Bper Banca — Investor Presentation 2023

Aug 2, 2023

1H23 Consolidated Results

Piero Luigi Montani, CEO 2 nd August 2023

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

Change in the scope of consolidation

Change in the scope of consolidation

20 February 2023 was the date of closing of the transfer to Banco di Desio e della Brianza of two separate business units consisting of 8 bank branches owned by Banco di Sardegna and 40 branches owned by BPER Banca stemming from the merger by absorption of Banca Carige and Banca Monte di Lucca. The volumes pertaining to such scope had already been classified as Other Assets and Liabilities held for sale.

Methodological note: figures included in the tables shown in this document may not add exactly due to rounding differences.

BPER GROUP CONSOLIDATED RESULTS

Executive Summary

Balance Sheet

Profit and Loss

Liquidity and Capital Adequacy

Guidance

Final Remarks

STRONG SET OF RESULTS:

ROBUST PROFITABILITY, ASSET QUALITY METRICS FURTHER IMPROVING AND SOUND CAPITAL RATIOS

. The Cost to income ratio is caculated or the reclassified Income Statement (operating income); when calculated on the basis of the sthedules provided by the 8th update of Bank of Italy Circular no. 262, the Cost to ince 2023, 59,85% as at 31 March 2023 and 73,7% as at 31 December 2022.

RPER: Gruppo

1. Annualised

g. The pro-forma apital atios have been calculated included for the portion not allocated to dividenci, i. s. inulating in advance the effects of the ECBS authorisation to include these profits in Own Funds pursuant to art. 26, para. 2 of the CRR (See slide 19).

1. The rationas been calculated according to the provision (EU) 575/2013 (CR), as amended y Commission Delegated Regulation (EU) 62/2015

BPER GROUP CONSOLIDATED RESULTS

Executive Summary

Balance Sheet

Profit and Loss

Liquidity and Capital Adequacy

Guidance

Final Remarks

Total Funding: Direct Deposits and Indirect Deposits Balance Sheet

Net Customer Loans Balance Sheet

•

Asset Quality Balance Sheet

	Jun 22	Dec 22	Mar 23,	Jun 23	QIQ	YIY
Bad Loans
Gross	2,015	961	989	1,020	3.2%	-49.4%
Net	491	221	1941	190	-2.0%	-61.3%
Coverage	75.6%	77.0%	80.4%1:	81.4% I	1.0 p.p.	5.7 p.p.
UTPs
Gross	1,944	1,872	1,872	1,277	-31.8%	-34.3%
Net	1,038	તે જેવી સ	875,	674	-23.0%	-35.1%
Coverage	46.6%	49.0%	53.3%1	47.2% =	-6.0 p.p.	0.6 p.p.
Past Due
Gross	129	158	161	207	28.1%	60.4%
Net	ਰੇਤੇ	109	112	149	33.0%	59.7%
Coverage	27.7%	31.4%	30.6%	28.0% :	-2.6 p.p.	0.3 p.p.
Total NPE
Gross	4,088	2,991	3,022	2,504	-17.2%	-38.8%
Net	1,622	1,285	1,181	1,013	-14.2%	-37.6%
Coverage	60.3%	57.1%	60.9%		59.6% =1 -1.4 p.p.	-0.8 p.p.
Performing loans
Gross	90,058	90,590	88,884	88,801	-0.1%	-1.4%
Net	89,460	89,890	88,220	88,082	-0.2%	-1.5%
Coverage	0.66%	0.77%	0.75% :	0.81%	0.1 pp	0.1 p.p.
o/w Net Stage 2 Loans	9,649	10,380	9,795	9,853	0.6%	2.1%
Coverage	4.16%	4.44%	4-45%	4.87%	0.4 p.p.	0.7 p.p.

