PRESS RELEASE

CONSOLIDATED RESULTS AS AT 30 JUNE 2023

1H23 CONSOLIDATED NET PROFIT OF € 704.6 MLN
CORE REVENUES¹ OF € 2,540.6 MLN, +49.5% ON 1H22
SIGNIFICANT GROWTH IN NET INTEREST INCOME TO € 1,545.0 MLN; NET COMMISSION INCOME OF € 995.6 MLN
IMPROVED OPERATIONAL EFFICIENCY, COST INCOME RATIO² OF 51.3%, DOWN FROM 64.3% IN JUNE 2022 AND 65.5% FOR FULL YEAR 2022
CREDIT QUALITY CONFIRMED, WITH NPE RATIO OF 2.7% GROSS AND 1.1% NET (VS. 3.2% AND 1.4% AT END-2022)
TOTAL NPE COVERAGE INCREASED TO 59.6% VS. 57.1% AT END-2022
STRONGER CAPITAL POSITION, WITH PRO-FORMA CET1 RATIO³ OF 14.0% WELL ABOVE SREP REQUIREMENT (8.5%)
HIGH LIQUIDITY POSITION WITH LCR AT 157.1% AND NSFR AT 126.1%

Modena – 2 August 2023. The Board of Directors of BPER Banca (the "Bank"), chaired by Flavia Mazzarella, has today examined and approved the Bank separate and Group consolidated results as at 30 June 2023.

Chief Executive Officer Piero Luigi Montani commented: "The macroeconomic environment in the half-year just ended was characterised by economic activity returning to growth in the first quarter and remaining broadly stable in the second quarter with inflation slowing down, though still quite high. Against this backdrop, our first half results, posting a net profit for the period of € 704.6 million, are a source of particular satisfaction for the Group: the commercial and organisational effort expended has made it possible for us to deliver positive operating income and excellent profitability. Operating income totalling € 2,652.3 million reflected superior performance up 48.4% as compared to the first half of 2022, primarily on the back of a steep acceleration in net interest income and a solid resilience of net commissions.

Credit quality is further improving, with still very low default rates and the NPE ratio settling at 2.7% gross (1.1% net), down since the end of 2022, and non-performing loan coverage settling at approximately 60%. The positive trend in

the Bank's derisking process continued, with two UTP portfolio disposals completed in April and May for an overall gross claimed amount of approximately € 900 million, allowing for a further reduction of non-performing loans. Financial results are matched by excellent capitalisation levels: the Bank's capital and liquidity profiles continue to be strong thanks to the organic generation of capital which drives the pro-forma CET1 ratio⁴ to 14.0%, well above the 8.5% current minimum SREP requirement. The same applies to the Bank's liquidity position, with regulatory ratios being broadly in excess of the minimum thresholds required.

The better-than-expected improvement in the macroeconomic outlook and interest rates, combined with our excellent business performance, allow us to upgrade our KPI guidance for 2023, with an expected net recurring profit⁵ of approximately € 1.1 billion.

Ongoing progress is being made in incorporating ESG issues into the Bank's core business. Of major importance is the effort made by the Bank to contribute to the ecological transition and the creation of a more sustainable, equitable and inclusive society. The pursuit of the challenging objectives of the Business Plan was a source of great satisfaction with reduced environmental impact and management of diversities.

I would finally like to recall that the Bank showed utmost attention and closeness to the families and businesses hard hit by the bad weather in Emilia-Romagna with extraordinary assistance and funding, and with the launch of a fundraising campaign, open to all of the Bank's customers and employees in favour of the Italian Red Cross engaged in managing the emergency caused by the heavy floods.

Aware of the uncertainties of a complex macroeconomic environment, we face the rest of the year with confidence, firm in the belief that we will be able to consolidate the profitability levels achieved so far to the benefit of all stakeholders, thanks to the progress made in revenue generation, sound capital and liquidity position and robust credit quality".

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2023 KPI Guidance⁶

2023 GUIDANCE⁷

NET INTEREST INCOME	~ € 2.8 BN
NET COMMISSION INCOME	~ € 2.0 BN
OPERATING COSTS	~ € 2.7 BN
COST OF CREDIT	~ 60 bps
PARENT COMPANY'S PROFIT FOR THE PERIOD	~ € 1.1 BN
COMMON EQUITY TIER 1 RATIO	~ 14 %

Consolidated income statement: key figures

(The Banca Carige Group has been consolidated line by line in the BPER Group's income statement since the third quarter of 2022).

Net Interest Income stood at € 1,545.0 mln, up 96.7% on first half 2022, primarily on the back of a higher commercial spread stemming from a supportive interest rate environment, well managed deposit pass-through and the positive contribution from the investment portfolio.

Net commission income totalled € 995.6 mln, up 8.9% on the same period last year, particularly reflective of the positive trend in traditional banking (+11.5% y/y); likewise strong was the input from fees and commissions on indirect funding (+5.9% y/y) and bancassurance (+4.6% y/y).

