01_Editorial: Sustainable Recovery

by Andrea Clamer

02_Direct link to results. Bloomberg:

bonds under the lens

03_Banca IFIS registers positive

1st quarter results

04_Market. Banca IFIS stocks

flying high on the Stock Exchange

05_30th Anniversary. Happy Birthday Banca

IFIS: join the celebrations on Facebook!

06_MondoPMI: supporting Small and

Medium Enterprises for over a year

07_IFIS Finance: Banca IFIS supporting

the growth of Polish enterprises

08_Recruitment:

positions available

09_Events Calendar

10_Contacts

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013Newsletter 6 31 June 2013_Quarterly newsletter

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01 Editorial: Sustainable Recoveryby Andrea Clamer

Andrea Clamer,

Head of Banca IFIS’s

NPL Division.

«With 130 billion distressed loans the theme of

sustainable recovery has become a key issue to ensure

the system as a whole correctly manages the financially

“weak” part of the country. It is no longer simply an

economic issue, linked to the return on investment

(where investment can be considered as the choice of

delivering a certain credit or to buy that same credit), but

also a social and development issue: either we are able

to give those millions of people a real second chance,

or the entire system is likely to disintegrate, leading to

negative consequences also for the performing part of

the banking world, with obvious consequences in terms

of the cost of credit (raising interest rates) and of supply

logic (contraction). Behind the slogan of “sustainable

recovery” what really gets portrayed? How does this

world impact and pervade our efficiency as professionals

of “non-performing” credit that has, in its DNA, the

purchase of unsecured portfolios and their management

in order to achieve - from the difference between the

purchase price and the amount recovered - that result

called economic return?

The answer, very briefly, I think is “segmentation”,

accomplished through careful analysis of the data. This

segmentation involves dividing our pool of debtors, which

now has almost 500,000 subjects, into four categories.

The first category: people who are willing and able to

pay; the second consists of those who do not want to

and cannot pay; the third made up of people who want

to but cannot pay; finally, those who are able but not

willing to pay.

It is clear that adopting a fair and sustainable approach

also means creating, for those who are “able but not

willing”, a management structure that will not accept

the “unwillingness” of having to deal with their debts

and forcing this category of debtor to pay what they owe

through focused, economic, legal action. This is mainly

out of respect for those debtors who, although they

cannot, wish to pay their debts, those who decide to give

up something in their lives and repay because, for these

individuals, repaying a debt is a matter of honor.

These initial considerations bring more food for thought:

how can the banking system achieve these aims? How

can the different market players create appropriate

economies of scale that enable them to implement

processes and controls in line with the “principles” set

out above? How and how much do they have to invest

in order to obtain useful information to segment the

portfolio as described above?

Most likely a single operator, even the largest on

the market, does not possess adequate background

information on non-performing debtors to allow them

to model appropriate portfolio segmentation. There is,

therefore, a strong need to create a pool of debtors and

therefore, of information, that could bring potential

economies of scale: we need a “big data repository” or

a player who decides to play that role, specializing in

this type of market to create the specific economies of

scale, non-reproducible with a low number of debtors

in the portfolio. This player would ensure, through its

operational efficiency, a fair degree of segmentation

of practices and therefore sustainability. It would also

achieve, through its own economies of scale, greater

efficiency in its recovery action, efficiency that could be

partly redistributed to other markets, less focused on

credit management in litigation.

Finally, referring to the distressed loans sales market,

one method of wealth redistribution might be to increase

the acquisition price of portfolios put on sale».

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02 Direct link to resultsBloomberg: bonds under the lens

Giovanni Bossi,

C.E.O. of Banca IFIS.

In an interview with Sonia Sirletti of Bloomberg realized

on June 21st Giovanni Bossi, CEO of Banca IFIS,

commented on the trends of the Bank and its future

outlook, expecting an annual earnings growth over the

next three years thanks to the reduction of funding costs

and increased margins in the sector of distressed loans.

“We raised our targets on ROE and see our net income

growing in each year of the three-year business plan

ending in 2015” Bossi said. “We will cut the cost of

funding by 1 percent next year and 0.5 percent in

2015, to offset lower income from our government

bond portfolio.”

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In summary, figures for the period January 1 - March 31:

• Net banking income increased by 27,5% to 66,9 million Euros

• Net profit from financial activities increased by 14% to 53,1 million Euros

• Cost/income ratio further improving, down to 26,5%

• Profit for the period increased by 13,9% to over 22 million Euros

• Non-performing loans/total loans in the trade receivables sector: 3,5% compared to 4,3%

• Solvency: 12,9%

• Core Tier 1: 13,1 %

The expectations for the remainder of the 2013 financial year remains positive for the group, in an evolving

market marked by an economic recession and conditioned by the climate of distrust and also the result of the

limited effectiveness of actions taken by institutions.

