1H24 Results

Milan, August 7th, 2024

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

METHODOLOGICAL NOTE

Figures included in the tables shown in this document may not add exactly due to rounding differences.

Starting from the closing of the first quarter 2024 accounts, the Income Statement underwent the following reclassification changes:

Gains (losses) of equity investments measured under the equity method are presented as a separate line in Operating Income (former Gains (Losses) on investments);
Contributions to the SRF, DGS and FITD-SV funds are shown under Profit (Loss) from current operations.

Based on the same overall net profitability, the margins in the Income Statement as at 30 June 2024 were affected by the reclassification of some cost/income components. More specifically, in the first half:

Net commissions included €16.2 mn worth of charges for payment services provided (former Other administrative expenses);
Other administrative expenses were offset within the same item by €8.3 mn in recovery of costs for services ancillary to lending (former Commission income);
Staff costs included €9.1 mn in business trips and training charges (former Other administrative expenses);
gross effects from the use of provisions for risks and charges set aside in prior periods (former Other operating expenses/Reversal of provisions for risks and charges) were directly offset within the same item by €17 mn.

In the interest of comparability of results, similar reclassifications have been made for the comparative reporting periods.

BPER Banca S.p.A., Head Office in Via San Carlo 8/20, Modena – Tax Code and Modena Companies Register No. 01153230360 – Company belonging to the BPER BANCA GROUP VAT, VAT No. 03830780361 – Share capital Euro 2,104,315,691.40 – 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. +39 059.2021111 – Telefax +39 059.2022033 – e-mail: [email protected] – Certified e-mail (PEC): [email protected] – bper.it – group.bper.it

Executive summary

Group results

Final remarks

Annexes

Steadfast Revenue growth and higher profitability in 1H24

Delivered higher results in first half with Pre-tax Profit up by 16% H/H

"Core" Revenues up by 7% H/H and operational efficiency stable with Cost/Income below 51%

Strong asset quality profile confirmed with an improved Cost of Risk

Strong balance sheet, higher capital ratio thanks to organic capital generation of 199bps in the first half

Total Revenues	tax(1)(2) Profit before
€2.8 bn +4.1% H/H	€1.1 bn +15.9% H/H
Cost/Income(3)	CoR(4)
50.6% Flat H/H	41bps -20bps H/H
RoTE(5)	FL CET1(6)
16.5%	15.3%
LCR	NSFR
161.4% 160.9% Dec-23	134.6% 128.4% Dec-23

(1) Profit before tax excluding €150.1 mn of gains from the disposal of the NPE servicing platform in 1Q24 and €173.8 mn of HR-related actions in 2Q24. (2) EPS equal to €0.512.

(3) Excluding €173.8 mn of HR-related actions in 2Q24.

(4) CoR annualised.

4 (5) RoTE calculated on Net Profit adjusted, excluding €148.0 mn of the net capital gain from the NPE servicing platform disposal in 1Q24 and €173.8 mn of HR-related actions and tax effect of 52.1 mn in 2Q24. (6) CET1 ratio was calculated including profit (loss) for the period for the portion not allocated to dividends, i.e. bringing forward in advance the effects of the ECB's authorisation to include these profits in "Own Funds" pursuant to art. 26, para. 2 of the CRR.

Net Profit in 1H24 mainly driven by "Core" Revenues and lower LLPs

P&L Key Figures

(€mn)		1H24	H/H	2Q24	Q/Q	Y/Y
Total Revenues	Core	2,758.1	+4.1%	1,396.9	+2.6%	+5.1%
o/w NII	Revenues	1,682.5	+8.9%	838.9	-0.6%	+2.4%
o/w Net Commission Income		1,014.7	+4.0%	516.0	+3.5%	+7.6%
Operating Costs(1)		-1,395.9	+4.2%	-706.6	+2.5%	+4.8%
Net operat. Income		1,362.1	+4.1%	690.3	+2.7%	+5.4%
LLPs		-175.1	-34.1%	-81.7	-12.6%	-34.9%
Profit before tax (adjusted)(2)		1,067.7	+15.9%	606.5	+31.5%	+13.7%
Net Profit (adjusted)(3)		697.7	-1.0%	388.5	+25.6%	-6.1%
Net Profit (stated)		724.2	+2.8%	266.9	-41.6%	-35.5%

				Lower tax rate in
				2Q23 and 1Q24

Net Profit stated vs adjusted(3) (€mn)

(1) Excluding €173.8 mn of HR-related actions in 2Q24.

(2) Including systemic charges in 1H23 of €49.5 mn and in 1H24 of €109.6 mn.

(3) No adjustments in the first three quarters of 2023. In 4Q23, the adjustment referred to €294.5 mn of HR-related actions and tax effect of €82.6 mn. In 1Q24, the adjustment referred to €148.0 mn of the net capital gain from the NPE servicing platform disposal in 2Q24, the adjustment referred to €173.8 mn of HR-related actions and tax effect of €52.1 mn in 2Q24.

(4) Excluding €380 mn of DTAs on tax losses.

On track to achieve 2024 Guidance

(1) Operating Costs exclude €294.5 mn and €173.8 mn of HR-related actions in 4Q23 and 2Q24, respectively.

(2) CoR annualised in 1H24.

(3) In 2023, Net Profit excludes €294.5 mn of HR-related actions and tax effect of €82.6 mn and €380 mn of DTAs on tax losses. Net Profit excludes €148.0 mn of net gain from the disposal of the NPE servicing platform in 1Q24 and €173.8 mn of HR-related actions and tax effect of €52.1 mn in 2Q24.