This report does not constitute a rating action. ALAC--Additional loss-absorbing capacity. CRA--Comparable ratings analysis. GRE--Government-related entity. ICR--Issuer credit rating. SACP--Stand-alone credit profile. Overview Key strengths Key risks Stable family ownership underpins strategic continuity and a conservative risk appetite. Small scale and high cost base, compared to larger domestic peers, constrains efficiency. Diversified and digitally advanced business model supports earnings resilience. High level of geographic concentration in Italy. Strong focus on fee-generating activities and a granular funding base. Banca Sella Holding SpA's (Sella Group's) diversified business model and stable shareholder structure balances its smaller scale and comparatively higher cost base compared to peers. We view the bank's limited scale and elevated costs as the main structural constraints on profitability, which limits