In particular, Banca IFIS expects:

• “High single-digit” total rev. growth in 2013, 2014, 2015

• Target annual rev. growth from NPL loans recovery, trade receivables between 15% and 20% over next 3

years;

• Raised 2013 ROE forecast to 25% from 20%; expects ROE above 20% in 2014, 2015;

• Plans to cut cost of debt collection by 1 percent next year and 0.5 percent in 2015 generating savings of

up to 40 million euros;

• Retail funds totaled 3.9 billion euros as of June 19, up from 3.6 billion euros at the end of the first quarter

• Focus on core business boosting margins from recovery of distressed loans, trade receivables and

reducing volatile rev. from sovereign bond portfolio;

• Plans to reduce Italy govt. bond holdings to 3.3 billion euros by end 2014, to 2.2 billion euros by end 2015

from current 7.8 billion euros, not reinvesting in sov. maturing securities;

• Target: bad-loan ratio at 3% by year-end from 3.5% in 1Q;

• Banca IFIS 1Q profits rose 14% to 22.5 million euros;

• Shares: +50% YTD vs FTSE Italia All-Share Financial Services Index +3%.

03 Banca IFIS registers positive1st quarter results

Higher number of business

customers, rising profit

margins and stronger

capital ratio.

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04 MarketsBanca IFIS stocks flying high on the Stock Exchange

Banca IFIS stocks are seeing a good response on the

stock market, with major peaks. This good performance

is the result of some strategic choices made by the Bank

but also of a series of one-to-one meetings with investors

interested in buying shares. Shown below are the events

and road shows in which Banca IFIS has taken part:

• Gèneve and Zurich: 11-12 April;

• London and Milan: 14-15 May;

• Copenaghen and Dublin: 22-23 May;

• Vienna: 5 June;

• Paris (European Midcap Event): 24-25 June.

First quarter results

confirmed the positive

2012 trend, in line with the

future outlook.

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05 30th AnniversaryHappy Birthday Banca IFIS:join the celebrations on Facebook!

Nobody forgets their 18th birthday, and Banca IFIS

certainly won’t forget its first 30 years of activity.

From 1983 to 2013, the bank - initially born in Genoa

as “I.Fi.S.” (Institute of Finance and Discount SpA)

and now the only independent banking group in

Italy specialized in the sector of trade receivables,

non-performing financial loans and tax receivables

- has grown considerably, experienced major

transformations, joined the Italian Stock Exchange

and has evolved, offering customers new products

and services, in a transparent and an ever more direct

relationship with its customers and partners.Discover all the images

on Banca IFIS Facebook

Fanpage.

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In particular, in recent years, the bank’s communication

has also expanded onto social networks, increasing the

dialogue not only with clients but with all web users; a

method that, for Banca IFIS, has initiated an innovative

way of listening to customers, and given more freedom of

expression to the people involved: not only customers but

also stakeholders, investors and institutional authorities,

public and private companies, small and medium

enterprises, institutions and organizations.

Thanks also to its strong showing on social networks,

Banca IFIS has decided to celebrate its 30th birthday with

various initiatives, the first of which was created and will

take place through the use of said networks: every week,

on the Banca IFIS Facebook page, two images will be

published showing famous events that took place in the

years in which the Bank took its most important steps,

with the aim of involving all network users. Celebrations

start with 1983, the year I.F.i.S was founded, and all fans

are asked what they were doing in that year: a way of

initiating a dialogue to intersect the history of the bank

with the personal histories of web users.

The initiative will take place primarily on the Banca

IFIS Facebook fan page of and will be supported on the

Twitter accounts @ BancaIFIS, rendimax, @contomax and

@StreetNetworkIT.

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06 MondoPMI:supporting Small and MediumEnterprises for over a year

MondoPMI

MondoPMI is the blog

dedicated to Small and

Medium Enterprises and

particularly to credit, loans

to enterprises and new laws

and regulations for SMEs

www.mondopmi.com

Last May, the Banca IFIS blog, dedicated to entrepreneurs

and professionals of Small and Medium Enterprises,

celebrated its 1st birthday. Twelve months full of

satisfaction related not only to the growing interest

of the readers of MondoPMI (www.mondopmi.com),

but also to the participation demonstrated thanks to

various initiatives aimed at fostering the community

and an interactive exchange of opinions.

