Bper Banca — Investor Presentation 2020

Feb 5, 2020

FY19 consolidated results

Alessandro Vandelli - CEO 5 February 2020

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., head office in Modena, via San Carlo, 8/20 - Tax Code and Modena Companies Register no. 01153230360 – Company belonging to the BPER BANCA GROUP VAT, VAT no. 03830780361 – Share capital Euro 1,561,883,844 - ABI Code 5387.6 - Register of Banks no. 4932 - Member of the Interbank Deposit Guarantee Fund and of the National Guarantee Fund - Parent Company of the BPER Banca S.p.A. Banking Group - Register of Banking Groups no. 5387.6 - Tel. 059.2021111 - Telefax 059.2022033 - e-mail: servizio.clienti@bper.it - Certified e-mail (PEC): bper@pec.gruppobper.it - bper.it – istituzionale.bper.it

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 carrying amount of around € 1 billion.

These transactions took effect for accounting purposes from 1 July 2019 and Unipol Banca and ARCA Holding Spa were included in the scope of consolidation of the BPER Group from the same date.

The balance sheet figures at 31 December 2019 include the assets and liabilities of the new companies forming part of the Group scope and 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 31 December 2019 are not comparable with those of the previous year, which also included nonrecurring gains realised on debt securities.

Agenda

BPER GROUP CONSOLIDATED RESULTS

Executive summary

Balance sheet structure

Profit and loss

Liquidity and Capital adequacy

Final remarks

ANNEXES

Executive summary (1/2)

Strategic operations completed

• All strategic operations scheduled for 2019 completed
• In Q4: 1) agreement signed with Trade Unions provided for in the 2019-21 industrial plan; 2) Unipol Banca merged by incorporation into the parent company BPER Banca1 ; 3) concluded the Public Exchange Offer on Banco di Sardegna saving shares
• Unipol Banca and Arca Holding became part of the BPER Group's scope of consolidation starting from 1 July 20191
• FY19 Net profit of 379.6 €/mn
• Second best results (after 2018) in the history of the Group r
• Change in the scope of consolidation and some significant non-recurring items2. In particular, in the 2H19:
• one-off cost of 136.0 €/mn (gross of the tax effect) relating to the redundancy plan confirming the Group's headcount targets set by the 2019-2021 Business Plan;
• one-off costs relating to the strategic operations for 21.1 €/mn;
• higher loan loss provisions up by over 150 €/mn compared to the 1H19 (301.3 €/mn in 2H19 vs 148.0 €/mn in 1H19) also in line with the expected further acceleration of the de-risking process;
• Impairments on properties and equity investments for a total of 34.1 €/mn;
• Negative items were substantially balanced by the accounting of the badwill generated by the acquisition of Unipol Banca equal to 343.4 €/mn after the conclusion of the Purchase Price Allocation process

Growing

• dividend Proposal for ^a cash dividend of ¹⁴ €/cents per share vs ¹³ €/cents in ²⁰¹⁸ confirming the trend of constant growth of shareholder remuneration over time
• 1. Unipol Banca was merged by incorporation into the parent company BPER Banca on November 25th. For details see press release on 25 November 2019

• 2.Details on pag. 16

• At the end of the Purchase Price Allocation process ("PPA"), the badwill is 343.4 €/mn as a result of the difference between the shareholders' equity at fair value of Unipol Banca and Finitalia for 563.4 €/mn (net of the value of the Finitalia investment held by Unipol Banca) and the cash amount paid for their acquisition of 220 €/mn.

Strong profiitability

Executive summary (2/2)

Sound capital position

• CET1 ratio Fully Phased at 12.01% vs 12.36% in Sep.t.'19 and 11.95% in Dec.'18
• CET1 ratio Phased In at 13.91% with a large buffer vs ECB minimum regulatory requirement (SREP requirement at 9.0% for 2019 )

Improving asset quality

• Strong decline of gross NPE ratio at 11.1% (-2.7 p.p. vs 13.8% in Dec.'18) and default rate at 1.7% (1.9% in Dec.'18) notwithstanding the inclusion of the impact of the New Definition of Default
• Net NPE ratio at 5.8% vs 6.8% in Dec.'18
• Cost of credit at 86 bps also impacted by higher loan loss provisions in line with the further acceleration of the de-risking process
• Activities started on a new securitization of a bad loans portfolio, to be completed by the end of 1H20, with the aim of reaching, over one year in advance, the target of a gross NPE ratio below 9% set in the Business Plan for 2021
• Strong increase of customer volumes mainly due to the change in the scope of consolidation

Increase of customer volumes

• Total funding at 175.5 €/bn including Bancassurance segment, following the change in the scope of consolidation. Direct funding at 58.1 €/bn, Indirect deposits at 110.6 €/bn (of which AuC for 68.9 €/bn and AuM for 41.7 €/bn) and Bancassurance at 6.8 €/bn.
• Net loans to customers at 52.0 €/bn

• New production of residential mortgages and consumer credit up respectively by 19.9% and 6.1% vs 2018

• Unipol Banca was merged by incorporation into the parent company BPER Banca on November 25th.

Agenda

BPER GROUP CONSOLIDATED RESULTS

Executive summary

Balance sheet structure

Profit and loss

Liquidity and Capital adequacy

Final remarks

ANNEXES

Balance sheet structure

Total funding

Strong increase of all funding components mainly due to the change in the scope of consolidation. Stock at 175.5 €/bn in Dec.'19

1. Life-insurance products Note: figures in this page may not add exactly due to rounding differences

Direct funding

Direct funding at 58.1 €/bn, mainly based on customer deposits which count for 94.1% of the total. Stock substantially stable vs Sept.'19

Direct Funding breakdown (€/mn; %)

€/mn	Dec 18	Sept 19	Dec 19	Chg vs Sept.'19 (%)	Chg vs Dec.'18 (%)
Direct customer deposits	45,017	55,005	54,627	-0.7%	+21.3%
o.w. current accounts and sight deposits	37,413	46,830	47,725	+1.9%	+27.6%
o.w. bonds subscribed by retail customers	1,459	2,270	1,812	-20.2%	+24.2%
o.w. other	6,144	5,904	5,091	-13.8%	-17.1%
Institutional direct funding	4,980	3,162	3,429	+8.4%	-31.2%
o.w. Institutional bonds	2,532	3,162	3,278	+3.7%	+29.5%
o.w. Institutional repos	2,448	0	150	n.m.	-93.9%
Total direct funding	49,996	58,167	58,056	-0.2%	+16.1%

