banco bpm group
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February 2022
Banco BPM Group
2
1. GROUP PROFILE 3
2. GROUP FY 2021 RESULTS PRESENTATION 8
3. STRATEGIC PLAN 2021-2024 55
AGENDA
Agenda - Banco BPM Group
3
Market share ≥ 15% in 17 provinces, including the location in some highly important industrial clusters
GEOGRAPHIC DISTRIBUTION (ITALY)
North: Centre: South:77% 14% 9%
Leadership in the wealthiest regions of Italy
Lombardy Veneto Piedmont
# branches: # branches: # branches:
557 175 167
Market share: Market share: Market share:
12.7% 8.0% 9.5%
2° 5° 4°
Source for comparison with peers: Studies and Research on Bank of Italy Supervisory Reports as at 31/12/2021.Notes: 1. In addition to the core retail franchise of the Parent Bank (1,427 outlets), this number includes also 55 privatebanking branches of Banca Aletti as well as 26 other Group outlets as at 31/12/2021. 2. Market shares and rankingindicated on the basis of the number of branches as at 31/12/2021, excluding ICCREA and Cassa Centrale Banca.
BANCO BPM: GEOGRAPHICAL FOOTPRINT
NUMBER OF BRANCHES AND NATIONAL MARKET SHARES2
# Customers: ~4 million
# Branches1: 1,508
Market share2: 6.9%
1. Group Profile
2 - 5% >10%5 - 10%0 - 2%
Regional market share1:
1607.2%
1679.5%
7612.7%
343.0%
1378.4%
754.1%
10.2%
10.1%
55712.7%
1758.0%
81.3%
343.4%
71.0%
57.4%
51.4%
55.7%
21.1%
10.3%
575.0%
10.2%
4
608556
124 101 9039 37
465438
10979 79
33 31
64 62
137 6
3 3
1069
917
200138 136
68 55
AMONG THE TOP PLAYERS IN THE ITALIAN BANKING INDUSTRY
#3#3 #3#3
TOTAL ASSETS
€ bn
SHAREHOLDERS' EQUITY
€ bn
NET CUSTOMER LOANS
€ bn
DIRECT FUNDING1
€ bn
#3#3#3#3
Note: 1. Capital-protected Certificates included.For ISP, the direct funding related to theInsurance business is excluded. 1. Group Profile
Data as at 31 December 2021.The benchmark includes: UCI, ISP, MPS, BPER, PopSo,Credem. From 1 July 2021, Credem data includesthe effects of the merger of C.R.Cento
5
AssetManagement
BANCO BPM: GROUP STRUCTURE AS AT 31/12/2021
Private & InvestmentBanking
BancassuranceConsumer
CreditLeasing
& Factoring
100%
100%
19.0%
35.0%
19.4% 39.0% 39.2%
40.0%
100%
39.5%Fully consolidated
Associates
1,427 Retail branches managed by8 Territorial Divisions as at 31/12/2021
to which 55 Private Bank branches and 26 otherGroup outlets are added, for a total Group
franchise of 1,508 branches
Specialisation of Banca Akros in CIB and of Banca Aletti in Private Banking
JV in Life Insurance- branded as
35.0%
JV in Non-LifeInsurance - branded
as
PARENT BANK
1. Group Profile
1
Note: 1. For the evolution of the JVs, see the dedicated section of the Strategic Plan 2021-2024 (slides 97-99)
On March 1, 2022, Banco BPMsigned a share purchaseagreement for the transfer toBanca Popolare di SondrioS.p.A. of its overall stake, equalto 39.5% of the share capital,held in Factorit S.p.A.
6
SUCCESSFULL TURNAROUND SINCE THE MERGER
1. Group Profile
Merger Plan2019 YE Target
Achievedas at YE 2019
- GROSS NPE €30.0BN2 €23.2BN3 €10.1BN €6.4BN
- GROSS NPE RATIO 24.1%2 17.5%3 9.1% 5.6%
- NET NPE RATIO 14.7% 11.1% 5.2% 3.0%
- BRANCHES (#) 2,295 2,082 1,727 1,427
- HEADCOUNT (#) 24,680 22,560 21,941 20,437
- TOTAL OPERATING COST €2,971M5 €2,858M5 €2,604M €2,516M
- COST REDUCTION SINCE 2015 -€228M -€482M -€570M
RATIONALIZATION
COST EFFICIENCY
DERISKING
CAPITAL POSITION
Notes: 1. CET 1 as at 31/12/2019 post suspension of 2019 dividend. 2. IAS 39 data. Restated for managerial purposes (inclusion of a portion of write-offs, in coherence withthe restatement done in 2017). 3. Targets based on GBV, corresponding to original Nominal targets (incl. write-offs) of €23.9bn and of 17.9%, respectively 4. NPE ratioscalculated as per EU Transparency Exercise. 5. Proforma operating cost target, updated to take account of the perimeter change. The data indicated for 2016 as well asfor the 2019 target and for the effective 2019 data are affected by different accounting effects.
31/12/2016
- CET 1 RATIO FL 11.4% 12.9% 13.0%1 13.4%
Achievedas at FY 2021
€3,086M in FY 2015 (pre-merger level)
7
AGENDA
Agenda - Banco BPM Group
1. GROUP PROFILE 3
2. GROUP FY 2021 RESULTS PRESENTATION 8
3. STRATEGIC PLAN 2021-2024 55
8 February 2022
FY 2021 Group Results PresentationGuidance overdelivered - Full confidence in achieving the Strategic Plan Targets
9
DISCLAIMERThis presentation has been prepared by Banco BPM ("Banco BPM"); for the purposes of this notice, "presentation" means this document, any oral presentation, anyquestion and answer session and any written or oral material discussed following the distribution of this document.The distribution of this presentation in other jurisdictions may be restricted by law or regulation. Accordingly, persons who come into possession of this documentshould inform themselves of, and observe, these restrictions. To the fullest extent permitted by applicable law, Banco BPM and its subsidiaries disclaim anyresponsibility or liability for the violation of such restrictions by any person.This presentation does not constitute or form part of, and should not be construed as, any offer or invitation to subscribe for, underwrite or otherwise acquire, anysecurities of Banco BPM or any member of its group or any advice or recommendation with respect to such securities, nor should it or any part of it form the basisof, or be relied on in connection with, any contract to purchase or subscribe for any securities in Banco BPM or any member of its group, or investment decision orany commitment whatsoever. This presentation and the information contained herein does not constitute an offer of securities in the United States or to any U.S.person (as defined in Regulation S under the U.S. Securities Act of 1933 (the "Securities Act"), as amended), Canada, Australia, Japan or any other jurisdictionwhere such offer is unlawful.The information contained in this presentation is for background purposes only and is subject to amendment, revision and updating without notice. Certainstatements in this presentation are forward-looking statements about Banco BPM. Forward-looking statements are statements that are not historical facts and arebased on information available to Banco BPM as of the date hereof, relying on scenarios, assumptions, expectations and projections regarding future events whichare subject to uncertainties because dependent on factors most of which are beyond Banco BPM’s control. These statements include financial projections andestimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, andstatements regarding future performance. Forward-looking statements are generally identified by the words “expects”, “anticipates”, “believes”, “intends”,“estimates” and similar expressions. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions which could cause actualresults or events to differ materially from those expressed or implied by the forward-looking statements. Banco BPM does not undertake any obligation to updateor revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. Youshould not place undue reliance on forward-looking statements, which speak only as of the date of this presentation. All subsequent written and oral forward-looking statements attributable to Banco BPM or persons acting on its behalf are expressly qualified in their entirety by this disclaimer.None of Banco BPM, its subsidiaries or any of their respective representatives, directors, officers or employees nor any other person accepts any liability whatsoever(in negligence or otherwise) for any loss howsoever arising from any use of this presentation or otherwise arising in connection therewith.By participating to the presentation of the Group results and accepting a copy of this presentation, you agree to be bound by the foregoing limitations regardingthe information disclosed in this presentation.
***This presentation includes both accounting data (based on financial accounts) and internal management data (which are also based on estimates).
Mr. Gianpietro Val, as the manager responsible for preparing the Bank’s accounts, hereby states pursuant to Article 154-bis, paragraph 2 of the FinancialConsolidated Act that the accounting data contained in this presentation correspond to the documentary evidence, corporate books and accounting records.
FY 2021 Group Results Presentation
10
METHODOLOGICAL NOTES Before 30/09/2020, the impact from the change in own credit risk on certificates classified as financial liabilities measured at fair value through
profit or loss was accounted under the item “Net Financial Results” of the Reclassified P&L scheme. Starting from 30/09/2020, this impact net oftax has been reclassified in one new single P&L item: “FV on Own Liabilities net of Tax”; the previous quarters of 2020 have been reclassifiedaccordingly.
Starting from 31/12/2020, an exposure in separate P&L items after tax is also provided for those non-recurring, particularly significant resultsderiving from extraordinary decisions (restructuring charges for the use of the redundancy fund, redundancy incentives, branch closure ratherthan benefits resulting from the decision to realign the fiscal values to the higher accounting values).
It follows that, all the above mentioned items, together with those already shown in previous years after the net result of current activities("Charges relating to the banking system after taxes“ and "Impairment on goodwill“) are placed after the aggregate of the "Net income fromcurrent operations", with the aim of allowing a more immediate understanding of the results of current operations. In light of the newclassification criteria, the economic data relating to the previous periods under comparison have been restated on a consistent basis.
In the area of companies consolidated with the equity method, the second quarter of 2020 has seen the entry of Anima Holding S.p.A., inwhich Banco BPM holds a stake of 19.385%. In the light of the changes brought about in the governance of the company, this stake, which isconsidered of strategic nature and which is destined to be held on a stable basis, is deemed to represent a situation of significant influenceon the side of Banco BPM.
With regard to the reclassified statement of financial position, please note that some comparative balances have been reclassifiedcompared to what had been originally published, in order to reflect the changes in layout and preparation criteria introduced by update 7 ofCircular no. 262, published by the Bank of Italy on 29 October 2021. The update introduced a change in the layout and preparation criteria ofdue from banks represented by demand deposits and current accounts, that must now be posted under the balance sheet line-item “10.Cash and cash equivalents”, instead of the previous line-item “40. Financial assets measured at Amortized Cost”. In light of said change, as ofthe consolidated financial statements at 31 December 2021, due from banks represented by demand deposits and current accounts areposted under the reclassified balance sheet line-item “Cash and cash equivalents”, instead of the line-item “Loans to other banks”. Theprevious periods have been reclassified accordingly.
Group capital ratios included in this presentation are calculated including the net profit of the period and deducting the amount of thedividend pay-out expected for the year.
FY 2021 Group Results Presentation
11
1. Executive Summary 11
2. Key Highlights 18
3. FY 2021 Performance Details 32
Agenda Group FY 2021 Results Presentation
FY 2021 Group Results Presentation
12
PROPOSED DIVIDEND: €19 CENTSDIVIDEND PAYOUT AT 50%: ABOVE STRATEGIC PLAN TARGETS
ADJUSTED NET PROFIT: €710M, WITH A ROTE OF 6.9%1
EPS AT €38 CENTS
Notes: 1. ROTE calculated as FY 2021 Adjusted Net Profit from P&L / Tangible Shareholders’ Equity as at31/12/21 (excluding FY 2021 Net Profit and AT1 instruments). Tangible Shareholder Equity calculated asShareholders’ Net Equity - Intangible assets net of fiscal effect. 2. Calculated over the average closing priceof 2022 YTD at €2.795.
