Bper Banca — Investor Presentation 2018

Nov 8, 2018

9M18 consolidated results

Alessandro Vandelli - CEO 8 November 2018

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, Marco Bonfatti, 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.

Marco Bonfatti Manager 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

Important methodological note

The entry into force of the new standard IFRS 9 from 1 January 2018, first-time application of which took place under the transition rules, and the recent update of Bank of Italy Circular 262, which revised, among other things, the separate and consolidated financial statement schedules in order to implement the new standard, have led to inconsistencies in the figures compared with the previous year.

It is also worth reiterating that 2017 for the BPER Group featured a change in the scope of consolidation following the acquisition of 100% of Nuova Carife, which was completed on 30 June 2017; this entity was subsequently absorbed by the parent company BPER Banca on 20 November 2017. In this context, in order to allow a comparison of the figures in the income statement as homogeneous as possible with respect to the previous year, the figures are shown on a consolidated basis as at 30 September 2018, estimating their values according to the previous rules, with the best approximation possible.

It should also be noted that as a result of the acquisition of Nuova Carife, these figures are comparable with the same scope of consolidation only for the second half of 2017, which already included their effects. It should also be noted that the consolidated results at 30 September 2017 included significant non-recurring items, including the "badwill" generated by the acquisition of Nuova Carife amounting to € 130.7 million and the writedowns on the Atlante Fund quotas and the share of the contribution to the IDGF-SV for CariCesena for a total of € 61.5 million.

On the other hand, the consolidated balance sheet at 31 December 2017 was recalculated as of 1 January 2018 and restated according to the new schedules in line with the new IFRS 9 classification, thereby becoming directly comparable with the balance sheet figures at 30 September 2018. The figures subject to these interventions are specifically defined, in the context of this document if not explained otherwise, as pro-forma and/or pro-formatted.

Agenda

1. BPER GROUP CONSOLIDATED RESULTS

1.1 Executive summary

• 1.2 Balance sheet structure
• 1.3 Profit and loss
• 1.4 Liquidity and Capital adequacy
• 1.5 Final remarks
• 1. ANNEXES
• 2.1 Detailed information

Executive summary

CET1 ratio Fully Phased at 12.0% increased by c. 40 bps vs 11.6% in Jun.'18, thanks to the limited impact of the rise in yields on the equity reserve for the securities in portfolio

• CET1 ratio Phased In at 14.7% confirming a sound capital position with a large buffer (2.0 €/bn) vs minimum regulatory requirement (SREP 2018 at 8.125%)

9M18 Net profit of 358.1 €/mn more than doubled vs 9M17

• Net operating income at 651.7 €/mn supported by a very positive trend of net commissions and trading income (also thanks to realized gains on bonds in 1Q18)
• Cost of credit annualized down significantly to 45 bps (112 bps in 2017)

Gross NPE ratio notable reduction at 17.3% down by 2.6 p.p. vs 19.9% as of 1 Jan.'18

• NPE stock down to 8.8 €/bn (-1.7 €/bn since 1 Jan.'18) driving Gross NPE ratio to 17.3% in 9M18 (-2.6 p.p. vs 1 Jan.'18) thanks to the bad loans securitization "4Mori Sardegna" of 0.9 €/bn finalized in Jun.'18
• Net NPE ratio down to 8.3% from 9.2% as of 1 Jan.'18 and coverage ratios still at the highest level in Italy
• Default rate(1) slight improvement at 1.9% (2.0% in Jun'18)

On 7 Nov.'18, sale of a bad loan portfolio called "AQUI"2, mainly belonging to BPER Banca, concluded by means of a securitisation for a gross book value of € 1.9 billion backed by a guarantee on the senior tranche to be requested from the Italian State ("GACS"), concluded as expected in line with the BPER Group's NPE Strategy 2018-2020

• Gross NPE ratio pro-forma including the deconsolidation of AQUI portfolio (expected in Q4) at 14.4% on Sept.'18 figures

Agenda

1. BPER GROUP CONSOLIDATED RESULTS

• 1.1 Executive summary
• 1.2 Balance sheet structure
• 1.3 Profit and loss
• 1.4 Liquidity and Capital adequacy
• 1.5 Final remarks
• 1. ANNEXES
• 2.1 Detailed information

Total funding

Stock peaked at 92.5 €/bn showing a growth in both direct and indirect funding

Total Funding (€/bn)

• Total funding at 92.5 €/bn up by 1.7 €/bn since 1 Jan.'18, mainly realized in Q3
• Important increase of direct funding (+1.3 €/bn) both retail and institutional segment since Jun.'18
• AuM and Bancassurance further increase of 0.2 €/bn since Jun.'18

Direct funding

Increase by 1.9% since 1 Jan.'18 supported by both retail and wholesale funding

€/mn	1 Jan 18	Jun 18	Sep 18	Chg YTD	% on total
Current accounts and sight deposits	35,286	36,603	36,879	+4.5%	72.1%
Bonds subscribed by retail customers	2,355	1,700	1,602	-32.0%	3.1%
Other	7,441	6,461	6,951	-6.6%	13.6%
Direct customer deposits	45,082	44,764	45,432	+0.8%	88.8%
Institutional direct funding	5,165	5,115	5,752	+11.4%	11.2%
o.w. Institutional bonds	3,037	3,039	3,544	+16.7%	6.9%
Total direct funding	50,246	49,879	51,184	+1.9%	100%

Direct Funding breakdown (€/mn; %)

• Total direct funding up by 1.9% (+0.9 €/bn) since 1 Jan.'18
• Customer deposits at 45.4 €/bn up by 0.8% since 1 Jan.'18
• Since 1 Jan.'18, important increase in short-term funding mainly as a consequence of customers' risk aversion due the financial markets turmoil: current accounts and sight deposits up by 1.6 €/bn, time deposits broadly stable, retail bonds and CDs down respectively by 0.8 €/bn and 0.5 €/bn
• Institutional funding at 5.8 €/bn up by 11.4% since 1 Jan.'18. Covered Bond of 500 €/mn issued in Jul.'18
• Repos up by 0.1 €/bn since 1 Jan.'18
• Very low wholesale bond maturities in 2018 (only 1 €/bn of CB in October 2018) and no maturities in 2019, providing flexibility to the Group's funding strategy

Indirect funding and Bancassurance

Up by 1.8% since 1 Jan.'18 with AuM at 20 €/bn (+1.3%)

Indirect Deposits and Bancassurance1 (€/bn)

AuM net inflows2 (€/mn)

AuM and Bancassurance up by 1.8% since 1 Jan.'18

9M18 AuM at 20 €/bn despite the negative market effect in the period (-0.5 €/bn)

Net inflows still positive in Q3 (+166 €/mn) in the presence of a very difficult financial market environment (9M18 net inflows of 1 €/bn vs 1.6 €/bn in 9M17)

Customer loans

Strong de-risking and asset quality improvement continue. Limited decrease of net performing loans in Q3 vs Q2 despite worsening economic environment

Customer loans breakdown (net & gross fig.; €/mn ) Performing exposure rated by risk profile1 (%)

