Bper Banca — Investor Presentation 2019

Nov 8, 2019

Consolidated Results as of 30 September 2019

Alessandro Vandelli - CEO 8 November 2019

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

Important methodological note

July 2019 saw completion of the extraordinary transactions announced in February, namely the acquisition of an additional shareholding in Arca Holding, the acquisition of the minority interests in Banco di Sardegna and the acquisition of 100% of Unipol Banca with the simultaneous sale to UnipolReC of bad loans for a gross book value carrying amount of around € 1 billion. These transactions took effect for accounting purposes from 1 July 2019 and Unipol Banca and ARCA Holding were included in the scope of consolidation of the BPER Group from the same date; the balance sheet figures at 30 September include the assets and liabilities of the new companies forming part of the Group scope, while their income statement figures have been included from the 3rd quarter onwards.

It should also be noted that as a result of these transactions, the accounting figures at 30 September 2019 are not comparable with those of the corresponding period of the previous year, which also included non-recurring gains realized on debt securities. Furthermore, the consolidated result at 30 September 2019 includes significant non-recurring items, including the badwill generated by the acquisition of Unipol Banca of € 353.8 million (booked in the third quarter), the additional contribution to the European Single Resolution Fund for € 9.6 million (booked in the 2nd quarter) and the charges deriving from the total writedown of our share of the IDPF Voluntary Scheme intervention in Banca Carige for € 13.3 million (booked in the 1st quarter). By acquiring the 100% of the share capital of Unipol Banca, the Group also acquired indirect control of Finitalia S.p.A.

Agenda

BPER GROUP CONSOLIDATED RESULTS

Executive summary

Balance sheet structure

Profit and loss

Liquidity and Capital adequacy

Final remarks

ANNEXES

Executive summary

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Agenda

BPER GROUP CONSOLIDATED RESULTS

Executive summary

Balance sheet structure

Profit and loss

Liquidity and Capital adequacy

Final remarks

ANNEXES

Total funding

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Direct funding

€/mn	Dec 18	Jun 19	Sep 19	o.w. Unipol + Arca	Sep 19 on a like-for like basis	Chg YTD (%) on a like-for like basis
Direct customer deposits	45,017	46,524	55,005	8,963	46,042	+2.3%
o.w. current accounts and sight deposits	37,413	39,369	46,830	6,985	39,846	+6.5%
o.w. bonds subscribed by retail customers	1,459	1,225	2,270	1,153	1,117	-23.4%
o.w. other	6,144	5,930	5,904	825	5,079	-17.3%
Institutional direct funding	4,980	4,505	3,162	0	3,162	-36.5%
o.w. Institutional bonds	2,532	3,147	3,162	0	3,162	+24.9%
o.w. Institutional repos	2,448	1,358	0	0	0	-100.0%
Total direct funding	49,996	51,029	58,167	8,963	49,204	-1.6%

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Indirect funding and Bancassurance

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Customer loans

€/mn	Dec 18	Jun 19	Sep 19	o.w. Unipol + Arca	Sep 19 on a like-for like basis	Chg YTD (%) on a like-for-like basis
Current accounts	4,691	4,373	5,205	713	4,493	-4.2%
Mortgage loans	28,374	28,904	33,036	4,246	28,790	+1.5%
Other transactions	13,987	13,265	14,255	1,801	12,454	-11.0%
Net loans	47,051	46,542	52,496	6,759	45,737	-2.8%
o.w. performing	43,846	43,404	49,309	6,396	42,913	-2.1%
o.w. NPEs	3,205	3,138	3,187	364	2,824	-11.9%
Gross loans	51,057	50,486	56,030	7,146	48,884	-4.3%
o.w. performing	44,011	43,550	49,515	6,440	43,075	-2.1%
o.w. NPEs	7,046	6,937	6,515	707	5,808	-17.6%

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Non Performing Exposures (1/2)

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Coverage evolution (%)

Non Performing Exposures (2/2)

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Financial assets portfolio

€/mn	FVTPL	FVOCI	AC	Total	% on total
Bonds	363	6,685	10,744	17,792	94.8%
o.w. Italian gov	189	730	5,503	6,422	34.2%
Equity	91	226		317	1.7%
Funds and Sicav	471			471	2.5%
Other*	197			197	1.1%
Total as of 30.09.2019	1,123	6,911	10,744	18,778	100.0%
Total as of 31.12.2018	1,129	8,561	7,463	17,152
Chg YTD (%)	-0.5%	-19.3%	+44.0%	+9.5%

