Banco BPM SpA

Investor Presentation • Feb 7, 2018

FY 2017 Group Results Presentation

7 February 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

• • In this presentation, with ^a view to provide adequate information on the Group's balance sheet, financial and income statement position, reclassified accounting tables and comparative data have been prepared, on an aggregate basis with reference to ³¹ December 2016. Such data have been obtained through the aggregation of the data referring to the former Banco Popolare Group and to the former BPM Group as at 31/12/2016, with the inclusion of appropriate adjustments.
• •These comparative data calculated on an aggregate basis have not been subject to an external audit.

* * *

• • 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; in P&L statement the ²⁰¹⁷ contribution of Aletti Gestielle SGR and the gain realised from disposal are booked in line item "Income after tax from discontinued operation""
• • In this presentation, in order to ensure coherence with the historical reporting, all the P&L data are stated accounting data, with the exception of Aletti Gestielle SGR which contribution for ²⁰¹⁷ has remained line-by-line. In line item "Income after tax from discontinued operation" is indicated only the gain realised from disposal of the Company.
• • In the Annex, slides on the P&L account where Aletti Gestielle is reported on ^a line-by-line basis are also referred to as 'Previous Perimeter' (from ⁴⁵ to 50). At the same time, slides on the P&L account where Aletti Gestielle is classified according to IFRS ⁵ as ^a "discontinued operation" are also referred to as 'NewPerimeter'(from ⁵¹ to 56).

Agenda

1	i S E t x e c u v e u m m a r y	4
2	f i b i l i i h l i h P t t H t r o a y g g s	1 5
3	l S h t d i i d i t i h l i h t B L H a a n c e e e a n q g g s u y	2 5
4	i i i C d t Q l t d t N P L U r e a a n n u y	3 2
5	i C t l d t U a p a p a e	3 9
6	i C l o n c u s o n	4 2

Annexes

⁴⁴

EXECUTIVE SUMMARY: «BANCO BPM DELIVERS»

A 2017 BEYOND THE TARGETS

• FAST TRACK MERGER PROGRAMME
• STRONG OPERATING PERFORMANCE
• DERISKING AHEAD OF PLAN

READY FORTHE NEXT CHALLENGES…

RAISING THE BAR TOWARDS A MORE AGGRESSIVE NPL REDUCTION(NPL STOCK DOWN ~57% BY 2020)

… ENABLED BY A SOLID CAPITAL POSITION

STRONG CAPITAL POSITION: CET1 FL PROFORMA AT 12.02%AFTER THE NEGATIVE IMPACT FROM IFRS9 FTA (-175BPS) WHICH ALLOWS HIGHER DERISKING THROUGH A PHASE-IN PROCESS

1. Executive Summary5

A SUCCESSFUL 2017: BANCO BPM DELIVERS

Fast Track merger programme (1/2)

Strategic Plan Focus Status update

Capital strengthening: +>250bps

• Re-definition of strategic partnerships
• Internal model update
• Capital management actions

+103bps created through new partnership in AM and Bancassurance and +20bps from the transfer of insurance reserve management to Anima

Extension and review of AIRB model (+80bps CET1 FL)1

Further capital actions finalized: custodian bank andother optimisation actions (aggregate +54 bps CET1 FL)

Derisking:

• Disposal of bad loans
• NPL workout

• Reduction of UTP stock

• Original NPL disposal target of the Strategic Plan to be achieved already by H1 2018 (1.5 years in advance),paving the way for a more aggressive NPL reduction

• Stronger-than-expected NPL workoutUTP Stock at YE 2017 already well below the 2019 target

Note:

1. Estimated impact based on the Draft Decision received by the ECB at the beginning of February following the release of ^a final report and taking into account the evolution of CET ¹ capital, provisions and RWA since the reference date of the ECB Draft Letter (June 2017). The validation is expected to become effective with the report as at ³¹ March 2018.

A SUCCESSFUL 2017: BANCO BPM DELIVERSFast Track merger programme (2/2)

Integration, Transformation and Business Development: Simplified Group Structure Consolidation of dedicated businesses Rationalisation of Product Factories Strategic Plan Focus Status update IT integration completed in record time by July 2017Group reporting governed on a single IT platformBanca Akros specialised in CIB business Banca Aletti specialised in Private banking business AuM: Aletti Gestielle contributed to Anima creating a strong national playerBancassurance: Partnership with Cattolica

Cost reduction and cost effectiveness:

• Cost of funding reduction
• Headcount reduction (1,800 in original Plan)

• Cost synergies (€320m in original Plan)

• Cost of Funding: 2018E projections 1 year ahead of target

• Headcount reduction: ahead of plan, with ~1,500 exits achieved by 2017 and an additional ~ 700 planned in2018, for a total of almost 2,200

Cost synergy projections raised to c. €400m

NEW COMMERCIAL NETWORK MODEL FROM JANUARY 2018

-NEW NETWORK STRUCTURE: increase in commercial effectiveness and cost efficiency -NEW COMMERCIAL MODEL: development of processes and supporting IT procedures

1. Executive Summary

A SUCCESSFUL 2017: BANCO BPM DELIVERS

Strong operating and business performance

ROBUST OPERATING PERFORMANCE, NOTWITHSTANDING THE SIGNIFICANT EFFORTS DEVOTED TO IT MIGRATION AND GROUP RATIONALISATION

		/ Y Y	Q / Q
	N E T I N T E R E S T I N C O M E	% 0. 3 +	% 0 7 +
P R O F I T F R O M O P E R A T I O N S	1 C O S R E R E V E N U E	4 9 % +	3 2 % +
A T A G L A N C E	O P E R A T I N G C O S T S	% 1 8. 8 -	% 7. 2 -
	O O O O S P R F I T F R M P E R A T I N	6 0. 9 % +	3 9. 6 % +
	C / A A N D S I G H T D E P O S I T S	% 9. 2 +	% 3 6 +
S O L I D G O S B A N K I N V L U M E	2 S S S G A E T U N D E R M A N A E M E N T	% 7. 5 +	0 % 1 +
	P E R F O R M I N G C U S T O M E R L O A N S	% 0. 8 +	% 1. 3 +

Notes:

1. NII ⁺ Net Fees and Commissions.

2. Includes the AUM of non-captive network of Aletti Gestielle, see slide ²⁹ for details.

A SUCCESSFUL 2017: BANCO BPM DELIVERSStrong operating performance trend in FY 2017

DERISKING: OUTPERFORMING KEY NPL TARGETS IN 2017

Top level performance in NPL reduction in the Italian banking industry

NPL TREND: IMPROVED PERFORMANCE VS OPERATIONAL PLAN

HIGH PORTION OF SECURED BAD LOANS VS ITALIAN MARKET NPL COVERAGE

KEY DRIVERS: WORKOUT AND INFLOWS BEATING EXPECTATIONS, DISPOSALS ABOVE TARGET

( in ) No l lue m a va s	F Y 2 0 1 6	F Y 2 0 1 7	C hg / y y
isp D ls os a	~( ) 1 bn	~( ) 3. 5 bn	% 2 5 0 +
Re ies Ca l la t io Cu co ve r nc e ns re , , d t he ha an o r c ng es	~( ) 2. 4 bn	~( ) 3. 1 bn	% 3 0 +
f G In low ro ss s	~3 0 bn	~1 7 bn	% -4 5
T O T A L	~( 0. 4 bn )	~( 5. 0 bn )

5 0. 1 %	3 / 2 / 1 1 1 7	C hg ( In b ) ps	O O P R F R M A Po t I F R S 9 s
6 0. % 5		3 1 2M	F T A ta 3 s g e
ta l To N P Ls	4 8. 8 %	9 4 +	4 % 5 ~
d Ba Lo an s	8. 9 % 5	2 -1 1	6 % 7 ~
U T P Lo an s	3 2. 4 %	5 1 8 +

Nominal Coverage

Note:

• 1. Data restated excluding from the Nominal amount only the write-offs which remained off-balance sheet at the beginning of 2017.
• 1. The December 2016 Nominal coverage includes all the write-offs that had been off-balance sheet at that time, in line with the values used in the Strategic Plan. For further details, please see slide 61.
• 1. The twelve-month changes are measured against the nominal values in December 2016 (i.e. inclusive of all write-offs).
• 1. Report PWC "The Italian NPL market Ready for the breakthrough", December 2017.

DERISKING: STRONG FURTHER NPL REDUCTION

€17bn reduction in the 2016/2020 period, ~€10bn better than the Strategic Plan

Note:

1. Data restated excluding from the Nominal amount only the write-offs which remained off-balance sheet at the beginning of 2017.

CAPITAL OVERVIEW: A SOUND LEVEL FACILITATING A HEALTHY PATH OF ADDITIONAL DE-RISKING

1. Estimated impact based on the Draft Decision received by the ECB at the beginning of February following the release of ^a final report and taking into account the evolution of CET ¹ capital, provisions and RWA since the reference date of the ECB Draft Letter (June 2017). The validation is expected to become effective with the report as at ³¹ March 2018.

2. Executive Summary¹⁴

Agenda

1	i S E t x e c u v e u m m a r y	4
2	f i t b i l i t i h l i h t P H r o a g g s y	1 5
3	i i i i i l S h t d d t h l h t B L H a a n c e e e a n q g g s u y	2 5
4	i i i C d t Q l t d t N P L U r e a a n n u y	3 2
5	i C t l U d t a p a p a e	3 9
6	C l i o n c u s o n	4 2

Annexes

⁴⁴

OPERATING RESULTS: ROBUST PERFORMANCE IN COMMERCIALBANKING BUSINESS

Notes:1. Net of non-recurring items. 2. NII ⁺ Net Fees and Commissions. 2. Profitability Highlights

+€597m

NET INTEREST INCOME

• Net Interest Income slightly up y/y mainly due to the following effects:
• decrease in cost of funding;
• lower contribution of financial income from the AFS portfolio (-€91m vs 2016)
• Net interest income was up 0.7% q/q. A growth was registered for the fourth consecutive quarter, mainly driven by lower cost of funding.

Notes:

• 1. Includes approx. €32m TLTRO2 accrued in 2016 and booked in Q1 17 and a one-off interest expense of €4m linked to a tax litigation closed in Q2 2017.
• 1. 2017 figures include PPA (€31m in FY 2017, with €1m in Q4 and €10m in Q3).

