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Annual Report 2024
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Annual Report 2024
Summary
The Banca Ifis Group.................................................................................................6
Corporate Bodies.......................................................................................................7
Letter from the Chairman to Shareholders...............................................................10
Letter from the CEO to Shareholders.......................................................................13
2024 Consolidated Financial Statements and Report...............................................15
Directors’ Report on the Group................................................................................................................17
General aspects...............................................................................................................................................19
Highlights.........................................................................................................................................................21
Group KPIs........................................................................................................................................................23
Context.............................................................................................................................................................24
Results by operating segments.......................................................................................................................32
Reclassified Quarterly Evolution.....................................................................................................................35
APM - Alternative Performance Measures.....................................................................................................36
Contribution of operating Segments to Group results...................................................................................38
Group reclassified financial and income results............................................................................................54
Main risks and uncertainties...........................................................................................................................75
Banca Ifis shares..............................................................................................................................................76
Significant events during the year...................................................................................................................80
Subsequent events...........................................................................................................................................83
Information on international tensions.............................................................................................................84
Business outlook..............................................................................................................................................85
Performance of the Group's main companies................................................................................................86
Sustainability Statement..................................................................................................................................88
Other information...........................................................................................................................................322
Consolidated Financial Statements......................................................................................................325
Consolidated Statement of Financial Position.............................................................................................327
Consolidated Income Statement..................................................................................................................329
Consolidated Statement of Comprehensive Income...................................................................................330
Consolidated Statement of Changes in Equity as at 31 December 2024...................................................331
Consolidated Statement of Changes in Equity as at 31 December 2023...................................................332
Consolidated Cash Flow Statement..............................................................................................................333
Notes to the Consolidated Financial Statements................................................................................335
Part A - Accounting policies..........................................................................................................................337
Part B - Information on the Consolidated Statement of Financial Position................................................383
Part C - Information on the Consolidated Income Statement.....................................................................430
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Annual Report 2024
Part D - Consolidated statement of comprehensive income.......................................................................447
Part E - Information on risks and related hedging policies..........................................................................448
Part F - Information on consolidated equity.................................................................................................528
Part G - Business combinations....................................................................................................................532
Part H - Related-party transactions...............................................................................................................533
Part I - Share-based payments......................................................................................................................536
Part L - Segment reporting............................................................................................................................540
Part M - Leasing disclosure...........................................................................................................................545
Country-by-country reporting.................................................................................................................549
Attestations and reports........................................................................................................................553
Certification of the Sustainability Statement at 31 December 2024 in accordance with Art. 81-ter, paragraph 1 of Consob Regulation No. 11971 of 14 May 1999 and subsequent amendments and additions..........555
Certification of the Consolidated Financial Statements as at 31 December 2024 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...............................556
Board of Statutory Auditors' report...............................................................................................................557
Independent auditors' report on the Sustainability Statement....................................................................574
Independent auditors' report on the Consolidated Financial Statements..................................................579
Attachments to the Consolidated Financial Statements.....................................................................589
Reconciliation between reclassified consolidated financial statements and consolidated financial statements.....................................................................................................................................................591
Glossary..........................................................................................................................................................595
2024 Report and financial statements...................................................................607
Directors' Report....................................................................................................................................609
General aspects.............................................................................................................................................611
Highlights.......................................................................................................................................................612
KPIs.................................................................................................................................................................613
Context...........................................................................................................................................................614
Reclassified financial and income results....................................................................................................615
Main risks and uncertainties.........................................................................................................................629
Banca Ifis shares...........................................................................................................................................630
Significant events occurred during the year.................................................................................................633
Subsequent events........................................................................................................................................635
Information on international tensions..........................................................................................................636
Business outlook............................................................................................................................................637
Other information...........................................................................................................................................638
Annual profit distribution proposal...............................................................................................................640
Financial Statements.............................................................................................................................641
Statement of Financial Position....................................................................................................................643
Income Statement..........................................................................................................................................645
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Annual Report 2024
Statement of Comprehensive Income..........................................................................................................646
Statement of Changes in Equity at 31 December 2024...............................................................................647
Statement of Changes in Equity at 31 December 2023...............................................................................648
Cash Flow Statement.....................................................................................................................................649
Notes to the Financial Statements........................................................................................................651
Part A - Accounting policies..........................................................................................................................653
Part B - Information on the Statement of Financial Position.......................................................................688
Part C - Income statement.............................................................................................................................730
Part D - Statement of comprehensive income.............................................................................................745
Part E - Information on risks and related hedging policies..........................................................................746
Part F - Information on equity........................................................................................................................795
Part G - Business combinations....................................................................................................................798
Part H - Related-party transactions...............................................................................................................799
Part I - Share-based payments......................................................................................................................801
Part L - Segment reporting............................................................................................................................805
Part M - Leasing disclosure...........................................................................................................................806
Attestations and reports........................................................................................................................809
Certification of the Annual Financial Statements at 31 December 2024 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..................................................811
Board of Statutory Auditors' report...............................................................................................................812
Independent auditors' report on the Separate Financial Statements..........................................................829
Attachments to the Separate Financial Statements............................................................................837
Reconciliation between reclassified financial statements and individual financial statements...............839
List of fees and services provided by the independent auditing firm and entities belonging to the independent auditing firm's network............................................................................................................843
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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Annual Report 2024
The Banca Ifis Group
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Annual Report 2024
Corporate Bodies
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Annual Report 2024
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Annual Report 2024
Corporate offices and Independent auditing firm in office at approval of the 2024 Annual Report
Honorary Chairman
Sebastien Egon Fürstenberg
Board of Directors
ChairmanErnesto Fürstenberg Fassio
Vice ChairSimona Arduini
Chief Executive OfficerFrederik Herman Geertman (1)
DirectorsMonica Billio
Nicola Borri
Beatrice Colleoni
Roberto Diacetti
Roberta Gobbi
Luca Lo Giudice
Antonella Malinconico
Giovanni Meruzzi
Paola Paoloni
Monica Regazzi
(1) The CEO has powers for the ordinary management of the Company.
Board of Statutory Auditors
ChairmanAndrea Balelli
Standing AuditorsAnnunziata Melaccio
Franco Olivetti
Alternate AuditorsMarinella Monterumisi
Emanuela Rollino
General Management
Co-General ManagersFabio 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.
Fully paid-up share capital: 53.811.095 Euro
Name of reporting party - Banca Ifis S.p.A.
Name of ultimate parent of Group - La Scogliera 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 Member of FCI
Legal and administrative headquarters - Via Terraglio, 63 30174 Mestre Venice
Nature of reporting activity - Credit activity
ABI 3205.2
Tax Code and Venice Companies Register Number - 02505630109
VAT number - 04570150278
Enrolment in the Register of Banks No - 5508
Website - www.bancaifis.it
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Annual Report 2024
Letter from the Chairman to Shareholders
Ernesto Fürstenberg Fassio
Chairman of Banca Ifis S.p.A.
Dear Shareholders,
2024 was a complex year the world over. Despite this complexity and high economic uncertainty, we successfully completed the three-year 2022-2024 Business Plan and D.O.E.S. (Digital, Open, Efficient, Sustainable), accelerating the Banca Ifis Group's long-term, sustainable growth path. Growth took place under all relevant profiles - economic-financial, industrial and sustainability - and allowed us to generate value for the benefit of all our stakeholders, including in relation to ESG aspects, which are also fully organic to our strategic and operational model.
A few more details in relation to each of the three profiles (economic-financial, industrial and sustainability) listed.
Starting with the economic-financial dimension, we have exceeded all the main targets we had set ourselves with our Business Plan, both in terms of net profit for each of the three years of its time-frame and in terms of cumulative profit for the three-year period 2022-2024. The latter amounts to 463 million Euro, 12% above target. As far as dividends are concerned, also thanks to the new dividend policy approved in 2023, we have significantly improved our ability to generate value for our shareholders, paying out 295 million Euro in dividends over the three-year period 2022-2024, a figure 47% higher than the plan target initially set at 200 million Euro.
From an industrial point of view too, we have successfully completed the implementation of the new 'Open' model indicated in the plan: we have initiated commercial partnerships with leading operators (such as Fineco in deposit accounts, Banca Generali and Zurich Bank in supporting entrepreneurs), while on the innovation front, we have completed the roadmap of deep process transformation, thanks to the 76 million Euro investment that has enabled us to become an even more agile and efficient organisation. These measures, together with the dynamism of the sales network, enabled us to achieve positive results, which more than offset the increased cost of funding due to higher interest rates than in the past.
The integration of sustainability in the Business Plan has allowed us to release value not only in economic and industrial terms, thanks to an articulated programme of initiatives we have implemented in all areas of sustainability: environmental, social and governance, in line with the UN 2030 Agenda and the 17 Sustainable Development Goals. Also in 2024, in the wake of the activities that the Group has initiated since I took office as Chairman, we continued our efforts to support SMEs on their path to sustainable transformation, with a particular focus on the reduction of financed emissions, for which we have for years set a target of zero net emissions from the loan portfolio by 2050. Alongside products to facilitate the energy transition and promote sustainable mobility among our customers - such as the leasing of electric posts and removable photovoltaic systems or the rental of e-bike fleets - we further developed partnerships with Italian and European institutions to support innovative investments by SMEs. One example is the agreement with the European Investment Bank (EIB) for the activation
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Annual Report 2024
of financing for companies totalling 300 million Euro, aimed at promoting innovation initiatives within the “National Transition 4.0 Plan”.
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 7 million Euro, up from the 6 million Euro originally planned, with which we have implemented more than 40 projects. The support to the Bambino Gesù Children's Hospital in the search for innovative therapies to fight malignant tumours of the central nervous system and the support to the Banco Alimentare Onlus Foundation for the equivalent of 10 million meals continued in 2024, involving, in the latter case, also the Ifis People in the first corporate volunteering experience. Thanks to these projects, 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 'AA', placing us among the industry leaders.
With regard to the topics of diversity, equity and inclusion, our commitment in this regard, certified according to the UNI PdR 125:2022 standard, has now led us having a percentage of women in the workforce of more than 50% and a female-dominated Board of Directors. We have also formalised a policy to combat discrimination, violence and harassment in the workplace, setting concrete targets to be achieved by 2030. Alongside our commitment to the Ifis People, we continued to support initiatives for social inclusion in the areas where we operate, thanks to our collaboration with, among others, the CAF and YOLK associations, which work with disadvantaged young people in Milan and Rome, the Don Gino Rigoldi Foundation, which supports families in socio-economic difficulty, and Articolo 3, operating in Bollate prison.
Support for medical-scientific research was further strengthened with the renewal of the commitment to the aforementioned Bambino Gesù Children's Hospital and the Veneto Institute of Molecular Medicine (VIMM) for the purchase of two important diagnostic and research instruments (a PET-CT scanner and a Lightsheet microscope), which will make the activities of the two organisations 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.
Firmly believing that the promotion of the cultural ecosystem is a fundamental element in supporting the Italian territory, we have further developed the 'Economy of Beauty' and 'Observatory on the Italian Sport System' projects, which tell the story of the value of companies that make beauty their distinctive element and the contribution of the Italian sport system to the country. Precisely in this last area, in 2024 we again supported young CONI medallist athletes with the disbursement of 160 thousand Euro in scholarships and stood by the Ravano Tournament, Europe's most important school youth sports event.
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.
Also this year, we announced that we wanted to strengthen our commitment to the world of art, through Ifis art, a project I conceived and strongly desired, which brings together all the initiatives carried out by the Bank to promote art, culture, contemporary creativity and related values: from the corporate collection to the International Sculpture Park, to the project to recover Banksy's work in Venice and restore the Palazzo San Pantalon that houses it.
With the aim of increasingly integrating the Group's social agenda into our way of banking in the Npl Segment as well, we launched an ambitious project in 2024 to strengthen the concept of 'social banking' and financial re-inclusion in debt collection activities, with the definition of initiatives aimed at ensuring a sustainable approach that offers customers the chance of 'financial rehabilitation'.
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All these initiatives allowed us to demonstrate in a concrete and tangible way, even during this financial year, our desire to generate a positive economic, social and environmental impact, 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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Annual Report 2024
Letter from the CEO to Shareholders
Frederik Geertman
CEO of Banca Ifis S.p.A.
Dear Shareholders,
2024 was a good year for Banca Ifis, which reported profits rising to 162 million Euro and increasing revenues driven by the strength of its business model. In particular, Commercial & Corporate Banking revenues benefited from our ability to innovate our offering and the dynamism of the sales network. These elements enabled business growth and more than offset the lower demand for credit recorded by Italian companies, also due to higher interest rate levels than in the past.
On the Npl front, on the other hand, revenues grew thanks to our historical recovery capacity on acquired portfolios, which benefited above all from our social approach to the business and oriented towards dialogue with debtors, favouring settlement agreements.
The Bank's historical policy of prudent risk management continued, as witnessed by the gross and net Npe ratios, which improved to 5,4% and 2,9% respectively, with an average coverage ratio of 48% (73% for Npls and 45% for UTPs).
The Bank's growth was achieved by further strengthening its capital ratios. Both the CET1 Ratio, at 16,10%, and the Total Capital Ratio, at 18,11%, were up from 2023 and well above the standards required by the Regulator. The strong capital position also allowed us to distribute total dividends of 111,5 million Euro, or 2,12 Euro per share, which is around 40% above the Business Plan targets.
Financial growth was driven by a strong acceleration on the industrial front. We completed the digital transformation path we had planned - a pillar of the D.O.E.S. Business Plan - continuing with the digitisation process: from acquisition, to evaluation, to contracting, to after-sales, all stages of the relationship with the SME have been digitised through the various platforms, including "myIfis" and “Next”. In order to strengthen our digital infrastructure, for which we developed over 100 projects during the plan period, we have continued our research and investigation process, also at international level, technological solutions to be more efficient and competitive. We continued our product innovation, with the development of solutions aimed at supporting the sustainable transition of SMEs, such as leasing in the automotive, electric mobility and sustainable energy sectors.
Equally important are the results achieved in the area of sustainability: the Bank completed the commitments defined in the sustainable transition defined in the plan and followed up on the numerous regulatory changes that have accompanied 2024 (such as the entry into force of the Corporate Sustainability Reporting Directive). With regard to the environment, we continued our commitment to reducing direct and indirect greenhouse gas
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Annual Report 2024
emissions from our lending activities, as duly reported in the Group's Sustainability Statement and TCFD report, now at its second edition. Socially, at the instigation of the Chair, we continued to support initiatives of value to the region and the Ifis People. This commitment is now recognised by all stakeholders and has been confirmed as a distinctive element of our way of doing things.
Building on this solid foundation, we are ready to look forward with confidence to the challenges of the market in a 2025 that will see us continuing our short- and long-term development path.
Frederik Geertman, Chief Executive Officer of Banca Ifis S.p.A.
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
2024 Consolidated Financial Statements and Report
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Directors’ Report on the Group
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
General aspects
The "2024 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 relation to the acquisition of Revalea S.p.A. finalised on 31 October 2023 and its entry into the scope of consolidation (initially as a standalone company and thereafter as an incorporated company following the merger by incorporation of Revalea into Ifis Npl Investing in the course of 2024 with accounting and fiscal effect from 1 January 2024), the figures for the year and in particular the income statement figures may not be fully comparable with those of the previous year. However, it should be noted that in the comments to the individual items, the contribution of the company acquired is presented, where relevant.
For more details on this merger, refer 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" of the “2024 Consolidated Financial Statements and Report”), 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 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 and Banca Credifarma) 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":
–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.
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
The Segments of the financial numerical 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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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Highlights

CONSOLIDATED STATEMENT OF FINANCIAL POSITION(in thousands of Euro) | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | ABSOLUTE | %
Cash and cash equivalents | 505.016 | 857.533 | (352.517) | (41,1)%
Financial assets measured at fair value through profit or loss | 249.101 | 234.878 | 14.223 | 6,1%
Financial assets measured at fair value through other comprehensive income | 701.830 | 749.176 | (47.346) | (6,3)%
Receivables due from banks measured at amortised cost | 703.763 | 637.567 | 66.196 | 10,4%
Receivables due from customers measured at amortised cost | 10.810.018 | 10.622.134 | 187.884 | 1,8%
Total assets | 13.825.738 | 14.051.361 | (225.623) | (1,6)%
Payables due to banks | 1.443.250 | 2.717.139 | (1.273.889) | (46,9)%
Payables due to customers | 7.001.763 | 5.814.624 | 1.187.139 | 20,4%
Debt securities issued | 3.152.737 | 3.288.895 | (136.158) | (4,1)%
Consolidated equity | 1.748.146 | 1.693.699 | 54.447 | 3,2%

RECLASSIFIED CONSOLIDATEDINCOME STATEMENT HIGHLIGHTS(in thousands of Euro) | YEAR | CHANGE
2024 | 2023 | ABSOLUTE | %
Net banking income | 699.152 | 704.616 | (5.464) | (0,8)%
Net credit risk losses/reversals | (37.670) | (52.407) | 14.737 | (28,1)%
Net profit (loss) from financial activities | 661.482 | 652.209 | 9.273 | 1,4%
Operating costs | (406.916) | (394.648) | (12.268) | 3,1%
Charges related to the banking system | (8.136) | (11.193) | 3.057 | (27,3)%
Net allocations to provisions for risks and charges | (478) | (6.878) | 6.400 | (93,1)%
Non-recurring expenses and income | (610) | (2.919) | 2.309 | (79,1)%
Gain on disposals of investments | - | 986 | (986) | (100,0)%
Pre-tax profit (loss) for the period from continuing operations | 245.342 | 237.557 | 7.785 | 3,3%
Income taxes for the year relating to current operations | (82.168) | (75.641) | (6.527) | 8,6%
Profit (loss) for the year | 163.174 | 161.916 | 1.258 | 0,8%
(Profit) loss for the year attributable to non-controlling interests | (1.596) | (1.806) | 210 | (11,6)%
Profit (loss) for the year attributable to the Parent company | 161.578 | 160.110 | 1.468 | 0,9%

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Banca Ifis Group | 2024 Consolidated Financial Statements and Report

CONSOLIDATED COMPREHENSIVE INCOME(in thousands of Euro) | 31.12.2024 | 31.12.2023
Profit (loss) for the year | 163.174 | 161.916
Other comprehensive income, net of taxes, not to be reclassified to profit or loss | (3.657) | (4.561)
Other comprehensive income, net of taxes, to be reclassified to profit or loss | 3.102 | 19.815
Consolidated comprehensive income | 162.619 | 177.170
Consolidated comprehensive income attributable to non-controlling interests | (1.597) | (1.806)
Consolidated comprehensive income attributable to the Parent company | 161.022 | 175.364

Refer to the section “Group reclassified financial and income results” for comments on the dynamics in the balance sheet and income statement. 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.
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Group KPIs

GROUP EQUITY KPIs |  | 2024 | 2023 | CHANGE
CET1 ratio (1) |  | 16,10% | 14,87% | 1,23%
Total Capital Ratio (1) |  | 18,11% | 17,44% | 0,67%
Number of company shares (in thousands) |  | 53.811 | 53.811 | 0,0%
Number of shares outstanding at year end (2) | (in thousands) | 52.572 | 52.468 | 0,2%
Price/book value per share |  | 0,64 | 0,49 | 0,15
Dividend per share(3) |  | 2,12 | 2,10 | 0,02

(1) CET1 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.
(2) Outstanding shares are net of treasury shares held in the portfolio.
(3) The figures for FY 2024 comprise the total of 1,20 Euro per share distributed as an interim dividend in November 2024 and 0,92 Euro per share as a proposal for a final dividend for the FY 2024 prepared by the Board of Directors of Banca Ifis.

GROUP ECONOMIC KPIs | 2024 | 2023 | CHANGE
ROE | 9,4% | 9,7% | (0,3)%
ROA | 1,2% | 1,1% | 0,1%
Reclassified cost/income ratio | 58,2% | 56,0% | 2,2%
Earnings per share (EPS) | 3,08 | 3,05 | 0,03
Payout ratio | 69,0% | 68,9% | 0,1%

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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Context
The international context and the Italian economy in 2024
In the final stretch of 2024, the expansion of global economic activity continued, albeit with uneven territorial trends and with the real driver being the US. Indeed, US economic activity continued to expand in the second and third quarters of 2024, at growth rates of 3% and 2,8% respectively, driven by household consumption. This pace of growth will, according to OECD estimates, lead to a US GDP growth of 2,8% for the year as a whole, by far the highest figure among advanced economies and not far off the 2,9% growth in 2023. The OECD forecast, as reported by the Bank of Italy in its January 2025 Economic Bulletin, shows us that the world economy as a whole is expected to expand by 3,2% in 2024.
Since August 2024, the cost of energy has again become a point of attention: the average of the TTF index values (the Title Transfer Facility is the main virtual reference market for gas exchange in Europe, and the monthly average is calculated on the basis of daily quotations referring to the month of supply) increased by 24,2%. The cause is the combination of two factors: the increase in demand with the start of the cold season and, from the end of December 2024, the interruption of Russian gas flows to Eastern Europe via Ukraine, a blockade brought about by the non-renewal of the transit agreement between the two countries. However, the prospective supply risk seems to be low, as the moderate increase in one-year futures contract prices would confirm.
Gas prices on the Amsterdam TTF market

Month | TTFMathematical average of daily quotations referring to the month of delivery
November 2024 | 0,431859
October 2024 | 0,386929
September 2024 | 0,410759
August 2024 | 0,347560
July 2024 | 0,368235
June 2024 | 0,339957
May 2024 | 0,310607
April 2024 | 0,287019
March 2024 | 0,274705
February 2024 | 0,319574
January 2024 | 0,385473

Source: Banca Ifis processing from A2A website.
In the first three quarters of 2024, the GDP produced by the Eurozone changed by +0,3%, +0,2% and +0,4% (source: Economic Bulletin of the Bank of Italy). In the third quarter, the highest growth is attributable to specific phenomena:
•strong expansion in Ireland but temporary as a result of multinationals' geographic allocation choices of intellectual property investments;
•high development in Spain;
•increase in France due to the benefit brought by the increased demand associated with the Olympic Games, confirming how major events can also have an important impact at the macro level, with a particularly relevant trend in sport: Banca Ifis's estimate (from the Observatory on the Italian Sport System) on Paris 2024 quantifies the economic benefit, both immediate and deferred, on the territory at 37 billion Euro.
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
In contrast to the aforementioned drivers, GDP stagnated substantially in Germany and Italy, and the Eurozone as a whole suffered from the negative contribution of foreign demand.
Estimation models point to only a modest increase in Eurozone GDP in Q4 2024, as industry would have remained weak consistent with the deterioration of business confidence in the autumn. In the closing months of 2024, the growth impulse provided by the services business, which had benefited from the good performance of the tourist season in the third quarter, also weakened. With regard to Eurozone manufacturing in particular, the volume dropped significantly, even falling below the levels recorded before the Covid-19 pandemic, due to the weakness of the German industry, which accounts for more than one third of Eurozone manufacturing and almost half of the capital goods sector. This downturn was also accentuated by the negative repercussions on other countries in the region. Three main causes contribute to the unfavourable development in Germany:
•the rise in energy costs hit German production harder due to its importance in the chemical sector, a production sector with strong sectoral interconnections;
•weak global demand for goods, fragmented trade and increased competition from Chinese manufacturers penalised German manufacturing companies due to Germany's greater trade openness;
•the difficulties in the automotive sector, which has been hit by both a widespread drop in demand and increasing competition from Chinese car manufacturers. Automotive investments were also slowed down by the uncertainty induced by a possible Chinese reaction to the duties set on Chinese electric cars.
On the demand side, the Eurozone saw a gradual weakening of consumption during 2024, while investment would continue to be affected by still restrictive financing conditions. According to projections by Eurosystem experts (from the ECB website: Macroeconomic projections for the Eurozone made by Eurosystem experts, December 2024) the Eurozone product was set to stop at a growth of +0,7% in 2024, a forecast quite in line with the +0,8% estimated by the OECD.
On 30 January 2025, the Governing Board of the ECB cut official interest rates again, for the fifth time since June 2024, as a result of reduced inflationary pressure and weak growth in the real economy.
The effects were felt immediately: on the one hand, the interest rates charged on deposit accounts marketed in Italy (see first table below) fell, between September 2023 (when the official rates peaked) and December 2024, by 54 basis points in the 6- and 24-month bonds and by 30 basis points for the 60-month bond on the other hand, the rates charged on new loan disbursements (see second table below) fell, between September 2023 and November 2024, by 75 basis points for non-financial companies, by 97 basis points for home purchase and by 37 basis points for consumer credit in the household segment.
Average deposit account rates by duration of restriction

Month | Restriction duration
6 m | 12 m | 18 m | 24 m | 36 m | 48 m | 60 m
Jun-24 | 2,76% | 2,96% | 3,15% | 3,07% | 3,21% | 3,19% | 3,14%
Jul-24 | 2,80% | 3,07% | 3,16% | 3,14% | 3,25% | 3,09% | 3,24%
Aug-24 | 2,66% | 2,99% | 3,16% | 3,02% | 3,14% | 3,06% | 3,07%
Sep-24 | 2,41% | 2,78% | 2,98% | 2,81% | 2,76% | 2,79% | 2,84%
Oct-24 | 2,43% | 2,67% | 2,91% | 2,66% | 2,74% | 2,68% | 2,62%
Nov-24 | 2,40% | 2,65% | 2,87% | 2,59% | 2,73% | 2,76% | 2,78%
Dec-24 | 2,23% | 2,45% | 2,69% | 2,49% | 2,58% | 2,76% | 2,68%

Source: Banca Ifis survey on Information Sheets published on websites.
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Interest rates on new loan disbursements

Observation date | Loans for house purchase to household segment(% of amount disbursed) | Consumer credit to household segment(% of amount disbursed) | Loans to non-financial companies(% of amount disbursed)
Jun-24 | 3,47% | 8,55% | 5,22%
Jul-24 | 3,40% | 8,79% | 5,29%
Aug-24 | 3,39% | 8,80% | 5,06%
Sep-24 | 3,22% | 8,75% | 4,83%
Oct-24 | 3,18% | 8,70% | 4,75%
Nov-24 | 3,14% | 8,46% | 4,60%

Source: Bank of Italy database - item MIR0600.
In 2024, lending dynamics remained weak overall: the change in the actual stock of loans to resident Italian customers (taking into account adjustments, disposals and securitisations to provide a consistent time trend) was a reduction of 1,4% between the third quarter of 2024 and the same period of 2023, while compared to the previous 24 months, it was a reduction of 5,5%. This was entirely attributable to corporate credit, which fell by 2,8% in the same period (down 9,4% compared to September 2022), while the household segment grew by 0,4%.
Stock of Italian resident-only loans adjusted for securitisations, other disposals, reclassifications, value adjustments and exchange rate changes - base 100 = q3 2019 - rolling percentage change over previous 12 months
Source: Banca Ifis internal analysis based on Bank of Italy data. Total loans include only transactions with resident customers, excluding Monetary Financial Institutions. The stock takes into account securitisations, other disposals, reclassifications, value adjustments and exchange rate changes.
These trends continue to reflect a modest demand for credit, probably conditioned by rates that remain at historically high levels (for non-financial companies, 4,60% of disbursements in November 2024 compares with 1,06% in January 2022) and a solid liquidity position of Italian companies.
In the European Union (EU), the implementation of recovery and resilience plans continues: as of 10 October 2024, 39 billion Euro in funding related to the National Recovery and Resilience Plans (NRRPs) has been disbursed, with total disbursements reaching 306 billion Euro.
Focusing on Italy, the product stagnated in Q3 2024, still held back by weakness in manufacturing against the slight expansion of services and construction. While the latter were affected by the freezing or reduction of tax concessions on residential property, they benefited from the activity resulting from public works financed through the NRRP. The signs of industrial production in the latter part of the year were positive (ISTAT Note on the Italian Economy, January 2025), which was on the rise. The most recent economic data (November 2024) shows that the
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
index of industrial production marked the second consecutive increase (+0,3% compared to October). Growth affected all main industrial sectors, except capital goods (-0,6%). The latter is confirmed by the difficulties of the Italian leasing sector: Assilea's monitoring shows that the leasing and rental stipulated in 2024 decreased by 3,9% in value and 8,1% in number of contracts. The instrumental segment, in particular, reduced the amounts contracted by 9,5%, although a positive sign came from the number of contracts, which increased by 1,5%, demonstrating the strong focus on investment and innovation by SMEs despite a not entirely positive economic situation.
Foreign trade, on the other hand, negatively affected Italian GDP growth, due to the sharp contraction of exports of goods and services. In the first nine months of 2024, exports shrank by -0,7% compared to 2023, with the marked decrease in textiles and clothing (-4,7%) and automotive (-10,8%) in particular, while food and beverages and manufacturing activities other than textiles and fashion bucked the trend. The decline was entirely concentrated in the EU countries (-2,1% in the first 11 months of 2024), and more than offset the 0,8% increase in non-EU countries (despite the 3,6% decline to the USA and 21,1% to China). The latter is a positive sign of the Italian system's ability to diversify, which bodes well for the future.
As already indicated for the Eurozone, the Bank of Italy estimated that Italian product was to remain weak in the fourth quarter of 2024. The sluggishness in manufacturing continued, although subsiding, and was accompanied by a still tenuous investment dynamic and a dampening of the contribution of consumption after the previous quarter's jump. According to the most recent macroeconomic projections, GDP will grow by 0,5% in 2024 as a whole, compared to a relatively more optimistic OECD forecast (December 2024) of 0,8% growth.
Projections for 2025-2026
According to projections published in December by the OECD, world GDP will grow by 3,3% in 2025, in line with 2024. These forecasts are weighed down by the risks arising from heightened international tensions and the actual direction that US economic policy will take under the new administration. The US intention to introduce duties will affect world trade, such as the recent imposition of duties on Canada and Mexico, which were later suspended, and those on Chinese products. The effect of the announcement of these interventions could, however, have a paradoxical effect: if importers decide to anticipate some orders, world trade could increase.
Without taking into account assumptions on US policies, the Bank of Italy estimates world trade in goods and services to increase by 3,2% in 2025, a figure in line with product growth as well as the dynamics of 2024. The OECD in December 2024 published a broadly similar forecast, estimating GDP growth in 2025 of 3,3%.
The disinflation process continues in general and, in particular, the twelve-month consumer inflation figure for December 2024 marked:
•a slight increase in the US to 2,9% from 2,7% the previous month, although the underlying component fell;
•a decline to 2,5% in the UK;
•an increase to 2,9% in Japan, bucking the global trend.
The process of normalising monetary policy continues: at its December 2024 meeting, the Federal Reserve decided on a new cut in key interest rates by 25 basis points, and further cuts of 50 basis points are expected by December 2025, at a faster pace than anticipated in September 2024. More cautious are the approaches of the Bank of England and the Bank of Japan, which left rates unchanged in December 2024. Finally, the Central Bank of China confirmed an expansionary monetary stance aimed at supporting economic growth in a context of weak domestic demand. This is in addition to the new action plan for 2025 aimed at supporting domestic consumption.
In the Bank of Italy forecast, Eurozone product will expand by 1,1% in 2025, which compares with +1,3% in the OECD forecast of December 2024, +1,4% in 2026 and +1,3% in 2027. These forecasts were revised downwards due to expectations of a subdued recovery in household spending and exports.
In the same geographical area, consumer inflation increased to 2,4% in December 2024, according to preliminary estimates, from 2,2% in November 2024, due to the dynamics of the energy component, which turned slightly positive.
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Core inflation, measured excluding food and energy goods, remained stable at 2,7%, while services inflation remained high at 4%, supported by items whose prices adjust later than the general index (e.g. house rents and health services). At the same time, the trend decline, which started in spring 2023, in the producer prices of goods sold on the domestic market continued, mainly due to the continued sharp reduction in those of energy goods. According to December projections by Eurosystem experts, price growth will be 2,1% in 2025, 1,9% in 2026 and 2,1% in 2027. The budgetary policy of EU countries will be restrictive, albeit moderately, but without affecting public investment, which is expected to continue growing in 2025 in almost all Member States.
The Bank of Italy's most recent projections foresee an acceleration of Italian GDP in the three-year period 2025-2027, however with growth rates limited to around 1% per year on average over the period (see table below) and declining in the two-year period 2025-2026 compared to the estimates made in October 2024. Growth is expected to regain momentum in the second half of 2025 due to the expected growth in consumption and exports, which will benefit from the recovery of disposable income and international trade. Investment will slow down further due to the effects of the downsizing of housing incentives, which the NRRP will not be able to offset. Compared to the projections published in October 2024, GDP growth is revised downwards over the 2025-2026 horizon due to less favourable than expected foreign demand data and slightly higher interest rates.
GDP growth over the previous period: forecasts by the Bank of Italy and other organisations

Organisation/date | 2024 | 2025 | 2026
Bank of Italy/December | 0,5% | 0,8% | 1,1%
European Commission/November | 0,7% | 1,0% | 1,2%
OECD/December | 0,5% | 0,9% | 1,2%
IMF/October | 0,7% | 0,8% | 0,7%
Consensus Economics/December | 0,5% | 0,7% | 0,9%

Source: Bank of Italy, Economic Bulletin No.1 2025.
Reference markets
Corporates
Business activity remained weak in Q4 2024, still held back by the performance of the manufacturing sector. Services continued to expand, albeit slightly, as did construction, thanks in part to the non-residential works related to the NRRP, which managed to offset the decline in activity on the residential side as a result of the loss of incentives (e.g. the “Superbonus”).
Italian companies report a progressive deterioration in production levels and orders, both in actual and expected figures. The less positive scenario mainly affects companies producing intermediate and capital goods, as a result of the slowdown in investments, as shown by Assilea data on the leasing market and the increase in company liquidity due to the lower absorption of resources. Marked reductions concerned the manufacture of transport equipment, reflecting the crisis in the sector, which in more general terms affects the entire Eurozone, indicated by the significant drop (-12,1%) in exports of 'transport equipment' in the first 11 months of 2024.
The lack of demand, both domestic and foreign, from our 'business-to-business' companies ("B2B") has a clear connection with the sluggishness of the manufacturing cycle in the Eurozone and, in particular, in Germany: the export trend to this country recorded, as a cumulative figure to November 2024, a decrease of 5,1% at the overall value level and a decrease of 5% on the item "products of manufacturing activities".
In contrast to the weakness of investments in 2024, the outlook is more positive: with the exception of industry, the balance between the share of companies expecting an expansion of nominal investment expenditure in 2025 and the share of companies indicating a reduction is positive. Sentiment is most favourable in construction, where more than half of the companies expect to benefit from NRRP-related measures.
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
The general PPI index (producer prices of industrial products sold on the domestic market) recorded a steady slowdown in producer prices, showing a decrease in terms of percentage change in every single month of 2024, continuing the decline that started in 2023 (-8,3% year-on-year), even considering that the index had increased by 42,8% in 2022. This leads to the expectation of less pressure on margins and increased competitiveness of our companies.
The quality of credit disbursed to businesses remained good, despite rising market rates, the cost of energy and the dreaded risk of default on state-guaranteed loans granted in the two-year pandemic to support liquidity. More specifically, in the third quarter of 2024, the rate of deterioration of corporate loans (source: Banca Ifis's Market Watch Npl processing based on Bank of Italy statistical data) remained more or less stable at 1,8% compared to the previous three months (1,74% in the second quarter of 2024), although moderately up compared to the rate of 1,3% in 2023. A detailed analysis of new corporate impaired flows returns a modest increase of 2,3 billion Euro compared to flows in 2023, mainly attributable to the services sector (accounting for 66% of the total). Taking a more detailed look, it is the trade and real estate sectors that influence the trend of the service sector.
Using the most recent macroeconomic forecasts, the Bank of Italy (Financial Stability Report, November 2024) indicates that the percentage of debt attributable to vulnerable companies (this grouping includes companies with negative EBITDA or a ratio of financial charges to EBITDA above 50%) is expected to fall to around 33% in 2025. This decline, which confirms the financial stability and self-financing capacity of Italian companies, would affect almost all sectors and different company size classes.
Consistently, from the 'Economic Survey of Industrial and Service Enterprises' (source: Bank of Italy, Report on Financial Stability, November 2024 edition) showed a lower absorption of internally generated financial resources compared to investments, with a consequent increase in liquidity in the second quarter of 2024, which accounted for 25,2% of GDP, a value about one percentage point higher than at the end of 2023 and almost four percentage points higher when compared to 2019. The same survey reflects the widespread sentiment among Italian entrepreneurs: the incidence of companies that consider their reserves to be low compared to the operational needs required for the latter part of 2024 remained substantially unchanged at low levels, even for smaller companies.
SMEs, in particular, responded to the survey used for Banca Ifis's Market Watch SMEs (2024 edition) by stating for 8,5% that it has improved compared to the previous 12 months, for 77,4% that it will remain unchanged and only 14% that it will worsen, thus confirming their perception of financial soundness.
Italian SMEs were not only resilient on corporate finance but also dynamic in strengthening their market position. In actual fact, according to the findings of Banca Ifis's SME Market Watch, on the one hand, the penetration of companies that export has increased to over 45% in 2024, and on the other, the share of SMEs that state that they already invest or will invest (within the next year) in sustainability has increased by 4 percentage points to 60,4%. Confirming that sustainability is not just reputation, in 2024 Italian SMEs implemented increasingly stringent supplier selection policies: the percentage of companies working exclusively with suppliers that adopt sustainability policies rose from 16,4% in the previous 12 months to 20,3%.
Italian companies are also attractive: almost 1.400 business combinations were finalised in Italy in 2024 (source: Mergermarket), 35% of which had foreign buyers, led by the US, Germany and the UK.
The above-mentioned 'Business Cycle Survey of Industrial and Service Enterprises' also shows a decrease in the share of industrial enterprises expecting to close the year in profit, especially among those with a higher share of exports in turnover. Analysts' expectations for 2025 point to a decline in the earnings of listed companies, compared to those expected by the end of 2024, particularly intense in the sectors most sensitive to the business cycle, i.e. consumer discretionary goods and energy. These evaluations tell us how crucial 'technology' and 'product' will be to meet the challenge of profitability, leveraging efficiency and market positioning, especially internationally.
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Non-performing loans (Npls)
The analysis of the Italian impaired credit sector requires, first of all, to contextualise the trends from a European perspective. In the third quarter of 2024, the Npe ratio (ratio of non-performing loans to stock of loans) of EU area significant banks is essentially unchanged compared with the previous quarter (1,88% vs 1,86% in the second quarter of 2024). However, compared to the start of 2023, both the stock of Npes (+19 billion Euro in absolute terms) and the Npe ratio (from 1,75% to 1,88%) are on the rise, interrupting a decline that had lasted continuously since 2015 (Banca Ifis Npl Market Watch, February 2025). The increase in non-performing loans is mainly concentrated in German (+10,2 billion Euro) and French (+9,5 billion Euro) banks. Significant Italian banks show, in contrast, a reduction (-5,6 billion Euro).
Stage 2 and forborne performing loans in EU significant banks
Source: Banca Ifis Research Department elaborations on EBA “Risk Dashboard” report, ECB supervisory banking statistics.
At the same time, German banks significantly increased the proportion of Stage 2 loans (see image above), showing a worsening of the prospective risk profile. This is therefore an indication of increasing riskiness, which the trend of forborne performing loans seems to confirm: while the EU average is stable at 0,8%, the German figures show a growth to 1,0% Q3 2024 compared to 0,7% in the previous quarter. Instead the decline for Italy's significant banks was considerable, eliminating the gap with the EU average.
Annual flows of new defaulting loans and the loan default rate for residents only - data in billion Euro and %
Source: Banca Ifis internal analysis based on Bank of Italy data.
In Italy, the credit deterioration rate is estimated to remain at a historically low level (Banca Ifis Npl Market Watch, February 2025 edition). Compared to the September 2024 forecast, 7 billion Euro more new impaired are estimated in the three-year period 2024-2026, with a slightly higher rate in 2024 and 2026. The slight increase in the deterioration rate of bank loans, as just illustrated, is the result of a worsening in the corporate segment and to a lesser extent in the household segment. In particular, the current trend of impaired corporate flows is still limited (+2,3 billion Euro) and is mainly attributable to the services sector, which accounts for 66%, whose trend is mainly
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
influenced by the increase in flows in the trade sector (48% of the increase in services) and real estate activities (23% incidence).
Npl transaction market trend - data in billion Euro at GBV (Gross Book Value) level and in %
Source: Banca Ifis Npl Market Database - News and press releases - Banca Ifis internal analysis.
The GBV (Gross Book Value) of Npl portfolio transactions in 2024 was 21 billion Euro. Npl volumes (17 billion Euro) saw a significant weight of the secondary market (57%). The 2025-2026 forecast sees more than 50% of the secondary market. The market will remain active and for the two-year period 2025-2026, Npl transacted volumes are estimated at around 19-20 billion Euro per year and around 5-6 billion Euro for probable defaults (UTP) alone, which will allow banks' Npe ratio to remain around 3%.
The historical analysis of Npe transactions allows us to identify 3 phases:
•2017-2018: intense de-risking on the entire banking system;
•2019-2022: pursuit of the banks’ 5% Npe ratio target, as indicated by the EBA;
•2023 onwards: maintenance/reduction of low stock (Npe ratio of around 3%).
Estimated amount of total Npes in Italy (residents and non-residents in bank financial statements + portfolios sold net of collections and positions closed) – figures in billion Euro
Source: Banca Ifis Research Department internal estimates from Banca Ifis’s Npl Market Database, the Bank of Italy, Unirec and servicer budgets.
The stock of Npes in Italy declined by around 68 billion Euro from 2015 to 2024, with a reduction that is estimated to become as much as 80 billion Euro in 2026, representing a 22% system-wide decline due to collections that resulted in the reduction or closure of debt positions, confirming the role played by specialised management.
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Results by operating segments

STATEMENT OF FINANCIAL POSITION DATA(in thousands of Euro) | COMMERCIAL & CORPORATE BANKING SEGMENT | NPL SEGMENT | GOVERNANCE & SERVICES AND NON-CORE SEGMENT | TOTAL CONS.GROUP TOTAL
TOTAL COMMERCIAL & CORPORATE 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 31.12.2024 | 143.933 | 975 | - | 142.958 | 36.293 | 56.806 | 237.032
Amounts at 31.12.2023 | 107.169 | 975 | - | 106.194 | 41.735 | 73.078 | 221.982
% Change | 34,3% | 0,0% | - | 34,6% | (13,0)% | (22,3)% | 6,8%
Financial assets measured at fair value through other comprehensive income |  |  |  |  |  |  |
Amounts at 31.12.2024 | 993 | - | - | 993 | - | 700.837 | 701.830
Amounts at 31.12.2023 | 1.333 | - | - | 1.333 | - | 747.843 | 749.176
% Change | (25,5)% | - | - | (25,5)% | - | (6,3)% | (6,3)%
Receivables due from customers (1) |  |  |  |  |  |  |
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
Amounts at 31.12.2023 | 6.763.468 | 2.844.805 | 1.552.204 | 2.366.459 | 1.646.158 | 2.212.509 | 10.622.134
% Change | 3,3% | 1,9% | 3,9% | 4,5% | (7,6)% | 4,1% | 1,8%
Goodwill |  |  |  |  |  |  |
Amounts at 31.12.2024 | - | - | - | - | 38.020 | - | 38.020
Amounts at 31.12.2023 | - | - | - | - | 38.020 | - | 38.020
% Change | - | - | - | - | 0,0% | - | 0,0%
Other assets |  |  |  |  |  |  |
Amounts at 31.12.2024 | 163.000 | 163.000 | - | - | - | 219.965 | 382.965
Amounts at 31.12.2023 | 208.748 | 208.748 | - | - | - | 235.944 | 444.692
% Change | (21,9)% | (21,9)% | - | - | - | (6,8)% | (13,9)%

(1) In the Governance & Services and Non-Core Segment, at 31 December 2024, there are government securities amounting to 1.579,0 million Euro (1.628,7 million Euro at 31 December 2023).
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report

RECLASSIFIED INCOME STATEMENT DATAAT 31.12.2024(in thousands of Euro) | COMMERCIAL & CORPORATE BANKING SEGMENT | NPL SEGMENT | GOVERNANCE & SERVICES AND NON-CORE SEGMENT | CONS.GROUP TOTAL
TOTAL COMMERCIAL & CORPORATE BANKING SEGMENT | of which: FACTORING AREA | of which: LEASING AREA | of which: CORPORATE BANKING & LENDING AREA
Net interest income | 238.795 | 114.552 | 50.530 | 73.713 | 280.300 | 13.410 | 532.505
Net commission income | 96.175 | 63.979 | 10.786 | 21.410 | (1.041) | (3.359) | 91.775
Other components of net banking income | 16.454 | 11 | - | 16.443 | 16.957 | 41.461 | 74.872
of which: Gains (losses) on the disposal of financial assets | - | - | - | - | 16.068 | - | 16.068
Net banking income | 351.424 | 178.542 | 61.316 | 111.566 | 296.216 | 51.512 | 699.152
Net credit risk losses/reversals | (40.413) | (6.763) | (4.508) | (29.142) | 52 | 2.691 | (37.670)
Net profit (loss) from financial activities | 311.011 | 171.779 | 56.808 | 82.424 | 296.268 | 54.203 | 661.482
Operating costs | (164.065) | (89.547) | (34.000) | (40.518) | (199.185) | (43.666) | (406.916)
Charges related to the banking system | - | - | - | - | - | (8.136) | (8.136)
Net allocations to provisions for risks and charges | (3.194) | (8.905) | (344) | 6.055 | 2.227 | 489 | (478)
Non-recurring expenses and income | - | - | - | - | (610) | - | (610)
Pre-tax profit (loss) for the period from continuing operations | 143.752 | 73.327 | 22.464 | 47.961 | 98.700 | 2.890 | 245.342
Income taxes for the year relating to current operations | (48.144) | (24.558) | (7.524) | (16.062) | (33.056) | (968) | (82.168)
Profit (loss) for the year | 95.608 | 48.769 | 14.940 | 31.899 | 65.644 | 1.922 | 163.174
(Profit) loss for the year attributable to non-controlling interests | - | - | - | - | - | (1.596) | (1.596)
Profit (loss) for the year attributable to the Parent company | 95.608 | 48.769 | 14.940 | 31.899 | 65.644 | 326 | 161.578

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Banca Ifis Group | 2024 Consolidated Financial Statements and Report

SEGMENT KPIs(in thousands of Euro) | COMMERCIAL & CORPORATE BANKING SEGMENT | NPL SEGMENT | GOVERNANCE & SERVICES AND NON-CORE SEGMENT(1)
TOTAL COMMERCIAL & CORPORATE BANKING SEGMENT | of which: FACTORING AREA | of which: LEASING AREA | of which: CORPORATE BANKING & LENDING AREA
Credit cost (2) |  |  |  |  |  |
Amounts at 31.12.2024 | 0,61% | 0,26% | 0,29% | 1,20% | n.a. | (0,41)%
Amounts at 31.12.2023 | 0,95% | 1,13% | 0,29% | 1,18% | n.a. | (1,46)%
% Change | (0,34)% | (0,87)% | 0,00% | 0,02% | n.a. | 1,05%
Net bad loans/Receivables due from customers |  |  |  |  |  |
Amounts at 31.12.2024 | 0,4% | 0,4% | 0,0% | 0,7% | 77,9% | 0,2%
Amounts at 31.12.2023 | 0,3% | 0,4% | 0,0% | 0,3% | 77,6% | 0,3%
% Change | 0,1% | 0,0% | 0,0% | 0,4% | 0,3% | (0,1)%
Coverage ratio on gross bad loans |  |  |  |  |  |
Amounts at 31.12.2024 | 74,0% | 83,3% | 94,2% | 47,2% | 0,0% | 53,1%
Amounts at 31.12.2023 | 80,7% | 85,6% | 93,5% | 50,4% | 0,0% | 53,8%
% Change | (6,7)% | (2,3)% | 0,7% | (3,2)% | 0,0% | (0,7)%
Net non-performing exposures/Net receivables due from customers |  |  |  |  |  |
Amounts at 31.12.2024 | 2,8% | 2,7% | 0,8% | 4,1% | 98,4% | 1,3%
Amounts at 31.12.2023 | 3,1% | 4,5% | 0,7% | 3,1% | 98,2% | 1,2%
% Change | (0,3)% | (1,8)% | 0,1% | 1,0% | 0,2% | 0,1%
Gross non-performing exposures/Gross receivables due from customers |  |  |  |  |  |
Amounts at 31.12.2024 | 5,3% | 5,9% | 2,2% | 6,6% | 98,4% | 2,0%
Amounts at 31.12.2023 | 5,3% | 7,6% | 1,9% | 4,8% | 98,2% | 2,0%
% Change | 0,0% | (1,7)% | 0,3% | 1,8% | 0,2% | 0,0%
RWA (3) |  |  |  |  |  |
Amounts at 31.12.2024 | 5.769.725 | 2.729.714 | 1.200.451 | 1.839.560 | 1.733.692 | 1.171.961
Amounts at 31.12.2023 | 5.813.454 | 2.737.066 | 1.344.965 | 1.731.423 | 1.898.366 | 1.537.717
% Change | (0,8)% | (0,3)% | (10,7)% | 6,2% | (8,7)% | (23,8)%

(1) In the Governance & Services and Non-Core Segment, at 31 December 2024, there are government securities amounting to 1.579,0 million Euro (1.628,7 million Euro at 31 December 2023).
(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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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Reclassified Quarterly Evolution

RECLASSIFIED CONSOLIDATED INCOME STATEMENT: QUARTERLY EVOLUTION (in thousands of Euro) | YEAR 2024 | YEAR 2023
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1
Net interest income | 128.106 | 117.036 | 146.605 | 140.758 | 156.691 | 134.820 | 135.247 | 139.439
Net commission income | 22.209 | 22.657 | 23.835 | 23.074 | 23.922 | 24.002 | 26.970 | 23.327
Other components of net banking income | 17.001 | 17.629 | 18.836 | 21.406 | 11.646 | 5.029 | 10.464 | 13.059
Net banking income | 167.316 | 157.322 | 189.276 | 185.238 | 192.259 | 163.851 | 172.681 | 175.825
Net credit risk losses/reversals | (8.795) | (13.034) | (7.252) | (8.589) | (21.537) | (14.532) | (6.367) | (9.971)
Net profit (loss) from financial activities | 158.521 | 144.288 | 182.024 | 176.649 | 170.722 | 149.319 | 166.314 | 165.854
Personnel expenses | (42.617) | (40.622) | (43.217) | (43.396) | (43.336) | (40.021) | (40.737) | (39.708)
Other administrative expenses | (69.975) | (53.376) | (62.246) | (61.941) | (71.244) | (51.806) | (61.337) | (53.822)
Net impairment losses/reversals on property, plant and equipment and intangible assets | (6.257) | (6.199) | (5.646) | (5.174) | (4.682) | (4.472) | (4.350) | (4.202)
Other operating income/expenses | 11.597 | 6.629 | 7.133 | 8.391 | 7.709 | 4.894 | 5.824 | 6.642
Operating costs | (107.252) | (93.568) | (103.976) | (102.120) | (111.553) | (91.405) | (100.600) | (91.090)
Charges related to the banking system | (15) | (25) | (8.087) | (9) | (861) | (6.242) | 1.760 | (5.850)
Net allocations to provisions for risks and charges | 87 | 141 | 1.443 | (2.149) | (6.383) | 31 | (8) | (518)
Non-recurring expenses and income | (54) | (236) | (280) | (40) | (1.599) | (1.320) | - | -
Gains (losses) on disposal of investments | - | - | - | - | 986 | - | - | -
Pre-tax profit (loss) for the period from continuing operations | 51.287 | 50.600 | 71.124 | 72.331 | 51.312 | 50.383 | 67.466 | 68.396
Income taxes for the period relating to continuing operations | (15.898) | (17.280) | (24.289) | (24.701) | (15.521) | (16.264) | (21.778) | (22.078)
Profit (loss) for the period | 35.389 | 33.320 | 46.835 | 47.630 | 35.791 | 34.119 | 45.688 | 46.318
(Profit) loss for the period attributable to non-controlling interests | (379) | (366) | (397) | (454) | (422) | (414) | (566) | (404)
Profit (loss) for the period attributable to the Parent Company | 35.010 | 32.954 | 46.438 | 47.176 | 35.369 | 33.705 | 45.122 | 45.914

36
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
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”).
Furthermore, the statement issued by ESMA on 24 October 2024 entitled 'European common enforcement priorities for 2023 annual financial reports', with specific reference to HIIs, emphasises that in the case of cash flow or net financial indebtedness indicators, issuers are required to provide their reconciliations to the most directly related balance sheet items (individual items, subtotals or totals).
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
2024 | 2023
A. Profit (loss) for the year attributable to the Parent company | 161.578 | 160.110
B. Average equity attributable to the Parent company | 1.725.002 | 1.651.039
ROE (A/B) | 9,4% | 9,7%

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
2024 | 2023
A. Profit (loss) for the year attributable to the Parent company | 161.578 | 160.110
B. Total assets | 13.825.738 | 14.051.361
ROA (A/B) | 1,2% | 1,1%

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Banca Ifis Group | 2024 Consolidated Financial Statements and Report

Reclassified cost/income ratio(in thousands of Euro) | YEAR
2024 | 2023
A. Operating costs | 406.916 | 394.648
B. Net banking income | 699.152 | 704.616
Reclassified cost/income ratio (A/B) | 58,2% | 56,0%

Payout ratio (in thousands of Euro) | YEAR
2024 | 2023
A. Profit (loss) for the year attributable to the Parent company | 161.578 | 160.110
B. Parent Company dividends (1) | 111.450 | 110.240
Payout Ratio (B/A) (1) | 69,0% | 68,9%

(1) The figures for FY 2024 comprise the total of 1,20 Euro per share distributed as an interim dividend in November 2024 and 0,92 Euro per share as a proposal for a final dividend for the FY 2024 prepared by the Board of Directors of Banca Ifis.
The Parent Company's dividends are calculated as follows:

Parent Company dividends | YEAR
2024 | 2023
A. Unitary dividend Euro (1) | 2,12 | 2,10
B. Number of shares outstanding (in thousands) (2) | 52.571 | 52.495
Parent Company dividends (A x B) (1) | 111.450 | 110.240

(1) The figures for FY 2024 comprise the total of 1,20 Euro per share distributed as an interim dividend in November 2024 and 0,92 Euro per share as a proposal for a final dividend for the FY 2024 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 2024 figure takes the value as of 31 December 2024 as the number of shares outstanding on the ex-dividend date.
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Contribution of operating Segments to Group results
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, that represents the Group's commercial offer dedicated to businesses 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;
•Npl Segment, dedicated to non-recourse factoring and managing distressed loans, servicing and managing non-performing, secured loans. This Segment includes the income contribution from the former Revalea S.p.A., a company acquired in the fourth quarter of 2023 and thereafter merged by incorporation into Ifis Npl Investing S.p.A. in 2024 (for further details, refer to "Part G - Business combinations” of the Notes to the Consolidated Financial Statements);
•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 growth.
The Segments of the financial numerical 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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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
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: Business area that aggregates multiple 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 2024.

RECLASSIFIED INCOME STATEMENT DATA (in thousands of Euro) | YEAR | CHANGE
2024 | 2023 | ABSOLUTE | %
Net interest income | 238.795 | 232.171 | 6.624 | 2,9%
Net commission income | 96.175 | 96.798 | (623) | (0,6)%
Other components of net banking income | 16.454 | 15.670 | 784 | 5,0%
Net banking income | 351.424 | 344.639 | 6.785 | 2,0%
Net credit risk losses/reversals | (40.413) | (60.716) | 20.303 | (33,4)%
Net profit (loss) from financial activities | 311.011 | 283.923 | 27.088 | 9,5%
Operating costs | (164.065) | (163.890) | (175) | 0,1%
Net allocations to provisions for risks and charges | (3.194) | (4.501) | 1.307 | (29,0)%
Pre-tax profit (loss) for the period from continuing operations | 143.752 | 115.532 | 28.220 | 24,4%
Income taxes for the year relating to current operations | (48.144) | (36.787) | (11.357) | 30,9%
Profit (loss) for the year | 95.608 | 78.745 | 16.863 | 21,4%

Net income of the Commercial & Corporate Banking Segment comes to 95,6 million Euro, up 16,9 million Euro compared to 31 December 2023, mainly due to the increase in net banking income and the reduction of net value adjustments for 20,3 million Euro (-33,4%), as detailed below based on the contribution of the individual Business Areas.
The Segment's net banking income comes to 351,4 million Euro, up 6,8 million Euro compared to the previous year, thanks to the positive performance of the Factoring Area (+5,2 million Euro) and the Corporate Banking & Lending Area (+2,3 million Euro). On the whole, with respect to the substantial stability of net commission income, net interest income rose by 6,6 million Euro (+2,9%) and in other components of net banking income by 0,8 million Euro (+5,0%).
Operating costs amount to 164,1 million Euro as at 31 December 2024 and were essentially stable compared to the previous year.
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Net allocations to provisions for risks and charges amount to 3,2 million Euro as at 31 December 2024, a decrease compared to 4,5 million Euro at the end of 2023. The decrease of 1,3 million Euro is mainly attributable to releases for the successful settlement of existing disputes, the effect of which more than offset provisions made during the year to cover risks related to outstanding disputes over tax credits for Super Ecobonus 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 31.12.2024 |  |  |  |  |  |
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%
POSITION AT 31.12.2023 |  |  |  |  |  |
Nominal amount | 98.969 | 170.367 | 105.968 | 375.304 | 6.657.667 | 7.032.971
Losses | (79.915) | (76.670) | (5.849) | (162.434) | (107.070) | (269.504)
Carrying amount | 19.054 | 93.698 | 100.118 | 212.870 | 6.550.597 | 6.763.467
Coverage ratio | 80,7% | 45,0% | 5,5% | 43,3% | 1,6% | 3,8%
Gross ratio | 1,4% | 2,4% | 1,5% | 5,3% | 94,7% | 100,0%
Net ratio | 0,3% | 1,4% | 1,5% | 3,1% | 96,9% | 100,0%

Net non-performing exposures in the Commercial & Corporate Banking Segment stand at 193,8 million Euro at 31 December 2024, down 19,1 million Euro on 31 December 2023 (212,9 million Euro). The trend is attributable to a significant decrease in non-performing past due exposures amounting to 47,8 million Euro (especially those in the Factoring Area), partially offset by increases in probable defaults and non-performing loans of 16,9 million Euro and 11,9 million Euro, respectively (especially in the Corporate Banking & Lending Area).
The coverage ratio of the impaired portfolio goes from 43,3% at 31 December 2023 to 49,6% at 31 December 2024, as a result of the increase in the incidence of unlikely to pay and non-performing loans on the Segment's total impaired portfolio.
The Commercial & Corporate Banking Segment includes loans that are mainly impaired (classified in the accounts as “POCI”), mainly referring to assets stemming from business combinations: the net value of these assets is 8,7 million Euro at 31 December 2024, as compared with the 12,3 million Euro recorded at 31 December 2023, of which 5,7 million Euro non-performing (8,5 million Euro at 31 December 2023).
These amounts already incorporate the effects connected with the temporal reversal of the effects seen during the PPA and the effects of expected losses over the useful life of the asset, as required by IFRS 9.
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report

KPIs | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | ABSOLUTE | %
Credit cost (1) | 0,61% | 0,95% | n.a. | (0,34)%
Net impaired assets/Net receivables due from customers | 2,8% | 3,1% | n.a. | (0,3)%
Gross impaired assets/Gross receivables due from customers | 5,3% | 5,3% | n.a. | 0,0%
RWA (2) | 5.769.725 | 5.813.454 | (43.729) | (0,8)%

(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.
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
2024 | 2023 | ABSOLUTE | %
Net interest income | 114.552 | 107.050 | 7.502 | 7,0%
Net commission income | 63.979 | 67.360 | (3.381) | (5,0)%
Other components of net banking income | 11 | (1.096) | 1.107 | n.a.
Net banking income | 178.542 | 173.314 | 5.228 | 3,0%
Net credit risk losses/reversals | (6.763) | (28.886) | 22.123 | (76,6)%
Net profit (loss) from financial activities | 171.779 | 144.428 | 27.351 | 18,9%
Operating costs | (89.547) | (93.234) | 3.687 | (4,0)%
Net allocations to provisions for risks and charges | (8.905) | (2.751) | (6.154) | 223,7%
Pre-tax profit (loss) for the period from continuing operations | 73.327 | 48.443 | 24.884 | 51,4%
Income taxes for the year relating to current operations | (24.558) | (15.292) | (9.266) | 60,6%
Profit (loss) for the year | 48.769 | 33.151 | 15.618 | 47,1%

At 31 December 2024, the contribution made by the Factoring Area towards net banking income booked by the Commercial & Corporate Banking Segment comes to 178,5 million Euro, up 3,0% on last year’s results. This result is due to the greater contribution of net interest income (up by 7,5 million Euro), while net commission income declines by 3,4 million Euro. Turnover for FY 2024 amounts to 12,3 billion Euro and the total amount of receivables to 3,5 billion Euro, and were down by 1,1 billion Euro and 0,3 billion Euro, respectively, compared to the corresponding figures of the previous year.
At 31 December 2024 net credit risk losses are recorded for the amount of 6,8 million Euro. This amount was influenced, among others, by the full use of prudential adjustments (management overlay) booked during previous year resulting from "expert-based" assessments following the actual classification among impaired exposures of specifically identified positions. In addition, management overlays set aside during previous years to hedge multiple risk factors (particularly related to inflationary, geopolitical and energy supply risks) and to hedge against adverse macroeconomic expectations, were utilised against the deteriorating dynamics of the underlying portfolio clusters.
Therefore, net profit from financial activities amounts to 171,8 million Euro (+18,9% on 31 December 2023).
The decrease in operating costs of 3,7 million Euro compared to 31 December 2023 is mainly due to higher income for recovery of expenses from the public administration in the amount of 4,1 million Euro. These benefits were
42
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
partly offset by the higher personnel costs linked to the renewed Italian National Collective Bargaining Agreement (NCBA), as well as to the growth of costs related to the amortisation of intangible assets relating to investments in software functional to the digitalisation of customer relations and the related credit generation and management process.
Net allocations to provisions for risks and charges amount to 8,9 million Euro at 31 December 2024, an increase on the 2,8 million Euro at 31 December 2023. The increase of 6,2 million Euro is mainly attributable to the previously-mentioned provisions to cover risks related to outstanding disputes over tax credits for Super Ecobonus and other building tax bonuses.
As regards the main equity aspects, at 31 December 2024, total net commitments for the Area amount to 2.900,1 million Euro, up 1,9% on the figure at 31 December 2023, mainly due to the increase of performing exposures (+106,2 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 31.12.2024 |  |  |  |  |  |
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%
POSITION AT 31.12.2023 |  |  |  |  |  |
Nominal amount | 72.273 | 66.458 | 88.817 | 227.548 | 2.752.772 | 2.980.320
Losses | (61.890) | (34.170) | (2.503) | (98.563) | (36.953) | (135.516)
Carrying amount | 10.383 | 32.288 | 86.314 | 128.985 | 2.715.819 | 2.844.804
Coverage ratio | 85,6% | 51,4% | 2,8% | 43,3% | 1,3% | 4,5%

The Area's total net non-performing exposures amount to 78,0 million Euro, down 39,5% from the 31 December 2023 figure, almost entirely due to the decline in past-due exposures. In overall terms, despite the decrease in net impaired exposures, the coverage of impaired exposures increases from 43,3% to 56,5%, due to the increase in the proportion of non-performing loans and unlikely to pay to total non-performing ans.

KPIs | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | ABSOLUTE | %
Credit cost (1) | 0,26% | 1,13% | n.a. | (0,87)%
Net impaired assets/Net receivables due from customers | 2,7% | 4,5% | n.a. | (1,8)%
Gross impaired assets/Gross receivables due from customers | 5,9% | 7,6% | n.a. | (1,7)%
RWA (2) | 2.729.714 | 2.737.066 | (7.352) | (0,3)%

(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.
43
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
The credit cost decreases from 1,13% at 31 December 2023 to 0,26% at 31 December 2024 as a result of the aforementioned dynamics in 2024.
It should be noted that net non-performing exposures include a total of 29,2 million Euro in respect of the NHS, a significant reduction compared to the figure of 72,2 million Euro at 31 December 2023 due to the return to performing status during the third quarter of 2024 of a singularly significant position previously classified as non-performing past due.
Leasing Area

RECLASSIFIED INCOME STATEMENT DATA (in thousands of Euro) | YEAR | CHANGE
2024 | 2023 | ABSOLUTE | %
Net interest income | 50.530 | 50.985 | (455) | (0,9)%
Net commission income | 10.786 | 11.072 | (286) | (2,6)%
Net banking income | 61.316 | 62.057 | (741) | (1,2)%
Net credit risk losses/reversals | (4.508) | (4.329) | (179) | 4,1%
Net profit (loss) from financial activities | 56.808 | 57.728 | (920) | (1,6)%
Operating costs | (34.000) | (33.039) | (961) | 2,9%
Net allocations to provisions for risks and charges | (344) | (919) | 575 | (62,6)%
Pre-tax profit (loss) for the period from continuing operations | 22.464 | 23.770 | (1.306) | (5,5)%
Income taxes for the year relating to current operations | (7.524) | (7.569) | 45 | (0,6)%
Profit (loss) for the year | 14.940 | 16.201 | (1.261) | (7,8)%

Net banking income from the Leasing Area amounts to 61,3 million Euro, essentially in line with the figure at 31 December 2023 (-1,2%).
Net credit risk losses on receivables amount to 4,5 million Euro, essentially in line with the figure at 31 December 2023.
Operating costs total 34,0 million Euro, showing an increase of 1,0 million Euro compared with 31 December 2023. The increase was due to the combined effect of higher personnel expenses related to the renewed Italian National Collective Bargaining Agreement (NCBA) and the amortisation of new software to support the business, which was only partially offset by the reduction in other administrative expenses.
As at 31 December 2024, the Area's total net loans amount to 1.613,0 million Euro, an increase of 60,8 million Euro (+3,9%) compared to the figure as at 31 December 2023, mainly due to the increase in performing exposures (+58,2 million Euro).
44
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
The following table shows the gross and net amounts as well as the relevant coverage ratios of receivables due from customers by credit quality.

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 31.12.2024 |  |  |  |  |  |
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%
POSITION AT 31.12.2023 |  |  |  |  |  |
Nominal amount | 10.597 | 12.865 | 7.314 | 30.776 | 1.559.223 | 1.589.999
Losses | (9.910) | (7.894) | (2.244) | (20.048) | (17.748) | (37.796)
Carrying amount | 688 | 4.972 | 5.070 | 10.730 | 1.541.475 | 1.552.205
Coverage ratio | 93,5% | 61,4% | 30,7% | 65,1% | 1,1% | 2,4%

Net impaired exposures increase by 24,1% compared to December 2023. The coverage ratio of impaired assets decreases from 65,1% to 63,2%, due to the higher incidence within the Area's impaired portfolio of positions classified as past due and unlikely to pay, while that of performing exposures reduces from 1,1% to 0,8%.

KPIs | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | ABSOLUTE | %
Credit cost (1) | 0,29% | 0,29% | n.a. | 0,0%
Net impaired assets/ Net receivables due from customers | 0,8% | 0,7% | n.a. | 0,1%
Gross impaired assets/Gross receivables due from customers | 2,2% | 1,9% | n.a. | 0,3%
RWA (2) | 1.200.451 | 1.344.965 | (144.514) | (10,7)%

(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.
45
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Corporate Banking & Lending Area

RECLASSIFIED INCOME STATEMENT DATA (in thousands of Euro) | YEAR | CHANGE
2024 | 2023 | ABSOLUTE | %
Net interest income | 73.713 | 74.136 | (423) | (0,6)%
Net commission income | 21.410 | 18.366 | 3.044 | 16,6%
Other components of net banking income | 16.443 | 16.766 | (323) | (1,9)%
Net banking income | 111.566 | 109.268 | 2.298 | 2,1%
Net credit risk losses/reversals | (29.142) | (27.501) | (1.641) | 6,0%
Net profit (loss) from financial activities | 82.424 | 81.767 | 657 | 0,8%
Operating costs | (40.518) | (37.617) | (2.901) | 7,7%
Net allocations to provisions for risks and charges | 6.055 | (831) | 6.886 | n.a.
Pre-tax profit (loss) for the period from continuing operations | 47.961 | 43.319 | 4.642 | 10,7%
Income taxes for the year relating to current operations | (16.062) | (13.926) | (2.136) | 15,3%
Profit (loss) for the year | 31.899 | 29.393 | 2.506 | 8,5%

Net banking income of the Corporate Banking & Lending Area comes to 111,6 million Euro at 31 December 2024, up 2,3 million Euro on 31 December 2023 (+2,1%). The positive change is a result of the combined effect of the following factors:
•essential stability in net interest income of 73,7 million Euro, due to the higher positive contribution of the Corporate Banking segment of 4,6 million Euro, which almost entirely offset the lower contribution of the Pharmacies business unit of 4,9 million Euro;
•higher net commission income of 3,0 million Euro (+16,6%), mainly from the Corporate Banking segment;
•substantial stability in the contribution of the other components of net banking income, amounting to 16,4 million Euro as at 31 December 2024, mainly represented by the fair value measurement of securities in the Corporate Banking segment.
Net credit risk losses amount to 29,1 million Euro, up 1,6 million Euro compared to 31 December 2023. This increase was due to higher provisions set aside in 2024 for the deterioration of credit quality on certain positions in the Lending unit.
The increase in operating costs of 2,9 million Euro compared to 31 December 2023 is due to the combined effect of higher personnel expenses related to the renewed National Collective Bargaining Agreement as well as higher ICT and interbank network expenses to support customer operations.
The net releases for provisions for risks and charges for the year, amounting to 6,0 million Euro, refer to the settlement of disputes arising from the acquisition of the former Aigis Banca business unit.
At 31 December 2024, the Area's total net receivables due from customers amounts to 2.472,6 million Euro, up 106,1 million Euro on 31 December 2023.
46
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
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 31.12.2024 |  |  |  |  |  |
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%
POSITION AT 31.12.2023 |  |  |  |  |  |
Nominal amount | 16.098 | 91.045 | 9.836 | 116.979 | 2.345.672 | 2.462.651
Losses | (8.115) | (34.606) | (1.102) | (43.823) | (52.369) | (96.192)
Carrying amount | 7.983 | 56.439 | 8.734 | 73.156 | 2.293.304 | 2.366.460
Coverage ratio | 50,4% | 38,0% | 11,2% | 37,5% | 2,2% | 3,9%

The amount of net non-performing exposures at 31 December 2024, 102,5 million Euro, shows an increase of 29,3 million Euro on the value at year-end 2023. The increase is mainly due to the increase in impaired assets in the Lending unit with the transfer of backed positions to impaired. The coverage of non-performing loans increased from 37,5% in December 2023 to 39,3% in December 2024 due to the higher incidence within the Area's impaired portfolio of positions classified as non-performing and likely to default.

