Bper Banca — Investor Presentation 2021

Feb 3, 2021

FY20 consolidated results

Alessandro Vandelli, CEO 3 February 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

Important methodological note

July 2019 saw completion of 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 were included in the scope of consolidation of the BPER Group from the same date. On 25 November 2019 Unipol Banca was absorbed by incorporation into BPER Banca.

It should be noted that as a result of these transactions, the accounting figures at 31 December 2020 are not comparable with those of the previous year. Accounting data of 4Q19 and 4Q20 are comparable 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

Executive summary (1/2)

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Proposal for a cash dividend	•
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Executive summary (2/2)

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Agenda

BPER GROUP CONSOLIDATED RESULTS

Executive summary

Balance sheet structure

Profit and loss

Liquidity and Capital adequacy

Final remarks

ANNEXES

Direct and Indirect funding

Total Funding significant increase in Dec.'20 to € 185 €/bn (+5.5% vs Dec.'19 and +4.5% vs Sept.'20). AuM further increase in 4Q20 higher than pre-crisis levels and Bancassurance continues to show positive performances

Total Funding (€/mn; %)

€/mn	Dec 19	Sept 20	Dec 20	Chg vs. Dec. 19 (%)	Chg vs. Sept. 20 (%)
Direct Funding	58.056	59,780	63,141	+8.8%	+5.6%
Indirect Deposits	110.623	110,229	114.776	+3.8%	+4.1%
о.w. Assets under custody o.w. Assets under management	68.909 41,714	69.148 41,081	72.057 42,719	+4.6% +2.4%	+4.2% +4.0%
Bancassurance	6.821	7.243	7.301	+7.0%	+0.8%
Total Funding	175.500	177,253	185,218	+5.5%	+4.5%

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

Net inflows	232	317	367		387	298 1.115

1. Life-insurance products.

2. Figures from data management system and excluding ARCA Holding.

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

Customer loans

Net performing loans up by 3.8% since Dec.'19 (+ 1.9 €/bn)

Customer loans breakdown (€/mn; %)

€/mn	Dec 19	Sept 20	Dec 20	Chg vs.	Chg vs. Dec. 19 (%) Sept. 20 (%),
Current accounts	4.842	4.081	3.669	-24.2%	-10.1%
Mortgage loans	32,540	34.187	35.355	+8.7%	+3.4%
Other transactions	14.624	14.621	13.982	-4.4%	-4.4%
Net loans	52.006	52.889	53,006	+1.9%	+0.2%
o.w. performing	49.008	50.406	50.876	+3.8%	+0.9%
o.w. NPEs	2.998	2.483	2.130	-29.0%	-14.2%
Gross loans	55.292	55.467	55.391	+0.2%	-0.1%
o.w. performing	49.169	50.571	51.048	+3.8%	+0.9%
o.w. NPEs	6,123	4.896	4.343	-29.1%	-11.3%

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.

E-MARKET SDIR CERTIFIED

Customer loans breakdown

Non Performing Exposures (1/2)

Asset quality strong improvement. Gross NPE stock down by 29.1% since Dec.'19. Gross and net NPE ratios declined respectively to 7.8% and 4.0%. NPE Cash coverages up in Dec.'20 vs Sept.'20

19.9%

Gross NPE (€/mn; %)

€/mn		Dec 19 Sept 20 Dec 20		Chg vs. Dec.'19 (%)	Chg vs. Sept. 20 (%)
Bad loans	3.449	2,358	2.076	-39.8%	-11.9%
Unlikely to pay	2,479	2,356	2.125	-14.3%	-9.8%
Past due	195	183	141	-27.5%	-22.7%
Total NPE	6.123	4,896	4,343	-29.1%	-11.3%

Cash coverage ratios (%)

	Dec 19	Sept 20	Dec 20
Bad loans ("Sofferenze")	66.0%	63.9%	65.0%
including write-off	69.9%	68.7%	69.5%
Unlikely to pay	33.0%	36.8%	39.1%
Past due	14.6%	20.2%	22.4%
NPE	51.0%	49.3%	51.0%
including write-off	54.3%	52.7%	54.2%
Performina exposures	0.3%	0.3%	0.3%
Total loans	5.9%	4.6%	4.3%

Note: figures in this page may not add exactly due to rounding differences. 1. The gross book values are expressed at the transfer dates.

