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Bper Banca Investor Presentation 2021

May 7, 2021

4395_rns_2021-05-07_04059752-0dc9-4a39-84ea-6553e18d01f2.pdf

Investor Presentation

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1Q21 consolidated results

Piero Luigi Montani, CEO7 May 2021

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 2,100,435,182.40 - 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: [email protected] - Certified e-mail (PEC): [email protected] - bper.it – istituzionale.bper.it.

Importantmethodological note

Change in the scope of consolidation and Purchase Price Allocation

Changein the scope of consolidation

Q121 saw the completion of the integration in BPER Banca of the UBI Banca business unit1 (consisting of 455 bank branches and 132 operational units) acquired from Intesa Sanpaolo Group. The transaction took effect on 22 February 2021 for legal and accounting purposes, thereby the assets and liabilities of these units have been included in the scope of consolidation with an economic contribution to the P&L starting from the same date.

As a result, the accounting figures at 31 March 2021 are not comparable with the previous periods.

Provisional PurchasePrice Allocation (PPA)

Q121 results included the impact of PPA carried out following the first provisional accounting for the acquisition of UBI going concern, in accordance with IFRS 3 "Business Combinations". The difference between the net equity and the purchase price attributable to the business unit acquired ("Badwill" or "Bargain Purchase") amounted to 928.5 €mln. The allocation process through the measurement at fair value of the assets and liabilities acquired as at the initial recognition date, led to the following PPAadjustments:

  • •-337.5 €mln on non-performing loans;
  • •+220.1 €mln on performing loans;
  • •-19.9 €mln on real estates;
  • •-10.0 €mln on provisions for Risk and Charges.

The outcome of the provisional PPA was a Bargain Purchase booked in the Q121 P&L for 781.5 €mln.

  1. Includes the going concern business operations of UBISS (consortium company controlled by UBI Banca).

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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•

  1. Including life insurance premiums.

  2. See slide 17.

  3. Excluding recovery of badwill taxation (296.4 €mln) as per contractual provisions with Intesa Sanpaolo.

  4. Including UTP disposal finalized in April 2021. The ratio does not include the UTP disposal for a GBV of 52 €mln still in the process of finalization. 5.The CET1 ratio Fully Phased pro-forma has been estimated excluding the effects of the transitional provisions in force and including the result of the period, thus simulating, in advance, the effects of the authorization issued by the ECB for the inclusion of these profits in Own Funds pursuant to art. 26, para. 2 of the CRR.

Agenda

BPER GROUP CONSOLIDATED RESULTS

Executive summary

Balance sheet structure

Profit and loss

Liquidity and Capital adequacy

Final remarks

ANNEXES

Total funding

Total Funding up to 255.2 €bn, thanks to the integration of UBI going concern and a positive commercial activity

Total Funding breakdown (€mln; %)

To
l
Fu
d
ing
ta
n		 De
2
0
c		 Ma
2
1
r		 C
hg (
%
)
D
ire
De
its
ct
p
os		 6
3.
1
4
1		 9
4.
4
4
2		 4
9,
6
%
+
1
In
d
ire
De
its
ct
p
os		 1
2
2.
0
7
7		 1
6
0.
7
4
7		 3
1,
7
%
+
To
l
Fu
d
ing
ta
n		 1
8
5.
2
1
8		 2
5
5.
1
8
8		 3
7,
8
%
+
/w
l
din
AR
CA
Ho
o
g		 17
.44
5		 17
.66
6		 1,
3
%
+

Total Funding, quarterly trend (€bn)

o/w UBI going concern

  • •Total funding on a like-for-like basis increased by 1.5% YTD driven by positive commercial actions

  • •UBI going concern contribution equal to 67.1 €bn

  • Includes life-insurance products

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

Direct funding

Direct funding increased to 94.4€bn, of which 29.4 €bn from UBI going concern

Direct Funding breakdown (€mln; %)

€
/m
ln		 De
2
0
c		 Ma
2
1
r		 C
hg (
%
)
Cu
D
ire
De
i
t
to
ts
c
s
me
r
p
os		 5
9,
5
0
5		 9
0,
3
4
3		 5
1.
8
%
+
/w
Cu
d s
ig
h
de
i
t a
ts
t
ts
o
rre
n
cc
ou
n
an
p
os		 5
5,
1
1
6		 8
5,
7
8
8		 5
5.
7
%
+
/w
Bo
ds
o
n		 8
2
0		 6
1
7		 2
7.
%
-
/w
O
he
t
o
r		 3,
5
6
9		 3,
7
9
3		 6.
3
%
+
Ins
i
io
l
D
ire
fu
d
ing
t
tu
t
t
na
c
n		 3,
6
3
5		 0
9
9
4,		 2.
8
1
%
+
/w
bo
ds
o
n		 3,
5
6
5		 4,
0
6
7		 1
4.
1
%
+
/w
o
rep
os		 0
7		 3
2		 4.
5
5
%
-
To
l
D
ire
De
i
ta
t
ts
c
p
os		 6
3,
1
4
1		 9
4,
4
4
2		 4
9.
6
%
+