• In 4Q19:
• Customer funding decrease by 0.4 €/bn vs Sept.'19 (-0.7% vs Sept.'19): short term funding increase by 1.9% in the presence of a decrease CDs (-23.1%) and bonds (-20.2%)
• Institutional funding at 3.4 €/bn up by 8.4% with a slight increase of both bonds and repos vs Sept.'19
• In 2020 and 2021 only 0.9 €/bn of institutional bonds maturities of which 750 €/mn of a Covered Bond in 2020

Direct Funding, quarterly trend (€/bn)

Indirect funding and Bancassurance

Stock reaches 117.4 €/bn with AuM and Bancassurance respectively at 41.7 €/bn and 6.8 €/bn. Bancassurance increase by 5.5% vs Sept.'19

€/mn		Dec 18	Sept 19	Dec 19	Chg vs Sept.'19 (%)	Chg vs Dec.'18 (%)
Assets under custody		16,926	69,429	68,909	-0.7%	+307.1%
Assets under management		19,331	38,013	41,714	+9.7%	+115.8%
Bancassurance (stock)		4,993	6,464	6,821	+5.5%	+36.6%
Total		41,251	113,905	117,444	+3.1%	+184.7%
	From 4Q19 onwards, AuM funds of about 3.8 €/bn			includes stock of pension

Indirect Deposits and Bancassurance1 (€/mn; %)

• Indirect funding and Bancassurance stock of 117.4€/bn mainly thanks to the change in the scope of consolidation
• Very positive perfomance of Bancassurance with an increase by 5.5% vs Sept.'19
• 2019 AuM and life insurance products net inflows of 1.4 €/bn. Positive progression also in 4Q19 with net inflows of 0.4 €/bn

41.3 42.6 43.6 113.9 117.4 quarterly trend (€/bn)

Indirect Deposits and Bancassurance1

Net inflows2 of AuM and life insurance products (€/mn)

Dec 18 Mar 19 Jun 19 Sept 19 Dec 19

1. Life-insurance products

2. Figures from data management system and excluding ARCA Fondi SGR Note: figures in this page may not add exactly due to rounding differences

Customer loans

Gross and net customer loans respectively at 55.3 €/bn and 52.0 €/bn. Gross NPE stock decrease by 13.1% since Dec.'18. Good quality of performing loans book

€/mn		Dec 18	Sept 19	Dec 19	Chg vs Sept.'19 (%)	Chg vs Dec.'18 (%)
Current accounts		4,691	5,205	4,842	-7.0%	+3.2%
Mortgage loans		28,374	33,036	32,540	-1.5%	+14.7%
Other transactions		13,987	14,255	14,624	+2.6%	+4.6%
Net loans		47,051	52,496	52,006	-0.9%	+10.5%
	o.w. performing	43,846	49,309	49,008	-0.6%	+11.8%
	o.w. NPEs	3,205	3,187	2,998	-5.9%	-6.4%
Gross loans		51,057	56,030	55,292	-1.3%	+8.3%
	o.w. performing	44,011	49,515	49,169	-0.7%	+11.7%
	o.w. NPEs	7,046	6,515	6,123	-6.0%	-13.1%

Customer loans breakdown (net & gross fig.; €/mn; %) Net customer loans, quarterly trend (€/bn)

• In 2019, residential mortgages and consumer credit origination up by 19.9% and 6.1% vs 2018
• In 3Q19, bad loans disposal completed of about 1 €/bn GBV to UnipolRec

Performing exposure rated by risk profile1 (%)

1. Source: performing exposures by rating classes (management data) Note: customer loans excluding customer debt securities. See dedicated table in the Annexes Note: figures in this page may not add exactly due to rounding differences

Non Performing Exposures (1/2)

Gross NPE ratio at 11.1% down respectively by 0.5 p.p. vs Sept.'19 and 2.7 p.p. vs Dec.'18

€/mn	Dec 18	Sept 19	Dec 19	Chg vs Sept.'19 (%)	Chg vs Dec.'18 (%)
Bad loans	4,338	3,492	3,449	-1.2%	-20.5%
Unlikely to pay	2,638	2,920	2,479	-15.1%	-6.0%
Past due	69	103	195	+90.2%	+182.5%
Total	7,046	6,515	6,123	-6.0%	-13.1%

• Gross NPE stock decrease to 6.1 €/bn in Dec.'19 notwithstanding the inclusion of the impact of the New Definition of Default
• Net NPE ratio at 5.8% vs 6.8% in Dec.'18
• NPE coverage at 51.0% basically flat vs Sept.'19

Cash coverage ratios (%)

	Dec 18	Mar 19	Jun 19	Sept 19	Dec 19
Bad loans ("Sofferenze")	66.6%	67.1%	67.0%	63.7%	66.0%
including write-off	71.4%	72.2%	72.1%	68.1%	69.9%
Unlikely to pay	35.7%	34.4%	35.3%	37.2%	33.0%
Past due	12.3%	12.7%	12.8%	15.0%	14.6%
NPE	54.5%	54.6%	54.8%	51.1%	51.0%
including write-off	58.8%	59.2%	59.3%	54.4%	54.3%
Performing exposures	0.4%	0.4%	0.3%	0.4%	0.3%
Total loans	7.8%	7.8%	7.8%	6.3%	5.9%

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

Non Performing Exposures (2/2)

Improvement of default rate at 1.7% (1.9% in 2018) and strong increase of average recovery rate of bad loans at 6.3% (5.3% in 2018)

Default rate (%) Bad loans average recovery rate (%) (Bper Credit Management)

Note: Default rate = 12M19 NPE inflows / performing loans stock at 31 Dec'18; bad loans average recovery rate = collections / average gross bad loan stock for the period