KPIs | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | ABSOLUTE | %
Credit cost (1) | 1,20% | 1,18% | n.a. | 0,02%
Net impaired assets/ Net receivables due from customers | 4,1% | 3,1% | n.a. | 1,0%
Gross impaired assets/Gross receivables due from customers | 6,6% | 4,8% | n.a. | 1,8%
RWA (2) | 1.839.560 | 1.731.423 | 108.137 | 6,2%

(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.
47
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Npl Segment
This is the Banca Ifis Group’s Segment dedicated to non-recourse acquisition and managing secured and unsecured distressed retail loans, 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, also taking into account the contribution made by the former Revalea, interest income is included from the amortised cost for 185,1 million Euro and other components of the net interest income from cash flow changes for 130,5 million Euro, as reported in the summary table of “Economic data” below in this paragraph.

PROPRIETARY PORTFOLIO OF THE NPL SEGMENT (in thousands of Euro) | OUTSTANDING NOMINAL AMOUNT | CARRYING AMOUNTS | CARRYING AMNT / RES. NOM. AMNT | INTEREST ON INCOME STATEMENT | ERC | PREVAILING ACCOUNTING CRITERION
Portfolio acquired by Revalea | 5.999.616 | 188.501 | 3,1% | 35.284 | 482.803 |
Cost | 428.353 | 18.313 | 4,3% | - | - | Acquisition cost
Non-judicial | 8.514.870 | 411.748 | 4,8% | 89.130 | 690.552 |
of which: Collective (curves) | 8.004.634 | 165.465 | 2,1% | (14.038) | 273.651 | Cost = NPV of flows from model
of which: Plans | 510.236 | 246.283 | 48,3% | 103.168 | 416.901 | Cost = NPV of flows from model
Judicial | 6.663.090 | 888.859 | 13,3% | 191.206 | 1.692.339 |
of which: Other positions undergoing judicial processing | 1.700.609 | 123.536 | 7,3% | (19.726) | 225.467 | Acquisition cost
of which: Writs, Property Attachments, Garnishment Orders | 2.163.668 | 641.313 | 29,6% | 184.591 | 1.320.016 | Cost = NPV of flows from model
of which: Secured and Corporate | 2.798.813 | 124.010 | 4,4% | 26.341 | 146.856 | Cost = NPV of flows from model
Total | 21.605.929 | 1.507.421 | 7,0% | 315.620 | 2.865.694 |

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 (18,3 million Euro at 31 December 2024, compared to 14,1 million Euro at 31 December 2023), 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 2024 come to 165,5 million Euro as compared with 216,7 million Euro at 31 December 2023 (down 23,7%). Practices on which a realignment plan has been agreed and formalised come in at 246,3 million Euro at 31 December 2024 (273,2 million Euro at 31 December 2023);
•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 123,5 million Euro at 31 December 2024 (175,1 million Euro at 31 December 2023); practices in phases of writ, attachment order and garnishment order are allocated to a specific basin, which records an increase of 6%, coming in at 641,3 million Euro as compared with the 605,2 million Euro recorded in December 2023.
48
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
The judicial management basin include all “Secured and Corporate” positions of corporate banking origin or real estate, equal to 124 million Euro at 31 December 2024, down on the figure at 31 December 2023 (138,0 million Euro).
Finally, the Group seizes market opportunities in accordance with its business model by selling portfolios of positions for which no significant collections are expected.

RECLASSIFIED INCOME STATEMENT DATA (in thousands of Euro) | YEAR | CHANGE
2024 | 2023 | ABSOLUTE | %
Net interest income | 280.300 | 281.381 | (1.081) | (0,4)%
Net commission income | (1.041) | 3.483 | (4.524) | n.a.
Other components of net banking income | 16.957 | 9.669 | 7.288 | 75,4%
- of which: Gains (losses) on the disposal of financial assets | 16.068 | 10.384 | 5.684 | 54,7%
Net banking income | 296.216 | 294.533 | 1.683 | 0,6%
Net credit risk losses/reversals | 52 | (103) | 155 | n.a.
Net profit (loss) from financial activities | 296.268 | 294.430 | 1.838 | 0,6%
Operating costs | (199.185) | (191.931) | (7.254) | 3,8%
Net allocations to provisions for risks and charges | 2.227 | 147 | 2.080 | n.s.
Non-recurring expenses and income | (610) | (2.919) | 2.309 | (79,1)%
Pre-tax profit (loss) for the period from continuing operations | 98.700 | 99.727 | (1.027) | (1,0)%
Income taxes for the year relating to current operations | (33.056) | (31.588) | (1.468) | 4,6%
Profit (loss) for the year | 65.644 | 68.139 | (2.495) | (3,7)%

Net interest income, which amounts to 280,3 million Euro (essentially in line with the previous year’s figure), consists of:
•interest income from amortised cost, i.e. the interest accruing at the original effective rate, which increases from 170,4 million Euro at 31 December 2023 to 185,1 million Euro at 31 December 2024, due to an increase 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 6,8 million Euro at 31 December 2024, a rise on the 5,0 million Euro recorded in 2023;
•other components of net interest income from change in cash flow, which change from 131,1 million Euro of 31 December 2023 to 130,5 million Euro at 31 December 2024, and reflect the change in expected cash flows according to the collections made in respect of forecasts. This item is impacted on the one hand by the out-of-court management of 26,9 million Euro (49,9 million Euro at 31 December 2023), to which the repayment plans contribute 67,6 million Euro (down from the figure of 77,7 million Euro in 2023), partially offset by the negative effect of curve models of 40,7 million Euro (27,8 million Euro in the previous year). On the other hand, are legal expenses of 83,3 million Euro (81 million Euro at 31 December 2023), following actions for injunction, attachment and garnishment orders;
•interest expense of 42,1 million Euro, up 10,1 million Euro on the previous year’s balance.
Net commissions represent a cost of 1,0 million Euro at 31 December 2024, compared to revenues of 3,5 million Euro at 31 December 2023. This change is mainly attributable to commission expenses for the management of the former Revalea portfolio (portfolio now incorporated into Ifis Npl Investing following the merger of Revalea into Ifis Npl Investing) paid to a third-party servicer.
49
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
In 2024, disposals of Npl portfolios were realised, in line with the Group's policy, from which net gains on disposal amount to 16,1 million Euro, up 5,7 million Euro compared with 31 December 2023.
In view of the above, the Npl Segment's net banking income comes to a total of 296,2 million Euro, up 1,7 million Euro compared with 31 December 2023.
The Npl Segment's credit cost does not change significantly between 31 December 2024 and the previous year. The net releases for FY 2024 mainly relate to the change in the provision for impairment losses on securitisation securities with underlying non-performing loans.
Operating costs of 199,2 million Euro at 31 December 2024 are up 7,3 million Euro compared to 31 December 2023. This increase is due to the combined effect of higher personnel expenses related to both the renewed National Collective Bargaining Agreement and the increase in the workforce in the amount of 3,4 million Euro, as well as higher debt collection costs associated with Revalea (now merged into Ifis Npl Investing).
The item "Non-recurring expenses and income" shows a net negative balance as at 31 December 2024 of 610 thousand Euro and refers to non-recurring operating costs pertaining to FY 2024 connected to the acquisition of Revalea and its integration within the Banca Ifis Group, including those relating to its merger by incorporation into Ifis Npl Investing which took place in 2024 (for more details see "Part G - Business combinations" of the Notes to the Consolidated Financial Statements). The figure is significantly lower than the balance as of 31 December 2023, which amounted to 2,9 million Euro and included non-recurring operating costs directly or indirectly related to the acquisition of Revalea in the fourth quarter of 2023 totalling 11,5 million Euro, only partially offset by the "gain on bargain purchase" calculated in accordance with IFRS 3, amounting to 8,5 million Euro.
As a consequence of the foregoing, period profit of the Npl Segment is 65,6 million Euro, down 2,5 million Euro on 31 December 2023.
Below is the breakdown of net loans by credit quality.

STATEMENT OF FINANCIAL POSITION DATA (in thousands of Euro) | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | ABSOLUTE | %
Net bad loans | 1.184.378 | 1.276.812 | (92.434) | (7,2)%
Net unlikely to pay | 308.540 | 335.773 | (27.233) | (8,1)%
Net non-performing past due exposures | 3.837 | 4.029 | (192) | (4,8)%
Total net non-performing exposures to customers (stage 3) | 1.496.755 | 1.616.614 | (119.859) | (7,4)%
Total net performing exposures (stages 1 and 2) | 24.246 | 29.544 | (5.298) | (17,9)%
- of which: proprietary loans acquired | 10.666 | 12.601 | (1.935) | (15,4)%
- of which: loans disbursed | 533 | 13.929 | (13.396) | (96,2)%
- of which: debt securities | 11.602 | 1.848 | 9.754 | 527,8%
- of which: receivables related to servicer activities | 1.445 | 1.166 | 279 | 23,9%
Total on-balance-sheet receivables due from customers | 1.521.001 | 1.646.158 | (125.157) | (7,6)%
- of which: owned receivables acquired measured at amortised cost | 1.507.421 | 1.629.215 | (121.794) | (7,5)%

As regards the Npl Segment loans, 1.507,4 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.
50
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

KPIs | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | ABSOLUTE | %
Nominal amount of receivables managed | 21.605.929 | 26.147.455 | (4.541.526) | (17,4)%
RWA (1) | 1.733.692 | 1.898.366 | (164.674) | (8,7)%

(1) Risk Weighted Assets; the amount only relates to the credit risk.
Total Estimated Remaining Collections (ERC), including the portfolio acquired from Revalea, amount to 2,9 billion Euro.

NPL SEGMENT NON-PERFORMING LOAN PORTFOLIO PERFORMANCE | 31.12.2024 | 31.12.2023
Opening loan portfolio | 1.629.215 | 1.505.026
Purchases (+) | 18.032 | 230.589
-of which from business combination | - | 210.762
Sales (-) | (49.588) | (21.244)
Gains (losses) on disposals (+/-) | 16.068 | 10.377
Interest income from amortised cost (+) | 185.126 | 170.423
Other components of interest from change in cash flow (+) | 130.487 | 131.081
Collections (-) | (421.919) | (397.037)
Closing loan portfolio | 1.507.421 | 1.629.215

Total purchases for FY 2024 amount to 18,0 million Euro, down significantly from 230,6 million Euro as at 31 December 2023, reflecting the early purchase of new Npl portfolios at the end of 2023 through the business combination of Revalea with its 210,8 million Euro loan portfolio. During the financial year, sales of Npls were completed for a total price of 49,6 million Euro, which generated profits of 16,1 million Euro.
The item "Collections", equal to 421,9 million Euro at 31 December 2024, includes the instalments collected during the year from repayment plans, from garnishment orders and transactions carried out rises by 6,3% on the collections of 397,0 million Euro made in 2023.
At 31 December 2024, the portfolio managed by the Npl Segment includes 2.055.540 positions, for a nominal amount of 21,6 billion Euro.
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
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). The Segment also includes run-off portfolios originated from the former Interbanca as well as other residual personal loan portfolios.

RECLASSIFIED INCOME STATEMENT DATA (in thousands of Euro) | YEAR | CHANGE
2024 | 2023 | ABSOLUTE | %
Net interest income | 13.410 | 52.645 | (39.235) | (74,5)%
Net commission income | (3.359) | (2.060) | (1.299) | 63,1%
Other components of net banking income | 41.461 | 14.859 | 26.602 | 179,0%
Net banking income | 51.512 | 65.444 | (13.932) | (21,3)%
Net credit risk losses/reversals | 2.691 | 8.412 | (5.721) | (68,0)%
Net profit (loss) from financial activities | 54.203 | 73.856 | (19.653) | (26,6)%
Operating costs | (43.666) | (38.827) | (4.839) | 12,5%
Charges related to the banking system | (8.136) | (11.193) | 3.057 | (27,3)%
Net allocations to provisions for risks and charges | 489 | (2.524) | 3.013 | n.a.
Gains (losses) on disposal of investments | - | 986 | (986) | (100,0)%
Pre-tax profit (loss) for the period from continuing operations | 2.890 | 22.298 | (19.408) | (87,0)%
Income taxes for the year relating to current operations | (968) | (7.266) | 6.298 | (86,7)%
Profit (loss) for the year | 1.922 | 15.032 | (13.110) | (87,2)%
(Profit) loss for the year attributable to non-controlling interests | (1.596) | (1.806) | 210 | (11,6)%
Profit (loss) for the year attributable to the Parent Company | 326 | 13.226 | (12.900) | (97,5)%

The Segment's net banking income amounts to 51,5 million Euro, down 13,9 million Euro compared to 31 December 2023 and is determined in particular by the following dynamics:
•net interest income, decreasing by 39,2 million Euro at 31 December 2023. The negative change is due for 11,4 million Euro to lesser interest income in the run-off portfolio of the Non-Core business, while the residual change of 27,8 million Euro is mainly due to the cost of funding;
•other components of net banking income have increased by 26,6 million Euro, of which 6,8 million Euro is due to the improvement of the fair value of the Non-Core business (of which 6,2 million Euro relating to the sale of a PFI - Participating Financial Instrument) and 20,1 million Euro to the disposal of bonds.
In terms of funding, “Rendimax Deposit Account” continues to constitute the Group’s main source of finance, with a comprehensive cost of 133,4 million Euro, higher than last year (54,1 million Euro) due to the increase in average rates that go from 1,98% in 2023 to 3,04% in 2024 following the successful retail funding campaigns run late 2023 and early 2024. Average assets under management also increase, amounting to 4.394 million Euro at 31 December 2024 compared to 4.003 million Euro at end FY 2023.
At 31 December 2024, the carrying amount of the bonds issued by Banca Ifis is 1.507,3 million Euro, up by 71,5 million Euro compared with 31 December 2023. During the year, a new issue was completed, which comes under the scope of the Group’s EMTN issuance programme, worth a nominal amount of 400 million Euro to replace the bond with the same nominal amount that matured in June 2024 (for more details on the February 2024 issue,
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
please refer to the section "Significant events occurred in the year"). In economic terms, interest expense accrued on all issues rose by 29,1 million Euro compared with FY 2023, coming in at a total of 95,7 million Euro at 31 December 2024.
Funding through securitisation, amounting to 1.645,4 million Euro at 31 December 2024, is down by 207,7 million Euro compared with the figure at 31 December 2023 and consists of:
•securities issued by the SPV ABCP Programme for 976,6 million Euro relating to the senior tranche. It should be noted that at the end of June 2024, the restructuring of this securitisation, involving proprietary factoring receivables, was completed (for more details, please refer to the section "Significant events occurred in the year" below);
•securities issued by the SPV Indigo Lease for 400,2 million Euro relating to the senior tranche;
•securities issued by the SPV Emma for 268,6 million Euro relating to the senior tranche.
Accrued interest expense goes from 68,2 million Euro at 31 December 2023 to 77,5 million Euro at 31 December 2024 due to the effect of the change in the market curves to which they are indexed and to the placement, which took place in July 2023, of the Indigo Lease securitisation notes carried out with the restructuring of the transaction (the impact of which on the data compared at 31 December 2023, was therefore limited to the second half of the year).
With reference to TLTRO operations, it should be noted that in 2024 the related funding was fully repaid. Compared to the previous year, the following repayments were recorded:
•nominal 750 million Euro in March 2024;
•nominal 375 million Euro in June 2024;
•nominal 411,5 million Euro on 25 September 2024.
Also worth mentioning is the access to funding through an MRO refinancing transaction in the amount of 400 million Euro, carried out in December 2024 and maturing on 8 January 2025.
As a result of the dynamics depicted above (and in particular the aforementioned repayment of the TLTRO lines), the average funding cost as at 31 December 2024 stands at 3,87%, up from the figure of 3,08% for the average of FY 2023.
With regard to the credit cost, the figure for 31 December 2024 shows net write-backs of 2,7 million Euro, a downturn of 5,7 million Euro compared to 31 December 2023, consistent with the run-off of the underlying portfolio.
Operating costs come to 43,7 million Euro, up 4,8 million Euro on 31 December 2023, related to higher consultancy expenses and higher ICT costs to strengthen the Climate & ESG control. As these costs are not related to specific immediate business topics, they were allocated to the Governance & Services and Non-Core Segment.
The item “Charges related to the banking system” includes the costs incurred during the year for the operation of the banking system's guarantee funds. At 31 December 2024, the item amounts to 8,1 million Euro and refers to the cost of the annual contribution to the Interbank Deposit Protection Fund (FITD), of which 7,9 million Euro relates to the Parent Company Banca Ifis and the remainder to the subsidiary Banca Credifarma. The comparative balance as at 31 December 2023 of 11,2 million Euro also included the contribution of 4,1 million Euro to the Single Resolution Fund, which reached its accumulation plan target in 2023.
With reference to the provisions for risks and charges, there are net releases of 0,5 million Euro, an improvement of 3,0 million Euro compared to the net allocations of 2,5 million Euro as of 31 December 2023, due to the Group’s positive resolution of an outstanding dispute. The releases recognised were only partially offset by provisions for the year made mainly for contractual guarantees given on transferred positions.
The item "Gains (losses) on disposal of investments” has a null balance, a reduction compared with 31 December 2023 when it came to 986 thousand Euro, insofar as it included the effect of the sale of a property held by the subsidiary Banca Credifarma.
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
As a result of the above trends, the profit for the year of the Governance & Services and Non-Core Segment amounts to 1,9 million Euro, down from 15,0 million Euro (-13,1 million Euro) at 31 December 2023. Excluding the profit attributable to minority interests, the Segment's contribution to the profit attributable to the Parent Company amounts to 0,3 million Euro.
As regards equity figures, at 31 December 2024, total net receivables for the Segment amount to 2.303,4 million Euro, up 90,8 million Euro on the figure at 31 December 2023 (2.212,5 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 non-performing exposures resulting from the business combinations performed by the Banca Ifis Group during previous financial years:
•net non-performing loans: 5,6 million Euro at 31 December 2024, down 2,3 million Euro on the figure recorded at 31 December 2023;
•net performing exposures: 11,2 million Euro at 31 December 2024, down 5,7 million Euro on the figure recorded at 31 December 2023.
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 31.12.2024 |  |  |  |  |  |
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%
POSITION AT 31.12.2023 |  |  |  |  |  |
Nominal amount | 12.256 | 22.793 | 8.625 | 43.674 | 2.191.536 | 2.235.210
Losses | (6.595) | (8.241) | (3.240) | (18.076) | (4.626) | (22.702)
Carrying amount | 5.661 | 14.552 | 5.385 | 25.598 | 2.186.910 | 2.212.508
Coverage ratio | 53,8% | 36,2% | 37,6% | 41,4% | 0,2% | 1,0%

(1) In the Governance & Services and Non-Core Segment, at 31 December 2024, there are government securities amounting to 1.579,0 million Euro (1.628,7 million Euro at 31 December 2023).
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. The coverage of the portfolio as a whole at 31 December 2024 is essentially in line with the figure at 31 December 2023 and is mainly related to the Non-Core unit portfolio, which records lower coverage due to the presence of POCI receivables.
Net non-performing loans in the Governance & Services Segment and Non-Core increased by 13,3% compared to the December 2023 figure, mainly due to an increase in unlikely to pay positions. Performing loans were substantially in line with the balance of the previous year despite the disposals of debt securities made during 2024, mainly relating to government bonds (these securities rose from 1.628,7 million Euro as at 31 December 2023 to 1.579,0 million Euro at year-end 2024).
The coverage of non-performing loans, influenced by the aforementioned POCI loans, is 37,1% at 31 December 2024 (41,4% at 31 December 2023).
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Group reclassified financial and income results
Reclassified Statement of financial positions items

RECLASSIFIED STATEMENT OF FINANCIAL POSITION HIGHLIGHTS(in thousands of Euro) | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | ABSOLUTE | %
Cash and cash equivalents | 505.016 | 857.533 | (352.517) | (41,1)%
Financial assets mandatorily measured at fair value through profit or loss | 237.032 | 221.982 | 15.050 | 6,8%
Financial assets measured at fair value through other comprehensive income | 701.830 | 749.176 | (47.346) | (6,3)%
Receivables due from banks measured at amortised cost | 703.763 | 637.567 | 66.196 | 10,4%
Receivables due from customers measured at amortised cost | 10.810.018 | 10.622.134 | 187.884 | 1,8%
Property, plant and equipment and intangible assets | 252.153 | 219.922 | 32.231 | 14,7%
Tax assets | 213.464 | 285.435 | (71.971) | (25,2)%
Other assets | 402.462 | 457.612 | (55.150) | (12,1)%
Total assets | 13.825.738 | 14.051.361 | (225.623) | (1,6)%
Payables due to banks measured at amortised cost | 1.443.250 | 2.717.139 | (1.273.889) | (46,9)%
Payables due to customers measured at amortised cost | 7.001.763 | 5.814.624 | 1.187.139 | 20,4%
Debt securities issued | 3.152.737 | 3.288.895 | (136.158) | (4,1)%
Tax liabilities | 51.924 | 57.717 | (5.793) | (10,0)%
Provisions for risks and charges | 52.339 | 58.178 | (5.839) | (10,0)%
Other liabilities | 375.579 | 421.109 | (45.530) | (10,8)%
Consolidated equity | 1.748.146 | 1.693.699 | 54.447 | 3,2%
Total liabilities and equity | 13.825.738 | 14.051.361 | (225.623) | (1,6)%

Cash and cash equivalents
Cash and cash equivalents include sight bank accounts and amount to 505,0 million Euro at 31 December 2024. The decrease compared to the figure of 857,5 million Euro at the end of 2023 is mainly related to the decrease in overnight deposits with the Bank of Italy (-295,0 million Euro). The general trend of the item during 2024 is driven by the reshaping of funding in relation to the trend and composition of Group loans.
Financial assets mandatorily measured at fair value through profit or loss
Financial assets mandatorily measured at fair value through profit or loss total 237,0 million Euro at 31 December 2024. This item consists of loans and debt securities that did not pass the SPPI test, equity securities from minority shares and UCITS units.
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Below is the breakdown of this line item.
In detail, the increase of 6,8% compared to 31 December 2023 can be broken down as follows:
•the 17,9 million Euro (-20,6%) decrease in debt securities was the result of the 18,9 million Euro negative net effect of new subscriptions and redemption trend and collections for the year and 1,0 million Euro net positive fair value changes;
•the 17,7 million Euro increase (+34,6%) in equity securities is mainly due to the fair value changes during the year (+10,6 million Euro) and the subscription of new securities (+8,9 million Euro);
•the year increase in the balance of UCITS units (+21,1 million Euro, +27,5%), is recorded following the growth recorded in fair value measurements (+6,6 million Euro) and the positive contribution of net new subscriptions, net of redemptions and collections, of 14,5 million Euro;
•the significant decrease in the carrying amount of loans compared to 31 December 2023 (-83,0%), mainly as a result of the collections upon closure of singularly significant positions for a total of 5,4 million Euro.
Financial assets measured at fair value through other comprehensive income
Financial assets measured at fair value through other comprehensive income amount to 701,8 million Euro at 31 December 2024, down 6,3% from December 2023. They 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 thousands of Euro) | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | ABSOLUTE | %
Debt securities | 544.936 | 634.306 | (89.370) | (14,1)%
of which: government securities | 455.312 | 460.187 | (4.875) | (1,1)%
Equity securities | 156.894 | 114.870 | 42.024 | 36,6%
Total | 701.830 | 749.176 | (47.346) | (6,3)%

Debt securities owned measured at fair value through other comprehensive income decrease by 89,4 million Euro (-14,1%) compared to the balance at 31 December 2023, mainly due to the effect of natural maturities and disposals during the year (-361,9 million Euro, of which -249,2 million Euro related to government bonds, mainly due to the reaching of natural maturities), only partially offset by new subscriptions for the year (+276,4 million Euro, of which +243,6 million Euro related to government bonds) and the increase in fair value measurements (+1,9 million Euro, essentially due to government securities). The related associated net negative fair value reserve amounts to 16,7 million Euro at 31 December 2024, of which 15,9 million Euro associated with Government securities.
This item also includes equity securities attributable to non-controlling interests, which amount to 156,9 million Euro at the end of FY 2024, up 36,6% compared to 31 December 2023, mainly due to investments made in 2024 (+70,5 million Euro), only partly offset by disposals during the year (-25,9 million Euro) and by the decline recorded in fair value amounts in 2024 (-2,5 million Euro). The net fair value reserve associated with this portfolio at 31

FINANCIAL ASSETS MANDATORILY MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS (in thousands of Euro) | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | ABSOLUTE | %
Debt securities | 69.042 | 86.919 | (17.877) | (20,6)%
Equity securities | 68.725 | 51.051 | 17.674 | 34,6%
UCITS units | 98.058 | 76.910 | 21.148 | 27,5%
Loans | 1.207 | 7.102 | (5.895) | (83,0)%
Total | 237.032 | 221.982 | 15.050 | 6,8%

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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
December 2024 shows a negative value of 7,7 million Euro, better than the negative figure posted at the end of 2023, which was 14,4 million Euro.
Receivables due from banks measured at amortised cost
Total receivables due from banks measured at amortised cost amount to 703,8 million Euro at 31 December 2024, up on the figure booked at 31 December 2023 (637,6 million Euro). The change in this item is attributable to the growth in loans to central banks for reserve requirements (+47,7 million Euro), as well as repurchase agreements (repos) with banks, up by 25,2 million Euro.
The item also includes bank issuers’ debt securities to which a "Held to Collect (HTC)" business model is associated and which have passed the SPPI Test: these securities at 31 December 2024 have a carrying amount of 556,1 million Euro, a reduction compared to the figure at December 2023 (-3,6%, equal to -20,8 million Euro), insofar as the effect of new bank bond subscriptions during the year (+268,6 million Euro) was more than offset by that of disposals made in 2024, within the limits envisaged by the Group policy (-289,7 million Euro).
Receivables due from customers measured at amortised cost
Total receivables due from customers measured at amortised cost amount to 10.810,0 million Euro, essentially in line with the 31 December 2023 figure of 10.622,1 million Euro. The item includes debt securities for 1,9 billion Euro (2,0 billion Euro at 31 December 2023, -3,6%), of which government securities for 1,6 billion Euro (-3,1% compared with 31 December 2023). In the absence of the debt securities component, receivables due from customers amount to 8.861,4 million Euro, up 3,0% compared to the December 2023 figure (8.600,2 million Euro).
The main dynamics by segment are shown below:
•The Commercial & Corporate Banking segment stands at 6.985,6 million Euro compared with 6.763,5 million Euro at December 2023 (+3,3%). The trend saw consolidated growth in all three business areas of the Sector, with the largest contribution coming from the Corporate Banking & Lending Area (+106,1 million Euro, +4,5%);
•receivables due from customers in the Npl Segment decrease compared to 31 December 2023 (-7,6%) to 1.521,0 million Euro;
•the contribution of the Governance & Services and Non-Core Segment comes to 2.303,4 million Euro, an increase compared with the end-of-2023 figure of 2.212,5 million Euro (+4,1%).
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report

RECEIVABLES DUE FROM CUSTOMERSBREAKDOWN BY SEGMENT(in thousands of Euro) | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | ABSOLUTE | %
Commercial & Corporate Banking Segment | 6.985.624 | 6.763.468 | 222.156 | 3,3%
- of which non-performing | 193.814 | 212.870 | (19.056) | (9,0)%
Factoring Area | 2.900.077 | 2.844.805 | 55.272 | 1,9%
- of which non-performing | 78.026 | 128.985 | (50.959) | (39,5)%
Leasing Area | 1.612.971 | 1.552.204 | 60.767 | 3,9%
- of which non-performing | 13.311 | 10.729 | 2.582 | 24,1%
Corporate Banking & Lending Area | 2.472.576 | 2.366.459 | 106.117 | 4,5%
- of which non-performing | 102.477 | 73.155 | 29.322 | 40,1%
Npl Segment | 1.521.001 | 1.646.158 | (125.157) | (7,6)%
- of which non-performing | 1.496.755 | 1.616.614 | (119.859) | (7,4)%
Governance & Services and Non-Core Segment(1) | 2.303.393 | 2.212.509 | 90.884 | 4,1%
- of which non-performing | 29.002 | 25.598 | 3.404 | 13,3%
Total receivables due from customers | 10.810.018 | 10.622.134 | 187.884 | 1,8%
- of which non-performing | 1.719.571 | 1.855.082 | (135.511) | (7,3)%

(1) In the Governance & Services and Non-Core Segment, at 31 December 2024, there are government securities amounting to 1.579,0 million Euro (1.628,7 million Euro at 31 December 2023).
Total net non-performing exposures, which are significantly affected by the receivables of the Npl Segment, amount to 1.719,6 million Euro at 31 December 2024, compared to 1.885,1 million Euro at 31 December 2023 (-7,3%).
Net of this item relative to the Npl Segment, net non-performing loans come to 222,8 million Euro, a reduction on the 238,5 million Euro recorded at 31 December 2023, mainly due to the contribution made by the Factoring Area.
The Banca Ifis Group's gross and net Npe ratios for its receivables due from customers are shown below. These ratios, which are calculated excluding Npl Segment loans and Government bonds measured at amortised cost, show an improving trend compared with the equivalent figure of 31 December 2023.

KPIs | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | %
Net Npe ratio | 2,9% | 3,2% | (0,3)%
Gross Npe ratio | 5,4% | 5,5% | (0,1)%

For a detailed analysis of receivables due from customers, please see the section "Contribution of operating segments to Group results” of this Directors' report on the Group.
Intangible assets and property, plant and equipment
Intangible assets come to 85,5 million Euro, up 11,5% from 76,7 million Euro at 31 December 2023.
This item refers to software and intangible assets generated in-house in the total amount of 47,5 million Euro (up from the balance of 38,6 million Euro at 31 December 2023 as a result of investments made during 2024) and 38,0 million Euro in goodwill following the acquisition of the former Fbs Group.
Property, plant and equipment comes to 166,7 million Euro, up 16,3% compared with the 143,3 million Euro booked at 31 December 2023, mainly as a result of the investments made in FY 2024 by the Parent Company Banca Ifis, including the purchases of office buildings in Milan and Mestre and Palazzo San Pantalon in Venice, on whose façade the work "The Migrant Child" by the artist Banksy is painted.
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
At 31 December 2024, the properties recognised under property, plant and equipment include the important historical building "Villa Fürstenberg” (“Villa Marocco”), located in Mestre – Venice and housing Banca Ifis's registered office.
Tax assets and liabilities
These items include current and deferred tax assets and liabilities.
Tax assets amount to 213,4 million Euro, a decrease of 25,2% compared to 31 December 2023, which was 285,4 million Euro, mainly due to the reversals of the portions of deferred tax assets pursuant to Law 214/11 that were prepaid under current legislation.
Specifically, current tax assets amount to 42,0 million Euro, and decrease by 9,8% compared to the figure at 31 December 2023, which was 46,6 million Euro due to the effect of the liquidation of tax relative to the previous year.
Deferred tax assets (“DTAs”) amount to 171,4 million Euro, down on the figure of 238,8 million Euro at 31 December 2023 and consist mainly of 85,1 million Euro of assets recognised for impairment losses on receivables due from customers, potentially convertible into tax credits in accordance with Italian Law No. 214/2011 (144,7 million Euro at 31 December 2023), 40,0 million Euro of assets recognised for prior tax losses and aid for economic growth (“ACE”) benefit (41,1 million Euro at 31 December 2023) and 46,3 million Euro (53,1 million Euro at 31 December 2023) in tax misalignments mainly relating to financial assets measured at fair value through other comprehensive income (FVOCI) and provisions for risks and charges. The decrease is mainly attributable to the release of the year's portion of deferred tax assets that can be converted into tax credits under Law 214/2011.
With regard to the recoverability of deferred tax assets recognised at 31 December 2024, please 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 51,9 million Euro (57,7 million Euro at 31 December 2023) and are made up as follows:
•current tax liabilities of 23,3 million Euro (26,0 million Euro at 31 December 2023) representing the tax burden accrued during the year;
•deferred tax liabilities, amounting to 28,6 million Euro (31,7 million Euro at 31 December 2023), mainly include 23,6 million Euro on receivables recognised for interest on arrears 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 2024:
•the "deferred tax assets that rely on future profitability and do not arise from temporary differences" are subject to deduction from CET1; at 31 December 2024, the deduction is 40 million Euro. It should also be noted that the amount of DTA deducted from CET1, as provided for by Art. 38 par. 5 pursuant to CRR, is offset for an amount of 13,3 million Euro by the corresponding deferred tax liabilities. This deduction will be gradually absorbed by the future use of these deferred tax assets;
•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: at 31 December 2024, these assets amount to 33,4 million Euro. The amount weighted according to a factor of 250%, as provided for by art. 38 par 5 pursuant to CRR, is shown net of the offsetting with the corresponding deferred tax liabilities for an amount of 15,3 million Euro;
•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; at 31 December 2024, the corresponding weight totals 85,1 million Euro;
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
•"current tax assets" receive a 0% weight as they are exposures to the Central Government.
Other assets and liabilities
Other assets, of 402,5 million Euro as compared to a balance of 457,6 million Euro at 31 December 2023, include:
•financial assets held for trading for 12,1 million Euro (12,9 million Euro at 31 December 2023), entirely relating to transactions hedged by opposite positions entered amongst financial liabilities held for trading;
•derivative hedging assets, related to the micro fair value hedging strategies on the price risk associated with equity securities measured at fair value through other comprehensive income and the interest rate risk on debt securities measured at fair value through other comprehensive income, both initiated during the year, which have a positive fair value of 7,4 million Euro at 31 December 2024;
•equity investments in the amount of 24 thousand Euro, in line with the balance as at 31 December 2023;
•other assets of 383,0 million Euro (444,7 million Euro at 31 December 2023), which include tax receivables of 181,1 million Euro (of which 163,0 million Euro related to tax credits for Super Ecobonus and other building tax bonuses worth a nominal amount of 180,8 million Euro, a reduction compared with the carrying amount of 208,7 million Euro at 31 December 2023), transitory items and effects portfolio for 61,2 million Euro (down 11,3 million Euro compared with December 2023), accrued income and deferred expenses for 68,5 million Euro (+8,6 million Euro compared with December 2023) and receivables from the tax consolidating company La Scogliera connected to the Group's 2024 tax consolidation for 25,0 million Euro (-7,2 million Euro compared with December 2023).
With specific reference to the above-mentioned tax credits for Super Ecobonus and other building tax bonuses recognised under "other assets" in the nominal amount of 180,8 million Euro at 31 December 2024, it should be noted that during the financial year there was an update of the associated regulations. Indeed, with the approval of Decree Law 39/2024 converted with amendments by Law No. 67 of 23 May 2024 (in OJ No. 123 of 28/05/2024), a number of important innovations were introduced with regard to building bonus credits.
In particular, as far as the banking sector is concerned, it was stipulated that:
•the residual portions of the 110% Super Ecobonus credits that are "traceable" (i.e. have an identification code) and have been purchased at a price of less than 75% of their nominal amount are to be spread over 6 years starting on 1 January 2025;
•from 1 January 2025, it will no longer be possible to offset any Ecobonus credit against INPS and INAIL social security debts.
With reference to the specific position of the Banca Ifis Group in this new regulatory scenario, on the basis of analyses carried out, it is reasonably believed that these new provisions will not have any significant impact either in terms of lengthening the time horizon of netting or in terms of quantitative limitations to netting itself. Indeed:
•the Group stopped purchasing these receivables at the start of FY 2022;
•no building bonus credit included in the Group's portfolio simultaneously fulfils the three conditions for the application of the new 6-year allocation;
•the Group acquired credits to be used in offsetting for a total amount below its tax capacity, both to avoid the risk of incapacity and to make it possible to offset tax credits arising from other types of concessions (e.g., film industry).
Other liabilities come to 375,6 million Euro, a reduction of 10,8% compared with 421,1 million Euro at 31 December 2023, and mainly consist of:
•trading derivative liabilities for 13,8 million Euro, mainly referring to transactions hedged by opposite positions entered amongst financial assets held for trading, and essentially in line with the balance at 31 December 2023 of 14,0 million Euro;
•hedging derivative liabilities, mainly related to the micro fair value hedging strategy on the interest rate risk associated with government securities held by the Group, which show a negative fair value of 14,9 million Euro at 31 December 2024, up from the balance of 11,6 million Euro at 31 December 2023;
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•severance indemnity payable for 7,6 million Euro, 4,3% down on the figure of 31 December 2023 (7,9 million Euro);
•other liabilities for 339,4 million Euro, down 12,4% from 387,6 million Euro at 31 December 2023. More specifically, the most significant items making up the balance at 31 December 2024 largely refer to operating payables for 105,2 million Euro, to transitional items and amounts due to customers that have not yet been allocated for 55,4 million Euro and to payables due to La Scogliera for 29,1 million Euro relative to the Group tax consolidation for 2024 (31,2 million Euro at 31 December 2023).
Funding

FUNDING(in thousands of Euro) | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | ABSOLUTE | %
Payables due to banks | 1.443.250 | 2.717.139 | (1.273.889) | (46,9)%
- Payables due to Central banks | 419.286 | 1.577.874 | (1.158.588) | (73,4)%
of which: TLTRO | - | 1.577.874 | (1.577.874) | (100,0)%
of which: MRO | 400.035 | - | 400.035 | n.a.
of which: Other deposits | 19.251 | - | 19.251 | n.a.
- Repurchase agreements | 630.540 | 715.313 | (84.773) | (11,9)%
- Other payables | 393.424 | 423.952 | (30.528) | (7,2)%
Payables due to customers | 7.001.763 | 5.814.624 | 1.187.139 | 20,4%
- Repurchase agreements | 1.045.734 | 346.317 | 699.417 | 202,0%
- Retail | 4.789.355 | 4.474.892 | 314.463 | 7,0%
- Other term deposits | 399.765 | 122.325 | 277.440 | 226,8%
- Lease payables | 23.525 | 22.702 | 823 | 3,6%
- Other payables | 743.384 | 848.388 | (105.004) | (12,4)%
Debt securities issued | 3.152.737 | 3.288.895 | (136.158) | (4,1)%
Total funding | 11.597.750 | 11.820.658 | (222.908) | (1,9)%

Total funding amounts to 11,6 billion Euro at 31 December 2024 and shows a slight decrease compared with the figure at 31 December 2023 (-1,9%); it is represented for 60,4% by payables due to customers (49,2% at 31 December 2023), for 27,2% by debt securities issued (27,8% at 31 December 2023), and for 12,4% by payables due to banks (23,0% at 31 December 2023).
Payables due to banks come to 1.443,3 million Euro, down 46,9% compared to the end-of-December 2023 figure, mainly as a result of the full repayment of the TLTRO III lines in 2024 totalling a nominal 1,5 billion Euro (a repayment of a tranche for a nominal 750 million Euro in the first half, a partial repayment of a nominal 375 million Euro at the end of June 2024 and the repayment of the residual nominal amount of 411,5 million Euro at the final maturity of September 2024), partially offset by the subscription of a MRO transaction in December 2024 for 400 million Euro maturing on 8 January 2025, and a reduction in repurchase agreements payable to banks of 84,8 million Euro.
Payables due to customers at 31 December 2024 total 7,0 billion Euro, up 20,4% compared to 31 December 2023. Growth was driven by repurchase agreements with customers, which amount to 1.045,7 million Euro (+699,4 million Euro compared to the balance at the end of 2023) and retail funding, which amounts to 4,8 billion Euro at the end of 2024 (+7,0% compared to 31 December 2023).
Debt securities issued amount to 3,2 billion Euro at 31 December 2024, down by 136,2 million Euro (-4,1%) following the period dynamics, characterised by the issue in February 2024 of a senior bond worth a nominal amount of 400 million Euro and having a term of 5 years (for more details, please refer to the section “Significant events occurred in the year”), which has essentially replaced the Senior Preferred bond worth a nominal 400 million
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Euro issued in 2020 and which reached maturity on 25 June 2024, and the normal amortisation of the Group's securitisation securities (-207,7 million Euro compared to December 2023). Debt securities issued at 31 December 2024 consist of:
•securities issued by the SPV ABCP Programme for 976,6 million Euro relating to the senior tranche. It should be noted that at the end of June 2024, the restructuring of this securitisation, involving proprietary factoring receivables, was completed (for more details, please refer to the section "Significant events occurred in the year");
•securities issued by the SPV Indigo Lease for 400,2 million Euro relating to the senior tranche;
•securities issued by the SPV Emma for 268,6 million Euro relating to the senior tranche;
•373,0 million Euro for a subordinate loan, in line with 31 December 2023;
•4 senior bonds issued by Banca Ifis in the total amount of 1,1 billion Euro, up on the end-December 2023 figure (+6,7%) for the above-mentioned February 2024 issue of the senior bond of 400 million Euro, which more than offset the year’s collections on other bonds.
As a result of the dynamics depicted above (and in particular the repayment of the TLTRO lines), the average funding cost as at 31 December 2024 stands at 3,87%, up from the figure of 3,08% for the average of the first nine months of 2023.
Below is a representation of the Banca Ifis Group's retail funding.

RETAIL FUNDING(in thousands of Euro) | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | ABSOLUTE | %
Short-term funding (within 18 months) | 3.675.749 | 3.256.259 | 419.490 | 12,9%
of which: Unrestricted | 466.046 | 458.116 | 7.930 | 1,7%
of which: Like/One | 251.276 | 355.016 | (103.740) | (29,2)%
of which: restricted | 2.598.764 | 2.145.288 | 453.476 | 21,1%
of which: German deposit | 359.663 | 297.839 | 61.824 | 20,8%
Medium/long-term funding (beyond 18 months) | 1.113.606 | 1.218.633 | (105.027) | (8,6)%
Total retail funding | 4.789.355 | 4.474.892 | 314.463 | 7,0%

Provisions for risks and charges

PROVISIONS FOR RISKS AND CHARGES(in thousands of Euro) | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | ABSOLUTE | %
Provisions for credit risk related to commitments and financial guarantees granted | 5.222 | 5.374 | (152) | (2,8)%
Provisions on other commitments and guarantees given | 337 | - | 337 | n.a.
Provisions for pensions | 231 | 196 | 35 | 17,9%
Legal and tax disputes | 28.337 | 43.029 | (14.692) | (34,1)%
Personnel expenses | 1.931 | 2.592 | (661) | (25,5)%
Other provisions | 16.281 | 6.987 | 9.294 | 133,0%
Total provisions for risks and charges | 52.339 | 58.178 | (5.839) | (10,0)%

Below is the breakdown of the provision for risks and charges at 31 December 2024 by type of dispute compared with the amounts for the end of the prior year.
Provisions for credit risk related to commitments and financial guarantees granted
At 31 December 2024, this item amounts to 5,2 million Euro, reflecting the impairment losses on irrevocable commitments to disburse funds and financial guarantees granted by the Group
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Provisions on other commitments and guarantees given
At 31 December 2024, this item has a balance of 337 thousand Euro.
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.
With reference to this fund, as a supplementary defined-benefit pension fund, the determination of the actuarial values required by the application of IAS 19 "Employee Benefits" is carried out using the "Project Unit Credit Method". The liability is recognised in the balance sheet net of any plan assets, and actuarial gains and losses calculated in the plan valuation process are recognised in the statement of comprehensive income and, therefore, in equity.
At 31 December 2024, this fund amounts to 231 thousand Euro, an increase of 35 thousand Euro compared to the balance at 31 December 2023.
Legal and tax disputes
At 31 December 2024, provisions are entered for legal and tax disputes for a total of 28,3 million Euro, a reduction on the 43,0 million Euro recorded at 31 December 2023. The 14,7 million Euro decrease is mainly attributable to releases related to disputes related to the former Aigis Banca (for 5,8 million Euro), to the positive resolution of a dispute related to the former Interbanca (for 3,3 million Euro), and to net releases attributable to the subsidiary Ifis Npl Investing for 2,2 million Euro. During the course of the year, 99 lawsuits were closed, whose provision set aside at the beginning of the year amounted to 15,1 million Euro, and 87 new lawsuits were opened, whose provision for risks and charges as at 31 December 2024 amounted to 3,9 million Euro.
Personnel expenses
At 31 December 2024, provisions are entered for staff for 1,9 million Euro (2,6 million Euro at 31 December 2023) of which 1,6 million Euro relating to the Solidarity Fund.
Other provisions for risks and charges
At 31 December 2024, there are "Other provisions" of 16,3 million Euro, up from the figure at 31 December 2023 (+10,0 million Euro), mainly as a result of allocations made to cover risks related to outstanding disputes over tax credits for Super Ecobonus and other building tax bonuses, in respect of which the provision made at 31 December 2024 is 7,5 million Euro. The item also includes 3,4 million Euro for Supplementary Customer Indemnity in connection with the Leasing Area's operations, 3,1 million Euro for the provision for risks linked to assignments and 0,4 million Euro for the provision for complaints.
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Consolidated equity
Consolidated equity at 31 December 2024 totals 1.748,1 million Euro, up 3,2% on the 1.693,7 million Euro booked at end 2023. The main changes in consolidated shareholders' equity are summarised in the following tables.

EQUITY: BREAKDOWN(in thousands of Euro) | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | ABSOLUTE | %
Share capital | 53.811 | 53.811 | - | 0,0%
Share premiums | 85.391 | 84.108 | 1.283 | 1,5%
Valuation reserves: | (28.144) | (39.215) | 11.071 | (28,2)%
- securities | (23.150) | (33.359) | 10.209 | (30,6)%
- defined benefit plans (e.g. severance indemnity) | 574 | 290 | 284 | 97,9%
- Exchange differences | (5.437) | (6.146) | 709 | (11,5)%
- hedging of equity securities at fair value through other comprehensive income | (131) | - | (131) | n.a.
Reserves | 1.543.729 | 1.505.424 | 38.305 | 2,5%
Interim dividends (-) | (63.084) | (62.962) | (122) | 0,2%
Treasury shares (-) | (20.971) | (21.817) | 846 | (3,9)%
Equity attributable to non-controlling interests | 15.836 | 14.240 | 1.596 | 11,2%
Net profit attributable to the Parent Company | 161.578 | 160.110 | 1.468 | 0,9%
Consolidated equity | 1.748.146 | 1.693.699 | 54.447 | 3,2%

CONSOLIDATED EQUITY: CHANGES | (in thousands of Euro)
Consolidated equity at 31.12.2023 | 1.693.699
Increases: | 166.357
Profit for the year attributable to the Parent Company | 161.578
Sale/assignment of treasury shares | 1.283
Change in valuation reserve | 993
- defined benefit plans (e.g. severance indemnity) | 284
- exchange differences | 709
Stock options | 155
Equity attributable to non-controlling interests | 1.596
Other changes | 752
Decreases: | 111.910
Dividends distributed | 110.362
- of which dividend balance on 2023 profit | 47.278
- of which interim dividend on 2024 profit | 63.084
Change in valuation reserve | 1.548
- securities (net of realisations) | 1.395
- change in valuation reserve for the hedging of equity securities at fair value through other comprehensive income (net of realisations) | 153
Consolidated equity at 31.12.2024 | 1.748.146

With reference to the extraordinary tax on the "extra-profits" of the banks under Italian Law No. 136/2023, it should be noted that the corresponding allocations to reserves proposed by the directors to the relevant shareholders' meetings in 2024 have been approved by them and amount to 23.905.112 Euro for Banca Ifis (resolution dated 18
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
April 2024) and 3.252.404 Euro for Banca Credifarma (resolution dated 10 April 2024). Finally, it should be noted that the provision of the last part of paragraph 5-bis of Italian Law No. 136/2023 determines an obligation to be considered new and autonomous and consisting in the maintenance of the non-distributable restriction on the reserve recorded by each bank in their respective separate financial statements. In this regard, the directors currently confirm their intention not to proceed with any distribution of the reserves thus constituted.

RECONCILIATION OF EQUITY AND THE NET RESULT OF THE PARENT COMPANY WITH THE CONSOLIDATED DATA ATTRIBUTABLE TO THE PARENT COMPANY (in thousand Euro) | 31.12.2024
EQUITY | OF WHICH: PROFIT (LOSS) FOR THE YEAR
Balances of the Parent company Banca Ifis | 1.394.367 | 139.303
Difference compared to the carrying amounts of the companies consolidated | 354.140 | 176.450
- Ifis Finance Sp z o.o. | 23.119 | 6.859
- Ifis Finance I.F.N. S.A. | (244) | 1.583
- Ifis Rental Services | 69.663 | 14.486
- Cap.Ital.Fin. | - | 1.443
- Banca Credifarma | 74.557 | 18.001
- Ifis Npl Investing | 166.082 | 160.209
- Ifis Npl Servicing | 20.963 | (26.131)
Elimination of intra-group dividends | - | (82.000)
Other consolidation entries | (361) | (72.175)
Consolidated balances attributable to the Parent company | 1.748.146 | 161.578

Own funds and capital adequacy ratios

OWN FUNDS AND CAPITAL ADEQUACY RATIOS(in thousands of Euro) | AMOUNTS
31.12.2024(1) | 31.12.2023(2)
Common Equity Tier 1 (CET1) capital | 1.583.801 | 1.544.497
Tier 1 capital | 1.584.703 | 1.545.424
Total Own Funds | 1.781.416 | 1.812.324
Total RWAs | 9.836.093 | 10.390.002
CET1 Ratio | 16,10% | 14,87%
Tier 1 Ratio | 16,11% | 14,87%
Total Capital Ratio | 18,11% | 17,44%

(1) CET1, Tier 1 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.
(2) CET1, Tier 1 and Total Capital include the profits accrued by the Banking Group at 31 December 2023, 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.
Consolidated own funds, risk-weighted assets and prudential ratios at 31 December 2024 were calculated based on the regulatory changes introduced by Directive No. 2019/878/EU (CRD V) and Regulation (EU) No. 876/2019 (CRR2), which amended the regulatory principles set out in Directive No. 2013/36/EU (CRD IV) and Regulation (EU) No. 575/2013 (CRR), as subsequently amended, which were transposed in the Bank of Italy's Circular No. 285.
For the purposes of calculating capital requirements at 31 December 2024, in continuity with what has been done since 30 June 2020, the Banca Ifis Group has applied the temporary support provisions still in force at this reporting date, as set out in EU Regulation No. 873/2020 (the "quick-fix").
New developments in 2024 include the application of the temporary treatment of unrealised gains and losses measured at fair value for exposures to central governments classified in the category “financial assets at fair
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value through other comprehensive income” (or “FVOCI”), reintroduced by EU Regulation No. 1623/2024 as an amendment to Article 468 of the CRR.
Innovations for the end of 2024 include the activation by the Bank of Italy of the capital buffer against systemic risk. As at 31 December 2024, the reserve to be attained constitutes 0,5% of risk-weighted credit and counterparty risk exposures to residents of Italy. The target rate of 1,0% is to be reached by 30 June 2025.
EU Regulation No. 873/2020, relative to the transitional provisions aimed at attenuating the impact of the introduction of IFRS 9 on Own funds - defines for entities the possibility of including in their CET1 a portion of the accruals gained for expected credit losses, through different operating methods of the transitional period of reference (1 January 2018 - 31 December 2019 and 1 January 2020 - 31 December 2024).
Please note that, at the time, Banca Ifis had already informed the Bank of Italy of its decision to apply the transitional arrangements for the entire period.
The inclusion in CET1 takes place as for last year, gradually and by applying the following factors:

TEMPORARY TREATMENT IFRS 9 2018-2019 | TEMPORARY TREATMENT IFRS 9 2020-2024
0,70 from 1 January 2020 to 31 December 2020 | 1,00 from 1 January 2020 to 31 December 2020
0,50 from 1 January 2021 to 31 December 2021 | 1,00 from 1 January 2021 to 31 December 2021
0,25 from 1 January 2022 to 31 December 2022 | 0,75 from 1 January 2022 to 31 December 2022
0,00 from 1 January 2023 to 31 December 2023 | 0,50 from 1 January 2023 to 31 December 2023
0,00 from 1 January 2024 to 31 December 2024 | 0,25 from 1 January 2024 to 31 December 2024

At 31 December 2024, taking into account the transitional treatment adopted to mitigate the impacts of IFRS 9 on CET1, Own funds amount to 1.781,4 million Euro, recording a negative change of 30,9 million Euro compared to 31 December 2023. This change is mainly attributable to the following components:
•inclusion of the profit accrued at 31 December 2024 of 161,6 million Euro, net of the assumed dividend of 111,5 million Euro including the portion distributed on account; the positive change amounts to 50,1 million Euro;
•lower deduction of deferred tax assets of 4,9 million Euro;
•positive change in other reserves in the amount of 3 million Euro;
•the application of the transitional filter introduced to mitigate the impact of the FTA of IFRS 9 (Art. 473-bis CRR), which determines a negative change of 19,9 million Euro, partially offset by the introduction of the filter on the OCI reserve on government securities in the positive amount of 15,9 million Euro. The total negative change comes to 4,0 million Euro;
•higher deduction from the CET1, deriving from the increase in receivables within the scope of what is termed “Calendar provisioning”, for 14,8 million Euro;
•the reduced eligibility for Tier 2 capital of the subordinated loan with a maturity of less than 5 years, mainly due to the joint effect of the application of the amortisation under Article 64 of the CRR and the deduction of the repurchase obligation authorised by the Bank of Italy, which has entailed a total reduction of 70,2 million Euro.
The negative change in shareholders' equity due to the aforementioned phenomena was mitigated by a reduction in risk-weighted assets (RWA) of 553,9 million Euro, as described below.
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Here below is the breakdown by Segment of risk-weighted assets (RWA).

RISK-WEIGHTED ASSETS: BREAKDOWN(in thousands of Euro) | COMMERCIAL & CORPORATE BANKING SEGMENT | NPL SEGMENT | GOVERNANCE & SERVICES AND NON-CORE SEGMENT | CONS.GROUP TOTAL
TOTAL COMMERCIAL & CORPORATE BANKING SEGMENT | of which: FACTORING AREA | of which: LEASING AREA | of which: CORPORATE BANKING & LENDING AREA
RWA for credit risk | 5.769.725 | 2.729.714 | 1.200.451 | 1.839.560 | 1.733.692 | 1.171.961 | 8.675.378
RWA for market risk | X | X | X | X | X | X | 39.749
RWA for operational risk (basic indicator approach) | X | X | X | X | X | X | 1.038.251
RWA for credit valuation adjustment risk | X | X | X | X | X | X | 82.715
Total RWAs | X | X | X | X | X | X | 9.836.093

At 31 December 2024, taking into account the transitional treatment adopted to mitigate the impact of IFRS 9, risk-weighted assets (RWAs) amount to 9.836,1 million Euro, a decrease of 550,2 million Euro compared to December 2023. Specifically, please note:
•a reduction in credit risk of 574,2 million Euro mainly attributable to the following changes:
–reduction of 89 million Euro recorded on the corporate and retail exposure class, attributable to the recovery of information assets useful for the application of preferential risk weights;
–a reduction of 222,6 million Euro related to the exposure class Institutions, mainly due to the decrease in repurchase agreements and securities transactions in the first half of 2024 and, starting in the third quarter of 2024, to the introduction of the credit ratings of the agency (ECAI) Fitch Ratings Ireland Limited;
–a reduction of 234,7 million Euro in the “Exposures in default” portfolio, the effect of which is due to a decrease in volumes in the Npl Segment (-130 million Euro);
–net changes in the other exposure classes, the effect of which amounts to a total decrease of 27,7 million Euro;
•an increase in market risk and Credit Valuation Adjustment (CVA) components, totalling 9,9 million Euro, mainly due to an increase in derivative transactions;
•an increase in operational risk of 10,3 million Euro, due to the improvement of the relevant indicator.
Following the above-described dynamics, at 31 December 2024, the CET1 ratio stands at 16,10%, up 123 basis points from 31 December 2023, while the Total Capital ratio stands at 18,11%, up 67 basis points compared with 31 December 2023.
At 31 December 2024, not considering the filter related to the IFRS 9 transitional regime nor taking into account the prudential filter for exposures to central governments classified in the FVOCI category, Fully Loaded Own Funds amount to 1.759,3 million Euro and consequently the RWA when fully applied, come to 9.836,1 million Euro.
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OWN FUNDS AND CAPITAL ADEQUACY RATIOS WITHOUTIFRS 9 TRANSITIONAL ARRANGEMENTS(in thousands of Euro) | AMOUNTS
31.12.2024(1) | 31.12.2023(2)
Common Equity Tier 1 (CET1) capital | 1.561.703 | 1.518.451
Tier 1 capital | 1.562.605 | 1.519.378
Total Own Funds | 1.759.318 | 1.786.278
Total RWAs | 9.836.093 | 10.386.270
CET1 Ratio | 15,88% | 14,62%
Tier 1 Ratio | 15,89% | 14,63%
Total Capital Ratio | 17,89% | 17,20%

(1) CET1, Tier 1 and Total Own Funds (Total Capital) at 31 December 2024 include the profits generated by the Banking Group at that date, 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) CET1, Tier 1 and Total Own Funds (Total Capital) at 31 December 2023 include the profits generated by the Banking Group at that date, 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.
For the sake of comparison, it should be noted that until 31 December 2024, the Banca Ifis Group, at the consolidated level, is required to comply with the following capital requirements, as part of the Prudential Review and Evaluation Process (SREP):
•CET1 Ratio of 8,44%, with a required minimum of 5,50%;
•Tier 1 Ratio of 10,34%, with a required minimum of 7,40%;
•Total Capital Ratio of 12,74%, 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 (summarised in the table below) for the Banca Ifis Group, to which the specific countercyclical coefficient is added:
•CET1 Ratio of 9,44%, consisting of an OCR CET1 ratio of 8,44% and a target component (Pillar 2 Guidance) of 1,00%;
•Tier 1 Ratio of 11,34%, consisting of an OCR Tier 1 Ratio of 10,34% and a target component of 1,00%;
•Total Capital Ratio of 13,74%, consisting of an OCR Total Capital Ratio of 12,74% and a target component of 1,00%.
the Bank of Italy has decided to apply to all banks authorised in Italy a SyRB (Systemic Risk Buffer) equal to 1,00% of RWA for credit and counterparty risk to Italian residents1 (the basis of calculation, therefore, is not the overall risk exposure, as for the capital conservation reserve or the countercyclical buffer). The target rate of 1,00% is to be achieved gradually by building up a reserve of 0,5% of material exposures by 31 December 2024 and the remaining 0,5% by 30 June 2025. The SyRB must be applied at the consolidated level for groups and at the individual level for non-group banks.
1 The requirement must be calculated on the sum of exposures to residents of Italy in rows 170, column 90 of Corep Table C09.01 and 150, column 125 of Corep Table C09.02.
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Below is a summary table of the requirements in force.

Overall Capital Requirement (OCR) 2024 | Pillar 2 Guidance | Total
| Art. 92 CRR | SREP | TSCR | Combined requirement | OCR Ratio | P2G | OCR and P2G
RCC (1) | Countercyclical buffer | Systemic risk
CET1 | 4,50% | 1,00% | 5,50% | 2,50% | 0,04% | 0,40% | 8,44% | 1,00% | 9,44%
Tier 1 | 6,00% | 1,40% | 7,40% | 2,50% | 0,04% | 0,40% | 10,34% | 1,00% | 11,34%
Total Capital | 8,00% | 1,80% | 9,80% | 2,50% | 0,04% | 0,40% | 12,74% | 1,00% | 13,74%

(1) RCC: capital conservation buffer.
At 31 December 2024, the Banca Ifis Group easily met the above-specified requirements.
Procedure for determining the minimum requirement for liabilities subject to bail-in
The minimum own funds and eligible liabilities (MREL) requirements communicated by the Bank of Italy to the Parent Company Banca Ifis and its subsidiary Banca Credifarma are shown in the table below.
MREL requirement

Banca Ifis | Banca Credifarma
12,74% (1) of the Total Risk Exposure Amount (TREA) | 8% of the Total Risk Exposure Amount (TREA)
4,47% of Leverage Ratio Exposure | 3% of Leverage Ratio Exposure

(1) 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 5,87% as of the reporting date. The minimum threshold added together is 15,67%.
At 31 December 2024, following the monitoring process, both indicators were easily met.
Group liquidity position and coefficients
During 2024, the Group continued its strategy of differentiating between distribution channels, in order to ensure a better balance with respect to retail funding. The Group has liquidity at 31 December 2024 (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 more than of 700% and 100% respectively).
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Reclassified income statements items
In relation to the acquisition of Revalea S.p.A. finalised on 31 October 2023 and its entry into the scope of consolidation (initially as a standalone company and thereafter as an incorporated company following the merger by incorporation of Revalea into Ifis Npl Investing in 2024), the income statement figures for FY 2024 may not be fully comparable with those of the previous year. However, it should be noted that in the comments to the individual items, the contribution of the company acquired is presented, where relevant, considering that it impacts the 2023 data for only 2 months (November and December) while for the 2024 data it is full (12 months).
For more details on this merger, refer to Part G "Business combinations" of the Notes to the Consolidated Financial Statements.
Formation of net banking income
Net banking income amounts to 699,2 million Euro, essentially in line with the figure of 704,6 million Euro as at 31 December 2023, thanks to the positive contribution of the other components of net banking 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) | YEAR | CHANGE
2024 | 2023 | ABSOLUTE | %
Net interest income | 532.505 | 566.197 | (33.692) | (6,0)%
Net commission income | 91.775 | 98.221 | (6.446) | (6,6)%
Other components of net banking income | 74.872 | 40.198 | 34.674 | 86,3%
Net banking income | 699.152 | 704.616 | (5.464) | (0,8)%

Net interest income amounts to 532,5 million Euro, down from the figure at 31 December 2023, which stood at 566,2 million Euro, as the positive contributions of the Commercial & Corporate Banking Segment (+6,6 million Euro) were substantially offset by the stability of the Npl Segment and the reduction in net interest income from the Governance & Services and Non-Core Segment (-39,2 million Euro), which suffers both the physiological lesser contribution of a portfolio in run-off (-11,4 million Euro) and the higher cost of funding (-27,8 million Euro), linked to the redefinition of funding, driven by the redemption of the TLTRO facilities and their replacement with more onerous forms of funding.
Net commissions amount to 91,8 million Euro, a decrease of 6,4 million Euro compared to the figure at 31 December 2023, as the positive contribution of the Corporate Banking segment (+3,1 million Euro) of the Corporate Banking & Lending Area was more than offset by the lower contribution of the Governance & Services and Non-Core Segment (-1,3 million Euro), following the increase in commissions payable for retail funding, as well as the commissions paid by Revalea (acquired in October 2023 and merged into Ifis Npl Investing in 2024) to a third-party servicer. In particular:
•commission income, totalling 111,6 million Euro, in line with 31 December 2023, primarily refers to factoring commissions on the turnover generated by individual customers (with or without recourse, in a flat or monthly scheme), arrangement fees for structured finance transactions, leases, third-party servicing, as well as from other fees usually charged to customers for services;
•Commission expense is 19,8 million Euro, up 5,7 million Euro compared with the figure at 31 December 2023, in connection with the fees incurred as a result of the servicing agreements stipulated by the former Revalea, and largely refer to fees paid to banks and financial intermediaries such as management fees, fees paid to third parties for the distribution of leasing products, as well as brokerage operations carried out by approved banks and other credit brokers.
The other components of net banking income are 74,9 million Euro at 31 December 2024, up by 34,7 million Euro compared with the end of FY 2023. Below are details of the components:
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
•net gains from the sale/repurchase of financial assets and liabilities of 41,3 million Euro (+25,1 million Euro compared to net gains of 16,2 million Euro at 31 December 2023), mainly comprising 25,1 million Euro related to securities transactions in the proprietary portfolio mainly for the disposals of debt securities (vs 4,8 million Euro recorded in FY 2023), of which 12,3 million Euro related to bank debt securities and 12,8 million Euro relative to government securities and 16,1 million Euro from the disposals of loans in the Npl Segment (10,4 million Euro at 31 December 2023);
•net positive result of other financial assets and liabilities measured at fair value through profit or loss for 24,1 million Euro (up 10,9 million Euro compared with the figure at 31 December 2023), primarily represented by the net positive change in FY 2024 fair value of equity securities for 16,9 million Euro (which includes the capital gain on the sale for 6,2 million Euro of participating financial instruments obtained from a restructuring operation of the debt of a position in the Non-Core unit), up 10,3 million Euro compared with 31 December 2023, and UCITS fund units for 6,6 million Euro (+1,3 million Euro compared with 31 December 2023);
•dividends generated by shares in the Group's own portfolio in the amount of 12,5 million Euro (-3,6 million Euro compared to the figure for FY 2023);
•negative net result from trading activities of 1,9 million Euro as an improvement of 3,4 million Euro compared to the negative net result of 5,3 million Euro in FY 2023, mainly due to the better performance of trading derivatives (+2,4 million Euro compared to the balance at 31 December 2023);
•negative net result from hedging activities of 1,1 million Euro, a deterioration from the negative figure of 0,1 million Euro at 31 December 2023, which, however, is not an entirely comparable figure as hedging activities had only been in place since June 2023.
Formation of net profit (loss) from financial activities
The Group's net profit from financial activities totals 661,5 million Euro, an increase compared to 652,2 million Euro at 31 December 2023 (+1,4%).

FORMATION OF NET PROFIT (LOSS)FROM FINANCIAL ACTIVITIES(in thousands of Euro) | YEAR | CHANGE
2024 | 2023 | ABSOLUTE | %
Net banking income | 699.152 | 704.616 | (5.464) | (0,8)%
Net credit risk losses/reversals | (37.670) | (52.407) | 14.737 | (28,1)%
Net profit (loss) from financial activities | 661.482 | 652.209 | 9.273 | 1,4%

Net credit risk losses total 37,7 million Euro at 31 December 2024, an improvement of 14,7 million Euro on the 52,4 million Euro at 31 December 2023.
Net adjustments in 2024 are influenced, amongst other aspects, by the full use of prudential adjustments (management overlay) booked during previous year resulting from "expert-based" assessments following the actual classification among impaired exposures of specifically identified positions. In addition, management overlays set aside during previous years to hedge multiple risk factors (particularly related to inflationary, geopolitical and energy supply risks) and to hedge against adverse macroeconomic expectations, were utilised against the deteriorating dynamics of the underlying portfolio clusters.
Further details of the different trends connected with the reclassified credit cost are given in the section "Contribution of operating Segments to Group results” of this Directors’ Report on the Group.
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Formation of net profit for the year
Formation of net profit for the year is summarised in the table below.

FORMATION OF NET PROFIT(in thousands of Euro) | YEAR | CHANGE
2024 | 2023 | ABSOLUTE | %
Net profit (loss) from financial activities | 661.482 | 652.209 | 9.273 | 1,4%
Operating costs | (406.916) | (394.648) | (12.268) | 3,1%
Charges related to the banking system | (8.136) | (11.193) | 3.057 | (27,3)%
Net allocations to provisions for risks and charges | (478) | (6.878) | 6.400 | (93,1)%
Non-recurring expenses and income | (610) | (2.919) | 2.309 | (79,1)%
Gains (losses) on disposal of investments | - | 986 | (986) | (100,0)%
Pre-tax profit from continuing operations | 245.342 | 237.557 | 7.785 | 3,3%
Income taxes for the year relating to current operations | (82.168) | (75.641) | (6.527) | 8,6%
Profit (loss) for the year | 163.174 | 161.916 | 1.258 | 0,8%
(Profit) loss for the year attributable to non-controlling interests | (1.596) | (1.806) | 210 | (11,6)%
Profit (loss) for the year attributable to the Parent Company | 161.578 | 160.110 | 1.468 | 0,9%

Operating costs total 406,9 million Euro, showing an increase on 31 December 2023 (+3,1%).

OPERATING COSTS(in thousands of Euro) | YEAR | CHANGE
2024 | 2023 | ABSOLUTE | %
Administrative expenses: | 417.390 | 402.011 | 15.379 | 3,8%
a) personnel expenses | 169.852 | 163.802 | 6.050 | 3,7%
b) other administrative expenses | 247.538 | 238.209 | 9.329 | 3,9%
Net impairment losses/reversals on property, plant and equipment and intangible assets | 23.276 | 17.706 | 5.570 | 31,5%
Other operating income/expenses | (33.750) | (25.069) | (8.681) | 34,6%
Operating costs | 406.916 | 394.648 | 12.268 | 3,1%

Personnel expenses, amounting to 169,9 million Euro, record an increase of 3,7%, which can be attributed on the one hand to the growth in the number of resources in force at the reference date (the number of Group employees at 31 December 2024 is 2.013, up 3,8% compared to 1.940 resources at 31 December 2023) and on the other hand to the effects of the renewed National Collective Bargaining Agreement (NCBA).
Other administrative expenses at 31 December 2024 are 247,5 million Euro, up 9,3 million Euro on 31 December 2023. This change is mainly related to the sub-items "Legal and Consulting" and "Outsourcing Services" connected to the increase in the contribution of the former Revalea (merged into Ifis Npl Investing) for the year 2024 as last year it became part of the Group's scope as at 31 October 2023.
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The performance of this item is detailed in the table below.

