Banco BPM SpA — Investor Presentation 2018

Nov 7, 2018

9M 2018 Group Results Presentation

⁷ November ²⁰¹⁸

DISCLAIMER

This presentation has been prepared by Banco BPM ("Banco BPM"); for the purposes of this notice, "presentation" means this document, any oral presentation, any question and answer session and any written or oral material discussed following the distribution of this document.

The distribution of this presentation in other jurisdictions may be restricted by law or regulation. Accordingly, persons who come into possession of this document should inform themselves of, and observe, these restrictions. To the fullest extent permitted by applicable law, Banco BPM and its companies disclaim any responsibility or liability for the violation of such restrictions by any person.

This presentation does not constitute or form part of, and should not be construed as, any offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of Banco BPM or any member of its group, nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities in Banco BPM or any member of its group, or any commitment whatsoever. This presentation and the information contained herein does not constitute an offer of securities in, the United States or to any U.S. person (as defined in Regulation ^S under the U.S. Securities Act of ¹⁹³³ (the "Securities Act"), as amended), Canada, Australia, Japan or any other jurisdiction where such offer is unlawful.

The information contained in this presentation is for background purposes only and is subject to amendment, revision and updating. Certain statements in this presentation are forward-looking statements about Banco BPM. Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forwardlooking statements are generally identified by the words "expects", "anticipates", "believes", "intends", "estimates" and similar expressions. By their nature, forward-looking statements involve ^a number of risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements.

Banco BPM does not undertake any obligation to update or revise any forward-looking statements, whether as ^a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation.

None of Banco BPM, its subsidiaries or any of their respective members. Directors, officers or employees nor any other person accepts any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or otherwise arising in connection therewith.

By participating to the presentation of the Group results and accepting ^a copy of this presentation, you agree to be bound by the foregoing limitations regarding the information disclosed in this presentation.

***

This presentation includes both accounting data (based on financial accounts) and internal management data (which are also based on estimates).

Mr. Gianpietro Val, as the manager responsible for preparing the Bank's accounts, hereby states pursuant to Article 154-bis, paragraph ² of the Financial Consolidated Act that the accounting data contained in this presentation correspond to the documentary evidence, corporate books and accounting records.

METHODOLOGICAL NOTES

• The new accounting standard IFRS ⁹ on "Financial Instruments" became effective beginning on ¹ January ²⁰¹⁸ and therefore the P&L and balance sheet results of ²⁰¹⁸ have been prepared in compliance with the new accounting standard IFRS 9, while the ²⁰¹⁷ P&L and balance sheet results had been prepared in compliance with the former accounting standard IAS 39.
• •The final impact of the FTA in relation to IFRS ⁹ and IFRS ¹⁵ was defined as at ³⁰ June ²⁰¹⁸ with reference to ⁰¹ January ²⁰¹⁸ data.
• • To favor ^a more consistent comparison between the ²⁰¹⁸ and ²⁰¹⁷ P&L data, in this presentation, ²⁰¹⁸ data are complemented with the main reclassifications on adoption of the new accounting standard IFRS 9. However, it should be pointed out that the new classification and measurement criteria and the new impairment model for financial assets do not allow ^a full comparability of the two sets of data under comparison.
• • For ^a correct understanding of the Balance Sheet quarterly evolution, with accounting standards being equal, the balance sheet data as at 30/06/2018 and 30/09/2018 has been compared with the balance sheet data as at 01/01/2018, recalculated, whenever possible, based on the new accounting standard, with all the differences and reclassifications as at 01/01/2018 duly highlighted compared to IAS ³⁹ compliant data at 31/12/2017 in appendix.
• It should be noted that starting from ²⁰¹⁸ the reclassified Balance Sheet scheme has been changed to include the new accounting categories of financial instruments, and that for the reclassified income statement face, the adoption of IFRS ⁹ required that some aggregates be redefined (for more details please refer to the explanatory notes of the news release of ⁷ November ²⁰¹⁸ on the approval of the consolidated results as at ³⁰ September 2018).
• • It is noted that starting from 30/06/2018 ordinary and extraordinary systemic charges related to SRF and DGS have been reclassified fromOther Operating Expenses to ^a dedicated item "Systemic charges after tax". Historical P&L schemes have been reclassified accordingly.
• • It is also reminded that in August 2017, Banco BPM signed ^a binding Memorandum of Understanding to sell 100% of Aletti Gestielle SGR's capital to Anima Holding. For this reason, starting from 30/09/2017, the contribution of Aletti Gestielle has been classified according to IFRS ⁵ as ^a "discontinued operation". The sale of the Company was perfected in December 2017. For this reason, in the ²⁰¹⁷ P&L statement, the contribution of Aletti Gestielle SGR and the gain realised from disposal are booked in line item "Income after tax from discontinued operation".
• • Moreover, in February 2018, Banco BPM signed an agreement to sell the Custodian Banking activity and, in September the Business Unit has been officially sold. For this reason, starting from 31/03/2018, the Balance Sheet data related to this Business Unit (substantially CA and Deposits) have been classified according to IFRS ⁵ as ^a "discontinued operation" and as at 30/09/2018 they are no more included in the consolidated perimeter. In this presentation, in order to ensure coherence with the historical reporting, the Direct Funding as at 01/01/2018 shown in the slide no. ²³ is proforma, i.e. reported excluding the data related to this Business Unit.

Agenda

1	i i h l h t K H e g g s y	4
2	f i i i t b l t P r o a y	2 1
3	i i i i F d d L d t n n g a n q u u y	2 2
4	i i C t L d F C d t Q l t u s o m e r o a n s a n o c u s o n r e u a y	3 0
5	C i l i i t P t a p a o s o n	3 8
A n	n e e s x	4 0

NPL DYNAMICS AT A GLANCE: IMPRESSIVE DERISKING

€ bn – Total NPLs, gross book value

• 1. % change vs. perimeter after disposals.
• 1. Accounting gross book value, including restatement for managerial purposes (inclusion of a portion of write-offs, in coherence with the restatement done in 2017)

• Key Highlights

⁵

1. Includes also the net change in Past Due.

ACCELERATED DERISKINGSINCE THE MERGER: SUMMARY

^A significant reduction in accounting GBVs (-€11.5bn) is registered since the effectiveness of the merger (01/01/2017), thanks not only to disposals, but also to the enhanced workout management (cash recoveries, cure and cancellations), leading to ^a continuous improvement in the pace of derisking.

Analysis of NPLs stock reduction since YE 2016

Notes:

1. Including also disposals carried out in 2016, total disposals actually amount to €9.5bn.

PROJECT ACE: UPDATE ON DERISKINGPROCESS UNDER WAY

SOUND CAPITAL POSITION

Good and increasing buffer vs. 2018 SREP requirement

• In Q3 2018, the Group has strengthened its capital position notwithstanding the impact of the BTP portfolio performance
• Capital flexibility guaranteed by possible optimisation opportunities in the financial participations portfolio

See slide 61 for further details.

RESULTS OF THE EU-WIDE STRESS TEST

Soundness of profitability and resilience of capital position confirmed also by the Stress Test results

The results achieved by Banco BPM are very satisfactory, confirming the Group's ability to generate value under the baseline scenario and resilience under the adverse scenario

• The outcomes are even more important considering that the exercise rules prevented the peculiarities tied to the merger plan to be factored in, which would otherwise have contributed to further significant improvements in the results. More in detail:
• i. the exercise has not allowed to filter out merger-related extraordinary and nonrecurring costs, which were projected throughout the 3-year time horizon for a cumulative total exceeding €500m, thus generating unrealistic effects;
• ii. based on the static balance sheet assumption, the exercise has not allowed to factor in the ongoing de-risking process, in particular the sale of € 5.1 billion of bad loans already completed in H1 2018 (corresponding to about one third of the total portfolio).
• The above-mentioned factors had a material negative impact also with reference to the Leverage Ratio

9M 2018 STATED PERFORMANCE

€ m	9 M 2 0 1 8 ( S 9 ) I F R	9 2 0 M 1 7 ( I A S 3 9 )
S C O N E T I N T E R E T I N M E	3 8 1, 7	8 1, 5 5
O C O T T A L I N M E	3, 7 5 1	€ 3, 3 6. 0 % 1, 7 1 +
O P E R A T I N G C O S T S	2, 0 6 8 -	2, 2 0 3 4 5 % - -
O O O O S P R F I T F R M P E R A T I N	6 8 3 1,	6 8 2, 3 % 1, 1 -
L O A N L O S S P R O V I S I O N S	9 5 4 -	9 8 8 1 3. 9 % - -
O O P R F I T B E F R E T A X	9 7 7	6 2 2 4 2 % +
N E T I N C O M E	5 2 5	5 3

9M 2018 ADJUSTED PERFORMANCE

Figures adjusted for IFRS9 effect and one-off items

Notes:

1. See slide 53 for full details regarding one-off items. In addition, 9M 2017 adjusted figures are restated to take account of the deconsolidation of Aletti Gestielle, thereby providing a homogeneous comparison.

Agenda

1	i i K H h l h t e g g s y	4
2	f i i i P t b l t r o a y	1 2
3	d i d i i d i F L t u n n g a n q u y	2 2
4	C t d C d i t Q l i t L F s o m e r o a n s a n o c s o n r e a u u u y	3 0
5	i i i C t l t P a p a o s o n	3 8
A n	n e x e s	4 0

NET INTEREST INCOME

Volume growth and cost of funding reduction supporting growth in Q3

• Stated Net Interest Income up 9.7% y/y, benefiting from the reversal of time value on bad loans (reclassified from LLPs under IFRS 9) and PPA
• Net interest income was up 1.7% y/y on a like-for-like basis (excluding one-offs, IFRS 9 effect and PPA), mainly driven by lower cost of funding

• In the quarterly comparison, Net Interest Income was down 4.7%, mainly due to a lower PPA effect and time value on bad loans resulting from NPL disposals (Exodus transaction). On an underlying basis (net of PPA and IFRS 9 effects), NII was up 1.4% q/q, also thanks to volume growth

• Includes approx. €32m related to TLTRO2 accrued in ²⁰¹⁶ and booked in Q1 17.

