Bper Banca — Investor Presentation 2017

Feb 9, 2017

FY16 consolidated results

Alessandro Vandelli - Chief Executive Officer⁹th February 2017

Disclaimer

This document has been prepared by "BPER Banca" solely for information purposes, and only in order to present its strategies and main financial figures.

The information contained in this document has not been audited.

No guarantee, express or implied, can be given as to the document's contents, nor should the completeness, correctness or accuracy of the information or opinions herein be relied upon.

BPER Banca, its advisors and its representatives decline all liability (for negligence or any other cause) for any loss occasioned by the use of this document or its contents.

All forecasts contained herein have been prepared on the basis of specific assumptions which could prove wrong, in which case the actual data would differ from the figures given herein.

No part of this document may be regarded as forming the basis for any contract or agreement.

No part of the information contained herein may for any purpose be reproduced or published as a whole or in part, nor may such information be disseminated.

The Manager responsible for preparing the Company's financial reports, Emilio Annovi, declares, in accordance with art. 154-bis., para. 2, of the "Consolidated Financial Services Act" (Legislative Order No. 58/1998), that the accounting information contained in this document corresponds to documentary records, ledgers and accounting entries.

Emilio AnnoviManager responsible for preparing the Company's financial reports

BPER Banca S.p.A., Bank with head office in Modena Via San Carlo, 8/20 - VAT number and Business Register no. 01153230360 -Share capital fully subscribed and paid in, amounts to Euro 1,443,925,305 and is represented by 481,308,435 registered ordinary shares- Bank Registration no. 4932 ABI code 5387.6- Tel.059/2021111 – Fax 059/2022033 6 email: bpergroup@bper.it - PEC: bper@pec.gruppobper.it Member of the Interbank Deposit Guarantee Fund - Parent Company of BPER Banca Group - Registered in the Register of Banking group with code 5387.6, bper@pec.gruppobper.it - bper.it - gruppobper.it

Agenda

FY16 Results

Executive summary

Balance sheet structure

Profit and loss

Liquidity and capital adequacy

Final remarks

Annexes

Executive summary

• • Best in class capital position with low leverage and strong liquidity ratios
• CET1 ratio "Phased In" of 13.8% as of 31 Dec.'16 (13.3% Fully Phased)1
• Excess capital buffer of 655 bps (+2.1 €/bn) vs minimum regulatory requirement (SREP 2017 at 7.25%)
• B3 Leverage ratio Phased In at 6.7% one of the best vs peers; strong liquidity position with LCR and NSFR well above 100%
• •Proposal for ^a cash dividend of 6 €/cents per share
• • FY16 Net profit at 71.5 €/mn (62.1 €/mn in 2015) excluding non-recurring items and contributions relative to the Italian banking system2
• • Asset quality improvement continues along with ^a conservative approach in the provisioning policy to maintain ^a high NPEs coverage ratio:
• Gross NPEs and bad loans down respectively by 1.9% and 1.0% since Dec.'15 also thanks to bad loans disposals of c. 700 €/mn in 2016 confirming BPER's priority aim to reduce the stock
• NPEs inflows from performing loans down by 6.1% y/y (-32.5% vs 2014)
• Bad loans inflows down by 5.4% y/y (-34.5% vs 2014)
• NPEs cash coverage ratio still high at 44.5% (+32 bps vs 2015) in spite of significant bad loans disposals; unlikely to pay coverage at 23.5% up by 161 bps vs 2015
• Significant increase of flows from NPEs return to performing loans: +16.9% y/y confirming improving efficiency in NPEs managemen^t
• •Net customer loans up by 3.0% y/y on ^a like-for-like basis3 and excluding bad loans disposals in 2016
• • A new Business plan will be launched by next summer in light of the currently different economic, market and interest rates environment vs previous Business Plan assumptions

Agenda

FY16 Results

Executive summary

Balance sheet structure

Profit and loss

Liquidity and capital adequacy

Final remarks

Annexes

Direct funding

Direct Funding breakdown (%)

€ /m n	De 1 5 c	De 1 6 c	C hg De 1 ( % ) 5 v s c
Cu nt ts d s ig ht de its rre ac co un an p os	2 9, 0 1 9	3 2, 3 3 1	1 1. 4 % +
T im de its e p os	2, 4 2 4	2, 2 2 0	-8. 4 %
Re ha nts p urc se ag ree me	1, 8 6 3	1, 7 8 0	-4. 4 %
O he ho loa t rt- ter r s m ns	2, 5 8 2	2, 5 8 2	-0. 0 %
Bo ds n	7, 7 1 9	6, 1 5 6	-2 0. 2 %
bs i be d by ins itu ion l c t t tom - s u cr a us ers	2, 7 3 7	2, 6 8 8	-1. 8 %
bs i be d by d ina tom - s u cr or ry cu s ers	4, 9 8 2	3, 4 6 8	-3 0. 4 %
Ce i f ica rt tes	1 0 0	9 2	-8. 1 %
Ce i f ica f de it rt tes o p os	3, 5 4 9	2, 5 8 8	-2 7. 1 %
D ire t c to de i ts c us me r p os	4 7, 2 5 6	4 7, 7 4 8	% +1 0
/w C R Sa luz o zo	0	9 7 5	n.m

• Direct funding at 47.7 €/bn up by 1.0% since Dec.'15 (+0.5 €/bn) in spite of a significant increase of AuM/Bancassurance business; retail bonds decline -20.2% y/y (no replacement of expired bonds)

• •Current accounts and sight deposits up by 11.4% (+3.3 €/bn) since Dec.'15
• • Decrease of expensive funding from customers both short term (time deposits -8.4% since Dec. '15) and mid-long term (retail bonds and CDs down respectively -30.4% and -27.1% since Dec. '15)
• • Total wholesale funding and Covered bonds account for 2.7 €/bn in Dec.'16 (5.6% of the total direct funding). Wholesale bond maturities in 2017 of 0.2 €/bn providing flexibility to the Group's funding strategy

Direct Funding breakdown by customer segment (%)

Indirect deposits and "Bancassurance"*

Total Indirect Deposits and Bancassurance (€/mn)

•Indirect deposits and Bancassurance* up by 9.3% since Dec.'15 (3.2 €/bn):

• • AuM up by 10.6% since Dec.'15 (+1.6 €/bn); positive net inflows (+1.1 €/bn) in 2016 in spite of volatile market trends
• • significant growth in Bancassurance* up by 18.0% (+0.7 €/bn) since Dec.'15
• • AuC up by 6.0% (0.9 €/bn) since Dec.'15 mainly due to institutional clients inflows
• • Monetary and Bonds funds weigh at 53.6% of total AuM (up from 48.3% in Dec.'15), in consequence of volatile financial markets and flight to quality (Equity, Balanced, Flexible funds at 46.4% down from 51.7% in Dec.'15)

Monetary 3.4%Bond50.2%Flexible23.3%Equity 8.8%AUM composition (%) Equity, Balanced and Flexible funds46.4%Monetary and Bonds 53.6%

*: life-insurance products

(1): Total Indirect Deposits and Bancassurance includes 366 € /mn of CR Saluzzo

(2): Including CR Saluzzo total indirect Deposits and Bancassurance (3): Figures from data management system and excluding CR Saluzzo Note: figures in this page may not add exactly due to rounding differences

Balanced14.3%

Customer loans

€ /m n	De 1 5 c	De 1 6 c	C hg De 1 ( % ) 5 s c v
Cu nt ts rre ac co un	8 8 0 5,	3 9 2 5,	8. 3 % -
Mo loa rtg ag e ns	2 0 8 2 5,	2 6, 4 8 8	6 % 5. +
d fac Le ing to as es an r	3, 3 5 3	3, 3 7 3	0. 6 % +
bt it ies De se cu r	3 4 9	3 2 2	7. 6 % -
Ot he ion r tr ct an sa s	9, 0 3 9	9, 9 1 9	9. 7 % +
Ne t loa to tom ns cu s er s	4 3, 7 0 3	4 5, 4 9 4	4. 1 % +
/w C R Sa luz o zo	0	6 0 6	n.m
1 Ne t lo a l ike -fo r-li ke ba sis s t tom an o c us ers on d e xcl ud ing ba d l di als in 20 16 an oa ns sp os	4 3, 7 0 3	4 5, 0 1 2	% 3. 0 +

Customer loans breakdown (net figures; €/mn ) Customer loans breakdown by customer segment (%)

Non-performing exposures (1/2): breakdown and coverage ratios

NPEs breakdown (% on total net loans; % on total gross loans)