Financial assets portfolio

Financial assets portfolio at 19.0 €/bn

€/mn	FVTPL	FVOCI	AC	Total	% on total
Bonds	356	6,331	11,306	17,994	94.9%
o.w. Italian gov	191	370	5,795	6,355	33.5%
Equity	132	225		357	1.9%
Funds and Sicav	464			464	2.4%
Other*	143			143	0.8%
Total as of 31.12.2019	1,094	6,556	11,306	18,957	100.0%
Total as of 30.09.2019	1,123	6,911	10,744	18,778
Total as of 31.12.2018	1,129	8,561	7,463	17,152
Chg vs Dec.'18 (%)	-3.0%	-23.4%	+51.5%	+10.5%

Total Italian bonds exposure / Total Bond ptf. (%)1

• * Derivatives for hedging purposes related to HFT portfolio
• 1. Source: management data
• 1. Duration in years taking into account hedging

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

Balance sheet structure

Financial Assets breakdown (€/mn; %) Italian Government bonds / Tot. Assets (%)1

• Financial assets portfolio increase by 0.2 €/bn q/q
• Italian government bonds at 6.4 €/bn weighing 33.5% of the whole financial assets portfolio
• Total bond and Italian govies portfolios duration2 respectively 3.0 ys and 4.3 ys

Agenda

BPER GROUP CONSOLIDATED RESULTS

• Executive summary
• Balance sheet structure

Profit and loss

• Liquidity and Capital adequacy
• Final remarks
• ANNEXES

FY19 reclassified Profit & Loss

Strong profitability in 2019 with a Net Profit of 379.6 €/mn in the presence of significant non-recurring costs substantially offset by the badwill on Unipol Banca. Increased dividend of 14 €/cents

For details on Profit & Loss see annexes. Note: Figures in this page may not add exactly due to rounding differences .

Net Interest Income

Resilient ordinary NII1 in 4Q19 at 299.5 €/mn (304.7 €/mn in 3Q19)

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

• 4Q19 NII amounts to 302.4 €/mn, with a decrease of 4.3% q/q mainly due to the IFRS9 and IFRS16; excluding the IFRS9 and IFRS16 effects, "ordinary NII" decreased by only 1.7% q/q (299.5 €/mn in 4Q19 vs 304.7 €/mn in 3Q19)

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»

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

1. Excluding the accounting effects mainly related to the introduction of IFRS9 and IFRS16 accounting principles. For details see the reclassified Income Statement in the Annexes

Net Commissions

Net commissions up by 2.8% q/q supported by the strong performance in Bancassurance (+51.9% q/q)

	Dec 18	Dec 19	Chg y/y (%)
Indirect deposits	206.3	301.9	+46.4%
Assets under custody (AuC)	16.4	30.8	+87.7%
Assets under management (AuM)	189.9	271.1	+42.8%
Bancassurance	60.6	72.7	+19.9%
Credit cards, collections, payments	150.6	162.2	+7.7%
Loans and guarantees	314.9	346.1	+9.9%
Other commissions	43.9	49.1	+12.0%
Total	776.3	932.0	+20.1%

AuM up-front fees of 19.8 €/mn in Dec.19 from 18.7 €/mn in Dec.18, weighing 2.1% on total net commissions

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

Dividends and Trading income

4Q19 trading income at 36.8 €/mn (vs 49.7 €/mn in 3Q19)

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

	Dec 18	Dec 19	Chg y/y (%)
Dividends	34.3	14.1	-58.9%
Trading income	104.0	114.0	+9.6%
Realized gain/loss	116.6	68.6	-41.1%
Plus	38.2	66.4	+73.8%
Minus	-59.0	-29.7	-49.6%
Others	8.2	8.7	+5.5%
Total	138.3	128.1	-7.4%

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

19

Operating costs

Operating costs in 4Q19 at 614.8 €/mn affected by relevant non-recurring items

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

	Dec 18	Dec 19	Chg y/y (%)
Staff expenses	821.5	1049.7	+27.8%
Other administrative expenses	442.4	451.8	+2.1%
D&A	118.9	185.1	+55.6%
Operating costs	1382.9	1686.6	+22.0%

206.5 213.6 213.1 230.9 392.0 125.8 90.9 96.2 118.2 146.5 39.7 33.2 35.4 40.2 76.3 4Q18 1Q19 2Q19 3Q19 4Q19 Staff expenses Other administrative expenses D&A 372.0 337.7 344.7 389.3 614.8 Included: • 136.0 €/mn redundancy plan • 17.2 €/mn costs related to strategic operations • 26.9 €/mn impairment on properties

Loan loss provisions and cost of credit

Loan loss provisions in 4Q19 at 139.5 €/mn. Cost of credit in 2019 at 86 bps (47 bps in 2018). The increase in the 2H19 vs 1H19 is in line with the expected further acceleration of the de-risking process.

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

Agenda

BPER GROUP CONSOLIDATED RESULTS

Executive summary

Balance sheet structure

Profit and loss

Liquidity and Capital adequacy

Final remarks

ANNEXES

Liquidity

Solid net liquidity position at 11.4 €/bn. In Dec.'19, total eligible assets at 20.9 €/bn and ECB deposits at 1.1 €/bn

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

• ECB exposure of 9.7 €/bn in Dec'19 fully composed by TLTRO2 operations (4.5 €/bn TLTRO2 in Jun.'16 and 1 €/bn TLTRO2 in Dec.'16 and 4.2 €/bn in Mar.'17)
• Counterbalancing capacity at 20.9 €/bn in FY19 (+11.7% since Dec.'18)
• LCR and NSFR well above 100%

Capital

Solid capital position confirmed even after the completion of the strategic transactions. CET1 Fully Phased at 12.01% compared with 12.36% in Sept.'19 and 11.95% in Dec.'18

Common Equity Tier 1 Ratios (%)1

1. The Fully Phased and Phased In CET1 ratio values are calculated starting from the result for the year, which includes the badwill generated by the acquisition of Unipol Banca, taking into account the portion of profit not intended for dividends and the expected absorption of deferred tax assets relating to first-time adoption of IFRS 9. BPER will present its request to the ECB for the calculation of these quantities for prudential purposes once the results for the year have been approved.