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Agenda

BPER GROUP CONSOLIDATED RESULTS

• Executive summary
• Balance sheet structure

Profit and loss

• Liquidity and Capital adequacy
• Final remarks
• ANNEXES

9M19 reclassified Profit & Loss

	Sep 19	Arca	Unipol	First-time consolidation impact of Unipol	Sep 19 on a like-for-like basis	Sep 18	Chg y/y (%) on a like-for-like basis
Net interest income	862.1	0.0	47.6		814.5	850.1	-4.2%
of which IFRS9 e IFRS16 effects	38.9	0.0	1.9		37.0	63.9	-42.1%
Net commission income	656.1	27.5	43.3		585.2	577.1	1.4%
Core Income	1,518.2	27.5	91.0		1,399.7	1,427.2	-1.9%
Dividend and Net income from financial activities	90.8	0.0	14.9		76.0	204.7	-62.9%
Other operating expense/income	34.8	-0.1	2.0		32.8	30.7	7.0%
Operating Income	1,643.8	27.4	107.9		1,508.5	1,662.6	-9.3%
Staff costs	-657.7	-4.3	-37.9		-615.5	-615.0	0.1%
Other administrative expenses	-305.4	-7.0	-17.4		-280.9	-316.6	-11.3%
Net adjustments to property, plant and equipment and intangible assets	-108.7	-0.8	-5.5		-102.5	-79.3	29.3%
Operating costs	-1,071.8	-12.1	-60.8		-998.9	-1,010.8	-1.2%
Net Operating Income	572.0	15.3	47.1		509.6	651.7	-21.8%
Net impairment losses for credit risk	-309.1	0.0	-17.8		-291.3	-155.9	86.9%
Net Provisions for Risks and Charges	-9.2	0.0	-1.0		-8.2	-49.1	-83.4%
Contribution to funds	-58.4	0.0	-1.6		-56.8	-52.4	8.4%
Gains (Losses) on equity investments, disposal investments and impairment losses on goodwill	8.8	0.2	0.0		8.6	9.0	-4.1%
Badwill	353.8	0.0	0.0	353.8	0.0	0.0	0.0%
Profit (loss) before taxes	557.9	15.5	26.6	353.8	162.0	403.3	-59.8%
Income taxes	-19.9	-3.9	-7.9		-8.1	-24.0	-66.1%
Minority Interests	-15.1	-4.9	18.7		-10.2	-21.2	-51.9%
Profit (loss) for the period pertaining to the Parent Company	522.9	6.7	18.7	353.8	143.7	358.1	-59.9%

3Q19 reclassified Profit & Loss

			3Q19
	1Q19	2Q19	on a like-for	3Q19	1Q18	2Q18	3Q18	4Q18
(€/mn)			like basis
Net interest income	273.9	272.3	268.3	315.9	293.2	280.3	276.6	272.3
of which IFRS9 e IFRS16 effects	13.0	14.7	9.3	11.2	25.6	20.7	17.6	12.4
Net commission income	192.5	195.2	197.5	268.3	198.1	190.9	188.0	199.2
Core Income	466.4	467.5	465.8	584.2	491.4	471.2	464.6	471.5
Dividends	0.5	9.7	3.4	3.4	0.6	12.9	0.3	20.6
Net income from financial activities	22.1	5.4	34.9	49.7	153.6	16.4	20.9	-86.9
Other operating expense/income	6.3	8.9	17.6	19.5	11.5	8.2	11.0	13.6
Operating Income	495.4	491.5	521.6	656.9	657.1	508.7	496.8	418.7
Staff costs	-213.6	-213.1	-188.8	-230.9	-207.5	-212.9	-194.6	-206.5
Other administrative expenses	-90.9	-96.2	-93.8	-118.2	-102.3	-110.0	-104.3	-125.8
Net adjustments to property, plant and equipment and intangible assets	-33.2	-35.4	-33.9	-40.2	-21.3	-35.0	-22.9	-39.7
Operating costs	-337.7	-344.7	-316.5	-389.3	-331.2	-357.9	-321.8	-372.0
Net Operating Income	157.6	146.8	205.1	267.5	325.9	150.8	175.0	46.7
Net impairment losses for credit risk	-73.0	-75.0	-143.3	-161.1	-24.4	-59.8	-71.7	-70.8
Net Provisions for Risks and Charges	-2.0	-9.7	3.5	2.5	-11.7	-25.4	-12.1	23.9
Contribution to Funds	-23.2	-9.5	-24.1	-25.8	-20.3	-8.7	-23.4	0.1
Gains (Losses) on equity investments, disposal investments and impairment losses on goodwill	3.8	4.6	0.2	0.4	2.8	2.6	3.5	-57.7
Badwill				353.8
Profit (loss) before taxes	63.3	57.2	41.4	437.4	272.4	59.5	71.3	-57.8
Income taxes	-12.3	1.0	3.2	-8.7	-6.9	-2.9	-14.2	124.2
Profit (Loss) for the period	51.1	58.2	44.6	428.7	265.5	56.7	57.1	66.5
Minority Interests	-3.1	-5.7	-1.4	-6.3	-14.5	0.2	-6.9	-22.7
Profit (loss) for the period pertaining to the Parent Company	48.0	52.5	43.2	422.4	251.0	56.9	50.2	43.8

Net Interest Income

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Profit and loss

Net Commissions

Chg y/y

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Sep 19

Profit and loss

Dividends and Trading income

Sep 19 Chg y/y (%) Dividends 13.6 13.8 -1.0% Trading income 77.2 190.9 -59.6% Realized gain/loss 69.1 185.3 -62.7% Plus 33.7 32.4 +4.2% Minus -30.3 -33.5 -9.8% Others 4.7 6.8 -30.8% Total 90.8 204.7 -55.6% Sep 18

Operating costs

	Sep 19	Arca & Unipol	Sep 19 on a like-for like basis	Sep 18	Chg y/y (%) on a like-for like basis
Staff expenses	657.7	42.2	615.5	615.0	+0.1%
Other admin. expenses	305.4	24.4	280.9	316.6	-11.3%
o.w. Operating leases	13.5	1.1	12.4	47.0	n.m.
D&A	108.7	6.3	102.5	79.3	+29.3%
o.w. right of use IFRS 16	38.4	4.6	33.8	2.2	n.m.
Operating costs	1,071.8	72.9		998.9 1,010.8	-1.2%