1. Executive Summary
ROOM TO FURTHER INCREASE SHAREHOLDER REMUNERATION OVER THE STRATEGIC PLAN HORIZON
PROFITABILITY
ABOVE GUIDANCE
NET INCOME:€710M Adjusted€569M Stated
SAFE RISK PROFILE WITHFURTHER IMPROVEMENT IN
ASSET QUALITYINDICATORS
STRENGTHENED
SOUND CAPITALPOSITION &
STRENGTHENEDMDA BUFFERS
GROSS NPE RATIO: 5.6%(4.3% EBA definition)
NET NPE RATIO: 3.0%DEFAULT RATE: 1.0%
CET 1 FL: 13.4%
MDA BUFFER FL: 470bps
FY 2021 RESULTSDIVIDEND PROPOSALABOVE GUIDANCE
+€73M vs. GUIDANCE
DIVIDEND YIELD2:6.8%
DIVIDEND PAYOUT: 50%(VS. 40% GUIDANCE)
DIVIDEND PER SHARE:€19 CENTS
13
2021 GUIDANCE: OVERDELIVERED
1. Executive Summary
COST OF RISK
CAPITAL
12281
2020 Stated 2021 Stated 2021Guidance
80/90bps
-41bps
~70bps 55bps
“Core CoR”
13,3% 13,4%
2020 2021 2021Guidance
CET 1 RATIO FL
388bps 470bps
MDA buffer FL
>350bps
~13%
€ m
OPERATING COSTS
2.4302.516
2020 Stated 2021 Stated 2021Guidance
+3.5% Y/Y
Adjusted2,528
+2.8% Y/Y-0.9%
Normalised forCovid-related
savings in 20201
~2.5bn
Adjusted2,459
Notes: 1. See slide 24 for details.
+17bps
21 569
2020 Stated 2021 Stated 2021GuidanceAdjusted
710+114.9% Y/Y
Adjusted330
NET INCOME, EPS & DPS
~530m
EPS (stated) 38 CENTS 35 CENTS
DPS 19 CENTS 14 CENTS
NET INCOME
PRE-PROVISION INCOME
1.7221.995
2020 Stated 2021 Stated 2021Guidance
+15.9% Y/Y
Adjusted1,692
~1.9bn
TOTAL REVENUES
4.152 4.511
2020 Stated 2021 Stated 2021Guidance
+8.6% Y/Y
Adjusted4,469
+7.6% Y/Y
~4.4bn
Adjusted1,941
+14.7% Y/Y
14
OVERPERFORMING PRE-PANDEMIC RESULTSFULL CONFIDENCE IN ACHIEVING PLAN TARGETS
649 330569
~740 ~1,050
2019 Adj. 2020 Adj. 2021 Adj. 2023E 2024E
€ m
NET INCOME
Selected KPIs
710
1. Executive Summary
TOTAL REVENUES
o/w: NII + NET COMMISSIONS
OPERATING COSTS
4.345 4.152 4.469
2019 Adj. 2020 Adj. 2021 Adj. 2023E 2024E
3,7713,771 3,6463,646 3,9533,953 ~4.1BN~4.1BN
2.600 2.459 2.528
2019 Adj. 2020 Adj. 2021 Adj. 2023E 2024ENEW LENDING
202120192024
TARGET
22.722.721.421.4 >26>26
INVESTMENTPRODUCTPLACEMENTS
18.218.214.114.1 ~19.6~19.6
AUM NET INFLOWS +3.4+3.4 +4.4+4.4
€ bn
GROSS NPE RATIO5.6%
4.3% EBA def.5.6%
4.3% EBA def.4.8%4.8%
COST OF RISK81bps
55bps Core81bps
55bps Core48bps48bps74bps74bps
-0.4-0.4
9.1%9.1%
AUM STOCK 65.365.3 78.778.758.358.3
2020
27.427.4
13.013.0
122bps122bps
+0.9+0.9
7.5%7.5%
59.659.6
CET 1 RATIO FL 13.4%13.4% ~14.4%~14.4%13.0%13.0% 13.3%13.3%
~€3.9BN~€3.9BN
~€4.3BN ~€4.6BN
~€2.4BN ~€2.4BN
2023TARGET
>24>24
~19.0~19.0
~+4.0~+4.0
5.4%5.4%
58bps58bps
73.573.5
~14%~14%
59.8%59.8% 59.2%59.2% 56.6%56.6% ~53%~53%<57%<57%
COST/INCOME
15
7,1%
1,5% 1,3% 0,8%
~2.5%
7,6%
3,7% 2,6% 2,2%
31/12/16 31/12/19 31/12/20 31/12/21
NPE STOCK DOWN BY €23.6BN SINCE THE MERGER,WITH AN ADDITIONAL €1BN DERISKING IN THE PIPELINE
18,5
3,6 3,62,2
~6,0
11,5
6,5 5,0 4,2
31/12/16 31/12/19 31/12/20 31/12/21 2024Target
UTP + PD
Bad Loans
STRONG IMPROVEMENT IN ASSET QUALITY, AHEAD OF TARGETS…
1. Executive Summary
GBV, € bn
NPE RATIOS
BAD LOAN COVERAGE
(Including Write-offs)
2019
62.5%62.5%
2020
65.2%65.2%
Excluding Write-offs:
UTP COVERAGE 39.1%39.1% 43.7%43.7%
2021
67.8%67.8%
44.0%44.0%
2016
60.0%60.0%
27.2%27.2%
59.1%59.1% 58.6%58.6%56.2%56.2%
Notes: 1. Includes the restatement for managerial purposes of a portion of write-offs (in coherence with therestatement done in 2017). 2. As per the EU Transparency exercise. 3. Net NPEs over Tangible Net Equity(Shareholders’ Net Equity - Intangible assets net of fiscal effect).
30.0
10.1 8.66.4
NPE COVERAGE
(Including Write-offs)48.1%48.1% 53.4%53.4%
Excluding Write-offs:
53.4%53.4%47.9%47.9%
50.0%50.0% 48.9%48.9%45.0%45.0%
1
14,9%
3,2% 3,1%1,9%
4,8%
9,2%
5,9% 4,4%3,7%
31/12/16 31/12/19 31/12/20 31/12/21
4.3%(EBA definition)2
NET NPE RATIOS24.1%
9.1% 7.5%5.6%
14.7%
5.2% 3.9% 3.0%
GROSS NPE RATIOS
Bad Loanratio
UTP + PDRatio
2024 Target2024 Target
38.6%160.3%TEXASRATIO3
27.2%51.0%
1
~€1bn further deriskingexpected in H1 2022
See slide 26
EoP
16
11,4% 13,0% 13,3% 13,4% ~14.4%
31/12/2016 31/12/2019 31/12/2020 31/12/2021 2024 Target
… COUPLED WITH STRENGTHENED CAPITAL & LIQUIDITY
1. Executive Summary
1
CET 1 RATIO: +200BPS SINCE THE MERGER
162bps 354bps 474bpsCET1 Buffer vs. Min.Requirement (FL)
2
491bps
Notes: 1. CET 1 as at 31/12/2019 post suspension of 2019 dividend. 2. CET 1 as at 31/12/2021, includingthe impact of the proposed dividend payment for FY 2021. 3. Monthly LCR. 4. NSFR in Q4 2021.
LIQUIDITY POSITION: LCR & NSFR
>180% >165% >190% 209%
Dec. 2016 Dec. 2019 Dec. 2020 Dec. 2021
LCR3 NSFR4 >100%, in linewith the Strategic Plan2021-2024 target
~ 590bps
Wide room to handlefull TLTRO III
reimbursement
OUTLOOK FROM 2025:Full Basel IV net impact
estimated ataround -80bps, to be
phased in 8 years andprogressively offset by a
decrease in DTA
SREP Requirementunchanged for 2022
17
KEY DRIVERS OF THE STRATEGIC PLAN: RECENT ACTIONS
PLAN TARGETSNEW LONG-TERM INCENTIVE SCHEME CONSISTENT WITH 2021-2024 STRATEGIC PLAN TARGETSTO BE SUBMITTED TO BANCO BPM’S UPCOMING AGM
1. Executive Summary
ESGBANCASSURANCE SME CENTERS DIGITAL BANKING
Banco BPM joined theUNGC1 and became asupporter of the TCFD2
Banco BPM included inthe MIB ESG Index and inthe Bloomberg G-E Index
Lending policiesintegrated with ESGfactors for all sectors
Integration of climate riskwithin the riskidentification process andfirst climate risk materialityassessment
New “Inclusion Diversity &Social” and “Key People &Talents” units set up
New App dedicated toSME/Business clientslaunched
20% of total sales alreadydriven by advancedanalytics / omnichannelcustomer journeys
>400K clients enrolled onDigital Identity
Digital customer transactionalactivity well above marketaverage (> ~7 p.p.)
Remote transactions at 83%(74% in 2019), supported by astrong increase in APP-basedtransactions: +124% in 2021vs. 2019
8 Workstreams activated,supported by industrialadvisors
Action Plan for thealignment of the productrange and commercialmodel of BPM Vita andVera Vita defined
Joint working groupbetween BBPM & BPM Vitacreated for the projectimplementation,potentially leading to ananticipation of the calloption exercise for BPM Vita
First 135 Focal Pointsactivated
Defined:• 67 new Heads for the SME
Centers• 450 Relationship Managers
Commercial campaignslaunched, involving ~75Kcustomers, o/w:• ~45K customers with
turnover €5-75m: TradeFinance, WholesaleBanking, Derivatives,Payment services
• ~30K customers withturnover <€5m: “Top of theBusiness” (proactive tailor-made advisory services)
Notes: 1. United Nations Global Compact. 2. Task Force on Climate-Related Financial Disclosures.
18
1. Executive Summary 11
2. Key Highlights 18
3. FY 2021 Performance Details 32
FY 2021 Group Results Presentation
Agenda Group FY 2021 Results Presentation
192. Key Highlights
STRONG OPERATING PERFORMANCEWITH REVENUE GROWTH DRIVEN BY
NET COMMISSIONS (+15% Y/Y)
PRE-PROVISION INCOMEAT €1,941M (+14.7% Y/Y)
SIGNIFICANT REDUCTION IN LLPs
NET INCOME AT €710M
Notes:1. See slides 34 for details of adjustment elements .2. Includes: Profit (loss) on FV measurement of tang. assets,Net adj. on other financial assets, Net provisions for risks & charges, Profit (loss) on the disposal of equity, otherelements (pre tax). 3. Other includes: PPA and other elements (after tax). See slide 33 for details of P&L.
