Slide 1: 1Q21 consolidated results
1Q21 consolidated results Piero Luigi Montani, CEO 7 May 2021 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by “BPER Banca” solely for No part of the information contained herein may for any purpose information purposes, and only in order to present its strategies be reproduced or published as a whole or in part, nor may such and main financial figures. informati
Slide 3: Important methodological note
Important methodological note Change in the scope of consolidation and Purchase Price Allocation Change in 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 Int
Slide 4: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 4
Slide 5: Executive summary
Executive summary • Successful integration of 587 UBI branches acquired from ISP, which allowed to strengthen the Bank’s competitive Significant position in strong economic areas, previously only partially covered dimensional • Customer base reached 4.1mln clients (+50% YTD) growth • Significant vol
Slide 6: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 6
Slide 7: Total funding
Total funding Balance sheet structure Total Funding up to 255.2 €bn, thanks to the integration of UBI going concern and a positive commercial activity Total Funding breakdown (€mln; %) Total Funding, quarterly trend (€bn) 255.2 Chg 67.1 Total Funding Dec 20 Mar 21 (% ) On a like- Direct Deposits 63.
Slide 8: Direct funding
Direct funding Balance sheet structure Direct funding increased to 94.4 €bn, of which 29.4 €bn from UBI going concern Direct Funding breakdown (€mln; %) Direct Funding, quarterly trend (€bn) Chg €/mln Dec 20 Mar 21 94.4 (% ) 4.1 Direct Customer Deposits 59,505 90,343 +51.8% o/w Current accounts and
Slide 9: Indirect deposits
Indirect deposits Balance sheet structure Stock increased to 160.7 €bn, of which 37.8 €bn from UBI going concern Indirect Deposits1 (€mln;%) Indirect Deposits quarterly trend (€bn) 160.7 Chg 37.8 €/mln Dec 20 Mar 21 On a like- (%) for-like basis Assets under custody 72,057 82,646 +14.7% Assets under
Slide 10: Customer loans
Customer loans Balance sheet structure Net customer loans at 75.4 €bn of which 21.8 €bn from UBI going concern Net customer loans breakdown (€mln;%) Net customer loans, quarterly trend (€bn) 75.4 Chg €/mln Dec 20 Mar 21 (%) 21.8 Current Account 3,669 4,897 +33.5% On a like- Mortgage loans 35,355 52,
Slide 11: Moratoria on payments and State guaranteed loans
Moratoria on payments and State guarenteed loans Balance sheet structure 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 pl
Slide 12: Asset Quality (1/3)
Asset Quality (1/3) Balance sheet structure 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 Breakdown of NPE stock and coverage (€mln; %) Evolution of NPE stock and NPE ratios
Slide 13: Asset Quality (2/3)
Asset Quality (2/3) Balance sheet structure 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 (%) 9.4 2.4% 2.6 1.9% 1.8% 1.9% 1.7% 6.1 6.8 4.3 4.9 5.2 1Q 20 2Q 20 3Q
Slide 14: Asset quality (3/3)
Asset quality (3/3) Balance sheet structure Default rate at 0.7% from 1.0% in Dec.’20. Recovery rate continues to show positive trend Default rate (%) Cure rate (%) 2.1% 12.6% 1.9% 11.5% 1.7% 9.7% 8.5% 1.0% 6.9% 0.7% 2017 2018 2019 2020 1Q21* 2017 2018 2019 2020 1Q21* Danger rate (%) Bad loans avera
Slide 15: Financial assets portfolio
Financial assets portfolio Balance sheet structure Financial assets portfolio at 26.4 €bn up by 1.7 €bn YTD Financial Assets breakdown (€mln; %) Italian Government bonds1 (€bn) 7.8 8.0 €/mn FVTPL FVOCI AC Total % on total Bonds 378 6,084 18,821 25,283 95.7% 6.4 o.w. Italian gov 1 191 422 7,386 7,999
Slide 16: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 16
Slide 17: Profit & Loss
Profit & Loss Profit and loss Q121 results equal to 400.3 €mln impacted by several one-offs 2020 2021 Comments: (€/mln) 1Q 1Q 1 -17.5 €mln related to UBI going concern integration process Net interest income 302.3 343.5 Net commission income 273.3 328.1 -65.9 €mln related to UBI going concern integr