• Staff expenses Other administrative expenses D&A
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Loan loss provisions and cost of credit

Agenda

BPER GROUP CONSOLIDATED RESULTS

Executive summary

Balance sheet structure

Profit and loss

Liquidity and Capital adequacy

Final remarks

ANNEXES

Liquidity

ABS,

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Capital

Agenda

BPER GROUP CONSOLIDATED RESULTS

Executive summary

Balance sheet structure

Profit and loss

Liquidity and Capital adequacy

Final remarks

ANNEXES

• 1. Sound capital position with a CET1 ratio Fully Phased at 12.36% up respectively by 3 bps vs 12.33% in Jun.'19 and by 41 bps vs 11.95% in Dec.'18
• 1. Leverage Fully Phased at 5.3% one of the lowest of the domestic banking system (6.1% Phased In)
• 1. LCR and NSFR well above 100% and unencumbered eligible assets and deposits available with ECB of 12.9 €/bn out of 20.9 €/bn of total eligible assets
• 1. Gross NPE stock at 6.5 €/bn strongly down on a like-for-like basis by 17.6% vs Dec.'18
• 1. Gross NPE ratio at 11.6% significantly down from 13.8% in Dec.'18 and 19.9% in 1 Jan.'18 including the acquisition of 100% of Unipol Banca and the disposal of about 1.0 €/bn GBV bad loans to UnipolRec
• 1. Annualized default rate down at 1.6% vs 1.9% in Dec.'18
• 1. Texas ratio further improvement at 80.0% vs 85.0% in Dec.'18
• 1. 9M19 stated consolidated net profit at 522.9 €/mn (143.7 €/mn on a like-for-like basis). It includes higher level of LLP in line with the expected acceleration of the de-risking process to be implemented through a new securitization of bad loans' portfolio
• 1. Net operating income at 572.0 €/mn, as a result of the difference between operating income of 1,643.8 €/mn and operating costs of 1,071.8 €/mn
• 1. Resilient ordinary NII¹ on a like-for-like basis and net of the IFRS9 effects (-1.1% y/y). Positive net commissions performance +1.4% y/y on a like for like basis. Operating costs down by 1.2% y/y on a like-for-like basis

Agenda

BPER GROUP CONSOLIDATED RESULTS

Executive summary

Balance sheet structure

Profit and loss

Liquidity and Capital adequacy

Final remarks

ANNEXES

Customer loans

Portfolio composition

Net customer loans breakdown by sectors (€/mn; %)

Business sector	Sep 19	% on Total Customer Loans	A % vs Dec 18
Manufacturing	7,618	14.5%	+1.8%
Wholesale and retail services, recoveries and repairs	4,839	9.2%	+6.3%
Constructions	2,572	4.9%	+2.8%
Real Estate	3,256	6.2%	+8.5%
HORECA*	1,310	2.5%	+5.4%
Agriculture, forestry and fishing	843	1.6%	+13.4%
Other	4,872	9.3%	-5.9%
Total loans to non-financial businesses	25,310	48.2%	+2.5%
Households	21,109	40.2%	+26.6%
Total loans to financial businesses	6,077	11.6%	+7.0%
Total Customers Loans	52,496	100.0%	+11.6%
Debt Securities	8,102	15.4%	+42.2%

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 differences

Asset quality

Gross exposures (€/mn)	Sep 18		Dec 18		Mar 19		Jun 19		Sep 19		Sep 19		Chg YTD		Chg Y/Y
		%		%		%		%		%	Unipol	%	Abs.	Chg (%)	Abs.	Chg (%)
Non Performing Exposures (NPEs)	8,788	17.3%	7,046	13.8%	6,947	13.8%	6,937	13.7%	6,515	11.6%	707	9.8%	-531	-7.5%	-2,273	-25.9%
Bad loans	5,834	11.5%	4,338	8.5%	4,324	8.6%	4,321	8.6%	3,492	6.2%	107	1.5%	-846	-19.5%	-2,342	-40.1%
Unlikely to pay loans	2,867	5.6%	2,638	5.2%	2,562	5.1%	2,526	5.0%	2,920	5.2%	563	7.9%	282	10.7%	5 3	+1.8%
Past due loans	8 7	0.2%	6 9	0.1%	6 1	0.1%	9 0	0.1%	103	0.1%	3 7	0.5%	3 3	48.5%	1 6	+18.4%
Gross performing loans	42,004	82.7%	44,011	86.2%	43,514	86.2%	43,549	86.3%	49,514	88.4%	6,465	90.2%	5,503	12.5%	7,510	+17.9%
Total gross exposures	50,792	100.0%	51,057	100.0%	50,461	100.0%	50,486	100.0%	56,029	100.0%	7,172	100.0%	4,972	9.7%	5,237	+10.3%

