Execution Driving Upside – BGN Raised to Buy

Research evidence excerpt

Execution Driving Upside – BGN Raised to Buy

Banks

Equity Research

June 15, 2026

Company Description

Banca Generali

Banca Generali is a private bank founded in 1998 and controlled by Assicurazioni Generali. Banca Generali offers financial advisory, wealth planning,

and banking services to private and affluent clients serviced via a network of financial advisors.

Banca Mediolanum

Banca Mediolanum S.p.A. is a bank specializing in wealth management and investment services offered as a main channel via a network of financial

advisors. The company was founded in 1982 as Programma Italia and renamed as Banca Mediolanum in 1997.

Fineco

FinecoBank S.p.A. is a bank specialized in brokerage and investment services and operates digitally and via a network of financial advisors. In 2019,

Fineco leaves Unicredit Group becoming an independent public company.

Company Valuation/Risks

We value the business with a ROE-COE model adjusted for surplus/deficit capital. Risks: BGN is geared to financial markets via the commissions earned

on its assets under management and under administration; hence, worse-/better-than-expected market performance negatively/positively impacts

BGN revenues. Lower-than-anticipated net new money can adversely impact commission income. BGN has been the object of M&A speculation; a

reversal of this speculation could negatively affect the stock.

We value the business with a ROE-COE model adjusted for surplus/deficit capital. Risks: BMED is geared to financial markets via the commissions

earned on its asset under management and under administration; hence, worse-than-expected market performance negatively impacts the company's

revenues. Lower-than-anticipated net new money can adversely impact commission income. BMED derives a large part of revenues from interest