€/mn	1 Jan 18	Jun 18	Sep 18	Chg YTD (%)
Current accounts	5,013	4,631	4,737	-5.5%
Mortgage loans	27,954	27,722	28,004	+0.2%
Other transactions	13,501	13,449	12,907	-4.4%
Net loans	46,469	45,802	45,648	-1.8%
o.w. performing	42,187	41,977	41,843	-0.8%
o.w. NPEs	4,282	3,826	3,805	-11.1%
Gross loans	52,964	51,012	50,792	-4.1%
o.w. performing	42,433	42,146	42,004	-1.0%
o.w. NPEs	10,531	8,866	8,788	-16.5%

50.5% 40.8% 8.8% 54.6% 39.0% 6.5% 57.1% 37.9% 5.0% 59.2% 36.7% 4.1% Low risk Mid risk High risk 2015 2016 2017 Sep18

• Limited decrease of net performing loans of 0.3% in Q3 (-0.8% since 1 Jan.'18) despite economic environment in Italy

• Net mortgages slight recovery in Q3 (+1.0% vs Q2 and 0.2% since 1 Jan.'18)
• Further decrease in Q3 of NPEs both gross and net
• Significant de-risking on performing loans continues with high risk bucket more than halved since 2015, now weighing 4.1% and low risk bucket increased to 59.2% from 50.5% in 2015

Non Performing Exposures (1/2)

Gross NPE ratio at 17.3% down by 2.6 p.p. since 1 Jan.'18. Continued NPE stock decrease

Gross NPE (€/bn)

Cash coverage ratios (%)

	Dec 17	1 Jan 18	Jun 18	Sep 18
Bad loans ("Sofferenze")	59.3%	67.4%	64.9%	64.5%
including write-off	63.7%	70.9%	68.7%	68.3%
Unlikely to pay	27.2%	43.6%	41.9%	42.2%
Past due	10.6%	14.1%	12.7%	12.8%
NPE	48.7%	59.3%	56.8%	56.7%
including write-off	52.6%	62.4%	60.1%	59.9%
Performing exposures	0.5%	0.6%	0.4%	0.4%
Total loans	10.1%	12.3%	10.2%	10.1%

• Gross NPE further decrease in Q3 by 0.9% vs Q2 (-16.6% or -1.7 €/bn since 1 Jan.'18 thanks to effective asset quality management and bad loans securitization «4Mori Sardegna» of 0.9 €/bn in Q2)
• Gross NPE ratio at 17.3% from 17.4% in Q2
• Gross UtP and Past Due stock broadly unchanged in Q3 vs Q2
• NPE coverage at 56.7% in Q3 still very high. UtP coverage up to 42.2% in Q3 from 41.9% in Q2

Non Performing Exposures (2/2)

NPE inflows (gross figures; €/mn)

9M18 annualized default rate further improves to 1.9% from 2.0% in 1H18

+7.6% 1,451 1,330 576 620 9M15 9M16 9M17 9M18

• Significant improvement in the quality of performing book enables default rate to reach to 1.9% annualized

• Cure rate annualized at 9.1% in 9M18 confirming the effective management of asset quality
• Bad loans average recovery rate close to 6.0% annualized in 9M18 showing a very positive management activity of our servicing platform BPER Credit Management*

Financial assets portfolio

Bond portfolio diversification continues with a long-term reduction of Italian government exposure

Financial Assets breakdown (€/mn; %) Italian Government bonds / Tot. Assets (%)**

Total Italian bonds exposure / Total Bond ptf. (%)**

• Financial assets portfolio marginally increased in Q3 by 1.9% vs Q2 and by 5.3% since 1 Jan.'18
• Italian government bonds down by 0.5% vs Q2 at 5.6 €/bn weighing 33.4% of the securities portfolio

• Total bond ptf and Italian govies duration respectively 2.5 ys and 3.3 ys

• *. Derivatives for hedging purposes related to HFT portfolio ** * Source: management data

• 1. Duration in years taking into account hedging

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

Agenda

1. BPER GROUP CONSOLIDATED RESULTS

• 1.1 Executive summary
• 1.2 Balance sheet structure

1.3 Profit and loss

• 1.4 Liquidity and Capital adequacy
• 1.5 Final remarks
• 1. ANNEXES
• 2.1 Detailed information

9M18 reclassified Profit & Loss (IFRS9)

Impressive performance with a Net Profit of 358.1 €/mn

9M18 Reclassified Profit & Loss - IFRS9 (€/mn)

9M18 figures are not comparable to 9M17 because of a change in the scope of consolidation of the Group. See details on pag.3 «Important methodogical note»

Net Interest Income

NII broadly unchanged (-0.2% q/q) excluding "IFRS9 reclassification" effects Interest margin affected by important de-risking activity on loans still in place

• NII down by 1.3% q/q mainly due to the lower contribution of «IFRS9 reclassification» (-0.2% net of IFRS9 effect)
• NII performance affected by 1) the significant de-risking activity on loans and 2) performing loans further improvement toward low risk rating bucket
• Negative contribution from interest on loans partially offset by financial securities ptf positive effect

*: for details see tables in the Annexes

Note: figures from Consolidated Profit and Loss (Bank of Italy format Circular 262/2005)- Item 10 «Interest and similar income» (TLTRO2 benefit included among "Other") and Item 20 «Interest and similar expense». TLTRO2 benefit of 28.1 €/mn in 9M18 of which 9.3 €/mn in 1Q18, 9.4 €/mn in 2Q18 and 9.4 €/mn in 3Q18. Total TLTRO2 benefit in 2017 was 33.7 €/mn (1Q17 of 5.1 €/mn, 9.3 €/mn in 2Q17, 9.3 €/mn in 3Q17, 10.0 €/mn in 4Q17 ) Note: Nuova Carife has been included in BPER Banca Group from 3Q17 onwards Note: figures in this page may not add exactly due to rounding difference

Net Commissions

9M18 significant performance mainly supported by AuM and Bancassurance

Net Commissions breakdown (€/mn)

	Sept 17	Sept 18	Chg y/y (%)
Indirect deposits	137.4	158.1	+15.1%
Assets under custody (AuC)	11.4	12.3	+7.8%
Assets under management (AuM)	126.0	145.8	+15.7%
Bancassurance	28.6	39.2	+36.9%
Credit cards, collections, payments	107.4	110.9	+3.3%
Loans and guarantees	240.2	237.2	-1.3%
Other commissions	30.4	31.8	+4.3%
Total	544.0	577.1	+6.1%

AuM up-front fees of 17.7 €/mn in Sep.18 (15.3 €/mn in Sep.17), weighing 3.1% on total net commissions

Net Commissions breakdown (€/mn; % on total)

• Indirect deposits and Bancassurance fees relevant performance in 9M18 up by 18.8% y/y
• AuM and Bancassurance fees notable increase respectively by 15.7% and 36.9% y/y. Overall traditional commissions growth in 9M18 (+0.5% y/y)
• In Q3, net commissions negatively affected by usual seasonality (-1.5 q/q) in particular on indirect deposits and Bancassurance segment partially offset by good performance of traditional business related fees

