Untitled

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Financial statements at 31 December 2021

92th FINANCIAL YEAR

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Contents

CORPORATE GOVERNANCE, MANAGEMENT AND INDEPENDENT AUDITORS................................................. 4

NOTICE OF CALL FOR THE SHAREHOLDERS' MEETING ..................................................................................... 6

FINANCIAL STATEMENTS AT 31 DECEMBER 2021

DIRECTORS’ REPORT ON OPERATIONS AND DRAFT RESOLUTIONS FOR THE SHAREHOLDERS’

MEETING OF BANCA FINNAT EURAMERICA S.P.A. …………..………………………............................................... 10

SEPARATE FINANCIAL STATEMENTS

Statement of financial position and Income Statement ............................................................................. 42

Statement of Comprehensive Income ........................................................................................................... 45

Statement of Changes in Equity ..................................................................................................................... 46

Statement of Cash Flows ................................................................................................................................ 48

Notes to the Financial Statements.................................................................................................................. 49

ATTACHMENTS TO THE SEPARATE FINANCIAL STATEMENTS

Changes in Equity Investments ..................................................................................................................... 203

STATUTORY AUDITORS' REPORT ...................................................................................................................... 204

INDEPENDENT AUDITORS' REPORT .................................................................................................................. 220

STATEMENT ON THE SEPARATE FINANCIAL STATEMENTS PURSUANT TO ART. 81-TER OF

CONSOB REGULATION 11971/99………………………………………………………………………................................... 225

CORPORATE GOVERNANCE REPORT DRAWN UP IN ACCORDANCE WITH ARTICLE 123-BIS OF

THE ITALIAN CONSOLIDATED FINANCIAL LAW ............................................................................................... 226

CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2021

DIRECTORS’ REPORT ON THE GROUP OPERATIONS ........................................................................................ 290

CONSOLIDATED FINANCIAL STATEMENTS

Statement of financial position and Income Statement.............................................................................. 312

Statement of Comprehensive Income............................................................................................................ 315

Consolidated Statement of Changes in Equity............................................................................................... 316

Consolidated Statement of Cash Flows.......................................................................................................... 318

Notes to the Consolidated Financial Statements ......................................................................................... 319

INDEPENDENT AUDITORS' REPORT................................................................................................................... 485

STATEMENT ON THE CONSOLIDATED FINANCIAL STATEMENTS PURSUANT TO ART. 81-TER OF

CONSOB REGULATION 11971/99 ..................................................................................................................... 490

SHAREHOLDERS' RESOLUTIONS ……………………………………………………………………..………………………….……… 491

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CORPORATE BODIES

Giampietro Nattino

Honorary Chairman and Director (*)

Marco Tofanelli

Chairman

Lupo Rattazzi

Deputy Chairman

Arturo Nattino

Managing Director

Maria Teresa Bianchi

Director

Roberto Cusmai

Director

Vincenzo Marini Marini

Director

Giulia Nattino

Director

Maria Sole Nattino

Director

Paola Pierri

Director

(*) On 14 June 2021, Giampietro Nattino, already Honorary Chairman, was appointed Director to replace Ermanno Boffa,

who resigned on 19 May 2021.

BOARD OF STATUTORY AUDITORS

Salvatore Ferri

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Chairman

Laura Bellicini

Permanent Auditor

Barbara Fasoli Braccini

Permanent Auditor

Nicola Pironti di Campagna

Alternate Auditor

Monica Petrella

Alternate Auditor

MANAGEMENT

Arturo Nattino

General Manager

Giulio Bastia

Assistant General Manager, Deputy of the General Manager and Financial Reporting Manager

Alberto Alfiero

Deputy General Manager

INDEPENDENT AUDITORS

KPMG S.p.A.

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EXTRACT FROM THE NOTICE OF CALL OF THE SHAREHOLDERS' MEETING

(pursuant to Art. 125-bis, paragraph 1, of Italian Legislative Decree no. 58/1998)

The Shareholders of Banca Finnat Euramerica S.p.A. are called to an Ordinary Shareholders' Meeting at the registered office

in Rome - Palazzo Altieri - Piazza del Gesù, 49 - on 28 April 2022 at 10.00 in single call, to discuss and resolve on the

following:

AGENDA

1. Financial statements closed at 31 December 2021 accompanied by the relative reports of the Board of Directors, the

Board of Statutory Auditors and the Company in charge of the statutory audit. Presentation of the consolidated financial

statements at 31 December 2021. Inherent and consequent resolutions.

1.1. Approval of the Financial Statements for the year;

1.2. Resolutions regarding the allocation of the result for the year.

2. Appointment of a Director for the completion of the Board of Directors. Inherent and consequent resolutions.

3. Report on the remuneration policy and on the remuneration paid pursuant to Art. 123-ter of Italian Legislative Decree

no. 58/98 and 84-quater of the Regulation adopted by Consob with resolution no. 11971 of 14 May 1999, including

information on the remuneration policies in favour of Directors, Employees and Collaborators not linked by subordinate

employment. Inherent and consequent resolutions.

3.1. Binding resolution on the first section of the report regarding the remuneration policy, prepared pursuant to Art.

123-ter, paragraph 3 of Italian Legislative Decree no. 58/1998.

3.2. Non-binding resolution on the second section of the report on the subject of remuneration paid, prepared

pursuant to Art. 123-ter, paragraph 4 of Italian Legislative Decree no. 58/1998.

* * * * *

It should be noted that the date and/or the place and/or the intervention and/or the voting and/or conduct of the

Shareholders' Meeting indicated in the notice of call remain subject to compatibility with current legislation and/or the

provisions issued by the competent Authorities due to the Covid-19 health emergency, as well as the fundamental principles

for the protection of the health of company's shareholders, employees, representatives, and consultants. Any changes will

be promptly disclosed in the same manner provided for the publication of the notice and/or in any case through the

information channels provided for by the legislation in force from time to time.

In consideration of the Covid-19 health emergency and having regard to the provisions contained in Art. 106, paragraph 4,

of Italian Law Decree no. 18 of 17 March 2020, converted with amendments by Italian Law no. 27 of 24 April 2020, as most

recently extended by Art. 3, paragraph 1, of Italian Law Decree no. 228 of 30 December 2021, converted by Italian Law no.

15 of 25 February 2022, participation in the meeting and the exercise of the right to vote take place exclusively by granting

a specific proxy to the Designated Representative.

Information regarding:

 participation in the Shareholders' Meeting (it should be noted in this regard that the Record Date is 19 April 2022);

 attendance at the Shareholders' Meeting and exercise of the right to vote, exclusively through the Designated

Representative;

 exercising the right to ask questions on the items on the agenda;

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 exercising the right to add to the agenda and to submit new resolution proposals as well as the right to individually

submit resolution proposals;

 the appointment of a Director for the completion of the Board of Directors;

 the availability of reports on the items on the agenda and of the documentation relating to the Shareholders' Meeting;

 the share capital;

are reported in the full in the notice of call available on the Company's website www.bancafinnat.it (section "Investor

Relations/Regulated information/Notices to shareholders") and in the authorised storage mechanism eMarket STORAGE (on

the website www.emarketstorage .com).

Rome, 29 March 2022

The Chairman of the Board of Directors

(Mr. Marco Tofanelli)

Separate financial statements at 31 December 2021 | BANCA FINNAT EURAMERICA

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Separate financial statements at 31 December 2021 | BANCA FINNAT EURAMERICA

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DIRECTORS' REPORT ON OPERATIONS AND DRAFT RESOLUTIONS FOR

THE SHAREHOLDERS' MEETING OF BANCA FINNAT EURAMERICA S.P.A.

Separate financial statements at 31 December 2021 | BANCA FINNAT EURAMERICA

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Dear Shareholders,

Before presenting the report on operations for the 2021 financial year, we consider it useful to set out several brief

considerations on the domestic and international macroeconomic scenario, on the financial markets and on the real

estate market in 2021.

Domestic and international macroeconomic scenario

After a 2020 characterised, due to the Covid-19 pandemic, by an unprecedented decline in the global economy, 2021

recorded equally spectacular recoveries (+5.5% in terms of global GDP growth supported by growth exceeding 12% in

international trade in the first eight months of the year) not only in the wake of the vaccination campaigns implemented

in the more advanced countries but, above all, by virtue of the unprecedented fiscal and monetary support measures

offered by Governments and Central Banks (in Italy, for example, taking advantage of the moratorium which, due to the

pandemic, affected the parameters of the Stability Pact, the deficit/GDP ratio was subject to a "temporary" expansion

of up to 12%). In addition to being particularly significant, in many cases the economic recovery also exceeded the initial

forecasts that had already been optimistically formulated at the beginning of the year; thus the eurozone economy

closed 2021 with a growth of 5.2% (from the 4.5% initially estimated and after the contraction of 6.4% suffered at the

end of 2020); France recorded a 7% recovery (from 5.5% growth initially estimated and after the 7.9% contraction

suffered at the end of 2020) while the growth of the Italian economy stood at 6.3% from the 5% initially estimated and

compared to the 8.9% contraction suffered in the final balance of 2020. The Italian economic rebound has also benefited

from a new national government, characterised by wide international prestige, as well as from the positive expectations

generated by the resources made available by the European Commission as part of the "Next Generation EU" program

and which found its driving force in the National Recovery and Resilience Plan. Conversely, affected by the greater

maturity of its economic cycle and the expectations of a more imminent "normalisation" of its monetary policy, the US

economy experienced a considerably lower actual growth compared to the 6.5/7% increase that had been forecast at

the beginning of the year, even though growing by 5.6% compared to the 3.4% contraction recorded in 2020. The

German economy also experienced a contraction in the GDP growth rates initially forecast, with an economic growth of

2.7% compared to the 4/4.5% initially anticipated and after the contraction of 4.6% suffered overall in 2020. This

reduced economic growth, compared to expectations, was the result not only of the bottlenecks appearing in the

international supply channels (a circumstance that affected the entire German industry in a particularly significant way)

but also of the unexpected fragility that characterised, during the course of the year, the Chinese economy (hugely

penalising German exports) whose official annual growth was 8.1% but whose quarterly dynamics went from sustained

growth of 18.3% in the first quarter of 2021 to 4% at the end of the fourth quarter. Also and above all weighing on the

Chinese economy was the crisis in the real estate sector, which affects almost a third of the gross domestic product,

triggered by the financial failure of the Evergrande real estate group which found itself burdened by over 360 million

dollars of debt for default on the payment of maturing coupons relating to 8 bonds issued on international markets.

Evergrande's default then inevitably affected the entire real estate sector, involving other operators; the new

urbanisation/housing market dropped 20% and the Chinese Central Bank invited commercial banks to finance mergers

and acquisitions between property groups in crisis. However, a particularly significant factor for the year just ended is to

be identified in the inflationary pressures that have progressively come to bear on the most advanced economies due

to the bottlenecks that occurred in the international supply channels, of the unsustainable costs of sea freight (increased

up to 10-fold in one year), as well as the sharp increase experienced in the prices of many raw materials and primarily

affecting energy products such as oil, natural gas and electricity (with oil increasing by almost 60% over the year, natural

gas at the ICE in London increased by up to 600% and the price of wholesale electricity, per megawatt hour, in the

eurozone, increased by 400%). Thus the American economy experienced an annual growth in production prices which

at the end of the year was close to 10% (from annual trend rates of 1.7% at the beginning of 2021), consumer prices

rising by an annual rate of 7% (from increases limited to 1.4% at the beginning of the year) and "core" prices (net of

the more volatile components such as energy and food) up by 5.5% (1.4% at the beginning of the year ); in the

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eurozone, production prices have undergone annual increases that have almost reached 24% (from annual increases

limited to 0.4% at the beginning of the year), with consumer prices increasing annually by 5% (from 0.9% at the

beginning of the year) while in Germany import prices are experiencing annual increases of close to 25%, with

production prices growing annually by close to 20% (from growth rates of 0.9% in January 2021) and consumer prices

increasing by 5.3% from 1% increases at the beginning of the year. In Italy, at the end of 2021, production prices

recorded annual growth rates of 27% (from decreases of 0.4% per year again in January 2021), with consumer prices

increasing by almost 4% (from tend rates of 0.4% at the beginning of 2021) and an energy component that is increasing

annually by about 30%. These inflationary pressures, unexpected in their magnitude and apparently more structural and

potentially longer lasting than hoped for by the Central Banks, which for a long time thought these pressures to be

transient, led the Central Banks themselves, in December, to amend in a more restrictive sense their monetary policy

approaches (for some time characterised by zero reference rates). The Bank of England brought policy rates to 0.25 from

0.10; the Federal Reserve decided to suspend its Quantitative Easing program in March 2022, with the intention, already

communicated to the market, of proceeding with at least three rises in official rates during 2022 and another three in

2023; while maintaining for the moment the reference rate at zero, the marginal loan rate at 0.25% and the deposit

rate negative by 0.5%, the European Central Bank decided to conclude the pandemic purchase program (Pandemic

Emergency Purchase Program) in March 2022, while the purchases of securities under the “ordinary” APP (Asset

Purchase Program) are anticipated to end on the eve of the first rate rise that presumably could occur during the first

half of 2023. Reinvestments in maturing securities, on the other hand, will continue until December 2024 for the PEPP

program and until after the first rate increase (presumably during the first half of 2023) for the APP program. At the end

of the second year of Covid-19, 6 million deaths were recorded and 160 million people fell into absolute poverty. The

pandemic has been a tremendous test bed for the prevailing economic setting that sees the market as the only beacon

for creating opportunities. Thankfully, it was understood that the crisis could not be averted without state intervention

and, in the United States and Europe, public aid has buffered the damage, at least from an economic point of view.

