Bper Banca — Investor Presentation 2017

Feb 8, 2018

FY17 consolidated results

Alessandro Vandelli - Chief Executive Officer8 February 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 BonfattiManager 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

FY17 Results

Executive summary

Focus on Asset Quality

Balance sheet structure

Profit and loss

Liquidity and capital adequacy

Final remarks

Annexes

Executive summary

• FY17 Net profit at 176.4 €/mn (14.3 €/mn in 2016) affected by the expected loss related to Nuova Carife1 (100% of the capital acquired in Jun.'17) and other non-recurring items2 for -169.9 €/mn, substantially offset by the badwill3 arising from Nuova Carife of +190.9 €/mn
• Proposal for a cash dividend of 11 €/cents per share nearly doubled vs 6 €/cents in 2016
• Among the highest capital positions with a CET1 ratio Fully phased of 13.7% along with low leverage
• •CET1 ratio "Phased In" of 13.9% as of 31 Dec.'174
• •Excess capital buffer of 576 bps (c. +1.9 €/bn) vs minimum regulatory requirement (SREP 2018 at 8.125%)
• Asset quality improvement accelerates further with ^a gross NPE ratio at 19.8%, well below Jun.'16 peak at 23.5% and down for the sixth quarter in ^a row thanks to the strategic actions implemented in recent years to enhance the Group's credit quality
• Strong improvement of all main asset quality indicators in 2017:
• • default rate at 2.1%(4.2% in 2016); danger rate at 16.1% (17.6% in 2016); cure rate at 11.5% (8.3% in 2016);
• •further increase of NPE cash coverage ratio at 48.7% up by more than ⁴ p.p. vs 44.5% in Dec.'16
• •Texas ratio strong improvement at 101.9% from 111.6% in Dec.'16 very close to declining below 100% threshold

Agenda

Organization of Group credit units and main achievements (1/3)

• Credit policies integrated within the commercial budgeting (top down side) and the underwriting procedures (bottom up side)
• Streamlined underwriting process for Individuals and SMEs clients through:
• • Implementation of ^a no lending zone coherently with Risk Appetite targets
• • Increase role of Network (more than 50% of file is underwritten by branches) supported and driven by ^a new sophisticated scoring model
• Over 80 underwriters who are mainly focalized on Corporate files in order to improve control to most relevant files
• Improved the credit analysis of corporate files by dedicated supporting tools regarding:
• •Business Plan analysis and simulations
• •Definition of Credit Plafond by Group

Performing exposure rated by risk profile1 (%) Focus on underwriting process

Organization of Group credit units and main achievements (2/3)

Focus on pre-default & default management

• Creation of ^a department with 120+ NPE experts
• Enhanced early warning system in order to increase detection capabilities
• • Specialized detection models for asset class (especially developed model dedicated to Commercial Real Estate and to PublicAdministrations)
• •Design to warn both Stage ² and Stage 3 IFRS9
• Redesigned Credit Department in order to improve specialization by asset class
• • launch of ^a unit dedicated to Commercial Real Estate with both credit and real estate experts
• • Industrialized Small Ticket managemen^t (focus on High Risk Performing; Past Due and UTP) by the use of specialized outsourcers and ^a wide automation of credit process
• Launch of the ^a unit dedicated to manage early stages of problematic loans in progress

2013 2014 2015 2016 2017

Cure rate (gross; %)

Source: Consolidated Financial Report - Table A.1.7.

Definitions in this page:

•Danger rate: FY17 bad loans inflows from other NPE / (UtP + PD loans) stock as of 31 Dec.'16;

•Cure rate: FY17 (UtP + PD loans) outflows back to performing loans / (UtP + PD loans) stock as of 31 Dec.'16 Page | 7

| Strettamente riservato e confidenziale

Organization of Group credit units and main achievements (3/3)

BPER Credit Management ("BCM") was established in January 2016 to manage all bad loans of BPER Group Since BCM's inception, a number of operating model best practice elements were put in place to maximise results

Elements of BCM operating model

• •130+ specialised workout managers (out of c.160 total staff) dedicated to bad loans work-out
• • Organisational model focused on high-value exposures:
• •Dedicated team for strategic positions
• •Industrialised outsourcing model for small ticket exposures (GBV less than €100,000)
• •Regional managemen^t of other positions through five hubs distributed over the national territory
• •Data-driven borrower segmentation to drive workout strategy selection and application
• • Formalised "library" of workout strategies, including rules for internal/ external management, strategy applicability and rules of engagemen^t with external parties (e.g. legal firms)
• • New database on bad loansportfolio implemented
• • Ongoing monitoring of financial and operational KPIs through dedicated performance managemen^t and reporting infrastructure
• •Incentive system effective for work-out officers from 2018, based on cash recovery and GBV reduction targets

Results achieved

•Cash collections: 2017 +33% y/y

2016 +12% y/y

NPE issue successfully tackled in last 18 months

Gross NPE ratio evolution (%)

Texas ratio1 Cash coverage ratio evolution (%) evolution (%)

| Strettamente riservato e confidenziale One of the smallest Unlikely to Pay loans ratio in the Italian banking system

Benchmark1 BPER Group: UtP / Total Loans evolution (gross; %) : UtP / Total Loans ratio (gross; %)

Bank 1 Bank 2* Bank 3 Bank 4* Bank 5 BPER* Bank 6 Bank 7* Bank 8* Bank 9

| Strettamente riservato e confidenziale NPE Strategy 2018-20201 approved by the BoDs on November 8th ²⁰¹⁷

Agenda

FY17 Results

• Executive summary
• Focus on Asset Quality

Balance sheet structure

• Profit and loss
• Liquidity and capital adequacy
• Final remarks

Annexes

Switch in favour of AuM and Bancassurance continues

Total Funding (€/mn)

Direct Funding breakdown (%)

€ /m n	De 1 6 c	De 1 7 c	C hg ( % ) %	l to ta on
Cu d s ig h t a ts t rre n cc ou n an de i ts p os	3 2, 3 3 1	3 2 8 6 5,	9. 1 % +	0. 2 % 7
T im de i ts e p os	2, 2 2 0	2, 4 6 5	1 0. 6 % +	4. 9 %
Re ha ts p urc se a g ree me n	1, 8 0 7	2, 1 4 9	2 0. % 7 +	4. 3 %
O he ho loa t t- te r s r rm ns	2, 8 2 5	2, 8 0 4	8. 6 % +	6 % 5.
Bo ds n	6, 1 6 5	3 9 2 5,	1 2. 4 % -	1 0. % 7
Ce i f ica t tes r	9 2	0 7	2 3. 9 % -	0. 1 %
Ce i f ica f de i t tes t r o p os	2, 8 8 5	2, 0 9 1	1 9. 2 % -	4. 2 %
D ire t c to de i ts c us m er p os	4 7, 7 4 8	5 0, 2 4 6	% 5. 2 +	% 1 0 0. 0

Direct funding: bonds

New Tier 2 10NC5 issued in May'17 for a benchmark size of 500 €/mn and a coupon of 5.125%

Direct Funding breakdown by customer segment (%)

| Strettamente riservato e confidenziale AuM and Bancassurance1 significantly up and AuM net inflows nearly doubled

Indirect Deposits and Bancassurance1 (€/mn) Indirect Deposits and Bancassurance1 composition (%)

AUM net inflows2 (€/mn)

(1) Life-insurance products (2) figures from data management system Note: figures in this page may not add exactly due to rounding differences

Page | 14

| Strettamente riservato e confidenziale Customer loans up mainly supported by the positive trend of the retail sector

Customer loans (€/mn)

Customer loans breakdown by customer segment (%)

Customer loans breakdown (net figures; €/mn )