Dividends amounted to € 25.1 mln (up 58.3% y/y), of which € 11.1 mln from the stake held in the Bank of Italy. Net income from financial activities amounted to a positive € 53.9 mln as compared to € 84.4 mln in the same period last year: the different contribution is primarily accounted by lower trading income.

Operating income totalled € 2,652.3 mln, up 48.4% with respect to 1H22, driven by increased core revenues (net interest income and net commission income), amounting to € 2,540.6 mln (+49.5% y/y).

Operating costs amounted to € 1,359.9 mln as against € 1,148.3 mln for the same period last year. Among the factors underlying this trend was, in particular, the change of scope arising from the acquisition of the Carige Group in a market environment that continues to face inflationary pressures. More specifically:

staff costs totalled € 849.2 mln as compared to € 711.5 mln for the first half of 2022;
other administrative expenses amounted to € 395.7 mln as compared to € 342.7 mln for the first half last year;
net adjustments to property, plant, equipment and intangible assets amounted to € 115.0 mln vs. € 94.1 mln in 1H22.

The cost/income ratio⁸ for the six-month period was 51.3%, lower than both 64.3% in the first half of 2022 and 65.5% for the full year 2022.

The annualised cost of credit stands at 61 bps, down from the 64 bps cost of credit registered in 2022.

The contributions to banking system funds relate to regular payments for an amount of € 49.5 mln to the Single Resolution Fund (SRF) for 2023. In the interests of clarity, please note that these contributions are shown in a separate line in the reclassified income statement, whereas they are included in item 190 b) "Other administrative expenses" in the Bank of Italy's schedule.

After deducting income tax, totalling € 201.4 mln, and profit for the period pertaining to minority interests amounting to € 15.0 mln, profit for the period pertaining to the parent company totalled € 704.6 mln.

Consolidated balance sheet: key figures

(The balance sheet accounts have included Carige Group figures line by line since 30/06/2022, with the latter being part of the BPER Banca Group's scope of consolidation. Moreover, two separate business units consisting of 8 bank branches owned by Banco di Sardegna and 40 branches owned by BPER Banca, stemming from the merger by absorption of Banca Carige and Banca del Monte di Lucca, were transferred to Banco di Desio e della Brianza s.p.a. on 20 February 2023. The volumes of these branches had already been classified as assets and liabilities held for disposal. Unless otherwise specified, percentage changes refer to figures being compared with data as at 31/12/22).

Direct deposits from customers⁹ totalled € 113.7 bn (-1.0% in the six-month period). Among the main drivers, which partially offset the decline in current accounts in the first half of the year (- € 8.3 bn), was the good performance of term deposits (+ € 1.9 bn), bonds (+ € 2.1 bn) and certificates (+ € 0.5 bn); the performance of repos was positive (+ € 2.1 bn).

Indirect deposits from customers rose to € 166.0 bn (+1.7% in the six-month period), with the growth being contributed to by both assets under management, totalling € 63.3 bn (+4.5%) and assets under custody, amounting to € 79.3 bn (+1.3%), which intercepted the reinvestment of direct funding. The portfolio of life insurance premiums underwritten amounted to € 23.4 bn (-1.6% in Q2).

Gross loans to customers in the quarter amounted to € 91.3 bn (€ 89.1 bn net), down 2.4%.

The conservative approach to non-performing loan management and the derisking actions implemented have enabled the Group to achieve sound asset quality ratios: the share of gross non-performing loans to total gross loans (gross NPE ratio) is 2.7%, down on end-2022 (3.2%), whereas the share of net non-performing loans to total net loans (net NPE ratio) is 1.1%, down on end-2022 (1.4%).

The coverage ratio for total non-performing loans rose to 59.6% from 57.1% at the end of 2022; performing loan coverage rose to 0.81% from 0.77% at the end of 2022 and Stage 2 loan coverage was 4.87%, up from 4.44% on end-2022.

Financial assets, amounting to € 30.5 bn, account for 21.3% of total assets. Within the aggregate, debt securities amount to € 28.5 bn (93.7% of the total portfolio) with duration of approximately 1.9 years net of hedging and include € 15.1 bn worth of bonds issued by governments and other supranational public entities, including € 10.2 bn of Italian government bonds.

Total shareholders' equity amounts to € 8,673 mln, with minority interests accounting for € 182.9 mln. Group consolidated shareholders' equity, including net profit for the period, amounts to € 8,490 mln.

As regard the liquidity position, the Liquidity Coverage Ratio (LCR) as at 30 June 2023 is 157.1%, while the Net Stable Funding Ratio (NSFR) is 126.1%.

Group structure highlights as at 30 June 2023

The BPER Banca Group is present in twenty regions of Italy with a network of 1,759 bank branches, as compared to 1,913 as at 31 December 2022.