NET INTEREST SPREAD IN COMMERCIAL BANKING

• The asset spread decrease in the quarter is partially explained by the high proportion of high-quality new loans granted to the corporate and institutional segments, with an embedded low risk profile
• On a progressive basis, the asset spread in September (2.03%) registered a decrease of only 3 bps vs. the corresponding level as of June
• A steady improvement is registered in the trend of the liability spread

Notes: Quarterly spreads for 2017 have been adjusted to reflect the adoption of new customer portfolio perimeter and segments of the new commercial network

NET FEES AND COMMISSIONS

• In 9M 2018, management and advisory fees showed an increase of more stable running fees (+13.3% y/y) whereas upfront fees (-26.7% y/y) were affected by the market turmoil in Q2 and Q3 2018. Total fees and commissions decreased 6.7% y/y, compared with a reduction of 8.9% y/y recorded in H1 2018
• Fees and commissions were flat q/q, a good result in light of the typical seasonal effect in Q3 and the market turmoil in the quarter. The result benefited from the higher diversification of fees generated across different businesses (i.e. credit fees), entirely offsetting lower management and advisory fees

NET FINANCIAL RESULT

• Net Financial Result stood at €156m in 9M 2018 (+€43m y/y), mainly thanks to higher gains from disposals of debt securities
• In Q3, the Net Financial Result came in at €47m, a good result in light of the reduced capital sensitivity to government bonds (reduction of €3.2bn in government bonds classified in HTCS)

OPERATING COSTS

• In 9M 2018, operating costs were down 6.1% y/y (stated) and 5.6% y/y on an underlying basis (excl. one- off items and PPA), thanks to strict cost control
• Operating costs amounted to €677m in Q3 2018, the best quarterly result reached since the creation of Banco BPM, down 1.8% q/q.

OPERATING COSTS¹ WELL AHEAD OF STRATEGIC PLAN TARGETS

Notes:

1. Internal Management Data adjusted for non-recurring items, systemic charges and DTA fees. All figures are pro-forma (ex Aletti Gestielle). It is noted that ²⁰¹⁸ figures do not yet benefit from the full effect of synergies coming from personnel and other administrative costs.

PERSONNEL EXPENSES

• Personnel expenses were down 3.9% y/y, mainly driven by the headcount reduction
• Personnel expenses were down also in the quarter, coming in at €431m (-1.3% q/q)
• Total headcount stood at 22,640 on 30 Sept. 2018, down from 23,263 at year-end 2017 (-623, of which 375 on the basis of the Solidarity Fund at the end of June 2018) and from 25,001 at the starting point of the Strategic Plan (-2,361)
• Additional 314 exits are planned in December 2018, as part of the already agreed Solidarity Scheme

OTHER ADMINISTRATIVE EXPENSES

Other administrative expenses decreased 8.5% y/y and 3.4% q/q, thanks to the strict cost control across all expense categories. The categories that benefit most from the merger-related synergies are third party and advisory services, maintenance and rental, advertisement, transport and insurance

LOAN LOSS PROVISIONS

• 9M 2018 LLPs of €953.9m include the impact of €160.8m coming from the application of the IFRS 9 accounting principle (€66m in Q1, €63m in Q2 and €32m in Q3)
• LLPs pre-IFRS 9 are down by 19.7% Y/Y , corresponding to an annualized cost of credit of 99bps. This level includes the impact of Exodus as well as the maintenance of a solid NPL coverage
• In Q3 2018, LLPs (post IFRS 9) stood at €267m, -25.8% Q/Q. Also excluding the €54m impact from the Exodus transaction from Q2, LLPs are still down on a quarterly basis (-12.7% Q/Q).

Notes:

1. The IFRS 9 impact is due to the reclassification to NII of +€98.4m of PPA reversal on Bad Loans and of +€62.5m of time value reversal of Bad Loans and Accrual interest on Net UTP.

2. Cost of credit calculated adding to LLPs also €2.8m of generic provisions related to the Exodus Senior Tranche classified under the Item Net Adjustments on other assets, in coherence with the aggregate of Net Customer Loans

Agenda

1	i i K H h l h t e g g s y	4
2	f i i i P t b l t r o a y	1 2
3	d i d i i d i F L t u n n g a n q u y	2 2
4	C t d C d i t Q l i t L F s o m e r o a n s a n o c s o n r e a u u u y	3 0
5	i i i C t l t P a p a o s o n	3 8
A n	n e x e s	4 0

DIRECT FUNDING

Healthy growth in core deposits, with concurrent decline in more expensive sources of funding

Direct funding¹ (without Repos)

Notes:

1. Direct funding restated according to a management logic: it includes capital-protected certificates, recognized under 'Held-for-trading liabilities', while it does not include Repos (€9.0bn at September 2018, basically transactions with Cassa di Compensazione e Garanzia).

2.Internal management data.

Historic data exclude the volumes of the custodian banking Activity (€3.7bn as at 01/01/18 and €4.2bn as at 30/06/18), sold in Q3 2018.

C H A N G E	In % s. 0 v / 0 / 8 1 1 1	% In Q 3
C / S ig h t de i ts A & p os	0 % 5.	2 % 1.
im de i ts T e p os	% -3 5. 4	% -1 3. 6
Bo ds n	-1 3. 3 %	-6 2 %
C Ds O t he & rs	-1 9. 9 %	-5 6 %
Ca i ta l-p te te d p ro c Ce t i f ic te r a s	-9 2 %	-6 8 %
ire in D t Fu d (ex s) c n g cl. Re po	% -1 0	% -0 9

• Direct funding at €102.6bn, with a positive dynamic of C/A and sight deposits (+5.0% YTD and +1.2% in Q3)
• Increasing weight of stable core Retail component in Deposits: from 61% as at June to 63% as at September 2018²
• New issuance activity on wholesale markets in the 9M period: €1.25bn of Covered Bonds and €0.5bn of Senior bonds

BOND MATURITIES: VERY MANAGEABLE AMOUNTS

The Group will maintain a robust funding structure and a balanced ALM profile, while optimizing the cost of funding and developing AUM

• Very limited amount of bond maturities (€1.3bn in Q4 18, €2.1bn in 2019 and €2.8bn in 2020),
• Retail maturities keep sustaining the growth of Deposits and AUM, supporting both NII and Commissions
• A low-cost funding source: the current amount of unencumbered assets eligible for Covered bonds/ABS issuance is well in excess of the maturing securities
• The solid funding and liquidity position allows the Group to wait for better market conditions to tap the institutional bond market

STRONG LIQUIDITY POSITION

€ bn - Internal management data, net of haircuts

Breakdown of assets encumbered with TLTRO II as at 30/09/2018

• As of October, €0.8bn of unencumbered marketable securities (net of haircuts) refinanced in bilateral transactions
• €13bn of assets encumbered with TLTRO II are high quality marketable securities (rated ^A or higher): easy to refinance at good conditions
• €8.4bn of credit claims (ABACO) are eligible for securitisations

• LCR at 133% & NSFR >100%³

• Defined as non-mandatory ECB deposits (exceeding the compulsory reserve)2. Refers to securities lending (uncollateralized high quality liquid assets) 3. Monthly LCR as at September 2018; Monthly NSFR based on management data as at September 2018.

SECURITIES PORTFOLIO

Prudent diversification, with solid liquidity and support of NII

€ bn

Further details on the Goviesportoflio in the following slide

Securities Portfolio Breakdown

i i f i S t P t l B k d e c u r e s o r o o r e a o w n						C hg . v s. 0 1 / 0 1 / 1 8	C hg in Q 3
	3 0 / 0 9 / 8 1	3 0 / 0 6 / 8 1	0 / 0 / 8 1 1 1	3 / 2 / 1 7 I 1 1 S 3 9 A	lu Va e	lu Va e	lu Va e
i ie De b t s t ec ur s	3 4. 0	3 6. 1	3 0. 3	3 0. 2	3. 7	3. 7	-2 1
/ ta l G ie To o ov s w -	2 8. 4	3 0. 4	2 3 5.	2 2 5.	3. 1	3. 0	-2 1
/ I ta l ia G ie - o w : n ov s	8. 2 1	8. 9 1	2 0. 8	2 0. 7	-2 5	-2 6	-0 7
in % To ta l Go ie on v s	6 4. 3 %	6 2. 2 %	8 2. 1 %	8 2. 1 %
i i ie fu iv i Eq ty t d O d ds Pr te ty & u se cu r s a n p en -e n n a e q u	2. 3	2. 4	2. 2	2. 2	0. 1	0. 1	-0 1
O S C S T T A L E U R I T I E	3 6. 2	3 8. 5	3 2. 4	3 2. 4	3. 9	3. 8	-2 2

Italian Govies at €18.2bn: -€0.7bn in Q3 and -€2.5bn YTD and, with an accounting remix:

• HTCS down to €6.5bn (-€1.9bn in Q3 and -€3.4bn vs. year-end ²⁰¹⁷ IAS 39), with ^a modified duration of ~2.9 years¹
• HTC up at €10.1bn (+€1.2bn in Q3 and +€0.1bn vs. year-end ²⁰¹⁷ IAS 39)
• FVTPL at €1.6bn (stable in Q3 and +€0.8bn vs. year-end ²⁰¹⁷ IAS 39), o/w €0.9bn short-term trading positions held in the investment bank portfolio
• Non-Italian Govies at €10.1bn, 36% of total Govies: primarily France (13%), USA (11%), Germany (6%), followed by Spain (5%)
• Gross HTCS reserve on debt securities at about -€330m (vs. about -€200m at the end of June ²⁰¹⁸ and about +€165m end of Dec. 2017)¹.

Chg. vs.

Chg. in

FOCUS ON ITALIAN GOVIES: DECLINE IN HTCS COMPONENT AND STRONG REDUCTION OF SENSITIVITY TO SPREAD EVOLUTION

1bps spread sensitivity down from about €3.5m in Q2 ²⁰¹⁸ to €2.0m in September

Yearly evolution of Italian Govies portfolio: -€6.5bn in total, o/w -€6.1bn for AFS/HTCS

INDIRECT FUNDING

Strong performance of 'Funds and Sicav'

Big impact from market performance, especially on AuC

Assets under Management

TOTAL CORE FUNDING: GROWTH DESPITE MARKET TURMOIL

Notes:

1. AUC excludes Capital-protected Certificates and, as from 01/01/2018, excludes also €4.8bn of volumes related to one big-Ticket position of an institutional client who left our Group in Q1 2018. See slide 28 for details.