NET INTEREST SPREAD

• Customer spread (1.53%) stable q/q, thanks to the improvement in the liability spread
• The liability spread improved by 12bps in 2017 and by 4bps q/q

NET FEES AND COMMISSIONS

• In 2017, Net fees and commissions grew by 10.0% y/y, driven by increasing commissions from management, brokerage and advisory services (+40.2% y/y), mainly thanks to the growing asset management business
• In Q4 2017, commissions were up 6.1% q/q and 0.9% vs Q4 2016

NET FINANCIAL RESULT

• The Net Financial Result y/y reduction was mainly due to strong one-off gains registered in 2016 from the disposal of securities, mainly govies held in the AFS portfolio, related to the merger (€75m in 2017 vs. €316m in 2016: - €242m)
• The quarterly increase (+€29m) benefited from higher disposal of securities, mainly govies held in the AFS portfolio (+€23m y/y)

OPERATING COSTS

• Operating costs dropped significantly y/y (-18.8%) and, on a like-for-like basis (excluding one-offs), they fell by 3.6%
• In the quarterly comparison, Operating costs were down by 7.3% q/q, while when excluding nonrecurring items and the ordinary contribution to the DGS, they were down by 7.7%

Notes: 2017 includes approx. €13m PPA (~€3m per quarter).

PERSONNEL EXPENSES

• On a like-for-like basis, Personnel expenses were down 4.4% y/y, mainly driven by headcount reduction
• Personnel expenses down by 6.4% q/q, mainly thanks to the partial effect of exits linked to the Solidarity Fund
• Total headcount stood at 23,331 at 31 December 2017, down from 24,680 in December 2016 (-1,349)
• Additional 689 exits are planned in 2018 (linked to the Solidarity Fund)

OTHER ADMINISTRATIVE EXPENSES

Quarterly comparison

€ ^m

Other admin. Expenses Ordinary DGSIntegration Costs

O d i i h t r n a r s s e m c c a r g e s y y ( ) € m	2 0 1 7	2 0 1 6
S R F	6 2	9 5
D G S	4 5	3 5
( f f f i ) D T A t b t e e o r a x e n e	2 7	2 7
i i f T t l t b t t d o a c o n r u o n o u n s	1 3 4	1 2 1

In the quarterly comparison, Other administrative expenses down by 22.3%, and on a like-for-like basis (net of DGS and integration costs), they are down 12.3% thanks to strict cost control

LOAN LOSS PROVISIONS

Cost of credit

In Q4, LLPs reflect:

€ ^m

• a conservative change in estimates in the credit evaluation policy (e.g. for UTP time value, conservative ELBE applied to higher thresholds, etc.), leading to a one-off charge in the quarter
• the disposal of €1.8bn of unsecured bad loans (finalised in December)
• a further increase in UTP coverage (+144bps in Q4)
• Cost of credit (154bps in FY 2017) reflects the decision to maintain high coverage levels even after the significant NPL disposals in FY 2017: about 75% of €3.5bn of total bad loan disposals were highly covered unsecured positions

Agenda

1	i S E t x e c u v e u m m a r y	4
2	f i b i l i i h l i h P t t H t r o a y g g s	1 5
3	l S h d i i d i i h l i h B t L t H t a a n c e e e a n q g g s u y	2 5
4	i i i C d t Q l t d t N P L U r e a a n n u y	3 2
5	i C t l d t U a p a p a e	3 9
6	i C l o n c u s o n	4 2

Annexes

⁴⁴

CUSTOMER LOANS

Trend in customer loans driven by derisking process and leasing run-off

Net Customer Loans

• The trend in Net customer loans is significantly affected by the de-risking process: net NPLs -19.6% y/y; -6.8% q/q
• Good performance of Core performing customer loans (+1.6% y/y; +1.0% q/q), while non-core components (leasing in run-off and REPOs) register a strong decrease y/y
• €18.1bn of new mortgage and personal loans granted in 2017 (+7.6% y/y), of which €14.5bn to Corporates(+11.8% y/y) and €3.6bn to Households (-6.5% y/y)

N E W L E N D I N G ( € bn )	F Y 2 0 1 7	F Y 2 0 1 6
2 O S O S H U E H L D	3. 6	3. 8
3 C O R P O R A T E / S M Es	4. 1 5	3. 0 1
T O T A L	1 8. 1	1 6. 8

C H A N G E	% In 1 2 M	% In 3 M
Pe fo in lo r rm g an s	0. 8 %	1. 3 %
1 Co to lo re c us m er an s -	% 1. 6	% 1. 0
Le ing ( in f f ) as ru n o -	-1 3. 9 %	-3 2 %
Re p os -	-5 3 %	6. 7 %
N P Ls	-1 9. 6 %	-6 8 %
T O T A L	-2 1 %	0. 2 %

Performing Loan breakdown

Notes:

• 1. Include Mortgages loans, Current Accounts, Cards & Personal Loans and other technical forms.
• 1. Mortgages and personal loans.
• 1. SMEs, Large Corporates, Institutionals and Third Sector.

263. Balance Sheet and Liquidity Highlights

DIRECT FUNDING

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

CHANGE In % 12M In % 3MC/A & Sight deposits 9.2% 3.6%Time deposits -24.6% -8.4%Bonds -26.4% -9.6%CDs & Others -17.1% -6.4%Cap.-protected Certificates -13.2% -6.1%Direct Funding (excl. Repos)-2.5% -0.1%

• Direct funding trend (-2.5% y/y; stable q/q) driven by: -
• Positive dynamic of C/A and sight deposits (+9.2% y/y; +3.6% q/q), which now represent 72% of Direct funding (up from 64% at YE 2016)
• Decrease in more expensive components (bonds -26.4% y/y; -9.6% q/q)
• Bond reduction continues to have a positive effect on cost of funding and on AuM growth
• Successful issue of a €500m T2 bond in Sept. 2017 and of a €750m Covered Bond in Jan. 2018

Note:

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 (€4.2bn at December 2017, basically transactions with Cassa di Compensazione e Garanzia), classified in the Accounting Report under 'Due to customers'.

BOND MATURITIES

Positive for funding cost reduction

• In 2017, a total of about €7bn¹ of bonds matured, with a positive effect on the cost of funding
• Average spread of bonds maturing in 2018 and 2019: ~2.8%
• Maturities in the period 2018-2019 are set to be only partially replaced by new bond issues, with relatively cheaper funding costs (mainly covered bonds)
• Thanks to the Group's strong liquidity position, the upcoming maturities can be managed to further optimize the cost of funding, while at the same time developing assets under management and maintaining a robust funding structure as well as a balanced ALM profile

Maturities include calls.

Note:

1. Including also the two buy-backs completed in April and June.

2. Balance Sheet and Liquidity Highlights

INDIRECT FUNDING

Strong performance of AuM, driven by 'Funds and Sicav' sleeve

• Excellent growth in AuM (+€4.4bn y/y; +€61m q/q), bringing the share on total Indirect Funding to 63% (from60% at YE 2016)
• AuM growth mainly driven by the 'Funds and Sicav' component (+15.1% y/y, +1.8% q/q)

N.B. The AUM of non-captive network of Aletti Gestielle (amounting to €2.0bn as at 31/12/2017, €1.9bn as at 30/09/2017 and €1.7bn as at 31/12/2016), was deconsolidated after the sale of the company in December 2017, but remains included in Indirect Funding in this slide, in order to ensure coherence with the historical reporting.

Note:

1. Indirect Funding is reported net of capital-protected certificates (previously included in Assets under Custody), as they have been regrouped in extended Direct Funding (see slide 27).

STRONG LIQUIDITY POSITION

Relevant amount of unencumbered assets, almost entirely composed of Government bonds

Management accounting data, net of haircuts. Inclusive of assets received as collateral.1. NSFR as at 30/09/2017, latest available data.

SECURITIES PORTFOLIO

Prudent diversification, support NII and solid liquidity level

€ b i f i i f i A l t h S t P t l n n a y s s o e e c u r e s o r o o				C hg	1 2 M	C hg	3 M
	3 1 / 1 2 / 2 0 1 7	3 0 / 0 9 / 2 0 1 7	3 1 / 1 2 / 2 0 1 6	Va lu e	%	Va lu e	%
i ie ie De b t s t G ec ur s: ov s	2 5. 2	2 8. 6	2 6. 9	-1 7	% -6 2	-3 4	% -1 1. 8
/ l ia G ie I ta - o w : n ov s	2 0. 7	2 4. 6	2 6. 7	-6 0	-2 2. 3 %	-3 9	9 % -1 5.
De b t s i t ie O t he ec ur s: r	5. 0	5. 1	4. 7	0. 3	6. 7 %	-0 1	-2 2 %
Eq i ty i t ie F in ia ls t he & u se cu r s: an c o r	1. 7	1. 8	1. 2	0. 5	4 4. 3 %	-0 1	-5 0 %
O d fu ds iv te i ty & p en -e n n p r a e q u	0. 5	0. 6	1. 0	-0 6	-5 5. 4 %	-0 1	-1 8. 8 %
O T T A L	3 2. 4	3 6. 1	3 3. 8	4 -1	-4 2 %	-3 7	0. 2 % -1

Classification of Italian Government bonds at 31/12/2017

Note:

• Increased diversification of the government bond portfolio:
• -Italian govies: -€6.0bn y/y and -€3.9bn q/q
• • 18% of non-Italian govies (vs. 14% in Sep. 17 and 1% in Dec. 16), primarily France (9%) and USA (5%), followed by Germany and Spain (2% each)
• Italian govies: 47.8% in AFS, 48.2% in HTM and 4.0% in HFT (vs. 63.8% in AFS, 31.1% in HTM and 5.1% in HFT as at 31/12/2016)
• Modified duration of Italian govies in AFS: ~2.5 years

• Gross AFS reserve at €170m (+€90m vs. Sep. 17), mainly thanks to the improvement in the reserve of Italian govies1. As at 01/02/2018 the gross AFS reserve has stayed at a comfortable level (€139m)2

• 1. Management accounting data, excluding Banca Akros perimeter.
• 1. Gross HTCS (ex AFS) prior to IFRS 9 FTA.

• Balance Sheet and Liquidity Highlights

Agenda

1	i E t S x e c u v e u m m a r y	4
2	f i b i l i i h l i h P t t H t r o a y g g s	1 5
3	l S h t d i i d i t i h l i h t B L H a a n c e e e a n q g g s u y	2 5
4	i i i C d t Q l t d t N P L U r e a a n n u y	3 2
5	i C t l d t U a p a p a e	3 9
6	i C l o n c s o n u	4 2

Annexes

⁴⁴

STRONG NPL STOCK REDUCTION...

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

• Net NPL stock down by €3.2bn y/y (-19.6%), thanks to:
• decrease in net flows of NPLs (-55.3% y/y)
• effective internal workout (€781m¹) and disposals of Bad Loans (€3.5bn nominal value in 2017)
• increase in coverage (+94bps y/y)
• Net UTPs down by €1.8bn y/y (-21.7%), confirming a normalization in asset quality trends

Notes: 1. Management accounting data, includes also recoveries from single name disposals.