Agenda

BPER GROUP CONSOLIDATED RESULTS

Executive summary

Balance sheet structure

Profit and loss

Liquidity and Capital adequacy

Final remarks

ANNEXES

ALL STRATEGIC OPERATIONS SCHEDULED for 2019 EXECUTED

SOUND CAPITAL POSITION with a CET1 RATIO FL at 12.01%

ASSET QUALTY IMPROVEMENT: GROSS NPE RATIO at 11.1% AND DEFAULT RATE at 1.7%

Target of gross NPE ratio below 9% by the end of 1H20 mainly thanks to the new securitization of a bad loans portfolio

STRONG PROFITABILITY with a Net profit of 379.6 €/mn INCREASED DIVIDEND: 14 €/cents in 2019

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	Dec 19	% on Total Customer Loans	Δ % vs Dec 18
Manufacturing	7,411	14.3%	-1.0%
Wholesale and retail services, recoveries and repairs	4,656	9.0%	+2.3%
Constructions	2,417	4.6%	-3.3%
Real Estate	3,141	6.0%	+4.6%
HORECA*	1,320	2.5%	+6.2%
Agriculture, forestry and fishing	848	1.6%	+14.1%
Other	5,027	9.7%	-2.9%
Total loans to non-financial businesses	24,820	47.7%	+0.5%
Households	21,191	40.7%	+27.1%
Total loans to financial businesses	5,995	11.6%	+5.5%
Total Customers Loans	52,006	100.0%	+10.5%
Debt Securities	8,562	16.5%	+50.3%

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

Asset quality breakdown (excl. customer debt securities)

Gross exposures (€/mn)	Dec 18		Mar 19		Jun 19		Sept 19		Dec 19		Chg Y/Y
		%		%		%		%		%	Abs.	Chg (%)
Non Performing Exposures (NPEs)	7,046	13.8%	6,947	13.8%	6,937	13.7%	6,515	11.6%	6,123	11.1%	-923	-13.1%
Bad loans	4,338	8.5%	4,324	8.6%	4,321	8.6%	3,492	6.2%	3,449	6.2%	-889	-20.5%
Unlikely to pay loans	2,638	5.2%	2,562	5.1%	2,526	5.0%	2,920	5.2%	2,479	4.5%	-159	-6.0%
Past due loans	69	0.1%	61	0.1%	90	0.1%	103	0.1%	195	0.4%	126	+182.5%
Gross performing loans	44,011	86.2%	43,514	86.2%	43,549	86.3%	49,514	88.4%	49,169	88.9%	5,158	+11.7%
Total gross exposures	51,057	100.0%	50,461	100.0%	50,486	100.0%	56,029	100.0%	55,292	100.0%	4,235	+8.3%

Adjustments to loans (€/mn)	Dec 18		Mar 19			Jun 19		Sept 19		Dec 19		Chg Y/Y
		coverage (%)		coverage (%)		coverage (%)		coverage (%)		coverage (%)	Abs.	Chg (%)
Adjustments to NPEs	3,841	54.5%	3,790	54.5%	3,799	54.8%	3,328	51.1%	3,125	51.0%	-716	-18.7%
Bad loans	2,890	66.6%	2,900	67.1%	2,896	67.0%	2,225	63.7%	2,278	66.0%	-612	-21.2%
Unlikely to pay loans	942	35.7%	882	34.4%	891	35.3%	1,087	37.2%	818	33.0%	-124	-13.2%
Past due loans	9	12.3%	8	12.7%	12	12.8%	16	15.0%	29	14.6%	20	+233.7%
Adjustments to performing loans	165	0.4%	159	0.4%	145	0.3%	205	0.4%	161	0.3%	-4	-1.8%
Total adjustments	4,006	7.8%	3,949	7.8%	3,944	7.8%	3,533	6.3%	3,286	5.9%	-720	-18.0%

Net exposures (€/mn)	Dec 18		Mar 19		Jun 19		Sept 19		Dec 19		Chg Y/Y
		%		%		%		%		%	Abs.	Chg (%)
Non Performing Exposures (NPEs)	3,205	6.8%	3,157	6.8%	3,138	6.7%	3,187	6.1%	2,998	5.8%	-207	-6.4%
Bad loans	1,448	3.1%	1,424	3.1%	1,425	3.1%	1,267	2.4%	1,171	2.3%	-277	-19.1%
Unlikely to pay loans	1,696	3.6%	1,680	3.6%	1,635	3.5%	1,833	3.5%	1,661	3.2%	-35	-2.1%
Past due loans	61	0.1%	53	0.1%	78	0.1%	87	0.1%	166	0.2%	105	+175.3%
Net performing loans	43,846	93.2%	43,355	93.2%	43,404	93.3%	49,309	93.9%	49,008	94.2%	5,162	+11.8%
Total net exposures	47,051	100.0%	46,512	100.0%	46,542	100.0%	52,496	100.0%	52,006	100.0%	4,955	+10.5%

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

Financial Assets details

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

30

Bonds maturities and issues details

	Dec 18	Sep 19*	Dec 19*
Wholesale bonds	2.5	3.1	3.2
o/w covered bonds	2.0	2.6	2.6
o/w subordinated bonds	0.5	0.5	0.5
Retail bonds	1.5	2.5	2.0
o/w subordinated bonds	0.3	0.8	0.4
Total bonds	4.0	5.6	5.2

2020 Bonds maturities (€/bn) Bonds maturities breakdown* (€/bn)

*: including Unipol Banca bonds

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

Annexes

Reclassified financial statement of BPER Group as at 31.12.19

For greater clarity in the presentation of the results for the year, the accounting schedules envisaged by the 6th update of Bank of Italy Circular no. 262/2005 have been reclassified as follows.

In the balance sheet:

• Debt securities valued at amortised cost (caption 40 "Financial assets measured at amortised cost") have been reclassified under caption "Financial assets";
• "Other assets"include captions 110 "Tax assets", 120 "Non current assets and disposal groups classified as held for sale" and 130 "Other assets";
• "Other liabilities"include captions 60 "Tax liabilities", 80 "Other liabilities", and 90 "Employee termination indemnities" and 100 "Provisions for risks and charges".