Where public aid was not possible, or it was chosen not to activate it, consequences have been disastrous in terms of

increased inequality.

Financial markets

In this context of strong economic recovery, equity markets offered extremely positive returns, with the MSCI World

Index growing by 22.4%. The American markets allowed capital gains of 18.7% on average for investments on the Dow

Jones index, 26.9% on the S&P 500 index and 21.4% on the Nasdaq technology index. In the eurozone, the Paris stock

exchange (CAC 40 index) grew by 28.1%, prices on the German stock market (DAX) increased, on average, by 15.8%

while the Madrid stock exchange (Ibex 35) offered a limited return of 6.9%. The index representing the largest

capitalisations in the eurozone (Eurostoxx 50) grew by 21% and the best sectors, during the year, were banking

(+36.2%), technology (+37.8%), the media sector (+30.4%) and the automotive sector (+25.1%). In terms of individual

stocks, the best performances within the Eurostoxx 50 index were achieved by ASML Holding (+77.8%) and Hermes

International (+74.6%) while the worst performances were offered by Philips (-25.2%) and Prosus (-16.8%). Outside

the euro area, the UK stock exchange (FTSE 100) offered a return of 14.3% while the Zurich stock exchange grew by

20.3%. In the Asian area, the Japanese Nikkei 225 index offered a limited return of 4.9% while the Chinese markets

were negative with the Hong Kong Hang Seng index down 14.1% and the Shanghai index/Shenzhen CSI 300 down by

5.2% on the year. With regard to the Italian market, the FTSE MIB index grew by 23%, the index relating to the STAR

segment by 44.7%, while the Italia Growth index (formerly AIM) recorded an increase of 57.7%. The best sectors were

banking (+36%) and insurance (+30.6%) while utilities suffered (-6.7%). During 2021, 49 IPOs were carried out on our

domestic market (22 in 2020), 5 on the main MTA market and 44 on the Euronext Growth Milan market, which brought

the total number of listed companies to 407 (174 listed on the EGM) for a capitalisation of 757 billion (11.5 billion for

the capitalisation of the EGM market), equal to 43% of the Italian GDP and equal to 11% of the capitalisation of the

entire Euronext market. Total capital raising on the Italian market amounted to 3.7 billion, of which 2.3 billion relating

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to initial placements on the stock exchange (837 million capital raised in IPOs on the EGM market) while capital increases

in option were 16. There were 21 takeover bids for a value of 7 billion euros.

In the fixed-rate sector, the financial repression policies still pursued by Central Banks have fuelled widely negative real

rates of return (many government issues still have negative returns already in nominal rates - French bonds offer

negative rates of return for up to 15 years while German securities yields are negative for up to 30 years), an even

more penalising circumstance for investors in light of the inflationary pressures underway. The strong economic rebound

and the prospects of inevitable and progressive "normalisation" of monetary policies, however, led the market to raise

nominal yields on government bonds over the course of the year, across the entire spectrum, with the German ten-year

(Bund) which, at the end of the year, offered a negative yield of 0.18% from an equally negative yield of 0.57% at the

end of 2020, while the 10-year US Treasury yielded 1.52% from 0.92% at the end of 2020. The yield of the Italian ten-

year BTP, on the secondary market, has constantly fluctuated, during the year, between 0.54% and 1.2%, reaching a

minimum of 0.44% at the beginning of February at the time of entry of the Draghi government. In terms of gross rates

at issue for Italian paper, the nominal yields of three-year BTPs went from -0.23% to -0.1% from the end of

2020/beginning of 2021 to the end of 2021; the yield on the five-year auctions went from 0.07% to 0.19%; the seven-

years auctions went to 0.6% from 0.3%; the ten-year yield increased from 0.65% to 1.02%, while over the thirty-year

yields increased from 1.47% to 1.82%. The average charge on Italian government bonds in circulation reached 2.1% at

the end of October 2021 (with an average charge in issue on medium/long-term bonds of 0.44%), for a residual average

life of outstanding securities exceeding seven years for the first time since 2011.

Among commodities, energy products recorded sustained increases in prices (a circumstance which significantly fuelled

the inflationary pressures underway). The price of West Texas Intermediate crude oil on the New York market rose by

58.6% during the year; the price of Brent grade at the ICE in London increased by 53.5%; diesel fuel on New York

increased by 61.6%; heating oil by 60.5% while natural gas at the ICE in London recorded, during the year, peak increases

of up to 600% to close the year with an increase of 284.3%. Strong price increases also affected industrial metals such

as aluminium (+42.4%), copper (+24.8%) and nickel (+23.9%) while the price of steel was limited to an increase in

7.8% and iron ore prices unexpectedly fell by 36.6%. The performance of precious metals was negative, with gold down

by 4.3% and the price of silver down by 12.3%. The prices of agricultural commodities also rose strongly, with the price

of wheat rising by 22.4%, corn by 23.45% while soybeans remained essentially stable (+1.25%). Among colonial

commodities, coffee recorded increases of 78.4%, cotton of 46.4% and sugar of 21.2%.

Regarding currencies, the dollar recorded an average appreciation (over the year) of 7% (best annual performance since

2015). Only the Chinese currency (renminbi) was able to appreciate against the US currency (+2.7%). With reference to

the exchange rates against the Euro, this depreciated by 7.4% against the US dollar, by 6.6% against the British pound,

by 3.7% against the Swiss franc while it appreciated by 2% against the Japanese yen.

Separate financial statements at 31 December 2021 | BANCA FINNAT EURAMERICA

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The real estate market in 2021

In 2021, the growth of the Italian economy and greater political stability helped to raise investor confidence in the

country. The volume of real estate investments in 2021 reached 10.3 billion euros, up 13% compared to 2020, of which

4.6 billion euros in the last quarter (+52% compared to the same quarter of the previous year ). The growth in volumes

in the last part of the year is a positive trend that suggests an acceleration of the recovery in the first quarter of 2022.

Logistics closed the year with approximately 2.7 billion euros invested (+88% compared to 2020). The sector continues

to experience strong product diversification, with distinct risk profiles for different types of product. Scarcity of land in

major markets is leading investors and developers to look to new locations, including Southern Italy.

The Offices sector reached 2.3 billion euros in investments, a sharp decline compared to 2020. Although the performance

of the last quarter improved significantly compared to the previous one, the sector was still affected by the effects of

the pandemic, especially in relation to office occupancy, as well as the limited availability of core products. Nonetheless,

interest in the sector is still very strong. The year 2022, which also includes operations initially scheduled for closing

during the year just ended, suggests a strong and rapid recovery in volumes: absorption in Milan has returned to the

levels recorded on average in the last five years and is showing positive signs, as also is the Rome market.

The Hotel segment has reached 1.9 billion euros of investments since the beginning of the year, confirming the recovery

of the sector (+82% compared to the previous year). Most of the transactions involved value add products, many of

them with luxury positioning. 2021 marked the presence, in the investment landscape, of the resort segment, seen

before the pandemic as highly risky and today increasingly at the centre of investors' interest. On the other hand, the

recovery of business hotels in the main Italian cities is expected to be slower.

The Retail sector, with 1.5 billion euros of investments, is still contracting: about 70% of the total investments concerned

the High Street segment in the main cities. During the year, the transactions involving the "out of town" sector were

limited and mostly restricted to small properties in secondary locations. There is growing interest in quality Retail Parks

by investors with a medium-long term vision.

The Alternatives sector is growing: the total recorded at the end of the year is equal to 1.2 billion euros; the Healthcare

segment weighed heavily on the total through numerous RSA transactions and portfolio sale & lease-back transactions.

The investment volumes recorded for the Residential sector reached a total of 700 million euros, an increase compared

to 2020, marking another record year. Investments were mainly concentrated in Milan, but Rome and secondary cities,

such as Florence and Bologna, are confirmed as attractive venues.

The Student Housing segment recorded numerous transactions in the main Italian cities. The market is expected to

achieve an increasingly larger proportion of total investments and will probably see a first consolidation as early as

2023. Considering the transactions scheduled for closing, 2022 could bring the sector for the first time close to one

billion euros of investments.

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Dear Shareholders,

we submit for your evaluation and approval the separate financial statements closed at 31 December 2021 which show

a net profit of 5,679 thousand euros, 98 thousand euros higher than that of the previous year which was equal to 5,581

thousand euros.

From the analysis of the result for the year in question, there was a significant increase in net commissions, which

partially offset the decrease in the interest margin attributable to the lower contribution deriving from transactions on

the proprietary portfolio in repurchase agreements.

With regard to the Covid-19 emergency, it is noted that most of the year 2021 was characterised by a gradual relaxation

of the restrictive policies revised and strengthened in December, following the widespread diffusion of a new variant

called Omicron. The effects of the pandemic on business activities are outlined in the paragraph “The main transactions

and events in the period”.

The main items that contributed to forming the results of 2021 are shown below, compared those of the previous year:

Total income was 41,417 thousand euros compared to 44,230 thousand euros in the same period of the previous year.

The overall decrease of 2,813 thousand euros consists of the following:

Increases

 3,735 thousand euros for net commissions (25,448 thousand euros at 31 December 2021 compared to

21,713 thousand euros in the previous year);

 1,774 thousand euros in Net trading expense. The item at 31 December 2021 shows a positive balance

of 1,521 thousand euros against a negative balance of 253 thousand euros in 2020;

 Euro 76 thousand euros in Income on other financial assets mandatorily measured at fair value (loss of

177 thousand euros at 31 December 2021 compared to a similar loss of 253 thousand euros in 2020).

Decreases

 5,979 thousand euros for net interest income (10,256 thousand euros at 31 December 2021 compared to

16,235 thousand euros in 2020);

 1,185 thousand euros for Dividends and similar income (4,155 thousand euros at 31 December 2021

compared to 5,340 thousand euros in 2020);

 1,234 thousand euros in Net gains from disposal of financial assets at amortised cost and financial assets

at fair value through other comprehensive income (gains of 214 thousand euros at 31 December 2021

compared to similar gains of 1,448 thousand euros in 2020);

Net impairment losses for credit risk (+/-). The item showed net impairment losses totalling 1,049 thousand euros

relating to impairment losses on Financial asset at amortised cost (1,026 thousand euros) and of Financial assets at fair

value through other comprehensive income (23 thousand euros).

On the other hand, net impairment losses were recorded on Financial assets at amortised cost of 5,584 thousand euros

and value recoveries on Financial assets at fair value through other comprehensive income for 350 thousand euros.

Compared to the previous year, the item shows a decrease of 4,185 thousand euros, mainly attributable to lower

analytical adjustments made on non-performing positions while maintaining the coverage rate of non-performing loans

unchanged.

Administrative expenses amount to 36,210 thousand euros compared to 34,041 thousand euros in 2020 and are made

up as follows:

 personnel expenses, equal to 22,143 thousand euros, are 657 thousand euros higher than the previous

year (21,486 thousand euros). The increase is also attributable to the inclusion in the Bank's staff of high-

profile elements;

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 other administrative expenses of 14,067 thousand euros increased by 1,511 thousand euros compared to

the previous year (12,556 thousand euros). Other administrative expenses include recoveries from

customers of some costs allocated under Other operating income, net. Net of those recoveries, other

administrative expenses amounted to 8,822 thousand euros and increased by 584 thousand euros

compared to the previous year (8,238 thousand euros), mainly due to the greater contribution to the

Single Resolution Fund.

Net adjustments/write-backs on property, equipment and investment property. The item presents impairment losses

equal to 2,264 thousand euros (2,299 thousand euros in 2020) and includes the amortisation quotas of the right of use

of assets acquired under leasing for 1,971 thousand euros (1,977 thousand euros in 2020).

Other operating income, net showed a positive balance of 5,038 thousand euros compared to 4,674 thousand euros in

2020. Income includes cost recoveries from customers for 5,245 thousand euros (4,318 thousand euros in 2020).

The item also includes net charges of 647 thousand euros due to settlement agreements (also linked to the acquisition

of new customers) and administrative penalties.

Income taxes amount to 1,220 thousand euros (tax rate 17.68%). Last year the item presented a balance of 1,193

thousand euros (tax rate 17.61%).

* * *

The overall results for 2021, which also include the change in "Valuation reserves”, are shown in the Statement of

Comprehensive Income.

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Direct and indirect deposits

The Bank's deposits are made up as follows:

(in thousands of euro)

December 2018

December 2019

December 2020

December 2021

Direct deposits from customers

677,119

802,644

663,025

862,508

- Due to customers (current accounts)

439,262

565,790

478,268

649,618

- Time deposits

209,607

211,941

184,757

212,890

- Securities issued

28,250

24,913

-

Indirect deposits

6,152,748

6,441,594

5,528,219

7,629,116

- Individual management

480,921

484,820

516,798

696,647

- Delegated management

278,565

279,479

256,551

316,372

- Deposits under administration (UCIs and securities)

4,544,537

4,539,880

3,524,466

5,202,756

- Deposits under administration under advice (UCIs and

securities)

695,044

859,826

921,118

1,045,216

- Third party insurance products

153,681

277,589

309,286

368,125

Total deposits

6,829,867

7,244,238

6,191,244

8,491,624

Total assets amounted to 8.5 billion euros, an increase of 37% compared to the end of last year. This increase is

attributable in particular to the increase in indirect deposits due in equal measure to both the entry of new assets and

the growth of the markets at a global level.