Slide 18: Net Interest Income
Net Interest Income Profit and loss 1Q21 NII at 343.5 €mln of which 291.7 €mln from the commercial activity with customers Net Interest Income1 Breakdown (€mln) Net Interest Income quarterly trend1 (€mln) 343.5 Chg 320.3 3.3 €/mln Mar 20 Mar 21 311.9 IFRS9 and IFRS16 % 302.3 304.4 4.6 2.6 Commercial
Slide 19: Net commission income
Net commission income Profit and loss 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 328.1 insurance fees in 1Q 21 thanks to UBI going 273.3 267.3 280.9
Slide 20: Trading income and Dividends
Trading income and Dividends Profit and loss Trading income came in very strong reaching 76 €mln in 1Q21 benefitting from positive market performance in the quarter Trading income evolution (€mln) Dividends 0.8 12.0 4.6 1.1 1.7 (€mln) 20
Slide 21: Operating costs
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 Operating costs breakdown (€mln) Operating costs evolution1 (€mln) Chg Mar 20 Mar 21 546.5 % 255.6 302.1 54.5 Staff expenses +18.2%
Slide 22: Provisions and other items
Provisions and other items Profit and loss Cost of credit impacted by additional LLPs Provisions and other items (€mln) LLPs (€mln) and Cost of credit* (%) evolution Quarterly 0.27% 0.29%*** 0.20% 0.25% 0.55% Cost of credit Chg Mar 20 Mar 21 % 417.7 Total Provisions 139.6 418.8 +199.9% o/w LLPs** 14
Slide 23: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 23
Slide 24: Liquidity
Liquidity Liquidity and Capital adequacy 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 (%) +4.1% 29,249 28,095 28,657 19,924 20,911 11,432 9,877 18,991 1,069 10,363 10,047 9,666 Dec 19 Dec 2
Slide 25: Capital
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 (%) +25 bps -50 bps +180 bps +41 bps -433 bps CET1 ratio Phased in proforma equal to 14.41% 1 15.79% 13.42% Dec 20 Net result of the FVOCI Reserv
Slide 26: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 26
Slide 27: Final remarks
Final remarks Despite the difficult external scenario strongly impacted by the pandemic, Q1 21 STRONG RESULTS DESPITE results show a remarkable increase in the operating profitability underpinned by the STILL DIFFICULT EXTERNAL integration of the UBI going concern, that contributed to further streng
Slide 28: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 28
Slide 29: Customer loans: portfolio composition
Customer loans Annexes Portfolio composition Net customer loans breakdown by sector Customer loans breakdown by (€mln; %) geographical distribution1(%) % on Total Δ% Business sector Mar 21 Customer vs Dec 20 Loans North Centre 57.5% 17.2% Manufacturing 11,251 14.9% +46.7% Wholesale and retail servic
Slide 30: Asset quality
Asset quality Annexes Asset quality breakdown (excl. customer debt securities) Gross exposures (€/mln) Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Chg YTD Chg Y/Y % % % % % Abs. Chg (%) Abs. Chg (%) Non Performing Exposures (NPEs) 6,056 11.1% 5,008 9.1% 4,896 8.8% 4,343 7.8% 4,778 6.1% 435 +10.0% -1,278 -21.
Slide 31: Financial Assets details
Financial Assets details Annexes Bond PTF by Geographical breakdown (%) Govies PTF Geographical breakdown (%) Other Germany 7.2% Other 5.8% 23.9% USA 6.3% Spain USA Italy 12.8% 5.3% 41.1% Spain Italy 7.5% 67.9% Germany 8.4% France 13.8% 17.4 5.1 Bonds PTF Maturities1 (€bn) Italian Govies Maturities1
Slide 32: Bonds maturities and issues details
Bonds maturities and issues details Annexes Outstanding bonds1 (€bn) Bonds issued (€bn) 1.2 Dec 20 Mar 21 0.9 Wholesale bonds 3.5 4.0 0.6 0.6 0.6 1.2 0.5 o/w covered bonds 1.9 1.9 o/w subordinated bonds 0.9 0.9 0.5 0.5 0.5 Retail bonds 1.0 0.9 0.1 0.3 o/w subordinated bonds 0.1 0.1 0.1 0.1 0.1 Total
Slide 33: Contacts for Investors and Financial Analysts
Contacts for Investors and Financial Analysts Fabio Pelati Nicola Sponghi Head of Investor Relations Investor Relations Via San Carlo, 8/20 - 41121 Modena - Italy Via San Carlo, 8/20 - 41121 Modena - Italy +39 059 2021369 +39 059 2022219 fabio.pelati@bper.it nicola.sponghi@bper.it 33