Group employees total 20,596 as compared to a headcount of 21,059 at year-end 2022.

Capital Ratios

Reported below are the pro-forma capital ratios as at 30 June 2023:

Pro-forma Common Equity Tier 1 (CET1) ratio¹⁰ of 14.0% (12.0% as at 31 December 2022);
Pro-forma Tier 1 ratio¹¹ of 14.3% (12.3% as at 31 December 2022);
Pro-forma Total Capital Ratio¹² of 17.7% (15.6% as at 31 December 2022).

Outlook for operations

Global economic activity, curbed by high inflation and tight financing conditions, is experiencing cyclical weakness; the most recent economic indicators show that growth was almost nil in the second quarter. On the back of the lower contribution of the energy component, consumer price inflation continued to fall. However, core inflation is still struggling to come down.

As for the Italian economic situation, GDP rebounded in the first quarter, driven by the expansion in household consumption and further growth in investments. In spring this year, despite the brisk growth in services, GDP was broadly stable, affected by the decrease in manufacturing activity due to the weakening of the global industrial cycle. Although the flooding that hit Emilia-Romagna in May had an impact on the local economy, it did not have major consequences on Italy's GDP in the second quarter. In the Bank of Italy's update to the three‑year baseline scenario¹³, GDP is set to grow by 1.3% in 2023, 0.9% in 2024 and 1.0% in 2025. At the same time, inflation is expected to reach 6.0% on average this year and go down to 2.3% in 2024 to then continue the downward trajectory and settle at 2.0% in 2025, reflecting the direct and indirect effects of the fall in energy commodity prices.

In this scenario, the Bank's profitability will continue to be underpinned in particular by net interest income, the resilience of net commissions, and actions to offset the impact of inflationary dynamics on costs. Maintaining resilient coverage levels and a conservative provisioning approach will continue to be a key feature of our credit quality. The capital position is expected to remain robust.

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Notice is hereby given that, on 1 August 2023, the Board of Directors of Banca Cesare Ponti S.p.A., resolved to start -in coordination with the Parent Company BPER Banca S.p.A.- the preliminary and preparatory activities for the concentration of the BPER Group's Wealth & Asset Management units in Banca Cesare Ponti, in line with the BPER Group's 2022-2025 Business Plan.

The transaction is planned to be given effect by PER Banca, the sole shareholder of Banca Cesare Ponti, via the transfer of the business unit consisting in the aforementioned segments, against a capital increase for Banca Cesare Ponti.

The transaction, which is planned to be brought to completion by the end of the first quarter of 2024, is subject to the adoption of the necessary resolutions by the respective governing bodies of Banca Cesare Ponti and BPER Banca, in addition to obtaining the required authorisations from the competent Supervisory Authorities.

From a regulatory standpoint, the transaction qualifies as a related party transaction for BPER Banca.

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The Half Year Report of the BPER Group as at 30 June 2023, inclusive of the Independent Auditors' Limited Review report, will be available at the Bank's head office, on the Bank's website (www.bper.it and istituzionale.bper.it), as well as on the websites of Borsa Italiana S.p.A. and of the authorised storage platform (), as required by law. Note: the auditors have not yet completed their review.

As a complement to the information provided in this press release, attached please find the consolidated Balance Sheet and Income Statement (quarterly breakdown and reclassified) as at 30 June 2023, in addition to a summary of key financial indicators.

Modena, 2 August 2023

The Chief Executive Officer Piero Luigi Montani

The Manager responsible for preparing the Company's financial reports, Marco Bonfatti, declares, pursuant to art. 154-bis, paragraph 2, of Legislative Decree no. 58/1998 (Consolidated Law on Finance), that the accounting information contained in this press release corresponds to the underlying documentary evidence, books and accounting records.

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Modena, 2 August 2023

The Manager responsible for preparing the Company's financial reports Marco Bonfatti

A conference call to illustrate the consolidated results of the BPER Banca Group as at 30 June 2023 will be held today at 7 p.m. (CET).

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The conference call, in Italian with simultaneous translation into English, will be hosted by the Chief Executive Officer, Piero Luigi Montani.

To join the conference call, please dial the following numbers:

ITALY: +39 02 8020911 UK: +44 1 212818004 USA: +1 718 7058796

A set of slides to support the presentation will be made available on the Bank's website istituzionale.bper.it. in the Investor Relations section, shortly before the start of the conference call.

Contacts:

Investor Relations

[email protected]

The Manager responsible for preparing the Company's financial reports [email protected]

External Relations [email protected]

www.bper.it – istituzionale.bper.it

This press release is also available in the storage system.

Notes

¹ Net interest income plus net commission income.

² The cost/income ratio is calculated on the basis of the layout of the reclassified income statement (operating costs/operating income); when calculated on the basis of the schedules provided by the 8th update of Bank of Italy Circular no. 262, the cost/income ratio is 55.05% as at 30 June 2023, vs. 73.17% in 2022 and 69.33% as at 30 June 2022.