Direct and indirect deposits from customers represented above do not include repurchase agreements with the

Compensation and Guarantee Fund as counterparty.

All the assets shown in the prospectus also take into account the amount invested in them and deriving from the

other types highlighted.

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

800.000

900.000

1.000.000

December 2018 December 2019 December 2020 December 2021

Direct deposits from customers

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0

1.000.000

2.000.000

3.000.000

4.000.000

5.000.000

6.000.000

7.000.000

8.000.000

December 2018 December 2019 December 2020 June 2021

Indirect deposits

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The operating offices

The Bank's operating branches are located in Rome, Milan and Novi Ligure.

The head office is in Rome in Piazza del Gesù 49, and the 3 branches are located in Corso Trieste 118, Via Catone 3

(Piazza Risorgimento) and in Via Piemonte 127.

Business segments

Following is an overview of the activities carried out by the Bank and Group companies in 2021:

Commercial Division

2021 was characterised by the continuation of the Covid-19 emergency. Consequently, the work for the year followed

innovative paths which nevertheless gave positive results both in economic terms and in improving the service model.

The particularly satisfactory economic figures show that the overall approach given to the business has been correct:

private banking assets under management have exceeded the 7 billion euros mark, and revenue from private banking

services has significantly exceeded the results of the previous year and of the budget targets. The financing activity, not

exclusively of the Lombard type, also represented an important component of the services offered, allowing for a

complete management of the customers' assets and liabilities.

Training was a defining element of the year. The project defined as a “global equity approach” was a step-by-step

process in the analysis of the broad needs of household and of individual HNWI customers. The analysis of needs,

governance, family capitalism, the paths of young customers and pension-insurance planning are some of the in-depth

topics. Finally, we proceeded with the construction of the family budget and the implementation of the project on

customers and prospect targets. The combination in the path of collaboration with professional firms has guaranteed

versatility of training and pragmatism of the same, as well as the expansion of networking with mutual satisfaction.

The growth of our services offer was achieved with the launch of the placement of real assets, in particular with FIAs in

the field of non-performing loans. Asset management has been updated with the introduction of the multiline offer

which reflects the asset allocation macro guidelines, identified from the spring of 2020 and expressed in the investment

path defined "Il mondo che verrà" (The world to come). In this way, in concert with their private banker, customers can

calibrate their core choices with medium-term satellite choices on issues such as infrastructure, health, technology, small

and medium-sized enterprises and other sectors that have been identified as most promising.

Again with regard to the expansion of the service platform and attention to typical wealth management issues, Finnat

Fiduciaria has set up an administration service for alternative PIRs which allows the inclusion of unlisted companies and

the correct allocation of the tax regime. In this way, our wealth management service fully satisfies the needs of

participation in the growth of start-ups and SMEs that are of interest to HNWI customers. Financial planning has always

been a crucial activity of our private banking service, carried out in concert with Finnat Fiduciaria, but the significant M&A

activity that has characterised the last two years has made the offer of escrow agreements particularly intense, especially

in the service of solutions within family assets. In particular, the dynamism of corporate finance transactions made it

possible to provide our customers with financing in particular in the phases preceding corporate finance transactions

that require significant liquidity support.

The offer of wealth and asset management services has focussed on security, the reduction of volatility, the resolution

of family planning issues and creation of high-end pension plans. The multi-branch insurance proposal built with Zurich,

with the aim of reducing volatility and at the same time allowing investments consistent with our long-term

expectations, was a winner in terms of both volumes and performance. Consistently with the “global equity approach”,

the possibility of social security choices, increasingly sought after by HNWIs in the context of the ageing process of the

Italian population, was enhanced. As part of the asset arrangement, the new agreement with the independent insurance

broker First Advisory made it possible to create complex individual management solutions, protecting the customers'

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assets and setting the correct long-term asset allocation for each family unit. Insurance products are also a crucial

component in managing the most prudent part of asset allocation of customers, and this year we were also able to use

the range of class 1 life business products of three insurance companies with excellent standing, despite the gradual

disappearance of these insurance financial instruments.

In marketing, we had an active presence through online events, such as economic scenarios and analyses of global

public debt, which increased to amounts never seen before, in both absolute and relative terms. The monthly publication

of analyses and information on the financial markets and on geopolitical and economic issues continued, through which

we attempt to keep our advisory or asset management customers up-to-date on the consistency of our financial tactics

with macroeconomic events.

Investment Banking

Also during 2021, investment banking activities continued to be conditioned by the need to find the right balance

between the need to safeguard the health of both colleagues and customers and the search for reasonable efficiency

in operations. In the various periods of the year, depending on the trend of the pandemic, this exercise involved different

levels of recourse to smart workin, with phases characterised by a resumption of physical meetings with customers and

counterparties alternating with others in which the meetings were only virtual.

In this context, all the organisational structures have shown great flexibility and an ability to adapt which has allowed,

even in a context of objective difficulty, to achieve positive and, in some areas, gratifying results.

Asset Management was characterised by the production of positive returns on all management lines, by a significant

growth in deposits on the Bank's products and by important product innovations. With regard to this latter aspect, in

fact, in the last part of the year a new product was launched - the Multiline GPMs - offering four different risk/return

profiles to customers. The latter - and this is the characterising element of the product - has the ability to actively interact

on the assets of its specific portfolio by mixing various asset classes that are part of the offer according to one's own

expectations and sensitivities. Naturally, this active involvement of customers in defining the asset allocation is possible

within certain limits predefined by the bank, in order to maintain consistency with the customers' own risk profile, and

in any case being able to rely on one's own consultant assistance.

As for the performance of the above mentioned management lines, they are positive even if a gap is observed,

especially in the riskiest profiles, compared to the benchmarks, also deriving from an approach that, with respect to very

positive absolute results (the share lines have achieved around 15%), tends to mitigate the assumption of further risks

in order to consolidate the results. Positive, in many case double digit, returns were also recorded on the SICAV segments,

with the exception of funds with modest duration which, in a context of negative interest rates, closed the year with

modest losses. The result of the AIM Sistema Italia PIR Fund stands out, closing the year with a +56% return and which

gave the Bank a certain visibility as it was the third fund overall in 2021 among those marketed in our country, the best

fund in the equity asset class in Italy, the best PIR fund among all the existing ones.

Compared to the 2020 financial year, securities brokerage saw a strong growth in both volumes and commissions: the

latter mark an increase of about 20%. The increase in the Italian equity sector and related derivatives was particularly

significant. Revenue linked to the Desk activity on CO2 certificates were stable.

Income from services provided to third-party intermediaries in support of their investment services (or to their customers

who use them) continues to grow: it is a niche sector in which the Bank is consolidating its presence with interesting

returns not only in terms of negotiation commissions but also for administrative payments and fees.

The expected contraction in revenue deriving from Corporate Broking mandates (Specialist, Coverage, etc.) linked to the

entry of new competitors in this sector, has actually occurred, but to a lesser extent than feared. Also thanks to the

particular attention and proximity to customers, many issuers have in fact shown that they appreciate the high quality

of our service, to the extent that they do not accept alternative proposals, even if more convenient on a strictly economic

level.

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2021 was an important year for placement operations, not only for the 4 IPOs on the AIM market (Gabetti short Rent,

Alfonsino, SIF Italia and - on the PRO segment - Premiafinance) but also for 4 operations involving bond issues, a

segment on which activity had been very sporadic in recent years.

With regard to own account assets, a positive contribution was recorded from equity investments (which are however

marginal) as well as from investments in the banking book, without prejudice to the traditional prudence that

characterises the Bank's investments, mainly concentrated on short-term bonds that in the current negative interest rate

scenario represents an asset class on which it is difficult to make returns.

Lastly, compared to the previous year, there was a significant reduction in margins on carry trade transactions carried

out by the treasury, which led to a decrease in the net interest income.

Advisory & Corporate Finance

During 2021 the team dedicated to these activities continued developing its operating capacity, capturing the

opportunities that arose as part of the scenario of partial general recovery following the problems linked to the Covid-

19 epidemic that marked 2020.

In particular, in addition to continuing operations of current assignments, the team has acquired new ones, confirming

its proximity to companies for financial consulting activities (with particular regard to capital markets, structured finance

and M&A).

The mandates completed include: i) the listings of Premia Finance on the Euronext Growth Milan market, Professional

Segment, of G Rent S.p.A. Alfonsino S.p.A. and S.I.F. S.p.A., on the Euronext Growth Milan market with the role of

Euronext Growth Advisor and Global Coordinator; ii) a financial assistance assignment to a company active in the e-

learning sector, aimed at identifying and illustrating possible financial development tools for the benefit of the company;

iii) a financial assistance assignment for a company active in the marketing of tools and hardware aimed at obtaining

new short and medium/long-term credit lines; iv) a financial assistance assignment aimed at issuing a subordinated

debt instrument listed on the Vienna Stock Exchange by an operator active in the insurance sector listed on Euronext

Growth Milan; v) arranger appointments conferred by some selected issuers for the structuring of a bond basket

dedicated to companies listed on Euronext Growth Milan; vi) assistance to a company active in the renewable energy

sector in order to structure and complete the issue of a debt instrument classified as a sustainable instrument (green

bond), listed on the ExtraMot Pro Cube segment and fully subscribed by a leading international financial operator; vii) a

financial assistance assignment aimed at issuing a subordinated debt instrument by an operator active in the insurance

sector placed in a private placement.

The assignments overseen included: i) financial assistance as a part of an M&A transaction in the packaging sector; ii)

financial assistance to an issuer listed on the MTA segment for the purpose of issuing a professional opinion for the

Board of Directors, relating to the adequacy of the criteria for determining the issue price of new shares as part of a

reserved capital increase; iii) assistance to a primary real estate operator for the preparatory activities for the

presentation to the Municipality of Rome of an urban redevelopment project and for finding the necessary financial

resources to support it; iv) financial assistance to a company active in the professional electronics sector for the

identification of a partner interested in taking an interest in the share capital to support its development; v) financial

assistance in the sale process of a company active at international level in the dropshipping/e-commerce sector.

Lastly, during 2021, the ongoing Euronext Growth Advisor activities continued for some companies listed on the AIM

market. At 31 December 2021, 20 companies were assisted on the Euronext Growth Milan Market. The activity relating

to the listing of SMEs also continued with the acquisition, during the second half of the year, of two mandates for the

listing on the Euronext Growth Milan market of two companies active in the food and compound production sectors.

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Asset Management - Real Estate Fund Management

InvestiRE SGR is positioned in the market as a leading operator, specialising in the development of real estate portfolios

in various market sectors, targeted to domestic and international investors. At 31 December, InvestiRE managed around

7 billion euros of assets through 52 funds (all reserved funds except for one retail fund) and represents over 250 national

and international institutional investors, including insurance companies, pension funds, private equity real estate funds

and banks.

During 2021, managed assets experienced a net increase of approximately 5% compared to 31 December 2020.

The main investment activities that took place in 2021 concerned:

 the purchase, through contribution, for a value of 181 million euros, of a portfolio of 11 properties, primarily

rental properties for residential use, located in Milan, Turin and Rome, from the PRS Italy Fund. That fund, the

first of its kind in Italy, was established near the end of the previous year by leading Italian and international

investors, and aims to invest in residential portfolios to be developed and held for rental;

 in the "Social Housing" segment, the IBI fund completed the purchase of a complex of three lots located in

Reggio Emilia, a complex of residential units located in Molinella (BO) and a package of residential properties

located in Rome for a total of 24 million euros; in addition, the FASP, FHCR, FERSH, FHT and Veneto Casa funds

completed the acquisition of properties and development operations completed in their respective areas of

reference (future purchases) for a total of 46 million euros;

 by means of a contribution, the FIEPP Fund acquired four residential properties in the semi-central areas of

Rome, for an equivalent value of approximately 56 million euros; the properties will be subject to subsequent

split disposal;

 in the “Distressed” segment, in December, the Securis RE III Fund finalised the contribution of a real estate

portfolio for an equivalent value of approximately 14 million euros.

 the purchase, by the Spazio Sanità Fund, of an assisted living facility located in the province of Florence, for a

value of around 5 million euros.

The development activities of new projects also continued which made it possible to realise, among other things:

 the establishment of a new real estate fund, with an investment strategy in hotel properties which during the

year completed investments for approximately 50 million euros. This is a property located in the central area

of Rome, which will be affected by major redevelopment works, for a repositioning in the luxury segment;

 the takeover of the management of a Fund whose assets are entirely invested in an office building located in

the central area of Milan for a value of approximately 15 million euros. In relation to which a demolition and

reconstruction project is envisaged with a change of intended use of the property to residential and the

subsequent transfer through fractional sale;

 the establishment in September of a new real estate fund, with primary foreign investors, whose objective is

to complete the purchase of an area in the Municipality of Milan, for the construction of a student residential

complex;

 the establishment of a new real estate fund for the management and enhancement of the "distressed assets",

to be acquired by participating in judicial and bankruptcy auctions.

Furthermore, after the end of the financial year, 6 new real estate funds were set up, with capital raised or in the

collection phase for investments in the residential, student housing and tertiary sectors.