Direct Funding, quarterly trend (€bn)

  • •Significant increase in the current accounts and sight deposits component (+55.7% YTD) following the UBI going concern integration
  • •Increase in the direct customer deposits also confirmed on a like-for-like basis (+2.5% YTD)
  • •Incidence of Households clients in the sight deposits up to 62% from 59% at the end of Dec. 20
  • •Institutional funding up by 12.8%, following the inaugural social bond issuance for a nominal amount of 500 €mln

Indirectdeposits

Stock increased to 160.7€bn, of which 37.8 €bn from UBI going concern

€
ln
/m		 De
2
0
c		 Ma
2
1
r		 C
hg (
)
%
As
de
dy
ts
to
se
un
r c
us		 7
2,
0
5
7		 8
2,
6
4
6		 1
4.
7
%
+
As
de
ts
t
se
un
r m
an
ag
em
en		 2
5,
2
7
4		 4
2,
7
5
9		 6
9.
2
%
+
L
i
fe
Ins
ura
nc
e		 3
0
1
7,		 1
6
7,
7
5		 1
4
2.
1
%
+
As
de
Ar
Ho
l
d
ing
ts
t -
se
un
r m
an
ag
em
en
ca		 1
7,
4
4
5		 1
7,
6
6
6		 1.
3
%
+
To
l
in
d
ire
de
i
ta
t
ts
c
p
os		 1
2
2,
0
7
7		 1
6
0,
7
4
7		 3
1.
7
%
+
  • • UBI going concern contribution equal to 37.8 €bn with a high share of life insurance component, in details: 16.6 €bn AUM, 10.2 €bn life insurance and 11.0 €bn AUC
  • • On a like-for-like basis the stock increased by 0.7% driven by a positive commercial activity
  • • Weight of AUM and life insurance component up to 48.6% from 41.0% in 1Q 21

  • • Positive performance of net inflows which reached 786 €mln in Q1 21 (including UBI going concern), of which: 610 €mln AUM and 176 €mln life Insurance

  • Indirect deposits include life insurance premiums

  • Figures from data management system. AUM include ARCA captive inflows on BPER network

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

Indirect Deposits quarterly trend (€bn)Indirect Deposits1 (€mln;%)

9

Customerloans

Net customer loans at 75.4 €bn of which 21.8 €bn from UBI going concern

ln
€
/m		 De
2
0
c		 Ma
2
1
r		 C
hg (
)
%
Cu
Ac
t
t
rre
n
co
un		 3,
6
6
9		 4,
8
9
7		 3
3.
5
%
+
Mo
loa
tg
r
ag
e
ns		 3
5,
3
5
5		 5
2,
6
4
7		 4
8.
9
%
+
O
he
t
r		 1
3,
9
8
2		 1
7,
8
2
3		 2
7.
5
%
+
Ne
loa
t c
to
us
me
r
ns		 3,
0
0
6
5		 3
6
7
5,
7		 2.
2
4
%
+
/w
Pe
for
ing
o
r
m		 5
0,
8
7
6		 7
2,
9
5
6		 4
3.
4
%
+
/w
No
Pe
for
ing
o
n-
r
m		 2,
1
3
0		 2,
4
1
2		 1
3.
2
%
+

Net customer loans breakdown (€mln;%) Net customer loans, quarterly trend (€bn)

  • • UBI going concern contribution equal to 21.8 €bn (post PPA), of which: 21.2 €bn performing loans and 0.6 €bn non-performing loans
  • •Client segment breakdown unchanged vs. end 2020: 43% for Households and 57% for Corporates
  • • New originations in the quarter equal to 1.9 €bn* underpinned by the health emergency measures granted to support clients and the economy of the local territories

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.

*Managerial internal data** Pro-forma including the effects of the "Spring" securitisation of bad loans

Moratoria on payments and State guarenteedloans

Strong commitment of BPER Group in supporting clients and local territories to face the economic impact of the pandemic crisis. Total moratoria granted equal to 16 €bn (of which 5 €bn UBI going concern) with 8.1 €bn still in place. State guaranteed loans equal to 6.1 €bn (of which 1.9 €bn Ubi going concern).

