty-seven-hour working week, allows entry from 8.00 until 10.30, so that entry and exit times can be brought forward or delayed compared to the standard time (9.00 - 17.30). It is also possible to take a half-day leave by compensating the hours not worked on that day with an increase in working hours spread over the other days of the week.
In addition, during 2025, the Group signed new agreements with trade unions, introducing further measures to support people's well-being and work-life balance. In particular, new paid leave has been envisaged, including 10 hours per year for medical examinations, plus an additional 10 hours for travel time, dedicated leave for children's inclusion in kindergartens, as well as an extension of paternity leave, with the introduction of an additional 10 paid days in addition to those already provided for under current legislation for new fathers or fathers on the way.
With reference to supplementary pension, against a minimum employee contribution confirmed at 1%, the Bank increased its contribution to supplementary pension funds to 2,25% or 2,75% depending on the classification, with the aim of reducing the pension gap between Professional Areas and Middle Managers. The new contribution rates apply, for employees already members of the Fund, as of 1 January 2025.
[S1-4 DP 37,38c]
The implementation of a system of welfare policies and actions aimed at promoting a better work-life balance for all employees, such as work-life balance initiatives and programmes to support family needs, contributes to creating a positive impact on Ifis People's quality of life.
Numerous initiatives have been renewed for 2025 as well, testifying to the Bank's commitment to the well-being of all its employees. These include the benefits package, which in turn comprises subsidised mortgages, health and pension insurance, a supplementary pension fund and canteen tickets, confirming the focus on an increasingly effective balance between private and professional spheres. The agreement on meal vouchers remains in force and extended to all employees, including those working in smart working or part-time mode. The expected result of adopting the above initiatives is to improve people's work life balance and well-being.
As further confirmation of the Bank's attention to the needs of employees, the DE&I Survey was administered in 2025, with the aim of identifying effective actions consistent with the needs that emerged. The results collected contributed to the definition of a specific Action Plan, included in the Gender Equality Business Plan drafted pursuant to the UNI/PdR UNI/PdR 125 Gender Equality Certification: 2022.
[S1-4 DP 38d]
The Human Resources Department collects and analyses data on the implementation of the above-mentioned initiatives, monitoring the effectiveness of the actions undertaken through detailed analyses.
[S1-4 DP 43]
The Group's Human Resources are directly involved in the management of material work-life balance impacts. In particular, activities are divided between the Labour Law Relations function, responsible for the adoption of internal HR policies, HR Business Partner, in charge of managing and monitoring impacts, and Total Reward & Controlling, in charge of the quantitative reporting of the results obtained through the actions undertaken.
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[S1-4 DP 37]
Similarly, the illimity Group has implemented a flexible and customisable corporate welfare system, with a strong focus on the psycho-physical, professional, social and financial well-being of its employees. illimity promotes constant listening and transparent communication, thanks to the annual Great Place to Work © survey and targeted action plans, such as transversal work tables and team building initiatives, to foster well-being and a sense of belonging. The results of these initiatives are highlighted by certification, for the sixth consecutive year, as Great Place to Work ©, reflecting the company's appreciation for DE&I, sense of team and pride in belonging. In addition, projects aimed at streamlining processes and strengthening internal communication were initiated.
3.1.3 Training and skills development
The Banca Ifis Group attaches a central role to training and skills development as strategic levers for the personal and professional growth of its employees and associates. To this end, the Group promotes training plans structured on a continuous learning model and dynamic skills management, with the aim of accompanying each employee on a personalised professional growth path. Attention to the transparency of evaluation systems and development opportunities is crucial to ensure that each employee can fulfil his or her potential to the fullest. Through these initiatives, Banca Ifis supports not only the improvement of individual performance, but also the development of an excellence-oriented working environment.
[S1.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon
Training and skills development
Developing employees' skills through training, development and talent development programmes within Ifis Academy | Actual positive impact | Own operations | Medium-term
Enhancement of individual performance through appropriate performance appraisal systems and professional development plans | Actual positive impact | Own operations | Medium-term
Improving the retention and attraction of new talent through an effective training system and strengthening dialogue and cross-functional relationships | Opportunity | Own operations | Medium-term

Group approach and policies
[S1-1 DP 19, AR 17a]
Employee training is managed in accordance with the previously mentioned Group Policy for Employee Management (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview) with a focus on recruitment, evaluation and training processes. In line with the principles of the ESG Policy (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview), the Group is committed to enhancing its human capital, promoting the continuous training and professional growth of its employees, in order to ensure that they are equipped with the skills and professionalism needed to perform the responsibilities assigned to them, in a context aimed at promoting individual well-being and professional development.
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Actions
[ESRS 2 MDR-A DP 68a,b,c]
[S1-4 DP 37,40b, AR 17h]
The Banca Ifis Group promotes the growth of its workforce through a structured and effective training system, considering it an important opportunity for internal skills strengthening and innovation.
The Ifis Academy, an in-house training school inspired by the Group's leadership model, combines technical and behavioural skills and is at the heart of the talent enhancement and development system. In 2025, the attention paid to training its employees resulted in 59.842 hours provided to the corporate population, distributed among executives (1.906 hours), middle managers (22.789 hours) and office workers (35.147 hours), demonstrating the importance attached to continuous growth and professional excellence at every level of the organisation. Of these, 28.293 hours were dedicated to female workers and 31.550 hours to male workers, showing a balanced focus on training all employees, regardless of gender.
It should also be noted that a total of 59.842 hours of training were provided, distributed among the following areas: health and safety (2.712), anti-corruption (1.553), anti-money laundering (6.287) and 'other 48'.
During the year, a five-year partnership was also signed with Digit'Ed S.p.A., active from 2026, which focuses on content delivery through advanced teaching methodologies and cutting-edge digital technologies, such as artificial intelligence, adaptive learning and an experiential approach. Thanks to this collaboration, Ifis Academy will consolidate its positioning as a strategic asset for the Bank's sustainable growth, with the aim of enhancing its distinctive skills and anticipating the challenges of the banking, economic and financial sector in an ever-changing environment.
In order to identify the managerial potential of Ifis People and take care of their growth in a proactive and constant manner, the mapping of internal talent continued during 2025. The project provided a snapshot of the profiles present in the Bank and will be accompanied by regular and constant monitoring to ensure effective tracking of key figures.
Depending on the subject area and the desired level of knowledge, the Human Resources Learning and Development Department promotes training programmes dedicated to the development of all the Group's people, selecting the most suitable teaching methods for each employee. Options vary between behavioural and management training workshops and laboratories, on-line courses, targeted technical training, seminars, on-the-job training, coaching and one-to-one interviews. The Ifis Academy provides the following training programmes and areas:
•Talent Accelerator, a macro-area which includes the Ready to Race project and the Start to Grow project, aimed at identifying and developing potential in the organisation. Ready to Race is a three-year course for around 50 employees who have been selected following an initial assessment phase. The course, run in cooperation with the professional group and independent institute The European House - Ambrosetti, sees a succession of training sessions, meetings with recognised speakers, company visits and trips abroad. For those who do not have an adequate level of English, dedicated language training has also been set up. As part of the various activities, participants are asked to work on topics central to Banca Ifis such as sustainability, innovation, business and digitalisation. In particular, 2025 focused on the link between business and sustainability, with the aim of developing a systemic mindset, understanding how sustainability gives value to business models and enhancing the connection between ethics and value generation. The course made possible a significant increase in participant satisfaction, promoting greater
48 'Other’ includes training hours provided in the ESG area.
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engagement with the organisation and obtaining greater loyalty among participating employees, which stands at 94%. Start to Grow completes the training offer of the Academy cluster dedicated to the Talent Accelerator and is designed as a path for a wide range of employees (approximately 130) who have the opportunity to develop their skills through training sessions that explore in detail some of the pillars of the Leadership Model. In 2025, the final event of the course took place: the participants were involved in an initiative that combined a visit to a major innovation hub in Bologna and a dynamic team activity with the aim of training the key competences covered by the initiative - agility, network building and self-management. In general, through these initiatives Banca Ifis intends to enhance decision-making and problem solving skills, preparing employees to make strategic decisions and stimulating their ability to think innovatively, as well as to promote cross-functional collaboration and increase their sense of belonging to the organisation;
•Business Accelerator, a macro-area that encompasses both training courses on business topics that can be applied for as part of the Performance Management process, as well as training courses aimed at specific structures of the Commercial & Corporate Banking and Npl business. In 2025, a significant evolution of the business pathways was launched, with the creation of two new Professional Programmes dedicated to new recruits: the programmes, developed in collaboration with 24ORE Business School, were created with the aim of accompanying colleagues on a path of growth that would make them autonomous and fully capable of interpreting their role with competence and confidence. In a parallel fashion, two Executive level courses are being planned, designed for more senior professionals, with the aim of strengthening the strategic and leadership skills needed to tackle the most complex business challenges. The development of these specific courses can enhance the specific competencies of these business functions, while promoting cross-functional collaboration and ensuring that each area contributes effectively to the organisation's overall objectives;
•People Accelerator, i.e. a series of initiatives aimed at the development and practical training of soft skills. These include a series of catalogue courses on Leadership Model competencies that employees can request as part of the performance management process and which are then organised annually on the basis of requests received, and the 'People Management Accelerator' course for managers and coordinators. The latest edition of the course, which involves around 40 participants and concluded in May 2025, made it possible to provide the necessary tools to better interpret one's role as a manager, promoting greater awareness and acquiring practical skills to adopt the behaviours and attitudes indicated by the Leadership Model; Two team coaching courses were also set up, dedicated respectively to Branch Sales Managers and Area Managers, with the aim of evolving the interpretation of the role in a managerial key, without forgetting the commercial peculiarity, by acting on people management skills;
•Digital library, a collection of digital training content available at all times, relating to current topics connected to behavioural, cultural, regulatory, technical and procedural matters;
•Mandatory training, which includes, amongst others, initiatives relative to: administrative liability of entities pursuant to Italian Legislative Decree No. 231/2001, operative requirements linked to the regulations on banking transparency, anti-money laundering, worker health and safety, IT security, regulation on personal data protection and business continuity, IVASS and MiFID 2. In particular, a new compulsory training content on artificial intelligence and the AI Act was included at the start of 2025, consisting of two modules: the first offers a general overview of artificial intelligence and its applications in business, with a focus on the ethical aspects and responsibilities associated with its use; the second delves into the objectives of the AI Act, prohibited practices and requirements for high-risk artificial intelligence systems, with practical guidance on how to adapt to the new regulations;
•Specific initiatives, i.e. transversal training initiatives activated and organised to meet specific organisational needs; among the most significant are the activities organised in relation to cybersecurity awareness, also in line with Bank of Italy Directive 2013/285, thus increasing the Bank's resilience against possible external cyber-attacks. In particular, targeted training was carried out in 2025 for some key figures with the aim of strengthening their skills in the cyber sphere, and a webinar open to the entire
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corporate population on cybersecurity, organised on the occasion of the European Cyber Security Month promoted by the European Union. The webinar provided an insight into how neuroscience can offer useful tools to recognise the psychological mechanisms behind cyber-attacks and protect our data more consciously. In addition, an up-skilling and re-skilling plan was launched targeting specific figures in the Bank with the aim of acquiring the necessary skills to acquire the cloud technology infrastructure. Finally, in the last months of the year, a training initiative was promoted to increase skills related to the use of Excel;
•Onboarding, a pathway to accompany new colleagues in their entry into the organisation. The course is inspired by Banca Ifis's commitment to the promotion of the Economy of Beauty and is structured around three main stages: the beauty of starting out, to welcome new colleagues and help them find their way through guided communications; the beauty of learning, to deepen their knowledge of the organisational context through dedicated live training sessions; and the Beauty of Meeting, to celebrate joining the Bank and meet new colleagues through an engaging and interactive moment;
•Specific training and updating, a macro-area that includes workshops, training courses, industry forums and activities organised both internally and externally, with the aim of ensuring continuous updating on new regulations and areas of expertise.
[S1-4 DP 37,38c, AR 17h]
The Banca Ifis Group recognises in people a fundamental asset for the achievement of its objectives, directing its personnel management towards the enhancement of individual skills, attitudes and abilities, and offering real opportunities for professional growth and realisation. Through a careful periodic evaluation process governed by the Group's Employee Management Policy, the Group recognises the importance of people development, considering investment in human potential an essential element in fostering innovation. In this context, measures were taken to consolidate the positive impacts of employee satisfaction and individual performance enhancement by improving training, development and staff management processes. The introduction of tools inspired by gamification principles has contributed to the enhancement of continuous learning and development, integrating motivational and engagement elements to foster dynamic and participative professional growth.
To support this approach, the Group uses the Ifis Talent platform, its own Talent Management System 49, which was upgraded in 2024 with a more intuitive interface and new functionalities. Within the platform, most of the activities related to the 'Perform Up' performance management process are digitised, which aims at enhancing individual performance and enables staff appraisal, access to customised training courses and professional development of individual employees. Within the platform, employees find all the tools they need to give continuity to their professional development and, at the same time, it allows managers to have a structured view of the evolution of their employees and to give them constant feedback on goals achieved, skills acquired and areas for improvement. The platform also makes it possible to: exchange feedback between employees from different areas; give feedback to one's boss or request it; and access digital pills with topics modulated according to the needs identified through the feedback gathered, thus supporting not only the personal awareness process, but also the acquisition of new references and behavioural methods. Access is also given to participation certificates, which are awarded at the end of certain relevant training experiences, and to 'badges', which are recognised on the basis of activities on continuous feedback and digital pills shared with employees.
In addition, the onboarding process has also been integrated within the Ifis Talent platform, with the aim of accompanying new recruits towards progressive autonomy, fostering team integration and developing a sense of belonging, through a series of individual and/or group activities. The platform also includes an extensive and constantly updated digital library to support the continuous training of all employees.
49 Currently only accessible to employees of Italian Group companies.
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illimity also maintained a strong focus on training, promoting an approach that combines transversal courses, aimed at strengthening technical skills and spreading ESG culture, with mandatory courses for all employees on key topics such as DE&I, environmental sustainability and harassment prevention.
The offer consists of four main pillars:
•compulsory training: includes key topics such as compliance, health and safety, IT security, ESG with a focus on climate risks and DE&I;
•specialised training ('illimity up'): offers courses according to the role and needs of the individual, accessible on demand. In the area of performance management, each employee can build, together with his or her manager, a development plan by choosing from the course catalogue, with access also to the LinkedIn Learning platform, which is useful for autonomous and creative learning; in addition, there is language training, with English courses assigned on the basis of the result achieved in the test taken on joining the company;
•managerial development programmes: pathways dedicated to new Team Leaders, Managers and high-potential employees (so called 'Top Rising Star'), selected with evaluation tools and the support of managers. Exchange and growth initiatives such as Cross Mentoring and internal Erasmus complete the offer;
•training initiatives to support the 'digital boost': a selection of courses from the LinkedIn Learning library and a series of webinars aimed at understanding how to work even better with the opportunities offered by technological innovation.
[S1-4 DP 38d]
The Banca Ifis Group monitors and evaluates the effectiveness of the appraisal process through internal analyses conducted by the Human Resources Department, which include the verification of the distribution of expected appraisals and the fulfilment of the contractual obligation to appraise by managers.
The performance management process is in line with the Group's new leadership model, with the aim of better responding to employees' needs, reflecting the principles of the model and enhancing individual contribution.
Concretely, the process involves a goal-setting moment at the beginning of the year when each employee makes his or her own goal proposal that the manager can review and supplement, as well as a mid-year performance review. At the same time, each employee can choose from an extensive catalogue of soft and technical courses those best suited to his or her development needs: the training on offer ranges from Leadership Model skills to banking culture and technical business knowledge.
A Mid-Year Review is scheduled for continuous feedback to monitor progress against targets, identifying any need for adjustment and providing timely feedback. The final phase is devoted to evaluation, a moment that, in a cyclical and recursive perspective, coincides with the phase of assigning objectives for the new year.
In addition, the digitisation of the performance management process through the Ifis Talent platform allows employees of Italian companies and, as of 2026, also employees of foreign companies, to freely comment on their evaluation. This tool gives the Human Resources Department an opportunity to gather further feedback on the process. For employees of foreign companies, on the other hand, the process is managed in cooperation with the relevant HR Business Partner, who ensures alignment between business needs and human resources management, supporting managers in maximising the potential of employees.
The effectiveness of the initiatives is confirmed by the increasing use of the Ifis Talent platform and the significant increase in the number of feedbacks exchanged between employees. In particular, this year too, six employees were rewarded, having obtained the 'Ifis Talent Super Ambassador' badge in 2024, achieving the highest level in the programme's three categories: enjoyment and sharing of digital pills and feedback exchange. The award ceremony maintained its focus on sustainability: an experience was organised in Castello Tesino, in Valsugana, one of the areas most affected by storm Vaia and today particularly devastated by the bark beetle attack. During the day, participants tried their hand at planting more than 90 trees of different species, including spruce, beech
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and larch, with the aim of fostering biodiversity and contributing to the revival of the area. The event was enriched by a dedicated workshop, in which experts in the field illustrated how climate change is impacting on the valley's forests, offering food for thought on the active role everyone can play in protecting the environment.
These initiatives demonstrate Banca Ifis's commitment to ensuring continuous training and empowering employees as active promoters of good business practices. Furthermore, in order to verify the level of satisfaction and effectiveness of the training activities delivered through Ifis Academy, constant monitoring is conducted at the end of each initiative to ensure alignment with the set training objectives and the achievement of quality standards.
The effectiveness of the actions undertaken is further enhanced through external recognition. The HR Innovation Practice Observatory of the School of Management of the Polytechnic University of Milan, in the 'Performance Management' category, awarded the HR Innovation Impact Award 2023 to the Banca Ifis Group. This award is aimed at organisations that, having won the HR Innovation Award in previous years, have evolved their projects over time, generating a significant impact on the entire organisation.
[S1-4 DP 43]
The Human Resources Department plays a central role in managing feedback between the Bank, Group companies and employees. It is responsible for human resources development, workforce planning and HR process management, using structured methodologies and organisation support. It oversees the definition of resource requirements, ensuring the effective functioning of organisational units, and manages crucial activities such as staff recruitment, selection, induction, development and management. In this area, it oversees the planning of career paths, training programmes and internal and external mobility, ensuring adequate quality and quantity of resources within the planned budget.
In addition, the Learning & Development function, on the basis of the results of the annual evaluation and any quality gaps that emerge in this context, designs, plans and implements a training programme for employees. The function is also responsible for monitoring their use and verifying their effectiveness, with a particular focus on participation in compulsory training.
3.1.4 Equal treatment and opportunities for all
As expressed in the Code of Ethics (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview), the behaviour of all Group staff must be utterly correct and fair. The Banca Ifis Group undertakes to ensure that the management and heads of the individual organisational units behave fairly toward their collaborators, guaranteeing professional growth and fostering a working climate inspired by principles of transparency and loyalty.
[S1.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon
Equal treatment and opportunities for all
Employee insecurity due to incidents of harassment and/or the absence of employee protection measures and/or awareness-raising initiatives | Potential negative impact | Own operations | Medium-term
Integration of disabled workers by ensuring greater accessibility through physical and digital solutions | Actual positive impact | Own operations | Medium-term

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IRO description | IRO category | Connection with value chain | Time horizon
Gender pay or wage gap for equal employment and skills and difficulties in accessing top positions and/or professional development processes for the less represented gender | Potential negative impact | Own operations | Medium-term
Reputational risk due to the detection of potential discrimination against employees | Risk | Own operations | Medium-term
Improving employees' sense of belonging to the Group by promoting projects that uphold values such as gender equality, inclusion and valuing diversity | Opportunity | Own operations | Medium-term

Approach and reference policies
[S1-1 DP 19]
With the aim of further consolidating and ensuring respect for diversity, the Banca Ifis Group applies the Group Policy for the Promotion of Diversity and Inclusiveness (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview), which, consistent with the principles enshrined in the Group's Code of Ethics and ESG Policy, fosters an inclusive corporate culture, ensuring equal treatment and respect for all employees and collaborators. In a parallel fashion, the Policy on Combating Violence and Harassment in the Workplace (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview) reinforces the Group's commitment to preventing and combating any form of discrimination, harassment or violence, promoting the well-being, awareness and empowerment of all its people. Furthermore, the Group's Remuneration and Incentive Policy (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview) helps to support these objectives by defining principles aimed at ensuring a remuneration system that is fair, transparent and consistent with the company's strategy and objectives. This policy is an essential tool to promote responsible behaviour, sound risk management and alignment of interests between management, staff and stakeholders.
[S1-1 DP 24a]
In this context, the Banca Ifis Group has a management system in place to prevent or mitigate negative impacts on the workforce with regard to inclusiveness through the joint adoption of the Policy for the Promotion of Diversity and Inclusiveness and the Policy for Combating Violence and Harassment in the Workplace. In particular, this latter defines how the Banca Ifis Group:
•promotes the importance of preventing, opposing and combating all forms of discrimination, harassment or violence within the company premises, with the aim of raising awareness on the issue in every person in the Group;
•identifies the most appropriate prevention measures to disseminate and promote, within the company organisation, a culture based on respect for human dignity, diversity and inclusion (e.g. training courses, information sharing, awareness-raising initiatives);
•promotes language that respects gender diversity.
[S1-1 DP 24b]
Thanks to these instruments, the Group guarantees fair treatment for all employees and collaborators, without discrimination on the basis of race, colour, gender, sexual identity and orientation, language, religion, political or other beliefs and opinions, national or social origin, birth, wealth, age, as well as any other condition, element or
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diversity characterising the person. The Group endeavours to promote and enhance interculturality internally and externally, including in personnel selection, following an open and inclusive social model.
Within the Policy for Combating Violence and Harassment in the Workplace, the Group clearly defines behaviour that is considered unacceptable, providing detailed guidelines for preventing and combating all forms of violence, harassment and discrimination. A zero-tolerance policy is adopted towards behaviour that may offend people's dignity, with a focus on harassment, gender-based and sexual violence. These attitudes may manifest themselves through words, gestures, digital messages or intimidating attitudes, including threats, insults and innuendo. Sexism, misogyny, misandry and any form of discrimination against LGBTQIA+ persons are also considered unacceptable.
[S1-1 DP 24c]
Consistent with these principles, the Group has implemented a Gender Equality Management System following the adoption of the Policy for the Promotion of Diversity and Inclusiveness (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview) and then intervened to remedy the impacts deemed material through the adoption of a Gender Equality Business Plan approved by the Banca Ifis Group Sustainability Committee. The policy, applicable and disseminated to the extent of its competence to all the Group's organisational units, is inspired by the principles enshrined in the Universal Declaration of Human Rights approved by the United Nations General Assembly on 10 December 1948 and the corporate values that constitute the Bank's value-based and cultural identity.
On these premises, through the adoption of the Policy for Combating Violence and Harassment in the Workplace, the Banca Ifis Group:
•promotes the use of language - both verbal and written - that is appropriate, aligned with its values, courteous, inclusive and respectful with regard to gender, vulnerabilities, difficult conditions and diversity in general, combating gender stereotypes, in order to contribute to social change;
•intends to continue its commitment to adopting preventive measures suitable for preventing and combating this kind of behaviour contrary to the values it has always promoted at all levels of the organisation, through information, training and awareness-raising initiatives for all staff;
•creates the conditions for all incidents of violence and/or harassment and/or discrimination to be reported, ensuring an effective process for handling reports that guarantees the utmost rigour and protection of the confidentiality of the persons involved;
•is committed to addressing and resolving reports of discrimination or violence or harassment quickly,
confidentially and effectively.
[S1-1 DP 24d]
Finally, the Group will ensure that all staff, individually and collectively, contribute to nurturing and preserving a work environment free from discrimination and prejudice: this is an essential condition for achieving the objectives in respect of diversity and inclusion. The Policy for Combating Violence and Harassment in the Workplace also describes the process for reporting unacceptable behaviour that may lead to disciplinary sanctions, in order to ensure that all forms of discrimination are avoided, mitigated and addressed within the Group. Banca Ifis is committed to handling all reports swiftly and confidentially, ensuring that effective corrective action is taken. In addition, the Banca Ifis Group has adopted a Gender Equality Management Manual, with the aim of ensuring compliance with the principles of diversity, equal opportunities and inclusiveness within the organisation.
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Actions
[ESRS 2 MDR-A 68a,b,c]
[S1-4 DP 37,40b]
In the social context, the Banca Ifis Group considers the creation and promotion of initiatives aimed at upholding fundamental values such as gender equality, inclusion and valuing diversity an important opportunity for growth and development. In all Banca Ifis offices and branches, the panels 'We are Difference' and 'We are One' are displayed, reaffirming the Bank's focus on valuing diversity, spreading an inclusive culture and respecting different opinions and points of view. The posters also emphasise the importance of combating stereotypes and prejudices, promoting a welcoming and inclusive language.
In 2025, in continuity with previous years, on the occasion of internationally evocative days on the issues of civil rights, gender equality, homophobia and, in general, against discrimination, harassment and violence, ad hoc activities were implemented, including webinars, dedicated articles, in-person events and initiatives to raise awareness and engagement among the entire corporate population. In particular, the main events include: "Pink October", a month dedicated to raising awareness for breast cancer prevention, "Pride Month", a month dedicated to valuing diversity and LGBTQIA+ rights, the International Day for the Elimination of Violence against Women, and STEM Education Day, to promote interest and learning in science disciplines. In June 2025, an event entitled 'Cybersecurity: between AI and human value' was organised in collaboration with Women4Cyber, an initiative that aims to encourage women to train, improve their skills and develop a concrete interest in cybersecurity. The event was attended by about 35 colleagues.
The objective of all these activities is the dissemination of a shared culture and inclusive and respectful language in order to prevent conflicts and discourage non-inclusive practices within the work environment.
Banca Ifis also launched communication campaigns on topical issues and continues with the publication of the newsletters 'Sustainability Flash' and 'Sustainability News' dedicated to ESG and DE&I issues.
In addition to the initiatives listed above, the main corporate projects aimed at actively involving Banca Ifis employees are listed below:
•participation in the Race for the Cure charity marathon in Bologna, where the amount of each entry was donated to support the fight against breast cancer;
•corporate volunteering days in collaboration with Banco Alimentare, which saw employees active in nine Italian regions, including participation in the National Food Collection Day, and with Empethy, in shelters and kennels in five regions to combat stray animals;
•the pet food collection, again in cooperation with Empethy, which allowed the donation of quantities of food for dogs and cats to the shelters and kennels involved in the voluntary work carried out;
•blood donation day, in collaboration with AVIS in the Milan office, raising awareness among employees about the importance of contributing to the national health system.
The communication actions described are continuously monitored to assess their dissemination within the corporate population. This is done by measuring quantitative KPIs, which analyse the views of news published on the intranet, and qualitative KPIs, which measure the level of direct employee involvement in initiatives. Employees also have the opportunity to leave comments on the news, thus providing feedback to evaluate the effectiveness of the communication actions taken. From these actions, the Banca Ifis Group expects employees to identify with a shared culture that reflects the Bank's values. As previously mentioned, a DE&I Survey was conducted to support the Bank's focus on these issues, with the dual aim of understanding perceptions of the initiatives the Bank is proposing in the area of Diversity, Equity & Inclusion and, at the same time, gathering ideas for improvement to promote a fair, respectful working environment within the Bank, free from any form of harassment or discrimination.
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[S1-4 DP 37,40a]
As foreseen by the Policy for Combating Discrimination, Violence and Harassment in the Workplace, Banca Ifis has established the figure of a Trust Advisor, as a point of reference for employees who have suffered discrimination, violence or harassment in the workplace. This is an expert in the field of discrimination, with specific skills in the legal, psychological and conflict mediation fields, who provides support and advice in all situations reported and identified by the Policy.
During 2025, specific training on harassment and the figure of the Trust Adviser was provided to members of the Management Committee, managers and all other staff.
The adoption of the policy and the appointment of the Trust Adviser are two key elements demonstrating the Bank's commitment to ensuring that all staff are treated without discrimination, whether direct or indirect.
[S1-4 DP 37, 38a, AR 17c]
An active commitment to upholding core values such as gender equality, inclusion and valuing diversity also means recognising, preventing and working to mitigate possible negative impacts that could arise from unsafe situations for employees. These may manifest themselves in incidents of harassment, the lack of adequate worker protection measures or awareness-raising initiatives, discrimination resulting from non-inclusive practices in the workplace, and the gender pay gap despite equal employment and skills. In this context, salary review processes are geared towards closing any salary gap, with a view to continuous improvement. The Group therefore aims to reduce these potential negative impacts by promoting a safe, respectful and inclusive working environment.
In 2025, just like last year, a strategic objective was maintained within the performance management system for employees of Italian companies, aimed at fostering an increasing commitment to sustainability. The choice of training content was developed in continuity with 2024, where the proposed courses provided an overview of the ESG world and the 2030 Agenda, with a focus on gender equality (Goal 5) and reducing inequalities (Goal 10), which are still available on the platform. Subsequently, new modules related to sustainable cities and communities (Goal 11), responsible consumption and production (Goal 12), combating climate change (Goal 13) and partnership for the goals (Goal 17) were introduced. Training is included among the mandatory activities for all Group personnel.
In a parallel fashion, the 'People Management Accelerator' training course continues, in which, among other activities, a session dedicated to diversity and inclusion issues is planned. Participants are guided to grasp the value of differences as a generative element of innovation, promoting an inclusive culture within their own structures. Moreover, adherence to these competencies is subject to annual self-assessment and evaluation in the performance management process.
In addition, the e-learning course developed in cooperation with Valore D focusing on Unconscious Biases is also available on the platform, allowing to question and reflect on unconscious biases that hinder the emergence of talent in organisations. The course, structured in modules, offers the opportunity to discuss concrete cases of Unconscious Bias acted and suffered in business contexts. In addition, the Bank continues to offer a psychological support service through external partners and, through the implementation of the 'Policy for Combating Violence and Harassment in the Workplace', allows employees to report inappropriate behaviour also through the external channel of the 'Trust Advisor'.
In light of the introduction of the figure of the Trust Advisor, the Safe@Work series of meetings was organised, aimed at the different corporate groups (top management, managers and employees), in cooperation with the Libellula Foundation. The sessions illustrated the above-mentioned Banca Ifis Policy, the extent of the phenomena of discrimination, harassment and gender-based violence, and provided guidance on how to recognise and intervene in cases of inappropriate behaviour. In addition, the training made it possible to publicise the figure of the Trust Adviser, facilitating accessibility to this mechanism and its effective functioning.
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Overall, the initiative involved more than 1.300 colleagues, strengthening the culture of inclusion and protection of people within the organisation.
[S1-4 DP 37,38c]
The Banca Ifis Group recognises equal opportunities for all Ifis People, regardless of their cognitive, sensory and motor abilities, promoting the integration and inclusion of differently abled people and fully leveraging their talents and skills. To this end, the Group endeavours to break down all barriers by working to offer solutions that are tailored to specific needs and alternative ways of working (e.g. smart working, flexibility, teleworking, part-time work). A regulation for the use of internal parking spaces for the benefit of permanently and temporarily disabled employees and pregnant employees was published in 2025.
In this context, the Group has established greater protections and facilities for disabled people to enable them to better balance the more complex demands of life with work. These include, for example, the preferential choice of days on which to work in smart working mode and the possibility of teleworking. Furthermore, in accordance with current regulations, the Group promotes the adoption of all measures necessary to overcome physical obstacles and guarantee all Ifis People fair and inclusive access to offices, removing all architectural barriers by means of special equipment, aids and tools, such as, for example, lifts and stair lifts.
In a parallel fashion, the company websites and intranet have been updated to improve the browsing experience and accessibility for people with physical and cognitive disabilities. The company intranet has been supplemented with specific innovative tools, which are visually unobtrusive but very powerful and allow the page view to be modified according to accessibility needs (over 50 customisable options) to guarantee a better browsing experience even for those with physical or cognitive difficulties. In addition, options include specific profiles for epilepsy, low vision, ADHD, cognitive disabilities, blind (with audio players), and other features such as readable fonts, optimised contrast, voice commands, magnifying glass and virtual keyboard.
To ensure inclusiveness during company events, the Code of Ethics has been made available in Italian Sign Language (ISL), and simultaneous translation in ISL is offered to employees with hearing disabilities, thus promoting active, barrier-free participation.
[S1-4 DP 37,38d]
As evidence of the proper implementation of the initiatives and the benefits derived from them, in 2023 all Banca Ifis Group companies (based in Italy) achieved gender equality certification UNI/PdR 125: 2022, which is in addition to the Winning Women Institute certification, obtained for the first time in 2022 as the first Bank in Italy. Obtaining UNI/PdR 125:2022 certification requires the adoption of specific indicators, Key Performance Indicators (KPIs), in relation to six assessment areas (culture and strategy; governance; Human Resources processes; opportunities for growth and inclusion of women in the company; gender pay equity; parental protection and work-life balance). Each company within the certification scope achieved the minimum overall score of 60%, which determined the organisation's access to certification. This certification, renewed in 2025 at the time of the audit carried out by the relevant body, confirms the concrete commitment to the promotion of equality and inclusive policies within the organisation.
The UNI/PdR 125:2022, which provides for a management system for gender equality, is the main way in which the organisation monitors and evaluates the effectiveness of gender equality actions. Specifically, certification is for three years, with two annual audits to monitor the management system and any improvements.
In addition, in 2025 too, Banca Ifis received the 'Welcome Working for Refugee Integration' award from the UNHCR for the second year in a row, an acknowledgement of the companies' commitment to promoting a more inclusive society for those forced to flee war and persecution. The Bank was rewarded for its concrete commitment to the employment of refugees, helping to enhance their skills and talents in the professional context.
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As part of the Policy on Combating Violence and Harassment in the Workplace, starting FY 2025, monitoring through dedicated quarterly reporting was initiated, dedicated to enabling the analysis of reported cases with a significant impact and will allow targeted actions and initiatives to be implemented from 2026 onwards.
[S1-4 DP 39]
Such monitoring allows the most appropriate actions to be identified in a timely manner to respond to the impacts on employees and to detect any anomalies. This is overseen by the HR Business Partner function and through the detection and reporting processes defined by the Whistleblowing Policy and the Policy for Combating Violence and Harassment in the Workplace.
[S1-4 DP 41]
The Banca Ifis Group, in full compliance with current labour legislation, ensures that any decisions to terminate business relationships cannot in any way affect its workforce in terms of diversity and inclusion. In particular, through the application of the National Collective Bargaining Agreement for Credit, signed by the trade association Associazione Bancaria Italiana (ABI), Banca Ifis is subject to the numerous procedures for discussions with trade unions provided for in the contractual provisions, in the event of company reorganisations, acquisitions, mergers or business transfers.
[S1-4 DP 43]
In order to implement the Group Policy for the Promotion of Diversity and Inclusiveness, specific responsibilities have been defined for both corporate bodies and the corporate organisation. Starting end 2023, a specific working group dedicated to the management of DE&I issues was set up. The Sustainability Committee, with the support of the Human Resources Department, is in charge of monitoring compliance with DE&I principles, integrating them into Group policies and processes, implementing the business plan to reduce the pay gap and gender differences, and coordinating initiatives to promote an inclusive culture, both internally and externally to the Group, in cooperation with the Communications, Marketing, Public Affairs and Sustainability Department. The latter, in turn, fosters the dissemination of a diversity- and inclusion-oriented culture through awareness-raising campaigns and supports the communication of the business plan. In the continuous monitoring process, implemented by the relevant functions, it will also be possible, starting 2026, to assess the effectiveness of the actions and initiatives put in place as a remedy to the actual impacts.
In addition, with regard to the employee recruitment process, the Innovation Office supports the HR function in the induction phase. In particular, according to specific needs, the two functions analyse the most appropriate hardware and software, so as to ensure that the employee has the optimal conditions to perform his or her work effectively.
[S1-4 DP 37]
illimity Bank is actively involved in gender issues, having obtained the UNI/PdR 125:2022 certification for gender equality valid for three years and adhered since 2023 to the Memorandum of Understanding for the prevention of and fight against violence against women and domestic violence, promoted by the Ministry for Family, Birth and Equal Opportunities and the President of the Italian Banking Association (ABI), in order to develop and promote joint initiatives on these issues. Since the same year, illimity has made training on DE&I and the Anti-Harassment Policy mandatory for all employees. Through webinars, training courses and dedicated initiatives, it offers employees concrete opportunities to raise awareness, contributing to building an inclusive and respectful working and social environment.
The illimity Group has consolidated a structured path over time: already in 2020 it signed the "Manifesto for women's employment" promoted by Valore D. The Manifesto envisages the adoption of concrete and measurable objectives, with performance indicators and periodic monitoring, to be shared internally. In addition, the partnership with the Libellula Foundation led to the creation of two in-house figures dedicated to listening to and handling complex situations also related to gender inequality.
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In line with these principles, illimity promotes inclusive conditions for access to management roles, supporting gender equity policy through mentoring, coaching and specific training programmes for women with management potential. The illimity Group ensures fairness in selection and promotion processes by constantly monitoring the gender balance in the talent pool. This commitment is realised through impartial evaluations, engagement surveys and continuous measurements aimed at identifying and resolving critical issues in a timely manner.
3.1.5 Working conditions
The protection of human rights and respect for working conditions constitute an area of primary importance for the Banca Ifis Group, which works continuously to ensure that these principles are fully integrated into its activities and relations. This commitment finds expression in the Group's Code of Ethics, which defines the principles, values, rights, duties and responsibilities adopted towards all stakeholders. This document guides Group companies in their interactions, ensuring respect for human rights and the responsible pursuit of their corporate objectives.
[S1.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon
Working conditions
Employment instability (e.g. of young employees) due to the extensive use of fixed-term and/or temporary contracts | Potential negative impact | Own operations | Medium-term
Employee satisfaction through compliance with union agreements and/or freedom of association of employees | Actual positive impact | Own operations | Medium-term
Operational risk due to non-compliance with labour law aspects of own workforce | Risk | Own operations | Short-term
Operational and reputational risk arising from legal actions brought by workers concerning non-compliance with working conditions, with possible operational sanctions and reputational damage | Risk | Own operations | Medium-term

Group approach and policies
[S1-1 DP 19,20]
In the area of protection of human rights and working conditions, Banca Ifis has established a policy framework to promote an ethical and people-friendly working environment (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview). Among these, the ESG Policy emphasises the focus on respect for universally recognised human rights, in accordance with the principles enshrined in the Universal Declaration of Human Rights, considered an indispensable pillar of the sustainability strategy. With this in mind, the Group aims to protect and promote these rights, incorporating them in the management of its activities and in its relations with employees and stakeholders, thus consolidating an ethical and responsible approach in every sphere of operations.
Overall, the Policy aims to spread a culture of sustainability, promoting responsible behaviour and the integration of environmental, social and governance factors in the Group's activities, in order to create value for all stakeholders.
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With reference to the social dimension, this instrument aims to generate positive impacts on people and communities through projects of inclusiveness, culture and well-being, supporting contemporary art and social inclusion. In particular, it aims to foster a safe, healthy and discrimination-free working environment for all Group employees, promoting equal opportunities and combating forced labour. It also protects human rights in all its activities, contributing to a fairer and more equitable working and social environment.
The Code of Ethics further reinforces these principles, enhancing working conditions and promoting an environment based on fairness, respect and valuing people. The Group's commitment is to ensure that the management and heads of organisational units behave with fairness and loyalty, creating a positive and inclusive climate.
Lastly, through the Group Policy for Employee Personnel Management which, as illustrated above, defines principles and guidelines for a structured and consistent management of personnel and collaborators, Banca Ifis pursues the objective of guaranteeing employment stability, limiting the use of fixed-term contracts and staff leasing.
[S1-1 DP 20a]
In particular, with regard to workers' rights, respect for these rights is ensured by compliance with the applicable labour and trade union law, at European, national and sectoral level, including the application of the National Collective Bargaining Agreement.
[S1-1 DP 20b]
The Group's approach aims to ensure not only the protection of fundamental human rights, but also the active involvement of all workers, facilitated by continuous dialogue with trade union representatives.
[S1-1 DP 20c]
Through periodic discussions with the relevant stakeholders, the Group ensures that it identifies any negative impacts at an early stage and identifies the most appropriate processes to effectively remedy them through the Whistleblowing mechanism (see 4.1 ESRS G1 - Business Conduct, section 4.1.1 Corporate Culture and Whistleblower Protection, DP 10) and the listening and dialogue tools set up and described in the next section on channels.
[S1-1 DP 21]
As previously mentioned, the Group’s policies are inspired by the principles sanctioned by the main international frameworks, with specific reference to the fundamental values of the United Nations Universal Declaration of Human Rights, approved on 10 December 1948, which guarantees the inalienable rights of every individual, promoting equality, dignity and freedom. Likewise, Banca Ifis operates in line with the goals defined by the 2030 Agenda for Sustainable Development, a global action programme signed by 193 UN member states, which includes 17 Sustainable Development Goals (SDGs). These goals encompass crucial issues such as the fight against poverty and hunger, access to education and health, the transition to clean energy, social equity, and climate and biodiversity protection. Furthermore, the Bank is committed to the ten universal principles promoted by the UN Global Compact.
This integrated approach testifies to Banca Ifis's desire to contribute to sustainable development, both at corporate and global level, by consolidating an ethical and inclusive corporate culture.
[S1-1 DP 22]
With this in mind, the Banca Ifis Group ensures that its policies comply with internationally recognised instruments, including the United Nations Guiding Principles on Business and Human Rights, through the correct application of the National Collective Bargaining Agreement applied in the credit sector, as well as the relevant Italian and EU legal regulations. Specifically, the Group condemns any form of forced or child labour and has introduced a dedicated procedure to report any cases of discrimination, violence or harassment. Details of this instrument are
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discussed in more detail in the section on the Policy on Combating Violence and Harassment in the Workplace (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview).
Actions
[ESRS 2 MDR-A 68a,b,c]
[S1-4 DP 37,38a,40a]
As part of the protection of working conditions, the Banca Ifis Group is aware of the importance of ensuring stable and safe working conditions for all its employees. More specifically, the Group has taken targeted actions to mitigate employment instability, a major issue arising from the use of fixed-term and temporary contracts, also paying attention to the risk linked to labour law breaches.
Specifically, the Human Resources Department, once a year:
•ensures the balance between fixed-term and open-ended contracts, through the application of legal regulations and the National Collective Bargaining Agreement for Credit;
•favours permanent hiring, with a focus on creating stable positions for employees and seeks to use fixed-term and temporary contracts only for specific needs, with the aim of fostering growth and stable development of the organisation;
•implements additional actions in order to stabilise resources hired on fixed-term or apprenticeship contracts, promoting the transition to open-ended contracts whenever possible.
[S1-4 DP 38c]
The Banca Ifis Group has taken steps to ensure employee satisfaction by implementing measures to respect employees' freedom of association, ensuring a fair and inclusive working environment and reducing the risk of litigation, sanctions and reputational damage. In addition, through specific trade union agreements (see 3.1 ESRS S1 - Own workforce, section 3.1.2 Work-life balance, DP 37 40b), flexible working tools, such as flexitime and remote working, have been introduced, which are conducive to improving the psychological-physical well-being of employees.
[S1-4 DP 38d]
The monitoring of workers' satisfaction, guaranteed by respect for union agreements and freedom of association, is carried out mainly through union meetings, which take place, on average, once every two months. The assessment of satisfaction is carried out by the HR Labour Law Relations function, in cooperation with the other areas of Human Resources. In addition, the HR Labour Law Relations function provides the Parent company's Board of Directors, as part of the 'exercise of delegated powers', with the main results of human resources management, including, by way of example, the turnover rate.
In a parallel fashion, the HR Business Partner (HRBP) Department contributes to monitoring by examining the impacts of the policies adopted, always in synergy with the other Human Resources Departments, thus ensuring an integrated and coordinated approach.
[S1-4 DP 39]
The Banca Ifis Group identifies the personnel management and evaluation processes as the main tools for defining and implementing actions to prevent, mitigate or manage the negative impacts associated with any situations of employment instability. The implementation of these actions is closely linked to discussions with trade unions. In negotiations, potential positive impacts are assessed in advance through structured proposals based on market benchmarks and simulations that take into account both quantitative and qualitative aspects for employees. In addition, processes aimed at promoting the psychophysical well-being of workers, such as the introduction of flexible working hours and remote working, are regulated by trade union agreements, which provide
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for follow-ups with trade union organisations to assess the effects. Data on the effects and utilisation of flexibility instruments are collected by the HR Admin & Payroll Department.
[S1-4 DP 41]
The Banca Ifis Group ensures the constant monitoring of the human rights and working conditions of the resources employed, while also favouring employment stability and the prevention of negative impacts resulting from corporate decisions. As mentioned in the previous section of the chapter, the decision to terminate business relations is therefore handled without direct impact on the human rights and working conditions of employees. Any employment issues that might arise would in any case be handled within the framework of what is defined by the Law and by all the instruments defined by the National Collective Bargaining Agreement for the Credit Sector signed by the Italian Banking Association (ABI) and the trade unions.
[S1-4 DP 43]
To ensure adequate working conditions and the responsible management of employment stability impacts and opportunities, Banca Ifis has defined specific responsibilities among the different departments. The Human Resources Department is responsible for assessing staffing needs and identifying opportunities for stabilising fixed-term contracts, helping to ensure continuity of employment, as well as ensuring compliance with current legislation and the rules defined by collective agreement. In addition, the HRBP Department is responsible for assessing employee satisfaction and compliance with union agreements, helping to promote a stable working environment that conforms to company standards.
[S1-4 DP 40a]
Similarly, the illimity Group takes a proactive approach to the management of social dialogue, ensures full contractual compliance and promotes organisational well-being initiatives, helping to mitigate the operational and reputational risks associated with any employee actions related to working conditions.
This supervision is also carried out through checks on compliance with the Code of Ethics (illimity Way) and internal policies on diversity, equity and inclusion, harassment prevention and health and safety protection. The illimity Group also ensures regular training for all staff, both employees and non-employees, provides anonymous and protected reporting channels and maintains an ongoing dialogue with employees. Overall, these measures help prevent disputes with employees and contractors and reduce potential impacts on business continuity and reputation.
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3.1.6 Other work-related rights (privacy)
The Banca Ifis Group considers the protection of personal data a mandatory principle that is key for building trust and developing a sense of security with customers as well as protecting the Group's reputation. In this regard, the Group has adopted appropriate internal policies and procedures, in accordance with current regulations on personal data protection and digital operational resilience in the financial sector and in compliance with specific banking supervisory regulations, to prevent and promptly manage cybersecurity incidents to protect information assets.
[S1.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon
Privacy
Violation of employees' right to privacy resulting from inadequate management systems or ineffective application of procedures and preventive actions | Potential negative impact | Own operations | Medium-term
Risk of loss due to breach of privacy, failure of system and data integrity, inadequacy or unavailability of systems and data, including inadequate or failed internal processes and external events such as cyber-attacks | Risk | Own operations | Medium-term
Enhancement of the Group's reputation and employee trust through the promotion of initiatives aimed at ensuring confidentiality and privacy in Banca Ifis's workplaces | Opportunity | Own operations | Medium-term

Group approach and policies
[S1-1 DP 19]
The Group, as expressed in its ESG Policy and Code of Ethics (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview), it protects the privacy and data security of its customers and its own people, handling the data and information in its possession transparently and in full compliance with current legislation.
To this end, the Group's main internal regulatory source on personal data protection is the Regulatory Handbook on Privacy (see Other Sustainability Information, Section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview). The Manual is part of the set of procedures designed to establish principles, roles and responsibilities relating to the processing of personal data. Furthermore, the Manual ensures compliance with the rules of conduct to be followed by the Group in order to guarantee the safeguarding and proper handling of the information processed. Alongside this tool, the Bank has the Group Policy for Information Security Management (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview), through which it ensures an effective control of the risks associated with the use of information systems.
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Actions
[ESRS 2 MDR-A 68a,b,c]
[S1-4 DP 37,38a]
Banca Ifis aims to mitigate the possible negative impacts related to violations of employees' right to privacy, which could result from inadequate management systems or ineffective application of procedures and preventive actions.
The processing of personnel data, especially with regard to the use of technological solutions, is typically the subject of dialogue with company trade union representatives. In this context, we discussed, on the one hand, the preservation of e-mail metadata, automatically generated by workers' interaction with company systems, to enable possible investigations into anomalous or malicious events; and, on the other hand, the use of native biometric tools embedded in assigned devices, such as notebooks and smartphones, with the aim of both enhancing security and facilitating access, and preventing possible misuse by third parties.
[S1-4 DP 38d]
In order to ensure the effectiveness of actions and the protection of workers' rights, processing operations that could pose a high risk to their rights and freedoms are monitored with particular attention. Such processing is subject to a prior data protection impact assessment, as required by Article 35 of the GDPR 50. The assessment, which is conducted in accordance with the guidelines of a methodological manual specifically drawn up by the Group, aims to identify and analyse potential risks associated with data processing. Then, all appropriate and necessary safeguards are taken to mitigate the identified risks in order to protect the rights and freedoms of the workforce.
[S1-4 DP 37,40a,b]
As previously mentioned, the Banca Ifis Group may incur significant risks, such as operational losses arising from unauthorised access to employee data (data breach) by its staff as well as breaches of privacy due to damage to the integrity of systems and data, as well as the inadequacy or unavailability of the systems themselves, including risks related to cyber-attacks or failed internal processes; simultaneously, the Bank's focus on these issues may promote initiatives aimed at ensuring privacy within the work environment, further enhancing data security and protection.
In 2025, the Group consolidated its training with respect to cybersecurity issues, also in line with Bank of Italy Directive 2013/285, by implementing a structured programme. On the one hand, training activities were organised to obtain certifications for key figures; on the other hand, awareness-raising events were held for all employees, focusing on best practices to prevent cyber-attacks.
Ifis Talent's digital library has compulsory training courses on topics of phishing and IT security, complemented by a series of fifteen training pills on 'Digital Transformation'. In addition, awareness-raising initiatives such as the 'Flash Cyber News' newsletter were revamped to update employees on the latest cyber threats and provide useful tools to counter them.
In addition to this, phishing simulation campaigns were conducted to further raise staff awareness and improve the level of regulatory compliance and cybersecurity posture required to support the digital evolution path. In particular, in line with what was started in 2024, in 2025 too, the inter-bank phishing championship was again promoted, aimed at the entire corporate population, in which employees of Italian companies were divided into teams and simulated phishing campaigns were then carried out. Each user participated in at least 3 of the 6
50 Article 35 GDPR: Data Protection Impact Assessment (DPIA), which is mandatory when a processing of personal data is likely to present a high risk to the rights and freedoms of data subjects, providing for a prior analysis of the measures necessary to mitigate such risks.
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campaigns, following which, depending on the behaviour adopted, different scores were given and different training contents were associated.
Through this competition, the relevant office monitored the progress and effectiveness of the campaigns, analysing the progress in employee awareness, the response methods adopted and the identification of the most critical threats. The analysis conducted showed a significant improvement in employees' attention to potential threats and an increased awareness of the security measures to be taken to prevent data loss, particularly with respect to the following three areas: the number of clicks made on suspicious links, any credentials entered, and e-mails reported as potential threats.
Finally, the Bank strengthened its cyber intelligence and open-source intelligence (OSINT) services to increase internal awareness and confirmed its membership of the CERTFin service, which allows it to receive real-time reports on fraud attempts in the banking sector, which are then shared with the relevant structures.
[S1-4 DP 39]
With particular reference to the IT security management process, this consists of four interconnected phases: (i) planning, to define security policies, objectives and controls; (ii) implementation, to implement the established measures with the involvement of the relevant business functions; (iii) verification, to monitor the performance of the adopted solutions and analyse their results; and (iv) improvement, to apply corrective and preventive actions based on the audits performed. This approach ensures continuous and adaptable IT security management, aligned with business objectives. To address possible violations of employees' right to privacy caused by inadequate management systems or the ineffective application of preventive procedures, the Group has adopted specific organisational measures. In particular, strict internal regulations have been introduced that regulate in detail the process for accessing, where necessary, personnel information on company systems. These rules apply to both active employees and terminated users. In addition, technical measures have been implemented to limit access only to authorised functions and only in strictly indispensable situations, in compliance with the principle of minimisation and limitation of data retention times.
[S1-4 DP 41]
In addition to the safety precautions described above, Banca Ifis is committed across the board to ensuring that there is no negative impact on the well-being of its employees.
The practices followed by the Group are developed in full compliance with current labour legislation and are supported by constant dialogue with trade union representatives and, when necessary, with the Territorial Labour Directorates. This concerns both the adoption of technologies that could involve remote control of workers and the installation of video surveillance systems for the protection of company assets. All procedures are made accessible to staff in a transparent manner, through the publication of regulations and circulars on the company intranet and, if necessary, through specific presentations given by management.
In addition, Banca Ifis ensures that the right to privacy is protected not only during the employment relationship, but also at its end, by guaranteeing the timely deactivation of the employee's e-mail box, limiting the retention of information contained in mailboxes and other repositories, and the secure management of the terminated employee's personal information.
Employees' right to privacy is regulated by specific and thorough internal procedures, made available to staff in a fully transparent manner by publishing them on the company intranet; they regulate, among other things, the process of access and/or deletion of employees' personal information. The process in question is traced by means of a special ticket, which allows it to be reconstructed ex post, and is managed exclusively by specific, suitably trained and authorised resources, in compliance with the principle of minimisation that informs the Group's operations.
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[S1-4 DP 43]
To ensure compliance with privacy and data security regulations, specific responsibilities have been assigned to the Privacy Unit, which operates within the Privacy & Security Department. This unit prepares and updates the internal documentation required by the regulations, monitors compliance with the relevant laws and checks the effectiveness of the security measures implemented. It also analyses how personal data is processed, assesses the associated risks, and examines the privacy impacts of new products, services, activities or software introduced by the Bank.
The Privacy Unit informs the various corporate functions about regulatory changes, providing support to ensure compliance, and works with the Human Resources Department to promote a privacy-aware corporate culture by organising periodic training sessions for staff. In the context of business continuity, it carries out the business process impact analysis and draws up the corresponding plan, thus contributing to responsible and integrated data protection management.
3.1.7 Engagement processes
[S1-2 DP 27,a,b,c]

Scope | Method of engagement (1) | Phases, type and frequency of engagement | Department with operational responsibility
Health and safety | Workers' Safety Representatives | •Participation in the risk assessment process in case of new openings;•Consultation in the event of substantial changes in safety management figures, such as competent doctors or in risk assessment;•Specific discussions through dedicated meetings and/or reports managed by e-mail and via the Service Desk;•Participation in the annual periodic meeting (Italian Legislative Decree no. 81/08, Art. 35) as an important element of the safety management process;•The workers' representatives are also entitled to request an extraordinary meeting | Workers' representatives and Employer, or relevant delegate
Work-life balance | Workers' representatives | •Bi-monthly average frequency | HR Department and the Director of Human Resources
Equal treatment and opportunities for all
Working conditions
Training and knowledge development | Employees | •Periodic interviews•Annual performance management | HR function
Other work-related rights (privacy) | Workers' representatives | •Where necessary, through meetings with workers' representatives and trade associations and/or trade unions | Human Resources Department

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(1) As far as the agreements regulating relations with workers' representatives and trade unions are concerned, Banca Ifis's headmasters are directly traceable to the National Collective Bargaining Agreement for the credit sector signed by ABI (to which the Banca Ifis Group is a member and to which it assigns the mandate of representation at the national level) and, more generally, to all the agreements on trade union freedoms and various protocols stipulated by ABI itself with trade union organisations.
Discussions with workers' representatives represent an important opportunity for dialogue and confrontation, making it possible to address key issues such as work-life balance and the protection of weaker groups, ensuring proper management of the related impacts. The Human Resources Department takes charge of these requests, drawing up proposals that are then shared with the Bank's decision-making bodies, at both information and approval levels. This structured process of receiving requests, evaluating them, working out solutions and then presenting them at decision-making tables allows the needs that emerge to be translated into concrete initiatives for the benefit of workers and the organisation.
[S1-2 DP 27e]
The company assesses the effectiveness of the engagement of its workforce and the agreements reached through regular meetings with workers' representatives, aimed at monitoring the results achieved and the level of employee satisfaction. This assessment is also supported by the ongoing employee relations activities carried out by the HR Business Partner (HRBP) Department, fostering constant dialogue and proactive attention to staff needs.
[S1-2 DP 28, AR 17d]
The Banca Ifis Group adopts specific questionnaires to understand and assess the needs and perspectives of employees particularly vulnerable to workforce-related impacts. In this context, a key role is played by HRBPs, who ensure a continuous and direct dialogue with these workers, facilitating the timely and effective resolution of any critical issues and developing specific initiatives for specific categories of workers. In particular, with the aim of supporting work-life balance, the Bank has implemented targeted measures, such as offering additional smart working days to parents and pregnant workers, and prioritising smart working days for workers with disabilities or caring responsibilities.
In order to better understand the perspectives of these vulnerable workers and prevent the risk of marginalisation, the Bank has planned to structure specific questionnaires in the area of equal treatment and opportunities for all, with a particular questionnaire planned for 2025. In addition, as part of the gender equality certification process, targeted interviews were conducted with employees to verify their knowledge of the actions taken and policies adopted in this area.
Finally, in the area of health and safety, risk assessment and emergency management also take into account the needs of the most vulnerable workers, considering aspects such as pregnancy, differences in age, gender and origin, work-related stress, disability, contract type and exposure to aggressive or discriminatory behaviour.
With reference to working environments, during 2025, some of the Bank's offices were further adapted to ensure full accessibility and usability of spaces.
[S1-2 DP 27a]
Similarly, the illimity Group constantly values listening to and involving its workforce, gathering their perspectives through structured methodologies and tools.
[S1-2 DP 27b]
The illimity Group, as part of its double materiality assessment of its perimeter and value chain, involves a sample of employees, the "ESG Ambassadors", through the administration of a questionnaire aimed at identifying the impacts deemed most significant. In a parallel fashion, all illimity employees have been participating since 2019 in the annual anonymous "Great Place to Work" (GPTW) survey, developed by an independent third party, to
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express their opinions and perceptions on their work experience, as described in more detail above (see 3.1 ESRS S1 - Own workforce, section 3.1.2 Work-life balance, DP 37).
[S1-2 DP 27c]
Operational responsibility for ensuring that engagement activities are carried out effectively and that the results steer the illimity Group's approach lies with illimity's Sustainability structure, as far as the double materiality ratings expressed by its own workforce (as well as other stakeholders) are concerned, and with illimity's HR function as far as the Great Place to Work (GPTW) questionnaire is concerned.
3.1.8 Channels
[S1-3 DP 32a,b,c,d,e]
For the Banca Ifis Group, dialogue with employees is an important element in fostering a relationship based on sharing and collaboration. The objective is to help reduce any insecurity situations related to incidents of harassment, lack of protective measures for workers or lack of awareness-raising initiatives, in order to promptly remedy any potential or actual negative impacts. Through open and constructive discussion, the Bank aims to create a safe, inclusive and respectful working environment in which every employee can feel protected and valued.
Any conduct contrary to these principles may be reported through the Whistleblowing mechanism (see 4.1 ESRS G1 - Business Conduct, section 4.1.1 Corporate Culture and Protection of Whistleblowers, DP 10) in the event of a report of any conduct, action or omission that violates national or European Union regulatory provisions and which harms or may harm the public interest or the integrity of Banca Ifis Group companies; or, through the channel of the Trust Advisor in the event of unacceptable behaviour, concerning acts of discrimination, sexual and moral harassment, as better identified by the Policy for Combating Violence and Harassment in the Workplace.
In 'Health, Safety and Environment', employees can refer to a dedicated section within the Service Desk application available on the company intranet. Or share reports by e-mail and the engagement of workers' safety representatives.
Finally, another key point of reference is the HRBP Department, which ensures direct contact with employees, facilitating constant dialogue on regulatory, management and pay topics.
Whistleblowing
[S1-3 DP 32b]
The Whistleblowing system, described in detail in relation to business conduct (see 4.1 ESRS G1 - Business Conduct, Section 4.1.1 Business Culture and Whistleblower Protection, DP 10) allows for anonymous reporting, ensuring the protection of the whistleblower.
[S1-3 DP 32a,32c]
The reports can be submitted using different channels and are handled by the respective Head of Internal Audit, who examines and investigates them based on the principles of impartiality, privacy, dignity of the employee and protection of personal data.
In order to investigate the contents of the reports, the Head of Internal Audit may:
•speak to the Whistleblower and request additions from the latter, if necessary;
•make use of the staff of the organisational unit it supervises;
•involve staff from other organisational units;
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•make use of the support of third parties where strictly necessary or appropriate in the light of the particular subject matter of the report received.
Upon conclusion of the investigation, the Head formalises his assessments and forwards them onto the Chief Executive Officer of the Parent company and, if applicable, to the Supervisory Body of the Parent company and/or the subsidiary, except for potential incompatibilities.
In order to ensure the effectiveness of the measures taken by the Bank to remedy the situations that have arisen, evaluations are carried out on a case-by-case basis, analysing each situation and its circumstances in detail. More specifically, decisions on the acts or facts detected are taken by the specific organisational units or by the competent corporate bodies, which, if necessary, involve the Human Resources Department for the adoption of any disciplinary measures or for the management of communications to the Involved Person.
[S1-3 DP 32d]
Banca Ifis guarantees the accessibility and availability of whistleblowing channels through a structured internal system, which implements the European Directive 2019/1937 on the protection of whistleblowers. The procedures for reporting are communicated to employees by means of internal rules available on the company website, ensuring transparency and easy access to information.
In particular, the possibility of reporting is extended to all those who work or collaborate with the Group, through various active means of reporting, allowing them to report acts, facts or omissions that may constitute violations of laws or internal procedures. The system adopted ensures the confidentiality of the personal data of the whistleblower and the alleged perpetrator, providing a safe and secure environment for the handling of reports.
[S1-3 DP 32e]
The tests carried out during 2025 did not reveal any problems with the proper functioning of the internal reporting systems; in fact, the recent tests on the availability of the Whistleblowing application were positive. In addition, as for previous years, no incidents of discrimination were reported in 2025.
[S1-3 DP 32a,b,c,d,e]
Similarly, illimity Bank, ARECneprix, Abilio and Fürstenberg SGR 51 also adopt structured systems for reporting and handling violations. In particular, to support the process, illimity Bank, ARECneprix and Abilio make use of a digital platform called '@Whistleblowing' through which conduct in breach of the Code of Ethics can also be reported. The platforms allow employees, members of corporate bodies and external parties to submit reports, via an online wizard, of misconduct, irregularities or violations of internal and external rules.
Alerts can be transmitted through different channels. For the Banca Ifis Group and Fürstenberg SGR, among others, the dedicated application, voice messaging systems, internal or external mail and the possibility of a direct meeting with the Head of Internal Audit are available. For illimity Bank, ARECneprix and Abilio, reports can be made by letter or via the dedicated telephone number.
As far as the management of the process is concerned, illimity Bank has a 'Whistleblowing Policy', implemented by ARECneprix and Abilio, which governs the whistleblowing process and related verification activities. The policy is made available on the corporate intranet, in the section dedicated to the violation reporting system, as well as on the institutional websites of Group companies. In addition, whistleblowing policies and procedures are communicated to all personnel at the time of employment through the information package and, upon request, shared with business partners.
51 It should be noted that Fürstenberg SGR has implemented and applies the Group Policy for the Management of Reports of Violations (Whistleblowing), of Banca Ifis.
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Trust Advisor
[S1-3 DP 32b]
As mentioned above, the Group has made available to employees an external channel, the 'Trust Advisor' (TA), through which they can report conduct contrary to company principles, human rights violations, incidents of violence or harassment in the workplace.
[S1-3 DP 32c]
The mechanism for reporting and handling complaints has two different modes: an informal procedure, aimed at fostering timely resolution of issues through dialogue and discussion, and a formal procedure, which involves the activation of structured procedures for the management and possible follow-up of reports:
[S1-3 DP 32e]
•informal procedure: applies to minor cases that can be traced back to mostly unconscious behaviour and can be resolved through awareness-raising or mediation. This procedure must be concluded as soon as possible, taking into account the sensitivity and complexity of the situation, indicatively within 45 days, and provides for subsequent monitoring moments to verify its effectiveness. In case of repetition of the reported conduct and/or retaliatory acts against the Reporting Person or Witnesses, the formal procedure is activated;
•formal procedure: this is triggered in all situations considered particularly severe by the reference person (CFO, HRBP or manager), i.e. attributable to serious discrimination or harassing or violent conduct particularly damaging to a person's dignity, or repeated, or representing a high risk factor for the person and/or the organisation. The formal procedure is managed by the HR Business Partner (HRBP), with the power to notify the Trust Advisor for the purpose of complete data collection. If the report of serious facts is addressed to one's superior or to the Trust Advisor, he/she assesses the risk of repetition and the degree of dangerousness and seriousness of the situation and promptly (within 48 hours) communicates the facts to the HRBP, which then provides for the possible securing of the person subjected to the harmful conduct and initiates a preliminary investigation phase aimed at ascertaining the justification for what has been reported. This process must be concluded in accordance with the law and in relation to the sensitivity and complexity of the concrete situation. Following the outcome of the investigation, the Bank takes the appropriate disciplinary measures, in accordance with the law, the relevant National Collective Bargaining Agreement and the Policy.
The Trust Advisor reports annually to the Human Resources Department on the activities carried out, taking care to omit the identification data of the persons involved in order to guarantee their confidentiality.
[S1-3 DP 32d]
Employees are also informed of the existence of the channel by means of information, training and awareness-raising activities on the topics of the Policy, carried out by the Trust Advisor, with a view to preventing and combating non-compliant behaviour.
Privacy
[S1-3 DP 32a,b]
Employees' right to privacy is guaranteed and protected through internal processes and regulations in line with the General Data Protection Regulation (GDPR), enabling employees to exercise their rights in a safe and secure manner.
[S1-3 DP 32d]
To raise concerns or exercise their rights under the GDPR, employees may use the dedicated channels provided by the Group, such as the e-mail address privacy@bancaifis.it, managed by the Data Protection Officer, or contact the Data Protection Officer directly at rpd@bancaifis.it.
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[S1-3 DP 32c]
The handling of such requests is governed by an internal procedure involving, in addition to the privacy structure, the Human Resources Department and, when necessary, the ICT department.
[S1-3 DP 32e]
Mailboxes are constantly monitored and access to information is restricted to authorised personnel, in accordance with the principle of data minimisation. Furthermore, workers are adequately informed of their rights and the channels available to them through specific information available on the company intranet, in line with the principle of transparency.
[S1-3 DP 33]
The Banca Ifis Group assesses, through the use of the corporate intranet and dedicated communication channels (HRBP, CdF, Intranet, Whistleblowing), whether employees are aware of the existence of structured processes to address and resolve negative impacts that could affect the workforce, as well as of the channels available to them to raise concerns and ensure they are adequately addressed. In particular, a survey is to be delivered to all employees on diversity and inclusion, aimed at assessing several parameters, including the level of knowledge of the Group's tools and processes on these issues. The survey will also be aimed at investigating employees' perceptions of the effectiveness of the Bank's equal opportunities procedures and controls, such as the Code of Ethics, the Gender Equality Policy, the Anti-Harassment Policy and other related initiatives.
As part of the gender equality certification process, targeted interviews were also conducted to verify knowledge of actions taken and policies related to equal treatment and opportunities for all.
Through the adoption of the Whistleblowing Policy (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview) the Banca Ifis Group guarantees all necessary measures to protect the physical integrity and moral dignity of whistleblowers, providing them with adequate protection against any form of retaliation, penalisation, discrimination or threat. In a parallel fashion, the Policy on Combating Violence and Harassment in the Workplace (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview) will ensure fair protection of both the Whistleblower and the Reported Person, specifying that no disciplinary action or sanction is envisaged against those who report in good faith facts that, after verification, turn out to be unfounded. Furthermore, all interviews that will be conducted will be strictly bound by the principle of confidentiality, to protect those involved.
Finally, the Integrated Safety and Environment Manual contains, in its procedures, all formal instruments necessary for any workers to make reports to the Prevention and Protection Service of any potentially damaging situations or dangerous behaviour, in order to collect useful information with which to identify future action to be taken. These processes are made known during the delivery of compulsory Health and Safety in the Workplace training courses.
3.1.9 Targets
[ESRS 2 MDR-T DP 80a,b,c,d,e,f,g,j]
The targets reported in this section refer to the employees of the Parent company, in line with the reporting boundary applied in the previous year, and the illimity Group, respectively. Following the consolidation of recent acquisitions, the process of defining Group-wide targets will be initiated during the next financial year, with the aim of ensuring the alignment of perimeters, methodologies and reference time horizons.
[S1-5 DP 46, AR 49c]
Banca Ifis has defined specific targets for its employees to promote an inclusive and sustainable corporate culture. These objectives include the continuous improvement of employee welfare, increasing diversity and equity within the organisation, and the enhancement of sustainability topics in professional development paths.
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For example, the goal of increasing gender equality and diversity within the organisation is in line with EU directives on promoting gender equality and reducing inequalities. Likewise, the integration of ESG criteria into the remuneration system responds to European guidelines on sustainable finance and the need to encourage responsible business practices.
[S1-5 DP 47c]
The defined targets were set in percentage terms, with the intention of aligning with internationally recognised metrics, highlighting the bank's positive trends and monitoring progress in a clear and measurable manner.
In light of the structured commitment to these topics, they were set both with a view to maintaining current performance in order to consolidate the results achieved, and with a view to improvement in strategic areas where further significant progress can be achieved.
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Sub-topic | Target | Type | Baseline | Target year
Work-life balance | Smart working 40% Number of days/month smart working | Maintenance Target | 40% days smart working/month(2024) | 2026
Equal treatment and opportunities for all | Gender parity on the workforce>50% female figures | Maintenance target | 53% (2024) | 2026
Female employees in positions of responsibility>40% | Target increase | 39% (2024) | 2026
Minimum open-ended contracts>97% | Maintenance target | 97%(2024) | 2026
Application of ESG KPIs to the remuneration system Incentive variable (1)100% of employees of the Group's Italian companies | Maintenance target | 100% of employees of the Group's Italian companies | 2026
Remuneration of top management related to ESG topics 15-20% Variable remuneration of top management linked to sustainability (2) | Maintenance target | 15-20% Variable remuneration of top management linked to sustainability(2024) | 2026
ESG training 100% of the perimeter considered with at least 2 courses in 3 years | Target increase | 80% of the perimeter considered with at least 2 courses in 3 years (2024) | 2028

(1) The target set refers to the productivity bonus and MBO aimed at all employees of Italian Group companies.
(2) It should be noted that the management and supervisory bodies do not have variable remuneration systems with the exception of the Chief Executive Officer.
[S1-5 DP 47a]
The objectives described above were set with the direct engagement of the Sustainability Committee. In addition, sub-topics are identified taking into account the constant dialogue that takes place with workers' representatives (particularly on the issue of work-life balance) and the indications that emerge from the monitoring process of the Group Policy for the Promotion of Diversity and Inclusiveness (see Other sustainability information, section 5.3 Minimum disclosure requirements: MDR-P Policies overview), on issues of equal treatment and opportunities for all.
[S1-5 DP 47b]
Similarly, the Sustainability Committee is permanently involved in the processes of monitoring the achieved objectives and improving the planned targets.
In addition, in view of the normal engagement of workers' representatives, which takes place constantly through planned meetings, it is possible to monitor the aspects most closely adhering to the agreements reached with the aforementioned representatives, as well as to receive indications and/or suggestions useful for achieving the predefined objectives.
Therefore, these objectives, developed in line with international best practices, will be reviewed periodically to ensure their alignment with employee needs and ESG criteria, reinforcing the role of sustainability as a strategic lever for business success.
[S1-5 DP 47a]
Similarly, the illimity Group has defined targets in the Sustainability Plan 2023-2025 based on qualitative-quantitative analyses and internal and external benchmarks, in line with stakeholder and market expectations.
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[S1-5 DP 47b]
The Sustainability function of illimity Bank oversaw its implementation, monitoring and reporting, with periodic reporting to the Board Sustainability Committee (which is no longer in place as it has been replaced by the Sustainability Committee of the Parent company Banca Ifis) and to the Bank's Board of Directors.
[S1-5 DP 47c, AR 49c]
The social and workforce objectives were defined in line with the Sustainability Plan and company policies, including the Code of Ethics and the DE&I policy of illimity, to safeguard inclusion, gender equality and the protection of fundamental rights.