Enhancement activities on the existing portfolio saw development interventions, both for the redevelopment of existing

and new construction assets, for over 110 million euros, of which approximately 40% related to development projects

in the social housing sector. Other development activities concerned projects for tertiary use (about 56%) and for

residential use (about 44%).

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Enhancement projects in the tertiary sector include: (i) the substantial completion in the Monterosa Fund of the

redevelopment of two buildings for office use in the centre of Milan, with lease agreements concluded with leading

tenants; (ii) the completion of the renovation of a prestigious property in the centre of Rome (FIEPP Fund), intended for

the Italian headquarters of a leading international company in the media/internet TV content production sector; (iii) the

continuation of the project for the enhancement and repositioning of four properties for hotel use (Shire Fund), which is

expected to open next year.

As part of residential projects, in addition to the preliminary design activities for the redevelopment of the PRS Italy

portfolio, which also involved the building in Milan, Corso Magenta, intended for renovation, with the possible recovery

of a new commercial area and subsequent fractional sale of the units, the following should be noted: (i) the completion

for Twin 1 and 2 Funds of the construction works of 158 apartments in Milan, Cascina Merlata area, fully marketed on a

preliminary basis; (ii) the continuation of the transformation site from office to prestigious residential use, of a property

located in Rome, in the EUR area, owned by the Helios Fund, and (iii) the continuation for the HITA 2 Fund of the

residential redevelopment project of a prestigious property in the centre of Milan, whose preliminary marketing project

already started in 2021; (iv) for the FPEP Fund, the continuation of the second phase of the redevelopment of a residential

property located in the central area of Milan, intended for fractional sale and the continuation of the demolition works

of a real estate complex located in Rome.

In relation to the process of divestment of the assets, the main activities concerned mainly funds for residential use with

fractional sale, and the social housing funds which continued the marketing of the apartments. The sale of the residual

assets of the Funds in liquidation also continued. In particular, the Immobilium Fund, whose extraordinary extension

period is expected to expire in December 2022, completed the disposal of two properties at the end of the year, while

negotiations are underway for the two residual properties.

Trusteeship

Due to the domestic and international macroeconomic scenario, the 2021 financial year was characterised by a strong

recovery which in many cases even exceeded the initial forecasts that had already been optimistically formulated at the

beginning of the year.

The Italian economy recorded a +6.2% growth at 31 December 2021, well above the rosiest expectations of 5% and

also above the economic growth of the eurozone which recorded a +5.2% increase while the Italian stock market

produced extremely positive returns with the FTSE MIB index growing by 23%.

In this strong economic recovery scenario, Finnat Fiduciaria continued developing its business, to the satisfaction of both

its customers and the banking group to which it belongs. The operation to assist its customers in dealing with issues of

planning, protection and succession related to business activities and financial and real estate assets continued.

The year was also characterised by intense Governance activity carried out by the Body with strategic supervision

functions.

During the year 2021, the Board of Directors approved the implementation of Policies and Regulations including:

 Anti-Money Laundering Policy - update;

 Incentive systems - General principles;

 Fair value policy - update;

 New Group Regulations.

Shareholders are reassured on the constant compliance with the rules, their evolution and the correct application of the

internal policies and procedures also supported by the Parent Company, in particular as regards the Internal Audit, Anti-

Money Laundering, Compliance and Risk Control Functions.

The initiatives taken by the Company made it possible to successfully recover receivables, consolidating on the results

achieved in the previous years, having collected approximately 89% of the 2021 turnover to date.

The total of "Fiduciary accounts" amounts to a total of 1,762 million euros compared to 1,734 million euros at 31

December 2020 with an increase of 28 million euros considering the contraction of 96 million recorded at the end of

the first quarter of 2020 (1,678 million euros) compared to 31 December 2019 (1,774 million euros).

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Research & Development, Organisation

During the period in question, the Bank implemented the following:

Organisation Area:

• Multiline Asset Management has been activated and customers have started to subscribe to the new

product.

• The adoption of the OTP digital electronic signature to replace the graphometric signature was completed

and a new portal was implemented for the management of the documentation signing by customers.

• Developments have been completed and a new portal for the management of credit procedures has been

released.

• The development of the application for the optimisation of the consultancy activity of bankers was

completed and released for use.

• New functions integrated into the CRM system and related to the management of exemptions and of the

"Campaigns" have been developed and released.

IT and Technologies Area:

• ICT security levels have been enhanced with interventions on various areas (perimeter, PDL, server, VPN).

• The technological infrastructure of the primary site was updated and enhanced with interventions on the

virtual and backup structures.

• The Unified Communication system has been enhanced and updated.

• A new UPS on the DR site was activated and remote control was enhanced.

• The Wi-Fi system of the main office and of some peripheral offices has been expanded and updated.

• A new monitoring system was installed and is operational in the IT and technology offices.

Corporate Governance

The Bank has adopted a traditional administration and control model, comprising two bodies appointed by the

Shareholders' Meeting: the Board of Directors (with 10 Directors, of which one also holding the position of Honorary

Chairman), the central body in the corporate governance system, exclusively in charge of managing and providing

strategic supervision of the Bank and the Group, and the Board of Statutory Auditors with oversight functions over the

administration and compliance with the law and with the Articles of Association.

The Board of Directors, also in accordance with the recommendations of the Corporate Governance Code (hereinafter,

“the Code”), established three internal Committees (Risk Committee, Appointments Committee and Remuneration

Committee), consisting of a majority of Independent Directors, which provide proposals, advice and preliminary studies

for the Board.

By virtue of the provisions of the CONSOB Regulation issued through Resolution no. 17221 of 12 March 2010 and the

Code, the Board has also set up a Related Parties Committee, exclusively consisting of Independent Directors.

The Supervisory Body under Italian Legislative Decree no. 231/2001 is appointed by the Board of Directors.

The governance principles of Banca Finnat Euramerica, in addition to being grounded in the applicable laws and

regulations in force in Italy, are also inspired by international best practices on the matter and the recommendations of

the Corporate Governance Code.

The Board of Directors preventively identified the qualitative and quantitative composition of the governing body that is

deemed optimal, in view of the proper and most effective performance of the duties of the Board, in accordance with

the instructions in Bank of Italy Circular no. 285 of 17 December 2013, as subsequently updated.

Pursuant to the Bank of Italy Circular no. 285 of 17 December 2013, as subsequently updated, the Shareholders' Meeting

of the Bank of 30 April 2021 approved the remuneration and incentive policies.

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By virtue of that set out in Article 23 of Decree of the Ministry of the Economy and Finance no. 169/2020, on the fit and

proper requirements of officers of banks and other intermediaries regulated by the Consolidated Banking Law (the

“Decree”), in implementation of Article 26 of Italian Legislative Decree no. 385/1993 (the “Consolidated Financial Law”,

as subsequently amended), on 25 May 2021 and 14 June 2021, the Board of Directors verified, in relation to its members:

(i) that they met the requirements of professionalism, integrity (also pursuant to Ministerial Decree no. 162/2000)

and, where applicable, independence;

(ii) that they met the criteria of fairness and competence;

(iii) that they complied with the limit to the number of offices set out in Articles 17, 18 and 19 of the Decree (the

“Limit to Offices”);

(iv) that they met the criterion of independence of mind set out in Article 15 of the Decree, and put in place suitable

controls to prevent the risk of compromising such independence;

(v) that they had adequate time available to carry out the office, considering, inter alia, their participation in board

committees, set out Article 16 of the Decree (the "Time Commitment");

(vi) that, where applicable, they met the requirement of independence pursuant to Article 2, Recommendation 7

of the Code;

(vii) that, where applicable, they met the requirement of independence pursuant to Article 148, paragraph 3 of

Italian Legislative Decree no. 58/1998, as subsequently amended (the “Consolidated Financial Law”), and as referred to

in Article 147-ter, paragraph 4 of the Consolidated Financial Law;

(viii) that there were no reasons for incompatibility for the purposes of interlocking pursuant to Article 36 of Italian

Law Decree no. 201 of 6 December 2011 (the “Interlocking Prohibition”);

(ix) that the composition of the governing body as a whole complied with the indications set out in the “Guidance

on the qualitative and quantitative composition of the Board of Directors of Banca Finnat S.p.A.”, drawn up following the

annual self-assessment by the Board of Directors (published on the Company's website on 19 March 2021 - and then

updated on 31 March), and that it met the criteria of appropriate overall composition pursuant to Article 11 of the Decree.

In the course of the meetings of the Board of Directors, the Board was kept constantly informed on the measures

implemented to limit the risk of the spread of Covid-19.

The Report on Corporate Governance prepared pursuant to art. 123-bis of the Consolidated Law on Finance.

Provisions set out in Art. 36 of the Consob Market Regulations

(Subsidiaries established and regulated by the law of states not part of the European Union)

Banca Finnat Euramerica declares that the provisions of Art. 36 of Consob Regulation no. 1619/2007 (Market Regulation)

on the subject of conditions for the listing of parent companies incorporated or regulated according to the laws of

countries not part of the European Union and of significant relevance for the purposes of the consolidated financial

statements must not be applied - as expressly provided for in paragraph 2 of the aforementioned Art. 36 - to the

subsidiary Finnat Gestioni S.A. as the same, being below the limits set by the law, is not of "significant importance".

Market disclosure information

Regarding direct disclosure to the market, the Group declares that:

 with reference to the request formulated by Bank of Italy with its communication of 17 June 2008, at 31

December 2021, the Bank did not hold any exposure and/or interest, either directly or through vehicle

companies or other non-consolidated entities, in financial instruments or UCIs characterised by high-risk

investments, such as: - SPE (Special Purpose Entities) - CDO (Collateralized Debt Obligations) - Other subprime

and Alt-A exposures - CMBS (Commercial Mortgage-Backed Securities) - Leveraged Finance.

 the Board of Directors of Banca Finnat Euramerica S.p.A., pursuant to CONSOB Resolution no. 18079 of 20

January 2012, decided, on 21 January 2013, to comply with the simplification system set forth in Articles 70

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(paragraph 8) and 71 (paragraph 1-bis) of the Regulation adopted by CONSOB through Resolution no. 11971 of

14 May 1999, as subsequently amended, by making use of the right of listed companies to depart from the

obligation to submit the information documents required by Annex 3B of the CONSOB Regulation relating to

future significant extraordinary operations such as mergers, demergers, capital increase by non-cash

contributions, acquisitions and sales;

 with reference to the requests contained in joint Document no. 2 dated 6 February 2009 by the Bank of Italy,

CONSOB and ISVAP and in their subsequent Document no. 4 dated 4 March 2010 and the provisions of

paragraphs 15 and 25 of IAS 1, regarding disclosures to be made with respect to going concern assumptions,

please refer to the commentary provided in the Notes to the Financial Statements, Part A, Section 2 - General

financial reporting principles and Part E - Information on Risks and Related Hedging Policies;

 the Bank, by the prescribed deadline of 1 February 2018, exercised the option for the application of the

transitional rules prescribed by the Regulation (EU) no. 2017/2395, amending "Regulation (EU) no. 575/2013

as regards transitional arrangements for mitigating the impact of the introduction of IFRS 9 on own funds and

for the large exposures treatment of certain public sector exposures denominated in the domestic currency of

any Member State". The aforesaid transitional rules provide the possibility of including in Common Equity Tier

1 capital a transitional positive component, calculated in percentage terms, of the increase undergone by the

allocations for expected losses on receivables by effect of the first adoption of IFRS 9. This benefit is recognised

for a period of 5 years according to decreasing rates (95% in 2018, 85% in 2019, 70% in 2020, 50% in 2021

and 25% in 2022). From 1 January 2023 onwards, the impact deriving from the first-time adoption of IFRS 9

will be fully reflected in the calculation of own funds. In addition to the possibility of delaying the impact

deriving from the first-time adoption of the new accounting standard to 1 January 2018, the transitional

arrangements provide the possibility of delaying any impacts of the new impairment model also in the first

years following the date of first-time adoption of IFRS 9, albeit limited to those deriving from the measurement

of performing financial assets. On 28/4/2020, the EU, with Regulation no. 2020/0066 issued to combat the

effects of Covid-19, supplemented the above-mentioned transitional provisions, extending their application

from 2022 to 2024 (again with progressively decreasing percentages) for the new provisions recognised in

2020 and in 2021 against performing financial assets.

Capital adequacy, prudential ratios and information on risk management

Information relating to the level of capital adequacy and risk management of the Bank is amply illustrated in the Notes

to the Financial Statements, respectively, in Part F - Information on Equity, and in Part E - Information on risks and related

hedging policies.

Own funds and capital ratios

The Regulatory Capital is determined based on the harmonised regulations for Banks and the Investment companies

contained in the Regulation ("CRR") and in the EU Directive ("CRD IV") of 26 June 2013 that transfer to the European

Union the standards defined by the Basel Committee on Banking Supervision (known as Basel 3).

In order to enact the regulations, the Bank of Italy issued Circular no. 285 "Prudential Supervision Provisions for Banks”

on 17 December 2013.

Own funds at 31 December 2021 amounted to 248,893 thousand euros (241,646 thousand euros at 31 December 2020),

whereas the Total capital ratio, the CET1 capital ratio and the Tier1 ratio stood at 41.96% (47.47% at 31 December

2020). The Bank exercised the option to apply the transitional provisions for the deferment over time of the impacts of

the application of the new accounting standard on own funds - illustrated in the section "Market disclosure information”.

Without this application, Own funds would have been equal to 248,286 thousand euros, while the Total capital ratio, the

CET1 capital ratio and the Tier1 ratio would be equal to 41.90%.