OTHER ADMINISTRATIVE EXPENSES (in thousands of Euro) | YEAR | CHANGE
2024 | 2023 | ABSOLUTE | %
Expenses for professional services | 134.732 | 122.516 | 12.215 | 10,0%
Legal and consulting services | 92.898 | 87.106 | 5.792 | 6,6%
Fees to auditing firms | 1.173 | 1.016 | 157 | 15,5%
Outsourced services | 40.660 | 34.394 | 6.266 | 18,2%
Direct and indirect taxes | 37.448 | 40.141 | (2.693) | (6,7)%
Expenses for purchasing goods and other services | 75.359 | 75.552 | (193) | (0,3)%
Software assistance and hire | 22.556 | 19.074 | 3.482 | 18,3%
Advertising and inserts | 12.176 | 14.195 | (2.019) | (14,2)%
Customer information expenses | 8.019 | 12.404 | (4.385) | (35,4)%
Property expenses | 7.966 | 7.495 | 471 | 6,3%
Business travel and transfers | 5.555 | 4.204 | 1.351 | 32,1%
Postage and archiving of documents | 3.597 | 3.733 | (136) | (3,6)%
Car fleet management and maintenance | 3.556 | 3.247 | 309 | 9,5%
Telephone and data transmission expenses | 3.342 | 3.160 | 182 | 5,8%
Securitisation costs | 1.808 | 1.169 | 639 | 54,7%
Other sundry expenses | 6.785 | 6.871 | (86) | (1,3)%
Total other administrative expenses | 247.538 | 238.209 | 9.329 | 3,9%

The sub-item “Expenses for professional services” is 134,7 million Euro at 31 December 2024, up by 12,2 million Euro compared with the figure at 31 December 2023 (+10,0%) and mainly consists of:
•costs for “Legal and consulting services”, which come to 92,9 million Euro in FY 2024, up 6,6% on the figure recorded for last year;
•costs for "Outsourced services", which amount to 40,7 million Euro at 31 December 2024, record an increase of 6,3 million Euro on the figure recorded for the previous year. The change is mainly attributable to the higher cost of Ifis Npl Investing's recovery activities (+10,3 million Euro), whose comparative figure for 2023 had benefited from the settlement of the effects of the change in the commission system and the contribution, limited to just two months, of the costs associated with the former Revalea (which joined the Group in October 2023).
“Direct and indirect taxes” come to 37,4 million Euro, a reduction on the figure at 31 December 2023, which was 40,1 million Euro (-6,7%). The item mainly consists of the registration tax incurred for the judicial recovery of receivables belonging to non-performing loans for an amount of 22,5 million Euro at 31 December 2024 (26,1 million Euro at the end of the previous year), and also includes costs for stamp duty for 13,7 million Euro (in line with the 31 December 2023 figure), the recharging of which to customers is included in the item "Other operating income".
The sub-item “Expenses for purchasing goods and other services” amounts to 75,4 million Euro, in line with 31 December 2023. The factors that mainly influence the result are:
•costs for “Software assistance and hire”, which amount to 22,6 million Euro and show an increase (+18,3%( compared with the figure at 31 December 2023;
•expenses for “Advertising and inserts”, which increase from 14,2 million Euro to 12,2 million Euro at December 2024 (-2,0 million Euro compared with 31 December 2023);
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•"Customer information expenses”, which amount to 8,0 million Euro at 31 December 2024 and decrease by 4,4 million Euro compared to 31 December 2023, mainly due to lower costs incurred by the subsidiary Ifis Npl Investing, mainly due to the related Npl portfolio purchase timing;
•"Property expenses", which amount to 8,0 million Euro and increase by 6,3% compared to December 2023 (+0,5 million Euro), mainly as a result of higher supervision costs.
Net adjustments to property, plant and equipment and intangible assets at 31 December 2024 amount to 12,2 million Euro and 11,1 million Euro, respectively, and increase by 25,7% and 38,5%, respectively, compared to the figures for the previous year, as a result of the investments in property, plant and equipment and intangible assets made by the Banca Ifis Group during 2024 (for further details, refer to the description above in the section "Group reclassified financial and income results" under the heading "Intangible assets and property, plant and equipment").
Other net operating income, amounting to 33,8 million Euro as at 31 December 2024, increase by 8,7 million Euro (+34,6%) compared to the figure as at 31 December 2023, also as a result of expense recoveries from the former Revalea (merged into Ifis Npl Investing), which became part of the Group's perimeter in October 2023. 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 in December 2024 amount to 406,9 million Euro, up from the balance of 394,6 million Euro in December 2023.
At 31 December 2024, the item “Charges related to the banking system” amounts to 8,1 million Euro and represents the cost of the annual contribution to the Interbank Deposit Protection Fund (FITD), of which 7,9 million Euro relates to the Parent Company Banca Ifis and the remaining 0,2 million Euro to the subsidiary Banca Credifarma. The comparative balance at 31 December 2023, amounting to 11,2 million Euro, represents the cost of the annual contribution made to the Interbank Deposit Protection Fund (FITD) and the contribution under the accumulation plan of the Single Resolution Fund (SRF) made in FY 2023. As far as the SRF is concerned, nothing was required in terms of contributions at 31 December 2024, the savings plan target having been reached in 2023.
Net allocations to provisions for risks and charges at 31 December 2024 amount to 0,5 million Euro, while the balance at 31 December 2023 recorded net allocations to provisions made of 6,9 million Euro. FY 2024 performance was characterised by releases to be attributable to the Parent Company Banca Ifis for 9,1 million Euro relating to disputes connected to the former Aigis Banca (for 5,8 million Euro) and to the settlement of a dispute relating to the former Interbanca (for 3,3 million Euro), which were more than offset by provisions totalling 9,6 million Euro, of which 7,5 million Euro to cover risks related to outstanding disputes on tax credits for superbonus and other building tax bonuses (recognised in the balance sheet item "Other assets") and 1,6 million Euro mainly related to guarantees for indemnities in connection with a transaction involving the sale of a shareholding.
The item "Non-recurring expenses and income" shows a balance as at 31 December 2024 of 610 thousand Euro and refers to non-recurring operating costs pertaining to FY 2024 connected to the integration of Revalea within the Banca Ifis Group, including those relating to its merger by incorporation into Ifis Npl Investing which took place in 2024 (for more details see "Part G - Business combinations" of the Notes to the Consolidated Financial Statements). These costs are down from the comparative figure of 2,9 million Euro at 31 December 2023, which included ICT costs prior to the acquisition and costs directly linked to the operation then completed in October 2023.
Pre-tax profit from continuing operations amounts to 245,3 million Euro, up 3,3% compared to 31 December 2023.
Income tax at 31 December 2024 comes to 82,2 million Euro and the tax rate is 33,49%, up from the figure of 31,84% recorded at 31 December 2023 due to the repeal of the aid for economic growth (“ACE”) benefit as of FY 2024.
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The net profit attributable to the Parent company amounts to 161,6 million Euro, up 1,5 million Euro on the 2023 figure.
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Main risks and uncertainties
Taking into account the business carried out and the results achieved, the Group's financial position is proportionate to its needs. Indeed, the Group's financial policy is aimed at favouring funding stability and diversification rather than the immediate operating needs.
The main risks and uncertainties originated by the current conditions of the financial markets, deriving both from international tensions and the geo-political context observed, made even more uncertain by the outcome of the recent US elections, as of today do not present elements of particular criticality for the Group's financial equilibrium and in any case are considered such, from a prospective point of view, as not to generate doubts on the Group's ability to continue operating as a going concern.
Refer to Part E of the Notes to the Consolidated Financial Statements for information on the Banca Ifis Group's risks typical of the banking sector, as well as to what is set forth in the Directors' Report on the Group in the section "Business outlook".
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Banca Ifis shares
The share price
The ordinary shares of Banca Ifis S.p.A. 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 | 31.12.2024 | 31.12.2023 | 31.12.2022 | 31.12.2021 | 31.12.2020
Share price at year-end | 21,18 | 15,70 | 13,31 | 17,07 | 9,18

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 | 31.12.2024 | 31.12.2023 | 31.12.2022 | 31.12.2021 | 31.12.2020
Share price at year-end | 21,18 | 15,70 | 13,31 | 17,07 | 9,18
Equity attributable to the Parent Company per share | 32,95 | 32,01 | 30,24 | 29,85 | 28,50
Price/book value | 0,64 | 0,49 | 0,44 | 0,57 | 0,32

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 | 31.12.2024 | 31.12.2023 | 31.12.2022 | 31.12.2021 | 31.12.2020
Number of shares outstanding at year end (in thousands)(1) | 52.572 | 52.468 | 52.433 | 53.472 | 53.460

(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 | 31.12.2024 | 31.12.2023
Net profit for the year attributable to the Parent Company (in thousands of Euro) | 161.578 | 160.110
Average number of outstanding shares (1) | 52.529.787 | 52.456.037
Average number of shares outstanding for diluted earnings per share purposes | 53.383.843 | 52.567.897
Earnings per share (EPS) | 3,08 | 3,05
Diluted earnings per share (EPS) | 3,03 | 3,05

(1) Outstanding shares are net of treasury shares held in the portfolio.
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 2024 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 2024, an interim dividend of
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
1,20 Euro per share had already been distributed for FY 2024. The total 2024 dividends (interim payment and balance) thus amount to 2,12 Euro per share, corresponding to a payout ratio of 69,0%.

Payout ratio (in thousands of Euro) | 2024 | 2023 | 2022 | 2021 | 2020
Net profit attributable to the Parent Company | 161.578 | 160.110 | 141.086 | 100.582 | 68.804
Parent Company dividends (1) | 111.450 | 110.240 | 73.418 | 49.811 | 25.132
Payout ratio (1) | 69,0% | 68,9% | 52,0% | 49,5% | 36,5%

(1) The figures for FY 2024 comprise the total of 1,20 Euro per share distributed as an interim dividend in November 2024 and 0,92 Euro per share as a proposal for a final dividend for the FY 2024 prepared by the Board of Directors of Banca Ifis.
Shareholders
The share capital of the Parent company at 31 December 2024 amounts to 53.811.095 Euro and is broken down into 53.811.095 shares for a nominal amount of 1 Euro each.
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:
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”;
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
•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:
–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;
–Director Human Resources;
–General Counsel Manager;
–Head of Investor Relations & Corporate Development;
–CEO of Ifis Npl Servicing S.p.A.;
–General Manager of Ifis Npl Servicing S.p.A.;
–CEO of Banca Credifarma S.p.A.
•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.
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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 visit the Media section of the institutional website www.bancaifis.it to view all press releases.
Below is a summary of the most significant events that occurred during the year.
SREP conclusion on capital requirements: Banca Ifis well above Bank of Italy guidelines
On 29 January 2024, the Banca Ifis Group received notice from the Bank of Italy of the conclusion of the periodic prudential review process ("SREP decision") conducted on the Group.
The Bank of Italy has identified the following capital requirements (equal to the sum of the Overall Capital Requirement and Pillar 2 Guidance) for 2024 on a consolidated basis:
•CET1 Ratio of 9,00%;
•Tier 1 Ratio of 10,90%;
•Total Capital Ratio of 13,30%.
The above capital requirements include the Target component of the Pillar 2 Guidance of 1,00%.
Issue of a 400 million Euro bond maturing in 5 years
On 20 February 2024, Banca Ifis completed the placement of a Senior Preferred Unsecured bond issue under its EMTN programme for an amount of 400 million Euro. The transaction was intended for institutional investors.
Specifically, the issue has a maturity of five years, with settlement date of 27 February 2024. The reoffer price is 99,362, for a return at maturity of 5,65% and a coupon that is payable annually in the amount of 5,50%. The bond was listed on Euronext Milan and has an expected rating of BB+ by Fitch and Baa3 by Moody's.
The bond placement is part of the EMTN funding programme envisaged in the Group's Business Plan for the three-year period 2022-2024, which estimates 2,5 billion Euro of new placements.
The Shareholders' Meeting has approved the 2023 Financial Statements and the distribution of a dividend of 0,90 Euro per share for the year
The Shareholders’ Meeting of Banca Ifis S.p.A., which met on 18 April 2024 in single call, chaired by Ernesto Fürstenberg Fassio in accordance with the applicable provisions, and hence in the manner set out in Art. 106 of Decree-Law No. 18 of 17 March 2020, approved, in an ordinary session:
•the Financial Statements as at 31 December 2023;
•the allocation of net profit, taking into account the exercise of the capitalisation option provided for by Article 26, paragraph 5-bis of Decree Law No. 104/2023 (converted with amendments by Law No. 136 of 9 October 2023), to the non-distributable reserve in the amount of 23.905.112 Euro (amount equal to two and a half times the tax calculated pursuant to the aforementioned Article 26 of Decree Law No. 104/2023);
•the distribution of a balance on the dividend for FY 2023 of 0,90 Euro, gross of withholding taxes, for each of the Banca Ifis shares issued and outstanding. This 2023 dividend balance was paid with ex-dividend date 20 May 2024, record date of 21 May 2024 and payment date of 22 May 2024;
•Section I of the document “Report on Remuneration Policy and Remuneration Paid” prepared in accordance with Art. 123-ter of Legislative Decree No. 58/1998. The Shareholders’ Meeting also resolved in favour of Section II of the aforementioned document relating to the implementation of remuneration policies during FY 2023;
•the proposal by the majority shareholder La Scogliera S.A. to appoint Nicola Borri as a new independent director, to replace the resigning director Sebastien Egon Fürstenberg, who, as honorary chairman,
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
continues to participate in corporate and board life under the terms of the Articles of Association. Prof. Borri will remain in office until the natural expiry of the Board of Directors in office, i.e. until the Shareholders’ Meeting called to approve the financial statements for FY 2024.
Restructuring of the securitisation “Ifis ABCP Programme” of factoring receivables worth 1,15 billion Euro
On 28 June 2024, Banca Ifis successfully completed the restructuring of the securitisation called “Ifis ABCP Programme”, worth 1,15 billion Euro involving proprietary factoring receivables. The securitisation was initially finalised on 13 October 2016 and relates to the assignment, on a revolving basis, of receivables due from private customers arising from the Group's ordinary factoring activities, acquired both with and without recourse and of which the assigned debtor has been notified of the assignment.
The restructuring has led Banca Ifis, which assumed the role of Lead-Arranger and Calculation Agent, to improve the economic conditions of the securitisation and to enlarge the investor base from six to eight institutions. The banks already involved in the project were joined by Cassa Depositi e Prestiti (CDP), whose commitment aims to provide new finance to SMEs, and Natixis CIB, the latter also assuming the role of co-arranger.
This restructuring transaction did not have any impact on the Banca Ifis Group's economic and equity position.
1,5 billion Euro TLTRO lines repaid in 2024
With regard to TLTRO funding, it should be noted that during the year, thanks to the Group's solid liquidity position in reserves and free assets that can be financed by the ECB, we continued with the early repayment, with respect to the September 2024 maturity date, of the TLTRO III lines for a further nominal amount of 1.125 million Euro, also completing well in advance all the managerial actions aimed at the repayment of the remaining nominal amount of 411,5 million Euro, which took place on 25 September 2024 and brought the amount of TLTRO III lines repaid to a nominal amount of 2.036,5 million Euro.
It should be noted that, as early as the end of 2023, the Group put in place the managerial actions preparatory to the replacement of this funding component through senior bond issues, the increase of retail funding with a multi-channel strategy and targeted marketing campaigns as well as the restructuring of securitisation transactions on the Group's portfolios. As a result, these actions effectively changed the Group's funding structure, which at 31 December 2024 consists of 60,4% in amounts due to customers (49,2% at 31 December 2023), 12,4% in debt securities issued (23,0% at 31 December 2023) and 27,2% in payables due to banks (27,8% at 31 December 2023).
Distribution of a 2024 interim dividend of 63,1 million Euro (1,20 Euro per share)
On 7 November 2024, the Banca Ifis Board of Directors resolved to distribute an interim dividend for 2024 totalling 63.083.736,00 Euro, i.e. equal to 1,20 Euro (gross of withholding taxes) for each of the 52.569.780 Banca Ifis shares issued and outstanding as of such date (and therefore excluding treasury shares held by the Bank). The interim dividend 2024 was paid with ex-dividend date 18 November 2024, record date of 19 November and payment date of 20 November 2024. The report by the Board of Directors and the accounting statement at 30 September 2024 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 2024 - 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 7 November 2024, 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.
Merger by incorporation of Revalea into Ifis Npl Investing
On 11 November 2024, the merger by incorporation of Revalea S.p.A. into Ifis Npl Investing S.p.A. became effective, with effect for accounting and tax purposes backdated to 1 January 2024. The integration represents the completion of the project started with the acquisition of Revalea in October 2023, and is part of the initiatives of the 2022-2024 Business Plan aimed at further simplifying and specialising the organisational structure of the
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Banca Ifis Group and, in particular, that of the Npl Segment. For more details on this merger, refer to Part G "Business combinations" of the Notes to the Consolidated Financial Statements.
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Subsequent events
Voluntary takeover and exchange offer for all shares of illimity Bank submitted
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, which is conditional upon obtaining the relevant regulatory authorisations and the fulfilment of the established conditions, is aimed at the acquisition by Banca Ifis of 100% ownership of the shares of illimity Bank listed on Euronext Milan, Euronext STAR Milan Segment. 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 is composed of:
•0,1 newly issued shares of Banca Ifis for each share of illimity Bank and
•a cash component of 1,414 Euro.
On 27 January 2025, Banca Ifis filed with Consob the offer document pursuant to Articles 102 and 106, paragraph 4 of the Consolidated Law on Finance concerning the entirety of the ordinary shares of illimity Bank. Furthermore, Banca Ifis announced that it has submitted to the competent Authorities the applications and/or communications to obtain the authorisations required under the regulations applicable to the offer, pursuant to and in accordance with Article 102, paragraph 4, of the TUF and Article 37-ter, paragraph 1, letter b), of the Issuers' Regulations.
If the offer is successful, the transaction, which envisages the subsequent merger by incorporation of illimity Bank into Banca Ifis, may enable the Banca Ifis Group to accelerate its growth path and consolidate its leadership in the Italian speciality finance market, expanding its SME customer base, entering new businesses and segments, and maintaining its leadership in Npls.
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Information on international tensions
This section aims to provide a specific disclosure on the impacts generated by international tensions, above all with reference to the Middle East and the continuing Russia-Ukraine conflict.
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.
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Business outlook
In 2024, Banca Ifis reported a profit attributable to the Parent Company of 162 million Euro, confirming its strong economic, equity and financial profile. In these three years, Banca Ifis has successfully completed the 2022-2024 Business Plan, exceeding all its financial targets and moving increasingly towards digitalisation and sustainability. The cumulative profit achieved over the three-year period was 463 million Euro, 12% above the Plan targets. Shareholder remuneration, through the new dividend policy approved in 2023 and the distribution of constant dividends, allows for a payout ratio of around 70%. These results were achieved while keeping the Group's solid capital base intact, with a CET1 of 16,1%, some 100 basis points above the Plan target of 15,1%.
The macroeconomic scenario for FY 2025 is less favourable for the Italian banking sector. Demand for credit from businesses remains modest and companies have adequate long-term financing in an environment of moderate economic growth. The Banca Ifis Group remains focused on profitability and in 2024 loan growth was above the market average with average spreads increasing compared to the previous year.
In 2025, the European Central Bank is expected to further reduce interest rates. In this context, the Group reduced its sensitivity to interest rate reductions by increasing the duration of its securities portfolio and increased fixed-rate disbursements, especially in the Leasing Area.
There were some signs of deterioration in asset quality, concentrated in specific sectors. In this context, the Group increased its coverage of specific exposures. However, the Group's asset quality risk is mitigated by diversification across sectors and companies, short-term loans and careful collateral management.
The Npl Segment shows more challenging market dynamics, highlighting a limited supply of Npls for purchase and increased competition on sales processes. Following the acquisition of Revalea in October 2023, Banca Ifis met the Npl acquisition targets of the 2022-2024 Business Plan and adopted a more selective approach to new Npl acquisitions, focusing on the recovery of the existing Npl stock.
The Banca Ifis Group closely monitors market risks and opportunities and also expects to offer attractive remuneration for its shareholders in 2025, assuming no significant deterioration in the macroeconomic and geopolitical environment.
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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 2024.
With regard to the parent company Banca Ifis, reference is made to the '2024 Report and Financial Statements' of Banca Ifis included in this publication.
Ifis Npl Investing
The 2024 figures also include the contribution of Revalea S.p.A., which was acquired by Mediobanca Group on 31 October 2023 and merged into Ifis Npl Investing during 2024.

STATEMENT OF FINANCIAL POSITION DATA (in thousands of Euro) | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | ABSOLUTE | %
Total assets | 1.689.156 | 1.682.651 | 6.505 | 0,4%
Receivables due from customers measured at amortised cost | 1.512.263 | 1.423.626 | 88.637 | 6,2%
Equity | 560.767 | 548.106 | 12.661 | 2,3%

INCOME STATEMENT DATA (in thousands of Euro) | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | ABSOLUTE | %
Net banking income | 116.290 | 104.257 | 12.033 | 11,5%
Net credit risk losses/reversals | 130.477 | 130.949 | (472) | (0,4)%
Operating costs | (132.989) | (134.561) | 1.572 | (1,2)%
Profit (loss) for the year | 75.620 | 66.924 | 8.696 | 13,0%

The changes in assets between the end of 2024 and the end of 2023 are mainly due to the contribution of the former Revalea following the merger.
As far as the income statement figures are concerned, Ifis Npl Investing posted a net profit of 75,6 million Euro as at 31 December 2024, an increase of 12,9% compared to the figure of 66,9 million Euro as at 31 December 2023, also due to the contribution of the former Revalea. In particular, growth is driven by net interest banking income, up 12,0 million Euro (+11,5%) year-on-year, thanks to higher interest income at amortised cost (+14,7 million Euro), which more than offset increases in the cost of funding and commission expenses (which in 2024 also include, as a result of the merger, the commissions incurred for the management of the former Revalea's portfolio paid to a third-party servicer).
Against these trends in net banking income, there was substantial stability in the credit cost and operating costs, despite the presence of Revalea's contribution in the 2024 figures. The reason stems mainly from the fact that the 2023 operating cost figure included significant non-recurring costs incurred by Ifis Npl Investing for the acquisition and integration of Revalea, which was merged in 2024. Specifically, these costs amounted to 9,8 million Euro in 2023, compared to 0,5 million Euro for 2024.
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Banca Credifarma

STATEMENT OF FINANCIAL POSITION DATA (in thousands of Euro) | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | ABSOLUTE | %
Total assets | 719.482 | 719.658 | (176) | 0,0%
Receivables due from customers measured at amortised cost | 698.870 | 684.711 | 14.159 | 2,1%
Equity | 129.154 | 116.130 | 13.024 | 11,2%

INCOME STATEMENT DATA (in thousands of Euro) | AMOUNTS | CHANGE
31.12.2024 | 31.12.2023 | ABSOLUTE | %
Net banking income | 36.734 | 34.296 | 2.438 | 7,1%
Net credit risk losses/reversals | (1.404) | 994 | (2.398) | n.s.
Operating costs | (15.593) | (14.283) | (1.310) | 9,2%
Profit (loss) for the year | 13.020 | 14.730 | (1.710) | (11,6)%

As at 31 December 2024, Banca Credifarma reported a net profit of 13,0 million Euro, compared to 14,7 million Euro recorded in 2023 (-11,6%), a year in which, however, non-recurring write-backs for the collection of non-performing loans in the amount of 1,7 million Euro and the capital gain from the sale of a property owned by the Bank in the amount of 1,0 million Euro were recognised.
Net banking income totals 36,7 million Euro, up 7,1% from 2023, mainly thanks to the contribution made by net interest income, which increases by 9,2%, coming to 31,1 million Euro. The increase in interest income of 8,6% compared to 2023, mainly due to the increase in interest on mortgages, offset the parallel increase in interest expenses, which accrued on deposits from other banks, the Emma securitisation programme and customer current accounts.
Net credit risk losses on loans amount to 1,4 million Euro as at 31 December 2024 and increase compared to the previous year's figure, when net write-backs of 1,0 million Euro were recorded, mainly generated by significant collections of non-performing and probable default positions.
Operating costs amount to 15,6 million Euro, an increase of 9,2% compared to the figure of 14,3 million Euro in 2023, mainly due to higher personnel costs (7,3 million Euro in 2024 compared to 6,7 million Euro in 2023).
As a result of these dynamics at the level of an increase in net banking income, more than offset by the increase in credit cost and the increase in operating costs, Banca Credifarma's 2024 profit worsens by 1,7 million Euro compared to the 2023 figure.
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Sustainability Statement
It has always been in the DNA of Banca Ifis to generate value for all stakeholders. This objective is translated into an integrated approach of sustainability in the Group's strategic and operational framework, according to a double bottom line approach inspired by the Chair. Thanks to the three-year D.O.E.S. business plan, the Bank's sustainable transformation was translated into concrete initiatives on all E-S-G dimensions, which enabled it to achieve important results, which are detailed and described in the Group's Sustainability Statement.
During 2024, the commitments set out in the D.O.E.S. plan were brought to fruition, with an approach aimed at generating a tangible impact for the benefit of companies, the territory and people, thanks to a comprehensive plan in line with the UN 2030 Agenda and the 17 Sustainable Development Goals.
Aware that ESG topics can represent important growth opportunities, the Group has integrated them into its business through financial products and services to support SMEs in their sustainable transition path. Sustainability is also a prerequisite for our business model with regard to the recovery of impaired loans, in the knowledge that recovery activities can represent an opportunity for financial re-inclusion. This belief gave rise to an ambitious project in the Npl sector, which aims to strengthen the concept of 'social banking' by defining initiatives to ensure a sustainable approach, as described in more detail in the document.
Starting from the experience accumulated over the years through the Consolidated Non-Financial Statement, this Sustainability Statement responds to the new regulatory requirements launched at a European level in the field of ESG disclosure, representing not just mere reporting but an opportunity to represent the Group's sustainability strategy to stakeholders, highlighting 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, with objectives to decarbonise its loan portfolio, as well as a particular 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 range of products designed for sustainable mobility and energy transition, such as Ifis Leasing Green leasing products, including the leasing and rental of photovoltaic panels, charging stations and hybrid and electric cars.
With reference to social issues, which have always been a distinctive element of the Group ever since the launch of Kaleidos, the Social Impact Lab set up in 2022 on the impetus of the Chair, the three-year plan period allowed the full deployment of Banca Ifis's strategic vision: more than 40 projects with a high social impact were developed with a commitment of 7 million Euro, up from the 6 million Euro originally envisaged in the plan. 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 generated more than five Euro of social value for the general public. Commitment in the social sphere has also been substantiated with greater integration in the business, with the aforementioned 'Social Banking Npl' project, and with the launch of a leasing and rental product for healthcare devices dedicated to Southern Italy to support personal well-being and raise awareness of health and scientific research issues, with a particular focus on the most disadvantaged areas of the country. This commitment is also reflected in an articulated plan in favour of employees and in the area of diversity, fairness 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.
Also in the social sphere, the commitment to the art world was strengthened in 2024, through Ifis art, a project that brings together all the initiatives carried out by the Bank to promote art, culture, contemporary creativity and their values: from the corporate collection to the International Sculpture Park, to the project to recover Banksy's work and restore the Palazzo San Pantalon that houses it.
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Aspects of good governance underpin the Group's activities, not only with reference to elements of regulatory compliance and integrity and ethics, but also with a focus on transparency towards stakeholders, as evidenced by the depth and comprehensiveness of the Sustainability Statement and further voluntary disclosure efforts aligned to international standards of reference, such as the TCFD report, now in its second edition in 2024.
The Group's commitment, recognised by all stakeholders, has led to important accolades, such as the award as the best ESG programme in Europe in the Small-Mid Cap segment, assigned by the independent research company Extel Institutional Investors, and the upgrade to 'AA' of the ESG rating assigned by MSCI, which includes Banca Ifis among the leaders in the sector.
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 process is a key step towards increasing corporate transparency and integrated sustainability management in the Bank's operations, in line with the Group's strategy, the UN 2030 Agenda, the goals of the Paris Agreement and the transition to a sustainable economy.

Consultation guide
1. General disclosures
2. Environment
3. Social
4. Governance
5. Other sustainability information

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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 Sustainability Statement has been prepared at a consolidated level by the Parent Company Banca Ifis S.p.A. and includes all companies consolidated on a line-by-line basis in the Consolidated Financial Statements with reference to the reporting period between 1 January 2024 and 31 December 2024.
More specifically, the following entities are included in the reporting2:
•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.
The scope of the Sustainability Statement coincides with the scope of financial reporting, ensuring consistency and comparability between the non-financial and financial information reported in the Consolidated Financial Statements3.
[BP-1 DP 5c]
The information contained in the Sustainability Statement includes the significant impacts, risks and opportunities (hereinafter also referred to as “IROs”) associated with Banca Ifis that emerged as material from the 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 services and, downstream, the customers reached through business relations.
For more details on the materiality assessment, please refer to the section "double materiality assessment" (see 1.1 ESRS 2 - General Information, section 1.1.4 Managing Impacts, Risks and Opportunities: Double materiality assessment, IRO-1 DP 53). 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.
2 It should be noted that there are no subsidiaries of Banca Ifis, which are subject to the scope of application of Legislative Decree 125/2024 on an individual basis. It is specified that no operational control was identified for any of the companies consolidated using the equity method (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.
3 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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Disclosures in relation to specific circumstances
[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 10a]
The Group analyses and reports data on the value chain, upstream and downstream, in order to meet the E1-6 reporting requirements “Gross GHG emissions of Scope 1, 2, 3 and total GHG emissions”, reviewing the mapped and reported categories periodically.
[BP-2 DP 10b]
In particular, with reference to Scope 3 emissions, the categories included in the scope of reporting are: no. 1 "Purchased goods and services", no. 6 "Business travel" and no. 15 "Investments" identified by the GHG Protocol. For category no. 1, issues 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 Environmental Extended Input Output (EEIO). For category no. 6, emissions related to employee business travel, including air travel, train travel, car rental and other means of transport, calculated on the basis of data provided by ticketing service providers and related emission factors, are considered for Italian locations; for foreign locations, emissions were calculated by applying the 'Spend-Based' methodology. Finally, for category no. 15, funded issues from the investment portfolio are reported, calculated using internal sector proxies and derived from consolidated databases such as the Bank of Italy, European Environmental Agency and Bloomberg.
[BP-2 DP 10c]
The accuracy of the metrics calculated using sectoral proxies is ensured by the authoritative sources used at national, European or international level: as previously mentioned, the Environmental Extended Input Output (EEIO) emission factors provided by Eurostat with reference to category 1 emissions, the Bank of Italy and the European Environmental Agency with reference to category 15 emissions were considered.
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 and category 15. 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.
[BP-2 DP 10d]
Banca Ifis aims to ensure increasingly accurate reporting, fostering, where possible, the use of timely data over estimates, in accordance with market best practice.
[BP-2 DP 11a]
To this end, 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. Consequently, there are no causes of uncertainty in the estimates used and the results produced.
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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 leading specialised players in the Italian impaired loans sector with a proprietary portfolio of 21,6 billion Euro (GBV) as at 31/12/2024. 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.
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.
The number of employees by geographical area is shown below:
[SBM-1 DP 40aiii]

Geographical area | Number of employees (headcount)
Italy | 1.983
Poland | 14
Romania | 16
Total employees | 2.013

[SBM-1 DP 40a,ai,aii,e,g]
The 2022-2024 D.O.E.S (Digital, Open, Efficient, Sustainable) Business Plan defined the Group's strategic priorities for the three-year period. Its objectives include increasing industrial profit, strengthening the competitive positioning and creating value for all stakeholders. The plan is based on four pillars: digitisation, openness to partnerships, efficiency and sustainability. The 'S - Sustainable' pillar is dedicated to the description of strategic elements that relate to sustainability issues, concretely translated into objectives under the three main headings of environmental, social and governance (ESG).
Concrete initiatives include offering solutions for sustainable mobility and energy efficiency for SMEs, through subsidised loans and scoring tools to assess customers' ESG performance. At the same time, with reference to the Npl (non-performing loans) business, a project was implemented to create a sustainable collection model4 whose ultimate goal is the financial re-inclusion of households and businesses.
4 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 double bottom line approach promoted by the Chairman and his focus on sustainability.
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[SBM-1 DP 40f]
Therefore, with reference to the Group's main businesses, the plan sets out the aim of supporting the sustainable transition of its SME customers, through dedicated products and services, and to strengthen the sustainable debt collection model. The Group's products and services related to sustainability matters 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).
In addition, the Group's attention to sustainability will be further strengthened in the future Business Plan.
[SBM-1 DP 42a]
On the basis of the business model described above and the corporate structure as at 31 December 2024, 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 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, foundations 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.
Simultaneously, 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.
•Finally, Banca Ifis actively supports foundations and the third sector, working with non-profit and non-profit organisations 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, which are set out below.
Supporting SMEs 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 2024 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. The project, called 'Ifis Green', 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:
•Ifis Leasing Green, 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 new 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, 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.
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.
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The Group's objective is to support customers and stakeholders in addressing social and environmental challenges, supporting their investments and ensuring financial strength.
Interests and views of stakeholders
[SBM-2 DP 45aiv,b]
Transparency and dialogue have always been the hallmarks of Banca Ifis Group’s approach to communication. Through constant interaction with customers, investors, shareholders and employees, 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 ensuring 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 involvement of relevant internal and external stakeholders in the 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 Information, 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 involvement of several strategic internal functions in order to ensure a thorough analysis of impacts, risks and opportunities (IROs). 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.
[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, the Risk and Control 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]
Maintaining a relationship and dialogue with the financial market is also a strategic component for the Group. This is why the Parent Company’s Investor Relations & Corporate Development Department maintains relationships with shareholders and investors, guided by the principles of fairness, transparency, collaboration, and absolute respect for the independence of their respective roles.
[SBM-2 DP 45ai]
In addition to shareholders and investors, the Group's main stakeholder categories also include employees, customers, local communities, agents, institutions, industry associations, the media and suppliers.
[SBM-2 DP 45aiii]
The Parent Company's Communication, Marketing, Public Affairs & Sustainability Department manages and coordinates the dialogue and involvement of the above-mentioned stakeholders, through the most appropriate channels and methods, chosen from time to time on the basis of needs. Furthermore, with particular reference to customers, their involvement was managed in cooperation with other parent company departments such as Marketing & Business Strategy.
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[SBM-2 DP 45a,aii]
Specifically, 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;
•internal storytelling with news dedicated to the Bank’s internal initiatives;
•internal live streaming (Ifis Cappuccino, Ifis Talks);
•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;
•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);
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Stakeholder category
Engagement activity
•dedicated meetings;
•press releases.
Community
•support to social interventions or projects, partnerships to local initiatives;
•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, 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;
[S3.SBM-2 DP 7]
•with reference to local communities, at the impetus of the Chair, Kaleidos was created, the Social Impact Lab through which the Group promotes and protects the rights of the communities concerned through the development of partnerships and collaborations with third sector entities and non-profit organisations to support the communities, people and territories in which it operates;
[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.
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;
•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.
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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.
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.
Role of the administrative, management and supervisory bodies
[GOV-1 DP 21a,d,e]

Members of the administrative, management and supervisory bodies | UoM | 2024 (1)
Number of executive members | No. | 1
Number of non-executive members | No. | 15
Percentage of members of administrative, management and supervisory bodies by gender and other aspects of diversity | % | 0

(1)The reported figures of 16 members correspond to 13 members of the Board of Directors and 3 members of the Board of Statutory Auditors.
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Members of the Board of Directors | UoM | 2024
Board of Directors' gender diversity ratio (1) | % | 54
Percentage of independent Board members (2) | % | 77

(1)The ratio is calculated by dividing the number of female members of the Board of Directors by the total number of members.
(2)The percentage represents independent, non-executive members of the Board. This ratio is calculated by dividing the number of independent board members (10) by the total number of board members (13).
Board of Directors

Office | Members | Date of first appointment (1) | In office
from | to
Chairman | Ernesto Fürstenberg Fassio | 2019 | 28/04/2022 | Approval of the 2024 financial statements
Chief Executive Officer | Frederik Herman Geertman | 2021 | 28/04/2022 | Approval of the 2024 financial statements
Independent Director | Nicola Borri | 2024 | 18/04/2024 | Approval of the 2024 financial statements
Independent Director | Monica Regazzi | 2021 | 28/04/2022 | Approval of the 2024 financial statements
Independent Director | Paola Paoloni | 2022 | 28/04/2022 | Approval of the 2024 financial statements
Independent Director | Roberta Gobbi | 2022 | 28/04/2022 | Approval of the 2024 financial statements
Independent DirectorDeputy Chairman | Simona Arduini | 2019 | 28/04/2022 | Approval of the 2024 financial statements
Independent Director | Monica Billio | 2019 | 28/04/2022 | Approval of the 2024 financial statements
Independent Director (LID) | Antonella Malinconico | 2016 | 28/04/2022 | Approval of the 2024 financial statements
Independent Director | Roberto Diacetti | 2019 | 28/04/2022 | Approval of the 2024 financial statements
Independent Director | Beatrice Colleoni | 2019 | 28/04/2022 | Approval of the 2024 financial statements
Independent Director | Giovanni Meruzzi | 2022 | 28/04/2022 | Approval of the 2024 financial statements
Director | Luca Lo Giudice | 2019 | 28/04/2022 | Approval of the 2024 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
Chairman | Andrea Balelli | 2022 | 28/04/2022 | Approval of the 2024 financial statements
Standing Auditor | Franco Olivetti | 2019 | 19/04/2019 | Approval of the 2024 financial statements
Standing Auditor | Annunziata Melaccio | 2022 | 28/04/2022 | Approval of the 2024 financial statements
Alternate Auditor | Marinella Monterumisi | 2019 | 19/04/2019 | Approval of the 2024 financial statements
Alternate Auditor | Emanuela Rollino | 2022 | 28/04/2022 | Approval of the 2024 financial statements

(1)This means the date the Chairman/Auditor was first appointed (ever) to the Board.
[GOV-1 DP 21b]
There is no representation of employees5 or other employees in the administration, management and supervisory bodies6. 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]
In order to ensure the overall and 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.
5 “Employee” means a natural person who, in accordance with national law or practice, has an employment relationship with the enterprise.
6 “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.
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Areas of expertise | Directors possessing the relevant professionalism/competence
Banking business and banking and financial activities and products | 85%
Internal control systems and risk management and control methodologies | 85%
Industry regulation | 77%
Business management processes | 77%
Dynamics of the economic and financial system | 69%
Risk management and control methodologies | 69%
Knowledge of organisational structure and information systems | 69%
Corporate governance | 62%
Accounting and financial reporting | 46%

In addition to what is represented in the table above, the current board of directors also includes the following and additional skills, professionalism and experience in the following areas with respect to the external reference standards: knowledge of digitisation, innovation and cyber security issues, expertise and knowledge in the ESG area, managerial skills, mathematical-statistical skills, risk management skills, international experience7.
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
Financial markets | 80%
Regulation in the banking and finance industry | 80%
Strategic planning and guidelines | 60%
Organisational and corporate governance structures | 100%
Risk management | 60%
Internal control systems and other operating mechanisms | 100%
Banking and financial activities and products | 80%
Accounting and financial reporting | 80%
Information technology | 20%

7 Competencies are measured in the annual self-assessment process with specific reference to the European context, due to the presence of activities in Italy, Poland and Romania.
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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 specific knowledge of Banca Ifis, experience in Banca Ifis's core banking sector, knowledge of information and communication technology (ICT), knowledge of ESG with particular reference to the impact on lending, knowledge of remuneration policies, knowledge of management processes and business organisation, knowledge of internal control systems and risk management methodologies.
Industry regulations require that the competences of the exponents are relevant to the Bank's business and, therefore, are also significant to the material impacts, risks and opportunities of the business. In addition, it should be noted that each body (Board of Directors, Board Committees, Board of Statutory Auditors, Supervisory Body) has a budget that can be activated autonomously. As far as training is concerned, here too the industry regulations make it mandatory to implement an annual training plan. The programme is established downstream of the self-assessment process to ensure the ongoing updating and development of the skills required to perform the role and, therefore, topics in recent years have included sustainability, involving both external speakers (e.g. university professors, experts) and internal Group speakers.
[GOV-1 DP 22a]
Governance Structure in Sustainability
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);
•Deputy 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 Deputy Chairman;
•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 to ensure 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;
•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 22b]
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.
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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. At the meeting of 19 December 2024, 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 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 Board of Directors is regularly updated on the Group's objectives and results in the area of sustainability.
[GOV-1 DP 22c]
More specifically, during the meeting of 27 November, the Sustainability Committee approved the results of the double materiality assessment preparatory to the 2024 Sustainability Statement, which were then approved by the Board of Directors. In addition, 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. In the course of 2024, 16 meetings of the Board of Directors of Banca Ifis were held, and in ten of these, topics related to sustainability issues were discussed.
[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 relevant 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, ensures 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 Sustainability Statement.
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[GOV-1 DP 22d]
At a strategic level, the decision-making bodies, in cooperation with the relevant functions, identify the objectives to be implemented in the area of sustainability, ensuring a coherent and integrated approach, including the adoption of 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.
[GOV-1 DP 23]
In particular, industry regulations applicable to banks require the Board of Directors to deliberate annually on a training plan to supplement any areas and subjects to be implemented. The plans are prepared taking into account the results of the self-assessment on the functioning of the body itself. Specifically, the training plans provided to the Bank's corporate officers are usually organised with a theoretical part, with the support of external structures such as leading training institutes, and a practical part, conducted by the Bank's internal structures. In this respect, there is a well-established competence in sustainability issues in both the board of directors and the control body. In any case, in order to continuously implement, deepen and update these skills, they have been covered in training meetings over the past three years.
[GOV-1 DP 23a]
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 second year of the mandate, and subsequently also in the self-assessment for the third and final 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 cyber security; ESG; and managerial skills.
As part of the third and final 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 2024 for members of corporate bodies, focusing on the topics:
•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 | No. | 6 | 6 | 0
Diversity & Inclusion management | No. | 8 | 4 | 0
Ethics and corporate social responsibility | No. | 8 | 4 | 0
Sustainable development and fight against climate change | No. | 8 | 4 | 1
ESG and sustainable finance | No. | 10 | 3 | 0
Procurement and supply chain management | No. | 2 | 9 | 1
ESG regulation and standards | No. | 10 | 3 | 0

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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
[GOV-1 DP 23b]
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 fact, the courses are 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 specific reality of the Bank and the Group.
[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.
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]
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 year8. 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 Information, 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.
8 During 2024, 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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[GOV-2 DP 26b]
In this context, 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-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.
Integration of sustainability-related performance in incentive schemes
[GOV-3 DP 29,a]
The Banca Ifis Group's remuneration and incentive policies are defined in accordance with the Group's culture and values, long-term strategies, and prudent risk management policies, consistently with the provisions concerning the prudential control process. More specifically, the Policy was defined taking into account the remuneration and working conditions of its employees. Sustainability goals are included in the management remuneration scheme, as further described below.
[GOV-3 DP 29b]
The Remuneration Policy, defined annually by the Parent Company, is designed to align the behaviour of management and staff with the interests of all stakeholders, promoting the achievement of sustainable medium- to long-term objectives. Special attention is paid to sustainability goals, which integrate ESG factors, within the framework of prudent risk management, both current and future. At the same time, the Policy aims to attract, motivate and retain professionals with the necessary skills to effectively pursue corporate objectives.
This approach is fully consistent with corporate values and prudent risk management, and includes targeted strategies for monitoring and managing impaired loans, in line with the provisions of the prudential control process. In this way, the Policy contributes to strengthening the operational, economic and financial soundness of the company, promoting the sustainability of the Banca Ifis Group and consolidating a long-term oriented vision.
The Banca Ifis Group's incentive schemes constitute variable remuneration, thereby meaning:
•any form of remuneration whose recognition or payment depends on performance, excluding severance pay and indemnity in lieu of notice, if determined within the limits provided for by law;
•any other form of remuneration not uniquely identifiable as fixed remuneration.
Remuneration targets are structured on two time horizons: short term and medium to long term.
A short-term incentive plan, known as the Short Term Incentive Plan (STI), is drawn up annually, the recognition of which is conditional on the opening of specific access points and the achievement of qualitative and quantitative performance targets assigned to the recipients.
At the same time, the Group's incentive system may include medium- to long-term incentive mechanisms designed to align management with the objectives defined in the industrial and strategic plans.
For FY 2024, the incentive schemes confirm sustainable finance objectives that integrate ESG factors and include the explicit application of the principle of 'gender neutrality' in remuneration policies. To this end, an annual monitoring of gender pay gaps will be carried out to ensure consistency.
[GOV-3 DP 29c]
In this context, the 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
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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.
The Banca Ifis Group's sustainability plan, consistent with the 17 United Nations Sustainable Development Goals, is structured according to the ESG framework and is fully integrated into our D.O.E.S. (Digital, Open, Efficient, Sustainable) Business Plan.
For FY 2024, the Bank promoted through its incentive systems the extension of ESG Key Performance Indicators (KPIs) to all levels of responsibility in the corporate organisation, considering all three main areas of intervention. With this in mind, for Identified Staff, the weight given to ESG KPIs has been increased and new ones introduced for all levels of responsibility.
[GOV-3 DP 29a]
More specifically, the Group's short-term incentive system emphasises the importance of responsible and sustainable management of business activities. For Identified Staff, including the CCO, COO and Chief Executive Officer, performance indicators consider commitment to decarbonisation, maintaining gender equity, promoting ESG training, developing internal regulations and maintaining/improving ESG ratings. Finally, for Group employees, there is a variable bonus linked to ESG training.
With specific reference to the Npl business, specific KPIs have been identified in the area of sustainable recovery, which will complement those of the Group, 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.
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 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 ensure 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 Group's annual remuneration and incentive policies and then described in the Report on Remuneration Policy and Remuneration
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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.
[GOV-3 DP 29c]
More specifically, for FY 2024, sustainable finance objectives, which take into account, among other things, ESG factors, and the clarification of the "gender neutrality of remuneration policies", to be verified through annual monitoring of the gender pay gap and the activation, if necessary, of the related corrective actions, have been confirmed within short- term incentive schemes; these objectives have been extended to the whole of the Bank’s population, including through a performance assessment system.
The objectives assigned to the Chief Executive Officer for 2024 represent a combination of quantitative and qualitative criteria, referring to the Group'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 Group's 2024 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.
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%.
[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%9. 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 2024, the provision of a Variable Result Bonus anchored to gender issues and the principles of inclusiveness was confirmed. 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 the Group’s profitability, productivity, competitiveness and efficiency.
In continuity with last year, therefore, again in 2024 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 DP 75 MDR-M]
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.
9 For more details, refer to the 2024 Report on the Remuneration Policy and Remuneration Paid.
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The objectives assigned to the Chief Executive Officer combine quantitative and qualitative criteria including ESG aspects. For the Chief Executive Officer and top management, the Group's ESG KPIs include a specific indicator linked to the decarbonisation targets of the financing portfolio, in line with the Group's communicated commitment in this regard.
Statement on due diligence
[GOV-4 DP 30-32 AR 8-10]
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 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 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; 3.1.2 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) (Actions) - ESRS S1-4
3.2.1 Worker-related rights in the value chain (Actions) - ESRS S2-4
3.4.1 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
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Core elements of due diligence
Sections in the Sustainability Statement
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
3.1.9 Targets - ESRS S1-5
3.1.10 Metrics - ESRS S1-6, ESRS S1-8, ESRS S1-9, ESRS S1-12, ESRS S1-14, ESRS S1-16 and 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 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 Sustainability Statement, following a similar approach to that adopted for financial reporting. This system is based on a Group methodological framework, designed to ensure 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: these concern the description of the organisational model, which includes the roles, processes and controls necessary to ensure the quality of the 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 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 Sustainability Statement, the Group assesses the completeness, adequacy and reliability of the system of internal controls with regard to financial reporting and the Sustainability Statement.
The financial and sustainability risk management process and the Sustainability Statement within Banca Ifis consists of the following sub-processes:
•identification;
•measurement;
•monitoring;
•attenuation;
•reporting.
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Following the identification of the qualitative and quantitative data points material to the 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.
[GOV-5 DP 36b]
For each applicable quantitative data point, a risk assessment of erroneous 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 2024 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;
•for data points of a quantitative nature, first-level controls are to be identified to mitigate the risk of an erroneous Sustainability Statement;
•for processes relating to the Sustainability Statement, first-level controls are to be identified to mitigate the risk of an erroneous 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 Sustainability Statement, the 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.
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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
Climate change adaptation
E1
Climate change mitigation
Energy
Direct impact drivers of biodiversity loss
Impacts on the state of species
E4
Impacts on the extent and condition of ecosystems
Working conditions
Equal treatment and opportunities for all
S1
Other work-related rights (privacy)
Working conditions
Equal treatment and opportunities for all
S2
Other work-related rights (privacy)
Communities’ economic, social and cultural rights
S3
Communities’ civil and political rights
Not Material
Information-related impacts for consumers and/or end-users
S4
Social inclusion of consumers and/or end- users
Corporate culture
G1
Protection of whistle-blowers
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ESRS
Sub topic
Impact materiality
Financial materiality - risks
Financial materiality - opportunities
Time horizon
Political engagement and lobbying activities
Management of relationships with suppliers including payment practices
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 48f]
In order to gain an ever better understanding of the environment in which it operates, Banca Ifis periodically carries out work to identify and assess the impact of climate and environmental risks on the entire ecosystem in which the Group operates, to ensure its resilience. 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.
[SBM-3 DP 48b]
Impacts, risks and opportunities identified as material for Banca Ifis are integrated into its business model through concrete actions and targeted strategies. Specifically, with reference to environmental issues, and therefore to the effects 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
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equality initiatives, and investments in digital technologies to ensure 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. Simultaneously, 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 issue of biodiversity, on the other hand, the double materiality assessment shows, on the one hand, positive impacts resulting from financing, and, on the other hand, reputational and credit risks linked to the loss of biodiversity. In response, the Bank adopts an integrated strategic approach in its ESG Policy and Credit Policy, promoting the conservation of ecosystems.
Social
The in-house workforce is one of the key elements of the Group's strategy and business model, and the positive impacts it generates in turn contribute to the continuous improvement of the strategy itself, as demonstrated by the close connection between the impacts on the in-house workforce and the Bank's Business Plan.
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 89 material impacts, risks and opportunities, appropriately described within the thematic ESRS chapters. These were identified by 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).
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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 48d]
With regard to current financial effects, a study was conducted in 2024 on the effects of climate and environmental risks on credit risk, analysing the possible impacts that climate events could cause on risk parameters (PD and LGD) and consequently on the ECL of the performing portfolio. The analyses carried out showed that, with reference to the overall scenario of 2024 (weighted 60% as 'baseline' and 40% as 'adverse'), 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. Notwithstanding the fact that the Group will continue in the near future to update analyses to assess climate risks and measure their impacts, given their negligible nature, in preparing the Annual Report as at 31 December 2024, these effects have not been incorporated into the determination of the ECL through risk parameter adjustments or a specific overlay.
For more details, refer to the Notes to the Consolidated Financial Statements, Part E - Information on Risks and Related Hedging Policies.
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 Sustainability Statement, the focus remained mainly on the core banking business.
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 sustainability reporting 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.
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[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 steps10:
1.understanding the context of the organisation;
2.identification of current and potential IROs related to sustainability topics;
3.evaluation and determination of material IROs;
4.reporting against the material IROs.
[IRO-1 DP 53bi]
1.Understanding the context of the organisation
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 2023 Non-Financial Statement;
•other available information and external reports;
•additional documentation, such as the Risk Catalogue and the list of identified impacts for the 2023 NFS;
•the Code of Ethics, the ESG Policy, the Environmental Policy, the Organisation, Management and Control Model pursuant to Legislative Decree 231/2001 (OMM) 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, investors, 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 ensure a comprehensive and informed approach to sustainability and responsible governance (see 1.1 ESRS 2 - General Information, section 1.1.4 Managing Impacts, Risks and Opportunities: Double materiality assessment, DP 53g).
10 2024 represents the first year of reporting on the double materiality assessment process; therefore, appropriate monitoring of risks, impacts and opportunities will be structured during 2025.
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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.
[IRO-1 DP 53biii]
Stakeholder engagement
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 involvement 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 ensure 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.
Finally, the Group's top management was involved, who, thanks to their holistic and informed view of sustainability issues in relation to the strategy and business model, provided feedback and considerations that contributed to the consolidation of the various assessments and the final outcomes of the double materiality assessment.
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 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 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.
[IRO-1 DP 53c,ci,ciii]
2.Identification of actual and potential IROs related to sustainability topics
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 and sub-topics for each ESRS;
•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;
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•consideration of the risks identified in the Group Risk Management Risk Inventory, including credit, market, operational, reputational, strategic and compliance risks;
•mapping of actors 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 actual and potential 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 thresholds11 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.
[IRO-1 DP 53b]
3.Evaluation and determination of material IROs
[IRO-1 DP 53b,biv]
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 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.
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.
11 The preliminary threshold for assessing the materiality of each sustainability topic was set at '4' for both impact materiality and financial materiality.
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To identify material sustainability issues, the Bank also assessed the list of IROs taking into account both actual impacts (gross, net of mitigation measures) and potential impacts, considering the effect of preventive measures to avoid future impacts.
[IRO-1 DP 53cii]
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.
[IRO-1 DP 53biv,c,cii]
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 the issues to be disclosed, using risk management processes to define the thresholds and verify whether the impacts are significant for disclosure. More specifically, Banca Ifis defined materiality thresholds through a three-step process: initial identification of thresholds based on the scores obtained, verification of consistency with stakeholders, and final review, if necessary, to ensure optimal alignment with identified priorities.
The threshold for defining the materiality of each sustainability issue was set at '4' for both impact and financial materiality, using the calculation methodology described above. 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. Prioritisation was therefore applied by initially considering the value of impacts, followed by risks and, finally, opportunities. The threshold for defining the materiality of each sustainability issue was set at '4' for both impact and financial materiality, using the calculation methodology described above. In accordance with ESRS 1 and the Guideline, once individual IROs have been assessed according to appropriate thresholds and methodologies, results were able to be aggregated for reporting topics. Prioritisation was therefore applied by initially considering the value of impacts, followed by risks and, finally, opportunities.
[IRO-1 DP 53d]
As previously described (see 1.1 ESRS 2 - General Information, Section 1.1.3 Governance, DP 26), the results of the double materiality assessment process were brought to the attention of and approved by the governing bodies, such as the Sustainability Committee and the Board of Directors. In addition, the 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.
[IRO-1 DP 53e]
The Group conducted impact, risk and opportunity assessments through the direct involvement of specific corporate functions, ensuring 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 Group Risk Management 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.
Sustainability risks were prioritised over other types of risks, 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.
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[IRO-1 DP 53f]
With regard to opportunities, in identifying and evaluating them, the Group considered the strategic objectives defined in the D.O.E.S. Business Plan, consistently managed within the Group's processes.
[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).
In addition, the Risk Management function's insights were based on the risk drivers identified by infoproviders such as Moody's and ENCORE.
[IRO-1 DP 53f]
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.
[E1.IRO-1 DP 20a]
With the aim of identifying climate change impacts, the Group, through discussions with the relevant corporate functions, analysed the company's activities and the total greenhouse gas (GHG) emissions generated by the organisation. 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, a further climate change-related impact was identified, related to the improvement of the working environment through the green renovation of company buildings.
[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 the course of 2024, the analysis was also extended to environmental risks (biodiversity, pollution, water use, waste management) analysed both from a physical (through georeferencing) and transitional (through a sectoral approach) point of view.
[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) risks material to the Bank.
1.Development of the C&E risk 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).
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•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 horizon: this phase involves the qualitative analysis of the propagation of risks and the definition of their time horizon, with particular attention to the main impacts on the Bank.
3.Definition of Materiality Assessment: in the final stage, the materiality assessment of C&E risks is carried out, taking into account all identified risk types.
[E1.IRO-1 AR 13]
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 relevant 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 risks, 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, facilitating the implementation of targeted mitigation measures.
The above analyses were conducted in line with the Bank's membership of the Net-Zero Banking Alliance (NZBA).
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 risks to traditional risks, the time horizons with which C&E risks manifest themselves given Banca Ifis's operations, and an assessment of the risks identified as material. Below is a summary of the main risks material to Banca Ifis.
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Credit risk
[E1.IRO-1 AR11,12]

Risk type | Transmission channel | Description | Time horizon
Climate physical risk | Business continuity of the companyand 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 | 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 loansand Npl/salary-backed loans realignment plans | Technology: Reduced competitiveness due to lack of investment in new technologies with lower emissions impact, resulting in higher probability of defaultPolitics 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 probability of defaultMarket 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) may lead to a depreciation of the property in the event of a call on the guarantee with an impact on the LGDPolicy 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 LGDMarket 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 production and increase operating costs, jeopardising long-term profitability and the associated repayment capacity | Medium-term
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

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The study of the effects of climate and environmental risks 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 risks that the Group pursues with regard to both its employees and its various stakeholders.
With regard to transition risks, 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 transition risks, 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.
As far as physical risks are concerned, the impact was quantified by georeferencing 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.
The materiality assessment of climate and environmental (C&E) risks 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 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 showed a share of exposures of ~22% to segments with “High” or “Very high” climate and environmental risk; overall, the degree of significance of C&E risks on credit risk was assessed by Banca Ifis as moderate.
[E1.IRO-1 AR 13]
During 2024, in addition to updating the data downloaded from the various infoproviders already used in previous years, additional analysis indicators were integrated to define the sectoral transition risk for environmental topics, in particular:
•information on the topics of 'Pollution (Air, Soil, Water)', 'Biodiversity (Disturbance, Ecosystem Use)' and 'Water Use' was retrieved from the ENCORE infoprovider (https://encorenature.org/en);
•these variables were integrated with the 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 far as physical risk is 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, was also incorporated in 2024. 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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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 2024 analysis shows that about 10% 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 relevant risks deriving from exogenous sources. The Bank conducts recurring analyses of the materiality of climate and environmental risks in relation to the sovereign portfolio.
[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 spendingPolitics and regulation: sovereign states may face higher litigation costs as efforts towards a sustainable transition progressMarket sentiment: changes in consumer preferences, a weaker overall economy and lower fiscal income could have an impact on sovereign riskiness | Medium-term

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[E1.IRO-1 AR 13]
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 risks into the relevant investment/disinvestment choices.
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 climate and environmental risks on operational and reputational risks was carried out with reference to both physical and transitional risks, by assessing on one hand the potential impacts of acute weather events in financial and business continuity terms, and on the other hand the negative effects that could be generated for the reputation of the Banca Ifis Group following conduct or business practices in conflict with ambitions and the reference regulatory framework.
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.
[E1.IRO-1 AR 13]
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 risks.
The final result of the climate and environmental risk 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.
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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 33% of net banking income; in all, foreign subsidiaries are exposed to low climate risks.
The update of the Materiality Assessment exercise introduced the following innovations 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;
•it also 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 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

[E1.IRO-1 AR 13]
With regard to reputational risk, scenarios have been identified, such as non-compliance with C&E regulations or non-alignment with decarbonisation objectives, 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;
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•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 relevant reputational risk scenarios, the Bank is exposed to a moderate overall risk.
Liquidity risk
[E1.IRO-1 AR 11]

Risk type | Transmission channel | Description | Time horizon
Physical risks | 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
Transition risks | Financingcost | Potential impact on the cost of funding from worse access to liquidity for institutions not aligned to a Net Zero economy | Medium-term

[E1.IRO-1 AR 13]
Following the materiality analyses, the Bank assessed the possible need to apply 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. However, the Bank 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.
Opportunities
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, etc.) to meet environmental and/or Industry 4.0 objectives (e.g. through Nuova Sabatini on environmental investments);
•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, moreover, 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.
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Furthermore, the Banca Ifis Group is already collaborating 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, by joining the Net Zero Banking Alliance in 2021, the Group has already started a process of gradual decarbonisation of the, albeit small, portion of its high-emission banking portfolio.
[E1.IRO-1 AR 11,12]
The evidence from the materiality assessment and the risks found to be material in the short-, medium- and long-term, enabled the Bank to orientate and identify different climate and environmental risk management strategies. Specifically, the Bank has identified the following mitigants and measures:
•inclusion within the Risk Appetite Framework (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;
•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.
[E1.IRO-1 AR 11c,12b,c]

Reference segments | % exposure
Very high and high C&E sectors | 22%
Moderate C&E risk sectors | 45%
Low Risk C&E Sectors | 27%
Individuals and PA | 6%
Total | 100%

Climate and environmental sectors considered to be at 'Very High' and 'High' risk include Chemical Industry - Commodities and Specialities, Manufacture of Coke and Coke Products, Crude Oil Extraction, Logistics and Land Transport, Automotive - Manufacturing, Food Industry, Crops and Forestry, Rubber and Plastics Industry, and others.
[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
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
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production/legal locations, a process that made it possible to identify precisely the physical risks to which the counterparties are exposed (details follow).
The sectors with very high climate and environmental risks are Chemical Industry - Goods and Specialities, Coal, Gas and Oil Extraction, Manufacture of Coke and Oil Refining Products, as well as Livestock, Crop Production and Forestry, which are downgraded from the previous update due to the integration of the new ENCORE indicators on 'Pollution', 'Biodiversity' and 'Water Use'.
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. A project has been launched, in fact, aimed at enabling the timely collection of the information necessary for risk assessment also on the entire portfolio of loans secured by real estate (e.g. Employee loan for first homes); activities were started, in fact, precisely with this project dedicated to employees and extended to Banca Credifarma considering the significant 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 risks. 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 issues.
[E1.IRO-1 AR 14,15]
Climate Stress Test and the scenarios considered
In line with the Bank of Italy's expectations on climate and environmental risks, the parent company Banca Ifis carried out a sensitivity analysis of the loan portfolio in 2024 with respect to climate and environmental risks. In this context, the Group independently conducted a simplified Climate Stress Test exercise that considers the short-term (i.e., 3-year) climate scenarios shared by the ECB during the 2022 Climate Stress Test exercise, leveraging the same framework and satellite models as the ICAAP stress test.
In order to guarantee consistency of the scenario with the current economic context, the macroeconomic projections were prepared by applying the shocks (i.e. deviations from the baseline scenario) of the "Short-term disorderly"12 of the 2022 Climate Risk Stress Test to the latest baseline projections underlying the budget13. This approach ensures uniformity and comparability of results between the Budget (baseline) scenario and the Stress Test Core (ICAAP) scenario.
12 In contrast to the 30-year long-term scenarios, the "short term disorderly" scenario anticipates the long-term effects of a plausible severe event; however, this scenario does not fully reflect the benefits of the transition and the related economic recovery that could be considered in a long-term scenario.
13 Source: Prometeia.
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Results of the Climate Stress Test on Credit Risk
The exposures analysed in the climate stress test coincide with those considered in the core ICAAP exercise, covering about 70% of the Group's total performing portfolio. Government bonds are mainly excluded, as they do not fall within the scope of analysis, not even in the ECB's 2022 Climate Stress Test.
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 core scenario and thus ensuring comparability of results. In addition, the severity of the Core ICAAP scenario is aligned with that of the EU-Wide Stress Test 2023, ensuring consistency in risk analysis.
[E1.IRO-1 DP 12d]
In light of the above analyses, the Group aims to cultivate its competitive advantage by continuisly monitoring the evolution of the emissions financed in its portfolio and taking concrete action to fulfill 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;
•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 & gas14.
[E4.IRO-1 DP 17a,c]
In a parallel fashion, with reference to biodiversity and ecosystems, the Bank identified material impacts, risks and opportunities only for its downstream value chain, with a particular focus on customers. The identification of impacts, risks and opportunities was carried out as part of the double materiality assessment and supported by the evaluations of the functions and analyses performed by the Risk Management function on the loan portfolio.
[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 account potential business developments related to the protection, restoration and regeneration of ecosystems and the sustainable use of natural resources.
[E4.IRO-1 DP 17d]
With regard to risks, the analyses performed by the Risk Management function on the Bank's loan portfolio considered both physical and transitional risks. The former were considered through the integration of
14 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.
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NATURA2000 analyses, which made it possible to identify the 'High Biodiversity' areas in Italy and to measure the impact that businesses located in neighbouring areas could have. The latter were considered through the integration of the ENCORE biodiversity detail score, which made it possible to identify potential biodiversity risks from the exploitation of terrestrial and marine resources on portfolio counterparts. Finally, with regard to the analysis of systemic risks, physical risks and dependencies in relation to the conservation of biodiversity and ecosystems were considered, highlighting on the one hand positive impacts resulting from sustainable financing, and on the other hand reputational and credit risks linked to the loss of biodiversity.
[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 considerations were derived from the informed assessment made by internal stakeholders and top management, which took into account the Group's business model, core activities, and the impact and risks of these topics on portfolio counterparties.
[G1.IRO-1 DP 6]
4.Reporting on material IROs
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.
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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 non eligible for the Taxonomy, based on the presence or absence of the description of such activities within the Delegated Regulations 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 generates a substantial contribution to at least one of the six environmental objectives15 by fulfilling the criteria provided by Delegated Regulation (EU) 2021/2139, which was supplemented in 2023 by Delegated Regulation (EU) 2023/2485. The latter introduces the criteria for the remaining four environmental objectives (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 addition to the first two objectives (climate change mitigation and adaptation) governed by the 2021 Delegated Regulation.
Article 8 of Regulation (EU) 2020/852 introduces at European level, as of 1 January 2022, a Taxonomy disclosure requirement on companies and financial market participants required to report a Sustainability Statement, as set forth in Directive (EU) 2022/2464 (CSRD). In line with regulatory requirements, from 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) 2021/217816 defines the methodology and indicators for reporting required under the Taxonomy Regulation. Article 4 of the forementioned 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 the information shall be presented in tabular form using the templates in Annex VI. Specifically, the key performance indicators (hereinafter also KPIs) required for credit institutions are:
•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 assets underlying the off-balance sheet exposures aligned with the taxonomy. With reference to FY 202417, 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 provided by 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 on-balance-sheet and off-balance-sheet exposures, showing eligible exposures aligned with environmental objectives;
15The six environmental objectives of the Taxonomy: climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems.
16 Delegated Regulation (EU) 2021/2178 as supplemented by Delegated Regulation (EU) 2022/1214 and Delegated Regulation (EU) 2023/2486.
17 Trading book KPI and Fees and commissions KPI will have to be published by credit institutions as of 1 January 2026.
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•Template 2 - GAR: Sector information: the template contains evidence of exposures (overall and aligned to each of the environmental objectives) to non-financial corporations by breaking them down according to their prevailing NACE code;
•Template 3 – GAR KPI 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 - GAR KPI flow: the template contains evidence of GAR values on the flow of loans and advances, debt securities and equity instruments, generated during the financial year;
•
Template 5 - KPI 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 asset under management calculated from the information in Template 1.
Each template is published in two versions: using as the eligibility and alignment KPIs on Capex (capital expenditures) and Turnover reported by counterparties subject to CSRD as a weighting factor.
As of 1 January 2023, the relevant legislation also requires financial undertakings to provide specific disclosure with respect to their exposures, to certain nuclear and fossil gas-related activities, in accordance with Commission Delegated Regulation (EU) 2022/1214 of 9 March 2022, amending Delegated Regulation (EU) 2021/2139 and Delegated Regulation (EU) 2021/2178. The supplement to Delegated Regulation (EU) 2021/2178 provides for an additional quantitative disclosure on exposures related to the nuclear and fossil gas sectors consisting of 5 Templates (as required under Annex XII of said Regulation):
•Template 1: Nuclear and fossil gas related activities;
•Template 2: Taxonomy-aligned economic activities (denominator);
•Template 3: Taxonomy-aligned economic activities (numerator);
•Template 4: Taxonomy-eligible but not taxonomy-aligned economic activities;
•Template 5: Taxonomy non-eligible economic activities;
Each template is published in two versions, using the Capex (capital expenditures) and Turnover data of CSRD counterparties active in the nuclear and fossil gas sectors as a weighting factor. Furthermore, in line with regulatory guidance, the 5 Templates provided are filled in for each of the applicable KPIs published in the Taxonomy Disclosure.
Approach adopted for the identification of eligible and aligned activities
The FY 2024 disclosure is based on the gross carrying amount of assets on the financial statement as at 31/12/202418, and refers to the scope of prudential consolidation as indicated by the regulations19.
Banca Ifis Group, for FY 2024, 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 on balance sheet exposures in its analysis:
•Loans and advances to businesses
18 Off-balance sheet exposures are excluded.
19 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.
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For the assessment of the taxonomy-aligned, eligible and non-eligible exposures to20 financial and non-financial undertakings subject to CSRD, the Group used taxonomy data published by the counterparties in relation to the 2023 reporting year, provided by external infoproviders.
In particular, the following were used:
–for non-financial undertakings and credit institutions: the KPIs of eligibility and alignment, in terms of capital expenditures (Capex) and in terms of 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 undertakings: the eligibility and alignment KPIs published with reference to underwriting and investment activity, detailing the contribution to the 6 environmental objectives21;
–for undertakings 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, 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 taxonomy of economic activities or projects financed, based on specific information provided by the issuer.
During 2024, Banca Ifis Group carried out checks to identifypossible exposures in Green Bonds aligned to the Taxonomy, also with the support of primary market infoproviders. However, the analyses revealed the absence of information, provided by the issuers, on the Taxonomy alignment shares.
The Bank, therefore, assesses the eligibility and alignment of all bonds in the portfolio, including those that could be associated with the financing of green projects, by considering the Taxonomy KPIs published by the counterparties in relation to the FY 2023 and provided by an external infoprovider (see what is indicated for exposures related to "Loans and advances to financial and non financial undertakings").
•Loans and advances to households collateralised by residential immovable property
With regard to exposures associated with loans to retail customers (referred to as “households”) for the acquisition and ownership of buildings, 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.
20 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 25 September 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).
21 In order to consider both businesses in which the insurance undertakings are active, the Banca Ifis Group decided to use an arithmetic average of the KPIs provided by the counterparties for FY 2024. This approach was adopted in line with the indications given in Commission Communication C/2024/6691 of 8 November 2024.
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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) 2021/213922, a three-step distinctive process was adopted:
–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 built before and after 31 December 2020;
–the Bank then carried out some controls to verify compliance with the substantial contribution criteria23:
▪in the case of loans collateralised by residential immovable property built before 31 December 2020, the building has at least an energy performance certificate (EPC) class "A" or a Building Energy Performance (Primary Energy Demand, PED) falling within the TOP 15% of the national or regional building stock;
▪in the case of loans collateralised by residential immovable property built 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 buildings meeting the above substantial contribution criteria, the Bank verified that the financed residental immovable properties do not significant harm the Climate Change Adaptation objective, in order to verify the compliance with the DNSH criteria (Do No Significant Harm criteria). To do so, a further 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. 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 regulations24, by analysing the information present within the Bank's systems.
In particular, an assessment 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, Banca Ifis Group only publishes the share of exposures that is Taxonomy eligible.
Results of applicable KPIs (Template 0)
Below are reported the main results for Banca Ifis Group's share of exposures deriving from taxonomy environmentally sustainable economic activities in terms of stock and flow as of 31/12/2024:
22 See Delegated Regulation (EU) 2021/2139, Annex I, point "7.7. Acquisition and ownership of buildings”.
23 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”).
24 See Delegated Regulation 2021/2139, Annex I, point "6.5 Transport by motorbikes, passenger cars and light commercial vehicles".
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Template 0 - Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation - FY 2024

Main KPI | Total environmentally sustainable activities | KPIs based on Turnover | KPIs based on Capex | % coverage (over 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 denominator of the GAR (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 EURCapex: 147,8 million EUR | 0,9% | 1,3% | 81,2% | 56,3% | 18,8%

Additional KPIs | Total environmentally sustainable activities | KPIs based on Turnover | KPIs based on Capex | % coverage (over 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 denominator of the GAR (Article 7 (1)) and Section 1.2.4 of Annex V)
GAR (flow) | Environmentally sustainable activities based on: Turnover: 295,5 million EURCapex: 560,5 million EUR | 0,6% | 1,2% | 96,4% | 67,5% | 3,6%
Trading book (**) |  |  |  |  |  |
Financial guarantees |  |  |  |  |  |
Asset under management |  |  |  |  |  |
Fees and commissions income (**) |  |  |  |  |  |

* 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 (FY 2024). This approach, in line with the regulatory guidance set out in Commission Communication C/2024/6691 of 8 November 2024 (see FAQ 65), has been updated compared to the disclosure provided in the previous year.
** These KPIs will be reported by Banca Ifis starting FY 2025 and therefore subject to publication starting 2026.
The results deriving from the application of the regulations described above, are strongly impacted by the nature of Banca Ifis Group's business, specialised and diversified in financial services for Small and Medium-sized Enterprises (SMEs), typically not subject to the CSRD Directive and therefore not able to be considered in terms of identifying EU Taxonomy within eligible and aligned assets for the EU Taxonomy disclosure.
Banca Ifis Group, for the purposes of calculating the Green Asset Ratio (GAR), has considered, in line with regulatory requirements, total covered assets of 11.436,2 million Euro (81,2% of total assets) as the denominator, thus excluding from total assets the exposures in central governments, central banks, supranational issuers and
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the trading portfolio. The main results for the share of exposures arising from economic activities aligned with the Taxonomy in terms of stock as at 31/12/2024 is:
•100,7 million Euro and corresponds to 0,9% of the total covered assets (0,3% at 31/12/2023), using turnover as a risk weight for exposures;
•147,8 million Euro and corresponds to 1,3% (0,7% at 31/12/2023) of the total covered assets, using capex as a risk weight for exposures.
The increase in activities aligned with the Taxonomy is mainly due to the availability of new information from counterparties companies subject to CSRD obligations: in particular, for this reporting, reference is made to the eligibility and alignment KPIs published by financial and non-financial counterparties, which, more than last year have respectively reported their alignment shares (Capex and Turnover) towards the first two environmental objectives [climate change mitigation (CCM) and climate change adaptation (CCA)] and their eligibility shares (Capex and Turnover) towards the remaining 4 environmental objectives [sustainable use and protection of water and marine resources (WTR), transition to a circular economy (CE), pollution prevention and control (PPC), and protection and restoration of biodiversity and ecosystems (BIO)]25. With reference to the other exposures contributing to the GAR, in particular loans to households collateralised by residential immovable property, there are no particular deviations from what was reported in the previous year; this result is in line with the business carried out by Banca Ifis Group, within which these types of exposures are not significant.
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. The indicator for exposures related to Assets under Management is not applicable for Banca Ifis, as the bank does not provide individual/collective asset management services.
The 'Other sustainability information' section reports:
•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;
•the disclosure required by Commission Delegated Regulation (EU) 2022/1214 in respect of the Banca Ifis Group's exposures to economic activities in certain gas and nuclear energy sectors, using the templates in Annex XII to the Delegated Regulation (EU) 2021/2178.
25 Where available via infoprovider, the alignment KPIs published, one year in advance of the regulatory request, by non-financial counterparts on the 4 additional environmental targets defined by the EU Taxonomy were also retrieved.
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2.2 ESRS 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. 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 Distributors26), which accounts for more than 80% of the financed exposures and issues. These targets are based on scientifically validated decarbonisation scenarios that comply with international standards. Banca Ifis was also the first Italian challenger bank to join the Net-Zero Banking Alliance (NZBA), an UN-sponsored initiative that calls on participating banks to align their lending and investment portfolios with the goal of net-zero emissions by 2050, in line with the Paris Agreement.
In this context, the European automotive industry, including the Italian one, is going through a significant transformation phase, characterised by a slowdown in the demand for electric vehicles (EVs) and increasing international competition.
According to ACEA data27, electric car registrations in the European Union dropped by 5,9% in 2024, totalling 1,44 million units sold. This drop was particularly noticeable in Germany, where sales fell by 27,4% due to the reduction of government incentives for the purchase of electric vehicles. France and Italy also saw a decrease in sales, while the UK saw an increase of 21,4%, making it the largest European market for electric vehicles.
Registrations of plug-in hybrid vehicles (PHEVs) in the European Union also increased by 4,9% year-on-year to a total of 1,1 million units sold. However, despite this increase, the market share of PHEVs decreased from 19,9% to 15,4% in 2024, indicating a growing consumer preference for all-electric vehicles (BEVs). In Italy, the situation is similar: in 2023, PHEVs accounted for 4,1% of total registrations, placing them among the last in Europe.
These data show a major shift in consumer preferences for all-electric vehicles, with a decrease in the market share of PHEVs and full electrics.
This market trend is part of the growing presence of Chinese-made electric vehicles on the European market and represents a significant challenge for local manufacturers. According to Transport & Environment (T&E)28, one in four electric vehicles sold in Europe will be from China in 2024. This trend underlines the need for Europe to develop a domestic production chain, particularly in the battery sector, in order to reduce import dependency and strengthen the competitiveness of the European automotive industry.
To meet these challenges, European manufacturers must accelerate innovation in the EV sector, improve charging infrastructure and develop competitive strategies to counter the advance of Chinese brands. Furthermore, it is
26 Portfolio composition as at 31 March 2022, latest available emission data.
27 https://www.acea.auto/pc-registrations/new-car-registrations-0-8-in-2024-battery-electric-13-6-market-share/
28 https://www.transportenvironment.org/te-italia/articles/un-veicolo-elettrico-su-quattro-venduto-nel-2024-in-europa-sara-prodotto-in-cina?utm_source=chatgpt.com
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crucial that Europe invests in local battery production. According to T&E29, the EU has the potential to produce 56% of its cathode demand by 2030, but current production is still limited. Stronger actions and more financial support from the EU and Member States are needed to scale up production.
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 GHG emission reduction targets (see ESRS E1-4 for further details) and climate change mitigation actions (see ESRS E1-3 for more details), an explanation of the identified decarbonisation levers and main planned actions, divided between financed 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 gCO2e/km in 2019 to 85gCO2e/km by 2030. The current car leasing portfolio consists of approximately 40% hybrid or electric-powered vehicles, with a 50% increase in hybrid engines by 2021.
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 gCO2e/tkm in 202030 to 37 gCO2e/tkm by 2030. In particular, commercial vehicles and semi-trailers play a central role in achieving the Group's objectives, 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.
Automotive Manufacturers and Distributors sector: Banca Ifis aims to reduce its financed automotive emissions from 153 gCO2e/km in 2019 to 85 gCO2e/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.
29 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?utm_source=chatgpt.com
30 Issue data as at 2020 for application of EU Regulation 2019/1242 on HGV emission targets
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Own GHG emissions - Sustainable mobility
Company fleet renewal: as part of the Ifis Leasing Green initiative, the Group has signed an agreement with Stellantis to renew company fleets, aiming to make more than 50% of vehicles hybrid or electric by 2025. This project aims to strengthen the transition to more sustainable mobility and reduce emissions.
Electric charging devices for passenger 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 using exclusively green energy from 100% renewable sources (e.g. wind, photovoltaic, geothermal, hydroelectric, biogas, biomass) for the supply of all 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 100% renewable energy from the grid or self-produced.
Development of solutions 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.
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. 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 addition, the Group 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, dedicated to investments in line with European Taxonomy criteria.
The Bank also devoted special attention 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 is developing several agreements with external partners to offer ESG services within the 'myIfis' platform, with the aim of supporting SMEs 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 defined its commitments within the 2022-2024 D.O.E.S. (Digital, Open, Efficient, Sustainable) Strategic Plan, with the aim of achieving the strategic objectives set out in the multi-year plan, aligning with the Bank of Italy's 'Supervisory
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Expectations on Climate and Environmental Risks' and reaching Net Zero targets for financed emissions in strategic sectors. These objectives are translated into decarbonisation initiatives and strategies described with reference to E1-1 DP 6b.
[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 objectives.
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).
2.2.2 Energy, adaptation and mitigation of climate change
Material impacts, risks and opportunities
[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 Information (see 1.1 ESRS 2 - General Information, section 1.1.4 Managing Impacts, Risks and Opportunities: Double Significance Analysis, DP 20), in determining its sustainability strategy, the Group adopted a structured approach to identify the impacts of climate and environmental risks. 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 risks 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.
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).
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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)
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
Physical risks | Acute | Heat waves, fires, floods, droughts, landslides, earthquakes | ST
Chronic | Extreme temperatures, soil erosion, water stress, sea level rise | 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.
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 and with industry best practices.
The analysis of the relevance 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;
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–regulatory evolution, depending on the restrictions and sanctions to which counterparty enterprises that are active in segments that hinder the environmental and climate objectives 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 significance 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 Cost of Financing 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 will be further elaborated in the chapter on General Information (see 1.1 ESRS 2 - General Information, section 1.1.4 Managing Impacts, Risks and Opportunities: Double materiality assessment, DP 20).