• • Gross NPEs down by 221 €/mn y/y (-1.9% y/y) mainly thanks to bad loans disposals in 2016 of c. 700 €/mn GBV
• •Gross bad loans ("Sofferenze") down by 1.0% y/y
• •Gross NPEs stock on total loans down to 22.1% from 23.3% in Dec.'15
• • Cash coverage ratio on NPEs further strengthening at 44.5% (44.2% in Dec.'15) increased in spite of bad loans disposals. In detail:
• •bad loans coverage at 57.3% (58.2% in Dec.'15)
• •Unlikely to pay coverage increased to 23.5% in Dec.'16 (21.9% in Dec.'15)
• •past due at 7.8% in Dec.'16 (10.0% in Dec.'15)
• •88.5% of total net NPEs are collateralized (78.4% fully collateralized)

Cash coverage trend (%)

	Dec 15	Mar 16	Jun 16	Sept 16	Dec 16
Bad Ioans ("Sofferenze")	58.2%	58.1%	58.5%	57.4%	57.3%
including write-off	64.4%	64.2%	64.3%	63.1%	62.9%
Unlikely to pay	21.9%	22.1%	22.1%	22.2%	23.5%
Past due	10 0%	$91\%$	8.2%	8.6%	7.8%
NPEs	44.2%	44.6%	45.0%	43.7%	44.5%
including write-off	49.7%	50.0%	50.1%	48.6%	49.4%
Performing exposures	0.5%	0.5%	0.5%	0.5%	0.5%
Total loans	10.7%	10.8%	11.0%	10.5%	10.2%

Note 1: figures in this page may not add exactly due to rounding differences

Note 2: including CR Saluzzo: NPEs Gross Loans for 136 €/mn and NPEs Net Loans for 68.4 €/mn

Non-performing exposures (2/2): inflows and coverage ratios

(1): Unlikely to pay for 2013 and 2014 calculated on pro-forma basis.

(2): Bad Loans coverage > 100% including real guarantees «capped» at the value of loans and > 150% at Fair value (Dec.'16). Source data management system.

(3): bad laons coverage decrease y/y due to c. 700 €/mn bad loans disposals in 2016

Financial Assets

Financial Assets breakdown (€/mn; %)

H F T	C F V	A F S	H T M	To ta l	% to ta l o n
3 3 5	3	5 9, 8 5	6 2, 5 1	1 2, 7 5 6	93 .0%
5 6		3 3 0		3 6 8	2.7 %
9 6	5	2 2 7		3 9 3	2.9 %
0 1 9		3		1 9 3	1.4 %
6 7 7	8 4	1 0, 4 3 3	2, 1 6 5	1 3, 1 0 7	100 .0%
7 9 0	8 7	8, 0 2 2	2, 6 6 4	1 1, 5 6 3
-14 .4%	-2. 7%	+3 0.1 %	-5. 6%	+1 8.6 %
		2 2

* Derivatives for hedging purposes related to HFT portfolio

Note: 362.8 €/mn of Loans and Receivables (banks and customers) not included

• •Financial assets portfolio at 13.7 €/bn, up by 2.1 €/bn since Dec.'15
• • Bond portfolio at 12.47 €/bn of which 5.9 €/bn of Italian Government bonds (6.3 €/bn in Dec.'15) with a duration of 3.0y (3.3y in Dec.'15)1
• • Italian govies account for 116.5% of tangible shareholders' equity in Dec.'16 significantly down from 122.7% in Dec.'15
• • Positive AFS reserves at 108.4 €/mn (net of taxes) in Dec.'16 of which 37.3 €/mn on government bonds (respectively 161.8 €/mn and 90.2 €/mn in Dec.'15)
• • Implicit positive reserves of 121.8 €/mn in Dec.'16 on HTM portfolio (net of taxes) calculated as difference between the fair value and the book value (130 €/mn in Dec.'15)

Bond portfolio by issuer (€/bn)

(1): duration in years taking into account hedging

Note: figures in this page may not add exactly due to rounding differences

Agenda

FY16 Results

• Executive summary
• Balance sheet structure

Profit and loss

Liquidity and capital adequacy

Final remarks

Annexes

2016 Reclassified consolidated Profit & Loss (1)

						2 0	1 5			2 0	1 6
Ca tio p ns	( € /m ) n	De 1 5 c	De 1 6 c	C hg /y ( % ) y	1 Q 1 5	2 Q 1 5	3 Q 1 5	4 Q 1 5	1 Q 1 6	2 Q 1 6	3 Q 1 6	4 Q 1 6
10+2 0	Ne in inc t ter t es om e	1, 2 2 7. 5	1, 1 7 0. 4	-4. 7 %	3 1 4. 1	3 0 8. 4	3 0 2. 0	3 0 3. 0	2 9 6. 8	2 9 3. 6	2 8 5. 7	2 9 4. 3
40+ 50	Ne iss ion t c om m s	7 2 6. 7	7 1 2. 7	-1. 9 %	1 7 9. 2	1 8 0. 6	1 7 7. 9	1 8 9. 0	1 7 7. 1	1 8 1. 0	1 7 4. 8	1 7 9. 8
	Co Inc re om e	1, 9 5 4. 2	1, 8 8 3. 1	-3. 6 %	4 9 3. 3	4 8 9. 0	4 7 9. 9	4 9 2. 0	4 7 3. 9	4 7 4. 6	4 6 0. 5	4 7 4. 1
70	D iv i de ds n	1 6. 0	9. 9	-3 8. 1 %	0. 2	1 3. 6	0. 5	1. 7	0. 1	8. 7	0. 3	0. 7
80+ 90+ 100+ 110	Tr d ing ins a g a	3 4 7. 9	1 2 0. 0	-6 5. 5 %	4 6. 1	1 5. 5	2 0. 4	2 6 6. 0	1 5. 7	4 9. 1	2 5. 5	2 9. 8
(*) 220	O he / re t ts r c os ve nu es	2. 5 5	4. 2 5	3. 3 % +	1 4 5.	9. 3	1 2. 3	1 5. 5	1 5. 5	1 6. 4	1 3. 6	8. 7
	Op ing Inc t er a om e	2, 3 0. 6 7	2, 0 6 3 7.	-1 2. 8 %	0 5 5 5.	2 3 5 7.	1 3. 0 5	2 7 7 5.	0 2 5 5.	4 8. 8 5	0 0. 0 5	1 3. 3 5
a) 180	S f f e ta xp en se s	8 2 5. 1 -	7 6 9. 1 -	-6. 8 %	-1 9 9. 3	1 9 6. 9 -	2 3 2. 4 -	1 9 6. 5 -	1 9 6. 6 -	2 0 1. 7 -	1 7 6. 2 -	1 9 4. 7 -
180 b) () & (*)	A dm in is ive tra t ex p en se s	4 0 0. 6 -	4 1 7. 2 -	4. 1 % +	-9 3. 6	1 0 3. 4 -	9 5. 7 -	1 0 7. 9 -	1 0 1. 1 -	1 0 2. 8 -	1 0 6. 1 -	1 0 7. 3 -
200 +210	De ia ion & Am iza ion t t t p rec s or s	8 0. 2 -	8 0. 6 -	0. 4 % +	-1 7. 3	1 7. 1 -	1 7. 5 -	2 8. 3 -	1 7. 1 -	2 0. 4 -	1 7. 9 -	2 5. 1 -
	Op t ing ts er a co s	1, 3 0 5. 9 -	1, 2 6 7. 0 -	-3. 0 %	-3 1 0. 3	3 1 7. 4 -	3 4 5. 6 -	3 3 2. 7 -	3 1 4. 8 -	3 2 4. 9 -	3 0 0. 2 -	3 2 7. 1 -
	Ne t Op t ing Inc er a om e	1, 0 6 4. 6	8 0 0. 3	-2 4. 8 %	2 4 4. 8	2 1 0. 0	1 6 7. 4	4 4 2. 5	1 9 0. 4	2 2 4. 0	1 9 9. 8	1 8 6. 2
a) 130	Lo los is ion an s p rov s	7 0 5. 8 -	6 1 9. 8 -	-1 2. 2 %	-1 4 7. 5	1 5 0. 2 -	1 2 7. 2 -	2 8 0. 9	1 1 4. 2 -	1 6 1. 9 -	1 2 4. 6 -	2 1 9. 1 -
130 b)+c )+d)	O he is ion t r p rov s	3 2. 0 -	3 9. 3 -	2 2. 9 % +	-2. 5	7. 5 -	7. 9 -	1 4. 1 -	7. 3 -	1 1. 4	1. 9 -	4 1. 5 -
	To ta l p is ion ro s v	7 3 7. 8 -	6 5 9. 1 -	-1 0. 7 %	-1 5 0. 0	1 5 7. 8 -	1 3 5. 2 -	2 9 5. 0 -	1 2 1. 5 -	1 5 0. 6 -	1 2 6. 4 -	2 6 0. 6 -
190	Ne Pr is ion for R is ks d C ha t ov s an rg es	4 4 7. -	3 2. 6 -	-3 1. 1 %	-1 4. 1	1 2. 4 -	6. 6 -	1 4. 3 -	9. 6 -	1 2. 5 -	8 5. -	4. 7 -
(**)	Co ( S G S, S ) i bu ion Fu ds R F, D F I T D- V tr t to n n	6 6. 3 -	7 3. 5 -	1 0. 8 % +	0. 0	1 0. 3 -	8. 9 -	4 7. 2 -	1 5. 0 -	1 1. 4 -	1 7. 6 -	2 9. 5 -
240 +260 +270	Ne he inc t o t r om e	0. 4	2 4. 6 -	n.m	-1. 8	2 7.	6. 8 -	1. 8	3. 2	4. 1 -	2. 5	2 6. 2 -
280	Pr f i ( los ) be fo t tax o s re es	2 1 3. 5	1 0. 5	n.m	8. 9 7	3 6. 7	1 0. 1	8 9 7.	4 4 7.	4 4 5.	2. 4 5	1 3 4. 7 -
290	Ta xe s	5. 7	5. 3	-7. 8 %	-2 7. 2	7. 4 -	2. 3 -	4 2. 6	1 4. 1 -	1 3. 7 -	1 2. 8 -	4 5. 9
310	Ne f i f a de d isp t p t o ts ro ss e un r	0. 0	0. 0	0. 0 % +	0. 0	0. 0	0. 0	0. 0	0. 0	0. 0	0. 0	0. 0
320	Ne t p f i t ( los ) ro s	2 1 9. 2	1 5. 8	n.m	5 1. 7	2 9. 3	7. 7	1 3 0. 5	3 3. 3	3 1. 7	3 9. 6	8 8. 8 -
330	M ino i In ty ter ts r es	1. 4	1. 5 -	n.m	-6. 5	1. 3 -	1. 7	6 7.	2. 4 -	2. 0	3. 2 -	1. 9
340	Pr f i t ( los ) fo t he io d o s r p er	2 2 0. 7	1 4. 3		4 5. 2	2 8. 0	9. 4	1 3 8. 1	3 1. 0	3 3. 8	3 6. 4	8 6. 9
	ta in ing to t he Pa t Co p er re n mp an y			n.m								-
	f Pr i t e lu d ing ing i te o xc n on re cu rr ms	4 6. 1	5 5. 1	1 9. 5 % +
	Pro fit ite & Co ibu tio o F ds ntr n t ex . n on re c. ms un	6 2. 1	1. 7 5	1 5. 1 % +
	/ inc t co s om e	5 5. 1 %	6 1. 3 %		5 5. 9 %	6 0. 2 %	6 7. 4 %	4 2. 9 %	6 2. 3 %	5 9. 2 %	6 0. 0 %	6 3. 7 %
	/ ( in inc iss ion ) t t ter t t c co s ne es om e + ne om m s	6 6. 8 %	6 7. 3 %		6 2. 9 %	6 4. 9 %	7 2. 0 %	6 7. 6 %	6 6. 4 %	6 8. 4 %	6 5. 2 %	6 9. 0 %
	( ) f c d i bp t o t co s re s	1 6 2	1 3 6		4 3	5 3	9 2	4 6	6 2	7 3	9 2	4 8
	f i / l inc t p t to ta ne ro om e	9. 2 %	0. 8 %		9. 3 %	5. 6 %	1. 5 %	1 6. 8 %	6. 6 %	5. 8 %	7. 9 %	1 7. 3 % -
	tax te ra	2. 7 %	5 0. 0 %		3 4. 5 %	2 0. 1 %	2 3. 0 %	4 8. 5 %	2 9. 7 %	3 0. 1 %	2 4. 5 %	3 4. 1 %

