Financial Services: the strength of the investment portfolio continues to improve

In Q1-26 gross revenues (including intersegment distribution revenues) were up 8.5% y/y to €1.8bn. External revenues were at €1.6bn, +10.5% y/y. Active Portfolio Management reached €166m in Q1-26, taking advantage of positive momentum to realize most of FY-26 expected capital gains. Net Interest Income was down 1.2% y/y to €658m, reflecting lower rates on variable portfolio versus Q1-25, while marginally ahead of 2026 guidance and benefiting from improved rate momentum towards the end of the quarter expected to support net interest income in the remaining part of the year. Postal savings’ distribution fees remained stable at €440m (-0.2% y/y), supported by improving net inflows. Transaction Banking fees  were down 2.1% y/y to €172m impacted by lower payment slips volumes. Consumer loans’ distribution fees  were down 7.4% y/y to €66m. Asset Management fees were up 26.8% y/y to €55m on higher Assets under Management. Total Financial Assets reached €606bn in Q1-26 (up €5.3bn from December 2025), driven by €1.7bn strong net inflows  in investment products confirming the positive trend in Life insurance, with significant contribution from multi-class products, as well as in asset management. Improved Postal Savings net outflows driven by higher net inflows in Postal Bonds. Deposits growth driven by higher PA balances and stable retail deposits. In Q1-26 Adjusted EBIT  was up 22.2% y/y to €318m, reflecting revenue trends.