Note: Nuova Carife has been included in Consolidated P&L from 3Q17 onwards Note: figures in this page may not add exactly due to rounding differences

Dividends and Trading income

9M18 positive performance supported by realized gains on bonds in Q1 Q3 trading profit of 20.9 €/mn despite financial market turmoil

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

	Sep 17	Sep 18
Dividends	11.6	13.8
Trading income	71.0	190.9
Realized gain/loss	37.7	185.3
Plus	38.2	32.4
Minus	-7.4	-33.5
Others	2.6	6.8
Total	82.6	204.7

Trading income evolution (€/mn)

Operating costs

Operating costs breakdown (€/mn; %)

Q3 decrease by 10.1% vs Q2 mainly due to staff costs seasonality and administrative costs reduction

Operating costs (€/mn) Set 17 Set 18 Chg y/y (%) Staff expenses 577.3 615.0 +6.5% Other administrative expenses 309.0 316.6 +2.5% D&A 61.4 79.3 +29.2% Operating costs 947.6 1,010.8 +6.7% In 1H17 Nuova Carife was outside the scope of consolidation

Operating costs breakdown (€/mn; %)

Note: figures in this page may not add exactly due to rounding differences Nuova Carife: 100% of the share capital acquisition completed in Jun.'17 and then merged into the Parent Bank BPER Banca in Nov.'17; for details of the deal see 30 Jun.'17 and 20 Nov.'17 press releases

Cost of credit

Loan Loss Provisions (€/mn)

Loan Loss Provisions at a very low level of 155.2 €/mn Cost of risk notable reduction to 45 bps annualized (112 bps in 2017)

155.2 413.0 Sept 17 Sept 18* -62.4% IAS39 IFRS9

* Item 130 a) Net impairment adjustments to financial assets at amortised cost (Profit and Loss Financial statement)

Agenda

1. BPER GROUP CONSOLIDATED RESULTS

• 1.1 Executive summary
• 1.2 Balance sheet structure
• 1.3 Profit and loss
• 1.4 Liquidity and Capital adequacy
• 1.5 Final remarks
• 1. ANNEXES
• 2.1 Detailed information

Liquidity

Signoficant liquidity position and high level of unencumbered eligible assets

• ECB exposure of 9.3 €/bn in Sept.'18 fully composed by TLTRO2 operations (4.1 €/bn TLTRO2 in Jun.'16 and 1 €/bn TLTRO2 in Dec.'16 and 4.2 €/bn in Mar.'17)
• Higher level of counterbalancing capacity (+0.2 €/bn) and unencumbered assets (+0.8 €/bn) vs Q2
• LCR and NSFR above 100%

Capital

CET1 Fully Phased at 12.0% up by about 40 bps vs Q2 confirming solid capital position

Common Equity Tier 1 Ratios (%)

Note: Reg. 2395/2017 "Transitional provisions to mitigate the impact of introducing IFRS 9 on Own Funds" introduced the "phased-in" relating to the impacts on Own Funds of the new standard IFRS 9, which offers banks the possibility to mitigate the impact on Own Funds in a transitional period of 5 years (from March 2018 to December 2022) by sterilizing the effect in CET1 with the application of decreasing percentages over time. The BPER Banca Group has chosen to adopt the so-called "static approach", to be applied to the impact resulting from comparison between the IAS 39 adjustments at 31/12/2017 and the IFRS 9 adjustments at 1/1/2018.

Agenda

1. BPER GROUP CONSOLIDATED RESULTS

• 1.1 Executive summary
• 1.2 Balance sheet structure
• 1.3 Profit and loss
• 1.4 Liquidity and Capital adequacy
• 1.5 Final remarks
• 1. ANNEXES
• 2.1 Detailed information

Final remarks

Delivering on profitability and asset quality while maintaining a solid capital base

Improving capital position, low leverage and good liquidity position

• 1. CET1 ratio Fully Phased at 12.0% increased by c. 40 bps vs Jun.'18 thanks to the limited impact of the rise in yields on the equity reserve for the securities in portfolio
• 1. CET1 ratio Phased In at 14.7% well above the SREP 2018 (8.125% one of the lowest in the Italian banking system), showing an excess capital buffer of 2.0 €/bn vs SREP
• 1. Leverage Fully Phased at 4.9% one of the lowest of the domestic banking system (6.1% Phased In)

CAPITAL ASSET QUALITY PROFITABILITY

Well on track on credit quality improvements coherently with the NPE Strategy 2018-2020, with effective and visible results

• 1. Gross NPE ratio at 17.3% from 19.9% as of 1 Jan.'18
• 1. Second bad loans securitization finalized after the Q3 close (7 Nov.'18). Gross NPE ratio proforma at 14.4%
• 1. Default rate further improvement at 1.9% slightly down vs 2.0% in Jun'18
• 1. Texas ratio strong improvement at 94.1% down by 7.4 p.p. since 1 Jan.'18

Positive profitability trend

• 1. Net profit impressive improvement at 358.1 €/mn more than doubled vs 9M17
• 1. Significant reduction of the ordinary cost of risk (45 bps annualized vs 112 bps in 2017)
• 1. Relevant performance of net commissions (+6.1% y/y) with a particular focus on AuM and Bancassurance business

Agenda

1. BPER GROUP CONSOLIDATED RESULTS

• 1.1 Executive summary
• 1.2 Balance sheet structure
• 1.3 Profit and loss
• 1.4 Liquidity and Capital adequacy
• 1.5 Final remarks
• 1. ANNEXES
• 2.1 Detailed information

Customer loans: portfolio composition

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

Business sector	Sept 18	% on Total	Δ % vs Dec 17
Manufacturing	6,832	13.6%	-8.3%
Wholesale and retail services, recoveries and repairs	4,297	8.5%	-17.4%
Constructions	2,707	5.4%	-25.1%
Real Estate	3,080	6.1%	-10.0%
HORECA*	1,195	2.4%	-22.5%
Agriculture, forestry and fishing	669	1.3%	-56.1%
Other	4,982	9.9%	-21.7%
Total loans to non-financial businesses	23,762	47.2%	-18.4%
Households	16,405	32.6%	+26.9%
Total loans to financial businesses	10,175	20.2%	+83.1%
Total Customers Loans	50,342	100.0%	+5.7%

Customer loans breakdown by geographical distribution1(%)

* Hotel, Restaurant & Cafè (HORECA). Note: figures as per ATECO business sector definitions (ISTAT)

1. Commercial banks + Sarda Leasing, excluding non resident loans

Note: figures from data management system

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

Asset quality Annexes

Asset quality breakdown (excl. customer debt securities)