CR Saluzzo's P&L has been included in BPER Banca Group's consolidated P&L since 1 October 2016; up to 30.09.2016 the financial results of CR Saluzzowere accounted in the Profit (Loss) considering Bper's shareholding before the purchase of a controlling interest2

excluding non recurring items and contribution to Funds3

Growth of profitability

Note: n.m.: Not meaningful; Figures in this page may not add exactly due to rounding differences

(2) See note on page 27 (3) See page 27

(1): list of all non-recurring and other items for 2015/2016 on page 27; other explanations on 4Q16 reclassified consolidated Profit & Loss on page 35

(*) Caption exposed net of "Recovery of taxes" reallocated, for better representation, at caption 180 b) "Other administrative costs", where relative tax costs are accounted (118.7 €/mn in 2016 and 123,3 €/mn in 2015) (**): see details on page 20 and 28

Core income

Core income (€/mn; %)

( € /m ) n	De 1 5 c	De 1 6 c	C hg /y y
			A bs	%
Ne in inc t te t res om e	1, 2 2 7. 5	1, 1 0. 4 7	1 5 7. -	4. % 7 -
Ne iss ion t c om m s	2 6. 7 7	1 2. 7 7	1 4. 0 -	1. 9 % -
Co In re co m e	1, 9 5 4. 2	1, 8 8 3. 1	7 1. 1 -	3. 6 % -

• • Core income down by 3.6% y/y (-71.1 €/mn). Net Interest Income (NII) down by 4.7% still affected by the low/negative interest rates environment. Net commissions down by 1.9% impacted by the reduction of fees income related to traditional commercialbusiness.
• •4Q16 Core income up vs 3Q16 (+3.0% q/q)
• • Progressive re-mix in favour of net commissions (37.8% in Dec.'16 vs 37.2% in Dec.'15)

Core income evolution (€/mn) Core income breakdown (%)

( % )	De 1 5 c	De 1 6 c
Ne in inc t te t res om e	6 2. 8 %	6 2. 2 %
Ne iss ion t c om m s	3 7. 2 %	3 7. 8 %
Co In re co m e	1 0 0. 0 %	1 0 0. 0 %

Note: P&L of CR Saluzzo is included in BPER Banca Group consolidated P&L from 1 October 2016. The main items of CR Saluzzo as of Dec.16 are the following: NII 3.2 €/mn, net commissions 2.1 €/mn

Core income (1) : Net Interest Income

• • NII down by 4.7% y/y mainly due to the effects of low/negative interest rates environment and up by 3.0% q/q
• • Main trends:
• • increasing pressure on asset yield only partially offset by reduction of cost of funding
• • spread up by 3 bps q/q affected by:
  • • the benefit from the ECB "sweetener" for 8.3 €/mn accounted in 4Q16 on 5.1 €/bn ECB TLTRO2 exposure¹
  • •the inclusion of CR Saluzzo in the Group.
• • positive volume effect mainly due to increase of customer loans and financial assets.
• • securities portfolio contribution to NII of 203.3 €/mn in 2016 up by 1.7% y/y (200.0 €/mn in 2015)

Net Interest Income evolution (€/mn) Net Interest Income contribution* (%)

(*) Figures referred to total Assets and Liabilities (data management syestem)

(1) See details on page 22 Note: P&L of CR Saluzzo is included in BPER Banca Group consolidated P&L from 1 October 2016. CR Saluzzo NII as of Dec.16: 3.2 €/mn Figures in this page may not add exactly due to rounding differences

Core income (2): Net Interest Income - Spread evolution

Spread (%)

Spread contribution (%)

Net Interest Income contribution1 (€/mn)

Mark up & mark down (%)

(1): figures from 2016 Consolidated Profit and Loss - Item 10 «Interest and similar income» and Item 20 «Interest and similar expense»

Core income (3): Net Commissions

Net Commissions breakdown (€/mn; %) Net Commissions evolution (€/mn)

	De 1 5 c	( % ) on to l ta	De 1 6 c	( % ) on to l ta	C hg /y ( y % )
In d ire de its d ba ct p os an nc as su ran ce	19 8. 1	27. 3%	19 7.4	27. 7%	-0. 4%
( C) As ts und tod Au se er cus y	18. 4		15 .5		-16 .2%
As und ( Au M) ts ent se er ma nag em	146 .7		14 5.8		-0. 6%
Ba nca ss ura nce	33. 0		36 .1		+9 .4%
Cr d it c ds l lec ion d p t nts e ar , co s a n ay me	15 2.4	21. 0%	14 2.3	20. 0%	-6. 6 %
Lo d g tee an s a n ua ran s	3 3 9. 8	46. 8%	3 29 .6	46. 2%	-3. 0 %
Ot he iss ion r c om m s	3 6. 4	4.9 %	43 .4	6.1 %	+1 9. 2%
To ta l	7 2 6. 7	100 .0%	7 1 2.7	100 .0%	-1. 9 %

• Net commissions down by 1.9% y/y (-14,0 €/mn y/y) mainly driven by the reduction of fees income related to traditional commercial business :