2. Funding and Liquidity

Agenda

1	i h l i h K H t e y g g s	4
2	f i i i t b l t P r o a y	2 1
3	i i i i d d d t F L n n g a n q u u y	2 2
4	i i C t L d F C d t Q l t s o m e r o a n s a n o c s o n r e a u u u y	3 0
5	C i l i i t P t a p a o s o n	3 8
A n	n e e s x	4 0

NET CUSTOMER LOANS

Satisfactory increase in Performing Loans, with strong performance of new loan granting in Q3 (€5.5bn)

	3 0 / 0 9 / 8 1	3 0 / 0 6 / 8 1	0 / 0 / 8 1 1 1	In % vs . 0 1 / 0 1 / 1 8	In % Q 3
f i l P e r o r m n g o a n s	9 7. 7	9 2 7.	9 4. 5	3. 4 %	0. % 5
2 C t l o r e c u s o m e r o a n s	8 8. 7 4	8 7. 2 6	8 6. 9 4	% 2. 1	% 1. 7
L i e a s n g	1. 1 6	1. 2 0	1. 2 0	-3 6 %	-3 3 %
R e p o s	6. 4 1	3 7. 1	6. 3 6	-3 6 %	3. 9 % -1
d S i Ex N t o u s e n o r o e s	6 6 1.	6 1. 5	0. 0 0	n. m	0. % 1
N P L s	9. 1	9. 5	1 1. 6	2 1. 3 % -	3. 9 % -
T O T A L	1 0 6. 8	1 0 6. 7	1 0 6. 1	0. 7 %	0. 1 %

CHANGE

• Trend of total Net Customer Loans impacted by the solid derisking (disposal of Bad Loans and workout) and by the subscription of Exodus Senior Notes
• Performing customer loans are up 3.4% vs. 01/01/2018 and 0.5% in Q3
• Even when excluding the subscription of €1.7bn of Exodus Senior Notes, performing loans are up by 1.6% YTD and 0.5% Q/Q, with ^a positive trend registered in "Core customer loans" ² (+2.1% YTD and +1.7% in Q3)
• €14.6bn of new mortgage and personal loans granted in the period (€2.7bn to Households and €11.9bn to Corporate)³ , with ^a strong performance in Q3 (€5.5bn), particularly in the highly-rated corporate segment.

Notes:

• 1. Customer loan data refer to Loans and advances to customers measured at Amortized Cost, including also the Exodus senior notes
• 1. Core customer loans include Mortgage Loans, Current Accounts, Cards & Personal Loans and Other technical forms.
• 1. Internal management data. 'Corporate' includes SMEs, Large Corporates, Institutional Customers and Third Sector.

NPL STOCK REDUCTION PROGRESSING WELL

Net NPLs reduced by >€8bn vs. the Strategic Plan starting point, with net Bad Loans more than halved

Net NPLs

	€ 8. 6 b n -			Pre -I	1 F R S 9 F T A
€ 3. 9 b n -			E € C H A N G	C hg s. 3 . v 1 / 1 2 / 1 7		C hg . v s. 0 1 / 0 1 / 1 8		in C hg Q 3
€ m	1 1, 5 9 5	9, 4 9 3		/ d % m a n	lu Va e	%	lu Va e	%	lu Va e	%
			9, 1 2 3	d Ba Lo an s	-2 9 6 2 ,	-4 % 5. 7	6 -1 7 1 ,	-3 2. % 7	-8 8	-2 4 %
				U T P	-9 5 5	-1 4. 8 %	-7 6 9	-1 2. 3 %	-3 0 4	-5 2 %
				Pa t Du s e	1 3	% 1 5. 9	1 3	% 1 5. 9	2 1	% 2 9. 8
				O T T A L N P Ls	-3 9 0 4 ,	-3 0. 0 %	-2 4 2 7 ,	-2 3 % 1.	-3 7 1	-3 9 %

Evolution of Net NPL and Net Bad Loan ratios

• Net NPLs down by €2.5bn vs. 01/01/2018 (-€3.9 pre-IFRS 9), thanks to the Exodus transaction, Bad Loan workout and UTPs reduction, confirming the good performance of NPL management and the normalization in asset quality trends
• Net NPL ratio down at 8.5% and Net Bad Loan ratio down at 3.3%. Both are set to improve further after the completion of the revised derisking plan

Notes:2018 Customer Loan data refer to Loans and advances to customers measured at Amortized Cost.

1. As at 01/01/2018, €0.2bn Net UTP loans were reclassified from Customer Loans measured at Amortized Cost to Other Financial Assets. Also, the IFRS 9 FTA impact on net NPLs for new Impairment models has translated into a reduction of €1.2bn as at 01/01/2018 (specifically in Bad Loans).

Net NPL ratioNet Bad Loan ratio

324. Customer Loans and Focus on Credit Quality

CONSERVATIVE COVERAGE LEVELS MAINTAINED

Coverage strengthened mainly thanks to the IFRS 9 FTA

NPL coverage

• NPL coverage at 50.6% (+190bps vs. YE 2017), mainly leveraging on the IFRS 9 FTA on Bad Loans, which reach a coverage of 65.0% (+610bps vs. YE 2017), paving the way for the acceleration of the deriskingplan
• The decrease in Bad Loan coverage in Q3 (-120bps), reflected also in the total NPL coverage (-50bps), is essentially due to the write-offs perfected in the period (+€0.4bn). Including write-offs (element that is part of the overall derisking strategy), the Bad Loan coverage comes in at 69.0% and the NPL coverage at 53.9%
• Further strengthening of UTP coverage in the quarter (+130bps YTD and +70bps Q/Q)

Notes: 2018 Customer Loan data refer to Loans and advances to customers measured at Amortized Cost.The IFRS 9 FTA impact on NPLs coverage (specifically on Bad Loans) for new Impairment models translated into an increase of NPL Adjustments of €1.2bn as at 01/01/2018.4. Customer Loans and Focus on Credit Quality

33

FOCUS ON BAD LOANS: DETAILED ANALYSIS

Accounting coverage stable vs. June ²⁰¹⁸ including write-offs, while ^a slight reduction was registered in terms of accounting cash coverage, due to cancellations and write-offs

EFFECTIVE WORKOUT ACTIVITY ON BAD LOANS

Notes:

Internal management data. Includes gains on closed positions and recoveries on single name disposals. Recovery rate calculated over average Gross Book Value of the period.

BAD LOAN RECOVERY PERFORMANCE

Recovery rate on average GBV

• ²⁰¹⁷ represented ^a «change of paradigm» compared to both banks' historical performance
• ²⁰¹⁸ is clearly overperforming ²⁰¹⁷ results

Notes:

Internal management data. Includes gains on closed positions and recoveries on single name disposals over average Gross Book Value of the period.

1. Customer Loans and Focus on Credit Quality

UTP analysis

FOCUS ON UTP LOANS: DETAILED ANALYSIS

Breakdown of Net UTP Loans

		3 0 / 0 9 / 1 8	3 / 2 / 1 1 1 7 ( ) I A S 3 9	% C hg
To ta l n t U T P e		5. 5	6. 5	% -1 4. 8
/ o w :	d Re tru tu s c re	2. 4	2. 8	4. % -1 7
	Se d cu re -	1. 4	1. 8	-1 8. 8 %
	d Un se cu re -	1. 0	1. 1	-7 8 %
/ o w :	O t he U T P r	3. 1	3. 6	-1 5. 0 %
	Se d cu re -	2. 5	3. 1	-1 8. 6 %
	d Un se cu re -	0. 6	0. 5	5. 9 %

Evolution of UTP ratios1

Gross ratioNet ratio

1. Customer Loans and Focus on Credit Quality

2. Solid level of coverage for unsecured UTP: 47.0%

3. Net Restructured loans (€2.4bn) account for 44.0% of total net UTP: they are essentially related to formalized underlying restructuring plans and procedures (mainly under Italian credit protection procedures)
4. Net unsecured UTP other than Restructured loans arelimited to €0.6bn

Note:

• 1) Trend since Strategic Plan starting point and YTD also impacted by IFRS 9 reclassifications (-€0.3bn at Gross level and -€0.2bn at net level as at 01/01/2018).
• 2) Calculated as a % of Total Loans including Write-offs (Nominal).

Agenda

5	i i i C t l P t a p a o s o n	3 8
4	i i C t L d F C d t Q l t s o m e r o a n s a n o c s o n r e a u u u y	3 0
3	i i i i d d d t F L n n g a n q u u y	2 2
2	f i i i t b l t P r o a y	2 1
1	i h l i h K H t e y g g s	4

Annexes

⁴⁰

CET1 RATIO: EVOLUTION DETAILS

13.2%RWA FL: €75.8bn31/12/2017RWA FL: €65.2bn30/09/2018+52bps 11.2%Capital Management Actions: SALE OF CUSTODIAN BANK GACS ON SENIOR NOTES OF THE EXODUS TRANSACTION 11.9%01/01/2018Q3 performance -Variation of gross HTCS reserves and other related impact-16bps30/06/201812.9% CET 1 phased-inRWA FL: €66.6bnCET 1 FL11.9% 10.8%Includes IFRS 9 FTA impact 30/06/2018

CET 1 ratio at 13.2% phased-in and at 11.2% FL

• Satisfactory capital position, with CET ¹ ratio FL at 11.2%, notwithstanding the full impact of the IFRS ⁹ FTA and the recent financial market turmoil (impacting the HTCS reserves), benefitting from ^a series of capital management actions
• Temporary negative impact from the change in value of the HTCS reserve, resulting from the sovereign spread crisis
• CET ¹ phased-in at 13.2%, benefitting from the 5-year phasing of the IFRS ⁹ impact

30/09/2018 ratios include also Q3 net income.