Type of risk | Transmission channel | Time horizon
Credit risk | Physical risks | Business continuity and NPL/CQS recovery plans | MT
Transition risks | Repayment capacity on corporate loans | MT
Value of real estate on secured exposures | 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 | LT
Transition risks | Financing cost | MT

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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 the Group operates, supporting strategic decisions through an integrated view of risk factors and opportunities related to climate transition considering the entire Group value chain.
[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.
The IPR Forecast scenario was selected as the main reference ('guiding scenario') to conduct an in-depth analysis of climate policies, assessing the impact of these policies on key sectors of the Group's portfolio in terms of risks and opportunities. Therefore, the analysis focused on the sectors identified as having a high emission impact according to the IPR Forecast and in which the Ifis Group is relevant (i.e. automotive, real estate, agriculture).
The Group's resilience analysis focuses mainly on transition risks related to climate change, without considering physical risks, and aims to provide a clear 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.
[E1.SBM-3 AR 7b]
The time horizons considered were aligned with those used in the Group's materiality assessment, including both the medium term (2025-2027) and the long term (2028-2030). In addition, the analysis maintained alignment with the business scenarios considered to define GHG emission reduction targets by 2030, ensuring that the Group'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 is an initial contribution to understanding 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.
The results of this first resilience analysis exercise show a clear classification of value chain segments in relation to the risks and opportunities arising from the climate transition. The automotive sector segments were identified as particularly vulnerable to regulatory changes and new market dynamics; in contrast, the agricultural and real estate sectors, while presenting risks and opportunities, resulted as less relevant in terms of impact.
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 long run.
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In order to analyse climate policies and qualitatively assess their impact on target sectors, the Group has structured a specific framework consisting of two main macro-phases:
•identification and in-depth analysis of 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 the Group'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;
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. This allows for a granular analysis and precise identification of the segments most impacted by climate policies. The Group's portfolio, focusing on the Bank's performing portfolio (excluding Npls and Treasury/Central Services), was classified using the relevant ATECO codes and according to 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), supplemented by expert-based analyses. This approach made it possible to identify the risks and opportunities associated with each sector over medium (2-3 years) and long-term (up to 2030) time horizons.
To obtain a comprehensive assessment of the impact of climate policies on the Group's portfolio sectors, a methodology combining two main criteria was adopted:
•Materiality Assessment analysis, 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;
•reconciliation with the short-term disorderly scenarios of the ECB's Climate Stress Test, in order to assess the one-year evolution of GVA (Gross Value Added) in the main macro-sectors of the Italian economy, with a focus on the most significant segments of the value chain.
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, resulting in less resilience to climate transition (e.g. automotive components);
•segments with moderate opportunities, but balanced by significant risks still present in sector dynamics (e.g. food industry);
•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. farms);
•segments with greater opportunities with respect to climate transition risks, which demonstrate a greater capacity to adapt to the impacts of sectoral policies and climate transition (e.g. construction and real estate management).
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[E1.SBM-3 AR 8b]
The process of analysis and identification of segments of the value chain, described above, is updated periodically, ensuring 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.
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Group approach and policies
[E1.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon | Main approaches to dealing with IROs
Energy, adaptation and mitigation of climate change
Improving the working environment through green building renovation | Actual positive impact | Own operations | Medium-term | •ESG Policy•Environmental Policy•Credit Policy
Generation of finance-related indirect emissions (Scope 3) | Actual negative impact | Own operations | Medium-term
Generation of direct and indirect GHG emissions resulting in negative environmental sustainability performance (Scope 1 and 2) | Actual negative impact | Own operations | Medium-term
Entrepreneurship development and improvement of the sustainability profile through credit access channels for SMEs and ESG performance assessments | Actual positive impact | Value chain | Medium-term
Promotion of sustainable mobility solutions and initiatives | Opportunity | Value chain | Medium-term |
Development of initiatives to promote sustainable development policies and increased use of renewable energy sources | Opportunity | Value chain | Medium-term |
Promotion of solutions related to improved energy efficiency of operational processes | Opportunity | Value chain | Medium-term |
Promotion of products, services and initiatives to help SMEs improve their sustainable and responsible practices | Opportunity | Value chain | Medium-term |
Creation of products, possibly backed by guarantees, in support of projects pursuing environmental objectives to be disbursed to customers | Opportunity | Value chain | Medium-term |
Promotion of solutions related to improved energy efficiency of operational processes and eco-sustainability of products | Opportunity | Value chain | Medium-term |
Saving money by implementing energy efficiency initiatives and projects | Opportunity | Own operations | Medium-term |

Risks have been described in relation to the section "Energy, adaptation and mitigation of climate change" (See ESRS E1.SBM-3 DP 18)
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Environmental protection and compatibility between economic initiative and ecological needs are fundamental dimensions of the Banca Ifis Group's attention to sustainability. This approach is translated into specific policies that form an integral part of the Group's sustainability framework.
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.
ESG Policy
[E1-2 DP 24 MDR-P]
[E1-2 DP 25]
The Group's ESG Policy defines strategic sustainability guidelines, promoting the integration of environmental, social and governance factors into its strategies and operations, actively involving suppliers, customers and stakeholders along the entire upstream and downstream value chain. The main aim is to spread a culture of sustainability, encouraging responsible behaviour and the adoption of practices that consider ESG impacts in all Group operations. Through this integration, the Group aims to generate a positive impact in the creation of value for all stakeholders, contributing to the achievement of sustainable and lasting success. In particular, the Policy governs the Group's commitment in the following areas:
•environmental: improving energy efficiency with renewable sources, promoting sustainable mobility with hybrid and electric vehicles, and optimising water consumption and waste management. It also analyses climate and environmental risks annually to ensure business continuity and develops sustainable products and services, monitoring emissions in line with international standards;
•social: generating positive impacts on people and communities through projects of inclusiveness, culture and well-being, supporting art and social inclusion. It promotes a safe, healthy and discrimination-free working environment, ensuring equal opportunities and combating forced labour. It also protects human rights in all its activities;
•governance: promoting integrity and transparency, combating corruption and money laundering, and ensuring confidentiality in communications and contracts.
The above-mentioned Policy is applied and disseminated to all Group companies and stakeholders through its publication on the intranet and the corporate website. The ESG Policy is shared in advance with the Group Sustainability Committee and the Compliance department, which is responsible for assessing its compliance with the framework. Finally, it is approved by the Board of Directors, which monitors its implementation. The document is periodically updated to ensure that it is always in line with the Group's values, best practices and the context in which it operates, and has been drawn up in close connection with key international regulations, reflecting a global commitment to sustainability and social responsibility.
Standards include the UN Universal Declaration of Human Rights, which establishes fundamental principles of dignity and justice, and the 2030 Agenda for Sustainable Development, which promotes 17 global development goals. In addition, 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.
As outlined in the ESG Policy, 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, ensuring greater sustainability in credit decisions. The main interventions carried out in the following stages of the process are outlined below:
1. Origination phase: 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 not only fosters a more informed allocation of credit resources, but 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.
Environmental Policy
[E1-2 DP 24 MDR-P]
The Policy outlines the Group's commitments to manage its direct and indirect environmental impacts. In particular, 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. This includes optimising the energy efficiency of the premises, using renewable sources and developing sustainable energy self-production solutions. It promotes sustainable mobility with low-emission vehicles and recharging infrastructure, as well as offsetting residual emissions with dedicated projects. Finally, with a view to the circular economy, it takes measures to reduce pollution, optimise water consumption and improve waste management. It also enhances biodiversity, constantly monitors environmental data and raises stakeholder awareness to disseminate sustainable practices.
In pursuit of its ambitious sustainability goals, the Banca Ifis Group seeks to ensure that all its economic initiatives are fully compatible with environmental requirements, in strict compliance with current legislation. The Group actively promotes a culture of sustainability among all its employees, encouraging their involvement through training, information and the clear definition of environmental responsibilities. Furthermore, transparency is a key pillar of its strategy, with the Group communicating its environmental management achievements in a clear and timely manner, adhering to international reporting standards such as TCFD and ESRS. With an ongoing commitment to improvement, the Group periodically reviews its Environmental Policy, adapting it to new requirements and changes in its activities. To support the Policy, an organisational model for managing environmental aspects is implemented, also aimed at preventing risks related to possible environmental crimes. Finally, Banca Ifis makes concrete efforts to reduce pollution by adopting organisational, operational and technological solutions that aim to continuously improve its environmental performance, with actions to monitor, measure and verify compliance with legal obligations and commitments.
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The Policy described above, approved by the Board of Directors, applies to all Group companies and is publicly available on the Group's website and intranet. In addition, the Group carries out periodic policy reviews to verify its correctness and effectiveness, with a view to continuous improvement.
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, the recommendations of the TCFD and Directive (EU) 2022/2464.
Credit Policy
[E1-2 DP 24 MDR-P]
The Credit Policy aims to establish the principles and guidelines for the granting of credit31, 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.
This tool 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 Banca Ifis Group legal entities, including Factoring, Corporate Banking, Lending and Leasing products, as well as for Banca Credifarma and Cap.Ital.Fin.
In this context, 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 Credit Policy, approved by the Group's Board of Directors, applies to all organisational units involved in the process and is made available on the company intranet platform.
The monitoring of ESG elements included in the Credit Policy provides for:
•the updating, once a year, of the ESG risk analysis of the various economic sectors and the assignment of the corresponding risk class;
•possible adjustments of the framework from an ESG perspective, justified by regulatory developments or managerial choices.
[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 particular, as governed by the ESG Policy (see 2.2 ESRS E1 - Climate Change, section 2.2.2 Energy, Climate Change Adaptation and Mitigation, DP 25), 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
31 Excluding counterparties under management at Workout, Restructuring & Recovery.
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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 key elements related to the perimeter (e.g. sector, counterparty and transaction) and process (e.g. credit policies and lending process), which constitute the new framework (see 2.2 ESRS E1 - Climate Change, Section 2.2.2 Energy, Climate Change Adaptation and Mitigation, DP 29a).
Actions
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.
[E1-3 DP 29a]
Financed GHG emissions
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 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.
The following initiatives, integrated and better detailed in the Transition Plan (see 2.2 ESRS E1 - Climate Change, section 2.2.1 Transition Plan, DP 16b), implemented by Banca Ifis are reported:
•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 and sustainable mobility;
•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.
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[E1-3 DP 28 MDR-A]
[E1-3 DP 29a]
Own GHG emissions
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 exclusively 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 2024 are reported:
•Renewal of company fleets: As part of the Ifis Leasing Green initiative, in 2022, the Group signed an agreement with Stellantis to renew corporate fleets, aiming to make more than 50% of vehicles hybrid or electric by 2025;
•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, by 2025, it is planned to increase the number of electric car charging points at the Group's locations, which, at the reference date of this document, amount to 57.
Use of renewable energy and energy efficiency
Since 2021, the Group has been using exclusively green energy from 100% renewable sources (e.g. wind, photovoltaic, geothermal, hydroelectric, biogas, biomass) for the supply of all offices and branches in Italy. During 2024, ordinary and extraordinary renovation and redevelopment of 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.
Also thanks to the initiatives undertaken, Banca Ifis's electricity consumption decreased by 7% from 2,9 million kWh to 2,7 from 2023 to 2024.
[E1-3 DP 29ci, cii]
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 reported32, reflecting the economic impact of the actions implemented.
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.
32 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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Photovoltaic project | UoM | 2024 | Item
Capex | € | 40.894 | Balance Sheet: tangible assets
Opex | € | 2.149 | Income statement: other administrative expenses

It should be noted that for the same asset, 176.608 Euro was capitalised in 2023 and reported under tangible assets in the balance sheet.

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

[E1-3 DP 29b]

GHG emission reductions | UoM | Target
Expected | tCO2e | 1.776 (2030)
Achieved | tCO2e | 0 (2024) (1)

(1)The achieved GHG emission reduction is 0 as the target was set in 2024.
The credit framework strengthened from an ESG perspective
[E1-3 DP 28 MDR-A]
[E1-3 DP 29a]
In 2024, the Bank's credit framework was integrated with an ESG perspective, establishing a process dedicated to assessing the sustainability profile of counterparties that meet pre-established ESG criteria. To this end, the Bank has defined the key boundary (e.g. segment, counterparty and transaction) and process (e.g. credit policies, lending process) elements that will define the new framework.
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 the first half of 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;
•the drafting of a supplementary appraisal for ESG-steered and appraised counterparties that will enter the enhanced credit framework.
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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).
The Bank plans to gradually extend the scope of applicability of the enhanced framework, in order to broaden the base of counterparties on which the ESG analysis described is performed, consistent with the availability of useful information to outline their sustainability profile.
2.2.3 Targets
[E1-4 DP 32 MDR-T]
[E1-4 DP 33]
As previously highlighted, the Banca Ifis Group identifies itself as a digital, open, efficient and sustainable bank, as also defined in the 2022-2024 Banca Ifis D.O.E.S. (Digital, Open, Efficient, Sustainable) Business Plan. In this context and in line with the objectives of the Strategic Plan, the Bank has committed to bring its loans and investment portfolios into line with the achievement of the zero net emissions goal by 2050, in accordance with the targets established 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.
Financed GHG emissions
Below are the emission reduction targets financed on the sectors deemed relevant for the Group: Auto Leasing, Truck Leasing and Automotive Manufacturers and Distributors and which the Group aims to achieve by 2030:
[E1-4 DP 34a,b]

Scope 3 GHG emission reduction targets by category (1) | UoM | Type | Baseline (2) (year) | 2030 Target
Auto Leasing | gCO2e/km | Reduction target | 130 (2019) | 85
Truck Leasing | gCO2e/tkm | Reduction target | 52 (3) (2020) | 37
Automotive Manufacturers and Distributors | gCO2e/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 that comply with NZBA standards.
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In addition, the analysis considered 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 objective described above is in line with the Group's strategic commitments, thereby consolidating the company's role as a responsible player in the transition to a low-carbon future.
[E1-4 DP 29,33]
Own GHG emissions
With reference to its own GHG emissions, the Banca Ifis Group has set specific targets33 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 share34.
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, in line with the strategic pillars of the 2022-2024 Strategic Plan, 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 only 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 objectives 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.
33 It should be noted that these targets were set consistent with limiting global warming to 1,5 °C.
34 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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[E1-4 DP 34a,b]

Sub-topic | Action | Type | Baseline Scope 1 | Target
Climate change mitigation | Reduction of the CO2 emissions of the car fleet | Reduction target | 1.974 tCO2e(2024) | 1.776 tCO2e (2030)-10%

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 CO₂.
[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, ensuring alignment with the main competitors.
With regard to the target for Scope 1,the CO₂ 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.
Specifically, 2024 emissions were determined using consumption recorded in the same year and applying conversion factors in tCO₂e, in accordance with the UK Government GHG Conversion Factors for Company Reporting - DEFRA 2024 database guidelines.
With regard to the target for Scope 1,the CO₂ 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.
Specifically, 2024 emissions were determined using consumption recorded in the same year and applying conversion factors in tCO₂e, in accordance with the UK Government GHG Conversion Factors for Company Reporting - DEFRA 2024 database guidelines.
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
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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.
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 34e]
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 CO2 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.
2.2.4 Metrics
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 tCO2e, was carried out following industry guidelines, such as the ABI Lab Guidelines on the application of the European Sustainability Reporting Standards
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(ESRS) on the environment 2024 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.
Energy consumption and mix
[E1-5 DP 37,a,b,c,ci,cii,ciii]
Total energy consumption related to own operations by source
UoM
2024
Fossil sources (1)
MWh
7.766
Nuclear sources
MWh
0
Renewable sources (2)
MWh
3.270
Fuel consumption for renewables sources
MWh
0
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources
MWh
3.148
Consumption of self-generated non-fuel renewable energy
MWh
122
Total (3)
MWh
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 100% green energy from renewable sources (e.g. wind, photovoltaic, geothermal, hydroelectric, biogas, biomass) for the supply of all its owned sites and branches in Italy.
(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.
As far as metrics are concerned, it should be noted that no estimates and/or assumptions were made for the consumption of Banca Ifis-owned offices and branches. On the other hand, as far as rented properties are concerned, given the impossibility of retrieving primary input data, estimates of energy consumption were made: in particular, for all properties for which the Energy Performance Certificate (APE) is available, the value was calculated as the product between the respective surface areas (m2) and the relevant energy performance indices; for the other properties, an estimate was made on the basis of consumption indices derived from public databases.35
Energy carriers are reported in the following units:
•Natural gas: Standard cubic metres;
•Electricity: Kilowatt-hour;
•Petrol and Diesel: Tonnes.
This input data was then converted into the unit of measurement required by the regulations
Gross Scope 1 and 2 GHG emissions
35 The databases used are detailed below: SIAPE for estimating gas consumption and EIA for estimating electricity consumption.
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[E1-6 DP 48a, 49a,b,50,a,b,52a,b]

Gross GHG emissions | Level | UoM | 2024
Scope 1 (1) | Consolidated accounting group | tCO2e | 1.974
Investees with operational control | tCO2e | 0
Scope 2 (location-based) (2) | Consolidated accounting group | tCO2e | 1.049
Investees with operational control | tCO2e | 0
Scope 2 (market-based) (3) | Consolidated accounting group | tCO2e | 114(4)
Investees with operational control | tCO2e | 0

(1) The following factors were used for the calculation of Scope 1 emissions: ABI Lab Guidelines on the Bank's Application of the European Sustainability Reporting Standards (ESRS) in Environmental Matters 2024; UK Government GHG Conversion Factors for Company Reporting (DEFRA 2024). The quantities of energy vectors used by the Group, such as natural gas (punctual input data for owned properties and estimated data for leased properties) 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 also be noted that no assumptions were made for the quantification of GHG emissions and the methodology adopted was selected in accordance with the Banking Industry Guidelines.
(2) For the calculation of the Scope 2 emissions according to the "location-based" method, the emission factors given in the AIB 2024 "Supplier mix" were used, considering the entire volume of electricity purchased by the Group (point input data for owned properties and estimated data for leased properties), subsequently multiplied by the relevant specific emission factors. 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 (point input data for owned properties and estimated data for leased properties) without Guarantees of Origin (GO), multiplied by the specific emission factors of the "Residual mix" stated in the AIB 2024, was considered. No assumptions were made or specific tools used to calculate emissions, and GHG emissions other than CO2, such as CH4 and N2O, were not considered as they were not available in the emission factors used.
(4) Included in the calculation are emissions from car consumption at public petrol stations and the estimated energy consumption for rented properties, whose energy source is not certified within the Guarantee of Origin certificates. For buildings owned in Italy, the use of energy from 100% renewable sources is confirmed, in line with previous years.
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.
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 2024, the relevant categories 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 6 - Business Travel;
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•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 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 2024.
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 tCO2e/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, Environmental Extended Input Output - 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 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 2024 as input data for the Italian locations. Emission factors, expressed in kgCO2e/km travelled and converted to tCO2e/km travelled, come from the UK Government GHG Conversion Factors for Company Reporting (DEFRA 2024) 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 Environmental-extended input-output database were used.
•Category 15 'Investments': for the quantification of the issues financed on the portfolio, the Risk Management function adopted a methodology structured in five main steps. The methodology aims to attribute a value of emission intensity at the macro-sector level by relating the amount of tCO2 of GHG emissions to the volume of business generated by that same sector, also considering the "leverage" component. First of all, in order to calculate emission factors, the data collection activity was carried out, which was necessary to ensure a solid and accurate analysis: the sectoral approach allowed the use of official and certified data sources, such as the retrieval of sectoral business volumes directly from the Bank of Italy website, the value of sectoral GHG emissions from the European Environment Agency website and some sectoral financial information, 'Debt to Asset ratio', directly from Bloomberg. Subsequently, the calculation of Sectoral Emission Intensity was implemented, which is fundamental for estimating the environmental impact of the different identified investment macro-sectors (Industry, Construction, Energy, Agriculture, Waste, Automotive, Transportation, Oil&Gas). Once the calculation boundary had been defined, the Emission Intensity value was assigned to the counterparties in the portfolio, based on their economic activity and the sector to which they belonged (mapping by ATECO code). Finally, based on these elements, the function made an estimate of the Financed Emissions, thus obtaining an overall picture of the carbon footprint associated with the investments.
[E1-6 AR 46g,h]
The reporting boundary for Scope 3 includes Categories 1 and 6, which cover the entire perimeter of the Bank. Category 6, 'Business Travel', was analysed without using estimates to calculate emissions, for the Italian
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locations, based exclusively on primary data obtained 100% from partners along the value chain; for the foreign locations, the Spend-Based methodology was used in line with the GHG Protocol.
In contrast, Category 1, Purchased Goods and Services, was calculated using the Spend-Based methodology, applied to the product categories of Banca Ifis's other administrative expenses.
Finally, for the calculation of financed issues, the perimeter of reference is defined by mapping the exposures at counterparty level in the portfolio as at 31 December 2024, including Leasing Transportation, Factoring, Corporate Banking, Structured Finance, other forms of Lending (including foreign subsidiaries) and Corporate Bond with Held to Collect (HTC) business model, and excluding positions relating to Banca Credifarma (due to the absence of real estate APE), Rental, Instrumental Leasing, Cap.Ital.Fin, Sovereign Securities, Governance & Services Sector and Non-Core (due to lack of consolidated calculation methodologies) and Npl Sector. In addition, emissions from the Investment Category were calculated using sectoral proxies of Emission Intensity obtained by multiplying the "Loans", "Emissions" and "Debt to Asset ratio" data for the sectors of interest; therefore, no primary data was used.
[E1-6 DP 51, AR 46g]

Gross Scope 3 GHG emissions by category (1) | UoM | 2024
Purchased goods and services (2) | tCO2e | 32.862
% of scope 3 GHG calculated using primary data | 0
Business travel (3) | tCO2e | 446
% of scope 3 GHG calculated using primary data | 98
Investments (4) | tCO2e | 3.227.564
% of scope 3 GHG calculated using primary data | 0

(1) The reporting boundary for Scope 3, in Categories 1 and 6, 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 Category 1 - Purchased Goods and Services, the emission factors provided by Eurostat based on the NACE economic activities contained in the Environmental-extended input-output (EEIO) database were used
(3) For the calculation of Category 6 - Corporate Travel, the emission factors from the UK Government GHG Conversion Factors for Company Reporting (DEFRA 2024) and the emission factors provided by Eurostat based on the NACE economic activities contained in the Environmental-extended input-output (EEIO) database were used
(4) For the calculation of Category 15 - Investments, the emission factors derived from Banca Ifis's proprietary methodology described in connection with AR 39b were used. The data shown is reported at 31 December 2024.
[E1-6 AR 46i]
With regard to the other Scope 3 indirect emission categories under the GHG Protocol, other than Category 1, 6 and 15, 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
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view to continuous improvement, reporting will be refined annually, incorporating, where possible, any category emission sources excluded for the reasons described above36.
Gross scope 1, 2, 3 and Total GHG emissions
[E1-6 DP 44,52a,b]

Total GHG emissions | UoM | 2024
Total GHG emissions location-based | tCO2e | 3.263.895
Total GHG emissions market-based | tCO2e | 3.262.960

[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 2024 (in thousands of euros): interest and similar income, securities income, commission income, net components from financial transactions, and other operating income.
[E1-6 DP 53, AR 54, AR 55]

GHG emissions intensity | UoM | 2024
Net revenues | €/000 | 1.061.292
GHG emissions intensity, location-based (total GHG emissions per net revenue) | tCO2e/€ | 3,1
GHG emissions intensity, market-based (total GHG emissions per net revenue) | tCO2e/€ | 3,1

36 Excluded categories include: capital goods (Category 2), energy and fuel related activities not included in Scope 1 or Scope 2 (Category 3), upstream transportation and distribution (Category 4), waste generated in the course of operations (Category 5), employee commuting (Category 7) 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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[E1-6 AR 48]

| Retrospective | Target
| Base year | N | 2030 | Annual target % / Base year (1)
Scope 1 GHG emissions |  |  |  |
Gross Scope 1 GHG emissions (tCO2e) | 1.974 | 1.974 | 1.776 |
Percentage of Scope 1 GHG emissions from regulated emissions trading schemes (%) |  |  |  |
Scope 2 GHG emissions |  |  |  |
Gross location-based Scope 2 GHG emissions (tCO2e) |  | 1.049 |  |
Gross market-based Scope 2 GHG emissions (tCO2e) |  | 114 |  |
Significant Scope 3 GHG emissions |  |  |  |
Total Gross indirect (Scope 3) GHG emissions (tCO2eq) |  | 3.260.872 |  |
1. Purchased goods and services |  | 32.862 |  |
6. Business travel |  | 446 |  |
15. Investments |  | 3.227.564 |  |
Total GHG emissions |  |  |  |
Total GHG emissions (location-based) (tCO2e) |  | 3.263.895 |  |
Total GHG emissions (market-based) (tCO2e) |  | 3.262.960 |  |

(1) The target was set every five years, so it is not possible to report the annual variation.
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 34 a, b in which the 2030 targets, expressed in gCO2e/km, are shown.
Biogenic CO₂ emissions for Scope 1 and 2 are not applicable as Banca Ifis 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
Approach and reference policies
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 did not identify measurable metrics and targets in the area of biodiversity, as these sustainability issues were mainly related to the value chain; however, the Group has regulated these aspects in specific Policies with a view to continuous commitment.
IRO description
IRO category
Connection with value chain
Time horizon
Main approaches to dealing with IROs
Biodiversity and ecosystems
Participation in the protection of natural capital and biodiversity and land use through the funding of sectors and activities that promote ecologically sustainable practices
Potential positive impact
Value chain
Medium-term
Reputational risks through exposures to counterparties are linked to the loss of biodiversity
Risk
Value chain
Medium-/long-term
Credit risk related to the deterioration of the creditworthiness of counterparties with commercial activities that may have a strong impact on biodiversity due to higher costs/lower income
Risk
Value chain
Medium-term
Economic savings through the implementation and financing of activities unrelated to the organisation's core business, aimed instead at protecting biodiversity and ecosystems
Opportunity
Value chain
Medium-term
Creation and promotion of innovative financial products/services focused on sustainable investments to contribute to the protection of ecosystems, biodiversity and land conservation
Opportunity
Value chain
Medium-term
•ESG Policy
•Credit Policy
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ESG Policy and Credit Policy
[E4-2 DP 22]
The importance of biodiversity and the protection of ecosystems is also and especially reflected within the Group's credit processes. The Group defines principles and guidelines for environmental protection decisions, including biodiversity through its ESG Policy (see 2.2 ESRS E1 - Climate Change, Section 2.2.2 Energy, Climate Change Adaptation and Mitigation, DP 25). In particular, biodiversity is recognised by the Bank not only as an environmental value, but also as a strategic element for its lending policies, finding expression in its Credit Policy (see 2.2 ESRS E1 - Climate Change, Section 2.2.2 Energy, Climate Change Adaptation and Mitigation, DP 25). 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.
As described above, 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 available and concrete, as defined in the Credit Policy.
In addition to this, the Group also analyses within the Materiality Assessment process the issue of biodiversity, which is included among the criteria for assessing the relevance 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.
The Bank's commitment to contribute directly to the preservation of biodiversity and the protection of ecosystems is realised, with reference to its own operations, 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.
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3. Social
3.1 S1 - Own workforce
Material impacts, risks and opportunities
[S1.SBM-3 DP 13a]
Demonstrating the centrality of people in Banca Ifis's strategy, there is the close connection between the impacts on the bank's own workforce and its Business Plan. In particular, within the 2022-2024 D.O.E.S. Business Plan and specifically within the 'S' pillar of Sustainable, there is a space dedicated to the achievement of employee-related objectives ('Ifis People'). The strategic priorities include the importance of investing in the growth and development of the workforce through the provision of training programmes. The focus on training is reflected in the Bank's material impacts, including employee satisfaction, fostered by the implementation of well-structured training programmes and performance appraisal systems. In addition, the Group aims to improve the well-being of its people through smart working and flexitime programmes, highlighting the synergy of the impacts considered with the D.O.E.S Business Plan and the Bank's strategy. This synergy is also reinforced by the material impacts in the area of equal treatment and opportunities that are linked to the Bank's strategic commitment to create a young, dynamic and gender-balanced workforce.
[S1.SBM-3 DP 14,a]
The positive and negative material impacts within the workforce identified through the double materiality assessment, with particular reference to the areas of health and safety and equal treatment and opportunities for all, concern the entire Group corporate population, without distinction. For the remaining identified impacts, the focus was specifically on Banca Ifis employees.
[S1.SBM-3 DP 14b]
Material negative impacts were identified as potential and related to individual incidents. These relate to the following topics: (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 (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 controlled, as better described in the following paragraphs, and can affect all types of workers in their own workforce.
[S1.SBM-3 DP 14e]
The transition plan defined to reduce negative impacts on the environment, does not produce material impacts on Banca Ifis's workforce, as it focuses on strategies to target the defined objectives on the most relevant sectors of the Group's portfolio counterparties, linking initiatives to specific business opportunities and metrics.
[S1.SBM-3 DP 14c]
The main activities implemented by the Bank in order to produce positive impacts are described and detailed in paragraphs Equal Treatment and Opportunity for All (see 3.1 ESRS S1 - Own Workforce, Section 3.1.4 Equal Treatment and Opportunity for All, DP 37) and Working Conditions (see 3.1 ESRS S1 - Own Workforce, Section 3.1.5 Working Conditions, DP 37). In particular, the double materiality assessment revealed impacts that affected all employees of the Banca Ifis Group37.
37 Refer to the description of the types of employees in the metrics section.
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[S1.SBM-3 DP 15]
The Group 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.
Accordingly, Banca Ifis invests in the professional growth, well-being and safety of its employees, supporting equal opportunities, inclusiveness and respect for human rights. 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 involvement of employees and their development of skills in view of future challenges. The Ifis People are strategic players for the success of the Group, paying close attention to continuous training and recognition of their contribution in the realisation of the corporate mission.
[S1.SBM-3 DP 13b]
Aware that its strategy and business model are significantly dependent on its workforce, Banca Ifis recognises that there could be risks associated with this dependence, such as difficulties in attracting and retaining qualified talent, misalignment between internal skills and future strategic needs, as well as the possible impact on productivity and business climate resulting from employee dissatisfaction or ineffective human resources management.
At the same time, opportunities closely linked to Banca Ifis's strategy were identified. These include the development of new tools dedicated to improving the work-life balance and increasing employee satisfaction, the promotion of further initiatives aimed at the growth and development of the workforce, supported by a system of continuous training and the promotion of new initiatives that foster inclusion and value 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 14d,15]
The Banca Ifis Group has identified numerous opportunities arising from the impacts identified in the dual significance analysis process and related to its workforce. These include improving the working environment with a view to greater flexibility and sustainability, implementing initiatives dedicated to the health and safety of employees and their families, and introducing systems to ensure a better work-life balance.
On the other hand, Banca Ifis has identified some operational risks related to workforce management38 and, in particular, the possible negative impact noted in the double materiality assessment. These include the risk of operational losses due to unauthorised access to employee data (data breach) by internal staff for personal gain, as well as the risk of breaches of confidentiality, system and data integrity failures and unavailability of IT infrastructures, including as a result of cyber-attacks or inadequate internal processes.
To mitigate these risks, the Group has launched initiatives aimed at protecting confidentiality and data security, including training activities for cybersecurity certifications and awareness programmes on the correct behaviour to prevent cyber attacks. It also promotes policies of inclusion and valuing diversity through projects such as Kaleidos, helping to strengthen a fair and sustainable corporate culture. These actions are aimed at ensuring 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.
38 It should be noted that the identified risks related to employees 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.
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[S1.SBM-3 DP 16]
The material opportunities and risks that emerged from the double materiality assessment, together with the positive and negative impacts identified, cut across all Ifis People.
3.1.1 Health and safety
Group approach and policies
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.
[S1.SBM-3 DP 48a]
IRO description
IRO category
Connection with value chain
Time horizon
Main approaches to dealing with IROs
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
Promotion of initiatives aimed at the health and safety of Group employees and their families
Opportunity
Own operations
Medium-term
•ESG Policy
•Group Code of Ethics
•Company Health and Safety Policy
•Integrated Safety and Environment Manual
•Training on health and safety practices and procedures
•Risk assessment document (DVR)
•Consolidated Document for the Assessment of Risks of Interference (DUVRI)
•Interventions to improve corporate environments
•Initiatives to improve the well-being of employees and their families
Company Health and Safety Policy
[S1-1 DP 19 MDR-P]
The Banca Ifis Group defines the principles and guidelines for decisions on occupational health and safety through its Company Health and Safety Policy. In this context, the Integrated Safety and Environment Manual was developed, designed to adhere to the principles of the Policy and 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.
The company's Health and Safety Policy, approved by the Board of Directors, establishes that responsibility for managing health and safety issues is entrusted to the Prevention and Protection Service Manager (RSPP), the
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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.
The Group is committed to allocating human, instrumental and economic resources to achieve the goals of improving the safety and health of workers, considering them an integral part of its business and a fundamental strategic objective. It also ensures the appropriate use of technology, pursuing, where possible, its continuous improvement or the introduction of more advanced solutions. The Group identifies the dangers associated with the various activities, assesses the risks and implements prevention and protection measures. The adoption and application of the procedures set out in the Integrated Safety and Environment Manual aim to ensure compliance with legal regulations and good practices, protecting the health and safety of workers, company assets and workplaces. In addition to this, the Bank periodically reviews the Policy to verify its correctness and effectiveness, with a view to the continuous improvement of health and safety performance. More specifically, the Group:
•maintains up-to-date management and surveillance procedures to monitor the health and safety of personnel, detect non-compliance situations and manage emergencies;
•analyses business processes, products and activities through audits and evaluation of context data to ensure effective control;
•defines objectives for improvement in health, safety and welfare with a view to prevention;
•preventively assesses risks to personnel in relation to existing and new activities, adopting preventive measures to avoid occupational accidents and illnesses, and implements actions aimed at improving working conditions, integrating technical, production, environmental and organisational aspects;
•pursues the respect of ergonomic principles to create functional and comfortable working environments and the adoption of advanced technologies to eliminate or minimise risks at source;
•promotes training activities to make workers aware of their responsibilities and the importance of their actions to achieve the company's objectives.
The entire company structure 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. To this end, the Policy is made known and disseminated to all employees, and made accessible to all interested parties by publishing it on its website.
[S1-1 DP 23]
The Group dedicates a specific procedure of the Integrated Safety and Environment Manual to the management of accidents and injuries in the workplace, defining responsibilities, operating procedures 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, as well as establishing within its organisational structure appropriate operating procedures, sensitive processes, and human and economic resources necessary to pursue high standards of health and safety in the workplace.
Actions
[S1-4 DP 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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[S1-4 DP 37 MDR-A]
With these aims, in 2024, environmental monitoring and surveys were carried out to assess the internal well-being of property work environments, performing air quality analyses at the Group’s main locations and monitoring noise levels and microclimate, 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 a particular focus on 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, a partnership with a third party was activated in 2024, which will continue throughout 2025, through which employees can 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. In addition, a partnership with the leading on-line psychology service in Italy was activated as of July 2024, replacing the similar service previously offered by another partner. The activation of the partnership aims to promote the psychological well-being of the Bank's people and will continue to be active in 2025 through the offer of five free sessions with professionals from the on-line network and reduced rates for any follow-up meetings, to support both work and personal issues.
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 the Kaleidos Health Cloud, forty people from the Bank, who volunteered in 2024, were involved in the 'Let's Think First' research project, led by Professor Fausto Rigo under the supervision of Ircss San Camillo and aimed at the Prevention of Acute Myocardial Infarction. The instrumental examinations involve the use of a special machine, an ultrasound machine for analysing the tissue of the heart muscle as well as the carotid arteries. If any finding warrant further investigation, partecipants will be referred to the cardiology centre of the Villa Salus hospital in Mestre for a diagnostic and therapeutic course. Additionally, as part of the Health Cloud, the Group continues its partnership with WelfareCare, an initiative to promote a culture of prevention among the corporate population. In 2024, after the more than 900 mammograms and breast scans offered to female employees and their families between 2022 and 2023, the WelfareCare mobile clinic was taken to the Bank's six main locations to offer mole mapping to some nine hundred people in the Group.
At the same time, in the area of issues related to psychological-physical well-being, with a focus on the relational and emotional areas of people's lives, Banca Ifis continued its collaboration with Welfood. Between 2023 and 2024, the Ifis Parenthood on-line meetings took place: six meetings with Welfood specialists on the topic of parenting, live streamed on the company's dedicated platform, mainly focused on raising children. On 25 November 2024, on the occasion of the International Day for the Elimination of Violence against Women, Ifis Feelings was inaugurated, a column dedicated to affection in which, during six live streaming webinars, various areas of couple relationships are explored. Live broadcasts with Welfood professionals will continue in 2025 and recordings of all events are also available on demand on the company intranet.
[S1-4 DP 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.
[S1-4 DP 37 MDR-A]
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 2024, the Group provided around 2.800 hours of mandatory training on health and safety practices
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and procedures. Under no circumstances does the internal organisation become aware of the medical data of its employees.
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.
Finally, occupational medicine and health surveillance are outsourced to a national network of appointed physicians, coordinated by a coordinating doctor.
[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), 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 a procedure for analysing and managing accidents, with the introduction of improvement actions to prevent the occurrence or repetition of such events.
[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.
To this end, 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.
The Integrated Safety and Environment Manual also 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]
In the field of health and safety, the Employer, assisted 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. The Employer, or relevant delegates through their respective 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 on safety, with particular regard to
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occupational health and safety risks related to the company's activities in general or to the protection and prevention measures and activities adopted.
For the above-mentioned purposes, 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
Group approach and policies
The Group optimises the balance between professional and private life by guaranteeing 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 a key issue that contributes positively to employee well-being and improves organisational efficiency, for example, in terms of reduced turnover and increased productivity.
[S1.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon | Main approaches to dealing with IROs
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 | •ESG Policy•Group Code of Ethics•Group employee management policy•Trade union agreements on 'smart working', 'hourly flexibility', 'welfare' and 'canteen ticket'•Experimentation of 'HUB work’
Creation of systems/tools to ensure a better work-life balance | Opportunity | Own operations | Medium-term

Group Employee Management Policy
[S1-1 DP 19 MDR-P]
The Group adopts the Group Policy for Employee Personnel Management, aiming to:
•formalise the process for managing employees and collaborators (including administrative management) with particular reference to the recruitment, evaluation and training activities necessary to ensure that staff are provided with the skills and professionalism needed to perform the responsibilities assigned to them;
•guarantee implementation of the Policy to promote diversity and inclusiveness.
In this regard, it should be noted that the Group Employee Management Policy is part of the regulatory framework on diversity and inclusion, also complementing the Group Policy for the Promotion of Diversity and Inclusiveness, the Gender Equality Management System and the Strategic Plan, and is closely coordinated with the other policies and codes that have an impact on personnel management, among which the following are of particular note the Report on Remuneration Policy and Compensation Paid, the Code of Ethics, the Disciplinary Code, the Policy for the Promotion of Diversity and Inclusiveness, general and organisational regulations.
The Policy is monitored periodically, several times during the year, at discussion and evaluation meetings within the Human Resources Department.
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In addition, with specific reference to gender equality aspects, the Policy is also monitored through specific audits, as required by current legislation.
The Policy, applicable and disseminated to all Group companies with registered offices in Italy and, where compatible with local legislation and internal regulations, also to subsidiaries with registered offices abroad, 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. From a subjective point of view, the document is addressed to all employees and, as far as gender equality is concerned, also to all Group employees.
This Policy, approved by the Board of Directors on the proposal of the Human Resources Department, is made available and accessible via the company intranet.
Actions
[S1-4 DP 40b]
In pursuit of the opportunity to ensure 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, in line with the principles of inclusiveness and sustainability, aim to ensure a working environment that meets individual needs, contributing to the overall well-being of all employees and strengthening the corporate culture.
[S1-4 DP 37 MDR-A]
In particular, the two trade union agreements also applied in 2024:
•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.
[S1-4 DP 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.
[S1-4 DP 37 MDR-A]
Numerous initiatives have been renewed for 2024 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 was also renewed and extended to all employees, including those working in smart working or part-time mode. In 2024, the 'HUB work' trial aims to reduce home-to-work travel time while improving flexibility and well-being. Finally, the Bank continues to offer the possibility of joining complementary pension funds with double contributions, borne by both the company and the employee.
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The expected result of adopting the above initiatives is to improve people's work life balance and well-being. To this end, surveys are planned for 2025 that also include monitoring of the corporate climate and employees' perceptions on the subject.
[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 HR Admin & Payroll, in charge of the quantitative reporting of the results obtained through the actions undertaken.
3.1.3 Training and skills development
Group approach and policies
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 | Main approaches to dealing with IROs
Training and skills development
Employee satisfaction through training programmes | Actual positive impact | Own operations | Medium-term | •ESG Policy•Group Code of Ethics•Group employee management policy•Ifis Academy•Performance appraisal system
Enhancement of individual performance through appropriate performance appraisal systems and professional development plans | Actual positive impact | Own operations | Medium-term
Promotion of initiatives related to workforce growth and development through an effective training system | Opportunity | Own operations | Medium-term

Group Employee Management Policy
[S1-1 DP 19]
Employee training is managed in accordance with the Group Policy for Employee Personnel Management described above (see 3.1 ESRS S1 - Own Workforce, section 3.1.2, Work-Life Balance, DP 19) which, in addition to
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defining the guidelines for work-life balance, commits the Bank to enhancing human capital by promoting the continuous training and professional development of employees, in order to ensure that staff are equipped with the skills and professionalism needed to perform the responsibilities assigned to them.
Actions
[S1-4 DP 40b]
Banca Ifis Group promotes the growth and development of its workforce through a structured and effective training system, centred on Ifis Academy, considering it an important opportunity for internal skills strengthening and innovation. This is accompanied by constant monitoring of the level of satisfaction and effectiveness of the training activities, conducted at the end of each initiative, to ensure alignment with the set training objectives and the achievement of quality standards.
[S1-4 DP 37 MDR-A]
The Ifis Academy, an in-house training school inspired by the Group's leadership model, integrates technical and behavioural skills and is at the heart of the Group's talent enhancement and development system. In 2024, the attention paid to training its employees resulted in 49.613 hours provided to the corporate population, distributed among executives (1.276 hours), middle managers (17.510 hours) and clerical staff (30.827 hours), demonstrating the importance attached to continuous growth and professional excellence at every level of the organisation. Of these, 23.857 hours were dedicated to female workers and 25.756 hours to male workers, showing a balanced focus on training all employees, regardless of gender.
It should also be noted that a total of 49.613 hours of training were provided, distributed among the following areas: health and safety (2.746), anti-corruption (2.570), anti-money laundering (4.627) and 'other39'.
In order to identify the managerial potential of Ifis People and take care of their growth in a proactive and constant manner, in 2024 the Group started a project dedicated to the mapping and periodic monitoring of talents, through a competence tracking system. Once fully in place, this process will enable the implementation of a formal talent development strategy, which complements the targeted and individualised training and development programmes described below.
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 talents, 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 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 2024, the participants, divided into working groups, were involved in the development of a number of business cases related to the Bank's strategic projects. The course made possible a significant increase in participant satisfaction, promoting greater engagement with the organisation and obtaining greater loyalty among participating employees, which stands at 98%. Start to Grow completes the training offer of the Academy cluster dedicated to the Talent
39 'Other’ includes training hours provided in the ESG area.
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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 2024, participants took part in dedicated networking and mutual acquaintance activities in a number of important Italian theatres divided into three subgroups, while in 2025 a learning-sharing event is planned in a dynamic and engaging manner. 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, training courses aimed at specific structures of the Commercial & Corporate Banking and Npl business. In its 'basic' version, the course is intended for newly recruited employees and aims to provide the key elements needed to enable and empower employees in the role. The activity is organised annually, depending on new employees joining the organisation. A new edition of the advanced course is being planned, intended for more senior staff and in which ample space is devoted to deepening technical business knowledge, enhancing the soft skills inherent to the role, market insights and future trends (artificial intelligence, ESG) where more than 50 employees of the Npl and Commercial & Corporate Banking businesses will be involved. Dedicating specific pathways to business structures enhances 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, started in October and will continue throughout 2025 with the aim of providing 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;
•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 includes all 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, MiFID 2, etc.;
•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 cyber security 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 2024 for some key figures with the aim of strengthening their skills in the cyber sphere, and a webinar open to the entire corporate population on cybersecurity, organised on the occasion of the European Cyber Security Month promoted by the European Union, focused on good practices and behaviours to be adopted to prevent cyber attacks.
[S1-4 DP 38c]
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.
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[S1-4 DP 37 MDR-A]
This is also possible thanks to the support of the Ifis Talent platform, the Banca Ifis Group's Talent Management System40, which was updated early 2024 with a new easy, intuitive and innovative layout and important 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 view and get to know the 'history' 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, digital pills taken and digital pills shared with employees.
In addition, the induction process for new employees within the organisation, which aims to welcome and accompany people by facilitating the acquisition of autonomy, fostering inclusion in teams and developing a sense of belonging to the company, has been digitised within the Ifis Talent platform and includes, among other activities, a series of individual and/or group appointments.
The platform is also equipped with an extensive digital library that is constantly being updated, with new titles being introduced to meet the continuing education needs of all employees.
[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.
In 2024, the performance management process was fundamentally revised 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. The revision was conducted through a co-design approach that directly involved employees through:
•exploratory survey, with over 760 participants, to gather feedback and analyse expectations;
•qualitative interviews with managers to explore the key factors of a culture of mutual exchange;
•two in-person focus groups with approximately forty volunteer employees to discuss the central aspects of the new process.
Through this revision, it is intended to achieve greater alignment between individual and corporate objectives, improving organisational cohesion, employee motivation and involvement through a more dynamic and efficient working environment.
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.
40 Currently only accessible to employees of Italian Group companies.
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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 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, in May, five employees were rewarded, having obtained the 'Ifis Talent Super Ambassador' badge in 2023, achieving the highest level in the programme's three categories: enjoyment and sharing of digital pills and feedback exchange. The sustainable award ceremony saw the adoption of five beehives (one for each award winner) in collaboration with 3Bee, as well as the handing over of a symbolic physical gift.
The awardees participated in a dedicated training on the topic of feedback, which registered the highest level of satisfaction. The activity aimed to make them Ambassadors of the Ifis Talent platform and to define a shared vademecum to provide effective feedback. These initiatives demonstrate Banca Ifis's commitment to ensuring continuous training and empowering employees as active promoters of good business practices.
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 takes care of the definition of resource requirements, ensuring the proper functioning of organisational units, and manages crucial activities such as staff recruitment, selection, induction, development and management. This includes 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 Department, on the basis of the results of the annual evaluation and any quality gaps that may have emerged in this context, designs, plans and implements a training programme for employees; it verifies its use and monitors its effectiveness; special attention is paid to monitoring the use of compulsory training.
3.1.4 Equal treatment and opportunities for all
Approach and reference policies
As explained in the Code of Ethics, 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.
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[S1.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon | Main approaches to dealing with IROs
Measures against violence and harassment in the workplace
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 | •ESG Policy•Group Code of Ethics•Policy to combat violence and harassment in the workplace •Policy to promote diversity and inclusiveness•Whistleblowing
Creating and promoting projects that uphold values such as gender equality, inclusion and valuing diversity | Opportunity | Own operations | Medium-term
Diversity
Discrimination due to non-inclusive practices in the workplace | Potential negative impact | Own operations | Medium-term | •ESG Policy•Group Code of Ethics•Policy to promote diversity and inclusiveness
Creating and promoting projects that uphold values such as gender equality, inclusion and valuing diversity | Opportunity | Own operations | Medium-term
The employment and inclusion of persons with disabilities
Integration of workers with disabilities for accessibility and barrier-free accessibility | Actual positive impact | Own operations | Medium-term | •ESG Policy•Group Code of Ethics•Policy to promote diversity and inclusiveness
Creating and promoting projects that uphold values such as gender equality, inclusion and valuing diversity | Opportunity | Own operations | Medium-term
Gender equality and equal pay for work of equal value
Gender equality and equal pay for work of equal value | Potential negative impact | Own operations | Medium-term | •ESG Policy•Group Code of Ethics•Remuneration and incentive policies•Policy to promote diversity and inclusiveness•Gender Equality Management Regulatory Manual •Strategic Plan for Gender Equality•Uni PdR certification: 125 2022 “continuously improving”
Creating and promoting projects that uphold values such as gender equality, inclusion and valuing diversity | Opportunity | Own operations | Medium-term

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Group Policy to promote diversity and inclusiveness
[S1-1 DP 19 MDR-P]
With the aim of further consolidating and ensuring respect for diversity, in October 2023 the Banca Ifis Group issued the Group Policy for the Promotion of Diversity and Inclusiveness (D&I), which formalises, in line with the Group's Code of Ethics, the principles on diversity and inclusion adopted in order to promote a culture that allows all its employees and associates to be treated without discrimination. More specifically, the Group:
•is committed to ensuring that all Ifis People can freely express their personality and individuality on a daily basis, recognising and enhancing their potential and value in compliance with the company's rules of conduct;
•promotes inclusive treatment and stimulates the meritocracy of Ifis People;
•does not tolerate direct or indirect discrimination, explicit or otherwise, based on any diversity characterising a person's identity;
•values the mix of different generations and nationalities and gender representativeness and a variety of backgrounds, which are recognised as sources of continuous enrichment, thanks to the diversity of skills, abilities, experiences, perspectives and aspirations brought by each Ifis Person;
•promotes the creation of social value for its own benefit and that of the community in which the Group operates;
•works to ensure that any conduct contrary to D&I policies is identified and denounced;
•supports and promotes partnerships with organisations and bodies active in the D&I arena.
The Banca Ifis Group has developed this policy taking into account the main national and international regulations such as, but not limited to, the Universal Declaration of Human Rights approved by the United Nations General Assembly; the Sustainable Development Goals (SDGs) of the 2030 Agenda adopted by the United Nations; Bank of Italy Circular no. 285 of 17 December 2013, Part One, Title IV, Chapter 1, Section III, under the heading "Duties and Powers of Corporate Bodies"; Legislative Decree No. 58 of 24 February 1998 (Consolidated Law on Financial Intermediation), Article 147-ter, paragraph 1-ter. Banca Ifis monitors the application of the policy and compliance with the aforementioned provisions through annual audits, aimed at assessing the maintenance of the KPIs envisaged by the Gender Equality Certification and the achievement of the objectives defined in the strategic plan, as well as the verification process envisaged by Bank of Italy Circular No. 285/2013.
The Policy, approved by the Board of Directors on the proposal of the Sustainability Committee and the Remuneration Committee, is made available and accessible via the corporate website and is applicable and disseminated to all organisational units of the Group.
[S1-1 DP 24a]
The Banca Ifis Group has implemented a management system to prevent or mitigate negative impacts on the workforce with regard to inclusivity, resulting from the adoption of the Policy for the Promotion of Diversity and Inclusiveness, guaranteeing fair treatment for all employees and collaborators, without discrimination based on 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 on any other condition, element or diversity characterising the person.
[S1-1 DP 24b]
The Group therefore guarantees equal opportunities for all Ifis People, making no distinction on the basis of sexual orientation or gender, age or professional seniority and regardless of their cognitive, sensory and motor abilities, promoting the integration and inclusion of persons with disabilities and fully leveraging their talents and skills. It strives for the promotion and enhancement of interculturalism internally and externally, including in personnel selection, adhering to an open and inclusive social model, and promotes respect for all religions in professing one's faith.
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[S1-1 DP 24d]
To this end, the Group strives to ensure that the processes, policies and actions of Ifis People comply with the D&I principles set forth above. Ifis People must all 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.
[S1-1 DP 24c]
The Banca Ifis Group has implemented a Gender Equality Management System following the adoption of the Policy for the Promotion of Diversity and Inclusiveness and has therefore taken action to remedy the impacts deemed material through the adoption of a Gender Equality Strategic 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.
Policy to combat violence and harassment in the workplace
[S1-1 DP 19 MDR-P]
[S1-1 DP 24a]
The Policy 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, etc.);
•promotes language that respects gender diversity.
[S1-1 DP 24c]
On this basis, 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 highest standards of 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.
The Policy on violence and harassment in the workplace, approved by the Board of Directors on the proposal of the Sustainability Committee and the Remuneration Committee, is made available and accessible via the corporate website.
This is inspired by a broad international and national regulatory framework, aimed at ensuring a safe and respectful working environment for all employees. The Bank follows the guidelines set out in various European and international legislation addressing equal treatment and the prevention of harassment in the workplace, including
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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.
[S1-1 DP 24b]
Within its policy, it clearly and precisely defines behaviour that is considered unacceptable, providing detailed guidance to prevent and counteract all forms of violence, harassment and discrimination.
In particular, the Group adopts a zero-tolerance policy 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.
The Group condemns, as already prescribed in the D&I Policy, any form of discrimination based on race, colour, ethnicity, social origin or physical appearance. Any act of prejudice, hatred or violence that excludes or disadvantages a person on such grounds is deemed unacceptable, as it is contrary to the fundamental principles of human rights and the values of inclusion and respect promoted by the Bank.
Likewise, any discrimination against persons with disabilities is prohibited, whether in a direct form, through unfavourable treatment compared to others, or in an indirect form where rules, practices or conduct place a person with a disability at a disadvantage. The Group promotes an inclusive and respectful working environment, in which each person can feel valued and protected, without fear of discrimination or harassment.
In addition, to confirm the Bank's attention to promoting gender equality, UNI PdR 125:2022 certification was obtained in addition to the Winning Women Institute certification obtained in 2022 - the first Bank in Italy to do so. The Bank aims to ensure that all forms of discrimination and harassment are treated seriously, promoting a working environment based on mutual respect and personal dignity.
[S1-1 DP 24d]
The Policy also identifies unacceptable behaviour that may lead to disciplinary sanctions and describes the process for reporting such behaviour, in order to ensure that all forms of discrimination are avoided, mitigated and addressed within the Group.
For the activation of the external reporting channel, and the consequent monitoring of compliance with the Policy, the possibility is envisaged of activating the external channel with a specialised type of service known as a "Trust Advisor" (also CoF), a figure with expertise in issues concerning the different forms of discrimination, violence or harassment in the workplace (including sexual harassment) who has psychological and legal skills and therefore a specific ability to listen to and take charge of the person (see 3.1 ESRS S1 - Own workforce, section 3.1.8, Channels, DP 32). The Trust Advisor helps the person to clarify the specifically reported situation and orients him/her with regard to possible paths that can be activated within the company or externally to deal with what he/she is experiencing. The Trust Advisor can guarantee the anonymity of the parties involved and in any case ensure their confidentiality. Lastly, he formulates opinions and/or recommendations, to support the Human Resources Department or the internal bodies concerned from time to time, at their request, in the assessment of appropriate actions aimed at promoting an organisational climate that ensures equal dignity and respect for people within the Banca Ifis Group.
Banca Ifis is committed to handling all reports promptly and confidentially, ensuring that effective corrective action is taken in line with the principles of dignity and equal opportunities.
The Remuneration and Incentive Policy
[S1-1 DP 19 MDR-P]
The aim of the Remuneration and Incentive Policy, approved by the Board of Directors, is to align the behaviour of management and staff with the interests of all stakeholders, directing their actions towards the achievement of sustainable medium-long term objectives. More specifically, the Policy guarantees that the Bank remains gender-
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neutral and contributes 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.
The Policy is inspired, in particular, by the principles set out below:
•promote sound, effective risk management, not encouraging risk-taking that exceeds the level of tolerated risk;
•promote the competitiveness and good governance of the Group;
•attract and retain in the company individuals with professionalism and skills suitable for the Group's needs, especially when they play important roles within the company organisation;
•encourage compliance with all legal and regulatory provisions, as well as transparency and correctness in relations with customers, discouraging any violation and/or unfair commercial practice; make corporate objectives consistent with the Group's sustainable growth objectives;
•Search for the best alignment between the interests of different stakeholders;
•focus on risk containment policies;
•avoid altering or undermining the risk alignment effects inherent in remuneration arrangements;
•avoid creating situations of conflict of interest.
Remuneration policies are 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. As described previously, the Bank has prepared a Policy to promote diversity and inclusiveness that aims to outline the method by which the Group guarantees that all employees (and collaborators) are treated with no direct or indirect distinction or preference, based on age, gender, sexual orientation, marital status, religion, language, ethnic or national origins, physical or mental disabilities, state of pregnancy, maternity or paternity, including through adoption, personal beliefs, political opinions, affiliation or trade union activities.
The Board of Directors has exclusive competence over the remuneration and incentive policies to be submitted to the Shareholders' Meeting. It reviews these policies at least once a year and is responsible for their proper implementation. In addition, the Sustainability Committee as the Steering Committee that assesses the Group's remuneration and incentive policies as set out in the Report on Remuneration Policy and Remuneration Paid, with reference to issues related to ESG objectives.
Remuneration policies are prepared by the Human Resources Department with the support, mainly, of Compliance and Risk Management.
Actions
[S1-4 DP 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 the enhancement of diversity, an important opportunity to strengthen its commitment, in line with the core principles of the 2022-2024 Business Plan. As evidence of these values, since 2023 the panels "We are Difference" and "We are One" have been displayed in all offices and branches, reaffirming the Bank's attention to 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.
[S1-4 DP 37 MDR-A]
In 2024, the focus on employees took the form of an editorial plan on the company intranet with articles, webinars and monthly initiatives on diversity and inclusion issues. On the occasion of the International Day for the Elimination of Violence against Women, several activities were carried out, including a special logo visible on various channels, an installation with red lighting in the Milan headquarters, symbolic installations carried out
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directly by employees in the Group's offices and branches, and a webinar, directly involving employees, conducted in cooperation with Welfood professionals on the signs of gender-based violence.
Similar initiatives were organised on the occasion of the International Day of Kindness, with the aim of promoting a shared culture and inclusive and respectful language in order to prevent conflicts and discourage non-inclusive practices within the workplace. While on the occasion of International Women's Day, bookmarks on the condition of women in the world were distributed to all employees.
The Bank has also launched communication campaigns on topical issues, e-learning courses on Diversity&Inclusion and Unconscious Bias, and launched the quarterly newsletter 'Sustainability News' dedicated to ESG and D&I issues, which reports on the latest news on the Bank's commitment and the path taken to support the sustainable transition of SMEs and increasingly integrate ESG criteria within the business model.
These initiatives were complemented by company projects aimed at actively involving employees, such as:
•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;
•the first corporate volunteering week in cooperation with Banco Alimentare, which saw employees active in nine Italian regions and also participating in the National Food Collection Day as volunteers;
•the collection of school supplies, in collaboration with the Dragonfly Association, which resulted in the donation of two hundred and fifty kilograms of stationery to combat school poverty;
•participation, as a platinum partner, in the solidarity padel tournament promoted by the CAF (Centro Aiuto Minori e Famiglia) Association;
•blood donation day, in collaboration with AVIS in the Rome 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, we expect employees to identify with a shared culture that reflects the Bank's values. In pursuit of this aim, constant information, training and awareness-raising initiatives are undertaken among the entire corporate population, spreading the culture of equality and non-discrimination. A targeted survey on D&I issues is also planned for 2025.
[S1-4 DP 38a]
Although the Banca Ifis Group is actively committed to upholding fundamental values such as gender equality, inclusion and valuing diversity, it recognises the need to address and mitigate the possible negative impacts of insecure employee situations. 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. The Group therefore aims to reduce these potential negative impacts by promoting a safe, respectful and inclusive working environment.
[S1-4 DP 37 MDR-A]
In 2024, a new strategic objective was introduced within the performance management system for employees of Italian companies, aimed at fostering an increasing commitment to sustainability. The objective includes the completion of an e-learning training path available in Ifis Talent called 'ESG Path - Overview companies and the 2030 Agenda', which provides an overview of the ESG world and the 2030 Agenda, with a focus on gender equality (Goal 5) and reducing inequality (Goal 10). Specific targets have been set for some structures of the Npl business. The training course is included among the compulsory activities for all Group personnel, together with an e-learning course dedicated to Unconscious Biases, unconscious prejudices that hinder individual freedoms and the protection of diversity in organisations, carried out in cooperation with Valore D. The course raises awareness on
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issues such as gender harassment and sexual harassment, and explores behaviours to be adopted in the event of such episodes.
Also as part of the compulsory training, an e-learning course was made available in Ifis Talent on the Code of Ethics adopted by the Group, which defines principles, values, rights, duties and responsibilities towards all stakeholders. The course, which includes a section on ESG and the principles of diversity and inclusion, is designed to be usable by all employees and also made available in ISL (Italian Sign Language) and English, ensuring maximum accessibility.
A new edition of the 'People Management Accelerator' training course has been promoted, 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.
The payment of a variable performance bonus linked to gender issues and the principles of inclusiveness was confirmed, as previously described in the chapter on general information (see 1.1 ESRS 2 - General Information, section 1.1.3 Governance, DP 29c). To address possible pay inequalities, the job evaluation system was updated to identify homogeneous roles and monitor pay gaps, gearing the pay review processes towards continuous improvement.
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'.
[S1-4 DP 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 disabled 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, etc.).
[S1-4 DP 37 MDR-A]
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. In addition, in accordance with provisions in force, the Group promotes the adoption of all measures necessary to overcome physical obstacles, to allow equal access to the offices by all Ifis People, removing all architectural barriers by means of ad hoc equipment, aids and tools, such as lifts, stairlifts and so on.
In a parallel fashion, the company website and intranet were integrated with innovative tools to improve the browsing experience and accessibility for people with physical and cognitive disabilities. These visually unobtrusive but very powerful tools 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 visual, motor 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 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, thus recognising the concrete commitment to promoting equality and inclusive policies within the organisation. Obtaining UNI/PdR
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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 was also confirmed in 2024 during the audit carried out by the relevant body.
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 2024, 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.
As part of the Policy on Combating Violence and Harassment in the Workplace, monitoring through dedicated reporting is planned from FY 2025 onwards, which will enable the monitoring of reported cases with a significant impact and will allow targeted actions and initiatives to be implemented from 2026 onwards.
[S1-4 DP 39]
This constant monitoring is also intended to identify necessary and appropriate actions in response to impacts on employees and the subsequent detection of 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. The Sustainability Committee, with the support of the Human Resources Department, is in charge of monitoring compliance with D&I principles, integrating them into Group policies and processes, implementing the strategic 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 company's strategic 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.
3.1.5 Working conditions
Approach and reference policies
Human rights and respect for working conditions are a central issue for the Banca Ifis Group, which is constantly committed to integrating them into its activities and relationships. This commitment finds expression in the Group's Code of Ethics, which defines the principles, values, rights, duties and responsibilities adopted towards all
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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 | Main approaches to dealing with IROs
Secure employment
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 | •ESG Policy•Group Code of Ethics•Provision in the national collective bargaining agreement determining the limits of employment with fixed-term contracts/administration and significant conversion of fixed-term contracts into open-ended contracts
Social dialogue/Freedom of association, the existence of works councils and the information, consultation and participation rights of workers/Collective bargaining
Employee satisfaction through compliance with union agreements and/or freedom of association of employees | Actual positive impact | Own operations | Medium-term | •ESG Policy•Trade union meetings•Group Code of Ethics
Working time
Increased psychological-physical well-being of workers through the use of flexitime and/or remote working arrangements | Actual positive impact | Own operations | Medium-term | •ESG Policy•Group Code of Ethics•Trade union agreements on 'smart working' and 'flexibility of working hours’