• •loans and guarantees down by 3.0% y/y (-10.2 €/mn)
• • credit cards, collections and payments down by 6.6% y/y (-10 .1 €/mn)
• • indirect deposits and Bancassurance down by 0.4% y/y (-0.8 €/mn) o/w:
• •AuM & Bancassurance +1.2% y/y;
• •AuC: -16.2% y/y
• • AuM up-front fees of 25.8 €/mn in 2016 (29.9 €/mn in 2015) weighing 3.6% on total net commissions

Note: figures in this page may not add exactly due to rounding differences

Note: P&L of CR Saluzzo is included in BPER Banca Group consolidated P&L from 1 October 2016. CR Saluzzo net commissions as of Dec.16: 2.1 €/mn;

Dividends and Trading income

Dividends and Trading income (€/mn)

Dividends and Trading income breakdown (€/mn; %)

	D 1 5 e c	D 1 6 e c	C / ( % ) h g y y
D iv i de ds n	1 6. 0	9. 9	3 8. 1 % -
Tr d ing inc * a om e	3 4 7. 8	1 2 0. 0	6 5. 5 % -
/ Re l ize d g in los a a s	3 1 7. 7	1 0 3. 1	6 7. 5 % -
P lus	3 8. 1	1 9. 7	4 8. 3 % -
M inu s	1 1. 9 -	1 2. 5 -	4. 9 % +
O F V	3. 1 -	1. 8	n.m
O he t rs	7. 0	7. 9	1 3. 3 % +
To ta l	3 6 3. 8	1 2 9. 9	6 4. 3 % -

• Dividends and trading income at 129.9 €/mn down by 64.3% y/y

• • Trading income at 120.0 €/mn includes non-recurring profits:*
• • 4.7 €/mn in 4Q16 related to the earn-out for the sale of ICBPI
• • 30.2 €/mn in 2Q16 and 2.7 €/mn in 3Q16 relative to the disposal of the stake in Visa Europe at Group
• •Dividends: 9.9 €/mn in 2016 (16.0 €/mn in 2015)

Trading gains* excluding dividends (€/mn)

n.m.: Not meaningful

*See details on pag.27

Note: figures in this page may not add exactly due to rounding differences Note: P&L of CR Saluzzo is included in BPER Banca Group consolidated P&L from 1 October 2016. CR Saluzzo dividend and trading as of Dec.16: 0.6 €/mn;

Operating costs

Operating Costs (€/mn) -3.0%

Operating costs breakdown (€/mn; %)

Op t ing ts ( € /m ) er a co s n	De 1 5 c	De 1 6 c	C hg /y ( % ) y
S f f e ta xp en se s	8 2 1 5.	6 9. 1 7	6. 8 % -
O he dm in is ive t tra t r a ex p en se s	4 0 0. 6	4 1 7. 2	4. 1 % +
D & A	8 0. 2	8 0. 6	0. 4 % +
Op t ing ts er a co s	1, 3 0 5. 9	1, 2 6 7. 0	3. 0 % -
Re du da lan n nc p y	5 8. 6	1. 0
Op ing -fo t ts er a co s p ro rm a	1, 2 4 3 7.	1, 2 6 6. 0	1. % 5 +
C R Sa luz zo		7. 7
Op t ing ts -fo d o er a co s p ro rm a a n n a -fo l i ke l i ke ba is r- s	1, 2 4 7. 3	1, 2 5 8. 3	0. 9 % +

• •Operating costs up by 0.9% y/y pro-forma and on ^a like-for-like basis
• • Staff costs down by 6.8% y/y and broadly stable pro-forma and on ^a like-for-like basis
• • Administrative expenses up by 4.1% y/y (+1.6% y/y pro-forma and on ^a like-for-like basis)
• •running costs -1.2% y/y
• •Business Plan projects expenses up by 41.0% y/y
• •D&A broadly unchanged (+0.4%)

Operating costs breakdown (€/mn; %)

S ta f f e ( € /m ) xp en se s n	De 1 5 c	De 1 6 c	C hg /y ( % ) y
S f f e ta xp en se s	8 2 5. 1	7 6 9. 1	% 6. 8 -
Re du da lan n nc y p	8. 6 5	1. 0
C R Sa luz zo		3. 3
S ta f f e -fo d o l i ke xp en se s p ro rm a a n n a
fo l i ke ba is r- s	7 6 6. 4	7 6 4. 8	0. 2 % -
O t he dm in is tra t ive ( € /m ) r a ex p en se s n	De 1 5 c	De 1 6 c	C hg /y ( % ) y
O he A dm in is ive t tra t r ex p en se s
( ") "R ing l i ke -fo l i ke ba is ts un n co s on a r- s	3 7 3. 8	3 6 9. 4	1. 2 % -
Bu ine lan j ts s ss p p ro ec ex p en se s	2 6. 1	3 6. 8	4 1. 0 % +
O t he dm in is tra t ive r a ex p en se s p ro
fo d o l i ke -fo -l i ke ba is rm a a n n a s	3 9 9. 9	4 0 6. 2	1. 6 % +
No ing i tem n r ec urr s	0. 7	8. 7
C R Sa luz zo		2. 4
O t he dm in is tra t ive r a ex p en se s	4 0 0. 6	4 1 7. 2	% 4. 1 +

1) 2016 non-recurring items of 8.7 €/mn of which: 1) 3.6 €/mn of insurance expenses related to insurance policies issued by SACE (Italian Export Credit Agency - "ECA") in favor of BPER BANCA as Confirming Bank of Documentary Credits issued by Foreign Banks or Financial Institution in favor of Italian exporters (fully recovered from customers and accounted at Caption 220); 0.6 €/mn one-off tax related to Banco di Sardegna/Banca di Sassari deal; 4.5 €/mn one-off advisory fee for special projects developed in 2016 Note: figures in this page may not add exactly due to rounding differences

| Strettamente riservato e confidenziale Provisions, Net Provisions for Risks and Charges and Contribution to Funds

Provisions breakdown (€/mn)

Loan Loss Provisions evolution (€/mn)

Note: figures in this page may not add exactly due to rounding differences (1) (2) for details see on pag. 13, pag. 27-28 -35

(3): 2016 Contribution to Funds (SRF, DGS, FITD-SV): for accounting allocation see details on pag. 28

• • Total provisions down by 10.7% y/y (-78.7 €/mn):
• •Loan Loss Provisions down by 12.2% y/y (-86.0 €/mn)
• • Other Provisions up by 22.9% y/y(+7.3 €/mn), including:
  • • Net adjustments to financial AFS (51,8 €/mn in 2016): 1) impairment of Atlante Fund (28,3 €/mn ) and 2) impairment related to CR Cesena (2,5 €/mn )
  • • Net adjustments to other assets (writebacks) are positive for 12.5 €/mn and including an extraordinary writeback of 11.0 €/mn relative to an allocation to the Interbank Deposit Guarantee Fund ("FITD-SV") for Banca Tercas accounted in 2Q16 (a new contribution to FITD-SV for ^a broadly equivalent amount was accounted in 2Q16)
• •Cost of credit at 136 bps in 2016 (162 bps in 2015)

Net Provisions for Risks and Charges (€/mn)

	De 1 5 c	De 1 6 c	C hg /y ( % ) y
Ne Pr is ion for R is ks d C ha ¹ t ov s a n rg es	4 7. 4	3 2. 6	-3 1. 2 %

• Net provisions for Risks and Charges at 32.6 €/mn in 2016 down by 31.2% y/y (-14.8 €/mn y/y)

Contribution to Funds (€/mn)

	c 1 De 5	c 1 6 De	Ch /y ( % ) g y
Co ibu tio o F ds /w :² ntr n t un o	66 .3	73 .5	% +1 0.8
ord ina SR F ry	13 .3	15 .1	+1 3.1 %
ord ina SR F tra ex ry	40 .0	34 .9	-12 .7%
ord ina D G S ry	8.2	16 .9	+1 06 .3%
So ord ina lid ari Fu nd tra to ty ex ry	4.0	-4. 0	n.m
ite -ba ck FIT D- SV fo r B Te wr an ca rca s		-0. 8	n.m
FIT D- SV fo r B Te an ca rca s	0.8	11 .3	n.m

CR Saluzzo loan loss provisions as of 31.12.16: 2.7 €/mn,

Agenda

FY16 Results

• Executive summary
• Balance sheet structure
• Profit and loss

Liquidity and capital adequacy

Final remarks

Annexes

Eligible assets and counterbalancing capacity

Total eligible Assets evolution* (€/mn) Eligible Assets Pool Composition (%)