Bad loans	5,834	11.5%	4,338	8.5%	4,324	8.6%	4,321	8.6%	3,492	6.2%	107	1.5%	-846	-19.5%	-2,342	-40.1%
Gross performing loans	42,004	82.7%	44,011	86.2%	43,514	86.2%	43,549	86.3%	49,514	88.4%	6,465	90.2%	5,503	12.5%	7,510	+17.9%
Total gross exposures	50,792	100.0%	51,057	100.0%	50,461	100.0%	50,486	100.0%	56,029	100.0%	7,172	100.0%	4,972	9.7%	5,237	+10.3%
Adjustments to loans (€/mn)	Sep 18			Dec 18	Mar 19		Jun 19		Sep 19		Sep 19		Chg YTD		Chg Y/Y
		coverage (%)		coverage (%)		coverage (%)		coverage (%)		coverage (%)	Unipol coverage (%)		Abs.	Chg (%)	Abs.	Chg (%)
Adjustments to NPEs	4,983	56.7%	3,841	54.5%	3,790	54.5%	3,799	54.8%	3,328	51.1%	343	48.4%	-513	-13.4%	-1,655	-33.2%
Bad loans	3,762	64.5%	2,890	66.6%	2,900	67.1%	2,896	67.0%	2,225	63.7%	7 3	68.2%	-665	-23.0%	-1,537	-40.9%
Unlikely to pay loans	1,209	42.2%	942	35.7%	882	34.4%	891	35.3%	1,087	37.2%	264	46.9%	145	15.3%	-122	-10.1%
Past due loans	1 2	12.8%	9	12.3%	8	12.7%	1 2	12.8%	1 6	15.0%	6	13.9%	7	80.4%	4	+33.3%
Adjustments to performing loans	161	0.4%	165	0.4%	159	0.4%	145	0.3%	205	0.4%	4 4	0.7%	4 0	25.2%	4 4	+27.3%
Total adjustments	5,144	10.1%	4,006	7.8%	3,949	7.8%	3,944	7.8%	3,533	6.3%	387	5.4%	-473	-11.8%	-1,611	-31.3%

Unlikely to pay loans	1,209	42.2%	942	35.7%	882	34.4%	891	35.3%	1,087	37.2%	264	46.9%	145	15.3%	-122	-10.1%
Total adjustments	5,144	10.1%	4,006	7.8%	3,949	7.8%	3,944	7.8%	3,533	6.3%	387	5.4%	-473	-11.8%	-1,611	-31.3%
Net exposures (€/mn)		Sep 18		Dec 18	Mar 19		Jun 19		Sep 19			Sep 19		Chg YTD	Chg Y/Y
		%		%		%		%		%	Unipol	%	Abs.	Chg (%)	Abs.	Chg (%)
Non Performing Exposures (NPEs)	3,805	8.3%	3,205	6.8%	3,157	6.8%	3,138	6.7%	3,187	6.1%	364	5.4%	-18	-0.5%	-618	-16.2%
Bad loans	2,072	4.5%	1,448	3.1%	1,424	3.1%	1,425	3.1%	1,267	2.4%	3 4	0.5%	-181	-12.5%	-805	-38.9%
Unlikely to pay loans	1,658	3.6%	1,696	3.6%	1,680	3.6%	1,635	3.5%	1,833	3.5%	299	4.4%	137	8.1%	175	+10.6%
Past due loans	7 5	0.2%	6 1	0.1%	5 3	0.1%	7 8	0.1%	8 7	0.1%	3 1	0.5%	2 6	44.0%	1 2	+16.0%
Net performing loans	41,843	91.7%	43,846	93.2%	43,355	93.2%	43,404	93.3%	49,309	93.9%	6,421	94.6%	5,463	12.5%	7,466	+17.8%
	45,648	100.0%	47,051		46,512	100.0%	46,542	100.0%	52,496	100.0%	6,785	100.0%	5,445	11.6%	6,848	+15.0%

Financial Assets details

Bonds maturities and issues details

Outstanding bonds (€/bn)

		Dec 18 Jun 19	Sep 19*
Wholesale bonds	2.5	3.1	3.1
o/w covered bonds	2.0	2.6	2.6
o/w subordinated bonds	0.5	0.5	0.5
Retail bonds	1.5	1.2	2.5
o/w subordinated bonds	0.3	0.3	0.8
Total bonds	4.0	4.3	5.6

Bonds issued (€/bn)

2019 Bonds maturities (€/bn)

Bonds maturities breakdown* (€/bn)

*: including Unipol Banca bonds

RDERS

Gruppo

Note: figures in this page: 1) are shown as per nominal values and 2) may not add exactly due to rounding differences

Reclassified financial statement of BPER Group as at 30.09.19

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Reclassified consolidated balance sheet

								(in thousands)
Assets		30.09.2019 Arca Holding Unipol Banca 30.09.2019 on contribution		contribution a like-for-like basis	30.06.2019	31.12.2018	Change 30.09.2019 - 31.12.2018 on a like-for-like basis	% Change on a like- for-like basis
Cash and cash equivalents	493,538	3	81,662	411,873	395,525	459,782	-47,909	-10.42
Financial assets	18,777,522	92,197	1,242,212	17,443,113	17,159,152	17,152,084	291,029	1.70
a) Financial assets held for trading	328,291		466	327,825	270,204	247,219	80,606	32.61
b) Financial assets designated at fair value	131,594			131,594	219,702	218,662	-87,068	-39.82
c) Other financial assets mandatorily measured at fair value	662,663	92,197	23,311	547,155	557,815	662,744	-115,589	-17.44
d) Financial assets measured at fair value through other comprehensive income	6,911,141		41,444	6,869,697	7,808,130	8,560,568	-1,690,871	-19.75
e) Debt securities measured at amortised cost	10,743,833		1,176,991	9,566,842	8,303,301	7,462,891	2,103,951	28.19
- banks	2,641,906			2,641,906	2,384,640	1,766,169	875,737	49.58
- customers	8,101,927		1,176,991	6,924,936	5,918,661	5,696,722	1,228,214	21.56
Loans	56,244,776	64,461	7,155,184	49,025,131	49,158,263	48,594,875	430,256	0.89
a) Loans to banks	3,722,040	89,720	343,931	3,288,389	2,616,439	1,540,509	1,747,880	113.46
b) Loans to customers	52,496,061	-25,259	6,784,578	45,736,742	46,541,824	47,050,942	-1,314,200	-2.79
c) Financial assets measured at fair value	26,675		26,675			3,424	-3,424	-100.00
Hedging derivatives	65,401			65,401	53,567	35,564	29,837	83.90
Equity investments	251,613	-202,838		454,451	453,046	446,049	8,402	1.88
Property, plant and equipment	1,356,757	15,840	87,323	1,253,594	1,261,800	1,063,273	190,321	17.90
Intangible assets	612,235	179,558	307	432,370	431,922	445,689	-13,319	-2.99
- of which: goodwill	434,758	170,018		264,740	264,740	264,740
Other assets	2,893,584	27,983	162,001	2,703,600	2,669,393	2,437,451	266,149	10.92
Total assets	80,695,426	177,204	8,728,689	71,789,533	71,582,668	70,634,767	1,154,766	1.63

