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Co-operative Society by shares - founded in 1871

Head office and general management: I - 23100 Sondrio So - Piazza Garibaldi 16

Registered in the Register of Companies of Sondrio at no. 00053810149

Registered in the Register of Banks under no. 842.

Parent Bank of the Banca Popolare di Sondrio Banking Group, registered in the Register of Banking Groups under no. 5696.0

Registered in the Register of Cooperative Societies under no. A160536

Member of the Interbank Deposit Protection Fund

Tax code and VAT number: 00053810149

Share Capital € 1,360,157,331 - Reserves € 1,157,414,409 (data approved by the Shareholders' Meeting of 12/6/2020)

PRESS RELEASE

Board of Directors meeting of 9 November 2020:

approval of consolidated interim results as at 30 September 2020

Positive consolidated net result for the period of € 64.5 million

Absence of extraordinary positive items, costs related to the stabilisation of the banking

system equal to € 28.7 million.

CET1 Ratio fully-phased at 16.25%, Total Capital Ratio at 18.66%

Tangible support to households and businesses with new disbursements equal to € 4 billion

Liquidity indicators (LCR and NSFR) well above the regulatory requirements

"The strong resurgence of coronavirus infections recorded in the last month is again forcing everyone - Authorities, families and businesses - to deal with an emergency situation, increasing the already known complexities related to the market scenario. I am therefore pleased to say that despite the challenging environment the first nine months of the year, whose performance was the subject of in-depth examination today by the bank's Board of Directors, allow to report positive results. Our Group, thanks to its diversification and the commitment of its respective structures, has expressed adequate reaction skills in countering unexpected and persistent negative events. As far as core banking activities are concerned, the interest margin has shown an upward trend also compared to the previous quarter; commissions, up as well in the quarterly comparison,

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have held up well, recovering the effects of the lockdown. We recorded a further increase in loans, with new disbursements of € 4 billion, significantly fostered by the support measures launched by the Authority while the recovery of the performance of financial assets continued. The bank's capital position, already among the best in Europe, was thus further strengthened, with the CET1 ratio standing at 16.25%. By the end of the year, we will see the completion of the announced de-risking process, through a sale of approximately € 400 million of impaired loans, which will bring the NPL ratio in the area of 8%. Strengthened by its capital solidity and a particularly resilient business model, the bank is making extraordinary efforts to improve, in a digital-oriented evolutionary perspective, the set of operational processes, risk management and commercial effectiveness. It is a complex job in a complicated world but we are equipped with first- rate resources to face the challenges that await us."

[Mario Alberto Pedranzini CEO and General Manager of Banca Popolare di Sondrio]

The Board of Directors of Banca Popolare di Sondrio, co-operativejoint-stock company, chaired by Prof. Avv. Francesco Venosta, has today examined and approved the consolidated interim results as at 30 September 2020.

In a difficult macroeconomic framework for the Italian banking system, limiting ourselves to the context in which we operate, still affected by the Covid-19 emergency in its effects on core activities and related risks, the Banca Popolare di Sondrio Group achieved a positive net result. This confirms the sustainability of its business model, commercial effectiveness and the ability to continuously generate value for shareholders, achieving profits of € 64.5 million and a ROE of 3%. The already excellent capital position is also strengthened, with a CET1 ratio of 16.25% and the main liquidity indicators (LCR and NSFR) well above the regulatory threshold.

The bank was ready to provide adequate support to families and businesses affected by the negative economic effects of the pandemic, reaffirming the usual attention to the financial needs of its customers in the reference areas.

The moratorium measures introduced by the Government with the Cura Italia Law Decree of 17 March 2020, as well as those subject to an agreement at ABI level, were promptly activated. The bank also approved further concessions on a voluntary basis for

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the benefit of certain categories. Overall, as of 30/9/2020 almost 24,000 applications for a moratorium have been authorized for a residual debt of over € 4.5 billion.

The Group then promptly took action to apply the rules in support of the economy passed with the Liquidity Law Decree of 8 April 2020, subsequently amended and integrated, which provide for the granting of state guarantees for loans given to businesses affected by Covid-19.

As of 30/09/2020, 22,741 loans have been approved for a total value of € 2,054 million, mostly disbursed.

On the de-risking front, during the quarter the bank continued work to carry out a further sale of bad loans through the Luzzatti multi-originator transaction between cooperative banks. The target amount is equal to approximately € 400 million and the closing, which is expected to be completed by the end of the year, will allow to bring the gross NPL ratio to around 8%. This operation sees KPMG as industrial advisor, JP Morgan and Banca Akros as arranger and Credito Fondiario and Fire as servicer. The sales and continuous optimization of internal non-performing credit management processes contribute to developing the overall strategy for improving the quality of assets approved by the Board.

The Group is therefore well positioned to face the challenges that await it in the near future, with the aim of completing the ongoing strengthening process by continuing to manage the emergency situation which has unfortunately worsened.

