Banco BPM SpA

Earnings Release • Aug 2, 2017

Informazione Regolamentata n. 1928-93-2017		Data/Ora Ricezione 02 Agosto 2017 10:48:56	MTA
Societa'	:	Banco BPM S.p.A.
Identificativo Informazione Regolamentata	:	92630
Nome utilizzatore	:	BANCOBPMN08 - Marconi
Tipologia	:	1.2
Data/Ora Ricezione	:	02 Agosto 2017 10:48:56
Data/Ora Inizio Diffusione presunta	:	02 Agosto 2017 10:48:57
Oggetto	:	PR_THE BOARD OF DIRECTORS OF BANCA AKROS (BANCO BPM GROUP)APPROVES THE RESULTS FOR THE FIRST HALF OF 2017
Testo del comunicato

Vedi allegato.

THE BOARD OF DIRECTORS OF BANCA AKROS (BANCO BPM GROUP) APPROVES THE RESULTS FOR THE FIRST HALF OF 2017

• Net income from banking activities amounts to Euro 34.8 million (Euro 34.7 million at 30 June 2016); net income comes to Euro 4.5 million (Euro 4.1 million at 30 June 2016, +9%),

The Common Equity Tier 1 ratio is equal to 22.5%

• Banca Akros has confirmed its leading position in market making and in the brokerage of bonds and equities, coming 2nd in the ranking of intermediaries operating on behalf of third parties on the Italian bond markets, with a market share of 14.4%, and in 4th place on the MTA, with a market share of 7% (Source: Assosim)
• The Bank took part in Unicredit's capital increase in the role of co-bookrunner and in Indel B's IPO in the role of joint-bookrunner, as well as in placement of bonds issued by Atlantia and Iccrea Banca, in the role of joint-lead manager and bookrunner; Banca Akros also helped place the eleventh issue of BTP-Italia in the role of co-dealer and market maker. In the Advisory business, the Bank also acted as co-arranger in the sale of a Euro 693 million portfolio of NPLs belonging to the Parent Company (the so-called "Rainbow Project").
• In Private Banking, assets under management and administration come to a total of around Euro 1.2 billion.
• Preparations are underway to concentrate the Corporate & Investment Banking activities of the Banco BPM Group at Banca Akros, in accordance with the guidelines laid down in the 2016-2019 Business Plan.

Milan, 28 July 2017 – The Board of Directors of Banca Akros - the investment and private banking arm of the Banco BPM Group - chaired by Graziano Tarantini and led by the Managing Director Marco Turrina, today approved the results at 30 June 2017.

"At a time when the main markets on which we operate have been firming up generally, even though volatility continues to be particularly low, also in long-term comparative terms, the Bank has been managed in such a way as to ensure rising profitability and high levels of capitalisation and liquidity. The period just ended saw the Bank expand its supply of goods and services, while continuing sales and marketing efforts versus its customers. The Bank is also involved in heading up the "CIB Integration Project" to concentrate the Group's Corporate & Investment Banking activities at Banca Akros, in accordance with the guidelines laid down in the 2016-2019 Business Plan", commented Marco Turrina, Managing Director.

The Bank made net income from banking activities of Euro 34.8 million (Euro 34.7 million in 2016). After accounting for an impairment adjustment of Euro 1.8 million - for the estimated decline in the useful life of various items of software as a consequence of the Group's IT reorganization - and for the Euro 1.2 million contribution paid to the Single Resolution Fund, net income comes to around Euro 4.5 million, 9% up on the Euro 4.1 million made in the first half of 2016.

At 30 June 2017, the Common Equity Tier 1 ratio comes to 22.5% (18.6% at 31 December 2016); The Leverage ratio is 13.6% (11.1% at 31 December 2016).

A positive contribution has again been made in market making and trading by the Bank's activities in equity derivatives, government bonds, domestic bonds and Eurobonds; in May, the Bank took part as co-dealer and market maker on behalf of the Ministry of Economy and Finance in the placement on Borsa Italiana's MOT market of the eleventh issue of BTP-Italia (Italian long-term treasury bonds), maturing in 2023. Work continued on the development of hedging and financial risk management instruments (for interest rate, exchange rate and commodity risk) for the benefit of institutional and corporate customers, also as part of the coverage activities carried out jointly with the Parent Company, with particular attention to the Mid Corporate segment as a specific target.