Agenda

Annexes

40Agenda - 9M 2018 Group Results Presentation

ANNEXESSTRATEGIC PROJECTS OVERVIEW

PRODUCT COMPANYREVIEWBANKING MODELCOMPLETED CAPITAL STRENGTHENING• Optimisation of Group product companies • Internal Model Validation • Disposal Custodian Bank (Q3 2018) • New Commercial Model • Corp. & Investmt. Bank: consolid. under Akros• Private & WM: consolidation under Aletti • Incorporation of BPM SpA into BBPM• Incorp. of SGS and BP Property into BBPM• Digital Transformation Project • AuM & Bancassurance Reorganisation • Transfer of Insurance Reserve Management • Disposal Custodian Bank OPERATING EFFICIENCYENHANCEMENT• IT System Integration• Staff Reduction & HR Requalification • Branch Rationalisation • Further cost containment actions • Additional branch closures (209 in Q4) ASSET QUALITY IMPROVEMENT• NPL Unit set-up• Bad Loan Disposals • Strengthening of NPL Workout • Consumer Credit Reorganisation• ACE Derisking Project (binding offers expected mid-Nov. 2018) MAIN STRATEGIC PROJECTS AIMED AT FURTHER IMPROVING THE RISK PROFILE, CAPITAL POSITION AND OPTIMIZING COSTS IN PROGRESSFull €400m cost synergies expected from FY 2019 • Launch of new business line in Bancassurance ('Primavera')• Review of Leasing activities Q4 2018

41Annexes

ANNEXESBANCO BPM DELIVERS STRONG DERISKING

30/09/2018, Update as at pre ACE Project

Notes:

1. Data restated excluding from the Nominal amount only the write-offs which remained off-

balance sheet at the beginning of 2017

42Annexes

ANNEXESBANCO BPM DELIVERS STRONG DERISKING

BANCO BPM ADOPTEDONE OF THE MOST AMBITIOUS DERISKING PLANS¹

√BAD LOAN DISPOSAL PLAN: €13bn (revised up from €8bn)

9M 2018 DERISKING HIGHLIGHTS

√ S T R O N G R E D U C T I O N O F B A D L O A N R A T I O T H A N K S T O D I S P O S A L S A N D W O R K O U T	O O 3. 3 % N E T B A D L A N R A T I A T 4. 2 % i i l 2 0 1 9 t t v s. o r g n a a r g e % 3. 4 t 3 0 / 0 6 / 2 0 1 8 v s. a s a
√ O S O 2 0 9 O G G U T P L A N A L R E A D Y B E L W 1 R I I N A L T A R E T	% N E T U T P L O A N R A T I O A T 5. 2 6. % i i l 2 0 9 t t 7 1 s. o r g n a a r g e v 5. 4 % t 3 0 / 0 6 / 2 0 1 8 v s. a s a
√ P R O J E C T E X O D U S D E L I V E R E D O N T I M E ( B Y 3 0 / 0 6 / 2 0 1 8 )	€ b O S 5 B A D L A N n ~ C O S O D E N L I D A T E D
√ S O O S O S S S O S O G N E X T T E P F R B A D L A N D I P A L H R T L I T F T H R E E B I D D I N : C O N S O R T I A	S € 3. b A T L E A T 5 n ~ i i i f f t h b d t d w n n g o e r s e x p e c e i d- 2 0 8 N 1 m o v.

1. Based on new derisking plan revised in February 2018, with a total amount of Bad Loan disposals revised up from €8bn to €13bn, to be achieved by 2020.

ANNEXESRECLASSIFIED BALANCE SHEET AS AT 30/09/2018

	A	B	C	ME M O	C hg . A	/ C	C hg . A	/ B
Re las i f ie d a ts ( € m ) c s sse	3 0 / 0 9 / 2 01 8	3 0 / 0 6 / 2 01 8	/ / 01 8 res 01 2 01 ta te d	/ / 31 1 7 ( 2 2 01 IA S 3 9 )	lue Va	%	lue Va	%
iva Ca h a d c h e len ts s n as qu	8 07	7 9 6	97 7	97 7	-17 0	% -17 4	1 0	% 1. 3
Lo d a dv d a t A C an s a n an ce s m ea sur e	11 1, 45 3	11 2, 0 41	11 1, 0 45	11 2, 6 8 2	4 0 8	0. 4 %	-5 8 8	-0. 5 %
Lo d a dv to ba ks an s a n an ce s n -	4, 6 3 9	5, 31 0	4, 9 37	4, 9 3 9	-2 9 8	-6. 0 %	-67 1	-1 2. 6 %
d a dv to tom ( *) Lo an s a n an ce s cu s ers -	0 6, 81 1 5	0 6, 31 1 7	0 6, 0 8 1 1	07, 4 3 1 7	0 6 7	0.7 %	8 4	0.1 %
O t he f ina ia l a ts r nc sse	3 8, 9 75	41 0 4 9 ,	3 4, 8 85	3 4, 3 3 5	3, 87 4	% 11. 1	-2, 2 8 9	6 % -5.
d a hro h P A ts m t F V t L sse ea sur e ug -	8, 01 1	97 7, 7	6, 41 7	85 5, 1	9 4 1, 5	2 4. 8 %	3 4	0. 4 %
A ts m d a t F V t hro h O CI sse ea sur e ug -	15, 8 6 0	1 9, 01 8	1 6, 75 0	17, 1 2 9	-8 9 0	-5. 3 %	-3, 15 8	-1 6. 6 %
A ts m d a t A C sse ea sur e -	1 4, 8 8 8	1 4, 05 4	11, 71 8	1 2, 2 2 0	3, 17 0	27 .1 %	8 3 4	5. 9 %
Eq ity inv tm ts es en u	1, 37 9	1, 35 5	1, 25 7	1, 3 4 9	1 2 2	9.7 %	2 4	1. 8 %
rty d e ipm t Pro pe a n qu en	2, 8 4 8	2, 3 3 7	2, 35 7	2, 35 7	2 11	4.1 %	4 11	4. 2 %
i Int b le ts an g as se	1, 2 85	1, 2 95	1, 2 97	1, 2 97	-1 2	% -1. 0	-1 0	% -0. 8
Ta ts x a sse	4, 85 0	4, 9 0 4	4, 8 97	4, 5 2 0	-4 8	% -1. 0	-5 4	% -1. 1
No t a ts he l d for le d d isc t. o t ion n-c urr en sse sa an on pe ra s	45	45	1 0 6	1 0 6	-61	-57 8 %	0	-0. 1 %
O t he ts r a sse	2, 45 9	2, 81 1	3, 0 07	3, 0 07	-5 4 8	-1 8. 2 %	-35 2	-1 2.5 %
To ta l	1 6 3, 8 8 4	1 67 0 2 9 ,	1 6 0, 2 0 6	1 61 2 07 ,	3, 67 8	2. 3 %	-3, 1 45	-1. 9 %
	A	B	C	ME M O	C hg . A / C		C hg . A	/ B
i f ie ia i it ies ( ) Re las d l b l € m c s	3 0 / 0 9 / 2 01 8	3 0 / 0 6 / 2 01 8	/ / 01 8 res 01 2 01 ta te d	/ / 31 1 7 ( 2 2 01 IA S 3 9 )	lue Va	%	lue Va	%
Du to ba ks e n	3 0, 97 9	31 55 1 ,	27 1 9 9 ,	27 1 9 9 ,	3, 7 8 0	% 1 3. 9	-57 1	% -1. 8
ire ing D t F d c un	1 07 9 9 9 ,	1 05 5 0 6 ,	1 07 5 25 ,	1 07 51 0 ,	47 3	% 0. 4	2, 4 9 3	% 2. 4
D its fro to ( **) ep os m cu s me rs -	91 3 4 0 ,	87 6 6 0 ,	87 8 4 8 ,	87 8 4 8 ,	3, 4 91	4. 0 %	3, 6 8 0	4. 2 %
D b t s it ies d f ina ia l l ia b i l it ies de ig. t F V e ec ur a n nc s a -	1 6, 65 9	17, 8 4 6	1 9, 67 7	1 9, 6 6 2	-3, 01 8	-15 3 %	-1, 1 87	-6. 7 %
O t he f ina ia l l ia b i l it ies de ig te d a t F V r nc s na	8, 4 8 4	8, 9 6 4	8, 7 0 4	8, 7 0 8	-2 2 0	-2. 5 %	-4 8 0	-5. 4 %
ia b i l ity is ion L pro v s	3 1, 55	3 2 1, 5	61 1, 7	8 0 1, 5	-6 4	-4. 0 %	21	4 % 1.
ia i it ies Ta l b l x	5 6 4	6 0 6	6 9 2	6 6 9	-1 2 8	% -1 8. 4	-4 2	% -7. 0
ia i it ies ia it for L b l te d w h a ts he l d le as so c sse sa	0	4, 21 3	0	0	0	% -1 0 0. 0	-4, 21 3	ns
O t he l ia b i l it ies r	3, 3 6 3	3, 77 1	3, 57 6	3, 57 6	-21 3	-6. 0 %	-4 0 8	-1 0. 8 %
M ino ity int ts r ere s	5 2	5 3	5 8	6 3	-5	-9. 3 %	0	-0. 6 %
S ha ho l de ' e ity re rs qu	0, 8 9 0 1	0, 8 3 4 1	0, 8 35 1	9 0 0 11,	55	0.5 %	6 5	0.5 %
To ta l	1 6 3, 8 8 4	1 67 0 2 9 ,	1 6 0, 2 0 6	1 61 2 07 ,	3, 67 8	2. 3 %	-3, 1 45	-1. 9 %

* "Customer loans" include Exodus Senior Notes.

Note:

** In the official Balance Sheet scheme, "Deposits from customers" as at 01/01/2018 and 31/12/2017, differently from data as at 30/09/2018 and 30/06/2018, include Custodian Bank (€3.7bn), which has beenclassified as discontinued operation as at 30/06/2018 and then sold as at 30/09/2018.

