Financial statements for twelve months ended 30/6/17 approved

Financial statements for twelve months ended 30/6/17 approved

FY 2016/17 results show strong growth and enhanced business profile
in terms of exposure to fee-based, capital-light, highly specialized and
profitable businesses

In accordance with 2016/19 Plan guidance, first results achieved in
developing new Wealth Management platform and further improving CIB and
Consumer positioning/profitability

Revenues up 7% to record level of €2,196m
Net profit up 24%, to €750m
Dividend per share up 37%, to €0.37
ROTE up from 7% to 9%, highest of all banks under ECB supervision

All divisions delivered higher results
WM posted 43% increases in TFAs (€60bn), revenues (€460m), and profit (€55m), and
accounts for 40% of the fee income and 20% of the revenues at Group level
CIB and Consumer each contributed profits of more than €250m
Principal Investing boosted by high contribution from Assicurazioni Generali (up 3% to
€264m) and further equity disposals of approx. €340m (generating €162m in profits)

Asset quality improved further
Texas ratio down from 15% to 13%
Cost of risk down 37 bps to 87 bps
NPLs/bad loans declining in absolute terms and as % of total loan book
Coverage ratios higher (for NPLs 55%, bad loans 70%, performing assets 1.1%)

Capital ratios stronger
despite the acquisitions, deductions and higher payout (up from 38% to 43%)
due to careful RWA management and robust earnings generation
CET1 ratio 13.3% (12.1%)
Total capital 16.9% (15.3%)
Leverage ratio stable at 9.5%