In the business of dealing on behalf of third parties (Source: Assosim), the Bank:

• has consolidated its presence in the bond markets, ranking 2nd for intermediaries acting on behalf of third parties on the Italian bond market and, in particular, 4th in the DomesticMOT segment and 2nd in Borsa Italiana's EuroMOT segment (with market shares of 11.9% and 19.9% respectively), 3rd in the EuroTLX market (with a 16.5% share) and 1st in the Hi-MTF and ExtraMOT markets (with shares of 26.1% and 27.5% respectively). These results were facilitated by SABE, the proprietary system that automatically seeks dynamic best execution in compliance with the MiFID regulations;
• it has confirmed its 4th position on Borsa Italiana's Mercato Telematico Azionario (with a market share of 7%), as well as its 4th position on the ETF Plus market (with a share of 5.9%) and 2nd position on the SeDeX market (with a share of 20.2%);
• it came 3rd in options on the FTSE MIB index (with a market share of 5.6%).

Customers are offered brokerage services on stock markets through ESN – European Securities Network LLP, the European partnership in equities research and trading set up by Banca Akros with seven other European investment banks, which are independent and active on their respective national stock markets; it offers broad corporate access to investors in individual countries thanks to the coverage of around 600 listed companies by 90 analysts and 130 sales people and traders.

In the Equity Capital Market Banca Akros acted as co-bookrunner for the underwriting consortium at Unicredit's increase in capital for a total of Euro 13 billion, which was successfully completed in February. The Bank also acted as joint-bookrunner in the institutional offering to list Indel B on Borsa Italiana's MTA market and coordinated takeover bids for Mediacontech, Best Union Company and Meridie.

In the field of Non-Performing Loan disposals, Banca Akros was co-arranger in the auction for a Euro 693 million NPL portfolio (the "Rainbow Project") put on the market by Banco BPM, the Parent Company.

In the Debt Capital Market, the Bank took part as Joint-Lead Manager and Bookrunner in the placement with institutional investors of a bond issue by Atlantia for a total of Euro 750 million at a fixed rate, maturing in 2025. In the Financial Institutions sector, Banca Akros participated as Joint-Lead Manager and Bookrunner in an institutional issue by Iccrea Banca, for a total of Euro 600 million at a fixed rate, maturing in 2020. The Bank also participated in another fourteen issues of leading Italian and foreign issuers, including the European Investment Bank (EIB) and KFW, a German company.

In the Advisory business, the Bank successfully continued, among other things, the Credit Advisory activity which sees Banca Akros involved in origination as part of the collaboration agreement with SACE (Cassa Depositi e Prestiti Group) for a total of Euro 150 million, in which Banca Akros acts as arranger, advisor and agent in guaranteed inventory financing operations with SACE as the guarantor.

In Private Banking, which is carried on at the head office in Milan and at the branches in Rome and Turin, operations continued with the primary objective of managing customers and supporting their specific needs, also with a view to the planned spin-off of the business in favour of Banca Aletti, in accordance with the guidelines of the Group's 2016-2019 Business Plan. The total value of assets under management and administration at the end of the year comes to Euro 1.2 billion.

* * * * *

Spin-offs approved to implement the Group's 2016-2019 Business Plan

The 2016-2019 Business Plan of the Banco BPM Group envisaged the consolidation of the Bank's Corporate & Investment Banking (CIB) activities at Banca Akros and, at the same time, concentration of the Group's Private Banking customers at Banca Aletti. Following the resolutions passed by the Board of Directors of Banco BPM (as

the Parent Company) at its meeting of 11 May 2017, the Boards of Directors of Banca Aletti and Banca Akros therefore took steps to approve two separate partial spin-off plans, on 23 and 24 May 2017 respectively, involving the assignment:

• by Banca Aletti to Banca Akros, of a business unit consisting of the assets and resources needed to carry on the Corporate & Investment Banking activity;
• by Banca Akros to Banca Aletti, of a business unit consisting of the assets and resources needed to carry on the Private Banking activity.

The Parent Company has sent the required authorisation request to the Supervisory Authority pursuant to art. 57 of the Consolidated Banking Act; based on the expected timing for this authorisation to be given and taking into account the additional deadlines laid down by the rules applicable in spin-offs, the current feeling is that these two operations will take effect for legal purposes in early 2018.

* * * * *

Statement of the Financial Reporting Manager

The Financial Reporting Manager, Luigi Lanzuolo, declares, pursuant to para. 2 of art. 154-bis of the CFA, that the accounting information contained in this press release agrees with the supporting documentation, balances on the books of account and accounting entries.

* * * * *

The half-yearly report at 30 June 2017 will be made available by the legal deadline.