• •Counterbalancing capacity ("CBC") in Dec.'16 at 13.1 €/bn of which 4.4 €/bn unencumbered
• •ECB exposure in Dec.'16 of 5.1 €/bn totally composed of TLTRO2 operations (4.1 €/bn TLTRO2 in Jun.'16 and 1 €/bn TLTRO2 in Dec.'16)
• •Max. amount of new TLTRO2 to borrow of 9 €/bn

Basel 3 Phased in regulatory capital (AIRB)

B3 Common Equity Tier 1 Ratios (%) *

Regulatory capital & ratios Capital requirements

	B 3 P h d i a s e n
€ / m n	De 1 5 c	Ju 1 6 n	Se t 1 6 p	De 1 6 c
	Sta nd d ar	AIR B	AIR B	AIR B
Co Eq i T I E R 1 ty mm on u	4, 6 2 9	4, 5 6 3	4, 5 8 3	4, 4 9 8
T I E R 1	4, 6 7 1	4, 5 8 1	4, 6 1 1	4, 5 2 6
Ow Fu ds n n	5, 1 3 4	5, 0 4 9	5, 0 6 1	4, 9 5 8
To l R W A ta	4 0, 1 0 2	3 1, 4 8 8	3 1, 6 7 5	3 2, 5 9 3
Co Eq i T I E R 1 Ra io ty t mm on u	1 1. % 5	1 4. % 5	1 4. % 5	1 3. 8 %
T I E R 1 Ra io t	1 1. 7 %	1 4. 6 %	1 4. 6 %	1 3. 9 %
To ta l Ca i ta l Ra t io p	1 2. 8 %	1 6. 0 %	1 6. 0 %	1 5. 2 %

• • CET1 ratios as of Dec.'16:
• •Phased In at 13.80% (14.47% in Sept.'16)
• • Fully Phased at 13.27% (14.13% in Sept.'16) down by 86 bps since Sept.'16 mainly due to:
• Loans growth and CR Saluzzo consolidation (RWA): -41 bps
• decrease of AFS reserve: -25 bps
• retained earning decrease, intangible assets increase and others: c. -20 bps
• • Total RWA increased to 32.6 €/bn in Dec.'16 (31.7 €/bn in Sept.16; +0.9 €/bn)
• • Net regulatory AFS reserves at +99.6 €/mn in Dec.16 (+180.9 €/mn in Sept.'16)

f R i t D 1 6 e q r e m e n s a s o e c. u	€ / m n	%
Cr d i is k t r e	2, 1 8. 1 7	8 3. % 5
Cr ( C ) d i Va lua ion A d j V A t t tm t e us en	2 3. 8	0. 9 %
Ma ke is k t r r	5 2. 4	2. 0 %
Op ing is ks t era r	2 7 5. 6	1 0. 6 %
O he la ire t tor ts r re g req me n u y u	7 7. 7	3. 0 %
To ta l	2, 6 0 7. 6	1 0 0. 0 %

(*): The Fully Phased Common Equity Tier 1 ("CET1") ratio, estimated in January 2019 in accordance with the new Basel 3 regulations and the Phased In CET1 ratio have been calculated taking into account the profit for the period allocable to equity.

Page | 23 The comparative ratios at 31 December 2015 are presented in the pro-forma version, taking into account the share of profit realised in the second half of 2015 that is allocable to equity (€ 118.6 million, equal to around 30 bps); to date, this figure is formally confirmed as it has already approved by the Bank's shareholders.

Agenda

FY16 Results

• Executive summary
• Balance sheet structure
• Profit and loss
• Liquidity and capital adequacy

Final remarks

Annexes

Final remarks

Strong capital solidity, large extra-buffer and low leverage:

• •AIRB validation by ECB in Jun.'16
• •13.8% CET1 Phased in (13.3% Fully Phased1), best in class vs peers in Italy
• •+655 bps (+2.1 €/bn) of excess capital above SREP 2017 requirement (7.25%)
• •6.7% B3 leverage ratio Phased in (6.5% Fully Phased)

NPEs management strategy effectiveness: strong commitment to reduce bad loans stock further and improve recoveries, while maintaining a high NPEs coverage

• •c. 700 GBV bad loans disposals in 2016 right on target
• •Gross NPEs and bad loans significant decrease (-1.9% and 1.0% y/y)
• • NPEs inflows from performing loans down by 6.1% y/y (-32.5% vs 2014); bad loans inflows down by 5.4% y/y (-34.5% vs 2014)
• • Significant increase of flows from NPEs return to performing loans: +16.9% y/y confirming improved efficiency in NPEs management

Transformation into joint-stock company with no shareholders requesting exercise of withdrawal right

New Business Plan will be launched by next summer ahead of the previous Business Plan deadline (2017)

(1): see note on page 23

Agenda

FY16 Results

• Executive summary
• Balance sheet structure
• Profit and loss
• Liquidity and capital adequacy
• Final remarks

Annexes

Profit & Loss: main non-recurring and other items (1/2)

( € / ) m n	D 1 5 e c	D 1 6 e c	C h / ( % ) g y y
P f i t ( l ) f t h i d r o o s s o r e p e r o	2 2 0. 7	1 4. 3
C t i i t t h P t p e r a n n g o e a r e n o m p a n y			n. m
E l d i i i t x c u n g n o n r e c u r r n g e m s :
T d i ( C i 1 0 0- b ) t r a n g a p o n	2 4 3. 3 -	3 6 7. -	8 % 5 -
N i i d j A F S ( C 1 3 0- b ) t t t. t e m p a r m e n a u s o a p.		3 0. 8	n. m
S f f ( C ) i 1 8 0- t t a e p e n s e s a p o n a x	5 8. 6		n. m
( C ) A d i i i i 1 8 0- b t t t m n s r a e e p e n s e a p o n v x	4 0. 0	3 4. 9	1 3 % -
G ( ) f ( C ) i L d i l i 2 6 0 t t a n s o s s e s o n s p o s a o n e s m e n s a p. v		3 2. 9	n. m
( C ) T d i i i 2 9 0 d 3 3 0 t t t a e s a n m n o r n e r e s s a p. a n x y	2 9. 9 -	2 0. 2 -	3 3 % -
P f i t l d i i i t r o e x c u n g n o n r e c u r r n g e m s	4 6. 1	5 5. 1	2 0 %
C i b i F d S R F D G S t t t o n r u o n o u n s	2 6. 3	2 7. 1	3 %
T d i i i t t t a x e s a n m n o r y n e r e s s	1 0. 3 -	1 0. 9 -	6 %
P f i l d i i i & F d t t r o e x c u n g n o n r e c u r r n g e m s u n s	6 2. 1	1. 7 5	1 % 5

Profit & Loss: main non-recurring and other items (2/2)