Scope | Targets realised by 2025(1) | Target status
Gender Equity | Doubling the number of women in management roles | Objective realised
Talent Pool & Gender Pay Gap | Maintaining gender balance in the formalised talent pool and a gender pay gap (calculated as Equal Pay Gap, adjusted) with a maximum deviation of 5%. | Objective realised
Engagement Index | Maintaining the Group's employee engagement index above 70% | Objective realised
illimity Foundation | Real estate impact projects through the illimity foundation | Objective realised
Gender equality certification | Maintaining gender equality certification 'UNI_PdR 125-2022’ | Objective realised
Anti-Harassment Policy | Development of a company policy to combat harassment, sexually inappropriate behaviour and bullying | Objective realised
Training | Maintain an average of 42 training hours/employee | Objective achieved(with 56 hours/employee)
Ensure 3 hours of ESG training per employee | Objective achieved(with 4,4 hours/employee)
Sustainable mobility | Awareness-raising initiatives on sustainable mobility (home-work) for employees | Objective realised
Supply chain | >50% of total expenditure on goods and services by 2025 assessed by ESG criteria | Target achieved (with a value of 57%)

(1) The targets, referring to the three-year period 2023-2025 with a base year of 2022 and a deadline set by the Board of Directors on 31 December 2025, do not include a base value.
3.1.10 Metrics
[ESRS 2 MDR-M DP 75, 77a]
In line with the approach adopted for quantitative climate change data, in the process of reporting on its own workforce metrics, Banca Ifis worked closely with the relevant business functions, ensuring qualified and targeted input in their respective areas. The methodologies and assumptions adopted are fully compliant with the European Sustainability Reporting Standards (ESRS) and current regulations, guaranteeing transparency, consistency with European sustainability standards and accurate and reliable reporting.
It should be noted that the increase in employees, which is visible for all KPIs in S1-6, compared to what was reported in 2024 is due to the inclusion in the count also of the illimity Group's employees, amounting to 672, and Fürstenberg SIM's employees, amounting to 19, as at 31 December 2025.
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[S1-6 DP 50a,d,di,dii,f]

Total employees (1) | UoM | 2025 | 2024
Men | No. | 1.298 | 952
Women | No. | 1.397 | 1.061
Other | No. | 0 | 0
Not reported | No. | 0 | 0
Total | No. | 2.695 | 2.013

(1) The employees of all Group companies as at 31 December 2025 were counted in the headcount. The number of employees of the Group is in line with the value reported in the Notes to the Consolidated Financial Statements: Part C - Information on the Consolidated Income Statement, Section 12 - Administrative Expenses - Item 190.
[S1-6 DP 50a,d,di,dii]

Total employees (1) | Country | UoM | 2025 | 2024
Italy | No. | 2.668 | 1.983

(1) In the count, in number of persons, only employees of Italian companies as at 31 December 2025 as foreign companies do not exceed the 10% limit or the number of 50 employees.
[S1-6 DP 50b,d,di,dii]

Total employees (1) | UoM | 2025 | 2024
Permanent employees (total) | No. | 2.650 | 1.962
Men | No. | 1.272 | 924
Women | No. | 1.378 | 1.038
Other | No. | 0 | 0
Not reported | No. | 0 | 0
Temporary employees (total) | No. | 45 | 51
Men | No. | 26 | 28
Women | No. | 19 | 23
Other | No. | 0 | 0
Not reported | No. | 0 | 0
Total | No. | 2.695 | 2.013

(1) The count, in number of persons, includes the employees of the entire Group perimeter including foreign companies as at 31 December 2025. In addition, apprentices were also included within the category of permanent workers. The information is extracted from the Zucchetti application for all companies of the Banca Ifis Group. For the illimity Group and Fürstenberg SIM (formerly Euclidea SIM), the data were provided directly by the respective companies.
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Note that given that operations mainly take place in Italy, no breakdown of data is given by geographic area. In addition, the Banca Ifis Group did not employ any employees with variable working hours during the reporting period.
During 2025, a total of 64 positions were opened within the Group, of which 19 were filled by internal candidates (or 30% of the total) and 45 by new recruits (or 70% of the total).
Recruitment by internal candidates consisted of 10 female and 9 male employees. These recruitments are represented by 2 persons under 30 years of age, 9 persons between 30 and 50 years of age and 8 persons over 50 years of age. In addition, with reference to the management level, internal recruitment consists of 3 managers, 8 middle managers and 8 clerical staff. Finally, with reference to nationality, there are 18 people in Italy and 1 person in Romania.
At the same time, the composition of new hires is 17 female and 28 male employees. In this case, with reference to the age group, the new hires consist of 20 persons aged under 30, 22 persons aged between 30 and 50 and 3 persons aged over 50. The management level of these recruitments is represented by 2 persons in the role of manager, 6 persons in the role of middle manager and 37 persons in the role of clerk. The new recruitments were carried out entirely in Italy.
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[S1-6 DP 50c,d,di,dii]

Total employee who have left the organisation | UoM | 2025 | 2024
Voluntary (1) | No. | 152 | 73
Due to dismissal (2) | No. | 5 | 5
Due to retirement (3) | No. | 0 | 0
Due to death (4) | No. | 1 | 1

(1) The total number of persons who left the company due to voluntary resignation has been included in the count (fixed-term terms and contract terminations within the group have been excluded and employees who left due to consensual termination have been included).
(2) The number of persons dismissed for failure to complete the probationary period, failure to confirm apprentices and for just cause has been included in the count.
(3) In the count, following the extraction from the Bank's systems, there is no distinction of employees who resigned due to retirement, who are jointly included in voluntary resignations.
(4) It is specified that the deaths recorded are not attributable to work-related causes.
It should be noted that the increase in the number of employees who left the organisation on a voluntary basis is mainly due to the integration of the numbers relating to the illimity Group: the figure is in fact composed of 78 employees who left the organisation in 2025, relating to the old perimeter of the Banca Ifis Group and 74 employees who left the organisation in the period 1 July 2025 - 31 December 2025 of the illimity Group.
It should be noted that the employee turnover rate during 2025 was 6% (3,9% at 31 December 2024), calculated using the total number of Group employees, including foreign companies, as the denominator of the KPI. Specifically, the number of Group employees with terminated employment contracts was 158, of whom 57 were women (4% turnover) and 101 were men (7,8% turnover). Furthermore, with reference to age group, it is specified that there are 32 employees aged under 30, 102 aged between 30 and 50 and 24 aged over 50, with turnover rates of 16,7%, 5,2% and 4,3% respectively. With reference to the management level, the employees who left the Group were divided into 13 executives, 44 middle managers and 101 clerical staff, whose turnover was 7,8% for employees, 4,5% for middle managers and 6,5% for clerical staff. Finally, with reference to nationality, there are 151 employees leaving in Italy (5,6%), 4 employees in Poland (26,7%) and 3 employees in Romania (25%).
[S1-7 DP 55a,55b,bi,bii, 56]
The Group has a total of 39 non-employees in its own workforce, including interns, temporary workers and project workers (CO.CO.CO). The employees of all Group companies as at 31 December 2025 were counted in the headcount.
[S1-8 DP 60a,b]

Employees covered by collective bargaining agreements (1) | Country | UoM | 2025 | 2024
Percentage of total employees covered by collective bargaining agreements | Group | % | 99 | 99
Percentage of total employees covered by collective bargaining agreements are within coverage rate by country (within the EEA) | Italy | % | 100 | 100

(1) Considered in the count, in number of persons, only employees of Italian companies as foreign companies do not exceed the limit of 10% or 50 employees.
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[S1-8 DP 63a]

Employees covered by workers' representatives | Country | UoM | 2025 | 2024
Percentage of employees in the country (EEA) covered by employee representatives | Italy | % | 100 | 100

[S1-8 DP 63b]
There are no agreements with employee representatives of the European Works Council (EWC), the Societas Europaea (SE) Works Council, or the Societas Cooperativa Europaea (SCE) Works Council. There are agreements with workers' representatives at national level for all employees of Group companies based in Italy that apply the National Collective Bargaining Agreement for the credit sector.
[S1-8 AR 70]

Coverage rates | Collective bargaining coverage | Social dialogue
Employees - EEA (for countries with >50 employees representing >10% of total employees) | Employees - Non-EEA (estimate for regions with >50 employees representing >10% of total employees) | Workplace Representation (EEA only) (for countries with >50 employees representing >10% of total employees)
0-19% |  |  |
20-39% |  |  |
40-59% |  |  |
60-79% |  |  |
80-100% | Italy |  | Italy

[S1-9 DP 66a, AR 71]

Gender distribution at top management level (1) | UoM | 2025 | 2024
Men | No. | 9 | 10
% | 69 | 77
Women | No. | 4 | 3
% | 31 | 23
Other | No. | 0 | 0
% | 0 | 0
Not reported | No. | 0 | 0
% | 0 | 0
Total | No. | 13 | 13

(1) Senior management refers to the first reports of the Group CEO, in line with the definition of the Corporate Governance Code and the section of the Banca Ifis Group's institutional website.
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[S1-9 DP 66b]

Total employees by age group (1) | UoM | 2025 | 2024
Under 30 years old | No. | 192 | 117
% | 7 | 6
Between 30 and 50 years old | No. | 1.948 | 1.457
% | 72 | 72
Over 50 years old | No. | 555 | 439
% | 21 | 22
Total | No. | 2.695 | 2.013

(1) The figures include the entire Group perimeter including foreign companies.
It should be noted that the increase in the number of employees compared to what was reported in 2024 is due to the inclusion in the count also of the employees of the illimity Group, amounting to 672, and of Fürstenberg SIM, amounting to 19, as at 31 December 2025.
[S1-10 DP 69]
All Banca Ifis employees receive a fair and adequate salary, established in accordance with applicable benchmarks and in full compliance with applicable regulations. The company is committed to promoting remuneration that reflects the principles of fairness, transparency and sustainability, valuing the contribution of each employee and ensuring economic conditions in line with industry best practice.
[S1-11 DP 74a,b,c,d,e]
All Group employees have social income coverage in the event of illness, unemployment, occupational injury and disability, leave and retirement as required by national law.
[S1-12 DP 79, AR 76]

Own employees with disabilities (1) | UoM | 2025 | 2024
Percentage of employees with disabilities, subject to legal restrictions on the collection of data | % | 5 | 5

(1) Workers belonging to both types of protected categories were included in the count: Disabled civilians (123) and workers hired under Art. 18 of Law 68/99 (no. 12) - Foreign companies were excluded due to the non-application of the regulations (there are no obligations to hire disabled personnel under the Romanian and Polish national regulations). For these reasons, employees of foreign companies were excluded from the numerator, while the total number of Group employees (including foreign companies) was used as the denominator for the KPI calculation.
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[S1-12 DP 80]
[S1-13 DP 83a]

Regular performance and career development reviews | UoM | 2025 | 2024
Men | % | 99 | 89
Women | % | 99 | 94
Other | % | 0 | 0
Not reported | % | 0 | 0
Number/percentage of performance review per employee | N. | 1,7 | 0,9
Number of reviews in proportion to the agreed number of reviews by the management | N. | 1,7 | 1

With a view to improving and streamlining the appraisal process that enhances the continuous feedback system, a refinement of the calculation was carried out considering the employees involved in the performance review processes currently underway. In particular, the Perform Up process concerns all employees of the Banca Ifis Group, belonging to the white collar and middle management categories, hired by 1 October 2025 and who have accrued at least three months of actual service during the year. The number of reviews per employee increased compared to the previous year because feedback from the Mid Year Review, also an integral part of the Perform Up process, was included in the count. This moment represents a structured discussion, to be recorded in the system, between manager and employee, aimed at monitoring the progress of the objectives assigned for the year. Finally, there is a dedicated, specially structured process for managers and key personnel.

Total employees with disabilities by gender | UoM | 2025
Men | % | 2
Women | . % | 3
Other | % | 0
Not reported | % | 0
Total | % | 5

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[S1-13 DP 83b]

Average number of training hours per employee and by gender | UoM | 2025 | 2024
Men | No. | 32 | 27
Women | No. | 30 | 22
Other | No. | 0 | 0
Not reported | No. | 0 | 0
Average number of training hours | No. | 31 | 25

The average number of training hours per employee is around 31 hours, with a balanced gender distribution (32 for men and 30 for women, respectively). Compared to the data reported in the previous year, there was an increase in the number of training hours provided. This increase can be attributed, in particular, to the enhancement of some strategic projects planned by the Ifis Academy, including the Talent Accelerator paths and the revision of the training programmes dedicated to business (Professional Program). Furthermore, it is specified that the average number of training hours provided to employees under 30 is 49, to employees between 30 and 50 is 32 and to employees over 50 is 23. At the same time, with reference to nationality, it can be noted that the average number in Italy is 31, in Poland it is 34 and in Romania it is 14. Finally, with regard to the breakdown by professional classification, it should be noted that the average hours of training provided for executives is 17, for middle managers it is 32 and for office workers it is 32.
[S1-14 DP 88c,d,e]

Own-workforce accidents | UoM | 2025 | 2024
Number of recordable work-related accidents for own workforce (1) | No. | 16 | 17
Rate of recordable work-related accidents for own workforce (2) | No. | 5 | 5

(1) Indicate the number of accidents as per Communications sent to INAIL (no accidents were reported for foreign companies).
(2) The figure was provided for the entire perimeter including foreign companies and is calculated as the ratio of the number of accidents at work to the number of hours worked by employees.

Non-employee accidents | UoM | 2025
Number of recordable work-related accidents for non-employees | N. | 1
Rate of recordable work-related accidents for non-employees | N. | 40

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In detail, 16 injuries occurred during 2025. Dangers at work constituting a risk of injury with serious consequences include the dangers linked to the work carried out by (sales and other) staff using a company car to visit customers or for business trips, or simply while commuting.
The accident rate for non-employees, 40, is attributable to the small number of non-employees and the associated hours worked, estimated on the basis of standard working hours taking into account the right to periods of paid absence from work, and can be attributed to a single accident.
It is specified that with regard to the data provided by the illimity Group, only quantitative information from 1 July 2025 to 31 December 2025 was included for calculation purposes.
In addition, it should be noted that the absenteeism rate stood at 2% in 2025, a figure calculated as the ratio of recorded sickness and accident absence days to the total number of working days in the year.
[S1-14 DP 88b,d,e]

Work-related ill health | UoM | 2025 | 2024
Number of cases of recordable work-related ill health of employees | No. | 0 | 0
Number of fatalities in own workforce as a result of work-related injuries and work-related ill health | No. | 0 | 0
Number of fatalities as a result of work-related injuries and work-related ill health of other workers working on the undertaking’s sites | No. | 0 | 0
Number of days lost to work-related injuries and fatalities from work-related accidents, work-related ill health and fatalities from ill health of employees | No. | 11.273 | 7.812

The variation in the data between 2024 and 2025 is influenced by the high volatility of the number of sick days, which is closely linked to the nature and type of cases recorded in the respective years.
In addition, during 2025, there are no cases of occupational diseases for employees. Major hazards that may cause future occupational disease, identified through risk assessment, include those derived from the following risk factors:
•physical such as noise and vibration of the hand-arm system and whole body;
•inherent in the workplace and the organisation of work, such as proper ergonomics of the workstation and the use of video terminals.
[S1-14 DP 88a]
Note that the percentage of people in its own workforce who are covered by the health and safety management system based on legal requirements and/or recognised standards or guidelines is 99%, while for non-employees it is 87%.
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[S1-15 DP 93a,b]

Total employees who took family-related leave | UoM | 2025
Men | % | 4
Women | . % | 12
Other | % | 0
Not reported | % | 0
Total | % | 16

It should be noted that the percentage of workers entitled to family leave is 100%. The figure includes the entire category of parental leave, including maternity and paternity leave, parental leave for childcare, as well as leave to care for family members, in accordance with the provisions of Law 104.
[S1-16 DP 97a,c]

Gender pay gap | UoM | 2025 | 2024
Gender pay gap including Identified Staff | % | 26 | 20
Senior managers | % | 11 | 5
Middle managers | % | 8 | 6
Clerical staff | % | 3 | 1

The gender pay gap for the year 2025 was calculated on the consolidated perimeter including the Banca Ifis Group, the illimity Group and its subsidiaries and Fürstenberg SIM. The calculation was made considering total remuneration, which specifically includes: full-year and full-time gross annual remuneration (RAL), any role-related allowances (RBA), welfare, variable components and benefits.
The overall gap was 26%, calculated as the difference between the average gross hourly wage of male employees and the average gross hourly wage of female employees, compared to the average gross hourly wage of male employees (as a percentage). The gender pay gap calculated in this way includes staff categories that are not homogeneous with each other and not comparable in terms of complexity and organisational weight; in particular, the largest staff category makes the overall figure insignificant. Therefore, evidence is given of the gap by classification, excluding Identified Staff: Managers: 11%, Executives: 8%, Clerical staff: 3%.
The difference in remuneration compared to 2024 is attributable to the extended scope (illimity Group and Fürstenberg SIM) and the different calculation method, which, in addition to fixed remuneration (used for the figure to 2024), also includes variable components and benefits.
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It should be noted that by applying the pay gap calculation methodology used for FY2025 to the data from the 2024 perimeter, the value amounts to 25%. At the same time, by adopting the perimeter and calculation methodology from 2024 for 2025, the pay gap for the current year, with the same 2024 perimeter, stands at 19%.
[S1-16 DP 97b]

Annual total remuneration | UoM | 2025 | 2024
Annual total remuneration rate (1) | No. | 41 | 43

(1) The annual total remuneration rate is calculated as the ratio between the CEO's total remuneration and the remuneration
median annual total of all employees (excluding the person earning the highest salary). The perimeter is the same as for the gender pay gap.
The calculation was made considering total remuneration, which specifically includes: full-year and full-time gross annual remuneration (RAL), any role-related allowances (RBA), welfare, variable components and benefits.
[S1-17 DP 103a,b,c]

Discrimination | UoM | 2025 | 2024
Number of incidents of discrimination | No. | 0 | 0
Number of complaints filed through channels for people in own workers to raise concerns | No. | 3 | 2
Number of complaints filed with National Contact Points for OECD Multinational Enterprises | No. | 0 | 0
Amount of fines, penalities and compensation for damages as result of the incidents of discrimination, including harassment and complaints filed | No. | 0 | 0

During 2025, a total of 3 whistleblowing reports were received, none of which was recognised as a report of an incident of discrimination or of the other cases covered by the report. Of these, 2 reports came from the Parent company and 1 from the illimity Group, submitted in the second half of 2025 concerning an incident of verbal harassment. This report, however, does not constitute discrimination in the workplace within the meaning of the relevant legislation and, as of 31 December 2025, is still being investigated.
[S1-17 DP 103c]
Therefore, in continuity with 2024, there is no evidence or reports for 2025 of discrimination cases and related fines or penalties.
260
[S1-17 DP 104a,b]

Human rights | UoM | 2025 | 2024
Number of severe human rights incidents connected to own workforce that are cases of non-respect of the UN Guiding Principles, the ILO Declaration on Fundamental Principles and Rights at Work or OECD Guidelines for Multinational Enterprises | No. | 0 | 0
Number of serious human rights incidents connected to own workforce | No. | 0 | 0
Amount of material fines, penalties and compensation for severe human rights issues and incidents connected to own workforce | No. | 0 | 0

[S1-17 DP 104b]
As for 2024, there is no evidence for 2025 of reports of human rights violations and related sanctions.
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3.2 S2 - Workers in the value chain
Material impacts, risks and opportunities
[S2.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon
Working conditions
Violation of workers' rights through the use of suppliers who do not protect workers' rights (e.g. adequate wages, safe employment, health and safety, etc.) | Potential negative impact | Upstream value chain | Medium-term
Improvement of the Group's reputation through partnerships with ESG-friendly suppliers | Opportunity | Upstream value chain | Medium-term
Strengthening market reputation through the promotion of labour rights practices along the entire value chain | Opportunity | Upstream value chain, downstream value chain | Medium-term

[S2.SBM-3 DP 10a]
Workers in the Banca Ifis value chain, with particular reference to the supply chain, represent a significant component of the Group's business. Banca Ifis is aware that maintaining a high quality in relations with suppliers means contributing to an economic development that is attentive to environmental protection and respect for human rights. The main categories of professional and non-professional services, in particular consulting or legal services, outsourcing services, customer information services and services related to the use or support of software, are highly strategic for the Group's results. For this reason, it is of paramount importance that the Bank's suppliers are carefully selected with a view to minimising potential negative impacts related to the violation of workers' rights caused by a lack of protection.
Banca Ifis, as part of the double-materiality process, carried out a careful and detailed mapping of its supply chain, identifying the main categories of suppliers and their location.
[S2.SBM-3 DP 11a,c]
The material impacts that emerged from the double materiality assessment should be considered as potentially addressed to all workers in the Group's supply chain, regardless of type or job classification. In addition, negative impacts identified as material are related to the occurrence of individual incidents of labour rights violations, which are caused by the lack of protection afforded by the supply company. These impacts are potential as they are adequately addressed and mitigated by the Bank's various internal and external initiatives and regulations, as further described below.
[S2.SBM-3 DP 11,ai-v]
In terms of the types of subjects impacted, workers in the Group's supply chain operate predominantly by entities in the upstream value chain of the company. Furthermore, at geographical level, the Group's suppliers are mainly located in Italy and are therefore subject to current regulations on the protection of workers' rights and privacy.
[S2.SBM-3 DP 12]
At the same time, through risk analysis, assessments were carried out involving the entire supplier base. These analyses did not reveal any specific categories of workers with particular characteristics that are more exposed to risks.
262
[S2.SBM-3 DP 11e]
At the same time, strategic opportunities related to strengthening sustainability in the supply chain were identified, through the promotion of practices protecting workers' rights along the entire value chain and related to the use of partnerships with ESG-virtuous suppliers. Such actions not only reduce the risks of non-compliance and improve corporate reputation, but also foster the creation of a more resilient supplier ecosystem in line with the Bank's sustainability goals, contributing to the generation of shared value in the long run.
[S2.SBM-3 DP 10b]
The material opportunities identified are closely linked to the Bank's procurement strategy, as the acquisition of information related to the sustainability profile of suppliers in the broader procurement process enables the Bank to foster responsible practices along the value chain, increase the quality of suppliers by contributing to the promotion of workers' rights and the creation of a more ethical and sustainable supply chain.
[S2.SBM-3 DP 13]
These risks and opportunities affect all workers in the supply chain.
3.2.1 Worker-related rights in the value chain
Approach and reference policies
The Banca Ifis Group has developed several policies over the years (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview) aimed at the proper management of the above impacts, risks and opportunities (IROs). In addition to the ESG Policy, which recalls the approach and general guidelines, the main oversight tools are the Group Code of Ethics, the Organisation, Management and Control Model pursuant to Italian Legislative Decree no. 231/2001 of the individual companies and the Group Expenditure Cycle Management Policy.
Consistent with its commitments in the social sphere, the Banca Ifis Group recognises the opportunity to accelerate the path of sustainable transition both within the Group and in its relations with key players in the value chain.
[S2-1 DP 16]
Within the Code of Ethics, the Group has defined a series of commitments in the ESG sphere, in line with its values and principles and with reference to its business partners and players in the value chain.
With specific regard to suppliers, they are required to approve the Code of Ethics when entering into contracts with Group companies and to adhere to it scrupulously during the contractual relationship. Specifically when formalising contracts or supply agreements, the Group also requires the acknowledgement and acceptance of the Organisation, Management and Control Model pursuant to Italian Legislative Decree no. 231/2001 (see Other Sustainability Information, section 5.3 Minimum disclosure requirements: MDR-P Policies overview). Finally, the Group's Policy for Liability Cycle Management (see Other Sustainability Information, section 5.3 Minimum disclosure requirements: MDR-P Policies overview) provides the principles and guidelines for the definition of the management process of the expenditure cycle by the Parent company and the subsidiaries and suppliers of the Group.
Through the implementation of the ESG Policy, the Group considers occupational safety, health protection and well-being of its staff, suppliers, all collaborators, customers, third parties and the various stakeholders involved in its business to be priority and non-negotiable objectives.
To this end, the Group aims to meet appropriate safety requirements and foster a safe, healthy and inclusive working environment as well as to pursue a policy of continuous improvement of its performance for the safety and health protection of all. Furthermore, it promotes a workplace free of all kinds of discrimination and applies the values of transparency, inclusion and equal opportunities at every stage of the recruitment, selection, hiring,
263
promotion and remuneration process. Finally, the Group condemns any kind of harassment, abuse or intimidation as well as any form of forced or child labour.
[S2-1 DP 17,a,b,c]
As explained in the ESG Policy (see Other Sustainability Information, section 5.3 Minimum disclosure requirements: MDR-P Policies overview), the Group considers respect for universally recognised human rights to be an essential requirement in its sustainability strategy, and therefore protects and promotes these rights in the conduct of its business and in its relations with its employees and other stakeholders. Believing that the adoption of responsible purchasing policies promotes sustainable economic development that protects the environment and respects human rights, the Group attributes a key role to suppliers in the sustainability journey and believes that transparent partnerships can generate mutual value. To this end, the Group shares its commitment to the protection of human rights through the ESG Policy, available on the Bank's official website. This document allows external stakeholders, including suppliers, to report any negative impacts or non-compliant behaviour.
Aware of the importance of promoting sustainable behaviour throughout the value chain, in 2025, the Group embarked on a journey to integrate ESG considerations in the evaluation of counterparties, including social and human rights aspects.
[S2-1 DP 19]
In implementing its banking activities and organisation from an ESG perspective, the Bank takes into account various regulations and third-party initiatives such as, as regulated in the ESG Policy, the UN Universal Declaration of Human Rights and Agenda 2030, the UN Global Compact and Directive (EU) 2022/2464.
During the reporting period, the Bank received no reports of violations of international principles, including the United Nations Guiding Principles on Business and Human Rights, the International Labour Organisation (ILO) Conventions and the OECD Guidelines. Furthermore, no incidents of human rights violations were found along the upstream value chain 52.
Actions
[ESRS 2 MDR-A DP 68a,b,c]
[S2-4 DP 32a]
The Banca Ifis Group recognises its responsibility to understand and address the impacts that its activities may generate along the supply chain, in particular on the workers of key suppliers of capital goods.
[S2-4 DP 33b]
The Code of Ethics and the Organisation, Management and Control Model pursuant to Italian Legislative Decree no. 231/2001 (see Other Sustainability Information, section 5.3 Minimum disclosure requirements: MDR-P Policies overview) are the main internal regulatory tools used to monitor and supervise the ethical-behavioural standards of business partners, ensuring that all parties involved respect the principles of sustainability, fairness and human rights. In particular, in order to intervene promptly and prevent possible negative impacts, Banca Ifis requires its suppliers to read the Code of Ethics in order to establish and maintain business relations in line with the values subscribed to by the Group. In addition, Banca Ifis has a policy for the outsourcing of business functions aimed at monitoring and regulating this area.
52 The analyses conducted by Banca Ifis with regard to workers in the value chain focused mainly on the supplier base.
264
[S2-4 DP 32d, 33c]
In order to ensure the welfare and protection of its suppliers' workers, the company adopts strict eligibility criteria during the selection phase, including verification of compliance with the DURC (Consolidated Document Attesting to Compliance with the Payment of Social Security and Welfare Contributions) and DURF (Consolidated Document Attesting to Compliance with the Payment of Tax), to collaborate with suppliers in compliance with the contribution, insurance and tax obligations under current legislation.
Banca Ifis monitors and evaluates the effectiveness of the above-mentioned action by ensuring compliance with the minimum requirements for active suppliers. This process takes place through regular checks, carried out every twelve months, which include, for example, verification of the regularity of DURCs and compliance with the minimum requirements for active suppliers. It should be noted that all of the suppliers subjected to these checks 53 were found to be in line with the selection requirements and no non-compliances were reported.
Compliance with the Code of Ethics and the selection criteria is monitored periodically, ensuring the correct application and effectiveness of Banca Ifis's commitment throughout the entire supply chain.
Ifis Academy Evolution project
[S2-4 DP 34b]
Confirming Banca Ifis's commitment to building an integrated and sustainable ecosystem, the Bank has initiated an evolution of the Ifis Academy training processes through an innovative path, which includes the provision of a platform, provided by partner Digit'Ed, through which the Bank's main stakeholders will be able to access diversified training content. The initiative is aimed at promoting the sharing of common sustainability-oriented skills and values.
In particular, the Banca Ifis Group has launched the 'Evoluzione Ifis Academy Project', with the aim of expanding the training offer, extending it not only to internal employees, but also to external stakeholders, including customers such as SMEs, leasing and rental operators and Npl debtors, as well as key suppliers and external collaborators who have access to the Bank's systems via VPN and Banca Ifis accounts. The project aims to promote a shared culture of knowledge and sustainable development along the entire value chain, enhancing human capital and strengthening the sense of individual and collective responsibility towards the territory and communities. The new training content, which ranges from financial education to the ESG world (with the possibility of acquiring SDG's User certification), to cybersecurity topics to alert users to digital risks, can be accessed from the main applications used by external stakeholders, such as PagaChiaro, myIfis and Jaegger, and delivered through the platform provided by Digit'Ed, a leading partner in the development of training programmes and infrastructures. Thanks to this evolution, the Academy is no longer just the centre of the Bank's people training, enhancement and development system, but a real Corporate School for Ifis People and its stakeholders: a step that aims at enhancing the Group's distinctive skills and generating systemic value in the long run. It is a holistic approach that opens up the view and fosters knowledge and skills development in an open system in which real learning networks can be built, while at the same time enhancing internal know-how and creating common competences with stakeholders.
[S2-4 DP 31,34b]
In addition, with a view to strengthening its reputation in the market and promoting responsible practices to protect workers' rights along the entire value chain, the Group has taken the following actions and safeguards:
53 It should be noted that the checks relate exclusively to suppliers subject to the expenditure cycle procedure.
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•analysis of supplier administrative, organisational, capital 54 and reputational aspects;
•analysis of ICT and data security aspects;
•definition of appropriate contractual standards in order to mitigate identified risks (e.g. prohibitions against subcontracting in certain conditions);
•ongoing analysis of the service levels provided by the supplier, in the light of what is guaranteed in the contract;
•definition of an exit strategy if it becomes necessary to suspend the relationship with the supplier;
•second level Operational Risk controls on outsourced functions, ICT third parties.
These and additional safeguards are formalised and ensured by the Bank through the implementation of the Group's Policy for Liability Cycle Management (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview) and the Policy for the outsourcing of business functions.
Sustainable Procurement project
[MDR-A DP 68a,b,c]
[S2-4 DP 31,34b]
At the same time, with a view to pursuing the opportunity to promote collaborations with suppliers and business partners with a better sustainability profile, the Banca Ifis Group has started a 'Sustainable Procurement' path.
In 2025, in fact, the collection of ESG questionnaires addressed to the most relevant suppliers 55 was initiated in cooperation with the Consortium ABC platform. Information within the Jaegger portal for supplier management was analysed and integrated. At the end of the year, more than 50% of the identified suppliers had completed the questionnaire and provided data on sustainability issues.The analysis of the information received showed that most of the counterparties are well positioned on these issues, thus achieving a high ESG rating.
[S2-4 DP 33c]
These analyses, and the administration of the questionnaire, represent concrete efforts by the Procurement function to increase the availability of ESG data on suppliers and will form the basis for future engagement initiatives aimed at orienting the supply chain towards the same sustainability principles adopted by the Group.
The findings, which are accessible via the dedicated dashboard on the Jaegger platform, make it possible to outline targeted actions to accompany suppliers on the path to sustainable transition.
[S2-4 DP 35]
In order to prevent any negative impacts arising from the activities of the Bank or its workforce, the Code of Ethics provides for the use of the Whistleblowing system as an internal reporting tool (see 1.1 ESRS G1 - Business Conduct, section 4.1.4 Corporate Culture and Protection of Whistleblowers, DP 10).
Banca Ifis, in its capacity as Parent company, has implemented this mechanism that allows for the reporting of conduct, actions or omissions, attributable to members of the corporate organisation, that violate national or European Union regulations and that may compromise the public interest or the integrity of the Bank and its subsidiaries.
54 The analysis of asset profiles is limited to the cases defined in the Expenditure Cycle Policy.
55 It should be noted that the sample taken under analysis corresponds to suppliers with individual commitments of more than 100 thousand Euro per year.
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Reports can be submitted through several autonomous and independent channels, including a dedicated application, a voice messaging system, the postal service or a direct meeting with the Head of Internal Audit.
[S2-4 DP 36]
In line with the attention shown by the Group, no human rights incidents related to the upstream and downstream value chain for suppliers subject to the Expenditure Cycle Policy were detected by the Procurement & Cost Management Department during the year.
[S2-4 DP 38]
The Procurement & Cost Management Department of Banca Ifis, in addition to dealing with the day-to-day management of suppliers, plays a key role in controlling and monitoring compliance with minimum requirements, with the aim of selecting suppliers who adhere to the Group's principles and values. This activity ensures compliance with established criteria and national standards and promotes an ongoing focus on a responsible supply chain 56.
[S2-4 DP 33a]
Furthermore, with the aim of taking effective action and producing positive impacts along its supply chain, Banca Ifis carries out an in-depth analysis of the external context, examining industry best practices, and conducts detailed analysis and mapping of its suppliers. Finally, it periodically monitors and maintains a constant dialogue with suppliers to verify compliance with the criteria established for selection and collaboration, with particular attention to the protection of minimum requirements for workers within the supply chain.
3.2.2 Channels
[S2-3 DP 27a,b,c,d, 28]
Since 2021, the Code of Ethics envisages a contractual clause, which, in accordance with the relevant internal regulations, defines it as a binding document vis-à-vis each recipient and, in particular, suppliers. In a parallel fashion, in the various relationships with suppliers, this clause has been introduced into contractual texts wherever possible.
Violation of the Code of Ethics can constitute, in the cases set forth in internal regulations, a breach of the contractual relationship and gives the Group the right to demand termination or withdrawal from the contract for just cause if, in the unquestionable judgement of the Group, the violation committed is such as to undermine the relationship of trust or cause significant harm to the Group. The right of the Parent company or its subsidiaries to claim damages remains unaffected.
When formalising contracts or supply agreements, as mentioned above, the Group requires, in accordance with the indications of internal regulations, the acknowledgement and acceptance of the Organisational, Management and Control Model pursuant to Legislative Decree no. 231/2001.
In order to assess the effectiveness of the systems adopted, as described in Chapter G1 (see 4.1 ESRS G1 - Business Conduct, Section 4.1.1 Corporate Culture and Protection of Whistleblowers, DP 10), the Bank has a Whistleblowing system accessible to both internal and external stakeholders, including suppliers, to collect possible reports and take the necessary measures in the event of non-compliance. As for its own employees, the Group provides protection for whistleblowers by ensuring that they are adequately protected against retaliation.
Note that in 2025, no reports were received from workers belonging to the supply chain.
56 It should be noted that the Procurement & Cost Management Department carries out its controls taking into account the exclusions provided for in the relevant internal regulations.
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3.2.3 Targets
[ESRS 2 MDR-T DP 72,81,a,b,bii]
[S2-5 DP 41,42a,b,c]
On the basis of the initial evidence emerging from the Sustainable Procurement project and considering the integration of new suppliers resulting from the acquisition of new operating businesses, Banca Ifis will assess, over the next few years, the opportunity to set quantitative targets for improving the ESG performance of the supply chain, taking into account the strategic priorities and the needs of the operating environment, also in view of the future business plan to be presented to the market. In a parallel fashion, the Ifis Academy Evolution Project involved the most relevant suppliers to strengthen engagement and foster alignment with the Group's sustainability principles.
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3.3 S3 – Affected communities
Material impacts, risks and opportunities
[S3.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon
Communities’ economic, social and cultural rights / Communities’ civil and political rights
Socio-economic development of the communities concerned through support initiatives, collaborations with third parties, donations and/or sponsorships | Actual positive impact | Downstream value chain | Medium-term
Integration into the social fabric of communities through the promotion of initiatives that support the development of the territories and communities involved, collaborating with local organisations, industrial and professional associations | Opportunity | Downstream value chain | Medium-term
Increasing market share by expanding the offer of products with a positive social impact | Opportunity | Own operations Downstream value chain | Medium-term

[S3.SBM-3 DP 8a,9c]
The communities in which Banca Ifis operates and the impacts linked to them play a fundamental role in the Bank's strategy: the Group's social agenda, in fact, puts people, communities and territories at the centre, following the double bottom line approach inspired by the Chairmanship. This translates concretely into the implementation of projects and initiatives that generate high added value on the community and territories and that promote social inclusion, diversity, people's well-being and culture.
To support this strategy, the Kaleidos Social Impact Lab, founded in 2022 at the behest of President Ernesto Fürstenberg Fassio, provides an extensive policy of investing in projects and initiatives that benefit people and communities, providing tools to help build a more inclusive and sustainable future. Territorial initiatives have the dual objective of generating a positive impact by responding to stakeholders' needs and consolidating the Group's role as a bank close to the territory.
The correlation between the Group's strategy and the material impacts identified is tangible: the socio-economic development of communities through support initiatives, collaborations with third parties, donations and/or sponsorships is the philosophy embodied in the Kaleidos Social Impact Lab and guides the Group's strategy and business model. Confirming the centrality of these topics, it is specified that they will also constitute a key element for Banca Ifis's future Business Plan to be presented to the market.
[S3.SBM-3 DP 9]
All affected communities potentially subject to material impact by the company, whether related to its own operations or along the value chain, are included in the scope of disclosure and have been covered in the double materiality assessment.
[S3.SBM-3 DP 9a,ai-iv]
The positive impacts generated by the Group's activities affect the entire territory in which Banca Ifis operates, both regionally and nationally, and the communities along the value chain represent at the same time opportunities to generate further positive impacts.
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[S3.SBM-3 DP 11]
Through Kaleidos, the Group develops initiatives, in collaboration with non-profit organisations and local or national associations, with a high social impact in the areas of inclusive communities, culture and territory and people's well-being. The material impacts and opportunities realised through Kaleidos positively and transversally affect different groups of beneficiaries such as: fragile individuals, people in socio-economic difficulties, young people, students, artists and athletes, all located locally and nationally.
[S3.SBM-3 DP 10]
The constant dialogue with communities and the impact assessment that the Bank carries out as part of Kaleidos make it possible to identify, measure and monitor the impact generated by the Banca Ifis Group's strategic initiatives in the area of social responsibility and to identify the effects of these activities on the various communities affected and on the Group's stakeholders. Banca Ifis participates in the social life of the territory constructing a relationship of continuous dialogue with people and institutions, pursuing projects that can contribute to the development of more inclusive and collaborative communities 57, in which diversity is a value and culture a tool for sustainable growth, according to the direction indicated by the Group's social agenda.
Banca Ifis also pays special attention to the local communities most exposed to potential risks, with the aim of integrating these perspectives into its sustainability strategies.
[S3.SBM-3 DP 8b]
In addition to impacts, material strategic opportunities are also closely linked to the corporate strategy as they are perfectly aligned with Kaleidos's mission: the promotion of new initiatives to support territories and communities, the creation of partnerships with local organisations, industrial and professional associations, and collaboration with community groups enable the creation of social value.
[S3.SBM-3 DP 9d]
The double materiality assessment has not revealed any material risks on communities, rather only strategic opportunities such as the promotion of new initiatives that support the development of the territories and communities involved, the increase of market share through the expansion of the offer of products with a positive social impact, such as those related to the third sector, and the creation of new partnerships to foster sustainable programmes with a positive impact. These opportunities are reflected within the broader context of Kaleidos and have the common aim of forming synergies with local institutions, in order to disseminate and promote an ongoing dialogue with the communities and provide support and promotion to the various social and cultural initiatives.
3.3.1 Commitment to affected communities
Approach and reference policies
Social topics are central to the Group's sustainability strategy, which is not only committed to respecting the rights of the local communities concerned, but seeks to create a positive impact on the people, communities and territories in which it operates. As mentioned above, also thanks to Kaleidos, the Group plays an active role in community development, strengthening ties with territories and stakeholders at local and national level. In order to ensure adequate governance of social topics, a series of Policies and Procedures have been defined that govern
57 Collective and collaborative growth refers to a development path based on diversity enhancement and social re-inclusion projects.
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the Group's activities, including the Code of Ethics and the ESG Policy (see Other sustainability information, section 5.3 Minimum disclosure requirements: MDR-P Policies overview).
[S3-1 DP 14]
The Code of Ethics outlines the set of principles, values, rights, duties and responsibilities assumed towards all stakeholders, while the ESG Policy aims to define the Group's sustainability guidelines and encourage the integration of ESG considerations into the Group's activities.
In the social sphere, these policies support the Group's commitment to the development of the communities and territories in which it operates, through participation in national projects, support for national and local non-profit organisations and entities, solidarity and social inclusion programmes, and training and research initiatives. Moreover, recognising the role of the third sector for the fair and cohesive development of the community, the Group activates partnerships for the realisation of initiatives in favour of disadvantaged categories and supports the community through donations and sponsorships consistent with its values and social objectives.
In addition, the Group pays special attention to projects supporting medical-scientific research, the promotion of diversity and inclusion, the social reintegration of people in difficulty and the enhancement of artistic and cultural heritage. Lastly, the Group supports a series of events and projects linked to the world of amateur and professional sport, both at national and local level, aimed at promoting in the community, and especially among young people, the values of sport, an expression of good educational practices and a vehicle of well-being and growth for society and organisations.
Donations and sponsorships are made transparently and in full compliance with applicable laws and regulations. All payments made in this area must be recorded accurately and in full and entered in the books and records by the relevant organisational units.
[S3-1 DP 17]
The Group's activities and policies in the field of sustainability are inspired by the main national and international initiatives and regulations such as the United Nations 2030 Agenda, the UN Global Compact and the Universal Declaration of Human Rights. The Group also reports on its commitment to sustainability according to the main applicable standards and regulations.
[S3-1 DP 16,b]
The ESG Policy enshrines, among other aspects, the Group's commitment to the protection of human rights in accordance with the highest international standards, including the United Nations Guiding Principles on Business and Human Rights and the Universal Declaration of Human Rights. As made explicit in the Policy, the Group considers respect for universally recognised human rights to be an essential requirement in its sustainability strategy, and therefore protects and promotes these rights in the conduct of its business and in its relations with the local communities.
Banca Ifis promotes a constant and collaborative dialogue with all communities. In particular, the Group collaborates with local institutions to enhance business culture. In 2025, Banca Ifis organised and promoted several meetings and opportunities for discussion with local stakeholders, communities and SMEs, focusing on different topics such as Italy's artistic and cultural heritage, sport as a tool for youth inclusion and development, and innovation and made in Italy. Some examples are the 'Innovation days' road show, in partnership with Il Sole 24 Ore, or the Study Days realised in collaboration with the Contemporary Creativity Directorate General of the Ministry of Culture.
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Actions
[MDR-A DP 68a,b,c]
[S3-4 DP 31,32c]
Through Kaleidos, Banca Ifis's Social Impact Lab, the Group acts by developing high social value projects in three main impact areas: Inclusive Communities, for the promotion of initiatives favouring diversity and social inclusion, Well-being of People, to promote psychological-physical well-being as well as sport, and Culture and Territory, to enhance and protect the territory's artistic and cultural heritage.
[S3-4 DP 32d]
In order to support the action of Kaleidos and to create an ever greater positive impact and a distinctive approach to social sustainability, Banca Ifis has developed a tool to guide the action of the Social Impact Lab in an increasingly structured manner: the Social Impact Economic Measurement Model. This model, developed by the Strategic Marketing & Research function of Banca Ifis in partnership with Triadi, a spin-off of the Polytechnic University of Milan led by Prof. Mario Calderini, is able to identify, measure and monitor the impact generated by the Group's social initiatives and makes it possible to:
•translate the "S" (social) dimension into a concrete set of values;
•make their actions measurable, guarding against the risks of socialwashing and greenwashing;
•select projects where we the impact can be maximised taking a purpose-driven approach.
The model is based on the Theory of Change and is scalable and replicable, which means that it can be applied to different initiatives implemented by the Bank. The methodology of the impact measurement model is developed in four different phases: the study of the context, the identification of impact dimensions, the identification of KPIs for each dimension and data collection, and the monetisation of social impact.
During 2025, the application of the impact measurement model continued for all of Kaleidos's relevant activities. In particular, more than 50 projects were measured (and measurable), which together generated a social value of 16,3 million Euro. The average multiplier (i.e. the ratio between the value generated and Banca Ifis's financing) was 5,2, meaning that 1 Euro invested turned into an average of more than 5 Euro of economic value for the community. This analysis revealed that projects in marginalised contexts and/or with impacts on multiple dimensions generate high social value and consequently have high average individual multipliers. Also in 2025, the impact measurement was also extended to the projects that are part of Ifis art, making it possible to measure the social value generated by the opening of the International Sculpture Park and related initiatives.
Inclusive communities
[MDR-A DP 68a,b,c]
[S3-4 DP 31,32c]
Within the Kaleidos Inclusive Communities area, Banca Ifis supports projects that enhance diversity and address social inclusion. This area includes all initiatives and projects that aim to promote an inclusive culture, to fight all kinds of discrimination and to foster, through concrete actions, gender equality and diversity in all its forms. These actions contribute to the dissemination of the positive impacts identified by the Group and, at the same time, enable the pursuit of the various mapped material opportunities.
In 2025, in continuity with previous years, initiatives were promoted to foster gender equality in STEM subjects, such as the Summer STEM Academy, the summer campus on STEM disciplines and diversity and inclusion organised by the Alumni Association of the Scuola Galileiana of Padua and dedicated to 4th grade students, and the joining of Women4Cyber Italia, the programme that encourages the improvement of skills and interest of female gender figures in cyber issues.
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Particularly important is the collaboration with NOVI Education to promote and support the Moonshot project, an innovative programme developed in collaboration with Nasa's Houston Space Center to introduce young students to STEM subjects. Thanks to the support of Banca Ifis, a specially created didactic path has been disseminated in five state schools in Rome, bringing space research directly into the classroom to spread and contaminate different subjects, scientific and non-scientific, in an interdisciplinary manner through experiments of various types and difficulty. During 2025, more than a thousand Euro students between the ages of 7 and 18 were able to attend these courses free of charge. This initiative has allowed the Group to contribute to the creation of an all-round educational welfare, to reduce the gap between public and private and to educate the new generations.
Impact measurement was applied to this project, which produced a multiplier of 3,8, i.e. 1 Euro invested in this initiative produced almost 4 Euro of social value. The measurement also shows that a large proportion of the interviewed students who participated in the programme increased their interest in STEM subjects and acquired new professional knowledge and skills.
At the same time, in the context of promoting social inclusion and youth empowerment, the Bank supported several initiatives aimed at the most fragile individuals, such as:
•collaboration with the social cooperative company Articolo 3, which operates within the Bollate Prison to facilitate dialogue between inmates and outside society;
•support for the YOLK Association, which enabled the creation of a free summer camp in Rome, which promotes educational and recreational-sports activities for children from socio-economically disadvantaged backgrounds;
•the partnership with Bambini delle Fate and the Pinacoteca di Brera in the project 'Perhaps a dragon will be born', aimed at creating an educational-artistic course for autistic children and young people in the Pinacoteca;
•collaboration with UNHCR on the DAFI programme, which promotes social inclusion through the education of young people from difficult socio-economic backgrounds by providing university scholarships to deserving students;
•support for the CEIS association in Genoa, for the development of specialised workshops for individualised educational and rehabilitation projects;
•collaboration with the Don Gino Rigoldi Foundation, through which the bank supports families and young people who find themselves on the edges of society;
•partnership with the SOS Children's Association and support for the 'Adopt a Family' project, through which the Group helps single-parent and single-income families;
•support for the Missione e Solidarietà Association, which supports those most in need and on the margins of society with concrete help, as well as support for the San Patrignano Community, which offers help to people with addictions, and for the Anfass association in Treviso, which seeks to foster the rights of people with intellectual and relational disabilities and their families.
Another relevant project concerns the collaboration with the Banco Alimentare Foundation, started in 2023 and consolidated during 2025. After supporting the distribution of the equivalent of 10 million Euro meals to people in need, Banca Ifis reinforces its commitment to social inclusion and food recovery by financing a new innovative project. Specifically, the initiative focuses on the recovery of meat as surplus food from the large-scale retail trade (GDO), to then process it through specific cooking techniques and distribute it, in the form of a finished product, to people in need through Banco Alimentare's partner territorial entities. In this way, the project takes on a highly innovative character, as it envisages the recovery of a product - meat - that is difficult to recover due to high costs and an increasingly reduced residual shelf life and, at the same time, the integration of a new operational phase - processing - through cooking techniques that guarantee its wholesomeness, safety and preservation. After conducting numerous tests and feasibility studies during 2024, the project was launched in Lombardy as a pilot project in 2025 and to date is unique of its kind at national and supra-national level.
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Here, too, the Group applied the impact measurement model to the first collaboration undertaken, which resulted in the distribution of the equivalent of 10 million Euro meals. The resulting impact multiplier is 6,7, i.e. for every Euro of donated contribution, almost 7 Euro of social value was generated.
Personal well-being
Within the Kaleidos Personal Well-being area, Banca Ifis has set up partnerships with local organisations to create programmes to raise people's awareness of the importance of prevention and to facilitate its spread, promote psychological-physical well-being in all its facets and support scientific research. The initiatives make it possible to pursue the material positive impacts and enhance the opportunities identified by the double materiality assessment. In this context, the following collaborations were promoted during 2025:
•the partnership with the Bambino Gesù Children's Hospital, to support the oncological research project on the use of CAR T cells in brain tumours in children, adolescents and young adults, and for the purchase and installation of a PET-TAC tomograph, an innovative imaging machine. With reference to the first collaboration, the support of Banca Ifis allows to support a trial aimed at assessing the safety and efficacy of gene therapy with CAR T cells on patients who have relapsed or are refractory to other treatments available today. The study is expected to enrol 54 patients aged between 6 months and 30 years with tumours that have recurred or are not responding to conventional therapies. On the contrary, with reference to the PET-TAC tomograph, it represents one of the most advanced technologies in the field of diagnostic imaging that allows obtaining detailed images for early diagnosis and monitoring, in particular, of oncological pathologies;
•the partnership with the Heal Foundation in supporting the Taxi Solidale project, which enables sick children and their families to be accompanied free of charge to specialised treatment centres for treatment. Thanks to the Bank's support, the service, which originally started in Lazio, has been extended to Lombardy and has made it possible to help not only sick children and families with treatment, but also single mothers with children from socially disadvantaged backgrounds;
•the new collaboration with the Venice Brain Foundation to support 'Brain Up', an experimental project for scientific research against infantile cerebral palsy also co-financed by the Veneto Region, which aims to promote targeted therapies and psychological support for families.
Among the most significant initiatives in 2025 in the field of biomedical research is the collaboration with the Foundation for Advanced Biomedical Research through its operational arm the Veneto Institute of Molecular Medicine (VIMM), which continues from 2020.
Located in Padua, the Foundation operates by carrying out research projects in the fields of oncological, metabolic, neurodegenerative and muscular diseases, with the aim of developing new knowledge and increasingly effective therapeutic solutions.
Over the years, Banca Ifis has supported VIMM through various programmes and research areas within the 'Adopt a Researcher' project. From the Laboratory of Pathobiology of Lymphomas and Myeloma, directed by Prof. Francesco Piazza, which has inspired studies on patients with multiple myeloma and which has made it possible to test the efficacy of new drugs against these diseases; to the research programme against prostate cancer, led by Prof. Andrea Alimonti, which aims to decrease the risk of developing resistance to therapies. Also part of this project is the organoid research programme, led by Prof. Nicola Elvassore, which aims to unravel the mechanisms that regulate brain development, enabling the identification of future therapeutic strategies for those suffering from neurodegenerative diseases.
During 2025, the collaboration with the Institute was further strengthened through the Bank's support in the purchase of a Lightsheet Microscope, an innovative piece of equipment that enables the study of neuromuscular and metabolic diseases. Thanks to this technological tool, VIMM researchers can advance scientific research by producing three-dimensional disease models, which are pioneering at European level. The microscope represents
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a highly valuable piece of equipment for the Institute: it has a useful life of around 30 years and is used by more than 15 research groups.
In order to measure the social value created by this latest partnership, the Group applied its impact measurement model, which produced an impact multiplier of 7,3. This means that every 1 Euro of donated contribution turns into more than 7 Euro of social value created. This is a remarkable above-average result, up from the measurement applied to the 'Adopt-a-Researcher' project, which had produced a multiplier of 6,2.
Convinced that sport also contributes to people's well-being and is a means through which to spread positive values, in 2025 Banca Ifis launched Ifis sport, the first banking division in Italy entirely dedicated to the support and sustainability of the sports ecosystem.
In particular, the action of Ifis sport takes the form of a wide range of products and solutions built on 20 years of experience in the sector. Today, the Group through Ifis sport offers football clubs support in the area of credit advance; structured finance solutions; leasing and operational rental of instruments and equipment; and dedicated financial coverage. This is the first and only banking proposal in Italy entirely dedicated to the world of sport. In order to promote sport as a powerful engine of social inclusion, economic growth and territorial enhancement, Banca Ifis is the main partner of the Serie A Festival and since 2025 the Official Bank Partner of the Serie BKT, an agreement thanks to which Banca Ifis strengthens its position in the world of Italian football, bringing the Ifis sport brand to all the pitches of the Italian cadet league.
The journey that included, on the one hand, enhancing the range of dedicated products and services, and on the other hand, further commitment to initiatives aimed at promoting social inclusion and spreading the positive values associated with sport. Specifically, Banca Ifis:
•supported CONI's junior medal-winning athletes in their sporting careers again this year by donating more than 80 scholarships;
•contributed to the organisation of the 40th edition of the Coppa Paolo Mantovani, Europe's most important youth sports school event in the city of Genoa, reserved for young primary school students in and around Liguria;
•confirmed the partnership with the amateur sports association (ASD) Wheelchair Sport Firenze - Volpi Rosse and continued supporting the Italian Federation of Sport for the Hearing-Impaired, in order to promote inclusion through sport;
•started a collaboration with CalcioAS Luiss in order to promote the world of sport and business by focusing on the values of ethics, excellence and personal growth.
The Bank's commitment to the world of sport has been enriched by the creation and publication of the Observatory on the Italian Sport System, a tool that photographs the value of sport and its contribution to the country's development, available to operators in the sporting and production sectors and to policy-makers. The Observatory analyses the state of health, trends and scenarios of Italian sport, acting as a measurement and evaluation tool for all stakeholders concerned.
Culture and territory
Finally, with reference to the third and last area of Kaleidos Culture and Territory, the collaboration with the Fratelli Tutti Foundation established by Pope Francis in 2021 continued, which promotes fraternity and social friendship through specific paths, as well as training activities and intercultural dialogue through dedicated events and cycles of meetings. In addition, support was given to the Marcianum Foundation, established in 2008 within the framework of the Patriarchate of Venice, which promotes cultural and school projects in the Veneto region.
This also includes the Bank's commitment to enhancing Italy's artistic and cultural heritage through various initiatives and collaborations. One example is the renewal of the partnership with the Fondo Ambiente Italiano
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(FAI), qualifying Banca Ifis as a Corporate Golden Donor member to preserve and promote artistic and cultural heritage in Italy.
The main projects in this area include 'Ifis art', the project desired and devised by Chairman Ernesto Fürstenberg Fassio that brings together all the initiatives to promote art, culture, contemporary creativity and their values. It is an articulated and unprecedented project that focuses on digital, to make art accessible also through innovative and alternative methods, the development of public-private partnerships, to support territories and communities, support the younger generation in their growth path and foster social inclusion through art. The project finds its highest expression in the International Sculpture Park, opened to the public in spring 2024 and already an international case history in corporate collection and cultural and social responsibility.
The International Sculpture Park, housed within the Group's historic headquarters, is a permanent exhibition dedicated to contemporary art in which works of art by great masters of contemporary sculpture, both Italian and international, are displayed, blending in with the surrounding environment. One of the pillars on which the Park was conceived is inclusiveness, structured both in access, which is free of charge, and in the signs, design and material choices, guided by the principles of respect for the exhibits and harmonious integration with the surrounding nature. To make the visiting experience digital and innovative, the Ifis art app has been developed, which allows visitors to book their own access time, to participate in scheduled events, but also to listen to or read the guide created especially for 'walking in beauty'. In the same spirit of disseminating culture, a guide dedicated to younger people has been designed with simplified texts and fun, appealing language.
In its second year, the museum space set up in the Banca Ifis headquarters welcomed more than 6,000 visitors, three times as many as in 2024, which had been its first year of operation. The success is mainly linked to the extension of the collection of works exhibited by Banca Ifis and the events organised also with the collaboration of external entities, with a view to strengthening connections with the territory.
The development programme of the Banca Ifis Sculpture Park's activities was also able to count on a series of new partnerships with leading local realities in order to create an interconnected ecosystem for the enjoyment of Italian art and culture. In May 2025, Banca Ifis announced a three-year collaboration with the Genesi Association to promote social inclusion through art. In the same vein, in June Ifis art inaugurated a new initiative involving the extraordinary opening of the Park to local associations active in social work. The project was created to allow children, young adults and, in general, people with disabilities to come into contact with the beauty of the works exhibited in the garden of Villa Fürstenberg, accompanying them on guided tours among the sculptures, paths and ancient trees in the park. The pilot event was held in June 2025 with the Gruppo Sollievo of the Association Parkinsoniani Associati Città Metropolitana di Venezia ODV. The initiative then saw a second appointment in October 2025 with the Cooperativa Sociale Itaca, which deals, among other things, with young people with intellectual disabilities.
The broader Ifis art project also includes other major initiatives that support, enhance and protect Italy's artistic and cultural heritage. One important example is the redevelopment project of Palazzo San Pantalon in Venice and the restoration of the work placed on its façade, 'The Migrant Child', one of only two recognised by Banksy in Italy. Supporting exhibitions, fairs, events and artistic-cultural events is another important part of Ifis art. In fact, Banca Ifis is the official sponsor of the Italian Pavilion at the 19th International Architecture Exhibition - the Venice Biennale. The Bank was also the main sponsor of the fifth edition of the International Modern and Contemporary Art Fair in Rome, where it exhibited a stand dedicated to Banksy and organised a talk on art-related topics.
Together with the Pinacoteca di Brera, Banca Ifis inaugurated 'Beauty and the Ideal. The Banca Ifis Canova Collection and the Travelling Picture Gallery', an exhibition entirely dedicated to Antonio Canova and the 12 busts of the Neoclassical sculptor recovered and restored in 2023 by the Bank. In addition, a collaboration with the Galleria Nazionale d'Arte Moderna e Contemporanea (National Gallery of Modern and Contemporary Art) was promoted in 2025 with which 'Ceroli Totale', a monographic exhibition dedicated to Mario Ceroli, was presented. The exhibition traces 70 years of the sculptor's research through a selection of 20 works including sculptures and installations from the GNAMC, Banca Ifis and the artist's collection.
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In addition to this, there are youth empowerment activities through art projects and meetings with artists, workshops also dedicated to employees within the International Sculpture Park, study days on topics related to art and culture organised in cooperation with the Directorate General for Contemporary Creativity - Ministry of Culture, and appointments dedicated to Made in Italy and the enhancement of sectors that support the Italian economy.
[S3-4 DP 38]
The Communication, Marketing, Public Affairs & Sustainability Department, in particular through the Brand, Corporate Communications & Sustainability organisational unit (which has three FTEs dedicated entirely to sustainability activities), supports the Sustainability Committee in defining the Non-Profit strategy and ensures the management of donations and in support of organisations, non-profit bodies and operators with proven experience and solid reputation, in line with the defined ESG strategy and in full compliance with the principles and rules of conduct set out in the Code of Ethics concerning transparency, compliance with the law, involvement and choice of beneficiaries. In addition, the Department was further strengthened in 2025 with the recruitment of a new resource in the role of Head of Philanthropy, with the task of strengthening the supervision of philanthropy issues.
[S3-4 DP 36]
During the year, no reports of significant human rights incidents in the communities concerned came to the attention of the Brand, Corporate Communications & Sustainability organisational unit.
[S3-4 DP 31,34b]
With reference to community-related areas, the Group has identified opportunities in relation to the promotion of initiatives that support the development of the territories and communities involved, including through increasing its market share by expanding its offer of products with a positive social impact. In particular, in 2025:
•the new 'Valore Venezia' product was launched, with the aim of enhancing the territory in which the Group operates. This is a distinctive initiative that enhances the positioning of Banca Ifis in supporting the territory and the art world. Specifically, this product is aimed at companies belonging to specific sectors and categories belonging to the world of beauty, allowing them to access a flexible form of credit with subsidised pricing. There are many synergies between the product and the Bank's commitment to the preservation and protection of Italy's artistic and cultural heritage, which is realised through the Ifis art project. To support the product and demonstrate the driving role that businesses in the world of Beauty have on the Italian economy, data and information from the study conducted by Banca Ifis 'Economy of Beauty' were used;
•the sixth edition of the 'Economy of Beauty' market watch has been published, a project born in 2021 as a platform for business culture dedicated to stakeholders interested in enhancing Beauty as a distinctive factor, and aimed at measuring, year after year, the contribution of Beauty to the overall development of the Italian economy. In particular, this edition of the Observatory tells how companies in the Beauty sector have chosen to invest in Artificial Intelligence and what the tangible results are. The observatory shows that the adoption of these technologies achieves concrete benefits for business growth: increased efficiency, improved profitability and reduced costs. Artificial intelligence is thus confirmed not as a mere trend, but as a real driver of strategic transformation.
These initiatives are in addition to the publication of the Social Bond Framework in 2024, which represented a fundamental step towards increasing transparency with respect to the assets financed by the Group, strengthening the relationship with long-term investors and other stakeholders. In particular, the Framework supports the Group's sustainability strategy and is an integral part of Banca Ifis's ambition to deliver a positive impact through its banking activities by directing capital flows towards a sustainable economy. In line with the Group's social commitments and objectives, the framework aims to define clear rules for identifying eligible activities to be financed through the issuance of a social bond. The Social Bond Framework is an opportunity for Banca Ifis to position itself in the sustainable finance market in order to attract dedicated funding for loans and
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investments with a positive social impact, according to the Group's funding plan, putting the topics of sustainability at the heart of discussions with investors.
[S3-4 DP 31, 32c]
In 2025, the illimity Group continued its commitment to generating shared value for communities by financially supporting the illimity Foundation (the 'Foundation'), an autonomous and independent entity from the Group, set up to develop social and territorial impact and regeneration projects. For illimity, this commitment also translates into tangible actions, such as the donation of real estate - from guarantees of impaired loans - to associations and Third Sector organisations for social purposes. Significant examples are the properties donated in past financial years by companies of the illimity Group, respectively, to the Il Nodo di Catania Consortium to house young care leavers (Barrio21 Project) and to the Kirikù Cooperative for the creation of an educational hub for young people and families to be inaugurated in the first half of 2025 (H.edu Project), demonstrating how illimity transforms resources into opportunities for those who need them most. The Foundation promotes paths of inclusion, cohesion and shared well-being, mainly through the regeneration of disused real estate assets, enhancing the value of local heritage and promoting long-term economic and social sustainability.
3.3.2 Engagement processes
[S3-2 DP 21,a,b,c,d]
Each social initiative follows a specific evaluation process that includes, after an initial phase of listening to the communities and collecting their needs and requests for support through dedicated on-line and in-person events, an activity to verify the consistency of the initiative with the values promoted by the company (conducted by the Communications, Marketing, Public Affairs & Sustainability Department). During these phases, contacts with associations, foundations or non-profit organisations are carried out directly, without intermediaries or delegated persons, at least monthly. Each initiative is presented to and approved by the Sustainability Committee, which decides independently within the budget defined at Group level. In addition, the Committee itself guides the approach used by the Bank in community engagement, while the Communications, Marketing, Public Affairs & Sustainability Department ensures that the engagement process is carried out effectively and that the results are integrated into the social strategy, ensuring effective and structured community engagement.
[S3-2 DP 22]
Particular attention is paid to the needs of affected communities that may be considered more vulnerable and are in situations of greater hardship, with whom medium- to long-term partnerships are promoted that foster a more inclusive culture and have been shown to be the most significant in terms of the social value generated, as better described in the section on impact measurement.
[S3-2 DP 21,a,b,c,d]
Similarly, the illimity Group implements engagement activities towards affected communities in order to guide its decisions and activities, directly involving communities through legitimate representatives or their trusted proxies. Engagement takes place in the strategic planning and monitoring phases of ESG policies, through questionnaires, interviews and thematic workshops (focus groups), to assess material ESG impacts, on an annual basis.
This process is overseen by the Board of Directors, operationally supported by the Sustainability function of illimity, contributing to the integration into corporate decisions. The effectiveness of engagement is monitored through dedicated KPIs that measure the results of policies and actions undertaken.
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3.3.3 Targets
[ESRS 2 MDR-T DP 72,81,a,b,bii]
[S3-5 DP 41,42a,b,c]
The Sustainability Committee, a managerial committee chaired by President Ernesto Fürstenberg Fassio, was also set up by the Banca Ifis Group to strategically address the material impacts, risks and opportunities relating to the affected communities. The commitment in these areas will finally be further strengthened in the future business plan to be presented to the market, which will incorporate concrete objectives to demonstrate the Bank's commitment to the communities concerned.
illimity, within its Sustainability Plan 2023-2025, has identified as one of its priorities the generation of social impact in the real estate sector through support for the illimity foundation, with the aim of contributing to urban regeneration, reducing vulnerable situations and creating value for local communities through inclusive initiatives and dedicated spaces. The definition of this priority action was supported by double materiality assessment and an ongoing dialogue with stakeholders, consistent with ESG priorities. The Plan ended in 2025, making it possible to evaluate the results achieved. Barrio21, H.edu) of the illimity foundation has contributed to consolidating and developing social and urban regeneration initiatives oriented towards youth inclusion, living and working autonomy and the creation of community spaces, strengthening the territorial coverage of the above-mentioned projects and broadening their impact. Overall, the actions implemented have generated positive effects in terms of social and labour inclusion, social urban regeneration and strengthening of local ecosystems.
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3.4 S4 – Consumers and end-users
Material impacts, risks and opportunities
[S4.SBM-3 DP 9a]
Consumers represent a strategic asset for the Banca Ifis Group, constituting a central reference in the choices of business model and sustainable development.
With this in mind, the Group adopts an approach geared towards long-term value creation, responding to customer needs, addressing risks and exploiting opportunities arising from consumer dependencies. This approach is embodied in initiatives such as sustainable recovery, aimed at the financial re-inclusion of debtor clients, and the dissemination of products and services that support the sustainable transition of SMEs as well as financial inclusion. Furthermore, the Bank promotes transparent and secure communication, ensuring data protection through advanced IT systems. In a parallel fashion, the Bank has defined a strategy oriented towards consumer satisfaction, integrating their needs with sustainability, innovation and transparency objectives.
[S4.SBM-3 DP 10,a,10ai-iv]
The focus on customers is also reflected in the results of the double materiality assessment, which identified related impacts, risks and opportunities.
The material impacts identified involve the end users who access the communication channels and use the products and services offered by the Bank, with specific reference to NPL debtor customers and business customers, especially SMEs. The Bank's conduct has the potential to adversely affect the privacy, personal data protection, freedom of expression and the principle of non-discrimination of consumers and end users.
[S4.SBM-3 DP 10b]
The analysis shows that negative impacts are limited to potential individual incidents because they are mitigated by adequate internal controls and policies. They are mainly related to the execution of unfair commercial practices towards customers, limited access to products and services for certain categories of stakeholders, digital gaps brought about by the bank's digitisation processes, and possible violations of privacy.
[S4.SBM-3 DP 10c]
The positive impacts extend to the entire customer base and translate into benefits such as the financial re-inclusion of households, the development of sustainable recovery models for Npl customers, the support of SMEs in sustainable transition paths and the promotion of an entrepreneurial culture, as well as the provision of tailor-made products/services and timely and effective complaint handling.
[S4.SBM-3 DP 9b, 10d]
As part of the materiality assessment, Banca Ifis identified a number of material risks and opportunities related to customer impacts and consumer dependencies. Risks mainly include operational risks, with particular reference to potential unauthorised access to customer data (data breach) by internal staff, as well as risks of non-compliance with market integrity, fairness and transparency regulations. These are flanked by reputational risks arising from the failure to respect customers' interests, the adoption of unfair business practices or the absence of adequate codes of conduct.
At the same time, the opportunities identified include strengthening the Group's reputation through clear and transparent communication and the promotion of financial education initiatives, as well as improving loyalty through enhanced privacy and data security safeguards, and expanding market share through the development and implementation of digital and innovative solutions, products and services.
[S4.SBM-3 DP 11,12]
The risk and opportunity assessment covers the entire customer base of the Banca Ifis Group, without specific subdivisions. The various projects implemented by the Bank, described in the following paragraphs, have made it
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possible to understand the needs of different consumer groups and to enhance positive impacts, strengthen safeguards to counter negative ones, evaluate new opportunities and mitigate identified risks.
3.4.1 Digitalisation and access to (quality) information
The Group recognises the development of digital innovation as one of the leading and priority actions for the implementation of its strategy. The main objectives include expanding the product offering through fully digital sales channels, improving the user experience for all types of customers and streamlining internal processes.
[S4.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon
Access to (quality) information
Contribution to the creation of a digital divide for certain categories of disadvantaged users, due to the progressive digitalisation of Bank processes | Potential negative impact | Downstream value chain | Medium-term
Expanding market share and improving retention through the implementation of digital/innovative solutions, products and services | Opportunity | Downstream value chain | Medium-term