The need to involve users came in December 2012

when, reading news of demonstrations and proposals

of several industry associations, MondoPMI launched

#NataleImpresa. The project was set out to give voice

to every single professional, expressing their wishes

for 2013 as a sort of Christmas present, thanks to the

drafts of some useful articles expressing the needs

of the company, but mainly oriented to suggesting

solutions to face issues effectively.

Also created, along the same lines, was PMIvsCrisi, a

project to promote tips and advice from entrepreneurs,

a virtual place to exchange views on how to exit the

crisis that undermines the ability to do business.

The blog later tried to dispel the notion of crisis

as negative growth, explaining that it may

represent a new beginning, a rebirth, a new way

of doing business, focusing on the efficiency

of the processes and strategies oriented to the

future. Therefore #FuturoPMI was launched, where

companies explained how they were able to reinvent

themselves, through opportunities found on the

web, and grow by encouraging employment and

developing new ideas.

MondoPMI’s efforts were not limited to gathering

ideas or highlighting success stories, but have also

been useful in training people. Like #PensaPMI, a

collection of quotes from Italian managers who have

created the history of our country, and #ImparaPMI,

a glossary of 30 definitions related to doing business.

What are the new initiatives in the coming

months? We’re thinking different, but the social

spirit that has characterized the last year requires

us to ask the opinions of our readers! In the early

days of July we will create a survey aimed at

understanding the interest of users towards new

initiatives; a way of proposing projects that would

be useful to every entrepreneur. A collection of

photographs/videos of SMEs that follow us will

also be launched, using Instagram.

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In addition to these new activities, MondoPMI has

a new look! Currently there are different types of

homepage, where new visitors see a different layout

to those who have already visited the blog once. The

initiative aims to let new users discover the most

read articles of the SMEs, while, for those who come

back, we want to suggest the most popular themes.

In the blog there is also a contact form for Banca

IFIS, where entrepreneurs and Small and Medium

Enterprise professionals can leave their details and

receive information on funding opportunities.

Are you passionate about

business subjects? Are you

an expert on SMEs market?

Send us your content to be

published on MondoPmi.

Write to:

redazione@mondopmi.com

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07 IFIS Finance: Banca IFIS supporting the growth of companies in Poland

Banca IFIS is among the major players in Italian factoring

and has been active for over ten years on an international

level, with a presence in Europe (France, Poland,

Hungary, Romania) and Asia (India).

In Poland, the factoring market in 2010 had a turnover of

over 14 billion Euros, an increase of 30%. IFIS Finance,

based in Warsaw, is a well capitalized company that

provides support to small and medium enterprises

participating in the economic development of the country.

«Poland has grown exponentially in recent years with

rigorous industrial vitality and intelligence, as well as

maintaining good political stability» says Alessandro

Csillaghy, vice president of Banca IFIS Group. IFIS

Finance is a leading partner in this large manufacturing

area both for Polish companies exporting to Italy and

for Italian companies that have relocated. Funding

covers the automotive sector among others: «the goal -

emphasizes Csillaghy - is to continue to grow, bringing

more and more liquidity, purchasing, managing and

securing credit».

Alessandro Csillaghy,

Vice-President Gruppo

Banca IFIS.

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Factoring has entered the collective imagination

as a vital tool for the economic needs of small and

medium-sized enterprises. International factoring

works in a similar way to domestic factoring,

helping those exports to be more competitive in a

more complex global market. «In particular, export

factoring – emphasizes Daniela Bonzanini, Head of

International Banca IFIS Group - is showing how

financing, management and guarantee claims against

foreign debtors may be of assistance to exporters,

especially in those countries where the crisis

has drastically reduced credit from banks, where

insurance companies have almost completely ceased

to take commercial risks».

Factors Chain International was established in

1968 to represent the interests of independent

factoring companies around the world. With member

companies offering domestic and International

factoring services in countries across the five

continents, FCI is by far the world’s largest factoring

network with 260 banks in 75 countries.

Factoring in Poland: Factors Chain International 2012 data

In June 2013 Daniela

Bonzanini, Head of Banca

IFIS’s International Area,

was appointed President of

Factors Chain International.

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Data Factors Chain

International

(in millions of euro).