³ The pro-forma capital ratios were calculated by including profit for the period for the portion not allocated to dividends, thus simulating, in advance, the effects of the ECB's authorisation to include these profits in Own Funds pursuant to art. 26, para. 2 of the CRR.

⁴ See Note 3.

⁵ Guidance is understood as based on recurring figures, hence not including any potential non-recurring items that cannot currently be assumed.

⁶ See Note 5.

⁷ See Note 5

⁸ See Note 2.

⁹ Includes due to customers, debt securities in issue and financial liabilities measured at fair value.

¹⁰ See Note 3.

¹¹ See Note 3. ¹² See Note 3.

¹³ Bank of Italy, Economic Bulletin no. 3, 14 July 2023.

Reclassified financial statements as at 30 June 2023

For greater clarity in the presentation of the results for the period, the accounting schedules envisaged by the 8th update of Bank of Italy Circular no. 262/2005 have been reclassified as follows.

In the balance sheet:

debt securities valued at amortised cost (caption 40 "Financial assets measured at amortised cost") have been reclassified under caption "Financial assets";
loans mandatorily measured at fair value (included in caption 20 c) "Financial assets measured at fair value through profit or loss - other financial assets mandatorily measured at fair value") have been reclassified to the caption "Loans"
the caption "Other assets" includes captions 110 "Tax assets", 120 "Non-current assets and disposal groups classified as held for sale" and 130 "Other assets";
the caption "Other liabilities" includes captions 60 "Tax liabilities", 70 "Liabilities associated with assets classified as held for sale", 80 "Other liabilities", 90 "Employee termination indemnities" and 100 "Provisions for risks and charges".

In the income statement:

the caption "Net commission income" includes commission on placement of Certificates, allocated for accounting purposes to caption 110 "Net income on other financial assets and liabilities measured at fair value through profit or loss"of the accounting schedule (Euro 12.6 million at 30 June 2023 and Euro 12.1 million at 30 June 2022);
the caption "Net income from financial activities" includes captions 80, 90, 100 and 110 of the accounting schedule, net of commission on placement of Certificates mentioned above;
indirect tax recoveries, allocated for accounting purposes to caption 230 "Other operating expense/income" have been reclassified as a reduction in the related costs under "Other administrative expenses" (Euro 136.2 million at 30 June 2023 and Euro 116.7 million at 30 June 2022);
the caption "Net adjustments to property, plant, equipment and intangible assets" includes captions 210 and 220 of the accounting schedule;
the caption "Gains (Losses) on investments" includes captions 250, 260, 270 and 280 of the accounting schedule;
the caption "Contributions to the DGS, SRF and IDPF-VS funds" has been shown separately from the specific accounting technical forms to give a better and clearer representation, as well as to leave the "Other administrative expenses" as a better reflection of the trend in the Group's operating costs. In particular, at 30 June 2023, this caption represents the component allocated for accounting purposes to administrative expenses in relation to the 2023 contribution to the SRF (European Single Resolution Fund) estimated for Euro 49.5 million.

Reclassified consolidated balance sheet as at 30 June 2023

				(in thousands)
Assets	30.06.2023	31.12.2022	Change	% Change
Cash and cash equivalents	8,378,474	13,997,441	(5,618,967)	-40.14
Financial assets	30,461,365	30,665,767	(204,402)	-0.67
a) Financial assets held for trading	723,448	707,498	15,950	2.25
b) Financial assets designated at fair value	1,945	2,381	(436)	-18.31
c) Other financial assets mandatorily measured at fair value	765,039	742,099	22,940	3.09
d) Financial assets measured at fair value through other comprehensive income	7,264,042	7,962,910	(698,868)	-8.78
e) Debt securities measured at amortised cost	21,706,891	21,250,879	456,012	2.15
- banks	6,717,821	6,596,865	120,956	1.83
- customers	14,989,070	14,654,014	335,056	2.29
Loans	91,117,744	94,193,207	(3,075,463)	-3.27
a) Loans to banks	1,928,446	2,885,583	(957,137)	-33.17
b) Loans to customers	89,094,989	91,174,835	(2,079,846)	-2.28
c) Financial assets measured at fair value	94,309	132,789	(38,480)	-28.98
Macrohedging activity	1,652,102	1,808,515	(156,413)	-8.65
a) Hedging derivatives	1,650,822	1,808,515	(157,693)	-8.72
b) Change in value of macro-hedged financial assets	1,280	-	1,280	n.s.
Equity investments	361,736	376,158	(14,422)	-3.83
Property, plant and equipment	2,495,369	2,546,295	(50,926)	-2.00
Intangible assets	549,910	563,502	(13,592)	-2.41
- of which: goodwill	197,624	204,392	(6,768)	-3.31
Other assets	8,075,478	8,151,909	(76,431)	-0.94
Total assets	143,092,178	152,302,794	(9,210,616)	-6.05