Reclassified consolidated balance sheet

								(in thousands)
Liabilities and shareholders' equity	30.09.2019	Arca Holding contribution	Unipol Banca 30.09.2019 on contribution a like-for-like		30.06.2019	31.12.2018	Change 30.09.2019 -	% Change on a like-
				basis			31.12.2018 on a	for-like
							like-for-like	basis
							basis
Due to banks	12,353,388		-1,274,555	13,627,943	12,504,749	13,126,248	501,695	3.82
Direct deposits	58,166,847		8,962,993	49,203,854	51,029,054	49,996,419	-792,565	-1.59
a) Due to customers	51,769,432		7,810,361	43,959,071	45,465,848	44,594,863	-635,792	-1.43
b) Debt securities issued	6,397,415		1,152,632	5,244,783	5,563,206	5,401,556	-156,773	-2.90
Financial liabilities held for trading	247,347		170	247,177	220,086	143,824	103,353	71.86
Hedging derivatives	419,671			419,671	306,649	92,374	327,297	354.32
Other liabilities	4,075,781	77,644	664,525	3,333,612	2,572,406	2,379,334	954,278	40.11
Minority interests	176,160	92,854		83,306	505,929	507,457	-424,151	-83.58
Shareholders' equity pertaining to the Parent Company	5,256,232	6,706	375,556	4,873,970	4,443,795	4,389,111	484,859	11.05
a) Valuation reserves	-39,838	26	-5,249-	-34,615	15,130	949	-35,564
b) Reserves	2,088,106	-25	8,252	2,079,879	1,961,433	1,619,469	460,410	28.43
c) Equity instruments	150,000			150,000			150,000	n.S.
d) Share premium reserve	999,373			999,373	930,073	930,073	69,300	7-45
e) Share capital	1,542,925			1,542,925	1,443,925	1,443,925	99,000	6.86
f) Treasury shares	-7,259			-7,259	-7,258	-7,258	-1	0.01
g) Profit (Loss) for the period	522,925	6,705	372,553	143,667	100,492	401,953	-258,286	-64.26
Total liabilities and shareholders' equity	80,695,426	177,204	8,728,689	71,789,533	71,582,668	70,634,767	1,154,766	1.63

Reclassified consolidated income statement

									(in thousands)
Captions			30.09.2019 Arca Holding Unipol Banca contribution	contribution consolidation	First-time impact of Unipol Banca	30.09.2019 on a like for-like basis	30.09.2018	Change 30.09.2019 - 30.09.2018 On a like-for-like basis	% Change on a like- for-like basis
10+20	Net interest income	862,093	-37	47,646		814,484	850,092	-35,608	-4.19
	of which IFRS 9 components	40,183		2,063		38,120	63,970	-25,850	-40.41
	of which interest expense lease liabilities IFRS 16	-1,305		-197		-1,108	-49	-1,059
40+50	Net commission income	656,070	27,492	43,331		585,247	577,081	8,166	1.42
70	Dividends	13,650		4		13,646	13,786	-140	-1.02
80+90+100 +110	Net income from financial activities	77,186	-1	14,852		62,335	190,944	-128,609	-67.35
230	Other operating expense/income	34,771	-74	2,032		32,813	30,657	2,156	7.03
	Operating income	1,643,770	27,380	107,865		1,508,525	1,662,560	-154,035	-9.26
190 a)	Staff costs	-657,676	-4,275	-37,900		-615,501	-614,987	-514	0.08
190 b)	Other administrative expenses	-305,357	-7,001	-17,413		-280,943	-316,589	35,646	-11.26
	of which rental expenses	-13,524		-1,097		-12,427	-47,038	34,611	-73.58
210+220	Net adjustments to property, plant, equipment and intangible assets	-108,741	-798	-5,466		-102,477	-79,258	-23,219	29.30
	of which depreciation right of use IFRS 16	-38,417	-285	-4,361		-33,771	-2,200	-31,571
	Operating costs	-1,071,774	-12,074	-60,779		-998,921	-1,010,834	11,913	-1.18
	Net operating income	571,996	15,306	47,086		509,604	651,726	-142,122	-21.81
130 a)	Net impairment losses to financial assets at amortised cost	-308,021		-17,850		-290,171	-155,206	-134,965	86.96
130 b)	Net impairment losses to financial assets at fair value	582		44		238	2,054	-1,516	-73.81
140	Gains (Losses) from contractual modifications without derecognition	-1,618		2		-1,620	-2,719	1,099	-40.42
	Net impairment losses for credit risk	-309,057		-17,804		-291,253	-155,871	-135,382	86.86
200	Net provisions for risks and charges	9,202		-1,034		-8,168	-49,130	40,962	-83.37
井井井	Contributions to SRF, DGS, IDPF - VS	-58,414		-1,626		-56,788	-52,400	-4,388	8.37
O	250+270+28 Gains (Losses) on equity investments, disposal investments and impairment losses on goodwill	8,810	224			8,586	8,953	-367	-4.10
275	Gain on a bargain purchase	353,805			353,805				n.S.
290	Profit (Loss) from current operations before tax	557,938	15,530	26,622	353,805	161,981	403,278	-241,297	-59.83
300	Income taxes on current operations for the period	-19,945	-3,949	-7,874		-8,122	-23,974	15,852	-66.12
330	Profit (Loss) for the period	537,993	11,581	18,748	353,805	153,859	379,304	-225,445	-59-44
340	Profit (Loss) for the period pertaining to minority interests	-15,068	-4,876			-10,192	-21,178	10,986	-51.87
350	Profit (Loss) for the period pertaining to the Parent Company	522,925	6,705	18,748	353,805	143,667	358,126	-214,459	-59.88