44Annexes

ANNEXESRECLASSIFIED BALANCE SHEET AS AT 01/01/2018 (IFRS 9) VS. 31/12/2017 (IAS 39)

Reconciliation statement between balances at 31.12.2017 and balances at 01.01.2018 restated in compliance with IFRS 9 and IFRS 15

			S 9 FTA IFR
( €/0 00)	31/ 12/ 201 7	Cla ssi tion (a fica )	Me ent imp asu rem act s ( b)	ECL imp act s (c )	FTA IFR S 9 imp act s	FTA IFR 5 imp S 1 act	01/ 8 Res 01/ 201 tat ed
Ca sh and sh ival ent ca equ s	976 686 ,				-		976 686 ,
Fin ial ise d c ets at ort ost anc ass am	112 681 902 , ,	314 696 - ,		1, 322 458 - - ,	1, 637 154 - ,		111 044 748 , ,
D from ba nks ue -	4, 939 223 ,			-2, 716	2, 716 -		4, 936 507 ,
C loa ust om er ns -	107 742 679 , ,	314 696 - ,		1, 319 742 - ,	1, 634 438 - ,		106 108 241 , ,
Fin ial d h edg ing de riva tive ets anc ass an s	34, 533 172 ,	314 696 ,	50, 405	13, 475 -	351 626 ,		34, 884 798 ,
F ina nci al a des ign d a t F V t hro h P &L ts ate sse ug -	5, 184 586 ,	1, 251 406 ,	18, 909 -		1, 232 497 ,		6, 417 083 ,
F ina nci al a des ign d a t F V t hro h o the reh ive inc ts ate sse ug r co mp ens om e -	17, 128 622 ,	430 150 - ,	51, 600		378 550 - ,		16, 750 072 ,
F ina nci al a rtis ed ts at a t sse mo cos -	12, 219 964 ,	506 560 - ,	17, 714	13, 475 -	502 32 1 - ,		11, 717 643 ,
Eq uity inv est nts me	1, 349 191 ,		92, 348 -		92, 348 -		1, 256 843 ,
Pro and uip ty nt per eq me	2, 735 182 ,				-		2, 735 182 ,
Inta ible set ng as s	1, 297 160 ,				-		1, 297 160 ,
Tax set as s	4, 520 189 ,		923	370 675 ,	371 598 ,	5, 610	4, 897 397 ,
No hel d fo le a nd dis tinu ed rati nt a ts n-c urre sse r sa con ope ons	106 121 ,				-		106 121 ,
Oth ts er a sse	3, 007 162 ,				-		3, 007 162 ,
To tal AS SE TS	161 206 765 , ,	-	41, 020 -	965 258 - ,	1, 006 278 - ,	5, 610	160 206 097 , ,
Du ba nks e to	27, 199 304 ,				-		27, 199 304 ,
Dir fun din ect g	107 509 849 , ,		15, 254		15, 254		107 525 103 , ,
D to tom ue cus ers -	87, 848 146 ,				-		87, 848 146 ,
D ebt itie s is d a nd fina nci al l iab iliti des ign d a t fa ir v alu ate se cur sue es e -	19, 661 703 ,		15, 254		15, 254		19, 676 957 ,
Oth er f ina nci al l iab iliti des ign d a t fa ir v alu ate es e	8, 707 966 ,		3, 618 -		3, 618 -		8, 704 348 ,
Lia bili vis ion ty pro s	1, 580 461 ,			16, 451	16, 45 1	20, 400	1, 617 312 ,
Tax lia bili ties	669 494 ,		21, 037	1, 192	22, 229		691 723 ,
Lia bili ties iate d w ith he ld f ale ets as soc ass or s	35				-		35
Oth liab iliti er es	3, 576 116 ,				-		3, 576 116 ,
To tal LI AB ILI TIE S	149 243 225 , ,	-	32, 673	17, 643	50, 316	20, 400	149 313 941 , ,
Min orit inte ts y res	63, 310			-5, 743	5, 743 -		57, 567
Sh hol der s' e ity are qu	11, 900 230 ,	-	73, 693 -	977 158 - ,	1, 050 851 - ,	14, 790 -	10, 834 589 ,
CO NS OL IDA TE D S HA RE HO LD ER S' EQ UIT Y	963 540 11, ,	-	73, 693 -	982 901 - ,	056 594 1, - ,	790 14, -	10, 892 156 ,

a) Reclassification of the IAS ³⁹ balances according the newitems of the financial assets and liabilities.

b) IFRS ⁹ FTA impacts from the new measurement criteria of the financial assets and liabilities (excluding ECL).

45Annexes

c) IFRS ⁹ FTA impacts from the new Expected Credit Loss (ECL) model

ANNEXESIFRS 9 FTA FINAL IMPACT: OPPORTUNITY TO ACCELERATE DERISKING ON BAD LOANS & STRENGTHEN FUTURE PROFITABILITY

IFRS ⁹ First Time Application (FTA) impact: -€1,406m pre-tax (€1,057m post-tax), mainly due to the application of the new impairment model as detailed below:

l i i f i i d l f i t t t a p p c a o n o n e m p a r m e n m o e o n o n- p e r o r m n g e p o s r e s : w x u -	€ 2 4 6 1, m -
l i t i f i i t d l t f i a p p c a o n o n e w m p a r m e n m o e o p e r o r m n g e x p o s u r e s : -	€ 1 0 7 m -
l i i f l i f i i d l t t t a p p c a o n o n e c a s s c a o n a n m e a s r e m e n r e s : w u u -	€ 3 9 + m
l i t i f I F R S 9 b i t a p p c a o n o y a s s o c a e s : -	€ 9 2 m -

The new FTA impairment model to non-performing exposures has been applied exclusively on bad loans cluster coherent with the accounting rules

The resulting impact on the fully phased CET1 ratio as of ¹ January ²⁰¹⁸ is -182 bps

The Group has adopted the transitional arrangements to phase-in the IFRS ⁹ FTA impact in five years (5% for 2018)

IFRS ⁹ FTA provided ^a good opportunity to further increase the Bad Loan coverage in ^a meaningful way, thereby allowing the Group to:

• Accelerate the path of derisking: higher recovery rates and more disposal opportunities (disposal target increased from €8bn to €13bn)
• Pave the way for ^a normalisation of the cost of risk, with positive implications for the bottom line result

For full details about the IFRS9 impact and PPA, please refer to slide 53.

47

ANNEXESOUTPERFORMANCE OF THE ORIGINAL COST SYNERGIES

Better than original Strategic Plan quantitative targets and well ahead of schedule in terms of amount and timing: cost synergies at €400m

Optimisation of Retail Network³: 360 additional branch closures

ANNEXESQUARTERLY ANALYSIS OF STATED RECLASSIFIED P&L

Due to the application of the IFRS9 principle, 2018 figures are only partially comparable with 2017

i f ie in Re la d ta te t c ss co m e s m en	Q 3 2 01 8	Q 2 2 01 8	Q1 20 18	Q 4 2 01	7	Q 3 2 01 7	Q 2 2 01 7	Q1 20 17
( in i l l io ) eu ro m n	( IFR S 9 )	( IFR S 9 )	( IFR S 9 )	( IAS 39	)	( IAS 39 )	( IAS 39 )	( IAS 39 )
Ne t in te t in res co me	55 7.8	58 5.0	59 5.1	52	8.8	52 4.9	51 1.1	54 8.6
Inc e ( los s) fro inv tm ts in iat rrie d a t om m es en ass oc es ca	32 .8	33 .4	42 .6	45	.2	38 .9	40 .4	41
uit eq y								.6
Ne t in ter est div ide nd d s im ila r in an co me ,	59 0.6	61 8.4	63 7.7	57	3.9	56 3.9	55 1.5	59 0.2
t fe nd issi in Ne e a co mm on co me	45 1.4	45 1.0	47 6.5	47	2.1	45 8.9	50 3.6	5.8 51
Ot he et tin inc r n op era g om e	21 4.5	130 .0	24 .2	24	.7	29 .4	14 .4	30 .3
t fi ial Ne sul t na nc re	46 .8	80 .2	29 .3	41	.9	13 .0	63 .3	36 .9
ing in Ot he rat r o pe co me	71 2.7	66 1.2	53 0.0	53	8.7	50 1.3	58 1.3	58 2.9
To tal in co me	13 03 .2	12 79 .6	11 67 .7	11 12	.7	10 65 .1	11 32 .8	11 73 .1
Pe el rso nn ex pe nse s	-43 1.5	-43 7.1	-44 2.1	-42	0.8	-45 0.6	-45 6.7	-45 6.7
Ot he dm inis tra tiv r a e e xp en se s	-19 6.2	-20 3.1	-21 1.5	-20	4.7	-23 6.3	-23 3.1	-19 8.3
Am ort iza tio nd de cia tio n a pre n	-49 .5	-49 .0	-47 .9	-95	.5	-62 .2	-56 .4	-52 .9
Op tin ost era g c s	-67 7.1	-68 9.2	-70 1.5	-72	1.0	-74 9.1	-74 6.2	-70 7.9
fit ( s) fro tio Pro los m op era ns	62 6.1	59 0.4	46 6.2	39	1.7	31 6.1	38 6.6	46 5.2
Ne t a dju stm ts lo s t ust en on an o c om ers	-26 7.4	-36 0.2	-32 6.2	-67	3.1	-34 0.8	-35 4.5	-29 2.5
dju Ne t a stm ts ot he ts en on r a sse	-1. 3	-1. 6	2.2	-12	.7	-48 .3	-70 .8	-8. 4
t p isio for ris ks d c ha Ne rov ns an rge s	.9 -71	-20 .7	-25 .0		-9. 2	4.6	-9. 6	0.5
Pro fit ( los s) o n t he di al of uit nd ot he r in stm ts sp os eq y a ve en	-10 .3	-1. 1	179 .7		12 .1	0.3	-3. 8	17 .1
Inc e ( los s) be for e t fro nti ing tio om ax m co nu op era ns	27 5.2	20 6.8	29 6.9	-29	1.3	-68 .1	-52 .1	18 2.0
in fro nti ing tio Tax on co me m co nu op era ns	-72 .3	-61 .3	-25 .9	10	1.8	34 .8	1.1	-44 .9
Sy ste mi ha fte r ta c c rge s a x	-32 .1	-18 .4	-49 .0		-6. 2	-26 .1	0.0	-45 .0
Inc e ( los s) a fte r ta x f di tin d o rat ion om rom sc on ue pe s	0.9	0.0	0.0	70	0.0	16 .5	25 .8	20 .0
e ( los s) a ttr ibu ta ble to ino rity in te ts Inc om m res	0.3	2.2	1.4		0.9	1.4	4.3	3.1
Ne t in ( los s) for th eri od clu din Ba dw ill & co me e p ex g	17 1.9	12 9.3	22 3.3	50	5.1	-41 .5	-21 .0	11
Im irm t o f g dw ill a nd cl ien t re lat ion shi pa en oo p								5.2