In the income statement:

• "Net income from financial activities" includes captions 80, 90, 100 and 110 in the standard reporting format;
• Indirect tax recoveries, allocated for accounting purposes to caption 230 "Other operating expense/income", have been reclassified as a reduction in the related costs under "Other administrative expenses" (Euro 137,269 thousand at 31 December 2019 and Euro 126,014 thousand at 31 December 2018);
• "Net adjustments to property, plant, equipment and intangible assets" include captions 210 and 220 in the standard reporting format;
• "Gains (Losses) on equity investments, disposal investments and impairment losses on goodwill" include captions 250, 270 and 280 in the reporting format;
• "Contributions to the SRF, DGS and IDPF-VS funds" has been shown separately from the specific accounting technical forms to give a better and clearer representation, as well as to leave the "Other administrative expenses" as a better reflection of the trend in the Group's operating costs. In particular, at 31 December 2019, this caption represents the component allocated to administrative costs related to:
• the 2019 ordinary contribution to the SRF (European Single Resolution Fund) for Euro 23,043 thousand;
• the additional contribution required by SRF to the Italian Banks for the year 2017 equal to Euro 9,587 thousand;
• the 2019 ordinary contribution to the DGS (Deposit Guarantee Scheme) for Euro 28,051 thousand.
• appropriate specifications ("of which") have been included in "Net interest income", "Other administrative expenses" and "Net adjustments to property, plant, equipment and intangible assets" captions in order to highlight the impacts of IFRS 16 application (from 1 January 2019) and in "Net interest income" caption in order to highlight the impacts of IFRS 9 application (from 1 January 2018).

Reclassified consolidated balance sheet Annexes

							(in thousands)
Assets	31.12.2019	30.09.2019	Change 31.12.2019 - 30.09.2019	% Change 31.12.2019 - 30.09.2019	31.12.2018	Change 31.12.2019 - 31.12.2018	% Change 31.12.2019 - 31.12.2018
Cash and cash equivalents	566,930	493,538	73,392	14.87	459,782	107,148	23.30
Financial assets	18,956,906	18,777,522	179,384	0.96	17,152,084	1,804,822	10.52
a) Financial assets held for trading	270,374	328,291	(57,917)	-17.64	247,219	23,155	9.37
b) Financial assets designated at fair value	130,955	131,594	(639)	-0.49	218,662	(87,707)	-40.11
c) Other financial assets mandatorily measured at fair value	692,995	662,663	30,332	4.58	662,744	30,251	4.56
d) Financial assets measured at fair value through other comprehensive income	6,556,202	6,911,141	(354,939)	-5.14		8,560,568 (2,004,366)	-23.41
e) Debt securities measured at amortised cost	11,306,380	10,743,833	562,547	5.24	7,462,891	3,843,489	51.50
- banks	2,744,570	2,641,906	102,664	3.89	1,766,169	978,401	55.40
- customers	8,561,810	8,101,927	459,883	5.68	5,696,722	2,865,088	50.29
Loans	54,353,634	56,244,776	(1,891,142)	-3.36	48,594,875	5,758,759	11.85
a) Loans to banks	2,321,809	3,722,040	(1,400,231)	-37.62	1,540,509	781,300	50.72
b) Loans to customers	52,006,038	52,496,061	(490,023)	-0.93	47,050,942	4,955,096	10.53
c) Financial assets measured at fair value	25,787	26,675	(888)	-3.33	3,424	22,363	653.13
Hedging derivatives	82,185	65,401	16,784	25.66	35,564	46,621	131.09
Equity investments	225,869	251,613	(25,744)	-10.23	446,049	(220,180)	-49.36
Property, plant and equipment	1,369,724	1,356,757	12,967	0.96	1,063,273	306,451	28.82
Intangible assets	669,847	612,235	57,612	9.41	445,689	224,158	50.29
- of which: goodwill	434,758	434,758	-	-	264,740	170,018	64.22
Other assets	2,808,403	2,893,584	(85,181)	-2.94	2,437,451	370,952	15.22
Total assets	79,033,498	80,695,426	(1,661,928)	-2.06	70,634,767	8,398,731	11.89

Reclassified consolidated balance sheet Annexes

							(in thousands)
Liabilities and shareholders' equity	31.12.2019	30.09.2019	Change 31.12.2019 -	% Change 31.12.2019 -	31.12.2018	Change 31.12.2019 -	% Change 31.12.2019 -
			30.09.2019	30.09.2019		31.12.2018	31.12.2018
Due to banks	12,213,133	12,353,388	(140,255)	-1.14	13,126,248	(913,115)	-6.96
Direct deposits	58,055,608	58,166,847	(111,239)	-0.19	49,996,419	8,059,189	16.12
a) Due to customers	52,220,719	51,769,432	451,287	0.87	44,594,863	7,625,856	17.10
b) Debt securities issued	5,834,889	6,397,415	(562,526)	-8.79	5,401,556	433,333	8.02
Financial liabilities held for trading	165,970	247,347	(81,377)	-32.90	143,824	22,146	15.40
Hedging derivatives	294,114	419,671	(125,557)	-29.92	92,374	201,740	218.39
Other liabilities	3,013,126	4,075,781	(1,062,655)	-26.07	2,379,334	633,792	26.64
Minority interests	131,662	176,160	(44,498)	-25.26	507,457	(375,795)	-74.05
Shareholders' equity pertaining to the Parent Company	5,159,885	5,256,232	(96,347)	-1.83	4,389,111	770,774	17.56
a) Valuation reserves	37,750	(39,838)	77,588	-194.76	949	36,801	--
b) Reserves	2,035,205	2,088,106	(52,901)	-2.53	1,619,469	415,736	25.67
c) Equity instruments	150,000	150,000	-	-	-	150,000	n.s.
d) Share premium reserve	1,002,722	999,373	3,349	0.34	930,073	72,649	7.81
e) Share capital	1,561,884	1,542,925	18,959	1.23	1,443,925	117,959	8.17
f) Treasury shares	(7,259)	(7,259)	-	-	(7,258)	(1)	0.01
g) Profit (Loss) for the period	379,583	522,925	(143,342)	-27.41	401,953	(22,370)	-5.57
Total liabilities and shareholders' equity	79,033,498	80,695,426	(1,661,928)	-2.06	70,634,767	8,398,731	11.89

