A Clear and Simple Commercial Bank

1Q 24 Results

Siena, 7th May 2024

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This document was prepared by the Company solely for information purposes and for use in presentations of the Group's strategies and financials. The information contained herein provides a summary of the Group's 1Q 2024 financial statements and is not complete. 1Q 2024 complete interim financial statements will be available on the Company's website at www.gruppomps.it.

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To the extent applicable, any industry and market data contained in this document has come from official or third-party sources. Third-party industry publications, studies and surveys generally state that the data contained therein has been obtained from sources believed to be reliable, but that there is no guarantee of the fairness, quality, accuracy, relevance, completeness or sufficiency of such data. The Company has not independently verified such data contained therein. In addition, some industry and market data contained in this document may come from the Company's own internal research and estimates, based on the knowledge and experience of the Company's management in the market in which the Company operates. Any such research and estimates, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change without notice. Accordingly, undue reliance should not be placed on any of the industry or market data contained in this document.

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Pursuant to paragraph 2, article 154-bis of the Consolidated Finance Act, the Financial Reporting Officer, Mr. Nicola Massimo Clarelli, declares that the accounting information contained in this document corresponds to the document results, books and accounting records.

2

1Q24 Executive Summary

  • 1Q24 net profit at EUR 333mln, up +41.2% y/y, thanks to further improvement in operating performance; q/q comparison affected by extraordinary legal risks provisions release and end of the year positive net tax in 4Q23
  • Gross operating profit at EUR 551mln, up +32.9% y/y and +8.5% q/q, supported by higher revenues and lower costs. C/I at 46% vs 49% in 4Q23 and 53% in 1Q23
  • Revenues at EUR 1,013mln, up +15.2% y/y and +2.0% q/q, supported by strong dynamics of Wealth management fees (+25.7% q/q) and resilient NII
  • Operating costs down -0.6% y/y and -4.7% q/q thanks to non-HR costs ongoing optimization and processes streamlining (-11.0% y/y and - 4.1% q/q) offsetting the impact of labour contract renewal and inflation
  • Total commercial savings (1) up EUR +3.8bn q/q, with growth on both deposits and indirect funding, supported by continuously growing commercial activity; total net customer loans up +0.8% q/q
  • Cost of risk at 54bps in line with the guidance. Gross NPE ratio at 4.5% and net NPE ratio at 2.3%, both almost at the same level as year-end 2023; NPE coverage increased to 49.5% (+40bps q/q)
  • Sound liquidity position with counterbalancing capacity close to EUR 30bn and reduced reliance on ECB funding down to 9%
  • CET1 FL ratio at 18.2% pro forma, including 1Q24 net profit net of 50% dividend pay-out(2),buffer on Tier 1 ratio over 760bps

(1)

Direct and indirect funding

3

(2)

2024 dividend pay out guidance: 50% on pre-tax profit

Net profit

€/mln

+41.2%

1,123

236

339 (1)

466

(2)

333

318

1Q23

4Q23

1Q24

  • 1Q24 net profit at EUR 333mln, up +41.2% y/y, with also positive quarterly dynamics if adjusted for extraordinary legal risks provisions release and end of the year positive net tax in 4Q23

(1)

Positive net tax

4

(2)

Release of provisions for legal risks

Net operating profit

€/mln

+44.0%

+19.7%

444

371

309

1Q23

4Q23

1Q24

  • 1Q24 net operating profit at EUR 444mln, +44.0% y/y and +19.7% q/q, thanks to positive commercial dynamics, ongoing costs optimization and stable cost of risk

5

Gross operating profit

Operating income

€/mln

+15.2%

+2.0%

879

993

1,013

+1.4%

Gross operating profit

€/mln+32.9%

+8.5%

836

940

952

1Q23

4Q23

1Q24

Core revenues (NII + Fees)

Other financial revenues

Operating costs

€/mln

-0.6%

-4.7%

465

485

462

508

414

551

1Q23 4Q23 1Q24

1Q23

4Q23

1Q24

Cost/Income

53%

49%

46%

  • 1Q24 gross operating profit at EUR 551mln (+32.9% y/y and +8.5% q/q) thanks to both revenues and operating costs, despite the impact of labour contract renewal and inflation
  • C/I down at 46% from 49% in 4Q23 and 53% in 1Q23

6

Net interest income

+16.4%

-2.8%

505

604

587

1Q23

4Q23

1Q24

Lending rate

3.62%

4.44%

4.46%

Funding rate

0.38%

1.01%

1.16%

Spread

3.24%

3.43%

3.30%

-13bps

  • NII at EUR 587mln, up +16.4% y/y, NII quarterly dynamics (-2.8% q/q) affected by higher cost of deposits following volumes expansion partially compensated by benefits from higher ECB placement
  • Quarterly commercial spread resilient despite the increase of commercial funding rate

7

Net customer loans

Net loans

€/bn

-4.8%

+0.6%

66,3

65,4

64,4

62,8

63,1

33.3

31.9

32.7

30.6

31.0

33.0

5,6

32.7

5,4

32.5

5,8

32.1

6,1

32.1

6,2

Mar 23

Jun 23

Sep 23

Dec 23

Mar-24

  • Total net customer loans up +0.8% q/q, driven by small business and medium enterprises increase

Loans presented net of repos and NPEs

2023 figures have been recast on the basis of a different client segmentation and including the effect of 8 the merger of MPS CS and L&F

Total commercial savings

€/bn

Total commercial savings(1)

+7.8%

+2.4%

150.1

151.4

152.6

157.9

161.7

Q/Q

Y/Y

56,3

56,6

55,5

56,6

57,8

+2.2%

+2.8%

25,5

27,1

27,1

29,9

32,1

70,0

71,4

71,8

+2.5%

+10.7%

68,3

67,8

Mar 23

Jun 23

Sep 23

Dec 23

Mar 24

Deposits

AuC

AuM

  • Total commercial savings up EUR +3.8bn q/q on both deposits and indirect funding, supported by the continuously growing commercial activity

Managerial data

(1) Commercial savings, in indirect funding, not including certain institutional assets, as per business plan 9 targets

Italian govies portfolio

Italian govies portfolio breakdown

Italian govies portfolio at FVTOCI

€/bn

10.0

11.4

10.0

10.2

1,9

8.9

Mar 23

Jun 23

Sep 23

Dec 23

Mar 24

0,7

0,6

1,5

FVTOCI Duration

1,6

2,8

2,8

2,6

1,6

~2.1

~1.9

~1.8

~2.8

~2.6

(years)

7,1

7.7

FVTOCI Credit

6,4

6,6

6,8

spread sensitivity

-0.7

-0.6

-0.5

-0.5

-0.5

(€/mln)

Mar 23

Jun 23

Sep 23

Dec 23

Mar 24

Amortized cost portfolio

Financial assets FVTOCI

Financial assets FVTPL

  • Banking book portfolio (AC + FVTOCI) at EUR 9.3bn, in line with previous quarters, with progressive remix towards bonds booked in AC
  • FVTPL portfolio reflecting the typical fluctuation of the market making activity, with slightly negative exposure turned to positive at the beginning of April

Banking book: Amortized cost portfolio + Financial assets FVTOCI

FVTOCI credit spread sensitivity: before tax, for 1bp increase in the BTP/Bund spread

10

Figures from operational data management system. Nominal value for govies at AC; net position for govies at

FVTPL

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Banca Monte dei Paschi di Siena S.p.A. published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 06:18:25 UTC.