€ /m n	De 1 6 c	De 1 7 c	C hg ( % )
Cu t a ts rre n cc ou n	5, 3 9 2	5, 1 5 1	4. 5 % -
Mo loa tg r ag e ns	2 6, 4 8 8	2 8, 7 8 4	8. 7 % +
Re ha t p urc se a g ree me n	0	0
Le d fac ing to as es a n r	3, 3 3 7	3, 6 2 3	7. 4 % +
De b i ies t s t ec ur	3 2 2	2 0 6	-3 6. 2 %
O he ion t tra t r ns ac s	9, 9 1 9	1 0, 0 5 1	1. 3 % +
Ne t lo to to an s c us m er s	4 5, 4 9 4	4 7, 8 1 5	5. 1 % +

Residential mortgages production up by 23.1% in FY17 vs FY16

Customer loans breakdown by sectors (%)

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

| Strettamente riservato e confidenziale Financial Assets portfolio re-mix with the reduction of Italian govies weight

Financial Assets (€/bn) Financial Assets breakdown (€/mn; %)

€ /m n	H F T	C F V	A F S	H T M	To ta l	% to ta l o n
Bo ds n	8 3 4	8 2	7 1 1, 5 4	7 2, 6 3	1 4, 5 6 0	9 4. 2 %
Eq i ty u	0 1 0	0	3 2 1		4 2 1	2.7 %
Fu ds d S ica n an v	8 7	5 5	2 0 5		3 4 7	2. 2 %
O he * t r	1 2 9		3		1 3 2	0. 9 %
To ta l	6 6 3	8 3	1 2, 0 7 6	2, 6 3 7	1 5, 4 6 0	1 0 0. 0 %
To ta l a f 3 1. 1 2. 2 0 1 6 s o	6 7 7	8 4	1 0, 4 3 3	2, 5 1 6	1 3, 7 1 0
Ch D ( %) YT g	-2. 0%	-1. 2%	+1 5.7 %	+4 .8%	+1 2.8 %

Bond PTF duration: 2.2y in Dec.'17 (2.9y in Dec.'16)

Government bond portfolio (€/bn)

AFS & HTM reserves (net of taxes; €/mn)

(*) Derivatives for hedging purposes related to HFT portfolio

(1) Duration in years taking into account hedging

Note: financial bond portfolio does't include 205.7 €/mn of Loans and Receivables (banks and customers) not included Note: figures in this page may not add exactly due to rounding differences

| Strettamente riservato e confidenziale Significant decline of gross NPE ratio below 20% and coverage further increase

Net NPE (€/mn)

Cash coverage ratios (%)

	Dec 16	Mar 17	Jun 17	Sept 17	Dec 17
Bad Ioans ("Sofferenze")	57.2%	58.1%	58.8%	59.0%	59.3%
including write-off	62.9%	63.6%	63.8%	63.8%	63.7%
Unlikely to pay	23.5%	24.2%	26.4%	26.7%	27.2%
Past due	7.8%	8.0%	7.9%	11.2%	10.6%
NPE	44.5%	45.6%	46.9%	47.7%	48.7%
including write-off	49.4%	50.3%	51.3%	51.9%	52.6%
Performing exposures	0.5%	0.4%	0.5%	0.5%	0.5%
Total loans	10.2%	10.2%	10.3%	10.3%	10.1%

Strong improvement of all main credit quality indicators

| Strettamente riservato e confidenziale

Source: consolidated Financial Report - Table A.1.7.

Page | 18 Definitions in this page. Default rate: FY17 NPE inflows / performing loans stock as of 31 Dec.'16; Danger rate: FY17 bad loans inflows from other NPE / (UtP + PD loans) stock at 31 Dec.'16; Cure rate: FY17 (UtP + PD loans) outflows back to performing loans / (UtP + PD loans) stock as of 31 Dec.'16

Agenda

FY17 Results

• Executive summary
• Focus on Asset Quality
• Balance sheet structure

Profit and loss

• Liquidity and capital adequacy
• Final remarks

Annexes

Solid Net profit for the FY17 of € 176.4 million

1,124.5 2,038.8 740.6 115.6 58.2 783.5425.6Includes non-Includes non-recurring impairments for a net amount of -111.1 €/mnof which of AtlanteFund (-52.9 €/mn) and FITD-SV (-29.5 €/mn) Includes non- recurring items for a net amount of -8.8 €/mnIncluding non-recurring items: + badwill on Nuova Carife: +190.9 €/mn + other items: +12.4 €/mn Other items: -10 €/mn

FY17 Reclassified consolidated Profit & Loss* (€/mn)

(1) Caption exposed net of "Recovery of taxes" reallocated, for better representation, at caption 180 b) "Other administrative expenses", where relative tax costs are accounted (126.2 €/mn in FY17 and 118.7 €/mn in FY16)

(2) See details on page 26, 34, 35

CR Saluzzo and Nuova Carife have been included in Consolidated P&L respectively from 4Q16 and from 3Q17. See details on page 31 Note: n.m.: Not meaningful; Figures in this page may not add exactly due to rounding differences

| Strettamente riservato e confidenziale Resilient Core income supported by good net commissions performance

Core Income (€/mn)

Net Interest Income (€/mn)

Net Interest Income contribution* (€/mn)

(*) 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». The full 2016 benefit of ECB "sweetener" (TLTRO2) of 8.3 €/mn was totally accounted in 4Q16 (pro-quota 4Q16 benefit of 4.2 €/mn out of a total benefit of 8.3€/mn); TLTRO2 benefit of 33.7 €/mnin FY17 (1Q17 of 5.1 €/mn, 9.3 €/mn in 2Q17, 9.4 €/mn in 3Q17, 10.0 €/mn in 4Q17 )

Note: CR Saluzzo and Nuova Carife have been included in BPER Banca Group rispectively in 4Q16 and 3Q17. FY17 NII of CR Saluzzo of 13.7€/mn. Note: figures in this page may not add exactly due to rounding difference

Customer spread still under pressure but expected to stabilize in 2018

Net Interest Income contribution (%)

^% change y/y var. q/q

Spread (%)

Spread contribution (%)

Mark up & mark down (%)

(1): 2Q17, 3Q17 and 4Q17 spread calculated taking into account the available deposit with ECB, see on page 21

Note: figures from data management system

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

| Strettamente riservato e confidenziale Sound performance of net commissions thanks to AuM and Bancassurance

Net Commissions evolution (€/mn)

Net Commissions evolution (€/mn)

Net Commissions breakdown (€/mn; %)

	1 6 De c	( % ) to ta l on	1 De 7 c	( % ) to ta l on	C /y ( % ) hg y
In d ire de i d ba t ts a c p os n nca ssu ran ce	1 9 7. 4	2 7. 7 %	2 3 3. 1	3 1. 5 %	1 8. 1 % +
As de dy ( Au C ) ts u to se n r cu s	1 5. 5		1 5. 0		2. 8 % -
( ) As de Au M ts u t se n r m an ag em en	1 4 5. 8		1 7 6. 9		2 1. 3 % +
Ba nca ssu ran ce	3 6. 1		4 1. 2		1 4. 3 % +
Cre d i ds l lec ion d p t ca t ts r co s a n ay me n ,	1 4 2. 3	2 0. 0 %	1 4 5. 7	1 9. % 7	2. 4 % +
Lo d g tee ans an uar an s	3 2 9. 6	4 6. 2 %	3 2 1. 5	4 3. 4 %	2. 5 % -
O her iss ion t co mm s	4 3. 4	6. 1 %	4 0. 3	5. 4 %	7. 1 % -
To ta l	7 1 2. 7	1 0 0. 0 %	7 4 0. 6	1 0 0. 0 %	% +3 9

AuM up-front fees of 23.3 €/mn in FY17 (25.8 €/mn in FY16), weighing 3.1% on total net commissions