Gross exposures (€/mn)	Sep 17		Dec 17		1 Jan 18 FTA			Mar 18	Jun 18		Sept 18	Chg Y/Y		Chg YTD		Chg 1 Jan 18
		%		%		%		%	%		%		Abs. Chg (%)	Abs.	Chg (%)		Abs. Chg (%)
Non Performing Exposures NPEs	10,853	20.8%	10,532	19.8%	10,531	19.9%	9,868	19.3%	8,867 17.4%	8,788	17.3%	-2,065	-19.0%	-1,744	-16.6%	-1,743	-16.5%
Bad loans	7,127	13.6%	7,109	13.4%	7,109	13.4%	6,584	12.9%	5,906 11.6%	5,834	11.5%	-1,293	-18.1%	-1,275	-17.9%	-1,275	-17.9%
Unlikely to pay loans	3,576	6.8%	3,318	6.2%	3,318	6.3%	3,190	6.2%	2,847 5.6%	2,867	5.6%	-709	-19.8%	-451	-13.6%	-451	-13.6%
Past due loans	150	0.3%	105	0.2%	104	0.2%	94	0.2%	114 0.2%	87	0.2%	-63	-42.3%	-18	-17.0%	-17	-17.0%
Gross performing loans	41,423	79.2%	42,638	80.2%	42,433	80.1%	41,383	80.8%	42,145 82.6%	42,004	82.7%	581	+1.4%	-634	-1.5%	-429	-1.0%
Total gross exposures		52,276 100.0%	53,170	100%	52,964	100%		51,251 100.00%	51,012 100%	50,792	100%	-1,484	-2.8%	-2,378	-4.5%	-2,173	-4.1%

Adjustments to loans (€/mn)	Sep 17 Dec 17		1 Jan 18 FTA Mar 18		Jun 18 Sept 18		Chg Y/Y		Chg YTD		Chg 1 Jan 18
		coverage (%)		coverage (%)		coverage (%)		coverage (%)		coverage (%)		coverage (%)		Abs. Chg (%)	Abs.	Chg (%)		Abs. Chg (%)
Adjustments to NPEs	5,176	47.7%	5,129	48.7%	6,250	59.3%	5,661	57.4%	5,041	56.8%	4,983	56.7%	-193	-3.7%	-146	-2.8%	-1,267	-20.3%
Bad loans	4,206	59.0%	4,216	59.3%	4,789	67.4%	4,377	66.5%	3,832	64.9%	3,762	64.5%	-444	-10.5%	-454	-10.7%	-1,027	-21.4%
Unlikely to pay loans	953	26.7%	902	27.2%	1,445	43.5%	1,272	39.9%	1,194	41.9%	1,209	42.2%	256	+26.9%	307	+34.1%	-236	-16.3%
Past due loans	17	11.2%	11	10.6%	16	14.1%	12	13.3%	15	12.7%	12	12.8%	-5	-33.8%	1	+0.5%	-4	-24.3%
Adjustments to performing loans	193	0.5%	226	0.5%	245	0.6%	186	0.5%	169	0.4%	161	0.4%	-32	-16.2%	-65	-28.5%	-84	-34.4%
Total adjustments	5,369	10.3%	5,355	10.1%	6,495	12.3%	5,847	11.4%	5,210 10.2%		5,144	10.1%	-225	-4.2%	-211	-3.9%		-1,351 -20.8%

Net exposures (€/mn)		Sep 17		Dec 17	1 Jan 18 FTA			Mar 18	Jun 18		Sept 18		Chg Y/Y		Chg YTD		Chg 1 Jan 18
		%		%		%		%		%		%		Abs. Chg (%)	Abs.	Chg (%)		Abs. Chg (%)
Non Performing Exposures NPEs	5,676	12.1%	5,403	11.3%	4,282	9.2%	4,207	9.3%	3,826	8.4%	3,805	8.3%	-1,871	-33.0%	-1,598	-29.6%	-477	-11.1%
Bad loans	2,921	6.2%	2,893	6.1%	2,320	5.0%	2,207	4.9%	2,074	4.5%	2,072	4.5%	-849	-29.1%	-821	-28.4%	-248	-10.7%
Unlikely to pay loans	2,622	5.6%	2,416	5.1%	1,873	4.0%	1,918	4.2%	1,653	3.6%	1,658	3.6%	-964	-36.8%	-758	-31.4%	-215	-11.5%
Past due loans	133	0.3%	94	0.2%	89	0.2%	82	0.2%	99	0.2%	75	0.2%	-58	-43.4%	-19	-19.0%	-14	-15.8%
Net performing loans	41,231	87.9%	42,412	88.7%	42,187	90.8%	41,197	90.7%	41,976	91.7%	41,843	91.7%	612	+1.5%	-569	-1.3%	-344	-0.8%
Total Net exposures		46,907 100.0%	47,815	100%	46,469	100.0%	45,404	100%	45,802	100%	45,648	100%	-1,259	-2.7%	-2,167	-4.5%	-821	-1.8%

Financial Assets details

1. Figures are shown as per nominal values Note: figures from data management system

Bonds maturities and issues details

Outstanding bonds (€/bn) Bonds issued (€/bn)

	Dec 17	Jun 18	Set 18
Wholesale bonds	3.0	3.0	3.5
o/w covered bonds	2.5	2.5	3.0
o/w subordinated bonds	0.5	0.5	0.5
Retail bonds	2.4	1.7	1.6
o/w subordinated bonds	0.4	0.3	0.3
Total bonds	5.4	4.7	5.1

2018 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

Reclassified financial statement as at 30.09.18

Annexes

For greater clarity in the presentation of the results for the period, the accounting schedules envisaged by the 5th update of Bank of Italy Circular no. 262/2005 have been reclassified.

In the balance sheet:

• Debt securities measured at amortised cost (caption 40 "Financial assets measured at amortised cost") have been reclassified under caption "Financial assets".
• "Other assets" include captions 110 "Tax assets" and 130 "Other assets".
• "Other liabilities and shareholders' equity" include captions 60 "Tax liabilities", 80 "Other liabilities", and 90 " Provision for termination indemnities" and 100 "Provisions for risks and charges".

In the income statement:

• "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 230 "Other operating charges/income", have been reclassified as a reduction in the related costs under "Other administrative expenses" (Euro 94,974 thousand at 30 September 2018 and Euro 92,364 thousand at 30 September 2017);
• "Net adjustments to property, plant and equipment and intangible assets"include captions 210 and 220 in the standard reporting format;
• "Gains (losses) on equity investments, disposal of investments and adjustments to goodwill" include captions 250, 270 and 280 in the reporting format;
• "Contributions to the DGS, SRF and IDGF-VS funds" have 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 30 September 2018, this caption represents the component allocated for accounting purposes to administrative costs in relation to:
• the 2018 contribution to the SRF (European Single Resolution Fund) for Euro 20,347 thousand;
• additional contribution requested by the SRF (European Single Resolution Fund) for 2016 from Italian banks for Euro 8,593 thousand;
• the 2018 contribution to the DGS (Deposit Guarantee Schemes) of Euro 23,460 thousand, representing the amount requested from the Luxembourg subsidiary for the first half of the year (Euro 19 thousand) and an estimate of the amount that will be requested from Italian banks by the end of the year (Euro 23,441 thousand).

In the comparative figures at 30 September 2017, the "Adjustments to other financial assets" have been reclassified to "Net provisions for risks and charges" to comply with the 5th update of Bank of Italy Circular no. 262/2005.

Pro-forma reclassified accounting schedules as at 30 September 2018

The income statement is also presented in a pro-forma version, in which the effects deriving from application of IFRS 9 have been reallocated to the various captions according to the instructions in the 4th update of Circular no. 262/2005, to allow a homogeneous comparison with the results of the previous year.

