Slide 1: 9M21 Consolidated Results
9M21 Consolidated Results Piero Luigi Montani, CEO 5 November 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 During the first 9M of 2021 BPER Banca completed the integration of the going concern consisting in 620 branches1 acquired from the Intesa Sanpaolo Group (ISP). The t
Slide 4: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Capital adequacy Final remarks ANNEXES 4
Slide 5: Executive summary
Executive summary CONTINUED GROWTH IN CORE BUSINESS PROFITABILITY, COMBINED WITH A SIGNIFICANT IMPROVEMENT IN CREDIT QUALITY AND A SOUND CAPITAL POSITION • 9M21 net profit of 586.2 €mln. Excluding one-offs1, 9M21 pre tax profit increased to 417.1 €mln Profitability • 3Q21 net profit of 84.4 €mln, af
Slide 6: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Capital adequacy Final remarks ANNEXES 6
Slide 7: Direct funding
Direct funding Balance sheet structure Direct funding at 97.9 €bn, of which 89.6 €bn in core deposits at marginal cost Direct Funding breakdown (€mln) Direct Funding, quarterly trend (€bn) -0.6% Chg. Q/Q Chg. YTD €/mln Dec 20 Jun 21 Sep 21 (% ) (% ) 94.4 98.5 97.9 Customer Direct Deposits 59,505 94,
Slide 8: Indirect deposits
Indirect deposits Balance sheet structure Total indirect deposits increased to 166.2 €bn thanks to effective commercial activity Indirect Deposits (€mln) Indirect Deposits quarterly trend (€bn) +0.7% 160.7 165.1 166.2 Chg. Q/Q Chg. YTD €/mln Dec 20 Jun 21 Sep 21 (%) (%) 122.1 Assets under custody 72
Slide 9: Customer loans
Customer loans Balance sheet structure Net customer loans at 76.5 €bn Net customer loans breakdown (€mln) Net customer loans, quarterly trend (€bn) +0.3% Chg. Q/Q Chg. YTD €/mln Dec 20 Jun 21 Sep 21 (%) (%) 75.4 76.3 76.5 Current Accounts 3,669 4,766 4,935 +3.6% +34.5% Mortgage loans 35,355 53,356 5
Slide 10: Loan payment moratoria and State guaranteed loans
Loan payment moratoria and State guaranteed loans Balance sheet structure Loan payment moratoria declined further in 3Q21 (-7.2% Q/Q), while State guaranteed loans were up 6.3% Q/Q Loan payment Moratoria (€bn) State guaranteed loans (€bn) +13.8% -62.8% o/w 2.6bn related to the Cura Italia Law decree
Slide 11: Asset Quality (1/3)
Asset Quality (1/3) Balance sheet structure Asset quality keeps improving with steady reduction in NPE ratios and further strengthening of coverage levels Loan book breakdown: stock and coverage (€mln; %) NPE stock and NPE ratios over time (€bn; %) Dec 20 Mar 21 Jun 21 Sept 21 7.8% 6.1% 5.7% 5.5% Gr
Slide 12: Asset Quality (2/3)
Asset Quality (2/3) Balance sheet structure Stage 2 net loans stock of 9.6 €bn (stable at 12.9% of Group’s performing loans) with coverage at 3.0% Stock of stage 2 net loans, quarterly trend (€bn) Coverage of stage 2 net loans, quarterly trend (%) 9.4 9.5 9.6 3.0% 3.0% 2.4% 6.1 1.9% 4Q 20 1Q 21 2Q 2
Slide 13: Asset quality (3/3)
Asset quality (3/3) Balance sheet structure Default rate at 0.8% from 1.0% in Dec.’20. Bad loan recovery rate continues its positive trend Default rate (%) Average Bad loan recovery rate1 (%) (Bper Credit Management) 2.1% 1.9% 6.9% 1.7% 6.3% 6.4% 5.3% 1.0% 4.3% 0.8% 2017 2018 2019 2020 9M21* 2017 20
Slide 14: Financial assets portfolio
Financial assets portfolio Balance sheet structure Financial assets portfolio of 27.4 €bn up by 2.8 €bn YTD Financial Assets breakdown (€mln) Italian Government bonds1 (€bn) 8.4 7.8 €/mn FVTPL FVOCI AC Total % on total Bonds 315 6,122 19,962 26,399 96.2% 6.4 1 o.w. Italian gov 123 352 7,947 8,423 30
Slide 15: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Capital adequacy Final remarks ANNEXES 15
Slide 16: Profit & Loss
Profit & Loss Profit and Loss • 9M21 results of 586.2 €mln affected by non-recurring items • Excluding one-offs, profit before tax totals 417.1 €mln Comments: Quarterly trend Annual trend (€/mln) 1Q21 2Q21 3Q21 9M20 9M21 1 +21.2 €mln mainly from securities disposals Net interest income 343.5 384.8 3
Slide 17: Operating Income
Operating Income Profit and Loss Operating income reached 2,490.8 €mln in 9M21 driven by core income growth Operating Income over time (€mln) +6.1% 892.4 840.7 • Operating income totalled 892.4 €mln in 3Q 62.8 757.7 50.1 21 (+6.1% Q/Q), with 829.5 €mln accounted 642.9 645.5 86.0 for by core income (
Slide 18: Net Interest Income
Net Interest Income Profit and Loss 9M21 NII at 1,119.4 €mln of which 980.7 €mln from commercial activity with customers Net Interest Income1 breakdown (€mln) Net Interest Income quarterly trend1 (€mln) o/w o/w o/w Chg. Q/Q €/mln 9M21 391.1 1Q21 2Q21 3Q21 % 384.8 4.6 O/w IFRS9 and IFRS16 Commercial