Reclassified consolidated income statement by quarter

									(III circusureming
Captions		1st quarter 2019		3rd 2nd quarter quarter 2019 2019 on a like-for- like basis	2019	3rd quarter 1st quarter 2nd quarter 2018	2018	3rd quarter 4th quarter 2018	2018
10+20	Net interest income	273,896	272,288	268,300	315,909	293,234	280,268	276,590	272,345
	of which IFRS 9 components	13,352	15,083	9,685	11,748	25,637	20,757	17,576	12,397
	of which interest expense lease liabilities IFRS 16	-361	-381	-366	-563	-18	-15	-16	-15
40+50	Net commission income	192,544	195,210	197,493	268,316	198,120	190,936	188,025	199,184
70	Dividends	239	9,687	3,420	3,424	584	12,877	325	20,553
	80+90+100+110 Net income from financial activities	22,062	5,403	34,870	49,721	153,634	16,431	20,879	-86,922
230	Other operating expense/income	6,337	8,923	17,553	19,511	11,485	8,174	10,998	13,552
	Operating income	495,378	491,511	521,636	656,881	657,057	508,686	496,817	418,712
190 a)	Staff costs	-213,631	-213,109	-188,761	-230,936	-207,534	-212,900	-194,553	-206,507
190 b)	Other administrative expenses	-90,930	-96,204	-93,809	-118,223	-102,285	-109,981	-104,323	-125,842
	of which rental expenses	-4,692	-4,007	-3,728	-4,825	-15,615	-15,540	-15,883	-15,994
210+220	Net adjustments to property, plant and equipment and intangible assets	-33,172	-35,380	-33,925	-40,189	-21,339	-34,986	-22,933	-39,681
	of which depreciation right of use IFRS 16	-11,249	-11,135	-11,387	-16,033	-726	-733	-741	-741
	Operating costs	-337,733	-344,693	-316,495	-389,348	-331,158	-357,867	-321,809	-372,030
	Net operating income	157,645	146,818	205,141	267,533	325,899	150,819	175,008	46,682
130 a)	Net impairment losses to financial assets at amortised cost	-72,485	-74,551	-143,135	-160,985	-26,141	-58,793	-70,272	-70,566
130 b)	Net impairment losses to financial assets at fair value	421	-392	509	223	1,763	141	150	12
140	Gains (Losses) from contractual modifications without derecognition	-891	-76	-653	-621		-1,183	-1,536	-237
	Net impairment losses for credit risk	-72,955	-75,019	-143,279	-161,083	-24,378	-59,835	-71,658	-70,791
200	Net provisions for risks and charges	-1,995	-9,698	3,525	2,491	-11,663	-25,376	-12,091	23,936
###	Contributions to SRF, DGS, IDPF - VS	-23,184	-9,459	-24,145	-25,771	-20,282	-8,670	-23,448	75
250+270+280	Gains (Losses) on equity investments, disposal investments and impairment losses on goodwill	3,809	4,586	191	415	2,827	2,591	3,535	-57,654
275	Gain on a bargain purchase				353,805
290	Profit (Loss) from current operations before tax	63,320	57,228	41,433	437,390	272,403	59,529	71,346	-57,752
300	Income taxes on current operations for the period	-12,266	987	3,157	-8,666	-6,918	-2,850	-14,206	124,238
330	Profit (Loss) for the period	51,054	58,215	44,590	428,724	265,485	56,679	57,140	66,486
340	Profit (Loss) for the period pertaining to minority interests	-3,083	-5,694	-1,415	-6,291	-14,462	183	-6,899	-22,659
350	Profit (Loss) for the period pertaining to the Parent Company	47,971	52,521	43,175	422,433	251,023	56,862	50,241	43,827