* * * * *

For information Banca Akros S.p.A. Banco BPM S.p.A. Communication Media Relations Gianluca Verzelli Elena Molteni

Tel +39.06.4544.0746 Tel +39.02.7700.3906 elena.molteni@bancobpm.it

Voci dell'attivo	30.06.2017	31.12.2016	30.06.2016
10. Cassa e disponibilita' liquide	129.311	108.962	68.685
20. Attivita' finanziarie detenute per la negoziazione	1.344.254.225	1.689.122.517	1.943.937.208
40. Attivita' finanziarie disponibili per la vendita	234.457.544	158.941.301	384.730.701
60. Crediti verso banche	686.585.526	745.208.921	649.808.133
70. Crediti verso clientela	289.259.745	459.878.493	427.187.434
110. Attivita' materiali	31.575.355	32.363.838	32.942.956
120. Attivita' immateriali	5.261.838	7.072.183	5.864.177
130. Attivita' fiscali a) correnti b) anticipate - di cui alla L. 214/2011	5.120.602 885.587 4.235.015 559.434	5.421.585 1.302.031 4.119.554 584.025	6.049.995 1.256.123 4.793.872 599.394
150. Altre attivita'	17.474.785	18.017.702	13.777.181
Totale dell'attivo	2.614.118.931	3.116.135.502	3.464.366.470
Voci del passivo e del patrimonio netto	30.06.2017	31.12.2016	30.06.2016
10. Debiti verso banche	392.472.916	563.534.195	894.284.285
20. Debiti verso clientela	1.044.696.168	1.110.395.029	827.314.490
40. Passivita' finanziarie di negoziazione	937.292.090	1.201.493.716	1.502.320.408
80. Passivita' fiscali a) correnti b) differite	567.647 221.364 346.283	208.020 0 208.020	625.528 0 625.528
100. Altre passivita'	22.313.026	22.731.707	20.323.414
110. Trattamento di fine rapporto del personale	6.399.530	6.974.441	7.552.621
120. Fondi per rischi e oneri: a) quiescenza e obblighi simili b) altri fondi	8.948.512 904.687 8.043.825	10.591.215 1.039.001 9.552.214	12.156.826 1.000.244 11.156.582
130. Riserve da valutazione	(1.817.848)	(1.613.114)	(62.755)
160. Riserve	144.983.890	141.973.353	141.973.353
170. Sov rapprezzi di emissione	14.366.197	14.366.197	14.366.197
180. Capitale	39.433.803	39.433.803	39.433.803
200. Utile del periodo	4.463.000	6.046.940	4.078.300
Totale del passivo e del patrimonio netto	2.614.118.931	3.116.135.502	3.464.366.470

Voci del Conto economico	Primo semestre 2017	Primo semestre 2016
10. Interessi attivi e proventi assimilati	18.649.369	19.705.639
20. Interessi passivi e oneri assimilati	(10.637.823)	(14.840.129)
30. Margine di interesse	8.011.546	4.865.510
40. Commissioni attive	23.358.230	21.070.903
50. Commissioni passive	(9.688.193)	(10.442.712)
60. Commissioni nette	13.670.037	10.628.191
70. Dividendi e proventi simili	3.468.994	6.148.140
80. Risultato netto dell'attivita' di negoziazione	6.394.750	7.909.448
100. Utile/perdita da cessione o riacquisto di:	2.096.993	4.027.374
b) attivita' finanziarie disponibili per la vendita	2.096.993	4.027.374
120. Margine di intermediazione	33.642.320	33.578.663
130. Rettifiche/Riprese di valore nette per deterioramento di:	1.119.452	1.081.096
a) crediti	1.096.892	798.010
b) attivita' finanziarie disponibili per la vendita	$\mathbf 0$	(433.594)
d) altre operazioni finanziarie	22.560	716.680
140. Risultato netto della gestione finanziaria	34.761.772	34.659.759
150. Spese amministrative	(24.651.746)	(26.016.197)
a) spese per il personale	(13.525.292)	(15.005.300)
b) altre spese amministrative	(11.126.454)	(11.010.897)
160. Accantonamenti netti ai fondi per rischi e oneri	1.119.268	(151.831)
170. Rettifiche di valore nette su attivita' materiali	(798.416)	(824.845)
180. Rettifiche di valore nette su attivita' immateriali	(4.008.226)	(1.698.127)
190. Altri oneri/proventi di gestione	245.938	305.660
200. Costi operativi	(28.093.182)	(28.385.340)
240. Utili (Perdite) da cessione di investimenti	(9)	$\Omega$
250. Utile della operativita' corrente al lordo delle imposte	6.668.581	6.274.419
260. Imposte sul reddito di periodo dell'operativita' corrente	(2.205.581)	(2.196.119)
270. Utile della operativita' corrente al netto delle imposte	4.463.000	4.078.300
290. Utile (perdita) di periodo	4.463.000	4.078.300