€ m FY 2020 FY 2021 Y/Y FY 2020 FY 2021
NET INTEREST INCOME 1,983 2,042 1,983 2,042
NET FEES & COMMISSIONS 1,664 1,911 1,664 1,911
INCOME FROM ASSOCIATES 131 190 131 232
CORE REVENUES 3,777 4,143 9.7% 3,777 4,185
NFR 319 251 319 251
OTHER REVENUES 56 75 56 75
TOT. REVENUES 4,152 4,469 7.6% 4,152 4,5110
OPERATING COSTS -2,459 -2,528 -2,430 -2,516
PRE-PROVISION INCOME 1,692 1,941 14.7% 1,722 1,995
LOAN LOSS PROVISIONS -1,085 -693 -1,337 -887
OTHER2
-17 -26 -79 -187
PROFIT FROM CONTINUING OPER. (pre-tax) 590 1,221 107.1% 306 921
TAXES -90 -350 -14 -254
NET PROFIT FROM CONTINUING OPER. 499 871 74.4% 293 667
SYSTEMIC CHARGES AND OTHER3
-169 -161 -400 -180
REALIG. OF FISCAL VALUES TO ACCOUNT. VALUE 128 82
NET INCOME 330 710 114.9% 21 569
P&L ADJUSTED1 P&L STATED
Adjusted data
FY 2021 WELL ABOVE GUIDANCE:ADJUSTED NET INCOME AT €710M (€569M STATED)
202. Key Highlights
Q4 2021 ADJUSTED NET INCOME AT €145M (€97M STATED)
Notes:1. See slide 34 for details of adjustment elements .2. Includes: Profit (loss) on FV measurement of tang. assets,Net adj. on other financial assets, Net provisions for risks & charges, Profit (loss) on the disposal of equity, otherelements (pre tax). 3. Other includes: PPA and other elements (after tax). See slide 35 for details of P&L.
€ m Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2021
NET INTEREST INC!NME 497 522 516 506 497 522 516 506
NET FEES & COMMISSIONS 471 479 475 486 471 479 475 486
INCOME FROM ASSOCIATES 42 57 47 45 42 57 47 87
CORE REVENUES 1,010 1,058 1,039 1,037 1,010 1,058 1,039 1,079
NFR 100 117 36 -1 100 117 36 -1
OTHER REVENUES 18 22 26 9 18 22 26 9
TOT. REVENUES 1,128 1,196 1,101 1,044 1,128 1,196 1,101 1,087
OPERATING COSTS -642 -647 -616 -624 -644 -632 -616 -625
PRE-PROVISION INCOME 486 549 485 420 484 564 485 462
LOAN LOSS PROVISIONS -143 -235 -101 -214 -217 -256 -201 -214
OTHER2
-8 -5 -15 1 -8 -42 -23 -114
PROFIT FROM CONTINUING OPER. (pre-tax) 335 309 369 208 259 267 262 133
TAXES -108 -63 -119 -61 -83 -51 -83 -37
NET PROFIT FROM CONTINUING OPER. 227 246 251 147 176 216 179 96
SYSTEMIC CHARGES AND OTHER3
-76 -15 -68 -2 -76 -34 -68 -2
REALIG. OF FISCAL VALUES TO ACCOUNT. VALUE 0 0 0 0 0 79 0 2
NET INCOME 151 231 183 145 100 261 111 97
P&L ADJUSTED1 P&L STATED
21
HEALTHY VOLUME GROWTH
LOANS GUARANTEED BY THE STATE1«CORE» NET PERF. CUSTOMER LOANS
91,1 98,4 99,7 99,5 109,0
31/12/19 31/12/20 30/09/21 31/12/21
+1.1%
+4.5%
87,8 100,0 102,5 105,0 98,6
31/12/19 31/12/20 30/09/21 31/12/21
C/A & CUSTOMER DEPOSITS ASSETS UNDER MANAGEMENT
+5.1%
+9.4%
58,3 59,6 63,7 65,3 78,7
31/12/19 31/12/20 30/09/21 31/12/21
+9.6%
+5.8%
Net inflows +0.9
2,7 13,017,9 18,3
31/12/19 31/12/20 30/09/21 31/12/21
o/w: €16.7bn Covid measures,guaranteed at 85% (average level)
+3.4-0.4
PerformingGBV
Note: 1. Include all loans guaranteed by the State, Covid and non-Covid measures.
€ bn CAGR 19-21 Chg. 20-21
+41.0%
+159.1%
2. Key Highlights
2024 Target
2024 Target+4.4
2024 Target
CAGR 21-24E+3.1%
CAGR 21-24E+6.4%
22
1.9832.042
FY 20 FY 21
496,8 522,4 516,4 506,0
Q1 21 Q2 21 Q3 21 Q4 21
NET INTEREST INCOME GROWTH IN FY 2021
+3.0%€ m
26.4 23.3
-2.0%
Quarterly trend
Commercial spreads
1,84 1,78 1,80 1,80 1,80 1,78 1,77 1,76
1,33 1,37 1,23 1,18 1,17 1,16 1,16 1,13
-0,51 -0,41 -0,57 -0,62 -0,63 -0,62 -0,61 -0,63Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21
Asset spread Customer spread Liability spreadEuribor
3MAvg.
-0.41 -0.30 -0.48 -0.53 -0.55
Yearly trend
-0.55
NPEcontrib.
111 92 20.7
-0.55
2. Key Highlights
21.4
-0.57
€2,047m excl.-5.8m one-off
reclassification1:+3.3% Y/Y
Note: 1. Reclassification, with no impact at net income level, from ‘Provisions for Risks & Charges to ‘NII’of provisions for fiscal credits related to operations carried out in past years.
Resilient asset spread performance in Q4, whilethe decrease in Euribor impacted mainly theliability spread
Sensitivity to a rate increase in Q4 21 (+100bpsparallel shift): about +€430m
NII in Q4 affected Q/Q by:• - €5.8m one-off reclassification1
• ~- €10m from lower bond portfolio contribution(Italian govies down by €6.2bn in Q4)
Commercial banking: negative Euribor effectfully offset by a positive trend in volumes
€512m excl.-5.8m one-off
reclassification1:-0.9% Q/Q
23
232,3 231,0 248,6 260,3
239,1 247,7 226,7 225,5
Q1 21 Q2 21 Q3 21 Q4 21
Commercial Banking Fees Management & Advisory
485.8475.3471.4 478.7
FEES & COMMISSIONS:STRONGER THAN PRE-PANDEMIC LEVEL AND +15% Y/Y
Note: 1. Management data of the commercial network. Include Funds & Sicav,Bancassurance, Certificates and Managed Accounts & Funds of Funds.
+2.2%
€ m
Quarterly trend
2. Key Highlights
14,1 13,018,2
~ 19,6
FY 19 FY 20 FY 21 Target2024
€ bn
Investment product placements1
928,1 876,0 972,2
866,4 787,9 939,0
FY 19 FY 20 FY 21
Commercial Banking Fees Management & Advisory
€ m
Yearly trend
1,9111,6641,794
+11.0%
+19.2%
Y/Y
+14.9%
+3.2%
In FY 2021, Management & Advisory fees reach €939m (49% of total fees),+19.2% Y/Y, with an important increase in the running component:+€52m Y/Y, which is above the pace of growth embedded in the Strategic Plan
In Q4 2021, total Net fee & Commissions reach €486m (+2.2% Q/Q), driven by agrowth in commercial banking fees (+4.7% Q/Q, at €260m), mainly in relation tonew lending and traditional banking activities (payment & other services)
CAGR 19-21
24
426,9 417,1 409,8 413,9
217,0 214,5 205,8 210,7
Q1 21 Q2 21 Q3 21 Q4 21
Staff costs Other
25.073
21.941 21.66320.565 20.437
Starting point 31/12/19 31/12/20 30/09/2021 31/12/21
Retail Network StreamliningHeadcount Evolution
2.417
1.727 1.7271.427 ~1.300
Startingpoint
31/12/19 31/12/20 31/12/2021 Target2024
300 branches closed in 2021##
OPERATING COSTS: LONG-TERM DOWNWARD TREND CONFIRMED
Notes: 1. FY20 Includes savings from lower variable remuneration and other savings due to thePandemic crisis, for a total of ~€120m. FY21 includes €12.3m of adjustment elements, see slide 34 fordetails. 2. 31/12/2015, Merger Plan starting point.
22
1.697 1.581 1.668
908 849 848
FY 19 FY 20 FY 21Staff costs Other
Total Operating Costs
€ m
2,430 2,516
615.6 624.7643.9
+3.5%
631.6
2. Key Highlights
2,604
-1.7% -0.9% Y/YNormalised1
Y/Y
CAGR 19-21
Down by 1,226 vs 31/12/20, mainly in relation tothe voluntary plan 2021/2022 (total of 1,607)
252. Key HighlightsNotes: 1. Based on managerial data. 2. Only ~€50m related to performing ABI moratoria stilloutstanding.
MIGRATION RATES
STRONG RESILIENCE OF THE COVID MORATORIA PORTFOLIO
Positions currently outstanding which have been subjectto moratoria are concentrated in the best rating classes(83%)
Moratoria completely expired as at 1st Jan. 20222
Low default rate of the moratoria positions expired,including instalments due in Jan. 2022, at 1.5%
STRONG REDUCTION IN COST OF RISK“CORE” LLPs CLOSE TO LONG-TERM TARGETS
€ m
STATED LLPs IN LINE WITH 2021 GUIDANCE,WITH STRONG Y/Y REDUCTION
FY 2021 «CORE» CoR: 55 BPS1
CONSISTENT WITH 2024 TARGET OF 48 BPS
Cost of Risk (bps) 122
TOTAL NON-CORE LLPs AT €286m (CoR 26 BPS)1:
Provisions for derisking strategy (including, in FY 2021, also portfoliodisposals to be completed in 2022)
Other Non-Core elements: Tightening of Stage 2 criteria andmodel changes for some selected portfolios (included in Adj. LLPs)
1.085693 601
251
194
92
FY 20 FY 21
1,337
887
OtherNon-Core
LLPs
«CORE LLPs»
STATED STATED
Adjusted LLPs
81 5555
-33.6%
WORKOUT RATE(Cancellations, Write-offs,Recoveries, Cure & Other)1
DANGER RATE(from UTP to Bad Loans)
DEFAULT RATE(from Performing To NPEs)
FY 19 FY 21FY 20
1.2% 1.0% 1.0%
11.1% 7.5% 9.3%
19.0% 13.8% 20.2%
26
6,4
31/12/21 2024 Target
DERISKING TARGET IN PIPELINE FOR ABOUT €1BN1
CONSOLIDATING THE «LOW NPE BANK» STATUS
~ €1BN OF FURTHER DERISKING IN PIPELINE IN H1 2022:ASSET QUALITY KPIs ALREADY AHEAD OF STRATEGIC PLAN 2024 TARGETS
Gross NPEs Gross NPE Ratio
€ bn
YE 2021Adjusted
5.6%~4.8%
FurtherDerisking inthe pipeline
~€1bn
4.3% EBAdefinition
~€5.4bn
~3.7% EBAdefinition
2. Key Highlights
~€6bn
4.8%
Notes: 1. Of which €650m portfolio disposals already announced in the 9M 2021 results presentation.