ANNEXESQUARTERLY ANALYSIS OF STATED RECLASSIFIED P&L

Due to the application of the IFRS9 principle, 2018 figures are only partially comparable with 2017

Re la i f ie d inc ta te t	Q 3 2 01 8	Q 2 2 01 8	Q 1 2 01 8	Q 4 2 01 7	Q 3 2 01 7	Q 2 2 01 7	Q 1 2 01 7
c ss om e s m en ( in i l l io ) eu ro m n	( S 9 ) IFR	( S 9 ) IFR	( S 9 ) IFR	( IAS 39 )	( IAS 39 )	( IAS 39 )	( IAS 39 )
t in in Ne ter est co me	55 7.5	54 1.7	53 6.0	52 7.7	51 4.9	50 5.2	53 4.5
( los ) fro inv est nts in iat rrie d a t e ity Inc om e s m me ass oc es ca qu	32 .8	33 .4	42 .6	45 .2	38 .9	40 .4	41 .6
t in ivid im ila r in Ne ter est d d a nd en s co me ,	59 0.3	57 5.1	57 8.6	57 2.8	55 3.8	54 5.6	57 6.1
t fe iss ion in Ne nd e a co mm co me	45 1.4	45 1.0	47 6.5	47 2.1	45 8.9	50 3.6	51 5.8
Ot he et tin inc r n op era g om e	22 5.1	140 .5	34 .6	36 .4	41 .0	25 .6	42 .2
Ne t fi ial sul t na nc re	46 .8	80 .2	29 .3	41 .9	13. 0	63 .3	36 .9
Oth ting inc er op era om e	72 3.2	67 1.7	54 0.4	0.4 55	2.9 51	59 2.5	59 4.8
To tal in co me	13 13 .6	124 6.8	11 19 .0	112 3.2	10 66 .8	113 8.1	11 70 .9
Pe el rso nn ex pe nse s	-43 1.5	-43 7.1	-44 2.1	-42 0.8	-45 0.6	-45 6.7	-45 6.7
inis tiv Ot he dm tra r a e e xp en ses	-19 6.2	-20 3.1	-21 1.5	-20 4.7	-23 6.3	-23 3.1	-19 8.3
Am ort iza tio nd de iat ion n a pre c	-46 .5	-46 .1	-45 .1	-91 .7	-59 .0	-53 .3	-49 .7
ting Op sts era co	-67 4.2	-68 6.3	-69 8.6	-71 7.2	-74 5.9	-74 3.1	-70 4.7
fit ( los ) fro tio Pro s m op era ns	63 9.4	56 0.5	42 0.4	40 6.0	32 0.8	39 5.0	46 6.2
Ne t a d jus tm ts o n lo s to sto en an cu me rs	-28 7.7	-36 0.2	-32 6.2	-73 5.8	-38 2.0	-40 3.8	-33 6.6
Ne t a d jus tm ts o the ts en n o r a sse	-1. 3	-1. 6	2.2	-12 .7	-48 .3	-70 .8	-8. 4
is ion for ris ks d c ha Ne t p rov s an rge s	.9 -71	-20 .7	-25 .0	-9. 2	4.6	-9. 6	0.5
Pro fit ( los ) o n t he d isp l o f e ity d o the r in stm ts s osa qu an ve en	-10 .3	-1. 1	179 .7	12. 2	0.2	-2. 8	17. 1
( ) for fro ntin ing tio Inc los be e t om e s ax m co u op era ns	26 8.2	17 6.9	25 1.1	-33 9.6	-10 4.7	-92 .1	138 .9
in fro nti ing tio Tax on co me m co nu op era ns	-69 .9	-51 .4	-10 .7	117 .9	47 .0	14. 4	-30 .6
Sys tem ic ch fte r ta arg es a x	-32 .1	-18 .4	-49 .0	-6. 2	-26 .1	0.0	-45 .0
Inc ( los ) a fte r ta x f d isc tin d o rat ion om e s rom on ue pe s	0.9	0.0	0.0	70 0.0	16. 5	25 .8	20 .0
Inc ( los ) a ttr ibu ta ble to ino rity in ter est om e s m s	0.3	2.2	1.4	0.9	1.4	4.3	3.1
Ne t in ( los ) for the rio d e lud ing PP A, Ba dw ill & co me s pe xc	16 7.3	10 9.3	192 .8	47 2.9	-65 .8	-47 .7	86
irm f g ill a ien ion ip Im t o dw nd cl t re lat sh pa en oo							.4
rch ice Al loc at ion ( ) a fte r ta Pu Pr PPA ase x	4.7	19. 9	30 .6	32 .2	24 .3	26 .7	28 .8
t in ing ill & irm f g ill a Ne clu d Ba dw Im t o dw nd co me ex pa en oo
cl ien lat ion sh ip t re	172 .0	12 9.2	22 3.3	50 5.1	-41 .5	-21 .0	115 .2

ANNEXES9M 2018 RECLASSIFIED P&L – IFRS 9 AND PPA IMPACTS

	A	B	C	( B+ C)	A- ( B+ C)	D	A- ( B+ C+ D)
	9M 20 18	o/ w	IFR S 9		9M 20 18	o/ w	9M 20 18
i f ie in Re la d ta te t c ss co m e s m en ( in i io ) l l eu ro m n	Sta ted	PP A B ad loa ns	Re cla ssi fic ati on t im ct ne pa		-IF RS 9 pre	PP A	-FR S9 d w ith t pre an ou A l ine by lin PP e
Ne t in te t in res co me	1,7 37 .9	98 .4	62 .5	160 .8	1,5 77 .0	24 .5	1,5 52 .5
Inc e ( los s) fro inv tm ts i cia tes rrie d a t om m es en n a sso ca uit eq y	108 .8				108 .8	0.0	108 .8
Ne t in ter est div ide nd d s im ila r in an co me ,	1, 84 6.7	98 .4	62 .5	16 0.8	1, 68 5.8	24 .5	1, 66 1.3
Ne t fe nd iss ion in e a co mm co me	1, 37 8.9				37 8.9 1,	0.0	37 8.9 1,
Ot he et tin inc r n op era g om e	36 8.7	0.0			36 8.7	-3 1.5	40 0.2
t fi ial Ne sul t na nc re	15 6.3				15 6.3	0.0	15 6.3
Ot he rat ing in r o pe co me	90 3.9 1,	0.0	0.0	0.0	90 3.9 1,	-31 .5	93 5.4 1,
To tal in co me	3, 75 0.5	98 .4	62 .5	16 0.8	3, 58 9.7	-7. 0	3, 59 6.7
Pe el rso nn ex pe nse s	-1, 31 0.6				31 0.6 -1,	0.0	31 0.6 -1,
Ot he dm inis tra tiv r a e e xp en ses	-61 0.8				-61 0.8	0.0	-61 0.8
iza tio cia tio Am ort nd de n a pre n	-14 6.4				-14 6.4	-8. 7	-13 7.7
Op tin ost era g c s	-2, 06 7.8	0.0	0.0	0.0	-2, 06 7.8	-8. 7	-2, 05 9.1
fit ( los s) fro tio Pro m op era ns	68 2.7 1,	98 .4	62 .5	16 0.8	52 1.9 1,	-15 .7	53 1, 7.5
Ne t a dju stm ts lo s t ust en on an o c om ers	-95 3.9	-98 .4	-62 .5	-16 0.8	-79 3.0	98 .4	-89 1.4
t a dju stm ts ot he ts Ne en on r a sse	-0. 7				-0. 7	0.0	-0. 7
isio for ris Ne t p ks d c ha rov ns an rge s	-11 7.5				-11 7.5	0.0	-11 7.5
Pro fit ( los s) o n t he di l o f e ity d o the r in stm ts sp osa qu an ve en	168 .2				168 .2	0.0	168 .2
e ( los s) be for fro nti ing tio Inc e t om ax m co nu op era ns	8.9 77	0.0	0.0	0.0	8.9 77	82 .7	69 6.2
in fro nti ing tio Tax on co me m co nu op era ns	9.6 -15	0.0			-15 9.6	-27 .6	-13 2.0
Sy ste mi ha fte r ta c c rge s a x	-99 .6				-99 .6	0.0	-99 .6
Inc e ( los s) a fte r ta x f di tin d o rat ion om rom sc on ue pe s	0.9				0.9	0.0	0.9
e ( s) a ibu ino rity in Inc los ttr ta ble to te ts om m res	3.8				3.8	0.0	3.8
Ne t in ( los s) for th eri od clu din Ba dw ill & co me e p ex g Im irm t o f g dw ill a nd cl ien t re lat ion shi pa en oo p	52 4.5	0.0	0.0	0.0	52 4.5	55 .2	46 9.4