				(in thousands)
Liabilities and shareholders' equity	30.06.2023	31.12.2022	Change	% Change
Due to banks	12,507,921	22,000,489	(9,492,568)	-43.15
Direct deposits	113,672,809	114,831,032	(1,158,223)	-1.01
a) Due to customers	103,410,428	107,414,943	(4,004,515)	-3.73
b) Debt securities issued	8,837,060	6,536,891	2,300,169	35.19
c) Financial liabilities designated at fair value	1,425,321	879,198	546,123	62.12
Financial liabilities held for trading	439,184	471,598	(32,414)	-6.87
Macro-hedging activity	111,743	231,689	(119,946)	-51.77
a) Hedging derivatives	362,859	512,981	(150,122)	-29.26
b) Change in value of macro-hedged financial liabilities (+/-)	(251,116)	(281,292)	30,176	-10.73
Other liabilities	7,687,979	6,647,457	1,040,522	15.65
Minority interests	182,941	180,356	2,585	1.43
Shareholders' equity pertaining to the Parent Company	8,489,601	7,940,173	549,428	6.92
a) Valuation reserves	79,151	60,681	18,470	30.44
b) Reserves	4,217,670	2,944,603	1,273,067	43.23
c) Equity instruments	150,000	150,000	-	-
d) Share premium reserve	1,236,602	1,237,276	(674)	-0.05
e) Share capital	2,104,316	2,104,316	-	-
f) Treasury shares	(2,689)	(5,678)	2,989	-52.64
g) Profit (Loss) for the period	704,551	1,448,975	(744,424)	-51.38
Total liabilities and shareholders' equity	143,092,178	152,302,794	(9,210,616)	-6.05

Reclassified consolidated income statement as at 30 June 2023

					(in thousands)
Captions		30.06.2023	30.06.2022	Change	% Change

10+20	Net interest income	1,544,969	785,449	759,520	96.70
40+50	Net commission income	995,629	913,969	81,660	8.93
70	Dividends	25,135	15,883	9,252	58.25
80+90+100 +110	Net income from financial activities	53,948	84,396	(30,448)	-36.08
230	Other operating expense/income	32,639	(12,746)	45,385	-356.07
	Operating income	2,652,320	1,786,951	865,369	48.43
190 a)	Staff costs	(849,174)	(711,542)	(137,632)	19.34
190 b)	Other administrative expenses	(395,747)	(342,655)	(53,092)	15.49
210+220	Net adjustments to property, plant and equipment and intangible assets	(115,017)	(94,082)	(20,935)	22.25
	Operating costs	(1,359,938)	(1,148,279)	(211,659)	18.43
	Net operating income	1,292,382	638,672	653,710	102.35
130 a)	Net impairment losses to financial assets at amortised cost	(269,330)	(215,617)	(53,713)	24.91
	- loans to customers	(271,225)	(193,713)	(77,512)	40.01
	- other financial assets	1,895	(21,904)	23,799	-108.65
130 b)	Net impairment losses to financial assets at fair value	498	(246)	744	-302.44
140	Gains (Losses) from contractual modifications without derecognition	2,896	(1,198)	4,094	-341.74
	Net impairment losses for credit risk	(265,936)	(217,061)	(48,875)	22.52
200	Net provisions for risks and charges	(65,386)	(41,039)	(24,347)	59.33
###	Contributions to SRF, DGS, IDPF - VS	(49,484)	(45,721)	(3,763)	8.23
250+260 +270+280	Gains (Losses) on investments	9,331	7,014	2,317	33.03
275	Gain on a bargain purchase	-	1,188,433	(1,188,433)	-100.00
290	Profit (Loss) from current operations before tax	920,907	1,530,298	(609,391)	-39.82
300	Income taxes on current operations for the period	(201,396)	(135,324)	(66,072)	48.83
330	Profit (Loss) for the period	719,511	1,394,974	(675,463)	-48.42
340	Profit (Loss) for the period pertaining to minority interests	(14,960)	(10,166)	(4,794)	47.16
350	Profit (Loss) for the period pertaining to the Parent Company	704,551	1,384,808	(680,257)	-49.12