These ratios widely exceed minimum capital requirements at consolidated level mandated for us by the Bank of Italy

on conclusion of the supervisory review and evaluation process (SREP) established by Directive no. 2013/36/EU (CRD

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IV).

Exposure to debt securities and sovereign debt financing

The detail required by Consob with its communication dated 31 October 2018 regarding the "Communication regarding

information to be provided in financial reports regarding the exposures held by listed companies in sovereign debt

securities" is reported in the Directors' Report on the consolidated financial statements.

Performance of subsidiaries

InvestiRE SGR S.p.A.

The company, based in Rome and incorporated on 4 February 2002, has the purpose of establishing and managing real

estate funds and was authorised by the Bank of Italy on 9 May 2002.

On 29 December 2014, the merger by absorption of Beni Stabili Gestioni SGR S.p.A. and Polaris Real Estate SGR S.p.A.

within InvestiRE Immobiliare SGR S.p.A. was finalised, with accounting and tax effects as from 1 January 2015.

As a result of this transaction, the share capital was increased from 8,600,000 euros to 14,770,000 euros and the

company was owned at 31 December 2020 by Banca Finnat Euramerica, with 50.16%, by Covivio 7 (formerly Beni Stabili

Siiq), with 17.90%, by Regia S.r.l. (G. Benetton Group) with 11.64%, by Fondazione Cariplo with 8.65%, by Cassa Italiana

di Previdenza e Assistenza Geometri with 7.72%, by ICCREA Holding with 2.38% and by Fondazione Cassa dei Risparmi

di Forlì with 1.55%.

On 8 March 2021, Banca Finnat acquired from Covivio 7 S.p.A. - a shareholder of InvestiRE SGR with a stake of 17.89%

- the entire equity investment (equal to 2,643 shares). At the same time, the Bank sold to E.N.P.A.F.- Ente Nazionale di

Previdenza e di Assistenza Farmacisti 8.9% (equal to 1,315 shares) of the shares purchased.

On conclusion of the transaction, the Bank increased its equity investment in Investire Immobiliare SGR from 50.16% to

59.15%.

At 31 December 2021, InvestiRE SGR S.p.A. holds an equity investment of 20% in the share capital of REDO SGR S.p.A.

for a value of 4,215 thousand euros. In November 2020, InvestiRE sold 2.56% of that equity investment (which it and

Cariplo held in the amount of 33.3% and 66.7%, respectively) following the already planned share reorganisation which

was completed with the entry into the capital of Cassa Depositi e Prestiti and Intesa San Paolo. On conclusion of the

transaction, the share capital of REDO SGR is divided as follows: 40% Fondazione Cariplo, 30% Cassa Depositi e Prestiti

S.p.A., 20%, InvestiRE and 10% Intesa San Paolo.

At 31 December 2021, the company manages 52 real estate funds, and the GAV of the managed assets came to 6,977

million euros compared to 6,644 million euros at 31 December 2020.

The draft financial statements at 31 December 2021 show profit of 6,042 thousand euros compared to 5,214 thousand

euros at 31 December 2020 and equity with a book value of 80,887 thousand euros compared to 79,995 thousand euros

at 31 December 2020. During the 2021 financial year the company recognised fee and commission income of 26,329

thousand euros compared to 24,588 thousand euros in 2020.

Finnat Fiduciaria S.p.A.

The company - incorporated in accordance with Italian Law no. 1966 of 23 November 1939 - is based in Rome and

operates as an equity and security trust company. It has a share capital of 1,500,000 euros held entirely by Banca Finnat

Euramerica S.p.A.

At 31 December 2021, assets under management totalled 1,762 million euros compared to 1,734 million euros at 31

December 2020.

The draft financial statements at 31 December 2021 show a profit of 115 thousand euros compared to 93 thousand

euros of the previous year. During 2021 the company recognised fee and commission income of 1,576 thousand euros

compared to 1,624 thousand euros at 31 December 2020. At 31 December 2021, the company had equity of 2,053

thousand euros compared to 2,000 thousand euros at 31 December 2020.

Separate financial statements at 31 December 2021 | BANCA FINNAT EURAMERICA

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Finnat Gestioni S.A.

The company, established on 10 April 2008, is based in Lugano and provides financial management and advisory services

including, in particular, asset and portfolio management services.

The Bank holds a 70% stake in the company's share capital, which amounts to CHF 750,000, while the remaining stake

is held by EFG Bank. Managed assets at 31 December 2021 came to CHF 119.5 million, compared to CHF 119 million at

31 December 2020.

The book value of equity at 31 December 2021 came to CHF 2,487 thousand compared to CHF 2,342 thousand at 31

December 2020.

The draft financial statements for the 2021 financial year show a profit of CHF 575 thousand compared to CHF 475

thousand at 31 December 2020.

During 2021 the company recognised fee and commission income of CHF 904 thousand compared to CHF 865 thousand

at 31 December 2020.

Natam Management Company S.A.

The company, established on 30 August 2016, has its registered office in Luxembourg and share capital of 750,000 euros

divided into 750 shares with a face value of 1,000 euros each, entirely subscribed by Banca Finnat.

Natam's corporate purpose is to perform collective asset management both in favour of harmonised funds and of

alternative investment schemes.

The draft financial statements for the 2021 financial year show a profit of Euro 112 thousand euros compared to 102

thousand euros at 31 December 2020.

The book value of equity at 31 December 2021 came to 952 thousand euros compared to 839 thousand euros at 31

December 2020.

During the 2021 financial year the company recognised fee and commission income of 1,796 thousand euros compared

to 1,768 thousand euros at 31 December 2020.

* * *

The graph of the group structure with related shareholdings is shown in the Report on operations of the consolidated

financial statements.

Separate financial statements at 31 December 2021 | BANCA FINNAT EURAMERICA

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The structure of Banca Finnat Euramerica

From an organisational point of view, the Bank has the following structure:

Separate financial statements at 31 December 2021 | BANCA FINNAT EURAMERICA

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Compared to 31 December 2020, the Bank's workforce decreased by two units as detailed below:

31.12.2021

31.12.2020

Employees

186

187

- executives

36

33

- middle managers

87

- office workers

63

67

Contractors

8

Financial advisor agents

4

5

Total

198

200

As regards the change in employees, it should be noted that during the year 9 employees (of which 1 on a fixed-term

basis and 8 on a permanent contract) ended their employment, while the total number of new recruits was 8 (of which

5 on a fixed-term basis and 3 on a permanent contract). The number of employees remained unchanged while that of

financial advisors agents decreased by 1 unit.

The new recruits, identified through extensive research and selection of candidates, made it possible to cope with

ordinary staff turnover, while continuing to improve the quality of some strategic sectors of activity, such as the

commercial network, implemented through the recruitment of high quality resources with consolidated professional

experience.

As far as training is concerned, 80 courses were held, for a total of 3,038 hours and 1,489 attendances (with 174

employees involved in one or more initiatives).

In compliance with Covid-19 prevention security protocols, almost all training courses were held in e-learning and virtual

classroom mode; interventions were aimed both at updating the knowledge of all staff on specific subjects (the e-

learning course in the privacy field "The European regulation on personal data" was released), and at

consolidating/strengthening the specialist skills of the commercial network (coaching and professional updating courses,

in line with the requirements and provisions of the MIFID II regulation).

Treasury shares

At 31 December 2021 the Bank held 28,810,640 treasury shares equal to 7.9% of the share capital for a total value of

14,059 thousand euros. During the 2021 financial year, the Bank did not carry out any transactions on treasury shares.

Separate financial statements at 31 December 2021 | BANCA FINNAT EURAMERICA

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STOCK EXCHANGE CAPITALISATION OF BANCA FINNAT EURAMERICA

Number of

Shares

Stock

Exchange

Listing

7 February

2022

Capitalisation

7 February

2022 (in

thousands of

euro)

Equity

(in

thousands

of euro)

Share

capital

(in

thousands

of euro)

ORDINARY SHARES

362,880,000

0.2620

95,075

254,237

72,576

Related party transactions

The Bank complies with the Regulations for Related Party Transactions, approved by the Board of Directors on 2 August

2013 and lastly updated on 16 December 2021 to define responsibilities and rules governing the identification, approval

and implementation of Related Party Transactions carried out by the Bank or by companies in the Banca Finnat banking

group, in accordance with the provisions of Article 2391-bis of the Italian Civil Code, the CONSOB Regulation adopted

through Resolution no. 17221 of 12 March 2010 and Part III, Chapter 11 of Bank of Italy Circular no. 285 on “Supervision

Provisions for Banks”.

The Bank has carried out transactions both with subsidiaries and with related parties, ordinary transactions of lesser

significance and of small amounts, under market conditions, which did not significantly impact the statement of financial

position or the results of the company.

The Bank did not carry out any "atypical or unusual" transactions with related parties or with parties other than related

parties which, due to their significance/relevance may have cast doubts on the safeguarding of the company's assets

and the protection of non-controlling interests.

The information required by IAS 24 is provided in Part H of the Notes to the Financial Statements.

Option for the domestic consolidated tax system

The Bank and its Italian-based subsidiaries have joined the "domestic consolidated tax system", pursuant to Article

117/129 of the Consolidated Income Tax Act. The option was renewed in June 2019 for the 2019-2021 period.

By virtue of this option, the Group companies determine their proportion of the taxes payable and the corresponding

tax income (taxable income or tax loss) is transferred to the Parent Company, relating to which a single taxable income

or loss is reported (resulting from the algebraic sum of its own and its participating subsidiaries' incomes/losses) and,

consequently, a single income tax debit/credit of the company is determined.

Separate financial statements at 31 December 2021 | BANCA FINNAT EURAMERICA

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Comparison of the main balance sheet and income statement data for the years 2021 and 2020

We present below, in summary form, the main financial statement data at 31 December 2021 compared with the

corresponding data for the 2020 financial year.

The tables reflect the minimum mandatory layout provided for in Circular no. 262/2005 issued by the Bank of Italy

(update 7).

STATEMENT OF FINANCIAL POSITION OF BANCA FINNAT EURAMERICA S.p.A.

(thousands of euro)

31.12.2021

31.12.2020

Absolute

change

ASSETS

Cash and cash equivalents

79,326

41,058

38,268

Financial assets at fair value through profit or loss:

30,728

27,228

3,500

a) financial assets held for trading

9,327

6,847

2,480

c) other financial assets mandatorily measured at fair value

21,401

20,381

1,020

Financial assets at fair value through other comprehensive

income

346,128

340,566

5,562

Financial assets at amortised cost

1,331,965

1,299,643

32,322

a) loans and receivables with banks

54,372

52,619

1,753

b) loans and receivables with customers

1,277,593

1,247,024

30,569

Equity investments

88,796

78,934

9,862

Property, equipment and investment property

13,235

11,715

1,520

Intangible assets

455

486

(31)

Tax assets

1,697

2,311

(614)

Other assets

36,344

19,923

16,421

TOTAL ASSETS

1,928,674

1,821,864

106,810

LIABILITIES AND EQUITY

Financial liabilities at amortised cost

1,653,866

1,557,962

95,904

a) due to banks

392

145

247

b) due to customers

1,653,474

1,557,817

95,657

Financial liabilities held for trading

2,065

40

2,025

Tax liabilities

2,669

2,284

385

Other liabilities

14,132

12,548

1,584

Post-employment benefits

1,581

1,549

32

Provisions for risks and charges

124

313

(189)

a) commitments and guarantees given

55

246

(191)

c) other provisions for risks and charges

69

67

2

Equity

254,237

247,168

7,069

TOTAL LIABILITIES AND EQUITY

1,928,674

1,821,864

106,810

Separate financial statements at 31 December 2021 | BANCA FINNAT EURAMERICA

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INCOME STATEMENT OF BANCA FINNAT EURAMERICA S.p.A.

(thousands of euro)

Financial

year

Financial

year

Change

2021

2020

Absolute

Percentage

Net interest income

10,256

16,235

(5,979)

-37%

Net fee and commission income

25,448

21,713

3,735

17%

Dividends and similar income

4,155

5,340

(1,185)

Net trading expense

1,521

(253)

1,774

Net gain from disposal or repurchase of:

215

1,448

(1,233)

a) financial assets at amortised cost

155

278

(123)

b) financial assets at fair value through

other comprehensive income

60

1,170

(1,110)

Net losses on other financial assets and liabilities at fair value

through profit or loss:

(177)

(253)

76

b) other financial assets mandatorily measured at fair value

(177)

(253)

76

Total income

41,418

44,230

(2,812)

-6%

Net impairment losses for credit risk associated with:

(1,049)

(5,234)

4,185

a) financial assets at amortised cost

(1,026)

(5,584)

4,558

b) financial assets at fair value through

other comprehensive income

(23)

350

(373)

Net modification gains (losses)

(157)

(185)

28

Net financial income

40,212

38,811

1,401

4%

Personnel expenses

(22,143)

(21,486)

(657)

Other administrative expenses

(14,067)

(12,556)

(1,511)

Net reversals of (accruals to) provisions for risks and charges

190

(211)

401

Depreciation and net impairment losses on property,

equipment and investment property/Amortisation and net

impairment losses on intangible assets

(2,355)

(2,386)

31

Other operating income, net

5,038

4,675

363

Operating costs

(33,337)

(31,964)

(1,373)

4%

Net loss on equity investments

24

(73)

97

Profit (loss) from continuing operations before taxes

6,899

6,774

125

2%

Income taxes

(1,220)

(1,193)

(27)

Profit for the year

5,679

5,581

98

2%

Separate financial statements at 31 December 2021 | BANCA FINNAT EURAMERICA

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A series of Bank operating ratios at 31 December 2021 are shown below compared with the operating ratios of the

previous year.

