Bper Banca S.p.a. · MIL:BPE
Bper Banca — Q4 2023 Earnings Presentation
31 slides from Bper Banca's earnings presentation, Feb 7, 2024
Slide 1: Piero Luigi Montani, CEO, 7th February 2024
Piero Luigi Montani, CEO 7th February 2024
Slide 2: Disclaimer
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 con
Slide 3: Change in the scope of consolidation
Change in the scope of consolidation CHANGE IN THE SCOPE OF CONSOLIDATION The assets and liabilities of Banca Carige were included on a line-by-line basis in the Group’s Balance Sheet as at 30 June 2022, while Banca Carige’s contribution has been part of the income statement in full since 3Q22. 20 F
Slide 4: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS EXECUTIVE SUMMARY BALANCE SHEET PROFIT AND LOSS LIQUIDITY AND CAPITAL ADEQUACY GUIDANCE ANNEXES BPER:
Slide 5: Executive Summary
Executive Summary ( awa awa > @ @ @ OPERATING RESILIENT ASSET SOLID CAPITAL AND PROFITABILITY QUALITY LIQUIDITY POSITION UNDERPINNED BY TOP WITH STRONG NPE WELL ABOVE LINE GROWTH RATIOS AND REGULATORY HIGH COVERAGE REQUIREMENTS Ne JT \ JT \ y, OO AHEAD OF BUSINESS PLAN SCHEDULE IN PROJECTS DELIVERY
Slide 6: Executive Summary
Executive Summary 4023 Net Profit Core Income Cost/Income’ Net Profit Nil Fees 1,519 €min 5,262 €min 51% 432 €min 870 €min 529 €min +4.9% +39.7% 64% +13.1% +4.0% +8.9% vIY Y/Y FY22 Q/Q Q/Q Q/Q Gross NPE ratio Net NPE ratio Cost of Risk NPE coverage 2.4% 1.2% 48 bps 53% Proposed cash dividend 3.2% 1.
Slide 7: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS EXECUTIVE SUMMARY BALANCE SHEET PROFIT AND LOSS LIQUIDITY AND CAPITAL ADEQUACY GUIDANCE ANNEXES BPER:
Slide 8: Total Funding: Direct and Indirect Deposits
Total Funding: Direct and Indirect Deposits TOTAL FUNDING (€BN) FOCUS ON INDIRECT DEPOSITS AND LIFE INSURANCE (€BN) <> +7a% netot | [1 Total figures Amissima (4.6 €bn) -——-@aa>_—. AUM NET INFLOWS" (€MLN) [278.0] [281.9] [279.7] 163.2 41.5 45.5 14.8 113.5 13.7 120.1 118.8 78.3 83.8 163.2 167.5 166.0
Slide 9: Net Customer Loans
Net Customer Loans NET CUSTOMER LOANS (€BN) NET CUSTOMER LOANS: BREAKDOWN BY SECTOR" (%) Manufacturing &> Other 14.8% 19.3% i 93 > Wholesale and retail services 8.1% —, Construction 3.4% 91.2 89.4 89.1 867 88.2 Real Estate ‘orporate 4.4% o HORECA' 1.9% Households i 47.0% . Retail 59% LOAN TO DEPOSIT
Slide 10: Asset Quality
Asset Quality LOAN BOOK BREAKDOWN: STOCK AND COVERAGE (€MLN; %) NON-PERFORMING EXPOSURES OVER TIME (%) Bad Loans Gross Net Coverage UTPs Gross Net Coverage Past Due Gross Net Coverage Total NPE Gross Net Coverage Performing loans Gross Net Coverage o/w Net Stage 2 Loans Coverage 90,590 89,890 0.77%
Slide 11: Financial Assets Portfolio
Financial Assets Portfolio FINANCIAL ASSETS BREAKDOWN' (€MLN) a Bonds o.w. Italian gov Equity Funds and Sicav Other* Total as at 31.12.2023 Total as at 30.09.2023 Total as at 31.12.2022 Chg vs Dec.'22 Balance Sheet ITALIAN GOVERNMENT BONDS (€BN) 6,308 20,305 26,673 93.3% 10.4 1,804 7,188 8,992 31.4%