I te m		Ca t ion p	€ /m n	De ip t ion sc r
6
No n-r ec ur	ing ite r	ms
	2 Q 1 6	Tr d ing ( Ca ion 10 0- b ) t a p	+3 0. 2	To l ca ita l g in fro V I S A Eu d isp l ta p a m rop e os a
	3 Q 1 6	( Ca ) Tr d ing t ion 10 0- b a p	+2 .7	Ca fro S ita l g in V I A Eu d isp l p a m rop e os a
	4 Q 1 6	Tr d ing ( Ca ion 10 0- b ) t a p	+4 .7	Ea for he le f I C B P I t t rn- ou sa o
		Ne imp irm d j A F S ( Ca 13 0- b ) t t a t. t a en us o p.	-28 .3	Imp irm At lan Fu d t te a en n
		Ne imp irm d j A F S ( Ca b ) t t a t. t 13 0- a en us o p.	-2. 5	Imp irm C. R. Ce ( "F I T D- S V ") t a en se na
		Ga ( ) f ( Ca ) ins Lo d isp l o inv tm ts 26 0 ss es on os a es en p.	-3 2.9	Imp irm t o dw i l l a en n g oo
		A dm in ist ive ( Ca ion 18 0- b ) rat t ex p en se p	-3 4.9	Ex d ina i bu ion he S ing le Re lut ion Fu d ( "S R F ") tra ntr t to t or ry co so n
		To ta l P lus	3 7. 6 +
		To l M inu ta s	9 8. 6 -
O te ite r ms	1 Q 1 6	A dm in ist ive ( Ca ion 18 0- b ) rat t ex p en se p	-15 .0	Or d ina i bu ion he S ing le Re lut ion Fu d ( "S R F ") ntr t to t ry co so n
	2 Q 1 6	A dm in ist ive ( Ca ion 18 0- b ) rat t ex p en se p	-0 .1	Or S ( "S ") d ina i bu ion he ing le Re lut ion Fu d R F ntr t to t ry co so n
	3 Q 1 6	A dm in ist ive ( Ca ion b ) rat t 18 0- ex p en se p	-17 .6	Or d ina i bu ion he De its Gu Sc he ( "D G S ") ntr t to t nte ry co p os ara e me s
	4 Q 1 6	( Ca ) A dm in ist rat ive t ion 18 0- b ex p en se p	+0 .7	Wr ite -ba k fro he De its Gu Sc he ( "D G S ") t nte c m p os ara e me s
		A d j dw i l l ( Ca ion 16 0 ) tm ts to t us en g oo p	+4 .0	fro So Wr ite -ba k l i da ity Fu d c m r n
		Ot he ing ha / inc ( Ca ion 22 0 ) t t r o p era c rg es om e p	+0 .8	Wr ite -ba k fro Int ba k De it Gu Fu d Vo lou nte nta c m er n p os ara e n ry
				Sc he ( "F I T D- S V ") for he f Ba Te t me re sc ue o nc a rca s
		To ta l P lus	+5 .5
		To ta l M inu s	3 2.7 -
No n-r ec ur	ing ite r 2	ms Sta f f e Ca t ion 18 0-a	-1 .8	So Re du da inc t ive d c tr i bu t ion he l i da Fu
	Q 15 3	( ) xp en se s p Sta f f e Ca ion 18 0-a t	2.5 -5	s t o t ity d n nc y en s a n on r n Re du da inc ive d c i bu ion he So l i da Fu d t tr t s t o t
	Q 15 4	( ) xp en se s p Tr d Ca ion b t 10 0-	+1 74 .3	ity n nc y en s a n on r n I C B P I d isp l ca ita l g in os a a
	Q 15	ing ( ) a p Ca Tr d t ion 10 0- b	+6 9. 0	p Ca fer f t fte ita du e t o t he tra he Ar ta ke r t he
		( ) ing a p		Sg ( l g ing p a ns o ca r s a f a f 1 ha ke 2.3 3 2% h ic h inc B P E R 's int in st st urc se o a o w rea se ere
				p ) Ar fro 19 .9 9 8 % 3 2.7 5 2% in he Eq ity inv fo l io to t tm ts ort ca m u es en
				p S p fro A F fo l io it h a it ive imp f it & los d t he ort t o m w p os ac n p ro s a n
				C Sg iva len ita l re ite f f A R A t c eq u ap se rve w r -o r
		Sta f f e ( Ca ion 18 0-a ) t xp en se s p	-4 .3	Re du da inc ive d c i bu ion he So l i da ity Fu d t tr t s t o t n nc y en s a n on r n
		A dm in ist ive ( Ca ion b ) rat t 18 0- ex p en se p	-40 .0	Ex d ina i bu ion he S ing le Re lut ion Fu d ( "S R F ") tra ntr t to t or ry co so n
		To ta l P lus	2 4 3. 3 +
		To ta l M inu s	9 8. 6 -
O t he ite r ms		A dm in ist ive ( Ca ion b ) rat t 18 0- ex p en se p	-2 1.5	Or d ina i bu ion he S ing le Re lut ion Fu d ( "S R F ") d t ntr t to t ry co so n an o
				he De its Gu Sc he ( "D G S ") t nte p os ara e me s

CR Saluzzo's P&L has been included in BPER Banca Group's consolidated P&L since 1 October 2016; up to 30.09.2016 the financial results of CR Saluzzo were accounted in the Profit (Loss) considering Bper's shareholding before the purchase of a controlling interest (31,02%)

The main items of CR Saluzzo's P&L as of 31.12.2016 are the following: Net interest and other banking income 5.9 €/mn (o/w NNI 3.2 €/mn, net commission 2.1 €/mn); operating costs 7.0 €/mn (o/w staff expenses 3,3 €/mn and other administrative expenses 3.2 €/mn), loan loss provisions 2.8 €/mn, net loss from financial activities 3.1 €/mn, taxes + 0.4 €/mn, net loss 3.5 €/mn.

Assets & Liabilities: reclassified balance sheet

Assets (€/mn )* Liabilities & Shareholders' equity (€/mn )*

€ /m n	De 1 5 c	Ma 1 6 r	Ju 1 6 n	Se t 1 6 p	De 1 6 c	C hg vs De '1 ( % ) 5 c
Cu tom Lo s er an s	4 3, 7 0 3	4 4, 0 4 8	4 3, 9 9 0	4 3, 6 3 0	4 5, 4 9 4	4. 1 % +
Se i ies Po fo l io t t cu r r	1 1, 6 3 5	1 2, 1 8 5	1 3, 0 1 4	1 3, 3 0 7	1 3, 1 0 7	1 8. 6 % +
f w h ic h A F S o	8, 0 2 2	8, 6 5 7	9, 5 1 1	1 0, 0 0 9	1 0, 4 3 3	3 0. 1 % +
Eq i Inv ty tm ts, es en u Pr ies & In i b les t tan op er g	1, 8 7 1	1, 8 8 3	1, 8 6 6	1, 8 9 1	1, 9 0 1	1. 6 % +
O he t t a ts r c urr en ss e	3, 0 3 7	2, 3 5 2	2, 5 3 5	2, 6 1 8	2, 5 1 8	-1 7. 1 %
To ta l As ts se	6 0, 1 7 4	6 0, 4 4 1	6 1, 4 0 5	6 1, 5 0 9	6 3, 6 2 5	5. 7 % +

€ /m n	De 1 5 c	Ma 1 6 r	Ju 1 6 n	Se t 1 6 p	De 1 6 c	C hg vs De '1 5 ( % ) c
Cu De i tom ts s er p os	4 2 6 7, 5	4 6, 4 2 4	4 6 6 5, 5	4 4 5, 5 7	4 4 8 7, 7	1. 0 % +
Ne In ba k Po i ion t ter t n s	4, 4 3 6	5, 5 3 1	7, 0 4 1	7, 2 2 9	8, 1 3 1	8 3. 3 % +
O he Fu ds & L ia b i l i ies t t r n	2, 8 3 0	2, 7 8 2	3, 0 3 7	2, 9 8 8	2, 1 9 1	-2 2. 6 %
S ha ho l de ' e i ty re rs q u	5, 6 5 2	5, 7 0 4	5, 6 6 2	5, 7 1 8	5, 5 5 5	-1. 7 %
To ta l L ia b i l i t ies	6 0, 1 7 4	6 0, 4 4 1	6 1, 4 0 5	6 1, 5 0 9	6 3, 6 2 5	5. 7 % +

* Total Assets shown as net of loans to banks *Total Liabilities inclusive of "Net Interbank Position" (Due to banks - Loans to banks)

Customer loans: portfolio composition

Bu ine to s ss se c r	De 1 6 c	% on To ta l	∆ % De 1 5 vs c
Ma fac ing tur nu	8 7, 1 4	1 5. 7 %	3. 7 % +
W ho les le d r i l s ice ies d r irs ta a an e erv s, rec ove r an ep a	8 5, 2 0	1 1. 4 %	2. 7 % +
Co ion tru t ns c s	0 3, 9 0	8. 6 %	1 2. 2 % -
Re l Es ta te a	6 3, 4 1	7. 5 %	3. 9 % +
H O R E C A *	2 1, 5 3	3. 4 %	4. 3 % -
Ag icu ltu for d f is h ing try r re, es an	6 1, 3 7	3. 0 %	8. 5 % +
O he t r	0 6, 1 7	1 3. 6 %	2 0. 9 % +
-f To ta l loa to i de t n ina ia l bu ine ns res n on nc s sse s	0 2 8, 7 5	% 6 3. 2	% 3. 9 +
No i de f ina ia l c ies nt, n-r es no n- nc om p an	2 1 4	0. 3 %	5. 1 % +
To ta l loa to f ina ia l bu ine ns no n- nc s sse s	2 2 8, 8 9	6 3. 5 %	3. 9 % +
Ho ho l ds us e	9 1 1, 5 1	2 5. 3 %	5. 2 % +
f To l loa ina ia l bu ine ta to ns nc s ss es	3 5, 0 8	1 1. 2 %	2. 6 % +
To ta l Cu tom Lo s er s an s	4 4 5, 4 9	1 0 0. 0 %	4. 1 % +

Customer loans breakdown by sectors (€/mn ; %) Customer loans breakdown by geographical distribution* (%)

Figures as per ATECO business sector definitions (ISTAT)

* Hotel, Restaurant & Cafè (HORECA)