2021

(%)

2020

(%)

Net interest income/Total income

24.76

36.71

Net fee and commission income/Total income

61.44

49.09

Cost/income ratio (Operating costs/Total income)

80.49

72.27

ROE

(profit for the year/equity)

2.23

2.26

ROA

(profit for the year/total assets)

0.29

0.31

Separate financial statements at 31 December 2021 | BANCA FINNAT EURAMERICA

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Main transactions in the year, significant subsequent events and operating outlook

Most significant transactions of the year

 On 10 February 2021, the Bank's Board of Directors examined and approved the Group's new Business Plan for

the period 2021-2023.

 On 8 March 2021, Banca Finnat acquired from Covivio 7 S.p.A. (formerly Beni Stabili Siiq) - a shareholder of

InvestiRE SGR with a stake of 17.89% - the entire equity investment (equal to 2,643 shares) at a price that

takes account of the minority discount due to the illiquid nature of the stakes sold. At the same time, the Bank

sold to E.N.P.A.F.- Ente Nazionale di Previdenza e di Assistenza Farmacisti 8.9% (equal to 1,315 shares) of the

shares purchased, at the same price conditions. That transaction enabled E.N.P.A.F. to enter the capital of

InvestiRE and, as a long-term shareholder of the asset management company, can contribute to the strategic

development of InvestiRE. On conclusion of the transaction, the Bank increased its equity investment in Investire

Immobiliare SGR from 50.16% to 59.15%. The details of the transaction are illustrated in the “Documento

informativo relativo ad operazioni di maggiore rilevanza con parti correlate” (Disclosure on related party

transactions of greater significance) published on the Bank's website www.bancafinnat.it, Investor

Relations/Corporate Governance/Documento informativo operazione con soggetto collegato e allegati section

(in Italian) published on 21 January 2021.

 On 30 April 2021 the Bank's Ordinary Shareholder's Meeting:

o approved the Separate Financial Statements and examined the Group Report at 31 December 2020;

o taking account of that set out in the Recommendation on the distribution of dividends of the Bank of

Italy of 16 December 2020, the Bank resolved to distribute the following dividends to Shareholders:

1) a first gross dividend of 0.00245 euros per share, which was paid from 26 May 2021 (ex dividend

date 24 May 2021). That amount falls within the maximum permitted in compliance with the

provisions of said recommendation; 2) a second dividend of 0.01085 euros per share, to be paid in

the time window from 1 October 2021 to 31 January 2022, whose distribution, in compliance with the

provisions of said recommendation, shall in any event be subject to the verification by the Board of

Directors that there are no limits or conditions imposed by the European Central Bank and the Bank of

Italy that could prevent or limit said distribution. This dividend was distributed on 27 October 2021.

o appointed the members of the Board of Directors and the Board of Statutory Auditors for the three-

year period 2021-2023;

o appointed Giampietro Nattino as Honorary Chairman for the three-year period 2021-2023;

o appointed Salvatore Ferri as Chairman of the Board of Statutory Auditors for the three-year period

2021-2023;

o approved the Remuneration Policy drawn up pursuant to Article 123-ter of Italian Legislative Decree

no. 58/98.

 On 5 May 2021, the Bank's Board of Directors appointed Marco Tofanelli as Chairman, Lupo Rattazzi as Vice

President and Arturo Nattino as Managing Director. The new corporate officers are illustrated on page 4. The

Board also appointed the members of the Remuneration Committee, Risk Committee, Appointments Committee

and the Members of the Supervisory Body.

 On 14 June 2021, the Bank's Board of Directors, with a position opinion from the Appointments Committee and

approval of the Board of Statutory Auditors, resolved to appoint via co-optation Cavaliere di Lavoro Giampietro

Nattino as Executive Director, replacing Ermanno Boffa, who resigned on 19 May 2021. At the same meeting,

the Board established the Group Management and Coordination Committee, which will assist the Managing

Director and General Manager in coordinating the business initiatives of the Bank and the Group, and in the

steering and coordination of the investees.

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 On 14 July 2021, as decided by the Board of Directors on 14 June 2021, the Bank undertook to irrevocably

subscribe units of the “BFE Revalue” real estate fund for a total value of 2 million euros, to be finalised through

payment in cash (200 thousand euros paid at 31 December 2021). That fund, managed by the subsidiary

InvestiRE SGR S.p.A., manages the real estate lodged as collateral for loans subject to foreclosure, with targeted

actions mainly for the purpose of participating in auctions and stimulating market demand, for the purpose of

favouring the settlement of unsatisfied loans, supporting the value of assets with the potential to increase in

value outside of the foreclosure procedure. The fund will also manage the properties contributed to the Bank

as a result of their assignment to the Bank following the positive outcome of pending foreclosure procedures.

 On 5 August 2021, the Bank's Board of Directors appointed Mr. Giulio Bastia, Assistant General Manager and

Financial Reporting Manager of the Bank, the title of "Deputy" General Manager in order to allow the Assistant

General Manager to exercise the functions attributed to the General Manager in the event of their absence

from service or impediment.

 On 22 September 2021, the Board of Directors of the Bank met in the presence of the entire Board of Statutory

Auditors for the delivery by the Bank of Italy of the Inspection Report concerning the ordinary inspection carried

out on the whole Banking Group from 6 April 2021 to 14 July 2021. The inspection was specifically focused on

the governance of the Group and the operating and reputational risk and lending activities of the Bank.

 On 20 October 2021, the Board of Directors of the Bank, in line with the provisions of the Shareholders' Meeting

of 30 April 2021, taking into account the provisions of the recommendation on the matter of dividend

distribution of the Bank of Italy of 16 December 2020 and having verified the absence of limits and conditions

dictated by the European Central Bank and the Bank of Italy that could prevent or limit said distribution, ordered

the payment of the following additional dividend equal to 0.01085 euros per share, which was paid on 27

October 2021 (coupon detachment date 25 October 2021).

Covid-19

In the first days of January 2021 there was a general worsening of the epidemiological situation in the country. In this

context, on 14 January the Council of Ministers with Italian Law Decree no. 2 extended the state of emergency linked to

the Covid-19 pandemic expiring on 31 January to 30 April 2021; on the same date, the Government also issued a new

Prime Ministerial Decree with anti-contagion measures in force from 16 January to 5 March 2021. The Prime Ministerial

Decree set limits on travel between regions and confirmed the division of the country into red, orange and yellow zones,

based on the contagion indexes, confirming all the measures already in place and expiring at the end of January. In

order to manage and reduce the spread of the pandemic, in the first few days of January the first phase of the vaccination

campaign began. On 2 March, the Government issued a new Prime Ministerial Decree that dictated new rules and

confirmed the previous ones in force from 6 March to 6 April. The restrictive measures enacted included the closure of

all schools of all levels in the red zones.

On 21 April 2021, in light of the comforting scientific data, which recorded a significant slowdown in the epidemic, and

in consideration of the trend in the vaccination campaign, the Government approved the Reopening Decree applicable

from 26 April to 31 July. The text of the Decree outlines a schedule for gradually removing the restrictions introduced in

the previous months, with scheduled gradual reopenings of bars, restaurants, gyms and cultural activities. The various

measures set out included the introduction throughout Italy of “Covid-19 Green Passes” for the purpose of certifying that

an individual has been vaccinated or has healed from the infection or that they have had a quick molecular or antigen

test with a negative result. The pass allows people to move between regions, even those assigned different colours.

The Decree also extended to 31 July the state of health emergency that was expiring on 30 April. During the month of

June, a further improvement in the epidemiological situation was recorded throughout the national territory mainly due

to the achievement of a high vaccination coverage and therefore starting from 28 June, with an order signed by the

Minister of Health, the whole national territory was declared a "White zone".

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On 28 June, the Prime Minister signed the Decree defining the procedures for issuing "Covid-19 digital green

certifications" (the Green Pass); the certificate is intended to facilitate participation in public events and travel on the

national territory and from 1 July guarantees holders free circulation within the European Union.

On 13 October 2021, in compliance with the provisions of Italian Legislative Decree no. 127/2021 which extends the

obligation, starting from 15 October, to use the Covid-19 green certificate also to workers employed in the private sector,

the Bank issued a circular setting out the procedure for checking the Green Pass. The circular, also distributed to other

companies of the Group, defines the procedures for checking possession of the green certificate to access the Bank's

workplaces and carry out one's work. The recipients of the obligation to hold and exhibit (upon request) a green pass

are all those who carry out, in any capacity, their work in the Bank's offices, in particular: employees, collaborators,

trainees, external consultants and suppliers. For each place of work, persons responsible for checking the green pass

using the national C19 Verification App were formally appointed by the Bank. The Bank has also established the role of

Covid Manager, who coordinates the activities of all the persons responsible for checks.

In the last days of December 2021 there was a general worsening of the epidemiological situation in the country due

to the spread of a new variant called Omicron. This new variant, identified for the first time in mid-November 2021 in

South Africa and detected in Italy in the first days of December 2021, has a greater transmissibility and aggressiveness

than the Delta and the other variants, due to a faster and easier diffusion of the virus. Especially in consideration of the

speed of spread of Covid-19, at the end of December 2021 the Government approved two decree-laws to introduce

urgent measures for the containment and spread of the epidemic, and provisions on health surveillance.

On 24 December 2021, the Council of Ministers issued decree-law no. 221 which provides, among other things, for the

extension until 31 March 2022 of the national state of emergency connected to the protraction of the epidemic. The

decree also provided for the obligation to wear FFP2 type masks for access and use of all means of transport and for

shows open to the public.

On 30 December 2021, the Council of Ministers approved decree-law no. 229, on health surveillance, which provides,

starting from 10 January 2022 and until the end of the state of emergency, the extension of the reinforced Green Pass

( "Super Green Pass" obtainable only with the completion of the vaccination cycle or through recovery) for access to the

following activities: hotels and accommodation facilities, outdoor catering services, conference centres, ski lifts, etc.; the

decree also provides for the use of the Super Green Pass for access and use of means of transport including local and

regional public transport.

In particular, in terms of support for its customers, during the 2020 financial year, the Bank had promptly activated the

measures envisaged by the "Cura Italia" Decree which, in Article 56, had established an extraordinary moratorium for

the benefit of micro enterprises and SMEs to which loans or credit lines had been granted. The deadline for the measures

contained in the Decree was originally scheduled for 30 September 2020; subsequently, confronted with the protracted

economic effects of the health crisis, the Government postponed this original deadline several times, until 31 December

2021.

The Notes to the Financial Statements (Part A - Accounting policies, Section 4 - Other aspects) provide information on

the effects that the Covid-19 epidemic has produced on risk management strategies, objectives and policies, as well as

on the economic and financial situation of the Bank in compliance with the communication of the Bank of Italy of 21

December 2021.

In particular, the positions subject to the measures envisaged by the "Cura Italia" Decree, represented in the table "4.4a

Loans valued at amortised cost subject to Covid-19 support measures: gross value and total impairment losses" of the

Notes to the Financial Statements, are constantly monitored by the bank and currently do not show any signs of

deterioration.

Separate financial statements at 31 December 2021 | BANCA FINNAT EURAMERICA

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In particular as regards the loans subject to a moratorium, which fall within the scope of the "Guidelines on legislative

and non-legislative moratoriums on loan repayments applied in the light of the Covid 19 crisis" published by the EBA

(EBA/GL/2020/02) and subsequent amendments and additions, at 31 December 2021 there were two positions for a

total exposure of 1,571 thousand euros compared to 18 positions for a total of 18,663 thousand euros in place at 31

December 2020. The loans subject to the moratorium no longer compliant with the GL and not valued as forborne

performing exposure amount to 6 positions at 31 December 2021 for a total exposure of 16,756 thousand euros. These

positions, which the Bank constantly monitors even after the expiry of the forbearance measures, do not presently show

signs of deterioration.

Significant events occurring after the end of the year

In the period between the end of the 2021 financial year and the date of preparation of these Financial Statements, no

significant events or facts emerged that would entail the adjustment of the economic, equity and financial situation of

the Bank.

However, it should be noted that on 11 February 2022 the Mr Carlo Carlevaris, for many years Chairman of the Bank's

Board of Directors, passed away. The whole Banca Finnat Euramerica Group remembers with deep emotion his qualities

of great professionalism and humanity.

Covid-19

Since the beginning of 2022 there has been a general worsening of the epidemiological situation in the country due to

the wide spread of the new Omicron variant which recorded several times, during the month of January throughout the

national territory, peaks of positive Covid-19 tests exceeding 200,000 units per day and a number of deaths exceeding

400 units.