Asset Quality(1/3)

Further improvement in the asset quality. NPE ratio1 gross and net significantly reduced to 5.9% and 3.1% respectively, while keeping at the same time high coverage ratios

r 2
1
Ma		 ∆
De
c 2
0		 BP
ER
nd
alo
sta
ne		 UB
I g
oin
g
co
nc
ern		 To
tal		 nd
sta
alo
ne
Ba
d L
oa
ns
Gro
ss		 2,
076		 2,
033		 336 2,
368		 -2.
1%
Ne
t		 727 68
7		 31
1		 998 -5.
4%
Co
ver
age		 65
.0%		 66
.2%		 7.3
%		 57
.8%
UT
Ps
Gro
ss		 2,
125		 1,
943		 337 2,
280		 -8.
6%
Ne
t		 1,
294		 1,
066		 25
1		 1,
317		 -17
.6%
Co
ver
age		 39
.1%		 45
.1%		 25
.4%		 42
.2%
Pa
Du
st
e
Gro
ss		 141 116 13 130 -17
.6%
Ne
t		 110 85 10 96 -22
.1%
Co
ver
age		 22
.4%		 26
.7%		 20
.5%		 26
.1%
To
tal
NP
E
Gr
oss		 343
4,		 092
4,		 686 778
4,		 -5.
8%
Ne
t		 130
2,		 9
1,
83		 573 2,
412		 -13
.7%
Co
ve
rag
e		 51
.0%		 55
.1%		 16.
4%		 49
.5%
Pe
rfo
ing
lo
rm
an
s
Co
ve
rag
e		 0.3
%		 0.5
%		 0.6
%		 0.5
%
NP
E r
ati
o g
ros
s		 7.8
%		 7.3
%		 3.1
%		 6.1
%		 -0.
5%
ati
NP
E r
et
o n		 4.0
%		 3.4
%		 2.6
%		 3.2
%		 -0.
6%

Breakdown of NPE stock and coverage (€mln; %)

  • • NPE ratio1 gross and net significantly reduced to 5.9% and 3.1% thanks to effectiveness of the derisking strategy and UBI going concern contribution
  • • Finalised disposals of UTP loans secured for a GBV of 0.4 €bn (of which 0.2 €bn in Q1 21 and 0.2 €bn in Q2 21)
  • • NPE coverage ratio at 49.5% (including PPA impact on UBI going concern NPE equal to -337.5 €mln), in particular: Bad Loans at 57.8% and UTP at 42.2%

  • •Performing loan coverage up to 0.5% vs. 0.3% end 2020

  • Proforma including UTP disposals finalised in April 2021 (0.2 €bn)

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.

* Pro-forma including the effects of the "Spring" securitisation of bad loans

Balance sheet structure

Asset Quality(2/3)

Stage 2 net loans stock equal to 9.4 €bn (12.9% of performing loans) with a coverage at 2.4%

Stock stage 2 net loans, quarterly trend (€bn) Coverage stage 2 net loans, quarterly trend (%)

AsseBalance sheet structure t quality (3/3)

Default rate at 0.7% from 1.0% in Dec.'20. Recovery rate continues to show positive trend

  1. Source: management data.

Note: Default rate = 1Q21 NPE inflows / performing loans stock at 31 Dec'20; Danger rate = 1Q21 inflows to bad loans from other NPE stock for the period / (UtP + PD loans) stock at 31 Dec'20; Cure rate = 1Q21 (UtP + PD loans) outflows back to performing loans / (UtP + PD loans) stock at 31 Dec'20. All ratios are calculated on gross exposures.* Annualized

Financial assetsportfolio

Financial assets portfolio at 26.4 €bn up by 1.7 €bn YTD

Financial Assets breakdown (€mln; %) Italian Government bonds1(€bn)

Balance sheet structure

  • •Financial assets portfolio increased by 1.7 €bn YTD
  • • Italian government bonds at 8.0 €bn (vs. 7.8 €bnDec.'20)
  • • Italian Bond portfolio weighs:
  • 41.1% of Total Bond portfolio
  • 8.0% of Total Assets

  • • Total bonds and Italian government bonds portfolios duration2respectively 2.6 ys and 3.3 ys

    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.

* Mainly derivatives.