27
26,7 20,7 17,7 15,5 19,3 18,912,7
31,6 30,2 32,931,2 33,9 36,8
30,7
31/12/16 31/12/17 31/12/18 31/12/19 31/12/20 30/09/21 31/12/21
FINANCIAL ASSETS, LIQUIDITY & FUNDING:CONSERVATIVE STRATEGY
€ bn
o/w: ItalianGovies
Debt securities
OPTIMIZATION OF DEBT SECURITY PORTFOLIO: REDUCTION OF EXPOSURE IN IT GOVIES
99,1% 82,1% 64,1% 58,7% 66,6% 59,4% 49,7% <50%
31/12/16 31/12/17 31/12/18 31/12/19 31/12/20 30/09/21 31/12/21 2024Target
Share of ItalianGovies on totalGovies ptf.
ITALIAN GOVIES:
• Down by €6.6bn in 2021and by €6.2bn in Q4
• 81% concentrated in theportfolio classified at AC
• Representing 49.7% oftotal Govies portfolio (vs.59.4% as at 30/09/21 and66.6% as at YE 2020)
• Very low sensitivity: BPV1
of the FVOCI portfolio at-€0.6m
STRONG FUNDING POSITION CONFIRMED
TLTRO III: €39.2bn +€1.7bn in Q4, drawn inthe second half of December
BONDS OUTSTANDING2: €17.6bn
SUCCESSFUL ISSUANCE ACTIVITY:€1.6bn wholesale bonds issued in theJan. 2021-Jan. 2022 period
0,500,40
0,300,40
Jan-21 Jun-21 Jul-21 Jan-22
Tier 2
AT1
Senior Pref.
First Social bond issuedunder the new ESG Bond Framework
Notes: 1. Sensitivity per 1 bps change in rates. Management data, including Swaps,Options & Forward. 2. Nominal amount. 3. Cash + Unencumbered Liquid Assets; see slide44 for details.
LIQUIDITY: €44.2bn3
2. Key Highlights
28
ESG INTEGRATION: KEY ACHIEVEMENTS IN Q4 2021
2. Key Highlights
Lending policies integrated with ESG factors for all sectors
Integration of climate risk within the risk identification process and first climate risk materialityassessment
Training for Corporate sales force on new ESG product offering
ESG education at the SDA Bocconi for colleagues active in Private Banking, WM and Advisory(EFPA ESG Certification obtained by a first group of 50 people)
Banco BPM joined the UNGC and becamea supporter of the TCFD in Dec. 2021
BBPM included in the MIB ESG Index in Oct. 2021and in the Bloomberg Gender-Equality Index inJan. 22
Improvement of ESG rating from S&P in Nov. 21
2. Key Highlights
New “Inclusion Diversity & Social” and “Key People and Talents” Units set up in the HR Department
Kick-off of ESG ambassador project: 50 colleagues, representing all the corporate units, selected forspreading the sustainability culture and enhancing the execution of the ESG plan
Respect project: >1,800 managers trained on “Respect, Inclusion and Positive behavior”
Increase in the share of women in managerial positions to 23.4% at YE 2021, from 20.8% at YE 2020
Reduced Scope 1&2 net emissions of more 7% in FY 2021 vs. pre-pandemic level2
Well on track on all 7 Workstreams of the ESG Action Plan1
Note: 1. See slides 51 and 52 for details. 2. Market Based Emissions; 2021 net emissions include also theimpact of the first compensation Project supported by BBPM; pre-pandemic data as at 2019.
29
13,312,3
13,4
31/12/2020 Regulatoryheadwinds
Postregulatoryheadwinds
Organiccapital
generation
Dividends &AT1 coupons
Balancesheet
mgmt. andother
31/12/2021
SIGNIFICANT CAPITAL GENERATIONStrengthened capital buffers, with unchanged SREP requirements for 2022
Fully Loaded CET1 Ratio: yearly evolution
-95bps +18bps-49bps+143bps%
+77bps: Net profit+66bps: RWA reduction1
Notes: All data include also the Net Income of the pertinent period.1. Including negative effect for the increase in the value of participations.2. Accrual for dividends (with an underlying payout ratio of 50%) and AT1 interests.
14,4
Target FL31/12/2024
Strategic Plan Target
OUTLOOK FROM 2025:Full Basel IV net
impact estimated ataround -80bps, to bephased in 8 years andprogressively offset by
a decrease in DTA
Fully Loaded Capital Position%
TIER 1
TOTAL 17.2
14.3
RWA (€bn) 65.9
17.9
15.0
63.766.2
18.2
15.1
31/12/2020 30/09/2021 31/12/2021
Fully Loaded Capital Buffers
Buffer vs.Min. CET1 Req.
MDA Buffer
+474bps
+388bps
+491bps
+470bps
+480bps
+453bps
31/12/2020 30/09/2021 31/12/2021
2
SREP REQUIREMENTS UNCHANGED FOR 2022WITH P2R CONFIRMED AT 2.25%
PHASED-IN AT14.7%
2. Key Highlights
30
FLEXIBILITY TO INCREASE SHAREHOLDER REMUNERATIONWHILE PRESERVING SOUND CAPITAL BUFFERS
ASSUMPTIONS OF THESTRATEGIC PLAN 2021-2024
Notes:
1. Calculated over the average closing price of 2022 YTD at €2.795.2. CET ratios and MDA buffers as at YE 2024, with average Payout and Cumulative ShareholderRemuneration for the period 2021-2024. 3. Dividend and/or Buyback option to be defined.
The confirmation of positive macro and industry trends, coupled with a successful achievement ofBBPM’s Strategic Plan targets, may allow to consider a significant further increase in shareholder remuneration
SENSITIVITYSCENARIO2
2024 TARGETS:
CET1 RATIO FL~14.4%
MDA BUFFER~ 590BPS
CET1 RATIO FL12.5% / 13.0%
MDA BUFFER400 / 450BPS
40% PAYOUT
CUMULATIVE SHAREHOLDERREMUNERATION3
>€2BN
2. Key Highlights
70% PAYOUT50% PAYOUT(DPS PROPOSAL OF €19 CENTS)
2021
CET1 RATIO FL13.4%
MDA BUFFER470BPS
DIVIDEND YIELD: 6.8%1
31
EXCELLENT PERFORMANCE ACHIEVED IN FY 2021…
• Strengthening core operating profitability: Revenues up at €4.5bn, C/I at 56%. PPI up at €2.0bn
• Further improvement in all key asset quality indicators: gross NPE ratio at 5.6% (EBA definition down to 4.3%); net NPE ratio at 3.0%
• Sound capital position: CET 1 ratio FL up at 13.4%, with a strengthened MDA buffer (470bps), +17bps Y/Y despite regulatoryheadwinds for -95bps
…OVERDELIVERING THE RECENT GUIDANCE FOR FY 2021…
…CREATING ADDITIONAL ROOM FOR AN ACCELERATION IN FURTHER DERISKING...
Adjusted Net Income at €710m (€569m stated)
EPS at €38 cents (vs. Guidance of €35 cents)
FINAL REMARKS
Additional derisking to be finalised in H1 2022: pipeline raised to ~€1bn1, with gross adjusted NPE stock below the 2024 target
FULL CONFIDENCE IN ACHIEVING THE STRATEGIC PLAN TARGETSSIGNIFICANT ROOM TO POTENTIALLY FURTHER INCREASE SHAREHOLDER REMUNERATION OVER THE PLAN HORIZON
DIVIDEND DISTRIBUTION ABOVE STRATEGIC PLAN TARGETS
Dividend proposal of €19 cents, with a dividend payout of 50% (vs. 40% guidance)
2. Key HighlightsNotes: 1. Of which €650m portfolio disposals already announced in the 9M 2021 results presentation.
32
1. Executive Summary 11
2. Key Highlights 18
3. FY 2021 Performance Details 32
FY 2021 Group Results Presentation
Agenda Group FY 2021 Results Presentation
33
P&L: FY 2021 STATED AND ADJUSTED COMPARISON
3. FY 2021 Performance Details
Reclassified income statement (€m) FY 20 FY21Chg. Y/Y
%FY 20
adjustedFY21
adjustedChg. Y/Y
%
Net interest income 1,982.6 2,041.6 3.0% 1,982.6 2,041.6 3.0%
Income (loss) from invest. in associates carried at equity 130.8 231.9 77.3% 130.8 189.8 45.1%
Net interest, dividend and similar income 2,113.4 2,273.6 7.6% 2,113.4 2,231.4 5.6%
Net fee and commission income 1,663.8 1,911.2 14.9% 1,663.8 1,911.2 14.9%
Other net operating income 56.0 75.3 34.4% 56.0 75.3 34.4%
Net financial result 318.6 250.7 -21.3% 318.6 250.7 -21.3%
Other operating income 2,038.5 2,237.2 9.7% 2,038.5 2,237.2 9.7%
Total income 4,151.8 4,510.7 8.6% 4,151.8 4,468.6 7.6%
Personnel expenses -1,581.1 -1,667.8 5.5% -1,612.8 -1,682.2 4.3%
Other administrative expenses -593.8 -601.2 1.2% -593.8 -601.2 1.2%
Amortization and depreciation -255.1 -246.8 -3.2% -252.9 -244.8 -3.2%
Operating costs -2,430.1 -2,515.8 3.5% -2,459.5 -2,528.1 2.8%
Profit (loss) from operations 1,721.8 1,995.0 15.9% 1,692.4 1,940.5 14.7%
Net adjustments on loans to customers -1,336.8 -887.2 -33.6% -1,085.4 -693.2 -36.1%
Profit (loss) on FV measurement of tangible assets -36.7 -141.6 n.m. 0.0 0.0
Net adjustments on other financial assets -1.0 -0.3 -68.2% -1.0 -0.3 -68.2%
Net provisions for risks and charges -42.3 -26.0 -38.4% -16.3 -26.0 59.8%
Profit (loss) on the disposal of equity and other invest. 1.2 -18.8 n.m 0.0 0.0
Income (loss) before tax from continuing operations 306.1 921.0 n.m. 589.7 1,221.0 n.m.
Tax on income from continuing operations -13.5 -253.8 n.m. -90.5 -350.4 n.m.
Income (loss) after tax from continuing operations 292.6 667.2 n.m. 499.2 870.6 74.4%
Restructuring costs -187.0 0.0 n.m. 0.0 0.0
Systemic charges after tax -138.9 -145.0 4.4% -119.5 -125.7 5.2%
Realignment of fiscal values to accounting values 128.3 81.7 -36.3% 0.0 0.0
Goodwill impairment -25.1 0.0 n.m. 0.0 0.0
Income (loss) attributable to minority interests 4.2 0.3 -93.3% 4.0 0.3 -92.8%
Purchase Price Allocation after tax -41.5 -39.5 -4.9% -41.5 -39.5 -4.9%
Fair value on own liabilities after Taxes -11.7 4.4 n.m -11.7 4.4 n.m
Net income (loss) for the period 20.9 569.1 n.m. 330.5 710.1 n.m.