Gross & Net NPE Stocks and Ratios (€/bn; %)

11.1%

8.8%

13.8%

7.8%

Gross

NPE Ratio

Non Performing Exposures (2/2)

Default rate at 1.0% from 1.7% in Jun.'20. Recovery rate continues to show positive trend (6.9% despite of the strong decrease of bad loans stock)

Default rate (%)

1. Source: management data.

Gruppo

Note: Defaultrate = 12N20 NPE inflovs / performing bangerate =12Mzo inflows to bad bans from other NPE: stock for the period ( (UP + PD bans stock at 3 Dec' g; Cure rate = 12Mzo (UP + PD loans outforming loans / (UP + PD loans) stock at 3) Dec 'g. All ratios are calculated on gross exposures.

Cure rate (%)

Financial assets portfolio

€/mn	FVTPL	FVOCI	AC	Total	% on total
Bonds	375	6,022	17,220	23,616	95.8%
1 o.w. Italian gov	189	432	7,158	7,779	31.5%
Equity	146	248		394	1.6%
Funds and Sicav	511			511	2.1%
Other*	140			140	0.6%
Total as of 31.12.2020	1,172	6,270	17,220	24,662	100.0%
Total as of 30.09.2020	1,086	6,323	15,803	23,212
Total as of 31.12.2019	1,094	6,556	11,306	18,957
Chg vs Dec.'19 (%)	+7.1%	-4.4%	+52.3%	+30.1%

Balance sheet structure

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Agenda

BPER GROUP CONSOLIDATED RESULTS

Executive summary

Balance sheet structure

Profit and loss

Liquidity and Capital adequacy

Final remarks

ANNEXES

FY20 reclassified Profit & Loss

Profit and loss

4Q20 reclassified Profit & Loss

Net Interest Income

RPER:

Gruppo

4Q20 NII at 295.1 €/mn mainly due to an accounting reclassification' of 23.1 €/mn to commissions, net of which the decrease is equal to 2.2% q/q

r. For a nore consistent representation of the Group's Accounting Policis in a Crewins periods was discosed under Interest income, was reclassified to the item Commissions. Data pro-forma are net of this accounting effect.

1. Excluding the accounting effects maily related of FRS and FRS 6 accounting principles. For cetassified hoom Statement in the Annexes. 16 Note: from Consolidated Profit and Loss (Bark of format Circular 252005)- ten o «Itterest and TLRC and TLRC periefi included anong "Other") and ltem 20 «Interest and similar expense».

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

E-MARKET SDIR CERTIFIEI

Profit and loss

Net Commissions

Chg q/q

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Indirect deposits and bancassurance Loans and guarantees Other commissions

Trading income and Dividends*

4Q2o trading income still positive performance of 42.6 €/mn mainly supported by fixed-income bond trading and favorable equity market performance in the quarter

Trading income evolution (€/mn)

*2020 Trading includes losses on ban disposals for 21,4 € /m (accunted during the four quarters) and revaluations on equity investments for 20,0 € / m (accounted in the (20). Note: figures in this page may not add exactly due to rounding differences.

Operating costs

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Provisions and other items

	4Q19	1Q20	2Q20	3Q20	4Q20	Chg vs 3Q20	Chg vs 4Q19
Total Provisions	140.2	139.6	159.0	107.7	138.1	28.2%	-1.5%
of which LLPs*	139.4	140.0	153.8	106.5	134.2	26.0%	-3.7%
Cost of credit**	0.27%	0.27%	0.29%	0.20%	0.25%	+5 bps	-2 bps
Net Provisions for Risks and Charges	3.0	-2.3	17.2	15.1	2.5	-83.6%	-17.4%
Contribution to funds	2.3	32.0	2.2	30.5	23.5	-22.8%	n.m.
Net other income	12.6	-0.3	5.5	-1.1	-1.9	70.3%	n.m.

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Agenda

BPER GROUP CONSOLIDATED RESULTS

Executive summary

Balance sheet structure

Profit and loss

Liquidity and Capital adequacy

Final remarks

ANNEXES

Liquidity

Total eligible assets

• Total unencumbered eligible assets Deposits with ECB
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Capital

Liquidity and Capital adequacy

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Agenda

BPER GROUP CONSOLIDATED RESULTS

Executive summary

Balance sheet structure

Profit and loss

Liquidity and Capital adequacy

Final remarks

ANNEXES

Final remarks

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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 (€/mn; %)

Business sector	Dec 20	% on Total Customer Loans	A % vs Dec 19
Manufacturing	7,667	14.5%	+3.5%
Wholesale and retail services, recoveries and repairs	4,436	8.4%	-4.7%
Construction	2,156	4.1%	-10.8%
Real Estate	3,119	5.9%	-0.7%
HORECA*	1,491	2.8%	+12.9%
Agriculture, forestry and fishing	792	1.5%	-6.7%
Other	5,912	11.2%	+17.6%
Total loans to non-financial businesses	25,573	48.2%	+3.0%
Households	21,899	41.3%	+3.3%
Total loans to financial businesses	5,534	10.4%	-7.7%
Total Customer Loans	53,006	100.0%	+1.9%
Debt Securities	12,724	24.0%	+48.6%

Customer loans breakdown by geographical distribution¹(%)

BPER: Gruppo

* 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.