Agenda

BPER GROUP CONSOLIDATED RESULTS

  • Executive summary
  • Balance sheet structure

Profit and loss

  • Liquidity and Capital adequacy
  • Final remarks
  • ANNEXES

Profit & Loss

Q121 results equal to 400.3 €mln impacted by several one-offs Profit and loss

2
0
2
0		 2
0
2
1
(
ln
)
€
/
m		 Q
1		 Q
1
Ne
in
inc
t
t
t
e
re
s
o
m
e		 3
0
2.
3		 3
4
3.
5
Ne
is
io
inc
t
c
o
m
m
s
n
o
m
e		 2
7
3.
3		 3
2
8.
1
C
In
o
re
c
o
me		 5
7
5.
6		 6
7
1.
6
D
iv
i
d
d
e
n
s		 0.
8		 1.
7
Ne
inc
fro
f
ina
ia
l a
iv
i
ie
t
t
t
o
m
e
m
nc
c
s		 5.
6		 7
6.
2
O
he
ing
/
t
t
r o
p
e
ra
e
xp
e
ns
e
s
re
ve
nu
e
s		 1
4.
6		 8.
1
O
in
In
t
p
e
ra
g
c
o
me		 5
9
6.
6		 7
5
7.
7
S
f
f c
t
t
a
o
s
s		 -2
5
5.
6		 -3
0
2.
1
1
O
he
d
in
is
ive
t
t
t
r a
m
ra
e
xp
e
ns
e
s		 -1
1
4.
5		 2
-1
8
9.
9
De
ia
io
&
Am
iza
io
t
t
t
p
re
c
ns
o
r
ns		 -3
9.
9		 3
-5
4.
5
O
in
t
t
p
e
ra
g
c
o
s
s		 0.
0
-4
1		 6.
-5
4
5
O
Ne
in
In
t
t
p
e
ra
g
c
o
me		 1
8
6.
6		 2
1
1.
2
Ne
im
irm
lo
fo
d
i
is
k
t
t
t
p
a
e
n
s
s
e
s
r c
re
r		 -1
3
9.
6		 4
-4
1
8.
8
O
in
In
f
im
irm
lo
fo
d
i
is
k
t
t
t
t
p
e
ra
g
c
o
me
n
e
o
p
a
e
n
s
s
e
s
r c
re
r		 0
4
7.		 -2
0
6
7.
Ne
is
io
fo
is
ks
d
ha
t
p
ro
ns
r r
a
n
c
rg
e
s
v		 2.
3		 5
-4
0.
9
C
S
G
S,
S
i
bu
io
Fu
d
(
R
F,
D
F
I
T
D-
V
)
t
t
t
o
n
r
n
o
n
s		 -3
2.
0		 -3
1.
1
G
in
(
Lo
)
Inv
t
t
a
s
s
e
s
o
n
e
s
m
e
n
s		 0.
1		 6
-2
5
0.
7
G
in
b
in
ha
a
o
n a
a
rg
a
p
u
rc
s
e		 0 7
1,
0
9
7
7.
Pr
f
i
(
lo
)
b
fo
t
t
o
s
s
e
re
a
xe
s		 1
7.
3		 5
4
7.
6
Ta
xe
s		 -6
6		 -1
4
0.
8
Pr
f
i
(
Lo
)
fo
he
io
d
t
t
o
s
s
r
p
e
r		 1
0.
7		 4
0
6.
8
M
ino
i
In
ty
t
t
r
e
re
s
s		 -4
3		 -6
5
Pr
f
i
(
lo
)
fo
he
io
d
in
in
he
Pa
C
t
t
t
t
t
t
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s
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r
p
e
r
a
g
o
re
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o
m
p
a
ny		 6.
4		 0
0.
3
4

Comments:

  • -17.5 €mln related to UBI going concern integration process 1
  • -65.9 €mln related to UBI going concern integration process 2
  • -8.9 €mln mainly related to RE amortization costs due to the change in the accounting evaluations3
  • -260.0 €mln additional LLPs aimed at accelerating the derisking process4
  • 5 -30.5 €mlnmainly related to the profit sharing CARIFE
  • -252.9 €mln of which: -230.4 €mln goodwill impairment and -22.5 €mln due to change in the RE assets accounting valuation6
  • +1,077.9 €mln of which: +781.5 €mln badwill generated from the UBI going concern acquisition and+296.4 €mln related to the recovery of badwill taxation17

Profit before tax excluding one-off items equal to 105.5 €mln

17

    1. As per contractual provisions with Intesa Sanpaolo. The item has a neutral impact on the net result as it has been offset by -€296mln booked in the item Taxes Note:
  • For a more consistent representation of the Group's Accounting Policies, 1Q20 figures have been restated to take into account the reclassification of 5,7 €mln from the item "Net Interest Income" to the item "Net commission income"
  • Figures in this page may not add exactly due to rounding differences.
  • Comparable figures at 31 March 2020 shown in the present section/chapter schedule have been restated to show the effects of the retrospective application of change in accounting method used to measure property, plant and equipment held for investment.