Reclassified consolidated income statement Annexes

					(in thousands)
Captions		31.12.2019	31.12.2018		Change % Change
10+20	Net interest income	1,164,539	1,122,437	42,102	3.75
	of which IFRS 9 components*	43,643	76,367	(32,724)	-42.85
	of which interest expense lease liabilities IFRS 16	(1,834)	(64)	(1,770)	--
40+50	Net commission income	931,950	776,265	155,685	20.06
70	Dividends	14,101	34,339	(20,238)	-58.94
	80+90+100+110 Net income from financial activities	113,993	104,022	9,971	9.59
230	Other operating expense/income	51,079	44,209	6,870	15.54
	Operating income	2,275,662	2,081,272	194,390	9.34
190 a)	Staff costs	(1,049,686)	(821,494)	(228,192)	27.78
190 b)	Other administrative expenses	(451,830)	(442,431)	(9,399)	2.12
	of which rental expenses	(17,077)	(63,032)	45,955	-72.91
210+220	Net adjustments to property, plant, equipment and intangible assets	(185,076)	(118,939)	(66,137)	55.61
	of which depreciation right of use IFRS 16	(58,059)	(2,941)	(55,118)	--
	Operating costs	(1,686,592)	(1,382,864)	(303,728)	21.96
	Net operating income	589,070	698,408	(109,338)	-15.66
130 a)	Net impairment losses to financial assets at amortised cost	(447,547)	(225,772)	(221,775)	98.23
130 b)	Net impairment losses to financial assets at fair value	1,256	2,066	(810)	-39.21
140	Gains (Losses) from contractual modifications without derecognition	(2,979)	(2,956)	(23)	0.78
	Net impairment losses for credit risk	(449,270)	(226,662)	(222,608)	98.21
200	Net provisions for risks and charges	(12,193)	(25,194)	13,001	-51.60
###	Contributions to SRF, DGS, IDPF - VS	(60,681)	(52,325)	(8,356)	15.97
250+270+280	Gains (Losses) on equity investments, disposal investments and impairment losses on goodwill	6,611	(48,701)	55,312	-113.57
275	Gain on a bargain purchase	343,361	-	343,361	n.s.
290	Profit (Loss) from current operations before tax	416,898	345,526	71,372	20.66
300	Income taxes on current operations for the year	(22,446)	100,264	(122,710)	-122.39
330	Profit (Loss) for the year	394,452	445,790	(51,338)	-11.52
340	Profit (Loss) for the year pertaining to minority interests	(14,869)	(43,837)	28,968	-66.08
350	Profit (Loss) for the year pertaining to the Parent Company	379,583	401,953	(22,370)	-5.57

Reclassified consolidated income statement by quarter Annexes

									(in thousands)
Captions		1st quarter 2019	2nd quarter 2019	3rd quarter 2019	4th quarter 2019	1st quarter 2018	2nd quarter 2018	3rd quarter 2018	4th quarter 2018
10+20	Net interest income	273,896	272,288	315,909	302,446	293,234	280,268	276,590	272,345
	of which IFRS 9 components	13,352	15,083	11,748	3,460	25,637	20,757	17,576	12,397
	of which interest expense lease liabilities IFRS 16	(361)	(381)	(563)	(529)	(18)	(15)	(16)	(15)
40+50	Net commission income	192,544	195,210	268,316	275,880	198,120	190,936	188,025	199,184
70	Dividends	539	9,687	3,424	451	584	12,877	325	20,553
80+90+100+110	Net income from financial activities	22,062	5,403	49,721	36,807	153,634	16,431	20,879	(86,922)
230	Other operating expense/income	6,337	8,923	19,511	16,308	11,485	8,174	10,998	13,552
	Operating income	495,378	491,511	656,881	631,892	657,057	508,686	496,817	418,712
190 a)	Staff costs	(213,631)	(213,109)	(230,936)	(392,010)	(207,534)	(212,900)	(194,553)	(206,507)
190 b)	Other administrative expenses	(90,930)	(96,204)	(118,223)	(146,473)	(102,285)	(109,981)	(104,323)	(125,842)
	of which rental expenses	(4,692)	(4,007)	(4,825)	(3,553)	(15,615)	(15,540)	(15,883)	(15,994)
210+220	Net adjustments to property, plant and equipment and intangible assets	(33,172)	(35,380)	(40,189)	(76,335)	(21,339)	(34,986)	(22,933)	(39,681)
	of which depreciation right of use IFRS 16	(11,249)	(11,135)	(16,033)	(19,642)	(726)	(733)	(741)	(741)
	Operating costs	(337,733)	(344,693)	(389,348)	(614,818)	(331,158)	(357,867)	(321,809)	(372,030)
	Net operating income	157,645	146,818	267,533	17,074	325,899	150,819	175,008	46,682
130 a)	Net impairment losses to financial assets at amortised cost	(72,485)	(74,551)	(160,985)	(139,526)	(26,141)	(58,793)	(70,272)	(70,566)
130 b)	Net impairment losses to financial assets at fair value	421	(392)	553	674	1,763	141	150	12
140	Gains (Losses) from contractual modifications without derecognition	(891)	(76)	(651)	(1,361)	-	(1,183)	(1,536)	(237)
	Net impairment losses for credit risk	(72,955)	(75,019)	(161,083)	(140,213)	(24,378)	(59,835)	(71,658)	(70,791)
200	Net provisions for risks and charges	(1,995)	(9,698)	2,491	(2,991)	(11,663)	(25,376)	(12,091)	23,936
###	Contributions to SRF, DGS, IDPF - VS	(23,184)	(9,459)	(25,771)	(2,267)	(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	415	(2,199)	2,827	2,591	3,535	(57,654)
275	Gain on a bargain purchase	-	-	353,805	(10,444)	-	-	-	-
290	Profit (Loss) from current operations before tax	63,320	57,228	437,390	(141,040)	272,403	59,529	71,346	(57,752)
300	Income taxes on current operations for the year	(12,266)	987	(8,666)	(2,501)	(6,918)	(2,850)	(14,206)	124,238
330	Profit (Loss) for the year	51,054	58,215	428,724	(143,541)	265,485	56,679	57,140	66,486
340	Profit (Loss) for the year pertaining to minority interests	(3,083)	(5,694)	(6,291)	199	(14,462)	183	(6,899)	(22,659)
350	Profit (Loss) for the year pertaining to the Parent Company	47,971	52,521	422,433	(143,342)	251,023	56,862	50,241	43,827