…AND MATERIAL IMPROVEMENT IN NPL FLOWS AND RECOVERIES

INFLOWS FROM UTP TO BAD LOANS

OUTFLOWS FROM UTP TO PERFORMING LOANS

Notes:

• 1. Management accounting data, includes also recoveries from single name disposals.
• 1. Internal management accounting data, in order to ensure coherence with the historical reporting.

• Credit Quality and NPL Unit

CONSERVATIVE COVERAGE LEVELS

Coverage in line with Strategic Plan targets

NPL coverage STATED¹

NPL coverage PROFORMA

		3 / 2 / 2 0 1 1 1 7	3 0 / 0 9 / 2 0 1 7	3 / 2 / 2 0 6 1 1 1	C hg (	in bs ) p		O O O S P R F R M A P T S 9 S G I F R F T A T A E
				2 ina l No m	3 2 1 M	3 M		3
T t l N P L o a s	in % No l: 5 0. 1 m a 2 2 0 bp / + s y y	% 4 8. 8	% 4 9. 1	% 4 7. 9	9 4	3 1 -	T t l N P L o a s	~5 4 %
d B L a o a n s	No in l: 6 0. 5 % m a 5 0 bp / + s y y	8. 9 % 5	% 6 0. 0	6 0. 0 %	2 -1 1	0 8 -1	B d L a o a n s	% ~6 7
U T P L o a n s		3 2. 4 %	3 0 % 1.	2 2 % 7.	8 5 1	4 4 1
t P D L a s u e o	a n s	% 1 5. 7	2 2. % 1	8. 2 % 1	-2 2 5	-6 4 6

• NPL coverage at 48.8%, in line with the Strategic Plan target: +94bps y/y (50.1% nominal, +220bps)
• Coverage strengthened above all for UTP (+518bps y/y), but also for Bad Loans (+50bps at nominal level), particularly when factoring in the large portion of Bad Loan disposals perfected in the highly coveredunsecured space, resulting in an increasing share of loans assisted by collateral (66%, +5 p.p. vs. YE 2016)
• Bad Loan coverage proforma with the effect of IFRS 9 FTA on stage 3 assets at ~67% (consistently with an NPL ratio of ~11.5%), leading the proforma NPL coverage to increase to ~54%

Notes:

• 1. Starting from 31/03/2017, most write-offs, which had been included in the Nominal values in the past, have been brought back on-balance sheet. At the end of March 2017, write-offs of about €1bn were still recorded off-balance sheet (down to €0.9bn in Sep. 17 and to €0.6bn in Dec. 17).
• 1. The December 2016 Nominal coverage includes all the write-offs that had been off-balance sheet at that time, in line with the values used in the Strategic Plan. For further details, please see slide 61.
• 1. The twelve-month changes are measured against the nominal values in December 2016 (i.e. inclusive of all write-offs).

Notes:

1. Report PWC "The Italian NPL market – the place to be", Dec- 2017. 2. Collateral FV capped at nominal value.

UNLIKELY-TO-PAY LOANS: PROGRESS ANALYSIS

Breakdown of Net UTP Loans

To ta l n t U T P e		6. 5
f w ic h h: o	d Re t tu s ru c re	2. 8
	d Se cu re -	8 1.
	d Un se cu re -	1. 1
f w ic h h: o	he O U T P t r	3. 6
	d Se cu re -	3. 1
	d Un se cu re -	0. 5

• UTPs fell 15.7% y/y at gross and 21.7% y/y at net
• UTP coverage rose to 32.4% at YE 2017 (from 27.2% at YE 2016), with a solid level of 46.9% for the unsecured portion
• Net Restructured loans (€2.8bn) account for 43.9% of total net UTP: they are essentially related to formalised underlying restructuring plans and procedures (mainly under Italian credit protection rules procedures)
• Net unsecured UTP other than Restructured loans are limited to €0.5bn

WORKOUT ACTIVITIES: 2017 PERFORMANCE VS. PLAN TARGET

• In 2017, recoveries and cancellations were 38% higher than the operational plan target

• The workout activities had only ^a very limited impact on the cost of credit

• Credit Quality and NPL Unit

38

Agenda

i t S E e c e m m a r x u v u y	4
f i i i i i t b l t h l h t P H r o a g g s y	1 5
i i i i i B l S h t d L d t H h l h t a a n c e e e a n q u y g g s	2 5
C d i Q l i d i t t N P L U t r e u a y a n n	3 2
C i l d t U t a p a p a e	3 9
i C l o n c s o n u	4 2

Annexes

⁴⁴

CET1 RATIO: EVOLUTION DETAILS

Fully-Loaded CET 1 ratio: Dynamic analysis

• Strong capital position fully loaded (CET ¹ proforma at 12.02%), benefitting from significant capital management actions and already incorporating the full impact of -175bps from the IFRS ⁹ FTA¹
• The IFRS ⁹ FTA will be phased in ⁵ years.

Note:

1. See the following slide for details.

2. Estimated impact based on the Draft Decision received by the ECB at the beginning of February following the release of ^a final report and taking into account the evolution of CET ¹ capital, provisions and RWA since the reference date of the ECB Draft Letter (June 2017). The validation is expected to become effective with the report as at ³¹ March 2018.

IFRS 9 FTA IMPACT: AN OPPORTUNITY TO ACCELERATE DERISKING AND TO STRENGTHEN FUTURE PROFITABILITY

Preliminary IFRS ⁹ First Time Application (FTA) impact estimate: -€1.2bn (pre-tax), mainly due to the application of the new impairment model as detailed below:

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 n o n- p e r o r m n g e x p o s u r e s : -	€ 1. 2 b n -
i i f i i f i l t t d l t 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 : -	€ 0. 1 b n -
l i t i f l i f i t i d t l a p p c a o n o n e w c a s s c a o n a n m e a s u r e m e n r u e s : -	€ 0. b 1 + n

The consequent impact on the fully phased CET1 ratio is estimated at ^a total of -175 bps.

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

IFRS ⁹ FTA provides ^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)
• Anticipate the normalisation of the cost of risk, with positive implications for the bottom line result

Agenda

6	i C l o n c s o n u	4 2
5	i C t l d t U a p a p a e	3 9
4	C d i t Q l i t d i t N P L U r e a a n n u y	3 2
3	l S h d i i d i i h l i h B t L t H t a a n c e e e a n q u y g g s	2 5
2	f i i i i i P t b l t H h l h t r o a y g g s	1 5
1	i E t S e c e m m a r x u v u y	4

Annexes

⁴⁴

CONCLUSION: IMPRESSIVE ACHIEVEMENTS IN YEAR ONE

• -Integration/rationalisation/simplification: achievement at a fast pace
• • Derisking: solid results in terms of disposals and workout, with a timing well ahead of the schedule, paving the way for a more aggressive NPL reduction strategy
• -NPL flows: significant improvement in NPL flows
• • Capital strengthening: pro -forma CET 1 FL ratio of 12.02% (including IFRS 9 FTA), supporting a path of accelerated de-risking, while maintaining a good degree of capital buffers and capital flexibility
• • Cost efficiency: effective action plan set to translate into stronger and better-than-expected cost savings from FY 2018
• • Consolidation of core businesses and defintion of new commercial network model: strengthening of competitive position and enhanced commercial effectiveness

Agenda

Annexes

Agenda - FY 2017 Group Results Presentation 44

ANNEXESPREVIOUS PERIMETER*: FY 2017 RECLASSIFIED P&LY/Y COMPARISON

Re cla ssif ied in sta tem t co me en	FY 20 17	o/ w	FY 20 17	FY 20 16	o/ w	16 Ag FY 20 ted gre ga	Ch Y/ Y g.	Ch Y/ Y g.
( in mi llio n) eu ro	Sta ted	PP A	wi tho ut PP A	Ag ted gre ga	PP A	wi tho ut PP A	wi th PP A	wi tho ut PP A
Ne t in te t in res co me	2,1 14 .0	31 .2	2, 08 2.8	2,1 07 .8	0.0	2,1 07 .8	0.3 %	-1. 2%
Inc e ( los s) fro inv tm ts in iat rrie d a t om m es en ass oc es ca uit eq y	16 6.0	0.0	16 6.0	14 7.9	0.0	14 7.9	12 .3%	12 .3%
t in div ide nd d s im ila r in Ne ter est an co me ,	2, 28 0.0	31 .2	2, 24 8.8	2, 25 5.6	0.0	2, 25 5.6	% 1.1	-0. 3%
Ne t fe nd iss ion in e a co mm co me	2, 09 3.0	0.0	2, 09 3.0	90 3.4 1,	0.0	90 3.4 1,	10 .0%	10 .0%
Ot he tin inc et r n op era g om e	99 .1	-46 .3	145 .5	139 .2	-22 .0	16 1.2	-28 .8%	-9. 7%
t fi ial Ne sul t na nc re	15 6.6	0.0	15 6.6	44 0.1	0.0	44 0.1	.4% -64	.4% -64
Ot he rat ing in r o pe co me	2, 34 8.7	-46 .3	2, 39 5.0	2, 48 2.7	-22 .0	2, 50 4.6	4% -5.	-4. 4%
tal in To co me	4, 62 8.7	-15 .2	4, 64 3.9	4, 73 8.3	-22 .0	4, 76 0.3	-2. 3%	-2. 4%
Pe el rso nn ex pe nse s	-1, 79 2.7	0.0	-1, 79 2.7	-2, 24 5.5	0.0	-2, 24 5.5	-20 .2%	-20 .2%
Ot he dm inis tra tiv r a e e xp en se s	-98 9.9	0.0	-98 9.9	-1, 190 .5	0.0	-1, 190 .5	-16 .8%	-16 .8%
iza tio cia tio Am ort nd de n a pre n	-26 7.3	-13 .3	-25 4.0	-32 0.9	-3. 6	-31 7.3	.7% -16	.9% -19
Op tin ost era g c s	-3, 04 9.9	-13 .3	-3, 03 6.7	-3, 75 6.9	-3. 6	-3, 75 3.3	-18 .8%	-19 .1%
Pro fit ( los s) fro tio m op era ns	1, 57 8.8	-28 .4	1, 60 7.2	98 1.4	-25 .5	1, 00 7.0	60 .9%	59 .6%
Ne t a dju stm ts lo s t ust en on an o c om ers	-1, 66 1.0	197 .2	-1, 85 8.2	-2, 95 8.2	0.0	-2, 95 8.2	-43 .9%	-37 .2%
Ne t a dju stm ts ot he ts en on r a sse	-14 0.2	0.0	-14 0.2	2.5 -11	0.0	2.5 -11	24 .7%	24 .7%
isio for ris ks d c ha Ne t p rov ns an rge s	-13 .8	0.0	-13 .8	-55 .1	0.0	-55 .1	.0% -75	.0% -75
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	25 .7	-0. 9	26 .6	158 .0	0.0	158 .0	.7% -83	.1% -83
Inc e ( los s) be for e t fro ntin uin rat ion om ax m co g o pe s	-21 0.4	16 7.9	-37 8.3	-1, 98 6.3	-25 .5	-1, 96 0.7	n.s	n.s
Tax in fro nti ing tio on co me m co nu op era ns	85 .1	-55 .9	14 1.0	62 9.7	8.2	62 1.4	-86 .5%	-77 .3%
e ( los s) a fte r ta x f di tin d o rat ion Inc om rom sc on ue pe s	67 3.6	0.0	67 3.6	2.5	0.0	2.5	n.s	n.s
e ( s) a ibu ino rity in Inc los ttr ta ble to te ts om m res	9.7	0.0	9.7	19 .4	0.0	19 .4	.1% -50	.1% -50
t in ( s) for eri din ill & Ne los th od clu Ba dw co me e p ex g irm t o f g dw ill a nd cl ien t re lat ion shi Im pa en oo p	7.8 55	112 .0	44 5.9	33 4.7 -1,	-17 .3	31 7.4 -1,	n.s	n.s
irm f g ill a ien ion shi Im t o dw nd cl t re lat pa en oo p	-1, 01 7.6			-27 9.0		-27 9.0	n.s	n.s
dw ill Ba	3, 07 6.1		3, 07 6.1	0.0		0.0	n.s	n.s
Ne t in ( los s) for th eri od co me e p	2, 61 6.4	112 .0	2, 50 4.4	-1, 61 3.7	-17 .3	-1, 59 6.4	n.s	n.s