ESG Policy
[S1-1 DP 19]
The Group's ESG Policy (see 2.2 ESRS E1 - Climate Change, Section 2.2.2 Energy, Adaptation and Mitigation of Climate Change, DP 25) emphasises the attention paid to the respect of universally recognised human rights, considered an essential 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 foster a culture of sustainability by encouraging responsible behaviour among Group employees and the integration of environmental, social and governance considerations into its operations. Through this integration, the Group aims to achieve a positive impact in creating value for all stakeholders, with a view to promoting sustainable success.
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 promote a safe, healthy and discrimination-free working environment for all Group employees, ensuring 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.
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Code of Ethics
[S1-1 DP 19]
The Code of Ethics (see 4.1 ESRS G1 - Business Conduct, section 4.1.1 Corporate culture and protection of whistleblowers, DP 7 MDR-P) adopted by the Banca Ifis Group enhances working conditions, 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 working climate.
[S1-1 DP 20]
The Group is formally committed to promoting and respecting universally recognised human rights, in accordance with the principles enshrined in the Universal Declaration of Human Rights, through the application of the ESG Policy.
[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]
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 adheres to 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. The details of this instrument are discussed in more detail in the section on Policy on Combating Violence and Harassment in the Workplace (see 3.1 ESRS S1 - Own Workforce, section 3.1.4 Equal Treatment and Opportunity for All, DP 19 MDR-P).
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Actions
[S1-4 DP 38a]
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.
[S1-4 DP 37 MDR-A]
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 actions aimed at generating positive impacts, ensuring worker satisfaction and promoting their psychological-physical well-being. In particular, the Bank has put in place measures to respect employees' freedom of association, ensuring a fair and inclusive working environment. In addition, through specific trade union agreements (see 3.1 ESRS S1 - Own workforce, section 3.1.2 Work-life balance, DP 37 MDR-A), flexible working tools, such as flexitime and remote working, have been introduced, which are conducive to improving the psychological-physical well-being of employees. These initiatives testify to the Banca Ifis Group's concrete commitment to fostering workforce satisfaction and motivation.
[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 determining the actions needed to reduce or address the negative impacts of any employment instability, with the adoption of such actions closely linked to trade union negotiations. During these negotiations, positive impacts are assessed in advance through structured proposals based on market benchmarks and simulations that consider both quantitative and qualitative aspects on 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 defined within trade union agreements, which provide 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
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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.
3.1.6 Other work-related rights (privacy)
Group approach and policies
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. The Group also strives to prevent and manage information security incidents in a timely manner in order to protect proprietary information, which includes, among other things, the data of customers, employees, suppliers, and any other party with which the Group does business.
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[S1.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon | Main approaches to dealing with IROs
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 | •ESG Policy•Group Code of Ethics•Privacy regulatory manual•Centralised organisational structure to manage the Group's Privacy and Security•Training plans aimed at consolidating adequate awareness and a corporate culture based on IT security
Risk of operational losses due to unauthorised access to employee data (Data Breach) by Banca Ifis staff for personal gain | Risk | Own operations | Medium-term
Risk of loss due to breach of confidentiality, failure of systems and data integrity, inadequacy or unavailability of systems and data. This includes security risks resulting from inadequate or failed internal processes or external events, including cyber-attacks | Risk | Own operations | Medium-term
Promotion of initiatives aimed at ensuring confidentiality and privacy in the Banca Ifis workplace | Opportunity | Own operations | Medium-term

Privacy regulatory manual
[S1-1 DP 19 MDR-P]
The main internal regulatory source governing personal data protection is represented by the Privacy Regulatory Manual approved by the Board of Directors of Banca Ifis as Parent Company, and incorporated by the subsidiaries through Italian law. 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.
In particular, the Privacy Regulatory Manual defines the organisational model of privacy management and, together with other detailed procedures on the subject, describes the set of guidelines and rules of conduct, to be followed by both internal and external players to the Group, regarding the processing and protection of personal data in the context of company operations, both ordinary and extraordinary. Through the application of the Manual, the Group aims to protect the personal data processed by Banca Ifis and the Italian-registered companies it controls, ensuring respect for fundamental freedoms and promoting the proper handling of personal data. In particular, in implementing the protection of confidentiality, the Bank is committed to complying with all industry regulations, including codes of conduct promoted by trade associations (e.g. Unirec Code of Conduct in debt collection) and has developed the Manual in full compliance with the principles of the General Data Protection Regulation (GDPR):
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•lawfulness, fairness and transparency: any processing must have a legitimate legal basis (such as consent, performance of a contract or a legal obligation) and the data subject must be clearly informed of how the processing is carried out;
•purpose limitation: data must be collected for specific and legitimate purposes and must not be further processed in a way incompatible with those purposes;
•data minimisation: data collected must be adequate and relevant, limited to what is necessary in relation to the purposes of processing;
•integrity and confidentiality: data must be protected against unauthorised access, loss, destruction or accidental damage by appropriate technical and organisational measures.
It is crucial for the Bank that everyone respects the principles of data protection, 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. In order to ensure maximum transparency and accessibility to this tool, Banca Ifis has published an abstract of the regulatory privacy handbook on its corporate website.
There is no periodic review process of the Privacy Rulebook, while the process of monitoring its correct application is the responsibility of the control functions.
Actions
[S1-4 DP 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.
[S1-4 DP 37 MDR-A]
In the course of 2024, an in-depth review was conducted of the process for managing personal data relating to employees, whether active or terminated, in e-mail, repositories and backups, with the aim of further regulating access to this information according to even stricter criteria. In line with the indications of the Guarantor Authority, the prescriptions contained in the 'Guideline Document. Computer programmes and services for managing e-mail in the work context and processing metadata', restrictively regulating the use of metadata generated by the use of corporate e-mail.
In addition, a specific process was formalised to limit or prohibit access to images collected by video surveillance systems, ensuring greater protection of the privacy of employees and collaborators.
[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 privacy 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 41. 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.
41 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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[S1-4 DP 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 confidentiality 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.
[S1-4 DP 37 MDR-A]
In 2024, 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 been enriched with new compulsory training courses on 30 topics of phishing and IT security, complemented by a series of fifteen training pills on 'Digital Transformation'. In addition, awareness-raising campaigns 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 cyber security posture required to support the digital evolution path. In particular, the first inter-bank phishing championship was set up, 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 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: planning, to define security policies, objectives and controls; implementation, to implement the measures established with the involvement of the relevant corporate functions; verification, to monitor the performance of the solutions adopted and analyse their results; and improvement, to apply corrective and preventive actions based on the verifications carried out. 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.
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[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.
[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.
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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 under the scope of a variation of appointed physicians, or in risk assessment;•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 is the responsibility of the 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 | •Survey through interviews and focus groups | HR Department and the Director of Human Resources
Other work-related rights (privacy) | Workers' representatives | •Where necessary, through meetings with workers' representatives and trade associations and/or trade unions | Human Resources Department

(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 involvement of its workforce and the agreements reached through regular meetings with workers' representatives, aimed at monitoring the results achieved and the level of employee
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satisfaction. This assessment is also supported by the ongoing employee relations activities carried out by the HR Business Partner (HRBP) Department, ensuring constant dialogue and proactive attention to staff needs.
[S1-2 DP 28]
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.
3.1.8 Channels
[S1-3 DP 32a]
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(s) 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 addition, for 'Health, Safety and Environment' issues, employees can refer to a dedicated section within the Service Desk application available on the company intranet. 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 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:
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•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;
•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.
The Bank has extended the possibility of reporting to all those who work or collaborate with the Group, thus widening the pool of whistleblowers. Several reporting tools are in place, allowing the reporting of 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 2024 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 and the toll-free number were positive. In addition, as for previous years, no incidents of discrimination were reported in 2024.
Trust Advisor
[S1-3 DP 32b]
As mentioned above, the Group has made available to employees an external channel, the 'Trust Advisor' (CoF), 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 grievances has two modes: an informal process, aimed at fostering timely resolution of issues through dialogue and discussion, and a formal process, which involves the activation of structured procedures for the management and possible follow-up of reports:
[S1-3 DP 32e]
•informal procedure: relating 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 quickly as possible in relation to the sensitivity and complexity of the concrete situation, reasonably within 45 days, and must provide for subsequent monitoring to verify its success.
If the reported conduct is repeated and/or retaliatory behaviour towards the Whistleblower and/or the Witnesses is carried out, the formal procedure may be followed.
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•formal procedure: this is triggered in all situations deemed by the reference person (CFO, HRBP or manager) to be of a significant scale or 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(s), with a view to preventing and combating non-compliant behaviour.
Privacy
[S1-3 DP 32b]
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.
[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'
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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.
Lastly, through the adoption of the Whistleblowing Policy (see 4.1 ESRS G1 - Business Conduct, section 4.1.1 Corporate culture and protection of whistleblowers, DP 7 MDR-P) the Banca Ifis Group guarantees all the necessary measures to protect the physical integrity and moral dignity of whistleblowers, ensuring them adequate protection against any form of retaliation, penalisation, discrimination or threat. At the same time, the Policy for Combating Violence and Harassment in the Workplace 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.
3.1.9 Targets
[S1-5 DP 46 MDR-T]
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.
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 working40% Number of days/month smart working | Maintenance Target | 40% dayssmart working/month(2024) | 2026
Equal treatment and opportunities for all | Gender parity on the workforce>50% women | Maintenance target | 53% women(2024) | 2026
Women in leadership roles>40% | Target increase | 39% (2024) | 2026
Minimum open-ended contracts>97% | Maintenance target | 97%(2024) | 2026
Application of ESG KPIs to the remuneration systemIncentive variable (1)100% of employees of the Group's Italian companies | Maintenance target | 100% ofemployees of the Group's Italian companies | 2026
Remuneration of top management related to ESG topics15-20% Variable remuneration of top management linked to sustainability (2) | Maintenance target | 15-20% Variable remuneration of top management linked to sustainability(2024) | 2026
ESG training100% 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 involvement 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, on the 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 involvement 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.
3.1.10 Metrics
[ESRS 2 DP 77 MDR-M]
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
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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.
[S1-6 DP 50a,d,di,dii,f AR 55]

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

(1) The employees of all Group companies as at 31 December 2024 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 AR 55]

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

(1) In the count, in number of persons, only employees of Italian companies as at 31 December 2024 as foreign companies do not exceed the 10% limit or the number of 50 employees.
[S1-6 DP 50b,bi,bii,biii,d,di,dii AR 55]

Total employees (1) | UoM | 2024
Permanent employees (total) | No. | 1.962
Men | No. | 924
Women | No. | 1.038
Other | No. | 0
Not reported | No. | 0
Temporary employees (total) | No. | 51
Men | No. | 28
Women | No. | 23
Other | No. | 0
Not reported | No. | 0
Total | No. | 2.013

(1) The count, in number of persons, includes the employees of the entire Group perimeter including foreign companies as at 31 December 2024. In addition, apprentices were also included within the category of permanent workers. The information is extracted from the Cedacri application (until 31 December 2024) for Banca Ifis, Ifis Npl Servicing, Ifis Npl Investing and Ifis Rental Services. For Cap.Ital.Fin., the data is provided by Studio TP Service, while for Banca Credifarma they are extracted from the Zucchetti application. For foreign companies, the data for Poland is compiled by Grant Thornton Studio and those for Romania by Crowe Studio.
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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.
[S1-6 DP 50c,d,di,dii]

Total employee who have left the organisation | UoM | 2024
Voluntary (1) | No. | 73
Due to dismissal (2) | No. | 5
Due to retirement (3) | No. | 0
Due to death (4) | No. | 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 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 line 16 (voluntary resignation).
(4) It is specified that the death is not attributable to work-related causes.
It should be noted that the employee turnover rate during 2024 was 3,9%, calculated using the total number of Group employees, including foreign companies, as the denominator of the KPI.
[S1-8 DP 60a,b]

Employees covered by collective bargaining agreements (1) | Country | UoM | 2024
Percentage of total employees covered by collective bargaining agreements | Group | % | 99
Percentage of total employees covered by collective bargaining agreements are within coverage rate by country (within the EEA) | Italy | % | 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.
[S1-8 DP 63a]

Employees covered by workers' representatives | Country | UoM | 2024
Percentage of employees in the country (EEA) covered by employee representatives | Italy | % | 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.
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[S1-8 AR 70]

| Collective bargaining coverage | Social dialogue
Coverage rates | 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 | 2024
Men | No. | 10
% | 77
Women | No. | 3
% | 23
Other | No. | 0
% | 0
Not reported | No. | 0
% | 0
Total | No. | 13

(1) Top 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 | 2024
Under 30 years old | No. | 117
% | 6
Between 30 and 50 years old | No. | 1.457
% | 72
Over 50 years old | No. | 439
% | 22
Total | No. | 2.013

(1) The figures include the entire Group perimeter including foreign companies.
[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.
[S1-12 DP 79]

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

(1) Workers belonging to both types of protected categories were included in the count: Disabled civilians (87) 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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[S1-13 DP 83a, AR 77]

Regular performance and career development reviews | UoM | 2024
Men | % | 89
Women | % | 94
Other | % | 0
Not reported | % | 0
Number/proportion of performance review per employee | % | 92
Number of reviews in proportion to the agreed number of reviews by the management | % | 100

The Perform Up 2024 process refers to the performance achieved in the previous year, involving all employees hired by 30 September 2023 who have served at least three months in that year. Therefore, not all active employees as at 31/12/2024 took part in the process. It should be noted, however, that the new Performance Management process encourages the formalisation of feedback from the evaluator for each member of their team at the Mid-Year Review stage. This feedback will be counted in the next reporting as it relates to performance in 2024.
[S1-13 DP 83b, AR 78]

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

The average number of training hours per employee is 25 hours, with a balanced gender distribution.
[S1-14 DP 88c,d,e]

Work-related accidents | UoM | 2024
Number of recordable work-related accidents for own workforce (1) | No. | 17
Rate of recordable work-related accidents for own workforce (2) | No. | 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 (including holidays and paid sick leave).
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In detail, 17 work-related accidents occurred during 2024. 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 travels, or simply while commuting.
In addition, it should be noted that during 2024 the absenteeism rate stood at 1,53, a figure calculated as the ratio of the total number of working days in the year to the number of sick days and accidents recorded.
[S1-14 DP 88b,d,e]

Work-related ill health | UoM | 2024
Number of cases of recordable work-related ill health of employees | No. | 0
Number of fatalities in own workforce as a result of work-related injuries and work-related ill health | No. | 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
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. | 7.812

During 2024, there were 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%.
[S1-16 DP 97a]

Gender pay gap | UoM | 2024
Gender pay gap including Identified Staff | % | 20
Senior managers | % | 5
Middle managers | % | 6
Clerical staff | % | 1

The gender pay gap was calculated considering the fixed hourly wage, which includes the gross annual remuneration (RAL) and any role-related allowances (RBA).
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The overall gap was 20%, 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: 5%, Executives: 6%, Clerical staff: 1%.
[S1-16 DP 97b]

Annual total remuneration | UoM | 2024
Annual total remuneration ratio (1) | No. | 43

(1) The annual total remuneration ratio is calculated as the ratio of the CEO's total remuneration to the median annual total remuneration of all employees (excluding the highest paid). The following remuneration institutions were considered for the total remuneration of the CEO: RAL paid on 31/12/2024, total TSI accrual 2023 assigned 2024, various benefits. The following remuneration institutions were considered for the total median annual remuneration: RAL as at 31/12/2024, tenure allowance as at 31/12/2024, covenants paid in 2024, entry bonus paid in 2024, total TSI pertaining to 2023 awarded in 2024, variable result bonus awarded in 2024, welfare recognised in 2024 and its portion converted into welfare, various benefits (e.g. health, life, accident, car, mortgage, etc.). It is specified that the calculation methodologies did not include the LTI component, as the vesting period of the Plan (2021-2023) has ended;
[S1-17 DP 103a,b,c]

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

During 2024, a total of 2 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.
[S1-17 DP 103c]
No evidence or reports of discrimination and harassment cases and related fines or sanctions were found for 2024.
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[S1-17 DP 104a,b]

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

[S1-17 DP 104b]
There is no evidence for 2024 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 | Main approaches to dealing with IROs
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 | Value chain | Medium-term | •ESG Policy•Group Code of Ethics•Organisational, Management and Control Model as per Italian Legislative Decree no. 231/2001 of individual companies•Group Expenditure Cycle Management Policy•Sustainable Procurement project
Reputational risk linked to the presence along the value chain of business relationships with entities that do not have adequate measures/policies on working conditions | Risk | Value chain | Medium-term
Promoting collaborations with suppliers and business partners that have obtained social and environmental certifications | Opportunity | Value chain | Medium-term
Equal treatment and opportunities for all
Lack of development of young talent, promotion of gender equality and inclusive, non-discriminatory practices towards workers in the value chain | Potential negative impact | Value chain | Medium-term | •ESG Policy•Group Code of Ethics•Organisational, Management and Control Model as per Italian Legislative Decree no. 231/2001 of individual companies•Group Expenditure Cycle Management Policy•Ifis Academy training courses aimed at the value chain
Reputational risk linked to the presence along the value chain of Banca Ifis Group business relationships with entities that do not have adequate measures/policies on equal treatment and opportunities for all | Risk | 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. In addition, 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.
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[S2.SBM-3 DP 11a]
The material impacts are potentially addressed to all workers in the Group's supply chain, regardless of type or job classification. It should be noted, however, that the Group has identified a potential impact related to the lack of development of young talent, the promotion of gender equality and the adoption of inclusive and non-discriminatory practices within the value chain, which particularly affects the categories of young workers and women workers, who are considered particularly vulnerable to any resulting negative effects.
[S2.SBM-3 DP 11ai-v]
In terms of the types of stakeholders 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]
Banca Ifis, as part of the double materiality assessment, carried out a careful and detailed mapping of its supply chain, identifying the main categories of suppliers and their location.
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.
[S2.SBM-3 DP 11c]
Potential 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 11e]
At the same time, material risks related to potential reputational and operational damage have been identified on supply chain workers, which could result from relationships with suppliers that do not comply with fundamental principles such as privacy, equal treatment, inclusion, diversity and safety at work. Violations of workers' rights could also generate legal and compliance consequences, with negative repercussions on business continuity and stakeholder trust.
At the same time, strategic opportunities were identified related to strengthening sustainability in the supply chain, through the selection and consolidation of relationships with suppliers that adopt ethical and sustainable practices, hold social and environmental certifications and guarantee respect for workers' rights. 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 risks and 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.
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3.2.1 Worker-related rights in the value chain
Approach and reference policies
Over the years, the Banca Ifis Group has developed several policies aimed at ensuring the proper management of the above-mentioned impacts, risks and opportunities (IROs). In addition to the ESG Policy, which recalls the approach and general guidelines, the main policies for managing IROs 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 actors in the value chain.
Code of Ethics and Organisational, Management and Control Model pursuant to Legislative Decree no. 231/2001
[S2-1 DP 16]
Within the Code of Ethics (see 4.1 ESRS G1 - Business Conduct, section 4.1.1 Corporate Culture and Protection of Whistleblowers, DP 7 MDR-P), 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 actors 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, described in detail in relation to the conduct of enterprises (see 4.1 ESRS G1 - Conduct of Enterprises, Section 4.1.3 Corruption and bribery, DP 7 MDR-P). Finally, the Group Policy for Debit Cycle Management, also described in connection with the conduct of business (see 4.1 ESRS G1 - Conduct of Businesses, Section 1.2 Management of Relations with Suppliers, DP 14), provides the principles and guidelines for the definition of the process of debit cycle management by the Parent Company and the Group's subsidiaries and suppliers.
ESG Policy
[S2-1 DP 16]
Through the implementation of the ESG Policy (see 2.2 ESRS E1 - Climate Change, Section 2.2.2 Energy, Adaptation and Mitigation of Climate Change, DP 25), 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 ensure 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 to apply the values of transparency, inclusion and equal opportunities at every stage of the recruitment, selection, hiring, 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 made explicit in the ESG 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 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
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
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.
In addition, the Group recognises the importance of promoting sustainable behaviour throughout the value chain and has 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 chain42.
Actions
[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 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.
[S2-4 DP 33c]
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.
Finally, 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), ensuring that suppliers comply with their contribution, insurance and tax obligations under current legislation.
[S2-4 DP 32d,33c]
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 periodic checks, carried out every twelve months, which include, for example, the verification of the regularity of DURCs (Consolidated Documents Attesting to Compliance with the Payment of Social Security and Welfare Contributions). It should be
42 The analyses conducted by Banca Ifis with regard to workers in the value chain focused mainly on the supplier base.
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noted that all of the suppliers subjected to these checks43 were found to be in line with the selection requirements and no non-compliances were reported.
Reflecting Banca Ifis's commitment to building an integrated and sustainable ecosystem, the Bank has set itself the goal of evolving the training processes of the Ifis Academy through an innovative path, in order not to limit itself to the internal training of Group employees, but to address in a holistic and inclusive way all the main external stakeholders with whom the Bank interacts.
Ifis Academy Evolution project
[S2-4 DP 31 MDR-A]
In particular, the Banca Ifis Group has launched an initiative specifically aimed at its value chain through the 'Ifis Academy Evolution project'. The initiative aims to expand the Banca Ifis Group's training offering, extending it not only to internal employees, but also to external stakeholders, including customers (Npl debtors, SMEs and leasing and rental operators) and suppliers44. The main focus of the project is on training in ESG and cybersecurity, areas that could have a positive impact on strengthening the skills of stakeholders and developing a culture of sustainability. The project will be implemented in collaboration with Digit'Ed, a leading partner in the development of training programmes and infrastructures, to adopt a platform accessible to external stakeholders.
[S2-4 DP 34a]
In addition, the Group, in order to mitigate the risks arising from the presence along the value chain of business relationships with entities that do not adopt adequate measures on working conditions and equal treatment and opportunities for all, has adopted a series of actions and safeguards, as detailed below.
[S2-4 DP 31 MDR-A]
With regard to suppliers, the following actions and controls are noted:
•analysis of supplier administrative, organisational, capital45 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;
•Group Expenditure Cycle Management Policy;
•Policy for the outsourcing of business functions;.
43 It should be noted that the checks relate exclusively to suppliers subject to the expenditure cycle procedure.
44 This training will be delivered to the Group’s most significant suppliers.
45 The analysis of asset profiles is limited to the cases defined in the Expenditure Cycle Policy.
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Sustainable Procurement project
[S2-4 DP 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.
[S2-4 DP 31 MDR-A]
This initiative aims to generate a positive impact by improving the ESG performance of the suppliers themselves and, prospectively, by adopting selection criteria that consider social and environmental aspects. Since January 2025, the Group has been collecting information on sustainability issues from its most relevant suppliers46by administering an ESG questionnaire, in cooperation with the Consortium ABC platform, and integrating this information into the Jaegger supplier management portal.
[S2-4 DP 33c]
This mapping is aimed at assigning a sustainability profile to suppliers and the findings will support Banca Ifis in outlining the most appropriate intervention approach towards its supply chain. The analysis will, for instance, help to outline the most suitable and effective actions to support suppliers in their sustainable transition path, mitigating any negative impacts.
[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 4.1 ESRS G1 - Business Conduct, section 4.1.4 Corporate Culture and Protection of Whistleblowers, DP 10c).
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.
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 chain47.
46 It should be noted that the sample taken under analysis corresponds to suppliers with individual commitments of more than 100 thousand Euro per year.
47 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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[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]
Since 2021, a contractual clause has been included in the Code of Ethics, which, in accordance with the relevant internal regulations, defines it as a binding document vis-à-vis each recipient and, in particular, suppliers. Violation of the Code of Ethics by the recipients constitutes, in the cases set forth in internal regulations, a breach of the contractual relationship between the Group and the recipient, and also 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.
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. Note that in 2024, no reports were received from workers belonging to the supply chain.
[S2-3 DP 28]
In the various relationships with suppliers, this clause has been introduced into contractual texts wherever possible. In addition, also when formalising contracts or supply agreements, in accordance with the indications of internal regulations, the Group also requires the acknowledgement and acceptance of the Organisation, Management and Control Model pursuant to Italian Legislative Decree no. 231/2001.
3.2.3 Targets
[ESRS 2 DP 72,81 MDR-T]
[S2-5 DP 41,42a,b,c]
Banca Ifis has recently launched a series of projects with the aim of raising awareness and further engaging suppliers, in the context of a strategic path aimed at improving ESG performance. These initiatives aim to promote responsible and sustainable practices by integrating environmental, social and governance principles into the Group's daily operations. The 'Sustainable Procurement' project is the starting point for collecting structured information on suppliers and assessing their positioning in terms of sustainability. Based on the evidence, the Group will consider formalising quantitative targets, ensuring a conscious approach to supply chain management. However, in the absence of predefined objectives, no direct involvement and interaction with workers in the value chain was undertaken.
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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 | Main approaches to dealing with IROs
Communities’ economic, social and cultural rights / Communities’ civil and political rights
Contribution to the spread of civil and political rights related to freedom of expression and assembly that has a positive impact (e.g. on human rights defenders) on affected communities | Actual positive impact | Value chain | Medium-term | •ESG Policy•Group Code of Ethics
Socio-economic development of the communities through support initiatives, collaborations with third parties, donations and/or sponsorships | Actual positive impact | Value chain | Medium-term
Promoting initiatives that support the development of the territories and communities involved | Opportunity | Value chain | Medium-term
Partnering with local organisations, industry and professional associations and community groups to create sustainable and impactful programmes | Opportunity | Value chain | Medium-term
Increasing market share by expanding the offer of products with a positive social impact, such as those related to the third sector | Opportunity | Value chain | Medium-term

[S3.SBM-3 DP 8a]
The communities in which Banca Ifis operates and the impacts related to them play a fundamental role within the Bank's strategy: within the 2022-2024 D.O.E.S. Business Plan, in the 'S' pillar of Sustainable, there is a specific objective dedicated to the creation of the Kaleidos Social Impact Lab, thanks to which projects and initiatives have been developed that generate a high added value on the community and territories and that promote social inclusion, diversity, personal well-being and culture. The correlation between the Group's strategy in this area and the material impacts identified with reference to the communities concerned is tangible: their socio-economic development through support initiatives, collaborations with third-party entities, donations and/or sponsorships, and the dissemination of civil and political rights related to freedom of expression and assembly are elements underpinning the Bank's Social Impact Lab and guide the Group's strategy and business model. Confirming the
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centrality of these issues in the Group's strategy, 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 that may be materially impacted by the company, including impacts directly related to the company's own operations and value chain, are included in the scope of the disclosure and have in fact been covered in the double materiality assessment.
[S3.SBM-3 DP 9a]
The type of community subject to significant impacts by the company, both due to its own operations and its upstream and downstream value chain, is the community residing in the territories it belongs to, where the Group pays particular attention to strengthening relations with territories and stakeholders at regional and national level.
[S3.SBM-3 DP 9ai-iv]
Communities along the company's value chain are subject to significant impacts related to the Group's activities.
[S3.SBM-3 DP 9c]
Through its Social Impact Lab Kaleidos, established in 2022 at the behest of Chairman Ernesto Fürstenberg Fassio, the Group develops high social impact initiatives in the areas of inclusive communities, culture and territory, and personal well-being. Thanks to Kaleidos, several initiatives that work synergistically towards a common goal are pursued: to provide society with the tools to help build a more inclusive and sustainable future.
[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.
The Group 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 communities48, 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
48 Collective and collaborative growth refers to a development path based on diversity enhancement and social re-inclusion projects.
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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.
[S3.SBM-3 DP 11]
The projects developed within the Social Impact Lab are carried out in collaboration with non-profit organisations and local or national associations. 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.
3.3.1 Commitment to affected communities
Approach and reference policies
Social topics are central to the Banca Ifis 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. Partly thanks to the creation of Kaleidos, the Group plays an active role in developing the communities in which it operates, paying particularly close attention to strengthening the relationship with the territories and stakeholders on a local and national level. In order to ensure adequate governance of social topics, a series of Policies and Procedures have been defined that govern the Group's activities, including the Code of Ethics and the ESG Policy.
ESG Policy and the Code of Ethics
[S3-1 DP 14]
The Group's attention to the communities and territories in which it operates are included and formalised within two pivotal documents of the Group's regulatory framework: the Code of Ethics (see 4.1 ESRS G1 - Business Conduct, section 1.1 Corporate Culture and Whistleblower Protection, DP 7 MDR-P) and the ESG Policy (see 2.2 ESRS E1 - Climate Change, section 2.2.2 Energy, Climate Change Adaptation and Mitigation, DP 25). The first aims to outline the set of principles, values, rights, duties and responsibilities assumed towards all stakeholders; the second aims to define the Group's sustainability guidelines and encourage the integration of ESG considerations into the Group's activities.
With specific reference to social aspects, within these policies the Group is committed to playing an active role in the development and promotion of the communities and territories in which it operates, through initiatives ranging from participation in national projects to support for national and local non-profit organisations and entities to solidarity and social inclusion programmes, as well as training and research. Furthermore, the Group recognises the role of the non-profit sector for the fair and cohesive development of the community, developing partnerships with operators of proven experience and solid reputation for the realisation of initiatives in favour of disadvantaged categories, and supporting the needs of the community through donations and sponsorships consistent with the reference values and social objectives they intend to support.
In addition, the Group pays special attention to projects supporting medical and scientific research, child protection, the social reintegration of people in difficulty and the enhancement of artistic and cultural heritage. Lastly, the Group also 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, in particular, must, in any case, be made transparently and in full compliance with applicable laws and regulations. All payments made for sponsoring or charitable donations must be recorded accurately and in full and entered in the books and records by the relevant organisational units.
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[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]
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 and through dedicated reports, studies and projects, and aims to strengthen community development. An active development and promotional role that also manifests itself in supporting national and local non-profit organisations and initiatives of social solidarity, in order to create a positive impact on communities and the environment.
Actions
[S3-4 DP 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 2024, the main initiatives promoted are highlighted:
•in promoting gender equality in STEM subjects through:
–the Summer STEM Academy, the summer campus on STEM disciplines and diversity and inclusion organised by the Alumni Association of the Galileiana School of Padua;
–joining Women4Cyber Italia, the programme that encourages the improvement of women's skills and interest in cyber topics;
•promoting the social inclusion of the most vulnerable and youth empowerment, through:
–the partnership with Banco Alimentare Onlus Foundation, which supports people in socio-economic difficulties by distributing meals and foodstuffs;
–collaboration with the Cooperativa Sociale 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;
–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 Bambini 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 and the Community of Sant'Egidio, launched in 2024, 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,
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and for the Anfass association in Treviso, which seeks to foster the rights of people with intellectual and relational disabilities and their families.
At the same time, 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 listed below also make it possible to pursue the material positive impacts and enhance the opportunities identified by the double materiality assessment.
In this area, as described in more detail below, the partnership with the Bambino Gesù Children's Hospital and the Heal Foundation continued, through support for the Taxi Solidale project, and in 2024 the Bank supported the Foundation for Advanced Biomedical Research in its operational arm the Veneto Institute of Molecular Medicine - VIMM, which represents national and international excellence for research in cellular and molecular biology.
In the firm belief that sport also contributes to people's mental and physical well-being, the Group:
•contributed to the organisation of the 40th edition of the Torneo Ravano (now Coppa Mantovani) in the city of Genoa, the tournament reserved for young primary school students in the Ligurian region;
•supported the second edition of the solidarity padel tournament organised by the CAF Association in favour of abused minors and donated scholarships to young players of the youth team U.C. Sampdoria;
•confirmed the partnership with the amateur sports association (ASD) Wheelchair Sport Firenze - Volpi Rosse and started 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.
In order to increasingly integrate sustainability topics into its business activities, the Group has defined a strategy to further expand its ESG product offering, also in line with the values promoted by Kaleidos. In 2024, Banca Ifis published its first Social Bond Framework: a fundamental step that increases transparency with respect to the assets financed by the Group and strengthens the relationship with long-term investors and other stakeholders. In particular, the Framework will support 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 investments with a positive social impact, according to the Group's funding plan. For Banca Ifis, it is a way to create internal synergies between the sustainability and treasury functions, and to put sustainability issues at the centre of discussions with investors.
Thanks to the initiatives promoted during 2024 as part of Kaleidos, the Group continued to generate a social impact on people, communities and the territory. The initiatives supported in the three-year period 2022-2024 saw a Group commitment to invest 7 million Euro in social initiatives.
[S3-4 DP 32d]
In order to support the innovative action of Kaleidos and to create an ever greater positive impact, a tool was developed to guide the action of the Social Impact Lab in an increasingly structured manner: the Social Impact 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:
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•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.
In the course of 2024, the application of the impact measurement model was extended and can now be said to be fully implemented for the entirety of Kaleidos's relevant activities. In particular, 38 projects were measured (and measurable), which together generated a social value of 12,1 million Euro. The average multiplier (i.e. the ratio between the value generated and Banca Ifis's financing) was 5,1, 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 projects with impacts on multiple dimensions generate high social value and consequently have high average individual multipliers. In 2024, 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 first year of the opening of the International Sculpture Park and the study days associated with it.
In addition to the initiatives described above, the Group, through projects that foster dialogue and discussion in the community, generates a positive impact that promotes the spread of civil and political rights related to freedom of expression. Among the most important initiatives is the support for the Fratelli tutti Foundation, established by Pope Francis in 2021, which promotes fraternity and social friendship through specific pathways, training activities and the promotion of intercultural dialogue through dedicated events and cycles of meetings. Also with a view to giving young people a voice and stimulating generational exchange, the Group supported the international edition of the 'Parola ai giovani - Manifesto for change' project promoted by singer-songwriter Giovanni Caccamo. This included a programme of activities throughout 2024, including the launch of the international appeal on 'Change the world' day at the United Nations and several symposia and round tables at international universities. Finally, the Bank took part in the Business Ethics Summit, the first international event involving relevant Italian and international stakeholders in a debate on ethics applied to business through the comparison and analysis of best practices and case studies.
[S3-4 DP 31 MDR-A]
Kaleidos supports collective and collaborative growth through projects for the enhancement of diversity and social re-inclusion, the well-being and care of people by raising community awareness of the importance of health and scientific research, and aims at a model of social innovation that leverages beauty as an opportunity for the development of territories, with a focus on young talents and enterprises.
The most significant projects developed by Kaleidos include the support for the Bambino Gesù Children's Hospital, which has continued since 2022 and was further strengthened in 2024. On the one hand, the Bank has agreed to donate three million Euro for research into innovative new therapies for malignant tumours of the central nervous system affecting children and young adults. Tumours of the central nervous system today represent the most frequent solid tumours in childhood and account for 20-25% of tumours affecting children. It is estimated that around 1.500 children between the ages of 0 and 15 years and around 800 adolescents in Italy fall ill with cancer every year: of these, around 400 suffer from tumours of the central nervous system. The donation made by Banca Ifis will support a trial at the Children’s Hospital of the Holy See, aiming to assess the safety and efficacy of gene therapy with CAR T cells on patients with relapses or not responding to other currently available treatments. 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. The trial with CAR T cells in patients with malignant tumours of the central nervous system started in December 2023 upon completion of the authorisation process by the national regulatory agency AIFA, and since the start of the study to date, 11 patients have been enrolled, divided into three treatment cohorts according to histological subtype and disease location. One year into the trial, preliminary results document the tolerability of the treatment.
In addition to the partnership with the Bambino Gesù Children's Hospital, the long-term collaboration with the Italian National Olympic Committee - CONI is also underlined. For fourth consecutive year, Banca Ifis supported young Italian CONI junior medal-winners through the provision of scholarships. For the first time in 2024, scholarships - which cannot be awarded to those who have won them in previous editions - were also distributed
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to the medallists of the Gangwon 2024 Winter Youth Olympic Games. The project, realised to support the future of young Italian talents, is part of the broader promotion of sport, which for Banca Ifis represents a tool for social inclusion and a vehicle of the Group's values. The Bank applied its impact measurement model to the initiative, to quantify, through objective criteria, the social value generated by the scholarships on the lives of young athletes and the communities in which they live. In particular, the Banca Ifis analysis found that its contribution, which enabled the disbursement of 116 scholarships to the Italian junior medal-winners in 2023, had an impact multiplier of 4,1. This means that every 1 Euro of donated contribution turns into more than 4 Euro of social value created. This is a sharp increase over the scholarships awarded to the 2022 junior medallists, whose contribution had generated an impact multiplier of 3,3. The continuity of support over time has also resulted in an increased level of appreciation by young athletes towards the scholarships provided by Banca Ifis. In particular, analysis of the project's social impact measurement showed personal benefits certified by increased self-esteem and greater professional growth. This measurement will also be carried out during 2025, with reference to the 2024 support, which led to the provision of scholarships to young medal winners at junior championships during the year in sports and/or Olympic disciplines.
Also during the year, the Bank continued its support for another initiative resulting from a long-standing partnership: the Solidarity Taxi project promoted by the Heal Foundation. The initiative consists of offering a free transport and accompaniment service to children and cancer patients in specialised centres where they need treatment and therapies. Thanks in part to the financial support of Banca Ifis, which has been present since 2021, the initiative has gradually expanded to the entire Lazio region and now covers 20 hospitals in the region, as well as being present in Lombardy. Over the years, the solidarity transport activity has saved over 600.000 km for patients and families supported and accompanied in their care. In addition, the project also produces significant benefits on the work-life balance of family members in following the oncological care of their loved ones, as well as the important psychological support offered at such a critical time in the lives of patients and family members.
In 2024, the Bank took a further step in promoting the value of the project promoted together with the Heal Foundation: analysing the initiative with its impact measurement model, Banca Ifis calculated an impact multiplier of 5,8. This means that every Euro donated to the project translates into almost 6 Euro of social value generated. The result took into account the various positive benefits and impacts created by the project, such as the value of the working days not lost by the families of the young patients, the quantification of the expenditure saved thanks to the transport provided, and the monetary valuation of the well-being generated by the organisational and emotional support to families struggling with their children's cancer illness.
On the artistic-cultural front, April 2024 saw the Group launch '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 Park, housed within the more than 22 hectares of garden surrounding the 16th-century Villa Fürstenberg, 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, 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.
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
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the restoration of the work placed on its façade, 'The Migrant Child', one of only two recognised by Banksy in Italy. The support of exhibitions, fairs, events and artistic-cultural events is another important element within Ifis art. Banca Ifis, in fact, supported for the fourth consecutive year La Biennale di Venezia through the sponsorship of the Italian Pavilion and by hosting the first event of the public programme of the event. For the second year running, the Bank was also the main sponsor of the Arte in Nuvola contemporary art fair, where it created a unique exhibition space dedicated to the twelve unpublished busts of the artist Antonio Canova, purchased and restored in 2023.
In 2024, Banca Ifis joined 'Patto per Brera', a philanthropic initiative that includes supporting the 'Grande Brera' project, aimed at doubling the Pinacoteca's exhibition spaces, opening Palazzo Citterio to the public, and other initiatives aimed at growing the museum complex. Banca Ifis also supported the agreement between the National Modern and Contemporary Art Gallery in Rome and the Brera Art Gallery, supporting the partnership through a major exhibition dedicated to the artist Mario Ceroli, part of whose collection it purchased in order to preserve the legacy of one of the greatest contemporary artists. 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 two 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 ensuring 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.
[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 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 collaborations to create sustainable and impactful programmes, and in relation to increasing its market share by expanding its offer of products with a positive social impact, such as those related to charity. In particular, in addition to the 'Ifis art' project mentioned above:
[S3-4 DP 31 MDR-A]
•the partnership with the Fondo Ambiente Italiano - FAI - has been renewed again this year, qualifying Banca Ifis as a Corporate Golden Donor member to preserve and promote artistic and cultural heritage in Italy
•the Bank is the main sponsor of the Manifesto for Change project promoted by singer-songwriter Giovanni Caccamo, which encourages young people to meet at an international level. Several Observatories dedicated to specific production chains or particular sectors of the Italian economy are prepared and published in this context
•the fifth edition of the “Economia della Bellezza” market watch was published in 2024, 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, the Observatory tells how the Beauty sector manages to generate wealth through the deep link between our country's traditions and the way of doing business, analysing the trends and scenarios of the sector as a whole. In this latest edition of the study, the
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innovative approach adopted by art and culture companies emerged as a means of stimulating the development of wealth and skills in the core business.
3.3.2 Engagement processes
[S3-2 DP 21]
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, 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). Each initiative is presented to and approved by the Sustainability Committee, which decides independently within the budget defined at Group level.
[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.
3.3.3 Targets
[ESRS 2 DP 72,81 MDR-T]
[S3-5 DP 41,42a,b,c]
As part of the 2022-2024 Business Plan, the Group has defined concrete actions to develop its sustainability positioning. The launch of Kaleidos, with a budget of six million Euro, later increased thanks to a donation to the Banco Alimentare Onlus Foundation up to seven million Euro in the arch plan, made it possible to promote high social impact projects for culture, health and the territory for the benefit of all stakeholders.
The Sustainability Committee, a managerial committee chaired by President Ernesto Fürstenberg Fassio, was also set up 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.
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3.4 S4 – Consumers and end-users
Material impacts, risks and opportunities
[S4.SBM-3 DP 9a]
Banca Ifis has developed a strategy oriented towards consumer satisfaction, integrating their needs with sustainability, innovation and transparency objectives. The Bank's business model responds to customer needs, addressing risks and maximising opportunities from consumer dependencies.
The focus on customers takes the form of initiatives such as ethical and sustainable debt collection, which aims at the financial re-inclusion of debtor customers, and the dissemination of products and services that support the sustainable transition of SMEs and financial inclusion. Furthermore, the Bank promotes transparent and secure communication, ensuring data protection through advanced IT systems. These areas are an integral part of the 2022-2024 Business Plan (D.O.E.S.) and will continue to be central in the future Business Plan.
[S4.SBM-3 DP 10,a,10ai-iv]
The material impacts identified involve the end users who consult 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. These categories could be negatively impacted in relation to their rights, including privacy, data protection, freedom of expression and the right to non-discrimination.
[S4.SBM-3 DP 10b]
Material adverse impacts have been identified as related to individual potential incidents because they are covered by safeguards and policies that prevent and protect against their adverse effects. They relate to unfair or deceptive practices towards customers also due to non-transparent and ineffective communication, limited access to products and services for certain categories of stakeholders, the creation of a digital divide due to the bank's digitisation processes, and the violation of privacy rights and data loss.
[S4.SBM-3 DP 10c]
The positive impacts are broadly reflected across the Bank's customer base, fostering an increase in customer satisfaction and improving the usability of the offer, through the adoption of digital platforms that optimise the user experience and make services more accessible, intuitive and efficient. The impact related to the financial re-inclusion of households and the development of an ethical and sustainable collection model relates to Npl clients, while the impacts related to the group's role in supporting businesses in sustainable transition and contributing to the creation of a culture of entrepreneurship are mainly addressed to SMEs.
[S4.SBM-3 DP 11]
The various customer-focused projects implemented by the Bank enabled it to understand the needs of different consumer groups. Furthermore, the various activities developed during 2024, described in the following paragraphs, made it possible to enhance the positive impacts created, strengthen safeguards and activities to counter any negative impacts, assess new opportunities and mitigate identified risks.
[S4.SBM-3 DP 9b]
The Bank is aware of consumer dependency risks, such as unfair commercial practices and reputational risk, as well as privacy and data processing risks. In addition, there are risks associated with limited access to favourable credit lines for certain categories of consumers due to the Group's strategic choices and positioning.
Opportunities arising from consumer dependencies include the introduction of innovative digital platforms, such as the Digital Selling Platform, which improve the customer experience and optimise sales and onboarding processes. Transparent communication and data protection are crucial for customer loyalty. Financial education is an opportunity to promote awareness among consumers, while strengthening credit access channels for SMEs will contribute to economic and entrepreneurial growth.
Banca Ifis has integrated the risks and opportunities arising from consumer dependencies into its business model, with a strong focus on sustainability, digitisation and data protection. These aspects are in perfect synergy with
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the Group's strategic topics, as highlighted in the 2022-2024 D.O.E.S. Business Plan, and guide the Bank's future choices. The proactive management of these risks and opportunities enables the Bank to respond to customer needs in a responsible, innovative and ethical manner, thus ensuring continued growth and a solid relationship with consumers.
[S4.SBM-3 DP 10d]
The material risks identified relate to reputational risks related to non-compliance with integrity, transparency and fairness disclosure requirements and unfair business practices, business risks related to non-competitive product offerings, and operational risks related to the loss of sensitive customer data. On the contrary, the opportunities identified, with a medium-term time horizon, are related to improving customer relations, strengthening IT systems and implementing digital/innovative solutions, products and services.
[S4.SBM-3 DP 12]
Finally, the identification of risks and opportunities impacts the totality of customers who use the products and services offered by the Bank and have a relationship with it, including SMEs, without specific subdivisions, thus meeting the need to consider all the needs and characteristics of this category of stakeholders.
3.4.1 Access to (quality) information
Group approach and policies
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 | Main approaches to dealing with IROs
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 | Value chain | Medium-term | •ESG Policy•Organisational Procedure for the Transparency of banking and financial operations and services
Improved usability of the offer and user experience through digital platforms | Actual positive impact | Value chain | Medium-term
Expanding market share and improving retention through the implementation of digital/innovative solutions, products and services | Opportunity | Value chain | Medium-term

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ESG Policy
[S4-1 DP 15]
In the Group's ESG Policy (see 2.2 ESRS E1 - Climate Change, Section 2.2.2 Energy, Adaptation and Mitigation of Climate Change, DP 25), the development and deployment of digital technologies are distinguished among the sustainable activities that reflect commitment to the three key pillars. This approach highlights how digital transformation is integrated into the Group's sustainable strategy, representing a key element.
Organisational Procedure for the Transparency of banking and financial operations and services
[S4-1 DP 15 MDR-P]
In addition, each Group company that offers a catalogue of banking products and services has adopted a specific organisational procedure to ensure compliance with current regulations on the transparency of banking operations and services. This procedure identifies the main regulatory requirements and defines the operating methods by which each Group company fulfils these obligations.
The procedure, approved by the Co-General Manager Chief Operating Officer (COO), 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.
In a parallel fashion, the Compliance Department monitors the above-mentioned internal regulatory policies and instruments through ongoing checks and audits. These activities, planned according to the programme approved by the Board of Directors, aim to assess the effectiveness of the organisational measures prepared, proposed and implemented to manage the risk of non-compliance. The controls apply to all areas where this risk is present.
The outcomes of the audits, applied to all areas where this risk is present, are documented in reports shared with the relevant corporate structures, which are asked to provide feedback on the corrective actions identified and the timing of their implementation. The Compliance Department monitors this and regularly reports to corporate bodies through the Dashboard, as well as, if required, to the Bank of Italy and Consob (Italy's stock market watchdog).
Actions
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. Through the adoption of advanced technologies, the Bank is able to improve data management, optimise daily operations and respond more promptly to customers' needs. Digitisation not only enriches customer interaction, making transactions faster and safer and ensuring transparent and immediate communication, but also facilitates access to banking services, providing modern solutions that meet their expectations in an increasingly digital world.
[S4-4 DP 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.
[S4-4 DP 31a,c]
At the same time, the Group pays great attention to the quality of its communication, adopting a clear, transparent and easily understandable approach to prevent and reduce any critical issues or dissatisfaction on the part of customers. At the same time, it aims to optimise the usability of its services and improve the user experience by developing intuitive and accessible digital platforms in line with customer expectations.
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[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.
[S4-4 DP 33a]
Furthermore, the Banca Ifis Group strives to reduce the risk of losing market share, recognising the importance of offering competitive and innovative products in line with customers' expectations and constantly working to improve the quality and effectiveness of its services.
[S4-4 DP 30 MDR-A]
In line with the strategic directives of the D.O.E.S. Business Plan, which considers digitalisation a central factor in the Group's reputational and business growth, several significant projects were launched in 2024.
In particular, a development programme called Digital Selling Platform (DSP) was launched, 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 project will continue with the introduction of new products, consolidating the platform as multi-channel and multi-product and further enhancing the user experience, both for customers and for the Bank's internal operators.
In 2024, new solutions for on-line sales services were introduced, including e-commerce channels, self-service sales modes and on-line brokerage 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.
At the same time, sales channels dedicated to private hire customers were strengthened through the integration of the Digital Onboarding Tool with the eCommerce of a major business partner. Another significant intervention concerned the restyling of the Rendimax reserved area, which was completed in November 2024, with the aim of expanding the functionality available for current and deposit accounts of private customers. This project aims to bring about a significant improvement in the user experience, including sustainability and accessibility-oriented interventions, to ensure a modern and inclusive experience of banking services.
In addition, the Group 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. Significant investments have been made 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 32a,b,c]
At the same time, the Group is committed to implement several initiatives, both internal and external, to foster digital inclusion, promote innovation and close any digital gaps that might emerge for certain categories of disadvantaged users. Particular attention is paid to initiatives to raise awareness and promote gender equality in STEM disciplines (see 3.3 ESRS S3 - Affected Communities, section 3.3.1 Commitment to Affected Communities, DP 32c).
[S4-4 DP 31d]
In order to verify the effectiveness of the implemented projects, the Bank has implemented a quarterly monitoring system in which the KPIs identified for the analysis of the respective initiatives are monitored. This approach is aimed at analysing and resolving any anomalies, with the aim of identifying areas for improvement and ensuring increasingly reliable and high-performance portals.
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3.4.2 Privacy
Group approach and policies
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.
[S4.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon | Main approaches to dealing with IROs
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 | Value chain | Medium-term | •ESG Policy•Privacy regulatory manual
Risk of operational losses due to unauthorised access to customer data (Data Breach) by Banca Ifis in-house staff for personal gain | Risk | Value chain | Medium-term
Building a long-term relationship with customers through a robust and secure IT system | Opportunity | Value chain | Medium-term
Improving customer loyalty by optimising corporate assets in terms of privacy and data security and quality information | Opportunity | Value chain | Medium-term

ESG Policy
[S4-1 DP 15]
Within its ESG Policy (see 2.2 ESRS E1 - Climate Change, section 2.2.2 Energy, Adaptation and Mitigation of Climate Change, DP 25), the Banca Ifis Group considers the protection of privacy and the security of its customers' and its own people's data to be priority and non-negotiable objectives, managing the data and information in its possession in a transparent manner and in full compliance with current legislation.
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Privacy Regulatory Manual
[S4-1 DP 15]
In order to comply with Regulation (EU) 2016/679 (GDPR) and the Italian data protection regulations, the Banca Ifis Group has produced the Privacy Regulatory Manual. The Manual is designed to protect personal data processed by Banca Ifis and its Italian subsidiaries, guaranteeing respect for fundamental freedoms and promoting responsible and compliant handling of personal data (see 3.1 ESRS S1 - Own workforce, section 3.1.6 Other work-related rights (privacy), DP 19).
[S4-1 DP 16a]
Furthermore, it emphasises that respect for universally recognised human rights is an indispensable requirement in its sustainability strategy, and for this reason it protects and promotes these rights in the conduct of its activities and in its relations with its employees and other stakeholders, including 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 is committed to supporting sustainable economic development, giving preference in its financing decisions to companies that adopt ethical behaviour, promote environmentally friendly production methods, guarantee inclusive working conditions that respect human rights, and follow the best standards of corporate governance.
[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 involvement 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
For Banca Ifis, privacy protection is a core value, with a significant impact on both customer trust and corporate reputation. The Bank recognises the importance of ensuring strict and transparent management of personal data, in accordance with European and Italian regulations. As mentioned above, the Privacy Manual is a key tool to ensure that all personal data processing activities are carried out in full compliance with the rules, 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.
[S4-4 DP 31a]
The Banca Ifis Group has adopted a series of safeguards aimed at ensuring the protection of its customers' privacy, intervening promptly in the event of breaches linked to inadequate management systems or ineffective application of security procedures.
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[S4-4 DP 33a]
These measures are aimed at mitigating the risk of loss of sensitive data, resulting from unauthorised access to customer data by internal staff, by ensuring that all preventive actions are effective and properly implemented.
[S4-4 DP 30 MDR-A]
To this end, the Group has 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.
The Group has also undertaken awareness-raising and training actions to increase the awareness and attention of the resources managing communication activities. A typical example of a privacy-impact incident is 'mispostal', which occurs when a person's personal data is accidentally transmitted to another person who is not entitled to know them. In such cases, the Group undertakes to intervene promptly, assessing the extent of the violation and notifying the person concerned, so that he/she can take all the necessary measures and precautions to prevent the information erroneously transmitted from being unlawfully exploited.
The increasing digitisation and computerisation that have characterised the Group's processes and activities in recent years have made the issues of cyber security and data protection increasingly central to the strategy and business model. In particular, numerous activities aimed at promoting cybersecurity and protecting privacy are implemented, and the potential risks and negative impacts related to these issues are adequately policed and monitored. One important example is the internal regulatory framework governing IT security and the processing of personal data in compliance with national and international law. 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 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 cybersecurity issues, several actions were taken during 2024 to improve employees' ability to identify and report incidents involving personal data. 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. This monitoring was conducted in line with the provisions of the Supervisory 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. To further raise employees' awareness of security risks, 'simulated phishing' campaigns and a cybersecurity meeting were organised with the participation of industry experts and law enforcement officers.
In addition, the Group launched a 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. Therefore, the prevention and timely management of IT security incidents was ensured in order to protect the Group's information assets, which include the data of customers, employees, suppliers and all other parties with which the Group entertains relations.
[S4-4 DP 34]
The focus on confidentiality 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 is
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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.
[S4-4 DP 32a]
With the aim of monitoring the effectiveness of the actions mentioned above, the Group ensures that the processes for handling privacy breaches and the actions to be implemented are governed by internal regulations, such as the Operating Procedure for Handling Information Security Incidents, and are based on best practices, industry codes of conduct and guidelines from competent authorities, including the European Data Protection Board.
[S4-4 DP 32b]
Banca Ifis, with reference to 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), monitors the performance of the solutions adopted with the aim of applying corrective and preventive actions based on the audits carried out and any negative impacts found.
[S4-4 DP 32c]
These 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]
Finally, all security incidents are recorded and reported at the end of the year. At least once a year, from the analysis of the incidents that have occurred, the 'problems', i.e. recurring patterns that gave rise to the incident, are examined and, on the basis of the findings, the most suitable preventive actions are identified in good time, ranging from staff training to the adoption of technological solutions aimed at detecting and/or intercepting and/or excluding human error.
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3.4.3 Access to products and services
Group approach and policies
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 | Main approaches to dealing with IROs
Access to products and services / Non-discrimination
Financial re-inclusion of families and development of an ethical and sustainable collection model | Actual positive impact | Value chain | Medium-term | •ESG Policy•Group Code of Ethics•Group Policy for approving new products and services, starting new operations, and entering new markets•Group Organisational Procedure - Management of marketing communications to customers
Contribution to customer financial education | Actual positive impact | Value chain | Medium-term
Contribution to increasing the country's entrepreneurship through the strengthening of credit access channels, with a specific focus on SMEs | Actual positive impact | Value chain | Medium-term
Supporting the sustainable transition of SMEs through the ESG product and service portfolio and customer ESG performance assessment processes | Actual positive impact | Value chain | Medium-term
Limited access for certain categories of stakeholders to favourable credit line conditions due to the Group's strategic line | Potential negative impact | Value chain | Medium-term
Lack of ability to meet the financing requirements of certain stakeholder categories due to operational limitations/positioning of the Group | Potential negative impact | Value chain | Medium-term
Loss of market share due to uncompetitive product offerings that do not meet customer expectations | Risk | Value chain | Medium-/long-term
Creation of systems/platforms that guarantee access to products and services for all customers | Opportunity | Value chain | Medium-term
Enhancing reputation through the promotion of effective financial education initiatives | Opportunity | Value chain | Medium-term

Group Policy for approving new products and services, starting new operations, and entering new markets
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[S4-1 DP 15 MDR-P]
The Policy, drafted in accordance with the Supervisory Provisions on Transparency, 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.
The Policy, approved by the Board of Directors, is applicable to all companies belonging to the Group and to all types of customers with whom the Group has relations, including consumers.
Group Organisational Procedure - Management of marketing communications to customers
[S4-1 DP 15 MDR-P]
The Procedure, 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, governs the macro-process for the management of marketing communications addressed to customers.
The Procedure places particular emphasis:
•on the decision-making flow;
•on how to select the target customers to be reached;
•on privacy and transparency safeguards;
•on the controls provided for each activity;
•on the players involved in the process.
All structures involved must comply with the requirements set out in this internal regulation. Approved by the COO, the Procedure applies to Banca Ifis Group companies offering products and services and is extended to all types of customers, including consumers.
Actions
Accessibility
[S4-4 DP 31a]
The Banca Ifis Group is committed to preventing the possible digital divide for disadvantaged categories of users due to ongoing digitisation processes, and the limited access of certain categories of stakeholders to favourable credit line conditions, due to the Group's strategy and difficulties in meeting financing requests due to operational or positioning constraints.
[S4-4 DP 30 MDR-A]
In particular, an initiative was launched to improve the accessibility of the Bank's digital channels, allowing people with permanent or temporary psychological-motor disabilities to use the Group's corporate websites.
[S4-4 DP 33b]
Furthermore, the Group aims to pursue opportunities that favour access to products and services, creating systems and platforms that ensure that all customers can benefit from the solutions offered. It also aims to improve its reputation by promoting effective financial education initiatives, with the objective of increasing awareness and financial responsibility among its customers, contributing to their long-term financial well-being.
[S4-4 DP 30 MDR-A]
To achieve these objectives, the Banca Ifis Group has initiated a market analysis to assess the competitiveness of its products and the efficiency of its processes, with the aim of responding to emerging demands. Initiatives were taken to improve communication regarding the distinctive features of the offer, addressing any critical issues and preventing loss of market share. In addition, Banca Ifis has strengthened its ties with customers, always
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operating in a professional, honest and transparent manner, ensuring that all information is clear and understandable, enabling customers to make informed choices.
In the course of 2024, significant progress was made in expanding the Digital Selling Platform (DSP) product showcase by integrating new solutions in the area of the salary-backed loans, and in the myIfis portal, which now also includes leasing and rental products, transforming the platform into a multi-product environment that not only caters to corporate customers, but also to private individuals. In 2025, it is planned to continue to improve the user experience by adding new features and expanding the information available to customers.
Lastly, the Banca Ifis Group 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.
ESG products
[S4-4 DP 31c]
At the same time, the Group aims to generate positive impacts, including enhancing customers' financial education, increasing entrepreneurship by expanding access to credit and supporting the sustainable transition of SMEs through the ESG portfolio of products and services, as well as adopting ESG performance evaluation processes for customers.
[S4-4 DP 30 MDR-A]
In 2024, several local initiatives were carried out 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.
The main initiatives included the activation of the SACE Green Guarantee, thanks to which both SMEs and large companies can implement a sound sustainability strategy. The Guarantee, backing 80% 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 'Ifis Green' project, an innovative financial offer ranging from leasing contracts to the purchase of plug-in hybrid/electric vehicles, continues to be in force. The main initiatives implemented include:
•Ifis Leasing Green: in continuity with 2023, the promotion of sustainable mobility was also pursued in 2024. State incentives (referred to as “Ecobonuses”) for 2024 have been scaled down and granted to a smaller group than in previous years, i.e. as far as SMEs are concerned, only for the purchase of non-polluting vehicles by companies carrying out car sharing or car rental activities for commercial purposes. During 2024, the sales network was constantly informed about the new state incentives "Ecobonus" linked to the purchase, also through financial leasing, of electric vehicles;
•research for the development of new leasing products related to sustainable mobility (i.e. e-bikes). In this context, the new 'e-bike rental' product was released in April to promote sustainable mobility and active tourism in Italy. The commercial offer is especially aimed at small and medium-sized enterprises in the tourism and hospitality industry interested in equipping themselves with an e-bike fleet;
•the release of an additional leasing product related to sustainable development: the leasing of photovoltaic systems and charging stations. This solution is dedicated to SMEs to support the transition to renewable energy sources and environmental sustainability.
The Group also continued to develop its offer of sustainable products in the social sphere, with the launch in 2024 of an electro-medical leasing and rental product (offered by Banca Ifis and Ifis Rental Services respectively)
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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.
[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.
[S4-4 DP 32a]
In order to respond to negative impacts that may affect customers, specific processes have been implemented to constantly evaluate and improve their experience.
[S4-4 DP 32b]
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.
[S4-4 DP 32c]
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 2024, the Group worked on the makeover of its corporate websites with the aim of improving accessibility for people with psychological-motor 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
[S4-4 DP 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, within this project, the Bank paid attention to particular categories of debtor customers considered to be fragile subjects.
[S4-4 DP 30 MDR-A]
Ifis Npl is a major player in the Italian non-performing loans market and a leader in the unsecured small ticket segment. Ifis Npl operates through two companies:
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•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.
What has been defined over the years is a virtuous model where 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;
•it prepares settlement plans suited to the customer's finances and tailored to each individual case;
•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 2024, a project was launched 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 pursued by the Chair and its focus on sustainability. In particular, the project was 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, the on-line payment platform created to help debtors return performing and which enables fast and effective communication, through the introduction of digital onboarding, a 'call me back' option that allows the debtor customer to request a postponed contact and pre-approved proposals that can be subscribed to in a fully digital mode;
•raising the awareness of debtor customers on financial education issues through the provision of video-pills on generic and specific financial education topics on the debt collection process, developed in cooperation with FEduF and the Unirec consumer forum;
•the implementation of specific communication initiatives to encourage the use of the Pagachiaro Portal;
•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;
•the launch of a pilot project with the aim of encouraging amicable settlements of cases under judicial processing, increasing out-of-court settlements in the judicial basin.
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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, etc.);
•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 close cooperation with the parent company's Compliance Department, 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. In addition, both in the start-up phase and during the course of the activity, continuous training and coaching is provided.
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;
•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 manuals 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.
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. In addition, 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.
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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:
•inclusion 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;
•disbursement of incentives to the most virtuous collectors from an ESG perspective;
•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. KPIs are regularly shared. 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.
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3.4.4 Responsible marketing practices
Group approach and policies
The Banca Ifis 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
Main approaches to dealing with IROs
Responsible business practices / Non-discrimination
Improvement in customer satisfaction levels due to the provision of tailor-made products/services and/or the failure to deal with grievance in a timely and effective manner
Actual positive impact
Value chain
Medium-term
Engaging in unfair, deceptive or aggressive business practices, including greenwashing or social washing with respect to products offered
Potential negative impact
Value chain
Medium-term
Customer dissatisfaction due to ineffective, transparent and incomprehensible communication
Potential negative impact
Value chain
Medium-term
Non-compliance with regulatory requirements on market integrity, fairness, transparency and prevention of market abuse
Risk
Value chain
Medium-term
Failure to respect customers' interests, unfair market practices and absence of codes of conduct
Risk
Value chain
Medium-term
Improving customer relations through clear and transparent communication
Opportunity
Value chain
Medium-term
•ESG Policy
•Group Code of Ethics
•Organisational Procedure for the Transparency of banking and financial operations and services
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Code of Ethics, ESG Policy
[S4-1 DP 15]
Within the Code of Ethics (see 4.1 ESRS G1 - Business Conduct, section 4.1.1 Corporate Culture and Protection of Whistleblowers, DP 7 MDR-P) and the Group's ESG Policy (see 2.2 ESRS E1 - Climate Change, section 2.2.2 Energy, Climate Change Adaptation and Mitigation, DP 25) Banca Ifis emphasises its commitment to operating in a socially responsible and inclusive manner, with particular attention to consumers and end users of its products and services. To this end, business practices based on principles of responsibility and non-discrimination are promoted.
Organisational Procedure for the Transparency of banking and financial operations and services
[S4-1 DP 15]
Finally, as illustrated above, the Group, through its organisational procedure relating to the transparency of banking and financial transactions and services (see 3.4 ESRS S4 - Consumers and End-Users, Section 3.4.1 Access to (Quality) Information, DP 15 MDR-P), establishes the main regulatory requirements and determines the operating procedures through which each Group company meets them.
Actions
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, unfair market practices 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 clear, consistent and transparent communication, and ensuring the absence of discrimination at every stage of the relationship.
[S4-4 DP 31a]
Banca Ifis is committed to introducing concrete measures aimed at preventing the potential negative impacts generated by the execution of unfair, deceptive or aggressive business practices, including greenwashing or social washing with respect to the products offered, as well as the limited access for certain categories of stakeholders to favourable credit terms, resulting from the Group's strategy and operational limitations that affect its ability to meet all loan requests.
[S4-4 DP 30 MDR-A]
In particular, during 2024, as part of the 'Ifis Sustainable Transformation' programme, 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;
•establishment of a technical team of ESG experts for underwriting advice.
[S4-4 DP 31c]
On the other hand, it seeks to generate positive impacts by improving customer satisfaction by offering customised products and services and ensuring timely and effective complaint handling.
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[S4-4 DP 30 MDR-A]
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 grievance or the implementation of general solutions to address the causes underlying the individual grievance or multiple grievances 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 grievance management process to the issue of reporting to credit databases (Central Risk Office and private databases), in relation to which the Group Claims Department has developed specialist skills that make it a point of reference, together with the Supervisory Reporting Service, for other corporate functions.
[S4-4 DP 31d]
Within the scope of the 'Ifis Sustainable Transformation' programme, the Group has established ESG standards that the Bank must comply with in relation to the end customer. These are continuously monitored internally in order to assess the application and regulatory compliance of these procedures.
[S4-4 DP 32a]
The process of handling marketing communications provides for special safeguards to ensure the fairness and transparency of communications.
[S4-4 DP 32b]
In particular, specific exclusions are considered in the definition of the relevant market, which may be determined by various factors, such as, for example, the presence of grievances, litigation and particular customer requests.
[S4-4 DP 32c]
For the purposes of completeness and appropriateness of communications, the Compliance department and, for data processing aspects, the Privacy structures are involved in the process.
[S4-4 DP 34]
The marketing of the Group's products 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 communication 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 33a]
In response to the risk of customers' interests being disregarded due to unfair market practices, as well as non-compliance with regulatory requirements relating to market integrity, fairness, transparency and prevention of market abuse, the Group has a specific Group Policy for the approval of new products and services, the launch of new activities, and entry into new markets.
[S4-4 DP 30 MDR-A]
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.
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[S4-4 DP 33b]
At the same time, the Group strives to seize the opportunity to improve customer relations through clear and transparent communication.
[S4-4 DP 30 MDR-A]
To achieve this objective, the Group has adopted an organisational procedure 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 grievances, litigation and particular customer requests.
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, promoting an ethical and sustainable collection model. Through targeted solutions, it helps restore economic stability and facilitates new access to credit, thus contributing to a fairer and more inclusive financial system;
•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.
Regarding the management of its customers' privacy, in 2024, the Banca Ifis Group registered a customer grievance with the Italian Data Protection Authority regarding alleged privacy violations. After examining the defences provided in response, the Authority concluded its investigation by ordering the grievance to be closed. In 2024, there were 60 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 grievances lodged with the intermediary for breach of privacy, detecting four violations in the context of the collection of distressed Npl loans for the use of unauthorised telephone users and sending documentation to third parties not authorised to receive it.
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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 grievances from customers or debtors.
[S4-2 DP 20,b]
Although there is no specific time for direct stakeholder involvement, the network of sales, management and sales support maintains continuous contact with customers, constantly gathering their feedback to improve the offer.
[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.
[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, such as 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.
3.4.6 Channels
[S4-3 DP 25a]
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 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
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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. These mechanisms help management identify potential inefficiencies, anomalies or issues concerning business processes. Therefore, along with the controls, they help evaluate the effectiveness of the management approach to the various topics.
Finally, the Compliance Department periodically monitors the reports registered by the Group Claims Department through the grievances 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 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.
[S4-3 DP 25b]
The Banca Ifis Group has set up various channels for the collection of grievances, 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 grievance, the expected response time and the procedures for bank 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 functionalities, Pagachiaro is a useful and transparent tool for managing debt positions with Ifis Npl, providing customers with a simple and effective digital experience.
[S4-3 DP 25d]
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 grievances, in any case, provide clear and transparent details: if the grievance 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
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for their implementation. If, on the other hand, the grievance 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 used to prepare half-yearly reports 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.
[S4-3 DP 25c]
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 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 any negative impacts that have occurred 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 guarantees the protections of confidentiality, data processing and from 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. For more details on policies to protect individuals from retaliation when using such procedures, see ESRS G1-1.
3.4.7 Targets
[ESRS 2 DP 72,81b MDR-T]
[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.
[ESRS 2 DP 72,81a MDR-T]
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.
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4. Governance
4.1 G1 – Business conduct
4.1.1 Corporate culture and the protection of whistleblowers
Group approach and policies
[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 | Main approaches to dealing with IROs
Business culture
Dissemination of a culture of fairness and ethics among employees | Actual positive impact | Own operations | Medium-term | •ESG Policy•Group Code of Ethics•Organisational, Management and Control Model as per Italian Legislative Decree no. 231/2001•Sensitive sectors policy•Anti-money laundering policy•Employee training
Occurrence of money laundering incidents to the detriment of the market and the community | Potential negative impact | Own operations | Medium-term
Promotion of initiatives to support the business culture | Opportunity | Own operations | Medium-term
Protection of whistle-blowers
Ineffectiveness of whistleblowing processes and/or in the protection of whistleblowers, resulting in their distrust of the Banking Group | Potential negative impact | Own operations | Medium-term | •ESG Policy•Group Code of Ethics•Group Whistleblowing Policy