Financial Assets Portfolio

Financial Assets Portfolio of 30.5 €bn in line with the previous quarter

€/mln	FVTPL	FVOCI	AC	Total	% on total
Bonds	114	6,717	21,707	28,539	93.7%
o.w. Italian gov	3	2,049	8,162	10,215	33.5%
Equity	83	547		630	2.1%
Funds and Sicav	680			680	2.2%
Other*	613			613	2.0%
Total as at 30.06.2023	1,490	7,264	21,707	30,461	100.0%
Total as at 31.03.2023	1,477	7,646	21,613	30,737
Total as at 31.12.2022	1,452	7,963	21,251	30,666
Chg vs Dec. 22 (%)	+2.6%	-8.8%	+2.1%	-0.7%

Financial Assets breakdown¹ (€mln)

Italian Government bonds (€bn)

Share of Italian bonds (%)

RPER

Gruppo

Bond portfolio duration² (ys)

Quarterly average yield (%)

• Financial statements figures (except for Italian government bonds drawn from data management system). 1. -
• Duration in years, hedging included. 2.

* Mainly derivatives.

Note: figures from data management system.

EMARKET SDIR certified

Balance Sheet

BPER GROUP CONSOLIDATED RESULTS

Executive Summary

Balance Sheet

Profit and Loss

Liquidity and Capital Adequacy

Guidance

Final Remarks

2Q23 Profit and Loss Profit and Loss

P&L - (€mln)	2Q23	1Q23	Chg. Q/Q (%)	4Q22 Recurring	Chg. vs 4Q22 Recurring' (%)
Net interest income	819.0	726.0	+12.8%	చిన్నారు. చిన్నారు. సంస్థ లేదా విద్యాలయం నటించి నిర్మాల నిర్మాల నిర్మాల నిర్మాల నిర్మాల నిర్మాల నిర్మాల నిర్మాల నిర్మాహి చిత్రీని సంరక్షణ నిర్మాల నిర్మాల నిర్	+44.8%
Net commission income	489.5	506.1	-3.3%	524.1	-6.6%
Core Income	1,308.5	1,232.1	+6.2%	1,089.5	+20.1%
Dividends	22.9	2.2		2.9
Net income from financial activities	3.1	50.9	-94.0%	4.6	-33.6%
Other operating expenses/income	-0.6	33.2		15.9
Operating Income	1,333-9	1,318.4	+1.2%	1,113.0	+19.8%
Staff costs	-425.9	-423.2	+0.6%	-433-2	-1.7%
Other administrative expenses	-200.3	-195-4	+2.5%	-271.2	-26.1%
Depreciations & Amortizations	-57.9	-57.2	+1.2%	-66.0	-12.3%
Operating costs	-684.1	-675.8	+1.2%	-770-4	-11.2%
Net Operating Income	649.8	642.6	+1.1%	342.6	+89.6%
Net impairment losses for credit risk	-125.4	-140.5	-10.8%	-210.6	-40.4%
Operating Income net of LLPs	524-4	502.1	+4.4%	132.0	+297.1%
Net provisions for risks and charges	-8.3	-57.1		-79-4
Contributions to SRF, DGS, FITD-SV	20.0	-69.5		-3.4
Gain (Losses) on Investments	-2.8	12.1		-21.1
Profit (loss) before taxes	533-3	387.6	+37.6%	28.1	n.m.
Taxes	-113.1	-88.2		59.0
Profit (Loss) for the period	420.2	299.3	+40.4%	87.1	+382.7%
Minority Interests	-6.3	-8.7		-9.3
Profit (loss) for the period pertaining to the parent company	413.9	290.7	+42.4%	77.7	+432.5%

Net Interest Income Profit and Loss

Net Commission Income Profit and Loss

•

•

Operating Costs

2Q23 Operating Costs totalled 684.1 €mln broadly stable Q/Q

+1.2% 770.4 684.1 675.8 66.0 639.5 57.9 57.2 60.7 271.2 200.3 195.4 217.9 433.2 423.2 425.9 360.9 3Q22 4Q22 1Q23 2Q23 ■ Staff costs D&A

Recurring Operating Costs1 quarterly trend (€mln)

· The cost increase primarily reflects the advertising campaign investment, the costs for the disposal of branches to Banco Desio and the earlier implementation of the Business Plan projects

Cost/Income2 quarterly trend (%)

Branches3 and employees over time (# branches; # HC)

See slide 26. 1.