E-MARKET SDIR CERTIFIED

Annexes

Asset quality

Dec 19 Gross exposures (€/mn)		Mar 20		Jun 20		Sept 20		Dec 20		Chg Y/Y
		%		%		%		%		%	Abs.	Chg (%)
Non Performing Exposures (NPEs)	6,123	11.1%	6,056	11.1%	5,008	9.1%	4,896	8.8%	4,343	7.8%	-1,780	-29.1%
Bad loans	3,449	6.2%	3,434	6.3%	2,374	4.3%	2,358	4.3%	2,076	3.7%	-1,373	-39.8%
Unlikely to pay loans	2,479	4.5%	2,463	4.5%	2,405	4.4%	2,356	4.2%	2,125	3.8%	-354	-14.3%
Past due loans	195	0.4%	159	0.3%	228	0.4%	183	0.3%	141	0.3%	-54	-27.5%
Gross performing loans	49,169	88.9%	48,263	88.9%	50,082	90.9%	50,571	91.2%	51,048	92.2%	1,879	+3.8%
Total gross exposures	55,292	100.0%	54,319	100.0%	55,089	100.0%	55,467	100.0%	55,391	100.0%	9 9	+0.2%
Adjustments to loans (€/mn)	Dec 19		Mar 20		Jun 20		Sept 20		Dec 20		Chg Y/Y
		coverage (%)		coverage (%)		coverage (%)		coverage (%)	coverage (%)		Abs.	Chg (%)
Adjustments to NPEs	3,125	51.0%	3,142	51.9%	2,374	47.4%	2,413	49.3%	2,213	51.0%	-912	-29.2%
Bad loans	2,278	66.0%	2,277	66.3%	1,491	62.8%	1,508	63.9%	1,349	65.0%	-929	-40.7%
Unlikely to pay loans	818	33.0%	836	34.0%	841	35.0%	868	36.8%	831	39.1%	1 3	+1.6%
Past due loans	2 9	14.6%	2 9	18.4%	4 2	18.2%	3 7	20.2%	3 3	22.4%	4	+11.5%
Adjustments to performing loans	161	0.3%	143	0.3%	161	0.3%	165	0.3%	172	0.3%	1 1	+6.5%
Total adjustments	3,286	5.9%	3,285	6.0%	2,535	4.6%	2,578	4.6%	2,385	4.3%	-901	-27.4%
Net exposures (€/mn)	Dec 19		Mar 20		Jun 20		Sept 20		Dec 20			Chg Y/Y
		%		%		%		%		%	Abs.	Chg (%)
Non Performing Exposures (NPEs)	2,998	5.8%	2,914	5.7%	2,634	5.0%	2,483	4.7%	2,130	4.0%	-868	-29.0%
Bad loans	1,171	2.3%	1,157	2.3%	883	1.7%	850	1.6%	727	1.4%	-444	-38.0%
Unlikely to pay loans	1,661	3.2%	1,627	3.2%	1,564	3.0%	1,488	2.8%	1,294	2.4%	-367	-22.1%
Past due loans	166	0.2%	130	0.3%	187	0.4%	146	0.3%	109	0.2%	-57	-34.2%
Net performing loans	49,008	94.2%	48,120	94.3%	49,921	95.0%	50,406	95.3%	50,876	96.0%	1,868	+3.8%
Total net exposures	52,006	100.0%	51,034	100.0%	52,554	100.0%	52,889	100.0%	53,006	100.0%	1,000	+1.9%

Financial Assets details

4.8

1.1

Bonds maturities and issues details

Outstanding bonds¹ (€/bn)

	Dec 19	Sept 20	Dec 20
Wholesale bonds	3.2	3.1	3.5
o/w covered bonds	2.6	1.9	1.9
o/w subordinated bonds	0.5	0.5	0.9
Retail bonds	2.0	1.3	1.0
o/w subordinated bonds	0.4	0.4	0.1
Total bonds	5.2	4.4	4.5

Bonds issued (€/bn)

3Q21

2020 Bonds maturities (€/bn)

1Q21

RPER

Gruppo

1. including Unipol Banca bonds.

Retail

2Q21

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

4Q21

Contacts for Investors and Financial Analysts

Investor Relations Dpt.

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

Investor.relations@bper.it

Giulia Bruni Investor Relations

0

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

+39 059 2022528

Nicola Sponghi Investor Relations

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

+39 059 2022219

nicola.sponghi@bper.it