Group approach and policies
[S4-1 DP 15]
In this context, the Banca Ifis Group integrates technological development and digital innovation within its sustainability strategy.
In the Group's ESG Policy (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview), the development and deployment of digital technologies stand out among the key elements reflecting commitment to the three pillars of environmental, social and governance sustainability. This approach highlights how digital transformation is integrated into the Group's sustainable strategy, representing a key element.
In line with these principles, each Group company offering a catalogue of banking products and services has adopted a specific organisational procedure aimed at showing the strategy by which full compliance with current transparency regulations is ensured. Through the application of the Organisational Transparency Procedure for Banking and Financial Transactions and Services (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview), the Group promotes fairness and clarity in transactions related to the protection of customer rights.
Actions
[ESRS 2 MDR-A DP 68a,b,c]
For Banca Ifis, digitisation is a key strategic factor in the evolution and strengthening of its business and customer relations, enabling it to offer increasingly efficient, accessible and personalised services. Thanks to the adoption of advanced technologies, the Bank is able to improve data management, optimise daily operations and respond more promptly to customers' needs. Digitalisation enriches customer interaction, making transactions faster and
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safer, favouring transparent and immediate communication, and facilitating access to banking services, in line with the expectations of an increasingly digital world. The illimity Group is also moving in this direction, developing, through its suppliers, IT platforms that guarantee IT security and a good digital customer experience. Fundamental are the digitisation and technological modernisation measures undertaken, with the aim of offering customers a simple, immediate and user-friendly digital experience.
[S4-4 DP 30,33b]
The Group sees innovation as a key opportunity to expand its market presence and consolidate customer loyalty. To this end, it invests in the development of cutting-edge digital solutions, products and services designed to adapt to a changing environment and meet the needs of an increasingly competitive market. Consistent with this vision, the Group has initiated several significant projects in 2025, in line with its strategic directives, which consider digitalisation a central factor in the Group's reputational and business growth.
These include the continuation of a development programme called Digital Selling Platform (DSP), aimed at optimising the sales and onboarding processes of companies. The initiative aims to create a single platform to centralise processes related to each type of service, either through sales channels intermediated by the sales network (internal or external) or directly (self-service). In 2025, the platform was enhanced with the sale of the 'e-Bike to consumers' product, expanding the range of products available to B2C customers.
At the same time, new solutions were introduced for remote identification and signature services that are essential for e-commerce channels, self-service sales modes and online mediation portals for salary-backed loans. These digital tools allow access to market segments that are difficult to reach through traditional physical intermediary channels, contributing to the expansion of Banca Ifis's presence in the market. Particular focus was given to improving application performance, with a focus on aspects that directly influence the customer experience.
In the same vein, the 'Next4Lending' project was launched, which aims to enrich the platform with the Lending product by simplifying and digitising the current process, reducing manual work and operational risks and improving efficiency. Another significant intervention concerned the improvement of the user experience of the Next platform through the introduction of improvements aimed at simplifying and digitising the sales process, from quotation to disbursement.
The Group has also continued to strengthen and evolve the digitalisation path undertaken in the previous year with the aim of increasing the efficiency of internal processes and services for customers, be they businesses or private individuals. Action has been taken to enhance the security of the entire IT system, ensuring robust and secure applications that provide high standards of protection and security for customers.
[S4-4 DP 30,31a,d,32a,b,c]
With the aim of reducing the possible digital divide for certain categories of disadvantaged users due to the context of increasing digitisation, during 2025 Banca Ifis implemented a governance system dedicated to the issue of accessibility, defining an operating model and a regulatory framework complete with processes and procedures governing accessibility management within the Bank. This structured commitment reflects the Group's desire to ensure, on an ongoing basis, the increasing accessibility of its digital assets.
In the context of the creation of new assets and the progressive digitisation of existing ones, the Innovation Office plays a coordinating and guiding role, ensuring that accessibility requirements are integrated right from the design stages.
In addition, the Group concluded the 'Digital Accessibility Remediation' project aimed at implementing a new design system for the Bank's applications, enabling people with permanent or temporary psycho-motor disabilities to use the Group's corporate websites.
At the same time, the Group promotes initiatives, both internal and external, to foster digital inclusion, support innovation and close gaps for specific categories of users. Particular attention is paid to initiatives to raise awareness and promote gender equality in STEM disciplines: in 2025, the Bank renewed its support for the
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Summer STEM Academy for the fifth consecutive time, involving twenty-five girls and boys in the fourth year of high schools throughout Italy with excellent results in science subjects (see 3.3 ESRS S3 - Affected Communities, section 3.3.1 Commitment to Affected Communities, DP 31,32c).
To support its growth and retention strategy, Banca Ifis has started a market analysis to assess the competitiveness of its offer and the efficiency of its processes. Particular attention is paid to the clarity and effectiveness of customer communication, ensuring an interaction characterised by professionalism, fairness and transparency and enabling customers to make informed choices.
In addition to the initiatives described above, illimity is committed to generating value for its customers by promoting a clear and transparent communication approach, based on the full sharing of essential information and detailed pre-contractual documentation related to the products offered (e.g. interest rates, protection mechanisms). In doing so, it aims to ensure that the benefits and risks associated with such instruments are readily understood by the client. In particular, the illimity Group implements an internal control process for the preparation of corporate and commercial communication content to ensure compliance with transparency and consumer protection regulations.
This communication approach applies to all documentation addressed to illimity customers including advertising material, pre-contractual and periodic information and contractual documentation. The implemented practice is fundamental to the correct design of business processes and to increasing stakeholders' sense of trust regarding the transparency of illimity's operations and services.
[S4-4 DP 31d]
In order to verify the effectiveness of the projects implemented, the Bank introduced a system to monitor the KPIs identified for each project. This approach is aimed at analysing and resolving any anomalies, with the aim of identifying areas for improvement and ensuring increasingly reliable and efficient portals.
[S4-4 DP 34]
To ensure effective and comprehensible communications, the Bank uses the structures of Brand, Corporate Communications & Sustainability and Digital Innovation & Advertising. In order to fulfil regulatory transparency obligations, all customer communications are subject to validation by dedicated control structures such as Legal, Compliance and Privacy. In addition, to prevent ineffective communications, the sales network receives continuous, up-to-date training on the risks of miscommunication.
3.4.2 Privacy
The growing spread of ICT products and services based on processing personal data has made privacy and information security more and more strategic for companies over the years. In this context, the Banca Ifis Group considers the protection of personal data to be an indispensable value in consolidating customer trust and protecting its reputation, and is strongly focussed on the prevention and rapid management of IT incidents in order to protect its information assets entrusted it by the customers.
[S4.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon
Privacy
Violation of customers' right to privacy resulting from inadequate management systems or ineffective application of procedures and preventive actions with consequent data loss | Potential negative impact | Downstream value chain | Medium-term

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IRO description | IRO category | Connection with value chain | Time horizon
Risk of operational losses due to unauthorised access to customer data (Data Breach) by Banca Ifis in-house staff for personal gain | Risk | Own operations Downstream value chain | Medium-term
Improving customer loyalty by optimising corporate assets in terms of privacy and data security and quality information | Opportunity | Downstream value chain | Medium-term

Group approach and policies
[S4-1 DP 15]
In this context, Banca Ifis has integrated the protection of privacy and data security among the strategic and non-negotiable objectives of its corporate governance, considering them essential elements to ensure transparency, reliability and respect towards customers, employees and stakeholders.
In support of this commitment, the Bank has a Group Policy for IT Security Management, which defines the IT security governance model, establishing principles, responsibilities and operating rules for the protection of the Group's information and IT assets, to guard against risks associated with the use of information systems (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview).
In a parallel fashion, the ESG Policy (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview), the Banca Ifis Group considers the protection of privacy and security of customer information to be priority objectives, ensuring transparent data management that complies with the current regulatory framework.
To ensure the concrete implementation of these principles, the Group has adopted the Regulatory Handbook on Privacy, drafted in compliance with Regulation (EU) 2016/679 (GDPR) and Italian data protection legislation. The Manual is designed to protect personal data processed by Banca Ifis and its Italian subsidiaries, while respecting fundamental freedoms and promoting responsible and compliant handling of personal data (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview).
[S4-1 DP 16a]
The Manual also emphasises that respect for universally recognised human rights is an indispensable requirement of its strategy by promoting the protection of these rights in its operations and in its relations with employees, stakeholders, users and end consumers.
[S4-1 DP 16]
The ESG Policy has been developed in compliance with international regulations and principles, including the UN Global Compact, the Universal Declaration of Human Rights and UN principles, thus reinforcing the Bank's attention to promoting a responsible growth model.
[S4-1 DP 16c]
With this in mind, the Parent company promotes sustainable economic development, giving preference in its financing decisions to companies that adopt ethical behaviour, optimising environmentally friendly production methods, guaranteeing inclusive working conditions that respect human rights, and are inspired by the highest standards of corporate governance.
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[S4-1 DP 16a,b]
To promote transparency and customer engagement, the ESG Policy is made public and accessible, strengthening the creation of long-term sustainable value. However, no direct engagement of consumers and end-users was carried out in the drafting of the Policy and in defining the Group's approach to human rights.
[S4-1 DP 17]
The various instruments adopted by the Bank have been developed in accordance with international standards, ensuring that all activities are aligned with the principles of the UN Global Compact and the OECD Guidelines. To date, there have been no cases of violation of these principles towards customers and along the value chain, in line with the Bank's focus on meeting global standards of sustainability and social responsibility.
Actions
[ESRS 2 MDR-A DP 68a,b,c]
For Banca Ifis, the protection of customer privacy represents a fundamental value as it contributes to strengthening trust and preserving the company's solid reputation. The Bank recognises the importance of ensuring strict and transparent management of personal data, in accordance with European and Italian regulations. In this context, as mentioned above, the Privacy Rulebook is a key tool to ensure that all personal data processing activities are carried out in compliance with the rules in force, with the protection of the rights of data subjects at the centre. Through a structured and monitored approach, Banca Ifis is committed to implementing specific measures to maintain high standards of security and transparency at all stages of processing, consolidating stakeholder trust.
[S4-4 DP 30,31a,33a]
The increasing digitisation and computerisation that have characterised the Group's processes and activities in recent years have made the issues of cybersecurity and data protection increasingly central to the strategy and business model. In particular, numerous activities are implemented to promote cybersecurity and to protect privacy, with the aim of adequately guarding against and monitoring potential risks and related negative impacts. One important example is the internal regulatory framework governing IT security and the processing of personal data in compliance with national and international law. From a governance point of view, the management of privacy and cybersecurity issues is carried out by the Privacy & Security Department, reporting directly to the General Management and, specifically, to the Chief Operating Officer (COO). As described in the Organisational, Management and Control Model as per Italian Legislative Decree no. 231/2001 of the Bank, the COO is responsible for overseeing the bank's IT and information security and business continuity functions, as well as privacy regulatory safeguards. General Management also includes an Operational Quality Committee, with the aim of outlining, and sharing, operational improvements that allow the Bank to continuously refine its attention to internal/external regulatory frameworks and IT security. Finally, it should be noted that the cybersecurity strategy is outlined and monitored by the CEO.
With regard to the protection of its customers' privacy, the Banca Ifis Group has adopted a number of safeguards to intervene promptly in the event of violations related to inadequate management systems or ineffective application of security procedures. The control systems put in place by the illimity Group include specific access protocols, activities of the Compliance function with reference to the requirements defined by GDPR and prudential regulations, and IT systems with access profiling. These measures aim to prevent breaches of customer privacy and the loss of sensitive data by ensuring that all preventive actions are effective and properly implemented.
In line with the reference legislation, the Group has also adopted specific internal procedures, in line with the provisions of Regulation (EU) 2022/2554 (DORA Regulation), which is currently being updated. These procedures are designed to handle information security incidents that could compromise personal data, violating the confidentiality, integrity or availability of such data. Likewise, the illimity Group adopts internal rules on IT security,
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data protection and business continuity. Specifically, this includes advanced data protection and monitoring systems, protocols to handle data breaches, encryption and enhanced authentication; as well as safeguards in compliance with GDPR and DORA regulations.
At the same time, the Group promotes awareness-raising and training initiatives aimed at reinforcing the awareness of the resources that manage communication activities, drawing attention to any cases of misconduct that might accidentally occur. A typical example of a privacy-impact incident is 'mispostal', which occurs when a person's personal data is accidentally transmitted to unentitled persons. In such cases, Banca Ifis undertakes to intervene promptly by assessing the extent of the breach and informing the person concerned, in order to allow the appropriate protective measures to be taken and to avoid any unlawful use of the wrongly transmitted information. Similarly, the illimity Group also promotes awareness-raising initiatives aimed at employees through customised training on the topics of phishing, business e-mail compromise, malware, data protection and business continuity.
The measures described above aim to prevent breaches of customer privacy and the loss of sensitive data by ensuring that all preventive actions are effective and properly implemented.
With regard to cybersecurity topics, in 2025, the Group has implemented several actions to improve employees' ability to identify and report incidents involving personal data. In particular, IT tools were implemented to detect and prevent abnormal or fraudulent behaviour, such as data theft, and access to customers' banking data was monitored, both by staff with and without privileged users, in line with the provisions of the Data Protection Authority. The Group ensured the prevention and timely handling of IT security incidents, protecting its information assets, which include the data of customers, employees and suppliers. In support of these, numerous staff awareness-raising initiatives were carried out on data protection and cybersecurity issues. These include the monthly dispatch of the newsletter 'Flash Cyber News', the organisation of the interbank phishing 'championship' and communication activities aimed at raising awareness of the most recurring cyber threats and the most effective ways to defend oneself (see 3.1 ESRS S1 - Own workforce, section 3.1.3 Training and skills development, DP 37).
In the same area, as for 2024, the Group has continued the project activity to revise the Supervisory Authority's Order No. 192 of 2011, aimed at intercepting any anomalous or undue behaviour by Group employees in relation to personal banking data of customers. The activity involved, among other things, the review of the application perimeter, the verification and regeneration in accordance with the registers, the verification and refinement of alerts, and the verification and testing of the escalation process to ensure the correct application of internal processes and to strengthen privacy protection. On the technical side, the illimity Group regularly carries out crisis simulations and conducts Vulnerability Assessment and Penetration Test (VAPT) activities to identify and mitigate potential vulnerabilities.
[S4-4 DP 30,33b]
In continuation of these safeguards, the Banca Ifis Group conducts regular security tests on websites and portals for users and customers, in order to ascertain the presence of any security anomalies and, consequently, to strengthen the safeguards. Unique and secure access solutions (such as SPID and CIE) were also implemented to streamline and facilitate access to restricted areas for Npl customers.
To further increase the security of instant credit transfer transactions, the Group has activated, in cooperation with core banking service providers, the 'Verification of Payee' (VoP) function, which allows the IBAN to be checked against the account holder, possibly also requesting an identification code (e.g. VAT number or tax code), reducing the risk of errors and fraud.
[S4-4 DP 34]
The focus on privacy is not limited to the internal operations of the Group, but also extends to relations with its value chain. In particular, the Group pays special attention when establishing business relations with suppliers, especially those dealing with the processing of personal data of customers and/or end users. Before a contract
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is concluded, suppliers are thoroughly assessed by the competent internal functions, with a particular focus on verifying the adoption or ability to adopt adequate measures to ensure the protection of personal data processed. The illimity Group also involves its value chain in information privacy management, implementing an ongoing Third Party Risk Management process to monitor the IT security posture of suppliers, services and products provided by the Bank.
[S4-4 DP 32a]
With the aim of monitoring the effectiveness of the actions taken, the Group has structured privacy breach management processes and measures regulated by an internal regulatory framework, including the Operating Procedure for the Management of Information Security Incidents. These processes are based on industry best practices, codes of conduct and guidelines from competent authorities, including the European Data Protection Board.
[S4-4 DP 32b]
In line with the IT security management process described above (see 3.1 ESRS S1 - Own workforce, section 3.1.6 Other work-related rights (privacy), DP 39), Banca Ifis monitors the performance of the solutions adopted with the aim of applying corrective and preventive actions based on the audits carried out and the impacts found.
[S4-4 DP 32c]
The reference processes, which are being updated with the entry into force of the DORA Regulation, are shared through training sessions, tested regularly and monitored using dedicated IT resources, such as Jira and RiskOp.
[S4-4 DP 31d]
All security incidents are surveyed and reported on an annual basis. Starting with the analysis of the incidents that have occurred, the 'problems', i.e. recurring patterns at the origin of accidents, are examined in order to identify and implement the most suitable preventive actions. Such interventions may include staff training or the adoption of technological solutions to detect, intercept or exclude human error.
3.4.3 Access to products and services
The Banca Ifis Group supports SMEs with a diversified range of commercial and corporate banking services, including factoring, financial leasing, advisory for M&A transactions and medium and long-term financing. In the Npl segment, the Bank adopts a sustainable collection model that allows households and companies to manage repayment plans and encourages their financial re-inclusion.
[S4.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon
Access to products and services / Non-discrimination
Financial re-inclusion of families and development of an ethical and sustainable collection model | Actual positive impact | Downstream value chain | Medium-term
Contribution to customer financial education | Actual positive impact | Downstream value chain | Medium-term
Contribution to increasing the country's entrepreneurship and supporting it in the sustainable transition through the strengthening of credit access channels, with a specific focus on SMEs | Actual positive impact | Downstream value chain | Medium-term

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IRO description | IRO category | Connection with value chain | Time horizon
Lack of ability to meet the financing requirements of certain stakeholder categories due to operational limitations, positioning, strategic decisions of the Group and/or regulatory pressure | Potential negative impact | Downstream value chain | Medium-term
Enhancing reputation through the promotion of effective financial education initiatives | Opportunity | Downstream value chain | Medium-term

Group approach and policies
[S4-1 DP 15]
In order to effectively manage the impacts and seize the opportunities associated with its activities in the areas of financial education, strengthening of credit access channels and financial reinclusion, the Group has adopted a framework of policies and procedures that ensure transparency, fairness and risk control at all stages of the development and communication of its business initiatives (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview). In particular, the Group Policy for Approving New Products and Services, Launching New Businesses and Entering New Markets defines the guiding principles aimed at ensuring a structured and transparent process, while the Group Organisational Procedure - Management of Marketing Communications to Customers establishes the organisational and operational criteria governing marketing communications, ensuring a coordinated, consistent and responsible approach throughout the Group's operations.
Actions
Accessibility
[ESRS 2 MDR-A DP 68a,b,c]
[S4-4 DP 30,31a,d]
In this context, the Banca Ifis Group is committed to preventing situations of limited access, for specific categories of stakeholders, to favourable credit line conditions, which may arise from the Group's strategic choices or from operational and positioning difficulties in meeting financing requests.
To this end, Banca Ifis operates in line with the Group's Policy for the approval of new products and services, the launch of new activities and entry into new markets by adopting guiding principles governing the development, modification, distribution and monitoring of products and services offered. For products intended for retail customers, these processes ensure that, throughout the entire life cycle, the interests, objectives and characteristics of customers are adequately considered, with particular attention to the assessment of typical risks and the avoidance of potential conflicts of interest.
The Banca Ifis Group also continued the 'Innovation Days' project involving the Group's managers in partnership with Il Sole 24 Ore, through which technology and sustainability issues are explored in depth within an entrepreneurial context made up of companies that do not stop investing and recording important results in both product innovation and sustainability. Through this initiative, the Bank aims to improve the financial education of its audience, while strengthening its reputation and competitive positioning in the market.
Finally, the illimity Group supports its customers by offering savings instruments and factoring and financing services aimed at fostering business development and growth, stimulating investment and facilitating access to credit. Specifically, illimity:
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•promotes structured financial solutions for corporate and SME customers, such as the provision of new finance or the takeover of existing finance;
•provides financing, also with public guarantees and facilities, mainly to corporate clients in order to support them in their recovery, revitalisation and growth process;
•finances the working capital of companies, improving their supply chain management;
•provides financial savings instruments, including deposit accounts, also accompanied by guarantee measures such as the Interbank Deposit Protection Fund for retail customers.
ESG products
[ESRS 2 MDR-A DP 68a,b,c]
[S4-4 DP 30,31c]
At the same time, the Group aims to generate positive impacts by supporting sustainable transition through expanding access to credit, with a focus on SMEs. With this in mind, the Group has embarked on a gradual process of integrating ESG parameters into the Bank's information system: an effective collection of ESG data contributes, for example, to mitigating the risks associated with assessing the creditworthiness of counterparties and strengthening the company's reputation, contributing to the development of a strategic vision that goes beyond the mere requirements of an increasingly complex and articulated regulatory framework.
2025 saw the continuation of the local initiatives started with businesses, independent professionals and SMEs, helping to promote the management culture and raise awareness on best practices as well as new technologies and tools supporting growth - chief among them digitalisation.
In 2025, the Bank continued its collaboration with SACE through the activation of the SACE Green Guarantee, thanks to which both SMEs and large companies can implement a sound sustainability strategy. The Guarantee, backing 70% of the loan, aims to support Italian companies that invest in projects to develop their businesses in Italy with the objective of accelerating the transition to an economy with a lower environmental impact, integrating production cycles with low-emission technologies for the production of goods and services, and promoting initiatives that develop mobility with lower polluting emissions.
In addition, the Group implemented the following main initiatives:
•in continuity with 2024, the promotion of sustainable mobility continued, despite the state incentives (so-called Ecobonus) for the year 2025 have been further scaled down; in particular, given the importance the Bank attaches to the issue in question, the sales network has been constantly informed about the new state 'Ecobonus' incentives and made aware of financial leasing solutions for electric vehicles;
•in continuity with 2024 when the new B2B 'e-bike rental' product was released to promote sustainable mobility and active tourism in Italy, in 2025 sustainable mobility was further promoted by extending the 'e-bike' product to B2C customers as well;
•following the release in 2024 of the leasing product for photovoltaic systems and charging stations aimed at supporting the transition to renewable energy sources and environmental sustainability, awareness-raising campaigns were carried out in 2025 for the sales network and strategic partnerships were undertaken to develop the product.
The Group also continued to develop its offer of sustainable products in the social sphere, introducing an electro-medical leasing and rental product (offered by Banca Ifis and Ifis Rental Services respectively) designed specifically for pharmacies and healthcare facilities based in Campania, Molise, Apulia, Calabria, Sicily or Sardinia. The aim is to support health centres and prevention activities in these territories by facilitating access to high-end diagnostic equipment through favourable conditions.
Similarly, the illimity Group has moved in this direction, developing the "Green, Social & Sustainability-linked Loan Framework", which has been included in illimity Bank's internal regulations, specifically in the Single Credit Procedure, and has been subject to independent assessment by the DNV certifying body valid since 2024. This
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framework has enabled illimity to establish guidelines for providing loans and/or investments to support projects with positive impacts on the environment and society, as well as providing incentives for companies to improve their sustainability practices. Specifically, illimity has defined business strategies oriented towards the promotion, also through subsidised conditions, of new financial instruments and products, such as Green Loan, Sustainability Linked Loan and Social Loan designed to support companies in the path of sustainable transition.
[S4-4 DP 31d]
The Group has in-house structures dedicated to monitoring the procedures adopted in order to assess their regulatory and strategic compliance, making use, where necessary, of consultants who are experts in the sector being analysed.
Specifically concerning the definition and introduction of new products and services:
•the Compliance Department ensures the control of the risk of non-compliance, for example, by assessing the adequacy of the safeguards with respect to the applicable regulations or by verifying the compliance of the advertising messages envisaged. In addition, following the introduction of new products and services, the Compliance Department requires the provision of appropriate training courses for the organisational units impacted by the new banking products and services (e.g., on the risks inherent in the new product and how to mitigate them);
•the Anti-Money Laundering Department helps evaluate the risk that the new initiative could pose to the Bank concerning the potential for it to become involved in money-laundering and terrorist financing as a result of the new product, with particular attention paid to the remote onboarding of the customer.
[S4-4 DP 30,31a,32a,b,c]
In order to respond to negative impacts that may affect customers, specific processes have been implemented to constantly evaluate and improve their experience.
These include direct surveys conducted to customers registered on myIfis to assess their satisfaction. In addition, the physical network of sales representatives, sales support and managers maintains continuous contact with customers, monitoring their degree of satisfaction in order to optimise the service provided and take corrective action if necessary.
In the case of communications perceived as ineffective, the communications team is involved by the business functions to make them clearer and more understandable, ensuring better interaction with customers.
[S4-4 DP 34]
During 2025, the Group concluded the project started in 2024, for the makeover of its corporate websites with the aim of improving accessibility for people with physical and cognitive disabilities, whether permanent or temporary. As far as creditworthiness is concerned, there are currently no differences in the favourable terms of credit lines for different categories of stakeholders.
Social banking Npl
[ESRS 2 MDR-A DP 68a,b,c]
[S4-4 DP 30,31c]
Banca Ifis's social agenda and its focus on the needs of individuals and businesses is also reflected in the adoption, by the Npl business, of a sustainable collection model, whose ultimate goal is the financial re-inclusion of family and corporate customers. In addition, as part of this project, the bank paid attention to particular categories of debtor customers considered to be “in difficulty”, with initiatives of psychological support and re-employment offered in partnership with specialised organisations.
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Banca Ifis Group is one of the leading specialized operators in the Italian non-performing loan sector and the market leader in the unsecured small ticket segment, operating through two companie:
•Ifis Npl Investing: originates and submits for evaluation and due diligence investment opportunities in non-performing loans also in the form of fund shares and securitisation notes. As investor and owner of the debt portfolio, it defines recovery strategies and monitors recovery performance on a case-by-case basis. Ifis Npl Investing is a full subsidiary of Banca Ifis;
•Ifis Npl Servicing: a company that manages portfolios of non-performing loans owned by Ifis Npl Investing and portfolios of Npl on behalf of third parties, implements the most appropriate recovery strategies in coordination with its principals and with the aim of defining sustainable solutions with the debtor clients. Ifis Npl Servicing is a full subsidiary of Ifis Npl Investing.
Over the years, a virtuous model has been defined, in which every action is also evaluated considering the impact it can have on the community and the context in which the Group operates. Thanks to the definition of a collection model centred on customer assistance and which favours amicable agreements, the Group is committed to fostering a concrete path to the financial re-inclusion of debtors through a management characterised by: the customisation of repayment plans, multi-year and with sustainable monthly instalments, open dialogue with debtors and respect for the counterparty's preferences in terms of contact times and channels, investment in corporate structures (contact centre) and technological equipment to offer flexibility over time for the debtor.
The Group companies operating in the Npl Segment focus on assessing whether the receivables can be recovered and preparing settlement plans compatible with the specific debt situation by adopting several mechanisms throughout the various loan acquisition stages, i.e.:
•a first control, aiming to verify whether the loans being acquired can be recovered, so as to exclude non-existing or time-barred receivables and prevent the risk of non-payment as well as the reputational risk that trying to collect bad loans would entail;
•the implementation of welcome calls aimed at ensuring the quality of the service dedicated to debtor clients and the effectiveness of the sustainability of the negotiated agreements;
•the definition of repayment plans suited to the customer's finances and tailored to each individual case;
•the assessment of the customer's actual return potential with a deliberation process focused on understanding the customer's overall situation.
Identification of Banca Ifis’s operating Segments is consistent with the methods adopted by the Management to take operative decisions and is based on internal reporting, used in order to allocate the resources to the various segments and analyse the relevant performance.
In the course of 2025, the project was continued to further develop the Bank's sustainable debt collection model and approach, in order to materialise its recovery action as an opportunity for financial re-inclusion, consistent with the “double bottom line” approach inspired by the Chairmanship, and with the utmost attention to sustainability. In particular, the project was further consolidated and evolved, divided into several project sites, each with a specific purpose. The results achieved during the year are manifold and involve several areas:
•the enhancement of the Pagachiaro Portal, a digital platform available to debtor customers through which, following digital onboarding, they can receive all relevant information about their position and subscribe to pre-approved proposals, as well as share feedback on the Group's operations. In addition, the following features will be activated from 2026:
–signing of proposals defined with the out-of-court network;
–registration through alternative modes (i.e. SPID and CIE);
–autonomous definition of a recovery plan (within predefined limits);
–settlement of instalments at the end of the repayment plan or rescheduling thereof;
•the implementation of specific communication initiatives to encourage the use of the Pagachiaro portal;
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•the introduction of psychological support models and support in reintegration into the world of work in cooperation with specialised external partners , in order to support the social and financial reintegration of debtor clients, with the first vouchers for the activation of support initiatives for those in difficulty having been issued;
•the rolling outsourcing of positions to dedicated out-of-court and judicial networks, with the aim of encouraging amicable settlements of cases under judicial processing, increasing out-of-court settlements in the judicial basin.
The Banca Ifis Group's amicable collection model is based on a collection network that adheres to behavioural standards based on principles of fairness, loyalty and consistency, in line with the Group's Code of Ethics and the Unirec Code.
The quality of portfolio management procedures is monitored with more than 60 thousand telephone calls per year to verify customer satisfaction, both in terms of relationship management and satisfaction with the defined return solution.
The Ifis Npl amicable collection network consists of:
•Internal Call Centre: made up of Ifis Npl Servicing employees who provide management and support through dedicated channels (e.g. toll-free number, Pagachiaro portal, e-mail);
•Agent network (Agents pursuant to Art. 115 of the Consolidated Act on Public Safety Laws and Agents in financial activities) operating extensively throughout Italy;
•Collection partner companies of Ifis Npl specialising in out-of-court activities.
Operating practices are formalised in internal rules and regulations to ensure transparency, integrity and added value to the debt collection process. The adopted organisational model and internal regulations were defined, in compliance with current legislation and the relevant principles of conduct.
In the selection phase of agents and recovery companies, structured checks are carried out to assess their suitability and reliability, including checks on professional registers, investigations into good standing requirements, asset and company analyses, and assessment of operational practices.
The creation of a Network of professionals at the debtor customer's service enables real support nationally, in full respect of the Group's values. Several precautions are taken to ensure the integrity of the behaviour of debt collection Agents and companies, including:
•the obligation to comply with the Code of Ethics and the Organisation, Management and Control Model pursuant to Italian Legislative Decree no. 231/2001, at the time of stipulating the contract;
•control over the number of mandates: pursuant to Art. 128 quater, paragraph 4 of the Consolidated Law on Banking, the financial Agent may perform activities based on the mandate of a single intermediary or several intermediaries belonging to the same Group. In certain cases, the Agent may take on two additional mandates provided that they are for different products from those already in place;
•the presence of a continuous monitoring system through contact with debtor customers and the verification of specific qualitative and quantitative indicators;
•continuous training and coaching both in the start-up phase and during the course of the activity;
•observation of the “Code of Conduct” drafted by the Unirec forum.
In order to strengthen the Network's work in line with the Group’s values, special internal regulations have been prepared that recall the ethical-behavioural principles, with a focus on the sustainability of the collection action on which special training is provided.
[S4-4 DP 31d]
All the professionals in the Network are specially selected on the basis of suitability and reliability criteria, trained and constantly supported and monitored over time, including through specific indicators.
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Ifis Npl Servicing adopts various monitoring methods in order to verify the Network's behaviour and performance in the Npl area, including 'welcome calls', aimed at ensuring the quality of service dedicated to debtor customers and the effectiveness of the sustainability of negotiated agreements. There is also a continuous listening to the problems and needs expressed by the network operators through specially organised meetings. Any anomalies and behaviour that does not comply with the guidelines provided by the Parent Company are promptly reported to the function responsible for managing operational and reputational risks.
In addition, with a view to further improving processes from an ethical-sustainable perspective and developing a market model to support financial re-inclusion, the following initiatives were taken:
•integration and deepening of ESG topics in training for internal and external resources with a focus on recovery strategies on fragile subjects;
•remodelling of monitored indicators by increasing the specific weight of ESG KPIs focused on recovery activity and sustainability of collection;
•renewal of incentives to the most virtuous recoverers from an ESG perspective and provision of incentives related to the enhancement of the Pagachiaro portal onboarding;
•strengthening and expansion of the Welcome Call activity also through external Call Centres;
•enhancement of self-collection tools (Pagachiaro portal) for debtor customers.
The Banca Ifis Group's control functions carry out checks on the external Ifis Npl Network (Collection Companies, Agents pursuant to Art. 115 of the Consolidated Act on Public Safety Laws and Agents in Financial Activities) regarding compliance with the laws and regulations as well as the procedures shared when the mandate was signed, in order to prevent any operational, legal and reputational risks associated with the credit brokerage activities carried out by parties outside the Group.
Ifis Npl Servicing also constantly monitors the external network through quantitative and qualitative KPIs. These KPIs are monitored monthly and, if applicable, a dialogue is activated with agents and debt collection companies to launch any corrective actions. In addition to the regular inspections run at the collection Companies and Agents, specific inspections may be held or questionnaires submitted with a view to verifying various aspects, including the adequacy of the collection processes adopted in respect of the market best practices.
On the basis of the above-mentioned monitoring activities, an overall assessment of the collectors is drawn up and, depending on the results, appropriate actions are identified. When faced with risk events, the internal structures duly inform the control organisation units and, in particular, the Risk Management function, as responsible for handling operational risks. In the event of repeated low quality in work performed or misconduct, penalties are applied, culminating in the termination of the cooperation relationship in the most serious cases.
Customer financial education
[ESRS 2 MDR-A DP 68a,b,c]
[S4-4 DP 30,31c,d, DP 33b]
Banca Ifis considers it fundamental to train young people and adults on financial education issues, promoting concrete initiatives aimed at supporting customers in making conscious choices about spending, investing and saving. This initiative is part of the Group's broader commitment to sustainability, which is perfectly integrated within the Group's way of banking, with the aim of creating value for society, people and communities. Contributing to customers' financial education, in fact, is an opportunity to promote financial awareness and responsibility among consumers, fostering long-term financial well-being. In a parallel fashion, the promotion of effective financial education initiatives represents an opportunity to improve corporate reputation.
Among the various concrete initiatives undertaken by the Group, in 2025 Banca Ifis will once again join FEduF, the 'Fondazione per l'Educazione Finanziaria e al Risparmio' (Foundation for Financial and Savings Education), set up on the initiative of the Italian Banking Association (ABI), which aims to develop and disseminate financial and
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economic knowledge within the broader concept of Education for Conscious and Active Economic Citizenship. The Group's journey to promote these values began in 2023 with the awarding of scholarships from the 'Outstanding School Students' project, an initiative of FEduF, the Savings Museum, ABI and Confindustria in cooperation with the Ministry of Education, to be handed out to high school students who excel in various fields. In 2025, there was also a partnership for the 'Al Bar Sport' project, promoted by Unitelma Sapienza in collaboration with FEduF, which aims to promote financial education and sustainability among young sportsmen and sportswomen by involving athletes, sports federations, institutions, companies and schools.
As early as 2024, on the other hand, a specific project strand on financial education for adults was started within the 'Social Banking' project on Npl business. Specifically, with the aim of raising awareness among Npl debtor customers on financial education issues, 10 video-pillows were developed and made available on generic financial education topics and on specific topics related to the debt collection process. The video pills were developed in cooperation with FEduF and the Unirec consumer forum and uploaded on the Pagachiaro portal.
In the course of 2025, content was transferred from the Pagachiaro portal to the Open Learning platform developed in collaboration with Digit'Ed, which aims not only to deliver internal training to the Group's employees, but also to extend it to all the main external stakeholders with whom the Bank interacts.
In order to assess the effectiveness of the above-mentioned financial education initiatives, the Bank has implemented a periodic monitoring of the enjoyment and use of the video-pills, using specific indicators to measure these elements.
3.4.4 Responsible marketing practices
Banca Ifis recognises the importance of ensuring customer satisfaction by offering customised solutions and handling complaints quickly and effectively. The Bank is committed to avoiding unfair marketing practices, promoting clear and transparent communication and ensuring high standards of integrity.
[S4.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon
Responsible marketing practices / Non-discrimination
Improvement in customer satisfaction levels due to the provision of tailor-made products/services and/or the failure to deal with complaints in a timely and effective manner | Actual positive impact | Downstream value chain | Medium-term
Engaging in unfair marketing practices, non-transparent, deceptive or aggressive communication, including greenwashing or social washing with respect to products offered | Potential negative impact | Value chain | Medium-term
Reputational risk due to failure to respect customers' interests, unfair market practices and lack of codes of conduct (including debt collection activities) | Risk | Downstream value chain | Medium-term
Compliance risk linked to non-compliance with regulatory requirements on market integrity, fairness, transparency and prevention of market abuse | Risk | Own operations Downstream value chain | Medium-term

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IRO description | IRO category | Connection with value chain | Time horizon
Improving customer relations and retention through clear and transparent communication | Opportunity | Value chain | Medium-term

Group approach and policies
[S4-1 DP 15]
Within its policy system (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview), the Banca Ifis Group emphasises its commitment to operate in a socially responsible and inclusive manner, with a focus on consumers and end-users of its products and services. In this context, the Group's Code of Ethics and ESG Policy define the guiding principles that guide all business activities, promoting behaviour based on fairness, non-discrimination and mutual respect. In support of these principles, the Group adopts a Group Policy for the approval of new products and services, the launch of new activities, and entry into new markets, which governs the design, distribution and monitoring of products in a structured manner, ensuring their consistency with customer interests.
At the same time, the Organisational Procedure for Transparency in Banking and Financial Transactions and Services sets out the main regulatory requirements and operating procedures through which Group companies guarantee clear, complete and quality information to customers, strengthening the trust and awareness of their stakeholders. In addition, the illimity Group has a Complaints Management Policy (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview), which governs the processes for receiving and dealing with customer complaints, ensuring timely and punctual responses and fostering the continuous improvement of service quality and business relations.
Actions
[ESRS 2 MDR-A DP 68a,b,c]
Respect for customers' interests and transparent management of their relationship with the bank are central topics for Banca Ifis. The latter strives to mitigate the risks arising from non-compliance with these interests and the absence of codes of conduct, while ensuring full compliance with regulatory requirements on market integrity, fairness and transparency, as well as in the prevention of abuse. A fundamental aspect of the Group's strategy is the constant improvement of customer relations, promoting quality communication, and ensuring the absence of discrimination at every stage of the relationship.
To this end, Banca Ifis endeavours to introduce concrete measures to protect customers, preventing potential negative effects from unfair, deceptive or aggressive business practices, including greenwashing or social washing related to the products offered.
[S4-4 DP 30,33a]
Starting 2024, the Bank addressed the need to adapt to regulatory and market developments in the ESG sphere by defining an ESG-enhanced credit framework based on customer assessment through an ESG score. To this end, it modified the existing underwriting processes and introduced new IT tools, such as:
•administration of an ESG questionnaire to counterparties and use of the ESG Score;
•updating of credit policies and integration of the current credit framework with a strengthening of the steering from an ESG perspective;
•modification of the proxy engine with the integration of a strengthened underwriting process from an ESG perspective;
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•establishment of a technical team of ESG experts for underwriting advice.
The Group has established ESG standards that the Bank must adhere to in relation to the end customer; these are continuously monitored internally in order to assess the application and regulatory compliance of these procedures.
At the same time, in order to ensure market practices aligned with customer interests and compliant with regulatory requirements, the Group has adopted a specific Group Policy for the approval of new products and services, the launch of new activities, and entry into new markets.
The Policy described above establishes guidelines for the development, distribution and monitoring of products, ensuring that, when setting up a new product, the following are considered:
•the interests, objectives and characteristics of customers;
•the inherent risks of products that could be detrimental to customers;
•possible conflicts of interest, to ensure that they are controlled and, where possible, limited.
[S4-4 DP 34]
The correct marketing of the Group's products also takes place through a sales network that is suitably trained in sustainability regulatory compliance and related risks; where sales are conducted through digital channels, customer dialogue is also developed in accordance with sustainability regulatory principles. In addition, the Credit Support, ESG & Monitoring function receives continuous training to adapt to regulatory developments in the ESG area and to integrate the Group's strategy on these issues into its work.
[S4-4 DP 30,31a,32a,b,c,33b]
At the same time, the Group provides special safeguards to ensure the fairness and transparency of communications. In particular, an organisational procedure has been adopted for the management of marketing communications to customers that governs the macro-process adopted, placing the utmost importance on the decision-making flow, the methods for selecting the target customers to be reached, the privacy and transparency safeguards, the controls envisaged in each activity and the relevant players involved. In defining the target market, specific exclusions are considered, which may be determined by various factors, such as, but not limited to, the presence of complaints, litigation and particular customer requests. For the purposes of completeness and appropriateness of process, the Compliance department and, for data processing aspects, the Privacy structures are involved.
The illimity Group is also committed to transparent communications, avoiding practices that could compromise its corporate reputation or undermine the trust of its various stakeholders. To this end, illimity verifies and monitors, through its communication and marketing and compliance functions, compliance with consumer protection requirements in advertisements and all commercial communications, preventing unfair commercial behaviour.
[S4-4 DP 30,31c,d]
Finally, the Banca Ifis Group aims to improve customer satisfaction through the timely and effective handling of complaints. More specifically, the goal of the complaints handling process is to handle in an appropriate and timely manner any grievance received from customers unsatisfied with the products and services provided or offered, taking corrective and preventive actions to prevent any problem from recurring in the future. These actions can consist in specific initiatives addressing the individual complaint or the implementation of general solutions to address the causes underlying the individual complaint or multiple complaints concerning the same area. In this regard, all staff involved in the handling of complaints have received specific directives regarding the advisability of facilitating the search for a personalised solution aimed at the granting of support measures on a voluntary basis by the institution. In addition, again with a view to helping customers resolve problems linked to access to credit, particular importance is given in the training process for staff responsible for handling complaints and in the complaint management process to the issue of reporting to credit databases (Central Risk Office and
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private databases). On this front, the Group Claims function has developed specialist skills that make it a point of reference, together with the Supervisory Reporting Service, for the other corporate functions.
Resources allocated to manage impacts, risks and opportunities
[S4-4 DP 37]
In the area of consumer and end-user management, the Banca Ifis Group involves different business functions, adopting a holistic and efficient approach to address and manage the impacts generated. In particular:
•Privacy & Security and Security Operation are responsible for the analysis, evaluation and resolution of events that qualify as security incidents;
•Innovation & Business Development, in cooperation with Brand, Corporate Communications & Sustainability and Digital Innovation & Advertising, aims to constantly innovate portals, offering customers increasingly intuitive, simple and understandable solutions. It also identifies opportunities for improvement arising from the market and business;
•Npl deals with the financial re-inclusion of households through the management and restructuring of impaired loans. Through targeted solutions, it helps restore economic stability and facilitates new access to credit, thus contributing to a fairer and more inclusive financial system;
•Communications, Marketing, Public Affairs & Sustainability, together with the Human Resources Department, Ifis Npl Servicing and Ifis Npl Investing for financial education initiatives towards customers;
•Strategic Marketing & Research, in cooperation with strategic partners, conducts in-depth research and analysis on group customers, integrating ESG factors to ensure a responsible and sustainable approach.
[S4-4 DP 35]
The policies and actions adopted reflect Banca Ifis's focus on fair, ethical and sustainable management of customer relations, including the prevention of human rights violations. In particular, the control system did not record any reports or cases of threats against customers.
In 2025, in the context of managing the privacy of its customers, the Banca Ifis Group registered a complaint submitted by a customer to the Italian Data Protection Authority regarding alleged privacy violations. After examining the defences provided, the Authority concluded its investigation by ordering the complaint to be closed. In addition to the aforementioned complaint, during the year the Group handled 54 instances of the exercise of data subject rights recognised by the GDPR under Articles 15 to 22, as well as 98 incidents involving the loss, access or unauthorised disclosure of personal data. Most of these events are related to the loss or theft of company devices, the incorrect sending of documentation by regular mail or e-mail, and the loss or theft of paper documentation. No incident required communication to the Supervisory Authority or the persons concerned.
In addition, the Banca Ifis Group handled complaints lodged with the intermediary for breach of privacy, detecting three violations in the area of sending communications to customers and the use of contact details not expressly authorised.
3.4.5 Engagement processes
[S4-2 DP 20a]
The Banca Ifis Group has implemented various different tools to receive feedback and grievances from key stakeholders, including employees, collaborators and professionals that work with the Group on a regular basis, as well as through complaints from customers or debtors.
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[S4-2 DP 20,b]
Although there is no specific time for direct stakeholder engagement, the network of sales, management and sales support maintains continuous contact with customers, constantly gathering their feedback to improve the offer.
In the Npl context, the periodic involvement of debtors is an indispensable element for the definition of a sustainable agreement aimed at their financial reinclusion. Communication takes place through direct contact or through appropriately delegated professionals, based on the actual availability of customer-debtors.
Consistently, the illimity Group adopts marketing controls, centralised in the Parent company Banca Ifis, and its own development, management and customer care activities to improve customer satisfaction and encourage the attraction of new customers. In particular, experienced contact centre personnel are available to assist and support customers, from the onboarding phase to the operational management of services, via telephone appointments, chat and e-mail. In addition, illimity adopts tools to monitor its reputation profile, such as sentiment analysis indicators, and promptly handle any complaints received through the specially established Complaints Department.
[S4-2 DP 20c]
These mechanisms help management identify potential inefficiencies, anomalies or issues concerning business processes. Therefore, along with the controls, they are key tools with which to evaluate the effectiveness of the management approach to the various topics.
[S4-2 DP 20d]
In order to assess its relationship with customers and the level of engagement, the Banca Ifis Group carries out surveys to collect feedback on the platforms available to customers. These include surveys conducted among users registered on myIfis to measure their level of satisfaction. In addition, through the administration of Welcome Calls in the Npl area, Banca Ifis monitors customer satisfaction with respect to the agreement defined and the behaviour of the appointed recovery agent, as well as the effectiveness of the engagement.
[S4-2 DP 21]
The measures taken by the Bank to better understand the views of consumers and end-users, particularly those who may be vulnerable to impacts or marginalised, are based on an integrated approach involving several internal structures. The Bank employs corporate and communication functions to ensure that information is transparent, effective and understandable. Controlling structures, such as Compliance, deal with regulatory aspects and transparency, while the Marketing & Business Strategy and Communications, Marketing, Public Affairs & Sustainability Departments seek to make these easily understandable for all customers. Through survey and feedback-gathering activities, the Bank strives to continuously improve its digital platforms in order to optimise the customer experience and the accessibility of its services. For customers in disadvantaged situations, like those in difficult due to the digital divide, the Bank offers telephone and physical support, promoting inclusion. In addition, it promotes local initiatives for SMEs and local realities, contributing to the dissemination of managerial culture and raising awareness on issues related to innovation and digitalisation.
As mentioned above, in the event of the presence of vulnerable persons or persons in difficulty, a pathway of psychological support and re-placement in the world of work is evaluated.
3.4.6 Channels
[S4-3 DP 25a,b,c,d]
In terms of internal governance and processes, the Group Claims Department plays a strategic role in claims management, working to mitigate the negative impact on customers resulting from negligence, inefficiency or errors in business processes. In addition to ensuring the appropriate handling of individual cases and the adoption
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of corrective measures, the function deals with the identification of critical issues of a systemic nature, which can potentially be replicated on a broader customer base.
To ensure a structured approach, the Group Claims Department uses an advanced IT system that associates each claim with a potential operational risk report. This tool makes it possible to analyse the level of risk and the possible impact on a significant portion of customers, triggering remediation actions on a larger scale where necessary. Such a tool ensures direct alignment with the Risk Management function, facilitating continuous improvement of internal processes and enabling effective monitoring of anomalies as well as integrated operational risk management. This approach makes it possible to prevent and correct recurring malfunctions, ensuring greater customer protection and an overall improvement in service quality.
In addition, on a six-monthly basis, the Group Claims Department processes statistical data on claims and other types of out-of-court disputes handled and draws up a summary report presenting the situation for the six-month period of reference for each individual company. The report also contains additional activities carried out by the Group Claims Department during the reporting period, such as training activities, inspections, and similar.
Finally, the Compliance Department periodically monitors the reports registered by the Group Claims Department through the complaints register, in order to ensure a systematic check on the effectiveness of the resolution of reported issues. This mechanism makes it possible not only to assess the work of the Group Claims Department, but also to identify any critical issues that might require the Compliance Department to take corrective or preventive measures. This approach ensures a continuous improvement of the complaint handling system and a more timely identification and resolution of structural anomalies.
At the same time, the Privacy & Security Department is responsible for handling reports of any incidents, using problem management activities aimed at identifying the underlying causes of anomalies and assessing their impact. As part of this process, the department systematically analyses and classifies the problems encountered, carrying out a quarterly in-depth screening of critical issues, organised by cluster. This approach allows corrective solutions to be identified and implemented at process level, e.g. by revising or optimising company procedures, with the aim of preventing the recurrence of anomalies and ensuring continuous improvement in the management of privacy and information security.
The Banca Ifis Group has set up various channels for the collection of complaints, which are accessible via the corporate website in the Complaints and Transparency sections, in pre-contractual disclosures and in contracts. In particular, customers can submit reports via:
•the Complaints form accessible from the Complaints section of the Banca Ifis Group's corporate website;
•Certified Electronic Mail reclami.pec@bancaifis.legalmail.it;
•E-mail reclami@bancaifis.it;
•Registered letter sent to Via Terraglio 63, 30174 Venezia-Mestre;
•Fax to +39 0415027577.
Documents explaining how to file a complaint, the expected response time and the customer-triggered procedures for arbitration in the event of an unsatisfactory response are available on the company website.
In particular, with regard to the right to privacy, a specific e-mail reference privacy@bancaifis.it has been set up. For any queries on the processing of their personal data or to express concerns, customers have the possibility to contact the Group Data Protection Officer (DPO) at rpd@bancaifis.it, alternatively they can write to privacy@bancaifis.it.
Customers also have at their disposal the Pagachiaro portal, a simple and free digital platform offered by Ifis Npl, designed to help debtors manage their financial situation on-line and return to profitability in a sustainable way. Through Pagachiaro, it is possible to make payments, download payment slips to be used at the post office or in Mooney ticket offices and apps, monitor repayment plans and consult related documentation. With these
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functionalities, Pagachiaro is a useful and transparent tool for managing debt positions with Ifis Npl, providing customers with a simple and effective digital experience.
Data on the quality of cooperation with Group Claims is forwarded to the Risk Management function for continuous monitoring, in order to identify any critical issues and activate corrective measures when necessary. At the same time, information on operators' behaviour towards customers is included in specific reports, intended for both the control functions and the Business Units and Governance Bodies.
Responses to complaints, in any case, provide clear and transparent details: if the complaint is judged to be well-founded, the actions that the Group undertakes to take in favour of the customer are specified, with a time-frame for their implementation. If, on the other hand, the complaint is deemed unfounded, a full explanation of the reasons for the rejection is provided, together with information on the options of bank arbitration with the competent body or other modes of out-of-court dispute resolution.
The information collected is included in half-yearly reports that, as mentioned, are sent by the Group Claims Manager to the Corporate Affairs Department and presented to the Group's Boards of Directors, highlighting claims data, main reasons and legal and reputational impacts.
Otherwise, reports and requests from data subjects, on the privacy side, are handled by a dedicated structure, adequately trained and instructed to handle such cases appropriately.
The management process is supported by an IT system that tracks each step, ensuring that deadlines are met and documents are retained. In relation to privacy, the channels provided are also indicated in the information notices that are provided to all interested parties at the time of their first contact with a Group company.
[S4-3 DP 25a,b,c,d,26]
At the same time, illimity adopted the Complaints Management Policy to define methods and responsibilities to ensure timely responses, resolution of critical issues and protection of the quality of customer relations. In particular, customers can submit complaints via various channels such as mail, e-mail, certified e-mail and digital forms on the illimity website and app.
The availability of these channels is communicated in the contractual documentation and in the Complaints section of the website, where the out-of-court settlement of disputes is also explained. Consistent with its focus on customer protection, illimity has also adopted a Privacy Policy that defines principles, roles and processes for processing personal data in compliance with the criteria of lawfulness, fairness and transparency.
Reports, including any specific concerns or needs, are entrusted to the Complaints Department, which tracks them, provides feedback to customers and analyses recurring issues, helping to identify possible improvements. The system provides for continuous monitoring, the maintenance of a complaints register, the preparation of an annual report to the Board of Directors and periodic audits by the Internal Audit function of illimity on the effectiveness of the process.
[S4-3 DP 25a,b,c,d]
In order to remedy any situations of digital divide due to the progressive digitisation of the Bank's processes, the Banca Ifis Group is committed to improving the accessibility of its portals, making them accessible to people with disabilities.
The Group is committed to meeting the needs of its various stakeholders in accordance with its policies and Code of Ethics, based on principles such as dignity, fairness, equal opportunities and inclusion.
To counteract unfair marketing practices, opaque, misleading or aggressive communication, including greenwashing or social washing with respect to the products offered, customer communications are approved by control structures (such as Privacy and Compliance). In addition, customers have dedicated tools at their disposal to report any irregularities, accompanied by a listening approach by the Bank through the figures who interact most with customers, such as branches, agents and dealers, who can offer support in the process.
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[S4-3 DP 26]
The Banca Ifis Group informs its stakeholders of the possibility of using its systems to report any irregularities, thanks to structured and easily accessible procedures. In particular, the person in charge of the internal reporting system provides clear information on the channel, procedures and prerequisites for making internal and external reports, and ensures that such information is easily accessible by publishing it in a dedicated section of the institutional websites of the Group companies that have it and on the corporate intranet, as well as for the mechanisms available on privacy and whistleblowing.
In addition, clients can refer to the support of the Group Claims and Privacy & Security Departments, both of which are third party and impartial, which ensure that rights are respected and that the necessary actions are taken in response to the reports submitted, ensuring that negative impacts are addressed. Subsequently, the Group Claims and Privacy & Security Departments, each within the scope of their competences, supervise the fulfilment of the corrective measures taken to protect customers.
[S4-3 DP 26]
The reporting system, which is made known and available through publication on the Banca Ifis Group's website, guarantees the safeguards of confidentiality, data processing and retaliation. With reference to the protection of whistleblowers, as defined in the Whistleblowing Policy, Banca Ifis has put in place specific procedures aimed at ensuring the protection of individuals from any form of retaliation when they use these processes to report irregularities. The pre-contractual and contractual documentation provided to customers also indicates how to express concerns and receive assistance from the Bank. For more details on policies to protect individuals from retaliation when using such procedures, see the Governance section.
3.4.7 Targets
[ESRS 2 MDR-T DP 72,81,a,b,bii]
[S4-5 DP 41,a,b,c]
By implementing the actions described, the Banca Ifis Group proactively manages the impacts, risks and opportunities related to its customers, promoting a relationship based on transparency, accessibility, innovation and mutual trust.
Consequently, no specific targets have been set for customers and end consumers at present, nor have any monitoring processes been implemented or areas for improvement identified.
In the coming years, the Bank will consider setting specific targets on this topic, taking into account the strategic priorities and the needs of the operating environment, also in view of the future Business Plan to be presented to the market.
By contrast, the illimity Group has set targets in its Sustainability Plan 2023-2025 that focus on the development of the sustainable finance product offering and framework; the development of ESG advisory services to SMEs; and the growth of sustainable finance volumes to be achieved by 2025.
Their definition and implementation involved, over the three-year period, the Bank's main business and control functions, through discussions aimed at identifying priorities and operational actions to achieve the targets. The targets were developed taking into account qualitative and quantitative elements, including the Bank of Italy's 'Supervisory Expectations on Climate and Environmental Risks', market trends in sustainable finance and green investments, and assessments by leading ESG rating agencies.
Implementation, monitoring and reporting were coordinated by the Sustainability function of illimity in cooperation with the relevant structures, with regular reporting to the Board of Directors. The monitoring carried out over the three-year period also made it possible to identify some areas for improvement, in particular the strengthening of customer satisfaction, through tools for listening to and analysing the needs of customers, and support for SMEs
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through the offer of investment and financing products to facilitate access to credit and the adoption of social and environmental impact practices.