Consolidated balance sheet

Annexes

					(in thousands)
Assets		31.12.2019	31.12.2018		Change % Change
10.	Cash and cash equivalents	566,930	459,782	107,148	23.30
20.	Financial assets measured at fair value through profit or loss	1,120,111	1,128,625	(8,514)	-0.75
	a) financial assets held for trading	270,374	247,219	23,155	9.37
	b) financial assets designated at fair value	130,955	218,662	(87,707)	-40.11
	c) other financial assets mandatorily measured at fair value	718,782	662,744	56,038	8.46
30.	Financial assets measured at fair value through other comprehensive income	6,556,202	8,563,992	(2,007,790)	-23.44
40.	Financial assets measured at amortised cost	65,634,227	56,054,342	9,579,885	17.09
	a) loans to banks	5,066,379	3,306,678	1,759,701	53.22
	b) loans to customers	60,567,848	52,747,664	7,820,184	14.83
50.	Hedging derivatives	82,185	35,564	46,621	131.09
70.	Equity investments	225,869	446,049	(220,180)	-49.36
90.	Property, plant and equipment	1,369,724	1,063,273	306,451	28.82
100.	Intangible assets	669,847	445,689	224,158	50.29
	of which:
	- goodwill	434,758	264,740	170,018	64.22
110.	Tax assets	2,024,579	1,885,616	138,963	7.37
	a) current	466,312	457,838	8,474	1.85
	b) deferred	1,558,267	1,427,778	130,489	9.14
120.	Non current assets and disposal groups classified as held for sale	3,128	2,800	328	11.71
130.	Other assets	780,696	549,035	231,661	42.19
	Total Assets	79,033,498	70,634,767	8,398,731	11.89

Consolidated balance sheet

(in thousands) Liabilities and shareholders' equity 31.12.2019 31.12.2018 Change % Change 10. Financial liabilities measured at amortised cost 70,268,741 63,122,667 7,146,074 11.32 a) due to banks 12,213,133 13,126,248 (913,115) -6.96 b) due to customers 52,220,719 44,594,863 7,625,856 17.10 c) debt securities issued 5,834,889 5,401,556 433,333 8.02 20. Financial liabilities held for trading 165,970 143,824 22,146 15.40 40. Hedging derivatives 294,114 92,374 201,740 218.39 60. Tax liabilities 75,737 62,644 13,093 20.90 a) current 5,405 3,966 1,439 36.28 b) deferred 70,332 58,678 11,654 19.86 80. Other liabilities 2,069,770 1,663,946 405,824 24.39 90. Employee termination indemnities 191,296 182,793 8,503 4.65 100. Provisions for risks and charges 676,323 469,951 206,372 43.91 a) commitments and guarantees granted 56,004 63,059 (7,055) -11.19 b) pensions and similar obligations 161,619 131,126 30,493 23.25 c) other provisions for risks and charges 458,700 275,766 182,934 66.34 120. Valuation reserves 37,750 949 36,801 -- 140. Equity instruments 150,000 - 150,000 n.s. 150. Reserves 2,035,205 1,619,469 415,736 25.67 160. Share premium reserve 1,002,722 930,073 72,649 7.81 170. Share capital 1,561,884 1,443,925 117,959 8.17 180. Treasury shares (-) (7,259) (7,258) (1) 0.01 190. Minority interests (+/-) 131,662 507,457 (375,795) -74.05 200. Profit (Loss) for the year (+/-) 379,583 401,953 (22,370) -5.57 Total liabilities and shareholders' equity 79,033,498 70,634,767 8,398,731 11.89

Annexes

Consolidated income statement Annexes

					(in thousands)
Captions		31.12.2019	31.12.2018	Change	Change %
10.	Interest and similar income	1,419,767	1,375,925	43,842	3.19
	of which: interest income calculated using the effective interest method	1,395,908	1,358,857	37,051	2.73
20.	Interest and similar expense	(255,228)	(253,488)	(1,740)	0.69
30.	Net interest income	1,164,539	1,122,437	42,102	3.75
40.	Commission income	1,043,000	812,147	230,853	28.43
50.	Commission expense	(111,050)	(35,882)	(75,168)	209.49
60.	Net commission income	931,950	776,265	155,685	20.06
70.	Dividends and similar income	14,101	34,339	(20,238)	-58.94
80.	Net income from trading activities	180	1,812	(1,632)	-90.07
90.	Net income from hedging activities	(1,546)	1,621	(3,167)	-195.37
100.	Gains (Losses) on disposal or repurchase of:	116,600	91,925	24,675	26.84
	a) financial assets measured at amortised cost	38,710	(77,645)	116,355	-149.86
	b) financial assets measured at fair value through other comprehensive income	77,664	168,662	(90,998)	-53.95
	c) financial liabilities	226	908	(682)	-75.11
110.	Net income on financial assets and liabilities measured at fair value through profit or loss	(1,241)	8,664	(9,905)	-114.32
	a) financial assets and liabilities designated at fair value	(8,436)	(4,378)	(4,058)	92.69
	b) other financial assets mandatorily measured at fair value	7,195	13,042	(5,847)	-44.83
120.	Net interest and other banking income	2,224,583	2,037,063	187,520	9.21
130.	Net impairment losses for credit risk relating to:	(446,291)	(223,706)	(222,585)	99.50
	a) financial assets measured at amortised cost	(447,547)	(225,772)	(221,775)	98.23
	b) financial assets measured at fair value through other comprehensive income	1,256	2,066	(810)	-39.21
140.	Gains (Losses) from contractual modifications without derecognition	(2,979)	(2,956)	(23)	0.78
150.	Net income from financial activities	1,775,313	1,810,401	(35,088)	-1.94
180.	Net income from financial and insurance activities	1,775,313	1,810,401	(35,088)	-1.94
190.	Administrative expenses:	(1,699,466)	(1,442,264)	(257,202)	17.83
	a) staff costs	(1,049,686)	(821,494)	(228,192)	27.78
	b) other administrative expenses	(649,780)	(620,770)	(29,010)	4.67
200.	Net provisions for risks and charges	(12,193)	(7,794)	(4,399)	56.44
	a) commitments and guarantees granted b) other net provisions	9,032 (21,225)	16,197 (23,991)	(7,165) 2,766	-44.24 -11.53
210.	Net adjustments to property, plant and equipment	(125,524)	(70,405)	(55,119)	78.29
220.	Net adjustments to intangible assets	(59,552)	(48,534)	(11,018)	22.70
230.	Other operating expense/income	188,348	152,823	35,525	23.25
240.	Operating costs	(1,708,387)	(1,416,174)	(292,213)	20.63
250.	Gains (Losses) of equity investments	7,213	13,349	(6,136)	-45.97
270	Impairment losses on goodwill	-	(62,344)	62,344	-100.00
275.	Gain on a bargain purchase	343,361	-	343,361	n.s.
280. 290.	Gains (Losses) on disposal investments Profit (Loss) from current operations before tax	(602) 416,898	294 345,526	(896) 71,372	-304.76 20.66
300.	Income taxes on current operations	(22,446)	100,264	(122,710)	-122.39
310.	Profit (Loss) from current operations after tax	394,452	445,790	(51,338)	-11.52
330.	Profit (Loss) for the year (+/-)	394,452	445,790	(51,338)	-11.52
340.	Profit (Loss) for the year pertaining to minority interests	(14,869)	(43,837)	28,968	-66.08
350.	Profit (Loss) for the year pertaining to the Parent Company	379,583	401,953	(22,370)	-5.57