Below are some brief considerations on the most important aspects as well as summary tables with the main aggregates of the income statement and balance sheet observed values for the period:

  • The net result for the period, at 30 September 2020, was positive for € 64.5 million, down by 47.7% compared to € 123.2 million in the reference period, mainly in consideration of the result of the activity in securities which albeit positive for € 4 million, showed a sharp decrease compared to € 101.8 million in the comparative period. The profitability of the core business (interest margin and net commissions) has instead grown overall, confirming the good work carried out with a spirit of service also during the lockdown.
  • Comprehensive consolidated profitability, calculated considering in addition to the net result for the period also other income components that have not passed through the income statement as they have been charged directly to equity, amounted to € 132.4 million, down by 16.8% compared to € 159.1 million in the reference period.
  • Capital ratios remain at the top of the banking sector. In the fully-phased version, the CET1 Ratio stands at 16.25%, the Tier 1 Ratio is equal to 16.29%, while the Total Capital ratio reaches 18.66%.

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  • New loans to households and businesses amounted to around € 4 billion (ca. +50%, compared to the reference period), confirming the important support provided to the real economy during the current crisis.
  • The stock of gross impaired loans fell sharply (to € 2,756 million; -26.1%;) as well as their incidence on total gross customer loans (gross NPL ratio of 9.03% from 12.58% at the end of 2019).
  • The coverage ratios of impaired credit, despite the physiological drop due to the sale transaction finalized in the half year, are confirmed at particularly high levels, even in comparison with the average at the System level. The coverage of total non- performing loans is 55.17% (from 57.83% at 31 December 2019); that referring only to positions classified as bad loans stands at 68.95% (from 70.5% at 31 December 2019) and finally that related to the unlikely to pay - showing an increase - stood at 42.09% (from 39.41% at 31 December 2019).
  • The cost of risk, which includes the estimated impacts of the NPL sale, stands at 0.59%, substantially in line with the 0.63% at 30 September 2019.
  • The Texas ratio, the ratio between total net impaired loans and net tangible equity, further decreased standing at 42.22% down from 56% at the end of December 2019.
  • Direct customer deposits amounted to € 33,193 million compared to € 32,622 million at the end of 2019 (+ 1.7%) and € 32,402 million at 30 September, 2019 (+ 2.4%); the indirect one stands at € 32,760 million compared to € 33,764 million last year (-3%) and € 32,983 million at September 30, 2019 (-0.7%). Insurance premiums amounted to € 1,690 million compared to € 1,608 million at 31 December 2019 (+ 5.1%) and € 1,527 million at 30 September 2019 (+ 10.7%).
  • Loans to customers amounted to € 28,841 million, an increase (+ 5.3%) compared to € 27,387 million at the end of 2019. In this context, the net increases attributable to unsecured mortgages and other transactions (at 8,733 million euros; + 37.6%; +2,388 million euros) and mortgage loans (at 11,083 million euros; + 4%; +425 million euros) were particularly positive.
  • The liquidity indicators, both short (Liquidity Coverage Ratio) and medium term (Net Stable Funding Ratio) are positioned on values of absolute tranquility, well above the minimum regulatory requirements.
  • The contribution made to the Group result by the subsidiaries and associates was positive.
Accounting data (in millions of euros)
Income statement results
30/09/2020
30/09/2019
Change
Interest margin
362.2
340.6
+6.4%
Net fees and commissions income
229.6
230
-0.2%
Result on financial activities *
4.0
101.8
-96%
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Operating income *
600
675.8
-11.2%
Net adjustments to loans and fin. assets *
-128.1
127.3
+0.7%
Profits/losses from contractual changes
-5.8
-2.2
+160.4%
without cancellation of the related
receivables
Operating costs *
-391.1
-385.8
+1.4%
Result before tax
93.4
181.9
-48.6%
Net result
64.5
123.2
-47.7%

*With regard to the results as at 30/09/2020 the aggregate "Net adjustments on loans and fin. assets " includes the loss of € 45.1 million related to the NPL disposal recognized in the income statement under the item gains/losses from the sale or repurchase of financial assets valued at amortized cost as well as € 2.7 million of charges, again connected with the sale, shown in other operating income/expenses.

Balance sheet results
30/09/2020
31/12/2019
Change
Direct customers deposits
33,193
32,622
+1.7%
Indirect customers deposits
32,760
33,764
-3.0%
Insurance deposits from customers
1,690
1,608
+5.1%
Total customer deposits
67,642
67,993
-0.5%
Loans to customers
28,841
27,387
+5.3%

The Group's economic performance

Consolidated net profit at 30 September 2020 amounted to € 64.5 million, down by 47.7% compared to the € 123.2 million of the first nine months of 2019.

Comprehensive consolidated profitability at 30 September 2020 amounted to € 132.4 million, down by 16.8% compared to € 159.1 million in the reference period.

The interest margin amounted to € 362.2 million, up 6.4% compared to 30 September 2019, mainly due to the benefits deriving from the funding obtained with the refinancing operations with the ECB and the positive volume effect resulting by the significant growth in new disbursements.

Net commissions from services amounted to € 229.6 million, substantially stable (- 0.2%) compared to € 230 million in the comparative period. Particularly positive, compared with 30 September 2019, the component relating to the activity of receiving and transmitting orders (+ 36.2%, + € 2.5 million).

Dividends collected amounted to € 4.1 million, increasing compared to the € 3.3 million of 30 September 2019.

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The result of financial activity was positive for € 4 million, a clear decrease compared to the € 101.8 million recorded in the comparison period.

The intermediation margin was therefore equal to € 600 million from the € 675.8 million of the comparative period (-11.2%).

Net adjustments to loans and financial assets amounted to € 128.1 million compared to the € 127.3 million of the comparative period (+ 0.7%). This item includes, following the reclassification as already mentioned above, the amount of € 45.1 million relating to losses for the sale of non-performing loans as part of the Diana operation as well as € 2.7 million of charges also related to the same disposal operation.

Without taking into account the reclassifications for the Diana sale, item 130 of the income statement, which concerns exposures to customers and banks in the form of both loans and securities, amounted to € 80.3 million and consists of € 79.3 million of adjustments relating to financial assets valued at amortized cost, while the component of net adjustments for credit risk relating to financial assets valued at fair value with an impact on comprehensive income recorded provisions for € 1 million on debt securities. Item 140, which records the profits/losses from contractual changes without cancellations deriving from the changes made to the contractual cash flows, in the reference period was negative for € 5.8 million compared to € 2.2 million in the first nine months of 2019.

The ratio between net adjustments on loans to customers (item 130a in the income statement plus the losses related to the NPL disposal, overall equal to € 127.1 million) and net loans to customers, the so-called cost of credit, is therefore equal to 0.59% compared to 0.63% at 30 September 2019.

Net income from financial management amounted to € 466.1 million, down by 14.7% compared with the € 546.3 million of the previous year.

Operating costs amounted to € 391.1 million and are up compared to the € 385.8 million of the reference period (+ 1.4%). This aggregate includes the charges envisaged for the stability of the banking system.

As for the individual components, administrative expenses amounted to € 394.8 million, an increase compared to the € 387.9 million of the comparative period (+ 1.8%), the latter normalized with the exclusion of the income provision of the pension fund which have a counter-entry for the same amount in other operating expenses/income.

In the context: the component of personnel expenses rose from € 182.2 million to €

  1. million (+ 1.2%), that relating to other administrative expenses increased from €
  1. million at 30 September 2019 to 210.5 million euros in the reference period (+ 2.3%). The aforementioned aggregate also includes the provisions related to the contributions to be paid to the National Resolution Fund and the FITD equal to € 28.7 million.
    The item net provisions for risks and charges showed provisions for € 3.7 million, compared to € 6 million in the reference period.

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The adjustments on tangible and intangible assets amounted to € 40 million, slightly decreasing compared to the € 41.2 million of the same period in 2019 (-3%).

The other operating expenses and income, for which reclassifications have been made as shown in the above table, amounted to € 47.5 million, compared to 49.3 million euros recorded in the reference period (-3.8%).

in light of the aforementioned reclassifications, the aggregate of operating costs amounted to € 391.1 million (+1.4%) with an incidence on the intermediation margin (cost-income ratio), equal to 65.18% from 57.09% as at 30 September 2019.

The operating profit therefore was € 75 million (-53.2%).

Profits/losses on equity investments and other investments showed a positive balance of € 18.4 million, down from € 21.4 million in the comparative period (-13.9%).

The overall pre-tax result therefore showed a profit of € 93.4 million (-48.6%).

Finally, after deducting income taxes of € 25.9 million, as well as minority interests of €

3.1 million, the net income of the period was € 64.5 million, showing a decrease compared to the reference period (-47.7%).

Balance sheet aggregates

In comparison with the volumes at the end of 2019: direct deposits amounted to € 33,193 million (+1.7%), indirect deposits amounted, at market values, to € 32,760 million (-3%), insurance deposits to € 1,690 million (+5.1%). Total customer deposits therefore came to € 67,642 million (-0.5%).

Net loans to customers, the sum of volumes measured at amortized cost and assets measured at fair value through profit or loss, amounted to € 28,841 million, up from € 27,387 million at the end of 2019 (+5.3%).

Net non-performing loans amounted to € 1,236 million, a decrease compared to € 1,574 million at 31 December 2019 (-21.5%). The incidence of the same on the total net loans is equal to 4.28%, a decrease compared to 5.75% at the end of 2019. The level of coverage remains at particularly consistent values, equal to 55.17%. In this context, net non-performing loans amount to € 436 million (-34.8%) with an incidence on total loans to customers of 1.51% compared to 2.44% at the end of 2019. The coverage ratio was 68.95% compared to 70.5% at the end of 2019. Taking into account the amounts passed to the income statement in previous years, the coverage of these receivables stood at 83.63%.

Net unlikely to pay amounted to 751 million euros (-11.5%), with a coverage ratio of 42.09%, compared to 39.41% at the end of 2019. The incidence of the same on total loans drops to 2.61% compared to 3.10% at the end of 2019. Net overdue and/or impaired overdraft exposures amounted to € 49 million (-14.5%) with a coverage ratio

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which stood at 12.85%, compared to 14.23 at the of 2019, and an incidence on total loans equal to 0.17%

Financial assets, represented by proprietary securities and derivatives, amounted to € 10,234 million, increasing (+ 511 million; +5.3%) if compared to the volumes recorded at the end of the previous year. The amount of the portfolio of financial assets valued at amortized cost increased further from € 6,517 million at the end of 2019 to € 6,944 million at 30 September 2020 (+6.5%), accounting for around 68% of total financial assets. On the other hand, the size of the portfolio, consisting of financial assets measured at fair value with an impact on overall profitability, decreased from € 2,591 million at the end of 2019 to € 2,564 million at 30 September 2020 (-1.1%). The total volume of Italian government bonds amounted to € 5,989 million, slightly increasing (+0.6%) compared to €5,951 million at the end of 2019.

Equity investments amounted to € 296 million from € 295 million at 31 December 2019 (+0.3%).

The Group's exposure to the ECB under TLTRO III amounts to a total of € 8,068 million. There are no other forms of financing with the Eurosystem.

As at 30 September 2020, both short-term(LCR-Liquidity Coverage Ratio) and medium/long-term(NSFR-Net Stable Funding Ratio) liquidity indicators were well above the minimum requirement for the current year (100%).

The Group can always rely on a substantial portfolio of refinanceable assets which, net of the applied haircuts, amounted to € 14,260 million, of which € 5,550 million (39%), represented by unencumbered securities.

Consolidated own equity, including profit for the period amounted at 30 September 2020 to € 2,956 million, an increase of € 114 million compared to the value at the end of 2019.

Consolidated regulatory own funds at 30 September 2020 stood at € 3,262 million, compared with € 3,260 million recalculated as at 31 December 2019 (+0.1%).

The capital ratios for regulatory purposes at 30 September 2020 are calculated on the basis of supervisory own funds which do not include profits for the period. In fact, it should be noted that the equity and economic situation has not been subject to a limited audit activity nor has the profit been verified for the purpose of inclusion in the primary class 1 capital. These coefficients are equal to:

  • CET 1 ratio: 16.34% (phased-in), 16.25% (fully phased);
  • Tier 1 ratio: 16.38.% (phased-in), 16.29% (fully phased);
  • Total Capital ratio: 18.74% (phased-in), 18.66% (fully phase

The Leverage Ratio at 30 September 2020 was 6.23%, applying the transitional criteria in force for 2019 (phased in), and 5.46%, under the fully phased regime.

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As at 30 September 2020, the banking group had 3,305 employees. 97 new recruits were made in 2020.

To date, the company's shareholder structure has 162,525 members.

With reference to the foreseeable evolution of operations, it must be considered that the recent serious resurgence of the Covid-19 pandemic has suddenly subverted the forecasts that foreshadowed the consolidation of a general economic recovery for the last months of the year. We are therefore in a scenario where the elements of uncertainty are increasingly serious and prevalent. As far as our Group is concerned, we will continue our business by consolidating the ability to react to unforeseen events demonstrated so far. Given the financial strength and excellent liquidity position, we will do everything possible to meet the needs of families and businesses while safeguarding the quality of assets. It is therefore reasonable to expect a further positive increase in the characteristic banking activity. So that, although unable to predict the performance of the financial markets and in the absence of particularly negative signals about credit quality, it is confident that it will be able to achieve positive income results.

The consolidated interim results' report as at 30 September 2020 will be published on the company website "www.popso.it" and deposited on the authorized storage mechanism eMarket Storage "www.emarketstorage.com" and at the bank's head office.

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DECLARATION

The manager responsible for preparing the company's financial reports, Maurizio Bertoletti, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the documented results, books and accounting records.

Signed:

Maurizio Bertoletti, manager responsible for preparing the company's financial reports.

Company contacts:
Investor Relations
External relations
Dr. Michele Minelli
Rag. Paolo Lorenzini
0342-528.745
0342-528.212
michele.minelli@popso.it
paolo.lorenzini@popso.it

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Sondrio, 9 November 2020

Attachments:

summary of the main consolidated results;

main consolidated financial statements indicators; consolidated aggregates and credit quality indicators; consolidated aggregates and capital adequacy indicators; consolidated balance sheet and income statement formats. reclassified consolidated income statement.

quarterly evolution of the reclassified consolidated income statement; consolidated comprehensive income statement.

The English translation is provided solely for the benefit of the reader and in the case of discrepancies the Italian version shall prevail.

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RESULTS IN BRIEF

(in million of euro)

Balance sheet
30/09/2020
31/12/2019
Change %
Loans to customers
28,841
27,387
5.31
Loans and receivables with customers measured at amortised cost
28,466
27,096
5.06
Loans and receivables with customers measured
375
291
28.66
at fair value through profit or loss
Loans and receivables with banks
2,894
1,067
171.11
Financial assets that do not constitute loans
10,234
9,723
5.26
Equity investments
296
295
0.47
Total assets
47,457
41,146
15.34
Direct funding from customers
33,193
32,622
1.75
Indirect funding from customers
32,760
33,764
-2.97
Direct funding from insurance premiums
1,690
1,608
5.13
Customer assets under administration
67,642
67,993
-0.52
Other direct and indirect funding
15,580
10,068
54.74
Equity
2,956
2,842
4.02
Income statement
30/09/2020
30/09/2019
Change %
Net interest income
362
341
6.36
Total income *
600
676
-11.21
Profit from continuing operations
93
182
-48.62
Profit (loss) for the period
64
123
-47.70
Capital ratios
30/09/2020
31/12/2019
CET1 Capital ratio (phased-in)
16.34%
15.75%
Total Capital ratio (phased-in)
18.74%
18.64%
Free capital
1,870
1,832
Other information on the banking group
30/09/2020
31/12/2019
Number of employees
3,305
3,299
Number of branches
366
365

* Total income has been shown as in the reclassified summary income statement

Banca Popolare di Sondrio

ALTERNATIVE PERFORMANCE INDICATORS

Key ratios
30/09/2020
31/12/2019
Equity/Direct funding from customers
8.91%
8.71%
Equity/Loans and receivables with customers
10.25%
10.38%
Equity/Financial assets
28.88%
29.23%
Equity/Total assets
6.23%
6.91%
Profitability indicators
30/09/2020
30/09/2019
Cost/Income ratio *
65.18%
57.09%
Net interest income/Total income *
60.37%
50.40%
Administrative expenses/Total income *
65.81%
57.40%
Net interest income/Total assets
0.76%
0.78%
Net financial income/Total assets *
0.98%
1.25%
Asset quality indicators
30/09/2020
31/12/2019
Texas ratio
42.22%
56.00%
Net non-performing loans/Equity
14.74%
23.51%
Net non-performing loans/Loans and receivables with customers
1.51%
2.44%
Loans and receivables with customers/Direct funding from customers
86.89%
83.95%
Cost of credit *
0.59%
0.78%

* Ratios have been calculated using the values as shown in the reclassified summary income statement

Banca Popolare di Sondrio

LOANS TO CUSTOMERS - NON PERFORMING AND PERFORMING EXPOSURES 30/09/2020

(in thousands of euro)
Gross exposure
Impairment
Net exposure
Coverage
losses
Non performing exposures
(9.03%)
2,756,426
1,520,807
(4.28%)
1,235,619
55.17%
of which Bad loans
(4.6%)
1,403,269
967,499
(1.51%)
435,771
68.95%
of which Unlikely to pay
(4.25%)
1,297,479
546,155
(2.61%)
751,324
42.09%
of which Past due
(0.18%)
55,678
7,153
(0.17%)
48,524
12.85%
Performing exposures
(90.97%)
27,765,269
159,480
(95.72%)
27,605,788
0.57%
Total loans to customers
(100%)
30,521,695
1,680,288
(100%)
28,841,407
5.51%

LOANS TO CUSTOMERS - NON PERFORMING AND PERFORMING EXPOSURES 31/12/2019

(in thousands of euro)
Gross exposure
Impairment
Net exposure
Coverage
losses
Non performing exposures
(12.58%)
3,732,063
2,158,087
(5.75%)
1,573,976
57.83%
of which Bad loans
(7.63%)
2,264,503
1,596,444
(2.44%)
668,059
70.50%
of which Unlikely to pay
(4.72%)
1,401,400
552,225
(3.1%)
849,175
39.41%
of which Past due
(0.22%)
66,160
9,417
(0.21%)
56,742
14.23%
Performing exposures
(87.42%)
25,937,252
123,831
(94.25%)
25,813,421
0.48%
Total loans to customers
(100%)
29,669,315
2,281,918
(100%)
27,387,397
7.69%

Banca Popolare di Sondrio

CAPITAL RATIOS 30/09/2020

(in thousands of euro)
Phased-in
Fully-phased
Total own funds
3,262,151
3,245,261
of which Common Equity Tier 1 capital (CET1)
2,843,354
2,826,464
of which Additional Tier 1 capital (AT1)
7,155
7,155
of which Tier 2 capital (T2)
411,643
411,643
RWA
17,405,792
17,395,298
CET 1 ratio
16.34%
16.25%
Tier 1 ratio
16.38%
16.29%
Total capital ratio
18.74%
18.66%
Leverage ratio
6.23%
5.46%

CAPITAL RATIOS 31/12/2019

(in thousands of euro)
Phased-in
Fully-phased
Total own funds
3,260,436
3,256,064
of which Common Equity Tier 1 capital (CET1)
2,762,877
2,758,505
of which Additional Tier 1 capital (AT1)
9,191
9,191
of which Tier 2 capital (T2)
488,368
488,368
RWA
17,224,426
17,223,800
CET 1 ratio
16.04%
16.02%
Tier 1 ratio
16.09%
16.07%
Total capital ratio
18.93%
18.90%
Leverage ratio
6.13%
6.12%

Own funds recalculated on the basis of the decision, recommended by the European Central Bank, to suspend or cancel the payment of dividends

Banca Popolare di Sondrio

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(in thousands of euro)

10.
CASH AND CASH EQUIVALENTS
4,346,768
1,826,427
20.
FINANCIAL ASSETS AT FAIR VALUE
THROUGH PROFIT OR LOSS
1,101,313
905,705
a) financial assets held
216,060
214,466
for trading
b) financial assets designed at fair value
-
-
c) financial assets mandatorily at fair value
885,253
691,239
through profit or loss

30. FINANCIAL ASSETS AT FAIR VALUE THROUGH

OTHER COMPREHENSIVE INCOME
2,563,932
2,591,229
40.
FINANCIAL ASSETS AT
AMORTISED COST
37,791,861
34,200,066
a) loans and receivables with banks
2,894,289
1,067,458
b) loans and receivables with customers
34,897,572
33,132,608
50.
HEDGING DERIVATIVES
-
-

60. FAIR VALUE CHANGE IN HEDGED

FINANCIAL ASSETS (+/-)
-
-
70.
EQUITY INVESTMENTS
295,617
294,609
80.
TECHNICAL RESERVES OF REINSURERS
-
-
90.
PROPERTY, EQUIPMENT AND INVESTMENT PROPERTY
530,859
548,172
100.
INTANGIBLE ASSETS
29,552
31,186
of which:
12,632
12,632
- goodwill
110.
TAX ASSETS
412,147
419,295
a) current
18,855
4,971
b) deferred
393,292
414,324

120. NON-CURRENT ASSETS AND DISPOSAL

GROUPS HELD FOR SALE
-
-
130. OTHER ASSETS
384,538
329,500
TOTAL ASSETS
47,456,587
41,146,189

Banca Popolare di Sondrio

10. FINANCIAL LIABILITIES AT

AMORTISED COST
42,838,866
36,949,458
a) due to banks
9,646,364
4,327,709
b) due to customers
30,384,206
29,816,997
c) securities issued
2,808,296
2,804,752
20.
FINANCIAL LIABILITIES HELD FOR TRADING
40,302
67,019
30.
FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE
-
-
40.
HEDGING DERIVATIVES
7,805
11,320

50. FAIR VALUE CHANGE IN HEDGED

FINANCIAL LIABILITIES (+/-)
-
-
60.
TAX LIABILITIES
37,060
46,050
a) current
3,827
16,843
b) deferred
33,233
29,207

70. LIABILITIES ASSOCIATED WITH NON-CURRENT ASSETS

HELD FOR SALE AND DISCONTINUED OPERATIONS
-
-
80. OTHER LIABILITIES
1,165,799
821,434

90. PROVISION FOR POST-EMPLOYMENT

BENEFITS
42,472
43,789
100.
PROVISIONS FOR RISKS AND CHARGES:
269,956
270,298
a) loans commitments and
50,120
43,411
b) pensions and similar
179,751
179,965
c) other provisions
40,085
46,922
110.
TECHNICAL RESERVES
-
-
120.
VALUATION RESERVES
61,095
(6,885)
121.
OF WHICH RELATED TO DISCONTINUED OPERATIONS
-
-
130.
REDEEMABLE SHARES
-
-
140.
EQUITY INSTRUMENTS
-
-
150.
RESERVES
1,416,833
1,297,442
155.
OF WHICH INTERIM DIVIDENDS
-
-
160.
SHARE PREMIUM
79,005
79,005
170.
SHARE CAPITAL
1,360,157
1,360,157
180.
TREASURY SHARES (-)
(25,376)
(25,374)
190.
EQUITY ATTRIBUTABLE TO MINORITY INTERESTS
98,163
95,041
200.
PROFIT (LOSS) FOR THE PERIOD (+/-)
64,450
137,435
TOTAL LIABILITIES AND EQUITY
47,456,587
41,146,189

Banca Popolare di Sondrio

CONSOLIDATED INCOME STATEMENT

(in thousands of euro)

10.
INTEREST AND SIMILAR INCOME
438,913
434,288
of which: interest calculated
using the effective interest method
432,930
429,170
20.
INTEREST AND SIMILAR EXPENSE
(76,701)
(93,723)
30.
NET INTEREST INCOME
362,212
340,565
40.
FEE AND COMMISSION INCOME
241,976
246,114
50.
FEE AND COMMISSION EXPENSE
(12,350)
(16,080)
60.
NET FEE AND COMMISSION INCOME
229,626
230,034
70.
DIVIDENDS AND SIMILAR INCOME
4,108
3,339
80.
NET TRADING INCOME
(11,128)
53,869
90.
NET HEDGING INCOME
92
43
100.
NET GAINS FROM SALES OR REPURCHASES OF:
(22,430)
27,967
a) financial assets at amortized cost
(33,980)
19,575
b) financial assets at fair value
through other comprehensive income
11,509
8,015
c) financial liabilities
41
377
110.
NET GAINS ON FINANCIAL ASSETS
(7,616)
19,965
AND LIABILITIES AT FAIR VALUE
THROUGH PROFIT OR LOSS
a) financial assets and liabilities designated at fair value
-
-
b) other financial assets mandatorily
measured at fair value
(7,616)
19,965
120.
TOTAL INCOME
554,864
675,782

130. NET IMPAIRMENT LOSSES

FOR CREDIT RISK RELATING TO:
(80,341)
(127,260)
a) financial assets at amortized cost
(79,326)
(128,758)
b) financial assets at fair value
140.
through other comprehensive income
(1,015)
1,498
NET GAINS FORM CONTRACTUAL CHANGES
WITHOUT DERECOGNITION
(5,779)
(2,219)
150.
NET FINANCIAL INCOME
468,744
546,303
160.
NET INSURANCE PREMIUMS
-
-

170. OTHER NET INSURANCE

INCOME (EXPENSE)
-
-

180. NET FINANCIAL INCOME AND

INSURANCE INCOME
468,744
546,303
190.
ADMINISTRATIVE EXPENSES:
(394,834)
(394,481)
a) personnel expenses
(184,338)
(188,813)
b) other administrative expenses
(210,496)
(205,668)
200.
NET ACCRUALS TO PROVISIONS
FOR RISKS AND CHARGES
(3,682)
(6,034)
a) commitments for guarantees given
(6,681)
1,147
b) other net provisions
2,999
(7,181)
210.
DEPRECIATION AND NET IMPAIRMENT LOSSES ON
(28,371)
(28,819)
PROPERTY, EQUIPMENT AND INVESTMENT PROPERTY
220.
AMORTISATION AND NET IMPAIRMENT LOSSES
(11,641)
(12,425)
ON INTANGIBLE ASSETS
230.
OTHER NET OPERATING INCOME
44,817
55,932
240.
OPERATING COSTS
(393,711)
(385,827)
250.
SHARE OF PROFITS OF INVESTEES
18,923
21,245

260. NET FAIR VALUE LOSSES ON PROPERTY,

EQUIPMENT AND INTANGIBLE ASSETS MEASURED
(518)
133
270.
GOODWILL IMPAIRMENT LOSSES
-
-
280.
NET GAINS ON SALES OF INVESTMENTS
9
15
290.
PRE-TAX PROFIT FROM
CONTINUING OPERATIONS
93,447
181,869

300. TAXES ON INCOME FOR THE YEAR

310.
FOR CONTINUING OPERATIONS
(25,881)
(57,178)
POST-TAX PROFIT FROM
320.
CONTINUING OPERATIONS
67,566
124,691
POST-TAX PROFIT (LOSS) FROM
DISCONTINUED OPERATIONS
-
-
330.
NET PROFIT (LOSS) FOR THE PERIOD
67,566
124,691
340.
NET (PROFIT) LOSS OF THE PERIOD ATTRIBUTABLE
350.
TO MINORITY INTERESTS
(3,116)
(1,448)
NET PROFIT (LOSS) FOR THE PERIOD ATTRIBUTABLE
TO THE OWNERS OF PARENT BANK
64,450
123,243
EARNINGS (LOSS) PER SHARE
0.142
0.272
DILUTED EARNINGS (LOSSES) PER SHARE
0.142
0.272

Banca Popolare di Sondrio

RECLASSIFIED CONSOLIDATED SUMMARY INCOME STATEMENT

(in thousands of euro)

Net interest income Dividends and similar income Net fee and commission income Net gains on financial assets Total income

Net impairment losses

Net gains form contractual changes without derecognition Net financial income

Personnel expenses

Other administrative expenses Other net operating income

Net accruals to provisions for risks and charges

Depreciation and amortisation on tangible and intangible assets Operating costs

Operating result

Share of profits of investees and net gains on sales of investments Pre-tax profit from continuing operations

Income taxes

Net profit (loss) for the period

Net (profit) loss of the period attributable to minority interests

Net profit (loss) for the period attributable to the owners of Parent

30/09/2020
30/09/2019
(+/-)
% change
362,212
340,565
21,647
6.36
4,108
3,339
769
23.03
229,626
230,034
-408
-0.18
4,023
101,844
-97,821
-96.05
599,969
675,782
-75,813
-11.22
-128,097
-127,260
-837
0.66
-5,779
-2,219
-3,560
160.43
466,093
546,303
-80,210
-14.68
-184,338
-182,199
-2,139
1.17
-210,496
-205,668
-4,828
2.35
47,468
49,318
-1,850
-3.75
-3,682
-6,034
2,352
-38.98
-40,012
-41,244
1,232
-2.99
-391,060
-385,827
-5,233
1.36
75,033
160,476
-85,443
-53.24
18,414
21,393
-2,979
-13.93
93,447
181,869
-88,422
-48.62
-25,881
-57,178
31,297
-54.74
67,566
124,691
-57,125
-45.81
-3,116
-1,448
-1,668
115.19
64,450
123,243
-58,793
-47.70

Notes: The result of financial activities is made up of the sum of items 80-90-100 and 110 in the income statement, reclassified with regard to the results as at 30/09/2020 of disposal losses for € 45.105 million included in the income statement under the item net gains/losses from sales or repurchases of financial assets at amortised cost and shown on the item net impairment losses. In the last aggregate has been reclassified also € 2.651 million of charges still connected with the disposal transaction and included in the item other operating income/expenses.

In order to standardize the scope of comparison, for the results as at 30/09/2019 the personnel expenses and other operating income have been reclassified, netting them off against the proceeds of the retirement employees fund of € 6.614 million.

Banca Popolare di Sondrio

RECLASSIFIED CONSOLIDATED QUARTERLY INCOME STATEMENTS

(in million of euro)
Q3 - 2020 Q2 - 2020 Q1 - 2020 Q4 - 2019 Q3 - 2019

Net interest income Dividends and similar income Net fee and commission income Net gains on financial assets Total income

Net impairment losses

Net gains form contractual changes without derecognition Net financial income

Personnel expenses

Other administrative expenses Other net operating income

Net accruals to provisions for risks and charges

Depreciation and amortisation on tangible and intangible assets Operating costs

Operating result

Share of profits of investees and net gains on sales of investments Pre-tax profit from continuing operations

Income taxes

Net profit (loss) for the period

Net (profit) loss of the period attributable to minority interests

Net profit (loss) for the period attributable to the owners of Parent

129.2
120.9
112.2
119.8
110.5
1.2
2.2
0.7
0.2
0.2
77.4
73.3
78.9
92.2
77.5
19.2
44.0
-59.1
15.2
58.5
226.9
240.4
132.7
227.5
246.7
-32.9
-30.8
-64.4
-85.3
-21.6
-0.4
-0.1
-5.3
-1.1
-0.8
193.6
209.5
63.0
141.2
224.3
-62.6
-59.0
-62.8
-63.0
-61.6
-65.2
-67.1
-78.2
-66.1
-56.7
18.2
13.1
16.2
18.4
16.2
-3.2
-4.3
3.8
-3.4
-5.4
-13.8
-13.4
-12.8
-17.8
-15.0
-126.6
-130.7
-133.7
-131.9
-122.4
67.0
78.7
-70.7
9.3
101.9
4.9
7.3
6.2
3.9
11.7
71.9
86.1
-64.5
13.1
113.6
-20.6
-24.4
19.2
1.7
-36.4
51.3
61.6
-45.4
14.8
77.3
-1.3
-0.7
-1.1
-0.6
-1.0
50.0
60.9
-46.5
14.2
76.2

Notes: The result of financial activities is made up of the sum of items 80-90-100 and 110 in the income statement, reclassified with regard to the results as at Q2 - 2020 of disposal losses for € 45.1 million included in the income statement under the item net gains/losses from sales or repurchases of financial assets at amortised cost and shown on the item net impairment losses. In the last aggregate, again for the results for Q2 - 2020, has been reclassified also € 2.7 million of charges still connected with the disposal transaction and included in the item other operating income/expenses.

In order to standardize the scope of comparison, for the results for the quarters of the year 2019, the personnel expenses and other operating income have been reclassified, netting them off against the proceeds of the retirement employees fund.

Banca Popolare di Sondrio

STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME

(in thousands of euro)

ITEMS

10. Profit (loss) for the period

Other income items net of income taxes that will not be reclassified to profit or loss

20. Variableincome -yield securities measured at fair value through other comprehensive

70. Defined-benefit plans

90. Share of valuation reserves of equity investments valued at net equity

Other income items net of income taxes that may be reclassified subsequently to profit or loss

110. Exchange differences

140. Financial assets (other than variable-yield securities) measured at fair value through other comprehensive income

160. Share of valuation reserves of equity investments valued at net equity

  1. Total other income items net of income taxes
  1. Comprehensive income (Item 10+170)
  1. Consolidated comprehensive income attributable to minority interests
  1. Consolidated comprehensive income attributable to the Parent Company

30/09/2020 30/09/2019

67,566 124,691

67,258 (21,565)

(1,666) (12,454)

  1. (11)
  1. -
    4,706 65,566

(1,699) 4,335

67,986 35,871

135,552 160,562

(3,122) (1,419)

132,430 159,142

Banca Popolare di Sondrio

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Banca Popolare di Sondrio Scpa published this content on 09 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 November 2020 14:31:04 UTC