Scope | Targets realised by 2025(1) | Target status
Green finance and sustainable finance | Development of the offer and framework of sustainable finance products (green / sustainability-linked) | Objective realised
Development of ESG support / advisory services to SMEs | Objective realised
Achievement of 15% 2023-2025 cumulative origination volumes (disbursed/invested) for sustainable finance (Sustainability-linked loans, Green Loans/Investments, Taxonomy-eligible) | Target partially achieved (with a value of 13%)

(1) The targets, referring to the three-year period 2023- 2025 with a base year of 2022 and a deadline set by the Board of Directors on 31 December 2025, do not include a base value.
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4. Governance
4.1 G1 – Business conduct
4.1.1 Corporate culture and the protection of whistleblowers
[G1-1 DP 9]
Fairness, professional ethics and the dissemination of corporate culture and values are the foundations that define the Group's integrity. Promoting virtuous conduct means not only ensuring the quality of credit, but also preventing corruption, strengthening a working environment based on transparency and mutual trust. The responsibility for the ethical principles that guide the Group's actions is also reflected in the attention paid to the protection of whistleblowers.
[G1.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon
Corporate culture and the protection of whistleblowers
Dissemination of a culture of fairness and ethics among employees | Actual positive impact | Own operations | Medium-term
Adoption of a structured governance model that includes internal sustainability committees that define strategic guidelines for the promotion of initiatives supporting corporate culture | Opportunity | Own operations | Medium-term
Strengthening the corporate reputation by taking measures to protect whistleblowers, highlighting the Bank's transparency and sense of responsibility | Opportunity | Own operations | Medium-term

Group approach and policies
[G1-1 DP 7]
As part of its commitment to ethical and transparent business conduct, the Banca Ifis Group has developed an articulated system of governance policies and tools aimed at promoting integrity, legality and accountability in every sphere of operations (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview).
Among these, the Group's Code of Ethics represents the fundamental reference for all those who work with or for the Bank, outlining the guiding values of fairness, professionalism, collaboration, inclusiveness and protection of people. It guides behaviour, processes and relations with stakeholders, supporting the creation of sustainable value and the development of a transparent and respectful working environment. In addition, the Organisational, Management and Control Model as per Italian Legislative Decree no. 231/2001 promotes a culture of legality within the company, preventing the commission of offences related to company activities. The system provides for binding rules of conduct and organisational measures for all recipients of the Model, accompanied by monitoring by the Supervisory Board, in cooperation with the internal control functions. In this context, the Whistleblowing Policy further reinforces the commitment to transparency and regulatory compliance by setting out principles and modalities to ensure the protection of whistleblowers. It governs the processes for receiving and handling reports, the flow of information, the responsibilities of the persons involved and communications to corporate bodies, promoting a culture based on integrity and legality.
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Consistent with these principles, the Sensitive Sectors Policy constitutes a further tool to steer the Group's banking activities towards responsible choices, limiting exposure to sectors with potential sustainability risks. Similarly, the Group Anti-Money Laundering Policy defines principles aimed at preventing money laundering and terrorist financing, ensuring effective controls and cooperation with the competent authorities.
Finally, the illimity Group addresses responsible investment through the adoption of the ESG Investment Policy (see Other sustainability information, section 5.3 Minimum disclosure requirements: MDR-P Policy overview), which integrates ESG criteria into analysis and investment decisions, reducing exposure to issuers not aligned with the Group's principles and objectives.
Management of reports: the Whistleblowing System
[ESRS 2 MDR-A DP 68a,b,c]
[G1-1 DP 7, 10a]
In order to promote a corporate culture of ethics and compliance, the Banca Ifis Group has set up a structured whistleblowing system governed by formalised procedures. The system is accessible not only to internal stakeholders, such as shareholders, directors and employees employed on a subordinate basis (on a permanent, fixed-term or apprenticeship basis), but also to external stakeholders, such as self-employed workers, collaborators, suppliers, consultants, trainees and volunteers, including those whose relationship with the Group has not yet started or has already ended.
The system makes it possible to report acts, facts or omissions constituting violations of the law or internal procedures of Group companies, while at the same time ensuring adequate protection for whistleblowers, consistent with the Bank's commitment to transparency and corporate responsibility.
[G1-1 DP 10c,ci]
The Banca Ifis Group Whistleblowing system consists of the following channels:
•a dedicated application, accessible via the intranet or institutional websites, which allows for anonymous reporting. The system provides for the opening of a confidential 'Inbox' in order to be contacted if necessary in order to process the report. Each report also generates a notice sent to the dedicated e-mail address, accessible only to the Head of Internal Audit;
•a voice messaging system available within the application, which sends an alert to the same confidential e-mail address accessible to the Head of Internal Audit;
•an internal or external mail service, allowing written reports to be sent in a sealed envelope, addressed to the Head of Internal Audit, marked 'strictly confidential';
•a direct report to the Head of Internal Audit, by contacting a dedicated telephone number.
The Head of the internal reporting system, as required by the relevant legislation, provides clear information on the channels, procedures and requirements for submitting internal and external reports. In particular, in the presence of the conditions laid down in Italian Legislative Decree no. 24/2023, such as inactivity of the internal channel, well-founded risk of retaliation or imminent danger to the interest, are also provided for:
•external reporting to the National Anti-Corruption Authority (ANAC);
•public dissemination through the press or electronic media or otherwise through means of dissemination capable of reaching a large number of people.
[G1-1 DP 10cii]
Privacy is guaranteed at every stage of the reporting process, protecting the identity of the whistleblower, the reported person and the persons involved, as well as the content and documentation of the report itself, ensuring complete confidentiality with respect to the information received through the report. Privacy obligations are
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balanced against the need for investigations and disciplinary action and, in the case of legal proceedings, identity may only be disclosed where necessary for the purposes of investigations or investigative proceedings.
The whistleblower is protected from retaliation for reasons related to the report, even when the report turns out to be unfounded, unless malicious or grossly negligent. The protection also applies to reports made before the commencement of the employment relationship, during the selection or pre-contractual stages, during the probationary period and after the end of the relationship, if the information was acquired during it. The following are also protected:
•facilitators;
•persons in the same work environment as the Whistleblower and who are linked to them by a stable emotional or family relationship up to the fourth degree;
•employees of the Whistleblower who work in the same work environment as the Whistleblower and who have a regular and current relationship with that person;
•entities owned by the Whistleblower or for which those persons work, as well as entities operating in the same work environment as those persons.
In addition, specific modalities have been defined to ensure the secure management of the dedicated software.
[G1-1 DP 10e]
To manage the reports received through the Whistleblowing system, the Head of Internal Audit constantly monitors the dedicated channels: the e-mail address for notifications of new voice messages or reports on the dedicated application and the incoming paper mail.
Receipt of each report is acknowledged to the Whistleblower within seven working days, using the channel indicated by the Whistleblower; in the event of inadmissibility, this is justified in the communication. The person in charge of the internal reporting channel has a maximum of three months within which to conclude the investigation.
Upon completion of the checks, the Head of Internal Audit formalises his assessments (see 3.1 ESRS S1 - Own Workforce, section 3.1.8 Channels, DP 32a, 32c), which are forwarded to the Chief Executive Officer of the Parent company and, if applicable, to the Supervisory Body (SB) of the Parent company or of the Italian-registered Subsidiary concerned, except in situations of potential incompatibility. The Human Resources Department is involved in order to define any consequential measures.
[G1-1 DP 11]
The reporting management system described above was developed in accordance with Legislative Decree no. 24/2023, which transposes EU Directive 1937/2019 on the protection of whistleblowers who report European and national regulatory violations, ensuring the functioning of reporting channels and the protection of all stakeholders.
Actions
[ESRS 2 MDR-A DP 68a,b,c]
As mentioned above, the Banca Ifis Group is actively dedicated to promoting a culture of fairness and ethics among its employees, fostering positive impacts through the dissemination of corporate principles and values and supporting initiatives aimed at strengthening a solid corporate culture.
To this end, in 2024, the Group strengthened the process of awareness and acceptance of internal regulations, including rules of conduct, rules on the use of company equipment and organisational safeguards to monitor compliance with them. The documents concerned include the Code of Ethics, the Policy for the Prevention of Corruption and the Organisational, Management and Control Models adopted pursuant to Italian Legislative Decree no. 231/2001 of each Group company.
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Full acknowledgement and acceptance of the documents is required whenever they are updated or uploaded to the company intranet. In support of this obligation, a system of reminders and escalation has been put in place which, in the event of non-compliance, provides for the partial blocking of access to the intranet.
Consultation of regulations and participation in training courses, which are compulsory for the entire company population, help to spread responsible behaviour and a shared culture of legality. This approach represents an effective safeguard in the prevention of unlawful conduct and offences related to the company's activities, which could result in liability for the Group or its companies.
This is flanked by internal awareness and communication initiatives through the dissemination and publication of dedicated news items on the company intranet, with the aim of keeping employees up-to-date on regulatory developments, both within the Group and in the broader context. In 2024, particular attention was paid to the contents of the Organisation, Management and Control Model pursuant to Legislative Decree no. 231/2001, and on-line training courses on 'Risk Prevention and Crime Governance'. In 2025, a news item was published on the company intranet announcing developments in the Whistleblowing application, dedicated to the collection of oral reports.
To further strengthen the dissemination of corporate values, the Group organises compulsory courses on the Group's Code of Ethics and on the Administrative Responsibility of Entities pursuant to Italian Legislative Decree no. 231/2001. The Learning & Development Department monitors course participation, sending reminders if necessary to ensure completion of the training.
Similarly, the illimity Group has a mandatory course on the illimity Way, the illimity Code of Ethics, which elaborates on the values and commitment to customers, shareholders, suppliers and business partners, to the Supervisory Authority and the Public Administration as well as to the media and the country, and describes the corporate culture of responsibility, legality, transparency, value creation and respect for the environment promoted by the illimity Group. Training is provided at all levels of the organisation, with a focus on all functions at risk, and is intended for all personnel, with a final knowledge test.
Corporate culture also takes the form of raising awareness among the corporate population on sustainability issues and commitment to these areas, in particular in 2025, several sharing events were organised to promote awareness and participation, including:
•seven on-line and/or in-person events to discuss the regional economic context as part of the Innovation Days project in collaboration with Il Sole 24 Ore;
•study days organised at Villa Fürstenberg in Mestre in collaboration with the Contemporary Creativity Directorate General of the Ministry of Culture with the aim of enhancing the soft power of Made in Italy, discussing the excellence of the Italian restoration sector and stimulating debate around the topic of social commitment intertwined with the world of art and the promotion of cultural activities;
•participation in the Forum Automotive, a project that brings together all the major players in the automotive supply chain (manufacturers, distributors, media) in one day in round-table discussions;
•participation in the “RCS Bike Business Forum”, a B2B event aimed at the entire Italian cycling industry: sports teams, sponsoring companies, bike and component manufacturers;
•participation in the business talk “Sport Industry Talk- L'economia dello Sport” organised by RCS Academy in collaboration with Corriere della Sera and RCS Sport & Events;
•support for the organisation of the Bancor Prize for Economics, set up by the Guido Carli Association for Economic and Political Culture at Palazzo Brancaccio in Rome to celebrate each year a personality of world renown who has distinguished himself or herself in demonstrating that he or she has addressed economic issues with wisdom and integrity.
In order to strengthen the corporate culture on sustainability issues, the illimity Group has had an ESG Ambassador programme since 2021, assigning around one hundred employees a specific organisational role to oversee and promote sustainability issues. It is a structural programme, offering ESG training activities dedicated to specific
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topics, such as ESG risks, in particular in 2025 climate risks, the Group's sustainability profile and commitments, Diversity, Equity & Inclusion and good business conduct practices, as well as internal and external inspirational and cross-cutting sustainability awareness workshops.
The prevention of money laundering risk represents a further fundamental pillar in ensuring the Group's financial soundness, proper corporate culture and corporate reputation, through an active cooperation with the supervisory authorities. The Group refrains from maintaining direct or indirect relations with individuals or companies sanctioned, suspected of belonging to criminal organisations, or involved in illegal activities. In such cases, Group companies promptly initiate activities related to the reporting of suspicious transactions, cooperating fully with the authorities.
These principles are translated into specific procedures and controls in the various business areas, aimed at assigning risk to client counterparts and establishing appropriate approval levels in the corporate hierarchy. In the presence of a high risk, reinforced checks are activated and the authorisation of the Senior Management is requested. In addition, for customers classified as high-risk, stringent and frequent periodic reviews on the monitoring and updating of information are foreseen, with possible decision escalation to the maintenance of existing relationships.
The Group's Anti-Money Laundering (AML) function plays a crucial role in the prevention of money laundering and terrorist financing. Annually, it performs a risk self-assessment for all Group companies, analysing the inherent risk, the vulnerability of implemented controls and the overall residual risk, from which corrective or improvement actions are derived.
AML controls are specific to each business area and integrated into the information systems adopted by the various companies:
•Leasing: automated processes verify check-lists and negative reports, blocking practices with risk elements for enhanced verification, which may also include the involvement of the AML Department;
•Commercial credit and account products: the Cedacri registry procedures verify check-lists and negative reports while the KYC GIANOS process determines the level of money laundering risk by activating any authorisation workflows routed for approval to the appropriate hierarchical levels;
•Cap.Ital.Fin.: in GENIO, screenings are carried out on lists to identify Politically Exposed Persons (PEPs) and persons at risk of terrorism, while the CHELEO procedure calculates the risk level of customer counterparties;
•Banca Credifarma: uses the Fastcheck procedure, integrated in the AMLET customer profiling applications, to identify PEPs or risk subjects;
•Npls (non-performing loans): initial checks on the acquired portfolios and subsequent checks in SICRAT are envisaged during the definition of repayment plans or settlement agreements.
Specific Level I controls are defined within the relevant organisational procedures.
The Parent company's AML Department constantly supervises the effectiveness of the processes through an annual plan of second-level controls, the results of which are shared with the operating units involved and the Boards of Directors of the respective companies. Any shortcomings are managed through the CAR.SCI application, which assigns precise responsibilities and deadlines for action.
The AML Department actively contributes to mandatory anti-money laundering training, with programmes aimed both at employees in contact with customers and at the external network used by Group companies to place products. Training is delivered through classroom courses, both in presence and virtual mode, and through an e-learning module, 'The Anti-Money Laundering Discipline', made available in Adaptive Learning mode on the Ifis Talent platform.
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In the course of the year, specific training sessions were organised for the different Group companies, focusing on the topic of quality in the reporting of suspicious transactions. In particular, 65 sessions were organised for a total of 163 hours of training, involving a total of 1.016 participants.
Further initiatives include:
•the participation of the AML function in the training sessions under the Professional Programme, organised by the Human Resources function;
•general anti-money laundering training for new agents in financial activities, recovery agents and recovery companies used by the Leasing BU, Cap.Ital.Fin. and the Npl segment companies.
This structured approach strengthens the system of internal controls, ensuring compliance with regulatory standards and promoting a corporate culture focused on legality and ethics.
The illimity Group is also active in the area of corporate culture and whistleblower protection, in fact, illimity Bank, ARECneprix and Abilio still maintain their own whistleblowing systems at the end of 2025, organised through:
•the continued availability of the @Whistleblowing digital platform for the secure and anonymous handling of reports, through a reliable channel for communicating any issues and ensuring timely and corrective responses;
•the continuation of training activities dedicated to employees on the correct use of the platform and the protection of whistleblowers;
•accessibility of the platform for everyone, from employees to stakeholders of the illimity Group.
Whistleblowing training was intended for the entire company population in 2024, with compulsory participation, so that in 2025 it was only provided to new employees.
Finally, Fürstenberg SGR makes use of Banca Ifis's Whistleblowing policies and system.
4.1.2 Management of relations with suppliers
Suppliers play a key role for Banca Ifis, as spending decisions are guided by the principles of cost-effectiveness and efficiency in the allocation of resources. Relations with suppliers are characterised by transparency, fairness and loyalty, always in accordance with the principles laid down in the Code of Ethics adopted by the Group, in order to ensure that all collaboration develops in a fair and responsible manner.
[G1.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon
Management of relations with suppliers
Compliance with the average payment times to suppliers defined within the Group's guidelines | Actual positive impact | Own operations Upstream value chain | Medium-term
Operational risk due to interruption of services rendered by suppliers due to disputes with suppliers (i.e. late/failed payments) | Risk | Upstream value chain | Long-term

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Group approach and policies
[G1-2 DP 7, 14]
The Banca Ifis Group regulates the management of relations with suppliers through a structured set of policies and procedures governing each stage of the procurement process (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview). Among these, the Group Policy for the management of the purchasing cycle reaffirms the principles guiding the management of purchases of goods, services and real estate for the Parent company and subsidiaries, ensuring efficient use of resources and full compliance with current regulations.
The illimity Group also has the Sustainable Supply Chain Policy (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview), which aims to mitigate operational, reputational and environmental risks by promoting suppliers with sustainable practices and reducing social and environmental impacts along their supply chain.
Actions
[ESRS 2 MDR-A DP 68a,b,c]
[G1-2 DP 15a,b]
The Banca Ifis Group, through the implementation of the Group Policy for the management of the purchasing cycle and the Organisational Procedure for the purchase of corporate goods and services, updated in 2025, manages relations with suppliers according to the principles of transparency, sustainability and full regulatory compliance. As part of these processes, contracts provide for adherence to the values of the Group's Code of Ethics, violation of which may lead to contract termination and claims for damages.
The selection of suppliers is managed by the Procurement & Cost Management Department, which deals with the selection, appointment and commercial relations, using appropriately trained staff to ensure effective monitoring and relationship management based on transparency, dialogue and collaboration.
The Group promotes equal opportunities in the selection of suppliers, preventing potential conflicts of interest and encouraging compliance with ethical and regulatory standards, including the Organisational, Management and Control Model pursuant to Italian Legislative Decree no. 231/2001 and the provisions on outsourcing.
Following the double materiality process, the Group identified priority areas along the supply chain, including the integration of social and environmental criteria and the definition of joint paths with suppliers to improve their ESG performance. These initiatives are realised through the 'Sustainable Procurement' project, implemented by the Procurement & Cost Management function in compliance with the exclusions provided for by the relevant internal regulations. The project, described in the chapter on Workers in the Value Chain (see ESRS S2 - Workers in the Value Chain, section 3.2.1 Workers' Rights in the Value Chain), has as its main objective the monitoring of the ESG performance of the most relevant suppliers through the administration of a dedicated questionnaire. Like Banca Ifis, the illimity Group has been using ESG questionnaires to assess relevant suppliers since 2022 and has also introduced a clustering of sustainability risks, with the aim of reducing potential negative impacts along the value chain.
In addition, the management of risks associated with major contracts of Banca Ifis involves the Risk Management function and the Operational Risks unit, which perform targeted audits and submit annual reports to strategic management, enabling timely corrective action to be taken where necessary.
[G1-2 DP 15b]
With regard to the appointment of suppliers to Banca Ifis, this selection takes place through a rigorous process, which assesses criteria such as honourableness, fairness, business loyalty and the ability to comply with the obligations set out in the Code of Ethics and confidentiality rules. The supplier's sensitivity to social, environmental
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and corporate responsibility issues, in relation to the nature of the service offered, is also taken into account. The main evaluation factors include competitiveness, quality, utility, price, integrity, economic soundness and the ability to provide effective and continuous assistance.
Consistent with these principles, Banca Ifis has adopted the Operating Note - Management of the Invoice Recording and Payment Process (expenditure cycle), in line with the Group's Policy for the Management of the expenditure cycle, which governs the methods and timing of payments to suppliers. In particular, the expenditure cycle management process, applicable to Banca Ifis, Ifis Npl Investing and Npl Servicing, consists of two main phases:
1.invoice solvency verification: the manager or contact person of the organisational unit that received the good or service (often coinciding with the Centre of Responsibility for Expenditure) manages the verification of the invoices provided. These can be consulted directly in the system, if it has the relevant access rights, or received by e-mail from the Invoices Payments Department. If the invoice conforms to the good or service received and the cost is in line with what was agreed, the manager approves the invoice in the system, authorising payment. Otherwise, the person responsible may take the following actions:
a)not approve the invoice, reporting the error to the Invoices Payments Department and entering a note with the reasons for rejection in the system;
b)approve it for prepayments, at the instruction of the Invoices Payments Department, to conclude the authorisation cycle without generating a new payment. In that case, the authorisation is filed in the accounting record;
c)contact the supplier to obtain any amending documents (e.g. credit notes), and then authorise the payment after informing the Invoices Payments Department and archiving the supporting documentation in the system.
2.payment of supplier invoices: the Invoices Payments Department, at least twice a week, extracts the list of authorised and due invoices from the system, and proceeds to generate the payment flow. Invoices for which a credit note from the supplier is still pending are excluded from the flow. From time to time, the department monitors overdue invoices that have not yet been paid, checking their causes (e.g. waiting for a credit note or lack of approval). In the case of overdue invoices without approval, the department urges the applicant to complete the authorisation process promptly.
The payment flow generated by the SAP management system is audited by the Head of the Invoices Payments Department or the Head of the Procurement & Cost Management Department the day after execution. During this phase, the amount of payments is checked against the data recorded in the FEU management system. Any discrepancies are corrected and the flow is subsequently validated, generating a payment order. This provision, once approved by the Operations structure, authorises the execution of transfers to suppliers, in accordance with the amounts indicated in the invoices.
At the end of the process, the Operations department archives the payment orders and the documentation relating to the execution of transfers (e.g. payment accounts). This process of recording and paying invoices is applied uniformly to all suppliers of Banca Ifis.
In addition to this, through the “Guidelines for supplier payment arrangements”, Banca Ifis defines an outline of principles and operating guidelines to ensure timely and effective payment management, with the aim of strengthening supplier relations and promoting responsible marketing practices. The approach adopted is based on fairness, transparency, sustainability and ethical responsibility in the management of payments to suppliers, recognising their importance in building relationships of trust and ensuring lasting collaboration.
Timeliness of payments is ensured through clear standards, monitoring procedures and transparent communication of payment terms in each contract. In addition, the Bank promotes an ongoing dialogue with suppliers to resolve any doubts and improve processes. This commitment is part of a broader corporate social
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responsibility, considering compliance with payment terms not just an operational issue, but a core value to support ethical and responsible business practices.
[G1-2 DP 15]
The illimity Group's procurement processes are managed in a sustainable manner through the selection of suppliers who comply with specific requirements including: acknowledgement and acceptance of the Code of Ethics and the Sustainable Supply Chain Policy (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview), the absence of convictions for one or more of the offences provided for in Legislative Decree. No. 231/2001, the commitment to operate in line with its provisions and the Code of Ethics.
Regarding the management of relations with its suppliers, illimity ensures business continuity and adequate governance risk management through a set of structured practices aimed at reducing the risk of service interruptions due to disputes or non-payment.
Firstly, the Bank ensures transparent and timely payments through clear processes, adherence to deadlines and timely communication, so as to prevent friction and foster stable business relationships. In addition, suppliers must read and accept illimity's Code of Ethics at the qualification stage. Such an approach sets ethical, operational and quality standards, clarifies mutual responsibilities and reduces the likelihood of opportunistic or conflicting behaviour.
In addition, illimity applies a robust risk management and business continuity system, assessing ex ante and monitoring the reliability of suppliers over time (e.g. on the basis of credit rating, history of damaging events and reputation from public sources). In support, it prepares recovery plans and alternative solutions, including possible exit strategies for the most relevant suppliers and outsourcers, also assessing the concentration of dependencies and ensuring that any disruptions are manageable without critical impacts on business services.
Finally, illimity adopts supplier engagement strategies that take sustainability topics into account, not only through the administration of an ESG questionnaire at the qualification stage, but also through annual campaigns to update it.
Overall, the measures taken make it possible to maintain sound relations, prevent disputes and ensure business continuity.
4.1.3 Corruption and bribery
Preventing the risk of corruption and bribery is a key priority for the Banca Ifis Group. In order to effectively combat the perpetration of bribery and corruption offences, the Group companies that have appointed a Supervisory Body have adopted the Organisation, Management and Control Model pursuant to Legislative Decree No. 231/2001, together with the guidelines outlined in the Code of Ethics and the Group Policy for the Prevention of Corruption. These tools are essential to ensure the integrity of business operations and promote a culture of transparency and accountability within the Group.
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[G1.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon
Corruption and bribery
Contribution to the dissemination of a culture of fairness and ethics among employees through the provision of training programmes for employees and partners and the communication of company policies | Actual positive impact | Own operations | Medium-term
Occurrence of corruption and money laundering incidents to the detriment of the market and the community | Potential negative impact | Own operations Downstream value chain | Medium-term
Reputational and compliance risk deriving from sanctions for convictions related to financial crime activities (e.g. money laundering, sanctions violations, corruption and bribery) | Risk | Own operations | Medium-term
Improving reputation by investing in the development of innovative tools to manage, monitor and prevent corruption and bribery | Opportunity | Own operations | Medium-term

Group approach and policies
[G1-1 DP 7]
As evidence of its commitment to corruption prevention, the Banca Ifis Group has adopted a set of policies and tools (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview) aimed at ensuring maximum transparency and fairness in the conduct of business activities. The Organisational, Management and Control Model pursuant the Legislative Decree No. 231/2001 defines the principles, rules and structures aimed at preventing unlawful conduct, protecting stakeholders and ensuring the monitoring of sensitive activities within the Group. This is complemented by the Policy for the Prevention of Corruption, which identifies risk areas and establishes organisational measures to ensure responsible and correct operations for each Group company.
[G1-1 DP 10g]
To guarantee the effective implementation of the Organisational, Management and Control Model of Banca Ifis and the Group's companies, the rules and safeguards required by the Bank are adequately disseminated and shared with all recipients, since knowledge of the Model is an essential prerequisite for its correct application and for the accountability of all those who work or collaborate with the Group. This prevents improper or unlawful conduct, whether intentional or negligent, from being justified due to ignorance or misinterpretation of the Model itself or of internal regulations. For the proper functioning of the Organisational, Management and Control Model, communication and staff training are essential requirements, which must be adapted to the different categories of recipients: from general employees to those working in risk areas or sensitive activities, up to members of corporate bodies. This ensures that each individual fully understands his or her responsibilities and actively contributes to the proper application of the Organisational, Management and Control Model.
This commitment takes the form of a structured training plan, which includes courses and in-depth studies on various topics relevant to corporate culture. In order to ensure constant updating also in terms of training, the Compliance Department, as part of its regulatory monitoring activities, informs the structures concerned of
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relevant regulatory developments, initiating the process of monitoring and implementing changes as governed by the relevant internal regulations.
The training provided, in addition to being a regulatory obligation, is a fundamental tool for increasing staff awareness and culture, strengthening their ability to prevent the risk of the Bank's unwitting involvement in inappropriate or unlawful behaviour.
[G1-1 DP 10h]
In this context, the areas of the Banca Ifis Group identified as most exposed to potential corruption events include:
•Chief Commercial Officer (CCO) Department, with reference to the departments involved in the credit disbursement process;
•Human Resources Department, involved in the management of human resources and staff policies;
•General Counsel Department;
•control departments, involved in monitoring regulatory compliance and risks (i.e. AML, Compliance, Risk Management and Large Risk & Monitoring Department);
•Procurement & Cost Management Department, in charge of managing the company's procurement and costs;
•Privacy & Security Department, responsible for legal, privacy and security aspects;
•functions dedicated to the purchase and sale of Npl portfolios, dealing with non-performing credit transactions;
•functions involved in the Npl debt collection process, which are essential for the management of impaired loans;
•Sustainability Committee, involved in overseeing corporate sustainability initiatives.
Actions
[ESRS 2 MDR-A DP 68a,b,c]
Banca Ifis adopts a structured approach to the prevention of corruption, aimed at reducing the potential negative impacts on the market and the community, by promoting a culture of fairness and ethics through the provision of dedicated training programmes for employees and partners, coupled with transparent and constant communication of corporate policies. To mitigate the risks associated with sanctions from financial crime-related activities, such as money laundering, violations of sanctions regulations and corruption, the Group invests in the development of innovative tools to manage, monitor and prevent these phenomena. It also aims to enhance its reputation through concrete initiatives that strengthen corporate integrity.
The Group provides specific training programmes aimed at raising awareness of ethical principles and corporate values, helping to strengthen awareness and a sense of responsibility at all levels. In a parallel fashion, it ensures clear and accessible communication of its policies, ensuring that all stakeholders, internal and external, are informed and aligned with the highest standards of ethical behaviour.
[G1-3 DP 20,21a]
In particular, the Group ensures that all employees receive adequate training on anti-corruption policies and procedures through the provision of two mandatory e-learning courses accessible through the Ifis Talent platform: "The Banca Ifis Code of Ethics" and "Prevention and governance of crime risk". The first illustrates the principles, rules of conduct and supervisory tools provided for in the Code of Ethics; the second, aimed at employees of Italian companies, delves into the general principles set out in Legislative Decree no. 231/2001. Both courses include a final test, the passing of which is binding for the successful completion of the course. The following is a brief description of its contents and delivery methods.
The Code of Ethics course provides an overview of the principles of conduct in relations with employees, collaborators and other stakeholders and consists of four sections:
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•an introductory section on principles, values and responsibilities, including addressees;
•the principles of conduct in relations with employees and collaborators;
•the principles of conduct in relations with other stakeholders, i.e. with customers, suppliers, debtors and in particular with the Public Administration, including the organisational safeguards adopted;
•the tools for monitoring compliance with the Code of Ethics, including the internal reporting system for violations (whistleblowing).
The course on “Prevention and governance of the risk of crime (Legislative Decree No. 231/2001) illustrates the salient features of administrative liability of entities, including:
•the nature of the liability of entities for offences;
•the recipients of the framework;
•Organisational, Management and Control Model as per Italian Legislative Decree no. 231/2001;
•the Supervisory Body;
•the sanction system.
The Training Module also covers all offences under the Organisational, Management and Control Model matrix, with a special focus on those with the greatest relevance for the banking-financial sector, and also offers an in-depth look at Whistleblowing.
The course is based on Adaptive Learning technology that enables faster and more focused learning, maximising results. The user is initially given an initial test that assesses the level of knowledge of each topic. The results of the test determine which modules each user will have to use, based on the areas found to be less well covered, without prejudice to the mandatory use of content affected by regulatory changes. The training concludes with a final test on all topics covered, with a minimum threshold for passing.
[G1-3 DP 21b]
In line with this, 100% of the corporate functions at risk are involved in training activities, including those dedicated to preventing and combating corruption.
[G1-3 DP 21c]
As far as administrative and supervisory bodies are concerned, no specific training modules on corrupt offences have been delivered to date. However, the members of the Board of Directors of the Parent company and its subsidiaries become aware of the anti-corruption procedures adopted when approving or transposing the OMMs and the Code of Ethics.
The illimity Group also attaches particular importance to the role of training in the area of anti-corruption. During 2025, the illimity Group delivered specific web-based (e-learning) courses dedicated to the in-depth understanding of the risk of corruption and the safeguards to be adopted within the most exposed operational activities. The compulsory training programme on the management system for the prevention of corruption is aimed at all staff of the illimity Group.
[G1-3 DP 20]
In a parallel fashion, all employees are required to know and comply with the rules of conduct set forth in the Organisational, Management and Control Model and dedicated Group Policy on the fight against corruption, potential sensitive activities as well as the main structures and safeguards put into place in terms of policies, internal rules, and control structures. Internal regulations and, in particular, the relevant protocols and procedures, the Code of Ethics and the Organisational, Management and Control Model, are available via the company intranet, ensuring full accessibility.
In addition to the awareness-raising and training activities described above, the Banca Ifis Group has an internal governance system aimed at anti-corruption management structured in accordance with Legislative Decree no. 231/2001.
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[G1-3 DP 18a]
The Parent company's Organisational, Management and Control Model, adopted for the prevention of the risk of perpetration of bribery and corruption offences, provides for the following offences of a corrupt nature:
•concussion;
•bribery of office;
•corruption for an act contrary to official duties;
•corruption in judicial proceedings;
•undue inducement to give or promise money or other advantages and corruption;
•incitement to corruption;
•corruption between private individuals;
•solicitation to commit corruption between private individuals;
•embezzlement;
•embezzlement by means of profiting from a third party error;
•trafficking of unlawful influences.
[G1-3 DP 18b]
In particular, the Organisational, Management and Control Model specifies that the control structures are the second and third level control functions and the Board of Statutory Auditors. Together with these structures, the figure of the Supervisory Body with autonomous powers of initiative and control is also identified.
The Banca Ifis Group's internal control system consists of rules, procedures and organisational structures aimed at ensuring, among other things, adherence to the business strategies, the effectiveness and efficiency of processes, and compliance of operations with the law, supervisory regulations, and the policies, procedures and codes of conduct adopted by the Group. All business operations, where envisaged, are subject to audits by the functions or business Areas that own the various processes and operations (line controls or first line of defence), as well as by second line of defence functions (Risk Management, Compliance and Anti-Money Laundering) and third line of defence functions (Internal Audit).
The Risk Management function identifies the risks the Parent and the Group companies are exposed to and measures and monitors them on a regular basis through specific risk indicators, planning potential actions to mitigate material risks. Risk Management regularly reports to corporate bodies on its operations through the Dashboard - as well as, if required, to the Bank of Italy and Consob (Italy's stock market watchdog). The Group's overall risk governance and management structure is governed by the Risk Appetite Framework (RAF) and the relevant documents, which are constantly updated based on the evolution of the Group's strategic framework. Specifically, the Group has prepared a Taxonomy of Risks describing how it identifies the existing and/or potential risks the Group could be exposed to in pursuing its strategic goals as well as the tools for preventing and mitigating each type of risk.
The audit work performed by the Compliance Department seeks to evaluate the effectiveness of the required, proposed or implemented organisational measures intended to manage the risk of non-compliance. Therefore, these audits apply to all areas for which said risk exists. The audit findings are formally presented in reports shared with the relevant business structures, which must provide feedback on the remedial actions identified and the relevant implementation timeline. The function monitors compliance with these requirements and regularly reports to the corporate bodies through the Dashboard - as well as, if required, to the Bank of Italy and Consob. It operates with an ex-ante approach, advising the business on identified regulatory areas, and ex-post, conducting compliance audits.
The Anti-Money Laundering Department performs systematic second line of defence audits concerning the risk of money-laundering and terrorist financing to ensure the relevant procedures are properly applied to operational processes, and develops Key Risk Indicators representing the most significant risk factors to be monitored. It also performs a self-assessment of the risk of money laundering and terrorist financing once a year. The function
315
shares the audit findings and the action plan with the relevant Management. These audits and indicators are also displayed in the Dashboard on a quarterly basis and reported to the Board of Directors as well as, if required, to the Bank of Italy.
Finally, Internal Audit controls, with a view to assuring level three audits, the regular performance of operations and the evolution of business risks and assesses the completeness, adequacy, function and reliability of the organisational structure and the various components of the Internal Control System. The review carried out by the Internal Audit function is transversal to all corporate processes. In order to identify any abnormal performance or breach of internal regulations and assess the function of the Internal Control System as a whole, the function is assigned responsibility for verifying the correct application of internal provisions. The Internal Audit Department operates on the schedule approved by the Board of Directors; in addition to this, it also performs unplanned audits as specifically necessary and/or required by the main corporate bodies or external supervisory bodies. The results of the audits are shared with the reference organisational unit and with the level two audit functions and then sent to the Board of Statutory Auditors and the Control and Risks Committee. The Internal Audit function also reports back regularly to the corporate bodies, also by presenting specific summary reports (Annual reports and Quarterly Dashboards) that, if required, are also submitted to the Bank of Italy or Consob. The audit cycle, as required by the supervisory regulations, is three years and includes audits of all major business processes.
The Supervisory Board (SB) established pursuant to Legislative Decree No. 231/2001 concerning the administrative liability of Entities, operates as an autonomous body responsible for supervising the effectiveness, observance and updating of Organisational, Management and Control Model suitable for preventing the offences considered in Italian Legislative Decree no. 231/2001.
[G1-3 DP 18c]
The process of reporting results to the administrative, management and supervisory bodies is divided into several stages and provides that:
•the Chairman of the Supervisory Body, or a designated member, reports to the Board of Directors at the first useful meeting on the activities carried out and on any use of financial autonomy. At least once a year, the Supervisory Body submits a detailed report on its activities and a plan of activities;
•the Chairman of the Supervisory Body, if necessary, assesses whether to provide extraordinary updates;
•the second- and third-level control functions transmit to the Supervisory Body, once they have been shared with the Board of Directors, extracts of the annual plans and reports on the activities carried out, for matters of interest to the Body. The Supervisory Body may also promote coordination meetings with the Supervisory Bodies of the subsidiaries.
The Organisational, Management and Control Model and the relevant internal rules describe the information flows to the Supervisory Body, which are essential to facilitate supervision of the effectiveness and application of the Model by the body itself, as well as to be informed of conduct contrary to the behavioural principles set out in the Organisational, Management and Control Model, the Code of Ethics and the Group Policy for the prevention of corruption.
Heads of structures must ensure the concrete implementation of the controls and rules of conduct of the Organisational, Management and Control Model. In addition, all recipients of the Model must report any unlawful conduct to the Supervisory Body or to Internal Audit, in line with the Group Policy for the Management of Reports of Violations (Whistleblowing), even if not directly attributable to predicate offences under Legislative Decree No. 231/2001.
The processes and controls adopted by Banca Ifis are designed to promote relationships based on trust and integrity, consolidating a corporate culture oriented towards sustainability and respect for shared values.
316
4.1.4 Political influence and lobbying activities
[G1.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon
Political influence and lobbying activities
Reputational and compliance risk arising from conduct that does not comply with the principles of fairness, honesty and transparency in relations with the regulatory authorities with which the Group has institutional relations | Risk | Own operations | Short-term

Group approach and policies
[G1-1 DP 7]
The Banca Ifis Group defines a structured system for managing and overseeing communications to and between corporate bodies through the adoption of the Group Policy for the Management of Information Flows (see Other Sustainability Information, section 5.3 Minimum Disclosure Requirements: MDR-P Policies overview). This system is based on the principles of completeness, timeliness and accuracy of information, in order to ensure the proper functioning of the governing and supervisory bodies, to facilitate decision-making processes and to strengthen the effectiveness of the internal control system. Moreover, in keeping with its principles of integrity, the Banca Ifis Group is committed to not making political contributions, either directly or indirectly, in line with the ESG Policy (see 2.2 ESRS E1 - Climate Change, section 2.2.2 Energy, Climate Change Adaptation and Mitigation, DP 25).
Actions
[ESRS 2 MDR-A DP 68a,b,c]
With reference to institutional relations, the Banca Ifis Group adopts an organisational structure dedicated to managing relations with regulatory authorities. In this context, the Bank adopts the Group's Technical Operating Manual for handling requests from supervisory authorities, which regulates the methods, channels and responsibilities for interaction with them. All requests are monitored and managed through official and traceable channels; if they are received through non-routine or informal channels (e.g. telephone contacts), the recipient functions are required to promptly register them on a dedicated portal accessible through the corporate intranet, ensuring the correct mapping of requests and the activation of internal information flows towards the competent structures, including, where applicable, the CEO and the Internal Audit function.
The Group participates in the work of industry associations in which it is active in order to promote efficient and sustainable development. In particular, it adheres, among others: to the Italian Banking Association (ABI), which promotes the culture of legality and sound and prudent banking management; to the Italian Factoring Association (Assifact), which represents the factoring industry in Italy and Europe to monitor and accompany major market and regulatory changes; and to the Italian Leasing Association (Assilea), which represents leasing companies at industry organisations operating in various institutional, national and international fora. In carrying out these activities, appropriate safeguards are identified to ensure consistency with the Group's defined sustainability values and principles, with particular reference to climate change issues. The activities described above do not in any way correspond to lobbying activities nor are they intended to exert political influence.
It is also specified that with regard to political contributions, including donations and other handouts, these are prohibited in any tangible or intangible form. In particular, political parties and movements and their organisational branches, trade unions and patronage organisations, clubs, associations and recreational groups, private, officially
317
recognised and/or legally recognised schools cannot be recipients of disbursements, except for specific initiatives of particular social, cultural or scientific importance, which must in any case be approved.
4.1.5 Targets
[ESRS 2 MDR-T DP 72, 81,a,b,bii]
At present, there are no measurable, outcome-oriented targets set in relation to the impacts, risks and opportunities associated with business conduct-related areas. In the coming years, the Bank will consider setting specific targets on this topic, taking into account the strategic priorities and the needs of the operating environment, also in view of the future Business Plan to be presented to the market.
Despite the absence of such targets, Banca Ifis monitors the effectiveness of its sustainability policies and actions. This monitoring takes place through structured processes, including the Whistleblowing system available to Banca Ifis's internal and external stakeholders. This system makes it possible to report and assess any conduct that does not comply with the values and principles of business conduct, ensuring transparency, integrity and effective control over adherence to the company's ethical and regulatory standards.
4.1.6 Metrics
[ESRS 2 MDR-M DP 75, 77a]
In the governance metrics reporting process, Banca Ifis actively collaborated with the relevant corporate departments, ensuring a specialised and targeted contribution in their respective fields. The methodologies and assumptions adopted underlying the calculation of the reported quantitative data comply with the European Sustainability Reporting Standards (ESRS) and applicable regulations.
[G1-4 DP 24a]
In 2025, there were no cases of corruption or legal proceedings brought against the employees of the Group or the external networks. In addition, no convictions or fines were reported for violations of regulations against corruption and bribery. This result testifies to the effectiveness of the management system adopted by the Banca Ifis Group, which has not even been subject to legal action for anti-competitive behaviour, antitrust violations or monopolistic practices.
318
[G1-4 DP 24b]

Number and percentage of employees who received training on the fight against corruption, divided up by category | UoM | 2025 | 2024
Senior managers | No. | 90 | 57
% | 54 | 58
Middle managers | No. | 588 | 511
% | 60 | 78
Clerical staff | No. | 849 | 987
% | 55 | 78
Total | No. | 1.527 | 1.555
% | 57 | 77

In 2024, the high level of participation in anti-corruption training courses was boosted by the updating of training content. In 2025, the content remained unchanged, requiring no training updates for the functions already involved; therefore, the courses were intended for newly recruited resources and those who had not yet participated in the training in 2024. In addition, in 2025, employees of the illimity Group were also included in the count.
[G1-4 DP 25d]
As in the previous year, during 2025 there were no incidents of corruption or legal cases brought against the employees of the Group or the external networks.
[G1-5 DP 29b,bi,bii]
As described above and in line with previous years, the Group reaffirms its commitment not to make political contributions in any form, whether tangible or intangible. No political contributions were made in 2025, neither financial nor in kind.
[G1-5 DP 29a,c,d]
Therefore, there are no representatives of the administration, management and supervisory bodies in charge of supervising political influence activities, as these activities are not implemented by Banca Ifis on any topic. Furthermore, it should be noted that the Group is not registered in any transparency register.
[G1-6 DP 33a,b,c]
The Banca Ifis Group stands out with regard to the average invoice payment time (27 days), calculated from the start of the legal or contractual deadline of the invoice.
The standard terms adopted are 30 days from the end of the month in which the invoice is issued, a practice applied to most contracts as well as further customised terms with individual suppliers.
However, some of the bureaucratic and accounting formalities required to register individual transactions on digital application systems generate a slight payment delay in many cases, which negatively affects the result of the alignment of payments to payment deadlines (compliance with deadlines in 50% of cases).
319
The approach adopted by Banca Ifis, characterised by transparency and accountability, is reflected in the absence of pending legal proceedings related to late payments, confirming a timely and reliable management of financial commitments.
[G1-6 DP 33a]

Average number of days to pay an invoice from the date when the contractual or statutory term of payment starts to be calculated | UoM | 2025 | 2024
No. | 27 | 25

[G1-6 DP 33b]

Percentage of payments aligned with standard payment terms | UoM | 2025 | 2024
% | 50 | 46

[G1-6 DP 33c]

Number of legal proceedings outstanding for late payments | UoM | 2025 | 2024
No. | 0 | 0

[G1-6 DP 33d]
For the calculation of the Banca Ifis Group's payment practices, performed at the consolidated level for the reporting year 2025 (1 January - 31 December), the sampling used includes:
•all invoices paid to suppliers by each Ifis Group company during the reporting period;
•invoices paid to Italian, EU and non-EU suppliers.
The following were excluded from the sample:
•invoices and payments between companies belonging to the Banca Ifis Group;
•invoices issued by suppliers corresponding to natural persons and issued by suppliers operating under the flat-rate scheme or subject to withholding tax, as they do not fall into the category of SMEs;
•transfers and credit notes.
320
5. Other sustainability information
5.1 Disclosures pursuant to Article 8 of Delegated Regulation (EU) 2020/852 (Taxonomy Regulation)
5.1.1 Annex VI to Delegated Regulation (EU) 2021/2178
All amounts published within the Templates provided for in Annex VI of Delegated Regulation 2021/2178 are expressed in million Euro and in percentage values. In the event that the data for a specific exposure category is equal to 0, the corresponding cell within the Reference Template is filled with a dash ('-'). If, on the other hand, a value greater than 0 is associated with a particular cell, but is not visible in percentage terms or in million Euro (because it is a small percentage/amount), the corresponding cell in the templates below is set to '0,0'.
321
Template 1. Assets for the calculation of GAR - Capex based (Stock) [FY 2025]

Disclosure reference date 31.12.2025 |  |  |  |  |  |  |  |  |  |  |  |
Stock In million Euro | a | b | c | d | e | f | g | h | i | j | k | l
Total (gross) carrying amount | Of which taxonomy eligible |
Of which taxonomy aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and ecosystems (BIO)
1 | GAR – Covered assets in both numerator and denominator | 3.945,5 | 782,4 | 278,5 | 260,5 | 13,5 | 2,2 | 2,2 | 0,0 | 0,0 | - | 4,1 | 163,3
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 3.853,3 | 758,7 | 271,2 | 255,0 | 13,5 | 2,2 | 0,5 | 0,0 | 0,0 | - | 4,1 | 161,0
3 | Financial undertakings | 685,5 | 142,7 | 15,7 | 15,5 | 0,2 | 0,0 | 0,0 | 0,0 | 0,0 | - | 0,9 | 3,6
4 | Loans and advances | 228,4 | 26,2 | 3,1 | 3,1 | 0,0 | 0,0 | 0,0 | - | 0,0 | - | 0,2 | 1,6
5 | Debt securities, including UoP | 391,2 | 94,2 | 10,2 | 10,0 | 0,2 | 0,0 | 0,0 | 0,0 | 0,0 | - | 0,5 | 1,6
6 | Equity instruments | 65,9 | 22,4 | 2,4 | 2,4 | 0,0 | 0,0 | - | - | - |  | 0,1 | 0,3
7 | Non-financial undertakings | 692,8 | 415,4 | 241,2 | 225,2 | 13,3 | 2,1 | 0,5 | 0,0 | 0,0 | - | 3,2 | 157,5
8 | Loans and advances | 566,6 | 353,5 | 205,8 | 190,1 | 13,3 | 2,1 | 0,3 | 0,0 | 0,0 | - | 2,7 | 140,9
9 | Debt securities, including UoP | 63,6 | 33,5 | 15,1 | 15,1 | 0,0 | - | 0,0 | - | - | - | 0,4 | 2,4
10 | Equity instruments | 62,7 | 28,3 | 20,3 | 20,0 | 0,0 | 0,0 | 0,2 | 0,0 | - |  | 0,0 | 14,2
11 | Households | 2.475,0 | 200,6 | 14,3 | 14,3 | - |  | - |  |  | - | - | -
12 | of which loans collateralised by residential immovable property | 150,3 | 150,3 | 14,3 | 14,3 | - |  | - |  |  | - | - | -
13 | of which building renovation loans | - | - | - | - | - |  | - |  |  | - | - | -
14 | of which motor vehicles loans | 50,3 | 50,3 | - | - |  |  |  |  |  | - | - | -
15 | Local government financing | - | - | - | - | - | - | - | - | - | - | - | -
16 | Housing financing | - | - | - | - | - |  | - |  |  | - | - | -
17 | Other local government financing | - | - | - | - | - | - | - | - | - | - | - | -
18 | Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - |  | - |  |  | - | - | -
19 | Exposures included on a voluntary basis 58 | 92,1 | 23,7 | 7,3 | 5,6 | 0,0 |  | 1,7 |  |  | - | - | 2,3
20 | Total GAR assets | 3.945,5 |  |  |  |  |  |  |  |  |  |  |
21 | Assets not covered for GAR calculation | 18.500,5 |  |  |  |  |  |  |  |  |  |  |
22 | Central governments and Supranational issuers | 3.951,6 |  |  |  |  |  |  |  |  |  |  |
23 | Central Banks exposure | 404,3 |  |  |  |  |  |  |  |  |  |  |
24 | Trading book | 27,5 |  |  |  |  |  |  |  |  |  |  |
25 | Undertakings and entities not subject to CSRD | 8.801,9 |  |  |  |  |  |  |  |  |  |  |
26 | SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations | 8.541,3 |  |  |  |  |  |  |  |  |  |  |
27 | Loans and advances | 8.198,3 |  |  |  |  |  |  |  |  |  |  |
28 | of which loans collateralised by commercial immovable property | 452,3 |  |  |  |  |  |  |  |  |  |  |
29 | of which building renovation loans | - |  |  |  |  |  |  |  |  |  |  |
30 | Debt securities | 205,6 |  |  |  |  |  |  |  |  |  |  |
31 | Equity instruments | 137,4 |  |  |  |  |  |  |  |  |  |  |
32 | Non-EU country counterparties not subject to CSRD disclosure obligations | 260,6 |  |  |  |  |  |  |  |  |  |  |
33 | Loans and advances | 257,5 |  |  |  |  |  |  |  |  |  |  |
34 | Debt securities | 1,0 |  |  |  |  |  |  |  |  |  |  |
35 | Equity instruments | 2,1 |  |  |  |  |  |  |  |  |  |  |
36 | Derivatives | 60,9 |  |  |  |  |  |  |  |  |  |  |
37 | On demand interbank loans | 479,3 |  |  |  |  |  |  |  |  |  |  |
38 | Cash and cash-related assets | 0,0 |  |  |  |  |  |  |  |  |  |  |
39 | Other categories of assets (e.g. goodwill, commodities, etc.) | 4.774,9 |  |  |  |  |  |  |  |  |  |  |
40 | Total assets | 22.445,9 |  |  |  |  |  |  |  |  |  |  |
Off-balance sheet exposures (stock) to Undertakings subject to CSRD disclosure obligations and local governments
41 | Financial guarantees | - | - | - | - | - | - | - | - | - | - | - | -
42 | Assets under management | 83,2 | 28,7 | 8,0 | 7,2 | 0,5 | 0,0 | 0,2 | 0,1 | 0,0 | - | 0,6 | 3,4
43 | Of which debt securities | 52,1 | 19,3 | 5,8 | 5,1 | 0,5 | 0,0 | 0,1 | 0,1 | 0,0 | - | 0,5 | 2,4
44 | Of which equity instruments | 19,7 | 8,1 | 2,1 | 2,1 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | - | 0,1 | 1,1

58 In accordance with Article 7(3) of Delegated Regulation 2021/2178.
322
Disclosure reference date 31.12.2025
m
n
o
p
Stock In million Euro
Non-assessed exposures
Of which financing of non-material activities of counterparties 59
Of which exposures financing counterparties reporting in accordance with Article 7(9)
Of which not assessed, considered not material by the credit institution 60
1
GAR – Covered assets in both numerator and denominator
-
-
-
-
2
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
-
-
-
-
3
Financial undertakings
-
-
-
-
4
Loans and advances
-
-
-
-
5
Debt securities, including UoP
-
-
-
-
6
Equity instruments
-
-
-
-
7
Non-financial undertakings
-
-
-
8
Loans and advances
-
-
-
9
Debt securities, including UoP
-
-
-
10
Equity instruments
-
-
-
11
Households
-
-
-
12
of which loans collateralised by residential immovable property
-
-
-
13
of which building renovation loans
-
-
-
14
of which motor vehicles loans
-
-
-
15
Local government financing
-
-
-
16
Housing financing
-
-
-
17
Other local government financing
-
-
-
18
Collateral obtained by taking possession: residential and commercial immovable properties
-
-
-
19
Exposures included on a voluntary basis 61
-
-
20
Total GAR assets
-
-
-
-
21
Assets not covered for GAR calculation
22
Central governments and Supranational issuers
23
Central Banks exposure
24
Trading book
25
Undertakings and entities not subject to CSRD
26
SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations
27
Loans and advances
28
of which loans collateralised by commercial immovable property
29
of which building renovation loans
30
Debt securities
31
Equity instruments
32
Non-EU country counterparties not subject to CSRD disclosure obligations
33
Loans and advances
34
Debt securities
35
Equity instruments
36
Derivatives
37
On demand interbank loans
38
Cash and cash-related assets
39
Other categories of assets (e.g. goodwill, commodities, etc.)
40
Total assets
Off-balance sheet exposures (stock) to Undertakings subject to CSRD disclosure obligations and local governments
41
Financial guarantees
-
-
-
-
42
Assets under management
-
-
-
-
43
Of which debt securities
-
-
-
-
44
Of which equity instruments
-
-
-
-
59 In accordance with Article 7(8)(a) and (b) of Delegated Regulation 2021/2178.
60 In accordance with Article 4(1a) of Delegated Regulation 2021/2178.
61 In accordance with Article 7(3) of Delegated Regulation 2021/2178.
323
Template 1. Assets for the calculation of GAR - Turnover based (Stock) [FY 2025]
Disclosure reference date 31.12.2025
a
b
c
d
e
f
g
h
i
j
k
l
Breakdown per environmental objective
Stock In million Euro
Total (gross) carrying amount
Of which taxonomy eligible
Of which taxonomy aligned
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and ecosystems (BIO)
Of which Use of Proceeds
Of which transitional
Of which enabling
1
GAR – Covered assets in both
numerator and denominator
3.945,5
730,2
188,7
185,8
0,1
1,2
1,4
0,1
-
-
7,4
48,4
2
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
3.853,3
704,8
183,9
181,4
0,1
1,2
1,2
0,1
-
-
7,4
46,8
3
Financial undertakings
685,5
141,3
13,3
13,2
0,1
0,0
0,0
0,0
-
-
0,9
1,9
4
Loans and advances
228,4
26,3
2,1
2,1
0,0
0,0
0,0
0,0
-
-
0,2
0,6
5
Debt securities, including UoP
391,2
92,9
9,0
9,0
0,0
0,0
0,0
0,0
-
-
0,5
1,1
6
Equity instruments
65,9
22,1
2,1
2,1
0,0
-
-
-
-
0,1
0,2
7
Non-financial undertakings
692,8
363,0
156,4
153,9
0,0
1,2
1,2
0,1
-
-
6,5
44,9
8
Loans and advances
566,6
311,2
134,3
132,3
0,0
1,2
0,7
0,1
-
-
6,4
31,4
9
Debt securities, including UoP
63,6
30,2
8,6
8,3
-
-
0,3
-
-
-
0,1
1,4
10
Equity instruments
62,7
21,5
13,6
13,4
-
-
0,2
0,0
-
0,0
12,1
11
Households
2.475,0
200,6
14,3
14,3
-
-
-
-
-
12
of which loans collateralised by residential immovable property
150,3
150,3
14,3
14,3
-
-
-
-
-
13
of which building renovation loans
-
-
-
-
-
-
-
-
-
14
of which motor vehicles loans
50,3
50,3
-
-
-
-
-
15
Local government financing
-
-
-
-
-
-
-
-
-
-
-
-
16
Housing financing
-
-
-
-
-
-
-
-
-
17
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
18
Collateral obtained by taking possession: residential and commercial immovable properties
-
-
-
-
-
-
-
-
-
19
Exposures included on a voluntary basis 62
92,1
25,4
4,7
4,5
0,0
0,3
-
-
1,7
20
Total GAR assets
3.945,5
21
Assets not covered for GAR
calculation
18.500,5
22
Central governments and Supranational issuers
3.951,6
23
Central Banks exposure
404,3
24
Trading book
27,5
25
Undertakings and entities not subject to CSRD
8.801,9
26
SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations
8.541,3
27
Loans and advances
8.198,3
28
of which loans collateralised by commercial immovable property
452,3
29
of which building renovation loans
0,0
30
Debt securities
205,6
31
Equity instruments
137,4
32
Non-EU country counterparties not subject to CSRD disclosure obligations
260,6
33
Loans and advances
257,5
34
Debt securities
1,0
35
Equity instruments
2,1
36
Derivatives
60,9
37
On demand interbank loans
479,3
38
Cash and cash-related assets
0,0
39
Other categories of assets (e.g. goodwill, commodities, etc.)
4.774,9
40
Total assets
22.445,9
Off-balance sheet exposures (stock) to Undertakings subject to CSRD disclosure obligations and local governments
41
Financial guarantees
-
-
-
-
-
-
-
-
-
-
-
-
42
Assets under management
83,2
24,9
5,1
4,7
0,1
0,0
0,2
0,1
-
-
0,4
2,3
43
Of which debt securities
52,1
16,5
3,7
3,4
0,1
0,0
0,1
0,1
-
-
0,4
1,6
44
Of which equity instruments
19,7
7,6
1,4
1,3
0,0
0,0
0,1
0,0
-
-
0,1
0,7
62 In accordance with Article 7(3) of Delegated Regulation 2021/2178.
324
Disclosure reference date 31.12.2025
m
n
o
p
Stock In million Euro
Non-assessed exposures
Of which financing of non-material activities of counterparties 63
Of which exposures financing counterparties reporting in accordance with Article 7(9)
Of which not assessed, considered not material by the credit institution 64
1
GAR – Covered assets in both numerator and denominator
-
-
-
-
2
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
-
-
-
-
3
Financial undertakings
-
-
-
-
4
Loans and advances
-
-
-
-
5
Debt securities, including UoP
-
-
-
-
6
Equity instruments
-
-
-
-
7
Non-financial undertakings
-
-
-
8
Loans and advances
-
-
-
9
Debt securities, including UoP
-
-
-
10
Equity instruments
-
-
-
11
Households
-
-
-
12
of which loans collateralised by residential immovable property
-
-
-
13
of which building renovation loans
-
-
-
14
of which motor vehicles loans
-
-
-
15
Local government financing
-
-
-
16
Housing financing
-
-
-
17
Other local government financing
-
-
-
18
Collateral obtained by taking possession: residential and commercial immovable properties
-
-
-
19
Exposures included on a voluntary basis 65
-
-
20
Total GAR assets
-
-
-
-
21
Assets not covered for GAR calculation
22
Central governments and Supranational issuers
23
Central Banks exposure
24
Trading book
25
Undertakings and entities not subject to CSRD
26
SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations
27
Loans and advances
28
of which loans collateralised by commercial immovable property
29
of which building renovation loans
30
Debt securities
31
Equity instruments
32
Non-EU country counterparties not subject to CSRD disclosure obligations
33
Loans and advances
34
Debt securities
35
Equity instruments
36
Derivatives
37
On demand interbank loans
38
Cash and cash-related assets
39
Other categories of assets (e.g. goodwill, commodities, etc.)
40
Total assets
Off-balance sheet exposures (stock) to Undertakings subject to CSRD disclosure obligations and local governments
41
Financial guarantees
-
-
-
-
42
Assets under management
-
-
-
-
43
Of which debt securities
-
-
-
-
44
Of which equity instruments
-
-
-
-
63 In accordance with Article 7(8)(a) and (b) of Delegated Regulation 2021/2178.
64 In accordance with Article 4(1a) of Delegated Regulation 2021/2178.
65 In accordance with Article 7(3) of Delegated Regulation 2021/2178.
325
Template 1. Assets for the calculation of GAR - Capex based (Flow) [FY 2025]
Disclosure reference date 31.12.2025
a
b
c
d
e
f
g
h
i
j
k
l
Breakdown per environmental objective
Flow In million Euro
Total (gross) carrying amount
Of which taxonomy eligible
Of which taxonomy aligned
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and ecosystems (BIO)
Of which Use of Proceeds
Of which transitional
Of which enabling
1
GAR – Covered assets in both
numerator and denominator
32.183,0
5.395,6
781,1
763,3
3,8
7,8
6,1
0,1
0,1
-
23,4
253,3
2
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
31.574,7
5.309,9
765,2
752,6
3,8
7,8
0,9
0,1
0,1
-
23,4
251,3
3
Financial undertakings
28.814,6
4.565,9
561,7
559,0
1,4
1,3
0,0
0,0
0,1
-
22,0
187,5
4
Loans and advances
28.378,3
4.446,1
549,1
546,5
1,3
1,2
0,0
0,0
0,0
-
21,1
185,3
5
Debt securities, including UoP
140,8
37,5
3,5
3,5
0,0
0,0
0,0
0,0
0,0
-
0,3
0,8
6
Equity instruments
295,5
82,4
9,0
9,0
0,0
0,0
0,0
0,0
0,0
0,6
1,4
7
Non-financial undertakings
1.094,3
711,5
202,0
192,1
2,4
6,5
0,9
0,1
-
-
1,4
63,8
8
Loans and advances
939,6
641,4
158,6
149,8
2,4
5,9
0,4
0,1
-
-
1,1
38,4
9
Debt securities, including UoP
12,8
1,8
0,3
0,3
-
-
0,0
-
-
-
0,0
0,2
10
Equity instruments
142,0
68,3
43,1
41,9
0,1
0,6
0,5
0,0
-
0,3
25,2
11
Households
1.665,8
32,5
1,5
1,5
-
-
-
-
-
12
of which loans collateralised by residential immovable property
7,7
7,7
1,5
1,5
-
-
-
-
-
13
of which building renovation loans
-
-
-
-
-
-
-
-
-
14
of which motor vehicles loans
24,8
24,8
-
-
-
-
-
15
Local government financing
-
-
-
-
-
-
-
-
-
-
-
-
16
Housing financing
-
-
-
-
-
-
-
-
-
17
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
18
Collateral obtained by taking possession: residential and commercial immovable properties
-
-
-
-
-
-
-
-
-
19
Exposures included on a voluntary basis 66
608,3
85,7
15,9
10,7
-
5,2
-
-
2,0
20
Total GAR assets
32.183,0
21
Assets not covered for GAR
calculation
19.071,4
22
Central governments and Supranational issuers
2.221,4
23
Central Banks exposure
0,0
24
Trading book
0,0
25
Undertakings and entities not subject to CSRD
14.276,1
26
SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations
12.636,4
27
Loans and advances
12.510,5
28
of which loans collateralised by commercial immovable property
4,1
29
of which building renovation loans
-
30
Debt securities
39,7
31
Equity instruments
86,3
32
Non-EU country counterparties not subject to CSRD disclosure obligations
1.639,6
33
Loans and advances
1.632,2
34
Debt securities
0,0
35
Equity instruments
7,5
36
Derivatives
0,0
37
On demand interbank loans
0,0
38
Cash and cash-related assets
0,0
39
Other categories of assets (e.g. goodwill, commodities, etc.)
2.573,9
40
Total assets
51.254,4
Off-balance sheet exposures (flow) to Undertakings subject to CSRD disclosure obligations and local governments
41
Financial guarantees
-
-
-
-
-
-
-
-
-
-
-
-
42
Assets under management
11,2
2,8
0,5
0,5
0,0
0,0
0,0
0,0
0,0
-
0,0
0,3
43
Of which debt securities
1,1
0,4
0,2
0,1
0,0
0,0
0,0
0,0
0,0
-
0,0
0,1
44
Of which equity instruments
2,2
1,1
0,4
0,3
0,0
0,0
0,0
0,0
0,0
-
0,0
0,2
66 In accordance with Article 7(3) of Delegated Regulation 2021/2178.
326
Disclosure reference date 31.12.2025
m
n
o
p
Flow In million Euro
Non-assessed exposures
Of which financing of non-material activities of counterparties 67
Of which exposures financing counterparties reporting in accordance with Article 7(9)
Of which not assessed, considered not material by the credit institution 68
1
GAR – Covered assets in both numerator and denominator
-
-
-
-
2
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
-
-
-
-
3
Financial undertakings
-
-
-
-
4
Loans and advances
-
-
-
-
5
Debt securities, including UoP
-
-
-
-
6
Equity instruments
-
-
-
-
7
Non-financial undertakings
-
-
-
8
Loans and advances
-
-
-
9
Debt securities, including UoP
-
-
-
10
Equity instruments
-
-
-
11
Households
-
-
-
12
of which loans collateralised by residential immovable property
-
-
-
13
of which building renovation loans
-
-
-
14
of which motor vehicles loans
-
-
-
15
Local government financing
-
-
-
16
Housing financing
-
-
-
17
Other local government financing
-
-
-
18
Collateral obtained by taking possession: residential and commercial immovable properties
-
-
-
19
Exposures included on a voluntary basis 69
-
-
20
Total GAR assets
-
-
-
-
21
Assets not covered for GAR calculation
22
Central governments and Supranational issuers
23
Central Banks exposure
24
Trading book
25
Undertakings and entities not subject to CSRD
26
SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations
27
Loans and advances
28
of which loans collateralised by commercial immovable property
29
of which building renovation loans
30
Debt securities
31
Equity instruments
32
Non-EU country counterparties not subject to CSRD disclosure obligations
33
Loans and advances
34
Debt securities
35
Equity instruments
36
Derivatives
37
On demand interbank loans
38
Cash and cash-related assets
39
Other categories of assets (e.g. goodwill, commodities, etc.)
40
Total assets
Off-balance sheet exposures (flow) to companies subject to CSRD reporting requirements and local governments
41
Financial guarantees
-
-
-
-
42
Assets under management
-
-
-
-
43
Of which debt securities
-
-
-
-
44
Of which equity instruments
-
-
-
-
67 In accordance with Article 7(8)(a) and (b) of Delegated Regulation 2021/2178.
68 In accordance with Article 4(1a) of Delegated Regulation 2021/2178.
69 In accordance with Article 7(3) of Delegated Regulation 2021/2178.
327
Template 1. Assets for the calculation of GAR - Turnover based (Flow) [FY 2025]
Disclosure reference date 31.12.2025
a
b
c
d
e
f
g
h
i
j
k
l
Breakdown per environmental objective
Flow In million Euro
Total (gross) carrying amount
Of which taxonomy eligible
Of which taxonomy aligned
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and ecosystems (BIO)
Of which Use of Proceeds
Of which transitional
Of which enabling
1
GAR – Covered assets in both
numerator and denominator
32.183,0
5.102,2
534,5
524,9
3,6
3,8
1,9
0,3
-
-
12,7
118,7
2
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
31.574,7
5.058,9
526,6
517,5
3,6
3,8
1,4
0,3
-
-
12,7
116,9
3
Financial undertakings
28.814,6
4.533,9
441,3
437,5
3,6
0,0
0,1
0,0
-
-
11,2
80,9
4
Loans and advances
28.378,3
4.415,8
430,3
426,7
3,6
0,0
0,0
0,0
-
-
10,3
79,6
5
Debt securities, including UoP
140,8
36,9
3,0
3,0
0,0
0,0
0,0
0,0
-
-
0,3
0,4
6
Equity instruments
295,5
81,3
7,9
7,9
0,0
0,0
0,0
0,0
-
0,6
0,9
7
Non-financial undertakings
1.094,3
492,4
83,8
78,4
0,0
3,7
1,3
0,3
-
-
1,5
35,9
8
Loans and advances
939,6
434,5
58,9
54,3
0,0
3,4
1,0
0,3
-
-
1,3
16,0
9
Debt securities, including UoP
12,8
2,6
0,3
0,3
-
-
0,0
-
-
-
0,0
0,1
10
Equity instruments
142,0
55,3
24,5
23,8
-
0,4
0,3
0,0
-
0,2
19,8
11
Households
1.665,8
32,5
1,5
1,5
-
-
-
-
-
12
of which loans collateralised by residential immovable property
7,7
7,7
1,5
1,5
-
-
-
-
-
13
of which building renovation loans
-
-
-
-
-
-
-
-
-
14
of which motor vehicles loans
24,8
24,8
-
-
-
-
-
15
Local government financing
-
-
-
-
-
-
-
-
-
-
-
-
16
Housing financing
-
-
-
-
-
-
-
-
-
17
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
18
Collateral obtained by taking possession: residential and commercial immovable properties
-
-
-
-
-
-
-
-
-
19
Exposures included on a voluntary basis 70
608,3
43,3
8,0
7,4
-
0,5
-
-
1,9
20
Total GAR assets
32.183,0
21
Assets not covered for GAR
calculation
19.071,4
22
Central governments and Supranational issuers
2.221,4
23
Central Banks exposure
0,0
24
Trading book
0,0
25
Undertakings and entities not subject to CSRD
14.276,1
26
SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations
12.636,4
27
Loans and advances
12.510,5
28
of which loans collateralised by commercial immovable property
4,1
29
of which building renovation loans
0,0
30
Debt securities
39,7
31
Equity instruments
86,3
32
Non-EU country counterparties not subject to CSRD disclosure obligations
1.639,6
33
Loans and advances
1.632,2
34
Debt securities
0,0
35
Equity instruments
7,5
36
Derivatives
0,0
37
On demand interbank loans
0,0
38
Cash and cash-related assets
0,0
39
Other categories of assets (e.g. goodwill, commodities, etc.)
2.573,9
40
Total assets
51.254,4
Off-balance sheet exposures (flow) to Undertakings subject to CSRD disclosure obligations and local governments
41
Financial guarantees
-
-
-
-
-
-
-
-
-
-
-
-
42
Assets under management
11,2
2,1
0,4
0,4
0,0
0,0
0,0
0,0
-
-
0,0
0,2
43
Of which debt securities
1,1
0,3
0,1
0,1
0,0
0,0
0,0
0,0
-
-
0,0
0,1
44
Of which equity instruments
2,2
1,0
0,3
0,3
0,0
0,0
0,0
0,0
-
-
0,0
0,2
70 In accordance with Article 7(3) of Delegated Regulation 2021/2178.
328
Disclosure reference date 31.12.2025
m
n
o
p
Flow In million Euro
Non-assessed exposures
Of which financing of non-material activities of counterparties 71
Of which exposures financing counterparties reporting in accordance with Article 7(9)
Of which not assessed, considered not material by the credit institution 72
1
GAR – Covered assets in both numerator and denominator
-
-
-
-
2
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
-
-
-
-
3
Financial undertakings
-
-
-
-
4
Loans and advances
-
-
-
-
5
Debt securities, including UoP
-
-
-
-
6
Equity instruments
-
-
-
-
7
Non-financial undertakings
-
-
-
8
Loans and advances
-
-
-
9
Debt securities, including UoP
-
-
-
10
Equity instruments
-
-
-
11
Households
-
-
-
12
of which loans collateralised by residential immovable property
-
-
-
13
of which building renovation loans
-
-
-
14
of which motor vehicles loans
-
-
-
15
Local government financing
-
-
-
16
Housing financing
-
-
-
17
Other local government financing
-
-
-
18
Collateral obtained by taking possession: residential and commercial immovable properties
-
-
-
19
Exposures included on a voluntary basis 73
-
-
20
Total GAR assets
-
-
-
-
21
Assets not covered for GAR calculation
22
Central governments and Supranational issuers
23
Central Banks exposure
24
Trading book
25
Undertakings and entities not subject to CSRD
26
SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations
27
Loans and advances
28
of which loans collateralised by commercial immovable property
29
of which building renovation loans
30
Debt securities
31
Equity instruments
32
Non-EU country counterparties not subject to CSRD disclosure obligations
33
Loans and advances
34
Debt securities
35
Equity instruments
36
Derivatives
37
On demand interbank loans
38
Cash and cash-related assets
39
Other categories of assets (e.g. goodwill, commodities, etc.)
40
Total assets
Off-balance sheet exposures (flow) to companies subject to CSRD reporting requirements and local governments
41
Financial guarantees
-
-
-
-
42
Assets under management
-
-
-
-
43
Of which debt securities
-
-
-
-
44
Of which equity instruments
-
-
-
-
71 In accordance with Article 7(8)(a) and (b) of Delegated Regulation 2021/2178.
72 In accordance with Article 4(1a) of Delegated Regulation 2021/2178.
73 In accordance with Article 7(3) of Delegated Regulation 2021/2178.
329
Template 2. GAR - Sector Information - Capex based [FY 2025]