*With Aletti Gestielle line-by-line

ANNEXESPREVIOUS PERIMETER*: ADJUSTED FY 2017 RECLASSIFIED P&LY/Y COMPARISON

Ne t in ( los s) for th eri od clu din Ba dw ill & co me e p ex g irm f g ill a ien ion shi Im t o dw nd cl t re lat pa en oo p	55 7.8	54 4.3	13 .5	-1, 33 4.7	-39 8.2	-93 6.5	n.s	n.s
Inc e ( los s) a ttr ibu ta ble to ino rity in te ts om m res	9.7	1.1	8.5	19 .4	2.4	17 .0	-50 .1%	-49 .7%
Inc e ( los s) a fte r ta x f di tin d o rat ion om rom sc on ue pe s	67 3.6	67 3.1	0.4	2.5	0.0	2.5	n.s	n.s
in fro nti ing tio Tax on co me m co nu op era ns	85 .1	37 .1	48 .0	62 9.7	193 .9	43 5.8	.5% -86	.0% -89
e ( los s) be for e t fro nti ing tio Inc om ax m co nu op era ns	-21 0.4	-16 7.0	-43 .4	98 6.3 -1,	-59 4.4	39 1.8 -1,	n.s	n.s
fit ( los s) o n t he di l o f e ity d o the r in stm ts Pro sp osa qu an ve en	25 .7	25 .7	0.0	158 .0	137 .9	20 .1	-83 .7%	-10 0.0 %
isio for ris ks d c ha Ne t p rov ns an rge s	-13 .8	0.0	-13 .8	-55 .1	-24 .8	-30 .2	.0% -75	-54 .5%
Ne t a dju stm ts ot he ts en on r a sse	-14 0.2	-13 2.4	-7. 8	2.5 -11	-65 .2	-47 .3	24 .7%	-83 .4%
Ne t a dju stm ts lo s t ust en on an o c om ers	-1, 66 1.0	0.0	-1, 66 1.0	-2, 95 8.2	0.0	-2, 95 8.2	-43 .9%	-43 .9%
fit ( los s) fro tio Pro m op era ns	8.8 1, 57	-60 .4	63 9.2 1,	98 1.4	-64 2.4	62 3.8 1,	60 .9%	0.9 %
Op tin ost era g c s	-3, 04 9.9	-77 .5	-2, 97 2.5	-3, 75 6.9	-67 5.0	-3, 08 1.9	-18 .8%	-3. 6%
Am ort iza tio nd de cia tio n a pre n	-26 7.3	-52 .5	-21 4.8	-32 0.9	-10 7.8	-21 3.1	-16 .7%	0.8 %
inis tiv Ot he dm tra r a e e xp en ses	-98 9.9	-28 .1	-96 1.9	-1, 190 .5	-20 0.5	-99 0.0	.8% -16	8% -2.
el Pe rso nn ex pe nse s	79 2.7 -1,	3.1	79 5.8 -1,	-2, 24 5.5	-36 6.7	-1, 87 8.8	-20 .2%	-4. 4%
in To tal co me	4, 62 8.7	17 .1	4, 61 1.6	4, 73 8.3	32 .6	4, 70 5.7	3% -2.	0% -2.
Ot he rat ing in r o pe co me	2, 34 8.7	0.0	2, 34 8.7	2, 48 2.7	32 .6	2, 45 0.1	-5. 4%	-4. 1%
t fi ial sul Ne t na nc re	6.6 15	0.0	6.6 15	44 0.1	32 .6	40 7.5	-64 .4%	-61 .6%
Ot he et tin inc r n op era g om e	99 .1	0.0	99 .1	139 .2	0.0	139 .2	-28 .8%	-28 .8%
Ne t fe nd iss ion in e a co mm co me	2, 09 3.0	0.0	2, 09 3.0	1, 90 3.4	0.0	1, 90 3.4	10 .0%	10 .0%
t in ter est div ide nd d s im ila r in Ne an co me ,	2, 28 0.0	17 .1	2, 26 2.9	2, 25 5.6	0.0	2, 25 5.6	% 1.1	0.3 %
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	16 6.0	-10 .5	6.5 17	14 7.9	0.0	14 7.9	12 .3%	19 .4%
Ne t in te t in res co me	2,1 14 .0	27 .6	2, 08 6.4	2,1 07 .8	0.0	2,1 07 .8	0.3 %	-1. 0%
( in mi llio n) eu ro	Sta ted	off On e-	Ad jus ted	Ag ted gre ga	ff On e-o	Ad jus ted	Sta ted	Ad jus ted
cla ssif ied in Re sta tem t co me en	20 FY 17	o/ w	20 FY 17	20 16 FY	o/ w	FY 20 16 ted Ag gre ga	Ch Y/ Y g.	Ch Y/ Y g.

ANNEXESPREVIOUS PERIMETER*: FY 2017 RECLASSIFIED P&LNON RECURRING ITEMS

Re cla ssi fie d i tat t nc om e s em en	20 FY 17	20 FY 17	off On e-	No ing ite d n-r ec urr ms an
( in mi llio n) eu ro	Sta ted	jus Ad ted	FY 17	tra ord ina tem ic ch ex ry sys arg es
t in t in Ne te res co me	2, 114 .0	2, 08 6.4	27 .6	TLT RO 2 i nte ts ed in 2H 16 d t lit iga tio res ac cru an ax n
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	16 6.0	6.5 17	-10 .5	Se lm aB ip iem e L sin im ct m ea g pa
Ne t in ter t, div ide nd d s im ila r in es an co me	2, 28 0.0	2, 26 2.9	17. 1
t fe iss ion in Ne nd e a co mm co me	2, 09 3.0	2, 09 3.0	0.0
Ot he et tin inc r n op era g om e	99 .1	99 .1	0.0
Ne t fi ial sul t na nc re	15 6.6	15 6.6	0.0
Ot he ing in rat r o pe co me	2, 34 8.7	2, 34 8.7	0.0
To tal in co me	4, 62 8.7	4, 61 1.6	17. 1
el Pe rso nn ex pe nse s	79 2.7 -1,	79 5.8 -1,	3.1	rly tire lan Ea Re t P m en
Ot he dm ini str at ive r a ex pe nse s	-98 9.9	-96 1.9	-28 .1	Re fun d o f th e 2 01 5 D TA fe d i nte tio ts e an gra n c os
iza tio cia tio Am ort nd de n a pre n	-26 7.3	-21 4.8	-52 .5	So ftw im irm ts are pa en
Op tin ts era g c os	-3, 04 9.9	-2, 97 2.5	-77 .5
fit ( s) fro tio Pro los m op era ns	1, 57 8.8	1, 63 9.2	-60 .4
Ne t a dju stm ts lo s t ust en on an o c om ers	-1, 66 1.0	-1, 66 1.0	0.0
dju Ne t a stm ts ot he ts en on r a sse	-14 0.2	-7. 8	-13 2.4	Im irm t o f A tla nte Vic bo nd d F ITD pa en en za an ,
isio for ris Ne t p ks d c ha rov ns an rge s	-13 .8	-13 .8	0.0
fit ( los s) o he di al of uit nd he r in Pro n t ot stm ts sp os eq y a ve en	25 .7	0.0	25 .7	Re al Est at e i tm ts d o the r in stm ts nv es en an ve en
Inc e ( los s) be for e t fro nti ing tio om ax m co nu op era ns	-21 0.4	-43 .4	-16 7.0
n i e f nti ing tio Ta x o nc om rom co nu op era ns	85 .1	48 .0	37 .1	lin lit iga tio r fi eff Im ct ke d t o t nd ot he al ts pa ax n a sc ec ing ite on no n-r ec urr m s
e ( s) a fte x f di tin ion Inc los r ta d o rat om rom sc on ue pe s	67 3.6	0.4	67 3.1	Dis l o f A let ti G tie lle po sa es
e ( s) a ibu ino rity in Inc los ttr ta ble to te ts om m res	9.7	8.5	1.1
t in ( los s) for th eri od clu din dw ill & irm Ne Ba Im t co me e p ex g pa en	7.8 55	13	54
of od wi ll a nd cl ien lat ion shi t re go p		.5	4.3