Performance ratios (1)

Financial ratios	31.12.2019	2018(*)
Structural ratios
Net loans to customers/total assets	65.80%	66.61%
Net loans to customers/direct deposits from customers	89.58%	94.11%
Financial assets/total assets	23.99%	24.28%
Fixed assets/total assets	2.02%	(2) 2.14%
Goodwill/total assets	0.55%	0.37%
Direct deposits/total assets	88.91%	89.36%
Indirect deposits under management/indirect deposits	37.71%	53.32%
Financial assets/tangible equity	4.10	(3) 3.85
Total tangible assets/tangible equity	16.96	(4) 15.77
Net interbank position (in thousands of Euro)	(9,891,324)	(11,585,739)
Number of employees	13,805	11,615 (5)
Number of national bank branches	1,349	1,218
Profitability ratios
ROE	8.66%	9.06%
ROTE	9.92%	10.15%
ROA (net profit/total assets)	0.50%	0.63%
Cost to income ratio	74.11%	(6) 66.44%
Net impairment losses on loans to customers/net loans to customers	0.86%	0.47%
Basic EPS	0.766	(7) 0.836
Diluted EPS	0.743	(8) 0.836
Risk ratios
Net non-performing loans/net loans to customers	5.77%	6.81%
Net bad loans/net loans to customers	2.25%	3.08%
Net unlikely to pay loans/net loans to customers	3.19%	3.60%
Net past due loans/net loans to customers	0.32%	0.13%
Impairment provisions for non-performing loans/gross non-performing loans	51.03%	54.52%
Impairment provisions for bad loans/gross bad loans	66.04%	66.62%
Impairment provisions for unlikely to pay loans/gross unlikely to pay loans	33.01%	35.73%
Impairment provisions for past due loans/gross past due loans	14.57%	12.33%
Impairment provisions for performing loans/gross performing loans	0.33%	0.37%
Texas ratio	79.04%	(9) 84.97%

Financial ratios	31.12.2019	2018 (*)
Own Funds (Phased in) (in thousands of Euro)		(10)
Common Equity Tier 1 (CET1)	4,828,807	4,367,711
Own Funds	5,839,914	5,278,852
Risk-weighted assets (RWA)	34,721,277	30,606,171
Capital and liquidity ratios
Common Equity Tier 1 Ratio (CET1 Ratio) - Phased in	13.91%	14.27%
Tier 1 Ratio (T1 Ratio) - Phased in	14.35%	14.37%
Total Capital Ratio (TC Ratio) - Phased in	16.82%	17.25%
Common Equity Tier 1 Ratio (CET1 Ratio) - Fully Phased	12.01%	11.95%
Liquidity Coverage Ratio (LCR)	158.9%	154.3%
Net Stable Funding Ratio (NSFR)	n.a.	106.8% (11)

Non-financial ratios	31.12.2019	2018 (*)
Productivity ratios (in thousands of Euro)
Direct deposits per employee	4,205.40	4,304.47
Loans to customers per employee	3,767.19	4,050.88
Assets managed per employee	3,021.68	1,664.31
Assets administered per employee	4,991.60	1,457.29
Core revenues per employee	151.86	163.47 (12)
Net interest and other banking income per employee	161.14	175.38
Operating costs per employee	123.75	121.93

Annexes

Performance ratios notes

Annexes

(1) To construct ratios, reference was made to the balance sheet and income statement figures of the reclassified statements prepared from a management point of view .

(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) The cost/income ratio has been calculated on the basis of the layout of the reclassified income statement (operating costs/operating income); when calculated on the basis of the layouts provided by the 6th update of the Circular of the Bank of Italy no. 262 the cost/income ratio is at 76.80% (69.52% at 31 December 2018 as per the Consolidated Financial Statement as at 31 December 2018).

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

(8) See previous note.

(9) The texas ratio is calculated as the relationship between total gross non-performing loans and net tangible equity increased by impairment provisions for non-performing loans.

(10) Items have been calculated according to the provisions of Regulation (EU) 575/2013 (CRR), as amended by the Commission Delegated Regulation (EU) 2395/2017.

(11) The NSFR, not yet available, is in any case estimated to exceed 100% (117.4% as at 30 September 2019).

(12) Core revenues = net interest income + net commission income.

(*) The comparative ratios have been calculated on figures at 31 December 2018 as per the Consolidated Financial Statements as at 31 December 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