Disclosure reference date 31.12.2025 |  |  |  |  |  |  |  |  |
a | b | c | d | e | f | g | h | i | j
Breakdown by sector – NACE 4 digits level (code and label) (In million Euro) | Total (gross) carrying amount | Of which taxonomy eligible | Of which taxonomy aligned | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resourc es (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and ecosystems (BIO)
1 | G47.73 Retail sale of pharmaceutical products | 767,5 | - | - | - | - | - | - | - | -
2 | H49.41 Freight transport by road | 385,4 | - | - | - | - | - | - | - | -
3 | F42.11 Construction of roads and motorways | 247,2 | 95,7 | 88,0 | 81,3 | 6,8 | - | - | - | -
4 | F41.20 Construction of residential and non-residential buildings | 194,7 | 0,0 | 0,0 | 0,0 | - | - | 0,0 | 0,0 | -
5 | G47.11 Non-specialised retail sale of predominately food, beverages or tobacco | 157,3 | 1,0 | - | - | - | - | - | - | -
6 | C25.62 Machining | 133,7 | - | - | - | - | - | - | - | -
7 | J62.01 Computer programming activities | 132,4 | 0,9 | 0,0 | 0,0 | - | - | - | - | -
8 | C29.10 Manufacture of motor vehicles | 111,2 | 58,5 | 19,4 | 19,4 | - | - | - | - | -
9 | F43.21 Electrical installation | 104,5 | - | - | - | - | - | - | - | -
10 | L68.20 Renting and operating of own or leased real estate | 97,0 | 0,4 | 0,0 | 0,0 | - | - | - | - | -
11 | Nuclear activities 74 | 1.000,6 | 0,2 | 0,2 |  |  |  |  |  |
12 | Fossil gas activities 75 | 1.079,4 | 1,6 | 0,0 |  |  |  |  |  |
13 | Of which non-assessed exposures 76 | - |  |  |  |  |  |  |  |

Template 2. GAR - Sector Information - Turnover based [FY 2025]

Disclosure reference date 31.12.2025 |  |  |  |  |  |  |  |  |
a | b | c | d | e | f | g | h | i | j
Breakdown by sector – NACE 4 digits level (code and label) (In million Euro) | Total (gross) carrying amount | Of which taxonomy eligible | Of which taxonomy aligned | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resourc es (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and ecosystems (BIO)
1 | G47.73 Retail sale of pharmaceutical products | 767,5 | - | - | - | - | - | - | - | -
2 | H49.41 Freight transport by road | 385,4 | - | - | - | - | - | - | - | -
3 | F42.11 Construction of roads and motorways | 247,2 | 72,0 | 60,4 | 60,4 | - | - | - | - | -
4 | F41.20 Construction of residential and non-residential buildings | 194,7 | 0,0 | 0,0 | 0,0 | - | - | 0,0 | 0,0 | -
5 | G47.11 Non-specialised retail sale of predominately food, beverages or tobacco | 157,3 | - | - | - | - | - | - | - | -
6 | C25.62 Machining | 133,7 | - | - | - | - | - | - | - | -
7 | J62.01 Computer programming activities | 132,4 | 1,6 | 0,0 | 0,0 | - | - | - | - | -
8 | C29.10 Manufacture of motor vehicles | 111,2 | 60,2 | 5,7 | 5,2 | - | - | 0,5 | - | -
9 | F43.21 Electrical installation | 104,5 | - | - | - | - | - | - | - | -
10 | L68.20 Renting and operating of own or leased real estate | 97,0 | 0,4 | 0,0 | 0,0 | - | - | - | - | -
11 | Nuclear activities 77 | 1.000,6 | 0,4 | 0,3 |  |  |  |  |  |
12 | Fossil gas activities 78 | 1.079,4 | 2,0 | 0,0 |  |  |  |  |  |
13 | Of which non-assessed exposures 79 | - |  |  |  |  |  |  |  |

74 Referred to in Sections 4.26, 4.27 and 4.28 of Annexes I and II of Delegated Regulation 2021/2139.
75 Referred to in Sections 4.29, 4.30 and 4.31 of Annexes I and II of Delegated Regulation 2021/2139.
76 In accordance with Article 7(8) of Delegated Regulation 2021/2178.
77 Referred to in Sections 4.26, 4.27 and 4.28 of Annexes I and II of Delegated Regulation 2021/2139.
78 Referred to in Sections 4.29, 4.30 and 4.31 of Annexes I and II of Delegated Regulation 2021/2139.
79 In accordance with Article 7(8) of Delegated Regulation 2021/2178.
330
Template 3. GAR KPI stock - Capex based [FY 2025]

Disclosure reference date 31.12.2025 |  |  |  |  |  |  |  |  |  |  |  |  |
% (compared to corresponding total covered assets in the denominator) | a | b | c | d | e | f | g | h | i | j | k | l | m
Taxonomy eligible |  | Proportion of Taxonomy aligned in Taxonomy eligible | Non-assessed exposures 80
Taxonomy aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and ecosystems (BIO)
1 | GAR – Covered assets in both numerator and denominator | 19,8% | 7,1% | 6,6% | 0,3% | 0,1% | 0,1% | 0,0% | 0,0% | - | 0,1% | 4,1% | 35,6% | -
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 19,2% | 6,9% | 6,5% | 0,3% | 0,1% | 0,0% | 0,0% | 0,0% | - | 0,1% | 4,1% | 35,7% | -
3 | Financial undertakings | 3,6% | 0,4% | 0,4% | 0,0% | 0,0% | 0,0% | 0,0% | 0,0% | - | 0,0% | 0,1% | 11,0% | -
4 | Loans and advances | 0,7% | 0,1% | 0,1% | 0,0% | 0,0% | 0,0% | - | 0,0% | - | 0,0% | 0,0% | 12,0% | -
5 | Debt securities, including UoP | 2,4% | 0,3% | 0,3% | 0,0% | 0,0% | 0,0% | 0,0% | 0,0% | - | 0,0% | 0,0% | 10,8% | -
6 | Equity instruments | 0,6% | 0,1% | 0,1% | 0,0% | 0,0% | - | - | - |  | 0,0% | 0,0% | 10,6% | -
7 | Non-financial undertakings | 10,5% | 6,1% | 5,7% | 0,3% | 0,1% | 0,0% | 0,0% | 0,0% | - | 0,1% | 4,0% | 58,1% | -
8 | Loans and advances | 9,0% | 5,2% | 4,8% | 0,3% | 0,1% | 0,0% | 0,0% | 0,0% | - | 0,1% | 3,6% | 58,2% | -
9 | Debt securities, including UoP | 0,9% | 0,4% | 0,4% | 0,0% | - | 0,0% | - | - | - | 0,0% | 0,1% | 45,1% | -
10 | Equity instruments | 0,7% | 0,5% | 0,5% | 0,0% | 0,0% | 0,0% | 0,0% | - |  | 0,0% | 0,4% | 71,7% | -
11 | Households | 5,1% | 0,4% | 0,4% | - |  | - |  |  | - | - | - | 7,1% | -
12 | of which loans collateralised by residential immovable property | 3,8% | 0,4% | 0,4% | - |  | - |  |  | - | - | - | 9,5% | -
13 | of which building renovation loans | - | - | - | - |  | - |  |  | - | - | - | - | -
14 | of which motor vehicles loans | 1,3% | - | - |  |  |  |  |  | - | - | - | - | -
15 | Local government financing | - | - | - | - | - | - | - | - | - | - | - | - | -
16 | Housing financing | - | - | - | - |  | - |  |  | - | - | - | - | -
17 | Other local government financing | - | - | - | - | - | - | - | - | - | - | - | - | -
18 | Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | - | - | - | - | -
19 | Exposures included on a voluntary basis 81 | 0,6% | 0,2% | 0,1% | 0,0% |  | 0,0% |  |  | - | - | 0,1% | 30,8% |
20 | Total GAR assets | 19,8% | 7,1% | 6,6% | 0,3% | 0,1% | 0,1% | 0,0% | 0,0% | - | 0,1% | 4,1% | 35,6% | -

80 In accordance with Article 7(8) of Delegated Regulation 2021/2178.
81 In accordance with Article 7(3) of Delegated Regulation 2021/2178.
331
Template 3. GAR KPI stock - Turnover based [FY 2025]

Disclosure reference date 31.12.2025 |  |  |  |  |  |  |  |  |  |  |  |  |
% (compared to corresponding total covered assets in the denominator) | a | b | c | d | e | f | g | h | i | j | k | l | m
Taxonomy eligible |  | Proportion of Taxonomy aligned in Taxonomy eligible | Non-assessed exposures 82
Taxonomy aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and ecosystems (BIO)
1 | GAR – Covered assets in both numerator and denominator | 18,5% | 4,8% | 4,7% | 0,0% | 0,0% | 0,0% | 0,0% | - | - | 0,2% | 1,2% | 25,8% | -
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 17,9% | 4,7% | 4,6% | 0,0% | 0,0% | 0,0% | 0,0% | - | - | 0,2% | 1,2% | 26,1% | -
3 | Financial undertakings | 3,6% | 0,3% | 0,3% | 0,0% | 0,0% | 0,0% | 0,0% | - | - | 0,0% | 0,0% | 9,4% | -
4 | Loans and advances | 0,7% | 0,1% | 0,1% | 0,0% | 0,0% | 0,0% | 0,0% | - | - | 0,0% | 0,0% | 7,9% | -
5 | Debt securities, including UoP | 2,4% | 0,2% | 0,2% | 0,0% | 0,0% | 0,0% | 0,0% | - | - | 0,0% | 0,0% | 9,7% | -
6 | Equity instruments | 0,6% | 0,1% | 0,1% | 0,0% | - | - | - | - |  | 0,0% | 0,0% | 9,7% | -
7 | Non-financial undertakings | 9,2% | 4,0% | 3,9% | 0,0% | 0,0% | 0,0% | 0,0% | - | - | 0,2% | 1,1% | 43,1% | -
8 | Loans and advances | 7,9% | 3,4% | 3,4% | 0,0% | 0,0% | 0,0% | 0,0% | - | - | 0,2% | 0,8% | 43,1% | -
9 | Debt securities, including UoP | 0,8% | 0,2% | 0,2% | - | - | 0,0% | - | - | - | 0,0% | 0,0% | 28,5% | -
10 | Equity instruments | 0,5% | 0,3% | 0,3% | - | - | 0,0% | 0,0% | - |  | 0,0% | 0,3% | 63,1% | -
11 | Households | 5,1% | 0,4% | 0,4% | - |  | - |  |  | - | - | - | 7,1% | -
12 | of which loans collateralised by residential immovable property | 3,8% | 0,4% | 0,4% | - |  | - |  |  | - | - | - | 9,5% | -
13 | of which building renovation loans | - | - | - | - |  | - |  |  | - | - | - | - | -
14 | of which motor vehicles loans | 1,3% | - | - |  |  |  |  |  | - | - | - | - | -
15 | Local government financing | - | - | - | - | - | - | - | - | - | - | - | - | -
16 | Housing financing | - | - | - | - |  | - |  |  | - | - | - | - | -
17 | Other local government financing | - | - | - | - | - | - | - | - | - | - | - | - | -
18 | Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - |  | - |  |  | - | - | - | - | -
19 | Exposures included on a voluntary basis 83 | 0,6% | 0,1% | 0,1% | 0,0% |  | 0,0% |  |  | - | - | 0,0% | 18,6% |
20 | Total GAR assets | 18,5% | 4,8% | 4,7% | 0,0% | 0,0% | 0,0% | 0,0% | - | - | 0,2% | 1,2% | 25,8% | -

82 In accordance with Article 7(8) of Delegated Regulation 2021/2178.
83 In accordance with Article 7(3) of Delegated Regulation 2021/2178.
332
Template 4. GAR KPI flow - Capex based [FY 2025]

Disclosure reference date 31.12.2025 |  |  |  |  |  |  |  |  |  |  |  |  |
% (compared to corresponding total covered assets in the denominator) | a | b | c | d | e | f | g | h | i | j | k | l | m
Taxonomy eligible |  | Proportion of Taxonomy aligned in Taxonomy eligible | Non-assessed exposures 84
Taxonomy aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and ecosystems (BIO)
1 | GAR – Covered assets in both numerator and denominator | 16,8% | 2,4% | 2,4% | 0,0% | 0,0% | 0,0% | 0,0% | 0,0% | - | 0,1% | 0,8% | 14,5% | -
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 16,5% | 2,4% | 2,3% | 0,0% | 0,0% | 0,0% | 0,0% | 0,0% | - | 0,1% | 0,8% | 14,4% | -
3 | Financial undertakings | 14,2% | 1,7% | 1,7% | 0,0% | 0,0% | 0,0% | 0,0% | 0,0% | - | 0,1% | 0,6% | 12,3% | -
4 | Loans and advances | 13,8% | 1,7% | 1,7% | 0,0% | 0,0% | 0,0% | 0,0% | 0,0% | - | 0,1% | 0,6% | 12,4% | -
5 | Debt securities, including UoP | 0,1% | 0,0% | 0,0% | 0,0% | 0,0% | 0,0% | 0,0% | 0,0% | - | 0,0% | 0,0% | 9,5% | -
6 | Equity instruments | 0,3% | 0,0% | 0,0% | 0,0% | 0,0% | 0,0% | 0,0% | 0,0% |  | 0,0% | 0,0% | 11,0% | -
7 | Non-financial undertakings | 2,2% | 0,6% | 0,6% | 0,0% | 0,0% | 0,0% | 0,0% | - | - | 0,0% | 0,2% | 28,4% | -
8 | Loans and advances | 2,0% | 0,5% | 0,5% | 0,0% | 0,0% | 0,0% | 0,0% | - | - | 0,0% | 0,1% | 24,7% | -
9 | Debt securities, including UoP | 0,0% | 0,0% | 0,0% | - | - | 0,0% | - | - | - | 0,0% | 0,0% | 17,9% | -
10 | Equity instruments | 0,2% | 0,1% | 0,1% | 0,0% | 0,0% | 0,0% | 0,0% | - |  | 0,0% | 0,1% | 63,0% | -
11 | Households | 0,1% | 0,0% | 0,0% | - |  | - |  |  | - | - | - | 4,7% | -
12 | of which loans collateralised by residential immovable property | 0,0% | 0,0% | 0,0% | - |  | - |  |  | - | - | - | 19,8% | -
13 | of which building renovation loans | - | - | - | - |  | - |  |  | - | - | - | - | -
14 | of which motor vehicles loans | 0,1% | - | - |  |  |  |  |  | - | - | - | - | -
15 | Local government financing | - | - | - | - |  | - |  |  | - | - | - | - | -
16 | Housing financing | - | - | - | - |  | - |  |  | - | - | - | - | -
17 | Other local government financing | - | - | - | - |  | - |  |  | - | - | - | - | -
18 | Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - |  | - |  |  | - | - | - | - | -
19 | Exposures included on a voluntary basis 85 | 0,3% | 0,0% | 0,0% | - |  | 0,0% |  |  | - | - | 0,0% | 18,5% |
20 | Total GAR assets | 16,8% | 2,4% | 2,4% | 0,0% | 0,0% | 0,0% | 0,0% | 0,0% | - | 0,1% | 0,8% | 14,5% | -

84 In accordance with Article 7(8) of Delegated Regulation 2021/2178.
85 In accordance with Article 7(3) of Delegated Regulation 2021/2178.
333
Template 4. GAR KPI flow - Turnover based [FY 2025]

Disclosure reference date 31.12.2025 |  |  |  |  |  |  |  |  |  |  |  |  |
% (compared to corresponding total covered assets in the denominator) | a | b | c | d | e | f | g | h | i | j | k | l | m
Taxonomy eligible |  | Proportion of Taxonomy aligned in Taxonomy eligible | Non-assessed exposures 86
Taxonomy aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and ecosystems (BIO)
1 | GAR – Covered assets in both numerator and denominator | 15,9% | 1,7% | 1,6% | 0,0% | 0,0% | 0,0% | 0,0% | - | - | 0,0% | 0,4% | 10,5% | -
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 15,7% | 1,6% | 1,6% | 0,0% | 0,0% | 0,0% | 0,0% | - | - | 0,0% | 0,4% | 10,4% | -
3 | Financial undertakings | 14,1% | 1,4% | 1,4% | 0,0% | 0,0% | 0,0% | 0,0% | - | - | 0,0% | 0,3% | 9,7% | -
4 | Loans and advances | 13,7% | 1,3% | 1,3% | 0,0% | 0,0% | 0,0% | 0,0% | - | - | 0,0% | 0,2% | 9,7% | -
5 | Debt securities, including UoP | 0,1% | 0,0% | 0,0% | 0,0% | 0,0% | 0,0% | 0,0% | - | - | 0,0% | 0,0% | 8,2% | -
6 | Equity instruments | 0,3% | 0,0% | 0,0% | 0,0% | 0,0% | 0,0% | 0,0% | - |  | 0,0% | 0,0% | 9,8% | -
7 | Non-financial undertakings | 1,5% | 0,3% | 0,2% | 0,0% | 0,0% | 0,0% | 0,0% | - | - | 0,0% | 0,1% | 17,0% | -
8 | Loans and advances | 1,4% | 0,2% | 0,2% | 0,0% | 0,0% | 0,0% | 0,0% | - | - | 0,0% | 0,0% | 13,6% | -
9 | Debt securities, including UoP | 0,0% | 0,0% | 0,0% | - | - | 0,0% | - | - | - | - | 0,0% | 12,3% | -
10 | Equity instruments | 0,2% | 0,1% | 0,1% | - | 0,0% | 0,0% | 0,0% | - |  | 0,0% | 0,1% | 44,3% | -
11 | Households | 0,1% | 0,0% | 0,0% | - |  | - |  |  | - | - | - | 4,7% | -
12 | of which loans collateralised by residential immovable property | 0,0% | 0,0% | 0,0% | - |  | - |  |  | - | - | - | 19,8% | -
13 | of which building renovation loans | - | - | - | - |  | - |  |  | - | - | - | - | -
14 | of which motor vehicles loans | 0,1% | - | - |  |  |  |  |  | - | - | - | - | -
15 | Local government financing | - | - | - | - |  | - |  | - | - | - | - | - | -
16 | Housing financing | - | - | - | - |  | - |  |  | - | - | - | - | -
17 | Other local government financing | - | - | - | - |  | - |  | - | - | - | - | - | -
18 | Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - |  | - |  |  | - | - | - | - | -
19 | Exposures included on a voluntary basis 87 | 0,1% | 0,0% | 0,0% | - |  | 0,0% |  |  | - | - | 0,0% | 18,3% |
20 | Total GAR assets | 15,9% | 1,7% | 1,6% | 0,0% | 0,0% | 0,0% | 0,0% | - | - | 0,0% | 0,4% | 10,5% | -

86 In accordance with Article 7(8) of Delegated Regulation 2021/2178.
87 In accordance with Article 7(3) of Delegated Regulation 2021/2178.
334
Template 5. KPI off-balance sheet exposures - Capex based (Stock) [FY 2025]
Disclosure reference date 31.12.2025
% (compared to corresponding total off-balance sheet assets)
a
b
c
d
e
f
g
h
i
j
k
j
Taxonomy eligible
Taxonomy aligned
Non-assessed exposures 88
Breakdown per environmental objective
Of which Use of Proceeds
Of which transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and ecosystems (BIO)
1
Financial guarantees (FinGuar KPI)
-
-
-
-
-
-
-
-
-
-
-
-
2
Assets under management (AuM KPI).
34,5%
9,6%
8,7%
0,6%
0,0%
0,2%
0,1%
0,0%
-
0,8%
4,1%
-
Template 5. KPI off-balance sheet exposures – Turnover based (Stock) [FY 2025]

Disclosure reference date 31.12.2025 |  |  |  |  |  |  |  |  |  |  |  |
% (of corresponding total off-balance sheet assets) | a | b | c | d | e | f | g | h | i | j | k | j
Taxonomy eligible |  | Non-assessed exposures 89
Taxonomy aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and ecosystems (BIO)
1 | Financial guarantees (FinGuar KPI) | - | - | - | - | - | - | - | - | - | - | - | -
2 | Assets under management (AuM KPI). | 29,9% | 6,2% | 5,6% | 0,1% | 0,0% | 0,3% | 0,1% | - | - | 0,5% | 2,8% | -

Template 5. KPI off-balance sheet exposures – Capex based (Flow) [FY 2025]

Disclosure reference date 31.12.2025 |  |  |  |  |  |  |  |  |  |  |  |
% (of corresponding total off-balance sheet assets) | a | b | c | d | e | f | g | h | i | j | k | j
Taxonomy eligible |  | Non-assessed exposures 90
Taxonomy aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and ecosystems (BIO)
1 | Financial guarantees (FinGuar KPI) | - | - | - | - | - | - | - | - | - | - | - | -
2 | Assets under management (AuM KPI). | 24,6% | 4,6% | 4,3% | 0,1% | 0,0% | 0,1% | 0,0% | 0,0% | - | 0,2% | 2,6% | -

Template 5. KPI off-balance sheet exposures – Turnover based (Flow) [FY 2025]

Disclosure reference date 31.12.2025 |  |  |  |  |  |  |  |  |  |  |  |
% (of corresponding total off-balance sheet assets) | a | b | c | d | e | f | g | h | i | j | k | j
Taxonomy eligible |  | Non-assessed exposures 91
Taxonomy aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and ecosystems (BIO)
1 | Financial guarantees (FinGuar KPI) | - | - | - | - | - | - | - | - | - | - | - | -
2 | Assets under management (AuM KPI). | 18,9% | 3,5% | 3,2% | 0,0% | 0,0% | 0,1% | 0,0% | - | - | 0,1% | 2,1% | -

88 In accordance with Article 7(8) of Delegated Regulation 2021/2178.
89 In accordance with Article 7(8) of Delegated Regulation 2021/2178.
90 In accordance with Article 7(8) of Delegated Regulation 2021/2178.
91 In accordance with Article 7(8) of Delegated Regulation 2021/2178.
335
5.2 Disclosure requirements in ESRS covered by the undertaking’s Sustainability Statement
[IRO-2 DP 56]
The table below provides details of the regulatory obligations reported within the Consolidated Sustainability Statement, indicating their reference within the document.
Disclosure requirement
Sections in the Consolidated Sustainability Statement
ESRS 2 – General disclosures
BP-1
General basis for preparation of sustainability statements
1.1.1 Basis for preparation
BP-2
Disclosure in relation to specific circumstances
1.1.1 Basis for preparation
GOV-1
Role of the administrative, management and supervisory bodies
1.1.3 Governance
GOV-2
Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies
1.1.3 Governance
GOV-3
Integration of sustainability-related performance in incentive schemes
1.1.3 Governance
GOV-4
Statement on due diligence
1.1.3 Governance
GOV-5
Risk management and internal controls over the Sustainability Statement
1.1.3 Governance
SBM-1
Strategy, business model and value chain
1.1.2 Strategy
SBM-2
Interests and views of stakeholders
1.1.2 Strategy
SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business model
1.1.4 Impact, risk and opportunity management: Double materiality assessment
IRO-1
Description of the processes to identify and assess material impacts, risks and opportunities
1.1.4 Impact, risk and opportunity management: Double materiality assessment
IRO-2
Disclosure requirements in ESRS covered by the undertaking’s Sustainability Statement
5.2 Disclosure requirements in ESRS covered by the undertaking’s Sustainability Statement
ESRS E1 - Climate change
ESRS 2, GOV-3
Integration of sustainability-related performance in incentive schemes
1.1.3 Governance
E1-1
Transition plan for climate change mitigation
2.2.1 Transition Plan
ESRS 2, SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business model
2.2.2 Energy, Adaptation and Mitigation of Climate Change
336
Disclosure requirement
Sections in the Consolidated Sustainability Statement
(Material impacts, risks and opportunities)
ESRS 2, IRO-1
Description of the processes to identify and assess material impacts, risks and opportunities
1.1.4 Impact, risk and opportunity management: Double materiality assessment
E1-2
Policies related to climate change mitigation and adaptation
2.2.2 Energy, Adaptation and Mitigation of Climate Change (The approach and reference policies)
E1-3
Actions and resources in relation to climate change policies
2.2.2 Energy, adaptation and mitigation of climate change (Actions)
E1-4
Targets related to climate change mitigation and adaptation
2.2.3 Targets
E1-5
Energy consumption and mix
2.2.4 Metrics
E1-6
Gross Scopes 1, 2, 3 and Total GHG emissions
2.2.4 Metrics
ESRS E4 - Biodiversity and ecosystems
E4-2
Policies related to biodiversity and ecosystems
2.3 E4 - Biodiversity and ecosystems (The approach and reference policies)
ESRS S1 - Own workforce
XX
ESRS 2, SBM-2
Interests and views of stakeholders
1.1.2 Strategy
ESRS 2, SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business model
3.1 S1 - Own workforce (Material impacts, risks and opportunities)
S1-1
Policies related to own workforce
3.1.1 Health and safety; 3.1.2 Work-life balance; 3.1.3 Training and skills development; 3.1.4 Equal treatment and opportunities for all; 3.1.5 Working conditions; 3.1.6 Other work-related rights (privacy) (The Group's approach and policies)
S1-2
Processes for engaging with own workers and workers' representatives about impacts
3.1.7 Engagement processes
S1-3
Processes to remediate negative impacts and channels for own workers to raise concerns
3.1.8 Channels
S1-4
Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material
3.1.1 Health and safety; 3.1.2 Work-life balance; 3.1.3 Training and skills development; 3.1.4 Equal treatment
337
Disclosure requirement
Sections in the Consolidated Sustainability Statement
opportunities related to own workforce, and effectiveness of those actions
and opportunities for all; 3.1.5 Working conditions; 3.1.6 Other work-related rights (privacy) (Actions)
S1-5
Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
3.1.9 Targets
S1-6
Characteristics of the company's employees
3.1.10 Metrics
S1-7
Characteristics of non- employee workers in the undertaking’s own workforce
3.1.10 Metrics
S1-8
Collective bargaining coverage and social dialogue
3.1.10 Metrics
S1-9
Diversity metrics
3.1.10 Metrics
S1-10
Adequate wages
3.1.10 Metrics
S1-11
Social protection
3.1.10 Metrics
S1-12
People with disabilities
3.1.10 Metrics
S1-13
Training and skills development metrics
3.1.10 Metrics
S1-14
Health and safety metrics
3.1.10 Metrics
S1-15
Work-life balance metrics
3.1.10 Metrics
S1-16
Compensation metrics (pay gap and total compensation)
3.1.10 Metrics
S1-17
Incidents, complaints and severe human rights impacts
3.1.10 Metrics
ESRS S2 - Workers in the value chain
ESRS 2, SBM-2
Interests and views of stakeholders
1.1.2 Strategy
ESRS 2, SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business model
3.2 S2 - Workers in the value chain (Material impacts, risks and opportunities)
S2-1
Policies related to value chain workers
3.2.1 Worker-related rights in the value chain (Group approach and policies)
S2-3
Processes to remediate negative impacts and channels for value chain workers to raise concerns
3.2.2 Channels
S2-4
Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material
3.2.1 Worker-related rights in the value chain (Actions)
338
Disclosure requirement
Sections in the Consolidated Sustainability Statement
opportunities related to value chain workers, and effectiveness of those actions
S2-5
Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
3.2.3 Targets
ESRS S3 - Affected communities
ESRS 2, SBM-2
Interests and views of stakeholders
1.1.2 Strategy
ESRS 2, SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business model
3.1 S3 - Affected communities (Material impacts, risks and opportunities)
S3-1
Policies on affected communities
3.3.1 Commitment to affected communities (Approach and reference policies)
S3-2
Processes for engaging with affected communities about impacts
3.3.2 Engagement processes
S3-4
Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions
3.3.1 Commitment to affected communities (Actions)
S3-5
Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
3.3.3 Targets
ESRS S4 - Consumers and end-users
ESRS 2, SBM-2
Interests and views of stakeholders
1.1.2 Strategy
ESRS 2, SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business model
3.1 S4 - Consumers and end-users (Material impacts, risks and opportunities)
S4-1
Policies related to consumers and end-users
3.4.1 Digitalisation and access to (quality) information; 3.4.2 Privacy; 3.4.3 Access to products and services; 3.4.4 Responsible marketing practices (Approach and reference policies)
S4-2
Processes for engaging with consumers and end- users about impacts
3.4.5 Engagement processes
S4-3
Processes to remediate negative impacts and channels for consumers and end-users to raise concerns
3.4.6 Channels
339
Disclosure requirement
Sections in the Consolidated Sustainability Statement
S4-4
Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions
3.4.1 Digitalisation and access to (quality) information; 3.4.2 Privacy; 3.4.3 Access to products and services; 3.4.4 Responsible marketing practices (Actions)
S4-5
Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
3.4.7 Targets
ESRS G1 - Business conduct
ESRS 2, GOV-1
Role of the administrative, management and supervisory bodies
1.1.3 Governance
ESRS 2, IRO-1
Description of the processes to identify and assess material impacts, risks and opportunities
1.1.4 Impact, risk and opportunity management: Double materiality assessment
G1-1
Business conduct policies and corporate culture
4.1.1 Corporate Culture and Protection of Whistleblowers; 4.1.3 Corruption and bribery; 4.1.4 Political influence and lobbying activities (Approach and reference policies)
G1-2
Management of relations with suppliers
4.1.2 Management of relations with suppliers
G1-3
Prevention and detection of corruption and bribery
4.1.3 Corruption and bribery
G1-4
Established cases of corruption or bribery
4.1.6 Metrics
G1-5
Political influence and lobbying activities
4.1.6 Metrics
G1-6
Payment practices
4.1.6 Metrics
[IRO-2 DP 56]

Disclosure Requirement and corresponding information | SFDR reference (1) | Third pillar reference (2) | Benchmark regulation reference (3) | EU climate law reference (4) | Sections in the Consolidated Sustainability Statement
ESRS 2 GOV-1 Gender diversity in the board, paragraph 21, letter d) | X |  | X |  | 1.1.3 Governance
ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21, letter e) |  |  | X |  | 1.1.3 Governance
ESRS 2 GOV-4 Statement on due diligence paragraph 30 | X |  |  |  | 1.1.3 Governance

340

Disclosure Requirement and corresponding information | SFDR reference (1) | Third pillar reference (2) | Benchmark regulation reference (3) | EU climate law reference (4) | Sections in the Consolidated Sustainability Statement
ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities, paragraph 40, letter d), point i) | X | X | X |  | Not material
ESRS 2 SBM-1 Involvement in activities related to the production of chemicals, paragraph 40, letter d), point ii) | X |  | X |  | Not material
ESRS 2 SBM-1 Participation in activities related to controversial weapons, paragraph 40, letter d), point iii) | X |  | X |  | Not material
ESRS 2 SBM-1 Involvement in activities related to tobacco cultivation and production, paragraph 40, letter d), point iv) |  |  | X |  | Not material
ESRS E1-1 Transition Plan to achieve climate neutrality by 2050, paragraph 14 |  |  |  | X | 2.2.1 Transition Plan
ESRS E1-1 Enterprises excluded from benchmarks aligned with the Paris Agreement, paragraph 16, letter g) |  | X | X |  | 2.2.1 Transition Plan
ESRS E1-4 GHG emission reduction targets, paragraph 34 | X | X | X |  | 2.2.3 Targets
ESRS E1-5 Energy consumption from fossil fuels disaggregated by source (high climate impact sectors only), paragraph 38 | X |  |  |  | Not material
ESRS E1-5 Energy consumption and mix, paragraph 37 | X |  |  |  | 2.2.4 Metrics
ESRS E1-5 Energy intensity associated with activities in high climate impact sectors, paragraphs 40 to 43 | X |  |  |  | Not material
ESRS E1-6 Gross scopes 1, 2, 3 and total GHG emissions, paragraph 44 | X | X | X |  | 2.2.4 Metrics
ESRS E1-6 Gross GHG emissions intensity, paragraphs 53 to 55 | X | X | X |  | 2.2.4 Metrics Paragraph
ESRS E1-7 GHG absorption and carbon credits, paragraph 56 |  |  |  | X | Not material
ESRS E1-9 Exposure of the benchmark index portfolio to physical climate-related risks, paragraph 66 |  |  | X |  | Phase-in
ESRS E1-9 Breakdown of monetary amounts by acute and chronic physical risk, paragraph 66, letter a)ESRS E1-9 Location of significant physical risk assets, paragraph 66, letter c) |  | X |  |  | Phase-in

341

Disclosure Requirement and corresponding information | SFDR reference (1) | Third pillar reference (2) | Benchmark regulation reference (3) | EU climate law reference (4) | Sections in the Consolidated Sustainability Statement
ESRS E1-9 Breakdown of the carrying amount of its real estate assets by energy efficiency classes, paragraph 67, letter c) |  | X |  |  | Phase-in
ESRS E1-9 Degree of portfolio exposure to climate-related opportunities, paragraph 69 |  |  | X |  | Phase-in
ESRS E2-4 Amount of each pollutant listed in Annex II of E-PRTR (European Pollutant Release and Transfer Register) emitted to air, water and land, paragraph 28 | X |  |  |  | Not material
ESRS E3-1 Water and marine resources, paragraph 9 | X |  |  |  | Not material
ESRS E3-1 Dedicated policy, paragraph 13 | X |  |  |  | Not material
ESRS E3-1 Sustainability of the oceans and seas paragraph 14 | X |  |  |  | Not material
ESRS E3-4 Total recycled and reused water, paragraph 28, letter c) | X |  |  |  | Not material
ESRS E3-4 Total water consumption in m3 compared to net revenues from own operations, paragraph 29 | X |  |  |  | Not material
ESRS 2 SBM-3 - E4 paragraph 16, letter a), point i) | X |  |  |  | Not material
ESRS 2 SBM-3 - E4 paragraph 16, letter b) | X |  |  |  | Not material
ESRS 2 SBM-3 - E4 paragraph 16, letter c) | X |  |  |  | Not material
ESRS E4-2 Sustainable agricultural/land-use policies or practices, paragraph 24, letter b) | X |  |  |  | Not material
ESRS E4-2 Sustainable sea/ocean use practices or policies, paragraph 24, letter c) | X |  |  |  | Not material
ESRS E4-2 Policies to address deforestation, paragraph 24, letter d) | X |  |  |  | Not material
ESRS E5-5 Non-recycled waste, paragraph 37, letter d) | X |  |  |  | Not material
ESRS E5-5 Hazardous waste and radioactive waste, paragraph 39 | X |  |  |  | Not material
ESRS 2 – SBM3 – S1 Risk of forced labour, paragraph 14, letter f) | X |  |  |  | Not material
ESRS 2 – SBM3 – S1 Risk of child labour, paragraph 14, letter g) | X |  |  |  | Not material

342

Disclosure Requirement and corresponding information | SFDR reference (1) | Third pillar reference (2) | Benchmark regulation reference (3) | EU climate law reference (4) | Sections in the Consolidated Sustainability Statement
ESRS S1-1 Political commitments to human rights, paragraph 20 | X |  |  |  | 3.1.5 Working conditions (Approach and reference policies)
ESRS S1-1 Due diligence policies on matters covered by Core Conventions 1 to 8 of the International Labour Organisation, paragraph 21 |  |  | X |  | 3.1.5 Working conditions (Approach and reference policies)
ESRS S1-1 Procedures and measures to prevent trafficking in human beings, paragraph 22 | X |  |  |  | 3.1.5 Working conditions (Approach and reference policies)
ESRS S1-1 Occupational accident prevention policy or management system, paragraph 23 | X |  |  |  | 3.1.1 Health and safety (Approach and reference policies)
ESRS S1-3 Mechanisms for handling complaints/reports, paragraph 32, letter c) | X |  |  |  | 3.1.8 Channels
ESRS S1-14 Number of deaths and number and rate of work-related injuries, paragraph 88, letters b) and c) | X |  | X |  | 3.1.10 Metrics
ESRS S1-14 Number of days lost due to injury, accident, fatality or illness, paragraph 88, letter e) | X |  |  |  | 3.1.10 Metrics
ESRS S1-16 Unadjusted gender pay gap, paragraph 97, letter a) | X |  | X |  | 3.1.10 Metrics
ESRS S1-16 Excessive pay gap in favour of the CEO, paragraph 97, letter b) | X |  |  |  | 3.1.10 Metrics
ESRS S1-17 Discrimination-related incidents, paragraph 103, letter a) | X |  |  |  | 3.1.10 Metrics
ESRS S1-17 Non-compliance with the UN Guiding Principles on Business and Human Rights and OECD, paragraph 104, letter a) | X |  | X |  | 3.1.10 Metrics
ESRS 2 SBM-3 – S2 Serious risk of child labour or forced labour in the labour chain, paragraph 11, letter b) | X |  |  |  | Not material
ESRS S2-1 Political commitments to human rights, paragraph 17 | X |  |  |  | 3.2.1 Worker-related rights in the value chain (Approach and reference policies)
Policies related to value chain workers, paragraph 18 | X |  |  |  | Not material
ESRS S2-1 Failure to comply with the UN Guiding Principles on Business and Human Rights and the OECD Guidelines, paragraph 19 | X |  | X |  | 3.2.1 Worker-related rights in the value chain (Approach and reference policies)

343

Disclosure Requirement and corresponding information | SFDR reference (1) | Third pillar reference (2) | Benchmark regulation reference (3) | EU climate law reference (4) | Sections in the Consolidated Sustainability Statement
ESRS S2-1 Due diligence policies on matters covered by Core Conventions 1 to 8 of the International Labour Organisation, paragraph 19 |  |  | X |  | 3.2.1 Worker-related rights in the value chain (Approach and reference policies)
ESRS S2-4 Human rights issues and incidents in its upstream and downstream value chain, paragraph 36 | X |  |  |  | 3.2.1 Worker-related rights in the value chain (Actions)
ESRS S3-1 Political commitments to human rights, paragraph 16 | X |  |  |  | 3.3.1 Commitment to affected communities (Approach and reference policies)
ESRS S3-1 Failure to comply with the UN Guiding Principles on Business and Human Rights, the ILO Principles or the OECD Guidelines, paragraph 17 | X |  | X |  | 3.3.1 Commitment to affected communities (Approach and reference policies)
ESRS S3-4 Human rights issues and incidents, paragraph 36 | X |  |  |  | 3.3.1 Commitment to affected communities (Actions)
ESRS S4-1 Policies related to consumers and end-users, paragraph 16 | X |  |  |  | 3.4.2 Privacy (Approach and reference policies)
ESRS S4-1 Failure to comply with the UN Guiding Principles on Business and Human Rights and the OECD Guidelines, paragraph 17 | X |  | X |  | 3.4.2 Privacy (Approach and reference policies)
ESRS S4-4 Human rights issues and incidents, paragraph 35 | X |  |  |  | 3.4.4 Responsible marketing practices (Actions)
ESRS G1-1 United Nations Convention against Corruption, paragraph 10, letter b) | X |  |  |  | Not material
ESRS G1-1 Protection of whistleblowers, paragraph 10, letter d) | X |  |  |  | Not material
ESRS G1-4 Fines imposed for violations of laws against corruption and bribery, paragraph 24, letter a) | X |  | X |  | 4.1.6 Metrics
ESRS G1-4 Rules for combating corruption and bribery, paragraph 24, letter b) | X |  |  |  | 4.1.6 Metrics

(1) Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability reporting in the financial services sector (SFDR) (OJ L 317, 09 December 2019, p. 1).
(2) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (regulation on capital requirements) (OJ L 176, 27 June 2013, p. 1).
(3) Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29 June 2016, p. 1).
(4) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulation (EC) No 401/2009 and Regulation (EU) 2018/1999 ('European Climate Regulation') (OJ L 243, 9 July 2021, p. 1).
344
5.3 Minimum disclosure requirements: MDR-P Policies overview
ESG Policy
Reference topic: E1 - E4 - S1 - S2 - S3 - S4 - G1
[MDR-P DP 65a,b,c,d,e,f, AR 14]

ESG Policy
Description of contents
The Banca Ifis Group's ESG Policy defines strategic sustainability guidelines, promoting the integration of ESG factors into its strategies and operations, actively involving suppliers, customers and stakeholders along the entire upstream and downstream value chain. The policy emphasises the focus on respect for universally recognised human rights, which the Group protects and promotes by incorporating them in the management of its activities and in its relations with employees and stakeholders.It also aims to foster the dissemination of a culture of sustainability, encouraging responsible behaviour among Group employees with the aim of generating value for all stakeholders. The policy promotes a safe, healthy and discrimination-free working environment for all Group employees, ensuring equal opportunities and combating forced labour.The application of the policy is monitored by the Board of Directors and is periodically updated to ensure that it is always in line with the Group's values, good practices and the context in which it operates.
Scope of reference
The policy is applied to all stakeholders and companies in the Banca Ifis Group and has also been formally adopted by the illimity Group; it actively involves suppliers, customers and stakeholders along the entire upstream and downstream value chain.
Validation of Senior Bodies
The policy is shared in advance with the Group Sustainability Committee and the Compliance Department, which is responsible for assessing its compliance with the framework, and is then finally approved by the Board of Directors.
Reference to recognised third-party initiatives and/or standards
The policy was developed in close connection with the main international standards, reflecting a global commitment to sustainability and social responsibility. In particular, the policy refers to the UN Universal Declaration of Human Rights and the 2030 Agenda for Sustainable Development with its 17 promoted global development goals (SDGs).
Stakeholder engagement
The Parent company is committed to maintaining, under the guidance of the Chair, a dialogue with relevant stakeholders in order to understand the needs of the various stakeholders and develop response strategies consistent with the pursuit of the Group's objectives in the field of sustainability, also in relation to external stakeholders, including its customers.
Availability modes
The policy is disseminated through its publication on the company intranet and website.

345
Environmental Policy
Reference topic: E1
[MDR-P DP 65a,b,c,d,e,f]

Environmental Policy
Description of contents
The policy outlines the Group's commitments to manage its direct and indirect environmental impacts. The Group aims to reduce the environmental impact of its operations by taking effective measures to improve energy efficiency, manage resources responsibly and reduce emissions. The policy defines the Group's commitments to energy efficiency in the locations, promotion of sustainable mobility, circular economy and protection of biodiversity.The Group periodically reviews the policy, adapting it to new needs and changes in its activities. To support it, an organisational model for managing environmental aspects is implemented, also aimed at preventing risks related to possible environmental crimes. Finally, Banca Ifis has actions in place to monitor, measure and verify compliance with legal obligations and commitments in the area of pollution reduction.
Scope of reference
The policy applies to all Group companies and has been formally implemented by Fürstenberg SIM (formerly Euclidea SIM).The illimity Group has its own Environmental and Climate Policy, well aligned with that of the Parent company, which defines the approach adopted to prevent, manage and reduce the environmental and climate impacts generated and/or suffered, directly or indirectly, related to its activities.
Validation of Senior Bodies
The policy is approved by the Board of Directors.
Reference to recognised third-party initiatives and/or standards
In implementing its banking activities and organisation from an ESG perspective, the Bank takes into account various regulations and third-party initiatives such as the UN Universal Declaration of Human Rights and Agenda 2030, the UN Global Compact, the recommendations of the TCFD and Directive (EU) 2022/2464.
Stakeholder engagement
The Group actively promotes a culture of sustainability among all its employees, encouraging their engagement through training, information and the clear definition of environmental responsibilities.
Availability modes
The policy is publicly available on the company website and intranet.

346
Credit Policy
Reference topic: E1 – E4
[MDR-P DP 65a,b,c,d,e,f]

Credit Policy
Description of contents
The policy aims to establish the principles and guidelines for the granting of credit, ensuring that the Banca Ifis Group's overall exposure to each counterparty complies with the document. With reference to ESG topics and in particular to sustainability analyses, which complement the client's credit assessment, the Banca Ifis Group has identified sectors classified as more risky to which it has associated enhanced underwriting mechanisms.Banca Ifis is committed to promoting financial solutions that support the balanced growth of customers and the stability of the economic system, with a direct impact on its own business and downstream customers.The monitoring of the ESG elements included in the policy envisages the updating, once a year, of the ESG risk analysis of the various economic sectors and the assignment of the corresponding risk class to any adjustments of the framework from an ESG perspective, justified by regulatory changes or managerial choices.
Scope of reference
The policy applies to all organisational units involved in the process.illimity Bank has a similar Single Credit Procedure, which is designed to define and regulate processes relating to lending activities. The procedure also integrates the consideration of ESG factors in the creditworthiness assessment for financing or investment opportunities for SMEs and large companies, regulating the processes for granting and monitoring credit in sectors with high greenhouse gas emissions and financing linked to ESG objectives of corporate clients.
Validation of Senior Bodies
The policy is approved by the Group's Board of Directors.
Reference to recognised third-party initiatives and/or standards
The policy is inspired by the regulations issued by the Bank of Italy, in particular Circular 285/13, which defines the guidelines for the internal control system and the management of risk appetite, through the Risk Appetite Framework (RAF). In addition, Bank of Italy Circular 288/15 regulates the prudential aspects applicable to financial intermediaries. The policy was subsequently updated in accordance with the 'Guidelines on Loan Origination and Monitoring' published by the European Banking Authority in May 2020, which regulate credit operations for the Banca Ifis Group's legal entities.
Stakeholder engagement
The drafting of the Credit Policy took place under the guidance of the Lending Department, with the support of the other internal functions, including Commercial & Corporate Banking Underwriting, Risk Management and Organisation.
Availability modes
The policy is made available on the company intranet.

347
Facility Management Procedure
Reference topic: E1 - S1
[MDR-P DP 65a,b,c,d,e,f, AR 14]

Facility Management Procedure
Description of contents
The Facility Management Procedure aims to regulate the proper management and maintenance of the buildings used by the illimity Group, the facilities and any attached equipment, with particular attention to environmental impacts and the management of natural resources. It also aims to promote concrete attention and individual behaviour consistent with the principles of good corporate governance and sustainable development.
Scope of reference
The procedure applies to the main entities of the illimity Group (illimity Bank, Fürstenberg SGR, ARECneprix and Abilio), for the parts falling under their responsibility and depending on the nature of the activity carried out by each subsidiary.
Validation of Senior Bodies
The procedure is approved by the CEO.
Reference to recognised third-party initiatives and/or standards
The procedure refers to national norms and international standards, including:•Italian Legislative Decree 231/2001, as amended, with regard to environmental offences and offences related to health and safety in the workplace;•Italian Legislative Decree 192/2005, as amended, concerning the improvement of the energy performance of buildings;•Italian Legislative Decree 81/2008 as amended and supplemented - Consolidation Act on the protection of health and safety in the workplace;•Environmental Consolidation Act, pursuant to Legislative Decree no. 152/2006 as amended.
Stakeholder engagement
In drafting the procedure, illimity's internal structures were involved and requests from investors, rating agencies and the expectations of supervisors and regulators were taken into account.
Availability modes
The procedure can be found in the 'Company regulations' portal within the company intranet and published, in Italian and English, on the illimity corporate website.

348
Company Health and Safety Policy
Reference topic: S1
[MDR-P DP 65a,b,c,d,e,f, AR 14]

Company Health and Safety Policy
Description of contents
The policy defines principles and guidelines for decisions on occupational health and safety, ensuring the appropriate use of up-to-date technology, identifying hazards related to activities, assessing them through analysis and audits, and adopting prevention and protection measures. The Bank operates in accordance with ergonomic principles and promotes training activities to make staff aware of their responsibilities. Banca Ifis periodically reviews the policy, updating the management and surveillance procedures to ensure their effectiveness and continuous improvement. The Group also has a specific procedure within the Integrated Safety and Environment Manual to manage incidents and accidents, with responsibilities, operating methods and analysis of events, taking improvement actions and adequate resources to maintain high health and safety standards.
Scope of reference
The policy, also incorporated by Fürstenberg SIM, applies to the entire company structure, which participates, according to its attributions and competences, in the achievement of the company's health and safety objectives, developing a culture of prevention and a safe working environment. The main operating companies of the illimity Group adopt specific procedures similar to the Banca Ifis policy, aimed at preventing occupational risks and ensuring a safe and welfare-oriented working environment for employees.
Validation of Senior Bodies
The policy, approved by the Board of Directors, establishes that responsibility is entrusted to the Prevention and Protection Service Manager (RSPP), the Prevention and Protection Service Manager (ASPP) and the Human Resources and General Services departments, each for the areas of their competence, under the delegation of the Employer.
Reference to recognised third-party initiatives and/or standards
The Integrated Safety and Environment Manual developed in the context of the policy, is drafted in compliance with current regulations, including Legislative Decree 81/08 (Safety Consolidation Act) and Legislative Decree 231/2001 (Administrative Liability of Entities) on occupational health and safety.
Stakeholder engagement
In defining its corporate health and safety policy, the Banca Ifis Group considers the interests of its main stakeholders, promoting the active participation of staff and the dissemination of a corporate culture based on prevention and safety at work.
Availability modes
The policy is made known and disseminated to all employees and is accessible to all interested parties on the Banca Ifis website.

349
Group Policy to promote diversity and inclusiveness
Reference topic: S1
[MDR-P DP 65a,b,c,d,e,f, AR 14]

Group Policy to promote diversity and inclusiveness
Description of contents
The policy formalises the principles on diversity and inclusion adopted by the Group, which guarantees equal opportunities to all Ifis People, promoting the inclusion of people with disabilities and enhancing their skills and talent.It supports interculturalism and respect for all religions, including in selection processes, by adopting an open and inclusive social model. Negative impacts on the workforce with regard to inclusiveness are prevented or mitigated through a management system, ensuring fair treatment for all employees and collaborators, without discrimination related to any condition, element or diversity characterising the person. Banca Ifis monitors the implementation of the policy and compliance with key national and international regulations through annual audits.
Scope of reference
The policy applies to all organisational units within the Group and has been formally implemented by Fürstenberg SIM and the illimity Group.The latter also has a Diversity, Equity & Inclusion Policy, similar to Banca Ifis's policy, which aims to promote an inclusive and meritocratic environment, where diversity is valued, equal opportunities are guaranteed, and leadership that fosters well-being and a sense of belonging for the workforce is encouraged.
Validation of Senior Bodies
The policy is approved by the Board of Directors on the recommendation of the Sustainability Committee and the Remuneration Committee.
Reference to recognised third-party initiatives and/or standards
The Banca Ifis Group has developed the policy considering the main national and international regulations, including the Universal Declaration of Human Rights, the SDGs of Agenda 2030, Bank of Italy Circular No. 285/2013 and Legislative Decree no. 58/1998, art. 147-ter.
Stakeholder engagement
The drafting of the Policy for the Promotion of Diversity and Inclusiveness involved the Human Resources function, with the support of Communications, Marketing, Public Affairs and Sustainability.
Availability modes
The policy is made available and accessible via the company website.

350
Group employee management policy
Reference topic: S1
[MDR-P DP 65a,b,c,d,e,f, AR 14]

Group employee management policy
Description of contents
The policy formalises the process of managing employees and collaborators (including administrative management) with particular reference to recruitment, evaluation and continuous training activities. These are necessary to ensure that staff are equipped with the skills and professionalism to carry out their responsibilities, as well as to define guidelines for work-life balance.The Policy is monitored several times during the year, at discussion and evaluation meetings within the Human Resources Department. In addition, with specific reference to gender equality aspects, application of the policy is also monitored through specific audits, as required by current legislation.
Scope of reference
The policy applies to all Group companies with registered offices in Italy and has been formally implemented by the illimity Group and Fürstenberg SIM. The application is also extended, where compatible with local and domestic regulations, to subsidiaries with registered offices abroad. From a subjective point of view, it is addressed to all employees and, as far as gender equality is concerned, also to all Group employees.
Validation of Senior Bodies
The policy is approved by the Board of Directors on the proposal of the Human Resources Department.
Reference to recognised third-party initiatives and/or standards
The policy is inspired by the principles enshrined in the Supervisory Provisions for Banks - Bank of Italy Circular No. 285/2013 and subsequent updates, in particular Part I, Title IV, Chapter 3, Section I, Paragraph 6.
Stakeholder engagement
The Human Resources Department drew up the Group Policy for the management of employees, with the support of the Organisation Department.
Availability modes
The policy is made available and accessible through the company intranet.

351
Policy to combat violence and harassment in the workplace
Reference topic: S1
[MDR-P DP 65a,b,c,d,e,f, AR 14]

Policy to combat violence and harassment in the workplace
Description of contents
The policy defines the ways in which Banca Ifis prevents and counteracts all forms of discrimination, harassment and violence, identifying appropriate prevention measures to promote a culture of respect and gender-sensitive language. The Bank adopts a zero-tolerance approach to unacceptable behaviour that may offend people's dignity: these are clearly defined, for better prevention and counteraction, and may result in disciplinary sanctions.For monitoring compliance with the policy, there is an external reporting channel managed by the Trust Adviser, an expert figure on issues of discrimination, violence and harassment at work, with psychological and legal expertise. This figure supports the reporting person in analysing the situation, protects his or her privacy and provides guidance on possible courses of action. Furthermore, upon request, it formulates opinions and recommendations to support the Human Resources function or internal bodies, in order to foster an organisational climate that respects people's dignity.
Scope of reference
The policy applies to all levels of the organisation, and has been formally implemented by Fürstenberg SIM and the illimity Group.The latter also operates consistently with the policy through the application of the specific Anti-Harassment Policy, which aims to prevent harassment at work by adopting zero tolerance towards inappropriate behaviour and monitoring compliance through anonymous surveys and reporting channels.
Validation of Senior Bodies
The policy is approved by the Board of Directors on the recommendation of the Sustainability Committee and the Remuneration Committee.
Reference to recognised third-party initiatives and/or standards
Banca Ifis follows the guidelines set out in various European and international legislation addressing equal treatment and the prevention of harassment in the workplace, including ILO Convention No. 190 and the EU Directives on Equal Treatment and Prevention of Harassment in the Workplace, ensuring a safe and respectful environment in line with international and EU regulations.
Stakeholder engagement
The drafting of the Policy for Combating Violence and Harassment in the Workplace was handled by the Human Resources function with the engagement of Communications, Marketing, Public Affairs and Sustainability.
Availability modes
The policy is made available and accessible via the company website.

352
Remuneration and incentive policy
Reference topic: S1
[MDR-P DP 65a,b,c,d,e,f, AR 14]

Remuneration and incentive policy
Description of contents
The policy aims to align the behaviour of management and staff with the interests of all stakeholders. It is inspired by the principles of gender neutrality and contributes to the pursuit of complete equality in the economic and regulatory treatment of staff, promoting fair remuneration for equal work. It also promotes sound risk management, encourages competitiveness in compliance with legal provisions and avoids conflicts of interest.
Scope of reference
The policy applies to all Banca Ifis stakeholders.The illimity Group, through its similar Remuneration Policy, aligns the interests of management and employees with those of stakeholders, maintaining a high focus on Gender Equity and employee engagement.Similarly, Fürstenberg SIM has a Remuneration and Incentive Policy that defines the criteria to be followed for the payment of variable remuneration to the different categories of employees. The Board of Directors adopts and reviews the policy at least annually and is responsible for its proper implementation.
Validation of Senior Bodies
The Board of Directors submits the policy to the Shareholders' Meeting, with the favourable opinion of the Sustainability Committee and the Remuneration Committee. The Board reviews these policies at least once a year and is responsible for their proper implementation.
Reference to recognised third-party initiatives and/or standards
The Remuneration Policy complies with the applicable statutory and regulatory provisions, including Regulation (EU) No. 575/2013, Implementing Regulation (EU) No. 637/2021, Bank of Italy Circular No. 285/2013, Article 123-ter of Legislative Decree no. 58/1998, Article 84-quater of the Regulation on Issuers and the Corporate Governance Code (2020).
Stakeholder engagement
The policy is prepared by the Human Resources Department with the support of Compliance and Risk Management.This Policy was defined by the Parent company with the aim of aligning the behaviour of management and staff with the interests of all stakeholders.
Availability modes
The Remuneration and Incentive Policy is published in the document 'Remuneration and Compensation Policy Report 2025' available on the company website.

353
Privacy regulatory manual
Reference topic: S1 – S4
[MDR-P DP 65a,b,c,d,e,f, AR 14]

Privacy regulatory manual
Description of contents
The manual defines the organisational model of privacy management and describes the set of guidelines and rules of conduct regarding the processing and protection of personal data in ordinary and extraordinary company operations. Through the application of the Manual, the Group aims to protect personal data processed by Banca Ifis and the Italian-registered companies it controls, including through appropriate technical and organisational measures.There is no periodic review process of the policy, while the process of monitoring its correct application is the responsibility of the control functions.
Scope of reference
The policy applies to all actors inside and outside the Group and is implemented not only by the Parent company, but also by its Italian-registered subsidiaries, including Fürstenberg SIM. For foreign subsidiaries, Banca Ifis provides guidelines consistent with what is set out in the Manual, as part of the exercise of its management and coordination powers.The illimity Group has a Privacy Policy aligned with the Manual, confirming the uniformity and consistency in the management of personal data protection in the Group.
Validation of Senior Bodies
The manual is approved by the Board of Directors.
Reference to recognised third-party initiatives and/or standards
Banca Ifis has developed the manual in full compliance with the principles of the General Data Protection Regulation (GDPR). Furthermore, the Bank undertakes to comply with all industry regulations, including codes of conduct promoted by trade associations (e.g. Unirec Code of Conduct in Credit Recovery Activities).
Stakeholder engagement
Banca Ifis considers respect of the principles of data protection to be essential, which is why it attaches great importance to the interests of its many stakeholders, both internal and external, and defines specific roles and responsibilities for each.
Availability modes
Banca Ifis has published an abstract of the manual on its corporate website.

354
Group Information Security management policy
Reference topic: S1 – S4
[MDR-P DP 65a,b,c,d,e,f, AR 14]

Group Information Security management policy
Description of contents
The Group Policy for IT Security Management defines the governance and oversight model for IT security, establishing principles, responsibilities and operating rules for the protection of the Group's information and IT assets. The policy governs the main requirements for ICT risk protection and control, the security processes and measures to be applied throughout the life cycle of IT resources, roles and responsibilities, and guidelines for communication, training and user awareness. Finally, the policy is reviewed and updated whenever new threats or significant changes in the ICT risk profile emerge, significant incidents occur, regulatory developments take place, or a cost-benefit analysis highlights the need to adjust the effectiveness and efficiency of security measures.
Scope of reference
The policy is applicable and disseminated, as far as it is applicable, to all organisational units of the Parent company and Group companies and has been formally implemented by Fürstenberg SIM.The illimity Group has an Information Security Policy, aligned with the Parent company's policy of safeguarding data privacy, integrity and availability. The IT security set-up and related protection procedures are subject to periodic checks and updates.
Validation of Senior Bodies
The policy is approved, on the proposal of the Chief Executive Officer, by the Parent company’s Board of Directors.
Reference to recognised third-party initiatives and/or standards
The IT Security Policy was developed in compliance with the main regulatory references in the sector, including the General Data Protection Regulation (GDPR), the Privacy Code and the Bank of Italy's supervisory provisions. In addition, the Bank implements the European Banking Authority (EBA) guidelines on ICT risk management and security and adopts the most relevant international standards, such as ISO/IEC 27001 and ISO/IEC 27002, as best practices to ensure an adequate level of protection of corporate information and information systems.
Stakeholder engagement
The policy was drafted by the Privacy & Security function. In addition, the same function, with the support of Organisation and in cooperation with Risk Management and Compliance, reports to the CEO of the Parent company any update requirements resulting from regulatory or organisational changes.The policy was drafted by the Privacy & Security function. In addition, the same function, with the support of Organisation and in cooperation with Risk Management and Compliance, reports to the CEO of the Parent company any update requirements resulting from regulatory or organisational changes.
Availability modes
The procedure is made available and accessible via the company intranet.

355
Organisational Procedure for the Transparency of banking and financial operations and services
Reference topic: S4
[MDR-P DP 65a,b,c,d,e,f]

Organisational Procedure for the Transparency of banking and financial operations and services
Description of contents
The procedure is designed to ensure compliance with current regulations on the transparency of banking transactions and services, identifying the main regulatory requirements and defining the operating methods by which each Group company fulfils these obligations.The Compliance department monitors compliance with applicable regulations through ongoing checks and audits, with the aim of assessing the effectiveness of the organisational measures prepared, proposed and implemented to manage the risk of non-compliance in every area where such risk is present.
Scope of reference
The procedure is applicable to all Banca Ifis Group companies offering banking products and services, as well as to all types of customers, including consumers, with whom the Group has dealings. illimity Bank has adopted a Policy on Transparency in Banking and Financial Transactions and Services aligned with the Parent company's procedure, by which it is committed to ensuring transparency in the offer of products and services to its customers, as well as to ensuring correct, clear and transparent management of relations with them.
Validation of Senior Bodies
The procedure is approved by the Joint Chief Operating Officer (COO).
Reference to recognised third-party initiatives and/or standards
The procedure is designed to ensure compliance with current regulations on the transparency of banking operations and services.
Stakeholder engagement
Banca Ifis requires the relevant corporate structures to provide feedback on the implementation of the identified corrective actions in the face of compliance findings or audits and on the timing of their implementation.
Availability modes
The procedure is made available and accessible via the company intranet.

356
Group Policy for approving new products and services, starting new operations, and entering new markets
Reference topic: S4
[MDR-P DP 65a,b,c,d,e,f]

Group Policy for approving new products and services, starting new operations, and entering new markets
Description of contents
The policy defines the principles governing the approval of new products and services, changes to existing products and services, whether proprietary or third-party, the launch of new activities, and the entry into new markets: The policy also regulates the principles governing its development, distribution and monitoring.
Scope of reference
The policy is applicable to all companies belonging to the Group and to all types of customers with whom the Group has relations, including consumers, and has been formally implemented by the illimity Group.
Validation of Senior Bodies
The policy is approved by the Board of Directors.
Reference to recognised third-party initiatives and/or standards
The policy is drawn up in accordance with the supervisory regulations on transparency.
Stakeholder engagement
The drafting of the Group Policy for the approval of new products and services, the start-up of new activities, and the entry into new markets was handled by the POG Contact Person.
Availability modes
The policy is made available and accessible through the company intranet.

357
Group Organisational Procedure - Management of marketing communications to customers
Reference topic: S4
[MDR-P DP 65a,b,c,d,e,f]

Group Organisational Procedure - Management of marketing communications to customers
Description of contents
The procedure governs the macro-process for the management of marketing communications to customers, giving the utmost importance to the decision-making flow, to the methods for selecting the target customers to be reached, to the privacy and transparency safeguards, to the controls envisaged in each activity and to the relevant actors involved.
Scope of reference
The procedure applies to Banca Ifis Group companies offering products and services and is extended to all types of customers, including consumers. All structures involved must comply with the requirements set out in the procedure.
Validation of Senior Bodies
The procedure is approved by the Joint Chief Operating Officer (COO).
Reference to recognised third-party initiatives and/or standards
The procedure is drawn up in compliance with the Supervisory Provisions on transparency and consumer protection, as well as in line with the regulations on the processing of personal data.
Stakeholder engagement
The procedure was prepared by the Digital Innovation & Advertising and Marketing & Business Strategy functions.
Availability modes
The procedure is made available and accessible via the company intranet.

358
Complaint Management Policy
Reference topic: S4
[MDR-P DP 65a,b,c,d,e,f]

Complaint Management Policy
Description of contents
illimity Bank adopts a policy on the management of customer complaints, which defines the principles and operating methods for receiving and handling reports from customers, with the aim of guaranteeing rapid and exhaustive responses, helping to overcome the critical issues encountered and safeguarding the quality of customer relations. This approach makes it possible to manage highlighted issues in a timely manner, preventing risks of non-compliance or operational malfunctions, and at the same time represents an opportunity to consolidate solid relationships based on trust over time, avoiding the recurrence of similar situations in the future.
Scope of reference
The policy applies to illimity Bank depending on its operations with corporate and retail customers to whom the Bank offers products and services.
Validation of Senior Bodies
The policy was issued by the Board of Directors of illimity and its latest update was approved by the CEO.
Reference to recognised third-party initiatives and/or standards
The Policy is aligned with current regulations on the handling of customer complaints.
Stakeholder engagement
The policy was developed through a collaborative process by illimity's internal compliance, human resources and organisational functions.
Availability modes
The policy is available on the illimity website and the company intranet portal.

359
Code of Ethics
Reference topic: G1 – S1 – S2 – S3 – S4 – G1
[MDR-P DP 65a,b,c,d,e,f, AR 14]

Code of Ethics
Description of contents
The Code of Ethics enhances working conditions, promoting an environment based on integrity, fairness, respect and enhancing of people and ensuring the protection of fundamental human and workers' rights, in accordance with current regulations. Through periodic discussions with the stakeholders concerned, the Group ensures that any negative impacts are identified at an early stage and that the most appropriate processes are identified to effectively remedy them through the Whistleblowing mechanism and the listening and dialogue tools put in place.The Group Code of Ethics in force today was approved on 22 December 2016 and updated constantly, most recently on 19 December 2024. Specifically, the revision aimed to update the document against the introduction of the Sensitive Sectors Policy.
Scope of reference
The rules and principles of the Code of Ethics apply to all those who work with the companies of the Banca Ifis Group, including directors, auditors, employees, suppliers, collaborators and contractual counterparties, even if they are involved on an occasional or non-continuous basis, such as secondees, interns and collaborators in various capacities.The Code of Ethics has also been formally adopted by Fürstenberg SIM and the illimity Group; the latter also has its own Code of Ethics, known as the illimity Way, through which its commitment to fundamental labour rights is reaffirmed, promoting a corporate culture based on integrity, sustainability, legality and long-term value.
Validation of Senior Bodies
The Code of Ethics is approved by the Board of Directors at the proposal of the CEO and implemented in the subsidiaries through internal instruments.
Reference to recognised third-party initiatives and/or standards
The Code is an integral part of the Organisational, Management and Control Models adopted pursuant to Italian Legislative Decree no. 231/2001.
Stakeholder engagement
The Code of Ethics aims at the active engagement of all workers, facilitated by continuous dialogue with trade union representatives.
Availability modes
The Code of Ethics is made available on the company intranet, in the "Regulations and Forms" section and on the company website.