3 PE

Gruppo

The Cost to income ratio is alculated on the recassified Income Statement (operating income); when calculated on the basis of the schedules provided 2. by the 8th update of Bank of Italy Circular no. 26, the Cost to ince 2023, 59,85% as at 31 March 2023 and 73,17% as at 31 December 2022. Italian branches. 3.

• •
• •

BPER GROUP CONSOLIDATED RESULTS

Executive Summary

Balance Sheet

Profit and Loss

Liquidity and Capital Adequacy

Guidance

Final Remarks

Q/Q Capital Walk

Strong capital position thanks to organic capital generation

Pro-forma CET1 ratio¹ (%)

The pro-forma capital ratios rave been calculated in the portion not allocated to dividends, i.e. simulating in advance the effects of the ECB's authoristion to D P E D . . . . include these profits in Own Funds pursuant to art. 26, para. 20 the CR.
2 . . 2 . CET1 instruments of financial sector entities where the institution has a s

BPER GROUP CONSOLIDATED RESULTS

Executive Summary

Balance Sheet

Profit and Loss

Liquidity and Capital Adequacy

Guidance

Final Remarks

VS. PREVIOUS Guidance¹ revised upwards reflects the Bank's strong growth GUIDANCE イ NET INTEREST INCOME ~ 2.8 €bn NET COMMISSION INCOME ~ 2.0 €bn OPERATING COSTS ~ 2.7 €bn 1 COST OF RISK ~ 60 bps 11 11 NET PROFIT ~ 1.1 €bn CET1r 1 ~ 14 %

1. Guidance is understood as based on recurring figures, hence not includes any potential non-recurring items that cannot currently be assumed.

FY23 Guidance

BPER GROUP CONSOLIDATED RESULTS

Executive Summary

Balance Sheet

Profit and Loss

Liquidity and Capital Adequacy

Guidance

Final Remarks

•

•

•

BPER GROUP CONSOLIDATED RESULTS

Executive Summary

Balance Sheet

Profit and Loss

Liquidity and Capital Adequacy

Guidance

Final Remarks

Volumes Breakdown

Direct Deposits (€mln)

€/mln	un 22	Sep 22	Dec 22*	Mar 23*	Jun 23	Q/Q	Y/Y
Customer Direct Deposits	106,882	107,165	108,848	104,571	103,721	-0.8%	-3.0%
o/w C/A and sight deposits	101,032	101,073	102,489	97,128	94,171	-3.0%	-6.8%
o/w Retail bonds	619	561	324	215	570	n.s.	-7.9%
o/w Certificates	495	600	879	1,277	1,425	+11.6%	+188.0%
o/w Other**	4,736	4,930	5,155	5,951	7,555	+27.0%	+59.5%
Institutional Direct funding	7,607	9,514	5,983	8,910	9,952	+11.7%	+30.8%
Total Direct Deposits	114,489	116,679	114,831	113,481	113,673	+0.2%	-0.7%

Net Customer Loans (€mln)

€/mln	Jun 22	Sep 22	Dec 22	Mar 23	Jun 23	QIQ	YIY
Current Accounts	6,070	5,819	5,483	5,679	5,718	+0.7%	-5.8%
Mortgage loans	61,488	62,394	62,952	62,314	62,474	+0.3%	+1.6%
Other	23,525	22,589	22,740	21,408	20,902	-2.4%	-11.1%
Net Customer Loans	91,082	90,801	91,175	89,401	89,095	-0.3%	-2.2%
o/w Performing	89,460	89,279	89,890	88,220	88,082	-0.2%	-1.5%
o/w Non-Pertorming	1,622	1,522	1,285	1,181	1,013	-14.2%	-37.6%

* The breakdown between institutional and retail bonds as at Dec 2022 and Mar 23 was restated.