FIgures from data management system *Commercial banks + Sarda Leasing

Asset quality breakdown

Gr ( € /m ) os s e xp os ur es n		De 1 5 c		Ma 1 6 r		Ju 1 6 n		Se t 1 6 p		De 1 6 c		hg 3 C 1 / 1 2 - 3 1 / 1 2
	A	%	B	%	C	%	D	%	E	%	A bs	C ( % ) hg
No Pe for ing Ex ( N P Es ) n r m p os ure s	1 1, 3 9 5	2 3. 3 %	1 1, 5 3 2	2 3. 4 %	1 1, 6 2 5	2 3. 5 %	1 1, 2 7 7	2 3. 1 %	1 1, 1 7 4	2 2. 1 %	2 2 1 -	1. 9 % -
Ba d loa ns	7, 1 0 9	1 4. 5 %	7, 2 7 7	1 4. 7 %	7, 3 9 8	1 5. 0 %	6, 9 6 3	1 4. 3 %	7, 0 3 9	1 3. 9 %	7 0 -	1. 0 % -
Un l i ke ly loa to p ay ns	4, 0 0 2	8. 2 %	4, 0 4 6	8. 2 %	4, 0 3 1	8. 2 %	4, 1 0 3	8. 4 %	3, 9 7 7	7. 9 %	2 5 -	0. 6 % -
Pa du loa t s e ns	2 8 4	0. 6 %	2 0 9	0. 4 %	1 9 6	0. 4 %	2 1 1	0. 4 %	1 5 8	0. 3 %	1 2 6 -	4 4. 4 % -
Gr for ing loa os s p er m ns	3 4 8 7, 5	6. % 7 7	3 8 7, 5 5	6. 6 % 7	3 9 7, 7 7	6. % 7 5	3 4 9 7, 5	6. 9 % 7	3 9, 4 8 1	9 % 7 7.	1, 9 3 3	1 % 5. +
To ta l g ro ss ex p os ur es	4 8, 9 4 3	1 0 0. 0 %	4 9, 3 8 7	1 0 0. 0 %	4 9, 4 2 2	1 0 0. 0 %	4 8, 7 3 6	1 0 0. 0 %	5 0, 6 5 5	1 0 0. 0 %	1, 7 1 2	3. 5 % +
A d j loa ( € /m ) tm ts to us en ns n		De 1 5 c		Ma 1 6 r	Ju 1 6 Se 1 6 t n p			De 1 6 c		hg 3 1 / 1	C 2 - 3 1 / 1 2
	A	( % ) co ve ra g e	B	( % ) co ve ra g e	C	( % ) co ve ra g e	D	( % ) co ve ra g e	E	( % ) co ve ra g e	A bs	C hg ( % )
A d j N P Es tm ts to us en	5, 0 3 9	4 4. 2 %	5, 1 4 3	4 4. 6 %	5, 2 3 4	4 5. 0 %	4, 9 2 6	4 3. 7 %	4, 9 7 6	4 4. 5 %	6 3 -	1. 3 % -
Ba d loa ns	4, 1 3 5	5 8. 2 %	4, 2 3 1	5 8. 1 %	4, 3 2 7	5 8. 5 %	3, 9 9 6	5 7. 4 %	4, 0 3 0	5 7. 2 %	1 0 5 -	2. 5 % -
Un l i ke ly loa to p ay ns	8 7 6	2 1. 9 %	8 9 3	2 2. 1 %	8 9 1	2 2. 1 %	9 1 2	2 2. 2 %	9 3 4	2 3. 5 %	5 8	6. 6 % +
Pa du loa t s e ns	2 8	1 0. 0 %	1 9	9. 1 %	1 6	8. 2 %	1 8	8. 6 %	1 2	8 % 7.	1 6 -	1 % 5 7. -
A d j for ing loa tm ts to us en p er m ns	2 0 1	0. 5 %	1 9 6	0. 5 %	1 9 8	0. 5 %	1 8 0	0. 5 %	1 8 4	0. 5 %	1 7 -	8. 5 % -
To l a d j ta tm ts us en	2 4 0 5,	1 0. % 7	3 3 9 5,	1 0. 8 %	4 3 2 5,	1 1. 0 %	1 0 6 5,	1 0. % 5	1 6 0 5,	1 0. 2 %	8 0 -	1. % 5 -
( € /m ) Ne t e xp os ur es n		De 1 5 c		Ma 1 6 r		Ju 1 6 n		Se 1 6 t p		De 1 6 c	hg 3 1 / 1	C 2 - 3 1 / 1 2
	A	%	B	%	C	%	D	%	E	%	A bs	C hg ( % )
( ) No Pe for ing Ex N P Es n r m p os ure s	6, 3 5 6	1 4. 5 %	6, 3 8 9	1 4. 5 %	6, 3 9 1	1 4. 5 %	6, 3 5 1	1 4. 6 %	6, 1 9 7	1 3. 6 %	1 5 9 -	2. 5 % -
Ba d loa ns	2, 9 7 4	6. 8 %	3, 0 4 6	6. 9 %	3, 0 7 1	7. 0 %	2, 9 6 7	6. 8 %	3, 0 0 9	6. 6 %	3 5	1. 2 % +
Un l i ke ly loa to p ay ns	3, 1 2 6	2 % 7.	3, 1 3 5	2 % 7.	3, 1 4 0	1 % 7.	3, 1 9 1	3 % 7.	3, 0 4 3	6. % 7	8 3 -	2. % 7 -
Pa du loa t s e ns	2 6 5	0. 6 %	1 9 0	0. 4 %	1 8 0	0. 4 %	1 9 3	0. 4 %	1 4 5	0. 3 %	1 1 1 -	4 3. 4 % -
for Ne ing loa t p er m ns	3 7, 3 4 7	8 5. 5 %	3 7, 6 5 9	8 5. 5 %	3 7, 5 9 9	8 5. 5 %	3 7, 2 7 9	8 5. 4 %	3 9, 2 9 7	8 6. 4 %	1, 9 5 0	5. 2 % +
To l n ta t e e xp os ur es	4 3, 0 3 7	1 0 0. 0 %	4 4, 0 4 8	1 0 0. 0 %	4 3, 9 9 0	1 0 0. 0 %	4 3, 6 3 0	1 0 0. 0 %	4 4 9 4 5,	1 0 0. 0 %	1, 9 1 7	4. 1 % +

2016: bad loans disposals for c. 700 €/mn GBV

Bonds maturities and issues details

Bonds stock (€/bn)

		De 1 5 c	De 1 6 c	C hg /q q ( %
				)
W ho les le bo a	ds n	2. 7	2. 7	0. 0 % +
	/w d bo ds o co ver e n	2.5	2.5	+0 .0 %
	/w bo d ina d bo ds te o su r n	0. 2	0. 2	+0 .0 %
Re i l bo ds ta n		5. 0	3. 4	-3 2. 0 %
	/w bo d ina te d bo ds o su r n	0.7	0.5	-28 .6 %
To ta l bo ds n		7. 7	6. 1	-2 0. 8 %

Bonds issues (€/bn)

2017 Bonds maturities (€/bn)

Bonds maturities breakdown (€/bn)

Note: figures in this page: 1) are shown as per nominal values excluding Table «Bonds stock» reported as per Financial report values and 2) may not add exactly due to rounding differences

Financial Assets details

Govies & Supranational PTF by issuing country (€/bn)

Italian Govies PTF by coupon (€/bn)

Italian Govies PTF by accounting valuation (€/bn)

Italian Govies PTF Maturities1 (€/bn)

Performance ratios

l ra F ina ia ios t nc	6 3 1.12 .20 1	3 1.12 .20 15
l ra ( ) S ios tru tu t c ra %
lo l as rs/ net to sto tot set ans cu me a s	70 .04 %	71. 34%
lo d a dva dir de fro rs/ sits net s to sto ect ust ans an nce cu me po m c om ers	.28 95 %	8% 92 .4
fin l as l as ia s/t set ota set anc s	21. 11%	18. 88 %
fixe d a l as ts/ tot set sse a s	2.1 3%	2.2 1%
dw ill/ l as tot set g oo a s	6% 0.5	0.6 2%
dir de l as sits /to ect ta set po s	88 .07 %	86 .15%
de de dir de sits /in sits ent ect po un r m ana g em po	49 % .55	8.4 8% 4
fin l as ib le e ia s/t ity set anc ang qu	2.7 2	2.2 5	( ) 1
l ta ib le a ib le e ts/ ity tot tan a ng sse g qu	12.7 9	11.8 3	( ) 2
ban k le nd /bo ( ho nd f E ) in ing wi in t net ter rro ng usa s o uro	( 8,1 86 ) 30, 7	(4, 679 ) 435 ,
mb f em loy nu er o p ees	635 11,	11,4 47
mb f n ati l ba nk bra hes nu er o on a nc	1,20 0	16 1,2
f b l ( ) Pro i i i ios ta ty t ra %
RO E	0.3 0%	7% 4.5
RO TE	0.3 3%	5.1 0%
fit/ RO A ( l as ) net tot set pr o a s	0.0 2%	6% 0.3
Co inc tio st/ om e ra	61. 29%	55. 09 %	( ) 3
dju lo loa Ne /ne t a stm ent s to t to tom ans ns cus ers	6% 1.3	1.6 2%
Bas ic E PS	0.0 30	0.4 59
Dil d E PS ute	0.0 30	0.4 59
k r ( ) R is ios at %
for mi loa /ne t to tom no n-p er ng exp osu res ns cus ers	62% 13.	14. 54%
ba d loa lo ns/ net net to sto ans cu me rs	6.6 1%	6.8 1%
like ly lo loa /ne net to t to tom un pay ans ns cus ers	6.6 9%	7.1 5%
du loa lo ns/ net st net to sto pa e ans cu me rs	0.3 2%	8% 0.5
dju for for mi /g mi stm ent s to a no n-p er ng exp osu res ros s n on -pe r ng exp osu res	44 .54 %	44 .22 %
dju ba d loa ba d loa ns/ stm ent s to a g ros s ns	57. 25%	8.1 6% 5
dju like ly lo nli ke ly lo /g stm ent s to to to a un pay ans ros s u pay ans	23. 49 %	88 21. %
dju du loa du loa ns/ stm ent s to st ast a pa e g ros s p e ns	80 7. %	10. 02%
dju for for mi /g mi stm ent s to a pe r ng exp osu res ros s p er ng exp osu res	0.4 7%	0.5 4%
io tex rat as	8% 111 .5	8% 111 .9	( ) 4