Code of Ethics
[G1-1 DP 7 MDR-P]
The Banca Ifis Group's Code of Ethics defines the principles, values and responsibilities that guide its relations with all stakeholders, promoting fairness, loyalty and consistency within and outside its organisation. This tool is essential to preserve reputation, ensure sustainable value creation and guide choices, processes and behaviour. The definition of the principles, values, rights, duties and responsibilities of the Group's Code of Ethics takes into account the interests of all stakeholders with whom Group companies enter into relations in order to ensure the pursuit of its corporate purpose and promote virtuous conduct consistent with its values. Furthermore, the Code is an integral part of the Organisational, Management and Control Models adopted pursuant to Italian Legislative Decree no. 231/2001, aimed at preventing the perpetration of offences by its employees and the liability of the Group.
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The Code of Ethics is approved, on the proposal of the Chief Executive Officer, by Banca Ifis’s Board of Directors. Once approved, it is implemented by the respective bodies and subsidiaries through internal instruments for the implementation of the regulations, within the framework of the management and coordination activities exercised by the parent company. Group companies that have adopted an Organisational, Management and Control Model pursuant to Italian Legislative Decree no. 231/2001 have set up a Supervisory Body, which is responsible for: defining initiatives aimed at dissemination and application, coordinating the drafting of rules and procedures, promoting the periodic review of the Code of Ethics, supervising its observance and application, and activating, through the organisational units in charge, any sanctions and reporting to the Board of Directors.
The rules and principles included therein apply to all those who work with the companies of the 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. To ensure compliance with the values, this tool is made available on the company intranet, in the "Regulations and Forms" section and on the company website.
The Group's Code of Ethics sets out the fundamental principles that should guide the behaviour of all members, promoting a working environment based on:
•fairness: promotion of virtuous conduct, professional ethics, credit quality and prevention of corruption;
•collaboration: willingness to discuss and collaborate with stakeholders, transparency and simplicity in communication to encourage free and informed choices;
•professionalism: constant commitment to improvement and innovation, with professionalism, passion and staff cooperation;
•passion: the enthusiasm and personal involvement of professionals as a key resource for the Group;
•privacy: protection of personal data and information, in compliance with privacy regulations;
•centrality of the person: investing in people's skills and protecting their dignity and safety, countering any violations;
•fairness: rejection of discrimination, with business decisions based on merit and not on prejudices related to race, nationality, age, sexual orientation, and other aspects;
•equal opportunities and inclusion: ensuring equal opportunities and concrete actions to support inclusion by adopting an inclusive and culturally diverse organisational model.
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. The Group's Code of Ethics has therefore been adapted with respect to the introduction of detailed regulations specifying which sectors the Group does not wish to enter into relations with.
Organisational, Management and Control Model as per Italian Legislative Decree no. 231/2001
[G1-1 DP 7 MDR-P]
In a parallel fashion, the Organisational, Management and Control Model as per Italian Legislative Decree no. 231/2001 of Banca Ifis (see 4.1 ESRS G1 - Conduct of Businesses, section 4.1.3 Corruption and bribery, DP 7 MDR-P) aims to promote a culture of legality within the company, preventing the perpetration of offences connected with company activities. To this end, a control system is implemented that includes principles of conduct and organisational measures that are binding for all recipients of the Model, with monitoring of compliance entrusted to the Supervisory Body in cooperation with the internal control functions. Any violation of the Model is seen as a conflict with the Bank's moral and ethical values and will be sanctioned, even if motivated by intentions aimed at benefiting the company. The involvement of personnel in the prevention of unlawful conduct and the timely reporting of possible violations of the Model is also strengthened.
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Sensitive sectors policy
[G1-1 DP 7 MDR-P]
Consistent with the Code of Ethics, Banca Ifis's Sensitive Sectors Policy represents a crucial element for the correct orientation of banking activities in relation to sectors that may involve environmental, social and governance 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 ethical principles and guidelines of the Group's Code of Ethics;
•they are considered to be ESG high risk.
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, which complements what is already regulated in the Code of Ethics, applies to a variety of sectors, including those related to fossil energy, the unconventional oil and gas industry, unconventional arms production, tobacco and other activities that may violate human rights or cause irreversible damage to the environment. In this way, the Bank intends not only to protect its own reputation and that of its stakeholders, but also to contribute to sustainable economic growth and a more equitable and resource-friendly future.
The latest version of the Policy, approved in February 2025, is applied to all Group companies. The provisions are addressed to all organisational units involved, which must comply with the contents according to their respective competences.
Approved by the Board of Directors with validation by the Chief Executive Officer, 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. 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.
Anti-Money Laundering Policy
[G1-1 DP 7 MDR-P]
The Group's Anti-Money Laundering 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.
Specifically, this Policy governs:
•organisational structures, procedures and internal controls;
•due diligence processes;
•suspicious transaction reporting;
•data retention;
•the overall process for managing the risk of money laundering and terrorist financing.
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.
The Policy applies to all Group companies, with exceptions subject to the prior approval of the body with strategic supervisory functions of the parent company. Each subsidiary is responsible for the concrete implementation of the Policy, under the supervision of the Chief Executive Officer or, in his absence, the Board of Directors. The body
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with strategic supervisory function of each company transposes the Group Policy and ensures its effective implementation.
The Policy is prepared in implementation of the Bank of Italy Provisions of March 2019, as amended by the Provision of 1 August 2023, and is published on the company intranet. It is promptly updated by the Anti-Money Laundering Department according to changes in regulations, operational processes or reference information systems. In order to promote its dissemination and understanding, all employees receive special communications and updates.
Whistleblowing Policy
[G1-1 DP 7 MDR-P]
The Whistleblowing Policy adopted by the Banca Ifis Group 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, this 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 Policy is applicable to all Group companies and all legal entities, regardless of the type of contractual relationship, ensuring a uniform implementation of the provisions.
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.
Through the widespread dissemination of the document, available to all personnel, the Banca Ifis Group confirms its commitment to promoting a corporate culture based on principles of integrity, legality and protection of whistleblowers.
Management of reports: the Whistleblowing System
[G1-1 DP 10a]
To prevent the negative impacts arising from the ineffectiveness of whistleblowing processes and the insufficient protection of whistleblowers, with the consequent risk of loss of confidence in the Group, Banca Ifis has set up a whistleblowing system supported by formalised procedures accessible to all personnel that allows them to report acts, facts or omissions that violate laws or internal procedures of Group companies. The system is accessible not only to internal stakeholders, such as shareholders, directors and employees employed on a subordinate basis (e.g. 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 employment relationship has not yet started or has already ended.
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[G1-1 DP 11]
In order to ensure the proper functioning of the Whistleblowing procedures, Banca Ifis has developed such a tool in compliance with Italian Legislative Decree no. 24/2023, which transposes EU Directive 1937/2019 on the protection of whistleblowers reporting European and national regulatory infringements. The Group ensures the functioning of the reporting channels and the protection of all those involved.
[G1-1 DP 10ci]
The Banca Ifis Group Whistleblowing system consists of the following channels:
•a dedicated application, accessible via intranet or institutional sites. The software allows for anonymity by opening a confidential 'Inbox' to be contacted in case of need during the processing of the report in order to complete the investigation. Each report will also generate a notice sent to the dedicated e-mail address, accessible only to the Head of Internal Audit;
•a voice messaging system via a dedicated toll-free number, which sends an alert to the associated e-mail address accessible only 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 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]
Confidentiality 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. Indeed, confidentiality obligations are balanced against the need for investigations and disciplinary action, or in the case of legal proceedings: identity is only revealed when necessary for investigations or judicial investigations.
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 and voice messaging system.
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[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), 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.
Actions
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 further 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 Group Code of Ethics, the Group 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.
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.
The obligation to read the regulations and training courses is an important tool to raise awareness among employees to adopt correct and transparent behaviour, contributing to the creation of 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. The obligation is extended to all Group employees.
This functionality goes hand in hand with the constant promotion of a shared corporate culture and the dissemination of information through the publication of dedicated news items on the corporate intranet, with the aim of keeping employees up-to-date on regulatory developments, both within the Group and in the broader context. In 2024, special attention was paid to training and internal communication via the company intranet. Live streaming training sessions were promoted, focusing on Anti Money Laundering topics and the new AML regulations in force as of 2024. In addition, content relating to the Organisation, Management and Control Model pursuant to Italian Legislative Decree no. 231/2001, with a focus on on-line training courses on 'Risk Prevention and Crime Governance'. In the same year, a news item published on the company intranet announced the implementation of the new whistleblowing application, dedicated to the collection of written 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.
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Corporate culture also takes the form of raising awareness among the corporate population on sustainability issues and commitment to these areas, in particular in 2024, several sharing events were organised to promote awareness and participation, including:
•six on-line webinars and events to discuss the regional economic context as part of the Innovation Days project in collaboration with Il Sole 24 Ore and Confindustria;
•eight events in different Italian cities as part of 'Small Giants', the Roadshow in collaboration with Forbes Italia dedicated to telling the story of small and medium-sized enterprises in Italy. Innovation, sustainability, quality and the enhancement of human capital were among the main topics covered;
•three 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;
•"Emoving Business Day", B2B day reserved for industry operators with ad hoc panel on the topic of electric mobility and speech during the panel "Urban Mobility and Cycle Tourism";
•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 'EY Sustainability Summit', on environmental, economic and social sustainability. Meeting points for industry representatives and experts addressing topics such as transformations related to corporate culture, competitive strategies and operating models will be discussed in depth, examining the most innovative approaches that are being consolidated;
•'Enhancing the value of Made in Italy through tourism: a strategy for the development of territories', an event organised in collaboration with Federturismo Confindustria to explore the balance between innovation and tradition in Italian companies, their impact on tourism and Italy's global image, and to talk about how Italy enhances its artistic, tourist and industrial resources;
•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 'Credit Management Summit' event of il Sole 24 Ore to compare banks, service providers and professionals on the challenges of a changing sector, with involvement in the round table 'ESG, digital and Ai: new approaches in credit management and recovery';
•"Sport Business Forum", the international benchmark event on all topics related to the sport business, a meeting and discussion forum between sport bigwigs, companies and leading institutions of the sport system;
•'How Italy creates economic and social value through sport', an event organised by Banca Ifis in collaboration with the Italian Embassy in the United Kingdom, with the aim of highlighting the economic value of sport in Italy, underlining the importance of its positive spin-offs for the country system and promoting international dialogue around a strategic sector such as sport.
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.
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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. The training is delivered through classroom courses (in-person and virtual) and an e-learning module, 'The Anti-Money Laundering Discipline', delivered in Adaptive Learning mode, available on the Ifis Talent platform.
During the year, 33 training sessions were organised, specific to the different Group companies, for a total of 54 hours of training provided, involving a total of 1.322 participants. Topics include first-level controls, identification of the beneficial owner and the use of screening tools.
Further initiatives include:
•two live streaming sessions dedicated to 'Suspicious Transaction Reporting';
•training interventions within the 'Business Accelerator' programme organised by the Human Resources Department;
•general anti-money laundering training for agents in financial activities, recovery agents and recovery companies used by the Leasing BU, Cap.Ital.Fin. and the Npl sector 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.
4.1.2 Management of relations with suppliers
Group approach and policies
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.
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[G1.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon | Main approaches to dealing with IROs
Management of relations with suppliers
Damages to suppliers, in particular SMEs, due to failure to meet payment deadlines | Potential negative impact | Own operations | Medium-term | •ESG Policy•Group Code of Ethics•Organisational, Management and Control Model as per Italian Legislative Decree no. 231/2001 of individual companies•Group Expenditure Cycle Management PolicySustainable Procurement Project
Improvement of suppliers' ESG performance by means of selection criteria that consider social and environmental aspects | Potential positive impact | Own operations | Medium-term
Improving the quality of purchased products and services through a more sustainable supply chain and certified products (incorporating minimum environmental criteria) | Opportunity | Own operations | Medium-term

Group Expenditure Cycle Management Policy
[G1-2 DP 14]
The Group Expenditure Cycle Management 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:
•the purchase of goods and services;
•purchases of real estate.
The Policy is applicable and disseminated, as far as it is applicable, to all the organisational units of the Parent Company and the companies controlled by the latter and fully complies with current regulations, in particular 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 contained in Bank of Italy Circular No. 288 of 3 April 2015.
This 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. 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.
Guidelines for defining supplier payment methods
[G1-2 DP 14]
Guidelines for supplier payment arrangements outline principles and guidelines to ensure timely and effective payment management, with the aim of strengthening supplier relations and promoting responsible business practices. In particular, they aim to ensure the punctuality of payments, through the adoption of precise standards and monitoring procedures designed to reduce the risk of delays that could have a negative impact on suppliers. Furthermore, the guidelines are fully aligned with the requirements of the CSRD (Corporate Sustainability Reporting
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Directive) and European Regulation 852/2020, ensuring compliance with European standards and reflecting the Group's attention to sustainable and socially responsible practices.
The approach taken is based on the principles of fairness, transparency and sustainability, which are fundamental to creating a relationship of trust with suppliers. Each Group company, through its respective departments, is responsible for implementing the provisions of the guidelines, ensuring their consistent and integrated application in the management of payments to suppliers.
Actions
[G1-2 DP 15a,b]
The Banca Ifis Group manages relations with suppliers through a structured framework of internal procedures and policies, including the Group Expenditure Cycle Management Policy and the Corporate Goods and Services Procurement Management Organisational Procedure, both updated in 2024. These ensure transparency, sustainability and full regulatory compliance. Each contract, in accordance with the Organisational Procedure for the Procurement of Company Goods and Services, requires adherence to the binding principles of the Group's Code of Ethics, breach of which may entail termination of the contract 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.
As a result of the double materiality assessment, the Group identified specific areas of focus within the supply chain, including supporting SMEs, particularly at the payment stage, and creating joint paths with suppliers to improve their ESG performance. These initiatives take the form of the analysis of social and environmental criteria and their implementation through the 'Sustainable Procurement' project (implemented by the Procurement & Cost Management Department taking into account the exclusions provided for in the relevant internal regulations), described in detail in relation to workers in the value chain (see ESRS 3.2 S2 - Workers in the value chain, section 3.2.1 Rights related to workers in the value chain, DP 34b). The main objective of the project is to set up a path to monitor the ESG performance of the most relevant suppliers through the administration of a dedicated questionnaire.
In addition, the management of risks associated with major contracts 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 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.
Furthermore, in order to prevent the negative impact of damage to suppliers, particularly SMEs, caused by the failure to meet payment deadlines, the Operating Note - Management of the invoice recording and payment process (expenditure cycle) was adopted for Banca Ifis, in line with the Group Policy for the management of the expenditure cycle described above, which regulates activities relating to the management of supplier payments.
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In particular, the liability 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 defining supplier payment methods' Banca Ifis adopts an approach 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 responsibility, considering compliance with payment terms not just an operational issue, but a core value to support ethical and responsible business practices.
4.1.3 Corruption and bribery
Group approach and policies
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,
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together with the guidelines outlined in the Group Code of Ethics. These tools are essential to ensure the integrity of business operations and promote a culture of transparency and accountability within the Group.
[G1.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon | Main approaches to dealing with IROs
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 | •ESG Policy•Group Code of Ethics•Organisational, Management and Control Model as per Italian Legislative Decree no. 231/2001•Employee training•Specific safeguards for the Group's agents•Anti-corruption policy
Occurrence of corruption episodes to the detriment of the market and the community | Potential negative impact | Own operations | Medium-term
Sanctions for convictions related to financial crime activities (e.g. money laundering, sanctions violations, corruption and bribery) | Risk | Own operations | Short-term
Improving reputation by investing in the development of innovative tools to manage, monitor and prevent corruption and bribery | Opportunity | Own operations | Medium-term

Organisational, Management and Control Model as per Italian Legislative Decree no. 231/2001
[G1-1 DP 7 MDR-P]
The Banca Ifis Group has adopted the Organisational, Management and Control Model pursuant to Legislative Decree no. 231/2001 (OMM), to ensure transparency, correctness and protection of its institutional role, its image and the interests of shareholders and collaborators, as well as of all stakeholders with whom Group companies enter into relations in order to ensure the pursuit of its corporate purpose in a lawful and virtuous manner. The OMM 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 Model, aligned with the best practices and guidelines of the Italian Banking Association (ABI) and Confindustria, represents a key element of the Group's preventive control system.
The rules contained in the OMM 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;
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•self-employed workers, consultants, professionals, partners (commercial/financial), suppliers, attorneys and, in general, third parties operating on behalf of or in the interest of the company, limited to what is specifically indicated in the relevant contractual agreements.
In June 2024, the members of the Parent Company's Board of Directors approved the update of Banca Ifis's OMM, in compliance with the external regulatory changes that had occurred and the organisational changes, which also contains the provisions relating to the prevention of the risk of perpetration of bribery and corruption offences. The board members of the subsidiaries approved their respective models in July 2024.
As far as suppliers, business partners and external networks are concerned, one of the safeguards adopted to guarantee the integrity of their conduct is the obligation to comply with the Code of Ethics and the OMM when signing the contract, in accordance with the precise indications of the relevant internal regulations.
OMMs are updated in accordance with internal regulations, which define roles and responsibilities for audit and compliance activities. To this end, the Bank has adopted a specific operational note governing the procedures for updating the OMM, distinguishing between changes resulting from external regulatory changes, internal changes or the detection of violations.
In the course of 2024, the Parent Company's OMM was updated to adapt the 'General Section' and 'Special Section' to recent legislative changes, with particular reference to the amendments to Legislative Decree no. 231/2001 and the related predicate offences introduced by the following regulations:
•Law 137/2023 on auction rigging and fraudulent transfer of valuables;
•Law 90/2024, on cybersecurity;
•Legislative Decree 114/2024, concerning trafficking in unlawful influence and abuse of office;
•Legislative Decree 141/2024 on smuggling.
The changes have also been incorporated into the OMMs of the Group's subsidiaries, ensuring alignment with regulatory updates and uniform application of the provisions.
The updated version of the OMM, 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 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 OMMs are made available on the company intranet.
[G1-1 DP 10g]
In order to ensure the effective implementation of the Organisation, Management and Control Model pursuant to Italian Legislative Decree no. 231/2001 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 OMM, 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 OMM.
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 relevant regulatory developments, initiating the process of monitoring and implementing changes as governed by the relevant internal regulations.
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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.
Anti-Corruption Policy
[G1-1 DP 7 MDR-P]
During the year, Banca Ifis decided to adopt a new policy for the prevention of corrupt conduct in the performance of its companies' activities. In particular, the Policy 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 Policy expressly recalls the regulatory sources and intervenes on a matter already regulated by the Organisation, Management and Control Model pursuant to Legislative Decree no. 231/2001 of the parent company, whose structure it incorporates. The three different levels of control, in addition to the Supervisory Body (SB) insofar as they are of relevance pursuant to Legislative Decree no. 231/2001, continuously monitor this Policy with a view to ensuring its effective implementation. 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.
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.
The document applies to all Group employees, members of corporate bodies, collaborators, consultants, suppliers and business partners, is disseminated on the company intranet, published on the company website and approved by the Board of Directors.
[G1-1 DP 10h]
The areas of the Banca Ifis Group identified as most exposed to potential corruption events include:
•Chief Commercial Officer (CCO) Department, with particular reference to the departments involved in the credit disbursement process;
•General Counsel Department;
•Privacy & Security Department, responsible for legal, privacy and security aspects;
•Human Resources Department, involved in the management of human resources and staff policies;
•control departments, involved in monitoring regulatory compliance and risks;
•Procurement & Cost Management Department, in charge of managing the company's procurement and costs;
•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
Banca Ifis strives to prevent potential negative impacts arising from episodes of corruption, safeguarding the market and the community, and to promote a positive impact through the dissemination of 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
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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.
This integrated approach promotes relationships based on trust and integrity, consolidating a corporate culture oriented towards sustainability and respect for shared values.
[G1-3 DP 18a]
The Parent Company's OMM, 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 OMM 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.
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
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relevant implementation time line. 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 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 Body established pursuant to Italian 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 Models 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 OMM 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 OMM, the Group 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 OMM. 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.
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[G1-3 DP 20]
All employees are required to know and comply with the rules of conduct set forth in the OMMs 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. In addition, all the Group's employees can access internal regulations, and specifically the Group Code of Ethics, the Organisational and Management Model, and the relevant protocols and procedures using the company Intranet. The Group ensures that all employees receive adequate training on the anti-corruption policies and procedures set out in the OMM and the Code of Ethics. The Board of Directors of the Parent Company and the Boards of Directors of the subsidiaries, when approving/receiving the Group Code of Ethics and approving the OMMs, are made aware of the anti-corruption procedures adopted.
[G1-3 DP 21a]
Within the Ifis Talent platform, which can be accessed by all employees of Italian companies, two e-learning courses for compulsory training are available. Both courses include a final test, the passing of which is binding for the successful completion of the course. The courses made available on the platform are: "The Banca Ifis Code of Ethics", detailing the principles of conduct in relations with employees, collaborators and other stakeholders, as well as the tools for implementing and supervising the Code of Ethics, and "Prevention and governance of crime risk", based on the general principles identified by Italian Legislative Decree no. 231/2001.
In November 2024, an updated version of the course 'Crime Risk Prevention and Governance' based on Adaptive Learning technology was made available in Ifis Talent. This innovative approach enables faster and more focused learning, maximising results. First, the user is offered an initial test that assesses the level of knowledge of each topic. The test results determine which modules each user will have to attend, depending on the type of questions not answered correctly in the initial test, with the exception of some contents that must necessarily be attended as they are impacted by new regulations. Finally, once the proposed modules have been completed, a final test is proposed on all topics, with a minimum threshold for passing.
The course on “Prevention and governance of the risk of crime (Legislative Decree 231/2001), covers, first and foremost, the salient features of administrative liability of entities, namely:
•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.
In addition, the Training Module covers all offences under the 231/2001 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.
Whereas, with regard to the Group Code of Ethics, the e-learning course deals with principles of conduct in relations with employees, collaborators and other stakeholders. This course consists of four sections:
•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).
For the employees of foreign companies, two on-line training sessions were organised to deepen their understanding of the Code of Ethics, with a structure that mirrors what was proposed in the relevant e-learning course.
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[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]
To date, the Banca Ifis Group has not provided specific training modules on corruption-related offences reserved for Directors. The members of the Board of Directors are made aware of the measures implemented on the matter when approving the Organisation, Management and Control Model pursuant to Italian Legislative Decree no. 231/2001 and the Code of Ethics.
4.1.4 Political inflence and lobbying activities
Group approach and policies
[G1-1 DP 7]
As formalised within the ESG Policy (see 2.2 ESRS E1 - Climate Change, section 2.2.2 Energy, Climate Change Adaptation and Mitigation, DP 25), the Banca Ifis Group is committed to not making political contributions in any tangible or intangible form.
[G1.SBM-3 DP 48a]

IRO description | IRO category | Connection with value chain | Time horizon | Main approaches to dealing with IROs
Political influence and lobbying activities
Participation in organisations dealing with political causes with negative impacts related to corruption, bribery, undue influence on public opinion and the political process | Potential negative impact | Own operations | Short-term | •ESG Policy•Group Code of Ethics•Participation in the work of industry associations

Actions
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 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.
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4.1.5 Targets
[ESRS 2 DP 72 MDR-T]
At present, there are no measurable, outcome-oriented targets set in relation to the impacts, risks and opportunities associated with business conduct-related areas. 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
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 2024, 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.
[G1-4 DP 24b]

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

[G1-4 DP 25d]
As in the previous year, during 2024 there were no incidents of corruption or legal cases brought against the employees of the Group or the external networks.
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[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 2024, 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 (25 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 46% of cases).
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 | 2024
No. | 25

[G1-6 DP 33b]

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

[G1-6 DP 33c]

Number of legal proceedings outstanding for late payments | UoM | 2024
No. | 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 2024 (1 January - 31 December), the sampling used includes:
•all invoices issued to suppliers by each Ifis Group company during the reporting period;
•invoices issued 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;
•suppliers that do not qualify as SMEs (e.g. the Bank of Italy or natural persons);
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•invoices for professionals, as they do not fall into the SME category;
•transfers and credit notes.
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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 and XII of Delegated Regulation 2021/2178 are expressed in million/Euro and in percentage values. If 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 cell is not visible in percentage terms or in millions of Euro (because it is a small percentage/amount), the corresponding cell in the templates below is set to '0,0'.
In addition, the Taxonomy Templates given below, in particular the row and column headings, refer to NFRD undertakings, currently CSRD undertakings (due to the entry into force of EU Directive 2022/2464). Ifis Group, in order to ensure consistency with the representation set out in Annex VI of the EU Delegated Regulation 2021/2178, has not changed the row and column headings of the Templates, leaving the wording "NFRD undertakings" unchanged.
Finally, with reference to the reporting templates below and related to FY 2023, as required by the regulations, only the columns related to Climate Change Mitigation (CCM), Climate Change Adaptation (CCA) and Total (CCM + CCA) objectives are represented.
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Template 1. Assets for the calculation of GAR – Capex based [FY 2024]

Million EUR | Total [gross] carrying amount | 31/12/2024 | 31/12/2024
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Of which towards taxonomy relevant sectors (Taxonomy-eligible) | Of which towards taxonomy-relevant sectors (Taxonomy-eligible)
| Of which environmentally sustainable (Taxonomy-aligned) |  | Of which environmentally sustainable (Taxonomy -aligned)
|  | Of which use of proceeds | Of which transitional | Of which enabling |  |  | Of which use of proceeds | Of whichenabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 3.522,7 | 660,1 | 143,6 | - | 2,8 | 73,9 | 8,7 | 1,2 | - | 0,1
Financial undertakings | 818,3 | 228,1 | 31,2 | - | 0,9 | 20,8 | 2,0 | 0,4 | - | 0,1
Credit institutions | 642,5 | 141,4 | 11,2 | - | 0,9 | 2,4 | 0,4 | 0,2 | - | 0,1
Loans and advances | 73,2 | 11,5 | 1,1 | - | 0,3 | 0,3 | 0,0 | 0,0 | - | -
Debt securities, including UoP | 557,3 | 127,0 | 9,8 | - | 0,6 | 1,9 | 0,4 | 0,1 | - | 0,1
Equity instruments | 12,0 | 2,9 | 0,4 |  | 0,0 | 0,1 | 0,0 | 0,0 |  | 0,0
Other financial corporations | 175,8 | 86,6 | 20,0 | - | 0,0 | 18,4 | 1,6 | 0,2 | - | -
of which investment firms | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - | - |  | - | - | - | - |  | -
of which management companies | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - | - |  | - | - | - | - |  | -
of which insurance undertakings | 3,6 | 0,8 | 0,1 | - | - | - | 0,6 | 0,1 | - | -
Loans and advances | 1,9 | 0,6 | 0,1 | - | - | - | 0,4 | 0,0 | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | 1,7 | 0,3 | 0,1 |  | - | - | 0,2 | 0,1 |  | -
Non-financial undertakings | 577,5 | 260,3 | 100,8 | - | 1,8 | 53,1 | 6,7 | 0,9 | - | 0,0
Loans and advances | 443,8 | 207,0 | 72,3 | - | 1,1 | 45,7 | 2,4 | 0,6 | - | 0,0
Debt securities, including UoP | 76,3 | 31,5 | 14,5 | - | 0,2 | 4,4 | 4,2 | 0,3 | - | 0,0
Equity instruments | 57,3 | 21,8 | 14,0 |  | 0,6 | 3,0 | 0,1 | 0,0 |  | 0,0
Households | 2.126,9 | 171,7 | 11,6 | - | - | - | - | - | - | -
of which loans collateralised by residential immovable property | 118,5 | 118,5 | 11,6 | - | - | - | - | - | - | -
of which building renovation loans | - | - | - | - | - | - | - | - | - | -
of which motor vehicles loans | 53,3 | 53,3 | - | - | - |  |  |  |  |
Local government financing | - | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | - | -
Assets excluded from the numerator for GAR calculation (covered in the denominator) | 7.913,5 | - | - | - | - | - | - | - | - | -
Financial and Non-financial undertakings | 5.707,6 |  |  |  |  |  |  |  |  |
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations | 5.553,6 |  |  |  |  |  |  |  |  |
Loans and advances | 5.421,1 |  |  |  |  |  |  |  |  |
of which loans collateralised by commercial immovable property | 185,9 |  |  |  |  |  |  |  |  |
of which building renovation loans | - |  |  |  |  |  |  |  |  |
Debt securities | 35,5 |  |  |  |  |  |  |  |  |
Equity instruments | 97,0 |  |  |  |  |  |  |  |  |
Non-EU country counterparties not subject to NFRD disclosure obligations | 154,1 |  |  |  |  |  |  |  |  |
Loans and advances | 150,6 |  |  |  |  |  |  |  |  |
Debt securities | 1,0 |  |  |  |  |  |  |  |  |
Equity instruments | 2,4 |  |  |  |  |  |  |  |  |
Derivatives | 7,4 |  |  |  |  |  |  |  |  |
On demand interbank loans | 279,9 |  |  |  |  |  |  |  |  |
Cash and cash-related assets | 0,0 |  |  |  |  |  |  |  |  |
Other categories of assets (e.g. goodwill, commodities, etc.) | 1.918,6 |  |  |  |  |  |  |  |  |
Total GAR assets | 11.436,2 | 660,1 | 143,6 | - | 2,8 | 73,9 | 8,7 | 1,2 | - | 0,1
Assets not covered for GAR calculation | 2.650,2 |  |  |  |  |  |  |  |  |
Central governments and Supranational issuers | 2.345,0 |  |  |  |  |  |  |  |  |
Central banks exposure | 293,2 |  |  |  |  |  |  |  |  |
Trading book | 12,1 |  |  |  |  |  |  |  |  |
Total assets | 14.086,4 | 660,1 | 143,6 | - | 2,8 | 73,9 | 8,7 | 1,2 | - | 0,1
Off-balance sheet exposures – Undertakings subject to NFRD disclosure obligations | - | - | - | - | - | - | - | - | - | -
Financial guarantees | 121,7 | - | - | - | - | - | - | - | - | -
Assets under management | - | - | - | - | - | - | - | - | - | -
Of which debt securities | - | - | - | - | - | - | - | - | - | -
Of which equity instruments | - | - | - | - | - | - | - | - | - | -

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Million EUR | Total [gross] carrying amount | 31/12/2024 | 31/12/2024 | 31/12/2024
Water and marine resources (WTR) | Circular Economy (CE) | Pollution (PPC)
Of which towards taxonomy-relevant sectors (Taxonomy- eligible) | Of which towards taxonomy-relevant sectors (Taxonomy-eligible) | Of which towards taxonomy-relevant sectors (Taxonomy-eligible)
| Of which environmentally sustainable (Taxonomy-aligned) |  | Of which environmentally sustainable (Taxonomy-aligned) |  | Of which environmentally sustainable (Taxonomy-aligned)
|  | Of which transitional | Of whichenabling |  |  | Of which transitional | Of whichenabling |  |  | Of which transitional | Of whichenabling
GAR - Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 3.522,7 | 3,4 | 2,9 | - | 0,0 | 3,3 | 0,0 | - | - | 0,4 | 0,0 | - | -
Financial undetakings | 818,3 | 0,0 | - | - | - | 1,3 | - | - | - | 0,0 | - | - | -
Credit institutions | 642,5 | 0,0 | - | - | - | 0,1 | - | - | - | - | - | - | -
Loans and advances | 73,2 | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | 557,3 | 0,0 | - | - | - | 0,1 | - | - | - | - | - | - | -
Equity instruments | 12,0 | 0,0 | - |  | - | 0,0 | - |  | - | - | - |  | -
Other financial corporations | 175,8 | 0,0 | - | - | - | 1,2 | - | - | - | 0,0 | - | - | -
of which investment firms | - | - | - | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - | - |  | - | - | - |  | - | - | - |  | -
of which management companies | - | - | - | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - | - |  | - | - | - |  | - | - | - |  | -
of which insurance undertakings | 3,6 | - | - | - | - | - | - | - | - | - | - | - | -
Loans and advances | 1,9 | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | - | - | - | -
Equity instruments | 1,7 | - | - |  | - | - | - |  | - | - | - |  | -
Non-financial undertakings | 577,5 | 3,4 | 2,9 | - | 0,0 | 2,0 | 0,0 | - | - | 0,4 | 0,0 | - | -
Loans and advances | 443,8 | 3,4 | 2,9 | - | 0,0 | 0,3 | 0,0 | - | - | 0,3 | 0,0 | - | -
Debt securities, including UoP | 76,3 | - | - | - | - | 1,5 | 0,0 | - | - | - | - | - | -
Equity instruments | 57,3 | 0,0 | - |  | - | 0,2 | - |  | - | 0,0 | - |  | -
Households | 2.126,9 |  |  |  |  | - | - | - | - |  |  |  |
of which loans collateralised by residential immovable property | 118,5 |  |  |  |  | - | - | - | - |  |  |  |
of which building renovation loans | - |  |  |  |  | - | - | - | - |  |  |  |
of which motor vehicles loans | 53,3 |  |  |  |  |  |  |  |  |  |  |  |
Local government financing | - | - | - | - | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | - | - | - | - | -
Assets excluded from the numerator for GAR calculation (covered in the denominator) | 7.913,5 | - | - | - | - | - | - | - | - | - | - | - | -
Financial and Non-financial companies | 5.707,6 |  |  |  |  |  |  |  |  |  |  |  |
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations | 5.553,6 |  |  |  |  |  |  |  |  |  |  |  |
Loans and advances | 5.421,1 |  |  |  |  |  |  |  |  |  |  |  |
of which loans collateralised by commercial immovable property | 185,9 |  |  |  |  |  |  |  |  |  |  |  |
of which building renovation loans | - |  |  |  |  |  |  |  |  |  |  |  |
Debt securities | 35,5 |  |  |  |  |  |  |  |  |  |  |  |
Equity instruments | 97,0 |  |  |  |  |  |  |  |  |  |  |  |
Non-EU country counterparties not subject to NFRD disclosure obligations | 154,1 |  |  |  |  |  |  |  |  |  |  |  |
Loans and advances | 150,6 |  |  |  |  |  |  |  |  |  |  |  |
Debt securities | 1,0 |  |  |  |  |  |  |  |  |  |  |  |
Equity instruments | 2,4 |  |  |  |  |  |  |  |  |  |  |  |
Derivatives | 7,4 |  |  |  |  |  |  |  |  |  |  |  |
On demand interbank loans | 279,9 |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash-related assets | 0,0 |  |  |  |  |  |  |  |  |  |  |  |
Other categories of assets (e.g. goodwill, commodities, etc.) | 1.918,6 |  |  |  |  |  |  |  |  |  |  |  |
Total GAR assets | 11.436,2 | 3,4 | 2,9 | - | 0,0 | 3,3 | 0,0 | - | - | 0,4 | 0,0 | - | -
Assets not covered for GAR calculation | 2.650,2 |  |  |  |  |  |  |  |  |  |  |  |
Central governments and Supranational issuers | 2.345,0 |  |  |  |  |  |  |  |  |  |  |  |
Central banks exposure | 293,2 |  |  |  |  |  |  |  |  |  |  |  |
Trading book | 12,1 |  |  |  |  |  |  |  |  |  |  |  |
Total assets | 14.086,4 | 3,4 | 2,9 | - | 0,0 | 3,3 | 0,0 | - | - | 0,4 | 0,0 | - | -
Off-balance sheet exposures – Undertakings subject to NFRD disclosure obligations | - | - | - | - | - | - | - | - | - | - | - | - | -
Financial guarantees | 121,7 | - | - | - | - | - | - | - | - | - | - | - | -
Assets under management | - | - | - | - | - | - | - | - | - | - | - | - | -
Of which debt securities | - | - | - | - | - | - | - | - | - | - | - | - | -
Of which equity instruments | - | - | - | - | - | - | - | - | - | - | - | - | -

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Million EUR | Total [gross] carrying amount | 31/12/2024 | 31/12/2024
Biodiversity and ecosystems (BIO) | TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Of which towards taxonomy-relevant sectors (Taxonomy-eligible) | Of which towards taxonomy-relevant sectors (Taxonomy-eligible)
| Of which environmentally sustainable (Taxonomy-aligned) |  | Of which environmentally sustainable (Taxonomy-aligned)
|  | Of which transitional | Of whichenabling |  |  | Of which use of proceeds | Of which transitional | Of whichenabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 3.522,7 | 0,4 | - | - | - | 676,3 | 147,8 | - | 2,8 | 74,0
Financial undertakings | 818,3 | 0,0 | - | - | - | 231,4 | 31,6 | - | 0,9 | 20,9
Credit institutions | 642,5 | - | - | - | - | 141,9 | 11,4 | - | 0,9 | 2,5
Loans and advances | 73,2 | - | - | - | - | 11,6 | 1,1 | - | 0,3 | 0,3
Debt securities, including UoP | 557,3 | - | - | - | - | 127,4 | 9,9 | - | 0,6 | 2,0
Equity instruments | 12,0 | - | - |  | - | 3,0 | 0,4 |  | 0,0 | 0,1
Other financial corporations | 175,8 | 0,0 | - | - | - | 89,4 | 20,2 | - | 0,0 | 18,4
of which investment firms | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - | - |  | - | - | - |  | - | -
of which management companies | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - | - |  | - | - | - |  | - | -
of which insurance undertakings | 3,6 | - | - | - | - | 1,4 | 0,2 | - | - | -
Loans and advances | 1,9 | - | - | - | - | 0,9 | 0,1 | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | 1,7 | - | - |  | - | 0,5 | 0,1 |  | - | -
Non-financial undertakings | 577,5 | 0,4 | - | - | - | 273,2 | 104,6 | - | 1,8 | 53,1
Loans and advances | 443,8 | 0,4 | - | - | - | 213,9 | 75,9 | - | 1,1 | 45,7
Debt securities, including UoP | 76,3 | - | - | - | - | 37,1 | 14,8 | - | 0,2 | 4,4
Equity instruments | 57,3 | 0,0 | - |  | - | 22,3 | 14,0 |  | 0,6 | 3,0
Households | 2.126,9 |  |  |  |  | 171,7 | 11,6 | - | - | -
of which loans collateralised by residential immovable property | 118,5 |  |  |  |  | 118,5 | 11,6 | - | - | -
of which building renovation loans | - |  |  |  |  | - | - | - | - | -
of which motor vehicles loans | 53,3 |  |  |  |  | 53,3 | - | - | - | -
Local government financing | - | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | - | -
Assets excluded from the numerator for GAR calculation (covered in the denominator) | 7.913,5 | - | - | - | - | - | - | - | - | -
Financial and Non-financial undertakings | 5.707,6 |  |  |  |  |  |  |  |  |
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations | 5.553,6 |  |  |  |  |  |  |  |  |
Loans and advances | 5.421,1 |  |  |  |  |  |  |  |  |
of which loans collateralised by commercial immovable property | 185,9 |  |  |  |  |  |  |  |  |
of which building renovation loans | - |  |  |  |  |  |  |  |  |
Debt securities | 35,5 |  |  |  |  |  |  |  |  |
Equity instruments | 97,0 |  |  |  |  |  |  |  |  |
Non-EU country counterparties not subject to NFRD disclosure obligations | 154,1 |  |  |  |  |  |  |  |  |
Loans and advances | 150,6 |  |  |  |  |  |  |  |  |
Debt securities | 1,0 |  |  |  |  |  |  |  |  |
Equity instruments | 2,4 |  |  |  |  |  |  |  |  |
Derivatives | 7,4 |  |  |  |  |  |  |  |  |
On demand interbank loans | 279,9 |  |  |  |  |  |  |  |  |
Cash and cash-related assets | 0,0 |  |  |  |  |  |  |  |  |
Other categories of assets (e.g. goodwill, commodities, etc.) | 1.918,6 |  |  |  |  |  |  |  |  |
Total GAR assets | 11.436,2 | 0,4 | - | - | - | 676,3 | 147,8 | - | 2,8 | 74,0
Assets not covered for GAR calculation | 2.650,2 |  |  |  |  |  |  |  |  |
Central governments and Supranational issuers | 2.345,0 |  |  |  |  |  |  |  |  |
Central banks exposure | 293,2 |  |  |  |  |  |  |  |  |
Trading book | 12,1 |  |  |  |  |  |  |  |  |
Total assets | 14.086,4 | 0,4 | - | - | - | 676,3 | 147,8 | - | 2,8 | 74,0
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations | - | - | - | - | - | - | - | - | - | -
Financial guarantees | 121,7 | - | - | - | - | - | - | - | - | -
Assets under management | - | - | - | - | - | - | - | - | - | -
Of which debt securities | - | - | - | - | - | - | - | - | - | -
Of which equity instruments | - | - | - | - | - | - | - | - | - | -

272
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Template 1. Assets for the calculation of GAR - Capex based [FY 2023]

Million EUR | Total [gross] carrying amount | 31/12/2023 | 31/12/2023
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Of which towards taxonomy-relevant sectors (taxonomy eligible) | Of which towards taxonomy-relevant sectors (taxonomy eligible)
| Of which environmentally sustainable (taxonomy aligned) |  | Of which environmentally sustainable (taxonomy aligned)
|  | Of which use of proceeds | Of which transitional | Of which enabling |  |  | Of which use of proceeds | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 3.451,6 | 573,3 | 70,2 | - | 0,6 | 34,8 | 10,0 | 4,9 | - | 0,00
Financial undertakings | 730,5 | 185,5 | 2,0 | - | 0,1 | 1,0 | 2,8 | - | - | -
Credit institutions | 629,3 | 173,3 | - | - | - | - | - | - | - | -
Loans and advances | 8,0 | 2,6 | - | - | - | - | - | - | - | -
Debt securities, including UoP | 619,5 | 169,8 | - | - | - | - | - | - | - | -
Equity instruments | 1,8 | 0,9 | - |  | - | - | - | - |  | -
Other financial corporations | 101,2 | 12,2 | 2,0 | - | 0,1 | 1,0 | 2,8 | - | - | -
of which investment firms | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - | - |  | - | - | - | - |  | -
of which management companies | 1,2 | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | 1,2 | - | - |  | - | - | - | - |  | -
of which insurance undertakings | 4,1 | 0,7 | - | - | - | - | - | - | - | -
Loans and advances | 0,2 | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | 3,9 | 0,7 | - |  | - | - | - | - |  | -
Non-financial undertakings | 494,5 | 164,0 | 58,1 | - | 0,5 | 33,8 | 7,2 | 4,9 | - | 0,0
Loans and advances | 355,6 | 124,3 | 40,3 | - | 0,2 | 28,7 | 1,5 | 0,2 | - | 0,0
Debt securities, including UoP | 105,6 | 28,5 | 9,9 | - | 0,2 | 1,1 | 5,1 | 4,7 | - | -
Equity instruments | 33,3 | 11,3 | 7,8 |  | 0,2 | 4,1 | 0,6 |  |  | -
Households | 2.226,5 | 223,7 | 10,1 | - | - | - | - | - | - | -
of which loans collateralised by residential immovable property | 162,1 | 162,1 | 10,1 | - | - | - | - | - | - | -
of which building renovation loans | - | - | - | - | - | - | - | - | - | -
of which motor vehicles loans | 61,6 | 61,6 | - | - | - |  |  |  |  |
Local government financing | - | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties properties | - | - | - | - | - | - | - | - | - | -
Assets excluded from the numerator for GAR calculation (covered in the denominator) | 7.854,7 |  |  |  |  |  |  |  |  |
Financial and Non-financial undertakings | 5.601,1 |  |  |  |  |  |  |  |  |
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations | 5.500,3 |  |  |  |  |  |  |  |  |
Loans and advances | 5.394,1 |  |  |  |  |  |  |  |  |
of which loans collateralised by commercial immovable property | 268,7 |  |  |  |  |  |  |  |  |
of which building renovation loans | - |  |  |  |  |  |  |  |  |
Debt securities | 38,3 |  |  |  |  |  |  |  |  |
Equity instruments | 67,9 |  |  |  |  |  |  |  |  |
Non-EU country counterparties not subject to NFRD disclosure obligations | 100,7 |  |  |  |  |  |  |  |  |
Loans and advances | 100,7 |  |  |  |  |  |  |  |  |
Debt securities | - |  |  |  |  |  |  |  |  |
Equity instruments | 0,0 |  |  |  |  |  |  |  |  |
Derivatives | - |  |  |  |  |  |  |  |  |
On demand interbank loans | 343,3 |  |  |  |  |  |  |  |  |
Cash and cash-related assets | 0,0 |  |  |  |  |  |  |  |  |
Other categories of assets (e.g. goodwill, commodities, etc.) | 1.910,3 |  |  |  |  |  |  |  |  |
Total GAR assets | 11.306,3 | 573,3 | 70,2 | - | 0,6 | 34,8 | 10,0 | 4,9 | - | 0,0
Assets not covered for GAR calculation | 3.020,7 |  |  |  |  |  |  |  |  |
Central governments and Supranational issuers | 2.467,2 |  |  |  |  |  |  |  |  |
Central banks exposure | 540,6 |  |  |  |  |  |  |  |  |
Trading book | 12,9 |  |  |  |  |  |  |  |  |
Total assets | 14.327,0 | 573,3 | 70,2 | - | 0,6 | 34,8 | 10,0 | 4,9 | - | 0,0
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations | - | - | - | - | - | - | - | - | - | -
Financial guarantees | 212,2 | - | - | - | - | - | - | - | - | -
Assets under management | - | - | - | - | - | - | - | - | - | -
Of which debt securities | - | - | - | - | - | - | - | - | - | -
Of which equity instruments | - | - | - | - | - | - | - | - | - | -

273
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

Million EUR | Total [gross] carrying amount | 31/12/2023
TOTAL (CCM + CCA)
Of which towards taxonomy-relevant sectors (taxonomy eligible)
| Of which environmentally sustainable (taxonomy aligned)
|  | Of which use of proceeds | Of which transitional | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not held for trading eligible for GAR calculation | 3.451,6 | 583,3 | 75,1 | - | 0,6 | 34,8
Financial undertakings | 730,5 | 188,3 | 2,0 | - | 0,1 | 1,0
Credit institutions | 629,3 | 173,3 | - | - | - | -
Loans and advances | 8,0 | 2,6 | - | - | - | -
Debt securities, including UoP | 619,5 | 169,8 | - | - | - | -
Equity instruments | 1,8 | 0,9 | - |  | - | -
Other financial corporations | 101,2 | 15,0 | 2,0 |  | 0,1 | 1,0
of which investment firms | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | -
Equity instruments | - | - | - |  | - | -
of which management companies | 1,2 | - | - |  | - | -
Loans and advances | - | - | - |  | - | -
Debt securities, including UoP | - | - | - |  | - | -
Equity instruments | 1,2 | - | - |  | - | -
of which insurance undertakings | 4,1 | 0,7 | - | - | - | -
Loans and advances | 0,2 | 0,0 | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | -
Equity instruments | 3,9 | 0,7 | - |  | - | -
Non-financial undertakings | 494,5 | 171,2 | 63,0 | - | 0,5 | 33,8
Loans and advances | 355,6 | 125,8 | 40,5 | - | 0,2 | 28,7
Debt securities, including UoP | 105,6 | 33,6 | 14,7 | - | 0,2 | 1,1
Equity instruments | 33,3 | 11,9 | 7,8 |  | 0,2 | 4,1
Households | 2.226,5 | 223,7 | 10,1 | - | - | -
of which loans collateralised by residential immovable property | 162,1 | 162,1 | 10,1 | - | - | -
of which building renovation loans | - | - | - | - | - | -
of which motor vehicles loans | 61,6 | 61,6 | - | - | - | -
Local government financing | - | - | - | - | - | -
Housing financing | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | -
Assets excluded from the numerator for GAR calculation (covered in the denominator) | 7.854,7 | - | - | - | - | -
Financial and Non-financial undertakings | 5.601,1 |  |  |  |  |
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations | 5.500,3 |  |  |  |  |
Loans and advances | 5.394,1 |  |  |  |  |
of which loans collateralised by commercial immovable property | 268,7 |  |  |  |  |
of which building renovation loans | - |  |  |  |  |
Debt securities | 38,3 |  |  |  |  |
Equity instruments | 67,9 |  |  |  |  |
Non-EU country counterparties not subject to NFRD disclosure obligations | 100,7 |  |  |  |  |
Loans and advances | 100,7 |  |  |  |  |
Debt securities | - |  |  |  |  |
Equity instruments | 0,0 |  |  |  |  |
Derivatives | - |  |  |  |  |
On demand interbank loans | 343,3 |  |  |  |  |
Cash and cash-related assets | 0,0 |  |  |  |  |
Other categories of assets (e.g. goodwill, commodities, etc.) | 1.910,3 |  |  |  |  |
Total GAR assets | 11.306,3 | 583,3 | 75,1 | - | 0,6 | 34,8
Assets not covered for GAR calculation | 3.020,7 |  |  |  |  |
Central governments and Supranational issuers | 2.467,2 |  |  |  |  |
Central banks exposure | 540,6 |  |  |  |  |
Trading book | 12,9 |  |  |  |  |
Total assets | 14.327,0 | 583,3 | 75,1 | - | 0,6 | 34,8
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations | - | - | - | - | - | -
Financial guarantees | 212,2 | - | - | - | - | -
Assets under management | - | - | - | - | - | -
Of which debt securities | - | - | - | - | - | -
Of which equity instruments | - | - | - | - | - | -

274
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Template 1. Assets for the calculation of GAR - Turnover based [FY 2024]

Million EUR | Total [gross] carrying amount | 31/12/2024 | 31/12/2024
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Of which towards taxonomy-relevant sectors (taxonomy eligible) | Of which towards taxonomy-relevant sectors (taxonomy eligible)
| Of which environmentally sustainable (taxonomy aligned) |  | Of which environmentally sustainable (taxonomy aligned)
|  | Of which use of proceeds | Of which transitional | Of which enabling |  |  | Of which use of proceeds | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HtF eligible for GAR calculation | 3.522,7 | 647,6 | 98,8 | - | 1,9 | 21,2 | 2,5 | 0,3 | - | 0,1
Financial undertakings | 818,3 | 210,3 | 13,7 | - | 0,9 | 5,0 | 1,8 | 0,3 | - | 0,0
Credit institutions | 642,5 | 139,6 | 9,1 | - | 0,8 | 1,4 | 0,3 | 0,1 | - | 0,0
Loans and advances | 73,2 | 11,1 | 0,7 | - | 0,2 | 0,2 | 0,0 | 0,0 | - | -
Debt securities, including UoP | 557,3 | 125,6 | 8,1 | - | 0,7 | 1,1 | 0,3 | 0,0 | - | 0,0
Equity instruments | 12,0 | 2,9 | 0,3 |  | 0,0 | 0,1 | 0,0 | 0,0 |  | 0,0
Other financial corporations | 175,8 | 70,6 | 4,7 | - | 0,0 | 3,6 | 1,5 | 0,2 | - | -
of which investment firms | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - | - |  | - | - | - | - |  | -
of which management companies | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - | - |  | - | - | - | - |  | -
of which insurance undertakings | 3,6 | 0,8 | 0,1 | - | - | - | 0,6 | 0,1 | - | -
Loans and advances | 1,9 | 0,5 | 0,1 | - | - | - | 0,4 | 0,0 | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | 1,7 | 0,3 | 0,1 |  | - | - | 0,2 | 0,1 |  | -
Non-financial undertakings | 577,5 | 265,6 | 73,5 | - | 1,0 | 16,2 | 0,7 | 0,0 | - | 0,0
Loans and advances | 443,8 | 226,0 | 59,4 | - | 0,6 | 13,4 | 0,1 | 0,0 | - | 0,0
Debt securities, including UoP | 76,3 | 30,2 | 10,4 | - | 0,1 | 1,6 | 0,6 | 0,0 | - | 0,0
Equity instruments | 57,3 | 9,4 | 3,8 |  | 0,3 | 1,2 | 0,0 | 0,0 |  | 0,0
Households | 2.126,9 | 171,7 | 11,6 | - | - | - | - | - | - | -
of which loans collateralised by residential immovable property | 118,5 | 118,5 | 11,6 | - | - | - | - | - | - | -
of which building renovation loans | - | - | - | - | - | - | - | - | - | -
of which motor vehicles loans | 53,3 | 53,3 | - | - | - |  |  |  |  |
Local government financing | - | - | - | - | - |  |  |  |  |
Housing financing | - | - | - | - | - | - | - | - | - | -
Other local govemment financinf | - | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | - | -
Assets excluded from the numerator for GAR calculation (covered in the denominator) | 7.913,5 | - | - | - | - | - | - | - | - | -
Financial and Non-financial undertakings | 5.707,6 |  |  |  |  |  |  |  |  |
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations | 5.553,6 |  |  |  |  |  |  |  |  |
Loans and advances | 5.421,1 |  |  |  |  |  |  |  |  |
of which loans collateralised by commercial immovable property | 185,9 |  |  |  |  |  |  |  |  |
of which building renovation loans | - |  |  |  |  |  |  |  |  |
Debt securities | 35,5 |  |  |  |  |  |  |  |  |
Equity instruments | 97,0 |  |  |  |  |  |  |  |  |
Non-EU country counterparties not subject to NFRD disclosure obligations | 154,1 |  |  |  |  |  |  |  |  |
Loans and advances | 150,6 |  |  |  |  |  |  |  |  |
Debt securities | 1,0 |  |  |  |  |  |  |  |  |
Equity instruments | 2,4 |  |  |  |  |  |  |  |  |
Derivatives | 7,4 |  |  |  |  |  |  |  |  |
On demand interbank loans | 279,9 |  |  |  |  |  |  |  |  |
Cash and cash-related assets | 0,0 |  |  |  |  |  |  |  |  |
Other assets (e.g. goodwill, commodities, etc.) | 1.918,6 |  |  |  |  |  |  |  |  |
Total GAR assets | 11.436,2 | 647,6 | 98,8 | - | 1,9 | 21,2 | 2,5 | 0,3 | - | 0,1
Assets not covered for GAR calculation | 2.650,2 |  |  |  |  |  |  |  |  |
Central governments and Supranational issuers | 2.345,0 |  |  |  |  |  |  |  |  |
Central banks exposure | 293,2 |  |  |  |  |  |  |  |  |
Trading book | 12,1 |  |  |  |  |  |  |  |  |
Total assets | 14.086,4 | 647,6 | 98,8 | - | 1,9 | 21,2 | 2,5 | 0,3 | - | 0,1
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations | - | - | - | - | - | - | - | - | - | -
Financial guarantees | 121,7 | - | - | - | - | - | - | - | - | -
Assets under management | - | - | - | - | - | - | - | - | - | -
Of which debt securities | - | - | - | - | - | - | - | - | - | -
Of which equity instruments | - | - | - | - | - | - | - | - | - | -

275
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

Million EUR | Total [gross] carrying amount | 31/12/2024 | 31/12/2024 | 31/12/2024
Water and marine resources (WTR) | Circular Economy (CE) | Pollution (PPC)
Of which towards taxonomy-relevant sectors (taxonomy eligible) | Of which towards taxonomy-relevant sectors (taxonomy eligible) | Of which towards taxonomy-relevant sectors (taxonomy eligible)
| Of which environmentally sustainable (taxonomy aligned) |  | Of which environmentally sustainable (taxonomy aligned) |  | Of which environmentally sustainable (taxonomy aligned)
|  | Of which transitional | Of which enabling |  |  | Of which transitional | Of which enabling |  |  | Of which transitional | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HtF eligible for GAR calculation | 3.522,7 | 1,9 | 1,6 | - | 0,0 | 3,2 | 0,0 | - | - | 0,6 | 0,0 | - | -
Financial undertakings | 818,3 | 0,0 | - | - | - | 1,3 | 0,0 | - | - | 0,0 | - | - | -
Credit institutions | 642,5 | 0,0 | - | - | - | 0,1 | - | - | - | 0,0 | - | - | -
Loans and advances | 73,2 | - | - | - | - | - | - | - | - | 0,0 | - | - | -
Debt securities, including UoP | 557,3 | 0,0 | - | - | - | 0,1 | - | - | - | 0,0 | - | - | -
Equity instruments | 12,0 | 0,0 | - |  | - | 0,0 | - |  | - | 0,0 | - |  | -
Other financial corporations | 175,8 | 0,0 | - | - | - | 1,2 | 0,0 | - | - | 0,0 | - | - | -
of which investment firms | - | - | - | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - | - |  | - | - | - |  | - | - | - |  | -
of which management companies | - | - | - | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - | - |  | - | - | - |  | - | - | - |  | -
of which insurance undertakings | 3,6 | - | - | - | - | - | - | - | - | - | - | - | -
Loans and advances | 1,9 | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | - | - | - | -
Equity instruments | 1,7 | - | - |  | - | - | - |  | - | - | - |  | -
Non-financial undertakings | 577,5 | 1,9 | 1,6 | - | 0,0 | 1,9 | 0,0 | - | - | 0,5 | 0,0 | - | -
Loans and advances | 443,8 | 1,9 | 1,6 | - | 0,0 | 0,4 | 0,0 | - | - | 0,5 | 0,0 | - | -
Debt securities, including UoP | 76,3 | 0,0 | - | - | - | 1,3 | 0,0 | - | - | 0,0 | - | - | -
Equity instruments | 57,3 | - | - |  | - | 0,1 | - |  | - | 0,0 | - |  | -
Households | 2.126,9 |  |  |  |  | - | - | - | - |  |  |  |
of which loans collateralised by residential immovable property | 118,5 |  |  |  |  | - | - | - | - |  |  |  |
of which building renovation loans | - |  |  |  |  | - | - | - | - |  |  |  |
of which motor vehicles loans | 53,3 |  |  |  |  |  |  |  |  |  |  |  |
Local government financing | - | - | - | - | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | - | - | - | - | -
Assets excluded from the numerator for GAR calculation (covered in the denominator) | 7.913,5 | - | - | - | - | - | - | - | - | - | - | - | -
Financial and Non-financial undertakings | 5.707,6 |  |  |  |  |  |  |  |  |  |  |  |
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations | 5.553,6 |  |  |  |  |  |  |  |  |  |  |  |
Loans and advances | 5.421,1 |  |  |  |  |  |  |  |  |  |  |  |
of which loans collateralised by commercial immovable property | 185,9 |  |  |  |  |  |  |  |  |  |  |  |
of which building renovation loans | - |  |  |  |  |  |  |  |  |  |  |  |
Debt securities | 35,5 |  |  |  |  |  |  |  |  |  |  |  |
Equity instruments | 97,0 |  |  |  |  |  |  |  |  |  |  |  |
Non-EU country counterparties not subject to NFRD disclosure obligations | 154,1 |  |  |  |  |  |  |  |  |  |  |  |
Loans and advances | 150,6 |  |  |  |  |  |  |  |  |  |  |  |
Debt securities, | 1,0 |  |  |  |  |  |  |  |  |  |  |  |
Equity instruments | 2,4 |  |  |  |  |  |  |  |  |  |  |  |
Derivatives | 7,4 |  |  |  |  |  |  |  |  |  |  |  |
On demand interbank loans | 279,9 |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash-related assets | 0,0 |  |  |  |  |  |  |  |  |  |  |  |
Other assets (e.g. goodwill, commodities, etc.) | 1.918,6 |  |  |  |  |  |  |  |  |  |  |  |
Total GAR assets | 11.436,2 | 1,9 | 1,6 | - | 0,0 | 3,2 | 0,0 | - | - | 0,6 | 0,0 | - | -
Assets not covered for GAR calculation | 2.650,2 |  |  |  |  |  |  |  |  |  |  |  |
Central governments and Supranational issuers | 2.345,0 |  |  |  |  |  |  |  |  |  |  |  |
Central banks exposure | 293,2 |  |  |  |  |  |  |  |  |  |  |  |
Trading book | 12,1 |  |  |  |  |  |  |  |  |  |  |  |
Total assets | 14.086,4 | 1,9 | 1,6 | - | 0,0 | 3,2 | 0,0 | - | - | 0,6 | 0,0 | - | -
Off-balance sheet exposures – Undertakings subject to NFRD disclosure obligations | - | - | - | - | - | - | - | - | - | - | - | - | -
Financial guarantees | 121,7 | - | - | - | - | - | - | - | - | - | - | - | -
Assets under management | - | - | - | - | - | - | - | - | - | - | - | - | -
Of which debt securities | - | - | - | - | - | - | - | - | - | - | - | - | -
Of which equity instruments | - | - | - | - | - | - | - | - | - | - | - | - | -

276
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

Million EUR | Total [gross] carrying amount | 31/12/2024 | 31/12/2024
Biodiversity and ecosystems (BIO) | TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Of which towards taxonomy-relevant sectors (taxonomy eligible) | Of which towards taxonomy-relevant sectors (taxonomy eligible)
| Of which environmentally sustainable (taxonomy aligned) |  | Of which environmentally sustainable (taxonomy aligned)
|  | Of which transitional | Of which enabling |  |  | Of which use of proceeds | Of which transitional | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not Hft eligible for GAR calculation | 3.522,7 | 0,1 | - | - | - | 655,8 | 100,7 | - | 1,9 | 21,3
Financial undertakings | 818,3 | 0,0 | - | - | - | 213,4 | 14,0 | - | 0,9 | 5,0
Credit institutions | 642,5 | - | - | - | - | 140,1 | 9,1 | - | 0,8 | 1,4
Loans and advances | 73,2 | - | - | - | - | 11,1 | 0,7 | - | 0,2 | 0,2
Debt securities, including UoP | 557,3 | - | - | - | - | 126,0 | 8,2 | - | 0,7 | 1,1
Equity instruments | 12,0 | - | - |  | - | 2,9 | 0,3 |  | 0,0 | 0,1
Other financial corporations | 175,8 | 0,0 | - | - | - | 73,4 | 4,9 | - | 0,0 | 3,6
of which investment firms | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - | - |  | - | - | - |  | - | -
of which management companies | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - | - |  | - | - | - |  | - | -
of which insurance undertakings | 3,6 | - | - | - | - | 1,4 | 0,2 | - | - | -
Loans and advances | 1,9 | - | - | - | - | 0,9 | 0,1 | - | - | -
Debt securities, including Up | - | - | - | - | - | - | - | - | - | -
Equity instruments | 1,7 | - | - |  | - | 0,5 | 0,1 |  | - | -
Non-financial undertakings | 577,5 | 0,1 | - | - | - | 270,7 | 75,2 | - | 1,0 | 16,2
Loans and advances | 443,8 | 0,0 | - | - | - | 228,9 | 61,0 | - | 0,6 | 13,4
Debt securities, including UoP | 76,3 | - | - | - | - | 32,1 | 10,4 | - | 0,1 | 1,6
Equity instruments | 57,3 | 0,0 | - |  | - | 9,6 | 3,8 |  | 0,3 | 1,2
Households | 2.126,9 |  |  |  |  | 171,7 | 11,6 | - | - | -
of which loans collateralised by residential immovable property | 118,5 |  |  |  |  | 118,5 | 11,6 | - | - | -
of which building renovation loans | - |  |  |  |  | - | - | - | - | -
of which motor vehicles loans | 53,3 |  |  |  |  | 53,3 | - | - | - | -
Local government financing | - | - | - | - | - | - | - | - | - | -
Housing fnancing | - | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | - | -
Assets excluded from the numerator for GAR calculation (covered in the denominator) | 7.913,5 | - | - | - | - | - | - | - | - | -
Financial and Non-financial undertakings | 5.707,6 |  |  |  |  |  |  |  |  |
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations | 5.553,6 |  |  |  |  |  |  |  |  |
Loans and advances | 5.421,1 |  |  |  |  |  |  |  |  |
of which loans collateralised by commercial immovable property | 185,9 |  |  |  |  |  |  |  |  |
of which building renovation loans | - |  |  |  |  |  |  |  |  |
Debt securities | 35,5 |  |  |  |  |  |  |  |  |
Equity instruments | 97,0 |  |  |  |  |  |  |  |  |
Non-EU country counterparties not subject to NFRD reporting requirements | 154,1 |  |  |  |  |  |  |  |  |
Loans and advances | 150,6 |  |  |  |  |  |  |  |  |
Debt securities | 1,0 |  |  |  |  |  |  |  |  |
Equity instruments | 2,4 |  |  |  |  |  |  |  |  |
Derivatives | 7,4 |  |  |  |  |  |  |  |  |
On demand interbank loans | 279,9 |  |  |  |  |  |  |  |  |
Cash and cash-related assets | 0,0 |  |  |  |  |  |  |  |  |
Other assets (e.g. goodwill, commodities, etc.) | 1.918,6 |  |  |  |  |  |  |  |  |
Total GAR assets | 11.436,2 | 0,1 | - | - | - | 655,8 | 100,7 | - | 1,9 | 21,3
Assets not covered for GAR calculation | 2.650,2 |  |  |  |  |  |  |  |  |
Central governments and Supranational issuers | 2.345,0 |  |  |  |  |  |  |  |  |
Central banks exposure | 293,2 |  |  |  |  |  |  |  |  |
Trading book | 12,1 |  |  |  |  |  |  |  |  |
Total assets | 14.086,4 | 0,1 | - | - | - | 655,8 | 100,7 | - | 1,9 | 21,3
Off-balance sheet exposures – Undertakings subject to NFRD disclosure obligations | - | - | - | - | - | - | - | - | - | -
Financial guarantees | 121,7 | - | - | - | - | - | - | - | - | -
Assets under management | - | - | - | - | - | - | - | - | - | -
Of which debt securities | - | - | - | - | - | - | - | - | - | -
Of which equity instruments | - | - | - | - | - | - | - | - | - | -

277
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Template 1. Assets for the calculation of GAR - Turnover based [FY 2023]

Million EUR | Total [gross] carrying amount | 31/12/2023 | 31/12/2023
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Of which towards taxonomy-relevant sectors (taxonomy eligible) | Of which towards taxonomy-relevant sectors (taxonomy eligible)
| Of which environmentally sustainable (taxonomy aligned) |  | Of which environmentally sustainable (taxonomy aligned)
|  | Of which use of proceeds | Of which transitional | Of which enabling |  |  | Of which use of proceeds | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 3.451,6 | 554,6 | 38,5 | - | 0,4 | 12,0 | 5,9 | 0,0 | - | -
Financial undertakings | 730,5 | 181,7 | 1,0 | - | - | 0,7 | 2,7 | - | - | -
Credit institutions | 629,3 | 171,3 | - | - | - | - | - | - | - | -
Loans and advances | 8,0 | 2,3 | - | - | - | - | - | - | - | -
Debt securities, including UoP | 619,5 | 168,1 | - | - | - | - | - | - | - | -
Equity instruments | 1,8 | 0,9 | - |  | - | - | - | - |  | -
Other financial corporations | 101,2 | 10,5 | 1,0 | - | - | 0,7 | 2,7 | - | - | -
of which investment firms | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - | - |  | - | - | - | - |  | -
of which management companies | 1,2 | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | 1,2 | - | - |  | - | - | - | - |  | -
of which insurance undertakings | 4,1 | 0,7 | - | - | - | - | 0,0 | - | - | -
Loans and advances | 0,2 | - | - | - | - | - | 0,0 | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | 3,9 | 0,7 | - |  | - | - | - | - |  | -
Non-financial companies undertakings | 494,5 | 149,2 | 27,4 | - | 0,4 | 11,3 | 3,2 | 0,0 | - | -
Loans and advances | 355,6 | 115,2 | 16,6 | - | 0,3 | 8,5 | 1,7 | 0,0 | - | -
Debt securities, including UoP | 105,6 | 25,9 | 7,5 | - | 0,1 | 0,4 | 1,4 | 0,0 | - | -
Equity instruments | 33,3 | 8,1 | 3,4 |  | 0,1 | 2,3 | 0,0 | - |  | -
Households | 2.226,5 | 223,7 | 10,1 | - | - | - | - | - | - | -
of which loans collateralised by residential immovable property | 162,1 | 162,1 | 10,1 | - | - | - | - | - | - | -
of which building renovation loans | - | - | - | - | - | - | - | - | - | -
of which motor vehicles loans | 61,6 | 61,6 | - | - | - |  |  |  |  |
Local government financing | - | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | - | -
Assets excluded from the numerator for GAR calculation (covered in the denominator) | 7.854,7 |  |  |  |  |  |  |  |  |
Financial and Non-financial undertakings | 5.601,1 |  |  |  |  |  |  |  |  |
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations | 5.500,3 |  |  |  |  |  |  |  |  |
Loans and advances | 5.394,1 |  |  |  |  |  |  |  |  |
of which loans collateralised by commercial immovable property | 268,7 |  |  |  |  |  |  |  |  |
of which building renovation loans | - |  |  |  |  |  |  |  |  |
Debt securities | 38,3 |  |  |  |  |  |  |  |  |
Equity instruments | 67,9 |  |  |  |  |  |  |  |  |
Non-EU country counterparties not subject to NFRD disclosure obligations | 100,7 |  |  |  |  |  |  |  |  |
Loans and advances | 100,7 |  |  |  |  |  |  |  |  |
Debt securities | - |  |  |  |  |  |  |  |  |
Equity instruments | 0,0 |  |  |  |  |  |  |  |  |
Derivatives | - |  |  |  |  |  |  |  |  |
On demand interbank loans | 343,3 |  |  |  |  |  |  |  |  |
Cash and cash-related assets | 0,0 |  |  |  |  |  |  |  |  |
Other categories of assets (e.g. goodwill, ommodities, etc.) | 1.910,3 |  |  |  |  |  |  |  |  |
Total GAR assets | 11.306,3 | 554,6 | 38,5 | - | 0,4 | 12,0 | 5,9 | 0,0 | - | -
Assets not covered for GAR calculation | 3.020,7 |  |  |  |  |  |  |  |  |
Central governments and Supranational issuers | 2.467,2 |  |  |  |  |  |  |  |  |
Central banks exposure | 540,6 |  |  |  |  |  |  |  |  |
Trading book | 12,9 |  |  |  |  |  |  |  |  |
Total assets | 14.327,0 | 554,6 | 38,5 | - | 0,4 | 12,0 | 5,9 | 0,0 | - | -
Off-balance sheet exposures – Undertakings subject to NFRD disclosure requirements | - | - | - | - | - | - | - | - | - | -
Financial guarantees | 212,2 | - | - | - | - | - | - | - | - | -
Assets under management | - | - | - | - | - | - | - | - | - | -
Of which debt securities | - | - | - | - | - | - | - | - | - | -
Of which equity instruments | - | - | - | - | - | - | - | - | - | -

