Banco Bpm Spa · MIL:BAMI
Banco Bpm Spa — Banco Bpm Societa Ord — Q1 2025 Earnings Presentation
43 slides from Banco Bpm Spa's earnings presentation, May 7, 2025
Slide 1: Group Q1 2025 Results Presentation
Group Q1 2025 Results Presentation 07 May 2025
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Banco BPM ("Banco BPM"); for the purposes of this notice, "presentation" means this document, any oral presentation, any questions and answers session and any written or oral material discussed following the distribution of this document. The distrib
Slide 3: Methodological Notes
Methodological Notes ▪ The balance sheet and income statement schemes contained in this news release have been reclassified along management criteria in order to provide an indication on the Group’s overall performance based on more easily understandable aggregate operating and financial data. These
Slide 4: 2027 Net Income Target of €2.150M… Now One Quarter Closer
2027 NET INCOME TARGET OF €2.150M… NOW ONE QUARTER CLOSER AT A FASTER PACE Q12025 NET INCOME …LEVERAGING ON OUTSTANDING BREAKS THE €500M MARK… OPERATIONAL PERFORMANCE • Best result in our history @ €511M 22.1% • Revenues driven by strong Euribor 3.92% 2.56% 16.7% commercial results across the 3M Avg
Slide 5: Agenda
Agenda 1 Executive Summary 6 2 Key Highlights 14 3 Final Remarks 24 4 Q1 2025 Performance Details 28 5
Slide 6: Executive Summary
Executive Summary 1
Slide 7: Net Profit Trajectory: The Best Quarter Ever
NET PROFIT TRAJECTORY: THE BEST QUARTER EVER1 FAST EXECUTION OF PLAN ACTIONS DRIVES OVERPERFORMANCE: 2027 TARGETS AT REACH Q1 25 NET INCOME: €511m, +38% Y/Y STRONG VOLUME GROWTH € bn • €549m PF incl. Anima full consolidation2, +2.5% vs. +1.7% €5.3bn 2027 Plan CAGR FY 24/27 Q. Avg. Target 2% higher t
Slide 8: Very solid P&L contribution from non-interest revenues
Very solid P&L contribution from non-interest revenues coupled with top performance in Cost/Income (44%) and CoR (30bps) TOTAL OPERATING -3.5% -0.5% CAGR FY 24/27 REVENUES +2.9% +1.0% COSTS 669 CAGR FY 24/27 645 ~655 €m 1,476 ~1,468 €m 1,434 864 817 ~787 NII NII 2027 Q. Avg. NII Q1 2024 Q1 2025 >680
Slide 9: Strong volume growth, confirming our ability to generate shareholder value
Strong volume growth, confirming our ability to generate shareholder value through continuing support to the Italian economy CORE CUSTOMER LOANS TOTAL CUSTOMER FINANCIAL ASSETS Stock of “Core” performing Stock, in € bn loans, GBV in € bn +0.7% +3.4% +2.5% +0.3% Cap.-protected Financials, PA & 96.9 9
Slide 10: Transformational strategy: Anima acquisition adds a new piece
Transformational strategy: Anima acquisition adds a new piece to complete our diversified business model, bringing total customer financial assets to €377bn TRANSACTION OVERVIEW ANIMA: KEY FIGURES From: Total Customer To: Total Customer ▪ >€200bn AUM (as of 31/03/25) Financial Assets €223bn Financia
Slide 11: Total Revenues from Key Product Factories
Total Revenues from Key Product Factories: well on track vs Plan trajectory TOTAL REVENUES FROM KEY PRODUCT FACTORIES1 +5.0% CAGR 25/27 ~430 390 ▪ Insurance & Payments Anima full consolidation businesses to go at full 123 impact steam in 2026 222 ▪ Anima to be consolidated +20.2% Y/Y 266 in Q2 2025
Slide 12: Further improvement in Asset Quality