Reclassified consolidated income statement by quarter as at 30 June 2023

							(in thousands)
Captions		1st quarter 2023	2nd quarter 2023	1st quarter 2022	2nd quarter 2022	3rd quarter 2022	4th quarter 2022
10+20	Net interest income	725,989	818,980	376,429	409,020	474,981	565,463
40+50	Net commission income	506,098	489,531	450,559	463,410	504,045	524,066
70	Dividends	2,223	22,912	286	15,597	3,309	2,932
80+90+ 100+110	Net income from financial activities	50,882	3,066	58,939	25,457	32,351	22,975
230	Other operating expense/income	33,220	(581)	(2,470)	(10,276)	12,417	328,861
	Operating income	1,318,412	1,333,908	883,743	903,208	1,027,103	1,444,297
190 a)	Staff costs	(423,227)	(425,947)	(352,154)	(359,388)	(360,943)	(609,801)
190 b)	Other administrative expenses	(195,402)	(200,345)	(160,690)	(181,965)	(232,641)	(302,512)
210+220	Net adjustments to property, plant and equipment and intangible assets	(57,161)	(57,856)	(45,584)	(48,498)	(60,664)	(72,926)
	Operating costs	(675,790)	(684,148)	(558,428)	(589,851)	(654,248)	(985,239)
130 a)	Net operating income Net impairment losses to financial assets at amortised	642,622	649,760	325,315	313,357	372,855	459,058
	cost	(142,411)	(126,919)	(111,925)	(103,692)	(118,982)	(271,460)
	- loans to customers	(141,199)	(130,026)	(96,109)	(97,604)	(115,171)	(273,931)
	other financial assets -	(1,212)	3,107	(15,816)	(6,088)	(3,811)	2,471
130 b)	Net impairment losses to financial assets at fair value	(31)	529	(16)	(230)	-	(196)
140	Gains (Losses) from contractual modifications without derecognition	1,905	991	(1,225)	27	573	486
	Net impairment losses for credit risk	(140,537)	(125,399)	(113,166)	(103,895)	(118,409)	(271,170)
200	Net provisions for risks and charges	(57,088)	(8,298)	(12,200)	(28,839)	(11,785)	(79,432)
###	Contributions to SRF, DGS, IDPF - VS	(69,530)	20,046	(45,666)	(55)	(123,280)	(3,422)
250+260 +270+280	Gains (Losses) on investments	12,124	(2,793)	4,026	2,988	6,337	(21,096)
275	Gain on a bargain purchase	-	-	-	1,188,433	(17,111)	(223,199)
290	Profit (Loss) from current operations before tax	387,591	533,316	158,309	1,371,989	108,607	(139,261)
300	Income taxes on current operations for the period	(88,249)	(113,147)	(39,579)	(95,745)	(22,046)	131,606
330	Profit (Loss) for the period	299,342	420,169	118,730	1,276,244	86,561	(7,655)
340	Profit (Loss) for the period pertaining to minority interests	(8,667)	(6,293)	(6,058)	(4,108)	(4,993)	(9,746)
350	Profit (Loss) for the period pertaining to the Parent Company	290,675	413,876	112,672	1,272,136	81,568	(17,401)

Consolidated balance sheet as at 30 June 2023

					(in thousands)
Assets		30.06.2023	31.12.2022	Change	% Change
10.	Cash and cash equivalents	8,378,474	13,997,441	(5,618,967)	-40.14
20.	Financial assets measured at fair value through profit or loss	1,584,741	1,584,767	(26)	0.00
	a) financial assets held for trading	723,448	707,498	15,950	2.25
	b) financial assets designated at fair value	1,945	2,381	(436)	-18.31
	c) other financial assets mandatorily measured at fair value	859,348	874,888	(15,540)	-1.78
30.	Financial assets measured at fair value through other comprehensive income	7,264,042	7,962,910	(698,868)	-8.78
40.	Financial assets measured at amortised cost	112,730,326	115,311,297	(2,580,971)	-2.24
	a) loans to banks	8,646,267	9,482,448	(836,181)	-8.82
	b) loans to customers	104,084,059	105,828,849	(1,744,790)	-1.65
50.	Hedging derivatives	1,650,822	1,808,515	(157,693)	-8.72
60.	Change in value of macro-hedged financial assets (+/-)	1,280	-	1,280	n.s.
70.	Equity investments	361,736	376,158	(14,422)	-3.83
90.	Property, plant and equipment	2,495,369	2,546,295	(50,926)	-2.00
100.	Intangible assets	549,910	563,502	(13,592)	-2.41
	of which:
	- goodwill	197,624	204,392	(6,768)	-3.31
110.	Tax assets	2,779,849	2,931,538	(151,689)	-5.17
	a) current	921,560	579,149	342,411	59.12
	b) deferred	1,858,289	2,352,389	(494,100)	-21.00
120.	Non-current assets and disposal groups classified as held for sale	50,046	1,192,429	(1,142,383)	-95.80
130.	Other assets	5,245,583	4,027,942	1,217,641	30.23
	Total assets	143,092,178	152,302,794	(9,210,616)	-6.05