Profit and loss

Net InterestIncome

1Q21 NII at 343.5 €mln of which 291.7 €mln from the commercial activity with customers

Net Interest Income1Breakdown (€mln)

€
/m
ln		 Ma
2
0
r		 Ma
2
1
r		 C
hg
%
Co
ia
l
N
I
I
m
me
rc		 2
5
7.
0		 2
9
1.
7		 1
3.
5
%
Se
fo
i
ies
l
io
t
t
cu
r
p
or		 3
6.
7		 2
9.
0		 -2
1.
1
%
2
T
L
T
R
O-
I
I
/
T
L
T
R
O-
I
I
I		 9.
7		 3
1.
8		 2
2
7.
1
%
O
he
Ins
i
ion
l
fu
d
ing
t
t
tu
t
r
a
n		 1
0.
0
-		 1
2.
2
-		 2
2.
0
%
Or
d
ina
N
I
I
ry		 2
9
3.
4		 3
4
0.
2		 1
6.
0
%
I
F
R
S
9 a
d
I
F
R
S
1
6
n		 8.
9		 3.
3		 -6
2.
8
%
To
l
N
I
I
ta		 3
0
2.
3		 3
4
3.
5		 1
3.
6
%
  • • Spread reduction in 1Q 21 due to the lower contributionfrom securities portfolio and excess liquidity held at ECB
  • • IFRS9 and IFRS 16 contribution equal to 3.3 €mln(-63% y/y) due to the Bad loan disposals carried out last year
  • • Net TLTRO contribution up to 31.8 €mln from 9.7 €mlnlast year following the increase of the take-up to 18.4€bn

Net Interest Income quarterly trend1 (€mln)

    1. For a more consistent representation of the Group's Accounting Policies, 2020 quarterly figures have been restated to take into account reclassifications made between NII and Net commission income. In particular the NII has been adjusted as follows: -5.7 €mln in 1Q20, -5.9 €mln in 2Q20, -5.2 €mln in Q320, +16.8mln in Q4 20
    1. Net of interest expenses related to excess liquidity held at the ECB's deposit facility

  • Managerial internal data. Spread calculated taken into account the ECB funding and deposits Note: figures in this page may not add exactly due to rounding differences.

Net commissionincome

1Q21 Net commission income at 328.1 €mln, of which 138.0 €mln from indirect deposits and life insurance

Net Commissions Income evolution1(€mln)

  • • Strong incidence of Indirect deposits and life insurance fees in 1Q 21 thanks to UBI going concern contribution
  • • Up-front fees in 1Q 21 equal to 8.9 €mln up vs. 7.0 €mln booked in 1Q20
  • • Banking services, although still impacted by pandemic crisis, confirmed the recovery trend started in 3Q20

  • • Incidence of commissions on core revenues2 grew to 49% in 1Q21 from 41% in 1Q19

  • For a more consistent representation of the Group's Accounting Policies, 2020 quarterly figures have been restated to take into account reclassifications made between NII and Net commission income. In particular the Net commission income has been adjusted as follows: +5.7 €mln in 1Q20, +5.9 €mln in 2Q20, +5.2 €mln in Q320, -16.8mln in Q4 20

  • Includes Life-Insurance premium

Profit and loss

Trading incomeand Dividends

Trading income came in very strong reaching 76 €mln in 1Q21 benefitting from positive market performance in the quarter

Trading income evolution (€mln)

Operating costs

Profit and loss

1Q21 operating costs at 546.5 €mln impacted by 92.3 €mln extraordinary expenses mainly related to UBI going concern integration process

M
2
0
a
r		 M
2
1
a
r		 C
h
g
%
S
f
f
t
a
e
x
p
e
n
s
e
s		 2
5
5.
6		 3
0
2.
1		 1
8.
2
%
+
/w
Ex
d
ina
tra
o
or
ry		 0 1
7.
5
Or
/w
d
ina
o
ry		 2
5
5.
6		 2
8
4.
6		 1
1.
4
%
+
O
h
d
i
i
i
t
t
t
e
r
a
m
n
s
r
a
e
e
p
e
n
s
e
s
v
x		 1
1
4.
5		 8
9.
9
1		 6
8
5.
%
+
/w
Ex
d
ina
tra
o
or
ry		 0 6
9
5.
/w
Or
d
ina
o
ry		 1
1
4.
5		 1
2
4.
0		 8.
2
%
+
D
&
A		 3
9.
9		 5
4.
5		 3
6.
5
%
+
/w
Ex
d
ina
tra
o
or
ry		 0 8.
9
/w
Or
d
ina
o
ry		 3
9.
9		 4
5.
6		 1
4.
2
%
+
T
l
O
i
C
t
t
t
o
a
p
e
r
a
n
g
o
s
s		 0.
0
4
1		 6.
5
4
5		 3
3.
3
%
+
/w
d
in
t
o
e
x
ra
o
r
a
ry		 0 9
2.
3
/w
d
in
o
o
r
a
ry		 0.
0
4
1		 2
4
5
4.		 1
0.
8
%
+

Operating costs breakdown (€mln)Operating costs evolution1 (€mln)

  • Extraordinary costs equal to 92.3 €mln of which 83.4 €mln due to the UBI going concern integration process (17.5 €mln Staff expenses and 65.9 €mln Other administrative expenses). Ordinary administrative expenses also includes 1.7 €mln related to the health emergency
  • •Cost/Income UBI going concern in the range 50-55%*
  • •Estimated saving on staff costs related to the redundancy plan equal to 14.7* €mln for 1Q21

•

  1. The 2020 quarterly data of Operating Costs have been restated following the adoption in Q1 21 of a different accounting methodology for the evaluation of real estate assets, which impacted on the item "D&A".