34
ADJUSTED P&L: DETAILS ON NON-RECURRING ITEMS
3. FY 2021 Performance Details
Reclassified income statement (€m) FY21 FY21 adjusted One-off Non-recurring items
Net interest income 2,041.6 2,041.6 0.0
Income (loss) from invest. in associates carried at equity 231.9 189.8 42.1 One-off adjustment booked by a significant associate
Net interest, dividend and similar income 2,273.6 2,231.4 42.1
Net fee and commission income 1,911.2 1,911.2 0.0
Other net operating income 75.3 75.3 0.0
Net financial result 250.7 250.7 0.0
Other operating income 2,237.2 2,237.2 0.0
Total income 4,510.7 4,468.6 42.1
Personnel expenses -1,667.8 -1,682.2 14.4 Covid-related savings
Other administrative expenses -601.2 -601.2 0.0
Amortization and depreciation -246.8 -244.8 -2.0 Adjustments on tangible assets
Operating costs -2,515.8 -2,528.1 12.3
Profit (loss) from operations 1,995.0 1,940.5 54.5
Net adjustments on loans to customers -887.2 -693.2 -194.0 Additional frontloading for the increase in the NPE disposal target
Profit (loss) on FV of tangible assets -141.6 0.0 -141.6 Fair value assessments on properties
Net adjustments on other financial assets -0.3 -0.3 0.0
Net provisions for risks and charges -26.0 -26.0 0.0
Profit (loss) on the disposal of equity and other invest. -18.8 0.0 -18.8 Fair value adjustments on Equity partecipation
Income (loss) before tax from continuing operations 921.0 1,221.0 -300.0
Tax on income from continuing operations -253.8 -350.4 96.5
Income (loss) after tax from continuing operations 667.2 870.6 -203.4
Systemic charges after tax -145.0 -125.7 -19.3 Additional contribution to Italian Resolution Fund
Realignment of fiscal values to accounting values 81.7 0.0 81.7 Related to realignment of fiscal values to accounting values
Goodwill impairment 0.0 0.0 0.0
Income (loss) attributable to minority interests 0.3 0.3 0.0
Purchase Price Allocation after tax -39.5 -39.5 0.0
Fair value on own liabilities after Taxes 4.4 4.4 0.0
Net income (loss) for the period 569.1 710.1 -141.0
35
FY 2021 QUARTERLY P&L RESULTS: STATED
3. FY 2021 Performance Details
Reclassified income statement (€m) Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Chg. Q/QChg. Q/Q
%
Net interest income 474.1 479.5 519.9 509.0 496.8 522.4 516.4 506.0 -10.4 -2.0%
Income (loss) from invest. in associates carried at equity 22.3 48.0 36.8 23.7 41.5 56.5 46.8 87.1 40.3 86.1%
Net interest, dividend and similar income 496.4 527.5 556.7 532.7 538.4 578.9 563.2 593.1 29.8 5.3%
Net fee and commission income 440.6 376.4 417.7 429.2 471.4 478.7 475.3 485.8 10.5 2.2%
Other net operating income 16.7 14.9 11.7 12.7 18.2 21.7 26.3 9.1 -17.2 -65.5%
Net financial result 0.8 82.7 157.3 77.8 99.7 116.5 35.9 -1.4 -37.3 n.m
Other operating income 458.1 473.9 586.7 519.8 589.3 617.0 537.5 493.4 -44.0 -8.2%
Total income 954.4 1,001.5 1,143.3 1,052.5 1,127.7 1,195.9 1,100.7 1,086.5 -14.2 -1.3%
Personnel expenses -419.0 -398.0 -357.0 -407.2 -426.9 -417.1 -409.8 -413.9 -4.1 1.0%
Other administrative expenses -154.6 -154.1 -159.8 -125.3 -154.1 -153.9 -144.0 -149.1 -5.1 3.5%
Amortization and depreciation -61.4 -61.7 -64.8 -67.2 -62.9 -60.6 -61.8 -61.6 0.2 -0.2%
Operating costs -635.0 -613.8 -581.5 -599.8 -643.9 -631.6 -615.6 -624.7 -9.1 1.5%
Profit (loss) from operations 319.5 387.7 561.8 452.8 483.8 564.2 485.1 461.9 -23.2 -4.8%
Net adjustments on loans to customers -213.2 -263.0 -324.3 -536.2 -217.1 -255.5 -200.6 -214.0 -13.3 6.6%
Profit (loss) on FV measurement of tangible assets -0.3 -5.1 -0.3 -31.0 0.1 -37.0 -7.8 -96.9 -89.1 n.m.
Net adjustments on other financial assets -4.7 -3.7 0.1 7.2 -0.4 0.9 0.2 -1.1 -1.3 n.m
Net provisions for risks and charges 2.2 -9.8 0.9 -35.6 -7.2 -5.6 -15.5 2.3 17.7 n.m
Profit (loss) on the disposal of equity and other invest. 0.1 0.1 1.3 -0.4 0.0 -0.4 0.4 -18.7 -19.1 n.m
Income (loss) before tax from continuing operations 103.5 106.2 239.5 -143.1 259.1 266.7 261.8 133.4 -128.4 -49.0%
Tax on income from continuing operations -25.7 -13.3 -22.5 47.9 -82.7 -50.6 -83.3 -37.2 46.0 -55.3%
Income (loss) after tax from continuing operations 77.8 92.9 217.0 -95.2 176.4 216.0 178.5 96.2 -82.4 -46.1%
Restructuring costs 0.0 0.0 0.0 -187.0 0.0 0.0 0.0 0.0 0.0
Systemic charges after tax -57.5 -18.2 -53.0 -10.2 -59.2 -19.3 -61.7 -4.8 56.9 -92.2%
Realignment of fiscal values to accounting values 0.0 0.0 0.0 128.3 0.0 79.2 0.0 2.5 2.5
Goodwill impairment 0.0 0.0 0.0 -25.1 0.0 0.0 0.0 0.0 0.0
Income (loss) attributable to minority interests 0.0 1.5 2.5 0.2 0.0 0.1 0.0 0.1 0.1
Purchase Price Allocation after tax -6.6 -12.0 -11.4 -11.5 -10.3 -9.7 -10.2 -9.3 0.9 -9.1%
Fair value on own liabilities after Taxes 137.9 -110.7 2.2 -41.1 -6.8 -5.1 4.0 12.3 8.4 n.m.
Net income (loss) for the period 151.6 -46.4 157.3 -241.7 100.1 261.2 110.7 97.1 -13.6 -12.3%
36
318,6250,7
FY 20 FY 21
NET FINANCIAL RESULT, RESERVES & UNREALISED GAINS
€ m
NFR: Yearly trend
3. FY 2021 Performance Details
-€67.9m
Reserves of Debt Securities at FVOCI Unrealised gains on Debt Securities at ACPre-tax, in € m Pre-tax, in € m
Included neither inthe P&L results, nor inthe Capital Position
Not included in the P&Lresults, but included in
the Capital Position
19891 82 68
31/12/20 30/06/21 30/09/21 31/12/21
875 631 591 530
31/12/20 30/06/21 30/09/21 31/12/21
35,9
-1,4Q3 21 Q4 21
NFR: Quarterly trend
-€37.3m
€ m
37
RECLASSIFIED BALANCE SHEET AS AT 31/12/2021
Note: * “Customer loans” include the Senior Notes of the three GACS transactions.3. FY 2021 Performance Details
31/12/20 30/09/21 31/12/21 Value % Value %
Cash and cash equivalents 9,411 20,133 29,153 19,743 209.8% 9,021 44.8%
Loans and advances measured at AC 119,903 120,156 121,261 1,358 1.1% 1,105 0.9%
- Loans and advances to banks 10,568 11,424 11,878 1,310 12.4% 454 4.0%
- Loans and advances to customers (*) 109,335 108,733 109,383 48 0.0% 651 0.6%
Other financial assets 41,176 42,869 36,326 -4,849 -11.8% -6,543 -15.3%
- Assets measured at FV through PL 9,119 8,560 6,464 -2,654 -29.1% -2,096 -24.5%
- Assets measured at FV through OCI 10,711 12,870 10,675 -36 -0.3% -2,195 -17.1%
- Assets measured at AC 21,346 21,440 19,187 -2,159 -10.1% -2,252 -10.5%
Equity investments 1,665 1,732 1,794 129 7.8% 62 3.6%
Property and equipment 3,552 3,384 3,278 -274 -7.7% -105 -3.1%
Intangible assets 1,219 1,214 1,214 -5 -0.4% -1 0.0%
Tax assets 4,704 4,613 4,540 -164 -3.5% -73 -1.6%
Non-current assets held for sale and discont. operations 73 128 230 157 215.8% 102 79.1%
Other assets 1,983 2,552 2,692 709 35.8% 140 5.5%
Total 183,685 196,781 200,489 16,804 9.1% 3,708 1.9%
Reclassified liabilities (€ m) 31/12/20 30/09/21 31/12/21 Value % Value %
Direct Funding 116,937 119,004 120,213 3,276 2.8% 1,209 1.0%
- Due from customers 102,162 105,306 107,121 4,958 4.9% 1,815 1.7%
- Debt securities and financial liabilities desig. at FV 14,774 13,697 13,092 -1,682 -11.4% -605 -4.4%
Due to banks 33,938 44,084 45,685 11,748 34.6% 1,601 3.6%
Debts for Leasing 760 705 674 -86 -11.4% -31 -4.4%
Other financial liabilities designated at FV 14,015 13,356 15,755 1,740 12.4% 2,399 18.0%
Liability provisions 1,415 1,244 1,197 -219 -15.4% -47 -3.8%
Tax liabilities 465 309 303 -162 -34.8% -6 -1.9%
Liabilities associated with assets held for sale 0 0 0 0 n.m. 0 n.m.
Other liabilities 3,928 5,099 3,566 -362 -9.2% -1,533 -30.1%
Minority interests 2 1 1 -1 -41.5% 0 -11.5%
Shareholders' equity 12,225 12,980 13,095 870 7.1% 115 0.9%
Total 183,685 196,781 200,489 16,804 9.1% 3,708 1.9%
Reclassified assets (€ m)Chg. y/y Chg. in Q4
38
24,118,5
3,3
4,2
FY 20 FY 21
2021 NEW LENDING ABOVE GUIDANCE
3. FY 2021 Performance Details
€22.7BN NEW LOANS IN 2021, BETTER THAN >€21BN GUIDANCE FOR 2021
€ bn
Note: 1. M/L-term Mortgages (Sec. and Unsec.), Personal Loans, Pool and Structured Finance (including revolving). 2. Valid for the application of the Deposit Facility Rate andthe Special Interest Rate up until 23 June 2021. 3. Valid for the application of the Deposit Facility Rate and the Special Interest Rate from 24 June 2021 to 23 June 2022 andthe application of the Deposit Facility Rate after 23 June 2022.