51Annexes

524.5 post PPA

ANNEXESQ3 2018 RECLASSIFIED P&L – IFRS 9 AND PPA IMPACTS

	A	B	C	( C) B+	A- ( B+ C)	D	A- ( B+ C+ D)
	Q3 20 18	o/ w	IFR S 9		Q3 20 18	o/ w	Q3 20 18
i f ie in Re la d ta te t c ss co m e s m en ( in i l l io ) eu ro m n	Sta ted	PP A B ad loa ns	fic Re cla ssi ati on t im ct ne pa		Pre -IF RS9	PP A	ith -IF RS9 d w t pre an ou PP A l ine by lin e
Ne t in te t in res co me	55 7.8	20 .3	11 .6	31 .9	52 5.8	0.2	52 5.6
e ( los s) fro inv in iat rrie d a ity Inc est nts t e om m me ass oc es ca qu	32 .8				32 .8	0.0	32 .8
Ne t in ter est div ide nd d s im ila r in an co me ,	59 0.6	20 .3	11 .6	31 .9	55 8.6	0.2	55 8.4
t fe issi in Ne nd e a co mm on co me	45 1.4				45 1.4	0.0	45 1.4
Ot he et tin inc r n op era g om e	21 4.5				21 4.5	-10 .6	22 5.1
Ne t fi ial sul t na nc re	46 .8				46 .8	0.0	46 .8
ing in Ot he rat r o pe co me	71 2.7	0.0	0.0	0.0	71 2.7	-10 .6	72 3.2
tal in To co me	13 03 .2	20 .3	.6 11	31 .9	12 .3 71	-10 .4	12 81 .7
Pe el rso nn ex pe nse s	-43 1.5				-43 1.5	0.0	-43 1.5
Ot he dm inis tra tiv r a e e xp en ses	-19 6.2				-19 6.2	0.0	-19 6.2
ort iza tio nd de cia tio Am n a pre n	-49 .5				-49 .5	-2. 9	-46 .5
Op tin ost era g c s	-67 7.1	0.0	0.0	0.0	-67 7.1	-2. 9	-67 4.2
fit ( s) fro tio Pro los m op era ns	62 6.1	20 .3	11 .6	31 .9	59 4.2	-13 .3	60 7.5
t a dju stm ts lo s t ust Ne en on an o c om ers	-26 7.4	-20 .3	.6 -11	-31 .9	-23 5.5	20 .3	-25 5.8
t a dju stm ts ot he ts Ne en on r a sse	3 -1.				-1. 3	0.0	-1. 3
isio for ris Ne t p ks d c ha rov ns an rge s	-71 .9				-71 .9	0.0	-71 .9
fit ( s) o di f e ity r in Pro los n t he l o d o the stm ts sp osa qu an ve en	-10 .3				-10 .3	0.0	-10 .3
e ( los s) be for e t fro ntin uin rat ion Inc om ax m co g o pe s	27 5.2	0.0	0.0	0.0	27 5.2	7.0	26 8.2
Tax in fro nti ing tio on co me m co nu op era ns	-72 .3				-72 .3	-2. 4	-69 .9
Sy ste mi ha fte r ta c c rge s a x	-32 .1				-32 .1	0.0	-32 .1
e ( los s) a fte x f di tin d o ion Inc r ta rat om rom sc on ue pe s	0.9				0.9	0.0	0.9
e ( s) a ibu ino rity in Inc los ttr ta ble to te ts om m res	0.3				0.3	0.0	0.3
t in ( s) for eri din ill & irm Ne los th od clu Ba dw Im t co me e p ex g pa en of od wi ll a nd cl ien t re lat ion shi go p	1.9 17	0.0	0.0	0.0	1.9 17	4.7	16 7.3

52Annexes

179.6 post PPA

ANNEXESIFRS9 RECLASSIFICATION OF ITEMS IN 9M 2018

ANNEXES9M 2018 ADJ. RECLASSIFIED P&L & ONE-OFF ITEMS

Adjusted figures indicated in this slide simply exclude one-off items from stated figures, while they include the IFRS9 and PPA effects line-by-line

Re cla ssi fie d i tat t nc om e s em en	9M 20 18 9M 20 18			No ing ite d n-r ec urr ms an
( in mi llio n) eu ro	Sta ted	Ad jus ted	On off e-	tra ord ina tem ic ch ex ry sys arg es
t in te t in Ne res co me	73 7.9 1,	73 7.9 1,	0.0
e ( los s) fro inv in cia ied uit Inc tm ts te at om m es en as so s c arr eq y	10 8.8	10 8.8	0.0
Ne t in ter t, div ide nd d s im ila r in es an co me	1, 84 6.7	1, 84 6.7	0.0
t fe nd iss ion in Ne e a co mm co me	37 8.9 1,	37 8.9 1,	0.0
Ot he et tin inc r n op era g om e	36 8.7	55 .1	31 3.6	Tra nsf of ins to An im a ( in Q2 20 18) d er ura nc e r es erv es an do al of Cu sto dia n B k ( in Q3 20 18) sp os an
t fi ial sul t Ne na nc re	6.3 15	6.3 15	0.0
ing in Ot he rat r o pe co me	1, 90 3.9	1, 59 0.2	31 3.6
tal in To co me	3, 0.5 75	3, 43 6.9	31 3.6
Pe el rso nn ex pe nse s	-1, 31 0.6	-1, 31 0.6	0.0
Ot he dm ini str at ive r a ex pe nse s	-61 0.8	-60 0.3	-10 .4	Int rat ion sts eg co
Am ort iza tio nd de cia tio n a pre n	-14 6.4	-14 4.9	-1. 5	Ad jus tm ts So ftw rite do s ( in Q2 20 18) en on are wn w
Op tin ts era g c os	-2, 06 7.8	-2, 05 5.9	-1 1.9
Pro fit ( los s) fro tio m op era ns	1, 68 2.7	1, 38 1.0	30 1.7
t a dju stm ts lo s t ust Ne en on an o c om ers	-95 3.9	-95 3.9	0.0
Ne t a dju stm ts ot he ts en on r a sse	-0. 7	-0. 7	0.0
Ne t p isio for ris ks d c ha rov ns an rge s	-11 7.5	-11 7.5	0.0
Pro fit ( los s) o n t he di al of uit nd ot he r in stm ts sp os eq y a ve en	16 8.2	0.0	168 .2	Dis f st e i vip Vit a ( in 18) l o ak n A d P ola Q1 20 po sa op an op re , SA RI r efu nd d o the an rs
e ( los s) be for e t fro nti ing tio Inc om ax m co nu op era ns	8.9 77	30 8.9	47 0.0
n i e f nti ing tio Ta x o nc om rom co nu op era ns	-15 9.6	-76 .8	-82 .8	Im ct lin ke d t o f isc al eff ts ing ite pa ec on no n-r ec urr m s
Sy mi ha fte ste r ta c c rge s a x	-99 .6	-81 .2	-18 .4	Co ntr ibu tio n t o I tal ian lut ion fu nd re so
e ( los s) a fte r ta x f di tin d o rat ion Inc om rom sc on ue pe s	0.9	0.0	0.9
Inc e ( los s) a ttr ibu ta ble to ino rity in te ts om m res	3.8	3.7	0.1
Ne t in ( los s) for th eri od clu din Ba dw ill & Im irm t co me e p ex g pa en of od wi ll a nd cl ien t re lat ion shi go p	52 4.5	15 4.6	36 9.9

ANNEXESQ3 2018 ADJ. RECLASSIFIED P&L & ONE-OFF ITEMS

Adjusted figures indicated in this slide simply exclude one-off items from stated figures, while they include the IFRS9 and PPA effects line-by-line

Q 3 2 01 8 Q 3 2 01 8 cla ssi fie d i tat t			No ite d
Re nc om e s em en ( in mi llio n) eu ro	Sta ted	jus Ad	of f On e-	ing n-r ec urr ms an tra ord ina tem ic ch ex ry sys arg es
		ted
t in t in Ne te res co me	55 7.8	55 7.8	0.0
Inc e ( los s) fro inv tm ts in cia te ied at uit om m es en as so s c arr eq y	32 .8	32 .8	0.0
t in div ide nd d s im ila r in Ne ter t, es an co me	59 0.6	59 0.6	0.0
t fe iss ion in Ne nd e a co mm co me	45 1.4	45 1.4	0.0
tin inc Ot he et r n op era g om e	21 4.5	14 .5	20 0.0	Dis l o f C ust od ian Ba nk po sa
Ne t fi ial sul t na nc re	46 .8	46 .8	0.0
ing in Ot he rat r o pe co me	71 2.7	51 2.7	20 0.0
tal in To co me	30 3.2 1,	10 3.2 1,	20 0.0
Pe el rso nn ex pe nse s	-43 1.5	-43 1.5	0.0
Ot he dm ini str at ive r a ex pe nse s	-19 6.2	-19 0.9	-5. 3	Int tio ts eg ra n c os
Am ort iza tio nd de cia tio n a pre n	-49 .5	-49 .7	0.2	Ad jus So ftw rite do tm ts en on are w wn s
Op tin ts era g c os	-67 7.1	-67 2.1	-5. 1
fit ( los s) fro tio Pro m op era ns	62 6.1	43 1.2	194 .9
t a dju stm ts lo s t ust Ne en on an o c om ers	-26 7.4	-26 7.4	0.0
t a dju stm ts ot he ts Ne en on r a sse	3 -1.	3 -1.	0.0
Ne t p isio for ris ks d c ha rov ns an rge s	-71 .9	-71 .9	0.0
Pro fit ( los s) o n t he di al of uit nd ot he r in stm ts sp os eq y a ve en	-10 .3	0.0	-10 .3	SA RI r efu nd d o the an rs
Inc e ( los s) be for e t fro nti ing tio om ax m co nu op era ns	27 5.2	90 .6	184 .6
n i e f nti ing tio Ta x o nc om rom co nu op era ns	-72 .3	-18 .4	-53 .9	link fis ffe ing ite Im ct ed to l e cts pa ca on no n-r ec urr m s
Sy ste mi ha fte r ta c c rge s a x	-32 .1	-32 .1	0.0
Inc e ( los s) a fte r ta x f di tin d o rat ion om rom sc on ue pe s	0.9	0.0	0.9
Inc e ( los s) a ttr ibu ta ble to ino rity in te ts om m res	0.3	0.3	0.0
Ne t in ( los s) for th eri od clu din Ba dw ill & Im irm t co me e p ex g pa en	17 1.9	40 .3	13
of od wi ll a nd cl ien t re lat ion shi go p			1.6

ANNEXESHIGH-QUALITY ELIGIBLE ASSETS

Relevant amount of unencumbered assets, almost entirely composed of Government bonds (93% of the total)

Notes:

Management accounting data, net of haircuts. Inclusive of assets received as collateral. Eligible assets as at 30/09/2018 are net of €xxbn of Government securities lending on the market unsecured and callable within 35days

ANNEXESCUSTOMER LOAN ANALYSIS

Retail and SME-oriented banking group, with franchise concentrated in Northern Italy

Breakdown of net loans by customer segment at 30/09/2018

Breakdown of net loans by geographical area at 30/09/2018

• 27.0% of customer loans in relation to the Household segment.
• Corporates¹, excluding Large Corporates, account for 61.3% of the loan book and the average loan ticket is small, coming in at about €283K.
• 70% of the portfolio is concentrated in the wealthiest areas of the Country.