278
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

Million EUR | Total [gross] carrying amount | 31/12/2023
TOTAL (CCM + CCA)
Of which towards taxonomy-relevant sectors (taxonomy eligible)
| Of which environmentally sustainable (taxonomy aligned)
|  | Of which use of proceeds | Of which transitional | Of which enabling
GAR - Covered assets in both numerator and denominator |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 3.451,6 | 560,5 | 38,5 | - | 0,4 | 12,0
Financial undertakings | 730,5 | 184,4 | 1,0 | - | - | 0,7
Credit institutions | 629,3 | 171,3 | - | - | - | -
Loans and advances | 8,0 | 2,3 | - | - | - | -
Debt securities, including UoP | 619,5 | 168,1 | - | - | - | -
Equity instruments | 1,8 | 0,9 | - |  | - | -
Other financial corporations | 101,2 | 13,1 | 1,0 | - | - | 0,7
of which investment firmas | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | -
Equity instruments | - | - | - |  | - | -
of which management companies | 1,2 | - | - | - | - | -
Loans and advances | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | -
Equity instruments | 1,2 | - | - |  | - | -
of which insurance undertakings | 4,1 | 0,8 | - | - | - | -
Loans and advances | 0,2 | 0,0 | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | -
Equity instruments | 3,9 | 0,7 | - |  | - | -
Non-financial undertakings | 494,5 | 152,4 | 27,4 | - | 0,4 | 11,3
Loans and advances | 355,6 | 116,9 | 16,6 | - | 0,3 | 8,5
Debt securities, including UoP | 105,6 | 27,4 | 7,5 | - | 0,1 | 0,4
Equity instruments | 33,3 | 8,1 | 3,4 |  | 0,1 | 2,3
Households | 2.226,5 | 223,7 | 10,1 | - | - | -
of which loans collateralised by residential immovable property | 162,1 | 162,1 | 10,1 | - | - | -
of which building renovation loans | - | - | - | - | - | -
of which motor vehicles loans | 61,6 | 61,6 | - | - | - | -
Local government financing | - | - | - | - | - | -
Housing financing | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | -
Assets excluded from the numerator for GAR calculation (covered in the denominator) | 7.854,7 | - | - | - | - | -
Financial and Non-financial undertakings | 5.601,1 |  |  |  |  |
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations | 5.500,3 |  |  |  |  |
Loans and advances | 5.394,1 |  |  |  |  |
of which loans collateralised by commercial immovable property | 268,7 |  |  |  |  |
of which building renovation loans | - |  |  |  |  |
Debt securities | 38,3 |  |  |  |  |
Equity instruments | 67,9 |  |  |  |  |
Non-EU country counterparties not subject to NFRD disclosure obligations | 100,7 |  |  |  |  |
Loans and advances | 100,7 |  |  |  |  |
Debt securities | - |  |  |  |  |
Equity instruments | 0,0 |  |  |  |  |
Derivatives | - |  |  |  |  |
On demand interbank loans | 343,3 |  |  |  |  |
Cash and cash-related assets | 0,0 |  |  |  |  |
Other caregories assets (e.g. goodwill, commodities, etc.) | 1.910,3 |  |  |  |  |
Total GAR assets | 11.306,3 | 560,5 | 38,5 | - | 0,4 | 12,0
Assets not covered for GAR calculation | 3.020,7 |  |  |  |  |
Central governments and Supranational issuers | 2.467,2 |  |  |  |  |
Central banks exposure | 540,6 |  |  |  |  |
Trading book | 12,9 |  |  |  |  |
Total assets | 14.327,0 | 560,5 | 38,5 | - | 0,4 | 12,0
Off-balance sheet exposures – Undertakings subject to NFRD disclosure obligations | - | - | - | - | - | -
Financial guarantees | 212,2 | - | - | - | - | -
Assets under management | - | - | - | - | - | -
Of which debt securities | - | - | - | - | - | -
Of which equity instruments | - | - | - | - | - | -

279
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Template 2. GAR Sector Information - Capex based [FY 2024]

Breakdown by sector – NACE 4 digits level (code and label) | 31/12/2024 | 31/12/2024
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Non-financial corporates (subject to NFRD) | SMEs and other NFCs not subject to NFRD | Non-financial corporates (subject to NFRD) | SMEs and other NFCs not subject to NFRD
[Gross] carrying amount | [Gross] carrying amount | [Gross] carrying amount | [Gross] carrying amount
Mn EUR | Of which environmentally sustainable (CCM) | Mn EUR | Of which environmentally sustainable (CCM) | Mn EUR | Of which environmentally sustainable (CCA) | Mn EUR | Of which environmentally sustainable (CCA)
C17.12 Manufacture of paper and paperboard | 1,9 | 0,7 |  |  | - | - |  |
C20.15 Manufacture of fertilisers and nitrogen compounds | 0,6 | 0,0 |  |  | - | - |  |
C22.29 Manufacture of other plastic products | 13,6 | 1,9 |  |  | - | - |  |
C23.13 Manufacture of hollow glass | 0,2 | - |  |  | - | - |  |
C23.14 Manufacture of glass fibres | 0,2 | 0,0 |  |  | - | - |  |
C23.51 Manufacture of cement | 2,0 | 0,1 |  |  | - | - |  |
C23.61 Manufacture of concrete products for construction products | 0,1 | 0,0 |  |  | - | - |  |
C23.70 Cutting, shaping and finishing of stone | 0,0 | 0,0 |  |  | - | - |  |
C24.10 Manufacture of basic iron and steel and of ferro-alloys | 22,1 | 7,7 |  |  | - | - |  |
C24.53 Casting of light metals | 0,4 | - |  |  | - | - |  |
C25.73 Manufacture of tools | 0,4 | 0,0 |  |  | - | - |  |
C26.51 Manufacture of instruments and appliance for measuring, testing and navigation | 0,0 | 0,0 |  |  | - | - |  |
C26.60 Manufacture of irradiation, electromedical and electrotherapeutic equipment | 0,1 | 0,0 |  |  | - | - |  |
C27.40 Manufacture of electric lighting equipment | 1,2 | 0,1 |  |  | - | - |  |
C27.51 Manufacture of electric domestic appliances | 2,4 | 0,2 |  |  | - | - |  |
C28.11 Manufacture of engines and turbines, except aircraft, vehicles and cycles engines | 0,0 | 0,0 |  |  | - | - |  |
C28.12 Manufacture of fluid power equipment | - | - |  |  | - | - |  |
C28.22 Manufacture of lifting and handling equipment | 3,8 | 1,8 |  |  | - | - |  |
C28.30 Manufacture of agricultural and forestry machinery | 3,3 | 0,1 |  |  | - | - |  |
C28.92 Manufacture of machinery for mining and construction | 1,0 | - |  |  | - | - |  |
C29.10 Manufacture of motor vehicles | 89,8 | 24,8 |  |  | - | - |  |
C30.11 Building of ships and floating structures | 0,6 | - |  |  | - | - |  |
C30.91 Manufacture of motorcycles | 2,8 | 0,4 |  |  | - | - |  |
D35.11 Production of electricity | 10,3 | 1,7 |  |  | - | - |  |
D35.12 Trasmission of electricity | 8,3 | 8,2 |  |  | - | - |  |
D35.13 Distribution of electricity | 3,7 | 1,9 |  |  | - | - |  |
D35.22 Distribution of gaseous fuels through mains | 3,6 | 0,1 |  |  | - | - |  |
E36.00 Water collection, treatment and supply | 0,1 | 0,0 |  |  | - | - |  |
E38.11 Collection of non-hazardous waste | 2,7 | 1,4 |  |  | - | - |  |
E38.21 Treatment and disposal of non-hazardous waste | 10,0 | 2,1 |  |  | - | - |  |
E39.00 Remediation activities and other waste management services | 0,2 | 0,0 |  |  | - | - |  |
F41.10 Development of building projects | 1,1 | 0,9 |  |  | - | - |  |
F41.20 Construction of residential and non-residential buildings | 0,0 | 0,0 |  |  | - | - |  |
F43.22 Plumbing, heating and air conditioning installation | 0,0 | 0,0 |  |  | - | - |  |
F43.99 Other specialised construction activities n.e.c. | 4,5 | - |  |  | - | - |  |
H49.10 Passenger rail transport, interurban | 3,2 | 2,6 |  |  | 3,2 | 0,1 |  |
H52.21 Service activities incidental to land transport | 33,2 | 17,7 |  |  | 33,2 | 0,5 |  |
H53.10 Postal activities with universal service obligation | 7,8 | 0,8 |  |  | - | - |  |
J60.10 Radio broadcasting | 0,8 | - |  |  | - | - |  |
J61.10 Wired telecommunication activities | 30,9 | 0,1 |  |  | 26,4 | 0,0 |  |
J61.90 Other telecommunication activities | 9,0 | 0,0 |  |  | - | - |  |
J62.02 Computer consultancy activities | 0,3 | - |  |  | - | - |  |
J62.09 Other information technology and computer service activities | 0,0 | - |  |  | - | - |  |
L68.10 Buying and selling of own real estate | 8,4 | 1,1 |  |  | 5,8 | 0,0 |  |
L68.32 Management of real estate on a fee or contract basis | 1,2 | 0,2 |  |  | - | - |  |
M71.12 Engineering activities and related technical consultancy | 2,6 | 0,2 |  |  | 0,1 | 0,0 |  |
N77.11 Rental and leasing of passenger cars and light motor vehicles | 22,3 | 0,0 |  |  | - | - |  |
N77.12 Rental and leasing of trucks | 4,9 | 1,7 |  |  | - | - |  |

280
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

Breakdown by sector – NACE 4 digits level (code and label) | 31/12/2024 | 31/12/2024
Water and marine resources (WTR) | Circular Economy (CE)
Non-financial corporates (subject to NFRD) | SMEs and other NFCs not subject to NFRD | Non-financial corporates (subject to NFRD) | SMEs and other NFCs not subject to NFRD
[Gross] carrying amount | [Gross] carrying amount | [Gross] carrying amount | [Gross] carrying amount
Mn EUR | Of which environmentally sustainable (WTR) | Mn EUR | Of which environmentally sustainable (WTR) | Mn EUR | Of which environmentally sustainable (CE) | Mn EUR | Of which environmentally sustainable (CE)
C17.12 Manufacture of paper and paperboard | - | - |  |  | - | - |  |
C20.15 Manufacture of fertilisers and nitrogen compounds | - | - |  |  | 0,2 | - |  |
C22.29 Manufacture of other plastic products | 2,1 | - |  |  | 2,1 | - |  |
C23.13 Manufacture of hollow glass | - | - |  |  | - | - |  |
C23.14 Manufacture of glass fibres | - | - |  |  | - | - |  |
C23.51 Manufacture of cement | - | - |  |  | 2,0 | 0,0 |  |
C23.61 Manufacture of concrete products construction purpose | - | - |  |  | - | - |  |
C23.70 Cutting, shaping and finishing stone | - | - |  |  | - | - |  |
C24.10 Manufacture of basic iron and steel and of ferro-alloys | - | - |  |  | - | - |  |
C24.53 Casting of light metals | - | - |  |  | - | - |  |
C25.73 Manufacture of tools | - | - |  |  | 0,3 | - |  |
C26.51 Manufacture of instruments and appliances for measuring, testing and navigation | - | - |  |  | - | - |  |
C26.60 Manufacture of irradiation, electromedical and electrotherapeutic equipment | - | - |  |  | 0,1 | - |  |
C27.40 Manufacture of electric lighting equipment | - | - |  |  | - | - |  |
C27.51 Manufacture of electric domestic appliances | - | - |  |  | - | - |  |
C28.11 Manufacture of engines and turbines, except aircraft, vehicles and cycles engines | - | - |  |  | 0,0 | - |  |
C28.12 Manufacture of fluid power equipments | - | - |  |  | 0,0 | - |  |
C28.22 Manufacture of lifting and handling equipment | - | - |  |  | - | - |  |
C28.30 Manufacture of agricultural and forestry machinery | - | - |  |  | 3,3 | - |  |
C28.92 Manufacture of machinery for mining and construction | - | - |  |  | - | - |  |
C29.10 Manufacture of motor vehicles | - | - |  |  | 20,3 | - |  |
C30.11 Building of ships and floating structures | - | - |  |  | - | - |  |
C30.91 Manufacture of motorcycles | 2,4 |  |  |  | 2,4 |  |  |
D35.11 Production of electricity | 0,5 | 0,3 |  |  | 0,5 | 0,0 |  |
D35.12 Trasmission of electricity | - | - |  |  | - | - |  |
D35.13 Distribution of electricity | - | - |  |  | - | - |  |
D35.22 Distribution of gaseous fuels through mains | - | - |  |  | - | - |  |
E36.00 Water collection, treatment and supply | 0,0 | 0,0 |  |  | 0,0 | 0,0 |  |
E38.11 Collection of non-hazardous waste | - | - |  |  | - | - |  |
E38.21 Treatment and disposal of non-hazardous waste | - | - |  |  | - | - |  |
E39.00 Remediation activities and other waste management services | - | - |  |  | - | - |  |
F41.10 Development of building projects | - | - |  |  | - | - |  |
F41.20 Construction of residential and non-residential buildings | - | - |  |  | - | - |  |
F43.22 Plumbing, heating and air conditioning installation | - | - |  |  | - | - |  |
F43.99 Other specialised construction activities n.e.c. | - | - |  |  | 4,5 | - |  |
H49.10 Passenger rail transport, interurban | - | - |  |  | 3,2 | - |  |
H52.21 Service activities incidental to land transport | - | - |  |  | 26,6 | - |  |
H53.10 Postal activities with universal service obligation | - | - |  |  | - | - |  |
J60.10 Radio broadcasting | - | - |  |  | - | - |  |
J61.10 Wired telecommunication activities | 0,2 | 0,0 |  |  | 4,2 | 0,0 |  |
J61.90 Other telecommunication activities | - | - |  |  | 2,2 |  |  |
J62.02 Computer consultancy activities | - | - |  |  | - | - |  |
J62.09 Other information technology and computer service activities | - | - |  |  | - | - |  |
L68.10 Buying and selling of owned real estate | - | - |  |  | - | - |  |
L68.32 Management of real estate on a fee or contract basis | - | - |  |  | - | - |  |
M71.12 Engineering activities and related technical consultancy | - | - |  |  | 2,6 |  |  |
N77.11 Rental and leasing of passenger cars and light motor vehicles | - | - |  |  | - | - |  |
N77.12 Rental and leasing of trucks | - | - |  |  | - | - |  |

281
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

Breakdown by sector – NACE 4 digits level (code and label) | 31/12/2024 | 31/12/2024
Pollution (PPC) | Biodiversity and ecosystems (BIO)
Non-financial corporates (subject to NFRD) | SMEs and other NFCs not subject to NFRD | Non-financial corporates (subject to NFRD) | SMEs and other NFCs not subject to NFRD
[Gross] carrying amount | [Gross] carrying amount | [Gross] carrying amount | [Gross] carrying amount
Mn EUR | Of which environmentally sustainable (PPC) | Mn EUR | Of which environmentally sustainable (PPC) | Mn EUR | Of which environmentally sustainable (BIO) | Mn EUR | Of which environmentally sustainable (BIO)
C17.12 Manufacture of paper and paperboard | - | - |  |  | - | - |  |
C20.15 Manufacture of fertilisers and nitrogen compounds | 0,2 | - |  |  | - | - |  |
C22.29 Manufacture of other plastic products | 2,1 | - |  |  | - | - |  |
C23.13 Manufacture of hollow glass | - | - |  |  | - | - |  |
C23.14 Manufacture of glass fibres | - | - |  |  | - | - |  |
C23.51 Manufacture of cement | - | - |  |  | - | - |  |
C23.61 Manufacture of concrete products for construction purpose | - | - |  |  | - | - |  |
C23.70 Cutting, shaping and finishing stone | - | - |  |  | - | - |  |
C24.10 Manufacture of basic iron and steel and of ferro-alloys | - | - |  |  | - | - |  |
C24.53 Casting of light metals | - | - |  |  | - | - |  |
C25.73 Manufacture of tools | - | - |  |  | - | - |  |
C26.51 Manufacture of instruments and appliances for measuring, testing and navigation | - | - |  |  | - | - |  |
C26.60 Manufacture of irradiation, electromedical and electrotherapeutic equipment | - | - |  |  | - | - |  |
C27.40 Manufacture of electric lighting equipment | - | - |  |  | - | - |  |
C27.51 Manufacture of electric domestic appliances | - | - |  |  | - | - |  |
C28.11 Manufacture of engines and turbines, except aircraft, vehicles and cycles engines | - | - |  |  | - | - |  |
C28.12 Manufacture of fluid power equipments | 0,0 | - |  |  | - | - |  |
C28.22 Manufacture of lifting and handling equipment | - | - |  |  | - | - |  |
C28.30 Manufacture of agricultural and forestry machinery | - | - |  |  | - | - |  |
C28.92 Manufacture of machinery for mining and construction | - | - |  |  | - | - |  |
C29.10 Manufacture of motor vehicles | - | - |  |  | - | - |  |
C30.11 Building of ships and floating structures | - | - |  |  | - | - |  |
C30.91 Manufacture of motorcycles | 2,4 | - |  |  | - | - |  |
D35.11 Production of electricity | 0,5 | - |  |  | - | - |  |
D35.12 Trasmission of electricity | - | - |  |  | - | - |  |
D35.13 Distribution of electricity | - | - |  |  | - | - |  |
D35.22 Distribution of gaseous fuels through mains | - | - |  |  | - | - |  |
E36.00 Water collection, treatment and supply | 0,0 | 0,0 |  |  | - | - |  |
E38.11 Collection of non-hazardous waste | - | - |  |  | - | - |  |
E38.21 Treatment and disposal of non-hazardous waste | - | - |  |  | - | - |  |
E39.00 Remediation activities and other waste management services | - | - |  |  | - | - |  |
F41.10 Development of building projects | - | - |  |  | - | - |  |
F41.20 Construction of residential and non-residential buildings | - | - |  |  | - | - |  |
F43.22 Plumbing, heating and air conditioning installation | - | - |  |  | - | - |  |
F43.99 Other specialised construction activities n.e.c. | - | - |  |  | - | - |  |
H49.10 Passenger rail transport, interuban | - | - |  |  | - | - |  |
H52.21 Service activities incidental to land transport | - | - |  |  | - | - |  |
H53.10 Postal activities with universal service obligation | - | - |  |  | - | - |  |
J60.10 Radio broadcasting | - | - |  |  | - | - |  |
J61.10 Wired telecommunication activities | 0,2 | 0,0 |  |  | - | - |  |
J61.90 Other telecommunication activities | - | - |  |  | - | - |  |
J62.02 Computer consultancy activities | - | - |  |  | - | - |  |
J62.09 Other information technology and computer service activities | - | - |  |  | - | - |  |
L68.10 Buying and selling of owned real estate | - | - |  |  | - | - |  |
L68.32 Management of real estate on a fee or contract basis | - | - |  |  | - | - |  |
M71.12 Engineering activities and related technical consultancy | 1,3 | - |  |  | - | - |  |
N77.11 Rental and leasing of passenger cars and light motor vehicles | - | - |  |  | - | - |  |
N77.12 Rental and leasing of trucks | - | - |  |  | - | - |  |

282
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

Breakdown by sector – NACE 4 digits level (code and label) | 31/12/2024
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Non-financial corporates (subject to NFRD) | SMEs and other NFCs not subject to NFRD
[Gross] carrying amount | [Gross] carrying amount
Mn EUR | Of which environmentally sustainable (CCM + CCA + WTR + CE + PPC + BIO) | Mn EUR | Of which environmentally sustainable (CCM + CCA + WTR + CE + PPC + BIO)
C17.12 Manufacture of paper and paperboard board | 1,9 | 0,7 |  |
C20.15 Manufacture of fertilisers and nitrogen compounds | 0,6 | 0,0 |  |
C22.29 Manufacture of other plastic products | 13,6 | 1,9 |  |
C23.13 Manufacture of hollow glass | 0,2 | - |  |
C23.14 Manufacture of glass fibres | 0,2 | 0,0 |  |
C23.51 Manufacture of cement | 2,0 | 0,1 |  |
C23.61 Manufacture of concrete products for construction purpose | 0,1 | 0,0 |  |
C23.70 Cutting, shaping and finishing stone | 0,0 | 0,0 |  |
C24.10 Manufacture of basic iron and steel and of ferro-alloys | 22,1 | 7,7 |  |
C24.53 Casting of light metals | 0,4 | - |  |
C25.73 Manufacture of tools | 0,4 | 0,0 |  |
C26.51 Manufacture of instruments and appliances for measuring, testing and navigation | 0,0 | 0,0 |  |
C26.60 Manufacture of irradiation, electromedical and electrotherapeutic equipment | 0,1 | 0,0 |  |
C27.40 Manufacture of electric lighting equipment | 1,2 | 0,1 |  |
C27.51 Manufacture of electric domestic appliances | 2,4 | 0,2 |  |
C28.11 Manufacture of engines and turbines, except aircraft, for vehicles and cycles engines | 0,0 | 0,0 |  |
C28.12 Manufacture of fluid power equipments | 0,0 | - |  |
C28.22 Manufacture of lifting and handling equipment | 3,8 | 1,8 |  |
C28.30 Manufacture of agricultural and forestry machinery | 3,3 | 0,1 |  |
C28.92 Manufacture of machinery for mining and construction | 1,0 | - |  |
C29.10 Manufacture of motor vehicles | 89,8 | 24,8 |  |
C30.11 Building of ships and floating structures | 0,6 | - |  |
C30.91 Manufacture of motorcycles | 2,8 | 0,4 |  |
D35.11 Producton of electricity | 10,3 | 2,0 |  |
D35.12 Trasmission of electricity | 8,3 | 8,2 |  |
D35.13 Distribution of electricity | 3,7 | 1,9 |  |
D35.22 Distribution of gaseous fuels through mains | 3,6 | 0,1 |  |
E36.00 Water collection, treatment and supply | 0,1 | 0,0 |  |
E38.11 Collection of non-hazardous waste | 2,7 | 1,4 |  |
E38.21 Treatment and disposal of non-hazardous waste | 10,0 | 2,1 |  |
E39.00 Remediation activities and other waste management services | 0,2 | 0,0 |  |
F41.10 Development of building projects | 1,1 | 0,9 |  |
F41.20 Construction of residential and non-residential buildings | 0,0 | 0,0 |  |
F43.22 Plumbing, heating and air conditioning installation | 0,0 | 0,0 |  |
F43.99 Other specialised construction activities n.e.c. | 4,5 | - |  |
H49.10 Passenger rail transport, interurban | 3,2 | 2,7 |  |
H52.21 Service activities incidental to land transport | 33,2 | 18,2 |  |
H53.10 Postal activities with universal service obligation | 7,8 | 0,8 |  |
J60.10 Radio broadcasting | 0,8 | - |  |
J61.10 Wired telecommunication activities | 30,9 | 0,1 |  |
J61.90 Other telecommunication activities | 9,0 | 0,0 |  |
J62.02 Computer consultancy activities | 0,3 | - |  |
J62.09 Other information technology and computer service activities | 0,0 | - |  |
L68.10 Buying and selling of owned real estate | 8,4 | 1,1 |  |
L68.32 Management of real estate on a fee or contract basis | 1,2 | 0,2 |  |
M71.12 Engineering activities and related technical consultancy | 2,6 | 0,2 |  |
N77.11 Rental and leasing of passenger cars and light motor vehicles | 22,3 | 0,0 |  |
N77.12 Rental and leasing of trucks | 4,9 | 1,7 |  |

283
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Template 2. GAR Sector Information - Turnover based [FY 2024]

Breakdown by sector – NACE 4 digits level (code and label) | 31/12/2024 | 31/12/2024
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Non-financial corporates (subject to NFRD) | SMEs and other NFCs not subject to NFRD | Non-financial corporates (subject to NFRD) | SMEs and other NFCs not subject to NFRD
[Gross] carrying amount | [Gross] carrying amount | [Gross] carrying amount | Gross carrying amount
Mn EUR | Of which environmentally sustainable (CCM) | Mn EUR | Of which environmentally sustainable (CCM) | Mn EUR | Of which environmentally sustainable (CCA) | Mn EUR | Of which environmentally sustainable (CCA)
C17.12 Manufacture of paper and paperboard | 1,9 | 0,1 |  |  | - | - |  |
C20.15 Manufacture of fertilisers and nitrogen compounds | 0,6 | - |  |  | - | - |  |
C22.29 Manufacture of other plastic products | 13,6 | 0,8 |  |  | - | - |  |
C23.13 Manufacture of hollow glass | 0,2 |  |  |  | - | - |  |
C23.14 Manufacture of glass fibres | 0,2 | 0,0 |  |  | - | - |  |
C23.51 Manufacture of cement | 2,0 | 0,1 |  |  | - | - |  |
C23.61 Manufacture of concrete products for construction purposes | 0,1 | 0,0 |  |  | - | - |  |
C23.70 Cutting, shaping and finishing stone | 0,0 | 0,0 |  |  | - | - |  |
C24.10 Manufacture of basic iron and steel and of ferro-alloys | 22,1 | 17,4 |  |  | - | - |  |
C24.53 Casting of light metals | 0,4 |  |  |  | - | - |  |
C25.73 Manufacture of tools | 0,4 | 0,0 |  |  | - | - |  |
C26.51 Manufacture of instruments and appliances for measuring, testing and navigation | 0,0 | 0,0 |  |  | - | - |  |
C26.60 Manufacture of irradiation, electromedical and electrotherapeutic equipment | 0,1 | - |  |  | - | - |  |
C27.40 Manufacture of electric lighting equipment | 1,2 | 0,1 |  |  | - | - |  |
C27.51 Manufacture of electric domestic appliances | 2,4 | 0,1 |  |  | - | - |  |
C28.11 Manufacture of engines and turbines, except aircraft, vehicles and cycles engines | 0,0 | 0,0 |  |  | - | - |  |
C28.12 Manufacture of fluid power equipment | - | - |  |  | - | - |  |
C28.22 Manufacture of lifting and handling equipment | 3,8 | 1,9 |  |  | - | - |  |
C28.30 Manufacture of agricultural and forestry machinery | 3,3 | 0,0 |  |  | - | - |  |
C28.92 Manufacture of machinery for mining and construction | 1,0 | - |  |  | - | - |  |
C29.10 Manufacture of motor vehicles | 89,8 | 7,8 |  |  | - | - |  |
C30.11 Building of ships and floating structures | 0,6 | - |  |  | - | - |  |
C30.91 Manufacture of motorcycles | 2,8 | 0,2 |  |  | - | - |  |
D35.11 Production of electricity | 10,3 | 0,3 |  |  | - | - |  |
D35.12 Trasmission of electricity | 8,3 | 7,1 |  |  | - | - |  |
D35.13 Distribution of electricity | 3,7 | 1,0 |  |  | - | - |  |
D35.22 Distribution of gaseous fuels through mains | 3,6 | 0,0 |  |  | - | - |  |
E36.00 Water collection, treatment and supply | 0,1 | 0,0 |  |  | - | - |  |
E38.11 Collection of non-hazardous waste | 2,7 | 0,7 |  |  | - | - |  |
E38.21 Treatment and disposal of non-hazardous waste | 10,0 | 4,9 |  |  | - | - |  |
E39.00 Remediation activities and other waste management services | 0,2 | 0,0 |  |  | - | - |  |
F41.10 Development of building projects | 1,1 | 0,6 |  |  | - | - |  |
F41.20 Construction of residential and non-residential buildings | 0,0 | 0,0 |  |  | - | - |  |
F43.22 Plumbing, heating and air conditioning installation | 0,0 | 0,0 |  |  | - | - |  |
F43.99 Other specialised construction activities n.e.c. | 4,5 | - |  |  | - | - |  |
H49.10 Passenger rail transport, interurban | 3,2 | 1,9 |  |  | 3,2 | - |  |
H52.21 Service activities incidental to land transport | 33,2 | 12,6 |  |  | 33,2 | - |  |
H53.10 Postal activities with universal service obligation | 7,8 | 0,3 |  |  | - | - |  |
J60.10 Radio broadcasting | 0,8 |  |  |  | - | - |  |
J61.10 Wired telecommunication activities | 30,9 | 0,0 |  |  | 26,4 | 0,0 |  |
J61.90 Other telecommunication activities | 9,0 | 0,0 |  |  | - | - |  |
J62.02 Computer consultancy activities | 0,3 | - |  |  | - | - |  |
J62.09 Other information technology and computer service activities | 0,0 | - |  |  | - | - |  |
L68.10 Buying and selling of owned real estate | 8,4 | 0,6 |  |  | 5,8 | 0,0 |  |
L68.32 Management of real estate on a fee or contract basis | 1,2 | 0,0 |  |  | - | - |  |
M71.12 Engineering activities and related technical consultancy | 2,6 | 0,1 |  |  | 0,1 | - |  |
N77.11 Rental and leasing of passenger cars and light motor vehicles | 22,3 | 0,0 |  |  | - | - |  |
N77.12 Rental and leasing of trucks | 4,9 | 0,1 |  |  | - | - |  |

284
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

| 31/12/2024 | 31/12/2024
Breakdown by sector – NACE 4 digits level (code and label) | Water and marine resources (WTR) | Circular Economy (CE)
Non-financial corporates (subject to NFRD) | SMEs and other NFCs not subject to NFRD | Non-financial corporates (subject to NFRD) | SMEs and other NFCs not subject to NFRD
[Gross] carrying amount | [Gross] carrying amount | [Gross] carrying amount | [Gross] carrying amount
Mn EUR | Of which environmentally sustainable (WTR) | Mn EUR | Of which environmentally sustainable (WTR) | Mn EUR | Of which environmentally sustainable (CE) | Mn EUR | Of which environmentally sustainable (CE)
C17.12 Manufacture of paper and paperboard | - | - |  |  | - | - |  |
C20.15 Manufacture of fertilisers and nitrogen compounds | - | - |  |  | 0,2 | - |  |
C22.29 Manufacture of other plastic products | 2,1 | - |  |  | 2,1 | - |  |
C23.13 Manufacture of hollow glass | - | - |  |  | - | - |  |
C23.14 Manufacture of glass fibres | - | - |  |  | - | - |  |
C23.51 Manufacture of cement | - | - |  |  | 2,0 | 0,0 |  |
C23.61 Manufacture of concrete products for construction purposes | - | - |  |  | - | - |  |
C23.70 Cutting, shaping and finishing stone | - | - |  |  | - | - |  |
C24.10 Manufacture of basic iron and steel and of ferro-alloys | - | - |  |  | - | - |  |
C24.53 Casting of light metals | - | - |  |  | - | - |  |
C25.73 Manufacture of tools | - | - |  |  | 0,3 | - |  |
C26.51 Manufacture of instruments and appliances for measuring, testing and navigation | - | - |  |  | - | - |  |
C26.60 Manufacture of irradiation, electromedical and electrotherapeutic equipment | - | - |  |  | 0,1 | - |  |
C27.40 Manufacture of electric lighting equipment | - | - |  |  | - | - |  |
C27.51 Manufacture of electric domestic appliances | - | - |  |  | - | - |  |
C28.11 Manufacture of engines and turbines, except aircraft, vehicles and cycles engines | - | - |  |  | 0,0 | - |  |
C28.12 Manufacture of fluid power plants | - | - |  |  | 0,0 | - |  |
C28.22 Manufacture of lifting and handling equipment | - | - |  |  | - | - |  |
C28.30 Manufacture of agricultural and forestry machinery | - | - |  |  | 3,3 | - |  |
C28.92 Manufacture of machinery for mining and construction | - | - |  |  | - | - |  |
C29.10 Manufacture of motor vehicles | - | - |  |  | 20,3 | - |  |
C30.11 Building of ships and floating structures | - | - |  |  |  | - |  |
C30.91 Manufacture of motorcycles | 2,4 | - |  |  | 2,4 | - |  |
D35.11 Production of electricity | 0,5 | 0,1 |  |  | 0,5 | - |  |
D35.12 Trasmission of electricity | - | - |  |  | - | - |  |
D35.13 Distribution fo electricity | - | - |  |  | - | - |  |
D35.22 Distribution of gaseous fuels through mains | - | - |  |  | - | - |  |
E36.00 Water collection, treatment and supply | 0,0 | 0,0 |  |  | 0,0 | 0,0 |  |
E38.11 Collection of non-hazardous waste | - | - |  |  | - | - |  |
E38.21 Treatment and disposal of non-hazardous waste | - | - |  |  | - | - |  |
E39.00 Remediation activities and other waste management services | - | - |  |  | - | - |  |
F41.10 Development of building projects | - | - |  |  | - | - |  |
F41.20 Construction of residential and non-residential buildings | - | - |  |  | - | - |  |
F43.22 Plumbing, heating and air conditioning installation | - | - |  |  | - | - |  |
F43.99 Other specialised construction activities n.e.c. | - | - |  |  | 4,5 | - |  |
H49.10 Passenger rail transport, interurban | - | - |  |  | 3,2 | - |  |
H52.21 Service activities incidental to land transport | - | - |  |  | 26,6 | - |  |
H53.10 Postal activities with universal service obligation | - | - |  |  | - | - |  |
J60.10 Radio broadcasting | - | - |  |  | - | - |  |
J61.10 Wired telecommunication activities | 0,2 | 0,0 |  |  | 4,2 | 0,0 |  |
J61.90 Other telecommunication activities | - | - |  |  | 2,2 | - |  |
J62.02 Computer consultancy activities | - | - |  |  | - | - |  |
J62.09 Other information technology and computer service activities | - | - |  |  | - | - |  |
L68.10 Buying and selling of owned real estate | - | - |  |  | - | - |  |
L68.32 Management of real estate on a fee or contract basis | - | - |  |  | - | - |  |
M71.12 Engineering activities and related technical consultancy | - | - |  |  | 2,6 | - |  |
N77.11 Rental and leasing of passenger cars and light motor vehicles | - | - |  |  | - | - |  |
N77.12 Rental and leasing of trucks | - | - |  |  | - | - |  |

285
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

| 31/12/2024 | 31/12/2024
Breakdown by sector – NACE 4 digits level (code and label) | Pollution (PPC) | Biodiversity and ecosystems (BIO)
Non-financial corporates (subject to NFRD) | SMEs and other NFCs not subject to NFRD | Non-financial corporates (subject to NFRD) | SMEs and other NFCs not subject to NFRD
[Gross] carrying amount | [Gross] carrying amount | [Gross] carrying amount | [Gross] carrying amount
Mn EUR | Of which environmentally sustainable (PPC) | Mn EUR | Of which environmentally sustainable (PPC) | Mn EUR | Of which environmentally sustainable (BIO) | Mn EUR | Of which environmentally sustainable (BIO)
C17.12 Manufacture of paper and paperboard | - | - |  |  | - | - |  |
C20.15 Manufacture of fertilisers and nitrogen compounds | 0,2 | - |  |  | - | - |  |
C22.29 Manufacture of other plastic products | 2,1 | - |  |  | - | - |  |
C23.13 Manufacture of hollow glass | - | - |  |  | - | - |  |
C23.14 Manufacture of glass fibres | - | - |  |  | - | - |  |
C23.51 Manufacture of cement | - | - |  |  | - | - |  |
C23.61 Manufacture of concrete product for construction purposes | - | - |  |  | - | - |  |
C23.70 Cutting, shaping and finishing stone | - | - |  |  | - | - |  |
C24.10 Manufacture of basic iron and steel and of ferro-alloys | - | - |  |  | - | - |  |
C24.53 Casting of light metals | - | - |  |  | - | - |  |
C25.73 Manufacture of tools | - | - |  |  | - | - |  |
C26.51 Manufacture of instruments and apparatus for measuring, testing and navigation | - | - |  |  | - | - |  |
C26.60 Manufacture of irradiation, electromedical and electrotherapeutic equipment | - | - |  |  | - | - |  |
C27.40 Manufacture of electric lighting equipment | - | - |  |  | - | - |  |
C27.51 Manufacture of electric domestic appliances | - | - |  |  | - | - |  |
C28.11 Manufacture of engines and turbines, except aircraft, vehicles and cycles engines | - | - |  |  | - | - |  |
C28.12 Manufacture of fluid power equipment | 0,0 | - |  |  | - | - |  |
C28.22 Manufacture of lifting and handling equipment | - | - |  |  | - | - |  |
C28.30 Manufacture of agricultural and forestry machinery | - | - |  |  | - | - |  |
C28.92 Manufacture of machinery for mining and construction | - | - |  |  | - | - |  |
C29.10 Manufacture of motor vehicles | - | - |  |  | - | - |  |
C30.11 Building of ships and floating structures | - | - |  |  | - | - |  |
C30.91 Manufacture of motorcycles | 2,4 | - |  |  | - | - |  |
D35.11 Production of electricity | 0,5 | - |  |  | - | - |  |
D35.12 Trasmission of electricity | - | - |  |  | - | - |  |
D35.13 Distribution of electricity | - | - |  |  | - | - |  |
D35.22 Distribution of gaseous fuels through mains | - | - |  |  | - | - |  |
E36.00 Water collection, treatment and supply | 0,0 | 0,0 |  |  | - | - |  |
E38.11 Collection of non-hazardous waste | - | - |  |  | - | - |  |
E38.21 Treatment and disposal of non-hazardous waste | - | - |  |  | - | - |  |
E39.00 Remediation activities and other waste management services | - | - |  |  | - | - |  |
F41.10 Development of building projects | - | - |  |  | - | - |  |
F41.20 Construction of residential and non-residential buildings | - | - |  |  | - | - |  |
F43.22 Plumbing, heating and air conditioning installation | - | - |  |  | - | - |  |
F43.99 Other specialised construction activities n.e.c. | - | - |  |  | - | - |  |
H49.10 Passenger rail transport, interuban | - | - |  |  | - | - |  |
H52.21 Service activities incidental to land transport | - | - |  |  | - | - |  |
H53.10 Postal activities with universal service obligation | - | - |  |  | - | - |  |
J60.10 Radio broadcasting | - | - |  |  | - | - |  |
J61.10 Wired telecommunication activities | 0,2 | 0,0 |  |  | - | - |  |
J61.90 Other telecommunication activities | - | - |  |  | - | - |  |
J62.02 Computer consultancy activities | - | - |  |  | - | - |  |
J62.09 Other information technology and computer service activities | - | - |  |  | - | - |  |
L68.10 Buying and selling of owned real estate | - | - |  |  | - | - |  |
L68.32 Management of real estate on a fee or contract basis | - | - |  |  | - | - |  |
M71.12 Engineering activities and related technical consultancy | 1,3 | - |  |  | - | - |  |
N77.11 Rental and leasing of passenger cars and light motor vehicles | - | - |  |  | - | - |  |
N77.12 Rental and leasing of trucks | - | - |  |  | - | - |  |

286
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

| 31/12/2024
Breakdown by sector - NACE 4 digits level (brand code) | TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Non-financial corporates (subject to NFRD) | SMEs and other NFCs not subject to NFRD
[Gross] carrying amount | [Gross] carrying amount
Mn EUR | Of which environmentally sustainable (CCM + CCA + WTR + CE + PPC + BIO) | Mn EUR | Of which environmentally sustainable (CCM + CCA + WTR + CE + PPC + BIO)
C17.12 Manufacture of paper and paperboard | 1,9 | 0,1 |  |
C20.15 Manufacture of fertilisers and nitrogen compounds | 0,6 |  |  |
C22.29 Manufacture of other plastic products | 13,6 | 0,8 |  |
C23.13 Manufacture of hollow glass | 0,2 |  |  |
C23.14 Manufacture of glass fibres | 0,2 | 0,0 |  |
C23.51 Manufacture of cement | 2,0 | 0,1 |  |
C23.61 Manufacture of concrete products for construction purposes | 0,1 | 0,0 |  |
C23.70 Cutting, shaping and finishing stone | 0,0 | 0,0 |  |
C24.10 Manufacture of basic iron and steel and of ferro-alloys | 22,1 | 17,4 |  |
C24.53 Casting of light metals | 0,4 | - |  |
C25.73 Manufacture of tools | 0,4 | 0,0 |  |
C26.51 Manufacture of instruments and appliances for measuring, testing and navigation | 0,0 | 0,0 |  |
C26.60 Manufacture of irradiation, electromedical and electrotherapeutic equipment | 0,1 | - |  |
C27.40 Manufacture of electric lighting equipment | 1,2 | 0,1 |  |
C27.51 Manufacture of electric domestic appliances | 2,4 | 0,1 |  |
C28.11 Manufacture of engines and turbines, except aircraft, for vehicles and cycles engines | 0,0 | 0,0 |  |
C28.12 Manufacture of fluid power equipment | 0,0 | - |  |
C28.22 Manufacture of lifting and handling equipment | 3,8 | 1,9 |  |
C28.30 Manufacture of agricultural and forestry machinery | 3,3 | 0,0 |  |
C28.92 Manufacture of machinery for mining and construction | 1,0 | - |  |
C29.10 Manufacture of motor vehicles | 89,8 | 7,8 |  |
C30.11 Building of ships and floating structures | 0,6 | - |  |
C30.91 Manufacture of motorcycles | 2,8 | 0,2 |  |
D35.11 Production of electricity | 10,3 | 0,4 |  |
D35.12 Trasmission of electricity | 8,3 | 7,1 |  |
D35.13 Distribution of electricity | 3,7 | 1,0 |  |
D35.22 Distribution of gaseous fuels through mains | 3,6 | 0,0 |  |
E36.00 Water collection, treatment and supply | 0,1 | 0,0 |  |
E38.11 Collection of non-hazardous waste | 2,7 | 0,7 |  |
E38.21 Treatment and disposal of non-hazardous waste | 10,0 | 4,9 |  |
E39.00 Remediation activities and other waste management services | 0,2 | 0,0 |  |
F41.10 Development of building projects | 1,1 | 0,6 |  |
F41.20 Construction of residential and non-residential buildings | 0,0 | 0,0 |  |
F43.22 Plumbing, heating and air conditioning installation | 0,0 | 0,0 |  |
F43.99 Other specialised construction activities n.e.c. | 4,5 | - |  |
H49.10 Passenger rail transport, interuban | 3,2 | 1,9 |  |
H52.21 Service activities incidental to land transport | 33,2 | 12,6 |  |
H53.10 Postal activities with universal service obligation | 7,8 | 0,3 |  |
J60.10 Radio broadcasting | 0,8 | - |  |
J61.10 Wired telecommunication activities | 30,9 | 0,0 |  |
J61.90 Other telecommunication activities | 9,0 | 0,0 |  |
J62.02 Computer consultancy activities | 0,3 | - |  |
J62.09 Other information technology and computer service activities | 0,0 | - |  |
L68.10 Buying and selling of owned real estate | 8,4 | 0,6 |  |
L68.32 Management of real estate on a fee or contract basis | 1,2 | 0,0 |  |
M71.12 Engineering activities and related technical consultancy | 2,6 | 0,1 |  |
N77.11 Rental and leasing of passenger cars and light motor vehicles | 22,3 | 0,0 |  |
N77.12 Rental and leasing of trucks | 4,9 | 0,1 |  |

287
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Template 3. GAR KPI stock - Capex based [FY 2024]

% (compared to total covered assets in the denominator) | 31/12/2024 | 31/12/2024
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible) | Proportion of total covered assets funding to taxonomy-relevant sectors (taxonomy eligible)
| Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned) |  | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned)
|  | Of which use of proceeds | Of which transitional | Of which enabling |  |  | Of which use of proceeds | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 5,8% | 1,3% | - | 0,0% | 0,6% | 0,1% | 0,0% | - | 0,0%
Financial undertakings | 2,0% | 0,3% | - | 0,0% | 0,2% | 0,0% | 0,0% | - | 0,0%
Credit institutions | 1,2% | 0,1% | - | 0,0% | 0,0% | 0,0% | 0,0% | - | 0,0%
Loans and advances | 0,1% | 0,0% | - | 0,0% | 0,0% | 0,0% | 0,0% | - | -
Debt securities, including UoP | 1,1% | 0,1% | - | 0,0% | 0,0% | 0,0% | 0,0% | - | 0,0%
Equity instruments | 0,0% | 0,0% |  | 0,0% | 0,0% | 0,0% | 0,0% |  | 0,0%
Other financial corporations | 0,8% | 0,2% | - | 0,0% | 0,2% | 0,0% | 0,0% | - | -
of which investment firms | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - | - |  | -
of which management companies | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - | - |  | -
of which insurance undertakings | 0,0% | 0,0% | - | - | - | 0,0% | 0,0% | - | -
Loans and advances | 0,0% | 0,0% | - | - | - | 0,0% | 0,0% | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | -
Equity instruments | 0,0% | 0,0% |  | - | - | 0,0% | 0,0% |  | -
Non-financial undertakings | 2,3% | 0,9% | - | 0,0% | 0,5% | 0,1% | 0,0% | - | 0,0%
Loans and advances | 1,8% | 0,6% | - | 0,0% | 0,4% | 0,0% | 0,0% | - | 0,0%
Debt securities, including UoP | 0,3% | 0,1% | - | 0,0% | 0,0% | 0,0% | 0,0% | - | 0,0%
Equity instruments | 0,2% | 0,1% |  | 0,0% | 0,0% | 0,0% | 0,0% |  | 0,0%
Households | 1,5% | 0,1% | - | - | - | - | - | - | -
of which loans collateralised by residential immovable property | 1,0% | 0,1% | - | - | - | - | - | - | -
of which building renovation loans | - | - | - | - | - | - | - | - | -
of which motor vehicles loans | 0,5% | - | - | - |  |  |  |  |
Local government financing | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | -
Total GAR assets | 5,8% | 1,3% | - | 0,0% | 0,6% | 0,1% | 0,0% | - | 0,0%

288
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

% (compared to total covered assets in the denominator) | 31/12/2024 | 31/12/2024 | 31/12/2024
Water and marine resources (WTR) | Circular Economy (CE) | Pollution (PPC)
Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible) | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible) | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible)
| Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned) |  | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned) |  | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned)
|  | Of which use of proceeds | Of which enabling |  |  | Of which use of proceeds | Of which enabling |  |  | Of which use of proceeds | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | -
Financial undertakings | 0,0% | - | - | - | 0,0% | - | - | - | 0,0% | - | - | -
Credit institutions | 0,0% | - | - | - | 0,0% | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | 0,0% | - | - | - | 0,0% | - | - | - | - | - | - | -
Equity instruments | 0,0% | - |  | - | 0,0% | - |  | - | - | - |  | -
Other financial corporations | 0,0% | - | - | - | 0,0% | - | - | - | 0,0% | - | - | -
of which investment firms | - | - | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | - |  | -
of which management companies | - | - | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | - |  | -
of which insurance undertakings | - | - | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including Up | - | - | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | - |  | -
Non-financial undertakings | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | -
Loans and advances | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | -
Debt securities, including UoP | - | - | - | - | 0,0% | 0,0% | - | - | - | - | - | -
Equity instruments | 0,0% | - |  | - | 0,0% | - |  | - | 0,0% | - |  | -
Households |  |  |  |  | - | - | - | - |  |  |  |
of which loans collateralised by residential immovable property |  |  |  |  | - | - | - | - |  |  |  |
of which building renovation loans |  |  |  |  | - | - | - | - |  |  |  |
of which motor vehicles loans |  |  |  |  |  |  |  |  |  |  |  |
Local government financing | - | - | - | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | - | - | - | -
Total GAR assets | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | -

289
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

% (compared to total covered assets in the denominator) | 31/12/2024 | 31/12/2024 |
Biodiversity and Ecosystems (BIO) | TOTAL (CCM + CCA + WTR + CE + PPC + BIO) | Proportion of total assets covered
Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible) | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible)
| Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned) |  | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned)
|  | Of which use of proceeds | Of which enabling |  |  | Of which use of proceeds | Of which transitional | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 0,0% | - | - | - | 5,9% | 1,3% | - | 0,0% | 0,6% | 25,0%
Financial undertakings | 0,0% | - | - | - | 2,0% | 0,3% | - | 0,0% | 0,2% | 5,8%
Credit institutions | - | - | - | - | 1,2% | 0,1% | - | 0,0% | 0,0% | 4,6%
Loans and advances | - | - | - | - | 0,1% | 0,0% | - | 0,0% | 0,0% | 0,5%
Debt securities, including UoP | - | - | - | - | 1,1% | 0,1% | - | 0,0% | 0,0% | 4,0%
Equity instruments | - | - |  | - | 0,0% | 0,0% |  | 0,0% | 0,0% | 0,1%
Other financial corporations | 0,0% | - | - | - | 0,8% | 0,2% | - | 0,0% | 0,2% | 1,2%
of which investment firms | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | -
of which management companies | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | -
of which insurance undertakings | - | - | - | - | 0,0% | 0,0% | - | - | - | 0,0%
Loans and advances | - | - | - | - | 0,0% | 0,0% | - | - | - | 0,0%
Debt securities, including Up | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | 0,0% | 0,0% |  | - | - | 0,0%
Non-financial undertakings | 0,0% | - | - | - | 2,4% | 0,9% | - | 0,0% | 0,5% | 4,1%
Loans and advances | 0,0% | - | - | - | 1,9% | 0,7% | - | 0,0% | 0,4% | 3,2%
Debt securities, including UoP | - | - | - | - | 0,3% | 0,1% | - | 0,0% | 0,0% | 0,5%
Equity instruments | 0,0% | - |  | - | 0,2% | 0,1% |  | 0,0% | 0,0% | 0,4%
Households |  |  |  |  | 1,5% | 0,1% | - | - | - | 15,1%
of which loans collateralised by residential immovable property |  |  |  |  | 1,0% | 0,1% | - | - | - | 0,8%
of which building renovation loans |  |  |  |  | - | - | - | - | - | -
of which motor vehicles loans |  |  |  |  | 0,5% | - | - | - | - | 0,4%
Local government financing | - | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | - | -
Total GAR assets | 0,0% | - | - | - | 5,9% | 1,3% | - | 0,0% | 0,6% | 81,2%

290
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Template 3. GAR KPI stock - Capex based [FY 2023]

% (compared to total covered assets in the denominator) | 31/12/2023 | 31/12/2023
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Proportion of total covered assets funding to taxonomy-relevant sectors (taxonomy eligible) | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible)
| Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned) |  | Portion of total covered assets funding taxonomy-roprelevant sectors (taxonomy aligned)
|  | Of which use of proceeds | Of which transitional | Of which enabling |  |  | Of which use of proceeds | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 5,1% | 0,6% | - | 0,0% | 0,3% | 0,1% | 0,0% | - | 0,0%
Financial undertakings | 1,6% | 0,0% | - | 0,0% | 0,0% | 0,0% | - | - | -
Credit institutions | 1,5% | - | - | - | - | - | - | - | -
Loans and advances | 0,0% | - | - | - | - | - | - | - | -
Debt securities, including UoP | 1,5% | - | - | - | - | - | - | - | -
Equity instruments | 0,0% | - |  | - | - | - | - |  | -
Other financial corporations | 0,1% | 0,0% | - | 0,0% | 0,0% | 0,0% | - | - | -
of which investment firms | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - | - |  | -
of which management companies | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - | - |  | -
of which insurance undertakings | 0,0% | - | - | - | - | 0,0% | - | - | -
Loans and advances | - | - | - | - | - | 0,0% | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | -
Equity instruments | 0,0% | - |  | - | - | - | - |  | -
Non-financial undertakings | 1,5% | 0,5% | - | 0,0% | 0,3% | 0,1% | 0,0% | - | 0,0%
Loans and advances | 1,1% | 0,4% | - | 0,0% | 0,3% | 0,0% | 0,0% | - | 0,0%
Debt securities, including UoP | 0,3% | 0,1% | - | 0,0% | 0,0% | 0,0% | 0,0% | - | -
Equity instruments | 0,1% | 0,1% |  | 0,0% | 0,0% | 0,0% | - |  | -
Households | 2,0% | 0,1% | - | - | - | - | - | - | -
of which loans collateralised by residential immovable property | 1,4% | 0,1% | - | - | - | - | - | - | -
of which building renovation loans | - | - | - | - | - | - | - | - | -
of which motor vehicles loans | 0,5% | - | - | - | - |  |  |  |
Local government financing | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | -
Total GAR assets | 5,1% | 0,6% | - | 0,0% | 0,3% | 0,1% | 0,0% | - | 0,0%

291
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

% (compared to total covered assets in the denominator) | 31/12/2023 | Proportion of total assets covered
TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible)
| Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned)
|  | Of which use of proceeds | Of which transitional | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 5,2% | 0,7% | - | 0,0% | 0,3% | 24,1%
Financial undertakings | 1,7% | 0,0% | - | 0,0% | 0,0% | 5,1%
Credit institutions | 1,5% | - | - | - | - | 4,4%
Loans and advances | 0,0% | - | - | - | - | 0,1%
Debt securities, including UoP | 1,5% | - | - | - | - | 4,3%
Equity instruments | 0,0% | - |  | - | - | 0,0%
Other financial corporations | 0,1% | 0,0% | - | 0,0% | 0,0% | 0,7%
of which investment firms | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | -
of which management companies | - | - | - | - | - | 0,0%
Loans and advances | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | 0,0%
of which insurance undertakings | 0,0% | - | - | - | - | 0,0%
Loans and advances | 0,0% | - | - | - | - | 0,0%
Debt securities, including UoP | - | - | - | - | - | -
Equity instruments | 0,0% | - |  | - | - | 0,0%
Non-financial undertakings | 1,5% | 0,6% | - | 0,0% | 0,3% | 3,5%
Loans and advances | 1,1% | 0,4% | - | 0,0% | 0,3% | 2,5%
Debt securities, including UoP | 0,3% | 0,1% | - | 0,0% | 0,0% | 0,7%
Equity instruments | 0,1% | 0,1% |  | 0,0% | 0,0% | 0,2%
Households | 2,0% | 0,1% | - | - | - | 15,5%
of which loans collateralised by residential immovable property | 1,4% | 0,1% | - | - | - | 1,1%
of which building renovation loans | - | - | - | - | - | -
of which motor vehicles loans | 0,5% | - | - | - | - | 0,4%
Local government financing | - | - | - | - | - | -
Housing financing | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | -
Total GAR assets | 5,2% | 0,7% | - | 0,0% | 0,3% | 78,9%

292
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Template 3. GAR KPI stock - Turnover based [FY 2024]

% (compared to total covered assets in the denominator) | 31/12/2024 | 31/12/2024
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible) | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible)
| Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned) |  | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned)
|  | Of which use of proceeds | Of which transitional | Of which enabling |  |  | Of which use of proceeds | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 5,7% | 0,9% | - | 0,0% | 0,2% | 0,0% | 0,0% | - | 0,0%
Financial undertakings | 1,8% | 0,1% | - | 0,0% | 0,0% | 0,0% | 0,0% | - | 0,0%
Credit institutions | 1,2% | 0,1% | - | 0,0% | 0,0% | 0,0% | 0,0% | - | 0,0%
Loans and advances | 0,1% | 0,0% | - | 0,0% | 0,0% | 0,0% | 0,0% | - | -
Debt securities, including UoP | 1,1% | 0,1% | - | 0,0% | 0,0% | 0,0% | 0,0% | - | 0,0%
Equity instruments | 0,0% | 0,0% |  | 0,0% | 0,0% | 0,0% | 0,0% |  | 0,0%
Other financial corporations | 0,6% | 0,0% | - | 0,0% | 0,0% | 0,0% | 0,0% | - | -
of which investment firms | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - | - |  | -
of which management companies | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - | - |  | -
of which insurance undertakings | 0,0% | 0,0% | - | - | - | 0,0% | 0,0% | - | -
Loans and advances | 0,0% | 0,0% | - | - | - | 0,0% | 0,0% | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | -
Equity instruments | 0,0% | 0,0% |  | - | - | 0,0% | 0,0% |  | -
Non-financial undertakings | 2,3% | 0,6% | - | 0,0% | 0,1% | 0,0% | 0,0% | - | 0,0%
Loans and advances | 2,0% | 0,5% | - | 0,0% | 0,1% | 0,0% | 0,0% | - | 0,0%
Debt securities, including UoP | 0,3% | 0,1% | - | 0,0% | 0,0% | 0,0% | 0,0% | - | 0,0%
Equity instruments | 0,1% | 0,0% |  | 0,0% | 0,0% | 0,0% | 0,0% |  | 0,0%
Households | 1,5% | 0,1% | - | - | - | - | - | - | -
of which loans collateralised by residential immovable property | 1,0% | 0,1% | - | - | - | - | - | - | -
of which building renovation loans | - | - | - | - | - | - | - | - | -
of which motor vehicles loans | 0,5% | - | - | - |  |  |  |  |
Local government financing | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | -
Total GAR assets | 5,7% | 0,9% | - | 0,0% | 0,2% | 0,0% | 0,0% | - | 0,0%

293
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

% (compared to total covered assets in the denominator) | 31/12/2024 | 31/12/2024 | 31/12/2024
Water and marine resources (WTR) | Circular Economy (CE) | Pollution (PPC)
Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible) | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible) | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible)
| Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned) |  | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned) |  | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned)
|  | Of which use of proceeds | Of which enabling |  |  | Of which use of proceeds | Of which enabling |  |  | Of which use of proceeds | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | -
Financial undertakings | 0,0% | - | - | - | 0,0% | 0,0% | - | - | 0,0% | - | - | -
Credit institutions | 0,0% | - | - | - | 0,0% | - | - | - | 0,0% | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | 0,0% | - | - | -
Debt securities, including UoP | 0,0% | - | - | - | 0,0% | - | - | - | 0,0% | - | - | -
Equity instruments | 0,0% | - |  | - | 0,0% | - |  | - | 0,0% | - |  | -
Other financial corporations | 0,0% | - | - | - | 0,0% | 0,0% | - | - | 0,0% | - | - | -
of which investment firms | - | - | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | - |  | -
of which management companies | - | - | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | - |  | -
of which insurance undertakings | - | - | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | - |  | -
Non-financial undertakings | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | -
Loans and advances | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | -
Debt securities, including UoP | 0,0% | - | - | - | 0,0% | 0,0% | - | - | 0,0% | - | - | -
Equity instruments | - | - |  | - | 0,0% | - |  | - | 0,0% | - |  | -
Households |  |  |  |  | - | - | - | - |  |  |  |
of which loans collateralised by residential immovable property |  |  |  |  | - | - | - | - |  |  |  |
of which building renovation loans |  |  |  |  | - | - | - | - |  |  |  |
of which motor vehicles loans |  |  |  |  |  |  |  |  |  |  |  |
Local government financing | - | - | - | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | - | - | - | -
Total GAR assets | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | -

294
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

% (compared to total covered assets in the denominator) | 31/12/2024 | 31/12/2024 | Proportion of total assets covered
Biodiversity and Ecosystems (BIO) | TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible) | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible)
| Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned) |  | Portion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned)
|  | Of which use of proceeds | Of which enabling |  |  | Of which use of proceeds | Of which transitional | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 0,0% | - | - | - | 5,7% | 0,9% | - | 0,0% | 0,2% | 25,0%
Financial undertakings | 0,0% | - | - | - | 1,9% | 0,1% | - | 0,0% | 0,0% | 5,8%
Credit institutions | - | - | - | - | 1,2% | 0,1% | - | 0,0% | 0,0% | 4,6%
Loans and advances | - | - | - | - | 0,1% | 0,0% | - | 0,0% | 0,0% | 0,5%
Debt securities, including UoP | - | - | - | - | 1,1% | 0,1% | - | 0,0% | 0,0% | 4,0%
Equity instruments | - | - |  | - | 0,0% | 0,0% |  | 0,0% | 0,0% | 0,1%
Other financial corporations | 0,0% | - | - | - | 0,6% | 0,0% | - | 0,0% | 0,0% | 1,2%
of which investment firms | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | -
of which management companies | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | -
of which insurance undertakings | - | - | - | - | 0,0% | 0,0% | - | - | - | 0,0%
Loans and advances | - | - | - | - | 0,0% | 0,0% | - | - | - | 0,0%
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | 0,0% | 0,0% |  | - | - | 0,0%
Non-financial undertakings | 0,0% | - | - | - | 2,4% | 0,7% | - | 0,0% | 0,1% | 4,1%
Loans and advances | 0,0% | - | - | - | 2,0% | 0,5% | - | 0,0% | 0,1% | 3,2%
Debt securities, including UoP | - | - | - | - | 0,3% | 0,1% | - | 0,0% | 0,0% | 0,5%
Equity instruments | 0,0% | - |  | - | 0,1% | 0,0% |  | 0,0% | 0,0% | 0,4%
Households |  |  |  |  | 1,5% | 0,1% | - | - | - | 15,1%
of which loans collateralised by residential immovable property |  |  |  |  | 1,0% | 0,1% | - | - | - | 0,8%
of which building renovation loans |  |  |  |  | - | - | - | - | - | -
of which motor vehicles loans |  |  |  |  | 0,5% | - | - | - | - | 0,4%
Local government financing | - | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | - | -
Total GAR assets | 0,0% | - | - | - | 5,7% | 0,9% | - | 0,0% | 0,2% | 81,2%

295
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Template 3. GAR KPI stock - Turnover based [FY 2023]

% (compared to total covered assets in the denominator) | 31/12/2023 | 31/12/2023
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible) | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible)
| Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned) |  | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned)
|  | Of which use of proceeds | Of which transitional | Of which enabling |  |  | Of which use of proceeds | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 4,9% | 0,3% | - | 0,0% | 0,1% | 0,1% | 0,0% | - | -
Financial undertakings | 1,6% | 0,0% | - | - | 0,0% | 0,0% | - | - | -
Credit institutions | 1,5% | - | - | - | - | - | - | - | -
Loans and advances | 0,0% | - | - | - | - | - | - | - | -
Debt securities, including UoP | 1,5% | - | - | - | - | - | - | - | -
Equity instruments | 0,0% | - |  | - | - | - | - |  | -
Other financial corporations | 0,1% | 0,0% | - | - | 0,0% | 0,0% | - | - | -
of which investment firms | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - | - |  | -
of which management companies | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - | - |  | -
of which insurance undertakings | 0,0% | - | - | - | - | 0,0% | - | - | -
Loans and advances | - | - | - | - | - | 0,0% | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | -
Equity instruments | 0,0% | - |  | - | - | - | - |  | -
Non-financial undertakings | 1,3% | 0,2% | - | 0,0% | 0,1% | 0,0% | 0,0% | - | -
Loans and advances | 1,0% | 0,1% | - | 0,0% | 0,1% | 0,0% | - | - | -
Debt securities, including UoP | 0,2% | 0,1% | - | 0,0% | 0,0% | 0,0% | 0,0% | - | -
Equity instruments | 0,1% | 0,0% |  | 0,0% | 0,0% | 0,0% | - |  | -
Households | 2,0% | 0,1% | - | - | - | - | - | - | -
of which loans collateralised by residential immovable property | 1,4% | 0,1% | - | - | - | - | - | - | -
of which building renovation loans | - | - | - | - | - | - | - | - | -
of which motor vehicles loans | 0,5% | - | - | - | - |  |  |  |
Local government financing | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | -
Total GAR assets | 4,9% | 0,3% | - | 0,0% | 0,1% | 0,1% | 0,0% | - | -

296
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

% (compared to total covered assets in the denominator) | 31/12/2023 | Proportion of total assets covered
TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible)
| Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned)
|  | Of which use of proceeds | Of which transitional | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 5,0% | 0,3% | - | 0,0% | 0,1% | 24,1%
Financial undertakings | 1,6% | 0,0% | - | - | 0,0% | 5,1%
Credit institutions | 1,5% | - | - | - | - | 4,4%
Loans and advances | 0,0% | - | - | - | - | 0,1%
Debt securities, including UoP | 1,5% | - | - | - | - | 4,3%
Equity instruments | 0,0% | - |  | - | - | 0,0%
Other financial corporations | 0,1% | 0,0% | - | - | 0,0% | 0,7%
of which investment firms | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | -
of which management companies | - | - | - | - | - | 0,0%
Loans and advances | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | 0,0%
of which insurance undertakings | 0,0% | - | - | - | - | 0,0%
Loans and advances | 0,0% | - | - | - | - | 0,0%
Debt securities, including UoP | - | - | - | - | - | -
Equity instruments | 0,0% | - |  | - | - | 0,0%
Non-financial undertakings | 1,3% | 0,2% | - | 0,0% | 0,1% | 3,5%
Loans and advances | 1,0% | 0,1% | - | 0,0% | 0,1% | 2,5%
Debt securities, including UoP | 0,2% | 0,1% | - | 0,0% | 0,0% | 0,7%
Equity instruments | 0,1% | 0,0% |  | 0,0% | 0,0% | 0,2%
Households | 2,0% | 0,1% | - | - | - | 15,5%
of which loans collateralised by residential immovable property | 1,4% | 0,1% | - | - | - | 1,1%
of which building renovation loans | - | - | - | - | - | -
of which motor vehicles loans | 0,5% | - | - | - | - | 0,4%
Local government financing | - | - | - | - | - | -
Housing financing | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | -
Total GAR assets | 5,0% | 0,3% | - | 0,0% | 0,1% | 78,9%

297
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Template 4. GAR KPI flow - Capex based [FY 2024]

% (compared to flow of total eligible assets) | 31/12/2024 | 31/12/2024
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Proportion of total covered assets funding taxonomy relevant sectors (taxonomy eligible) | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible)
| Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned) |  | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned)
|  | Of which use of proceeds | Of which transitional | Of which enabling |  |  | Of which use of proceeds | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 6,1% | 1,1% | - | 0,0% | 0,7% | 0,0% | 0,0% | - | 0,0%
Financial undertakings | 5,0% | 0,7% | - | 0,0% | 0,4% | 0,0% | 0,0% | - | 0,0%
Credit institutions | 3,8% | 0,4% | - | 0,0% | 0,1% | 0,0% | 0,0% | - | 0,0%
Loans and advances | 3,6% | 0,4% | - | 0,0% | 0,1% | 0,0% | 0,0% | - | -
Debt securities, including UoP | 0,2% | 0,0% | - | 0,0% | 0,0% | 0,0% | 0,0% | - | 0,0%
Equity instruments | 0,0% | 0,0% |  | 0,0% | 0,0% | 0,0% | 0,0% |  | 0,0%
Other financial corporations | 1,2% | 0,2% | - | 0,0% | 0,2% | 0,0% | 0,0% | - | -
of which investment firms | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - | - |  | -
of which management companies | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - | - |  | -
of which insurance undertakings | 0,0% | 0,0% | - | - | - | 0,0% | 0,0% | - | -
Loans and advances | 0,0% | 0,0% | - | - | - | 0,0% | 0,0% | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | -
Equity instruments | 0,0% | 0,0% |  | - | - | 0,0% | 0,0% |  | -
Non-financial undertakings | 1,1% | 0,4% | - | 0,0% | 0,3% | 0,0% | 0,0% | - | 0,0%
Loans and advances | 0,9% | 0,3% | - | 0,0% | 0,2% | 0,0% | 0,0% | - | 0,0%
Debt securities, including UoP | 0,0% | 0,0% | - | - | 0,0% | 0,0% | 0,0% | - | 0,0%
Equity instruments | 0,1% | 0,1% |  | 0,0% | 0,0% | 0,0% | 0,0% |  | 0,0%
Households | 0,0% | 0,0% | - | - | - | - | - | - | -
of which loans collateralised by residential immovable property | 0,0% | 0,0% | - | - | - | - | - | - | -
of which building renovation loans | - | - | - | - | - | - | - | - | -
of which motor vehicles loans | 0,0% | - | - | - |  |  |  |  |
Local government financing | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | -
Total GAR assets | 6,1% | 1,1% | - | 0,0% | 0,7% | 0,0% | 0,0% | - | 0,0%

298
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

% (compared to flow of total eligible assets) | 31/12/2024 | 31/12/2024 | 31/12/2024
Water and marine resources (WTR) | Circular Economy (CE) | Pollution (PPC)
Proportion of total covered assets funding sectors (taxonomy eligible) | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible) | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible)
| Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned) |  | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned) |  | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned)
|  | Of which use of proceeds | Of which enabling |  |  | Of which use of proceeds | Of which enabling |  |  | Of which use of proceeds | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | -
Financial undertakings | 0,0% | - | - | - | 0,0% | - | - | - | - | - | - | -
Credit institutions | 0,0% | - | - | - | 0,0% | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | 0,0% | - | - | - | 0,0% | - | - | - | - | - | - | -
Equity instruments | 0,0% | - |  | - | 0,0% | - |  | - | - | - |  | -
Other financial corporations | - | - | - | - | 0,0% | - | - | - | - | - | - | -
of which investment firms | - | - | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | - |  | -
of which management companies | - | - | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | - |  | -
of which insurance undertakings | - | - | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | - |  | -
Non-financial undertakings | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | -
Loans and advances | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | -
Debt securities, including UoP | - | - | - | - | 0,0% | - | - | - | - | - | - | -
Equity instruments | 0,0% | 0,0% |  | - | 0,0% | 0,0% |  | - | 0,0% | 0,0% |  | -
Households |  |  |  |  | - | - | - | - |  |  |  |
of which loans collateralised by residential immovable property |  |  |  |  | - | - | - | - |  |  |  |
of which building renovation loans |  |  |  |  | - | - | - | - |  |  |  |
of which motor vehicles loans |  |  |  |  |  |  |  |  |  |  |  |
Local government financing | - | - | - | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | - | - | - | -
Total GAR assets | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | -

299
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

% (compared to flow of total eligible assets) | 31/12/2024 | 31/12/2024 | Proportion of total new assets covered
Biodiversity and Ecosystems (BIO) | TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible) | Proportion of total covered assets funding to taxonomy-relevant sectors (taxonomy eligible)
| Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned) |  | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned)
|  | Of which use of proceeds | Of which enabling |  |  | Of which use of proceeds | Of which transitional | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfTeligible for GAR calculation | 0,0% | - | - | - | 6,2% | 1,2% | - | 0,0% | 0,7% | 28,9%
Financial undertakings | - | - | - | - | 5,1% | 0,7% | - | 0,0% | 0,4% | 18,0%
Credit institutions | - | - | - | - | 3,8% | 0,4% | - | 0,0% | 0,1% | 15,7%
Loans and advances | - | - | - | - | 3,6% | 0,4% | - | 0,0% | 0,1% | 14,9%
Debt securities, including UoP | - | - | - | - | 0,2% | 0,0% | - | 0,0% | 0,0% | 0,8%
Equity instruments | - | - |  | - | 0,0% | 0,0% |  | 0,0% | 0,0% | 0,1%
Other financial corporations | - | - | - | - | 1,2% | 0,2% | - | 0,0% | 0,2% | 2,3%
of which investment firms | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | -
of which management companies | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | -
of which insurance undertakings | - | - | - | - | 0,0% | 0,0% | - | - | - | 0,0%
Loans and advances | - | - | - | - | 0,0% | 0,0% | - | - | - | 0,0%
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | 0,0% | 0,0% |  | - | - | 0,0%
Non-financial undertakings | 0,0% | - | - | - | 1,1% | 0,5% | - | 0,0% | 0,3% | 2,4%
Loans and advances | 0,0% | - | - | - | 1,0% | 0,4% | - | 0,0% | 0,2% | 2,1%
Debt securities, including UoP | - | - | - | - | 0,0% | 0,0% | - | - | 0,0% | 0,0%
Equity instruments | - | - |  | - | 0,1% | 0,1% |  | 0,0% | 0,0% | 0,3%
Households |  |  |  |  | 0,0% | 0,0% | - | - | - | 8,6%
of which loans collateralised by residential immovable property |  |  |  |  | 0,0% | 0,0% | - | - | - | 0,0%
of which building renovation loans |  |  |  |  | - | - | - | - | - | -
of which motor vehicles loans |  |  |  |  | 0,0% | - | - | - | - | 0,0%
Local government financing | - | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | - | -
Total GAR assets | 0,0% | - | - | - | 6,2% | 1,2% | - | 0,0% | 0,7% | 96,4%

300
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Template 4. KPI GAR flow - Turnover based [FY 2024]

% (compared to flow of total eligible assets) | 31/12/2024 | 31/12/2024
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible) | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible)
| Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned) |  | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned)
|  | Of which use of proceeds | Of which transitional | Of which enabling |  |  | Of which use of proceeds | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 5,8% | 0,6% | - | 0,0% | 0,2% | 0,0% | 0,0% | - | 0,0%
Financial undertakings | 4,7% | 0,4% | - | 0,0% | 0,1% | 0,0% | 0,0% | - | 0,0%
Credit institutions | 3,8% | 0,3% | - | 0,0% | 0,0% | 0,0% | 0,0% | - | 0,0%
Loans and advances | 3,6% | 0,3% | - | 0,0% | 0,0% | 0,0% | 0,0% | - | -
Debt securities, including UoP | 0,2% | 0,0% | - | 0,0% | 0,0% | 0,0% | 0,0% | - | 0,0%
Equity instruments | 0,0% | 0,0% |  | 0,0% | 0,0% | 0,0% | 0,0% |  | 0,0%
Other financial corporations | 0,9% | 0,0% | - | 0,0% | 0,0% | 0,0% | 0,0% | - | -
of which investment firms | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - | - |  | -
of which management companies | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - | - |  | -
of which insurance undertakings | 0,0% | 0,0% | - | - | - | 0,0% | 0,0% | - | -
Loans and advances | 0,0% | 0,0% | - | - | - | 0,0% | 0,0% | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | -
Equity instruments | 0,0% | 0,0% |  | - | - | 0,0% | 0,0% |  | -
Non-financial undertakings | 1,0% | 0,2% | - | 0,0% | 0,1% | 0,0% | 0,0% | - | 0,0%
Loans and advances | 1,0% | 0,2% | - | 0,0% | 0,1% | 0,0% | 0,0% | - | 0,0%
Debt securities, including UoP | 0,0% | 0,0% | - | - | 0,0% | 0,0% | 0,0% | - | 0,0%
Equity instruments | 0,1% | 0,0% |  | 0,0% | 0,0% | 0,0% | 0,0% |  | 0,0%
Households | 0,0% | 0,0% | - | - | - | - | - | - | -
of which loans collateralised by residential immovable property | 0,0% | 0,0% | - | - | - | - | - | - | -
of which building renovation loans | - | - | - | - | - | - | - | - | -
of which motor vehicles loans | 0,0% | - | - | - |  |  |  |  |
Local government financing | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | -
Total GAR assets | 5,8% | 0,6% | - | 0,0% | 0,2% | 0,0% | 0,0% | - | 0,0%

301
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

% (compared to flow of total eligible assets) | 31/12/2024 | 31/12/2024 | 31/12/2024
Water and marine resources (WTR) | Circular Economy (CE) | Pollution (PPC)
Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible) | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible) | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible)
| Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned) |  | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned) |  | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned)
|  | Of which use of proceeds | Of which enabling |  |  | Of which use of proceeds | Of which enabling |  |  | Of which use of proceeds | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | -
Financial undertakings | 0,0% | - | - | - | 0,0% | - | - | - | 0,0% | - | - | -
Credit institutions | 0,0% | - | - | - | 0,0% | - | - | - | 0,0% | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | 0,0% | - | - | - | 0,0% | - | - | - | 0,0% | - | - | -
Equity instruments | 0,0% | - |  | - | 0,0% | - |  | - | 0,0% | - |  | -
Other financial corporations | - | - | - | - | 0,0% | - | - | - | - | - | - | -
of which investment firms | - | - | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | - |  | -
of which management companies | - | - | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | - |  | -
of which insurance undertakings | - | - | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | - |  | -
Non-financial undertakings | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | -
Loans and advances | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | - | - | -
Equity instruments | 0,0% | 0,0% |  | - | 0,0% | 0,0% |  | - | 0,0% | 0,0% |  | -
Households |  |  |  |  | - | - | - | - |  |  |  |
of which loans collateralised by residential immovable property |  |  |  |  | - | - | - | - |  |  |  |
of which building renovation loans |  |  |  |  | - | - | - | - |  |  |  |
of which motor vehicles loans |  |  |  |  |  |  |  |  |  |  |  |
Local government financing | - | - | - | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | - | - | - | -
Other local govemment financing | - | - | - | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | - | - | - | -
Total GAR assets | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | - | 0,0% | 0,0% | - | -

302
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
As can be seen from Template 1, KPIs related to eligible and aligned Financial Guarantees and Assets under Management are zero; for this reason, like last year, Banca Ifis Group has not published Template 5 (KPI off-balance sheet exposures) with reference to the FY 2024.