Consolidated balance sheet

					(in thousands)
Assets		30.09.2019	31.12.2018	Change	% Change
		493,538	459,782
10.	Cash and cash equivalents			33,756	7.34
	20. Financial assets measured at fair value through profit or loss	1,149,223	1,128,625	20,598	1.83
	a) financial assets held for trading	328,291	247,219	81,072	32.79
	b) financial assets designated at fair value	131,594	218,662	-87,068	-39.82
	c) other financial assets mandatorily measured at fair value	689,338	662,744	26,594	4.01
	30. Financial assets measured at fair value through other comprehensive income	6,911,141	8,563,992	-1,652,851	-19.30
	40. Financial assets measured at amortised cost	66,961,934	56,054,342	10,907,592	19.46
	a) loans to banks	6,363,946	3,306,678	3,057,268	92.46
	b) loans to customers	60,597,988	52,747,664	7,850,324	14.88
	50. Hedging derivatives	65,401	35,564	29,837	83.90
70.	Equity investments	251,613	446,049	-194,436	-43-59
90.	Property, plant and equipment	1,356,757	1,063,273	293,484	27.60
100.	Intangible assets	612,235	445,689	166,546	37.37
	of which:
	- goodwill	434,758	264,740	170,018	64.22
110.	Tax assets	1,960,020	1,885,616	74,404	3. તેટ
	a) current	390,182	457,838	-67,656	-14.78
	b) deferred	1,569,838	1,427,778	142,060	તે. તે જે જે જે જેવી તેમ જ દૂધની ડેરી જેવી સવલતો પ્રાપ્ય થયેલી છે. આ ગામમાં પ્રાથમિક શાળા, પંચાયતઘર, આંગણવાડી તેમ જ દૂધની ડેરી જેવી સવલતો પ્રાપ્ય થયેલી છે. આ ગામનાં લોકોનો મ
	120. Non current assets and disposal groups classified as held for sale	5,346	2,800	2,546	90.93
130.	Other assets	928,218	549,035	379,183	69.06
	Total Assets	80,695,426	70,634,767	10,060,659	14.24

Consolidated balance sheet

					(in thousands)
	ilities and shareholders' equity	30.09.2019	31.12.2018		Change % Change
	Financialliabilities measured at amortised cost	70,520,235	63,122,667	7,397,568	11.72
	a) due to banks	12,353,388	13,126,248	-772,860	-5.89
	b) due to customers	51,769,432	44,594,863	7,174,569	16.09
	c) debt securities issued	6,397,415	5,401,556	995,859	18.44
).	Financialliabilities held for trading	247,347	143,824	103,523	71.98
).	Hedging derivatives	419,671	92,374	327,297	354.32
),	Tax liabilities	89,467	62,644	26,823	42.82
	a) current	29,538	3,966	25,572	644.78
	b) deferred	59,929	58,678	1,251	2.13
),	Other liabilities	3,234,769	1,663,946	1,570,823	94.40
).	Employee termination indemnities	200,512	182,793	17,719	9.69
.C	Provisions for risks and charges	551,033	469,951	81,082	17.25
	a) commitments and guarantees granted	58,206	63,059	-4,853	-7.70
	b) pensions and similar obligations	169,465	131,126	38,339	29.24
	c) other provisions for risks and charges	323,362	275,766	47,596	17.26
	Valuation reserves	-39,838	949	-40,787
	Equity instruments	150,000		150,000	n.s.
C	Reserves	2,088,106	1,619,469	468,637	28.94
	Share premium reserve	999,373	930,073	69,300	7.45
C	Share capital	1,542,925	1,443,925	99,000	6.86
	Treasury shares (-)	-7,259	-7,258	-1	0.01
	Minority interests (+/-)	176,160	507,457	-331,297	-65.29
C	Profit (I oss) for the neriod (+/-)	522,925	401,953	120,972	30.10

Consolidated income statement Annexes

aptions		30.09.2019	30.09.2018	Change	Change %
10.	Interest and similar income	1,057,644	1,044,587	13,057	1.25
	of which: interest income calculated using the effective interest method	1,039,265	1,029,728	9,537	0.93
20.	Interest and similar expense	-195,551	-194,495	-1,056	0.54
30.	Net interest income	862,093	850,092	12,001	1.41
40.	Commission income	720,079	603,652	116,427	19.29
50.	Commission expense	-64,009	-26,571	-37,438	140.90
60.	Net commission income	656,070	577,081	78,989	13.69
70.	Dividends and similar income	13,650	13,786	-136	-0.99
80.	Net income from trading activities	-23,554	25,217	-48,771	-193.41
90.	Net income from hedging activities	-4,178	1,992	-6,170	-309.74
100.	Gains (Losses) on disposal or repurchase of:	110,205	152,809	-42,604	-27.88
	a) financial assets measured at amortised cost	39,458	-11,915	51,373	-431.16
	b) financial assets measured at fair value through other comprehensive income	70,311	164,452	-94,141	-57.25
	c) financialliabilities	436	272	164	60.29
110.	Net incomeon financialassets and liabilities measured at fair value through profit or loss	-5,287	10,926	-16,213	-148.39
	a) financial assets and liabilities designated at fair value	-6,965	-5,010	-1,955	39.02
	b) other financial assets mandatorily measured at fair value	1,678	15,936	-14,258	-89.47
120.	Net interest and other banking income	1,608,999	1,631,903	-22,904	-1.40
130.	Net impairment losses for credit risk relating to:	-307,439	-153,152	-154,287	100.74
	a) financial assets measured at amortised cost	-308,021	-155,206	-152,815	98.46
	b) financial assets measured at fair value through other comprehensive income	582	2,054	-1,472	-71.67
140.	Gains (Losses) from contractual modifications without derecognition	-1,618	-2,719	1,101	-40.49
150.	Net income from financial activities	1,299,942	1,476,032	-176,090	-11.93
180.	Net income from financial and insurance activities	1,299,942	1,476,032	-176,090	-11.93
190.	Administrative expenses:	-1,121,498	-1,078,950	-42,548	3.94
	a) staff costs	-657,676	-614,987	-42,689	6.94
	b) other administrative expenses	-463,822	-463,963	141	-0.03
200.	Net provisions for risks and charges	-9,202	-49,130	39,928	-81.27
	a) commitments and guarantees granted	6,837	18,843	-12,006	-63.72
	b) other net provisions	-16,039	-67,973	51,934	-76.40
210.	Net adjustments to property, plant and equipment	-69,649	-43,900	-25,749	58.65
220.	Net adjustments to intangible assets	-39,092	-35,358	-3,734	10.56
230.	Other operating expense/income	134,822	125,631	9,191	7.32
240.	Operating costs	-1,104,619	-1,081,707	-22,912	2.12
250.	Gains (Losses) of equity investments	10,539	8,806	1,733	19.68
275.	Gain on a bargain purchase	353,805		353,805	n.s.
280.	Gains (Losses) on disposal investments	-1,729	147	-1,876
290.	Profit (Loss) from current operations before tax	557,938	403,278	154,660	38.35
300.	Income taxes on current operations	-19,945	-23,974	4,029	-16.81
310.	Profit (Loss) from current operations after tax	537,993	379,304	158,689	41.84
330.	Profit (Loss) for the period (+/-)	537,993	379,304	158,689	41.84
340.	Profit (Loss) for the period pertaining to minority interests	-15,068	-21,178	6,110	-28.85
350.	Profit (Loss) for the period pertaining to the Parent Company	522,925	358,126	164,799	46.02