360
Sensitive segments policy
Reference topic: E1 - G1
[MDR-P DP 65a,b,c,d,e,f]

Sensitive segments policy
Description of contents
The policy guides the proper orientation of the Group's banking activities in relation to areas that may involve ESG risks. The Bank has defined a rigorous approach to sectors considered sensitive, promoting responsible management of investments and operations towards activities potentially harmful to the environment, society and people. Specifically, sectors are identified as excluded if they are incompatible with the guidelines of the Group's Code of Ethics or if they present a high risk from an ESG perspective. Through this Policy, Banca Ifis aims to ensure that its operational choices are consistent with the principles of sustainability, while minimising exposure to risks from high-impact sectors. The policy is managed by the Process Owner, Communication, Marketing, Public Affairs & Sustainability, in collaboration with the Chief Commercial Officer (COO), the Chief Lending Officer (CLO) and Risk Management, who promotes its updating whenever the need arises.
Scope of reference
The latest version of the policy, approved in February 2025, applies to all Group companies and has been formally implemented by the illimity Group.
Validation of Senior Bodies
The policy is approved by the Board of Directors, with validation by the CEO.
Reference to recognised third-party initiatives and/or standards
The policy operates in line with the Group's Code of Ethics, complementing what is already regulated therein.
Stakeholder engagement
The policy provisions are addressed to all organisational units involved, which must comply with the contents according to their respective competences.
Availability modes
The Group actively promotes the knowledge and application of the Policy, making it accessible on the corporate intranet, in the "Regulations and Forms" section, and on the corporate website.

361
ESG Investment Policy (proprietary finance)
Reference topic: E1 - G1
[MDR-P DP 65a,b,c,d,e,f]

ESG Investment Policy (proprietary finance)
Description of contents
The ESG Investment Policy defines the strategic guidelines for the integration of ESG aspects into investment analysis and responsible investment decision-making processes of proprietary finance. This policy aims to reduce exposure to issuers whose behaviour is not aligned with illimity Bank's investment principles and strategy.
Scope of reference
The content of the Policy applies to investments in financial instruments such as, but not limited to, public and private debt and equity securities pertaining to the Investment Banking and Treasury business of illimity Bank as defined annually in the Investment Policy & Limits approved by the Board of Directors of illimity.
Validation of Senior Bodies
The policy is approved by the Board of Directors of illimity Bank.
Reference to recognised third-party initiatives and/or standards
The policy refers to international norms and standards, including:•Principles for Responsible Investments (PRI);•Principles for Responsible Banking (PRB);•Regulation (EU) 2020/852 (Taxonomy of Environmentally Friendly Economic Activities in the European Union);•Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability reporting in the financial services sector (the “Sustainable Finance Disclosure Regulation”);•Regulation (EU) 2023/2631 on European Green Bonds and Voluntary Disclosure for Bonds Marketed as Green Bonds and Sustainability Bonds;•Bank of Italy Supervisory Expectations on climate-related and environmental risks.
Stakeholder engagement
In drafting the Policy, the Bank's internal structures were involved, requests from investors and rating agencies were gathered, and supervisory and regulatory expectations were considered.
Availability modes
The policy can be found in the 'Company regulations' portal within the company intranet and published, in Italian and English, on the illimity corporate website.

Similarly, Fürstenberg SIM, as part of the implementation of its Sustainability Policy, aims to integrate environmental, social and governance criteria into its investment decision-making processes and advisory activities.
362
Anti-Money Laundering Policy
Reference topic: G1
MDR-P DP 65a,b,c,d,e,f]

Anti-Money Laundering Policy
Description of contents
The policy aims to define effective safeguards, processes and procedures to contribute to the fight against money laundering and terrorist financing, ensuring adequate active cooperation with the Supervisory Authorities. It sets out the organisational model and processes implemented by the Banca Ifis Group to manage and mitigate these risks, in accordance with current regulations. In particular, the Policy governs: organisational structures, procedures and internal controls, due diligence processes, the reporting of suspicious transactions the retention of data and the overall AML/CFT risk management process.The body with strategic supervisory functions of the Parent company and each subsidiary transposes the policy and ensures its effective implementation.The policy is updated by the Anti-Money Laundering Department according to changes in regulations, operational processes or reference information systems.
Scope of reference
The policy applies to all Group companies and has also been formally incorporated by Fürstenberg SIM, with exceptions subject to the prior approval of the body with strategic supervisory functions of the Parent company. The application of the policy follows the principle of proportionality, taking into account factors such as the volume of business by geographic area, Group membership, types of activities performed, business model and strategies adopted, ownership structures and distribution channels.
Validation of Senior Bodies
The Parent company and each subsidiary are responsible for the concrete implementation of the Policy, under the supervision of the CEO or, in his absence, the Board of Directors, with the support of the Anti-Money Laundering Officer.
Reference to recognised third-party initiatives and/or standards
The Policy is prepared in implementation of the Bank of Italy Provisions of March 2019 and subsequent amendments and additions.
Stakeholder engagement
In order to promote its dissemination and understanding, all employees receive special communications and updates on the policy.
Availability modes
The policy is published on the company intranet.

363
Whistleblowing Policy
Reference topic: G1
[MDR-P DP 65a,b,c,d,e,f]

Whistleblowing Policy
Description of contents
The policy is a tool to ensure transparency, ethics and regulatory compliance within the organisation. The document describes in detail the methods and channels of communication available to whistleblowers, the procedure activated following a report and the roles and responsibilities of the players involved. Specifically, the policy governs:•the steps involved in the process and how to confirm, where possible, receipt of the report to the whistleblower;•the information flow on the development of the proceedings addressed to the whistleblower and the reported subject;•the whistleblower's obligation to declare any private interests linked to the report;•communication to the corporate bodies by the person in charge of the internal system in case of detected irregularities.The Head of Internal Audit constantly monitors the dedicated channels, conducts investigations and formalises his assessments, transmitting them to the CEO and, if applicable, to the Supervisory Board of the Parent company or the Italian-registered Subsidiary concerned.
Scope of reference
The policy is applicable to all Group companies and all legal entities, regardless of the type of contractual relationship, and has also been formally incorporated by Fürstenberg SIM, ensuring a uniform implementation of the provisions. illimity has its own Whistleblowing Policy, similar to that of the Parent company, with the aim of promoting legality and business ethics, protecting whistleblowers from retaliation and preventing risks of wrongdoing. The Head of illimity's internal reporting system constantly monitors the reporting channels and reports periodically to the companies' respective control and supervisory bodies.
Validation of Senior Bodies
Approved by the Board of Directors of the Parent company on the proposal of the CEO, the policy is implemented by the Boards of Directors of the subsidiaries and disseminated to all Group staff. Any updates, proposed by the Chief Executive Officer on the instructions of the Parent company's Internal Audit, Organisation and Compliance Department, take into account regulatory and organisational changes, in order to monitor their correct application.
Reference to recognised third-party initiatives and/or standards
Banca Ifis has developed the Whistleblowing tool in compliance with Legislative Decree no. 24/2023, which transposes EU Directive 1937/2019 on the protection of whistleblowers reporting European and national regulatory infringements.
Stakeholder engagement
The policy ensures confidentiality at every stage of the whistleblowing process, protecting the identity of the whistleblower, the whistleblower and the persons involved (facilitators and the whistleblower's colleagues/employees/owned entities), as well as the content and documentation of the whistleblowing. The whistleblower is protected from retaliation for reasons related to the report, even when the report turns out to be unfounded, unless malicious or grossly negligent. The protection also applies to reports made before the commencement of the employment relationship, during the selection or pre-contractual stages, during the probationary period and after the end of the relationship, if the information was acquired during it.
Availability modes
The document is disseminated widely to all Group personnel.

364
Group Expenditure Cycle Management Policy
Reference topic: S2 – G1
[MDR-P DP 65a,b,c,d,e,f]

Group Expenditure Cycle Management Policy
Description of contents
The policy describes the principles and guidelines for defining the process for the management of the expenditure cycle by the Parent company and its subsidiaries. In particular, it regulates purchases of goods and services and purchases of real estate.The Parent company’s Chief Executive Officer submits a proposal to the Board of Directors, on the recommendation of the Co-General Manager Chief Operating Officer (COO), for any update requirements that become necessary due to changes in the regulatory and organisational environment.
Scope of reference
The policy is applicable, to the extent applicable, to all organisational units of the Parent company and its subsidiaries and has also been formally implemented by Fürstenberg SIM.
Validation of Senior Bodies
The policy is approved, on the proposal of the Chief Executive Officer, by the Board of Directors of the Parent company and subsequently implemented by the Board of Directors of the subsidiaries.
Reference to recognised third-party initiatives and/or standards
The policy fully complies with the regulations in force, in particular structuring processes and controls aimed at preventing the offences set out in Legislative Decree No. 231 of 8 June 2001, the supervisory provisions for banks set out in Bank of Italy Circular 285 of 17 December 2013, as well as the supervisory provisions for financial intermediaries set out in Bank of Italy Circular No. 288 of 3 April 2015.
Stakeholder engagement
The drafting of the Group Policy for Expenditure Cycle Management was handled by the Procurement & Cost Management function.
Availability modes
The policy is disseminated, to the extent applicable, to all the organisational units of the Parent company and its subsidiaries.

365
Sustainable Supply Chain Policy
Reference topic: G1
[MDR-P DP 65a,b,c,d,e,f]

Sustainable Supply Chain Policy
Description of contents
The illimity Group's Sustainable Supply Chain Policy aims to minimise indirect environmental impact, integrate ESG principles into supplier selection and management processes and periodically monitor indirect GHG emissions (Scope 3) related to suppliers. The Cost Management & Procurement function of illimity, in cooperation with Sustainability, annually monitors the ESG score of suppliers and implements remedial actions to improve the overall sustainability profile of the illimity Group's supplier list.
Scope of reference
The policy applies to all entities of the illimity Group and suppliers involved in the supply chain, without territorial limitation, thus extending globally.
Validation of Senior Bodies
The Sustainable Supply Chain Policy is approved by the Board of Directors of illimity Bank.
Reference to recognised third-party initiatives and/or standards
The policy is inspired by:•Universal Declaration of Human Rights (UN);•ILO (International Labour Organisation) Declaration on Fundamental Principles and Rights at Work and its Follow-up;•Principles of the UN Global Compact;•OECD recommendation of the council on OECD legal instruments artificial intelligence;•OECD AI Principles;•EU Ethics guidelines for trustworthy AI;•Regulation (EU) 2024/1689 of the European Parliament and of the Council of 13 June.In addition, suppliers are required to be certified to ISO 9001, 14001, 45001, 27001, 37001, if they have them. The illimity Group also adopts ethical practices in the field of artificial intelligence according to OECD and EU recommendations.
Stakeholder engagement
The policy provides for the active engagement of material suppliers in the illimity Group's sustainability initiatives, promoting the collection of data and information useful for the assessment of their ESG scores, through structured engagement processes and methodologies through the periodic administration of questionnaires.
Availability modes
Published on illimity's institutional website, the policy is made available to all suppliers in the qualification process, which requires explicit adherence to ESG principles and the principles of the Code of Ethics as a prerequisite for long-term collaboration.

366
Organisational, Management and Control Model as per Italian Legislative Decree no. 231/2001
Reference topic: S2 – G1
[MDR-P DP 65a,b,c,d,e,f]

Organisational, Management and Control Model as per Italian Legislative Decree no. 231/2001
Description of contents
The Organisational, Management and Control Model as per Italian Legislative Decree No. 231/2001 guarantees transparency, fairness and the protection of its institutional role, its image and the interests of shareholders, employees and stakeholders. The Legislative Decree No. 231/2001 includes principles, rules and organisational schemes aimed at controlling and monitoring sensitive activities in order to prevent offences under the legislation, such as corruption, corporate offences, environmental offences, accidents at work, exploitation of persons and tax offences.The Compliance Department, as part of its regulatory monitoring activities, informs the structures concerned of relevant regulatory developments, initiating the process of monitoring and implementing changes as governed by the relevant internal regulations.
Scope of reference
The rules contained in the Legislative Decree No. 231/2001 are aimed at: •persons in positions of representation, administration or management of the company;•persons exercising management and control over the company;•all employees of the company subject to the direction or supervision of the persons referred to above;•self-employed workers, consultants, professionals, partners (commercial/financial), suppliers, attorneys and third parties operating on behalf of or in the interest of the company, limited to what is specifically indicated in the relevant contractual agreements.The main companies in the illimity Group (illimity Bank, Fürstenberg SGR, ARECneprix, Abilio) have their own Organisation, Management and Control Model, designed to mitigate the risk of offences being committed by identifying sensitive activities and formalising control measures.
Validation of Senior Bodies
The members of the Board of Directors of the Parent company, in November 2025, and of the subsidiaries, between November and December of the same year, approved the latest update of Banca Ifis's Organisational, Management and Control Model, in accordance with the external regulatory changes that had occurred and organisational changes.
Reference to recognised third-party initiatives and/or standards
The Model is aligned with the good practices and guidelines of the Italian Banking Association (ABI) and Confindustria. Furthermore, during 2025, the Organisational, Management and Control Model was updated to bring it into line with recent legislative changes, with particular reference to the amendments to Leg. 231/2001 and the related predicate offences introduced by the following regulations:•Decree-Law no. 48 of 11 April 2025 on terrorism;•Law no. 82 of 6 June 2025 on the Protection of Animals and the Environment;•Decree-Law no. 116 of 8 August 2025 on waste and the environment;•Law no. 132 of 23 September 2025 on Financial Crimes.
Stakeholder engagement
For the proper functioning of the Organisational, Management and Control Model, communication and staff training are essential requirements, which must be adapted to the different categories of recipients: from general employees to those working in risk areas or sensitive activities, up to members of corporate bodies. This ensures that each individual fully understands his or her responsibilities and actively contributes to the proper application of the Model.
Availability modes
The updated version of the Organisational, Management and Control Model, for the 'General Part' only, of Banca Ifis and the Group companies is available on the corporate website of Banca Ifis and, where present, on the independent corporate websites of the individual

367

Organisational, Management and Control Model as per Italian Legislative Decree no. 231/2001

Group companies. Through these portals, it is also possible to access the entire regulatory and documentary compendium that constitutes an integral part or accessory element of the Model. The full Models are made available on the company intranet.
Group Policy for the Prevention of Corruption
Reference topic: G1
[MDR-P DP 65a,b,c,d,e,f]

Group Policy for the Prevention of Corruption
Description of contents
The policy aims to prevent corrupt conduct in the conduct of Group business. Moreover, it defines the general principles on the fight against corruption to which all Group activities must be informed, identifies the operational areas most exposed to the 'risk of corruption', and sets out the controls and organisational measures that make it more difficult for it to materialise.The Supervisory Board (SB) monitors the effective implementation of the policy.
Scope of reference
The document applies to all Group employees, members of corporate bodies, collaborators, consultants, suppliers and business partners, and has also been formally implemented by Fürstenberg SIM.illimity Bank adopts a similar Anti-Corruption Policy, which defines anti-corruption principles, identifies risks and sensitive activities, assigns roles and responsibilities, and establishes a methodology for assessing and managing corruption risk internally.
Validation of Senior Bodies
The policy is approved by the Board of Directors. Updates and amendments to the Policy are the responsibility of the General Counsel Department, which acts in coordination with the control functions and in accordance with the indications of the Supervisory Body in the area of 231/2001.
Reference to recognised third-party initiatives and/or standards
The policy is fully compliant with Italian regulations on corruption and illegality, complying with the provisions set out in the Criminal Code (Royal Decree no. 1398 of 19 October 1930), the Civil Code (Royal Decree no. 262 of 16 March 1942), Law 190/2012 (the 'Severino Law') and Legislative Decree 231/2001.
Stakeholder engagement
The General Counsel Department was responsible for drafting the Group Policy for the Prevention of Corruption.
Availability modes
The policy is disseminated on the company intranet and published on the company website.

368
Group Information Flow Management Policy
Reference topic: G1
[MDR-P DP 65a,b,c,d,e,f]

Group Information Flow Management Policy
Description of contents
The policy governs the management of information flows produced by corporate functions and addressed to the Chairmanship, strategic supervision, management and supervisory bodies and between the Parent company and subsidiaries, for the purpose of directing and coordinating Group activities. The information flow management system is based on the principles of completeness, timeliness and accuracy, in order to ensure management efficiency and control effectiveness. The flows must be clear, useful and proportionate to the objectives, produced with appropriate frequency, disseminated to the appropriate recipients and managed with respect for confidentiality and privacy of information. The process owners of the Parent company and the subsidiaries, with the support of their respective contact persons, monitor that information is provided in a timely, correct and complete manner.
Scope of reference
The policy applies to every company in the Group, with the exception of Ifis Npl 2021 - 1 SPV S.r.l., as well as to all Group Organisational Units involved in the processes governed by it; it has also been formally adopted by the illimity Group and Fürstenberg SIM.
Validation of Senior Bodies
The Board of Directors is responsible for the first approval of the policy and annual reporting, while the CEO is responsible for reporting on any infra-annual reporting.
Reference to recognised third-party initiatives and/or standards
The policy is inspired by various external regulations, such as paragraphs 5 and 6 of Article 2381 of the Civil Code, Circular 285 of 17 December 2013 in the area of supervisory provisions for banks, Circular 288 of 3 April 2015 in the area of supervisory provisions for financial intermediaries, the Bank of Italy's provisions on organisation, procedures and internal controls for anti-money laundering purposes of 26 March 2019 and the New Corporate Governance Code for Listed Companies of 31 January 2020.
Stakeholder engagement
The policy was shared both with the Compliance Department, which assessed its compliance with the contextual discipline, and with the Parent company and Subsidiary Companies' contact persons, who examined its overall consistency within the Group.
Availability modes
The policy is disseminated on the company intranet.

369
5.4 Reconciliation of TCFD requests to the Consolidated Sustainability Statement

Main subject area | TCFD Expectations | Sections in the Consolidated Sustainability Statement
Governance | a) Describe the board's oversight of climate-related risks and opportunities | 1.1.3 Governance
b) Describe management's role in assessing and managing climate-related risks and opportunities
Strategy | a) Describe the climate-related risks and opportunities the organisation as identified over the short, medium and long term | 1.1.4 Impact, risk and opportunity management: Double materiality assessment 2.2.1 Transition Plan 2.2.2 Energy, adaptation and mitigation of climate change
b) Describe the impacts of climate-related risks and opportunities on the organisation's business, strategy and financial planning
c) Describe the resilience of the organisation's strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario | 2.2.2 Energy, adaptation and mitigation of climate change
Risk management | a) Describe the organization’s processes for identifying and assess climate-related risks | 1.1.4 Impact, risk and opportunity management: Double materiality assessment 2.2.2 Energy, adaptation and mitigation of climate change
b) Describe the organization’s processes for managing climate-related risk
c) Describe how processes for identifying, assessing and managing climate-related risk are integrated into the organization’s overall risk management
Metrics and targets | a) Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process | 1.1.4 Impact, risk and opportunity management: Double materiality assessment 2.2.4 Metrics
b) Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks
c) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets | 2.2.3 Targets

370
Other information
Adoption of Opt-Out Option pursuant to Consob resolution No. 18079 of 20 January 2012
On 21 January 2013, Banca Ifis's Board of Directors resolved, as per Article 3 of Consob Regulation No. 18079 of 20 January 2012, to adopt the opt-out option pursuant to Article 70, paragraph 8 and Article 71, paragraph 1-bis, of Consob Issuers' Regulation, thus exercising the right to depart from the obligations to publish information documents required in connection with significant operations like mergers, spin-offs, capital increases by contribution in kind, acquisitions and sales.
Report on Corporate Governance and Shareholding Structure
With reference to the "Report on Corporate Governance and Shareholding Structure", reference is made to the latest version prepared in accordance with the third paragraph of Art. 123-bis of Legislative Decree No. 58 of 24 February 1998 (Consolidated Law on Finance, or "TUF"), i.e. that prepared for FY 2025 in the form of a separate report from the Directors' Report on the Group, approved by the Board of Directors on 12 March 2026 and published together with the Consolidated Financial Statements for the year ended 31 December 2025. This document is also made available in the “About us” section, "Corporate Governance" subsection, paragraph on "Reports and Documents", sub-paragraph "Corporate Governance Organisation and Structures" on the corporate website www.bancaifis.it.
The "Report on Corporate Governance and Shareholding Structure" has been drawn up according to the format provided by Borsa Italiana.
Remuneration policies
The “About us” section, "Corporate governance" subsection, paragraph on "Remuneration" of the corporate website www.bancaifis.it includes the "2025 Report on Remuneration Policy and Remuneration Paid", drafted pursuant to Article 123 ter of the TUF, where the remuneration policy valid for FY 2025 for the Banca Ifis Group is illustrated.
Privacy measures
The Banca Ifis Group has consolidated a project to comply with (EU) Regulation No. 2016/679 in order to incorporate the relevant regulatory provisions into its internal privacy management model, planning a series of both technological and organisational steps that will concern all the Group's companies.
Ultimate Parent company management and coordination
Pursuant to Articles 2497 to 2497 sexies of the Italian Civil Code, it should be noted that the ultimate Parent company Fürstenberg Scogliera Holding S.A. (formerly La Scogliera S.A., which took on the new business name on 24 December 2025) does not carry out any management and coordination activities with respect to Banca Ifis, notwithstanding Article 2497 sexies of the Italian Civil Code, since the management and coordination of investee financial companies and banks is expressly excluded from Fürstenberg Scogliera Holding's corporate purpose, and consistently the ultimate Parent company does not in fact perform any management and coordination activities with respect to Banca Ifis.
371
Transactions on treasury shares
At 31 December 2024, Banca Ifis held 1.238.886 treasury shares recognised at a market value of 21,0 million Euro and a nominal amount of 1.238.886 Euro.
In 2025, Banca Ifis awarded the Top Management:
•as variable pay, under the scope of the Short-Term Incentive (“STI”) system, 121.031 treasury shares at an average price of 16,53 Euro, for a total of 2,0 million Euro and a nominal amount of 121.031 Euro, making losses of 269 thousand Euro that, in compliance with IAS/IFRS standards, were recognised under the premium reserve;
•as variable long-term remuneration, as part of the exercise by the various beneficiaries of the stock options assigned to them as a result of the "2021-2023 Long-Term Incentive Plan" (the "LTI Plan"), 378.600 treasury shares at an average price of 12,92 Euro (the strike price of the stock options), for an equivalent value of 4,9 million Euro and a nominal amount of 378.600 Euro, realising losses of 108 thousand Euro recognised in additional paid-in capital. The related stock option reserve associated with options exercised during 2025 totals 1,1 million Euro.
During FY 2025, there were no further transactions on treasury shares other than those mentioned above.
Considering the above operations, the stock at 31 December 2025 is 739.255 treasury shares, with an equivalent value of 13,7 million Euro and a nominal amount of 739.255 Euro.
It should be noted that the Banca Ifis Group does not hold, directly or indirectly, any shares in the ultimate Parent company Fürstenberg Scogliera Holding S.A. (formerly La Scogliera S.A.).
Transactions with Group companies and related parties
In compliance with the provisions of Consob Resolution No. 17221 of 12 March 2010, as subsequently amended, as well as the prudential Supervisory provisions for banks in Circular No. 285 of 17 December 2013 of the Bank of Italy, part three, chapter 11 (on "Risk activities and conflicts of interest towards related parties”), any transactions with related parties and relevant parties are carried out pursuant to the procedure approved by the Board of Directors called the “Group Policy covering transactions with related parties, associates and corporate representatives pursuant to Art. 136 of the Consolidated Law on Banking”, the latest update of which is available to the public in the “About us” section, “Corporate Governance” subsection, paragraph on “Reports and documents”, sub-paragraph “Related parties and other associated subjects” of the corporate website www.bancaifis.it.
During 2025, no significant transactions with related parties were undertaken outside the scope of the Consolidated Financial Statements.
The disclosure on related party transactions and the description of the most significant transactions concluded with related parties during the financial year, provided for by the Regulation adopted by Consob with resolution No. 17221 of 12 March 2010 and subsequent amendments, are reported in “Part H - Related-party transactions” of the Notes to the Consolidated Financial Statements, to which reference should be made.
Atypical or unusual transactions
During 2025, the Banca Ifis Group did not carry out atypical or unusual transactions as defined by Consob Communication No. 6064293 of 28 July 2006.
372
The Bank's offices
The Bank has its registered office in Venice-Mestre, as well as offices of the Chairmanship in Rome and operational offices in Milan. There are no branch offices.
Human resources
At 31 December 2025, the Banca Ifis Group had 2.695 employees (2.013 at 31 December 2024), of which 672 were from the acquisition of the illimity Group and 19 resources from the acquisition of Euclidea SIM 92. Below is a breakdown of the workforce by classification level.

GROUP EMPLOYEES BY CLASSIFICATION LEVEL | 31.12.2025 | 31.12.2024 | CHANGES
Number | % | Number | % | Number | %
Senior managers | 167 | 6,2% | 99 | 4,9% | 68 | 68,7%
Middle managers | 988 | 36,7% | 653 | 32,4% | 335 | 51,3%
Clerical staff | 1.540 | 57,1% | 1.261 | 62,6% | 279 | 22,1%
Total Group employees | 2.695 | 100,0% | 2.013 | 100,0% | 682 | 33,9%

Research and development activities
Due to its business, the Group did not implement any research and development programmes during the year.
Venice - Mestre, 12 March 2026
For the Board of Directors
The CEO
Frederik Herman Geertman
This report has been translated into the English language solely for the convenience of international readers.
92 Euclidea SIM was renamed Fürstenberg SIM with effect from 26 January 2026.
373
Consolidated Financial Statements
374
375
Consolidated Statement of Financial Position
ASSETS(in thousand Euro)
31.12.2025
31.12.2024
10.
Cash and cash equivalents
787.290
505.016
20.
Financial assets measured at fair value through profit or loss
808.092
249.101
a) financial assets held for trading
27.473
12.069
c) other financial assets mandatorily measured at fair value
780.619
237.032
30.
Financial assets measured at fair value through other comprehensive income
1.659.271
701.830
40.
Financial assets measured at amortised cost
16.836.272
11.513.781
a) receivables due from banks
700.276
703.763
b) receivables due from customers
16.135.996
10.810.018
50.
Hedging derivatives
60.880
7.404
70.
Equity investments
33.580
24
90.
Property, plant and equipment
256.210
166.665
100.
Intangible assets
128.999
85.488
of which:
- goodwill
55.268
38.020
110.
Tax assets:
368.495
213.464
a) current
117.727
42.033
b) deferred
250.768
171.431
120.
Non-current assets and disposal groups
157.555
-
130.
Other assets
551.740
382.965
Total assets
21.648.384
13.825.738
376
LIABILITIES AND EQUITY(in thousands of Euro)
31.12.2025
31.12.2024
10.
Financial liabilities measured at amortised cost
18.716.422
11.597.750
a) payables due to banks
4.018.193
1.443.250
b) payables due to customers
11.256.836
7.001.763
c) debt securities issued
3.441.393
3.152.737
20.
Financial liabilities held for trading
26.566
13.765
40.
Hedging derivatives
33.748
14.868
50.
Value adjustment to financial liabilities with generic hedges (+/-)
(2.936)
-
60.
Tax liabilities:
117.272
51.924
a) current
69.848
23.345
b) deferred
47.424
28.579
80.
Other liabilities
498.447
339.377
90.
Post-employment benefits
11.441
7.569
100.
Provisions for risks and charges:
106.877
52.339
a) commitments and guarantees granted
8.600
5.559
b) pensions and similar obligations
364
231
c) other provisions for risks and charges
97.913
46.549
120.
Valuation reserves
(16.840)
(28.144)
150.
Reserves
1.604.673
1.543.729
155.
Interim dividends (-)
(73.296)
(63.084)
160.
Share premiums
229.093
85.391
170.
Share capital
61.819
53.811
180.
Treasury shares (-)
(13.701)
(20.971)
190.
Equity attributable to non-controlling interests (+/-)
20.803
15.836
200.
Profit (loss) for the year (+/-)
327.996
161.578
Total liabilities and equity
21.648.384
13.825.738
377
Consolidated Income Statement
INCOME STATEMENT DATA(in thousand Euro)
31.12.2025
31.12.2024
10.
Interest receivable and similar income
907.483
835.367
of which: interest income calculated using the effective interest method
896.068
817.699
20.
Interest due and similar expenses
(474.613)
(433.349)
30.
Net interest income
432.870
402.018
40.
Commission income
150.720
111.574
50.
Commission expense
(28.146)
(19.799)
60.
Net commission income
122.574
91.775
70.
Dividends and similar income
32.059
12.543
80.
Net profit (loss) from trading
5.835
(1.924)
90.
Net result from hedging
1.874
(1.140)
100.
Profit (loss) from sale or buyback of:
46.566
40.934
a) financial assets measured at amortised cost
46.463
32.666
b) financial assets measured at fair value through other comprehensive income
368
8.204
c) financial liabilities
(265)
64
110.
Net result of other financial assets and liabilities measured at fair value through profit or loss
21.357
24.127
b) other financial assets mandatorily measured at fair value
21.357
24.127
120.
Net banking income
663.135
568.333
130.
Net credit risk losses/reversals on:
19.209
93.397
a) financial assets measured at amortised cost
21.015
92.914
b) financial assets measured at fair value through other comprehensive income
(1.806)
483
150.
Net profit (loss) from financial activities
682.344
661.730
180.
Net profit (loss) from financial and insurance activities
682.344
661.730
190.
Administrative expenses:
(618.764)
(426.136)
a) personnel expenses
(258.806)
(169.852)
b) other administrative expenses
(359.958)
(256.284)
200.
Net allocations to provisions for risks and charges
(6.379)
(726)
a) commitments and guarantees granted
(1.854)
(248)
b) other net allocations
(4.525)
(478)
210.
Net impairment losses/reversals on property, plant and equipment
(17.090)
(12.215)
220.
Net impairment losses/reversals on intangible assets
(19.724)
(11.061)
230.
Other operating income/expenses
356.031
33.750
240.
Operating costs
(305.926)
(416.388)
250.
Profit (loss) on equity investments
198
-
280.
Gains (losses) on disposal of investments
195
-
290.
Pre-tax profit (loss) from continuing operations
376.811
245.342
300.
Income taxes for the year relating to current operations
(47.903)
(82.168)
330.
Profit (loss) for the year
328.908
163.174
340.
Profit (loss) for the year attributable to non-controlling interests
(912)
(1.596)
350.
Profit (loss) for the year attributable to the Parent company
327.996
161.578
378

Earnings per share and diluted earnings per share | 31.12.2025 | 31.12.2024
Earnings per share (EPS) | 5,78 | 3,08
Diluted earnings per share (EPS) | 5,72 | 3,03

Consolidated Statement of Comprehensive Income
ITEMS(in thousands of Euro)
31.12.2025
31.12.2024
10.
Profit (loss) for the year
328.908
163.174
Other comprehensive income, net of taxes, not to be reclassified to profit or loss
75
(3.657)
20.
Equity securities measured at fair value through other comprehensive income
(2.891)
(3.788)
40.
Hedging of equity securities measured at fair value through other comprehensive income
2.631
(153)
70.
Defined benefit plans
335
284
Other comprehensive income, net of taxes, to be reclassified to profit or loss
6.274
3.102
120.
Exchange differences
164
709
150.
Financial assets (other than equity securities) measured at fair value through other comprehensive income
6.110
2.393
200.
Other comprehensive income, net of taxes
6.349
(555)
210.
Comprehensive income (Item 10 + 200)
335.257
162.619
220.
Consolidated comprehensive income attributable to non-controlling interests
(915)
(1.597)
230.
Consolidated comprehensive income attributable to the Parent company
334.342
161.022
379
Consolidated Statement of Changes in Equity at 31 December 2025
(in thousands of Euro)
Balance at 31.12.2024
Change in opening balances
Balance at 01.01.2025
Allocation of profit from previous year
Changes during the year
Consolidated equity at 31.12.2025
Group equity at
31.12.2025
Equity attributable to non-controlling interest at
31.12.2025
Reserves
Dividends and other allocations
Changes in reserves
Equity transactions
Comprehensive income for the year
Issue of new shares
Buyback of treasury shares
Interim dividends
Extraordinary distribution of dividends
Changes in equity instruments
Derivatives on treasury shares
Stock options
Changes in equity interests
Share capital:
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
a) ordinary shares
59.589
X
59.589
-
X
X
8.009
-
X
X
X
X
X
(90)
X
67.508
61.819
5.689
b) other shares
-
X
-
-
X
X
-
-
X
X
X
X
X
4.126
X
4.126
-
4.126
Share premiums
87.011
X
87.011
-
X
8.350
135.352
X
X
X
X
X
X
4.960
X
235.673
229.093
6.580
Reserves:
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
a) retained earnings
1.536.582
-
1.536.582
50.218
X
(12.268)
(397)
-
X
-
X
X
X
(3.640)
X
1.570.495
1.567.933
2.562
b) other
13.970
-
13.970
-
X
(14.989)
39.770
X
X
-
X
-
(1.081)
(21)
X
37.649
36.740
909
Valuation reserves
(28.126)
-
(28.126)
X
X
4.958
X
X
X
X
X
X
X
4
6.349
(16.815)
(16.840)
25
Equity instruments
-
X
-
X
X
X
X
X
X
X
-
X
X
-
X
-
-
-
Interim dividends
(63.084)
X
(63.084)
X
63.084
X
X
X
(73.296)
X
X
X
X
X
X
(73.296)
(73.296)
-
Treasury shares
(20.971)
X
(20.971)
X
X
X
7.270
-
X
X
X
X
X
X
X
(13.701)
(13.701)
-
Profit (loss) for the year
163.174
-
163.174
(50.218)
(112.956)
X
X
X
X
X
X
X
X
X
328.908
328.908
327.996
912
Consolidated equity
1.748.146
-
1.748.146
-
(49.872)
(13.949)
190.004
-
(73.296)
-
-
-
(1.081)
5.339
335.257
2.140.547
X
X
Group equity
1.732.310
-
1.732.310
-
(48.826)
(13.841)
190.004
-
(73.296)
-
-
-
(1.081)
133
334.342
2.119.744
2.119.744
X
Equity attributable to non-controlling interests
15.836
-
15.836
-
(1.046)
(108)
-
-
-
-
-
-
-
5.206
915
20.803
X
20.803
380
Consolidated Statement of Changes in Equity at 31 December 2024
(in thousands of Euro)
Balance at 31.12.2023
Change in opening balances
Balance at 01.01.2024
Allocation of profit from previous year
Changes during the year
Consolidated equity at 31.12.2024
Group equity at
31.12.2024
Equity attributable to non-controlling interest at
31.12.2024
Reserves
Dividends and other allocations
Changes in reserves
Equity transactions
Comprehensive income for the year
Issue of new shares
Buyback of treasury shares
Interim dividends
Extraordinary distribution of dividends
Changes in equity instruments
Derivatives on treasury shares
Stock options
Changes in equity interests
Share capital:
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
a) ordinary shares
59.589
X
59.589
-
X
X
-
-
X
X
X
X
X
-
X
59.589
53.811
5.778
b) other shares
-
X
-
-
X
X
-
-
X
X
X
X
X
-
X
-
-
-
Share premiums
85.728
X
85.728
-
X
846
437
X
X
X
X
X
X
-
X
87.011
85.391
1.620
Reserves:
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
a) retained earnings
1.496.626
-
1.496.626
51.676
X
(11.720)
-
-
X
-
X
X
X
-
X
1.536.582
1.530.796
5.786
b) other
13.815
-
13.815
-
X
-
-
X
X
-
X
-
155
-
X
13.970
12.933
1.037
Valuation reserves
(39.197)
-
(39.197)
X
X
11.626
X
X
X
X
X
X
X
-
(555)
(28.126)
(28.144)
18
Equity instruments
-
X
-
X
X
X
X
X
X
X
-
X
X
-
X
-
-
-
Interim dividends
(62.962)
X
(62.962)
X
62.962
X
X
X
(63.084)
X
X
X
X
X
X
(63.084)
(63.084)
-
Treasury shares
(21.817)
X
(21.817)
X
X
X
846
-
X
X
X
X
X
X
X
(20.971)
(20.971)
-
Profit (loss) for the year
161.916
-
161.916
(51.676)
(110.240)
X
X
X
X
X
X
X
X
X
163.174
163.174
161.578
1.596
Consolidated equity
1.693.699
-
1.693.699
-
(47.278)
752
1.283
-
(63.084)
-
-
-
155
-
162.619
1.748.146
X
X
Group equity
1.679.459
-
1.679.460
-
(47.278)
752
1.283
-
(63.084)
-
-
-
155
-
161.022
1.732.310
1.732.310
X
Equity attributable to non-controlling interests
14.240
-
14.240
-
-
-
-
-
-
-
-
-
-
-
1.597
15.836
X
15.836
381
Consolidated Cash Flow Statement
CONSOLIDATED CASH FLOW STATEMENT
Indirect method (in thousands of Euro)
Amount
31.12.2025
31.12.2024
A. OPERATING ACTIVITIES
1. Operations
(112.703)
162.924
- profit (loss) for the year (+/-)
328.908
163.174
- profit/loss on financial assets held for trading and on other financial assets/liabilities measured at fair value through profit or loss (-/+)
(27.192)
(22.203)
- gains/losses on hedging (-/+)
(1.874)
1.140
- net credit risk losses/reversals (+/-)
(19.209)
(93.397)
- net impairment losses/reversals on property, plant and equipment and intangible assets (+/-)
36.814
23.276
- net allocations to provisions for risks and charges and other expenses/income (+/-)
15.106
7.968
- unpaid taxes, duties and tax credits (+/-)
47.903
82.168
- other adjustments (+/-)
(493.159)
798
2. Cash flows generated/absorbed by financial assets
(16.445)
(56.458)
- financial assets held for trading
27.871
4.449
- other assets mandatorily measured at fair value
(8.255)
9.077
- financial assets measured at fair value through other comprehensive income
(193.478)
47.274
- financial assets measured at amortised cost
131.698
(163.560)
- other assets
25.719
46.302
3. Cash flows generated/absorbed by financial liabilities
217.598
(297.987)
- financial liabilities measured at amortised cost
241.127
(226.334)
- financial liabilities held for trading
(22.247)
(5.841)
- other liabilities
(1.282)
(65.812)
Net cash flows generated/absorbed by operating activities (+/-)
88.450
(191.521)
B. INVESTING ACTIVITIES
1. Cash flows generated by
-
-
- sale of property, plant and equipment
-
-
2. Cash flows absorbed by
128.479
(50.659)
- purchases of equity investments
(1.500)
-
- purchases of property, plant and equipment
(47.166)
(32.199)
- purchases of intangible assets
(21.531)
(18.460)
- purchases of subsidiaries and business units
198.676
-
Net cash flows generated/absorbed by investing activities (+/-)
128.479
(50.659)
C. FINANCING ACTIVITIES
- issues/buyback of treasury shares
4.892
-
- issues/buyback of equity instruments
183.507
-
- distribution of dividends and other (*)
(123.184)
(110.337)
- sale/purchase of minority control
130
-
Net cash flows generated/absorbed by financing activities (+/-)
65.345
(110.337)
NET CASH GENERATED/USED DURING THE YEAR
282.274
(352.517)
(*) The balances in this item represent the cash outflow for dividend payments in the respective years. Specifically, the balance relating to 2025 includes the distribution by Banca Ifis of the balance of the dividend on 2024 earnings (i.e. the amount exceeding the amount already distributed as an interim dividend in 2024), the distribution of the interim dividend by Banca Ifis on 2025 earnings, as well as the portion distributed to third parties of the dividend on 2024 earnings of the subsidiary Banca Credifarma. The balance relating to FY 2024 instead includes both the distribution by Banca Ifis of the balance of the dividend on 2023 earnings (i.e. the amount in excess of what has already been distributed as an interim dividend during 2023) and the distribution of the interim dividend by Banca Ifis on 2024 earnings.
382
CONSOLIDATED CASH FLOW STATEMENT
Indirect method (in thousands of Euro)
Amount
31.12.2025
31.12.2024
RECONCILIATION
OPENING CASH AND CASH EQUIVALENTS
505.016
857.533
TOTAL NET CASH GENERATED/USED DURING THE YEAR
282.274
(352.517)
CASH AND CASH EQUIVALENTS: EFFECT OF CHANGES IN EXCHANGE RATES
-
-
CLOSING CASH AND CASH EQUIVALENTS
787.290
505.016
The information required by IAS 7 paragraph 44 A and B is set out below.

DISCLOSURE IAS 7 paragraph 44 A and B(in thousand Euro) | 31.12.2024 | Cash flows | Non-monetary changes | 31.12.2025
Business combinations / loss of control of companies | Change in fair value | Other
Liabilities from financing activities(liability items 10 - 20 - 30) | 11.611.515 | 218.880 | 6.911.597 | (23.504) | 24.500 | 18.742.988

The column "Business combinations/loss of control of companies" includes the balances acquired as a result of the business combinations carried out by Banca Ifis during 2025, relating to illimity Bank and Euclidea SIM (the latter renamed Fürstenberg SIM as from 26 January 2026). For more details on these balances, refer to Part G "Business combinations" of the Consolidated Notes.
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Notes to the Consolidated Financial Statements
384
385
Part A - Accounting policies
A.1 - General part
Section 1 - Statement of compliance with international accounting standards
The Consolidated financial statements at 31 December 2025 are prepared by applying the IASs/IFRSs issued by the International Accounting Standards Board (IASB) and the related interpretations of the International Financial Reporting Interpretations Committee (IFRIC), adopted by the European Union, as established by European Community Regulation No. 1606 of 19 July 2002.
For the interpretation and application of the international accounting standards, reference was made to the following documents, although not endorsed by the European Union:
•Systematic Framework for the Preparation and Presentation of Financial Statements ("Conceptual Framework");
•Implementation Guidance, Basis for Conclusions and any other documents prepared by the IASB or IFRIC to complement the issued accounting standards.
The accounting standards adopted in preparing these Consolidated Financial Statements are those in force at 31 December 2025 (including SIC and IFRIC interpretations).
For an overview of the accounting standards and related interpretations endorsed by the European Commission, which are expected to be applied in FY 2025 or in future financial years, please refer to the following.
Insofar as applicable, the Bank also considered the communications from Supervisory Authorities (Bank of Italy, ECB, Consob, and ESMA), which provide recommendations on the disclosure to include in the Consolidated financial statements concerning some of the most material aspects in terms of accounting or the accounting treatment of specific transactions.
These Consolidated Financial Statements are subject to certification by the delegated corporate bodies and the Manager charged with preparing the company’s financial reports, as per Article 154 bis paragraph 5 of Italian Legislative Decree No. 58 of 24 February 1998.
The Consolidated Financial Statements are audited by PricewaterhouseCoopers S.p.A..
European Commission Regulation 815/2019 (the European Single Electronic Format - ESEF - Regulation)
European Commission Regulation 815/2019 (the “European Single Electronic Format” or “ESEF” Regulation), issued in order to implement Directive 2004/109/EC (the “Transparency Directive”), introduced the obligation to prepare the annual financial reports of issuers whose securities are listed on regulated markets in the European Union in a single electronic reporting format.
The task of developing regulatory technical standards to specify this format was given to the European Securities and Markets Authority (ESMA), which published the European Single Electronic Format (ESEF). This format represents a combination of xHTML (for the presentation of financial reports in a human readable format) and XBRL (eXtensible Business Reporting Language) “machine readable” markup, with the aim of facilitating the accessibility, analysis and comparability of consolidated financial statements prepared in accordance with the IFRS.
The use of this new format requires the mapping of the information contained in the Consolidated Financial Statements according to the “Inline XBRL” specifications of the basic taxonomy issued by ESMA.
In detail, the marking process was carried out in two ways:
•the detail marking, relating to numerical items in the schedules of the Consolidated Financial Statements, marks each numerical value contained in the schedules themselves, identifying the appropriate label in the basic taxonomy;
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•the block marking, relating to the content of the notes to the financial statements, requires that for each applicable element of the taxonomy, the conceptually corresponding portion of the notes to the financial statements, consisting of text and tables, be identified (referred to as "block tags”).
Section 2 - Basis of preparation
The Consolidated Financial Statements consist of:
•the consolidated financial statements (statement of financial position and income statement, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows);
•the Notes to the Consolidated Financial Statements;
in addition, they contain the Directors' Report on the Group.
The Consolidated Financial Statements have been drawn up according to the general principles of IAS 1, referring also to IASB's “Framework for the preparation and presentation of financial statements”, with particular attention to the fundamental principles of substance over legal form, the concepts of relevance and materiality of information, and the accruals and going concern accounting concepts.
For the preparation of these Consolidated Financial Statements, reference was made to the format set out by Bank of Italy's Circular No. 262 of 22 December 2005, 8th update of 17 November 2022.
In line with the aforementioned Circular, items that do not show any amounts for the reference year and previous year are not shown in the tables.
In addition to the accounting data as at 31 December 2025, the financial statements provide comparative information for the last approved financial statements as at 31 December 2024.
It should be noted that in connection with the transactions for the acquisition of control of illimity Bank S.p.A. and Euclidea SIM S.p.A.93, finalised respectively on 4 July 2025 and 21 November 2025, and the consequent inclusion in the Banca Ifis Group's consolidation scope of these acquired companies and, in the case of illimity Bank, also of the other companies belonging to the so-called "illimity Group", the figures as at 31 December 2025 and in particular the economic figures are not fully comparable with those of the previous year. However, it should be noted that in the tables and comments to the individual items, the contributions of the illimity Group and of Euclidea SIM are presented, where relevant. In this regard, it should be noted, as detailed later in this document, that the consolidated income statement includes the positive effect of the recognition of the gain on a bargain purchase related to the acquisition of the illimity Group" in the amount of 309,9 million Euro.
The currency of account is the Euro and, if not indicated otherwise, amounts are expressed in thousand Euro. The tables in the Notes may include rounded amounts; any inconsistencies and/or discrepancies in the data presented in the different tables are due to these rounding differences.
Assets and liabilities, as well as costs and revenues, have been offset only if required or permitted by an accounting standard or the relevant interpretation.
The recognition, measurement and derecognition criteria for assets and liabilities, and the procedures for recognising revenues and costs, adopted in the Consolidated Financial Statements at 31 December 2025 have remained substantially unchanged from those adopted for the preparation of the 2024 Financial Statements of the Banca Ifis Group.
The accounting data used to prepare the Consolidated financial statements are those prepared by the subsidiaries with reference to 31 December 2025, adjusted, where necessary, to adapt them to the accounting standards used by the Group.
93 Euclidea SIM S.p.A. was renamed Fürstenberg SIM S.p.A. with effect from 26 January 2026.
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If the information required by international accounting standards and the provisions of the aforementioned Circular is deemed insufficient to give a true and fair view, additional information necessary for this purpose is provided in the Notes to the Consolidated Financial Statements.
The Consolidated Financial Statements are prepared in accordance with the following general principles:
•going concern: the Financial Statements are prepared on a going concern basis, having regard to the Group's business, as detailed below;
•accrual accounting: the Financial Statements are prepared in accordance with accrual accounting principles;
•consistency of presentation: the presentation and classification of items in the consolidated financial statements is kept constant from one year to the next unless a standard or interpretation requires a change in presentation or another presentation or classification is no longer appropriate. In the latter case, the Notes to the Consolidated Financial Statements provide information on the changes made compared to the previous year;
•materiality and aggregation: the balance sheet and income statement consist of items (denoted by Arabic numerals), sub-items (denoted by letters) and additional disclosure details (the "of which" of items and sub-items). The items, sub-items and related information details constitute the Consolidated Financial Statements accounts. New items may be added to the previously described Consolidated financial statements if their content is not traceable to any of the items already included in the schedules. The subheadings provided for in the schedules may be grouped together when one of the two following conditions is met:
–the amount of the subheadings is not significant;
–grouping improves the clarity of the financial statements; in this case, the Notes to the Consolidated financial statements contain the grouped sub-items separately.
•substance over form: transactions and other events are recognised and represented in accordance with their substance and economic reality and not merely according to their legal form;
•offsetting: assets and liabilities, income and expenses are not offset unless permitted or required by an international accounting standard or interpretation thereof or by the provisions of the aforementioned Bank of Italy Circular No. 262;
•comparative information: for each balance sheet and income statement, comparative information for the previous year is provided, unless an accounting standard or interpretation permits or provides otherwise. Figures for the previous year may be adjusted where necessary to ensure comparability of information for the reference year. Any non-comparability, adjustment or impossibility of the latter are reported and commented on in the Notes to the Consolidated Financial Statements.
The Notes to the Financial Statements are divided into parts:
•A - Accounting policies;
•B - Information on the Consolidated Statement of Financial Position;
•C - Information on the Consolidated Income Statement;
•D - Consolidated statement of comprehensive income;
•E - Information on Risks and Risk Management Policies;
•F - Information on consolidated equity;
•G - Business Combinations;
•H - Related-party transactions;
•I - Share-based payments;
•L - Segment reporting;
•M - Leasing disclosure.
Each part of the Notes to the Consolidated Financial Statements is divided into sections, each of which illustrates a single aspect of management.
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Information on the business as a going concern
The Bank of Italy, Consob and Isvap, with document No. 2 issued on 6 February 2009 ("Disclosure in financial reports on the going concern assumption, financial risks, asset impairment tests and uncertainties in the use of estimates"), together with the subsequent document No. 4 of 4 March 2010, require directors to assess with particular accuracy the existence of the company as a going concern, as per IAS 1.
The uncertainties of the current economic environment, including those related to geopolitical tensions, and the related potential repercussions on financial markets and the real economy, require particularly accurate assessments to be made as to whether the going concern assumption is met, as the Group's history of profitability and easy access to financial resources may no longer be sufficient in the current context.
In this regard, in light of the Parent company, Banca Ifis’s statement of financial position, having examined the risks arising from the current macroeconomic environment, including in light of the current situation, geopolitical tensions and related possible macroeconomic implications including those arising from international tensions related to the Middle East, the directors believe that the Banca Ifis Group has a reasonable expectation of continuing to operate in the foreseeable future. Indeed, the directors have not noted any risks or uncertainties that would cast doubt on the company's ability to continue as a going concern, and therefore the Consolidated financial statements at 31 December 2025 have been prepared on a going concern basis. For more details on the analyses conducted with reference to international tensions, please refer to the specific section of the Group's Report on Operations entitled “Information on international tensions”.
Section 3 - Scope and methods of consolidation
Subsidiaries
The Consolidated financial statements of the Banca Ifis Group have been drawn up on the basis of the accounts at 31 December 2025 prepared by the directors of the companies included in the consolidation scope on the basis of homogeneous accounting standards. The table below shows the subsidiaries belonging to the Banca Ifis Group.
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1. Equity investments in exclusively controlled companies

COMPANY NAME | HEAD OFFICE | REGISTERED OFFICE | TYPE (1) | INVESTMENT | VOTING RIGHTS % (2)
PARTICIPATING ENTITY | SHARE %
Ifis Finance Sp. z o.o. | Warsaw | Warsaw | 1 | Banca Ifis S.p.A. | 100% | 100%
Ifis Rental Services S.r.l. | Milan | Milan | 1 | Banca Ifis S.p.A. | 100% | 100%
Ifis Npl Investing S.p.A. | Florence, Milan and Mestre (Province of Venice) | Mestre (Province of Venice) | 1 | Banca Ifis S.p.A. | 100% | 100%
Cap.Ital.Fin. S.p.A. | Naples | Naples | 1 | Banca Ifis S.p.A. | 100% | 100%
Euclidea SIM S.p.A.94 | Milan | Milan | 1 | Banca Ifis S.p.A. | 100% | 100%
Ifis Npl Servicing S.p.A. | Mestre (Province of Venice) | Mestre (Province of Venice) | 1 | Ifis Npl Investing S.p.A. | 100% | 100%
Ifis Finance I.F.N. S.A. | Bucharest | Bucharest | 1 | Banca Ifis S.p.A. | 99,99% | 99,99%
Banca Credifarma S.p.A. | Rome | Rome | 1 | Banca Ifis S.p.A. | 87,96% | 87,96%
Ifis Npl 2021-1 SPV S.r.l. | Conegliano (Province of Treviso) | Conegliano (Province of Treviso) | 1 | Banca Ifis S.p.A. | 51% | 51%
Indigo Lease S.r.l. | Conegliano (Province of Treviso) | Conegliano (Province of Treviso) | 4 | Other | 0% | 0%
Ifis ABCP Programme S.r.l. | Conegliano (Province of Treviso) | Conegliano (Province of Treviso) | 4 | Other | 0% | 0%
Emma S.P.V. S.r.l. | Conegliano (Province of Treviso) | Conegliano (Province of Treviso) | 4 | Other | 0% | 0%
illimity Bank S.p.A. | Milan | Milan | 1 | Banca Ifis S.p.A. | 100% | 100%
Aporti S.r.l. (SPV) | Milan | Milan | 1-4 | illimity Bank S.p.A. | 66,7% | 66,7%
Soperga RE S.r.l. | Milan | Milan | 1 | illimity Bank S.p.A. | 100% | 100%
Doria Leasco S.r.l. | Milan | Milan | 1 | illimity Bank S.p.A. | 100% | 100%
Doria SPV S.r.l. (SPV) | Milan | Milan | 1-4 | illimity Bank S.p.A. | 100% | 100%
Friuli LeaseCo. S.r.l. | Milan | Milan | 1 | illimity Bank S.p.A. | 100% | 100%
Friuli SPV S.r.l. (SPV) | Milan | Milan | 1-4 | illimity Bank S.p.A. | 100% | 100%
Pitti Leasco S.r.l. | Milan | Milan | 1 | illimity Bank S.p.A. | 100% | 100%
Pitti SPV S.r.l. (SPV) | Milan | Milan | 1-4 | illimity Bank S.p.A. | 100% | 100%
River Leasco S.r.l. | Milan | Milan | 1 | illimity Bank S.p.A. | 100% | 100%
River SPV S.r.l. (SPV) | Milan | Milan | 1-4 | illimity Bank S.p.A. | 100% | 100%
River immobiliare S.r.l. | Milan | Milan | 1 | illimity Bank S.p.A. | 100% | 100%
ARECneprix S.p.A. | Milan | Milan | 1 | illimity Bank S.p.A. | 100% | 100%
Fürstenberg SGR S.p.A.95 | Milan | Milan | 1 | illimity Bank S.p.A. | 100% | 100%
Abilio S.p.A. | Faenza (Province of Ravenna) | Faenza (Province of Ravenna) | 1 | illimity Bank S.p.A. | 82% | 82%
Quimmo Prestige Agency S.r.l. | Milan | Milan | 1 | Abilio S.p.A. | 100% | 100%
Quimmo Agency S.r.l. | Faenza (Province of Ravenna) | Faenza (Province of Ravenna) | 1 | Abilio S.p.A. | 100% | 100%

94 Euclidea SIM was renamed Fürstenberg SIM with effect from 26 January 2026.
95 This company was called illimity SGR S.p.A. before 18 December 2025.
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COMPANY NAME | HEAD OFFICE | REGISTERED OFFICE | TYPE (1) | INVESTMENT | VOTING RIGHTS % (2)
PARTICIPATING ENTITY | SHARE %
IREC LEASECO S.r.l. | Conegliano (Province of Treviso) | Conegliano (Province of Treviso) | 1 | illimity Bank S.p.A. | 100% | 100%
MAUI SPE S.r.l. | Milan | Milan | 4 | illimity Bank S.p.A. | 0% | 0%
Piedmont SPV S.r.l. | Milan | Milan | 4 | illimity Bank S.p.A. | 0% | 0%
Dagobah LeaseCo S.r.l. | Milan | Milan | 1 | illimity Bank S.p.A. | 100% | 100%
Dagobah SPV S.r.l. | Milan | Milan | 1-4 | illimity Bank S.p.A. | 100% | 100%
Spicy Green SPV S.r.l. | Milan | Milan | 4 | illimity Bank S.p.A. | 0% | 0%
SpicyCo2 S.r.l. | Milan | Milan | 1 | illimity Bank S.p.A. | 100% | 100%
INGENII Open Finance | Milan | Milan | 4 | illimity Bank S.p.A. | 0% | 0%
Sileno SPV S.r.l. | Milan | Milan | 1-4 | illimity Bank S.p.A. | 100% | 100%
Mida RE S.r.l. | Milan | Milan | 1 | illimity Bank S.p.A. | 100% | 100%
GRO SPV S.r.l. | Milan | Milan | 4 | illimity Bank S.p.A. | 0% | 0%
Montes LeaseCo S.r.l. | Milan | Milan | 1 | illimity Bank S.p.A. | 100% | 100%
Montes S.P.V. S.r.l. | Milan | Milan | 1-4 | illimity Bank S.p.A. | 100% | 100%
Mia SPV S.r.l. | Milan | Milan | 1 | illimity Bank S.p.A. | 100% | 100%
Farky SPV S.r.l. | Milan | Milan | 4 | illimity Bank S.p.A. | 0% | 0%
Space Direct Lending Fund | Milan | Milan | 4 | illimity Bank S.p.A. | 0% | 0%
Iside SPE S.r.l. | Milan | Milan | 4 | illimity Bank S.p.A. | 0% | 0%
CR Please Real Estate S.r.l. | Milan | Milan | 4 | Iside SPE S.r.l. | 0% | 0%
Farm SPV S.r.l. | Milan | Milan | 4 | illimity Bank S.p.A. | 0% | 0%
Dome SPV S.r.l. | Milan | Milan | 4 | illimity Bank S.p.A. | 0% | 0%
SpicyCo S.r.l. | Milan | Milan | 1 | illimity Bank S.p.A. | 100% | 100%
Enervitabio San Giuseppe Società Agricola S.r.l. | Milan | Milan | 1 | SpicyCo S.r.l. | 100% | 100%
Renit CPV S.r.l. | Milan | Milan | 1 | SpicyCo S.r.l. | 100% | 100%
Little Spicy S.r.l. | Milan | Milan | 1 | SpicyCo S.r.l. | 100% | 100%
Vela 2023 LeaseCo S.r.l. | Milan | Milan | 1 | illimity Bank S.p.A. | 100% | 100%
Eolo LeaseCo S.r.l. | Milan | Milan | 1 | illimity Bank S.p.A. | 100% | 100%
INGENII Boost Finance | Milan | Milan | 4 | illimity Bank S.p.A. | 0% | 0%
Havana SPV S.r.l. | Milan | Milan | 4 | illimity Bank S.p.A. | 0% | 0%

Key
(1) Type of relationship:
1 = majority of voting rights in the Annual Shareholders' Meeting
2 = dominant influence in the Annual Shareholders' Meeting
3 = agreements with other shareholders
4 = other forms of control
5 = joint management pursuant to Article 39, paragraph 1, Italian Legislative Decree No. 136/2015
6 = joint management pursuant to Article 39, paragraph 2, Italian Legislative Decree No. 136/2015
(2) Voting rights in the Annual Shareholders' Meeting, distinguishing between effective and potential voting rights
All the companies were consolidated using the line-by-line method.
With regard to controlled companies, classed as such on the basis of that explained below and included in the scope of consolidation at 31 December 2025, compared to the situation at the end of 2024, the changes are attributable to:
•the purchase from third parties in September 2025 of 10.320 ordinary shares of Banca Credifarma by the Parent company Banca Ifis (equal to a 0,22% stake) for a consideration of 130 thousand Euro, which resulted in the change of the Banca Credifarma controlling interest from 87,74% to 87,96%; this transaction, since it refers to a company already controlled, was considered an "equity transaction"
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pursuant to paragraph 23 of IFRS 10 and therefore, the related effects have been accounted for directly in equity;
•the following business combinations:
–the acquisition of control of illimity Bank S.p.A. by the Parent company Banca Ifis, which resulted in the inclusion of illimity Bank and the companies it directly or indirectly controls. For details of these companies, refer to the list in the table above:
–the acquisition of 100% of the shares of Euclidea SIM S.p.A..
For further details on the business combination transactions relating to illimity Bank and Euclidea SIM, refer to "Section 5 - Other Aspects", paragraph "Significant Transactions during the Year", and to "Part G - Business Combination Transactions involving Companies or Business Units" of these Notes to the Consolidated Financial Statements.
The financial statements of the Polish subsidiary Ifis Finance Sp. z o.o. and of the Romanian subsidiary Ifis Finance I.F.N. S.A., both expressed in foreign currencies are translated into Euro by applying the year-end exchange rate to assets and liabilities. As for the income statement, the items are translated using the average exchange rate. Exchange differences arising from the application of different exchange rates for the statement of financial position and the income statement, as well as the exchange differences from the translation of each investee company's equity, are recognised under capital reserves.
Assets and liabilities, off-balance-sheet transactions, income and expenses, as well as the profits and losses arising from relations between the consolidated companies are all eliminated.
2. Significant judgements and assumptions in determining the scope of consolidation
In order to determine the scope of consolidation, Banca Ifis assessed whether it meets the requirements of IFRS 10 for controlling investees or other entities with which it has any sort of contractual arrangements.
An entity controls another entity when the former has all the following:
•power over the investee;
•exposure to variable returns;
•and the ability to affect the amount of its returns.
More specifically, IFRS 10 requires that, in order to have control, the investor must have the ability to direct the relevant activities of the entity, whether by operation of law or by mere fact, and must also be exposed to the variability of outcomes that result from that power.
In light of the above references, the Group must therefore consolidate all types of entities if all three control requirements are met.
Generally, there is a presumption that a majority of voting rights gives control over the investee. The Group reconsiders whether or not it has control of an investee if the facts and circumstances indicate that there have been changes in one or more of the three elements relevant to the definition of control.
In other cases, the determination of the scope of consolidation requires consideration of all factors and circumstances that give the investor the practical ability to unilaterally conduct the relevant activities of the entity (de facto control). To this end, it is necessary to consider a number of factors, such as, but not limited to:
•the purpose and design of the entity;
•the identification of relevant activities and how they are managed;
•any rights held through contractual arrangements that grant the power to govern the relevant activities, such as the power to determine the financial and management policies of the entity, the power to exercise the majority of voting rights in the deliberative body, or the power to appoint or remove the majority of the deliberative body;
•any potential voting rights that can be exercised and are considered substantial;
•involvement in the entity in the role of agent or principal;
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•the nature and dispersion of any rights held by other investors.
For structured entities, i.e. entities for which voting rights are not considered relevant to establish control, it is deemed to exist where the Group has contractual rights to manage the relevant assets of the entity and is exposed to the variable returns of those assets.
In particular, the structured entities that required consolidation for the purposes of the Consolidated Financial Statements as of 31 December 2025 are represented by certain vehicle companies of securitisation transactions originated by Group companies, including those arising from the business combination transaction relating to illimity Bank and its subsidiaries. For such vehicles, the elements considered relevant to the identification of control and the resulting consolidation are the purpose of such companies, their exposure to the results of the operation, their ability to structure operations and direct relevant activities and make critical decisions by means of servicing agreements as well as their ability to arrange for their liquidation.
The assessment carried out led the Bank to include the subsidiaries controlled by means of holding the majority of voting rights (companies with relationship type “1” in the table above), as well as the SPVs (Special Purpose Vehicles) set up for securitisation purposes, for which control is considered to exist in accordance with IFRS 10; in the scope of consolidation at the reporting date. These SPVs are not legally part of the Banca Ifis Group, with the exception of the following vehicles for which the Group holds a majority stake:
•Ifis Npl 2021-1 SPV S.r.l.;
•Aporti S.r.l. (SPV);
•Doria SPV S.r.l. (SPV);
•Friuli SPV S.r.l. (SPV);
•Pitti SPV S.r.l. (SPV);
•River SPV S.r.l. (SPV);
•Dagobah SPV S.r.l.;
•Sileno SPV S.r.l.;
•Montes S.P.V. S.r.l.;
•Mia SPV S.r.l..
The profit (loss) for the year and each of the other components of comprehensive income are allocated to the shareholders of the Parent company and minority interests. When necessary, appropriate adjustments are made to the accounts of the subsidiaries, in order to ensure compliance with the Group's accounting standards. All assets and liabilities, equity, revenues, costs and inter-group financial flows relating to transactions between Group entities are derecognised completely during the consolidation phase.
Changes in the investment in a subsidiary that do not involve the loss of control are considered as “equity transactions” in accordance with paragraph 23 of IFRS 10 and are therefore recognised directly in equity.
Subsidiaries are consolidated from the date on which the Group acquires control, according to the purchase method, and cease to be consolidated from the moment control ceases.
Full consolidation consists of the acquisition "line by line" of the balance sheet and income statement aggregates of the controlled entities. For consolidation purposes, the carrying amount of equity interests held by the Parent company or other Group companies is eliminated against the assets and liabilities of the investees, with the corresponding fraction of shareholders' equity attributable to the Group and the portion attributable to non-controlling interests, also taking into account the cost allocation at the time control was acquired (Purchase Price Allocation - PPA).
For controlled entities, non-controlling interests in equity, period profit (loss) and comprehensive income are reported separately in the respective Consolidated Financial Statements, respectively, under the headings: “Equity attributable to non-controlling interests”, “Profit (loss) for the year attributable to non-controlling interests”, “Consolidated comprehensive income attributable to non-controlling interests”.
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In this regard, it should be noted that no effect on the equity, period profit (loss) and overall profitability attributable to non-controlling interests resulted from the consolidation of the separate assets held by the vehicle companies of the securitisations originated by the Group, which were not derecognised in the separate financial statements of the originator Group banks.
The costs, revenues, other items of comprehensive income and cash flows of the controlled entity are included in the Consolidated financial statements from the date control is acquired. The costs, revenues, other comprehensive income and cash flows of a transferred subsidiary are included in the Consolidated Financial Statements up to the date of transfer. In the event of the transfer of a subsidiary, the difference between the transfer consideration and the carrying amount of the subsidiary's net assets is recognised in income statement item "Gains (Losses) on disposal of investments”. In the event of a partial disposal of the controlled entity, which does not result in the loss of control, the difference between the consideration for the disposal and the related carrying amount is recognised as a balancing entry in equity.
Assets, liabilities, off-balance sheet transactions, income, expenses and cash flows relating to transactions between consolidated companies are fully eliminated.
Joint ventures
A jointly controlled agreement is a contractual arrangement in which two or more counterparties have joint control. Joint control is the contractual sharing of control pursuant to an agreement, which exists only where the unanimous consent of all the parties that share power is required for decisions relating to significant activities.
According to IFRS 11, jointly controlled arrangements are to be classified as joint operations or joint ventures according to the contractual rights and obligations held by the Group:
•a joint operation is a jointly controlled arrangement in which the parties have rights to the assets and obligations with respect to the liabilities of the arrangement;
•a joint venture is a jointly controlled arrangement in which the parties have rights to the net assets of the arrangement.
Investments in jointly controlled entities that qualify as joint ventures are accounted for using the equity method, based on the most recent available financial statements of the jointly controlled entity, adjusted appropriately to take into account any significant events or transactions.
At 31 December 2025, the only company subject to joint control was Hype S.p.A., which entered the Banca Ifis Group's consolidation scope following the aforementioned acquisition of control of illimity Bank by Banca Ifis. The 50% interest in Hype is held directly by illimity Bank. This equity investment, which has a carrying amount of 85,0 million Euro at 31 December 2025, is classified under "Non-current assets and disposal groups” and is measured in compliance with IFRS 5.
With reference to this equity investment, it should be noted that on 3 November 2025, the Board of Directors of illimity Bank accepted Banca Sella Holding's offer to acquire the entire interest held by illimity Bank in Hype for a consideration of 85 million Euro. Following the obtainment of regulatory authorisations at the beginning of 2026, this equity investment was sold to the Banca Sella Group on 6 February 2026 at the agreed price (for further details, refer to the specific paragraphs included in the sections "Significant events during the year" and "Subsequent events" of the Directors’ Report on the Group).
Companies under significant influence (associated companies)
Associated companies, i.e. companies subject to significant influence, are considered to be non-controlled companies in which significant influence is exercised.
Significant influence is presumed to be exercised in all cases where the company holds 20% or more of the voting rights and, irrespective of the share held, where there is the power to participate in the management and financial decisions of the investee companies by virtue of particular legal ties, such as shareholders' agreements, the
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purpose of which is for the participants in the agreement to ensure representativeness in the management bodies and to safeguard the unity of management direction, without however having control.
Investments in companies subject to significant influence are valued using the equity method, based on the most recent available financial statements of the associate, appropriately adjusted for any significant events or transactions. The participation in post-acquisition profits and losses is recognised in the Profit and Loss Account under the caption 'Gains (losses) from equity investments', while any dividend distribution is deducted from the carrying amount of the equity investment.
At 31 December 2025, the companies subject to significant influence are as follows:
•Edulia S.r.l., which is 20% owned by Banca Ifis;
•Justlex Italia S.T.A.P.A., with a 20% stake held by Ifis Npl Investing;
•Redacta S.T.A.a.r.l., whose 33% stake is held by Ifis Npl Servicing;
•AltermAInd S.r.l., 48% owned by illimity Bank;
•LAISA - Società tra Avvocati per Azioni, with a 9.99% interest held by ARECneprix.
Compared to the situation as at 31 December 2024, the companies Edulia S.r.l., 20% of which was acquired by Banca Ifis during the fourth quarter of 2025, as well as the companies AltermAInd S.r.l. and LAISA - Società tra Avvocati per Azioni as a result of the aforementioned acquisition of control of illimity Bank by Banca Ifis as of 4 July 2025, were added.
3. Equity investments in exclusively controlled companies with significant minority interests
3.1 Non-controlling interests, voting rights held by non-controlling interests, and dividends distributed to non-controlling interests

