Credito Emiliano S p A : CREDEM, the soundest Bank in Europe

PRESS RELEASE

CREDEM, THE SOUNDEST BANK IN EUROPE

• Data on capital requirements (SREP) disclosed by European banks directly supervised were published on the European Central Bank website;
• Credem Group is the first in terms of solidity among European banks and the best in Italy, confirming its position of excellence over time.

Credem, one of the main national banking groups, resulted as the soundest bank in Europe and the best in Italy as shown by the publication, on the website of the European Central Bank, of the data relating to the capital requirements (SREP) disclosed by the relevant banks1 directly supervised by the Frankfurt authority. The publication of this data followed from the capital requirements regulation which aims to strengthen market discipline and ensure that investors and depositors are informed on the solvency of credit institutions.

The outcome of the Srep process is a source of great satisfaction for Credem and represents an important element of guarantee that has been continuously renewed, protecting all the Group's stakeholders over time, shareholders, employees, customers and, more generally, the entire economic and social environment, which can thus boast an Italian banking institution best in class in Europe.

The requirement taken into consideration was the Pillar 2 Requirement (P2R) which for the Credem Group is equal to 1.0%, best in Italy and also in Europe among banks within the panel of institutes which disclosed the requirement and directly supervised by Frankfurt (link see data published on the ECB website).

The Pillar 2 requirement was the result of the annual analysis carried out by ECB (SREP - Supervisory review and evaluation process) which confirmed the soundness of the business model and risk management monitoring system of Credito Emiliano.

Consequently the total capital requirement(*), which indicates the minimum level of capital to be respected for the activities carried out by the Group and to protect savers, for 2024, amounted to 7,60% regarding the CET 1 ratio. The requirements for the Tier 1 ratio and for the Tier Total were 9.29% and 11.54% respectively.

Angelo Campani, Credem General Manager, commented: "The soundness that has always characterized us, and which has once again been recognised by the European Central Bank at the highest level, represents a guarantee for our customers, but also the essential basis

1 Data as of 1 September 2023. https://www.bankingsupervision.europa.eu/banking/list/html/index.en.html

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PRESS RELEASE

on which we continue to build our development path based on healthy and sustainable growth, on the commitment and competence of our people, on the continuous creation of value over time and the development of widespread well-being among all those who interact with the Group.".

At the end of September 2023, all capital ratios of the Group were well above capital requirements. In detail, Credemholding CET1 Ratio (prudential perimeter) was 14.8% with a buffer over the SREP requirement among the widest in the industry and equal to 716 basis point.

At the end of September 2023, Credem Group total business, including loans and total funding, amounted to approximately €130 billion.

(*) This value includes:

1. minimum Own Funds defined by article 92(1)(a) of EU Regulation No. 575/2013 (CRR);
2. capital conservation buffer set by Bank of Italy, amounting to 2.5%;
3. the Pillar 2 requirement of 1% to be held for at least 56.25% in the form of CET1 capital and for at least 75% in the form of Tier 1 capital.
4. the countercyclical capital buffer ratio of 0.0368%.

Reggio Emilia, 20 December 2023

CREDITO EMILIANO SPA

(Chairman)

Lucio Igino Zanon di Valgiurata

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