Note:

This analysis of Total Net Customer Loans excludes the Exodus Senior Notes.

1. Non-financial companies (mid-corporate and small business) and financial companies. Includes also €6.1bn of Repos, mainly with Cassa di Compensazione e Garanzia.

ANNEXESFOCUS ON PERFORMING CUSTOMER LOANS

Net Performing Loan breakdown by Product as at 30/09/2018

Net Performing Loan breakdown by Product as at 30/06/2018

Core performing customer loans at €88.7mld, +1.7% in Q3 2018.

ANNEXESCREDIT QUALITY DETAILS

€ ^m

		3 0 / 0 9 / 2 0 1 8	( ) I F R S 9
	Gr os s e xp os ure	d j tm ts A us en	Co ve ra g e	t e Ne xp os ure
Ba d Lo an s	1 0, 0 7 9	6, 5 5 3	% 6 5. 0	3, 5 2 6
l i ke ly Un to p ay	8, 2 9 3	2, 9 0 7	3 3. 6 %	0 4 5, 5
Pa t Du s e	1 1 3	2 0	1 7. 7 %	9 3
for ing No Lo n- p er m an s	8, 4 8 1 5	9, 3 6 3	0. 6 % 5	9, 2 3 1
Pe for ing Lo r m an s	9 8, 0 7 1	3 7 9	0. 4 %	9 7, 6 9 2
To ta l Cu tom Lo s er an s	1 1 6, 5 5 7	9, 7 4 2	% 8. 4	1 0 6, 8 1 5
		3 0 / 0 6 / 2 0 1 8	( I F R S 9 )
	Gr os s e xp os ure	j A d tm ts us en	Co ve ra g e	Ne t e xp os ure
Ba d Lo an s	1 0, 6 9 1	7, 0 7 8	6 6. 2 %	3, 6 1 3
Un l i ke ly to p ay	8, 6 5 9	2, 8 5 1	3 2. 9 %	5, 8 0 8
Pa t Du s e	8 9	1 7	% 1 9. 0	7 2
No for ing Lo n- p er m an s	1 9, 4 3 8	9, 9 4 5	5 1. 2 %	9, 4 9 3
for ing Pe Lo r m an s	9 7, 6 3 5	3 9 7	% 0. 4	9 2 3 8 7,
To ta l Cu tom Lo s er an s	0 3 1 1 7, 7	0, 3 4 3 1	8. 8 %	1 0 6, 7 3 1
	( ) 0 1 / 0 1 / 2 0 1 8 I F R S 9 ta te d res
	Gr os s e xp os ure	A d j tm ts us en	Co ve ra g e	Ne t e xp os ure
d Ba Lo an s	9 4 1 5, 7	0, 2 1 5 5	6 6. 8 %	2 4 2 5,
Un l i ke ly to p ay	9, 2 2 3	2, 9 0 5	3 2. 0 %	6, 2 7 3
Pa t Du s e	9 5	1 5	1 5. 7 %	8 0
No for ing Lo n- p er m an s	2 2 5, 1 1	3, 1 5 1 7	3. 8 % 5	1 1, 5 9 5
Pe for ing Lo r m an s	9 4, 8 8 9	3 7 6	0. 4 %	9 4, 5 1 3
To ta l Cu tom Lo s er an s	2 0, 0 0 2 1	3, 8 9 3 1	6 % 1 1.	1 0 6, 1 0 8
	3 2 2 0 1 1 1	S 3 9 C 7 I A E X L U D I N	G C S O S C U T M E R D E B T E	S U R I T I E
	/ / Gr os s e xp os ure	( ) - A d j tm ts us en	Co ve ra g	Ne t e xp os ure
d Ba Lo an s	9 4 1 5, 7	9, 3 0 6	e 8. 9 % 5	6, 4 8 8
Un l i ke ly to p ay	9, 5 4 6	3, 0 8 7	3 2. 3 %	6, 4 5 9
Pa t Du s e	9 5	1 5	1 5. 7 %	8 0
No for ing Lo n- p er m an s	2 5, 4 3 5	1 2, 4 0 8	4 8. 8 %	1 3, 0 2 7
for ing Pe Lo r m an s	9 5, 0 1 8	3 0 3	0. 3 %	9 4, 7 1 6
l Cu To ta tom Lo s er an s	1 2 0, 4 5 3	1 2, 7 1 0	% 1 0. 6	0 4 3 1 7, 7

Notes:

2018 data refer to Loans and advances to customers measured at Amortized Cost.Starting from 30/06/2018, Performing loans include also the Exodus Senior Notes.2017 data restated for the exclusion of Customer Debt Securities.

59Annexes

ANNEXESCAPITAL POSITION IN DETAIL (STATED)

P H A S E D I N C A P I T A L ( € / d % ) O S O P I T I N m a n	3 0 / 0 9 / 2 0 1 8	3 0 / 0 6 / 2 0 1 8	3 1 / 0 3 / 2 0 1 8	( € / b ) R W A B R E A K D O W N n	3 0 / 0 9 / 2 0 8 1	3 0 / 0 6 / 2 0 8 1	3 / 0 3 / 2 0 8 1 1
C C i t l E T 1 a p a T 1 C i t l a p a	8, 6 2 5 8, 7 8 7	8, 0 7 1 8, 8 3 5	8, 9 1 7 9, 2 4 5	C C O R E D I T & U N T E R P A R T Y S R I K	0 5 7,	8, 5 7	8, 4 5
i T t l C t l o a a p a	1 0, 4 4 6	1 0, 6 1 1	1 1, 1 4 1	f w i h h S t d d o c : a n a r	2 8, 4	2 8, 0	2 9, 0
R W A	6 0 8 5, 5	6 2 8 8 7,	6 6, 3 6 1	M A R K E T R I S K	2, 4	2, 6	1, 9
C E T 1 R t i	1 3. 2 1 %	1 2. 9 3 %	1 3. 4 8 %	O O S P E R A T I N A L R I K	9 5, 9 5,	8 5,	6 5,
a o				C V A	0, 2	0, 2	0, 2 0, 2
i T 1 R t a o	% 1 3. 4 1	% 1 3. 1 3	% 1 3. 9 8	T O T A L	6 5, 5	6 7, 3	6 6, 1
t l C i t l t i T R o a a p a a o	9 % 1 5. 5	% 1 5. 7 7	6. 8 % 1 5

F U L L Y P H A S E D C A P I T A L ( € / d % ) O S O P I T I N m a n	3 0 / 0 9 / 2 0 8 1	3 0 / 0 6 / 2 0 8 1	3 / 0 3 / 2 0 8 1 1	( ) € / b R W A B R E A K D O W N n	3 0 / 0 9 / 2 0 1 8	3 0 / 0 6 / 2 0 1 8	3 1 / 0 3 / 2 0 1 8
C C i l E T 1 t a p a	3 0 4 7,	2 3 7, 1	4 2 7, 5	C C O R E D I T & U N T E R P A R T Y	6, 5 7	8, 0 5	8, 0 5
C i t l T 1 a p a	3 0 9 7,	2 7, 1 7	4 6 7, 5	f w i h h S t d d o c : a n a r	2 8, 4	2 8, 0	2 9, 0
i T t l C t l o a a p a	8, 9 6 3	8, 9 6 5	9, 3 9 3	M A R K E T R I S K	2, 4	2, 6	1, 9
R W A	6 2 8 5, 1	6 6, 2 5 5	6 6 6 2 5,	O P E R A T I O N A L R I S K	5, 9	5, 8	5, 6
				C V A	0, 2	0, 2	0, 2
C t i E T 1 R a o	2 0 % 1 1.	0. 8 4 % 1	4 9 % 1 1.	T O T A L	6 5, 2	6 6, 6	6 5, 7
i T 1 R t a o	% 1 1. 2 1	% 1 0. 8 4	% 1 1. 4 9
t l C i t l t i T R o a a p a a o	3. 4 % 1 7	3. 4 % 1 7	4. 3 % 1 1

ANNEXESCET1 RATIO: BUFFER ANALYSIS

	3 0 / 0 9 / 2 0 8 1	3 0 / 0 6 / 2 0 8 1	3 / 2 / 2 0 1 1 1 7
	P h d- i a s e n	P h d- i a s e n	P h d- i a s e n
i i i t M n m u m r e q u r e m e n	4. 0 0 % 5	4. 0 0 % 5	4. 0 0 % 5
C i l C i f f t t B a p a o n s e r v a o n u e r	8 % 1. 7 5	8 % 1. 7 5	2 0 % 1. 5
i l l 2 i t P a r r e q u r e m e n	2. 0 0 % 5	2. 0 0 % 5	2. 4 0 0 %
O -S f f I I B u e r	0. 0 0 0 %	0. 0 0 0 %	n. a.
2 0 1 8 S R E P	8. 8 7 5 %	8. 8 7 5 %	8. 1 5 0 %
S d C i t t E T 1 R t a e a o	3. 2 % 1 1	2. 9 3 % 1	2. 3 6 % 1
( i b ) B U F F E R n p s	4 3 4 +	4 0 6 +	4 2 1 +

• The Group has strengthened its capital position in Q3, as reflected also in the increasing buffer vs. the ²⁰¹⁸ SREP requirements: +434 bps at phase-in level
• Optimisation initiatives are set to feed into ^a further strengthening of the capital position in relation to any additional derisking while, starting from FY 2019, the capital adequacy is expected to benefit also from ^a stronger degree of internal capital generation

CONTACTS FOR INVESTORS AND FINANCIAL ANALYSTS

I N V E S T O R R E L A T I O N S

b l i R t P o e r o e r o n a g o	3 9- 0 2- 0 0. 2 4 7 7 5 7 +
T L o m u c a s s e n	3 9- 0 4 5- 8 6 7. 5 5 3 7 +
i i A R r n e s c a s s	3 9- 0 2- 0 0. 2 0 0 8 7 7 +
S i l i i L v a e o n	3 9- 0 4 8 6 6 3 5- 7. 5 1 +
i A d A t n r e a g o s	3 9- 0 2- 7 7 0 0. 7 8 4 8 +

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