Company Name | Minority interests % | Availability of minority votes %(1) | Dividends distributed to minorities
Banca Credifarma S.p.A. | 12,04% | 12,04% | 1.046

(1) Availability of voting rights in the Annual Shareholders' Meeting.
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3.2 Equity investments with significant non-controlling interests: accounting information

Company Name | Total assets | Cash and cash equivalen ts | Financial assets | Property, plant and equipmen t and intangible assets | Financial liabilities | Equity | Net interest income | Net banking income | Operating costs | Pre-tax profit (loss) from continuin g operation s | Profit (loss) from current operation s after tax | Profit (loss) of disposal groups, net of taxes | Profit (loss) for the year(1) | Other comprehe nsive income, net of taxes(2) | Compreh ensive income(3)=(1) + (2)
Banca Credifarma S.p.A. | 815.798 | 49.005 | 749.624 | 661 | 636.763 | 131.837 | 28.581 | 34.828 | (17.584) | 18.184 | 12.101 | - | 12.101 | 4 | 12.105

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4 Significant restrictions
There are no significant restrictions as per paragraph 13 of IFRS 12, i.e. statutory, contractual and regulatory restrictions on its ability to access or use the assets and settle the liabilities of the Group, nor protective rights of non-controlling interests that can significantly restrict the Group's ability to access or use the assets and settle the liabilities of the Group.
5 Other information
The reporting date of the accounts prepared by the directors of the companies included in the consolidation scope is 31 December 2025.
Section 4 - Subsequent events
No significant events occurred in the period between the reporting date (31 December 2025) and the date of approval of the draft Financial Statements by the Board of Directors (12 March 2026), which could be classified as "adjusting events" within the meaning of IAS 10, i.e. events that lead to an adjustment of balance sheet and income statement information at the reporting date.
For other subsequent events of a 'non-adjusting' nature, refer to the section 'Subsequent Events' in the Directors' Report on the Group.
Section 5 - Other aspects
Significant operations of the year
Business combinations carried out during the year
At the level of the Banca Ifis Group, the following business combinations took place during FY 2025:
•the acquisition of control of illimity Bank S.p.A. by the Parent company Banca Ifis, which resulted in the inclusion of illimity Bank and the companies it directly or indirectly controls. For details of these companies, refer to the list in the table above:
•the acquisition of 100% of the shares of Euclidea SIM S.p.A..
From an accounting point of view, the acquisitions of illimity Bank and Euclidea SIM fall under business combinations in accordance with the provisions of the IAS/IFRS international accounting standards and, in particular, IFRS 3, which provides for the application of the purchase method.
Pursuant to IFRS 3, the acquiring entity must identify the acquirer and the acquisition date, determine and allocate the cost of the combination to the assets acquired, liabilities assumed, including contingent liabilities, which are measured at fair value (PPA), with the exception of non-current assets (or disposal groups) classified as held for sale in accordance with IFRS 5.
Any unallocated positive/negative difference represents, respectively, the goodwill to be recorded in the balance sheet as goodwill or the gain on a bargain purchase to be credited to the income statement as profit realised on the acquisition.
With regard to the PPA activity, the acquisition cost is allocated through the fair value recognition of the assets and liabilities of the acquiree, including any intangible assets not previously recognised in the financial statements of the acquiree, being able to take advantage of the option provided for by IFRS 3 paragraph 45. In fact, this standard allows the acquiring entity 12 months, with respect to the acquisition date, to definitively complete the PPA process, i.e. the allocation of the acquisition cost, by recognising at fair value the assets and liabilities of the acquired entity, including any intangible assets not previously recognised in the company's financial statements for recognition at the date of acquisition on a provisional basis.
For the purposes of applying IFRS 3 and line-by-line consolidation, the date of accounting acquisition is an essential element for the accounting of the transaction as it is the reference for both the determination of the fair values of the assets and liabilities acquired and for the acquisition of the economic results of the acquired entity in the consolidated income statement of the acquiring entity.
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With regard to the acquisition of illimity Bank, the transaction was finalised on 4 July 2025, which is the date on which the Banca Ifis Group acquired control of the company in accordance with IFRS 10. For accounting purposes, the acquisition date was assumed to be 1 July 2025, after verifying the absence of significant facts and circumstances between the latter date and 4 July 2025 as expressly provided for in the BC of IFRS 3 (BC110).
On the other hand, with reference to the acquisition of Euclidea SIM, the completion of its acquisition took place on 21 November 2025, i.e. the date on which the Parent company Banca Ifis acquired 100% of the company's shares and, consequently, control of the company pursuant to IFRS 10. For accounting purposes, the acquisition date was assumed to be 30 November 2025, as, in application of the aforementioned BC110 of IFRS 3, the facts and circumstances arising between that date and 21 November 2025 were not material.
For more details on the business combination transactions relating to illimity Bank and Euclidea SIM, refer to 'Part G - Business Combination Transactions involving Companies or Business Units' of these Notes to the Consolidated Financial Statements, as well as to the section 'Significant Events during the Year' of the Directors' Report on the Group.
Allocation of Group Assets to "Non-current Assets and Groups of Assets held for Sale
As at 31 December 2025, partly as a result of the acquisition of illimity Bank and the related integration process, certain assets of the Banca Ifis Group were classified as 'non-current assets and disposal groups held for sale'. Specifically, this item as at 31 December 2025 refers to:
•for 85,0 million Euro to the equity investment in Hype S.p.A., a jointly controlled company within the illimity Group's perimeter. With regard to this equity investment, the 85 million Euro offer received from the Banca Sella Group was accepted on 3 November 2025 and, following the obtaining of regulatory authorisations at the beginning of 2026, on 6 February 2026 it was sold at the agreed price (for further details, refer to the specific paragraphs included in the sections "Significant events during the year" and "Subsequent events" of the Directors’ Report on the Group);
•for 64,6 million Euro to credit portfolios of the illimity Group, one portfolio of which was subsequently sold on 28 January 2026 for an equivalent value of 41 million Euro, in line with the carrying value as at 31 December 2025 (for further details, refer to the above-mentioned section "Subsequent events");
•for 8,0 million Euro to loan portfolios of the Parent company Banca Ifis that are expected to be sold in the short term.
These assets were measured at the lower of cost or fair value less costs to sell, in accordance with IFRS 5.
Agreement on a voluntary exit plan for employees, including through recourse to the Solidarity Fund
On 29 December 2025, the Parent company Banca Ifis signed an agreement with the trade unions concerning a voluntary redundancy plan aimed at accompanying 120 employees to retirement, also through recourse to the extraordinary benefits of the Solidarity Fund of the credit sector. In more detail, the aforementioned agreements created an implicit obligation for the parent company to implement the plan, having defined its details, in terms of the number of persons potentially adhering to it, the terms and conditions of access, and creating in the employees and the Solidarity Fund of the credit sector the valid expectation that the restructuring will be realised in the terms announced. Therefore, the prerequisites required by IAS 37 for the recognition of restructuring charges have been met; the best estimate of the charge to be incurred, based on the information available at the balance sheet date, is 40 million Euro, entirely referring to the Parent company Banca Ifis. This expense is shown under the income statement item '190 a) personnel expenses' (and, with reference to the table detailing these expenses presented within the Notes to the Consolidated Financial Statements, under the sub-item '1) Employees', letter 'i) other employee benefits'), as a contra-entry to the balance sheet liability item '100. c) Other provisions for risks and charges'.
Extraordinary contribution Law No. 199 of 2025
Law No. 199 of 30 December 2025 ('2026 Budget Law') amended paragraph 68 of Art. 1, Article 26 of Decree-Law no. 104 of 10 August 2023, converted, with amendments, by Law No. 136 of 9 October 2023. The new regime introduced provides that, starting from the financial year beginning after 1 January 2028, in the event of the
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distribution of profits, including interim dividends, or reserves, regardless of the shareholders' resolution, the reserve is presumed to be distributed referred to in paragraph 5-bis, i.e. the reserve set up at the time of approval of the Financial Statements for FY 2023 using the option provided for by the provision as a means of satisfying the obligation provided for as an alternative to the payment of the extraordinary tax then introduced for banks (the '2023 Reserve'). Paragraph 69 of Article 1 of the 2026 Budget Law, on the other hand, introduced the provision whereby, until the financial year in progress on 31 December 2028, the '2023 Reserve' may be subject to an extraordinary contribution to be applied to the aforementioned reserve regardless of 'the nature of the items that contributed to its formation and the manner in which they were established'. Paragraph 70 provides that the extraordinary contribution shall be determined at the rate of 27,5% of the reserve existing at the end of the financial year current on 31 December 2025 or 33% of the reserve existing at the end of the following financial year; Paragraph 72 also provides, in the event of payment of the contribution, the disapplication of the provisions of Article 26, Paragraph 5-bis, last sentence, of Decree-Law no. 104 of 10 August 2023, on the indistributability of the reserve.
For the banks belonging to the Banca Ifis Group (the Parent company Banca Ifis, Banca Credifarma and illimity Bank), the amount of this contribution totalled 15,0 million Euro, detailed as follows:
•for Banca Ifis is 6.573.906 Euro (determined as 27,5% of 23.905.112 Euro of extra-profits reserve already accounted for in equity);
•for Banca Credifarma is 894.411 Euro (i.e. 27,5% of the extra-profits reserve in shareholders' equity of 3.252.404 Euro):
•for illimity Bank was 7.521.384 Euro (27,5% of 27.350.489 Euro, i.e. the '2023 Reserve' allocated to equity).
From a strictly accounting point of view, following the in-depth studies and analyses carried out at the level of the banking system considering the specificities of the regulations in question, it was deemed that the counterpart of the liability relating to the extraordinary contribution should be identified in an equity item and that the liability relating to the extraordinary contribution should be recognised in these Consolidated Financial Statements as at 31 December 2025. As a result, the liability arising from the extraordinary contribution was considered to already exist in 2025 and, consequently, recognised in the Consolidated Financial Statements as at 31 December 2025 in light of the decision taken by the Board of Directors of each bank in the Group to pay the contribution in 2026 to the extent of 27,5% of the 2023 Reserve set aside by each bank.
The total amount in question, equal to 15,0 million Euro at the consolidated level, was recognised in the balance sheet item "Other liabilities" as a contra-entry to the item "Reserves" (sub-item "other reserves"), leaving it up to each shareholders' meeting resolution approving the relevant 2025 financial statements of each Group bank to identify the equity reserve to be used to pay the extraordinary contribution.
National consolidated tax regime
Termination of national tax consolidation with La Scogliera and exercise of the option for the new national tax consolidation with Banca Ifis for the three-year period 2025-2027
On 4 July 2025, as an indirect consequence of the exchange of Banca Ifis shares for illimity Bank shares following the offer for the latter, the control requirement pursuant to art. 120 of the TUIR, required for the continuation of the national tax consolidation and in force between La Scogliera S.A. (Italian branch), Banca Ifis S.p.A. and some of its subsidiaries (Cap.Ital.Fin. S.p.A., Ifis Npl Investing S.p.A., Ifis Npl Servicing S.p.A. and Ifis Rental Services S.r.l.).
The discontinuation of the tax consolidation will take effect from the entire 2025 tax year.
It is also specified that, following this termination of the tax consolidation scheme, on 24 December 2025 the ultimate Parent company La Scogliera S.A. changed its name to Fürstenberg Scogliera Holding S.A..
As a result of the option exercised in the tax return, the new national tax consolidation scheme with Banca Ifis S.p.A. as consolidating company and the following Group companies resident in Italy as consolidated companies became effective as of 2025: Cap.Ital.Fin. S.p.A., Ifis Npl Investing S.p.A., Ifis Npl Servicing S.p.A., Banca Credifarma S.p.A. and Ifis Rental Services S.r.l..
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Transactions between these companies were regulated by means of a private written agreement between the parties. This agreement will renew tacitly.
Adhesion to the tax consolidation allows the taxable income of the participating companies to be offset against each other (using the losses realised during the adhesion period).
As envisaged by applicable regulations, adhering entities have an address for the service of notices of documents and proceedings relating to the tax periods for which this option is exercised at the HQ of Banca Ifis.
Under this tax regime, the advance payments, tax losses and profits of each company realised in 2025 are transferred to the tax consolidating company Banca Ifis. Constituting so-called "intercompany" receivables/payables within the meaning of the consolidated accounts, they are eliminated as part of the consolidation entries and are therefore not included within the items "Other assets" and "Other liabilities" in the consolidated balance sheet of the Banca Ifis Group.
National tax consolidation with illimity Bank - Hype tax transparency
illimity Bank S.p.A., for the tax year 2025, also exercised the option to join the national tax consolidation scheme for Corporate Income Tax (IRES) purposes, provided for in Articles 117-129 of the TUIR. In addition to illimity Bank S.p.A., the scheme also applies to Arec Neprix S.p.A., Fürstenberg SGR S.p.A. (formerly illimity SGR S.p.A.), Abilio S.p.A., Quimmo Agency S.r.l. and Quimmo Prestige Agency S.r.l..
Constituting so-called "intercompany" receivables/payables within the meaning of the consolidated accounts, they are eliminated as part of the consolidation entries and are therefore not included within the items "Other assets" and "Other liabilities" in the consolidated balance sheet of the Banca Ifis Group.
illimity Bank also has a tax transparency agreement with Banca Sella Holding S.p.A. for the pro-rata allocation to illimity Bank of the taxable income and tax losses of the jointly controlled company Hype S.p.A.. Receivables/payables related to the "Hype" tax transparency are recorded under "Other assets" and "Other liabilities" in the consolidated balance sheet of the Banca Ifis Group.
As a result of the acquisition of control of illimity Bank S.p.A. on 4 July 2025, the Banca Ifis Group inherited the regime of national tax consolidation stipulated by illimity Bank.
Highlights for 2025 financial statement assessments
On 14 October 2025, ESMA published an information notice ('European common enforcement priorities for 2025 corporate reading') containing certain topics and recommendations with reference to:
•the preparation of financial reporting for FY 2025, in respect of:
–geopolitical risks and uncertainties;
–segment reporting;
•the preparation of the sustainability statement for FY 2025, in relation to:
–materiality considerations in reporting according to ESRS;
–scope and structure of sustainability statement;
•priorities related to ESEF (European Single Electronic Format) reporting on common errors found in financial reporting;
•some general considerations, among which of particular importance is the connectivity between financial and sustainability reporting.
The following section provides an illustration of the aspects considered as priorities for the assessments conducted for the preparation of the financial information contained in the 2025 Annual Report and for the related disclosure, in line with the recommendations provided by ESMA, most recently in its communication of 14 October 2025 entitled "European common enforcement priorities for 2025 corporate reading". With regard to recommendations in the area of sustainability statement, refer to the 'Sustainability Statement' section of the Directors’ Report on the Group.
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Considerations on geopolitical risks and uncertainties
In this respect, ESMA highlights how the Russia-Ukraine conflict, tensions in the Middle East and in international trade relations continued to generate high volatility in energy and commodity prices, disruptions in supply chains and changes in the balance of global trade in 2025. In light of these dynamics, ESMA considers geopolitical risks and uncertainties to be of significant importance for the 2025 Financial Statements, given their potential impact on the company's performance, financial position and disclosures in the Financial Statements. According to ESMA, these risks can have major implications on several areas of valuation.
To ensure transparency and disclosure consistency, ESMA invites issuers to:
•provide clear, specific and detailed information on the effects that geopolitical uncertainties may have on the company's financial situation and performance;
•update the sensitivity analyses, illustrating how reasonably possible changes in key valuation assumptions could affect the carrying values;
•evaluate, with judgement, the inclusion of additional disclosures, beyond those required by IFRS, when useful to improve understanding of the effects on financial position, cash flows and performance.
In light of the above, the uncertainties attributable to the geopolitical context and, more generally, to the evolution of the macroeconomic scenario were duly taken into account in the relevant estimation processes as well as in risk monitoring activities. In particular, the Banca Ifis Group closely monitors country risk in conflict-affected countries. This continuous monitoring has revealed a limited number of counterparties present in the areas involved by the current international tensions, to which modest direct credit exposures correspond. Similarly, no particular critical issues have been noted with regard to the trade receivables portfolio.
Furthermore, the Risk Management function, in addition to the risk factors usually considered, continues to deem it reasonable to include the current geopolitical tense situation as an additional risk factor.
Given the need to appropriately factor these elements of uncertainty into the main estimation processes, the greatest possible consistency was ensured between the assumptions used and their underlying assumptions applied in the various models.
For further details, refer to what is illustrated later on for the main items of the financial statements and in particular in the following paragraph "Risks and uncertainties related to the use of estimates" of this Part A, and in the sub-section "2.3 Methods for measuring expected losses", within paragraph "1.1 Credit risk" of "Section 2 - Risks of the Consolidated Prudential" of "Part E - Information on risks and related hedging policies" of these Notes to the Consolidated Financial Statements.
Segment reporting considerations
ESMA highlights the need to ensure consistency between the information on operating segments provided in the financial statements, the management report and the management reporting used by the Chief Operating Decision Maker (CODM).
ESMA also points out that paragraph 80 of IAS 36 provides that the Cash Generating Units (CGUs) to which goodwill is allocated for the purpose of impairment testing cannot have a larger scope than the individual Operating Segments identified in accordance with IFRS 8.
Furthermore, it is recalled that the aggregation criteria in paragraph 12 of IFRS 8 can only be applied to Operating Segments with similar economic characteristics. Issuers are therefore required to provide adequate disclosure of the judgements adopted in applying the above criteria, including a description of the aggregated Segments and, where relevant, the indicators supporting the existence of such economic characteristics.
ESMA also emphasises the need to provide timely disclosure of the revenues and costs of the Operating Segments, to the extent that these are disclosed in the management reporting used by management, highlighting any unusual or non-recurring items.
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Lastly, ESMA draws attention to the disclosure requirements contained in paragraphs 33 and 34 of IFRS 8 concerning the breakdown of revenue by geographical area and by major customers.
The Banca Ifis Group revised its model in 2025 in order to consider the impacts of the acquisition of control of the illimity Group.
In particular, in identifying the Banca Ifis Group's Operating Segments, due consideration was given to the methods adopted by Banca Ifis Management in making operational decisions and the methods used to prepare internal reporting, used for the purposes of allocating resources to the various segments and analysing the related performance.
At 31 December 2025, in line with the structure used by Management to analyse the Group's results, the information by Segment is broken down as follows:
•Commercial & Corporate Banking Segment;
•Npl Segment;
•Governance & Services and Non-Core Segment;
•illimity Segment.
The financial and balance sheet numerical of the Segments are attributed on the basis of homogeneous allocation criteria in order to take into account both the specificity of the various segments and the need to guarantee effective monitoring of business performance over time.
With reference to what ESMA emphasised regarding the relevance, in the current context of geopolitical uncertainty and trade barriers, of the disclosure on geographic areas on major customers required by paragraphs 33 and 34 of IFRS 8, it is specified that for the Banca Ifis Group, foreign revenues are very limited, and limited to those recorded by the foreign companies Ifis Finance Sp. z o.o. and Ifis Finance I.F.N. S.A., residing in Poland and Romania, respectively (for more details on the Group's revenues by geographic area, refer to the section "Public Information State by State" in this document). It should also be noted that for the Banca Ifis Group, there are no cases falling under the definition of 'revenue with major customers' pursuant to paragraph 34 of IFRS 8, i.e. revenue with individual external customers exceeding 10% of total revenue.
For more details on the Banca Ifis Group's Segment Disclosures, the logic for identifying Segment and allocating balance sheet and profit and loss data, refer to the section “Contribution of operating Segments to Group Results” of the Directors’ Report on the Group and 'Part L - Segment Disclosures' of these Notes to the Consolidated Financial Statements.
Risks and uncertainties related to the use of estimates
Using accounting standards often requires management to make estimates and assumptions that affect the carrying amounts of assets and liabilities and disclosure of contingent assets and liabilities. In making the assumptions underlying the estimates, management considers all available information at the reporting date of these Consolidated Financial Statements, as well as hypotheses and any other factor deemed reasonable in light of past experience and foreseeable future evolutions.
By their very nature, it is therefore not possible to rule out the possibility that the assumptions made, however reasonable, may not be confirmed in the future scenarios in which the Group will find itself operating. Future results may therefore differ from the estimates made, and adjustments to the carrying amount of assets and liabilities recognised in the financial statements, which cannot be foreseen or estimated at the date of this document, may be necessary. In this regard, it should be noted that adjustments in financial statement estimates may become necessary as a result of changes in the circumstances on which they were based, new information or increased experience.
The accounting policies considered most critical to the true and fair representation of the Group's financial position, results of operations and cash flows are illustrated below, both for the materiality of the amounts to be recognised in the financial statements impacted by these policies, and for the high degree of judgement required in the valuations, which implies the use of estimates and assumptions by management, with reference to the
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specific sections of the notes to the financial statements for detailed information on the valuation processes conducted at 31 December 2025. In particular, the aspects that required the use of complex estimates with significant assumptions are:
•determination of other entities within the scope of consolidation in accordance with IFRS 10;
•determination of the fair value of receivables and financial instruments not quoted in active markets;
•measurement of Npl Segment loans;
•measurement of the Expected Credit Loss (ECL) for receivables other than the Npl Segment and for debt securities;
•estimate of provisions for risks and charges;
•estimate of the recoverability of the value of goodwill recorded;
•determination of the PPA (Price Purchase Allocation);
•assessment in respect of the potential recovery of deferred tax assets (DTAs).
For the items listed above, the principal issues regarding risks and uncertainties associated with estimates are discussed in the following paragraphs.
Determination of other entities included in the scope of consolidation under IFRS 10
The Banca Ifis Group, also following the acquisition of the illimity Group during the year, operates through entities with diversified structures that include, in addition to traditional subsidiaries, securitisation vehicles, investment funds and other structured entities. The assessment of the existence of control for consolidation purposes under IFRS 10 requires a significant degree of judgement in certain circumstances.
In particular, control exists as the Group has:
•power over the investee;
•exposure to variable returns;
•and the ability to affect the amount of its returns.
In order to assess the assumptions of control, all relevant information is taken into account, including the purpose and design of the entity, how decision-making rights are exercised, contractual arrangements, and current and potential voting rights. These assessments may be particularly complex for so-called structured entities for which control is not derived from voting rights but from other contractual mechanisms.
For further information, refer to what was previously reported in 'Section 3 - Scope and Methods of Consolidation', subsection 'Subsidiaries', paragraph '2. Significant judgements and assumptions in determining the scope of consolidation”.
Determination of the fair value of receivables and financial instruments not quoted in active markets
In the presence of receivables and financial instruments not quoted in active markets or illiquid and complex instruments, it is necessary to activate adequate valuation processes characterised with certain judgement on the choice of valuation models and related input parameters, which may sometimes not be observable in the market. There is a degree of subjectivity involved in assessing whether certain inputs are observable and categorising them within the fair value hierarchy accordingly. For qualitative and quantitative information on the method to determine the fair value of instruments measured at fair value, reference should be made to paragraph "A.2 - Main items of the financial statements" of these Notes to the Consolidated Financial Statements.
Measurement of Npl Segment loans
If a credit exposure is impaired upon initial recognition, it qualifies as a “Purchased or Originated Credit Impaired (POCI) financial asset”. An asset is considered impaired on initial recognition if the credit risk is very high and, in the case of purchase, the price has been paid at a significant discount to the outstanding contractual debt. For these assets, the amortised cost and consequently the interest income is calculated using a credit-adjusted effective interest rate. With respect to the determination of the effective interest rate, the aforementioned credit
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adjustment consists of taking into account expected credit losses over the entire remaining life of the asset when estimating future cash flows.
In addition, the assets under consideration also provide for a special treatment with regard to the impairment process, as they are always subject to the determination of an expected loss over the life of the financial instrument; therefore, after initial recognition, gains or losses arising from any change in the expected loss over the life of the receivable with respect to the initial loss must be recognised in the income statement. It is therefore not possible for the calculation of expected losses for such assets to be made using a time horizon of one year.
Receivables of this kind are measured with significant recourse to proprietary valuation models that are subject to ongoing verification and adjustment. Specifically, the Risk Management function, when assessing the Bank’s capital adequacy (ICAAP), regularly assesses the so-called model risk, since the characteristics of the business model imply a high level of variability concerning both the amount collected and the date of actual collection.
In particular, for receivables undergoing non-judicial operations, the proprietary model in use estimates cash flows by projecting the breakdown of the amount of the receivable over time based on the historical collection profile for similar clusters. In addition, for the positions with settlement plan funding characteristics, a deterministic model based on the measurement of the future instalments of the plan, net of the historical default rate is used. Therefore, the timely and careful management of cash flows is particularly important. To ensure expected cash flows are correctly assessed, also with a view to correctly pricing the transactions undertaken, the Group carefully monitors the trend in collections compared to expected flows.
For receivables undergoing judicial operations, i.e. for positions for which the presence of a job or a pension has been verified, a model has been developed for estimating cash flows prior to obtaining the Garnishment Order (ODA). In particular, cash flows are estimated for all those positions that have obtained a decree not opposed by the debtor from 1 January 2018.
The other positions undergoing judicial operations continue to be recognised at cost until said requirements are met or a garnishment order is issued.
Upon garnishment order, future cash flows are analytically determined on the basis of the objective elements known for each individual position; in this case, therefore, the estimates applied relate mainly to the identification of the duration of the payment plan.
In addition to the above, judicial operations involve also collection efforts, i.e. foreclosure proceedings, which consist of several stages and apply to portfolios originated in corporate, banking, or real estate segments where cash flows are measured by means of the manager’s analytical forecasts.
Reference should be made to the details given in Part E of these Notes to the Consolidated Financial Statements, “Information on risks and related hedging policies”.
Measurement of the Expected Credit Loss (ECL) for receivables other than the Npl Segment and for debt securities
The determination of the ECL for financial assets measured at amortised cost is a complex process that requires the use of significant assumptions and estimates.
For financial assets for which no objective evidence of loss has been individually identified, i.e. for unimpaired ("performing") exposures, the impairment model involves the need to identify whether or not there has been a significant deterioration since the date of initial recognition of the exposure and the allocation to the three stages of credit risk under IFRS 9 of loans and debt securities classified as Financial assets at amortised cost and as Financial assets at fair value through other comprehensive income.
The IFRS 9 impairment model requires, in fact, that losses be determined with reference to the time horizon of one year for financial assets that have not undergone a significant deterioration in credit risk since initial recognition (Stage 1) rather than by reference to the entire life of the instrument if a significant deterioration or indicator of impairment has been established (Stage 2 and Stage 3).
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It therefore follows that the calculation of the relevant expected losses requires an articulated estimation process that mainly concerns:
•the determination of PD and LGD risk parameters including forward-looking information;
•the assessment of the presence of a significant increase in credit risk (SICR), based on criteria that consider qualitative and quantitative information;
•the measurement of certain elements necessary for the determination of estimated future cash flows arising from non-performing loans: the expected debt collection times, the presumed realisable value of any guarantees, the costs that it is deemed will be incurred to recover the credit exposure and lastly the likelihood of sale for positions for which there is a disposal plan.
Within the range of possible approaches to estimation models permitted by the relevant international accounting standards, the use of specific methodologies or the selection of certain estimation parameters may significantly influence the measurement of such assets. These methodologies and parameters are necessarily subject to a continuous updating process, also in light of the historical evidence available, with the aim of refining the estimates to better represent the estimated realisable value of the credit exposure.
With specific reference to climatic and environmental risk factors, the materiality analysis conducted led to their quantification as non-material.
For more information on the methods and models used to determine the ECL, refer to the explanations given in paragraph “2.3 Measurement of expected credit losses” contained in the "Credit risk" section of "Part E - Information on risks and related hedging policies” of these Notes to the Consolidated Financial Statements.
Estimate of provisions for risks and charges
The companies making up the Group are party to certain types of litigation and are also exposed to numerous contingent liabilities. The complexities of the specific situations underlying the pending litigations, together with possible interpretation issues, require in certain circumstances significant judgement in estimating the liabilities that may arise upon settlement of the pending litigations. The difficulties of assessment affect both the an and the quantum, as well as the timing of the eventual manifestation of the liability, and are particularly evident when the proceedings initiated are at an early stage. These circumstances make the valuation of contingent liabilities difficult. As a result, the classification of contingent liabilities and the consequent valuation of the necessary provisions are sometimes based on non-objective elements of judgement and require the use of even complex estimation procedures.
Specifically, the Group recognises a liability when:
•a legal or constructive obligation exists as a result of a past event;
•it is likely that it will be necessary to spend resources which could generate economic benefits to settle the obligation;
•the amount of the obligation can be reliably estimated.
Should all these conditions not be met, no liability is recognised.
The amount recognised as a provision represents the best estimate of the expense required to meet the obligation and reflects the risks and uncertainties regarding the facts and circumstances in question.
Where the cost deferral is significant, the amount of the provision is determined as the present value of the best estimate of the cost to settle the obligation. In this case a discount rate is used that reflects current market assessments.
The provisions made are periodically reviewed and, if necessary, adjusted to reflect the best current estimate. When the review finds that the cost is unlikely to be incurred, the provision is reversed.
The provisions for risks and charges on commitments and guarantees granted include the provisions for credit risk set aside for loan commitments and the other guarantees granted that fall within the scope of the impairment rules in IFRS 9. As a general rule, in this case the Bank adopts the same methods for allocating items to three
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credit risk Stages and calculating expected credit losses as the ones described for financial assets measured at amortised cost or at fair value through other comprehensive income.
Estimate of the recoverability of the value of goodwill recorded
In accordance with IAS 36, goodwill must be impairment tested at least annually, to check that the value can be recovered. IAS 36 also requires, moreover, at each reporting date, including, therefore, the interim reports, an analysis aimed at identifying the presence of any loss indicators (termed "Trigger Events") upon the occurrence of which an impairment test must be carried out. The recoverable value is the greater of Value in Use and fair value, net of the costs of sale. As at 31 December 2025, goodwill recognised as an asset consisted of:
•38,0 million Euro (unchanged from 31 December 2024) as goodwill arising from the business combination of the former Fbs Group, fully allocated to the “Npl Segment” Cash Generating Unit (CGU);
•17,2 million Euro as the positive difference in value resulting from the still provisional PPA process associated with the acquisition of Euclidea SIM 96, which took place in November 2025 (for more details, refer to "Part G - Business Combination Transactions involving Companies or Business Units" of these Notes to the Consolidated Financial Statements).
For the purposes of estimating the recoverable amount, the Group, for the goodwill relative to the “Npl Segment” CGU, proceeded to determine the value in use by estimating both future cash flows in the explicit forecast period (determined based on the 2026-2028 economic and equity projections for the CGU under analysis, as approved by the Parent company's Board of Directors on 11 February 2026) and the Terminal Value. In a similar fashion, the Group also estimated the discounting rate of future cash flows previously estimated. The discounting rate has been determined by the Group using the “Capital Asset Pricing Model” (CAPM).
The results of the impairment test conducted at 31 December 2025 led to the confirmation of the recoverability of the carrying amount in the Consolidated financial statements.
As regards details of the impairment test conducted on goodwill at 31 December 2025, we would refer you to the more detailed information given in "Part B - Information on the Consolidated Statement of Financial Position, Assets", "Section 10 - Intangible assets - Item 100", Paragraph "10.3 Other information" of these Notes to the Consolidated Financial Statements.
Determining the PPA (Price Purchase Allocation)
Business combinations must be booked as per the standards established by IFRS 3, using the acquisition method. Goodwill is initially stated at cost represented by the excess of the total amount paid and the amount recognised for minority interests in respect of the net identifiable assets acquired and the liabilities assumed by the Group.
The PPA process inherently involves a high degree of discretion and technical complexity. The determination of the fair value of net assets acquired requires: the recognition and analysis of information available at the date of aggregation, the use of appropriate valuation techniques, and the selection of inputs and assumptions that are often unobservable, such as expected cash flows, discount rates, turnover rates, and risk parameters specific to the asset being valued. These elements require a significant level of professional judgement, with potentially material effects on the quantification of goodwill/badwill resulting from the combination.
The purchase price allocation (“PPA”) of the aggregation to assets, liabilities and potential liabilities of the subject acquired, as can be identified at the purchase date and measured at their respective fair values, a preventive mapping has been carried out of all the assets and liabilities for which it was considered likely to encounter significant differences in value between the fair value and the respective carrying amount.
96 Euclidea SIM was renamed Fürstenberg SIM with effect from 26 January 2026.
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In particular, the fair values are determined on the basis of the methodology considered to be most appropriate for each class of asset and liability acquired (for example, for the loan portfolio, the Discounted Cash Flow - DCF - method).
If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the new valuation still shows a fair value of the net assets acquired higher than the amount, the difference (profit) is recognised in the income statement in the item “Other operating income (costs)” as “gain on a bargain purchase” (badwill).
For more details on the PPA processes carried out for business combinations during the year, refer to 'Part G - Business Combination Transactions involving Companies or Business Units' of these Notes to the Consolidated Financial Statements.
Assessment in respect of the potential recovery of Deferred Tax Assets (DTAs)
Assets recognised in the Financial Statements include Deferred Tax Assets (DTAs) mainly generated by temporary differences between the date certain business costs are recognised in the income statement and the date on which the same costs may be deducted, rather than arising from tax loss carry-forwards.
In accordance with accounting standard IAS 12, referred to in the "Group Impairment Policy", a tax asset can only be recognised to the extent that it is probable that future taxable income will be available to allow for its recoverability.
Recognition of these assets and their subsequent maintenance therefore presupposes an assessment of the likelihood of their recovery. This assessment is not carried out for deferred tax assets pursuant to Law No. 214 of 22 December 2011, which can be transformed into tax credits in the event of the recognition of a "statutory loss", a "tax loss" for IRES tax purposes and a "negative net production value" for IRAP tax purposes, and for which the relative recovery is therefore certain regardless of the ability to generate future income.
For the remaining tax assets that cannot be transformed into tax credits, the judgement of their likelihood is supported by a valuation exercise of recoverability (referred to as the “probability test”). Based on the provisions of IAS 12 and the considerations made by ESMA in its paper of 15 July 2019, the aforementioned assessment of recoverability requires a careful reconnaissance of all evidence supporting the likelihood of having sufficient taxable income in the future, also taking into account the circumstances that generated the tax losses, which should be traced back to clearly identified causes that are deemed to be non-repeatable in the future on a recurring basis.
The comprehensive total of DTAs at 31 December 2025 is 250,8 million Euro (of which 91,3 million Euro allocated to the illimity Group), including the 63,4 million Euro portion attributable to Law 214/2011 (equal to 25,3% of the total DTA), which will be reversed by 2029 due to express regulatory provision. It is recalled that such deferred tax assets, which meet the requirements set forth by the specified Law, can be transformed into tax credits in the event of the recognition of a "statutory loss", a "tax loss" for IRES tax purposes and a "negative net production value" for IRAP tax purposes; their recovery is therefore certain regardless of the capacity to generate future income. The maintenance of convertibility into tax credits is subject to the exercise of the option provided for by D.L. No. 59 of 3 May 2016, converted with amendments by Law No. 119 of 30 June 2016, which the Group decided to avail itself of in accordance with the envisaged terms and conditions.
On the basis of the valuation exercise conducted on the residual amount, its recovery was assessed as probable, albeit over a medium- to long-term time horizon. A significant portion of past tax losses and ACE surpluses would be fully recovered (greater than 85%) by 2033. The remaining portion refers mainly to financial assets measured at fair value through other comprehensive income (FVOCI) and is therefore related to the performance of the related reserve.
In view of the uncertainty regarding the recoverability of DTAs on tax losses and ACE surpluses over the time horizon considered, no deferred tax assets were recognised for 2,9 million Euro, relating to tax losses and ACE
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surpluses accrued by the subsidiary Cap.Ital.Fin. prior to its entry into the Banca Ifis Group (which took place in 2018).
With reference to the companies acquired during the year, no deferred tax assets were recognised as follows:
•illimity Bank for 76,8 million Euro, relating to tax losses accrued in the 2025 tax year;
•Euclidea SIM (from 26 January 2026 renamed Fürstenberg SIM) in the amount of 3,6 million Euro, relating to tax losses and ACE surpluses accrued until the 2025 tax year;
•Quimmo Agency (a company included in the illimity Group) in the amount of 0,4 million Euro, relating to tax losses accrued prior to its inclusion in the tax consolidation of illimity Bank.
For further details on the valuations made in the preparation of the Financial Statements as at 31 December 2025, refer to "Section 11 - Tax Assets and Tax Liabilities - Item 110 of Assets and Item 60 of Liabilities" in Part B of these Notes to the Consolidated Financial Statements.
Deadlines for the approval and publication of the Financial Statements
Pursuant to Article 154-ter of Italian Legislative Decree No. 59/98 (Consolidated Law on Finance), the Parent company’s Financial Statements must be approved and the Annual Financial Report published, including the draft Annual Financial Statements, the Directors' Report, and the declaration as per Article 154-bis, paragraph 5, within one hundred and twenty days of year end. The Board of Directors approved the Parent company’s draft separate financial statements and the consolidated financial statements on 12 March 2026; the Parent company’s separate financial statements will be submitted to the Shareholders’ Meeting to be held on 16 April 2026 at first call for approval.
Coming into effect of new accounting standards
The Consolidated Financial Statements for the year ended 31 December 2025 have been prepared in accordance with the recognition and measurement criteria of the IFRS accounting standards issued by the International Accounting Standards Board (IASB) and adopted by the European Union and in force at the reporting date. For further details, refer to the above.
New IAS/IFRS accounting standards or amendments to existing accounting standards issued by the IASB, as well as new interpretations or amendments to existing ones, published by the IFRIC, with separate disclosure, whose mandatory application commences after the reporting date of these Financial Statements.
New documents issued by the IASB and endorsed by the EU applicable at the reporting date
Lack of Exchangeability -Amendments to IAS 21, 'The Effects of Changes in Foreign Exchange Rates' (issued on August 2023)
In August 2023, the IASB published amendments to IAS 21 to introduce additional criteria to support entities in assessing the convertibility of one currency into another and in determining the exchange rate to be applied when such convertibility is absent. Prior to the IASB's intervention, IAS 21 governed the accounting treatment in cases of temporary non-convertibility, but did not provide specific guidance for situations where this condition was not temporary. The new provisions fill this gap by introducing a more comprehensive guide. The amendments are applicable as of 1 January 2025, however, following the analysis performed, the Group has assessed that the amendments to IAS 21 did not have a material impact on the Consolidated Financial Statements, nor are they expected to have a material impact in the future.
New IFRS accounting standards or amendments to IFRS accounting standards applicable to financial statements for financial years beginning after 1 January 2025
A - EU-approved documents
“Amendments to the Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7”
In May 2024, the IASB published amendments to IFRS 9 'Financial Instruments' and IFRS 7 'Financial Instruments: Disclosures', with the aim of clarifying some issues that have arisen in application practice. Below are the main changes introduced by the amendment:
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•clarified the date of recognition and derecognition of financial assets and liabilities, and provided a new exception for financial liabilities settled through electronic payment systems;
•introduction of guidance on how to evaluate the contractual flows of instruments with ESG indicators to determine whether or not they meet the SPPI (Solely Payments of Principal and Interest) criterion;
•further guidelines on the evaluation of contingent features (e.g. clauses modifying flows according to ESG targets);
•new disclosure requirements for financial instruments with contractual terms that provide for the possibility of changing financial flows, including instruments linked to the achievement of environmental, social or governance (ESG) objectives;
•update of disclosures on equity securities measured at fair value with impact on comprehensive income (FVOCI).
The expected impacts for the Group are mainly of an organisational nature (e.g. policy definition, product mapping, procedural implementations for required disclosures), while no significant impacts on the Group's balance sheet, financial and economic situation are expected.
“Contracts Referencing Nature-dependent Electricity - Amendments to IFRS 9 and IFRS 7”
On 18 December 2024, the IASB published amendments aimed at better representing the effects of natural source-dependent power supply contracts, which are often structured as power purchase agreements (PPAs). The amount of electricity generated under these contracts may vary depending on factors that cannot be controlled, such as weather conditions. Current accounting requirements may not adequately capture the ways in which these contracts affect a company's performance. The changes include:
•clarification of the application of the requirements for "own use";
•the possibility of using hedge accounting if these contracts are used as hedging instruments;
•the addition of new disclosure requirements to enable investors to understand the effect of these contracts on a company's financial performance and cash flows.
For the above-mentioned changes, no profile of attention from an accounting point of view has emerged at present, as such operations do not exist within the Group.
“Annual Improvements Volume 11”
On 18 July 2024, the IASB issued the customary “Annual Improvements to IFRS Accounting Standards - Volume 11”. The document contains clarifications, simplifications, corrections and amendments to improve the effectiveness of the existing principles. Specifically, these refinements concern IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7. The changes will be effective for budgets from 1 January 2026, with the possibility of early application. These changes are not expected to have a significant impact on the Group's balance sheet, financial position and results of operations, given their minor scope.
“IFRS 18 “Presentation and Disclosure in Financial Statements”
On 9 April 2024, the IASB published the new accounting standard IFRS 18 "Presentation and Disclosure in Financial Statements", which will replace IAS 1 "Presentation of Financial Statements". The new standard is expected to be applied for the first time on 1 January 2027, with comparative information for the previous year required. Early application is possible provided that notice is given.
The new standard aims to improve the comparability, transparency and understandability of financial statement disclosures by introducing new requirements for the presentation of the income statement and strengthening the rules for aggregating and disaggregating financial statement disclosures.
In particular, IFRS 18:
•introduces new compulsory categories for the classification of income and expenses (operating, investment and financing), with new compulsory subtotals, including the operating result;
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•requires greater transparency regarding the use of Management Performance Measures (MPM), through reconciliation with IFRS subtotals and an explanation of the underlying rationale;
•strengthens the criteria for aggregating and disaggregating information in primary prospectuses and notes, in order to ensure a clearer and more consistent presentation.
IFRS 18, like IAS 1, does not introduce mandatory financial statement formats, nor does it provide for a predefined structure for the Notes to the Financial Statements, but defines a minimum set of information to be presented, leaving the preparer of the financial statements with an adequate margin of discretion to ensure the best representation of the entity's financial position, results of operations and cash flows.
The changes introduced will mainly concern the presentation of the profit and loss account and the structure of disclosures, therefore, it will be necessary to ensure coordination with Bank of Italy Circular No. 262/2005, the updates to which will be published in 2026 in order to adapt the financial statement formats to the new requirements of the new standard. Considering that the new standard will mainly affect the presentation methods and not the measurement criteria, no impact on the Group's balance sheet, financial position and results of operations is expected.
B - Standards and documents issued but not yet approved
The following are the new international accounting standards or amendments to them, not yet endorsed by the European Commission, which are mandatory from a date that falls after the reference date of these Financial Statements. The Group does not expect any significant impact deriving from the adoption of the following interpretations and amendments of existing international accounting standards to be material.
IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
On 9 May 2024, the IASB published the new accounting standard IFRS 19 "Subsidiaries without Public Accountability: Disclosures" which will be applicable for reporting periods beginning on 1 January 2027, with the faculty for early adoption.
IFRS 19 allows entities that meet certain requirements to opt for a reduced set of disclosures, while continuing to apply the full recognition, measurement and presentation criteria of other international accounting standards.
In order to apply IFRS 19, at the end of the reporting period an entity must:
•be a subsidiary as defined in IFRS 10;
•have no public accountability;
•have a (ultimate or intermediate) Parent company that prepares consolidated financial statements, available for public use, prepared in accordance with IFRS.
The new standard will be applicable:
•for subsidiaries that use IFRS for small and medium enterprises (SMEs) or national accounting standards (local GAAPs) for their own financial statements, and that are often required to have a dual track for their own financial statements due to the different provisions contained in these standards compared to those in IFRS;
•for subsidiaries that use IFRS accounting standards for their financial statements and are required to provide disclosures that may be disproportionate to the information needs of their users.
This relief is only applicable to subsidiaries that do not have "public liability".
A subsidiary has public liability if:
•its debt or equity instruments are traded on a public market or is in the process of issuing such instruments for trading on a public market (a domestic or foreign stock exchange or an OTC market, including local and regional markets), or
•one of its main activities is holding assets in a fiduciary capacity for a large group of persons (e.g. banks, credit unions, insurance companies, securities brokers, mutual funds and investment banks).
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Entities with the above characteristics may, but are not obliged to, apply IFRS 19 in their consolidated, separate or individual financial statements taking into account the necessary coordination with the Bank of Italy's instructions for the preparation of financial statements.
Due to the nature of its structure, Banca Ifis, as the parent entity, prepares both the statutory and consolidated financial statements of the Group. Consequently, the Bank does not meet the subjective requirements of IFRS 19 to be able to apply the reduced disclosure regime.
Therefore, neither the Separate Financial Statements nor the Consolidated Financial Statements of Banca Ifis will be able to take advantage of the provisions introduced by the new standard.
Amendments to IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
The amendments to IFRS 19, published by the IASB on 21 August 2025, introduce the possibility for eligible subsidiaries not to disclose certain disclosures related to standards issued between February 2021 and May 2024. In relation to the Group's operations and composition, no impact related to the introduction of this standard is expected.
Amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates: Translation to a Hyperinflationary Presentation Currency”
The amendments under review, published on 13 November 2025 and effective from 1 January 2027, clarify how to convert balances from a non-hyperinflationary to a hyperinflationary currency. No impact is expected for the Group, as it does not operate in hyperinflationary environments.
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A.2 - Main items of the financial statements
1 - Financial assets measured at fair value through profit or loss
Classification criteria
This category comprises financial assets other than Financial assets measured at fair value through other comprehensive income and Financial assets measured at amortised cost. Specifically, this line item includes:
•financial assets held for trading, essentially consisting of debt and equity securities as well as the positive amount of derivative contracts held for trading;
•financial assets designated at fair value, i.e. non-derivative financial assets designated as such on initial recognition if the relevant conditions are met. At initial recognition, an entity may irrevocably designate a financial asset as measured at fair value through profit or loss if, and only if, doing so would eliminate or significantly reduce a measurement or recognition inconsistency;
•financial assets mandatorily measured at fair value, consisting of financial assets that are not eligible for the measurement at amortised cost or fair value through other comprehensive income based on the relevant cash flow characteristics. Specifically, this category includes:
–debt instruments, securities and loans without cash flows that are solely payments of principal and interest consistent with a "basic lending arrangement" (so-called "SPPI test" failed);
–debt instruments, securities and loans held within a business model that is neither “Held to collect” (whose objective is to hold the asset to collect contractual cash flows) nor “Held to collect and sell” (whose objective is achieved by both collecting contractual cash flows and selling financial assets);
–UCITS units;
–equity instruments for which the Group elects not to use the option under the standard to measure them at fair value through other comprehensive income (so-called “OCI Option”).
Derivative contracts include those embedded in complex financial instruments if the host contract is not a financial asset falling within the scope of IFRS 9, which are recognised separately if:
•the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host contract;
•a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative;
•the hybrid instrument they are part of is not measured at fair value with the relevant changes recognised in profit or loss.
Reclassifications to other categories of financial assets are allowed only if the entity changes its business model to manage the financial assets. In these cases, financial assets may be reclassified from the category measured at fair value through profit or loss to one of the other two categories under IFRS 9 (Financial assets measured at amortised cost or Financial assets measured at fair value through other comprehensive income). The transfer value corresponds to the fair value at the time of the reclassification, which is applied prospectively from the reclassification date. In this case, the effective interest rate of the reclassified financial asset is calculated based on its fair value at the reclassification date, which is considered to be the date of initial recognition for the stage allocation for impairment purposes.
Recognition criteria
Financial assets are initially recognised at the date of settlement in the case of debt and equity securities, at the date of disbursement for loans and at inception in the case of derivative contracts. At initial recognition, financial assets are measured at fair value, which is normally equal to the price paid excluding the expenses and income directly attributable to the instrument, which are recognised in profit or loss.
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Measurement criteria
Even after initial recognition, financial assets are measured at fair value, and the impact of the application of this method is recognised through profit or loss.
The fair value of the financial instruments included in this portfolio is calculated based on quoted prices in active markets, prices provided by market participants, or internal valuation models generally used for pricing financial instruments that take into account all relevant risk factors and are based on observable market data.
In the case of financial assets not quoted in an active market, the cost method is used as an approximation of fair value exclusively on a residual basis and in limited circumstances, that is if all the other previously mentioned measurement methods are not applicable.
Interest is shown under item "10. Interest receivable and similar income”.
Gains and losses from trading and valuation gains and losses from the trading portfolio, including derivatives associated with financial assets/liabilities designated at fair value, are recognised in the income statement under item “80. Net profit (loss) from trading”. The same economic effects relating to financial assets designated at fair value and those mandatorily measured at fair value are recorded under item "110. Net result of other financial assets and liabilities measured at fair value through profit or loss", under "a) financial assets and liabilities measured at fair value” and “b) other financial assets mandatorily measured at fair value”.
Derecognition criteria
Financial assets are derecognized only when the contractual rights to the cash flows expire or when the assets are disposed of if the disposal resulted in the substantial transfer of all risks and rewards associated with the assets. Should the company retain part of the relevant risks and rewards, the financial assets will continue to be recognised, even though legal ownership has been actually transferred to a third party.
Where it is not possible to ascertain the substantial transfer of the risks and rewards, financial assets are derecognised if the company no longer has control over them. Otherwise, the financial assets are recognised proportionally to the entity’s continuing involvement in the asset, measured according to the exposure to changes in the transferred assets’ value and cash flows.
Lastly, as for the transfer of collection rights, transferred financial assets are derecognised even if contractual rights to receive cash flows are maintained but an obligation to pay such flows to one or more entities is taken on.
2 - Financial assets measured at fair value through other comprehensive income
Classification criteria
This category comprises financial assets that meet both the following conditions:
•the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets (“HTC&S - Held to Collect and Sell” Business Model), and
•the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest consistent with a “basic lending arrangement”, in which consideration for the time value of money and credit risk are typically the most significant elements of interest (so-called “SPPI test” passed).
In addition, this line item includes equity instruments not held for trading for which at initial recognition the entity used the option to measure them at fair value through other comprehensive income not to be reclassified to profit or loss (so-called "OCI Option").
Reclassifications to other categories of financial assets are allowed only if the entity changes its business model to manage the financial assets. In these cases, financial assets may be reclassified from the category measured at fair value through other comprehensive income to one of the other two categories under IFRS 9 (Financial assets measured at amortised cost or Financial assets measured at fair value through profit or loss). The transfer value
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corresponds to the fair value at the time of the reclassification, which is applied prospectively from the reclassification date. If the asset is reclassified from the category concerned to amortised cost, the fair value of the financial asset at the reclassification date is adjusted by the accumulated gain (loss) presented in the valuation reserve. If the asset is reclassified to fair value through profit or loss, the accumulated gain (loss) previously recognised within the valuation reserve is reclassified from equity to profit or loss.
Recognition criteria
Financial assets are initially recognised at the date of settlement in the case of debt and equity securities, whereas loans are recognised at the date they were granted. These assets are initially recognised at fair value, including transaction costs directly attributable to the instruments, if any.
Measurement criteria
After initial recognition, the assets measured at fair value through other comprehensive income that are not equity securities are measured at fair value, recognising the impact of the application of amortised cost, impairment, and any exchange rate changes through profit or loss. Gains and losses resulting from changes in fair value are recognised under a dedicated equity reserve until the financial asset is transferred: then, accrued profits and losses are reclassified to profit or loss.
The equity instruments the Group elected to classify within this category are measured at fair value, and the amounts recognised through equity (Statement of comprehensive income) are not subsequently reclassified to profit or loss - including in the event of their disposal. The relevant dividends represent the only component of the equity securities concerned that is recognised through profit or loss.
The fair value is calculated on the basis already described for Financial assets measured at fair value through profit or loss.
In the case of Financial assets measured at fair value through other comprehensive income that are either debt securities or receivables, at each reporting date, including interim reporting dates, the Bank assesses whether a significant increase in credit risk (impairment) has occurred pursuant to IFRS 9, recognising an impairment loss to cover the expected credit losses through profit or loss.
Conversely, equity securities are not tested for impairment.
Derecognition criteria
Derecognition of financial assets measured at fair value through comprehensive income occurs when contractual rights to cash flows expire or if the assets are sold but only if the sale has resulted in the substantial transfer of all risks and rewards associated with the assets. Should the company retain part of the relevant risks and rewards, the financial assets will continue to be recognised, even though legal ownership has been actually transferred to a third party.
Where it is not possible to ascertain the substantial transfer of the risks and rewards, financial assets are derecognised if the company no longer has control over them. Otherwise, the financial assets are recognised proportionally to the entity’s continuing involvement in the asset, measured according to the exposure to changes in the transferred assets’ value and cash flows.
Lastly, as for the transfer of collection rights, transferred financial assets are derecognised even if contractual rights to receive cash flows are maintained but an obligation to pay such flows to one or more entities is taken on.
3 - Financial assets measured at amortised cost
Classification criteria
This category includes financial assets (specifically loans and debt securities) that meet both the following conditions:
•the financial asset is held within a business model whose objective is achieved by collecting contractual cash flows ("HTC - Held to Collect" Business Model), and
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•the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest consistent with a “basic lending arrangement”, in which consideration for the time value of money and credit risk are typically the most significant elements of interest (so-called “SPPI test” passed).
Specifically, if the above technical requirements are met, this line item includes:
•loans and advances to banks, with the exception of loans and advances on demand (which are classified under "Cash and cash equivalents");
•receivables due from customers, largely consisting of:
–demand advances to customers as part of factoring operations vis-à-vis a receivables portfolio factored with recourse and still recognised in the seller’s statement of financial position, or vis-à-vis receivables factored without recourse, providing no contractual clauses that eliminate the conditions for their recognition exist;
–loans to customers deriving from mortgages or loans extended as part of corporate banking operations;
–repurchase and reverse repurchase agreements;
–receivables arising from finance leases;
–salary- or pension-backed loans or payment delegations;
–a portfolio of impaired loans acquired from third-party operators (referred to as “POCI”);
•debt securities acquired through subscription or private placement, with fixed or determinable payments, not quoted in active markets.
Reclassifications to other categories of financial assets are allowed only if the entity changes its business model to manage the financial assets. In these cases, which are expected to be very infrequent, the financial assets may be reclassified from the category measured at amortised cost to one of the other two categories under IFRS 9 (Financial assets measured at fair value through other comprehensive income or Financial assets measured at fair value through profit or loss). The transfer value corresponds to the fair value at the time of the reclassification, which is applied prospectively from the reclassification date. Gains or losses arising from the difference between the amortised cost of the financial asset and the relevant fair value are measured through profit or loss if the asset is reclassified to Financial assets measured at fair value through profit or loss or, if it is reclassified to Financial assets measured at fair value through other comprehensive income, through equity, within the specific valuation reserve.
Recognition criteria
These financial assets are initially recognised at the date of settlement in the case of debt and equity securities, whereas loans are recognised at the date they were granted. At initial recognition, the assets are measured at fair value, including transaction income or costs directly attributable to the asset. Costs meeting these characteristics, but to be reimbursed by the debtor or falling under normal internal administrative costs, are excluded.
Repurchase agreements or reverse repurchase agreements are recognised as funding or lending transactions. Specifically, repurchase agreements are recognised as payables for the amount received, while reverse repurchase agreements are recognised as receivables for the amount paid.
Measurement criteria
After initial recognition, receivables are measured at amortised cost, which is equal to the initial amount minus/plus principal repayments, impairment losses/reversals of impairment losses, and amortisation calculated using the effective interest method. The effective interest rate is calculated as the rate at which the present value of expected cash flows for the principal and interest is equal to the amount of the loan granted, including any costs/revenues directly attributable to the financial asset. This finance-based accounting method allows to spread the economic effect of costs/revenues over the expected residual life of the receivable.
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In addition, the Group estimates the cash flows from receivables due from Italy's National Health Service (NHS) using a proprietary model, calculating the interest on arrears considered recoverable based on historical evidence and differentiating according to the type of collection actions taken (settlement or judicial action).
The amortised cost method usually does not apply to short-term loans, as the effect would be immaterial. These are measured instead at their acquisition cost. A similar criterion applies to loans without a definite payment date or revocable loans. Furthermore, newly acquired distressed retail loans are measured at cost until the Bank has started taking action to collect the debt, as specified later on in the part concerning non-performing exposures in the Npl Segment.
At each reporting date, including interim reporting dates, the Group estimates the impairment of these assets in accordance with the impairment rules of IFRS 9.
The aforementioned assets are in fact examined with the aim of estimating the expected losses in value related to credit risk (“ECL” - “Expected Credit Losses”). These losses are recognised in the income statement under item "130. Net credit risk losses/reversals”. If it is found that there is no reasonable expectation of recovery, the gross exposure is written off: in such a case, the gross exposure is reduced by the amount considered unrecoverable, offset by the reversal of the provision to cover expected losses and impairment losses in the income statement, for the portion not covered by the provision.
In more detail, the impairment model, as described in detail in paragraph “16 - Other Information” of this Section A.2, provides for the classification of assets into three distinct "Stages" (Stage 1, Stage 2, Stage 3), depending on the evolution of the debtor's creditworthiness, to which correspond different criteria for measuring expected losses:
•Stage 1: unimpaired (performing) financial assets for which no significant deterioration in credit risk has been observed since initial recognition or for which the credit risk is considered low. Impairment is based on an estimate of expected loss with a time horizon of one year;
•Stage 2: unimpaired (performing) financial assets that have experienced a significant deterioration in credit risk since initial recognition (SICR - “Significant Increase in Credit Risk”). Impairment is based on an estimate of the expected loss over the entire remaining life of the financial asset;
•Stage 3: impaired financial assets for which there is objective evidence of impairment and which are assessed on the basis of an estimate of the expected loss over the life of the instrument.
For performing assets, expected losses are determined according to a collective process based on certain risk parameters represented by the probability of default (PD), the loss given default (LGD) and the exposure value (EAD).
For impaired assets, impairment losses are quantified on the basis of an analytical valuation process according to homogeneous risk categories - aimed at determining the present value of expected future recoverable cash flows, discounted on the basis of the original effective interest rate.
Impaired assets include exposures that have been attributed the status of non-performing, unlikely to pay or past-due/overdrawn for more than ninety days according to the definitions established by current supervisory regulations (Bank of Italy Circular No. 272 "Accounts Matrix") and recalled by Bank of Italy Circular No. 262, as they are considered consistent with the accounting rules set forth by IFRS 9 in terms of objective evidence of impairment.
The projected cash flows also take into account expected recovery times and the presumed net realisable value of any guarantees.
The original value of the financial assets is reinstated in subsequent years if the credit quality of the exposure improves compared to that which led to the previous write-down. The write-back is recorded in the income statement under the same heading ("130. Net credit risk losses/reversals") and, in any event, may not exceed the amortised cost that the asset would have had in the absence of previous adjustments.
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For further details, please refer to paragraph "2.3 Measurement of expected losses" in "Section 2 - Prudential consolidation risks" of "Part E - Information on risks and related hedging policies" of these Notes to the Consolidated Financial Statements.
Purchased or Originated Credit Impaired (POCI)
“Purchased or Originated Credit Impaired (POCI) Financial Assets” means the exposures that were impaired at the date they were acquired or originated.
POCI financial assets include also the exposures acquired as part of sales (of either individual assets or portfolios) and business combinations.
As previously mentioned, interest is accounted for by applying a credit-adjusted effective interest rate, i.e. the rate that, upon initial recognition, discounts all the asset's estimated future cash receipts at amortised cost considering also lifetime expected credit losses.
The Bank regularly reviews said expected credit losses, recognising impairment losses or gains through profit or loss. Favourable changes in lifetime ECLs are recognised as an impairment gain, even if said lifetime ECLs are lower than those incorporated into cash flow estimates at initial recognition.
"Purchased or Originated Credit Impaired Financial Assets" are usually allocated to Stage 3 at initial recognition.
A subsequent improvement in the counterparty's creditworthiness, which may be reflected in the present value of cash flows, shall cause the exposure to be classified within Stage 2.
These assets shall never be allocated to Stage 1, as the expected credit loss must always be calculated over a time horizon equal to their remaining useful life, whereas IFRS 9 requires an ECL estimated over a 12-month horizon for Stage 1 assets.
The Npl Segment's receivables almost all qualify as POCI financial assets (POCIs are the Segment's core business) and are recognised and assessed through the following steps:
•at the time of purchase, receivables are recognised by allocating the portfolio's purchase price among the individual receivables it consists of through the following steps:
–recognition of the individual receivables at a value equal to the contract price, which is used for the purposes of reporting to the Central Credit Register;
–after verifying the documentation, if provided in the contract, the Bank returns the positions lacking documentation or beyond the statute of limitations to the seller, and measures the fair value of receivables which actually exist and can be collected; finally, after sending a notice of assignment to the debtor, the Bank can start taking action to collect the receivable;
–once the collection process begins, receivables are measured at amortised cost using the effective interest rate method (the “EIR” or “TIR”);
–the effective interest rate is calculated on the basis of the price paid, the transaction costs, if any, and the estimated cash flows and collection time calculated using either proprietary models or analytical estimates made by managers;
–the effective interest rate as set out in the previous point is unchanged over time;
–at the end of each year, interest income accrued on the basis of the original effective interest rate is recognised under Interest Income. Said interest is calculated as follows: Amortised Cost at the beginning of the year x IRR/365 x days in the year;
–in addition, at the end of each financial year, the expected cash flows for each position are re-estimated;
•should events occur (higher or lower revenues realised or expected compared to forecasts and/or a change in collection times) which cause a change in the amortised cost (calculated by discounting the new cash flows at the original effective rate compared to the amortised cost in the financial year), this change is also recognised under "Credit risk losses/reversals" on the income statement.
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Derecognition criteria
Financial assets measured at amortised cost are derecognised when all contractual rights over the cash flows have expired or if they are assigned but only when all relevant risks and rewards have been substantially transferred. Should the company retain part of the relevant risks and rewards, the financial assets will continue to be recognised, even though legal ownership has been actually transferred to a third party.
Where it is not possible to ascertain the substantial transfer of the risks and rewards, financial assets are derecognised if the company no longer has control over them. Otherwise, the financial assets are recognised proportionally to the entity’s continuing involvement in the asset, measured according to the exposure to changes in the transferred assets’ value and cash flows.
Finally, as for the transfer of collection rights, transferred financial assets are derecognised even if contractual rights to receive cash flows are maintained but an obligation to pay such flows to one or more entities is taken on.
Specifically in respect of non-performing exposures, they shall be derecognised when considered unrecoverable and the Group forfeits the legal right to collect. For instance, this occurs when insolvency proceedings are settled, the borrower dies without heirs, a court issues a final ruling that the debt does not exist, etc.
As for total or partial derecognitions without a forfeiture of the right to collect the receivable (i.e. “write-off”), to avoid continuing to recognise receivables that, even though they are still managed by debt collection structures, are highly unlikely to be recovered, the Group identifies the exposures to be derecognised that have all of the following characteristics:
•the receivable has been written off;
•the receivable has been classified as a bad loan for more than 5 years;
•the counterparty has filed for bankruptcy, been put into administrative liquidation (LCA), or is subject to any insolvency proceedings.
Derecognitions are directly recorded under "Net credit risk losses/reversals" to the extent of the unadjusted remaining portion, and are recognised as a reduction of the principal. Partial or complete reversals of previous impairment losses are recognised as a reduction of “Net credit risk losses/reversals”.
In some cases, throughout the life of the financial assets concerned, and specifically of receivables, the parties to the agreement subsequently agree to modify the original contractual terms. When, during the life of an instrument, the contractual terms are modified, the Group shall assess whether the original asset must continue to be recognised or, conversely, the original instrument must be derecognised and a new financial instrument recognised in its place.
Generally, modifications of a financial asset result in its derecognition and the recognition of a new asset when they are "substantial". The "substantiality" of the modification shall be assessed considering both qualitative and quantitative factors. In some cases, it will become apparent, without conducting complex analyses, that the changes introduced substantially modify the characteristics and/or contractual cash flows of a specific asset, whereas in other cases, additional analyses (including quantitative analyses) will be required to appreciate their impact and assess whether to derecognise the asset and recognise a new financial instrument.
The (quali-quantitative) analyses aimed at defining the "substantiality" of the contractual modifications made to a financial asset shall therefore consider:
•the purposes for which the modifications were made: for instance, renegotiations for business reasons or forbearance measures due to the counterparty's financial difficulties;
•the existence of specific objective factors affecting the substantial modifications of the characteristics and/or contractual cash flows of the financial instrument (including, but not limited to, the modification of the type of counterparty risk the entity is exposed to) that are believed to require derecognising the asset because of their impact (estimated to be significant) on the original contractual cash flows.
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4 - Hedge accounting
Classification criteria
With reference to hedging, the Banca Ifis Group has chosen to adopt the provisions of IFRS 9 for first-time application and not to avail itself of the option, provided by the same standard, to apply the hedge accounting rules dictated by IAS 39, in the version endorsed by the European Commission (the “carved out” version), with the exception of the specific cases provided for in IFRS 9 (par. 6.1.3) and not governed by the same standard.
Risk hedging transactions are intended to neutralise, from an accounting point of view, potential recognisable losses on a particular financial instrument or group of financial instruments, attributable to a particular risk, by means of recognisable gains on a different financial instrument or group of financial instruments should that particular risk actually arise.
Only instruments involving a counterparty outside the Group can be designated as hedging instruments.
The only type of hedge used by the Group at 31 December 2025 is the fair value hedge (fair value hedge), which is intended to hedge the exposure to changes in the fair value of a balance sheet asset or liability attributable to a particular risk. At the level of fair value hedging, the Group adopts both specific hedges ('micro fair value hedges') and generic hedges ('macro fair value hedges'). Generic hedges were adopted starting from the third quarter of 2025 as a result of the acquisition by the Parent company Banca Ifis of control of illimity Bank on 4 July 2025, which entailed the inclusion within the perimeter of the Banca Ifis Group of the hedge accounting practices implemented by illimity Bank and its subsidiaries (including macro fair value hedges).
A derivative instrument may be considered to be a hedging instrument if there is formalised documentation of the unique relationship to the hedged item and if it is effective at the time the hedge commences and, prospectively, over the life of the hedge.
At the start of the hedging relationship there must be a formal designation and documentation of the hedging relationship, the company's risk management objectives, and the hedging strategy. This documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how to assess the effectiveness of the hedging instrument in offsetting the exposure to changes in the fair value of the hedged item.
Recognition criteria
Derivative hedging instruments are recognised at fair value, on the date the relevant contracts are entered into, and are classified as assets under item "50. Hedging derivatives" or on the liabilities side of the balance sheet under item "40. Hedging derivatives” depending on whether the value is positive or negative.
Measurement criteria
After initial recognition, hedging derivatives continue to be measured at fair value. Specifically, in the case of fair value hedges, the change in the fair value of the hedged item is offset by the change in the fair value of the hedging instrument. This offsetting is recognised through the recognition in the income statement (or in the equity valuation reserve in the case of fair value hedges on equity securities measured at fair value through other comprehensive income) of changes in value, referring both to the hedged item (as regards changes produced by the underlying risk factor) and to the hedging instrument. Any difference, representing the partial ineffectiveness of the hedge, consequently constitutes the net effect on profitability.
In the case of generic fair value hedges ("macro fair value hedges"), changes in fair value with reference to the hedged risk of the hedged assets and liabilities are recognised in the balance sheet under the item "Value adjustment of macro hedged financial assets" or "Value adjustment of macro hedged financial liabilities", respectively.
The effectiveness of the hedge depends on the extent to which changes in the fair value of the hedged instrument are offset by those of the hedging instrument. Therefore, effectiveness is appreciated by comparing the above-mentioned variations, taking into account the intent pursued at the time the hedge was implemented.
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Effectiveness occurs when changes in the fair value of the hedging financial instrument almost entirely neutralise changes in the hedged instrument for the hedged risk element.
Effectiveness is assessed at each balance sheet or interim reporting date using prospective tests, which justify the application of hedge accounting by demonstrating the expected effectiveness based on limits defined internally by the Group.
If the tests do not confirm the effectiveness of the hedge, hedge accounting is discontinued, the hedging derivative contract is reclassified as a trading instrument and the hedged financial instrument regains the valuation criterion corresponding to its balance sheet classification. If the hedged asset or liability is measured at amortised cost, the higher or lower value resulting from the measurement of the hedged asset or liability at fair value due to the hedge becoming ineffective is recognised in the income statement using the effective interest rate method.
In addition, the accounting for outstanding fair value hedges ceases prospectively in the following cases:
•the hedging instrument matures, is terminated or exercised;
•the hedged item is sold, expires or is refunded;
•the decision is made to revoke the designation.
5 - Equity investments
Classification criteria
This item includes interests held in associates or joint ventures, which are accounted for using the equity method.
Associated companies are considered to be non-controlled companies in which significant influence is exercised. Significant influence is presumed to be exercised in all cases where the company holds 20% or more of the voting rights (including “potential” voting rights) and, irrespective of the share held, where there is the power to participate in the management and financial decisions of the investee companies by virtue of particular legal ties, such as shareholders' agreements, the purpose of which is for the participants in the agreement to ensure representativeness in the management bodies and to safeguard the unity of management direction, without however having control.
Joint ventures are entities for which, on a contractual basis, control is shared between the Group and one or more other parties, i.e. when the unanimous consent of all parties sharing control is required for decisions concerning relevant activities.
Recognition criteria
The initial recognition of financial assets classified in this category takes place on the settlement date at cost, including any goodwill paid at the time of acquisition, which is therefore not subject to separate, independent recognition (“implicit goodwill”).
Measurement criteria
Equity investments are measured using the equity method. This method requires that the initial carrying amount is subsequently increased or decreased to recognise the Group's share of the profits and losses of the investees realised after the acquisition date. Dividends received from an investee are deducted from the carrying amount of the investment.
If it is necessary to make value adjustments arising from changes in the investee company's equity that it did not recognise in the income statement (e.g., changes arising from the fair value measurement of "Financial assets measured at fair value through other comprehensive income", the measurement of actuarial gains/losses of defined benefit plans), the Group's share of these changes is recognised directly in equity item "Valuation reserves”.
In applying the equity method, the most recent available financial statements of the associate/jointly controlled entity are used, appropriately adjusted for any significant events or transactions that occurred between the last available financial statements of the investee and the reference date of the Consolidated Financial Statements. If
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the investee company uses accounting principles that differ from those used by the Group, changes are made to the financial statements of the investee.
If there is objective evidence that an equity investment may be impaired, the entity shall estimate its recoverable amount, taking into account the present value of the future cash flows that it could generate, including from its ultimate disposal. If the recoverable amount is less than the carrying amount, the difference is recognised in profit or loss.
If the reasons for the impairment no longer exist as a result of an event that occurred after the recognition of the impairment loss, this is reversed through profit or loss.
Derecognition criteria
Equity investments are derecognised when there is a sale that transfers substantially all the risks and rewards associated with them.
In the presence of a situation that results in the loss of significant influence or joint control, any remaining equity investment is reclassified to the financial asset portfolios required by IFRS 9.
6 - Property, plant and equipment
Classification criteria
This item includes tangible assets held for investment purposes under IAS 40, those held for functional use under IAS 16, and inventories of tangible assets under IAS 2.
All property (either fully owned or leased) held by the company for the purposes of obtaining rent and/or a capital gain fall under investment property, i.e. tangible assets held for investment purposes.
Tangible assets held for functional use include, in particular:
•land;
•buildings;
•furniture and accessories;
•electronic office machines;
•various machines and equipment;
•vehicles;
•leasehold improvements on third-party property.
Those are physical assets held for use in production, in providing goods and services or for administrative purposes, and that are expected to be used for more than one fiscal year.
This item also includes the rights of use acquired through leases and relating to the use of property, plant and equipment.
Under IFRS 16, a lease is a contract, or part of a contract, that, in exchange for a fee, transfers the right to use an asset (the underlying asset) for a period of time.
Finally, the item includes leasehold improvements on third-party property and expenses relating to identifiable and separable asset. Normally, this kind of investment is sustained in order to make a property rented from third parties suitable for use.
Tangible assets constitute inventories under IAS 2 when they are held for sale in the ordinary course of business.
Recognition criteria
Property, plant and equipment are initially recognised at cost, including all directly attributable costs connected to the acquisition or to bring the asset into use.
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Subsequently incurred expenses are added to the carrying amount of the asset, or recognised as separate assets, if they are likely to yield future economic benefits exceeding those initially estimated and if the cost can be measured reliably; otherwise, they are recognised in profit or loss.
For property, plant and equipment represented by rights of use (“RoU”) in accordance with IFRS 16, the initial recognition value corresponds to the sum of the lease liability (present value of future lease payments to be paid over the lease term), lease payments made prior to or on the effective date of the lease, initial direct costs, and any costs for dismantling or restoring the asset underlying the lease.
Measurement criteria
Property, plant and equipment held for functional use or investments purposes are measured at cost, net of any depreciation or impairment losses. Inventories of tangible assets under IAS 2 are measured at the lower of cost and net realisable value.
Property, plant and equipment with a finite useful life are systematically depreciated on a straight-line basis over their useful life, with the exception of that described below.
On the other hand, inventories of tangible assets within the meaning of IAS 2 as well as tangible assets with an unlimited useful life or whose residual value is equal to or greater than the carrying amount of the asset are not depreciated.
For accounting purposes, land and buildings are treated separately, even when acquired together. Land is not depreciated, as it has an indefinite useful life. Where the value of land is included in the value of a building, the former is considered separately by applying the component approach. The separate values of the land and the building are calculated by independent experts in this field and only for entirely owned properties.
The useful life, residual amounts and depreciation methods of property, plant and equipment are reviewed at the closure of each year and, if expectations are not in line with previous estimates, the depreciation rate for the current year and subsequent ones is adjusted.
If there is objective evidence that an individual asset may be impaired, the asset’s carrying amount is compared to its recoverable amount, which is the higher of an asset's fair value less costs to sell and its value in use, intended as the present value of future cash flows expected to arise from this asset. Any impairment loss is recognised in profit or loss.
When an impairment loss is reversed, the new carrying amount cannot exceed the net carrying amount that would have been measured if no impairment loss had been recognised on the asset in previous years.
The usually estimated useful lives are the following:
•buildings:not exceeding 34 years;
•furniture:not exceeding 7 years;
•electronic systems:not exceeding 5 years;
•other:not exceeding 5 years;
•improvements on third party property/leasehold improvements:not exceeding 5 years.
With reference to the asset consisting of the right of use, recorded pursuant to IFRS 16, it is measured using the cost model in accordance with IAS 16 Property, plant and equipment; in this case, the asset is subsequently depreciated on a straight-line basis over the term of the lease contract and subject to an impairment test if impairment indicators emerge.
Derecognition criteria
Property, plant and equipment are derecognised from the statement of financial position on disposal or when they are withdrawn from use and no future economic benefits are expected from their disposal. Any profit/loss that arises at the time the asset is derecognised (calculated as the difference between the net carrying amount of the asset and the amount received) is recognised in the Income Statement when the item is derecognised.
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The right of use deriving from lease contracts is derecognised from the statement of financial position at the end of the lease.
7 - Intangible assets
Classification criteria
Intangible assets are non-monetary assets, identifiable even though they lack physical substance, that meet the requirements of identifiability, control over a resource and existence of future economic benefits. Intangible assets mainly include goodwill and software.
Recognition criteria
Intangible assets initially are recognised in the statement of financial position at cost, i.e. the purchase price and any direct cost incurred in preparing the asset for use.
In particular, costs incurred internally for the development of software projects constitute intangible assets and are only capitalised if all of the following conditions are met:
•the cost attributable to the development activity can be reliably determined;
•there is the intention, the availability of financial resources and the technical capacity to make the asset ready for use or sale;
•it can be demonstrated that the asset is able to produce future economic benefits. Capitalised software development costs include only those expenses incurred that can be directly attributed to the development process.
Measurement criteria
Subsequent to initial recognition, intangible assets with a finite useful life are recognised at cost less amortisation determined on the basis of their estimated useful life.
If there is objective evidence that a single asset may be impaired, the asset’s carrying amount is compared to its recoverable amount, which is the higher of an asset's fair value less costs to sell and its value in use, intended as the present value of future cash flows expected to arise from this asset. Any impairment loss is recognised in profit or loss.
Intangible assets with an indefinite useful life, including goodwill, are recorded at cost less any impairment losses incurred. These assets are not depreciated, but only periodically checked for impairment with respect to the carrying amount.
At each year-end or interim reporting date, if there is evidence of impairment, an estimate of the asset's recoverable amount is made. The amount of the loss, recognised in the income statement, is equal to the difference between the asset's carrying amount and its recoverable amount.
With regard to goodwill, the adequacy of the carrying amount is periodically verified. In particular, whenever there is evidence of impairment, and in any case at least once a year, an impairment test is conducted. For this purpose, the cash-generating unit (CGU) to which goodwill is to be allocated is identified. This unit represents the minimum level at which goodwill is monitored for internal management purposes and must not be greater than the operating segment determined in accordance with IFRS 8.
The amount of the impairment, if any, is determined on the basis of the difference between the carrying amount of goodwill and its recovery value, if lower. This recoverable amount is equal to the higher of the fair value of the CGU, net of any costs to sell, and its value in use. Value in use is the present value of the future cash flows expected from the generating units to which goodwill has been allocated. The resulting value adjustments are recognised in the income statement under the item 'Goodwill Value Adjustments'. No subsequent write-back is permitted.
Derecognition criteria
An intangible asset is derecognised from the statement of financial position on disposal or when it is withdrawn from use and no future economic benefits are expected from its disposal. Any gain or loss arising from the
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derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss.
8 - Non-current assets and disposal groups
Non-current assets or groups of assets/liabilities for which a process of disposal has begun and their sale is considered highly probable are classified under the item of the assets “Non-current assets and disposal groups” and the item of the liabilities “Liabilities associated with assets held for sale”. With the exception of certain types of assets (e.g. financial assets coming under the scope of application of IFRS 9), for which IFRS 5 specifically establishes that the measurement criteria of the relevant accounting standard must be applied, these assets/liabilities are otherwise measured at the lower of carrying amount and their fair value net of selling costs.
Valuation reserves relating to non-current assets held for sale, recorded as a balancing entry to the changes in value relevant for this purpose, are shown separately in the Statement of Comprehensive Income.
The positive or negative balance of income (dividends, interest, etc.) and expenses (interest expense, etc.) related to discontinued operations, net of the related current and deferred taxation, is recognised in the 'profit (loss) from discontinued operations net of tax' caption of the income statement. Gains and losses attributable to individual assets or groups of assets and liabilities held for sale, which do not constitute discontinued operations, are recognised in the most appropriate item of the income statement, such as 'gains (losses) on disposal of investments'.
9 - Current and deferred taxes
Classification criteria
The items include current and deferred tax assets and current and deferred tax liabilities related to income taxes, respectively.
Current and deferred taxes, calculated in compliance with national tax laws, are recognised in profit or loss with the exception of items directly credited or debited to equity.
Current tax liabilities are shown in the statement of financial position gross of the relevant tax advances paid.
Deferred tax assets and liabilities are recognised in the statement of financial position at pre-closing balances and without set-offs, and are included in the items “Tax assets” and “Tax liabilities”, respectively, except when there is a legally enforceable right to set off current tax assets against current tax liabilities, and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which deferred tax liabilities or assets are expected to be settled or recovered.
Under the existing tax consolidation arrangements between the Group companies, the current corporate income tax (IRES) expense for the year is included in either Other assets or Other liabilities as receivables due from/payables due to the consolidating company, in accordance with tax legislation.
Recognition and measurement criteria
Deferred tax assets and liabilities are calculated based on temporary differences—without time limits—between the value attributed to the asset or liability according to statutory criteria and the corresponding tax base, applying the tax rates expected to be applicable for the year in which the tax asset will be realised, or the tax liability will be settled, according to theoretical tax laws in force at the realisation date.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
•when the deferred tax liabilities arise from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the economic result nor taxable profit or loss;
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•when the timing of the reversal of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses to the extent that it is probable that they can be recovered, based on the ability of the company concerned or the Parent company, as a result of the "tax consolidation" option, to continue to generate taxable profit, except:
•when the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the economic result nor taxable profit or loss;
•in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
10 - Provisions for risks and charges
Classification criteria
Provisions for risks and charges in respect of commitments and guarantees granted
The sub-item of provisions for risks and charges under review includes the provisions for credit risk set aside for loan commitments and the other guarantees granted that fall within the scope of the impairment rules in IFRS 9. As a general rule, in this case the Bank adopts the same methods for allocating items to three credit risk Stages and calculating expected credit losses as the ones described for financial assets measured at amortised cost or at fair value through other comprehensive income.
The aggregate item therefore also includes the provisions for risks and charges set aside for other types of commitments and guarantees granted that, because of their specific characteristics, they do not fall within the scope of the impairment rules in IFRS 9.
Provisions for pensions and similar obligations
Pension funds are established in implementation of company agreements and qualify as defined benefit plans under IAS 19. The liability relating to these plans and the related current service cost are determined on the basis of actuarial assumptions by applying the “Projected Unit Credit Method”, which involves projecting future outflows on the basis of historical statistical analyses and the demographic curve, and discounting these flows on the basis of a market interest rate. The contributions paid in each financial year are treated as separate units, which are recognised and valued individually for the purpose of determining the final obligation. The rate used for discounting is determined on the basis of the market yields recorded on the valuation dates of bonds of leading companies, taking into account the average residual life of the liability. The present value of the obligation at the balance sheet date is also adjusted for the fair value of any plan assets.
Actuarial gains and losses (i.e., changes in the present value of the obligation resulting from changes in actuarial assumptions and adjustments based on past experience) are recognised with an offsetting entry to shareholders' equity under the caption "Valuation reserves" and disclosed in the Statement of Comprehensive Income.
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Other provisions
Other reserves for risks and charges include provisions for legal or employment-related obligations or disputes, including tax disputes, arising from a past event for which it is probable that economic resources will be disbursed to fulfil the obligations, provided a reliable estimate of the amount can be made.
Criteria for measurement and recognition of income components
Provisions for risks and charges consist of liabilities of uncertain amount or maturity and are recognised in the balance sheet if:
•a legal or constructive obligation exists as a result of a past event;
•it is likely that it will be necessary to use resources which could generate economic benefits to settle the obligation;
•the amount of the likely future outlay can be reliably estimated.
The amount recognised as a provision represents the best estimate of the financial outlay required to settle the obligation at the reporting date and reflects the risks and uncertainties inherent in the facts and circumstances examined. Where the time element is significant, provisions are discounted using current market rates. The provision and the effect of discounting are recognised in the income statement under "Net allocations to provisions for risk and charges", as is the increase in the provision due to the passage of time.
Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. When the use of resources, capable of producing economic benefits to meet the obligation, becomes improbable, the provision is reversed.
In addition, each fund is only used to meet those outgoings for which it was originally established.
If it is not considered probable that financial resources will be required to be disbursed to fulfil the obligation, no provision need be recognised in the financial statements; in such a case, adequate disclosure of the possible risk of loss is required in the Notes to the financial statements, unless the likelihood of using resources is considered remote or the phenomenon is not material.
11 - Financial liabilities measured at amortised cost
Classification criteria
The item includes payables due to banks and customers and debt securities issued and is made up of the various forms of interbank funding, as well as funding from customers and through outstanding bonds, net of any buybacks.
Also included are debts entered into by the lessee under finance leases, as well as repurchase and reverse repurchase agreements for deposits and securities lent with receipt of cash collateral at the lender's full disposal. Finally, operating debts related to the provision of financial services as defined in the Consolidated Banking Act and the Consolidated Finance Act are included.
Recognition criteria
The initial recognition of these liabilities occurs upon receipt of the amounts collected or settlement of the debt securities issued and is made on the basis of the relative fair value, which is normally equal to the amount collected or the issue price, increased by any additional costs/income directly attributable to the individual funding or issuance transaction and not reimbursed by the creditor counterparty.
Repurchase agreements with a repurchase obligation are recorded in the balance sheet as funding transactions for the amount collected in the spot market.
Lease payables are recognised on the basis of the present value of future instalments still to be paid over the contractual term discounted at the interest rate implicit in the transaction or, if not determinable, the marginal financing rate.
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Measurement criteria
After initial recognition at fair value, these instruments are later measured at amortised cost, using the effective interest method.
The amortised cost method does not apply to short-term liabilities, as the effect of discounting would be not significant.
Lease payables are revalued when there is a lease modification (i.e., a change in the perimeter of the contract), which is not accounted for/considered as a separate contract.
Derecognition criteria
Financial liabilities are derecognised when they are annulled, expired, extinguished or settled. The difference between the carrying amount and the acquisition cost is recognised in profit or loss.
Liabilities are derecognised also when previously issued securities are bought back, even if such instruments will be sold again in the future. Gains and losses from such derecognition are recognised in profit or loss when the buyback price is higher or lower than the carrying amount.
Subsequent sales of the company's own bonds on the market are considered as an issuance of new debt.
12 - Financial liabilities held for trading
Classification criteria
This item includes:
•financial liabilities issued with the intention of repurchasing them in the short term;
•liabilities that are part of a portfolio of financial instruments that are jointly managed and for which there is a proven strategy to achieve profits in the short term;
•derivative contracts with a negative fair value and not designated as hedging instruments, including those linked to assets/liabilities designated at fair value through profit or loss.
Recognition criteria
Financial liabilities held for trading are initially recognised at the date of settlement in the case of liabilities for cash, and at inception in the case of derivative contracts.
Initial recognition is made on the basis of the fair value of the liability, normally equal to the amount collected, without considering transaction costs or income directly attributable to the instrument itself, which are charged directly to the income statement.
Measurement criteria
Even after initial recognition, financial liabilities held for trading are measured at fair value at the period closure, and the impact of the application of this method is measured through profit or loss. The fair value is calculated based on the same criteria as those used for financial assets held for trading.
Derecognition criteria
Financial liabilities held for trading are derecognised when the contractual rights to the related cash flows expire or when the financial liabilities are transferred with the transfer of substantially all risks and rewards of ownership.
13 - Financial liabilities designated at fair value
At the reporting date, the Group held no financial liabilities designated at fair value.
14 - Foreign currency transactions
Initial recognition
At initial recognition, foreign currency transactions are recognised in the money of account, applying the exchange rate at the date of the transaction.
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Subsequent recognitions
At each reporting date, foreign currency monetary assets and liabilities are translated using the closing exchange rate.
Non-monetary assets and liabilities recognised at historical cost are translated at the historical exchange rate, while those measured at fair value are translated using the period-end rate. Any exchange differences arising from the settlement of monetary elements or their translation at exchange rates different from those used at initial recognition or in previous financial statements are recognised in profit or loss in the period in which they arise, excluding those relating to financial assets measured at fair value through other comprehensive income, as they are recognised in equity.
15 - Insurance assets and liabilities
At the reporting date, the Group held no insurance assets and liabilities.
16 - Other information
Cash and cash equivalents
This item comprises legal tender, including foreign banknotes and divisional currencies, current accounts and "sight" deposits with central banks, with the exception of compulsory reserves, as well as "sight" claims on banks. The latter definition includes availability that can be withdrawn at any time without notice or with 24 hours or one working day's notice.
The item is recorded at face value. For foreign currencies, the face value is converted into Euro at the closing exchange rate at the end of the financial year.
Other assets
This item includes assets that cannot be allocated to other balance sheet asset items. The item may include but is not limited to:
•gold, silver and precious metals;
•accrued income other than that to be capitalised on the relevant financial assets, including that arising from contracts with customers in accordance with IFRS 15;
•receivables related to the provision of non-financial goods or services;
•tax credits related to the "Cura Italia" and "Relaunch" Decree-Laws;
•tax debit items other than those recorded under item "Tax assets”.
Any remaining balances (of "debit balance") of travelling and suspended items not allocated to the relevant accounts may also be included, provided they are of an not significant amount overall.
Other liabilities
This item includes liabilities that cannot be allocated to the other liability items in the balance sheet.
This item includes but is not limited to:
•payment agreements that IFRS 2 requires to be classified as payables;
•debts connected with the payment of non-financial goods and services;
•accrued expenses other than those to be capitalised on the relevant financial liabilities, including those arising from contracts with customers in accordance with IFRS 15;
•miscellaneous tax credit items other than those recognised under 'Tax liabilities' connected, for example, with the activity of a withholding agent.
Severance indemnity and other employee benefits
According to IAS 19, employee benefits include all types of remuneration provided in exchange for the work performed by employees or by virtue of the termination of the employment relationship, which can be broken down into:
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•short-term benefits (other than termination benefits) that are expected to be settled within 12 months after the end of the financial year in which the employees were employed;
•post-employment benefits such as the severance indemnity;
•termination benefits due to employees following the company's decision to terminate employment before the retirement date;
•long-term benefits (other than termination benefits) that are expected to be settled over a period of more than 12 months after the end of the financial year in which the employees were employed.
Pursuant to IAS 19 “Employee benefits” and up to 31 December 2006, the so-called “TFR” (severance indemnity), post-employment benefit for employees of the Group's Italian companies, was classified as a “defined benefit plan”. It therefore had to recognise this benefit by discounting it using the projected unit credit method.
Following the coming into force of the 2007 Budget Law, which brought the reform regarding supplementary pension plans - as per Italian Legislative Decree No. 252 of 5 December 2005 - forward to 1 January 2007, the employee was given a choice as to whether to allocate the post-employment benefits earned as from 1 January 2007 to supplementary pension funds or to maintain them in the company, which would then transfer it to a dedicated fund managed by INPS (the Italian National Social Security Institute).
This reform has led to changes in the accounting of post-employment benefits (severance indemnity) as for both the benefits earned up to 31 December 2006 and those earned from 1 January 2007.
In particular:
•post-employment benefits earned as from 1 January 2007 constitute a "defined-contribution plan", regardless of whether the employee has chosen to allocate them to a supplementary pension fund or to INPS's Treasury Fund. Those benefits shall be calculated according to contributions due without applying actuarial methods;
•post-employment benefits earned up to 31 December 2006 continue to be considered as a “defined-benefit plan”, and as such are calculated on an actuarial basis which, however, unlike the calculation method applied until 31 December 2006, no longer requires that the benefits be proportionally attributed to the period of service rendered. This is because the employee’s service is considered entirely accrued due to the change in the accounting nature of benefits earned as from 1 January 2007.
Actuarial gains/losses shall be included immediately in the calculation of the net obligations to employees through equity, to be reported in other comprehensive income.
Share-based payments
They are payments granted to employees or similar parties as remuneration for the services received that are settled in equity instruments.
The relevant international accounting standard is IFRS 2 – Share-based payments; specifically, since the Group is to settle the obligation for the service received in equity instruments (shares “to the value of”, i.e. a given amount is converted into a variable number of shares based on the fair value at grant date), those payments fall under “equity-settled share-based payments”. The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model.
That cost is recognised in employee benefits expense together with a corresponding increase in equity over the period in which the service and, where applicable, the performance conditions are fulfilled (the vesting period). The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group's best estimate of the number of equity instruments that will ultimately vest. The cost or revenue in the income statement represents the movement in cumulative expense recognised at the beginning and end of that year. Any reduction in the number of financial instruments allocated is accounted for as a cancellation of part of them.
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Treasury shares
Pursuant to regulations in force in Italy, buying back treasury shares requires a specific resolution of the shareholders' meeting and the recognition of a specific reserve in equity. Treasury shares in the portfolio are deducted from equity and measured at cost, calculated using the “Fifo” method. Differences between the purchase price and the selling price deriving from trading in these shares during the reference year are recognised under equity reserves.
Recognition of income and costs
Revenues
Revenues are gross streams of economic benefits flowing to the entity as consideration for the obligation to transfer to the customer a wide range of goods and services in the ordinary course of business.
Under IFRS 15, an entity must recognise revenue based on the consideration expected to be received for goods and services provided in the ordinary course of business. In detail, the recognition of revenue must take place on the basis of the following five steps:
•identification of a contract, defined as an agreement of commercial substance between two or more parties capable of generating rights and obligations;
•identification of the individual obligations ("performance obligations") contained in the contract;
•determination of the transaction price, i.e. the expected consideration for the transfer of goods or services to the customer;
•allocation of the transaction price to each performance obligation, based on the stand-alone selling price of the individual obligation;
•recognition of the revenue allocated to the individual obligation when it is settled, i.e. when the customer obtains control of the goods and services. This recognition takes into account the fact that certain services may be rendered at a specific time or over a period of time.
Revenue arising from contractual obligations with customers is recognised in profit or loss when it is probable that the entity will receive the consideration to which it is entitled in exchange for the goods or services transferred to the customer. This consideration must be allocated to the individual obligations under the contract and must be recognised as income in the income statement according to the timing of performance of the obligation. In detail, revenues may be recognised in the income statement:
•at a point in time, when the entity performs the obligation to do by transferring the promised good or service to the customer, or
•over time, as the entity performs the obligation to do by transferring the promised good or service to the customer.
The obligation to perform is considered to have been performed when the customer acquires control of the transferred good or service.
The consideration promised in the contract with the customer may include fixed amounts, variable amounts, or both. In detail, the contract price may vary as a result of reductions, discounts, rebates, incentives, performance bonuses or other similar elements. The variability of the consideration may also depend on the occurrence or non-occurrence of a future event. In the case of variable consideration, revenue is recognised in the income statement if it can be reliably estimated and only if it is highly probable that all or a significant portion of the consideration will not subsequently be reversed from the income statement.
When an entity receives consideration from a customer that it expects to refund to the customer, in whole or in part, against the revenue recognised in the income statement, it is necessary to recognise a liability, to be estimated based on expected future refunds (termed a “refund liability”). The estimate of this liability is updated at each balance sheet or interim reporting date and is based on the portion of the consideration that the entity expects not to be entitled to.
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Costs
Costs related to obtaining and fulfilling contracts with customers are recognised in the income statement in the periods in which the corresponding revenues are recognised; costs that do not have a direct association with revenues are immediately recognised in the income statement.
Dividends
Dividends are recognised through profit or loss in the year in which the resolution concerning their distribution is passed.
Offsetting of financial instruments
Pursuant to IAS 32, paragraph 42, financial assets and financial liabilities are netted and shown for the net balance if the entity:
•has a legal right to effect such set-off, which is currently exercisable in all circumstances, whether in the ordinary course of business or in default, insolvency or bankruptcy of the parties;
•intends to settle transactions on a net settlement basis or on a gross settlement basis whose substantive effects are equivalent to a net settlement.
Business combinations
Business combinations are subject to the rules of IFRS 3.
The transfer of control of a business (or an integrated set of activities and assets operated and managed together) constitutes a business combination.
To this end, control is considered transferred when the investor is exposed or entitled to variable returns from its involvement with the investee and, at the same time, has the ability to affect those returns through its power over the entity.
IFRS 3 demands that an acquirer be identified for all business combinations. This is defined as the entity that acquires control over another entity or group of assets. If it is not possible to identify a controlling entity on the basis of the above definition of control, such as, for example, may be the case in exchanges of equity interests, the acquirer shall be identified using factors such as: the entity whose fair value is significantly greater, the entity that pays a cash consideration or the entity that issues new equity interests.
The acquisition, and therefore, the initial consolidation of the acquiree, must be recognised on the date on which the acquirer effectively acquires control over the company or assets acquired. When the transaction takes the form of a single transfer, the transfer date normally coincides with the acquisition date. However, it is important to check for the possible presence of agreements between the parties that may result in the effective transfer of control before the date of the exchange.
The consideration paid as part of a business combination must be calculated as the sum of the fair value, at the date of the exchange, of the assets acquired, the liabilities incurred or assumed and the equity instruments issued by the acquirer in exchange for control.
In transactions involving payment in cash (or when payment is made using cash-equivalent financial instruments), the price is the agreed consideration, discounted if payment is to be made in instalments over the medium or long-term. If payment is made using an instrument other than cash, such as through the issue of equity instruments, the price is equal to the fair value of the means of payment, net of the costs directly attributable to the capital issue. For the methods used to determine the fair value of financial instruments, please refer to paragraph “A.4 - Fair value disclosure”, with the caveat that, in the presence of shares listed on active markets, the fair value is represented by the stock market price on the date of acquisition or, in the absence thereof, by the last available price.
Adjustments subject to future events are included in the consideration of the business combination at the acquisition date, if provided for in the agreements and only if probable, able to be reliably determined and realised
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within twelve months of the date on which control is acquired. Instead, indemnities for a reduction of the value of the assets used are not considered insofar as they are already taken into account, either in the fair value of the equity instruments or as a reduction of the premium or increase in the discount on the initial issue (for debt instruments).
Acquisition-related costs are the costs the acquirer incurs to effectively implement a business combination. By way of example, these may include professional fees paid to auditors, experts, legal consultants, costs for appraisals and the auditing of accounts, preparation of information documents required by regulations, as well as finder’s fees paid to identify potential targets to be acquired if it is contractually established that the payment is made only in the event of a successful completion of the combination, as well as the costs of registering and issuing debt and equity securities.
With the exception of the costs of issuing debt or equity securities (which shall be recognised in accordance with IAS 32), the acquirer shall recognise acquisition-related costs in the periods in which these costs are incurred and the services are received.
Business combinations are accounted for using the “acquisition method”, under which the identifiable assets acquired (including any intangible assets not previously recognised by the acquiree) and the identifiable liabilities assumed (including contingent liabilities) are recognised at their respective fair values at the acquisition date.
In addition, as expressly envisaged by IFRS 3, for each business combination, any non-controlling interests in the acquiree can be recognised at fair value (with a consequent increase in the consideration transferred) or proportionally to the non-controlling stake in the identifiable net assets of the acquiree.
If control is acquired in stages, the acquirer shall measure its previously held equity interest in the acquiree at its acquisition date at fair value; it shall recognise any difference compared to the previous carrying amount through profit or loss.
The surplus amount of the consideration transferred (i.e. the fair value of the assets transferred, the liabilities incurred or the equity instruments issued by the acquirer), the amount of any non-controlling interests (determined as described above) and the fair value of interests previously held by the acquirer, exceeding the fair value of the assets and liabilities acquired, shall be recognised as goodwill. Conversely, if the latter should exceed the sum of the consideration, non-controlling interests and fair value of previously held interests, the difference shall be recognised through profit or loss.
Business combinations may be accounted for provisionally by the end of the reference financial year in which they are performed with final balance calculated and booked within 12 months of the acquisition date.
Pursuant to IFRS 10, the acquisition of additional stakes in entities that are already controlled are considered equity transactions, i.e. transactions with shareholders acting in this same capacity. Therefore, differences between the acquisition costs and the carrying amount of non-controlling interests acquired are recorded under Group shareholders’ equity; similarly, sales of non-controlling interests without loss of control do not generate gains/losses recognised in profit or loss but rather are recognised as changes in Group equity.
Transactions implemented to obtain control over one or more entities that do not constitute a business or to obtain temporary control are not business combinations. Equally, transactions carried out for reorganisation purposes, between two or more companies or activities that already belong to the Group and not involving a change in the control structure regardless of the percentage of third-party rights before and after the transaction, are also not business combinations; these may be referred to as combinations of entities under common control. Such transactions are considered as having no economic substance. Accordingly, in the absence of an IAS/IFRS specifically applicable to the transaction and in compliance with the assumptions of IAS 8, which requires that – in the absence of a specific standard – an entity shall use its judgement in applying an accounting standard that produces relevant, reliable and prudent information able to reflect the economic substance of the transaction, such transactions are accounted for by retaining the values of the acquiree in the financial statements of the acquirer.
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Mergers are the most complete form of business combination, as they entail the legal and financial merging of the entities participating in the transaction.
Whether they involve the formation of a new legal entity (merger of equals) or the absorption of one entity by another existing entity, mergers are treated in accordance with the criteria set out above. Specifically:
•if the transaction involves the transfer of control of an entity, it is treated as a business combination pursuant to IFRS 3;
•if the transaction does not involve the transfer of control, it is accounted for by retaining the carrying values.
A.3 - Disclosure of transfers of financial assets between portfolios
No financial assets were transferred between portfolios during 2025.
A.4 - Fair value disclosure
Qualitative disclosure
Fair value is the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date, under current market conditions (i.e. the exit price), regardless of the fact that said price is directly observable or that another measurement approach is used.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
IFRS 13 establishes a fair value hierarchy based on the extent to which inputs to valuation techniques used to measure the underlying assets/liabilities are observable. Specifically, the hierarchy consists of three Levels.
•Level 1: the instrument's fair value is measured based on (unadjusted) quoted prices in active markets;
•Level 2: the instrument's fair value is measured based on valuation models using inputs observable in active markets, such as:
–quoted prices for similar assets or liabilities;
–quoted prices for identical or similar assets or liabilities in non-active markets;
–observable inputs such as interest rates or yield curves, implied volatility, default rates and illiquidity factors;
–inputs that are not observable but supported and confirmed by market data;
•Level 3: the instrument's fair value is measured based on valuation models using mainly inputs that are unobservable in active markets.
Each financial asset or liability of the Group is categorised in one of the above Levels, and the relevant measurements may be recurring or non-recurring (see IFRS 13, paragraph 93, letter a). The fair value measurement is categorised in its entirety in the same Level of the fair value hierarchy as the lowest Level input.
The choice among the valuation techniques is not optional, since these shall be applied in a hierarchical order: indeed, the fair value hierarchy gives the highest priority to (unadjusted) quoted prices available in active markets for identical assets or liabilities (Level 1 data) and the lowest priority to unobservable inputs (Level 3 data).
Measurement techniques used to measure fair value are applied consistently on an on-going basis, as described below.
A.4.1 Fair value Levels 2 and 3: valuation techniques and inputs used
In the absence of quoted prices in an active market, the fair value measurement of a financial instrument is performed using valuation techniques maximising the use of inputs observable on the market.
The use of a valuation technique is intended to estimate the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current
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market conditions. In this case, the fair value measurement may be categorised in Level 2 or Level 3, according to what extent inputs to the pricing model are observable.
In the absence of observable prices in an active market for the financial asset or liability to be measured, the fair value of the financial instruments is measured using the so-called comparable approach (Level 2), requiring valuation models based on market inputs.
In this case, the valuation is not based on the quoted prices of the financial instrument being measured (identical asset), but on prices, credit spreads or other factors derived from the official quoted prices of instruments that are substantially similar in terms of risk factors and duration/return, using a given calculation method (pricing model).
In the absence of quoted prices in an active market for a similar instrument, or should the characteristics of the instrument to be measured not allow to apply models using inputs observable in active markets, it is necessary to use valuation models assuming the use of inputs that are not directly observable in the market and, therefore, requiring to make estimates and assumptions (non observable input - Level 3). In these cases, the financial instrument is measured using a given calculation method that is based on specific assumptions regarding:
•the trend in future cash flows, possibly contingent on future events whose probability of occurring can be derived from historical experience or based on behavioural assumptions;
•the Level of specific inputs not quoted on active markets: for the purposes of estimating them, information acquired from prices and spreads observed on the market shall have a higher priority. If these are not available, entities shall use historical data about the specific underlying risk factor or specialist research on the matter (e.g. reports by ratings agencies or primary market players).
In the cases described above, consideration is always given to the value of potentially making valuation adjustments taking into account the risk premiums that operators typically consider in pricing instruments. If not explicitly considered in the valuation model, valuation adjustments may include:
•model adjustment: adjustments that take into account any deficiencies in the valuation models highlighted during calibration;
•liquidity adjustment: adjustments that take into account the bid-ask spread if the model calculates a mid-price;
•credit risk adjustment: adjustments related to the counterparty or own credit risk;
•other risk adjustment: adjustments related to a risk premium "priced" in the market (e.g. relating to the complexity of valuation of an instrument).
With regard to fair value measurement, the Group adopts various methodologies, depending on the specific characteristics of the products being valued.
To measure receivables that must be measured at fair value, the method used is mainly the Discounted Cash Flow (DCF) Model to receivables mandatorily measured at fair value, discounting the expected cash flows from each loan at a market rate determined by taking into account the risk free rate (r f) for similar maturities, the Cost of Funding (COF), the counterparty's credit risk, and the capital absorption cost. This technique is supplemented with methods for assessing the enterprise value of the borrower (e.g. multiples and comparable transactions) when the characteristics of the financing make its value dependent on the value of the company. This dependence is normally induced either by the equity convertibility of the loans or by their degree of subordination.
For the measurement of unlisted equities, mainly income and financial models are used, in particular the method defined as "Market Multiples of Comparable Companies" to which a control method such as the "Discounted Cash Flow Model" or the "Comparable Transactions Method" is compared. The latter method is applied to transactions that have similar economic and asset characteristics to the one being valued and adjusted for the economic and asset magnitudes of the asset being valued.
With specific reference to the valuation of UCITS units, the approach used takes Net Asset Value (NAV) as the starting point for determining fair value. Thereafter, it must be verified whether, in determining the NAV, the fund's
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assets have been measured at fair value in accordance with the applicable international standards. A discount is applied to the determined NAV using a rate that takes into account the following risk components:
•liquidity component: the liquidity discount must take into account the inability to mobilise the economic commitment in the short term.
•credit component: the credit risk discount must take into account the probability of default of the underlying asset in which the fund invests;
•other risk components: this category includes the discount of any other significant element known to the manager of the instrument at the time of measurement.
Consistent with the requirements of IFRS 13, the valuation of these instruments aims to maximise the use of observable parameters, provided these are up-to-date and deemed reliable.
For this reason, in the presence of detailed information on the funds' underlyings, the expected cash flows on them, and therefore the expected distributions from the funds (business plan), which is up-to-date and adequate in terms of granularity and reliability, the NAV adjustment factor will be determined through a Discounted Cash Flow model in which the risk components listed above are incorporated into the discount rate to be applied to the expected distributions.
For funds for which adequate detailed information on the underlyings and expected distribution flows is not available, the discount factor determined as above is applied directly to decrease the NAV.
Over-the-counter (OTC) derivatives, whose value cannot be directly observed in the market, are valued with specific models and inputs due to the asset class and characteristics of the specific financial product. The valuation of OTC derivatives takes into account, in addition to the market variables to which the instruments are sensitive, the specific risks of the counterparties with which they are traded, in particular:
•For transactions traded within clearing and margining arrangements (CSAs), counterparty risk is deemed not to be material and the valuation of instruments is based solely on the underlying risk factors according to the non-arbitrage principle;
•for transactions traded in the absence of netting and margining arrangements, valuation is performed by adding to the valuation of the instrument as if it were subject to netting and margining the adjustments related to counterparty risk (i.e. CVA - Credit Valuation Adjustment and DVA - Debt Valuation Adjustment).
The balance as at 31 December 2025 of derivatives for which the counterparty risk mitigation (CSA) element is not present amounted to 5,6 million Euro, almost entirely attributable to the illimity Group.
With regard to the valuation of financial assets and liabilities measured at fair value on a non-recurring basis, and in particular for the loan portfolio, the fair value is conventionally assumed to be equal to the carrying amount for all exposures classified as impaired other than those in the Npl Segment and exposures with a residual maturity of less than one year, as it is considered that the fair value can be assimilated to the carrying amount.
For non-performing loans (bad loans, unlikely to pay, past due) other than those of the Npl Segment, the fair value is conventionally assumed to be equal to the net carrying amount and is shown in Level 3. In this regard, it should be noted that, in the recent past, significant transactions of assignments of non-performing loans have been observed on the Italian market, with prices that have discounted the specific characteristics of the portfolios sold and the different yields demanded by the buyers. The fair value determined on the basis of the aforementioned transactions would therefore be characterised by a high dispersion of values, such that the identification of a reference value would not be objective.
For the purposes of measuring performing loans at fair value, given the absence of prices directly observable on active and liquid markets, entities shall use valuation techniques based on a theoretical model meeting the requirements of IAS/IFRS standards (Level 3). The approach used to determine the fair value of performing loans is the aforementioned DCF Model applied to loans with a residual maturity of more than one year, while the nominal amount is considered for other loans with short or no maturity. Future cash flows consist of the sum of principal
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and interest and are discounted using a rate formed by the credit spread (coverage curve) and a market rate that reflects the characteristics of the underlying (e.g. EONIA, Euribor).
As for the receivables portfolio of the Npl Segment, which purchases and manages non-performing receivables mainly due from individuals, the specified DCF Model is used to calculate fair value. In this case, the expected net cash flows are discounted at a market rate. The market rate is calculated without considering a credit spread, since the credit risk of the individual counterparties is already incorporated in the statistical model used to estimate future cash flows with regard to collective management (non-judicial operations). The model projects the relevant cash flows based on historical evidence concerning the recovery of positions in the Group's portfolio. As for individual management (judicial operations), the projections of future cash flows are based on an internal algorithm or defined by the manager according to how the underlying receivable is being processed.
For financial liabilities at amortised cost, the fair value calculated for disclosure purposes is determined by applying the following methodologies:
•for medium- and long-term liabilities, the measurement is performed by discounting future cash flows using an interest rate that incorporates its own credit risk component;
•for on-demand liabilities with short-term or indefinite maturity, the carrying amount is a good approximation of fair value.
A.4.2 Measurement processes and sensitivity
In compliance with IFRS 13, save for what is specified below, for financial assets and liabilities measured at fair value categorised within Level 3, the Group tests their sensitivity to changes in one or more unobservable inputs used in the fair value measurements like, by way of example and in no means exhaustive, discount rates applied to cash flows or expected cash flows themselves.
With regard to debt security exposures measured at Level 3 fair value, amounting to 95,0 million Euro at 31 December 2025, the effects of potential changes in the parameters used are deemed not significant.
For equity securities and units of Level 3 UCITSs, respectively equal, at 31 December 2025, to 550,0 million Euro and 169,0 million Euro, it is generally not possible to perform any quantitative sensitivity analysis of fair value to changes in unobservable inputs, as either the fair value is derived from third-party sources, or it is the result of a model whose inputs are specific to the entity being valued (e.g. company assets) and for which the information necessary for a sensitivity analysis is not available.
A.4.3 Fair value hierarchy
Concerning recurring fair value measurements of financial assets and liabilities, the Banca Ifis Group transfers them between Levels of the hierarchy based on the following guidelines:
•for debt securities and financing:
–the transfer from Level 3 to Level 2 takes place when the inputs to the valuation technique used are observable at the measurement date;
–the transfer from Level 3 to Level 1 is allowed when it is confirmed that there is an active market for the instrument at the measurement date;
–finally, they are transferred from Level 2 to Level 3 when some inputs relevant in measuring fair value are not directly observable at the measurement date;
•for equity instruments, the Level transfer takes place when:
–observable inputs became available during the period (e.g. prices for identical assets and liabilities defined in comparable transactions between independent and knowledgeable parties). In this case, they are reclassified from Level 3 to Level 2;
–inputs directly or indirectly observable used in measuring them are no longer available or current (e.g. no recent comparable transactions or no longer applicable multiples). In this case, the entity shall use valuation techniques incorporating unobservable inputs.
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A.4.4 Other information
There is no further information to report than that presented in the preceding paragraphs. Specifically, at the reporting date there was no information to be reported pursuant to IFRS 13, paragraphs 51, 93(i), 96 because:
•there are no assets measured at fair value on a 'highest and best use' basis;
•no use was made of the possibility of measuring fair value at the level of the overall portfolio exposure, in order to take into account the offsetting of credit risk and market risk of a given group of financial assets or liabilities (exception under IFRS 13, par. 48).
Quantitative information
A.4.5 Fair value hierarchy
A.4.5.1 Assets and liabilities measured at fair value on a recurring basis: breakdown by fair value Level