*With Aletti Gestielle line-by-line

ANNEXESPREVIOUS PERIMETER*: Q4 2017 RECLASSIFIED P&LQ/Q COMPARISON

Re cla ssi fie d i tat t nc om e s em en ( in mi llio n) eu ro	Q 4 2 01 7 Sta ted	o/ w PP A	Q 4 2 01 7 wi tho ut PP A	Q 3 2 01 7 Sta ted	o/ w PP A	Q 3 2 01 7 wi tho ut PP A	Ch Q / Q g. wi th PP A	Ch Q / Q g. wi tho ut PP A
Ne t in te t in res co me	52 8.9	1.1	52 7.8	52 5.1	10. 0	51 5.1	0.7 %	2.5 %
Inc e ( los s) fro inv tm ts in cia te ied at om m es en as so s c arr uit eq y	45 .2	0.0	45 .2	38 .9	0.0	38 .9	16 .0%	16 .0%
Ne t in ter t, div ide nd d s im ila r in es an co me	57 4.1	1.1	57 3.0	56 4.0	10. 0	55 4.0	1.8 %	3.4 %
t fe iss ion in Ne nd e a co mm co me	51 5.9	0.0	51 5.9	48 6.3	0.0	48 6.3	% 6.1	% 6.1
Ot he et tin inc r n op era g om e	24 .5	-1 1.6	36 .1	30 .0	-1 1.6	41 .6	-18 .5%	-13 .3%
t fi ial Ne sul t na nc re	41 .8	0.0	41 .8	13 .3	0.0	13 .3	% 21 5.6	% 21 5.6
Ot he rat ing in r o pe co me	58 2.2	-1 1.6	59 3.9	52 9.5	-1 1.6	54 1.2	10 .0%	9.7 %
To tal in co me	1, 15 6.3	-10 .5	1, 16 6.8	1, 09 3.6	6 -1.	1, 09 5.2	5.7 %	6.5 %
Pe el rso nn ex pe nse s	-42 3.3	0.0	-42 3.3	-45 2.3	0.0	-45 2.3	4% -6.	4% -6.
Ot he dm ini str at ive r a ex pe nse s	-21 4.9	0.0	-21 4.9	-27 6.3	0.0	-27 6.3	-22 .2%	-22 .2%
Am ort iza tio nd de cia tio n a pre n	-95 .6	-3. 8	-91 .8	-62 .3	-3. 2	-59 .1	53 .5%	55 .4%
Op tin ts era g c os	-73 3.8	-3. 8	-73 0.0	-79 0.9	-3. 2	-78 7.7	-7. 2%	-7. 3%
Pro fit ( los s) fro tio m op era ns	42 2.5	-14 .3	43 6.8	30 2.7	-4. 8	30 7.5	39 .6%	42 .1%
dju Ne t a stm ts lo s t ust en on an o c om ers	-67 3.1	62 .7	-73 5.8	-34 0.8	41 .2	-38 2.0	.5% 97	.6% 92
Ne t a dju stm ts ot he ts en on r a sse	-12 .7	0.0	-12 .7	-48 .3	0.0	-48 .3	-73 .7%	-73 .7%
Ne t p isio for ris ks d c ha rov ns an rge s	-9. 2	0.0	-9. 2	4.6	0.0	4.6	n.s	n.s
fit ( los s) o n t he di al of uit nd ot he r in stm ts Pro sp os eq y a ve en	12 .1	-0. 1	12 .2	0.3	0.1	0.2	n.s	n.s
e ( los s) be for e t fro nti ing tio Inc om ax m co nu op era ns	-26 0.5	48 .3	-30 8.8	-81 .5	36 .5	8.0 -11	n.s	n.s
Ta n i e f nti ing tio x o nc om rom co nu op era ns	91 .4	-16 .1	10 7.5	38 .8	-12 .2	51 .0	n.s	n.s
Inc e ( los s) a fte r ta x f di tin d o rat ion om rom sc on ue pe s	67 3.4	0.0	67 3.4	-0. 2	0.0	-0. 2	n.s	n.s
e ( los s) a ttr ibu ta ble to ino rity in te ts Inc om m res	0.9	0.0	0.9	1.4	0.0	1.4	-37 .9%	-37 .9%
Ne t in ( los s) for th eri od clu din Ba dw ill & co me e p ex g irm f g ill a ien ion shi Im t o dw nd cl t re lat pa en oo p	50 5.1	32 .2	47 2.9	-41 .5	24 .3	-65 .8	n.s	n.s

*With Aletti Gestielle line-by-line

48Annexes

ANNEXESPREVIOUS PERIMETER*: ADJUSTED Q4 2017 RECLASSIFIED P&LQ/Q COMPARISON

Q 4 2 01 7	o/ w	Q 4 2 01 7	Q 3 2 01 7	o/ w	Q 3 2 01 7	Ch Q / Q g.
Sta ted	off on e-	jus Ad ted	Sta ted	off on e-	jus Ad ted	jus Ad ted
52 8.9	0.0	52 8.9	52		52	0.7 %
45 .2	0.0	45 .2	38		38	16 .0%
4.1 57	0.0	4.1 57	56 4.0	0.0	56 4.0	1.8 %
51 5.9	0.0	51 5.9	48		48	6.1 %
24 .5	0.0	24 .5	30		30	-18 .5%
41 .8	0.0	41 .8	13		13	n.s
58 2.2	0.0	58 2.2	52 9.5	0.0	52 9.5	10 .0%
6.3 1, 15	0.0	6.3 1, 15	09 3.6 1,	0.0	09 3.6 1,	% 5.7
-42 3.3	4.4	-42 7.8	-45 2.3	0.0	-45	-5. 4%
-21 4.9	-12	-20	-27	-17	-25 8.7	-21 .8%
-95 .6	-43 .5	-52 .1	-62	-5.	-56	-8. 3%
-73 3.8	-51 .6	-68 2.1	-79 0.9	-23 .2	-76 7.7	.1% -11
42 2.5	.6 -51	47 4.2	30 2.7	-23 .2	32 5.9	45 .5%
-67 3.1	0.0	-67 3.1	-34 0.8	0.0	-34	n.s
-12 .7	-10 .7	-2. 1	-48	-45	-2.	n.s
-9. 2	0.0	-9. 2				n.s
12	12.	0.0				n.s
-26 0.5	-50 .2	-21 0.3	-81 .5	-68 .3	-13 .2	n.s
91 .4	11.	79 .8	38 .8	28	10	n.s
67 3.4	67	0.2	-0. 2		-0.	n.s
		0.3				.9% -65
50 5.1	63 5.1	-12 9.9	-41 .5	-39 .5	-2. 0	n.s
	.1 0.9	.6 1 6 3.1 0.6	2.3	5.1 .9 6.3 .0 .3 6.3 .3 .3 4.6 0.3 1.4	0.0 0.0 0.0 0.0 0.0 .7 5 .5 0.0 0.3 .2 0.0 0.5	5.1 .9 6.3 .0 .3 2.3 .8 0.8 8 4.6 0.0 .6 2 0.9

*With Aletti Gestielle line-by-line

ANNEXESPREVIOUS PERIMETER*: Q4 2017 RECLASSIFIED P&LNON RECURRING ITEMS

ssif ied in Re cla sta tem t co me en	Q 4 2 01 7	Q 4 2 01 7
( in mi llio n) eu ro	Sta ted	Ad jus ted	On ff e-o	ing ite rdi ic No d e xtr tem ch n-r ec urr ms an ao na ry sys arg es
Ne t in te t in res co me	52 8.9	52 8.9	0.0
e ( s) fro inv in iat rrie ity Inc los est nts d a t e om m me ass oc es ca qu	45 .2	45 .2	0.0
Ne t in ter est div ide nd d s im ila r in an co me ,	57 4.1	57 4.1	0.0
Ne t fe nd issi in e a co mm on co me	51 5.9	51 5.9	0.0
Ot he et tin inc r n op era g om e	24 .5	24 .5	0.0
t fi ial Ne sul t na nc re	41 .8	41 .8	0.0
Ot he rat ing in r o pe co me	58 2.2	58 2.2	0.0
To tal in co me	1, 15 6.3	1, 15 6.3	0.0
Pe el rso nn ex pe nse s	-42 3.3	-42 7.8	4.4	rly tire t P lan Ea Re m en
Ot he dm inis tra tiv r a e e xp en ses	-21 4.9	-20 2.3	-12 .6	Int rat ion C ts eg os
ort iza tio nd de cia tio Am n a pre n	-95 .6	-52 .1	-43 .5	So ftw ite do are wr wn s
Op tin ost era g c s	-73 3.8	-68 2.1	1.6 -5
fit ( los s) fro tio Pro m op era ns	42 2.5	47 4.2	-5 1.6
Ne t a dju stm ts lo s t ust en on an o c om ers	-67 3.1	-67 3.1	0.0
dju he Ne t a stm ts ot ts en on r a sse	-12 .7	-2. 1	-10 .7	irm f FI Im t o TD pa en
t p isio for ris ks d c ha Ne rov ns an rge s	-9. 2	-9. 2	0.0
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	12 .1	0.0	12. 1	Re al E sta te inv tm ts a nd ot he r in stm ts es en ve en
e ( los s) be for e t fro ntin uin rat ion Inc om ax m co g o pe s	-26 0.5	-21 0.3	-50 .2
Tax in fro nti ing tio on co me m co nu op era ns	91 .4	79 .8	11. 6	Fis l e ffe cts ing ite ca on no n-r ec urr m s
e ( los s) a fte x f di tin d o ion Inc r ta rat om rom sc on ue pe s	67 3.4	0.2	67 3.1	Dis l o f A let ti G tie lle po sa es
e ( los s) a ttr ibu ta ble to ino rity in te ts Inc om m res	0.9	0.3	0.6
t in ( los s) for th eri od clu din dw ill & irm t o f Ne Ba Im co me e p ex g pa en od wi ll a nd cl ien t re lat ion shi go p	50 5.1	-12 9.9	63 5.1