Str ett l ra F ina ia ios t nc	ise ent am e r rva 16 31. 12. 20	fid to e c on enz 31. 12. 20 15	iale
ds ( ha d ) Ow n F P in un se			( ) 5
( T1) Co Eq uit Tie CE mm on r 1 y	64 4,4 97, 5	629 88 4, ,0
Ow ds n F un	8,0 4,9 5 45	80 5,1 33, 2
Ris k-w eig hte d a ts ( A) RW sse	32, 593 ,23 5	68 8 40 ,10 1,
l a d liq d Ca ita i ity ios t p n ra u			( ) 6
io ( io) has ed Co Eq uit Rat CE T1 Rat - P in mm on y	80 13. %	11.5 4%
Tie Rat io ( T1 Rat io) - P has ed in r 1	89 13. %	11.6 5%
al C l Ra ( ) - Ph d i Tot ita tio TC Ra tio ap ase n	15.2 1%	80 12. %
io ( io) lly Ph d Co Eq uit Tie Rat CE T1 Rat - Fu mm on y r 1 ase	13.2 7%	11.2 1%
io - Ph d i Lev Rat era ge ase n	6.7 %	7.1 %	( ) 7
lly Ph d Lev Rat io - Fu era ge ase	6.5 %	6.9 %	( ) 8
Liq uid ity Co tio ( LC R) Ra ver age	102 .0%	6.1 13 %
ab le F din io ( FR) Ne t St Rat NS un g	n.a	110 .9%	( ) 9
f l ra No ina ia ios t n- nc	16 31. 12. 20	31. 12. 20 15
du Pro iv ity ios t t f E ( in t ho nd ) c ra usa s o uro
dir de sits loy ect po pe r em p ee	82 4,1 03.	28. 4,1 22
loa and ad loy to sto ns van ces cu me rs p er e mp ee	3,9 10. 11	817 .82 3,
d p loy ets ass m ana ge er e mp ee	1,3 99 .75	86 1,2 .45
ad ed loy mi nis ets ter ass per em p ee	1,4 25. 44	66 1,3 .99
loy co re r eve nu es per em p ee	161 .85	.89 127	( ) 10
d o the r b kin loy in inc net ter est an an g om e p er e mp ee	173 .02	6.3 13 0
loy tin ost op era g c s p er e mp ee (1 ) Tan ible = t ota l sh hol der s' e et o f in tan ible set	113 .35	86 .45
uity ity n g eq qu g (2 ) Tot al t ible al a f in ible set tot ts n et o tan set ang as s = sse g as s (3 ) The st/i Ra tio has be calc ulat ed the ba sis of t he layo f th clas sifie ut o co nco me en on e re es/ rati inco ); t he figu t 31 De ber 20 15 has be tate d to tak e in exp ens ope ng me re a cem en res the SR F fu nds , DG S, F ITD -SV " ha s b ad ded this hem Wh calc ulat ed the ba to een sc e. en on 262 of the Ba nk of I taly the st/i io is 65. 52% (58 .98 % a t De ber , 20 15) rat at co nco me s a cem (4 ) The tex rati o is lcul ate d a s th latio nsh ip bet n to tal rfor min loa as ca e re wee gro ss non -pe g min orit inte incr ed by t l pr ovis ions for erfo rmi loa ts, ota y res eas no n-p ng ns. "(5 ) (6 ) The tive ios at 3 1 D mb er 2 015 ted in the -for rsio rat co mp ara ece are pre sen pro ma ve lf of ( lise d in teh ond ha 20 15 tha t is allo cab le t ity € 1 18. 6 m illio l to rea sec o e qu n, e qua aro ulat (as tho rise d b he EC B) t he tion of fit r eal ised in t he firs y t net reg ory pu rpo ses au por pro ity. " equ (7 ) (8 ) of ( ) 57 5/2 ( CR The rat io is lcul ate d a rdin g to the visi Reg ulat ion EU 013 ca cco pro ons Del ted Re latio n ( EU ) 20 15/ 62. ega gu	d in tate com e s me to a unt tha t th cco sis of t he layo and t ta ns ne ng tak ing into ne, ac s). und 30 bp hav ing t ha lf of the ar t ye R), end ed as am	nt ( rati ope ng "Co apt ion ntri e c vid ed by Circ uts pro ible uity , inc lud eq he sha nt t cou re o alre ady inc lud ed hat uld be allo cat co Com by t he mis sio	but ions to ula r no ing f pr ofit for ed to n

(9) The NSFR, not yet available, it is in any case estimated to exceed 100%, (106.9 % as at 30 September 2016) (10) Core revenues = net interest income + net commission income.

Annex – 2016 Reclassified consolidated Profit & Loss

Summary schedules

For the sake of clarity, we provide below a breakdown of the aggregations and reclassifications with respect to the income statement format required by Circular no. 262/2005 of the Bank of Italy:

• "Net result from financial activities" includes items 80, 90, 100 and 110 in the standard reporting format;

• indirect tax recoveries, allocated for accounting purposes to item 220 "Other operating charges/income", have been reclassified as a reduction in the related costs under "Other administrative expenses" (Euro 118,704 thousand at 31 December 2016 and Euro 123,302 thousand at 31 December 2015);

•"Net adjustments to property, plant and equipment and intangible assets" include captions 200 and 210 in the standard reporting format;

•"Net impairment adjustments to AFS and HTM financial assets" includes captions 130 b) and 130 c) in the reporting format;

•"Gains (losses) on equity investments, disposal of investments and adjustments to goodwill" include captions 240, 260 and 270 in the reporting format;

•"Contributions to the DGS, SRF and FITD-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 costs" as a better reflection of the trend in the Group's operating costs. In particular, at 31 December

2016, this caption represents the component allocated for accounting purposes to administrative costs, Euro 78,233 thousand, in relation to:

o 2016 ordinary contribution to the SRF (Single Resolution Fund) for Euro 15,090 thousand;

^o 2016 contribution to the DGS (Deposit Guarantee Scheme) for Euro 16,913 thousand;

• ^o the contribution to the FITD-SV (Voluntary Scheme) for the intervention on behalf of Banca Tercas for Euro 11,298 thousand;
• ^o extraordinary contributions to the SRF (Single Resolution Fund) for Euro 34,932 thousand.

At 31 December 2015, on the other hand, the captions concerned were "Other administrative expenses" for Euro 61,554 thousand (Euro 13,356 thousand for the ordinary contribution to the SRF, Euro 8,198 thousand to the DGS and Euro 40,000 thousand for the extraordinary contribution to the SRF) and "Net provisions for risks and charges" for Euro 4,755 thousand, relating to estimated contributions to the Solidarity Fund, and for the voluntary scheme established under the Interbank Deposit Guarantee Fund to finance the new intervention in favour of Banca Tercas.

Please note that the caption "Contributions to the SRF, DGS and FITD-VS funds" has been included from 30 June 2016 and that the comparative figures at 31 December 2015 have therefore been restated with respect to those published at the time of the Consolidated financial statements at 31 December 2015. The table showing the reclassified quarterly figures has also been adjusted to this approach.

Contacts for Investors and Financial Analysts

Alessandro Simonazzi Head of Planning & Control Via San Carlo, 8/20 41121 Modena - Italy Ph. +39 059 2022014e-mail: alessandro.simonazzi@bper.it