Further improvement in Asset Quality: Net Bad Loans (excluding State- Guaranteed) close to zero GROSS NPEs -22.8% Y/Y & -3.5% Q/Q 2025 Stock, in € m TOTAL NPEs o/w: NPEs excluding loans with State Guarantees Gross 3,568 Gross 2,855 2,754 2,777 2,029 1,912 Ratio 3.4% 2.8% 2.7% 31/03/24 31/12/24 31/03
Slide 13: Robust Capital, Liquidity and Funding position
Robust Capital, Liquidity and Funding position CET 1 RATIO EVOLUTION: 13% TARGET IN THE "NO DANISH" SCENARIO CONFIRMED ANTICIPATION OF "NO DANISH" ANIMA IMPACT Q1 2025 INCLUDES: ▪ Basel 3+ impact 14.74% 15.05% 15.30% -53bps 14.76% 1 ▪ Banco BPM Vita Capital increase, in preparation of Anima transact
Slide 14: Key Highlights
Key Highlights 2
Slide 15: Q1 2025 Net Income at €511m
Q1 2025 Net Income at €511m (+37.9% Y/Y) MAIN TRENDS P&L HIGHLIGHTS, €m Q1 24 Q1 25 Chg. Y/Y €m +12.3% Net interest income 864 817 -5.5% 493 522 554 Net fees and commissions 522 554 6.2% NET FEES & COMMISSIONS Income from associates 30 40 Income from insurance 5 26 Q1 2023 Q1 2024 Q1 2025 «Core» Rev
Slide 16: NII at €817m in Q1 2025
NII at €817m in Q1 2025, with reduced sensitivity TREND OF NET INTEREST INCOME TREND OF COMMERCIAL SPREADS4 €m -5.5% Quarterly average, in % 4.29 4.12 4.00 3.60 3.25 COMMERCIAL SPREAD -4.5% 864 855 817 2.74 2.58 2.47 Asset spread 1.55 1.54 2.06 1.74 1.53 1.54 1.51 Liability spread Q1 24 Q2 24 Q3 24
Slide 17: Total Net Fees & Commissions up at €554m
Total Net Fees & Commissions up at €554m: +12% Q/Q and +6% Y/Y INVESTMENT PRODUCT FEES €m +15% 201 +32% 231 Y/Y TOTAL NET FEES & 175 Upfront fees 82 106 +29% 51 COMMISSIONS Running fees 119 124 125 +5% €m +6% Q1 24 Q4 24 Q1 25 Investment Product +12% 5.8 4.4 6.7 +15% placements (€ bn) 522 554 Placem
Slide 18: Cost/Income ratio reduced to 44%
Cost/Income ratio reduced to 44%, driven by rigorous cost discipline STAFF COSTS €m 432 449 434 TOTAL OPERATING COSTS Positive contribution from solidarity fund (~€60m in 2025, mostly from Q2), set to more than compensate new labour contract and €m hirings 669 661 645 Q1 24 Q4 24 Q1 25 OTHER ADMINIS
Slide 19: Enhanced asset quality supports low CoR
Enhanced asset quality supports low CoR CoR & NPEs: STEADILY DECLINING MIGRATION RATES CoR1 32bps 31/12/24 31/03/251 30bps Gross NPEs Default rate 1.07% 0.97% NPEs Gross €3.57bn €2.75bn -22.8% Y/Y € bn Cure rate 4.28% 5.92% Net 1.77 1.52 Net Default rate 0.98% 0.86% 31/03/24 31/03/25 UtP + PD Bad Lo
Slide 20: Optimization and diversification of Debt Securities portfolio
Optimization and diversification of Debt Securities portfolio TREND AND BREAKDOWN OF THE BANKING BOOK COMPOSITION BY COUNTERPARTY OF THE BANKING BOOK1 € bn € bn 31/03/24 31/12/24 31/03/25 46.7 41.2 41.3 Other2 8.2 8.5 8.4 14.5 FVOCI 10.6 12.6 Govies & 33.0 32.8 38.4 Supranational AC 32.2 30.6 28.7 I
Slide 21: Resilient trend in FVOCI debt reserves and solid Net Financial Result
Resilient trend in FVOCI debt reserves and solid Net Financial Result RESERVES OF DEBT SECURITIES NET FINANCIAL RESULT: AT FVOCI1 • STRONG CONTRIBUTION FROM HEDGING STRATEGIES Post-tax • POSITIVE EFFECT ON COST OF CERTIFICATES FROM INTEREST RATE REDUCTION €m 31/03/24 31/12/24 31/03/25 Total Net Fina
Slide 22: Strong liquidity & funding position
Strong liquidity & funding position CASH + UNENCUMBERED ASSETS: +€1.5bn Y/Y 31/12/24 31/03/25 € bn 145% 12-month 47.9 48.4 49.4 average Cash 0.5 0.6 0.5 9.0 11.0 11.3 132% 136% Depo facility with ECB LCR Eligible Assets • o/w €18.7bn securities 33.4 31.5 32.8 • o/w €14.1bn credit claims HQLA1 €26.9b
Slide 23: Robust capital position confirmed