Performance ratios

Financial ratios	30.09.2019	2018 (*
Own Funds (Phased in) (in thousands of Euro)		(13)
Common Equity Tier 1 (CET1)	4,957,756	4,367,711
Own Funds	6,001,478	5,278,852
Risk-weighted assets (RWA) Capital and liquidity ratios	34,811,483	30,606,171
Common Equity Tier 1 Ratio (CET1 Ratio) - Phased in	14.24%	14.27%
Tier 1 Ratio (T1 Ratio) - Phased in	14.68%	14.37%
Total Capital Ratio (TC Ratio) - Phased in	17.24%	17.25%
Common Equity Tier 1 Ratio (CET1 Ratio) - Fully Phased	12.36%	11.95%
Leverage Ratio - Phased in	6.1%	6.0% (14)
Leverage Ratio - Fully Phased	5.3%	5.0% (15)
Liquidity Coverage Ratio (LCR)	163.9%	154.3%
Net Stable Funding Ratio (NSFR)	n.a.	106.8% (16)

Non-financial ratios	30.09.2019	2018 (
Productivity ratios (in thousands of Euro)
Direct deposits per employee	4,181.66	4,304.47
Loans to customers per employee	3,773.98	4,050.88
Assets managed per employee	2,732.79	1.664.31
Assets administered per employee	4,991.27	1,457.29
Core revenues per employee	109.14	122.75 (17)
Net interest and other banking income per employee	115.67	140.35
Operating costs per employee	79.41	93.03

(1) Annexes

Performance ratios notes

(i) To construct ratios, reference was made to the recass of the recassified statements prepared from a management point of view as per the present Press Release.

(2) Fixed assets include both Equity investments and Property, plant and equipment

(3) Tangible equity: total shareholders' equity, including minority interests, net of intangible assets

(4) Total tangible assets = total assets net of intangible assets

(5) The number of employees (point figures) does not include the expectations

(6) ROE at 30 September 2019 has been calculated on an annual basis replit (loss) for the period for the rest of the year.

(7) ROTE at 30 September 2019 has been calculated on an annual basis replicating the profit (loss) for the rest of the year

(8) ROA at 30 September 2019 has been calculated on an annual basis replicating the profit (loss) for the rest of the year

(g) The costincome ratio has been calculated on the reclassified income statement (operating income); when alculated on the basis of the layouts provided by the Circular of the Bank of tay no. 262 the cost income ratio is at 68.5% (66.2%). at 30 September 2018 as per the Consolidated interim report as at 30 September 2018)

(10) EPS has been calculated net of treasury shares in portfolio

(11) See previous note

(z) The texas ratio is calculated as the relationing bans and net tangible equity increased by impairment provisions for nor-performing bans

(r) Items have been calculated according to the provision (CV) 57/2013 (CRR), as amended by the Commission Delegated Regulation (EU) 299/2017

(14) The ratio has been calculated according of Regulation (EU) 575207 (CRR), as amended by the Commission Delegated Regulation (EU) 62/2015

(15) See previous note

(16) The NSFR, not yet available, is in any case estimated to exceed 100% (112.6% as at 30 June 2019)

(17) Core revenues = net interest income + net commission income

(1) The compative patrimonial ratios, togetherwith ROE, and ROA, have been calculated on figures at 31 Jecember 2018 at 19 December 2018, while economical ratios have been call as per the Consolidated interim report as at 30 September 2018

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 Via San Carlo, 8/20 - 41121 Modena - Italy

• +39 059 2022528
• giulia.bruni@bper.it

Nicola Sponghi Investor Relations

Via San Carlo, 8/20 - 41121 Modena - Italy

+39 059 2022219

nicola.sponghi@bper.it