** "Other" includes time deposits, other short-term loans, lease liabilities and certificates of deposit.

2022 Profit and Loss Annexes

(€mln)	9 M22	4Q22	FY22	FY22 Notes
Net interest income
Net commission income
Core Income
Dividends
Net income from financial activities		+18.4	+18.4	Gains from securities disposals
Other operating expenses/income	-12.9	+312.9	+300.0	Disposal of the merchant acquiring business (+308.3 €mln booked in 4Q), return of fast-track loan approval process fees (CIV) to customers for the years 2012-2015 (-23.5 €mln in 2022) and other
Operating Income	-12.9	+331.3	+318.4
Staff costs	-24.0	-176.6	-200.6	Workforce optimisation costs (-166.2 €mln booked in 4Q), one-off extraordinary contribution (-10.4 €mln booked in 4Q) other on incentivised exits (booked in 2Q)
Other administrative expenses	-23.7	-31.3	-55.0	Carige acquisition process (-9 €mln in 2Q, -14.7 €mln in 3Q and -31.3 €mln in 4Q)
Depreciations & Amortizations		-7.0	-7.0	Software impairments
Operating costs	-47-7	-214.9	-262.5
Net Operating Income	-60.6	+116.4	+55.9
Net impairment losses for credit risk		-60.6	-60.6	LLPs from Carige's collective provisions
Net provisions for risks and charges
Contribution to Funds (SRF, DGS, FITD-SV)
Gain (Losses) on Investments
Gain on a bargain purchase	+1,171.3	-223.2	+948.1	+948.1 €mIn badwill
Profit (loss) before taxes	+1,110.7	(167.4)	+943-4

Net Customer Loans

Loan Portfolio Composition

BPER:

Gruppo

Net Customer Loans breakdown by sector (€bn)

Business sector	Jun 23	% on Total Customer Loans	A % vs Dec 22
Manufacturing	13.4	15.0%	-1.1%
Wholesale and retail services, recoveries and repairs	7.4	8.3%	-3.5%
Construction	3.2	3.5%	-7.0%
Real Estate	4.1	4.6%	-7.4%
HORECA*	1.9	2.1%	-4.7%
Agriculture, forestry and fishing	1.0	1.1%	-2.8%
Other	ਰੇ ਤੇ	10.6%	-3.9%
Total loans to non-financial businesses	40.4	45.4%	-3.6%
Households	41.0	46.0%	-1.0%
Total loans to financial businesses	7.7	8.6%	-2.3%
Total Customer Loans	89.1	100.0%	-2.3%
Debt Securities	15.0	16.8%	+2.3%

Net Customer Loans breakdown by geographical areas' (%)

* Hotels, Restaurants & Cafes (HORECA). Note: figures as per ATECO business sector definitions (STAT, the Italian National Institute of Statistics).

1.