Strong yearly performance of new lendingto Households: +26.2% (+25.6% in Q4)
Good recovery of new lending toEnterprises & Corporate in Q4 (+21.0%)
Trend of new lending to Enterprises &Corporate impacted by a lower level ofCovid-19 Measures (-€3.2bn y/y)
Well above TLTRO III net lending targets:minimum requirement exceeded for thefirst observation period (ended in March2021)2 and for the additional referenceperiod ending as at 31/12/20213
22.7
Management data
4,8 5,2 3,9 4,7
1,0 1,10,9 1,1
Q1 21 Q2 21 Q3 21 Q4 21
Households
Enterprises &Corporates
5.8 6.34.8
o/w: Covid-19State-guarateednew lending
2.7 2.0 1.4
As a % of totalnew lending
47% 32% 29%
10.2 7.0
37% 31%
TOTAL NEW LENDING1
5.8
0.9
16%
27.4
39
31/12/20 30/09/21 31/12/21 % chg. Y/Y % chg. Q/Q
C/A & Sight deposits 98.5 101.4 104.0 5.6% 2.6%
Time deposits 1.5 1.1 1.0 -32.8% -10.6%
Bonds 14.7 13.7 13.1 -11.1% -4.4%
Other 1.8 1.6 1.5 -16.2% -6.8%
Capital-protected Cert ificates 3.7 3.7 3.6 -3.2% -2.7%
Direct Funding (excl. Repos) 120.1 121.4 123.2 2.5% 1.5%
98,5 101,4 104,0
31/12/2020 30/09/2021 31/12/2021
Capital-protected Certificates
Other
Bonds
Time deposits
C/A & Sight deposits
3. FY 2021 Performance Details
DIRECT FUNDING
Note:1. Direct funding restated according to a management accounting logic: includes capital-protected certificates, recognized essentially under‘Held-for-trading liabilities’, while it does not include Repos (€0.6bn on 31/12/2021 vs. 1.3bn on 30/09/2021 and €0.5bn on 31/12/2020), mainlyconsisting of transactions with Cassa di Compensazione e Garanzia.
Direct customer funding1 (without Repos)
€ bn
+1.5%
+2.5%
(83.5%)
120.1
(% Share on total)
(82.0%)
123.2
+€5.5bn Y/Y+€2.7bn in Q4
121.4
(84.5%)
40
40,8 44,4 45,8
14,9 15,1 15,53,9 4,1 4,1
31/12/2020 30/09/2021 31/12/2021
Funds & Sicav Bancassurance Managed Accounts and Funds of Funds
32,0 32,9 33,7
31/12/2020 30/09/2021 31/12/2021
INDIRECT CUSTOMER FUNDING AT €99.1BN
Assets under Management (AuM)
€ bn
63.7
Assets under Custody (AuC)1
€ bn
Management data of the commercial network. AuC historic data restated for managerial adjustments.Note: 1. AuC data are net of capital-protected certificates, as they have been regrouped under Direct Funding (see the previous slide).
Total Indirect Customer Funding at €99.1bn: +8.2% Y/Y and +2.6% Q/Q
Increase in AuM to €65.3bn: +9.6% Y/Y, thanks mostly to the excellent performance of Funds and Sicav (+12.2%), due to boththe price and the volume effects. Positive performance also in Bancassurance (+4.0% Y/Y) and in Managed Accounts andFund of Funds (+4.8% Y/Y).
AuC at €33.7bn: +5.5% Y/Y, thanks to the price effect.
59.6
+9.6%
+5.5%
+2.4%
+2.6%
3. FY 2021 Performance Details
65.3
41
1,250,51
0,105
2,50
1,40
FY 2022 FY 2023 FY 2024
Senior Pref. Subordinated Covered Bonds
FY 2022 FY 2023 FY 2024
Senior Pref. Subordinated
Managerial data based on nominal amounts. Excluding calls.Notes: 1. Maturities for institutional subordinated bonds are limited to the call for the €105m T1 instrument, as communicated to the market in our press release dated23 December 2021. 2. Include also the maturities of Repos with underlying retained Covered Bonds: €0.50bn in FY 2022. 3. With low impact on T2 Capital.
BOND MATURITIES: LIMITED AND MANAGEABLE AMOUNTS
Institutional bond maturities Retail bond maturities
€ bn € bn
1.91
0.0 0.0
0.500.50
32
3. FY 2021 Performance Details
3.85
1
42
4,3 4,31,7
31/12/20 30/09/21 31/12/21
6,0 6,9 7,0
31/12/20 30/09/21 31/12/21
0,4 0,6 0,1
31/12/20 30/09/21 31/12/21
3,25,5 5,8
31/12/20 30/09/21 31/12/21
1,4 1,90,7
31/12/20 30/09/21 31/12/21
13,612,7 10,3
31/12/20 30/09/21 31/12/21
FOCUS ON GOVIES PORTFOLIO
€ bn
Italian Govies at AC Italian Govies at FVOCI
€ bn € bn
Italian Govies at FVTPL
€ bn
Non-IT Govies at AC Non-IT Govies at FVOCI
€ bn € bn
Non-IT Govies at FVTPL
-83.6%
+5.7%
Notes: 1. Sensitivity per 1 bps change in rates. Management data, includingSwaps, Options & Forward 3. FY 2021 Performance Details
-62.0%-59.9%
-19.1%
+1.6%
-24.4% -60.2% -48.3%
+16.0% +78.4% -78.2%
Basis PointValue1
-€0.6m-€1.0m
Basis PointValue1
-€1.1m-€1.3m -€0.4m-€2.2m
-€0.9m-€1.0m -€1.3m-€1.2m -€0.5m-€1.1m
43
34,0%
20,3%
20,5%
4,3%
21,0%
LIABILITY PROFILE: BONDS OUTSTANDING AND ISSUES
Bonds Outstanding as at 31/12/2021
€17.6bn
CoveredBonds1
Cap.-ProtectedCertificates
SeniorPreferred
Subordinated(T1, AT1 and T2)
€3.7bn, o/w: €0.5bnnot included in OwnFunds Phased-in, butrepresenting MREL-
eligible funding
Nominalamounts
Wholesale bonds issued since 2017
€ bn
Managerial data based on nominal amounts.Note: 1. Include also Repos with underlying retained Covered Bonds.
SeniorNon-preferred
Focus on Wholesale bonds issuedin 2021/Jan. 2022
3. FY 2021 Performance Details
0,500,40 0,30 0,40
Jan-21 Jun-21 Jul-21 Jan-22
Senior Pref. AT1 Tier 2
First Social bondissued under the newESG Bond Framework
0,50
1,75
2,402,00
1,20
0,40
FY 17 FY 18 FY 19 FY 20 FY 21 Jan. 22
44
SOLID LIQUIDITY POSITION: LCR AT 209% & NSFR >100%1
Total Encumbered Eligible Assets at €52.1bn at YE 2021, o/w: TLTRO III exposure at €39.2bn as at31/12/21 (+€1.7bn in Q4 and +€11.7bn YTD)
3. FY 2021 Performance Details
Internal management data, net of haircuts.Notes: 1. Monthly LCR (Dec. 2021) and Quarterly NSFR (Q4 2021). 2. Includes assets received as collateral and is net of accrued interests. 3. Refers to securitieslending (uncollateralized high quality liquid assets).
Cash + Unencumbered Assets2
€ bn
44.2
19,912,3
3,1
6,8
8,3
8,9
8,0 19,028,0
2,93,6 4,1
31/12/2020 30/09/2021 31/12/2021
Marketable Securities (Non ECB eligible)
Depo Facilities (O/N) with ECB
Excess ECB deposits
Eligible Assets
€6.2bn averageamount in FY 2021
€16.4bn averageamount in FY 2021
Further liquid assets:
~€2bn HQLA lent3
37.643.2
45
NET PERFORMING LOANS 31/12/20 30/09/21 31/12/21 In % y/y In % q/q
Core customer loans 98.4 99.7 99.5 1.1% -0.2%
- Medium/Long-Term loans 74.0 77.1 77.3 4.4% 0.3%
- Current Accounts 8.0 8.3 8.2 2.7% -0.6%
- Cards & Personal Loans 1.9 1.6 1.3 -29.0% -14.7%
- Other loans 14.5 12.7 12.6 -12.7% -0.9%
Leasing 0.9 0.8 0.7 -18.7% -9.3%
Repos 3.5 2.4 3.7 5.1% 50.2%
GACS Senior Notes 2.3 2.4 2.3 -0.8% -3.7%
Total Net Performing Loans 105.0 105.3 106.1 1.0% 0.8%
CHANGE
105,0 105,3 106,1
4,3 3,5 3,3
31/12/2020 30/09/2021 31/12/2021
€ bn
NET CUSTOMER LOANS
Net Customer Loans2
Satisfactory increase in Performing Loans, with new loans granted at €22.7bn in 20211
NPE
Performing Loans
Notes: 1. Management data. See slide 38 for details. 2. Loans and advances to customers at Amortized Cost, including also the GACS senior notes.
109.3
Net Performing loans inStage 2 at €11.4bn as at
31/12/21, with acoverage of 2.8%
-24.0% Y/Y
+1.0% Y/Y
3. FY 2021 Performance Details
108.7 109.4
46
Non-FinancialCorporates
57,2%
Households26,0%
Financials9,4%
Other (Public Sector,No-Profit, etc.)
5,3%
GACS Senior Notes2,2%
ANALYSIS OF PERFORMING LOAN PORTFOLIO
Performing customer loan (GBV)breakdown as at 31/12/20211
6.8% 10.8% 11.0%
31/12/20 30/09/21 31/12/21
Stage 1 Stage 2
Staging evolution ofPerforming Loans
GBV in € bn
105.5
€106.6bn
17% represented by State-guaranteed loans with
average guarantee at 85%
Performing portfolio: EAD by risk categories2
89,0% 91,0% 90,8% 91,5% 92,0%
31/12/2020 31/03/2021 30/06/2021 30/09/2021 31/12/2021
Share of Low/Medium risk categories (EAD)
Notes: 1. GBV of on balance-sheet performing exposures. Financials include REPOs with CC&G. Management data. 2. Includes all performing customer loans subject to theinternal rating process (AIRB) + loans assisted by State Guarantess towards counterparties potentially subject to A-IRB. Based on 11 rating classes for rated performing loans.
3. FY 2021 Performance Details
105.7 106.6
47
31/12/2020 30/09/2021 31/12/2021
Value % Value %
Bad Loans 3,578 2,148 2,190 -1,388 -38.8% 43 2.0%
UTP 4,946 4,386 4,126 -820 -16.6% -260 -5.9%
Past Due 62 63 60 -2 -3.7% -3 -4.8%
NPE 8,586 6,596 6,376 -2,210 -25.7% -220 -3.3%
Performing Loans 105,508 105,724 106,577 1,069 1.0% 853 0.8%
TOTAL CUSTOMER LOANS 114,095 112,320 112,953 -1,141 -1.0% 633 0.6%
31/12/2020 30/09/2021 31/12/2021
Value % Value %
Bad Loans 1,462 934 906 -556 -38.0% -28 -3.0%
UTP 2,785 2,485 2,309 -475 -17.1% -176 -7.1%
Past Due 46 52 45 -1 -2.3% -8 -14.7%
NPE 4,293 3,472 3,261 -1,032 -24.0% -211 -6.1%
Performing Loans 105,042 105,261 106,123 1,081 1.0% 862 0.8%
TOTAL CUSTOMER LOANS 109,335 108,733 109,383 48 0.0% 651 0.6%
31/12/2020 30/09/2021 31/12/2021
Bad Loans 59.1% 56.5% 58.6%
UTP 43.7% 43.3% 44.0%
Past Due 26.4% 16.6% 25.3%
NPE 50.0% 47.4% 48.9%
Performing Loans 0.44% 0.44% 0.43%
TOTAL CUSTOMER LOANS 4.2% 3.2% 3.2%
COVERAGE
%
GROSS EXPOSURES€/m and %
Chg. y/y Chg. in Q4
NET EXPOSURES€/m and %
Chg. y/y Chg. in Q4
ASSET QUALITY DETAILS – LOANS TO CUSTOMERS AT AC
Data refer to Loans to customersmeasured at Amortized Cost, includingalso the GACS Senior Notes.