*With Aletti Gestielle line-by-line

Annexes⁵⁰

ANNEXESNEW PERIMETER: FY 2017 RECLASSIFIED P&LY/Y COMPARISON

Re cla ssif ied in sta tem t co me en ( in mi llio n) eu ro	FY 20 17 Sta ted	o/ w PP A	FY 20 17 wi tho ut PP A	FY 20 16 Ag ted gre ga	o/ w PP A	16 Ag FY 20 ted gre ga wi tho ut PP A	Ch Y/ Y g. wi th PP A	Ch Y/ Y g. wi tho ut PP A
Ne t in te t in res co me	2,1 13 .4	31 .2	2, 08 2.3	2,1 06 .8	0.0	2,1 06 .8	0.3 %	-1. 2%
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	16 6.0	0.0	16 6.0	14 7.9	0.0	14 7.9	12 .3%	12 .3%
t in ter est div ide nd d s im ila r in Ne an co me ,	2, 27 9.5	31 .2	2, 24 8.3	2, 25 4.7	0.0	2, 25 4.7	% 1.1	-0. 3%
Ne t fe nd iss ion in e a co mm co me	1, 95 0.4	0.0	1, 95 0.4	1, 82 4.7	0.0	1, 82 4.7	6.9 %	6.9 %
Ot he et tin inc r n op era g om e	98 .8	-46 .3	145 .2	138 .3	-22 .0	160 .2	-28 .5%	-9. 4%
t fi ial sul Ne t na nc re	.0 155	0.0	.0 155	43 8.3	0.0	43 8.3	-64 .6%	-64 .6%
Ot he rat ing in r o pe co me	2, 20 4.3	-46 .3	2, 25 0.6	2, 40 1.3	-22 .0	2, 42 3.2	-8. 2%	-7. 1%
tal in To co me	4, 48 3.8	.2 -15	4, 49 8.9	4, 65 6.0	-22 .0	4, 67 7.9	-3. 7%	-3. 8%
Pe el rso nn ex pe nse s	-1, 78 4.9	0.0	-1, 78 4.9	-2, 23 7.5	0.0	-2, 23 7.5	-20 .2%	-20 .2%
Ot he dm inis tra tiv r a e e xp en se s	-97 9.3	0.0	-97 9.3	-1, 180 .9	0.0	-1, 180 .9	.1% -17	.1% -17
iza tio nd de cia tio Am ort n a pre n	-26 6.9	-13 .3	-25 3.7	-32 0.6	-3. 6	-31 7.0	-16 .7%	-20 .0%
Op tin ost era g c s	-3, 03 1.0	-13 .3	-3, 01 7.8	-3, 73 9.0	-3. 6	-3, 73 5.4	-18 .9%	-19 .2%
Pro fit ( los s) fro tio m op era ns	1, 45 2.7	-28 .4	1, 48 1.1	91 6.9	-25 .5	94 2.5	58 .4%	57 .2%
Ne t a dju stm ts lo s t ust en on an o c om ers	-1, 66 1.0	197 .2	-1, 85 8.2	-2, 95 8.2	0.0	-2, 95 8.2	-43 .9%	-37 .2%
Ne t a dju stm ts ot he ts en on r a sse	-14 0.2	0.0	-14 0.2	-11 2.5	0.0	-11 2.5	24 .7%	24 .7%
t p isio for ris ks d c ha Ne rov ns an rge s	-13 .8	0.0	-13 .8	-55 .1	0.0	-55 .1	.0% -75	.0% -75
fit ( los s) o he di l o f e ity d o the r in Pro n t stm ts sp osa qu an ve en	25 .7	-0. 9	26 .6	158 .0	0.0	158 .0	-83 .7%	-83 .1%
Inc e ( los s) be for e t fro ntin uin rat ion om ax m co g o pe s	-33 6.5	16 7.9	-50 4.4	-2, 05 0.8	-25 .5	-2, 02 5.2	n.s	n.s
Tax in fro nti ing tio on co me m co nu op era ns	122 .4	.9 -55	178 .3	65 0.2	8.2	64 2.0	-81 .2%	-72 .2%
Inc e ( los s) a fte r ta x f di tin d o rat ion om rom sc on ue pe s	76 2.3	0.0	76 2.3	46 .4	0.0	46 .4	n.s	n.s
e ( s) a ibu ino rity in Inc los ttr ta ble to te ts om m res	9.7	0.0	9.7	19 .4	0.0	19 .4	.1% -50	.1% -50
t in ( s) for eri din ill & Ne los th od clu Ba dw 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	7.8 55	2.0 11	44 5.9	33 4.7 -1,	-17 .3	31 7.4 -1,	n.s	n.s
irm f g ill a ien ion shi Im t o dw nd cl t re lat pa en oo p	-1, 01 7.6			-27 9.0		-27 9.0	n.s	n.s
dw ill Ba	3, 07 6.1		3, 07 6.1			0.0	n.s	n.s
Ne t in ( los s) for th eri od co me e p	2, 61 6.4	11 2.0	2, 50 4.4	-1, 61 3.7	-17 .3	-1, 59 6.4	n.s	n.s

51Annexes

ANNEXESNEW PERIMETER: ADJUSTED FY 2017 RECLASSIFIED P&LY/Y COMPARISON

Re cla ssi fie d i tat t nc om e s em en	FY 20 17	o/ w	FY 20 17	FY 20 16 Ag ted gre ga	o/ w	FY 20 16 Ag ted gre ga	Ch Y/ Y g.
( in mi llio n) eu ro	Sta ted	On off e-	Ad jus ted		On off e-	Ad jus ted	Ad jus ted
t in t in Ne te res co me	2, 11 3.4	27 .6	2, 08 5.9	2, 10 6.8	0.0	2, 10 6.8	0% -1.
e ( los s) fro inv tm ts in cia te ied at Inc om m es en as so s c arr	16 6.0	-10 .5	17 6.5				19
uit eq y				14 7.9	0.0	14 7.9	.4%
t in div ide nd d s im ila r in Ne ter t, es an co me	2, 27 9.5	17 .1	2, 26 2.4	2, 25 4.7	0.0	2, 25 4.7	0.3 %
Ne t fe nd iss ion in e a co mm co me	1, 95 0.4	0.0	1, 95 0.4	82 4.7 1,	0.0	82 4.7 1,	6.9 %
Ot he et tin inc r n op era g om e	98 .8	0.0	98 .8	13 8.3	0.0	13 8.3	-28 .5%
Ne t fi ial sul t na nc re	15 5.0	0.0	15 5.0	43 8.3	32 .6	40 5.7	-61 .8%
ing in Ot he rat r o pe co me	2, 20 4.3	0.0	2, 20 4.3	2, 40 1.3	32 .6	2, 36 8.6	9% -6.
To tal in co me	4, 48 3.8	17 .1	4, 46 6.7	4, 65 6.0	32 .6	4, 62 3.3	-3. 4%
Pe el rso nn ex pe nse s	-1, 78 4.9	3.1	-1, 78 8.0	-2, 23 7.5	-36 6.7	-1, 87 0.9	-4. 4%
Ot he dm ini str at ive r a ex pe nse s	-97 9.3	-28 .1	-95 1.2	18 0.9 -1,	-20 0.5	-98 0.4	-3. 0%
Am ort iza tio nd de cia tio n a pre n	-26 6.9	-52 .5	-21 4.4	-32 0.6	-10 7.8	-21 2.8	0.8 %
Op tin ts era g c os	-3, 03 1.0	-77 .5	-2, 95 3.6	-3, 73 9.0	-67 5.0	-3, 06 4.0	-3. 6%
Pro fit ( los s) fro tio m op era ns	1, 45 2.7	-60 .4	1, 51 3.1	91 6.9	-64 2.4	1, 55 9.3	-3. 0%
dju Ne t a stm ts lo s t ust en on an o c om ers	-1, 66 1.0	0.0	-1, 66 1.0	-2, 95 8.2	0.0	-2, 95 8.2	.9% -43
dju Ne t a stm ts ot he ts en on r a sse	-14 0.2	-13 2.4	-7. 8	-11 2.5	-65 .2	-47 .3	.4% -83
isio for ris Ne t p ks d c ha rov ns an rge s	-13 .8	0.0	-13 .8	-55 .1	-24 .8	-30 .2	.5% -54
Pro fit ( los s) o n t he di al of uit nd ot he r in stm sp os eq y a ve	ts 25 .7 en	25 .7	0.0	8.0 15	137 .9	20 .1	n.s
e ( s) for fro nti ing tio Inc los be e t om ax m co nu op era ns	-33 6.5	-16 7.0	-16 9.5	-2, 05 0.8	-59 4.4	-1, 45 6.3	n.s
Ta n i e f nti ing tio x o nc om rom co nu op era ns	12 2.4	37 .1	85 .3	65 0.2	193 .9	45 6.4	-81 .3%
Inc e ( los s) a fte r ta x f di tin d o rat ion om rom sc on ue pe s	76 2.3	67 3.1	89 .1	46 .4	0.0	46 .4	n.s
e ( los s) a ttr ibu ta ble to ino rity in te ts Inc om m res	9.7	1.1	8.5	19 .4	2.4	17 .0	-49 .7%
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	55 7.8	54 4.3	13 .5	-1, 33 4.7	-39 8.2	-93 6.5	n.s

ANNEXESNEW PERIMETER: FY 2017 RECLASSIFIED P&LNON RECURRING ITEMS

cla ssi fie d i tat t Re nc om e s em en	FY 20 17	FY 17		ing ite d No n-r ec urr ms an
( in mi llio n) eu ro	Sta ted	jus Ad ted	On of f e-	tra ord ina tem ic ch ex ry sys arg es
Ne t in te t in res co me	2, 11 3.4	20 85 .9	27 .6	TLT RO 2 i nte ts ed in 2H 16 d t lit iga tio res ac cru an ax n
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	16 6.0	17 6.5	-10 .5	Se lm ip iem sin im aB e L ct m ea g pa
Ne t in ter t, div ide nd d s im ila r in es an co me	2, 27 9.5	2, 26 2.4	17. 1
t fe nd iss ion in Ne e a co mm co me	95 0.4 1,	19 50 .4	0.0
Ot he tin inc et r n op era g om e	98 .8	98 .8	0.0
t fi ial Ne sul t na nc re	15 5.0	15 5.0	0.0
Ot he rat ing in r o pe co me	2, 20 4.3	2, 20 4.3	0.0
in To tal co me	4, 48 3.8	4, 46 6.7	17. 1
Pe el rso nn ex pe nse s	-1, 78 4.9	-17 88 .0	3.1	Ea rly Re tire t P lan m en
Ot he dm ini str at ive r a ex pe nse s	-97 9.3	-95 1.2	-28 .1	Re fun d o f th e 2 01 5 D TA fe nd in te tio ts e a gra n c os
iza tio cia tio Am ort nd de n a pre n	-26 6.9	-21 4.4	-52 .5	ftw rite So do are w wn s
Op tin ts era g c os	-3, 03 1.0	-2, 95 3.6	-77 .5
fit ( s) fro tio Pro los m op era ns	1, 45 2.7	1, 51 3.1	-60 .4
t a dju stm ts lo s t ust Ne en on an o c om ers	66 1.0 -1,	-16 61 .0	0.0
dju Ne t a stm ts ot he ts en on r a sse	-14 0.2	-7. 8	-13 2.4	irm f A Vic Im t o tla nte bo nd d F ITD pa en en za an ,
isio for ris ks d c ha Ne t p rov ns an rge s	-13 .8	-13 .8	0.0
fit ( s) o di of uit r in Pro los n t he al nd ot he stm ts sp os eq y a ve en	25 .7	0.0	25 .7	Re al Est at e i tm ts d o the r in stm ts nv es en an ve en
e ( los s) be for e t fro nti ing tio Inc om ax m co nu op era ns	-33 6.5	-16 9.5	-16 7.0
Ta n i e f nti ing tio x o nc om rom co nu op era ns	12 2.4	85 .3	37 .1	lin lit iga tio r fi eff Im ct ke d t o t nd ot he al ts pa ax n a sc ec ing ite on no n-r ec urr m s
Inc e ( los s) a fte r ta x f di tin d o rat ion om rom sc on ue pe s	76 2.3	89 .1	67 3.1	Dis l o f A let ti G tie lle po sa es
Inc e ( los s) a ttr ibu ta ble to ino rity in te ts om m res	9.7	8.5	1.1
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	55 7.8	13 .5	54 4.3