*Managerial internal data.Note: figures in this page may not add exactly due to rounding differences.

Profit and loss

Provisionsand other items

Cost of credit impacted by additional LLPs

M
2
0
a
r		 M
2
1
a
r		 C
hg
%
To
l
Pr
is
ion
ta
ov
s		 1
3
9.
6		 4
1
8.
8		 1
9
9.
9
%
+
/w
L
L
Ps
**
o		 1
4
0.
0		 4
1
7.
7		 1
9
8.
4
%
+
Ne
Pr
is
ion
fo
R
is
ks
d
C
ha
t
ov
s
r
a
n
rg
es		 -2
3		 4
0.
9		 n.
s.
Co
i
bu
ion
S
R
F,
D
G
S
F
I
T
D-
S
V
tr
t
to
n
s
e		 3
2.
0		 3
1.
1		 -2
9
%
Ga
in
(
Lo
)
i
inv
ty
tm
ts
ss
es
on
e
q
u
es
en
,
d
isp
l
inv
d
im
irm
tm
ts
t
os
a
es
en
a
n
p
a
en
los
dw
i
l
l
se
s
on
g
oo		 -0
1		 2
0.
5
7		 n.
s.
Ba
dw
i
l
l		 0 -1
0
9
7
7.
,		 n.
s.

Provisions and other items (€mln) LLPs (€mln) and Cost of credit* (%) evolution

  • • Cost of credit annualized equal to 222 bps including additional 260 €mln LLPs. Annualized ordinary cost of credit equal to 84 bps
  • •Ordinary contribution to SRF booked in Q1 21 equal to 31.1 €mln on the basis of volumes as at 31/12/2019
  • •Badwill item includes 296 €mln related to the recovery of taxation from Intesa Sanpaolo, as per contractual provisions

* Calculated including only customer loans (excl. customer debt securities).

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

*** Pro-forma including the effects of the "Spring" securitisation of bad loans

Agenda

BPER GROUP CONSOLIDATED RESULTS

Executive summary

Balance sheet structure

Profit and loss

Liquidity and Capital adequacy

Final remarks

ANNEXES

Liquidity

High level of liquidity with an LCR >200% and a liquidity buffer close to 28.7 €bn

Total eligible Assets evolution* (€mln)

Eligible Assets Pool Composition (%)

Total eligible assets

Total unencumbered eligible assets Deposits with ECB

  • • ECB exposure equal to 18.4 €bn fully made up of TLTRO3 funds, up from 16.7 €bn in Dec. '20 following an additional take up of 1.7 €bn in the auction of March 2021
  • •LCR >200% well above the regulatory threshold and NSFR ratio stands well above 100%

Note: figures in this page may not add exactly due to rounding differences.* Net of ECB haircut.

Capital

Liquidity and Capital adequacy

CET1 Fully Phased proforma at 13.42% showing a wide buffer vs. SREP requirement (8.125%)

CET1 Fully Phased proforma (%)

Note: The CET1 ratios Fully Phased and Phased in proforma have been estimated excluding the effects of the transitional provisions in force and including the result of the period, thus simulating, in advance, the effects of the authorization issued by the ECB for the inclusion of these profits in Own Funds pursuant to art. 26, para. 2 of the CRR.

Agenda

BPER GROUP CONSOLIDATED RESULTS

Executive summary

Balance sheet structure

Profit and loss

Liquidity and Capital adequacy

Final remarks

ANNEXES

Finalremarks

STRONG RESULTS DESPITE STILL DIFFICULT EXTERNAL SCENARIO

Despite the difficult external scenario strongly impacted by the pandemic, Q1 21 results show a remarkable increase in the operating profitability underpinned by the integration of the UBI going concern, that contributed to further strengthen the client base and the competitive position of BPER in the strong economic area of the Country.

MORE FOCUSED ON OUR GROWTH FROM A STRONGER COMPETITIVE POSITION

The completion of the integration process will allow BPER, hopefully within a context of gradual removal of restrictions, to focus on the commercial activity aimed at further increasing revenues and, at the same time, to reduce the cost base, while maintaininga strong commitment on the asset quality improvement.