					(in thousands)
	Liabilities and shareholders' equity	30.06.2023	31.12.2022	Change	% Change
		124,755,409	135,952,323	(11,196,914)	-8.24
10.	Financial liabilities measured at amortised cost	12,507,921	22,000,489	(9,492,568)	-43.15
	a) due to banks
	b) due to customers	103,410,428	107,414,943	(4,004,515)	-3.73
	c) debt securities issued	8,837,060	6,536,891	2,300,169	35.19
20.	Financial liabilities held for trading	439,184	471,598	(32,414)	-6.87
30.	Financial liabilities designated at fair value	1,425,321	879,198	546,123	62.12
40.	Hedging derivatives	362,859	512,981	(150,122)	-29.26
50.	Change in value of macro-hedged financial liabilities (+/-)	(251,116)	(281,292)	30,176	-10.73
60.	Tax liabilities	65,200	71,562	(6,362)	-8.89
	a) current	8,829	8,174	655	8.01
	b) deferred	56,371	63,388	(7,017)	-11.07
70.	Liabilities associated with assets classified as held for sale	-	1,430,197	(1,430,197)	-100.00
80.	Other liabilities	6,243,753	3,679,162	2,564,591	69.71
90.	Employee termination indemnities	166,694	177,224	(10,530)	-5.94
100.	Provisions for risks and charges	1,212,332	1,289,312	(76,980)	-5.97
	a) commitments and guarantees granted	142,997	154,497	(11,500)	-7.44
	b) pension and similar obligations	115,930	115,987	(57)	-0.05
	c) other provisions for risks and charges	953,405	1,018,828	(65,423)	-6.42
120.	Valuation reserves	79,151	60,681	18,470	30.44
140.	Equity instruments	150,000	150,000	-	-
150.	Reserves	4,217,670	2,944,603	1,273,067	43.23
160.	Share premium reserve	1,236,602	1,237,276	(674)	-0.05
170.	Share capital	2,104,316	2,104,316	-	-
180.	Treasury shares (-)	(2,689)	(5,678)	2,989	-52.64
190.	Minority interests (+/-)	182,941	180,356	2,585	1.43
200.	Profit (Loss) for the period (+/-)	704,551	1,448,975	(744,424)	-51.38
	Total liabilities and shareholders' equity	143,092,178	152,302,794	(9,210,616)	-6.05

Consolidated income statement as at 30 June 2023

					(in thousands)
Captions		30.06.2023	30.06.2022	Change	% Change
10.	Interest and similar income	2,236,727	921,333	1,315,394	142.77
	of which: interest income calculated using the effective interest method	2,162,403	910,784	1,251,619	137.42
20.	Interest and similar expense	(691,758)	(135,884)	(555,874)	409.08
	30. Net interest income	1,544,969	785,449	759,520	96.70
40.	Commission income	1,070,751	1,008,292	62,459	6.19
50.	Commission expense	(87,721)	(106,457)	18,736	-17.60
	60. Net commission income	983,030	901,835	81,195	9.00
70.	Dividends and similar income	25,135	15,883	9,252	58.25
80.	Net income from trading activities	42,216	56,240	(14,024)	-24.94
90.	Net income from hedging activities	(2,398)	525	(2,923)	-556.76
100.	Gains (Losses) on disposal or repurchase of:	47,203	19,121	28,082	146.86
	a) financial assets measured at amortised cost	34,538	16,117	18,421	114.30
	b) financial assets measured at fair value through other comprehensive income	12,664	2,761	9,903	358.67
	c) financial liabilities	1	243	(242)	-99.59
110.	Net income on other financial assets and liabilities measured at fair value through profit or loss	(20,474)	20,644	(41,118)	-199.18
	a) financial assets and liabilities designated at fair value	(33,298)	57,144	(90,442)	-158.27
	b) other financial assets mandatorily measured at fair value	12,824	(36,500)	49,324	-135.13
	120. Net interest and other banking income	2,619,681	1,799,697	819,984	45.56
130.	Net impairment losses for credit risk relating to:	(268,832)	(215,863)	(52,969)	24.54

	a) financial assets measured at amortised cost b) financial assets measured at fair value through other comprehensive income	(269,330) 498	(215,617) (246)	(53,713) 744	24.91 -302.44
140.	Gains (Losses) from contractual modifications without derecognition	2,896	(1,198)	4,094	-341.74
	150. Net income from financial activities	2,353,745	1,582,636	771,109	48.72
	180. Net income from financial and insurance activities	2,353,745	1,582,636	771,109	48.72
190.	Administrative expenses:	(1,430,586)	(1,216,619)	(213,967)	17.59
	a) staff costs	(849,174)	(711,542)	(137,632)	19.34
	b) other administrative expenses	(581,412)	(505,077)	(76,335)	15.11
200.	Net provisions for risks and charges	(65,386)	(41,039)	(24,347)	59.33
	a) commitments and guarantees granted	10,950	(24,047)	34,997	-145.54
	b) other net provisions	(76,336)	(16,992)	(59,344)	349.25