Reclassified consolidated balance sheet

					(in thousands of Euro)
Assets	30.09.2018	01.01.2018		31.12.2017 Change 30.09.2018- 01.01.2018	Change %
Cash and cash equivalents	392,189	420,299	420,299	(28,110)	-6.69
Financial assets	16,642,362	15,799,267	15,661,977	843,095	5.34
a) Financial assets held for trading	287,687	414,294	414,294	(126,607)	-30.56
b) Financial assets designated at fair value	216,810	223,192	223,192	(6,382)	-2.86
c) Other financial assets mandatorily measured at fair value through profit or loss	909,156	655,596	689,115	253,560	38.68
d) Financial assets measured at fair value through other comprehensive income	9,022,848	13,547,372	13,395,435	(4,524,524)	-33.40
e) Debt securities measured at amortised cost	6,205,861	958,813	939,941	5,247,048	547.24
- banks	1,511,155	196,713	193,334	1,314,442	668.20
- customers	4,694,706	762,100	746,607	3,932,606	516.02
Loans	49,660,565	49,472,225	50,624,967	188,340	0.38
a) loans to banks	4,009,534	3,000,199	3,012,515	1,009,335	33.64
b) loans to customers	45,647,637	46,468,704	47,609,130	(821,067)	-1.77
c) Financial assets measured at fair value through other comprehensive income	3,394	3,322	3,322	72	2.17
Hedging derivatives	57,469	54,061	54,061	3,408	6.30
Equity investments	444,844	454,367	454,367	(9,523)	-2.10
Property, plant and equipment	1,051,767	1,063,483	1,063,483	(11,716)	-1.10
Intangible assets	495,059	506,627	506,627	(11,568)	-2.28
- of which: goodwill	327,084	327,084	327,084	-	-
Other assets	2,477,622	2,550,510	2,553,026	(72,888)	-2.86
Total assets	71,221,877	70,320,839	71,338,807	901,038	1.28

Reclassified consolidated balance sheet

				(in thousands of Euro)
Liabilities and shareholders' equity	30.09.2018	01.01.2018		31.12.2017 Change 30.09.2018- 01.01.2018	Change %
Due to banks	12,730,558	12,984,226	12,984,226	(253,668)	-1.95
Direct deposits	51,184,053	50,246,932	50,246,417	937,121	1.87
a) Due to customers	44,387,688	42,694,078	42,694,078	1,693,610	3.97
b) Debt securities issued	6,796,365	7,552,854	7,552,339	(756,489)	-10.02
Financial liabilities held for trading	150,490	170,046	170,046	(19,556)	-11.50
Hedging derivatives	27,812	23,795	23,795	4,017	16.88
Other liabilities	2,272,860	2,262,970	2,197,592	9,890	0.44
Minority interests	474,455	451,825	653,010	22,630	5.01
Shareholders' equity pertaining the Parent Company	4,381,649	4,181,045	5,063,721	200,604	4.80
a) Valuation reserves	34,557	204,422	75,089	(169,865)	-83.10
b) Reserves	1,622,226	1,433,445	2,445,454	188,781	13.17
c) Share premium reserve	930,073	930,073	930,073	-	-
d) Share capital	1,443,925	1,443,925	1,443,925	-	-
e) Treasury shares	(7,258)	(7,258)	(7,258)	-	-
f) Profit (Loss) for the period pertaining to the Parent Company	358,126	176,438	176,438	181,688	102.98
Total liabilities and shareholder's equity		71,221,877 70,320,839	71,338,807	901,038	1.28

Reclassified consolidated income statement

					(in thousands of Euro)
Item		30.09.2018	30.09.2017	Change	Change %
10+20	Net interest income	850,092	850,337	(245)	-0.03
40+50	Net commission income	577,081	544,026	33,055	6.08
70	Dividends	13,786	11,631	2,155	18.53
80+90+100+110	Net trading income	190,944	71,022	119,922	168.85
230 (*)	Other operating charges/income	30,657	48,173	(17,516)	-36.36
	Operating income	1,662,560	1,525,189	137,371	9.01
190 a)	Payroll	(614,987)	(577,332)	(37,655)	6.52
190 b) () (*)	Other administrative expenses	(316,589)	(308,957)	(7,632)	2.47
210+220	Net adjustments to property, plant, equipment and intangible assets	(79,258)	(61,350)	(17,908)	29.19
	Operating costs	(1,010,834)	(947,639)	(63,195)	6.67
	Net operating income	651,726	577,550	74,176	12.84
130 a)	Net impairment adjustments to financial assets at amortised cost	(155,206)	(412,954)	257,748	-62.42
130 b)	Net impairment adjustments to financial assets at fair value	2,054	(101,000)	103,054	-102.03
140	Profit/loss from contract modifications without derecognition	(2,719)	-	(2,719)	n.s.
	Net impairment adjustments to credit risk	(155,871)	(513,954)	358,083	-69.67
200	Net provisions for risks and charges	(49,130)	(7,990)	(41,140)	514.89
###	Contributions to SRF, DGS, IDGF - VS	(52,400)	(36,152)	(16,248)	44.94
250+270+280	Gains (Losses) on disposal of investments and impairment losses on goodwill	8,953	11,433	(2,480)	-21.69
###	Gain on a bargain purchase	-	130,722	(130,722)	-100.00
290	Profit from current operations before tax	403,278	161,609	241,669	149.54
300	Income taxes on current operations	(23,974)	(13,513)	(10,461)	77.41
330	Profit (Loss) for the period	379,304	148,096	231,208	156.12
340	Profit (Loss) for the period pertaining to minority interests	(21,178)	862	(22,040)	--
350	Profit (Loss) for the period pertaining to the Parent Company	358,126	148,958	209,168	140.42
	Captions net of:
(*)	Recovery of indirect taxes	94,974	92,364	2,610	2.83
(**)	Contributions to SRF, DGS, IDGF - VS	(52,400)	(36,152)	(16,248)	44.94