ANNEXESNEW PERIMETER: Q4 2017 RECLASSIFIED P&LQ/Q COMPARISON

ssif ied in Re cla sta tem t co me en ( in mi llio n) eu ro	Q4 20 17 Sta ted	o/ w PP A	Q4 20 17 wi tho ut PP A	Q3 20 17 Sta ted	o/ w PP A	Q3 20 17 wi tho ut PP A	Ch Q/ Q g. wi th PP A	Ch Q/ Q g. wi tho ut PP A
Ne t in ter est in co me	52 8.8	1.1	52 7.7	52 4.9	10 .0	51 4.9	0.7 %	2.5 %
Inc e ( los s) fro inv est nts in iat rrie d a t om m me ass oc es ca uit eq y	45 .2	0.0	45 .2	38 .9	0.0	38 .9	16 .0%	16 .0%
Ne t in ter est div ide nd d s im ila r in an co me ,	57 3.9	1.1	57 2.8	56 3.9	10 .0	55 3.8	1.8 %	3.4 %
Ne t fe nd issi in e a co mm on co me	47 2.1	0.0	47 2.1	45 8.9	0.0	45 8.9	2.9 %	2.9 %
tin inc Ot he et r n op era g om e	24 .7	-1 1.6	36 .4	29 .4	-11 .6	41 .0	.9% -15	.4% -11
t fi ial Ne sul t na nc re	41 .9	0.0	41 .9	13 .0	0.0	13 .0	n.s	n.s
ing in Ot he rat r o pe co me	53 8.7	-11 .6	55 0.4	50 1.3	-11 .6	51 2.9	% 7.5	% 7.3
tal in To co me	2.7 1, 11	-10 .5	12 3.2 1,	06 1, 5.1	6 -1.	06 6.8 1,	4.5 %	5.3 %
Pe el rso nn ex pe nse s	-42 0.8	0.0	-42 0.8	-45 0.6	0.0	-45 0.6	-6. 6%	-6. 6%
Ot he dm inis tra tiv r a e e xp en ses	-21 2.3	0.0	-21 2.3	-27 3.2	0.0	-27 3.2	-22 .3%	-22 .3%
iza tio cia tio Am ort nd de n a pre n	-95 .5	-3. 8	-91 .7	-62 .2	-3. 2	-59 .0	.6% 53	.4% 55
Op tin ost era g c s	-72 8.6	-3. 8	-72 4.8	-78 6.0	-3. 2	-78 2.8	-7. 3%	-7. 4%
fit ( los s) fro tio Pro m op era ns	38 4.1	-14 .3	39 8.4	27 9.2	-4. 8	28 4.0	37 .6%	40 .3%
Ne t a dju stm ts o n lo s t ust en an o c om ers	-67 3.1	62 .7	-73 5.8	-34 0.8	41 .2	-38 2.0	n.s	92 .6%
Ne t a dju stm ts o the ts en n o r a sse	-12 .7	0.0	-12 .7	-48 .3	0.0	-48 .3	-73 .7%	-73 .7%
Ne t p isio for ris ks d c ha rov ns an rge s	-9. 2	0.0	-9. 2	4.6	0.0	4.6	n.s	n.s
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	12 .1	-0. 1	12 .2	0.3	0.1	0.2	n.s	n.s
e ( s) for fro ntin uin ion Inc los be e t rat om ax m co g o pe s	-29 8.9	48 .3	-34 7.2	-10 5.0	36 .5	-14 1.5	n.s	n.s
in fro nti ing tio Tax on co me m co nu op era ns	103 .2	-16 .1	119 .3	45 .6	-12 .2	57 .8	n.s	n.s
e ( los s) a fte r ta x f di tin d o rat ion Inc om rom sc on ue pe s	70 0.0	0.0	70 0.0	16 .5	0.0	16 .5	n.s	n.s
e ( los s) a ttr ibu ta ble to ino rity in te ts Inc om m res	0.9	0.0	0.9	1.4	0.0	1.4	-37 .9%	-37 .9%
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	50 5.1	32 .2	47 2.9	-41 .5	24 .3	-65 .8	n.s	n.s

ANNEXESNEW PERIMETER: ADJUSTED Q4 2017 RECLASSIFIED P&LQ/Q COMPARISON

Re cla ssi fie d i tat t nc om e s em en	Q 4 2 01 7	o/ w	Q 4 2 01 7	Q 3 2 01 7	o/ w	Q 3 2 01 7	Ch Q / Q g.
( in mi llio n) eu ro	Sta ted	off on e-	jus Ad ted	Sta ted	off on e-	jus Ad ted	jus Ad ted
Ne t in te t in res co me	52 8.8	0.0	52 8.8	52 4.9	0.0	52 4.9	0.7 %
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	45 .2	0.0	45 .2	38 .9	0.0	38 .9	16 .0%
t in div ide nd d s im ila r in Ne ter t, es an co me	3.9 57	0.0	3.9 57	56 3.9	0.0	56 3.9	1.8 %
Ne t fe nd iss ion in e a co mm co me	47 2.1	0.0	47 2.1	45 8.9	0.0	45 8.9	2.9 %
Ot he et tin inc r n op era g om e	24 .7	0.0	24 .7	29 .4	0.0	29 .4	-15 .9%
Ne t fi ial sul t na nc re	41 .9	0.0	41 .9	13 .0	0.0	13 .0	n.s
ing in Ot he rat r o pe co me	53 8.7	0.0	53 8.7	50 1.3	0.0	50 1.3	% 7.5
tal in To co me	2.7 1, 11	0.0	2.7 1, 11	06 1, 5.1	0.0	06 1, 5.1	4.5 %
Pe el rso nn ex pe nse s	-42 0.8	4.4	-42 5.2	-45 0.6	0.0	-45 0.6	-5. 6%
Ot he dm ini str at ive r a ex pe nse s	-21 2.3	-12 .6	-19 9.8	-27 3.2	-17 .7	-25 5.5	-21 .8%
Am ort iza tio nd de cia tio n a pre n	-95 .5	-43 .5	-52 .0	-62 .2	-5. 5	-56 .7	-8. 3%
tin Op ts era g c os	-72 8.6	-51 .6	-67 7.0	-78 6.0	-23 .2	-76 2.8	.3% -11
fit ( los s) fro tio Pro m op era ns	38 4.1	.6 -51	43 5.7	27 9.2	-23 .2	30 2.3	44 .1%
Ne t a dju stm ts lo s t ust en on an o c om ers	-67 3.1	0.0	-67 3.1	-34 0.8	0.0	-34 0.8	n.s
Ne t a dju stm ts ot he ts en on r a sse	-12 .7	-10 .7	-2. 1	-48 .3	-45 .5	-2. 8	n.s
Ne t p isio for ris ks d c ha rov ns an rge s	-9. 2	0.0	-9. 2	4.6	0.0	4.6	n.s
fit ( los s) o n t he di al of uit nd ot he r in stm ts Pro sp os eq y a ve en	12 .1	12. 1	0.0	0.3	0.3	0.0	n.s
Inc e ( los s) be for e t fro nti ing tio om ax m co nu op era ns	-29 8.9	-50 .2	-24 8.7	-10 5.0	-68 .3	-36 .7	n.s
n i e f nti ing tio Ta x o nc om rom co nu op era ns	10 3.2	11. 6	91 .6	45 .6	28 .2	17 .4	n.s
e ( los s) a fte r ta x f di tin d o rat ion Inc om rom sc on ue pe s	70 0.0	67 3.1	26 .8	16 .5	0.0	16 .5	n.s
e ( los s) a ibu ble ino rity in Inc ttr ta to te ts om m res	0.9	0.6	0.3	1.4	0.5	0.9	-65 .9%
t in ( s) for eri din ill & irm f Ne los th od clu Ba dw Im t o co me e p ex g pa en wi ien ion shi od ll a nd cl t re lat go p	50 5.1	63 5.1	-12 9.9	-41 .5	-39 .5	-2. 0	n.s

ANNEXESNEW PERIMETER: Q4 2017 RECLASSIFIED P&LNON RECURRING ITEMS

	Q 4 2 01 7	Q 4 2 01 7		ing ite d e xtr rdi tem ic ch No n-r ec urr ms an ao na ry sys arg es
cla ssif ied in sta tem t Re co me en ( in mi llio n) eu ro	Sta ted	Ad jus ted	On ff e-o
Ne t in te t in res co me	52 8.8	52 8.8	0.0
Inc e ( los s) fro inv est nts in iat rrie d a t e ity om m me ass oc es ca qu	45 .2	45 .2	0.0
t in ter est div ide nd d s im ila r in Ne an co me ,	3.9 57	3.9 57	0.0
Ne t fe nd issi in e a co mm on co me	47 2.1	47 2.1	0.0
Ot he et tin inc r n op era g om e	24 .7	24 .7	0.0
Ne t fi ial sul t na nc re	41 .9	41 .9	0.0
Ot he ing in rat r o pe co me	53 8.7	53 8.7	0.0
To tal in co me	1, 11 2.7	1, 11 2.7	0.0
el Pe rso nn ex pe nse s	-42 0.8	-42 5.2	4.4	rly tire lan Ea Re t P m en
inis tiv Ot he dm tra r a e e xp en ses	-21 2.3	-19 9.8	-12 .6	ion Int rat C ts eg os
Am ort iza tio nd de cia tio n a pre n	-95 .5	-52 .0	-43 .5	So ftw ite do are wr wn s
Op tin ost era g c s	-72 8.6	-67 7.0	-51 .6
Pro fit ( los s) fro tio m op era ns	38 4.1	43 5.7	-51 .6
Ne t a dju stm ts lo s t ust en on an o c om ers	-67 3.1	-67 3.1	0.0
t a dju stm ts ot he ts Ne en on r a sse	-12 .7	-2. 1	-10 .7	irm t o f FI Im TD pa en
isio for ris Ne t p ks d c ha rov ns an rge s	-9. 2	-9. 2	0.0
fit ( los s) o he di l o f e ity d o the r in Pro n t stm ts sp osa qu an ve en	12 .1	0.0	12. 1	al E inv nd he r in Re sta te tm ts a ot stm ts es en ve en
Inc e ( los s) be for e t fro ntin uin rat ion om ax m co g o pe s	-29 8.9	-24 8.7	-50 .2
in fro nti ing tio Tax on co me m co nu op era ns	103 .2	91 .6	6 11.	Fis l e ffe ing ite cts ca on no n-r ec urr m s
Inc e ( los s) a fte r ta x f di tin d o rat ion om rom sc on ue pe s	70 0.0	26 .8	67 3.1	Dis f A ti G tie l o let lle po sa es
Inc e ( los s) a ttr ibu ta ble to ino rity in te ts om m res	0.9	0.3	0.6
Ne t in ( los s) for th eri od clu din Ba dw ill & Im irm t o f co me e p ex g pa en od wi ll a nd cl ien t re lat ion shi go p	50 5.1	-12 9.9	63 5.1

