• Bank of Italy inspection findings triggered a sanction process for governance and compliance shortcomings, including EBA Definition of Default application.
• Supervisor ordered a temporary ban on distributing profits generated from FY2024 onward, pending a regulatory review of remediation progress.
• Restrictions also cover payouts of variable remuneration for FY2024 and later; AT1 coupons remain subject to Maximum Distributable Amount limits.
• Group plans to reclassify certain exposures to default, then recalculate RWAs from Q1 2025, adding calendar provisioning effects.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Banca Sistema S.p.A. published the original content used to generate this news brief via SDIR, the Italian regulatory disclosure system (Ref. ID: 171562_oneinfo.pdf), on September 11, 2026, and is solely responsible for the information contained therein.