Slide 12: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS EXECUTIVE SUMMARY BALANCE SHEET PROFIT AND LOSS LIQUIDITY AND CAPITAL ADEQUACY GUIDANCE ANNEXES BPER: 12
Slide 13: 2023 P&L and a focus on non-recurring items
2023 P&L and a focus on non-recurring items 2023 results show recurring profitability driven by top line growth P&L - (Emin) Non recurring items 2022-2022 1 i Stated) Recurring’ Recurring } ! i) Net interest income ! 1 1,825.9 1,825.9 478.1% ——-+78.1% Net commission income 1 f 19424 19424 $3.5% $3.5
Slide 14: 4Q23 P&L and a focus on non-recurring items
4Q23 P&L and a focus on non-recurring items Hl recat Non-recurring items 4Qz2 1 Recurring’ 1 Net interest income f 836.5 +4.0% 565.5 Net commission income 485.8 +8.9% 524.1 Core Income i 1,322.3 45.8% 1,089.5 Dividends 1 48 80.5% 29 Net income from financial activities 416 -89.3% 4.6 Other operating
Slide 15: Net Interest Income
Net Interest Income NII Q/Q (€MLN) FOCUS ON NII MOVING PARTS" IN 4Q23 (EMLN) 8.40 0-82 1.2 4226 EE stn — Commercial Emilia-Romagna Compulsory Institutional Securities Other 4Q23Net of — TLTRO-II3 403 Nii “foddated” resending paolo, Rca» “TLR NILY/Y (€MLN) COMMERCIAL YIELDS AND SPREAD" (%) | v —e—Spr
Slide 16: Net Commission Income
Net Commission Income NET COMMISSION INCOME QUARTERLY TREND (€MLN) Chg. O/O 524.1 529.0 06.1 5 489.5 485.8 453.1% 75.6 52.2 153.7 165.1 478% +1.8% 283.7 288.3 4Q22 1Q23 2Q23 3Q23 4Q23 mBanking Services mAUM & AuC ™ Bancassurance * In FY23 Net Commission Income totalled 2,010 €mln up 3.5% Y/Y. Sizeab
Slide 17: Operating Costs
Operating Costs RECURRING’ OPERATING COSTS QUARTERLY TREND (€MLN) RECURRING? COST/INCOME (2%) 64% 51% 770.4 7873 i 675.8 684.1 ' 635.6 57.2 579 as 195.4 200.3 wag 2022 2023 BRANCHES? AND EMPLOYEES OVER TIME (#BRANCHES; #HC) 423.2 425.9 382.3 4Q22 1Q23 2Q23 3Q23 4Q23 21,025 21,059 mStaffcosts mOther
Slide 18: Loan Loss Provisions and Cost of Risk
Loan Loss Provisions and Cost of Risk MAIN ASSET QUALITY RATIOS (%) Gross NPE ratio Net NPE ratio NPE coverage 2.4% 1.2% 53% 3.2% 1.4% 57% Dec 22 Dec 22 Dec 22 COST OF RISK TREND (BPS) 63 61 48 1023 1H23 2023 Annualised Annualised * 2023 cost of risk of 48 bps (vs 64 bps in FY22) with total NPE cove
Slide 19: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS EXECUTIVE SUMMARY BALANCE SHEET PROFIT AND LOSS LIQUIDITY AND CAPITAL ADEQUACY GUIDANCE ANNEXES BPER: 19
Slide 20: Liquidity and Capital Adequacy
Liquidity and Capital Adequacy
Slide 21: Liquidity and Capital Adequacy
Liquidity and Capital Adequacy
Slide 22: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS EXECUTIVE SUMMARY BALANCE SHEET PROFIT AND LOSS LIQUIDITY AND CAPITAL ADEQUACY GUIDANCE ANNEXES BPER: 22
Slide 23: FY24 Guidance recurring