ANNEXESHEADCOUNT EVOLUTION

Starting from 31/12/2015 (25,073 units), the headcount reduction expected by 2019 is ~2,570, equal to -10% of the workforce

-689

Notes:

1. Including natural turnover.

2. Including the ⁷¹ higher Solidarity Fund exits coming fromthe new agreement signed in June 2017.

-1,182

-300

-2,171

ANNEXESRECLASSIFIED BALANCE SHEET OF BANCO BPM GROUP AS AT 31/12/2017

	A	B	C	C hg A	/ B	C hg A /	C
la i f ie d ( € m ) Re ts c ss as se	3 1 / 1 2 / 2 0 1 7	3 0 / 0 9 / 1 7 *	3 1 / 1 2 / 1 6	lue Va	%	lue Va	%
Ca h a d h e iva len ts s n ca s q u	9 7 7	8 1 2	8 9 8	1 6 5	2 0. 3 %	7 9	8. 8 %
F ina ia l a ts d he dg ing de iva t ive nc sse an r s	3 3, 8 7 4	3 8, 1 3 5	3 6, 5 8 0	-4, 2 6 1	-1 1. 2 %	-2, 7 0 6	-7. 4 %
fro Du ba ks e m n	5, 1 6 5	4, 6 2 2	6, 6 7 8	5 4 3	% 1 1. 8	-1, 5 1 4	% -2 2. 7
Cu loa to s m er ns	0 8, 6 1 1 7	0 9 0 0 1 7,	0, 1 1 5 5 1	2 6 7	0. 3 %	-2, 3 4 7	-2. % 1
Eq i ty inv tm ts u es en	1, 3 4 9	1, 3 8 4	1, 5 9 5	-3 4	-2. 5 %	-2 4 6	-1 5. 4 %
Pro ty d ip t p er an eq m en u	2, 7 3 5	2, 8 9 4	2, 6 9 6	-1 5 9	-5. 5 %	3 9	1. 5 %
i In ta b le ts ng as se	1, 2 9 7	2, 3 8 3	1, 8 3 4	-1, 0 8 6	% -4 5. 6	-5 3 6	% -2 9. 3
he l d fo le d d isc inu d No t a ts t n-c urr en sse r s a an on e io t op era ns	0 6 1	2 5 7	7 7	-1 5 1	8. % -5 7	2 9	3 2 % 7.
O t he ts r a sse	2 7, 5 7	4 9 7, 5	3 4 6 7,	3 3	0. 4 %	8 1 1	2. % 5
l To ta	6 2 0 1 1, 7	6 8 8 0 1 5,	6 8, 2 1 5 5	-4, 6 3 7	-2. 8 %	0 4 8 -7,	-4. 2 %
	A	B	C	C hg A	/ B	C hg A /	C
la i f ie d l ia b i l i t ies ( € m ) Re c ss	/ / 3 1 1 2 2 0 1 7	/ / 3 0 0 9 1 7 *	/ / 3 1 1 2 1 6	Va lue	%	Va lue	%
Du to ba ks e n	2 7, 1 9 9	2 7, 5 7 1	2 3, 2 7 6	-3 7 1	-1. 3 %	3, 9 2 3	1 6. 9 %
to to de b t s i t ies iss d d Du e c us m ers ec ur ue an , f ina ia l l ia b i l i t ies de ig te d t fa ir v lue nc s na a a	0 0 1 7, 5 1	0 9, 9 0 1 1	6, 3 1 1 7 7	-2, 3 9 1	-2. 2 %	-9, 2 6 3	9 % -7.
ina ia ia i i ies ing iva ive F l l b l t d he dg de t nc a n r s	8, 7 0 8	9, 8 1 1	1 0, 6 8 3	-1, 1 0 3	% -1 1. 2	-1, 9 7 5	% -1 8. 5
ia b i l i ty is io L p ro v ns	4 6 1, 1	3 1, 5 1	0 6 1, 7	0 -7	-4. % 5	-2 4 5	4. 4 % -1
L ia b i l i t ies ia te d w i t h a ts he l d fo le a sso c sse r s a	0	2 1	1	-2 1	-9 9. 8 %	-1	-9 6. 4 %
O t he l ia b i l i t ies r	4, 3 6 5	4, 5 7 7	3, 8 1 6	-2 1 2	-4. 6 %	5 4 9	1 4. 4 %
ino i in M ty te ts r res	6 3	5 2	5 8	1 2	% 2 2. 4	5	% 8. 7
i S ha ho l de ' e ty re rs q u	1 1, 9 0 0	1 2, 4 1 7	1 1, 9 4 1	-5 1 7	% -4. 2	-4 1	% -0. 3
To ta l	1 6 1, 2 0 7	1 6 5, 8 8 0	1 6 8, 2 5 5	-4, 6 7 3	% -2. 8	-7, 0 4 8	% -4. 2

Note: (*) As at 30/09/2017 Aletti Gestielle is classified within the Non-current assets held for sale as well as within the associated liabilities, having signed an agreement with Anima for the sale of this subsidiary. Afterwards, in December 2017, the company has been sold and deconsolidated.

ANNEXESANALYSIS OF DIRECT FUNDING¹

Good progress in the cheapest sources of funding

Increase in the share of C/A and sight deposits (to 72.1%; +7.7 p.p. y/y), in line with the strategy to reduce the cost of funding

Note:

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 (€4.2bn at December 2017, basically transactions with Cassa di Compensazione e Garanzia), classified in the Accounting Report under 'Due to customers'.

ANNEXESCUSTOMER LOAN ANALYSIS

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

Breakdown of net loans by customer segment at 31/12/2017

Breakdown of net loans by geographical area at 31/12/2017

• Roughly 29% of customer loans in relation to the Household segment.
• Corporates¹, excluding Large Corporates, account for roughly 61% of the loan book and the average loan ticket is small, coming in at about €270K.
• More than 70% of the portfolio is concentrated in the wealthiest areas of the Country.

Note:

1. Non-financial companies (mid-corporate and small business) and financial companies. Includes €6.4bn of Repos, mainly with Cassa di Compensazione e Garanzia.

ANNEXESCREDIT QUALITY DETAILS

€ m		3 1 / 1 2 / 2 0 1 7
	Gr os s e xp os ur e	d j A tm ts us en	Co ve ra g e	Ne t e xp os ur e
Ba d Lo an s	1 5, 7 9 4	9, 3 0 6	5 8. 9 %	6, 4 8 8
Un l i ke ly to p ay	9, 5 6 6	3, 1 0 2	3 2. 4 %	6, 4 6 4
Pa t Du s e	9 5	1 5	% 1 5. 7	8 0
fo ing No Lo n- p er rm an s	2 4 5, 5 5	2, 4 2 3 1	4 8. 8 %	3, 0 3 2 1
Pe fo ing Lo r rm an s	9 5, 4 6 3	3 1 9	0. 3 %	9 5, 1 4 4
l Cu To ta to Lo s m er an s	1 2 0, 9 1 8	1 2, 7 4 2	% 1 0. 5	0 8, 6 1 1 7

		3 0 / 0 9 / 2 0 1 7
	Gr os s e xp os ur e	A d j tm ts us en	Co ve ra g e	Ne t e xp os ur e
d Ba Lo an s	2 3 0 1 7,	0, 3 3 9 1	6 0. 0 %	6, 8 9 1
l i ke ly Un to p ay	0, 0 6 9 1	3, 2 0 1	3 0 % 1.	6, 9 4 9
t Pa Du s e	9 2 1	4 3	2 2. % 1	0 1 5
No fo ing Lo n- p er rm an s	2 7, 4 9 1	1 3, 5 0 1	% 4 9. 1	1 3, 9 9 0
fo ing Pe Lo r rm an s	9 4, 3 0 1	3 9 1	0. 4 %	9 3, 9 0 1
To ta l Cu to Lo s m er an s	1 2 1, 7 9 2	1 3, 8 9 2	1 1. 4 %	1 0 7, 9 0 0

					3 1 / 1 2 / 2 0 1 6
	ina l No m ex p os ur e	O f f- ba la nc e he t i te f fs W s e r -o	Gr os s ex p os ur e	d j tm ts A us en	d j A tm ts us en i t h w i te f fs w r -o	Co ve ra g e i t h w i te f fs w r -o	Co i ho t t ve ra g e w u i te f fs wr -o	t e Ne xp os ur e
Ba d Lo an s	1 9, 5 7 8	5, 1 6 6	1 4, 4 1 3	6, 5 9 0	1 1, 7 5 6	% 6 0. 0	% 4 5. 7	7, 8 2 2
i Un l ke ly to Pa y	1 1, 3 4 9		1 1, 3 4 9	3, 0 9 2	3, 0 9 2	% 2 7. 2	% 2 7. 2	8, 2 5 7
Pa t Du s e	1 5 3		1 5 3	2 8	2 8	% 1 8. 2	% 1 8. 2	1 2 5
fo ing No Lo n- p er rm an s	3 0 8 0 1,	6 6 5, 1	* 2 9 4 5, 1	9, 0 7 1	4, 8 6 1 7	4 9 % 7.	3 % 7. 5	6, 2 0 4 1
fo ing Pe Lo r rm an s	9 4, 7 5 4		9 4, 7 5 4	4 0 8	4 0 8	% 0. 4	% 0. 4	9 4, 3 4 6
l Cu To ta to Lo s m er an s	2 8 3 4 1 5,	6 6 5, 1	2 0, 6 6 9 1	0, 8 1 1 1	2 8 4 1 5,	2. % 1 1	8. 4 %	0, 1 1 5 5 1

Note: * Corresponding to € 30.0bn, if restated excluding from the Nominal amount only the write-offs which remained off-balance sheet at the beginning of 2017 (€1bn). See note below.

N.B. Restatement of write-offs as of Q1 2017:

Starting from 31/03/2017, most write-offs, which had been included in the Nominal values in the past, have been brought back on-balance sheet. At the end of March 2017, write-offs of about €1bn were still recorded off-balance sheet (down to €0.9bn in Sep. 17 and to €0.6bn in Dec. 17).

61Annexes

ANNEXESPHASED IN AND FULLY PHASED CAPITAL POSITION IN DETAIL

S C P H A E D I N 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 7	3 1 / 1 2 / 2 0 1 7
i C E T 1 C t l a p a	8, 4 6 3	9, 3 7 9
i T 1 C t l a p a	8, 6 3 7	9, 6 0 8
i T t l C t l o a a p a	1 0, 6 4 9	1 1, 5 4 4
R W A
	6, 8 0 7 5	8 9 6 7 5,
C E T 1 R t i a o	1 1. 0 1 %	1 2. 3 6 %
i T 1 R t a o	2 4 % 1 1.	2. 6 6 % 1

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

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

CONTACTS FOR INVESTORS AND FINANCIAL ANALYSTS

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

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

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