EMARKET SDIR certified

Annexes

Asset Quality Details Annexes

Gross exposures (€mln)	Jun 22		Sep 22		Dec 22			Mar 23		Jun 23		Chg Q/Q		Chg YTD		Chg Y/Y
		comp. %		comp. %		comp. %		comp. %		comp. %	Abs.	Chg (%)	Abs.	Chg (%)	Abs.	Chg (%)
Non Performing Exposures (NPEs)	4,088	4.3%	3,974	4.2%	2,991	3.2%	3,022	3.3%	2,504	2.7%	-518	-17.2%	-487	-16.3%	-1,584	-38.8%
Bad loans	2,015	2.1%	1,959	2.1%	961	1.0%	d89	1.1%	1,020	1.1%	31	+3.2%	ਦੇ ਰੋ	+6.2%	-995	-49.4%
Unlikely to pay loans	1,944	2.1%	1,871	2.0%	1,872	2.0%	1,872	2.0%	1,277	1.4%	-595	-31.8%	-295	-31.8%	-667	-34.3%
Past due loans	129	0.1%	145	0.2%	158	0.2%	161	0.2%	207	0.2%	46	+28.1%	49	+30.4%	78	+60.4%
Gross performing loans	90,058	95.7%	89,895	95.8%	90,590	96.8%	88,884	96.7%	88,801	97.3%	-83	-0.1%	-1,789	-2.0%	-1,257	-1.4%
Total gross exposures	94,146	100%	93,869	100%	93,581	100%	91,906	100%	91,305	100%	-601	-0.7%	-2,276	-2.4%	-2,841	-3.0%
Adjustments to loans (€mln)	un 22		Sep 22		Dec 22		Mar 23		Jun 23		Chg Q/Q		Chg YTD		Chg Y/Y
		coverage (%)		coverage (%)		coverage (%)		coverage (%)		coverage (%)	Abs.	Chg (%)	Abs.	Chg (%)	Abs.	Chg (%)
Adjustments to NPEs	2,466	60.3%	2,452	61.7%	1,706	57.1%	1,841	60.9%	1,491	59.6%	-350	-19.0%	-215	-12.6%	-975	-39.5%
Bad loans	1,524	75.6%	1,526	77.9%	740	77.0%	795	80.4%	830	81.4%	35	+4.5%	go	+12.2%	-694	-45.5%
Unlikely to pay loans	906	46.6%	885	47.3%	917	49.0%	997	53.3%	603	47.2%	-394	-39.5%	-314	-34.2%	-303	-33.4%
Past due loans	36	27.7%	41	28.8%	49	31.4%	49	30.6%	58	28.0%	9	+17.1%	9	+16.0%	22	+62.2%
Adjustments to performing loans	298	0.7%	616	0.7%	700	0.8%	664	0.7%	719	0.8%	55	+8.3%	19	+2.8%	121	+20.2%
Total adjustments	3,064	3.3%	3,068	3.3%	2,406	2.6%	2,505	2.7%	2,210	2.4%	-295	-11.8%	-196	-8.1%	-854	-27.9%
Net exposures (€mIn)	Jun 22		Sep 22		Dec 22		Mar 23		Jun 23		Chg Q/Q		Chg YTD		Chg Y/Y
		comp. %		comp. %		comp. %		comp. %		comp. %	Abs.	Chg (%)	Abs.	Chg (%)	Abs.	Chg (%)
Non Performing Exposures (NPEs)	1,622	1.8%	1,522	1.7%	1,285	1.4%	1,181	1.3%	1,013	1.1%	-168	-14.2%	-272	-21.2%	-609	-37.6%
Bad loans	49.	0.5%	433	0.5%	221	0.2%	194	0.2%	190	0.2%	-4	-2.0%	-31	-14.0%	-301	-61.3%
Unlikely to pay loans	1,038	1.1%	986	1.1%	ਰੇ 25	1.0%	875	1.0%	674	0.8%	-201	-23.0%	-281	-29.5%	-364	-35.1%
Past due loans	ਰੇਤੇ	0.1%	103	0.1%	109	0.1%	112	0.1%	149	0.2%	37	+33.0%	40	+37.0%	56	+59.7%
Net performing loans	89,460	98.2%	89,279	98.3%	89,890	98.6%	88,220	98.7%	88,082	98.9%	-138	-0.2%	-1,808	-2.0%	-1,378	-1.5%
Total net exposures	91,082	100%	90,801	100%	91,175	100%	89,401	100%	89,095	100%	-306	-0.3%	-2,080	-2.3%	-1,987	-2.2%

Financial Assets: Highlights Annexes

Bond Maturities and Issuances: Highlights

Outstanding Bonds (€bn)

Bonds issued (€bn)

EMARKET SDIR certified

30

Annexes

Credit Ratings

		LT Issuer LT Deposits	Outlook
DBRS	BBB	BBB (high)	Stable
Fitch	BBB-	BBB	Stable
Moody's	Ba1	Baaz	Negative

Bond Maturities breakdown (€bn)

Note 1: figures on this page reflect nominal amounts.

Note 2: figures from data management system.

Note 3: the AT1 bond issuance (150 €/mln) is not included in this slide.

Note ; the CB placement for a nominal anount of Ebr 2.0 in repurchase agreements with self-issuedsecurities (Covered Bonds) which had previously been repurchased. Repor with self-issued securities mew issuances under the item "bonds issued" (see Bol's circular letter 201 o 2 16 Lettera BDL prob. 018 Circolare Bankit 272 "La Matrice dei conti (Chart of Accounts )")

Nicola Sponghi Head of Investor Relations

Via Aristotele, 195 - 41126 Modena - Italy +39 059 2022219

▽ nicola.sponghi@bper.it

Massimo Turla Investor Relations

�� Via Cassa di Risparmio, 15 - 16123 Genoa – Italy

massimo.turla@bper.it

Sara Viglietti Investor Relations

o Via Cassa di Risparmio, 15 - 16123 Genoa – Italy