Reclassified consolidated income statement by quarter

Captions		1st quarter 2018	2nd quarter 2018	3rd quarter 2018	1st quarter 2017	2nd quarter 2017	3rd quarter 2017	4th quarter 2017
10+20	Net interest income	293,234	280,268	276,590	288,114	282,005	280,218	274,142
40+50	Net commission income	198,120	190,936	188,025	177,373	181,851	184,802	196,602
70	Dividends	584	12,877	325	312	10,812	507	785
80+90+100+110	Net trading income	153,634	16,431	20,879	24,664	25,869	20,489	32,112
230 (*)	Other operating charges/income	11,485	8,174	10,998	10,310	14,298	23,565	10,017
	Operating income	657,057	508,686	496,817	500,773	514,835	509,581	513,658
190 a)	Payroll	(207,534)	(212,900)	(194,553)	(194,125)	(191,551)	(191,656)	(206,146)
190 b) () (*)	Other administrative costs	(102,285)	(109,981)	(104,323)	(96,628)	(104,864)	(107,465)	(116,654)
	Net adjustments to property, plant and equipment and
210+220	intangible assets	(21,339)	(34,986)	(22,933)	(18,685)	(22,012)	(20,653)	(26,079)
	Operating costs	(331,158)	(357,867)	(321,809)	(309,438)	(318,427)	(319,774)	(348,879)
	Net operating income	325,899	150,819	175,008	191,335	196,408	189,807	164,779
130 a)	Net impairment adjustments to financial assets at
	amortised cost	(26,141)	(58,793)	(70,272)	(133,573)	(189,659)	(89,722)	(123,021)
130 b)	Net impairment adjustments to financial assets at fair
	value	1,763	141	150	(17,381)	(54,236)	(29,383)	(3,628)
140	Profit/loss from contract modifications without
	derecognition	-	(1,183)	(1,536)	-	-	-	-
	Net impairment adjustments to credit risk	(24,378)	(59,835)	(71,658)	(150,954)	(243,895)	(119,105)	(126,649)
200	Net provisions for risks and charges	(11,663)	(25,376)	(12,091)	(1,014)	(4,154)	(2,822)	(37,901)
###	Contributions to SRF, DGS, IDGF - VS	(20,282)	(8,670)	(23,448)	(18,061)	2,114	(20,205)	(1,569)
250+270+280	Gains (Losses) on disposal of investments and
	impairment losses on goodwill	2,827	2,591	3,535	3,705	2,843	4,885	(21,319)
###	Gain on a bargain purchase	-	-	-	-	130,722	-	60,170
290	Profit from current operations before tax	272,403	59,529	71,346	25,011	84,038	52,560	37,511
300	Income taxes on current operations	(6,918)	(2,850)	(14,206)	(7,743)	17,926	(23,696)	(8,725)
330	Profit (Loss) for the period	265,485	56,679	57,140	17,268	101,964	28,864	28,786
340	Profit (loss) for the period pertaining to minority
	interests	(14,462)	183	(6,899)	(2,710)	2,540	1,032	(1,306)
	Profit (Loss) for the period pertaining to
350	the Parent Company	251,023	56,862	50,241	14,558	104,504	29,896	27,480
	Captions net of:
(*)	Recovery of indirect taxes	31,823	31,629	31,522	29,981	31,001	31,382	33,811
(**)	Contributions to SRF, DGS, IDGF - VS	(20,282)	(8,670)	(23,448)	(18,061)	2,114	(20,205)	(1,569)

Reclassified consolidated income statement pro-forma

						(in thousands of Euro)
Captions		30.09.2018	Pro-forma reclassifications	30.09.2018 pro forma	30.09.2017		Change Change %
10+20	Net interest income	850,092	(63,970)	786,122	850,337	(64,215)	-7.55
40+50	Net commission income	577,081	-	577,081	544,026	33,055	6.08
70	Dividends	13,786	-	13,786	11,631	2,155	18.53
80+90+100+110	Net trading income	190,944	-	190,944	71,022	119,922	168.85
230	Other operating charges/income	30,657	-	30,657	48,173	(17,516)	-36.36
	Operating income	1,662,560	(63,970)	1,598,590	1,525,189	73,401	4.81
190 a)	Payroll	(614,987)	-	(614,987)	(577,332)	(37,655)	6.52
190 b)	Other administrative costs	(316,589)	-	(316,589)	(308,957)	(7,632)	2.47
210+220	Net adjustments to property, plant and equipment and intangible assets	(79,258)	-	(79,258)	(61,350)	(17,908)	29.19
	Operating costs	(1,010,834)	-	(1,010,834)	(947,639)	(63,195)	6.67
	Net operating income	651,726	(63,970)	587,756	577,550	10,206	1.77
130 a)
	Net impairment adjustments to financial assets at amortised cost	(155,206)	61,251	(93,955)	(412,954)	318,999	-77.25
130 b)	Net impairment adjustments to financial assets at fair value	2,054	-	2,054	(101,000)	103,054	-102.03
###	Net impairment adjustments to other financial assets	-	18,843	18,843	12,880	5,963	46.30
140)	Profit/loss from contract modifications without derecognition	(2,719)	2,719	-	-	-	n.s.
	Net impairment adjustments to credit risk	(155,871)	82,813	(73,058)	(501,074)	428,016	-85.42
200	Net provisions for risks and charges	(49,130)	(18,843)	(67,973)	(20,870)	(47,103)	225.70
###	Contributions to SRF, DGS, IDGF - VS	(52,400)	-	(52,400)	(36,152)	(16,248)	44.94
250+270	Gains (Losses) on disposal of investments and impairment losses on
+280	goodwill	8,953	-	8,953	11,433	(2,480)	-21.69
###	Gain on a bargain purchase	-		-	130,722	(130,722)	-100.00
290	Profit from current operations before tax	403,278	-	403,278	161,609	241,669	149.54
300	Income taxes on current operations	(23,974)	-	(23,974)	(13,513)	(10,461)	77.41
330	Profit (Loss) for the period	379,304	-	379,304	148,096	231,208	156.12
340	Profit (Loss) for the period pertaining to minority interests	(21,178)	-	(21,178)	862	(22,040)	--
350	Profit (Loss) for the period pertaining to the Parent Company	358,126	-	358,126	148,958	209,168	140.42

Reclassified consolidated income statement pro-forma

(in thousands of Euro)
Captions		1st	2nd	3rd	1st quarter	2nd quarter	3rd quarter	4th quarter
		quarter	quarter	quarter	2017	2017	2017	2017
		2018	2018	2018
		pro-forma	pro-forma	pro-forma
10+20	Net interest income	267,597	259,511	259,014	288,114	282,005	280,218	274,142
40+50	Net commission income	198,120	190,936	188,025	177,373	181,851	184,802	196,602
70	Dividends	584	12,877	325	312	10,812	507	785
80+90+100+110	Net trading income	153,634	16,431	20,879	24,664	25,869	20,489	32,112
230	Other operating charges/income	11,485	8,174	10,998	10,310	14,298	23,565	10,017
	Operating income	631,420	487,929	479,241	500,773	514,835	509,581	513,658
190 a)	Payroll	(207,534)	(212,900)	(194,553)	(194,125)	(191,551)	(191,656)	(206,146)
190 b)	Other administrative costs	(102,285)	(109,981)	(104,323)	(96,628)	(104,864)	(107,465)	(116,654)
210+220	Net adjustments to property, plant and equipment and intangible assets	(21,339)	(34,986)	(22,933)	(18,685)	(22,012)	(20,653)	(26,079)
	Operating costs	(331,158)	(357,867)	(321,809)	(309,438)	(318,427)	(319,774)	(348,879)
	Net operating income	300,262	130,062	157,432	191,335	196,408	189,807	164,779
130 a)	Net impairment adjustments to financial assets at amortised cost	(504)	(39,219)	(54,232)	(133,573)	(189,659)	(89,722)	(123,021)
130 b)	Net impairment adjustments to financial assets at fair value	1,763	141	150	(17,381)	(54,236)	(29,383)	(3,628)
###	Net impairment adjustments to other financial assets	13,964	(2,041)	6,920	4,647	1,787	6,446	(28,193)
	Net impairment adjustments to credit risk	15,223	(41,119)	(47,162)	(146,307)	(242,108)	(112,659)	(154,842)
200	Net provisions for risks and charges	(25,627)	(23,335)	(19,011)	(5,661)	(5,941)	(9,268)	(9,708)
###	Contributions to SRF, DGS, IDGF - VS	(20,282)	(8,670)	(23,448)	(18,061)	2,114	(20,205)	(1,569)
250+270
+280	Gains (Losses) on disposal of investments and impairment losses on goodwill	2,827	2,591	3,535	3,705	2,843	4,885	(21,319)
###	Gain on a bargain purchase	-	-	-	-	130,722	-	60,170
290	Profit from current operations before tax	272,403	59,529	71,346	25,011	84,038	52,560	37,511
300	Income taxes on current operations	(6,918)	(2,850)	(14,206)	(7,743)	17,926	(23,696)	(8,725)
330	Profit (Loss) for the period	265,485	56,679	57,140	17,268	101,964	28,864	28,786
340	Profit (Loss) for the period pertaining to minority interests	(14,462)	183	(6,899)	(2,710)	2,540	1,032	(1,306)
350	Profit (Loss) for the period pertaining to the Parent Company	251,023	56,862	50,241	14,558	104,504	29,896	27,480