3. FY 2021 Performance Details
48
3,58 2,12 2,15 2,19
4,95
4,82 4,39 4,13
0,06
0,11 0,06 0,06
31/12/20 30/06/21 30/09/21 31/12/21
PD
UTP
Bad Loans
NPE EVOLUTION IN 2021: ANOTHER SIGNIFICANT STEP INDERISKING
NPE STOCK DOWN BY €2.2BN IN 2021, O/W: €0.2BN IN Q4
42% 30% 33%Share of Bad Loanson total NPEs (gross)
COVERAGE:TREND DRIVEN BY LOWER SHARE OF BAD LOANS AND HIGHER
SHARE OF SECURED POSITIONS AFTER PROJECT ROCKETS
% Share (GBV) of:
Coverage ratiosindicated in bracketsinclude write-offs
Secured Bad Loans
Secured NPE
8.67.1 6.6
-25.7%
-3.3%
GBV in € bn
4.3 3.7 3.5NET NPEs (€/bn)
6.4
34%
3.3
31/12/20
60%
30/09/21
64%
31/03/21 ADJ.post Rockets 31/12/21
66%
67%
65%
TOTAL NPE
BAD LOANS
UTP
PAST DUE 26.4%
43.7%
59.1%(65.2%)
50.0%(53.4%)
54.9%
45.9%
25.3%
44.0%
48.9%(53.4%)
58.6%(67.8%)
16.6%
43.3%
47.4%(52.1%)
56.5%(66.6%)
67%
3. FY 2021 Performance Details
49
REASSURING TREND OF NPE FLOWS & MIGRATION RATES
Inflows from Performing to NPEs
483 462
FY 2020 FY 2021
224 158
FY 2020 FY 2021
978 904110
FY 2020 FY 2021
Outflows from NPEs to Perf. Loans
Flows from UTP to Bad Loans
€ m
€ m
€ mUp at €174m including
also loans at FV
Impact from New DoD FTA
3. FY 2021 Performance Details
1,014
50
CAPITAL POSITION IN DETAILPHASED IN CAPITAL
POSITION (€/m and %)31/12/2020 30/09/2021 31/12/2021
CET 1 Capital 9,597 9,654 9,387
T1 Capital 10,397 10,830 10,564
Total Capital 12,304 12,782 12,524
RWA 65,606 66,374 63,931
CET 1 Ratio 14.63% 14.54% 14.68%
AT1 1.22% 1.77% 1.84%
T1 Ratio 15.85% 16.32% 16.52%
Tier 2 2.91% 2.94% 3.07%
Total Capital Ratio 18.75% 19.26% 19.59%
FULLY PHASED CAPITAL
POSITION (€/m and %)31/12/2020 30/09/2021 31/12/2021
CET 1 Capital 8,736 8,815 8,559
T1 Capital 9,431 9,908 9,652
Total Capital 11,338 11,860 11,613
RWA 65,868 66,167 63,729
CET 1 Ratio 13.26% 13.32% 13.43%
AT1 1.06% 1.65% 1.71%
T1 Ratio 14.32% 14.97% 15.15%
Tier 2 2.89% 2.95% 3.08%
Total Capital Ratio 17.21% 17.92% 18.22%
PHASED IN
RWA COMPOSITION
(€/bn)
31/12/2020 30/09/2021 31/12/2021
CREDIT & COUNTERPARTYRISK
54.9 56.0 54.1
of which: Standard 30.6 29.7 29.7
MARKET RISK 3.5 3.0 2.5
OPERATIONAL RISK 7.0 7.0 7.1
CVA 0.2 0.3 0.3
TOTAL 65.6 66.4 63.9
FULLY PHASED
RWA COMPOSITION
(€/bn)
31/12/2020 30/09/2021 31/12/2021
CREDIT & COUNTERPARTYRISK
55.2 55.8 53.9
of which: Standard 30.9 29.5 29.5
MARKET RISK 3.5 3.0 2.5
OPERATIONAL RISK 7.0 7.0 7.1
CVA 0.2 0.3 0.3
TOTAL 65.9 66.2 63.7
3. FY 2021 Performance DetailsNote: All data include also the Net Income of the pertinent quarters, net of dividendaccrual. 31/12/2020 data are net of the dividend paid in April 2021, for a total of €90.9m.
Leverage ratio Fully Loaded as at 31/12/2021: 5.44%
Leverage ratio Phased-In as at 31/12/2021: 5.92%
51
• Integrate ESG-oriented roles andresponsibilities within all activities
• Integrate ESG topics intocorporate policies
• Incentive scheme strengthenedwith ESG KPIs
• Attention to Inclusion & Diversity(I&D), with focus on femaleempowerment
• Integrate climate-related andenvironmental topics within therisk and lending processes
ESG ACTION PLAN: WELL ON TRACK ON ALL 7 WORKSTREAMS(1/2)
ESG KPIs defined and integrated into the remuneration policy for Top Management
Definition of roles and responsibilities of the ESG Ambassadors and kick-off of the initiative 50 colleagues, representing all the corporate units, selected for spreading the sustainabilityculture and enhancing the execution of the ESG plan
Portfolio mapping aimed at evaluating the Environmental risk
Identification process of climate scenarios of physical and transition risks started
Integration of climate risk within the risk identification process and first climate risk materialityassessment
Lending policies integrated with ESG factors
Dedicated unit “Inclusion Diversity & Social” set up in the HR Department
BBPM included in the Bloomberg Gender-Equality Index in Jan. 22
Gender Programme activated and kick-off of tailor-made paths of female empowerment
Increase in the share of women in managerial positions to 23.4% at YE 2021, from 20.8% at YE2020
ESG training for all the employees, with a more specialized focus on those resources involvedin the Workstreams of our ESG Action Plan
Respect project: >1,800 managers trained on “Respect, Inclusion and Positive behavior”
Start of the “Volontariamo” initiative
KEY ACHIEVEMENTS SO FARACTIVATED WORKSTREAMS
3. FY 2021 Performance Details
52
• Establish a dedicatedESG commercialoffering
• Define ESG investmentpolicy
• Strengthen consultingand offering of ESGinvestment products
ESG ACTION PLAN: WELL ON TRACK ON ALL 7 WORKSTREAMS(2/2)
Green Social & Sustainable Bonds Framework: first social bond issue perfected and analysis for furtherissues
Increase of the Plafond for ESG investments, new green residential mortgages and new mortgages foryoung people (under 36), backed by public guarantees
Green bancassurance Vera product (“One tree for Trentino” each new bancassurance product sold)
Training for Corporate sales force on Plafond for ESG investments and >600 hours of ESG education forenterprises
Integration of ESG risk in Advisory and Wealth Management
Wider ESG WM product portfolio with Third Parties and our Strategic Partners (Anima Esalogo, AnimaGender Equality, Anima Sistema Comunitam, Vera Financial Futuro Sostenibile); increase of productscompliant with Art. No. 8 and 9 from ~6% at YE 2020 to >14% as at 31/12/2021 of total AuM
ESG Advisor training at the SDA Bocconi for colleagues active in Private Banking, WM and Advisory (EFPAESG Certification obtained by a first group of 50 people)
>6,000 hours of Financial education for our stakeholders
KEY ACHIEVEMENTS SO FARACTIVATED WORKSTREAMS
• Further reduce directenvironmental impacts
• Strengthen relationshipswith internationalorganisations
• Develop ESG metricsand accountability
Conclusion of the first Compensation Project (Tanzania Project) compensating ~800 t. CO2 equivalent
Reduced Scope 1&2 net emissions of more then 7% in FY 2021 vs. pre-pandemic level1
Maintenance of the ISO Environmental, Energy and Occupational Health and Safety certifications
Banco BPM joins the UNGC and becomes a supporter of the TCFD in December 2021
BBPM included in the MIB ESG Index in Oct. 2021
Monitoring and control of the internal implementation of the new regulation for non-financial disclosure
>3,000 “Social Hours” dedicated to Corporate community services
3. FY 2021 Performance DetailsNote: 1. 2021 net emissions include also the impact of the first compensation Projectsupported by BBPM (the Tanzania Project); pre-pandemic data as at 2019.
53
One Board member designated as ESG referent for theICRSC
ESG targets integrated within short and long-term incentiveplans for the Top Management
Products for Energy Efficiency related to fiscal bonuses &Green Mortgages (with Energy Efficiency Mortgage Label)
Activation of the “ESG Action Plan” to fully integrate ESGinto our operating model (7 Workstreams and 32 Projects)
Green, Social and Sustainability Bonds Frameworkpublished and €500m Social Bond issued
Improvement in ESG Ratings (Standard Ethics, ISS,Sustainalytics and S&P) & inclusion in the FTSE MIB ESG index
Banco BPM joined the UNGC andbecame a supporter of the TCFD
Lending policies integrated with ESG factors for all sectors& Integration of climate risk within the risk identificationprocess and first climate risk materiality assessment
New “Inclusion Diversity & Social” and “Key People andTalents” Units set up in the HR Department
OUR PATH TOWARDS A SOUND SUSTAINABILITY STRATEGY
2018/2019 2020 2021
Internal Control and RiskCommittee1 in charge ofoverseeing sustainabilitytopics
First ESG materiality analysis(involvement of the topmanagement)
Definition of internal policiesfor non-financial reportingand ESG KPIs guide
Energy Managerappointment, within theOperations Department
High quality score of “B”assigned by the CarbonDisclosure Project
Creation of the SustainabilityUnit and of the ESG managerialCommittee chaired by the CEO
Mobility Manager appointment,within the HR Department
100% of electricity consumptionfrom certified renewablesources
ISO 45001 Occupational Healthand Safety, ISO 50001 Energyand ISO 14001 Environmentalcertifications obtained
Extraordinary measures for localcommunities and socialprojects (>€6m for socialinitiatives, 3,000 familiesinvolved, >160 schools helped)
€5bn Plafond for ESGinvestments
Notes: 1. In 2021 renamed as Internal Control Risks & Sustainability Committee
Inclusion in theBloomberg G-E Index
Improvement in thescore assigned by CDPfor 2021 to A- (from B)
First green coveredbond successfullylaunched on 9 March2022 (€750m)
Jan./Mar. 2022
54
AGENDA
Agenda - Banco BPM Group
1. GROUP PROFILE 3
2. GROUP FY 2021 RESULTS PRESENTATION 8
3. STRATEGIC PLAN 2021-2024 55
Strategic Plan 2021-2024Delivering value in a new growth-oriented environment
5 November 2021
56
Disclaimer
This presentation has been prepared by Banco BPM ("Banco BPM") and includes certain forward looking statements, projections, objectives and estimatesreflecting the current views of the management of the Bank with respect to future events.Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlyingassumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regardingfuture performance. Forward-looking statements are generally identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates” andsimilar expressions. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions which could cause actual results orevents to differ materially from those expressed or implied by the forward-looking statements. These forward-looking statements and information weredeveloped from scenarios based on a number of economic assumptions for a given competitive and regulatory environment.Banco BPM does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events orotherwise, except as may be required by applicable law. You should not place undue reliance on forward-looking statements, which speak only as of thedate of this presentation. All subsequent written and oral forward-looking statements attributable to Banco BPM or persons acting on its behalf are expresslyqualified in their entirety by this disclaimer.The information contained herein has not been independently verified. No representation or warranty, express or implied, is or will be given by Banco BPM,its subsidiaries or any of their respective representative, directors, officers, employees or advisers or any other person as to the accuracy, completeness orfairness of the information contained in this presentation and no responsibility or liability whatsoever is accepted by the same for the accuracy or sufficiencythereof or for any errors, omissions or misstatements negligent or otherwise relating there to.The distribution of this presentation in other jurisdictions may be restricted by law or regulation. Accordingly, persons who come into possession of thisdocument should inform themselves of, and observe, these restrictions. To the fullest extent permitted by applicable law, Banco BPM and its subsidiariesdisclaim any responsibility or liability for the violation of such restrictions by any person.This presentation does not constitute a public offer under any applicable legislation or an offer or invitation to subscribe for, underwrite or otherwise acquire,any securities of Banco BPM or an advice or recommendation with respect to such securities. This presentation and the information contained herein doesnot constitute an offer of securities in the United States or to any U.S. person (as defined in Regulation S under the U.S. Securities Act of 1933 (the "SecuritiesAct"), as amended), Canada, Australia, Japan or any other jurisdiction where such offer is unlawful.For the purposes of this notice, "presentation" means this document, any oral presentation, any question and answer session and any written or oral materialdiscussed following the distribution of this document. By participating to this presentation and accepting a copy of this presentation, you agree to be boundby the foregoing limitations regarding the information disclosed in this presentation.