Robust capital position confirmed CET 1 RATIO EVOLUTION Fully Phased % +92bps -77bps +16bps +7bps -76bps 15.30 15.05 +17bps +46bps -53bps 14.76 2 31/12/24 Q1 2025 Dividends DTAs FVOCI Participations Regulatory Managerial 31/03/25 BBPM Vita 31/03/25 performance with payout Reserves Headwinds Actions
Slide 24: Final Remarks
Final Remarks 3
Slide 25: Banco BPM + Anima: The Road Towards Our New Potential
BANCO BPM + ANIMA: THE ROAD TOWARDS OUR NEW POTENTIAL Q1 2025 Q1 2025 incl. full 2027 Q. Avg. (Strategic Plan incl. Anima €m actual consolidation of Anima2 full consolidation) Total revenues 1,476 1,601 1,590 o/w NII 817 817 787 o/w Net fees & commissions 554 688 695 Core revenues 1,437 1,561 1,560
Slide 26: Full confidence in reaching our objectives
FULL CONFIDENCE IN REACHING OUR OBJECTIVES BASED ON SUCCESSFUL TRACK RECORD PROVEN HISTORY OF SUCCESS FROM PREVIOUS PLANS: Q1 2025: LAYING THE FOUNDATIONS TO POSITIVE START ACCELERATES TARGETS ACHIEVEMENT CONFIRM OUR TRACK RECORD Previous plans FY performance vs. targets First quarter of the Plan 20
Slide 27: Q1 2025: Best quarterly performance leading to uplift in guidance
Q1 2025: BEST QUARTERLY PERFORMANCE LEADING TO SIGNIFICANT UPLIFT IN NET INCOME GUIDANCE Q1 2025 ALREADY ▪ NET INCOME €511m, +38% Y/Y HIGHER 2025 NET INCOME GUIDANCE ACCELERATING ▪ NET INCOME PF INCL. ANIMA FULL • TOTAL REVENUES: positive Y/Y trend, even VIS-À-VIS THE PACE CONSOLIDATION1 €549m assum
Slide 28: Q1 2025 Performance Details
Q1 2025 Performance Details 4
Slide 29: P&L: Quarterly comparison
P&L: Quarterly Reclassified income statement (€m) Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Chg. Q/Q Chg. Q/Q % comparison Net interest income 864.4 858.4 861.9 855.3 816.9 -38.4 -4.5% Income (loss) from invest. in associates carried at equity 30.3 44.6 31.1 45.6 39.8 -5.8 -12.8% Net interest, dividend and simi
Slide 30: Q1 25: PF incl. Anima full consolidation
Q1 25: PF incl. (€m) Q1 25 Q1 25 PF incl. Anima full Anima full consolidation Net interest income 816.9 817.5 Income (loss) from invest. in associates carried at equity 39.8 28.9 consolidation Net interest, dividend and similar income Net fee and commission income 856.7 554.0 846.4 688.0 Other net o
Slide 31: Balance Sheet
Balance Sheet Reclassified assets (€ m) Chg. Y/Y Chg. Q/Q 31/03/24 31/12/24 31/03/25 Value % Value % Cash and cash equivalents 9,877 12,125 12,170 2,293 23.2% 45 0.4% Loans and advances measured at AC 106,859 103,090 104,155 -2,704 -2.5% 1,066 1.0% - Loans and advances to banks 3,228 3,362 3,319 91
Slide 32: Strong and well diversified liability profile
Strong and well diversified liability profile, driven by successful issuance activity BONDS, CERTIFICATES & OTHER DEBT SECURITIES AT FV MREL REQUIREMENTS & BUFFERS outstanding as of 31/03/2025 as of 31/03/2025 Nominal amounts MREL as % of RWA, including Combined Buffer Requirement2 10.2% Senior Pref
Slide 33: Wholesale bond maturities and calls
Wholesale bond maturities and calls SENIORITY PROFILE OF WHOLESALE BOND MATURITIES1 & CALLS2 UNTIL YE 2027 € bn Calls 0.30 €0.70bn 0.40 Calls 0.40 €1.05bn 0.65 0.75 0.75 1.25 Maturities Calls 0.50 0.50 Maturities €3.25bn €0.5bn €2.37bn Maturities 1.25 €1.25bn 1.12 1.25 Apr.-Dec. 2025 FY 2026 FY 2027
Slide 34: Total Direct Funding from the Banking business