Indirect deposits and bancassurance breakdown(%)

Note: CR Saluzzo and Nuova Carife have been included in Consolidated P&L respectively from 4Q16 and from 3Q17. See details on page 36 Note: FY17 Net commissions of CR Saluzzo of 7.8 €/mn and FY17 Note: figures in this page may not add exactly due to rounding differences

+19.9%y/y

Trading income increasing net of non-recurring items

Dividends and Trading income (€/mn)

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

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

Trading gains* excluding dividends (€/mn) Trading gains* excluding dividends (€/mn)

| Strettamente riservato e confidenziale Operating costs affected by the Group's different perimeters 2017 vs 2016

11,635 11,653 841333490Dec 16 Carife in Carife out Staff reduction Dic 17

Operating Costs (€/mn) Operating costs breakdown (€/mn; %)

Op ing ( € /m ) t ts er a co s n	De 1 6 c	De 1 7 c	C hg /y ( % ) y
S f f e ta xp en se s	7 6 9. 1	7 8 3. 5	1. 9 % +
O he dm in is ive t tra t r a ex p en se s	4 1 7. 2	4 2 5. 6	2. 0 % +
D & A	8 0. 6	8 7. 4	8. 5 % +
Op ing t ts er a co s	1, 2 6 7. 0	1, 2 9 6. 5	2. 3 % +
No ing i tem n r ec urr s	9. 4	8. 0	1 4. 9 % -
C R Sa luz zo	7. 7	2 0. 0	n. m.
Op -fo t ing ts d l i ke er a co s p ro rm a an on a fo l i ke ba is r- s	1, 2 4 9. 9	1, 2 6 8. 5	1. % 5 +

Including Nuova Carife from 30 Jun.'17

Other administrative expenses (€/mn; %)

S ta f f e ( € /m ) xp en se s n	De 1 6 c	De 1 7 c	C hg /y ( % ) y
S f f e ta xp en se s	6 9. 1 7	8 3. 7 5	1. 9 % +
C R Sa luz zo	3. 3	1 2. 5	n.m
S ta f f e l i ke -fo l i ke ba is xp en se s o n a r- s	7 6 5. 8	7 7 1. 0	0. 7 % +
O he dm in is ive ( € /m ) t tra t r a ex p en se s n	De 1 6 c	De 1 7 c	C hg /y ( % ) y
O he dm in is ive t tra t r a ex p en se s	4 1 2 7.	4 2 6 5.	2. 0 % +
(o /w *) Bu sin lan oje cts ess p pr ex pe ns es	36 .9	25 .4	-3 1.3 %
C R Sa luz zo	2. 4	1 7.	n.m

Cost of credit declines to 112 bps vs 136 bps in 2016

| Strettamente riservato e confidenziale

Provisions breakdown (€/mn)

Net Provisions for Risks and Charges (€/mn)

Loan Loss Provisions evolution (€/mn)

Contribution to Funds (€/mn)

	De 1 6 c	De 1 7 c	C /y ( % ) hg y
Co /w ¹ i bu ion Fu ds tr t to n n o :	6 2. 5	3 7. 7	3 9. % 7 -
S R F	0. 0 5	1 9 5.	6 8. 2 % -
D G S	1 2. 9	2 1. 8	6 8. 5 %
S ( ) Ne i bu ion F I T D- V Te t c tr t on rca s	0. 4 -	0. 0

Contributions to funds accounted in FY16 includes contribution to SRF (ordinary of 15.1 €/mn and straordinary of 34.9), contribution to Interbank Deposit Guarantee Fund ("FITD-SV") for Tercas of 11.3 €/mn and write-back from Interbank Deposit Guarantee Fund ("FITD-SV") for Tercas of 11.7 €/mn, contribution to DGS (ordinary 16.9 €/mn, write-back 4.0 €/mn). Contributions to funds accounted in FY17 includes contribution to ordinary SRF of 18.0 €/mn, write-back from Single Resolution Fund ("SRF") of 2.1 €/mn and ordinary contribution to DGS of 21.8 €/mn.

(1) For details see on pages 34 and 35

Note: CR Saluzzo and Nuova Carife have been included in BPER Banca Group rispectively from 4Q16 and from 3Q17. FY17 Total provisions of CR Saluzzo were 2.8 €/mn. Note. Figures in this page may not add exactly due to rounding differences

Agenda

 i E t e c e s x u v u	m m	a r y
----------------------------------------------------------	--------	-------------

Focus on Asset Quality

Balance sheet structure

Profit and loss

Liquidity and capital adequacy

Final remarks

Annexes

Good liquidity position and high level of unencumbered eligible assets

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

• •ECB exposure of 9.3 €/bn in Dec.'17 fully composed of TLTRO2 operations (4.1 €/bn TLTRO2 in Jun.'16 and 1 €/bn TLTRO2 in Dec.'16 and 4.2 €/bn in Mar.'17)
• •LCR and NSFR above 100%

Among best-in-class capital positions in the Italian banking system

B3 Common Equity Tier 1 Ratios (%)*

Regulatory capital & ratios

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

• CET1 ratio Fully Phased at 13.68% (13.81% in Sept.'17 and 13.27% in Dec.'16) down by 13 bps since Sept.'17 . In 3Q17, ECB authorized the removal of the add-on on RWA, requested when AIRB models were validated on Jun.'16, following the completion of remedial actions taken by the Bank

| Strettamente riservato e confidenziale

• • Main changes in 4Q17 vs 3Q17:
• oincrease of of RWA: c. -16 bps
• oothers: c. +3 bps
• • Excess capital buffer of 576 bps (c. +1.9 €/bn) vs minimum regulatory requirement (SREP 2018 at 8.125%)
• • AIRB model extension to Nuova Carife expected in 1Q18 with an estimated positive impact on CET1 ratio of 10/15 bps

• IFRS 9 First Time Adoption estimated impact (first reporting date - 31 March 2018): CET1 ratio pro-forma Fully Phased higher than 12% (without taking into account the fiscal effetct); CET1ratio Phased in higher than 15%,¹

Capital requirements

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

Agenda

FY17 Results

• Executive summary
• Focus on Asset Quality
• Balance sheet structure
• Profit and loss
• Liquidity and capital adequacy

Final remarks

Annexes

| Strettamente riservato e confidenziale Final remarks: delivering on asset quality while maintaining a solid capital base

• Effective and visible results in managing credit quality. Strong improvement of all main asset quality indicators:
• •gross NPE ratio down by 3.7 p.p. in 18 months from the peak of 23.5 in Jun.'16 without massive bad loans disposals;
• •default rate at 2.1% (4.2% in 2016), danger rate at 16.1% (17.6% in 2016) and cure rate at 11.5% (8.3% in 2016);
• •further increase of NPE cash coverage ratio at 48.7% up by more than ⁴ p.p. vs 44.5% in Dec.'16
• •Texas ratio strong improvement at 101.9% from 111.6% in Dec.'16 very close to declining below 100% threshold
• Very solid capital position, low leverage and good liquidity position:
• • CET1 ratio Phasein at 13.9% well above the SREP 2018 (8.125% one of the lowest in the Italian banking system)
• •Excess capital buffer of 576 bps (c. +1.9 €/bn) vs minimum regulatory requirement (SREP 2018 at 8.125%)
• Strong commitment to continue reducing bad loans and improving recoveries, better than those declared in the NPE Strategy 2018-2020 presented in November 2017¹

Agenda

FY17 Results

• Executive summary
• Focus on Asset Quality
• Balance sheet structure
• Profit and loss
• Liquidity and capital adequacy
• Final remarks