Especially in consideration of the speed of the epidemic, on 7 January 2022 the Government issued Italian Decree Law

no. 1 for the adoption of further measures for the prevention and containment of Covid-19 in order to limit the increasing

trend of the contagion curve and to implement protection measures for the most exposed categories. In particular,

starting from 15 February and until 15 June 2022, the decree provides for the vaccination obligation for all workers in

the public and private sectors aged 50. In this regard it should be noted that the reinforced Green Pass, whose verification

is the responsibility of employers, constitutes an essential requirement for carrying out working activities. The decree

also provides for the extension of the basic Green Pass to access:

- personal services (barbers, hairdressers and beauticians) starting from 20 January 2022;

- public offices, postal, banking and financial services and commercial activities not of primary necessity, starting from

1 February 2022.

Within its competence, the Bank promptly respected and applied the provisions of the new government measures

described above; the Bank also updated and integrated the circular issued on 13 October 2021 which defines the

methods for checking possession of the Green Pass to access workplaces, it also further strengthened the health facilities

already in place, and increased the number of smart working employees.

The Bank's Coronavirus Emergency Committee continuously monitors the evolution of the pandemic at national level in

order to provide indications to the top management on how to deal with all the cases that could arise.

It should be noted that, despite the emergency situation described above, all the companies of the Banca Finnat Group

have ensured and continue to ensure operational continuity towards counterparties and the market, always guaranteeing

the maximum efficiency of the service offered to customers both in branches and through online banking services.

Invasion of Ukraine by Russia

At 5 a.m. local time on 24 February 2022, Russian armed forces crossed the borders and began the invasion of Ukraine.

The advance of the Soviet troops continued day after day with the aim of reaching the capital Kiev.

The NATO countries reacted immediately by activating their defensive plans by putting their forces on maximum alert.

Through the President of the Commission, the European Union has announced heavy economic sanctions such as: the

Separate financial statements at 31 December 2021 | BANCA FINNAT EURAMERICA

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interruption of the export of technology to Moscow, the freezing of Russian assets and the end of Russian banks' access

to the European capital market.

The European Union, aligning itself with the position of the United States, Great Britain and Canada, has also provided

to exclude some Russian banks from the Swift international payment system.

At the moment it is not possible to make any predictions regarding the potential economic impacts deriving from the

situation of serious international instability that has arisen as a result of the ongoing war. Taking into account the current

situation and in the desirable hypothesis of a rapid resolution of hostilities, it is not believed that these impacts could

be significant.

On 7 March 2022, with a joint press release, the Bank of Italy, CONSOB, IVASS and UIF called the attention of the

supervised entities to full compliance with the restrictive measures applied by the European Union in response to the

Russian military aggression in Ukraine. In compliance with what is reported in the Press Release, the Bank is putting in

place all the controls and devices necessary in order to comply with the restrictive measures adopted by the EU,

constantly monitoring the updating of the measures in question.

Operating outlook

The forecasts for the year 2022, drawn up at the beginning of the year by the Bank and the other Group Companies,

were prepared taking into account the persistence of the Covid-19 epidemiological emergency situation but also the

benefits deriving from the economic policy measures adopted at national and international level and a consequent

resolution of the crisis generated by the pandemic starting from the end of the current year. The expected results allow

us to confirm interesting levels of profitability and capitalisation also for 2022.

Taking into account the above-described serious international situation in progress, in the periodic reports scheduled for

the year, the Bank will provide updates on the effects that the evolution of the Russian invasion in Ukraine may have

on the performance of company activities.

Separate financial statements at 31 December 2021 | BANCA FINNAT EURAMERICA

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Dear Shareholders,

We submit for your approval the financial statements for the 2021 financial year consisting of the Statement of Financial

Position, the Income Statement, the Statement of Comprehensive Income, the Statement of Changes in Equity, the Cash

Flow Statement and the Notes to the Financial Statements, as well as the relative attachments and the Report on

management performance.

We also propose to allocate the profit for the year as follows:

profit for the year Euro 5,679,140

 to legal reserve, for the 5% portion to be allocated in

accordance with the law and the Articles of Association Euro 283,957

 to the 334,069,360* ordinary shares

a gross dividend of 0.012 euros per share

(equal to 6% of the nominal value of the same shares) Euro 4,008,832

 to the extraordinary reserve Euro 1,386,351

______________

total Euro 5,679,140

* Number of shares calculated by subtracting from the total number of ordinary shares, equal to 362,880,000, the

treasury shares in portfolio at the date of approval of the draft financial statements at 31 December 2021 equal to

28,810,640.

The dividends proposed for each eligible ordinary share, as indicated above, have been calculated considering the

redistribution of the profit referring to treasury shares held in the portfolio at the date of the approval of the draft

financial statements at 31 December 2021 by the Board of Directors.

Pursuant to Art. 1 of the Ministerial Decree of 2 April 2008, the dividends referred to in this proposal, exclusively for tax

purposes, are presumed to be formed with the profits produced in years prior to 31 December 2007, having ascertained

the presence of adequate reserves formed with profits generated up to the year in progress on that date.

It should also be noted that the aforementioned allocation of the profit for the year complies with the provisions of Art.

6 of Italian Legislative Decree no. 38/2005.

* * * *

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After the aforementioned allocations, the item "Reserves" will assume the following values:

 legal reserve 12,087,660 euros

 dividend adjustment reserve 6,724,772 euros

 purchased treasury shares reserve 14,059,346 euros

 extraordinary reserve 87,537,037 euros

 retained earnings restated pursuant to IAS 19 179,409 euros

 IFRS 9 FTA reserve (488,407) euros

 merger surplus reserve 524,609 euros

____________________

Total profit reserves 120,624,426 euros

Other reserves

 profits on treasury shares 4,277,111 euros

 earnings (losses) on HTCS shares (35,300) euros

____________________

Total reserves 124,866,237 euros

===================

Before moving on to the analysis of the various financial statements items, the Board wishes to thank all the Company's

staff for their valuable work.

Rome, 21 March 2022

For the Board of Directors

The Chairman

(Mr. Marco Tofanelli)

Separate financial statements at 31 December 2021 | BANCA FINNAT EURAMERICA

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STATEMENT OF FINANCIAL POSITION OF BANCA FINNAT EURAMERICA S.P.A.

(amounts in euro)

Assets

31.12.2021

31.12.2020

10.

Cash and cash equivalents

79,326,228

41,057,700

20.

Financial assets at fair value through profit or loss

30,728,341

27,228,019

a) financial assets held for trading

9,326,979

6,847,169

c) other financial assets mandatorily measured at fair value

21,401,362

20,380,850

30.

Financial assets at fair value through other comprehensive income

346,128,099

340,566,359

40.

Financial assets at amortised cost

1,331,964,945

1,299,642,720

a) loans and receivables with banks

54,371,909

52,618,913

b) loans and receivables with customers

1,277,593,036

1,247,023,807

70.

Equity investments

88,796,093

78,934,134

80.

Property, equipment and investment property

13,235,327

11,715,038

90.

Intangible assets

455,469

485,711

of which:

- goodwill

300,000

100.

Tax assets

1,696,982

2,311,165

a) current

28,120

706,013

b) deferred

1,668,862

1,605,152

120.

Other assets

36,342,196

19,923,373

Total assets

1,928,673,680

1,821,864,219

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STATEMENT OF FINANCIAL POSITION OF BANCA FINNAT EURAMERICA S.P.A.

(amounts in euro)

Liabilities and equity

31.12.2021

31.12.2020

10.

Financial liabilities at amortised cost

1,653,866,802

1,557,961,350

a) due to banks

392,371

144,834

b) due to customers

1,653,474,431

1,557,816,516

20.

Financial liabilities held for trading

2,064,792

39,706

60.

Tax liabilities

2,669,367

2,283,596

a) current

486,020

333,269

b) deferred

2,183,347

1,950,327

80.

Other liabilities

14,130,691

12,549,197

90.

Post-employment benefits

1,580,734

1,549,310

100.

Provisions for risks and charges

124,246

312,620

a) commitments and guarantees given

55,246

245,620

c) other provisions for risks and charges

69,000

67,000

110.

Valuation reserves

66,845,325

61,012,734

140.

Reserves

123,195,929

122,058,280

160.

Share capital

72,576,000

170.

Treasury shares (-)

(14,059,346)

180.

Profit for the year (+/-)

5,679,140

5,580,772

Total liabilities and equity

1,928,673,680

1,821,864,219

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INCOME STATEMENT OF BANCA FINNAT EURAMERICA S.P.A.

(amounts in euro)

Items

2021

2020

10.

Interest and similar income

13,678,203

18,404,102

of which: interest calculated using the effective interest method

9,884,861

14,877,434

20.

Interest and similar expense

(3,421,753)

(2,169,438)

30.

Net interest income

10,256,450

16,234,664

40.

Fee and commission income

27,453,359

23,738,566

50.

Fee and commission expense

(2,005,595)

(2,025,085)

60.

Net fee and commission income

25,447,764

21,713,481

70.

Dividends and similar income

4,155,136

5,340,473

80.

Net trading expense

1,520,853

(253,157)

100.

Net gain from disposal or repurchase of:

214,402

1,448,156

a) financial assets at amortised cost

154,676

277,943

b) financial assets at fair value through other comprehensive

income

59,726

1,170,213

110.

Net losses on other financial assets and liabilities at fair value

through profit or loss

(177,486)

(253,272)

b) other financial assets mandatorily measured at fair value

(177,486)

(253,272)

120.

Total income

41,417,119

44,230,345

130.

Net impairment losses for credit risk associated with:

(1,049,339)

(5,233,878)

a) financial assets at amortised cost

(1,026,234)

(5,584,332)

b) financial assets at fair value through other comprehensive

income

(23,105)

350,454

140.

Net modification gains (losses)

(156,668)

(185,370)

150.

Net financial income

40,211,112

38,811,097

160.

Administrative expenses:

(36,209,638)

(34,041,413)

a) personnel expenses

(22,143,020)

(21,485,911)

b) other administrative expenses

(14,066,618)

(12,555,502)

170.

Net reversals of (accruals to) provisions for risks and charges

190,373

(210,996)

a) commitments and guarantees given

190,373

(143,996)

b) other

-

(67,000)

180.

Depreciation and net impairment losses on property, equipment

and investment property

(2,263,577)

(2,299,173)

190.

Amortisation and net impairment losses on intangible assets

(91,137)

(86,740)

200.

Other operating income, net

5,038,278

4,673,897

210.

Operating costs

(33,335,701)

(31,964,425)

220.

Net loss on equity investments

24,227

(73,073)

260.

Profit (loss) from continuing operations before taxes

6,899,638

6,773,599

270.

Income taxes

(1,220,498)

(1,192,827)

280.

Profit from continuing operations after taxes

5,679,140

5,580,772

300.

Profit for the year

5,679,140

5,580,772

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STATEMENT OF COMPREHENSIVE INCOME OF BANCA FINNAT EURAMERICA S.P.A.

(amounts in euro)

Items

2021

2020

10.

Profit for the year

5,679,140

5,580,772

Other comprehensive income after taxes that will not be

reclassified to profit or loss

20.

Equity instruments at fair value through other comprehensive

income

6,534,516

2,777,312

70.

Defined benefit plans

(28,799)

36,420

Other comprehensive income after taxes that will be reclassified to

profit or loss

140.

Financial assets (other than equity instruments) at fair value

through other comprehensive income

(673,126)

1,076,686

170.

Total other comprehensive income after tax

5,832,591

3,890,418

180.

Comprehensive income (Items 10+170)

11,511,731

9,471,190

Item 20. also includes the change in the fair value of the investments in subsidiaries.

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STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2021

(in euro)

Allocation of previous

year's profit

Changes during the year

Equity at

31/12/2021

Changes

in

reserves

Equity transactions

Comprehensive

income for

2021

Balances at

31/12/2020

Change in

opening

balances

Balances at

01/01/2021

Reserves

Dividends

and other

allocations

New share

issue

Repurchase

of treasury

shares

Extraordinary

dividend

distribution

Change in

equity

instruments

Derivatives

on

treasury

shares

Stock

options

Share capital:

72,576,000

-

72,576,000

a) ordinary

shares

72,576,000

-

72,576,000

b) other

shares

-

Share premium

-

Reserves:

122,058,280

1,137,649

-

123,195,929

a) income-

117,816,469

1,137,649

-

118,954,118

b) other

4,241,811

-

4,241,811

Valuation reserve

61,012,734

-

5,832,591

66,845,325

Equity

instruments

-

Treasury shares

(14,059,346)

-

(14,059,346)

Profit for the year

5,580,772

(1,137,649)

(4,443,123)

-

5,679,140

Equity

247,168,440

-

(4,443,123)

-

11,511,731

254,237,048

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STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2020

(in euro)

Allocation of previous

year's profit

Changes during the year

Equity at

31/12/2020

Changes

in reserves

Equity transactions

Comprehensive

income for

2020

Balances at

31/12/2019

Change in

opening

balances

Balances at

01/01/2020

Reserves

Dividends

and other

allocations

New share

issue

Repurchase

of treasury

shares

Extraordinary

dividend

distribution

Change in

equity

instruments

Derivatives

on treasury

shares

Stock

options

Share

capital:

72,576,000

-

72,576,000

a)

ordinary

shares

72,576,000

-

72,576,000

b) other

shares

-

Share

premium

-

Reserves:

121,280,592

777,688

-

122,058,280

a)

income-

117,038,781

777,688

-

117,816,469

b) other

4,241,811

-

4,241,811

Valuation

reserve

57,122,316

-

3,890,418

61,012,734

Equity

instruments

-

Treasury

shares

(14,059,346)

-

(14,059,346)

Profit for the

year

777,688

(777,688)

-

5,580,772

Equity

237,697,250

-

237,697,250

-

9,471,190

247,168,440

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STATEMENT OF CASH FLOWS (indirect method)

(amount in euros)