Financial assets/liabilities measured at fair value(in thousand Euro) | 31.12.2025 | 31.12.2024
L1 | L2 | L3 | L1 | L2 | L3
1. Financial assets measured at fair value through profit or loss | 8.885 | 27.401 | 771.806 | 5.785 | 12.069 | 231.247
a) financial assets held for trading | 47 | 27.401 | 25 | - | 12.069 | -
b) financial assets designated at fair value | - | - | - | - | - | -
c) other financial assets mandatorily measured at fair value | 8.838 | - | 771.781 | 5.785 | - | 231.247
2. Financial assets measured at fair value through other comprehensive income | 1.410.907 | 169.733 | 78.631 | 623.522 | 5.574 | 72.734
3. Hedging derivatives | - | 60.880 | - | - | 7.404 | -
4. Property, plant and equipment | - | - | - | - | - | -
5. Intangible assets | - | - | - | - | - | -
Total | 1.419.792 | 258.014 | 850.437 | 629.307 | 25.047 | 303.981
1. Financial liabilities held for trading | - | 26.566 | - | - | 13.765 | -
2. Financial liabilities designated at fair value | - | - | - | - | - | -
3. Hedging derivatives | - | 33.748 | - | - | 14.868 | -
Total | - | 60.314 | - | - | 28.633 | -

Key:
L1 = Level 1: fair value of a financial instrument quoted in an active market;
L2 = Level 2 fair value measured using valuation techniques based on observable market inputs other than the financial instrument's price;
L3 = Level 3 fair value calculated using valuation techniques based on inputs not observable in the market.
Financial assets held for trading and financial liabilities held for trading at 31 December 2025 comprise almost exclusively trading derivatives, all of which are classified as Level 2.
Financial assets measured at fair value through other comprehensive income mainly consist of listed securities (Level 1). With regard to securities in Level 3, the amount includes shares in the Bank of Italy with a carrying amount of 50,0 million Euro.
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A.4.5.2 Annual changes in assets measured at fair value on a recurring basis (level 3)

| Financial assets measured at fair value through profit or loss | Financial assets at fair value through other compre-hensive income | Hedging derivati-ves | Property, plant and equip-ment | Intangible assets
| Total | of which: a) financial assets held for trading | of which: b) financial assets designated at fair value | of which: c) other financial assets mandatorily measured at fair value
1. Opening balance | 231.247 | - | - | 231.247 | 72.735 | - | - | -
2. Increases | 671.930 | 25 | - | 671.905 | 8.969 | - | - | -
2.1. Purchases | 93.157 | - | - | 93.157 | 1.682 | - | - | -
2.2. Profit taken to: | 50.854 | - | - | 50.854 | 1.029 | - | - | -
2.2.1. Income Statement | 50.854 | - | - | 50.854 | - | - | - | -
- of which capital gains | 32.008 | - | - | 32.008 | - | - | - | -
2.2.2. Equity | - | X | X | X | 1.029 | - | - | -
2.3. Transferred from other Levels | - | - | - | - | - | - | - | -
2.4. Other increases | 527.919 | 25 | - | 527.894 | 6.258 | - | - | -
3. Decreases | 131.371 | - | - | 131.371 | 3.073 | - | - | -
3.1. Sales | 32.681 | - | - | 32.681 | 1.215 | - | - | -
3.2. Reimbursements | 62.198 | - | - | 62.198 | - | - | - | -
3.3. Losses taken to: | 36.031 | - | - | 36.031 | 1.857 | - | - | -
3.3.1. Income Statement | 36.031 | - | - | 36.031 | 63 | - | - | -
- of which capital losses | 33.791 | - | - | 33.791 | - | - | - | -
3.3.2. Equity | - | X | X | X | 1.794 | - | - | -
3.4. Transferred to other Levels | - | - | - | - | - | - | - | -
3.5. Other decreases | 461 | - | - | 461 | 1 | - | - | -
4. Closing balance | 771.806 | 25 | - | 771.781 | 78.631 | - | - | -

A.4.5.3 Annual changes in liabilities measured at fair value on a recurring basis (Level 3)
The Banca Ifis Group does not hold liabilities measured at fair value on a recurring basis at Level 3.
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A.4.5.4 Assets and liabilities not measured at fair value or measured at fair value on a non-recurring basis: breakdown by fair value Levels

Assets and liabilities not measured at fair value or measured at fair value on a non-recurring basis(in thousands of Euro) | 31.12.2025 | 31.12.2024
CA | L1 | L2 | L3 | CA | L1 | L2 | L3
1. Financial assets measured at amortised cost | 16.836.272 | 3.245.648 | 22.334 | 13.608.780 | 11.513.781 | 2.240.235 | 2.089 | 9.300.909
2. Property, plant and equipment held for investment purpose | 210 | - | - | 210 | 210 | - | - | 210
3. Non-current assets and disposal groups | 157.555 | - | - | 157.555 | - | - | - | -
Total | 16.994.037 | 3.245.648 | 22.334 | 13.766.545 | 11.513.991 | 2.240.235 | 2.089 | 9.301.119
1. Financial liabilities measured at amortised cost | 18.716.422 | 2.535.144 | - | 16.116.854 | 11.597.750 | 1.455.245 | 112.439 | 9.917.719
2. Liabilities associated with assets held for sale | - | - | - | - | - | - | - | -
Total | 18.716.422 | 2.535.144 | - | 16.116.854 | 11.597.750 | 1.455.245 | 112.439 | 9.917.719

Key:
CA = Carrying amount
L1 = Level 1
L2 = Level 2
L3 = Level 3
For financial instruments recognised in the financial statements at amortised cost and classified as loans and advances to banks or customers and as financial liabilities, a fair value was determined for disclosure purposes in the notes to the financial statements, as required by the reference accounting standard IFRS 7.
The item "financial assets measured at amortised cost" includes debt securities due to banks and customers measured at amortised cost with a carrying amount as at 31 December 2025 totalling 4.480,8 million Euro (of which 1.950,6 million Euro related to the illimity Group). This perimeter includes government bonds at amortised cost with a carrying amount at the end of December 2025 of 2.770,8 million Euro (of which 1.000,2 million Euro relative to the illimity Group), corresponding to a Level 1 fair value of 2.744,9 million Euro. The balance reported at Level 3 includes customer debt securities related to the illimity Group perimeter (mainly senior tranches of securitisation securities), characterised by a total fair value of 924,3 million Euro. Net of this component, the remaining balance of Level 3 financial assets measured at amortised cost consists mainly of credit exposures.
“Non-current assets and disposal groups” refers:
•for 85,0 million Euro to the equity investment in Hype S.p.A., a jointly controlled company within the illimity Group's perimeter. With regard to this equity investment, the 85 million Euro offer received from the Banca Sella Group was accepted on 3 November 2025 and, following the obtaining of regulatory authorisations at the beginning of 2026, on 6 February 2026 it was sold at the agreed price (for further details, refer to the specific paragraphs included in the sections "Significant events during the year" and "Subsequent events" of the Directors’ Report on the Group);
•for 64,6 million Euro to credit portfolios of the illimity Group, one portfolio of which was subsequently sold on 28 January 2026 for an equivalent value of 41 million Euro, in line with the carrying value as at 31 December 2025 (for further details, refer to the above-mentioned section "Subsequent events");
•for 8,0 million Euro to loan portfolios of the Parent company Banca Ifis that are expected to be sold in the short term.
Level 1 amortised cost financial liabilities relate to bonds issued by the Parent company Banca Ifis and by illimity Bank.
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A.5 - Disclosure on day one profit/loss
With reference to the provisions of IFRS 7 par. 28, a financial instrument must initially be recognised at a value equal to its fair value which, unless there is evidence to the contrary, is equal to the price paid/collected in trading. The above standard governs such cases by establishing that an entity may recognise a financial instrument at a fair value other than the consideration given or received only if the fair value is evidenced:
•by comparison with other observable current market transactions in the same instrument;
•through valuation techniques using exclusively, as variables, data from observable markets.
In other words, the assumption under IFRS 9, whereby fair value is equal to the consideration given or received, may be overcome only if there is objective evidence that the consideration given or received is not representative of the actual market value of the financial instrument being traded.
Such evidence must be derived only from objective and non-refutable parameters, thus eliminating any hypothesis of discretion on the part of the evaluator.
The difference between the fair value and the negotiated price, only when the above conditions are met, is representative of the day one profit and is immediately recognised in the income statement.
No such transactions were carried out as part of the Group's operations during 2025.
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Part B - Information on the Consolidated Statement of Financial Position
ASSETS
Section 1 - Cash and cash equivalents - Item 10
1.1 Cash and cash equivalents: breakdown

| 31.12.2025 | 31.12.2024
a) Cash | 13 | 19
b) Current accounts and on demand deposits at Central banks | 303.514 | 220.000
c) Current accounts and on demand deposits at banks | 483.763 | 284.997
Total | 787.290 | 505.016

The item includes bank current accounts on demand and at 31 December 2025 amount to 787,3 million Euro, of which 229,7 million Euro from the acquisition of the illimity Group. Net of the effect of the illimity Group's contribution, the item amounts to 557,6 million Euro, up from 505,0 million Euro at the end of 2024, and this trend in 2025 is driven by a decrease in overnight deposits of the Parent company Banca Ifis, and an increase in liquidity to banks in relation to the trend in underlying loans.
Section 2 - Financial assets measured at fair value through profit or loss - Item 20
2.1 Financial assets held for trading: breakdown by type

Items/Amounts | 31.12.2025 | 31.12.2024
L1 | L2 | L3 | L1 | L2 | L3
A. Cash assets |  |  |  |  |  |
1. Debt securities | - | - | - | - | - | -
1.1 Structured | - | - | - | - | - | -
1.2 Other debt securities | - | - | - | - | - | -
2. Equity securities | 47 | - | - | - | - | -
3. UCITS units | - | - | 25 | - | - | -
4. Loans | - | - | - | - | - | -
4.1 Reverse repurchase agreements | - | - | - | - | - | -
4.2 Other | - | - | - | - | - | -
Total (A) | 47 | - | 25 | - | - | -
B. Derivatives |  |  |  | - | - | -
1. Financial derivatives | - | 27.401 | - | - | 12.069 | -
1.1 for trading | - | 27.401 | - | - | 12.069 | -
1.2 connected to the fair value option | - | - | - | - | - | -
1.3 other | - | - | - | - | - | -
2. Credit derivatives | - | - | - | - | - | -
2.1 for trading | - | - | - | - | - | -
2.2 connected to the fair value option | - | - | - | - | - | -
2.3 other | - | - | - | - | - | -
Total (B) | - | 27.401 | - | - | 12.069 | -
Total (A+B) | 47 | 27.401 | 25 | - | 12.069 | -

Financial assets held for trading at 31 December 2025 amount to 27,5 million Euro, of which 12,5 million Euro related to the proprietary portfolio of the illimity Group. Net of this component, the item amounts to 15,0 million Euro (an increase on the figure of 12,1 million Euro at 31 December 2024), referring almost entirely to derivative transactions offset by mirror positions recorded among financial liabilities held for trading.
441
2.2 Financial assets held for trading: breakdown by debtor/issuer/counterparty

Items/Amounts | 31.12.2025 | 31.12.2024
A. Cash assets |  |
1. Debt securities | - | -
a) Central Banks | - | -
b) Public Administrations | - | -
c) Banks | - | -
d) Other financial companies | - | -
of which: insurance companies | - | -
e) Non-financial companies | - | -
2. Equity securities | 47 | -
a) Banks | - | -
b) Other financial companies | - | -
of which: insurance companies | - | -
c) Non-financial companies | 47 | -
d) Other issuers | - | -
3. UCITS units | 25 | -
4. Loans | - | -
a) Central Banks | - | -
b) Public Administrations | - | -
c) Banks | - | -
d) Other financial companies | - | -
of which: insurance companies | - | -
e) Non-financial companies | - | -
f) Households | - | -
Total (A) | 72 | -
B. Derivatives | - |
a) Central Counterparties | - | -
b) Other | 27.401 | 12.069
Total (B) | 27.401 | 12.069
Total (A+B) | 27.473 | 12.069

2.3 Financial assets designated at fair value: breakdown by type
In these Consolidated Financial Statements, this item has no value.
2.4 Financial assets designated at fair value: breakdown by debtor/issuer
In these Consolidated Financial Statements, this item has no value.
442
2.5 Other financial assets mandatorily measured at fair value: breakdown by type

Items/Amounts | 31.12.2025 | 31.12.2024
L1 | L2 | L3 | L1 | L2 | L3
1. Debt securities | - | - | 95.227 | - | - | 69.042
1.1. Structured | - | - | - | - | - | -
1.2. Other debt securities | - | - | 95.227 | - | - | 69.042
2. Equity securities | - | - | 90.228 | - | - | 68.725
3. UCITS units | 8.838 | - | 549.779 | 5.785 | - | 92.273
4. Loans | - | - | 36.547 | - | - | 1.207
4.1. Reverse repurchase agreements | - | - | - | - | - | -
4.2. Others | - | - | 36.547 | - | - | 1.207
Total | 8.838 | - | 771.781 | 5.785 | - | 231.247

Key:
L1 = Level 1
L2 = Level 2
L3 = Level 3
The financial assets mandatorily measured at fair value through profit or loss total 780,6 million Euro at 31 December 2025, and include the portfolio of the illimity Group with a value of 501,4 million Euro. This item consists of loans and debt securities that did not pass the SPPI test, equity securities from minority shares and UCITS units.
Debt securities classified as Level 3 amounted to 95,2 million Euro as at 31 December 2025, of which 37,8 million Euro came from the illimity Group's contribution. Net of this component, they amount to 57,4 million Euro (69,0 million Euro at the end of 2024). These Level 3 debt securities are almost entirely represented by securities related to securitisation transactions.
Equities, totalling 90,2 million Euro as at 31 December 2025, include the contribution of the illimity Group's portfolio in the amount of 10,2 million Euro. Net of this component, they amounted to Euro 80,0 million Euro (up from the figure of Euro 68,7 million Euro as of 31 December 2024), and refer to transactions in minority interests in companies carried out by the equity investment division of the Parent company Banca Ifis.
The item "UCITS units", totalling 558,6 million Euro as at 31 December 2025, consists of:
•417,7 million Euro related to instruments held by the illimity Group;
•135,0 million Euro relating to units held by the Parent company Banca Ifis in equity and bond funds, real estate funds and multi-fund funds. The values classified as Level 1 totalling 8,8 million Euro (5,8 million Euro as of 31 December 2024) refer to two investments of the Parent company in listed equity funds, one of which was made during 2023 and the other during 2025;
•5,9 million Euro related to shares held by the subsidiary Ifis Npl Investing in funds specialised in the management of performing and non-performing loans.
443
2.6 Financial assets mandatorily measured at fair value: breakdown by debtor/issuer

| 31.12.2025 | 31.12.2024
1. Equity securities | 90.228 | 68.725
of which: banks | - | -
of which: other financial companies | 5.662 | 1.166
of which: non-financial companies | 84.565 | 67.559
2. Debt securities | 95.227 | 69.042
a) Central Banks | - | -
b) Public Administrations | - | -
c) Banks | - | -
d) Other financial companies | 95.227 | 69.042
of which: insurance companies | - | -
e) Non-financial companies | - | -
3. UCITS units | 558.617 | 98.058
4. Loans | 36.547 | 1.207
a) Central Banks | - | -
b) Public Administrations | - | -
c) Banks | - | -
d) Other financial companies | - | 13
of which: insurance companies | - | -
e) Non-financial companies | 36.547 | 1.194
f) Households | - | -
Total | 780.619 | 237.032

Section 3 - Financial assets measured at fair value through other comprehensive income - Item 30
3.1 Financial assets measured at fair value through other comprehensive income: breakdown by type

Items/Amounts | 31.12.2025 | 31.12.2024
L1 | L2 | L3 | L1 | L2 | L3
1. Debt securities | 1.254.762 | 169.733 | - | 539.362 | 5.574 | -
1.1 Structured | 90 | - | - | 4.462 | - | -
1.2 Other debt securities | 1.254.672 | 169.733 | - | 534.900 | 5.574 | -
2. Equity securities | 156.145 | - | 78.631 | 84.160 | - | 72.734
3. Loans | - | - | - | - | - | -
Total | 1.410.907 | 169.733 | 78.631 | 623.522 | 5.574 | 72.734

Key:
L1 = Level 1
L2 = Level 2
L3 = Level 3
Debt securities owned measured at fair value through other comprehensive income amount to 1.424,5 million Euro at 31 December 2025, including the contribution of the illimity Group of 538,7 million Euro. Net of this contribution, the item amounts to 885,8 million Euro, an increase of 340,9 million Euro (+62,6%) compared to the balance at 31 December 2024, mainly due to the net positive effect between new investments and disposals for the year by the Parent company Banca Ifis (+344,0 million Euro), which more than offset the decrease in the fair value measurements of Banca Ifis's proprietary portfolio (-3,1 million Euro, mainly attributable to government securities). The related associated net negative fair value reserve amounts to 10,5 million Euro at 31 December 2025, almost entirely associated with Government securities. The illimity Group's contribution to this reserve is a positive 1,0 million Euro, of which 0,7 million Euro is a positive reserve on government bonds. Without the contribution of the illimity Group, the negative net reserve on debt securities at 31 December 2025 amounts to 11,4 million Euro.
444
Level 1 'other debt securities', totalling 1,3 billion Euro, included 1,2 billion Euro in Italian and foreign government bonds, of which 373,0 million Euro related to the illimity Group's contribution. Net of this component, government bonds amounted to 825,8 million Euro (455,3 million Euro at the end of 2024).
Equity securities are attributable to minority interests, which amount to 234,8 million Euro at 31 December 2025, of which 5,5 million Euro are associated with securities of the illimity Group. Without this effect, this item totals 229,3 million Euro, up 46,2% compared to 31 December 2024. This residual change derives from the net positive effect between investments and divestments made during the year by Banca Ifis (+66,5 million Euro) as well as the increase in FV values recorded during 2025 on Banca Ifis's proprietary portfolio (+6,0 million Euro). The net fair value reserve associated with FVOCI equity securities as at 31 December 2025 showed a positive value of 2,5 million Euro, which includes the negative contribution of 0,8 million Euro relating to the illimity Group. Net of this component, the positive net reserve on FVOCI equity securities amounted to 3,3 million Euro. This figure is a significant improvement compared to the negative value at the end of 2024, which amounted to 7,7 million Euro, both due to the effect of the disposals of securities during the year and the positive fair value changes recorded during 2025 on Banca Ifis's proprietary portfolio.
Level 3 securities mainly include shares in the share capital of the Bank of Italy (50,0 million Euro) and minority interests. With specific reference to the shares held in the share capital of the Bank of Italy (2.000 shares) corresponding to 0,7% of the entire share capital, the carrying amount of 50 million Euro is obtained by valuing each share at a unit value of 25.000 Euro. In this regard, it should be noted that these units derive from the capital increase transaction carried out by the Bank of Italy in 2013 as a result of Decree-Law No. 133 of 30 November 2013, converted by Law No. 5 of 29 January 2014, which resulted in the issuance of new quotas, for a value of 25.000 Euro per unit.
3.2 Financial assets measured at fair value through other comprehensive income: breakdown by debtor/issuer

Items/Amounts | 31.12.2025 | 31.12.2024
1. Debt securities | 1.424.495 | 544.936
a) Central Banks | - | -
b) Public Administrations | 1.198.777 | 455.312
c) Banks | 28.521 | 34.310
d) Other financial companies | 175.701 | 20.103
of which: insurance companies | - | -
e) Non-financial companies | 21.496 | 35.211
2. Equity securities | 234.776 | 156.894
a) Banks | 115.533 | 61.959
b) Other issuers: | 119.243 | 94.935
- other financial companies | 1.265 | 5.712
of which: insurance companies | - | 1.750
- non-financial companies | 117.978 | 89.223
- other | - | -
3. Loans | - | -
a) Central Banks | - | -
b) Public Administrations | - | -
c) Banks | - | -
d) Other financial companies | - | -
of which: insurance companies | - | -
e) Non-financial companies | - | -
f) Households | - | -
Total | 1.659.271 | 701.830

445
3.3 Financial assets measured at fair value through other comprehensive income: gross amount and overall impairment losses/reversals

| Gross amount | Overall impairment losses/reversals | Overall partial write-offs(1)
| Stage 1 | of which: Low credit risk instru-ments | Stage 2 | Stage 3 | Purcha-sed or origina-ted impaired | Stage 1 | Stage 2 | Stage 3 | Purchased or originated impaired
Debt securities | 1.423.175 | 1.258.011 | 2.386 | 2.757 | 421 | (1.126) | (601) | (2.517) | - | -
Loans | - | - | - | - | - | - | - | - | - | -
Total 31.12.2025 | 1.423.175 | 1.258.011 | 2.386 | 2.757 | 421 | (1.126) | (601) | (2.517) | - | -
Total 31.12.2024 | 541.982 | 541.982 | 3.635 | - | - | (363) | (318) | - | - | -

(1) Amount to be reported for disclosure purposes.
446
Section 4 - Financial assets measured at amortised cost - Item 40
4.1 Financial assets measured at amortised cost: breakdown of receivables due from banks by type