Annexes

Reclassified consolidated Profit & Loss*

						2 0	1 6		2 0 1 7
				C /y hg y									C /q hg q
Cap tion s	( € /m ) n	De 1 6 c	De 1 7 c	( ) %	1 Q 1 6	2 Q 1 6	3 Q 1 6	4 Q 1 6	1 Q 1 7	2 Q 1 7	3 Q 1 7	4 Q 1 7	( ) %
10+ 20	Ne inte inc t t res om e	1, 1 7 0. 4	1, 1 2 4. 5	-3. 9 %	2 9 6. 8	2 9 3. 6	2 8 5. 7	2 9 4. 3	2 8 8. 1	2 8 2. 0	2 8 0. 2	2 7 4. 1	-2. 2 %
40+ 50	Ne iss ion t c om m s	7 1 2. 7	7 4 0. 6	3. 9 % +	1 7 7. 1	1 8 1. 0	1 7 4. 8	1 7 9. 8	1 7 7. 4	1 8 1. 9	1 8 4. 8	1 9 6. 6	6. 4 % +
	Co Inc re om e	1, 8 8 3. 2	1, 8 6 5. 1	-1. 0 %	4 7 3. 9	4 7 4. 6	4 6 0. 5	4 7 4. 1	4 6 5. 5	4 6 3. 9	4 6 5. 0	4 7 0. 7	1. 2 % +	lu de Inc s n on
70	D iv i de ds n	9. 9	1 2. 4	2 8 % 5. +	0. 1	8. 7	0. 3	0. 7	0. 3	1 0. 8	0. 5	0. 8	4. 8 % 5 +	for ing ite rec urr ms
80+ 90+ 100 +11 0	T d ing ins ra g a	1 2 0. 0	1 0 3. 1	-1 4. 1 %	1 5. 7	4 9. 1	2 5. 5	2 9. 8	2 4. 7	2 5. 9	2 0. 5	3 2. 1	5 6. 7 % +	f t a t o an ne mo un
220	O he / re ¹ t ts r c os ve nu es	5 4. 2	5 8. 2	7. 3 % +	1 5. 5	1 6. 4	1 3. 6	8. 7	1 0. 3	1 4. 3	2 3. 6	1 0. 0	-5 7. 5 %	-8. 8 € in /m F Y17 n
	Op t ing Inc er a om e	2, 0 6 7. 3	2, 0 3 8. 8	-1. 4 %	5 0 5. 2	5 4 8. 8	5 0 0. 0	5 1 3. 3	5 0 0. 8	5 1 4. 8	5 0 9. 6	5 1 3. 7	0. 8 % +	d + in 6.5 € /m an 2 n
a) 180	S f f e ta xp en se s	6 9. 1 7 -	8 3. 7 5 -	1. 9 % +	-1 9 6. 6	2 0 1. 7 -	1 6. 2 7 -	1 9 4. 7 -	1 9 4. 1 -	1 9 1. 6 -	1 9 1. 7 -	2 0 6. 1 -	6 % 7. +	F Y1 6
b) 180	A dm in is ive ¹-² tra t ex p en se s	4 1 2 7. -	4 2 6 5. -	2. 0 % +	-1 0 1. 1	1 0 2. 8 -	1 0 6. 1 -	1 0 3 7. -	9 6. 6 -	1 0 4. 9 -	1 0 7. 5 -	1 1 6. 7 -	8. 6 % +
200 +21 0	De ia ion & Am iza ion t t t p rec s or s	8 0. 6 -	8 4 7. -	8. % 5 +	-1 1 7.	2 0. 4 -	1 9 7. -	2 1 5. -	1 8. 7 -	2 2. 0 -	2 0. 7 -	2 6. 1 -	2 6. 3 % +
	Op t ing ts er a co s	1, 2 6 7. 0 -	1, 2 9 6. 5 -	2. 3 % +	-3 1 4. 8	3 2 4. 9 -	3 0 0. 2 -	3 2 7. 1 -	3 0 9. 4 -	3 1 8. 4 -	3 1 9. 8 -	3 4 8. 9 -	9. 1 % +
	Op Ne t t ing Inc er a om e	8 0 0. 3	7 4 2. 3	-7. 2 %	1 9 0. 4	2 2 4. 0	1 9 9. 8	1 8 6. 2	1 9 1. 3	1 9 6. 4	1 8 9. 8	1 6 4. 8	-1 3. 2 %
a) 130	Lo los is ion an s p rov s	6 1 9. 8 -	3 6. 0 5 -	-1 3. % 5	-1 1 4. 2	1 6 1. 9 -	1 2 4. 6 -	2 1 9. 1 -	1 3 3. 6 -	1 8 9. 7 -	8 9. 7 -	1 2 3. 0 -	3 1 % 7. +	lu de Inc s n on
b)+ c)+ d) 130	O he is ion t r p rov s	0. 3 5 -	1 1 9. 9 -	n.m	3 -7.	0. 4	1. 9 -	4 1. 5 -	1 2. 7 -	2. 4 5 -	2 2. 9 -	3 1. 8 -	n.m	ing rec urr im irm f ts a en o
	To ta l p is ion rov s	6 7 0. 0 -	6 5 5. 9 -	-2. 1 %	-1 2 1. 5	1 6 1. 5 -	1 2 6. 4 -	2 6 0. 6 -	1 4 6. 3 -	2 4 2. 1 -	1 1 2. 7 -	1 5 4. 8 -	3 7. 4 % +	p lan d (5 At Fu te n 2.9
190	Ne Pro is ion for R is ks d C ha t s an rg es v	3 2. 6 -	3 0. 6 -	-6. 3 %	-9. 6	1 2. 5 -	8 5. -	4. 7 -	5. 7 -	9 5. -	9. 3 -	9. 7 -	4. 7 % +	) d € /m F I T D- S V n an
	Co i bu ion Fu ds ( S R F, D G S, F I T D- S V ) ² ntr t to n	6 2. 5 -	3 7. 7 -	-4 8. 7 %	-1 0 5.	0. 4 -	1 6 7. -	2 9. 5 -	1 8. 1 -	2. 1	2 0. 2 -	1. 6 -	-9 2. 2 %	( ) € /m 29 .3 n
240 +26 5+2 70	Ne he inc t o t r om e	2 4. 6 -	1 8 1. 0	n.m	3. 2	4. 1 -	2. 5	2 6. 2 -	3. 7	1 3 3. 6	4. 9	3 8. 9	n.m
280	f ( ) for Pr i t los be tax o s e es	1 0. 5	1 9 9. 1	n.m	4 7. 4	4 5. 4	5 2. 4	1 3 4. 7 -	2 5. 0	8 4. 0	5 2. 6	3 7. 5	% 2 8. 6 -
290	Ta xe s	3 5.	2 2. 2 -	n.m	-1 4. 1	1 3. 7 -	1 2. 8 -	4 9 5.	7. 7 -	1 9 7.	2 3. 7 -	8. 7 -	-6 3. 2 %
310	Ne f it o f a de d isp t p ts ro ss e un r	0. 0	0. 0	n.m	0. 0	0. 0	0. 0	0. 0	0. 0	0. 0	0. 0	0. 0	n.m
320	Ne f i ( los ) t p t ro s	1 8 5.	1 6. 9 7	n.m	3 3. 3	3 1. 7	3 9. 6	8 8. 8 -	1 3 7.	1 0 2. 0	2 8. 9	2 8. 8	0. 3 % -
330	M ino ity Inte ts r res	1. 5 -	0. 5 -	-7 0. 7 %	-2. 3	2. 0	3. 2 -	1. 9	2. 7 -	2. 5	1. 0	1. 3 -	n.m	lu de Inc s n on f for it
340	Pr f i ( los ) for he io d t t o s p er	1 4. 3	1 7 6. 4	n.m	3 1. 0	3 3. 8	3 6. 4	8 6. 9 -	1 4. 6	1 0 4. 5	2 9. 9	2 7. 5	-8. 1 %	ing rec urr p ro l € /m i ion 19 0,9 n m
	in ing he Pa Co ta to t t p er re n mp an y													lat ba dw l l ive i to re
														f fe Nu Ca i o ov a r
	/ inc t co s om e /	6 1. 3 %	6 3. 6 %		6 2. 3 %	5 9. 2 %	6 0. 0 %	6 3. 7 %	6 1. 8 %	6 1. 9 %	6 2. 8 %	6 7. 9 %
	( inte inc iss ion ) t t t t c co s ne res om e + ne om m s	6 7. 3 %	6 9. 5 %		6 6. 4 %	6 8. 4 %	6 5. 2 %	6 9. 0 %	6 6. 5 %	6 8. 6 %	6 8. 8 %	7 4. 1 %
	f c d it ( bp ) t o co s re s	1 3 6	1 1 2		6 2	7 3	9 2	8 4	9 2	0 4	9 1	2 6
	f it / l inc t p to ta ne ro om e	0. 8 %	8. 7 %		6. 6 %	5. 8 %	7. 9 %	1 7. 3 % -	3. 4 %	1 9. 8 %	5. 7 %	5. 6 %
	tax te ra	5 0. 0 %	1 1. 2 %		2 9. 7 %	3 0. 1 %	2 4. 5 %	3 4. 1 %	3 1. 0 %	2 1. 3 %	4 5. 1 %	2 3. 3 %