Consolidated balance sheet

				(in thousands of Euro)
Assets		30.09.2018 31.12.2017		Change Change (%)
10. Cash and cash equivalents	392,189	420,299	(28,110)	-6.69
20. Financial assets measured at fair value through profit or loss	1,413,653	1,326,601	87,052	6.56
a) Financial assets held for trading	287,687		414,294 (126,607)	-30.56
b) Financial assets designated at fair value c) Other financial assets mandatorily measured at fair value through profit or	216,810	223,192	(6,382)	-2.86
loss	909,156	689,115	220,041	31.93
30. Financial assets measured at fair value through other comprehensive income		9,026,242 13,398,757 (4,372,515)		-32.63
40. Financial assets measured at amortised cost	55,863,032		51,561,586 4,301,446	8.34
a) Loans to banks		5,520,689 3,205,849 2,314,840		72.21
b) Loans to customers		50,342,343 48,355,737 1,986,606		4.11
50. Hedging derivatives	57,469	54,061	3,408	6.30
70. Equity investments	444,844	454,367	(9,523)	-2.10
90. Property, plant and equipment	1,051,767	1,063,483	(11,716)	-1.10
100. Intangible assets	495,059	506,627	(11,568)	-2.28
of which: goodwill	327,084	327,084	-	-
110. Tax assets	1,746,815	1,848,127	(101,312)	-5.48
a) current	370,396		575,441 (205,045)	-35.63
b) deferred	1,376,419	1,272,686	103,733	8.15
130. Other assets	730,807	704,899	25,908	3.68
Total Assets		71,221,877 71,338,807 (116,930)		-0.16

Consolidated balance sheet

(in thousands of Euro)
Liabilities and shareholders' equity				30.09.2018 31.12.2017 Change Change (%)
10. Financial liabilities measured at amortised cost		63,914,611 63,230,643 683,968		1.08
a) Due to banks		12,730,558 12,984,226 (253,668)		-1.95
b) Due to customers		44,387,688 42,694,078 1,693,610		3.97
c) Debt securities issued	6,796,365		7,552,339 (755,974)	-10.01
20. Financial liabilities held for trading	150,490	170,046	(19,556)	-11.50
40. Hedging derivatives	27,812	23,795	4,017	16.88
60. Tax liabilities	85,569		106,218 (20,649)	-19.44
a) current	4,356	2,258	2,098	92.91
b) deferred	81,213		103,960 (22,747)	-21.88
80. Other liabilities	1,470,229	1,416,660	53,569	3.78
90. Provision for termination indemnities	185,527	187,536	(2,009)	-1.07
100. Provisions for risks and charges	531,535	487,178	44,357	9.10
a) Commitments and guarantees granted	64,013	46,793	17,220	36.80
b) pensions and similar commitments	128,720	137,148	(8,428)	-6.15
c) other provisions	338,802	303,237	35,565	11.73
120. Valuation reserves	34,557		75,089 (40,532)	-53.98
150. Reserves		1,622,226 2,445,454 (823,228)		-33.66
160. Share premium reserve	930,073	930,073	-	-
170. Share capital	1,443,925	1,443,925	-	-
180. Treasury shares (-)	(7,258)	(7,258)	-	-
190. Minority interest(+/-)	474,455		653,010 (178,555)	-27.34
200 Net Profit (Loss) for the period (+/-)	358,126	176,438	181,688	102.98
Total liabilities and shareholders' equity		71,221,877 71,338,807 (116,930)		-0.16

Consolidated income statement

Captions 30.09.2018 30.09.2017 Change Change % 10. Interest and similar income 1,070,855 1,065,138 5,717 0.54 of which: interest income calculated using the effective interest method - - - n.s. 20. Interest and similar expense (220,763) (214,801) (5,962) 2.78 30. Net interest income 850,092 850,337 (245) -0.03 40. Commission income 603,652 570,930 32,722 5.73 50. Commission expenses (26,571) (26,904) 333 -1.24 60. Net commission income 577,081 544,026 33,055 6.08 70. Dividends and similar income 13,786 11,631 2,155 18.53 80. Net trading income 25,217 33,275 (8,058) -24.22 90. Net hedging gains (losses) 1,992 (228) 2,220 -973.68 100. Gains/losses on disposal or repurchase of: 152,809 37,372 115,437 308.89 a) Financial assets measured at amortised cost (11,915) (13,022) 1,107 -8.50 b) Financial assets measured at fair value through other comprehensive income 164,452 50,187 114,265 227.68 c) Financial liabilities 272 207 65 31.40 110. Net results on financial assets and liabilities measured at fair value through profit or loss 10,926 603 10,323 - a) financial assets and liabilities designated at fair value (5,010) 603 (5,613) -930.85 b) other financial assets mandatorily measured at fair value 15,936 - 15,936 n.s. 120. Net interest and other banking income 1,631,903 1,477,016 154,887 10.49 130. Net impairment adjustments for credit risk relating to: (153,152) (513,954) 360,802 -70.20 a) Financial assets measured at amortised cost (155,206) (412,954) 257,748 -62.42 b) Financial assets measured at fair value through other comprehensive income 2,054 (101,000) 103,054 -102.03 140. Profit/loss from contractual modifications without derecognition (2,719) - (2,719) n.s. 150. Net profit from financial activities 1,476,032 963,062 512,970 53.26 180. Net profit from financial and insurance activities 1,476,032 963,062 512,970 53.26 190. Administrative costs: (1,078,950) (1,014,805) (64,145) 6.32 a) payroll (614,987) (577,332) (37,655) 6.52 b) other administrative costs (463,963) (437,473) (26,490) 6.06 200. Net provisions for risks and charges (49,130) (7,990) (41,140) 514.89 a) Commitments and guarantees granted 18,843 12,880 5,963 46.30 b) Other provisions (67,973) (20,870) (47,103) 225.70 210. Net adjustments to property, plant and equipment (43,900) (30,895) (13,005) 42.09 220. Net adjustments to intangible assets (35,358) (30,455) (4,903) 16.10 230. Other operating charges/income 125,631 140,537 (14,906) -10.61 240. Operating costs (1,081,707) (943,608) (138,099) 14.64 250. Profit (Loss) of equity investments 8,806 142,126 (133,320) -93.80 280. Gains (Losses) on disposal of investments 147 29 118 406.90 290. Profit (Loss) from current operations before tax 403,278 161,609 241,669 149.54 300. Income taxes on current operations (23,974) (13,513) (10,461) 77.41 310. Profit (Loss) from current operations after tax 379,304 148,096 231,208 156.12 330. Net profit (Loss) 379,304 148,096 231,208 156.12 340. Net profit (Loss) pertaining to minority interests (21,178) 862 (22,040) -- 350. Profit (Loss) for the period pertaining to the Parent Company 358,126 148,958 209,168 140.42