SUPPORTING THE ITALIAN ECONOMY IN A NEW PHASE OF GROWTH

Getting bigger and stronger, ready to walk along our clients in a new pathway of growthof the Country.

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 sector(€mln; %)

Bu
in
t
s
e
s
s
s
e
c
o
r		 M
2
1
a
r		 To
l
%
t
o
n
a
Cu
t
s
o
m
e
r
Lo
a
ns		 Δ
%
De
2
0
vs
c
M
fac
ing
tu
an
u
r		 1
1,
2
5
1		 1
4.
9
%		 4
6.
7
%
+
W
ho
les
le
d
i
l s
ice
ta
a
an
re
er
s,
v
ies
d
irs
re
co
ve
r
a
n
re
p
a		 6,
2
9
9		 8.
4
%		 4
2.
0
%
+
Co
ion
tru
t
ns
c		 3,
2
3
8		 4.
3
%		 5
0.
2
%
+
Re
l
Es
ta
te
a		 4,
4
4
9		 9
5.
%		 4
2.
7
%
+
H
O
R
E
C
A
*		 1,
9
2
5		 2.
6
%		 2
9.
1
%
+
Ag
icu
l
fo
d
f
is
h
ing
tu
try
r
re
re
s
a
n
,		 9
9
8		 1.
3
%		 2
6.
1
%
+
O
he
t
r		 8,
4
4
9		 1
1.
2
%		 4
2.
9
%
+
To
l
lo
f
in
ia
l
t
t
a
a
ns
o
no
n-
a
nc
bu
in
s
e
s
s
e
s		 3
6,
6
0
8		 4
8.
6
%		 4
3.
2
%
+
Ho
ho
l
ds
us
e		 3
2,
6
0
2		 4
3.
3
%		 4
8.
9
%
+
To
l
loa
f
ina
ia
l
bu
ine
ta
to
ns
nc
s
ss
es		 6,
1
5
7		 8.
2
%		 1
1.
3
%
+
To
l
Cu
Lo
t
t
a
s
o
m
e
r
a
ns		 3
6
7
5,
7		 0
0.
0
1
%		 2.
2
4
%
+
De
b
Se
i
ies
t
t
cu
r		 1
3,
6
5
8		 1
8.
1
%		 7.
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. Figures from data management system.

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

Annexes

Annexes

Assetquality

Asset quality breakdown (excl. customer debt securities)