(*) List of all non-recurring and other items for 2017/16 on page 34 and 35; other explanations on 4Q17 reclassified consolidated Profit & Loss on page 44

(1) Caption exposed net of "Recovery of taxes" reallocated, for better representation, at caption 180 b) "Other administrative expenses", where relative tax costs are accounted (126.2 €/mn in FY17 and 123.3 €/mn in FY16)

(2) See details on page 26, 34, 35. CR Saluzzo and Nuova Carife have been included in Consolidated P&L respectively from 4Q16 and from 3Q17. See details on page 36 Note: n.m.: Not meaningful; Figures in this page may not add exactly due to rounding differences

Main non-recurring and other items P&L 2017

	Ite m	Ca ( f C / ) t ion Ba k o Ita ly Fo t; irc lar 2 6 2 2 0 0 5 p n rm a u n.	€ /m n	De ip t ion sc r
No ing ite n-r ec ur r	ms
1 Q 17	Go dw i l l an d e inv tm ts	S Ca Ne im irm d A F 13 0- b t t a ust . to	-17 .2	S irm At lan Fu ds F I T D- V t te
2 Q 17	ity o q u es en	j ( ) p a en p.		Imp ( ) a en n ,
	Go dw i l l an d e ity inv tm ts o q u es en	Ne ive dw i l l re ise d in p f it o los ( Ca 26 5 ) at g g oo co g n ro r s p.	+1 3 0.7	Ba dw i l l on Nu Ca i fe ova r
	Go dw i l l an d e ity inv tm ts o q u es en	Ga in o d isp l o f f ina ia l as A F S ( Ca b ) ts 10 0- n os a nc se p.	+6 .9	Ca ita l g in fro Ba i l ic h i Sp p a m ss a
	Go dw i l l an d e ity inv tm ts o q es en u	Ne im irm d j A F S ( Ca 13 0- b ) t t a ust . to p a en p.	0. 8 -5	Imp irm ( At lan Fu d, F I T D- S V, he ) t te ot a en n rs
	Go dw i l l an d e ity inv tm ts o q u es en	( Ca ) Ne d j lan d e ip. 20 0 t a ust . to ert t a p rop y, p n q u p.	-3. 4	Ne d j lan d e ip. t a ust . to ert t a p rop y, p n q u
	Ot he r	Ne im irm d j loa ( Ca ) t t a ust . to 10 0-a p a en ns p.	-13 .1	Lo d isp l o f loa ss on os a ns
3 Q 17
	Go dw i l l an d e ity inv tm ts o q u es en	Ne im irm d j A F S ( Ca b ) t t a ust . to 13 0- p a en p.	-20 .9	Str d ina i bu ion F I T D- S V a d At lan Fu d ntr t te ao r ry co n n
	Go dw i l l an d e ity inv tm ts o q u es en	Ne im irm d j A F S ( Ca 13 0- b ) t t a ust . to p a en p.	-5. 3	Ne im irm d j A F S t t a ust . to p a en
	Go dw i l l an d e ity inv tm ts o q u es en	Ga f f S ( Ca ) in o d isp l o ina ia l as A F 10 0- b ts n os a nc se p.	+2 .8	f f S D isp ls o ina ia l as A F ts os a nc se
	Ot he r	Ne im irm d j loa ( Ca 10 0-a ) t t a ust . to p a en ns p.	0 -5.	Lo d isp l o f loa ss on os a ns
4 Q 17
	Go dw i l l an d e ity inv tm ts o q u es en	Ne ive dw i l l re ise d in p f it o los ( Ca ) at 26 5 g g oo co g n ro r s p.	+6 0. 2	Ba dw i l l on Nu Ca i fe ova r
	Go dw i l l an d e ity inv tm ts o q u es en	Ga in o d isp l o f f ina ia l as A F S ( Ca 10 0- b ) ts n os a nc se p.	+2 .3	D isp ls o f f ina ia l as A F S ts os a nc se
	Go dw i l l an d e ity inv tm ts o q u es en	A d j dw i l l ( Ca ) ust nts to 26 0 me g oo p.	-3 0. 0	A d j dw i l l ust nts to me g oo
	Go dw i l l an d e ity inv tm ts o q es en u	Ne im irm d j A F S ( Ca 13 0- b ) t t a ust . to p a en p.	+0 .5	Ne im irm d j A F S t t a ust . to p a en
	Go dw i l l an d e ity inv tm ts o q u es en	f ( Ca ) Ne im irm d j. he ina 13 0- d t t a to ot ets p a en r n. a ss p.	-17 .4	f Ne im irm d j he ina ia l as t t a ust nts to ot ts p a en me r nc se
	Ot he r	Ne im irm d j loa ( Ca 10 0-a ) t t a ust . to p a en ns p.	-2. 7	Lo d isp l o f loa ss on os a ns
	Pro lan d e ip ert t a p y, p n q u	( Ca ) Ne d j lan d e ip. 20 0 t a ust . to ert t a p rop y, p n q u p.	-4. 6	Ne d j lan d e ip. t a ust . to ert t a p rop y, p n q u
	To ta l		+3 3. 0
he ite r ms
1 Q 17		A dm in ist ive ( Ca ion 18 0- b ) rat t ex p en se p	-18 .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 17		( Ca ) A dm in ist rat ive t ion 18 0- b ex p en se p	+2 .1	S ( "S ") W ite -ba k fro ing le Re lut ion Fu d R F r c m so n
Q 3 17		A dm in ist ive ( Ca ion 18 0- b ) rat t ex p en se p	-20 .2	Or d ina i bu ion he De its Gu Sc he ( "D G ntr t to t nte ry co p os ara e me s
4 Q 17		Ca A dm in ist ive ( ion 18 0- b ) rat t ex p en se p	-1. 6	Or Gu Sc G d ina i bu ion he De its he ( "D ntr t to t nte ry co p os ara e me s
	To ta l		-3 7.7