FY24 Guidance recurring" BPER: FY23 CYS: RESULTS V3 NET INTEREST INCOME 3-3 €bn > 3 NET COMMISSION INCOME 2.0 €bn | OPERATING COSTS 2.8 €bn > COST OF RISK 48 bps > NET PROFIT* 1.3 €bn > CETir 14.5 % | 1. Guidance is understood as based on recurring figures, excluding any potential non-recurringitems
Slide 24: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS EXECUTIVE SUMMARY BALANCE SHEET PROFIT AND LOSS LIQUIDITY AND CAPITAL ADEQUACY GUIDANCE ANNEXES BPER: 24
Slide 25: Net Customer Loans: Loan Portfolio Composition
Net Customer Loans Loan Portfolio Composition NET CUSTOMER LOANS BREAKDOWN BY SECTOR (€BN) NET CUSTOMER LOANS BREAKDOWN BY GEOGRAPHICAL AREAS" (%) % on Total Business sector Dec 23 Customer North Lombardy 23.9% — 59.6% Loans Manufacturing 13.1 14.8% -3.5% Wholesale and retail services, . . Thil 8.1%
Slide 26: Asset Quality Details
Asset Quality Details Asset Quality Breakdown (excl. Debt Securities) Gross exposures (€min) Dec 22 Mar 23 Jun 23 Sep 23 Dec 23 Chg VQ Chg Y/Y comp. %| comp. %| comp. %| comp. %| comp.%| Abs. Chg(%)| Abs. Chg (%) Non Performing Exposures (NPEs) 2,991 3.2% 3,022 3.3%] 2,504 2.7%6| 2,530 2.8%] 2197 2.
Slide 27: Financial Assets: Highlights
Financial Assets: Highlights BOND PTF GEOGRAPHICAL BREAKDOWN (%) Other 23.4% USA Italy 5.1% 42.8% spain -% ~~ ) Germany 8.8% France 37% BONDS PTF MATURITIES' (€BN) 14.1 . 3.8 - = I [ 2024 2025 2026 2027 > 2027 Annexes GOVIES PTF GEOGRAPHICAL BREAKDOWN (%) Other USA 6.8% 6.2% Germany “"@ Spain ry» 9.
Slide 28: Bond Maturities and Issuances: Highlights
Bond Maturities and Issuances: Highlights OUTSTANDING BONDS (€BN) BONDS ISSUED (€BN) PT bccaz | bec ss | Wholesale bonds 4. 4.6 Covered bonds 1.9 6.3 Retail bonds 03 0.6 Total bonds 6.3 1.5 2021 2022 2023 Total figures @ Wholesale ® Covered Bond © Retail CREDIT RATINGS BOND MATURITIES BREAKDOWN (€BN
Slide 29: Reclassified Balance Sheet
Reclassified Balance Sheet ASSETS (€BN) Customer Loans 91.2 Securities Portfolio 30.7 Interbank Assets’ 16.9 PPE & Intangible Assets 3.1 Other Assets” 10.5 Total Assets 152.3 LIABILITIES AND SHAREHOLDERS’ EQUITY (€BN) Direct Deposits 14.8 Interbank Liabilities 22.0 Shareholders' Equity 8.1 Other Lia
Slide 30: 2022 Profit and Loss: Breakdown of one-offs
2022 Profit and Loss Breakdown of one-offs (€mln) 9M22 4Q22 FY22 FY22 Notes Net interest income - - . Net commission income - - . Core Income - - - Dividends - - - Net income from financial activities - 418.4 +18.4 Gains from securities disposals Otrepetngenensinone aa vhag_peno, Perle era rbot tnd
Slide 31: Contacts for Investors and Financial Analysts
Contacts for Investors and Financial Analysts Nicola Sponghi Head of Investor Relations 0) Via Aristotele, 195 - 41126 Modena - Italy AO +39 059 2022219 Ei nicola.sponghi@bper.it Chiara Leonelli Investor Relations 0) Via Aristotele, 195 - 41126 Modena - Italy AO +39 059 2021318 © chiara.leonelli@bpe