Domestic and International factoring by Country (2012)

Country Nr. of companies Domestic factoring International factoring Total

Poland 29 20,34 4,17 24,51

Italy 41 143,374 38,504 181,878

Germany 210 120,23 37,19 157,42

United Kingdom 40 271,675 19,525 291,200

Total Europe 732 1,104966 193,759 1,298,725

Total factoring volume by country in the last 7 years (2006-2012)

Country 2006 2007 2008 2009 2010 2011 2012

Poland 4,425 7,900 7,800 12,000 16,210 17,900 24,510

Italy 120,435 122,800 128,200 124,250 143,745 175,182 181,878

Germany 72,000 89,000 106,000 96,200 129,536 158,034 157,420

United Kingdom 248,769 286,496 188,000 195,613 226,243 268,080 291,200

Total Europe 806,958 932,264 888,528 876,649 1,045,069 1,218,585 1,299

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Banca IFIS Group differs from other operators in the

sector as it continues to recruit despite the negative

economic framework. The Bank is approaching

both young people and more senior figures who can

contribute their experience. Some of the current

positions available include the following: Legal Service

Agent, Operational Risk Manager, Linux Systems

Analyst, Senior Software Tester, Senior Internal Auditor,

Junior Risk Manager, Organization Project Manager;

Litigation Service Agent – all in Venice; Junior Credit

Manager (Banca IFIS Verona); Sales Manager (Banca

IFIS Verona); International Relationship Manager

(Banca IFIS Milano); Junior Asset Manager (NPL

Business area - Banca IFIS Florence).

Recruitment: positions available08

Work with us: visit our

website or the Careers

section on Banca IFIS’s

LinkedIn page to find out

our vacant positions.

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09 Events Calendar

Subscribe to our newsletter

on www.bancaifis.it to be

always updated on Banca

IFIS’s events, conference

and appointments, follow

@BancaIFIS on Twitter or

visit our Facebook fanpage.

• July5: Launching new brand “CrediFamiglia”

• July10: ABI Assembly, 10:00am Palazzo

dei Congressi - Rome

• July10: Event Corriere Innovazione

“Turismi” 18:00 Molo IV - Trieste

• July11: “Social Minds:’’ The use of Social Media

by Italian Banks” – 9:30am,

Palazzo delle Stelline, Corso Magenta 61 (Milan).

• July11: Last round of the series of meetings

“A book a month in villa”. Presentation of the book

“Web marketing for SMEs” in the presence of the

author Miriam Bertoli. 18pm,

theater Villa Furstenberg.

• July16: Launching new brand

“Credi Impresa Futuro”

• July17: Banca IFIS Board of Directors

• August8: Board of Directors and approval

of interim results - 2Q

• From5to8September: Festival of Politics

in Mestre - Pellicani Foundation

• From6to8September:The European House Forum

Ambrosetti “The scenario of today and tomorrow

for competitive strategies”

at Villa d’Este in Cernobbio (Como)

• September19:NPL meeting

Villa Furstenberg (Mestre)

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Financial Calendar

Banca IFIS shares on the stock market

Shareholder break down

8th August 2013 Approval of Interim Report as of June 30, 2013

13th November 2013 Approval of third quarter 2013

Price at 28/06/2013 8.17€

2013 Min-Max 5,525 (02/01/13) - 8,845(20/05/13)

Number of shares issued 53.811.095

Capitalization 439.636.646,15 €

1-month performance -2,21€

6-month performance +48,19%

1-year performance +64,23%

Dividend 0.37 (06/05/2013)

Specialist Intermonte Spa

Net appreciation of Banca IFIS shares by market partecipants. Price has exceeded €8 with more than 48% growth over

six months. Volumes year to date, which is the average number of transaction in the period, are growing, sign of active

participation and interest by the operators towards the instrument. Daily average volumes have been growing and

reached a maximum of 136.255 in May. The positive judgement has been confirmed by all financial reports and updates

conducted by research offices, such as Edison, Akros and Centrobanca.

Sebastien Egon Furstenberg

Floating

Giovanni Bossi

Riccardo Preve

Treasury shares

69,01%

22,76%

3,41%

2.40%

2.42%

28th June 2013

28th June 2013

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10 Contacts

Analyst coverage

Follow us on Contacts

Marco Cavalleri

Banca Akros

marco.cavalleri@bancaakros.it

https://twitter.com/BancaIFIS

http://www.facebook.com/Banca.IFIS

http://www.linkedin.com/company/banca-ifis

http://www.youtube.com/user/BancaIFIS

http://tvchannel.bancaifis.it/

Website: http://www.bancaifis.it

Website of 2012 financial statements:

http://bilancio.bancaifis.it

Investor Contact: Mara Di Giorgio

Email: mara.digiorgio@bancaifis.it

Tel. +39 041 502 7623

Mark Thomas

Edison, Investment Research

financials@edisoninvestmentresearch.co.uk