Total Direct Funding from the Banking business EVOLUTION OF TOTAL DIRECT FUNDING € bn Capital-protected Certificates & other 132.0 131.6 Debt Securities at FV 129.1 REPOs & Other Bonds 99.7 100.3 100.2 C/A, Sight & Time deposits - (Core Funding) (77.2%) (75.9%) (76.1%) (% Share on total) 31/03/2024
Slide 35: Indirect customer funding up at €117.2bn
Indirect customer funding up at €117.2bn: +6.3% Y/Y; +0.9% Q/Q ASSETS UNDER MANAGEMENT (AuM)1 ASSETS UNDER CUSTODY (AuC) € bn € bn +3.8% +9.7% -0.1% +2.2% 63.6 66.1 66.0 4.6 4.9 4.9 50.1 51.2 16.5 46.7 15.9 16.8 43.1 44.7 44.3 31/03/2024 31/12/2024 31/03/2025 31/03/2024 31/12/2024 31/03/2025 Funds &
Slide 36: Net Customer Loans at Amortized Cost
Net Customer Loans at Amortized Cost EVOLUTION OF NET CUSTOMER LOANS € bn -2.7% +1.1% Change Net Performing Customer Loans 31/03/24 31/12/24 31/03/25 In % Y/Y In % Q/Q 103.6 100.8 99.7 Core customer loans 96.5 94.8 97.2 0.7% 2.5% 1.8 1.6 1.5 - Medium/Long-Term loans 76.9 75.2 76.3 -0.7% 1.5% - Curre
Slide 37: NPE migration dynamics
NPE migration dynamics €m 354 296 Inflows from 212 233 238 Performing to NPEs Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 €m Outflows from NPEs 24 36 17 15 25 to Perf. Loans Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 €m Flows from UTP to 79 80 42 98 82 Bad Loans Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Data referred to Loans to Customer
Slide 38: Asset Quality details
Asset Quality details Loans to Customers at AC Gross exposures 31/03/2024 31/12/2024 31/03/2025 Chg. Y/Y Chg. Q/Q € m and % Value % Value % Bad Loans 1,547 1,160 1,140 -406 -26.3% -20 -1.7% UTP 1,931 1,552 1,549 -382 -19.8% -3 -0.2% Past Due 90 143 65 -26 -28.3% -78 -54.5% NPE 3,568 2,855 2,754 -814
Slide 39: Sustainability ESG Update – Key results in Q1 2025
Sustainability ESG Update – Key results in Q1 2025 Sustainability ESG KPIs Main Sustainability ESG Achievements Q1 2024 Q1 2025 ▪ SIGNIFICANT UPGRADES IN ESG RATINGS: Low-Carbon New M/L Term financing1 €1.3bn €2.4bn • ISS Corporate Rating upgraded from C- to C (Prime Status) in January 2025 • Transp
Slide 40: Transformational strategy in action
Transformational strategy in action: the acquisition of Anima adds a new piece to complete our diversified business model THE NEW PILLAR OF THE PLAN REORGANISATION OF THE NEW PARTNERSHIP IN INTEGRATION OF ASSET AS IS ALREADY PRE-MERGER Transactions in 2022/2023 INSURANCE BUSINESS IN 2022/23 Transact
Slide 41: Capital position fully loaded in detail
Capital position fully loaded in detail FULLY LOADED CAPITAL FULLY LOADED RWA 31/03/2024 31/12/2024 31/03/2025 31/03/2024 31/12/2024 31/03/2025 POSITION (€ m and %) COMPOSI TI ON (€ bn) CET 1 Capital 9,238 9,275 9,601 CREDI T & COUNTERPARTY RI SK 53.4 51.8 53.2 T1 Capital 10,627 10,665 10,991 Total
Slide 42: Definitions of Key Indicators Included in the Presentation
DEFINITIONS OF KEY INDICATORS INCLUDED IN THE PRESENTATION INDICATOR DEFINITION CASH + UNENCUMBERED ASSETS I ncluding assets receiv ed as collateral, net of accrued interests. Managerial data, net of haircuts CORE REVENUES Core Rev enues: NI I + Net Commissions + I ncome from Associates and I ncome
Slide 43: Contacts for Investors and Financial Analysts
Contacts for Investors and Financial Analysts Banco BPM Arne Riscassi +39 02 9477.2091 Registered Offices: Piazza Meda 4, I-20121 Milano, Italy Corporate Offices: Piazza Nogara 2, I-37121 Verona, Italy Silvia Leoni +39 045 867.5613 Carmine Padulese +39 02 9477.2092 investor.relations@bancobpm.it www
Banco Bpm Societa Ord — Q1 2025 Earnings Presentation on 6ix