Gr
s (
€/m
ln)
os
s e
xp
os
ure		 Ma
r 2		 0 Ju n 2
0		 Se
p		 20 De c 2
0		 Ma
r 2		 1 Ch
g		 YT
D		 Ch Y/Y
g
% % % % % Ab
s.		 Ch
(
%)
g		 Ab
s.		 Ch
(
%)
g
No
n P
erf
ing
Ex
s (
NP
Es)
orm
pos
ure		 6,
056		 11.
1%		 008
5,		 9.1
%		 896
4,		 8.8
%		 343
4,		 7.8
%		 4,
778		 6.1
%		 435 10.
0%
+		 1,
278
-		 21
.1%
-
Bad
loa
ns		 3,
434		 6.3
%		 2,
374		 4.3
%		 358
2,		 4.3
%		 076
2,		 3.7
%		 2,
368		 3.0
%		 292 14.
1%
+		 1,
066
-		 31
.0%
-
Un
like
ly
loa
to p
ay
ns		 2,
463		 4.5
%		 2,
405		 4.4
%		 356
2,		 4.2
%		 125
2,		 3.8
%		 2,
280		 2.9
%		 155 7.3
%
+		 183
-		 7.4
%
-
Pas
t du
e lo
ans		 159 0.3
%		 228 0.4
%		 183 0.3
%		 141 0.3
%		 130 0.2
%		 11
-		 8.3
%
-		 29
-		 18.
7%
-
Gro
for
min
loa
ss
per
g
ns		 48
263
,		 88
.9%		 50
082
,		 90
.9%		 1
50
57
,		 91
.2%		 048
51
,		 92
.2%		 73
339
,		 93
.9%		 22
29
1
,		 43
.7%
+		 25
076
,		 52
.0%
+
To
tal
gro
ss
ex
po
su
res		 54
319
,		 100
.0%		 55
089
,		 100
.0%		 467
55
,		 100
.0%		 1
55
39
,		 100
.0%		 78
117
,		 100
.0%		 22,
726		 41
.0%
+		 23,
798		 43
.8%
+
Ad
jus
o lo
s (
€/m
ln)
tm
ts t
en
an		 Ma
r 2		 0 Ju n 2
0		 Se
p		 20 De c 2
0		 Ma
r 2		 1 Ch
g		 YT
D		 Ch Y/Y
g
e (
%)
co
ve
rag		 e (
%)
co
ve
rag		 e (
%)
co
ve
rag		 e (
%)
co
ve
rag		 co e (
%)
ve
rag		 Ab
s.		 Ch
(
%)
g		 Ab
s.		 Ch
(
%)
g
Ad
jus
NP
Es
tme
nts
to		 3,
142		 51
.9%		 2,
374		 47
.4%		 413
2,		 49
.3%		 213
2,		 51
.0%		 2,
366		 49
.5%		 153 6.9
%
+		 776
-		 24
.7%
-
Bad
loa
ns		 2,
277		 66
.3%		 1,
49
1		 62
.8%		 508
1,		 63
.9%		 349
1,		 65
.0%		 1,
370		 57
.8%		 21 1.5
%
+		 907
-		 39
.8%
-
Un
like
ly
loa
to p
ay
ns		 836 34
.0%		 84
1		 35
.0%		 868 36
.8%		 1
83		 39
.1%		 963 42
.2%		 132 15.
8%
+		 127 15.
1%
+
Pas
t du
e lo
ans		 29 18.
4%		 42 18.
2%		 37 20
.2%		 33 22
.4%		 34 26
.1%		 1 6.6
%
+		 5 15.
4%
+
Ad
jus
for
min
loa
tme
nts
to
per
g
ns		 143 0.3
%		 161 0.3
%		 165 0.3
%		 172 0.3
%		 383 0.5
%		 21 1
+12
2.4
%		 240 167
.9%
+
To
tal
ad
jus
tm
ts
en		 3,
285		 6.0
%		 2,
535		 4.6
%		 578
2,		 4.6
%		 385
2,		 4.3
%		 2,
750		 3.5
%		 365 15.
3%
+		 535
-		 16.
3%
-
Ne
€/m
t ex		 Ma
r 2		 0 Ju n 2
0		 Se 20 De c 2
0		 Ma
r 2		 1 Ch YT
D		 Ch Y/Y
(
ln)
po
su
res		 p g g
2,
914		 %
5.7
%		 2, %
5.0
%		 483
2,		 %
4.7
%		 130
2,		 %
4.0
%		 2,
412		 %
3.2
%		 Ab
s.
282		 Ch
(
%)
g
13.
2%		 Ab
s.
502		 Ch
(
%)
g
17.
2%
No
n P
erf
ing
Ex
s (
NP
Es)
orm
pos
ure		 157 2.3
%		 634
883		 1.7
%		 850 1.6
%		 727 1.4
%		 998 1.3
%		 27
1		 +
37
.4%		 -
159		 -
13.
7%
Bad
loa
ns		 1, + - -
Un
like
ly
loa
to p
ay
ns		 1,
627		 3.2
%		 1,
564		 3.0
%		 487
1,		 2.8
%		 294
1,		 2.4
%		 1,
317		 1.7
%		 23 1.8
%
+		 310
-		 19.
0%
-
Pas
t du
e lo
ans		 130 0.3
%		 187 0.4
%		 146 0.3
%		 109 0.2
%		 96 0.1
%		 13
-		 12.
6%
-		 34
-		 26
.3%
-
Ne
rfo
rmi
loa
t pe
ng
ns		 48
120
,		 94
.3%		 49
92
1
,		 95
.0%		 406
50
,		 95
.3%		 876
50
,		 96
.0%		 72
956
,		 96
.8%		 22
080
,		 43
.4%
+		 24
836
,		 51
.6%
+
To
tal
net
ex
po
su
res		 51
034
,		 100
.0%		 52
554
,		 100
.0%		 889
52
,		 100
.0%		 006
53
,		 100
.0%		 75
367
,		 100
.0%		 22,
36
1		 42
.2%
+		 24,
333		 47
.7%
+

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

Note: Pro-forma data at 30/06/2020 including the effects of the "Spring" securitisation of bad loans.

Financial Assetsdetails

Annexes

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

31

Annexes

Bonds maturities and issues details

Outstanding bonds1 (€bn)

De
2
0
c		 M
2
1
a
r
W
ho
les
le
bo
ds
a
n		 3.
5		 4.
0
/w
d
bo
ds
o
co
ver
e
n		 1.
9		 1.
9
/w
bo
d
ina
d
bo
ds
te
o
su
r
n		 0.
9		 0.
9
Re
i
l
bo
ds
ta
n		 1.
0		 0.
9
/w
bo
d
ina
d
bo
ds
te
o
su
r
n		 0.
1		 0.
1
To
l
b
d
t
a
o
n
s		 4.
5		 4.
9

Bonds issued (€bn)

  1. 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.

Contacts for Investors and Financial Analysts

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

+39 059 2021369

[email protected]

Nicola SponghiInvestor Relations

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