% (compared to flow of total eligible assets) | 31/12/2024 | 31/12/2024 | Proportion of total new assets covered
Biodiversity and Ecosystems (BIO) | TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible) | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy eligible)
| Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned) |  | Proportion of total covered assets funding taxonomy-relevant sectors (taxonomy aligned)
|  | Of which use of proceeds | Of which enabling |  |  | Of which use of proceeds | Of which transitional | Of which enabling
GAR – Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 0,0% | - | - | - | 5,8% | 0,6% | - | 0,0% | 0,2% | 28,9%
Financial undertakings | - | - | - | - | 4,7% | 0,4% | - | 0,0% | 0,1% | 18,0%
Credit institutions | - | - | - | - | 3,8% | 0,3% | - | 0,0% | 0,0% | 15,7%
Loans and advances | - | - | - | - | 3,6% | 0,3% | - | 0,0% | 0,0% | 14,9%
Debt securities, including UoP | - | - | - | - | 0,2% | 0,0% | - | 0,0% | 0,0% | 0,8%
Equity instruments | - | - |  | - | 0,0% | 0,0% |  | 0,0% | 0,0% | 0,1%
Other financial corporations | - | - | - | - | 0,9% | 0,0% | - | 0,0% | 0,0% | 2,3%
of which investment firms | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | -
of which management companies | - | - | - | - | - | - | - | - | - | -
Loans and advances | - | - | - | - | - | - | - | - | - | -
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | - | - |  | - | - | -
of which insurance undertakings | - | - | - | - | 0,0% | 0,0% | - | - | - | 0,0%
Loans and advances | - | - | - | - | 0,0% | 0,0% | - | - | - | 0,0%
Debt securities, including UoP | - | - | - | - | - | - | - | - | - | -
Equity instruments | - | - |  | - | 0,0% | 0,0% |  | - | - | 0,0%
Non-financial undertakings | 0,0% | - | - | - | 1,1% | 0,2% | - | 0,0% | 0,1% | 2,4%
Loans and advances | 0,0% | - | - | - | 1,0% | 0,2% | - | 0,0% | 0,1% | 2,1%
Debt securities, including UoP | - | - | - | - | 0,0% | 0,0% | - | - | 0,0% | 0,0%
Equity instruments | - | - |  | - | 0,1% | 0,0% |  | 0,0% | 0,0% | 0,3%
Households |  |  |  |  | 0,0% | 0,0% | - | - | - | 8,6%
of which loans collateralised by residential immovable property |  |  |  |  | 0,0% | 0,0% | - | - | - | 0,0%
of which building renovation loans |  |  |  |  | - | - | - | - | - | -
of which motor vehicles loans |  |  |  |  | 0,0% | - | - | - | - | 0,0%
Local government financing | - | - | - | - | - | - | - | - | - | -
Housing financing | - | - | - | - | - | - | - | - | - | -
Other local govamment financing | - | - | - | - | - | - | - | - | - | -
Collateral obtained by taking possession: residential and commercial immovable properties | - | - | - | - | - | - | - | - | - | -
Total GAR assets | 0,0% | - | - | - | 5,8% | 0,6% | - | 0,0% | 0,2% | 96,4%

303
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
5.2.1 Annex XII to Delegated Regulation (EU) 2021/2178
For the purposes of reporting on the exposures of its nuclear and fossil gas related activities, Banca Ifis Group publishes the following templates with reference to the applicable KPIs for FY2024: GAR Stock and GAR Flow. For this reason, the Total Applicable KPI reported in the following models is equal to the Total Covered Assets (TCA) stock and the Total Covered Assets (TCA) flow, respectively, as reported in line 8 of Template 2 of Annex XII. Accordingly, in continuity with the previous year, for the purposes of compiling Template 4 and Template 5 of Appendix XII, the Group considered the Total Covered Asset (TCA) of Stock and the Total Covered Asset (TCA) of Flow as the denominator for the calculation of the percentage values.
In addition, as can be seen from Template 1 in Annex VI, the Group has not identified eligible/aligned activities related to Financial Guarantees and Asset Under Management. For this reason, Annex XII templates referring to these types of activities have not been reported.
The amounts shown in the Templates below are expressed in million Euro.
Template 1. Nuclear and fossil gas related activities [FY 2024]
Nuclear energy related activities

The undertakings carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facility that produce energy from nuclear processes with minimal waste from the fuel cycle. | YES
The undertakings carries out, funds or has exposures to the construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purpose of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technology. | YES
The undertakings carries out, funds or has exposures to the safe operation of existing nuclear installations that produce electricity or process heat, including for the purpose of district heating or industrial processes such as the hydrogen production from nuclear energy, as well as their safety upgrades. | YES

Fossil gas related activities

The undertakings carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuel . | YES
The undertakings carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels | YES
The undertakings carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. | YES

304
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Template 2. Taxonomy-aligned economic activities (denominator) - Capex based (Stock) [FY 2024]
Template 2. Taxonomy-aligned economic activities (denominator) - Turnover based (Stock) [FY 2024]

Row | Economic activities | Amount and proportion (the information is to be presented in monetary amounts and as percentages)
(CCM + CCA) | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Amount | % | Amount | % | Amount | %
1 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | - | - | - | - | -
2 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 14,0 | 0,1% | 14,0 | 0,1% | - | -
3 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,1 | 0,0% | 0,1 | 0,0% | - | -
4 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,1 | 0,0% | 0,1 | 0,0% | - | -
5 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0% | 0,0 | 0,0% | - | -
6 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | - | - | - | - | -
7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 130,7 | 1,1% | 129,5 | 1,1% | 1,2 | 0,0%
8 | Total applicable KPI | 11.436,2 | 100,0% | 11.436,2 | 100,0% | 11.436,2 | 100,0%

Row | Economic activities | Amount and proportion (the information is to be presented in monetary amounts and as percentages)
(CCM + CCA) | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Amount | % | Amount | % | Amount | %
1 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | - | - | - | - | -
2 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0% | 0,0 | 0,0% | - | -
3 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,3 | 0,0% | 0,3 | 0,0% | - | -
4 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | - | - | - | - | -
5 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0% | 0,0 | 0,0% | 0,0 | 0,0%
6 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | - | - | - | - | -
7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 98,8 | 0,9% | 98,5 | 0,9% | 0,3 | 0,0%
8 | Total applicable KPI | 11.436,2 | 100,0% | 11.436,2 | 100,0% | 11.436,2 | 100,0%

305
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Template 3. Taxonomy-aligned economic activities (numerator) - Capex based (Stock) [FY 2024]
Template 3. Taxonomy-aligned economic activities (numerator) - Turnover based (Stock) [FY 2024]

Row | Economic activities | Amount and proportion (the information is to be presented in monetary amounts and as percentages)
(CCM + CCA) | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Amount | % | Amount | % | Amount | %
1 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | - | - | - | - | - | -
2 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0,2 | 0,1% | 0,2 | 0,2% | - | -
3 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 3,1 | 2,2% | 3,1 | 2,2% | - | -
4 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0,1 | 0,0% | 0,1 | 0,0% | - | -
5 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0,1 | 0,0% | 0,1 | 0,0% | - | -
6 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0,0 | 0,0% | 0,0 | 0,0% | 0,0 | 0,2%
7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI | 141,3 | 97,6% | 140,1 | 97,6% | 1,2 | 99,8%
8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI | 144,8 | 100,0% | 143,6 | 100,0% | 1,2 | 100,0%

Row | Economic activities | Amount and proportion (the information is to be presented in monetary amounts and as percentages)
(CCM + CCA) | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Amount | % | Amount | % | Amount | %
1 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | - | - | - | - | - | -
2 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0,1 | 0,1% | 0,1 | 0,1% | - | -
3 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 5,2 | 5,3% | 5,2 | 5,3% | - | -
4 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0,0 | 0,0% | 0,0 | 0,0% | - | -
5 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0,2 | 0,2% | 0,1 | 0,1% | 0,1 | 28,6%
6 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | - | - | - | - | - | -
7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI | 93,6 | 94,5% | 93,4 | 94,5% | 0,2 | 71,4%
8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI | 99,1 | 100,0% | 98,8 | 100,0% | 0,3 | 100,0%

306
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Template 4. Taxonomy-eligible but not taxonomy-aligned economic activities, Capex based (Stock) [FY 2024]
Template 4. Taxonomy-eligible but not taxonomy-aligned economic activities, Turnover based (Stock) [FY 2024]

Row | Economic activities | Proportion (the information is to be presented in monetary amounts and as percentages)
(CCM + CCA) | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Amount | % | Amount | % | Amount | %
1 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | - | - | - | - | -
2 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | - | - | - | - | -
3 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0% | 0,0 | 0,0% | - | -
4 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,6 | 0,0% | 0,5 | 0,0% | 0,1 | 0,0%
5 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,3 | 0,0% | 0,3 | 0,0% | - | -
6 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | - | - | - | - | -
7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 523,1 | 4,6% | 515,7 | 4,5% | 7,3 | 0,1%
8 | Total amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activities in the denominator of the applicable KPI | 524,0 | 4,6% | 516,5 | 4,5% | 7,4 | 0,1%

Row | Economic activities | Proportion (the information is to be presented in monetary amounts and as percentages)
(CCM + CCA) | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Amount | % | Amount | % | Amount | %
1 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | - | - | - | - | -
2 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | - | - | - | - | -
3 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0% | 0,0 | 0,0% | - | -
4 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,7 | 0,0% | 0,7 | 0,0% | - | -
5 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,6 | 0,0% | 0,6 | 0,0% | - | -
6 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0% | 0,0 | 0,0% | - | -
7 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activities nlot referred to in rows 1 to 6 above in the denominator of the applicable KPI | 549,6 | 4,8% | 547,4 | 4,8% | 2,2 | 0,0%
8 | Total amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activities in the denominator of the applicable KPI | 551,0 | 4,8% | 548,7 | 4,8% | 2,2 | 0,0%

307
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Template 5. Taxonomy non-eligible economic activities - Capex based (Stock) [FY 2024]
Template 5. Taxonomy non-eligible economic activities - Turnover based (Stock) [FY 2024]

Row | Economic activities | Amount | Percentage
1 | Amount and propotion of the economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with section 4.26 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0%
2 | Amount and proportion of the economic activity referred to in row 2 of template 1 that is taxonomy-non-eligible in accordance with section 4.27 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0%
3 | Amount and proportion of the economic activity referred to in row 3 of template 1 that is taxonomy-non-eligible in accordance with section 4.28 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,2 | 0,0%
4 | Amount and proportion of the economic activity referred to in row 4 of template 1 that is taxonomy-non-eligible in accordance with section 4.29 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0%
5 | Amount and proportion of the economic activity in row 5 of template 1 that is taxonomy-non-eligible in accordance with section 4.30 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0%
6 | Amount and proportion of the economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with section 4.31 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0%
7 | Amount and proportion of other taxonomy-non-eligible economic activities not referred in rows 1 to 6 above in the denominator of the applicable KPI | 10.767,2 | 94,2%
8 | Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI | 10.767,4 | 94,2%

Row | Economic activities | Amount | Percentage
1 | Amount and proportion of the economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with section 4.26 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0%
2 | Amount and proportion of the economic activity referred to in row 2 of template 1 that is taxonomy-non-eligible in accordance with section 4.27 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | -
3 | Amount and proportion of the economic activity referred to in row 3 of template 1 that is taxonomy-non-eligible in accordance with section 4.28 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,3 | 0,0%
4 | Amount and proportion of the economic activity referred to in row 4 of template 1 that is taxonomy-non-eligible in accordance with section 4.29 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0%
5 | Amount and proportion of the economic activity in row 5 of template 1 that is taxonomy-non-eligible in accordance with section 4.30 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0%
6 | Amount and proportion of the economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with section 4.31 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0%
7 | Amount and proportion of other taxonomy-non-eligible economic activities not referred in rows 1 to 6 above in the denominator of the applicable KPI | 10.785,7 | 94,3%
8 | Total amount proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI | 10.786,1 | 94,3%

308
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Template 2. Taxonomy-aligned economic activities (denominator) - Capex based (Flow) [FY 2024]
Template 2. Taxonomy-aligned economic activities (denominator) - Turnover based (Flow) [FY 2024]

Row | Economic activities | Amount and proportion (the information is to be presented in monetary amounts and as percentages)
(CCM + CCA) | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Amount | % | Amount | % | Amount | %
1 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | - | - | 0,0% | - | 0,0%
2 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 2,1 | 0,0% | 2,1 | 0,0% | - | 0,0%
3 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,2 | 0,0% | 0,2 | 0,0% | - | 0,0%
4 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0% | 0,0 | 0,0% | - | 0,0%
5 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0% | 0,0 | 0,0% | - | 0,0%
6 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | - | - | 0,0% | - | 0,0%
7 | Amount and proportion of taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 544,0 | 1,1% | 541,9 | 1,1% | 2,1 | 0,0%
8 | Total applicable KPI | 48.641,8 | 100,0% | 48.641,8 | 100,0% | 48.641,8 | 100,0%

Row | Economic activities | Amount and proportion (the information is to be presented in monetary amounts and as percentages)
(CCM + CCA) | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Amount | % | Amount | % | Amount | %
1 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | - | - | - | - | -
2 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,1 | 0,0% | 0,1 | 0,0% | - | -
3 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 1,0 | 0,0% | 1,0 | 0,0% | - | -
4 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | - | - | - | - | -
5 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0% | 0,0 | 0,0% | 0,0 | 0,0%
6 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | - | - | - | - | -
7 | Amount and proportion of taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 286,8 | 0,6% | 286,4 | 0,6% | 0,4 | 0,0%
8 | Total applicable KPI | 48.641,8 | 100,0% | 48.641,8 | 100,0% | 48.641,8 | 100,0%

309
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Template 3. Taxonomy-aligned economic activities (numerator) - Capex based (Flow) [FY 2024]
Template 3. Taxonomy-aligned economic activities (numerator) - Turnover based (Flow) [FY 2024]

Row | Economic activities | Amount and proportion (the information is to be presented in monetary amounts and as percentages)
(CCM + CCA) | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Amount | % | Amount | % | Amount | %
1 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0,0 | 0,0% | 0,0 | 0,0% | - | -
2 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0,6 | 0,1% | 0,6 | 0,1% | - | -
3 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 4,5 | 0,8% | 4,5 | 0,8% | - | -
4 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0,1 | 0,0% | 0,1 | 0,0% | - | -
5 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0,1 | 0,0% | 0,1 | 0,0% | - | -
6 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0,0 | 0,0% | 0,0 | 0,0% | 0,0 | 0,1%
7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI | 541,0 | 99,0% | 538,9 | 99,0% | 2,1 | 99,9%
8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI | 546,2 | 100,0% | 544,1 | 100,0% | 2,1 | 100,0%

Row | Economic activities | Amount and proportion (the information is to be presented in monetary amounts and as percentages)
(CCM + CCA) | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Amount | % | Amount | % | Amount | %
1 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | - | - | - | - | - | -
2 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0,4 | 0,1% | 0,4 | 0,1% | - | -
3 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 6,8 | 2,3% | 6,8 | 2,4% | - | -
4 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0,0 | 0,0% | 0,0 | 0,0% | - | -
5 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0,1 | 0,0% | 0,1 | 0,0% | 0,1 | 16,4%
6 | Amount and proportion of taxonomy-aligned economic activity referred to in section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0,0 | 0,0% | 0,0 | 0,0% | - | -
7 | Amount and share proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI | 280,6 | 97,5% | 280,2 | 97,5% | 0,3 | 83,6%
8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI | 287,9 | 100,0% | 287,4 | 100,0% | 0,4 | 100,0%

310
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Template 4. Taxonomy-eligible but not taxonomy-aligned economic activities, Capex based (Flow) [FY 2024]
Template 4. Taxonomy-eligible but not taxonomy-aligned economic activities, Turnover based (Flow) [FY 2024]

Row | Economic activities | Amount and proportion (the information is to be presented in monetary amounts and as percentages)
(CCM + CCA) | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Amount | % | Amount | % | Amount | %
1 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | - | - | - | - | -
2 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | - | - | - | - | -
3 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0% | 0,0 | 0,0% | - | -
4 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 1,6 | 0,0% | 1,3 | 0,0% | 0,2 | 0,0%
5 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 11,3 | 0,0% | 11,3 | 0,0% | - | -
6 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0% | 0,0 | 0,0% | - | -
7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 2.444,6 | 5,0% | 2.434,7 | 5,0% | 9,9 | 0,0%
8 | Total amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activities in the denominator of the applicable KPI | 2.457,4 | 5,1% | 2.447,3 | 5,0% | 10,1 | 0,0%

Row | Economic activities | Amount and proportion (information is to be presented in monetary amounts and as percentages)
(CCM + CCA) | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA)
Amount | % | Amount | % | Amount | %
1 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | - | - | - | - | -
2 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | - | - | - | - | -
3 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,00 | 0,0% | 0,00 | 0,0% | - | -
4 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 1,8 | 0,0% | 1,8 | 0,0% | - | -
5 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 12,0 | 0,0% | 12,0 | 0,0% | - | -
6 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0% | 0,0 | 0,0% | - | -
7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 2.513,7 | 5,2% | 2.511,1 | 5,2% | 2,60 | 0,0%
8 | Total amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activities in the denominator of the applicable KPI | 2.527,6 | 5,2% | 2.525,0 | 5,2% | 2,60 | 0,0%

311
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Template 5. Taxonomy non-eligible economic activities - Capex based (Flow) [FY 2024]
Template 5. Taxonomy non-eligible economic activities - Turnover based (Flow) [FY 2024]

Row | Economic activities | Amount | Percentage
1 | Amount and proportion of the economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with section 4.26 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | -
2 | Amount and proportion of the economic activity referred to in row 2 of template 1 that is taxonomy-non-eligible in accordance with section 4.27 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0%
3 | Amount and proportion of the economic activity referred to in row 3 of template 1 that is taxonomy-non-eligible in accordance with section 4.28 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,4 | 0,0%
4 | Amount and proportion of the economic activity referred to in row 4 of template 1 that is taxonomy-non-eligible in accordance with section 4.29 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0%
5 | Amount and proportion of the economic activity in row 5 of template 1 that is taxonomy-non-eligible in accordance with section 4.30 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0%
6 | Amount and proportion of the economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with section 4.31 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0%
7 | Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 45.637,7 | 93,8%
8 | Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI | 45.638,1 | 93,8%

Row | Economic activities | Amount | Percentage
1 | Amount and proportion of the economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with section 4.26 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0%
2 | Amount and proportion of the economic activity referred to in row 2 of template 1 that is taxonomy-non-eligible in accordance with section 4.27 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | -
3 | Amount and proportion of the economic activity referred to in row 3 of template 1 that is taxonomy-non-eligible in accordance with section 4.28 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,8 | 0,0%
4 | Amount and proportion of the economic activity referred to in row 4 of template 1 that is taxonomy-non-eligible in accordance with section 4.29 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0%
5 | Amount and proportion of the economic activity in row 5 of template 1 that is taxonomy-non-eligible in accordance with section 4.30 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0%
6 | Amount and proportion of the economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with section 4.31 of Annexes I and II of Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0,0 | 0,0%
7 | Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 45.825,5 | 94,2%
8 | Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI | 45.826,3 | 94,2%

312
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
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 sustainability Statement, indicating their reference within the document.
Disclosure requirement
Sections in the 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
313
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Disclosure requirement
Sections in the Sustainability Statement
(Relevant 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 Objectives
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 (Relevant 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 Involvement 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 opportunities related to own workforce, and
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
314
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Disclosure requirement
Sections in the Sustainability Statement
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 Objectives
S1-6
Characteristics of the company's employees
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
S1-12
Persons 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
S1-16
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 (Relevant 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 opportunities related to value chain workers, and effectiveness of those actions
3.2.1 Worker-related rights in the value chain (Actions)
S2-5
Targets related to managing material negative impacts,advancing positive impacts, and managing material risks and opportunities
3.2.3 Objectives
ESRS S3 - Affected communities
ESRS 2, SBM-2
Interests and views of stakeholders
1.1.2 Strategy
315
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Disclosure requirement
Sections in the Sustainability Statement
ESRS 2, SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business model
3.1 S3 - Affected communities (Relevant 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 Involvement 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 Objectives
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 (Relevant impacts, risks and opportunities)
S4-1
Policies related to consumers and end-users
3.4.1 Access to (quality) information; 3.4.2 Confidentiality; 3.4.3 Access to products and services; 3.4.4 Responsible business practices (Approach and reference policies)
S4-2
Processes for engaging with consumers and end- users about impacts
3.4.5 Involvement processes
S4-3
Processes to remediate negative impacts and channels for consumers and end-users to raise concerns
3.4.6 Channels
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 Access to (quality) information; 3.4.2 Confidentiality; 3.4.3 Access to products and services; 3.4.4 Responsible business practices (Actions)
S4-5
Targets related to managing material negative impacts,advancing positive impacts, and managing material risks and opportunities
3.4.7 Objectives
ESRS G1 - Business conduct
316
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Disclosure requirement
Sections in the Sustainability Statement
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
317
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
[IRO-2 DP 56]
Disclosure Requirement and related datapoint
SFDR reference (1)
Pillar 3 reference (2)
Benchmark Regulation reference (3)
EU Climate Law reference (4)
Sections in the Sustainability Statement
ESRS 2 GOV-1
Board's gender diversity paragraph 21 (d)
X
X
1.1.3 Governance
ESRS 2 GOV-1
Percentage of board members who are independent paragraph 21 (e)
X
1.1.3 Governance
ESRS 2 GOV-4
Statement on due diligence paragraph 30
X
1.1.3 Governance
ESRS 2 SBM-1
Involvement in activities related to fossil fuel activities paragraph 40 (d) i
X
X
X
Not material
ESRS 2 SBM-1
Involvement in activities related to chemicals production paragraph 40 (d) ii
X
X
Not material
ESRS 2 SBM-1
Involvement in activities related to controversial weapons paragraph 40 (d) iii
X
X
Not material
ESRS 2 SBM-1
Involvement in activities related to cultivation and production of tobacco paragraph 40 d iv
X
Not material
ESRS E1-1
Transition Plan to reach climate neutrality by 2050 paragraph
X
2.2.1 Transition Plan
ESRS E1-1
Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g)
X
X
2.2.1 Transition Plan
ESRS E1-4
GHG emission reduction targets paragraph 34
X
X
X
2.2.3 Objectives
ESRS E1-5
Energy consumption from fossil fuels disaggregated by source (only high climate impact sectors) 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
54 Not material
ESRS E1-7
GHG removals and carbon credits, paragraph 56
X
Not material
ESRS E1-9
X
Phase-in
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Disclosure Requirement and related datapoint
SFDR reference (1)
Pillar 3 reference (2)
Benchmark Regulation reference (3)
EU Climate Law reference (4)
Sections in the Sustainability Statement
Exposure of the benchmark portfolio to climate-related physical risks paragraph 66
ESRS E1-9
Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a)
ESRS E1-9
Location of significant assets at material physical risk paragraph 66 (c)
X
Phase-in
ESRS E1-9
Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c)
X
Phase-in
ESRS E1-9
Degree of exposure of the portfolio to climate-related opportunities paragraph 69
X
Phase-in
ESRS E2-4
Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, 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 oceans and seas paragraph 14
X
Not material
ESRS E3-4
Total water recycled and reused, paragraph 28 (c)
X
Not material
ESRS E3-4
Total water consumption in m3 per net revenues on own operations paragraph 29
X
Not material
ESRS 2 SBM-3 - E4 paragraph 16 (a) i
X
Not material
ESRS 2 SBM-3 - E4 paragraph 16 (b)
X
Not material
ESRS 2 SBM-3 - E4 paragraph 16 (c)
X
Not material
ESRS E4-2
Sustainable land/agriculture practices or policies paragraph 24 (b)
X
Not material
ESRS E4-2
Sustainable oceans/seas practices or policies, paragraph 24 (c)
X
Not material
ESRS E4-2
Policies to address deforestation, paragraph 24 (d)
X
Not material
ESRS E5-5
Non-recycled waste paragraph 37 (d)
X
Not material
ESRS E5-5
X
Not material
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Disclosure Requirement and related datapoint
SFDR reference (1)
Pillar 3 reference (2)
Benchmark Regulation reference (3)
EU Climate Law reference (4)
Sections in the Sustainability Statement
Hazardous waste and radioactive waste paragraph 39
ESRS 2 – SBM3 – S1
Risk of incidents of forced labour paragraph 14 (f)
X
Not material
ESRS 2 – SBM3 – S1
Risk of incidents of child labour paragraph 14 (g)
X
Not material
ESRS S1-1
Human rights policy commitments paragraph 20
X
3.1.5 Working conditions (Approach and reference policies)
ESRS S1-1
Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21
X
3.1.5 Working conditions (Approach and reference policies)
ESRS S1-1
Process and measures for preventing trafficking in human beings paragraph 22
X
3.1.5 Working conditions (Approach and reference policies)
ESRS S1-1
Workplace accident prevention policy or management system paragraph 23
X
3.1.1 Health and safety (Approach and reference policies)
ESRS S1-3
Grievance/complaints handling mechanisms paragraph 32 (c)
X
3.1.8 Channels
ESRS S1-14
Number of fatalities and number and rate of work- related accidents paragraph 88 (b) and (c)
X
X
3.1.10 Metrics
ESRS S1-14
Number of days lost due to injuries, accidents, fatalities or illness paragraph 88 (e)
X
3.1.10 Metrics
ESRS S1-16
Unadjusted gender pay gap paragraph 97 (a)
X
X
3.1.10 Metrics
ESRS S1-16
Excessive CEO pay ratio paragraph 97 (b)
X
3.1.10 Metrics
ESRS S1-17
Incidents of discrimination paragraph 103 (a)
X
3.1.10 Metrics
ESRS S1-17
Non-respect of UNGPs on Business and Human Rights and OECD Guidelines paragraph 104 (a)
X
X
3.1.10 Metrics
ESRS 2 SBM-3 – S2
Significant risk of child labour or forced labour in the value chain paragraph 11 (b)
X
Not material
ESRS S2-1
Human rights policy commitments paragraph 17
X
3.2.1 Worker-related rights in the value chain (Approach and reference policies)
ESRS S2-1
Policies related to value chain workers paragraph 18
X
Not material
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Disclosure Requirement and related datapoint
SFDR reference (1)
Pillar 3 reference (2)
Benchmark Regulation reference (3)
EU Climate Law reference (4)
Sections in the Sustainability Statement
ESRS S2-1
Non-respect of UNGPs on Business and Human Rights principles and OECD Guidelines paragraph 19
X
X
3.2.1 Worker-related rights in the value chain (Approach and reference policies)
ESRS S2-1
Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, 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 connected to its upstream and downstream value chain paragraph 36
X
3.2.1 Worker-related rights in the value chain (Actions)
ESRS S3-1
Human rights policy commitments paragraph 16
X
3.3.1 Commitment to affected communities (Approach and reference policies)
ESRS S3-1
Non-respect of UNGPs on Business and Human Rights, ILO principles or and 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 Confidentiality (Approach and reference policies)
ESRS S4-1
Non-respect of UNGPs on Business and Human Rights and OECD Guidelines paragraph 17
X
X
3.4.2 Confidentiality (Approach and reference policies)
ESRS S4-4
Human rights issues and incidents, paragraph 35
X
3.4.4 Responsible business practices (Actions)
ESRS G1-1
United Nations Convention against Corruption paragraph 10 (b)
X
Not material
ESRS G1-1
Protection of whistleblowers, paragraph 10 (d)
X
Not material
ESRS G1-4
Fines for violation of anti- corruption and anti-bribery laws paragraph 24 (a)
X
X
4.1.6 Metrics
ESRS G1-4
Standards of anti- corruption and anti- bribery paragraph 24 (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).
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
(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).
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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 2024 in the form of a separate report from the Directors' Report on the Group, approved by the Board of Directors on 6 March 2025 and published together with the Consolidated Financial Statements for the year ended 31 December 2024. 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 "2024 Report on Remuneration Policy and Remuneration Paid", drafted pursuant to Article 123 ter of the TUF, where the remuneration policy valid for FY 2024 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.
Parent company management and coordination
Pursuant to Articles 2497 to 2497 sexies of the Italian Civil Code, it should be noted that the parent company La Scogliera S.A. 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 La Scogliera's corporate purpose.
Transactions on treasury shares
At 31 December 2023, Banca Ifis held 1.343.018 treasury shares recognised at a market value of 21,8 million Euro and a nominal amount of 1.343.018 Euro.
In 2024, Banca Ifis, as variable pay, awarded the Top Management 104.132 treasury shares at an average price of 12,32 Euro, for a total of 1,3 million Euro and a nominal amount of 104.132 Euro, making profits of 437 thousand Euro that, in application of the provisions of Bank of Italy Circular no. 262/2005 and subsequent updates, were recognised under the equity reserve “Issue premiums”.
During the year, there were no further transactions on treasury shares other than those mentioned above.
Considering the above operations, the stock at the end of the year was 1.238.886 treasury shares, with an equivalent value of 21,0 million Euro and a nominal amount of 1.238.886 Euro.
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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
It should be noted that the Banca Ifis Group does not hold, directly or indirectly, any shares in the parent company 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 2024, 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 2024, the Banca Ifis Group did not carry out atypical or unusual transactions as defined by Consob Communication No. 6064293 of 28 July 2006.
The Bank's offices
The Company 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 2024, the Banca Ifis Group had 2.013 employees (1.940 at 31 December 2023). Below is a breakdown of the workforce by classification level.

GROUP EMPLOYEES BY CLASSIFICATION LEVEL | 31.12.2024 | 31.12.2023 | CHANGES
Number | % | Number | % | Number | %
Senior managers | 99 | 4,9% | 100 | 5,2% | (1) | (1,0)%
Middle managers | 653 | 32,4% | 608 | 31,3% | 45 | 7,4%
Clerical staff | 1.261 | 62,6% | 1.232 | 63,5% | 29 | 2,4%
Total Group employees | 2.013 | 100,0% | 1.940 | 100,0% | 73 | 3,8%

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Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Research and development activities
Due to its business, the Group did not implement any research and development programmes during the year.
Venice - Mestre, 6 March 2025
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.
325
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Consolidated Financial Statements
326
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
327
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Consolidated Statement of Financial Position

| ASSETS (in thousands of Euro) | 31.12.2024 | 31.12.2023
10. | Cash and cash equivalents | 505.016 | 857.533
20. | Financial assets measured at fair value through profit or loss | 249.101 | 234.878
| a) financial assets held for trading | 12.069 | 12.896
| c) other financial assets mandatorily measured at fair value | 237.032 | 221.982
30. | Financial assets measured at fair value through other comprehensive income | 701.830 | 749.176
40. | Financial assets measured at amortised cost | 11.513.781 | 11.259.701
| a) receivables due from banks | 703.763 | 637.567
| b) receivables due from customers | 10.810.018 | 10.622.134
50. | Hedging derivatives | 7.404 | -
70. | Equity investments | 24 | 24
90. | Property, plant and equipment | 166.665 | 143.255
100. | Intangible assets | 85.488 | 76.667
| of which: |  |
| - goodwill | 38.020 | 38.020
110. | Tax assets: | 213.464 | 285.435
| a) current | 42.033 | 46.601
| b) deferred | 171.431 | 238.834
130. | Other assets | 382.965 | 444.692
| Total assets | 13.825.738 | 14.051.361

328
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

| LIABILITIES AND EQUITY(in thousands of Euro) | 31.12.2024 | 31.12.2023
10. | Financial liabilities measured at amortised cost | 11.597.750 | 11.820.658
| a) payables due to banks | 1.443.250 | 2.717.139
| b) payables due to customers | 7.001.763 | 5.814.624
| c) debt securities issued | 3.152.737 | 3.288.895
20. | Financial liabilities held for trading | 13.765 | 14.005
40. | Hedging derivatives | 14.868 | 11.644
60. | Tax liabilities: | 51.924 | 57.717
| a) current | 23.345 | 26.025
| b) deferred | 28.579 | 31.692
80. | Other liabilities | 339.377 | 387.554
90. | Post-employment benefits | 7.569 | 7.906
100. | Provisions for risks and charges: | 52.339 | 58.178
| a) commitments and guarantees granted | 5.559 | 5.374
| b) pensions and similar obligations | 231 | 196
| c) other provisions for risks and charges | 46.549 | 52.608
120. | Valuation reserves | (28.144) | (39.215)
150. | Reserves | 1.543.729 | 1.505.424
155. | Interim dividends (-) | (63.084) | (62.962)
160. | Share premiums | 85.391 | 84.108
170. | Share capital | 53.811 | 53.811
180. | Treasury shares (-) | (20.971) | (21.817)
190. | Equity attributable to non-controlling interests (+/-) | 15.836 | 14.240
200. | Profit (loss) for the year (+/-) | 161.578 | 160.110
| Total liabilities and equity | 13.825.738 | 14.051.361

329
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Consolidated Income Statement

| ITEMS(in thousands of Euro) | 31.12.2024 | 31.12.2023
10. | Interest receivable and similar income | 835.367 | 774.427
| of which: interest income calculated using the effective interest method | 817.699 | 768.011
20. | Interest due and similar expenses | (433.349) | (343.059)
30. | Net interest income | 402.018 | 431.368
40. | Commission income | 111.574 | 112.271
50. | Commission expense | (19.799) | (14.050)
60. | Net commission income | 91.775 | 98.221
70. | Dividends and similar income | 12.543 | 16.172
80. | Net profit (loss) from trading | (1.924) | (5.306)
90. | Net result from hedging | (1.140) | (100)
100. | Profit (loss) from sale or buyback of: | 40.934 | 16.585
| a) financial assets measured at amortised cost | 32.666 | 12.902
| b) financial assets measured at fair value through other comprehensive income | 8.204 | 2.656
| c) financial liabilities | 64 | 1.027
110. | Net result of other financial assets and liabilities measured at fair value through profit or loss | 24.127 | 13.245
| b) other financial assets mandatorily measured at fair value | 24.127 | 13.245
120. | Net banking income | 568.333 | 570.185
130. | Net credit risk losses/reversals on: | 93.397 | 79.257
| a) financial assets measured at amortised cost | 92.914 | 79.337
| b) financial assets measured at fair value through other comprehensive income | 483 | (80)
150. | Net profit (loss) from financial activities | 661.730 | 649.442
180. | Net profit (loss) from financial and insurance activities | 661.730 | 649.442
190. | Administrative expenses: | (426.136) | (424.659)
| a) personnel expenses | (169.852) | (163.802)
| b) other administrative expenses | (256.284) | (260.857)
200. | Net allocations to provisions for risks and charges | (726) | (4.111)
| a) commitments and guarantees granted | (248) | 3.810
| b) other net allocations | (478) | (7.921)
210. | Net impairment losses/reversals on property, plant and equipment | (12.215) | (9.721)
220. | Net impairment losses/reversals on intangible assets | (11.061) | (7.985)
230. | Other operating income/expenses | 33.750 | 33.605
240. | Operating costs | (416.388) | (412.871)
280. | Gains (losses) on disposal of investments | - | 986
290. | Pre-tax profit (loss) for the period from continuing operations | 245.342 | 237.557
300. | Income taxes for the year relating to current operations | (82.168) | (75.641)
330. | Profit (loss) for the year | 163.174 | 161.916
340. | Profit (loss) for the year attributable to non-controlling interests | (1.596) | (1.806)
350. | Profit (loss) for the year attributable to the Parent company | 161.578 | 160.110

330
Banca Ifis Group | 2024 Consolidated Financial Statements and Report

Earnings per share and diluted earnings per share | 31.12.2024 | 31.12.2023
Earnings per share (EPS) | 3,08 | 3,05
Diluted earnings per share (EPS) | 3,03 | 3,05

Consolidated Statement of Comprehensive Income
ITEMS(in thousands of Euro)
31.12.2024
31.12.2023
10.
Profit (loss) for the year
163.174
161.916
Other comprehensive income, net of taxes, not to be reclassified to profit or loss
(3.657)
(4.561)
20.
Equity securities measured at fair value through other comprehensive income
(3.788)
(4.466)
40.
Hedging of equity securities measured at fair value through other comprehensive income
(153)
-
70.
Defined benefit plans
284
(95)
Other comprehensive income, net of taxes, to be reclassified to profit or loss
3.102
19.815
120.
Exchange differences
709
2.994
150.
Financial assets (other than equity securities) measured at fair value through other comprehensive income
2.393
16.821
200.
Other comprehensive income, net of taxes
(555)
15.254
210.
Comprehensive income (Item 10 + 200)
162.619
177.170
220.
Consolidated comprehensive income attributable to non-controlling interests
(1.597)
(1.806)
230.
Consolidated comprehensive income attributable to the Parent company
161.022
175.364
331
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Consolidated Statement of Changes in Equity as 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

332
Banca Ifis Group | 2024 Consolidated Financial Statements and Report
Consolidated Statement of Changes in Equity as at 31 December 2023
(in thousands of Euro)
Balance at 31.12.2022
Change in opening balances
Balance at 01.01.2023
Allocation of profit from previous year
Changes during the year
Consolidated equity at 31.12.2023
Group equity at
31.12.2023
Equity attributable to non-controlling interest at
31.12.2023
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 | 59.587 | X | 59.587 | - | X | X | - | - | X | X | X | X | X | 2 | X | 59.589 | 53.811 | 5.778
b) other shares | - | X | - | - | X | X | - | - | X | X | X | X | X | - | X | - | - | -
Share premiums | 85.387 | X | 85.387 | - | X | 287 | 54 | X | X | X | X | X | X | - | X | 85.728 | 84.108 | 1.620
Reserves: | X | X | X | X | X | X | X | X | X | X | X | X | X | X | X | X | X | X
a) retained earnings | 1.431.977 | - | 1.431.977 | 68.469 | X | (3.820) | - | - | X | - | X | X | X | - | X | 1.496.626 | 1.492.646 | 3.980
b) other | 13.184 | - | 13.184 | - | X | (477) | - | X | X | - | X | - | 1.108 | - | X | 13.815 | 12.778 | 1.037
Valuation reserves | (59.704) | - | (59.704) | X | X | 5.253 | X | X | X | X | X | X | X | - | 15.254 | (39.197) | (39.215) | 18
Equity instruments | - | X | - | X | X | X | X | X | X | X | - | X | X | - | X | - | - | -
Interim dividends | (52.433) | X | (52.433) | X | 52.433 | X | X | X | (62.962) | X | X | X | X | X | X | (62.962) | (62.962) | -
Treasury shares | (22.104) | X | (22.104) | X | X | X | 287 | - | X | X | X | X | X | X | X | (21.817) | (21.817) | -
Profit (loss) for the year | 141.887 | - | 141.887 | (68.469) | (73.418) | X | X | X | X | X | X | X | X | X | 161.916 | 161.916 | 160.110 | 1.806
Consolidated equity | 1.597.781 | - | 1.597.781 | - | (20.985) | 1.243 | 341 | - | (62.962) | - | - | - | 1.108 | 2 | 177.170 | 1.693.699 | X | X
Group equity | 1.585.349 | - | 1.585.349 | - | (20.985) | 1.243 | 341 | - | (62.962) | - | - | - | 1.108 | - | 175.364 | 1.679.459 | 1.679.459 | X
Equity attributable to non-controlling interests | 12.432 | - | 12.432 | - | - | - | - | - | - | - | - | - | - | 2 | 1.806 | 14.240 | X | 14.240

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Consolidated Cash Flow Statement

CONSOLIDATED CASH FLOW STATEMENTIndirect method (in thousands of Euro) | Amount31.12.2024 | 31.12.2023
A. OPERATING ACTIVITIES |  |
1. Operations | 162.924 | 180.072
- profit (loss) for the year (+/-) | 163.174 | 161.916
- profit/loss on financial assets held for trading and on other financial assets/liabilities measured at fair value through profit or loss (-/+) | (22.203) | (7.939)
- gains/losses on hedging (-/+) | 1.140 | 100
- net credit risk losses/reversals (+/-) | (93.397) | (79.257)
- net impairment losses/reversals on property, plant and equipment and intangible assets (+/-) | 23.276 | 17.706
- net allocations to provisions for risks and charges and other expenses/income (+/-) | 7.968 | 10.930
- unpaid taxes, duties and tax credits (+/-) | 82.168 | 75.641
- other adjustments (+/-) | 798 | 975
2. Cash flows generated/absorbed by financial assets | (56.458) | (248.110)
- financial assets held for trading | 4.449 | (4.119)
- other assets mandatorily measured at fair value | 9.077 | (13.517)
- financial assets measured at fair value through other comprehensive income | 47.274 | (31.138)
- financial assets measured at amortised cost | (163.560) | (204.295)
- other assets | 46.302 | 4.959
3. Cash flows generated/absorbed by financial liabilities | (297.987) | 513.447
- financial liabilities measured at amortised cost | (226.334) | 541.497
- financial liabilities held for trading | (5.841) | (11.977)
- other liabilities | (65.812) | (16.073)
Net cash flows generated/absorbed by operating activities (+/-) | (191.521) | 445.409
B. INVESTING ACTIVITIES |  |
1. Cash flows generated by | - | 1.900
- sale of property, plant and equipment | - | 1.900
2. Cash flows absorbed by | (50.659) | (107.753)
- purchases of property, plant and equipment | (32.199) | (24.296)
- purchases of intangible assets | (18.460) | (20.388)
- purchases of subsidiaries and business units | - | (63.069)
Net cash flows generated/absorbed by investing activities (+/-) | (50.659) | (105.853)
C. FINANCING ACTIVITIES |  |
- distribution of dividends and other (*) | (110.337) | (85.157)
Net cash flows generated/absorbed by financing activities (+/-) | (110.337) | (85.157)
NET CASH GENERATED/USED DURING THE YEAR | (352.517) | 254.399

RECONCILIATION

OPENING CASH AND CASH EQUIVALENTS | 857.533 | 603.134
TOTAL NET CASH GENERATED/USED DURING THE YEAR | (352.517) | 254.399
CASH AND CASH EQUIVALENTS: EFFECT OF CHANGES IN EXCHANGE RATES | - | -
CLOSING CASH AND CASH EQUIVALENTS | 505.016 | 857.533

(*) The balances in this item represent the cash outflow for dividend payments in the respective years. Specifically, the balance relating to FY 2024 includes both the distribution 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 on 2024 earnings. The balance relating to FY 2023 instead includes both the distribution of the balance of the dividend on 2022 earnings (i.e. the amount in excess of what has already been distributed as an interim dividend during 2022) and the distribution of the interim dividend on 2023 earnings.
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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) | 31.12.2023 | Cash flows | Non-monetary changes | 31.12.2024
Change in fair value | Other
Liabilities from financing activities (liability items 10 - 20 - 30) | 11.834.663 | (232.175) | (240) | 9.267 | 11.611.515

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Notes to the Consolidated Financial Statements
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Part A - Accounting policies
A.1 - General part
Section 1 - Statement of compliance with international accounting standards
The Consolidated financial statements at 31 December 2024 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 2024 (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 2024 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:
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•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;
•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 2024, the financial statements provide comparative information for the last approved financial statements as at 31 December 2023.
It should be noted that in relation to the acquisition of Revalea S.p.A. finalised on 31 October 2023 and its entry into the scope of consolidation (initially as a standalone company and thereafter as an incorporated company following the merger by incorporation of Revalea into Ifis Npl Investing in 2024), the figures for the year and in particular the income statement figures may not be fully comparable with those of the previous year. However, it should be noted that in the comments to the individual items, the contribution of the company acquired is presented, where relevant.
The currency of account is the Euro and, if not indicated otherwise, amounts are expressed in thousands of 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 2024 have remained substantially unchanged from those adopted for the preparation of the 2023 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 2024, adjusted, where necessary, to adapt them to the accounting standards used by the Group.
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:
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•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 balance sheet, C - Information on the consolidated income statement, D - Consolidated comprehensive income, E - Information on risks and related hedging policies, F - Information on consolidated assets, 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.
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.
Unlike in the past, present conditions on financial markets and in the real economy, together with the negative short-term forecasts, require particularly accurate assessments of the going concern assumption, as records of the Group's 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
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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 2024 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 2024 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.
1. Equity investments in exclusively controlled companies

COMPANY NAME | HEAD OFFICE | REGISTERED OFFICE | TYPE (1) | INVESTMENT | VOTING RIGHTS % (2)
PARTICIPATINGPARTICIPANT | 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%
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. | 87,74% | 87,74%
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%

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 the subsidiaries included in the scope of consolidation as of 31 December 2024, as illustrated below, compared to the situation as of the end of 2023, the only change relates to the merger by incorporation of
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Revalea S.p.A. into Ifis Npl Investing S.p.A. finalised in 2024 (for further details, see "Part G - Business combinations").
With specific reference to the former Revalea, acquired on 31 October 2023 and merged by incorporation into Ifis Npl Investing in 2024, it is specified that the allocation of the acquisition cost, equal to 100 million Euro, through the recognition at fair value of the assets and liabilities of the acquired entity, including any intangible assets not previously recognised in these Consolidated financial statements, can now be considered as definitive. The provisional allocation made for recognition in the Consolidated Financial Statements at 31 December 2023 is confirmed.
The table below shows the final allocation of the purchase price.

Description(in thousands of Euro) | Carrying amount at 31.10.2023 | Fair value adjustment | Assets and liabilities acquired at 31.10.2023
Cash and cash equivalents | 36.932 | - | 36.932
Financial assets measured at amortised cost | 229.604 | (18.842) | 210.762
Property, plant and equipment | 39 | - | 39
Intangible assets | 299 | (299) | -
Tax assets | 7.539 | 6.784 | 14.323
Other assets | 1.390 | (1.231) | 159
Assets acquired | 275.803 | (13.588) | 262.215
Financial liabilities at amortised cost | (153.163) | 6.999 | (146.164)
Tax liabilities | (68) | (2.315) | (2.383)
Other liabilities | (3.903) | - | (3.903)
Post-employment benefits | (199) | - | (199)
Provisions for risks and charges | (887) | (142) | (1.029)
Liabilities assumed | (158.220) | 4.542 | (153.678)
Net assets (A) | 117.583 | (9.046) | 108.537
Price of the acquisition, disbursed using liquid funds (B) | 100.001
Non-controlling interests (C) | -
Negative value difference (gain on bargain purchase) from the acquisition (D=B+C-A) | (8.536)
Analysis of acquisition cash flow |
Price of the acquisition, disbursed using liquid funds | (100.001)
Net funds acquired with the subsidiary (included in cash flows of investments) | 36.932
Net cash flow from acquisition | (63.069)

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.
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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;
•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.
More specifically, the structured entities that required consolidation for the purposes of the Consolidated Financial Statements as at 31 December 2024 are represented by certain vehicle companies of securitisation transactions originated by Group companies. 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, with the exception of the vehicle Ifis NPL 2021-1 SPV S.r.l. for which the Group holds the majority of the shares, are not companies legally belonging to the Banca Ifis Group (in this regard, see the section entitled “The Banca Ifis Group”, where such SPVs are not included).
The profit (loss) for the year and each of the other components of comprehensive income are attributed to the shareholders of the parent company and minority interests, even if this implies that the minority interests have a negative balance. When necessary, appropriate adjustments are made to the accounts of the subsidiaries, in order
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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 period attributable to non-controlling interests”, “Consolidated comprehensive income attributable to non-controlling interests”.
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.
Company under significant influence
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 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.
At 31 December 2024, the companies subject to significant influence are Justlex Italia S.T.A.P.A. and Redacta S.T.A.a.r.l. with a shareholding of 20% and 33% respectively. With regard to the company The Street S.r.l., whose 25% stake was acquired by the Parent Company Banca Ifis in September 2024, following internal investigations conducted in particular in respect of the voting rights attached to the company's shares and its governance
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structure, it was deemed that, despite the fact that the stake subscribed exceeds the 20% threshold set by IAS 28 as a presumption of significant influence, there are no elements that could lead to significant influence by the Banca Ifis Group.
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. | 12,26% | 12,26% | -

(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 equivalents | Financial assets | Property, plant and equip-ment and intangible assets | Financial liabilities | Equity | Net interest income | Net banking income | Operating costs | Pre-tax profit (loss) for the period from continuing operations | Profit (loss) from current operations after tax | Profit (loss) of disposal groups, net of taxes | Profit (loss) for the year(1) | Other compre-hensive income, net of taxes(2) | Compre-hensive income(3)=(1) + (2)
Banca Credifarma S.p.A. | 719.482 | 2.450 | 700.781 | 973 | 549.831 | 129.154 | 31.132 | 36.734 | (15.593) | 19.737 | 13.020 | - | 13.020 | 6 | 13.026

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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 2024.
Section 4 - Subsequent events
No significant events occurred in the period between the reporting date (31 December 2024) and the date of approval of the draft Financial Statements by the Board of Directors (6 March 2025), 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.
Section 5 - Other aspects
Highlights for 2024 financial statement assessments
On 24 October 2024, ESMA published an information notice ('European common enforcement priorities for 2024 annual financial reports') containing certain topics and recommendations with reference to:
•the preparation of financial reporting for FY 2024, in respect of:
–liquidity considerations;
–significant accounting policies, valuations and estimates;
•the preparation of sustainability reporting for FY 2024, in relation to:
–materiality considerations in reporting according to ESRS;
–scope and structure of sustainability reporting;
–information on Article 8 of the Taxonomy Regulation;
•ESEF (European Single Electronic Format) reporting on common errors detected in the balance sheet;
•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 purpose of preparing the financial information contained in the 2024 Financial Statements and for the related disclosure, in line with the recommendations provided by ESMA, in its communication of 24 October 2024 entitled "European Common Enforcement Priorities for 2024 corporate reporting", and by Consob in its communication of 20 December 2024 entitled "Climate disclosure provided in financial statements". With regard to recommendations in the area of sustainability reporting, please refer to the 'Sustainability Statement' section of the Directors’ Report on the Group.
Liquidity considerations
As regards the aspects connected with liquidity and related risks, the Banca Ifis Group is constantly striving to improve the state of its financial resources, in terms of both size and cost, so as to have available liquidity reserves adequate for current and future business volumes.
The objective of the Group's operational liquidity management is to ensure the Banca Ifis Group's ability to meet its cash payment commitments over the short-term time horizon. The essential condition for normal business continuity in banking is the maintenance of a sustainable imbalance between cash inflows and outflows in the short term. From a management point of view, the reference metric in this respect is the difference between the net cumulative cash flow and the Counterbalancing Capacity, i.e. the liquidity reserve to cope with short-term stress conditions, in addition to the regulatory measure of the Liquidity Coverage Ratio (LCR). From a very short-
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term perspective, the Group adopts the intraday liquidity analysis and monitoring system with the aim of ensuring the normal development of the Bank's treasury day and its ability to meet its intraday payment commitments.
The Group's structural liquidity management aims to ensure the financial balance of the structure by maturity over the time horizon of more than one year. Maintaining an adequate ratio of medium- to long-term liabilities to assets is aimed at avoiding pressure on short-term funding sources, both current and prospective. The reference metrics refer to the regulatory indicator of the Net Stable Funding Ratio (NSFR) and, management-wise, to the gap ratios, which measure both the ratio of total funding and loans with maturities over 1 year and over 3 and 5 years.
At 31 December 2024, the Banca Ifis Group financial sources mainly consisted of equity, on-line funding (Rendimax product), consisting of on-demand and time deposits, medium/long-term bonds issued as part of the EMTN programme, medium/long-term securitisation transactions, as well as funding from corporate customers. Funding in the form of repurchase agreements, entered into with leading banks, continued to be a significant source of funding in 2024. Finally, with regard to Eurosystem funding (TLTROs, LTROs and MROs), in the first half of 2024, a total of 1,1 billion Euro was repaid in advance in the TLTRO at nominal amount, reducing the amount still outstanding (which amounted to 1,6 billion Euro as at 31 December 2023) to a residual 0,4 billion Euro, which was then repaid in full at maturity in September 2024. In December 2024, the Parent Company also participated in a new MRO transaction for 400 million Euro maturing on 8 January 2025.
The Group's activities in terms of liquidity consist of factoring operations, which focus mainly on trade receivables and receivables due from Italy's public administration maturing within the year, and medium/long-term receivables deriving mainly from Leasing, Corporate banking, Structured Finance and Workout, Restructuring & Recovery operations; security portfolio management, mainly comprising eligible and readily liquid Italian government securities are also important.
As for the Group's operations concerning the Npl Segment and the segment relative to purchases of tax receivables arising from insolvency proceedings, the characteristics of the business model imply a high level of variability concerning both the amount collected and the date of actual collection. 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.
The amount of high-quality liquidity reserves (mainly consisting of the balance of the management account with the Bank of Italy and the free portion of eligible securities) makes it possible to meet regulatory requirements (with respect to the limits of LCR and NSFR) and internal requirements relating to prudent management of liquidity risk. For more details on the main period liquidity trends, refer to paragraph "1.4 Liquidity risk" in "Section 2 - Prudential consolidation risks" of "Part E - Information on risks and related hedging policies" of these Notes to the Consolidated Financial Statements.
Significant accounting policies, valuations and estimates
With regard to the Banca Ifis Group's accounting policies in force at the date of this document, please refer to the information reported later in paragraph 'A.2 - Main Financial Statement Items' of this Part A of the Notes to the Consolidated Financial Statements.
Instead, with regard to significant judgements and estimates that are adopted for the purpose of preparing the Consolidated Financial Statements as at 31 December 2024, see what is reported in the immediately following sub-section entitled "Risks and uncertainties related to the use of estimates".
Risks and uncertainties related to 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.
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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 specific sections of the notes to the financial statements for detailed information on the valuation processes conducted at 31 December 2024. In particular, the aspects that required the use of complex estimates with significant assumptions are:
•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;
•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 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 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
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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. 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).
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.
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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.
A new model for the Stage Allocation component was developed in 2024 to improve the robustness of the estimates. The updates mainly concerned methodological choices that further strengthen the estimation process or model evolutions that ensure greater adherence to industry best practices and the guidance formulated over time by supervisory authorities. The effects of this update on the Group's financial results were not significant.
With specific reference to climatic and environmental risk factors, the materiality analysis conducted led to their quantification as non-material, due to the low impact of these factors in terms of available cash reserves and related cash outflows on the Group's funding.
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 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.
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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 2024, goodwill amounts to 38,0 million Euro (value unchanged compared with 31 December 2023) and is fully allocated to the Cash Generating Unit (CGU) "Npl Segment".
For the purposes of estimating the recoverable amount, the Group proceeded to determine the value in use by estimating both future cash flows in the explicit forecast period (determined based on the 2025-2027 economic and equity projections for the CGU under analysis, as approved by the Parent Company's Board of Directors on 10 February 2025) 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 2024 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 2024, 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.
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 2024 is 171,4 million Euro, including the 85,1 million Euro portion attributable to Law 214/2011 (equal to 49,6% 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 continued convertibility into tax credits is subject to the payment of a fee, which was introduced by Decree Law 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 by paying an annual fee until 2030.
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On the basis of the valuation of the residual amount, note that the portion referring to prior tax losses and ACE surpluses, totalling 40,0 million Euro (or 23,34% of the total DTA) should be fully recovered from 2025 to 2032 (of which approximately 31 million Euro by 2029). The remaining 46,3 million Euro 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 surrounding the recoverability of DTAs related to the past tax losses of the subsidiary Cap.Ital.Fin. realised mainly prior to joining the tax consolidation programme, it was prudently decided not to recognise them; the unrecognised DTAs total 2,8 million Euro.
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 06 March 2025; the Parent company’s separate financial statements will be submitted to the Shareholders’ Meeting to be held on 17 April 2025 at first call for approval.
Coming into effect of new accounting standards
Below are the new IAS/IFRS accounting standards or amendments to existing standards approved by the IASB, as well as new interpretations or amendments to existing ones published by the IFRIC, with separate disclosure of those applicable in FY 2024 from those that can be adopted in subsequent financial years but also reporting the changes made in 2024.
Standards approved and to be applied as mandatory for the preparation of the 2024 Consolidated Financial Statements
“Lease Liability in a Sale and Leaseback” (amendments to IFRS 16)
On 22 September 2022, the IASB issued these amendments in response to a recommendation of the IFRIC, with the aim of clarifying how a seller-lessee should perform the subsequent measurement of liabilities in sale and leaseback transactions that meet the requirements of IFRS 15 for the purpose of accounting as a sale. Sale and leaseback is a transaction whereby a lessee sells an asset and subsequently leases it for a period of time from the new owner. IFRS 16 already included the information for accounting for a sale and leaseback at the date the transaction occurs, but not its subsequent treatment.
In particular, the lessee must determine the liability of such a transaction in such a way that it does not recognise in profit or loss any amounts that relate to the RoU (which it has retained), except for any gain or loss related to the partial or total termination of the contract.
These amendments concern sale and leaseback transactions concluded after the date of first application. The adoption of this amendment had no impact on the Consolidated Financial Statements.
“Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current; Classification of Liabilities as Current or Non-current - Deferral of Effective Date; and Non-current Liabilities with Covenants”
On 23 January 2020, the IASB issued an amendment to IAS 1 "Classifying liabilities as current or non-current" to clarify that the classification of liabilities between current and non-current depends on the rights existing at the end of the reporting period. Its application, initially scheduled for FY 2022, was first postponed to 1 January 2023, with the amendments approved by the IASB on 15 July 2020, and finally postponed to 1 January 2024, with the amendments issued on 31 October 2022 "Non-current liabilities with covenants". This latter amendment provides that only those covenants that an entity is required to meet on or before the reporting date are likely to affect the classification of a liability as current or non-current. It is also required to disclose information in the notes to the financial statements that enables users of the financial statements to understand the risk that non-current liabilities with covenants may become repayable within twelve months. The limited proposed amendments to IAS 1 are not relevant for the Group, considering that the scope of application refers to loans received with covenants;
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in addition, for the Group, the presentation in the balance sheet is guided by the formats contained in Bank of Italy Circular No. 262/05, which do not provide for any evidence between current and non-current liabilities.
“Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements”
On 25 May 2023, the IASB published through this amendment certain disclosure requirements aimed at improving the transparency of financial arrangements with suppliers and their effects on a company's liabilities, cash flows and exposure to liquidity risk.
The lack of transparency on the content of these financing agreements is an obstacle to a proper analysis by a company's investors.
The purpose of the amendments is to supplement the requirements already laid down in the accounting standards by obliging companies to disclose the terms and conditions of agreements, the liabilities that are part of the agreements with separate indication of the amounts for which suppliers have already received payment, payment due dates, and information on liquidity risk. The adoption of this amendment had no impact on the Consolidated Financial Statements.
Standards issued and endorsed but whose application starts after 31 December 2024
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (issued on 15 August 2023)
On 15 August 2023, the IASB issued an amendment to IAS 21 with the aim of specifying the situations in which one currency is convertible into another, how to determine the exchange rate to be applied when one currency is not exchangeable for another, and the disclosure to be provided in such cases. The amendments will be applicable on or after 1 January 2025. No impact on the consolidated financial statements is expected from the adoption of this amendment.
Standards 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 Consolidated 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 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 replaces IAS 1 "Presentation of Financial Statements". The first application of the new standard is scheduled for 1 January 2027.
The new standard introduces three sets of new requirements to improve companies' financial reporting and provide investors with a better basis for analysis and comparison:
•better comparability in the income statement;
•greater transparency of performance measures defined by management;
•more useful grouping of information in the balance sheet.
The aforementioned changes, affecting the presentation of the profit and loss account and financial statement disclosure, will be implemented in the rules for compiling bank financial statements, governed by Bank of Italy Circular No. 262. Assessments are underway in order to verify, in addition to the impacts in terms of a different representation of the information, any impacts on the Group's equity and financial position.
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.
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IFRS 19 was instituted for subsidiaries of a parent company that prepares its financial statements in accordance with IFRS, in order to reduce the cost of preparing IFRS financial statements by allowing reduced disclosure:
•for subsidiaries that use IFRS for SMEs or national accounting standards 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 over-the-counter 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).
Entities with the above characteristics may, but are not required to, apply IFRS 19 in their consolidated, separate or individual financial statements.
“Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7”
On 30 May 2024, the IASB issued an amendment to IFRS 9 (and, by extension, IFRS 7), whose first application is scheduled for 1 January 2026, resulting from the responses to the Post Implementation Reviews on certain areas of major concern or doubt triggered by the application of the standard.
In particular, the topics addressed are:
•the classification of financial instruments with contractual cash flow characteristics impacted by ESG clauses. On this topic, the IASB has provided some, non-exhaustive examples of financial instruments that determine whether or not the SPPI test is passed. In greater detail:
–the presence of a clause providing for the recognition of additional interest in the event that the borrower achieves an ESG objective (e.g. a reduction in carbon emissions), the extent of which is contractually predetermined, falls within the realm of a "basic lending agreement" and thus allows the test to be passed;
–the existence of a condition whereby the interest rate is adjusted according to a market variable (e.g. the carbon price index) does not compensate the lender for the risks and costs associated with lending the principal amount; therefore, it does not delineate a basic lending arrangement;
•extinguishing liabilities by means of electronic payment systems. The amendment provides that a liability may be settled in cash, using an electronic payment system, prior to the settlement date by way of derogation from what is currently provided for, if certain specific criteria are met.
Specific disclosure requirements have also been introduced for equity instruments for which the option to recognise changes in fair value in the statement of comprehensive income has been exercised, and for financial instruments with contingent features, e.g. features linked to ESG objectives.
“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 nature-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 amendments include: (i) clarifications on the application of 'own use' requirements; (ii) the possibility of using hedge accounting when such contracts are used as hedging
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instruments; and (iii) 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.
The amendments under review, which will be effective for financial statements from 1 January 2026, with the possibility of early application, are not expected to have a significant impact on the Group's balance sheet, financial position and results of operations.
“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. Given the minor scope of these changes, no significant impact on the Group's balance sheet, financial position and results of operations is expected.
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.
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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.
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:
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•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 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: