BPER Group 9M21 Results

9M21 Consolidated Results

Piero Luigi Montani, CEO

5 November 2021

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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 contents, nor should the completeness, correctness or accuracy of the information or opinions herein be relied upon. BPER Banca, its advisors and its representatives decline all liability (for negligence or any other cause) for any loss occasioned by the use of this document or its contents.

All forecasts contained herein have been prepared on the basis of specific assumptions which could prove wrong, in which case the actual data would differ from the figures given herein.

No part of this document may be regarded as forming the basis for any contract or agreement.

No part of the information contained herein may for any purpose be reproduced or published as a whole or in part, nor may such information be disseminated.

The Manager responsible for preparing the Company's financial reports, Marco Bonfatti, declares, in accordance with art. 154- bis, para. 2, of the "Consolidated Financial Services Act" (Legislative Order No. 58/1998), that the accounting information contained in this document corresponds to documentary records, ledgers and accounting entries.

Marco Bonfatti

Manager responsible for preparing the Company's financial reports

BPER Banca S.p.A., head office in Modena, via San Carlo, 8/20 - Tax Code and Modena Companies Register no. 01153230360 - Company belonging to the BPER BANCA GROUP VAT, VAT
no. 03830780361 - Share capital Euro 2,100,435,182.40 - ABI Code 5387.6 - Register of Banks no. 4932 - Member of the Interbank Deposit Guarantee Fund and of the National Guarantee
Fund - Parent Company of the BPER Banca S.p.A. Banking Group - Register of Banking Groups no. 5387.6 - Tel. [phone] - Telefax 059.2022033 - e-mail: [e-mail] - Certified	2
e-mail (PEC): [e-mail] - bper.it - istituzionale.bper.it.

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 transfer of these branches took effect for legal and accounting purposes on two different dates: 587 former UBI Banca branches were integrated on 22 February 2021 and 33 ISP branches were integrated on 21 June 2021. The assets and liabilities of these units have thereby been included in the scope of consolidation with pro-rata P&L contribution effective as of the same dates.

As a result, the accounting figures as at 30 September 2021 are not comparable with prior periods due to the change in the scope of consolidation.

Purchase Price Allocation (PPA)

9M21 results include the impact of the PPA carried out following the first accounting for the acquisition of the going concern, in accordance with IFRS 3 "Business Combinations". The difference between net equity and the purchase price attributable to the business unit acquired ("Badwill" or "Bargain Purchase") amounted to 966.9 €mln. The allocation process through the measurement at fair value of the assets and liabilities acquired as at the initial recognition date, led to the following main PPA adjustments:

• -337.5€mln on non-performing loans (in lower NPL fair value than the carrying amount acquired);
• +234.1 €mln on performing loans (in higher performing loan fair value than the carrying amount acquired);
• -37.1€mln on real estates properties (in book value writedowns on properties);
• -8.8€mln on provisions for Risk and Charges.

As a result of the PPA, a Bargain Purchase amount of 817.7 €mln was booked in the 9M21 P&L.

1. Including the Points of Operation of UBISS (a consortium company controlled by UBI Banca).

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Agenda

BPER GROUP CONSOLIDATED RESULTS

Executive summary

Balance sheet structure

Profit and loss

Capital adequacy

Final remarks

ANNEXES

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Executive summary

CONTINUED GROWTH IN CORE BUSINESS PROFITABILITY, COMBINED WITH A SIGNIFICANT IMPROVEMENT IN CREDIT QUALITY AND A

SOUND CAPITAL POSITION

Profitability

Volumes

Asset

Quality

Capital and

liquidity

• 9M21 net profit of 586.2 €mln. Excluding one-offs1, 9M21 pre tax profit increased to 417.1 €mln
• 3Q21 net profit of 84.4 €mln, after paying 80.0 €mln in banking system charges
• Annualised cost of risk settles at 70 bps (excluding additional LLPs) on the back of a particularly conservative approach to provisioning
• Excellent retention of commercial relations with customers from the going concern acquired
• Strong increase in AUM and life insurance inflows in 3Q21
• Outstanding Moratoria on loan payments amount to 3.0 €bn (-7.2% Q/Q). State-guaranteed loans increased to 6.9 €bn (+6.3% Q/Q)
• Gross and Net NPE ratio down further in 3Q21 to 5.5% and 2.6% respectively (5.7% and 2.8% in 2Q21)
• NPE coverage: 55.3% up vs. 51.8% in 2Q21
• NPE disposal target confirmed for a GBV of approx. 1 €bn by the end of 2021 (about 700 €mln already completed in 9M21)
• Pro-forma2 Fully Phased CET1 ratio at 13.7% with a large buffer vs. SREP requirement of 8.125%
• LCR >200% more than twice the 100% regulatory threshold. NSFR well above 100%

1. See slide 16.
2. The CET1 ratio Fully Phased pro-forma has been estimated excluding the effects of the transitional provisions in force and including the result for the period, thus simulating, in advance, the effects of the ECB's authorisation to include these profits in Own Funds pursuant to art. 26, para. 2 of the CRR.

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