210.	Net adjustments to property, plant and equipment	(78,682)	(66,368)	(12,314)	18.55
220.	Net adjustments to intangible assets	(36,335)	(27,714)	(8,621)	31.11
230.	Other operating expense/income	168,820	103,955	64,865	62.40
	240. Operating costs	(1,442,169)	(1,247,785)	(194,384)	15.58
250.	Gains (Losses) of equity investments	16,259	9,013	7,246	80.39
260.	Valuation differences on property, plant and equipment and intangible assets measured at fair value	(386)	(1,689)	1,303	-77.15
270.	Impairment losses on goodwill	(6,768)	-	(6,768)	n.s.
275.	Gain on a bargain purchase	-	1,188,433	(1,188,433)	-100.00
280.	Gains (Losses) on disposal of investments	226	(310)	536	-172.90
	290. Profit (Loss) from current operations before tax	920,907	1,530,298	(609,391)	-39.82
300.	Income taxes on current operations for the period	(201,396)	(135,324)	(66,072)	48.83
	310. Profit (Loss) from current operations after tax	719,511	1,394,974	(675,463)	-48.42
	330. Profit (Loss) for the period	719,511	1,394,974	(675,463)	-48.42
340.	Profit (Loss) for the period pertaining to minority interests	(14,960)	(10,166)	(4,794)	47.16
	350. Profit (Loss) for the period pertaining to the Parent Company	704,551	1,384,808	(680,257)	-49.12

Performance ratios 1

Financial ratios	30.06.2023	2022 (*)
Structural ratios
Net loans to customers/total assets	62.26%	59.86%
Net loans to customers/direct deposits from customers	78.38%	79.40%
Financial assets/total assets	21.29%	20.13%
Gross non-performing loans/gross loans to customers	2.74%	3.20%
Net non-performing loans/net loans to customers	1.14%	1.41%
Texas ratio2	26.04%	32.29%
Profitability ratios
ROE3	19.90%	7.94%
ROTE 4	20.03%	8.30%
ROA5	1.01%	0.35%
Cost to income ratio6	51.27%	64.26%
Cost of credit risk7	0.30%	0.21%
Prudential supervision ratios	30.06.2023	2022 (*)
Own Funds (Fully Phased) (in thousands of Euro)
Common Equity Tier 1 (CET1)	7,451,222	6,379,995
Own Funds	9,386,687	8,292,408
Risk-weighted assets (RWA)	53,138,340	52,989,278
Fully Phased capital ratios and liquidity ratios
Common Equity Tier 1 Ratio (CET1 Ratio) - pro-forma 8	14.02%	12.04%
Tier 1 Ratio (T1 Ratio) - pro-forma 9	14.31%	12.32%
Total Capital Ratio (TC Ratio) - pro-forma10	17.67%	15.65%
Liquidity Coverage Ratio (LCR)	157.1%	195.3%
Net Stable Funding Ratio (NSFR)	126.1%	127.3%

(*) The comparative balance sheet ratios, together with ROE, ROTE and ROA, have been calculated on figures at 31 December 2022 as per the Consolidated financial statements as at 31 December 2022, while income statement ratios have been calculated on figures at 30 June 2022 as per the Consolidated half-year report as at 30 June 2022.

¹ The information provided is consistent with the ESMA document of 5 October 2015 "Guidelines on Alternative performance measures", aimed at promoting the usefulness and transparency of Alternative Performance Measures included in prospectuses or documents containing regulated information. To construct ratios, reference was made to the balance sheet and income statement captions of the reclassified statements providing an operational management view as per the present Press Release.

² The Texas ratio is calculated as total gross non-performing loans on net tangible equity (Group and minority interests) plus impairment provisions for non-performing loans. 3 ROE is calculated as the ratio of annualised net profit for the period to the Group's average shareholders' equity not including net profit.

4 ROTE is calculated as the ratio of annualised net profit for the period to the Group's average shareholders' equity (i) including net profit for the period, stripped of the portion allocated to dividends then annualised and (ii) excluding intangible assets and equity instruments.

5 ROA is calculated as the ratio of annualized net profit for the period (including net profit for the period pertaining to minority interests) and total assets. 6

The Cost to income ratio is calculated on the basis of the reclassified income statement (operating costs/operating income); when calculated on the basis of the schedules provided by the 8th update of Bank of Italy Circular no. 262, the Cost to income ratio is 55.05% (69.33% at 30 June 2022 as per the Consolidated interim report as at 30 June 2022).

⁷ The Cost of credit risk is calculated as net impairment losses to loans to customers on net loans to customers at 30 June. 8

The pro-forma capital ratios have been calculated including the result for the period, net of the pro-quota dividends, thus simulating, in advance, the effects of the authorisation issued by the ECB for the inclusion of these profits in Own Funds pursuant to art. 26, para. 2 of the CRR.

⁹ See previous note. 10

AI assistant

Bper Banca Earnings Release 2023

4395_10-q_2023-08-02_d6b75873-775b-49c9-9ce8-b00c544a8b0f.pdf

PRESS RELEASE

CONSOLIDATED RESULTS AS AT 30 JUNE 2023