Performance ratios

		(in thousands of Euro)
Financial ratios		30.09.2018 01.01.2018
		(*)
Structural ratios
Net loans to customers/total assets	64.09%	66.08%
Net loans to customers/direct deposits from customers	89.18%	92.48%
Financial assets/total assets	23.37%	22.47%
Fixed assets/total assets	2.10%	2.16%
Goodwill/total assets	0.46%	0.47%
Direct deposits/total assets	89.74%	89.92%
Deposits under management/indirect deposits	54.97%	55.08%
Financial assets/tangible equity	3.82	3.83 (1)
Total tangible assets/tangible equity	16.22	16.92 (2)
Net interbank lending/borrowing (in thousands of Euro)		(8,721,024) (9,984,026)
Number of employees	11,627	11,653 (3)
Number of national bank branches	1,219	1,218
Profitability ratios
ROE	10.75%	3.62% (4)
ROTE	12.11%	4.04% (5)
ROA (net profit/total assets)	0.53%	0.21%
Cost to income ratio	60.80%	62.13% (6)
Net adjustments to loans/net loans to customers	0.33%	0.88%
Basic EPS	0.745	0.310
Diluted EPS	0.745	0.310
Risk ratios
Net non-performing exposures/net loans to customers	8.34%	9.21%
Net bad loans/net loans to customers	4.54%	4.99%
Net unlikely to pay loans/net loans to customers	3.63%	4.03%
Net past due loans/net loans to customers	0.17%	0.19%
Adjustments to non-performing exposures/gross NPEs	56.71%	59.34%
Adjustments to bad loans/gross bad loans	64.49%	67.37%
Adjustments to unlikely to pay loans/gross unlikely to pay loans	42.19%	43.55%
Adjustments to past due loans/gross past due loans	12.83%	14.09%
Adjustments to performing exposures/gross performing exposures	0.38%	0.58%
Texas ratio	94.05%	101.50% (7)

Financial ratios	30.09.2018	01.01.2018 (**)
Funds (Phased in) Own
Common Equity Tier 1 (CET1)	4,459,667	4,410,721 (8)
Own Funds	5,367,036	5,227,226
Risk-weighted assets (RWA)	30,265,682	32,394,482
Capital and liquidity ratios
Common Equity Tier 1 Ratio (CET1 Ratio) - Phased in	14.74%	13.62%
Tier 1 Ratio (T1 Ratio) - Phased in	14.84%	13.63%
Total Capital Ratio (TC Ratio) - Phased in	17.73%	16.14%
Common Equity Tier 1 Ratio (CET1 Ratio) - Fully Phased	12.00%	11.06%
Leverage Ratio - Phased in	6.1%	6.1% (9)
Leverage Ratio - Fully Phased	4.9%	6.0% (10)
Liquidity Coverage Ratio (LCR)	132.2%	113.7%
Net Stable Funding Ratio (NSFR)	n.d.	105.2% (11)

Non-financial ratios	30.09.2018	01.01.2018 (**)
Productivity (in thousands of Euro) ratios
Direct deposits per employee	4,402.17	4,311.93
Loans to customers per employee	3,926.00	3,987.70
Assets managed per employee	1,720.81	1,695.21
Assets administered per employee	1,409.69	1,382.51
Core revenues per employee	122.75	118.93 (12)
Net interest and other banking income per employee	140.35	125.98
Operating costs per employee	93.03	81.58

Performance ratios notes

Annexes

(1) Tangible equity = total shareholders' equity net of intangible assets.

(2) Total tangible assets = total assets net of intangible assets.

(3) The number of employees does not include the expectations.

(4) ROE is calculated on an annual basis, replicating the result for the period for the remaining periods of the year.

(5) ROTE is calculated on an annual basis, replicating the result for the period for the remaining periods of the year.

(6) The cost/income ratio has been calculated on the basis of the layout of the reclassified income statement (operating expenses/operating income); when calculated on the basis of the layouts provided by Circular no. 262 of the Bank of Italy the cost/income ratio is at 66.29% (64.76% at 30 September 2017 as per the Consolidated interim report on operations as at 30 September 2017).

(7) The texas ratio is calculated as the relationship between total gross non-performing loans and net tangible equity, including minority interests, increased by total provisions for non-performing loans.

(8) The ratio is calculated according to the provisions of Regulation (EU) 575/2013 (CRR), as amended by the Commission Delegated Regulation (EU) 2395/2017.

(9) The ratio is calculated according to the provisions of Regulation (EU) 575/2013 (CRR), as amended by the Commission Delegated Regulation (EU) 62/2015.

(10) See previous note.

(11) The NSFR, not yet available, is in any case estimated to exceed 100% (105.2% as at 31 December 2017).

(12) Core revenues ⁼ net interestincome ⁺ net commissionincome.

(*) The comparative figures have been appropriately recalculated at 1 January 2018 to take account of the impact of first-time application of IFRS 9, with the exception of those relating to profitability ratios for which reference is made to the figures at 30 September 2017 as per the Consolidated interim report on operations as at 30 September 2017 (figures at 31 December 2017 as per the Consolidated Financial Statements as at 31 December 2017 only for ROE and ROTE).

(**) The comparative figures have been appropriately recalculated at 1 January 2018 to take account of the impact of first-time application of IFRS 9, with the exception of those relating to the Leverage Ratio (Phased In and Fully Phased), the LCR and the NSFR, for which reference is made to the figures at 31 December 2017 as per the Consolidated Financial Statements at 31 December 2017, and to the productivity ratios calculated on economic data for which reference is made to the figures at 30 September 2017 as per Consolidated interim report on operations as at 30 September 2017.

Contacts for Investors and Financial Analysts

Gilberto Borghi Head of Investor Relations

Via San Carlo, 8/20 - 41121 Modena - Italy
+39 059 2022194
gilberto.borghi@bper.it

Giulia Bruni Investor Relations

Alessandro Simonazzi

Head of Planning & Control

Via San Carlo, 8/20 - 41121 Modena - Italy
+39 059 2022194
alessandro.simonazzi@bper.it

Nicola Sponghi Investor Relations

Via San Carlo, 8/20 -	41121 Modena - Italy
+39 059 2022014
nicola.sponghi@bper.it