Main non-recurring and other items P&L 2016

	Ite m	Ca t ion ( Ba nk f It ly Fo at; C irc lar 26 2 / 20 05 ) p o a rm u n.	€ /m n	De rip t ion sc
6
No n-r ec urr	ing ite ms
	1 Q 16 Go dw ill a nd ity inv o eq u	Ne t im irm d j AF S ( Ca b ) tm ts t a ust . to 13 0- es en p a en p.	-1. 7	Ne t im irm d j A F S t a ust . to p a en
	Go 2 Q 16 dw ill a nd ity inv o eq u	Ga S Ca in o n d isp l o f fina ia l as AF ( 10 0- b ) tm ts ts es en os a nc se p.	+3 0.2	S To l ca ita l g in fro m V I A E d isp l ta p a uro p e os a
	Go dw ill a nd ity inv o eq u	Ne t im irm d j AF S ( Ca 13 0- b ) tm ts t a ust . to es en p a en p.	-1. 4	Ne t im irm d j A F S t a ust . to p a en
	Ot he r	( Ca ) Ne t im irm d j lo 10 0-a t a ust . to p a en an s p.	+1 .5	Lo d isp l o f lo ss on os a an s
	Pro lan nd ert t a p y, p eq u	Ca ip Ne d j lan nd ip. ( 20 0 ) t a ust . to ert t a p rop y, p eq u p.	-2. 9	Ne d j lan nd ip. t a ust . to ert t a p rop y, p eq u
	3 Q 16 Go dw ill a nd ity inv o eq u	Ga in o n d isp l o f fina ia l as AF S ( Ca 10 0- b ) tm ts ts es en os a nc se p.	+2 .7	Ca ita l g in fro m V I S A E d isp l p a uro p e os a
	Go dw ill a nd ity inv o eq u	S Ca Ne t im irm d j AF ( 13 0- b ) tm ts t a ust . to es en p a en p.	-2. 2	S Ne t im irm d j A F t a ust . to p a en
	Ot he r	Ca Ne t im irm d j lo ( 10 0-a ) t a ust . to p a en an s p.	-5. 8	Lo d isp l o f lo ss on os a an s
	4 Q 16 Go dw ill a nd ity inv o eq u	Ga in o n d isp l o f fina ia l as AF S ( Ca 10 0- b ) tm ts ts es en os a nc se p.	+4 .7	Ea for th le o f I C BP I t rn- ou e s a
	Go dw ill a nd ity inv o eq u	S Ca Ne t im irm d j AF ( 13 0- b ) tm ts t a ust . to es en p a en p.	-30 .8	S Im irm ( Atl Fu nd FIT D- V ) t te p a en an
	Go dw ill a nd ity inv o eq u	Ca Ad j dw ill ( tio n 2 60 ) tm ts ust nts to es en me g oo p	-32 .9	, Im irm dw ill t o p a en n g oo
	Go dw ill a nd ity inv o eq u	( ) Alt 18 0- b tm ts es en re sp es e a mm .ve vo ce	-34 .9	S ( "S ") Ex d ina ibu tio th ing le Re lut ion Fu nd RF tra ntr n to or ry co e so
	Go dw ill a nd ity inv o eq u	S Ca Ne t im irm d j AF ( 13 0- b ) tm ts t a ust . to es en p a en p.	-7. 4	S Ne t im irm d j A F t a ust . to p a en
	Ot he r	Pe rd ita da ion d i cr d iti ( 10 0-a ) ce ss e e vo ce	-6. 8	Lo d isp l o f lo ss on os a an s
	Pro lan nd ert t a p y, p eq u	( Ca ) ip Ne d j lan nd ip. 20 0 t a ust . to ert t a p rop y, p eq u p.	-6. 5	Ne d j lan nd ip. t a ust . to ert t a p rop y, p eq u
	To ta l		-9 4.2
he r it em s	Q 1 16	Ad mi nis tive ( Ca tio -b ) tra n 1 80 ex p en se p	-15 .0	Or d ina ibu tio th S ing le Re lut ion Fu nd ( "S RF ") ntr n to ry co e so
	2 Q 16	Ad mi nis tive ( Ca tio -b ) tra n 1 80 ex p en se p	-0. 1	Co ibu tio S RF d D G S ntr n an
		Ad mi nis tive ( Ca tio n 1 80 -b ) tra ex p en se p	-11 .3	Co ibu tio Int ba nk De it Gu Fu nd Vo lou ntr n to nte nta er p os ara e ry Sc he ( "FI TD -S V" ) for th f B Te me e r es cue o an ca rca s
		Ne t im irm d j he fina ia l as t a ust nts to ot ts p a en me r nc se ( Ca tio n 1 30 -d ) p	+1 1.0	W rite -ba k fro Inte rba nk De it Gu Fu nd Vo lou nte nta c m p os ara e ry Sc he ( "FI TD -S V" ) for th f B Te me e r es cue o an ca rca s
	3 Q 16	Ad mi nis tive ( Ca tio n 1 80 -b ) tra ex p en se p	-17 .6	Or d ina ibu tio th De its Gu Sc he ( "D G ntr n to nte ry co e p os ara e me s
	4 Q 16	Ad mi nis tive ( Ca tio n 1 80 -b ) tra ex p en se p	+0 .7	Or d ina ibu tio th De its Gu Sc he ( "D G ntr n to nte ry co e p os ara e me s
		Pro vis ins for ris ks d c ha ( Ca tio n 1 90 ) an rg es p	+4 .0	Wr ite -ba k fro So lida rity Fu nd c m
		Ot / Ca he tin ha inc ( tio n 2 20 ) r o p era g c rg es om e p	+0 .8	Gu W rite -ba k fro Inte rba nk De it Fu nd Vo lou nte nta c m p os ara e ry
				Sc -S he ( "FI TD V" ) for th f B Te me e r es cue o an ca rca s
	To ta l		-27 .6
		To ta l co ntr ibu tio n to Fu nd s	-62 .5	( "S ") Inc lu de xtr rd ina ntr .to FR s e ao ry co

CR Saluzzo and Nuova Carife

CR Saluzzo

CR Saluzzo's P&L has been included in BPER Banca Group's consolidated P&L since ¹ October 2016 (4Q16); 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 FY17 balance sheet are the following:

Profit & Loss: Net interest and other banking income 21.4 €/mn (o/w NNI 13.7 €/mn, net commission 7.8 €/mn); operating costs 20.0 €/mn (o/w staff expenses 12.5 €/mn and other administrative expenses 7.1 €/mn), loan loss provisions 2.2 €/mn, taxes 0.1 €/mn, net profit 0.1 €/mn.

Nuova Carife

BPER Banca completed the acquisition of 100% of the share capital of Nuova Cassa di Risparmio di Ferrara S.p.A. ("Nuova Carife") from the Single Resolution Fund on 30 June. On 20 November 2017, Nuova Carife has been absorbed into BPER Banca.

Main terms of the deal related to Nuova Carife acquisition are the following:

• •Shareholders' equity: 156.0 €/mn
• •Price paid: 1 euro
• •Purchase Price Allocation process (PPA): +34.9 €/mn
• •Badwill through P&L: +190.9 €/mn

Assets & Liabilities: reclassified balance sheet

Assets (€/mn)1

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

Liabilities & Shareholders' equity (€/mn)2

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

(1) Total Assets shown as net of loans to banks

(2) Total Liabilities inclusive of "Net Interbank Position" (Due to banks - Loans to banks)