Amount

31.12.2021

31.12.2020

A. OPERATING ACTIVITIES

1. Operations

10,461,029

18,480,350

- profit for the year (+/-)

5,679,140

5,580,772

- net losses on financial assets held for trading and on other financial

assets and liabilities at fair value through profit or loss (-/+)

(423,879)

77,002

- gains/losses on hedging transactions (-/+)

-

- net impairment losses for credit risk (+/-)

1,049,339

5,233,878

- amortisation, depreciation and net impairment losses on property,

equipment and investment property and intangible assets (+/-)

2,424,488

2,441,139

- net accruals to provisions for risks and charges and other

costs/revenue (+/-)

766,420

1,116,321

- taxes, duties and tax credits not liquidated (+/-)

(1,220,498)

(1,192,827)

- net impairment losses/reversals of impairment losses on non-current

assets held for sale and disposal groups net of tax effect (+/-)

-

- other adjustments (+/-)

2,186,019

5,224,065

2. Cash generated by/used for financial assets

(59,195,411)

227,754,502

- financial assets held for trading

(1,786,788)

51,025,099

- financial assets at fair value

-

- other financial assets mandatorily measured at fair value

(1,289,655)

293,644

- financial assets at fair value through other comprehensive income

(2,867,483)

27,164,003

- financial assets at amortised cost

(36,762,888)

143,575,336

- other assets

(16,488,597)

5,696,420

3. Cash generated by/used for financial liabilities

94,842,861

(256,628,548)

- financial liabilities at amortised cost

92,190,450

(258,348,409)

- financial liabilities held for trading

2,025,086

(112,061)

- financial liabilities at fair value

-

- other liabilities

627,325

1,831,922

Net cash flows generated by/used in operating activities

46,108,479

(10,393,696)

B. INVESTING ACTIVITIES

1. Cash generated by

3,433,564

3,548,330

- disposals of equity investments

-

- dividends from equity investments

3,432,800

3,548,330

- disposals of property, equipment and investment property

764

-

- disposals of intangible assets

-

- disposals of business units

-

2. Cash used for

(6,830,392)

(122,393)

- purchases of equity investments

(6,683,498)

-

- purchases of property, equipment and investment property

(85,999)

(57,341)

- purchases of intangible assets

(60,895)

(65,052)

- purchases of business units

-

Net cash flows generated by/used in investing activities

(3,396,828)

3,425,937

C. FINANCING ACTIVITIES

- issues/repurchases of treasury shares

-

- issues/purchases of equity instruments

-

- dividend and other distributions

(4,443,123)

-

Net cash flows used in financing activities

(4,443,123)

-

NET CASH FLOWS FOR THE YEAR

38,268,528

(6,967,759)

Key:

(+) generated

(-) used

RECONCILIATION

31.12.2021

31.12.2020

FINANCIAL STATEMENT ITEMS

Cash and cash equivalents at the beginning of the year

41,057,700

48,025,459

Total net cash flows for the year

38,268,528

(6,967,759)

Cash and cash equivalents: effect of exchange rate changes

Cash and cash equivalents at the end of the year

79,326,228

41,057,700

Separate financial statements at 31 December 2021 | BANCA FINNAT EURAMERICA

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NOTES TO THE FINANCIAL STATEMENTS OF BANCA FINNAT EURAMERICA S.p.A.

The sections of the notes to the financial statements applicable to the Bank are shown below.

Part A – Accounting policies

A.1 - General Information

Section 1 - Declaration of compliance with international accounting standards

Section 2 - General financial reporting principles

Section 3 - Subsequent events

Section 4 - Other information

A.2 – Information on the main financial statement items

A.3 - Information on transfers between portfolios of financial assets

A.4 - Information on fair value

A.5 - Information on day one profit/loss

Part B – Information on the statement of financial position

ASSETS

Section 1 - Cash and cash equivalents - Item 10

Section 2 - Financial assets at fair value through profit or loss - Item 20

Section 3 - Financial assets at fair value through other comprehensive income - Item 30

Section 4 - Financial assets at amortised cost - Item 40

Section 7 - Equity investments - Item 70

Section 8 - Property, equipment and investment property - Item 80

Section 9 - Intangible assets - Item 90

Section 10 - Tax assets and liabilities - Items 100 (assets) and 60 (liabilities)

Section 12 - Other assets - Item 120

LIABILITIES

Section 1 - Financial liabilities at amortised cost - Item 10

Section 2 - Financial liabilities held for trading - Item 20

Section 6 - Tax liabilities - Item 60

Section 8 - Other liabilities - Item 80

Section 9 - Post-employment benefits - Item 90

Section 10 – Provisions for risks and charges – Item 100

Section 12 - Company's equity - Items 110, 140, 160 and 170

Other information

Part C – Information on the Income Statement

Section 1 - Interest - Items 10 and 20

Section 2 - Fees and commissions - Items 40 and 50

Section 3 - Dividends and similar income - Item 70

Section 4 - Net trading expense - Item 80

Section 6 - Net gain from disposal or repurchase - Item 100

Section 7 - Net result on other financial assets and liabilities at fair value through profit or loss

- Item 110

Section 8 - Net impairment losses for credit risk - Item 130

Section 9 - Net modification gains (losses) - Item 140

Section 10 - Administrative expenses - Item 160

Section 11 - Net reversals of (accruals to) provisions for risks and charges - Item 170

Section 12 – Depreciation and net impairment losses on property, equipment and investment property – Item 180

Section 13 - Amortisation and net impairment losses on intangible assets - Item 190

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Section 14 - Other operating income, net – Item 200

Section 15 – Net loss on equity investments - Item 220

Section 19 - Income taxes on continuing operations - Item 270

Section 22 - Earnings per share

Part D - Comprehensive income

Part E - Information on risks and related hedging policies

Section 1 - Credit risk

Section 2 - Market risks

Section 3 - Derivative instruments and hedging policies

Section 4 - Liquidity risk

Section 5 - Operational risk

Part F – Information on equity

Section 1 - Company's equity

Section 2 – Own funds and capital ratios

Part H – Related party transactions

Part L – Segment reporting

Part M - Information on leases

Significant non-recurring operations and positions or transactions deriving from atypical and/or unusual operations

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Part A – Accounting policies

A.1 – General Information

Section 1 - Declaration of compliance with international accounting standards

The financial statements at 31 December 2021 of Banca Finnat Euramerica have been prepared applying the International

Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) issued, as amended, by the

International Accounting Standard Board (IASB), as endorsed by the European Commission, in force at 31 December

2021, in accordance with the procedures laid down in Regulation EC no. 1606/02.

The international accounting standards have been applied taking into account, where necessary, the "Framework for the

Preparation and Presentation of Financial Statements" (the Framework).

For further guidance on the application of the new accounting standards, the Company has also referred to the

interpretations provided by the International Financial Reporting Interpretations Committee (IFRIC), as well as the

documents issued to support the introduction of the IAS/IFRS in Italy by the Organismo Italiano di Contabilità (OIC) - the

Italian Accounting Board - and the documents produced by the Italian Bankers' Association (ABI).

If no standard or applicable interpretation applied specifically to a transaction, other event or condition, reference was

made to the provisions and guidelines contained in the standards and interpretations dealing with similar and related

issues, taking into account the Framework provisions.

Section 2 - General financial reporting principles

These separate Financial Statements of Banca Finnat Euramerica S.p.A. at 31 December 2021 were prepared in

accordance with the provisions laid down by Bank of Italy Circular no. 262 of 22 December 2005 "Banks' financial

statements: layouts and preparation" - update 7 of 29 October 2021. Among other things, this latest update has the

purpose of aligning, as far as possible, the financial statements with the consolidated financial reports at European level

(FINREP).

The communication of the Bank of Italy of 21 December 2021 - Update of the additions to the provisions of Circular no.

262 "Bank's financial statements: compilation schemes and rules", concerning the impacts of Covid-19 and measures to

support the economy. This communication, which repeals and replace the previous one of 15 December 2020, has the

purpose to update the additions to the provisions of Circular no. 262/2005 to provide the market with information on

the effects that Covid-19 has produced on risk management strategies, objectives and policies, as well as on the Bank's

economic and equity situation. The communication in question provides that the tabular representation of the new

provisions, referring to the 2021 financial statements, also include the indication of the comparative amounts referring

to the data for the year 2020.

Account was also taken of the interpretative and support documents for the application of the accounting standards in

relation to the impacts of Covid-19, issued by the European regulatory and supervisory bodies and by standard setters,

aimed at clarifying the methods of application of the IAS/IFRS in the current pandemic environment (ESMA Notices, EBA

guidelines, letter from the ECB dated 4 December 2020 and ESMA Notice of 29 October 2021).

The accounting standards applied to prepare these Financial Statements have remained unchanged with respect to those

applied to prepare the 2020 Financial Statements, with the exception of what indicated “Information on the main

financial statement items”.

With reference to the evolution of the accounting legislation, it should be noted that starting from 2021, Regulation no.

25/2021 of 13 January 2021, which incorporates the document "Reform of the reference indices for determining interest

rates - phase 2 Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16" on issues relating to the revision of interest

rates (Interest Rate Benchmark Reform - IBOR Reform) is applicable. The main changes introduced concern the possible

accounting impacts deriving from the application of the new rates, in particular the accounting representation of the

Separate financial statements at 31 December 2021 | BANCA FINNAT EURAMERICA

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amendments to existing contracts and accounting hedges. From the point of view of the accounting representation, it

is clarified that the changes following the IBOR Reform relating to the replacement of the existing IBOR rate with the

new Risk Free Rate should not constitute a derecognition event, but are to be considered as a modification in the

accounts. In this context, a practical expedient has been introduced which makes it possible not to derecognise the

financial instrument and not to have to adjust its gross book value by recognising net modification gains (losses). With

regard to hedge accounting, some exceptions have been introduced to IAS 39 and IFRS 9 which allow, for hedging

relationships affected by the reform of the benchmark interest rates, not to carry out "discounting" on existing hedges

and reflect alternative benchmark interest rates therein. The aforementioned changes introduced by the IASB, with the

aim of avoiding distorting effects on the financial statements as a consequence of the reform, did not have any

accounting impact for the Bank.

The Separate Financial Statements consist of the Statement of Financial Position, the Income Statement, the Statement

of Comprehensive Income, the Statement of Changes in Equity, the Cash Flow Statement as well as these Notes to the

Financial Statements.

They are also accompanied by the Report of the Board of Directors on the Bank's situation, on the economic management

performance as a whole and in the various sectors in which it operated as well as on the main risks and uncertainties

that it faces.

The Separate Financial Statements also include the Statement of Changes in Equity investments.

The Report on Corporate Governance prepared pursuant to Art. 123-bis of the Consolidated Law on Finance.

The Notes to the Separate Financial Statements provide all the information required by law as well as any additional

information deemed necessary to give a true and fair view of the Bank's situation. If the information required by the

international accounting standards and by the provisions contained in Circular of the Bank of Italy no. 262 of 22 December

2005 - 7th update are not sufficient to give a truthful, correct, relevant, reliable, comparable and understandable

representation, complementary information necessary for this purpose is provided in the notes to the financial

statements.

The schedules of the Statement of Financial Position, the Income Statement and the Statement of Comprehensive

Income are made up of items, sub-items and further information details (the “of which” pertaining to items and sub-

items). The items, sub-items and related information details constitute the separate financial statements. Items that do

not present amounts for the year to which the financial statements refer, nor for the previous one, are not shown. In

the Income Statement and in the Statement of Comprehensive Income, revenue is indicated without a sign, while costs

are indicated in brackets.

The amount of the previous year is also indicated for each item of the Statement of Financial Position, the Income

Statement, the Statement of Comprehensive Income and the Cash Flow Statement.

In compliance with Article 5 of Italian Legislative Decree no. 38 of 28 February 2005, the Financial Statements were

prepared using the euro as the reporting currency. The amounts in the accounting schedules are expressed in units of

Euro while the data in the Notes to the Financial Statements, unless otherwise specified, are expressed in thousands of

euro.

The Separate Financial Statements provide a true and fair view of the equity, financial situation and economic result for

the year. The financial statements were also drawn up, as already mentioned, with a view to the continuation of

operations (IAS 1 paragraph 25), in compliance with the principle of accruals (IAS 1 paragraph 27 and 28) and in

compliance with the obligation to make adjustments for reflect events subsequent to the reporting date (IAS 10). Assets

and liabilities, income and expenses have not been offset, except where required or allowed by a standard or

interpretation (IAS 1, paragraph 32). The cost of inventory and of financial instruments was calculated using the weighted

average daily cost method (IAS 2, paragraph 25).

The Separate Financial Statements of Banca Finnat Euramerica S.p.A. are subject to audit by KPMG S.p.A., whose attached

Report is explicitly referred to.

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As required by IAS 8, the Regulations endorsed by the European Commission that apply from 1 January 2021 onwards

are shown below:

o Regulation no. 25/2021 – Interest Rate Benchmark Reform - phase 2 - (Amendments to IFRS 9, IAS 39, IFRS 7,

IFRS 4 and IFRS 16).

o Regulation no. 1421/2021 - Concession on royalties related to Covid-19 after 30 June 2021 (Amendment to

IFRS 16).

In addition, the European Commission has approved the following Regulation (for amendments or issuances of new

standards) which will be applied starting from 1 January 2023:

o Regulation no. 2023/2021 - Insurance contracts - Amendment to IFRS 17.