Slide 19: Net commission income
Net commission income Profit and Loss 9M21 Net commission income reached 1,172.4 €mln, driven by growth in indirect deposits and bancassurance in addition to the going concern contribution Net Commission Income over time1 (€mln) +8.0% 438.5 • 3Q21 net commissions up to 438.5 €mln 405.8 (+8.0% Q/Q),
Slide 20: Trading income and Dividends
Trading income and Dividends Profit and Loss Trading income increased to 172.6 €mln in 9M21, as it benefitted from positive market performance and capital gains on securities disposals Trading income over time (€mln) 76.2 52.9 43.1 42.6 43.5 3Q20 4Q20 1Q21 2Q21 3Q21 Dividends (€mln) 4.6 1.1 1.7 12.3
Slide 21: Operating costs
Operating costs Profit and Loss 9M21 operating costs totalled 1.6 €bn, impacted by 102.7 €mln in one-off charges mainly associated with the going concern integration process Operating costs breakdown (€mln) Operating costs over time1 (€mln) o/w o/w o/w Chg. Q/Q 9M21 1Q21 2Q21 3Q21 % Staff expenses 9
Slide 22: Provisions and other items
Provisions and other items Profit and Loss The 9M21 annualised cost of risk (excluding additional LLPs) is 70 bps and reflects a very conservative approach to provisioning Provisions and other items (€mln) LLPs (€mln) and Cost of credit* (%) over time 417.7 o/w o/w o/w Chg. Q/Q 9M21 % 1Q21 2Q21 3Q21
Slide 23: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Capital adequacy Final remarks ANNEXES 23
Slide 24: Capital
Capital Capital adequacy High capital position with a proforma Fully Phased CET1 at 13.68% well above the SREP requirement (8.125%) Proforma Fully Phased CET1 (%) Pro-forma Phased in CET1 ratio of 14.69% +16 bps 13.68% 13.52% 1 Jun 21 Net result of the period * Sept 21 Common Equity TIER 1: Common E
Slide 25: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Capital adequacy Final remarks ANNEXES 25
Slide 26: Final remarks
Final remarks Increase in overall profitability after going concern integration, coupled with improved risk profile and a strong capital position 9M21 Profit before tax Gross NPE ratio Fully Phased CET1 ratio excluding one-offs 5.5% 13.7% 417.1 €mln Increase in operating profitability underpinned by
Slide 27: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Capital adequacy Final remarks ANNEXES 27
Slide 28: Total funding
Total funding Annexes Total funding reached 264.1 €bn (+43% YTD), and is mainly accounted for by Indirect Deposits (166.2 €bn) Total Funding breakdown (€mln) Total Funding, quarterly trend (€bn) +0.2% 255.2 263.6 264.1 Chg. Q/Q Chg. YTD Total Funding Dec 20 Jun 21 Sep 21 (%) (%) 185.2 Direct Deposit
Slide 29: Liquidity
Liquidity Annexes High level of liquidity with LCR >200% and liquidity buffer close to 30.9 €bn Total eligible Assets over time* (€mln) Eligible Assets Pool Composition (%) +5.4% 29,911 32,844 29,613 30,878 28,095 19,924 22,790 21,426 9,877 10,047 10,054 9,452 Dec 20 Jun 21 Sep 21 Total eligible ass
Slide 30: Net Customer loans
Net Customer loans Annexes Portfolio composition Net customer loans breakdown by sector (€mln) Customer loans breakdown by geographical areas1(%) % on Total Δ% Business sector Sep 21 Customer vs Dec 20 Loans Manufacturing 11,267 14.7% +47.0% North Centre Wholesale and retail services, 6,366 8.3% +43
Slide 31: Asset quality
Asset quality Annexes Asset quality breakdown (excl. debt securities) Gross exposures (€/mln) Dec 20 Mar 21 Jun 21 Sep 21 Chg Q/Q comp. % comp. % comp. % comp. % Abs. Chg (% ) Non Performing Exposures (NPEs) 4,343 7.8% 4,778 6.1% 4,470 5.7% 4,383 5.5% -86 -1.9% Bad loans 2,076 3.7% 2,368 3.0% 2,341
Slide 32: Financial Assets: highlights
Financial Assets: highlights Annexes Bond PTF Geographical breakdown (%) Govies PTF Geographical breakdown (%) Other Other Germany 6.8% 24.5% 5.6% USA 6.1% Italy Spain USA 12.6% 40.7% 5.6% Spain 7.2% Italy 68.9% Germany 8.0% France 14.0% Bonds PTF Maturities1 (€bn) Italian Govies Maturities1 (€bn) 6
Slide 33: Bond maturities and issuances: highlights
Bond maturities and issuances: highlights Annexes Outstanding bonds1 (€bn) Bonds issued (€bn) 1.2 0.9 Dec 20 Sep 21 0.6 0.6 Wholesale bonds 3.5 3.9 0.6 1.2 0.5 o/w covered bonds 1.9 1.9 0.5 0.5 o/w subordinated bonds 0.5 0.9 0.9 0.1 0.3 0.1 0.1 0.1 Retail bonds 1.0 0.8 2016 2017 2018 2019 2020 2021
Slide 34: 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 2021396 +39 059 2022219 fabio.pelati@bper.it nicola.sponghi@bper.it 34