Customer loans: portfolio composition

Bu ine tor s ss se c	De 1 7 c	% on To ta l	% vs ∆ De 1 6 c
Ma fac ing tur nu	1 45 7,	15 6 %	4. 2 % +
W ho les le d r i l s ice ies d r irs eta a an erv s, rec ove r an ep a	4 5, 2 0	1 0. 9 %	0. 1 % -
Co ion tru ct ns s	6 3, 6 1	7. 6 %	-7. 3 %
Re l Es tat a e	1 3, 4 2	7. 2 %	0. 1 % +
H O R E C A *	2 1, 4 5	3. 2 %	0. % 7 +
Ag icu ltu for d f is h ing try r re, es an	6 1, 5 2	3. 2 %	1 0. 9 % +
Ot he r	6, 3 6 5	1 3. 3 %	3. 2 % +
To l loa i de -f ina ia l bu ine ta to t n ns res n on nc s sse s	2 9, 1 2 5	6 1. 0 %	1. 3 % +
No i de f ina ia l c ies nt, n-r es no n- nc om p an	2 0 5	0. 4 %	4 4. 4 % +
f To ta l loa to ina ia l bu ine ns no n- nc s sse s	0 2 9, 3 3	% 6 1. 4	% 1. 5 +
Ho ho l ds us e	0 1 2, 9 5	27 0 %	1 2. 2 % +
To l loa f ina ia l bu ine ta to ns nc s ss es	5 5, 5 3	1 1. 6 %	9. 3 % +
To ta l Cu tom Lo s er s an s	5 4 7, 8 1	1 0 0. 0 %	5. 1 % +

Customer loans breakdown by sectors (€/mn ; %) Customer loans breakdown by geographical distribution1(%)

Note: figures as per ATECO business sector definitions (ISTAT)

(1) Commercial banks + Sarda Leasing (excluding non resident loans) Note: figures from data management system

Asset quality breakdown

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

A d j loa ( € /m ) tm ts to us en ns n	De 1 6 c		Ma 1 7 r		Ju 1 7 n		Se 1 7 p		De 1 7 c		C hg Y / Y
		( % ) co ve rag e		( % ) co ve rag e		( % ) co ve rag e		( % ) co ve rag e		( % ) co ve rag e	A bs	C ( % ) hg
A d j N P Es tm ts to us en	4, 9 7 6	4 4. 5 %	5, 0 3 0	4 5. 6 %	5, 1 7 2	4 6. 9 %	5, 1 7 6	4 7. 7 %	5, 1 2 9	4 8. 7 %	1 5 3	3. 1 % +
Ba d loa ns	4, 0 3 0	2 % 5 7.	4, 0 8 5	8. 1 % 5	4, 1 6 7	8. 8 % 5	4, 2 0 6	9. 0 % 5	4, 2 1 6	9. 3 % 5	1 8 6	4. 6 % +
Un l i ke ly loa to p ay ns	9 3 4	2 3. 5 %	9 3 3	2 4. 2 %	9 8 0	2 6. 4 %	9 5 3	2 6. 7 %	9 0 2	2 7. 2 %	3 2 -	3. 4 % -
Pa du loa t s e ns	1 2	7. 8 %	1 2	8. 0 %	1 6	7. 9 %	1 7	1 1. 2 %	1 1	1 0. 6 %	1 -	8. 3 % -
for A d j ing loa tm ts to us en p er m ns	1 8 4	0. 5 %	1 7 8	0. 4 %	1 9 6	0. 5 %	1 9 3	0. 5 %	2 2 6	0. 5 %	4 2	2 2. 8 % +
To ta l a d j tm ts us en	5, 1 6 0	1 0. 2 %	5, 2 0 8	1 0. 2 %	5, 3 6 8	1 0. 3 %	5, 3 6 9	1 0. 3 %	5, 3 5 5	1 0. 1 %	1 9 5	3. 8 % +

Ne t e ( € /m ) xp os ur es n	De 1 6 c			Ma 1 7 r		Ju 1 7 n		Se 1 7 p		De 1 7 c		C / hg Y Y
		%		%		%		%		%	A bs	C hg ( % )
No Pe for ing Ex ( N P Es ) n r m p os ure s	6, 1 9 7	1 3. 6 %	6, 0 0 6	1 3. 1 %	8 6 0 5,	1 2. % 5	6 6 5, 7	1 2. 1 %	4 0 3 5,	1 1. 3 %	9 4 7 -	1 2. 8 % -
Ba d loa ns	3, 0 0 9	6. 6 %	2, 9 4 1	6. 4 %	2, 9 3 2	6. 2 %	2, 9 2 1	6. 2 %	2, 8 9 3	6. 1 %	1 1 6 -	3. 9 % -
Un l i ke ly loa to p ay ns	3, 0 4 3	6. % 7	2, 9 2 3	6. 4 %	2, 3 6 7	8 % 5.	2, 6 2 2	6 % 5.	2, 4 1 6	1 % 5.	6 2 7 -	2 0. 6 % -
Pa du loa t s e ns	1 4 5	0. 3 %	1 4 2	0. 3 %	1 9 2	0. 5 %	1 3 3	0. 3 %	9 4	0. 2 %	5 1 -	3 5. 2 % -
Ne for ing loa t p er m ns	3 9, 2 9 7	8 6. 4 %	3 9, 6 8 8	8 6. 9 %	4 1, 1 3 7	8 7. 5 %	4 1, 2 3 1	8 7. 9 %	4 2, 4 1 2	8 8. 7 %	3, 1 1 5	7. 9 % +
To l n ta t e e xp os ur es	4 5, 4 9 4	1 0 0. 0 %	4 5, 6 9 4	1 0 0. 0 %	4 6, 9 9 7	1 0 0. 0 %	4 6, 9 0 7	1 0 0. 0 %	4 7, 8 1 5	1 0 0. 0 %	2, 3 2 1	5. 1 % +

Bonds maturities and issues details

Outstanding bonds (€/bn)

		De 1 6 c	Se 1 t 7 p	De 1 7 c	C / hg Y ( Y % )
W ho les le bo a	ds n	2. 7	3. 0	0 3.	1 1. 1 % +
	/w d bo nd o co ver e s	2.5	2.5	2.5	+0 .0%
	/w bo rd ina d bo nd te o su s	0.2	0.5	0.5	+1 50 .0%
Re i l bo ds ta n		3. 4	2. 8	4 2.	-2 9. 4 %
	/w bo rd ina d bo nd te o su s	0.5	0.4	0.4	-20 .0%
To ta l bo ds n		6. 1	5. 8	5. 4	% -1 1. 5

Bonds issued (€/bn)

Bonds maturities breakdown (€/bn)

2017 Bonds maturities (€/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

Bonds PTF Maturities1 (€/bn)*

Govies PTF Geographical breakdown (%)

Govies Maturities1 (€/bn)*

IFRS 9 First Time Adoption (first reporting date - 31 March 2018)

• First application of the IFRS 9 accounting standard. Capital ratios remain high even considering the effects deriving from the first application of the IFRS 9 accounting standard, in force since ¹ January 2018. The estimations currently available show that further to the first application of the Standard, at the first reporting date, 31 March 2018, the CET1 pro-forma ratio Fully Phased will be above 12% without considering the fiscal effect, while if calculated using the criteria in force for 2018 (Phased in), benefiting from the delayed/extended impact pursuant to EU Regulation 2395/2017, it will be above 15%, with respect to ^a SREP requirement for the year of 8.125% . Both estimations include the impact of the extraordinary measure on provisions for ^a gross amount of around € 1.0 billion envisaged in the NPE Strategy for 2018-20 approved by the Board of Directors last November.
• The estimations currently available show that further to the first application of the Standard, at the first reporting date, 31 March 2018, downward variations will occur on net credit and security amounts for ^a total of approximately 900 million euros; these, pursuant to the rules governing First Time Adoption, will indiscriminately be registered with ^a direct impact on Shareholders Equity. In summary, they are attributable to: - impairments on performing loans and debt securities, mainly connected to the allocation of loans in the Stage ² category, for which expected loss is estimated with lifetime methodology, for approximately € 50 million; - impairments on non-performing loans for over € 1.0 billion, partly attributable to the already noted extra-provisioning and deriving from the probabilistic quantification of disposal scenarios, for ^a quota of around € 3.0 billion of bad loans and Unlikely-to-pay positions, in line with the NPE Strategy for 2018-2020; - positive effect, fair value assessment of financial instruments, further to the classification and measurement of the new IFRS portfolios, for almost € 180 million.

Performance ratios

l ra F ina ia ios t nc	3 1.12 .20 17	( *) 6 3 1.12 .20 1
Str l ra ios ( ) tu t uc ra %
lo l as rs/ net to sto tot set ans cu me a s	67 .02 %	70 .03 %
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	.16 95 %	.28 95 %
fin ia l as s/t l as set ota set anc s	67% 21.	21. 11%
fixe d a l as ts/ tot set sse a s	2.1 3%	2.1 3%
dw ill/ l as tot set g oo a s	6% 0.4	0.5 5%
dir de l as sits /to ect ta set po s	88 .63 %	88 .07 %
de de dir de sits /in sits ent ect po un r m ana g em po	08 % 55.	49 % .55
fin ia l as ib le e ity set s/t anc ang qu	2.9 7	2.7 2	(1 )
l ta ib le a ib le e ity ts/ tot tan a ng sse g qu	60 13.	12.8 0	( ) 2
ban k le nd /bo ( ho nd f E ) in ing wi in t net ter rro ng usa s o uro	(9, 971 ,711	) ( ) 8,1 86 30, 7
mb f em loy nu er o p ees	653 11,	635 11,
mb f na l ba nk bra hes tio nu er o na nc	18 1,2	1,20 0
f b l ( ) Pro ita i ity ios t ra %
RO E	62% 3.	0.3 0%
RO TE	4.0 4%	0.3 3%
A ( fit/ l as ) RO net tot set pr o a s	0.2 5%	0.0 2%
Co st/ inc tio om e ra	63. 59%	61. 29%	( ) 3
Ne dju lo /ne loa t a stm ent s to t to tom ans ns cus ers	1.12 %	6% 1.3
Bas ic E PS	67 0.3	0.0 30
Dil d E PS ute	67 0.3	0.0 30
k r ( ) R is ios at %
for loa mi /ne t to tom no n-p er ng exp osu res ns cus ers	11.3 0%	62% 13.
ba d loa ns/ lo net net to sto ans cu me rs	6.0 5%	6.6 1%
like ly lo loa /ne net to t to tom un pay ans ns cus ers	5.0 5%	6.6 9%
du loa lo ns/ net st net to sto pa e ans cu me rs	0.1 9%	0.3 2%
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	8.7 4 0%	44 .54 %
dju ba d loa ba d loa ns/ stm ent s to a g ros s ns	59 .30 %	25% 57.
dju like ly lo nli ke ly lo stm ent s to to /g to a un pay ans ros s u pay ans	18% 27.	23. 49 %
dju du loa du loa ns/ stm ent s to st ast a pa e g ros s p e ns	60 10. %	80 7. %
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	0.5 3%	0.4 7%
io tex rat as	.86 101 %	.61 111 %	(4 )

	l ra ina ia ios F t nc	3 1.12 .20 17 ise Str ett ent am e r	6 3 1.12 .20 1 fid iale to rva e c on enz
	ds ( ha d ) Ow Fu P in n n se
	( T1) Co Eq uit Tie CE mm on y r 1	4,5 22, 957	64 4,4 97, 5
	ds Ow n F un	6, 831 5,4 3	8,0 4,9 5 45
	k-w hte d a ( A) Ris eig RW ts sse	32, 573 ,00 2	32, 593 ,23 5
	l a d l d Ca ita iq i ity ios t p n ra u
	( ) - Ph d i Co Eq uit Rat io CE T1 Rat io mm on y ase n	89 13. %	80 13. %
	( ) - Ph d i Tie Rat io T1 Rat io r 1 ase n	13.9 7%	89 13. %
	l C l Ra ( ) - Ph d i Tot ita tio TC Ra tio a ap ase n	16. 69 %	15. 21%
	( ) - lly Ph d Co Eq uit Tie Rat io CE T1 Rat io Fu mm on y r 1 ase	68 13. %	13. 27%
	Ph d i Lev e R ati era g o - ase n	6.1 %	6.7 %	(5 )
	ati lly Ph d Lev e R Fu era g o - ase	6.0 %	6.5 %	( ) 6
	Liq ui dit Co ati ( LC R) e R y ver ag o	113 .7%	102 .0%
	b le F din ( FR) Ne t St Rat io NS a un g	104 .9%	104 .3%	(7 )
	f l ra No ina ia ios t n- nc	3 1.12 .20 17	6 3 1.12 .20 1
	du ( ho ds f ) Pro iv ity ios in Eu ct t t ra us an o ro
	dir de sits loy ect po pe r em p ee	11.8 4,3 9	82 4,1 03.
	loa d a dva loy s to sto ns an nce cu me rs p er e mp ee	4,1 03. 22	3,9 10. 11
	d p loy ets ass m ana g e er e mp ee	69 1, 5.2 1	1,39 9.7 5
	dm d p loy ini ets ste ass a re er e mp ee	82. 1,3 51	1,4 25. 44
	loy co re r eve nu es per em p ee	160 .05	161 .85	( 8 )
	in d o her ba nki inc loy net ter est t an ng om e p er e mp ee	169 .97	173 .02
	tin loy ts p op era g cos er e mp ee	112 .13	113 .35
	( *) Fur the r to the tate nt o f ba lan she et d ata at 31 D mb er 2 016 res me ce as ece alc ula ted rec ( 1) Tan ible = t ota l sh hol der s' e et o f in tan ible set are as	rfo so me pe rma nce	rat io v alu es wer e
	uity ity n g eq qu g s ( 2) To tal ible tal t of int ible tan set to ets set g as s = ass ne ang as s
	( 3) st/i of of sifi The rat io h bee alc ula ted the ba sis the lay out the las ed inc tate nt co nco me as n c on rec om e s me (op es/ e); Cir ting rati inc whe alc ula ted the ba sis of the lay out ide d b cul o. 2 62 of era exp ens ope ng om n c on s p rov ar n y the Ba nk of I taly the st/i io i t 65 .97 % ( 65. 52% 31 D ber 20 16). rat at co nco me s a as ece me
( 4) The tex rati o is lcu late d a s th lati hip be twe tot al g for min loa and t ta ible uity as ca e re ons en ros s n on- per g ns ne ng eq , inc lud ing mi ity inte inc sed by al p isio for erfo rmi loa ts, tot nor res rea rov ns no n-p ng ns. ( 5) ( 6) The io i alc ula ted din he vis ion f R lati ( EU) 57 5/2 013 ( CR R), end ed by the rat to t s c ac cor g pro s o egu on as am Co iss ion De leg d R lati ( EU) 20 15/6 2. ate mm egu on
	( 7) NS ( The FR t ye t av aila ble , is in a tim ate d to d 10 0% , no ny c ase es ex cee	Sep 104 .9% at 30 tem as	17). ber 20
	Co ( 8) t in tere st i et c mis sio n in re r eve nue s = ne nco me + n om com e.

Annex – 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 126,175 thousand at 31 December 2017 and Euro 118,704 thousand at 31 December 2016);
• •"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, IDGF-VS" 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 2017, this caption represents the component allocated for accounting purposes to administrative costs in relation to:
• othe 2017 contribution to the SRF (European Single Resolution Fund) of Euro 15,870 thousand;
• oequalisation of the 2015 contribution to the SRF (European Single Resolution Fund) of Euro 61 thousand;
• othe 2017 contribution to the DGS (Deposit Guarantee Schemes) of Euro 21,790 thousand.

Note that the comparative figures at 31 December 2016 have been restated compared with those included in the Consolidated financial statements at 31 December 2016, including the repayment received from FITD-SV for redefinition of the intervention in Banca Tercas (Euro 10,970 thousand), previously recorded under the caption "Net impairment adjustments for other financial transactions".

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