57
Agenda
Out of the Crisis 58
Banco BPM’s Performance Track Record 61
2021-2024 Strategic Plan – Financials 67
Page
A comprehensive program embracing the whole business model 76
58
Out of the Crisis:A new promising scenario
59
Scenario: multiple sources largely converging on strong GDP growthwith upward Euribor movement mainly in 2024
• Post Covid-19 fiscal recovery boostin EZ and US, with a global traderebound
• Transportation & commodity costshike; supply bottlenecks
• Accelerated climate change rulings• Agreements on MNCs tax regime
• Fiscal expansionary NGEU Plan(passed by single EZ partners)
• ECB action plan implementation• EU Climate Action setting new and
more ambitious targets, on theback of the new taxonomy
• Recovery in 2021 (+~6% GDP)• PNRR1 implementation coupled
with Structural Reform agenda• Investment boost in public and
private sectors
Comprehensive assumptionsfactoring in recently emerged trends
Italy’s Real GDP trend (y/y % change)
Euribor 3m - bps
-0,42 -0,53 -0,49 -0,39 -0,15
2020 2021E 2022E 2023E 2024E
• A (relatively) morepredictableenvironment:domestic andextra-EU economicactivity showingclear signs ofstabilization in 2021
• Italy’s annual GDPtrend: turningpositive in Q3 2021
• Strong progress inCovid-19 pandemiccontainment: Italy'svaccinationcampaign steadilyproceedingtowards theGovernment’sambitious targets
-8,9%
6,0% 4,2% 2,4% 1,5%
2020 2021E 2022E 2023E 2024E
Globaleconomy
EU economy
Italianeconomy
1.PNRR = "Piano Nazionale di Ripresa e Resilienza", i.e. Italy's National Recovery and Resilience PlanSource: Prometeia, Banco BPM Research Department
60
PNRR: the "once-in-a-lifetime" occasion for Italy to re-establish enduring andsustainable growth within the wider “Next Generation EU” initiative
Digitalisation,innovation,
competitivenessand culture
€49.9bn
Greenrevolution and
ecologicaltransition
€69.9bn
Infrastructurefor sustainable
mobility
€31.5bn
Education andresearch
€33.8bn
Inclusion andcohesion
€29.8bn
Healthcare
€20.2bn
Total funding1 €235.2bnExpected boost in bank lending: €150/200bn
PublicAdministration
Cumulative GDP impact2
JusticeCompetitiveenvironment
• A program aimed at transforming the whole Italian economy, fully endorsed by the EU• Huge indirect impact on private investments – and thus on bank lending• A life-time opportunity for our country and, therefore, for a group like Banco BPM, with its strong presence in Italy’s most
dynamic geographic areas and industries
1. Total funding = PNRR €191.5bn + React UE €13.0bn + Complementary fund €36.6bn2. Source: MEF-DT elaboration on QUEST results, PNRR, Estimated GDP impact of PNRR components (percentage deviation from baseline)
2021E 2022E 2023E 2024E 2025E 2026E
0.5% 1.2% 1.9% 2.4% 3.1% 3.6%
6 missions involving all economic activities Comprehensive reform program – main components
Time horizon:2021-2026
Tax Labor law
61
Banco BPM’s performancetrack recordWell-established areas of strength, provenability to deliver
62
BANCO BPM: Well-established areas of strength with clear potential
1. On performing Loans - reference date: 30/06/20212. Source: BBPM elaboration on Istat Dataset "Prodotto interno lordo lato produzione" Edition Dec. 2020
Solid delivery trackrecord
• Successful completion, well ahead of schedule, of a complexintegration
• Strong delivery machine – able to far exceed efficiency and de-risking targets
• Solid financials, built on well-recognized areas of operationalexcellence
Ability to provide afull range ofproducts & services
One of the primaryPrivate Banks in theItalian market
Top Italian broker,market maker and issuerof structured products
Significant value inpartnerships withleading players
Leading national player: significant contribution to NetIncome combined with high growth potential
Top independent AM player
High growth potential especially in non-life, with theopportunity to fully internalize the value chain
Strong franchise inItaly’s wealthiest regions
Regional weight on total loans
to customers1
Lombardy: 41%
Veneto: 12%
Emilia-Romagna: 10%
Piedmont: 8%
~70% of our loans in 4 regions whichtogether represent ~50% of Italy’s GDP2
Integrated leadingdigital brand, onlinesince 1999
63
Challenging environment (2017-2019), %Main items 2015
20192
Target2019
Actual
Asset quality
Gross NPE stock €31.5bn1 €23.2bn €10.1bn
Gross NPE ratio 24.8%1 17.5% 9.1%
Net NPE ratio 15.7% 11.1% 5.2%
Costefficiency
Branches (#) 2,417 2,082 1,717
Staff (#) 25,073 22,560 21,950
Operating costs €3,086m €2,909m €2,604m
ProfitabilityTotal revenues €5,117m €5,209m €4,293m
Net income €594m €1,100m €797m
Capitalposition
CET1 ratio FL 12.3% 12.9% 13.0%
Texas ratio 162% 114% 52%
Solid profitability despite the challenging environment3
Euribor 3M
-0.38
-0.32
2017 2018 2019
-0,5
-0,3
-0,1
0,1
Yearly averageembedded in theStrategic Plan
-0.3 -0.3
+0.1
GDP
1,7
0.9
0.3
0
1
2
2017 2018 2019
1.0
1.2
1.1
1. Nominal values including write-offs2. Strategic plan 2016-20193. Delta vs original assumptions: Euribor (+0.10% Target vs -0.38% actual); GDP growth (+1.0% target vs, 0.3% actual); Change in perimeter:disposal of Gestielle and others; Reduced NII contribution from NPE
Actual
2016/2019 (“Merger”) Plan: mission accomplished, with strongoutperformance in Asset Quality, Cost Efficiency and Capital targets
64
• New digital-based customer interaction, with strengthened useof remote banking channels and new tools and solutions(Advanced Customer Analytics, Big Data, Digital Identity, etc.)
Service model
Operating structure & employees
• Proven flexibility in cost management: ability to reduceOperating Costs by >€170m in 2020 vs. previous year
• Stronger focus on new patterns of agile work to preserve thesafety of customers and colleagues, while ensuring businesscontinuity and commercial effectiveness
• Dedicated commercial efforts immediately activated toprovide our customers with adequate levels of financing,leveraging on public support measures
Customers
State-guaranteed loans1
BBPM market share: Covid State-guaranteed loansvs. Core Customer Loans as at 30/06/20212
Share on Gross Customer Loans (Total stock)
1. Include both Covid-related and Non Covid-related State-guaranteed loans2. Market share of Covid State-guaranteed loans ABI/Bankit data as at end of June 2021; Market share data on Core Customer Loans as at31 July 2021.
Support to the Italian economy, with positiveimpact on BBPM’s overall asset quality
Business Model adapted to the new challenging scenario immediately after the outbreak of Covid-19
Banco BPM reacted promptly to the Covid-19 crisis: accelerationtowards a more flexible and digital-oriented Business Model
7% 9%
Market shareCore Customer loans
Market shareGuaranteed loans
3%
15%
31/12/2019 30/06/2021
65
954 1.001 1.143 1.053 1.128 1.196 1.101
Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21
79 88 98 12279 86 83
Q1 20 H1 20 9M 20 FY 20 Q1 21 H1 21 9M 21
78 93217
-95
176 216 179
Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21
91,1
98,4 99,7
31/12/19 31/12/20 30/09/21
9,1 7,5 7,56,2 5,9
31/12/19 31/12/20 31/03/21 30/06/21 30/09/21
Back on track faster than expected: strong volume and profitabilitygrowth achieved in 9M 2021, with further derisking and solid capital
Volumes Profitability Asset quality & solvency ratios
“Core“ Net perf. Customer Loans, €bn
C/A & Deposits, €bn
Assets under Management, €bn
Total Revenues, €m
Cost of Risk, Progressive annualised data – bps
Net Profit from Continuing Operations, €m
Gross NPE Ratio, %
CET1 Ratio FL, %
MDA Buffer FL, bps
+€128mAdj.
+€227mAdj.
+€246mAdj.
87,8
100 102,5
31/12/19 31/12/20 30/09/21
58,3 59,663,7
31/12/19 31/12/20 30/09/21
13,0 13,3 12,7 12,9 13,3
31/12/19 31/12/20 31/03/21 30/06/21 30/09/21
1. As per the EU Transparency Exercise
~70 ~48
Core CoR
+€251mAdj.
4.8% using EBAdefinition1
250388 375 402 453
31/12/19 31/12/20 31/03/21 30/06/21 30/09/21
66
91,198,4 99,7 102,3
31/12/2019 31/12/2020 30/09/2021 31/12/2023E
1. Include AuM products and Capital Protected Certificates
3,5 3,24,7 4,5
FY 2019Avg. Q
FY 2020Avg. Q
9M 2021Avg. Q
FY 2023EAvg. Q
Investment product placements1
+€1.2bn
Pre-Covid
"Core” net customer loans
OLD 20-23SP Target
Strong evidence of commercial activity being already ahead of the 2023 targets included in the "old"strategic plan, notwithstanding a worse-than-expected macro scenario:
• Wealth Management: strong pace of investment product placements; 2021 progressively emerging as thebest year since the merger
• Core Customer Loans: significant growth since 2019 – faster than previous plan expectations – seizing theopportunity of publicly guaranteed loans
+4.6%
CAGR
OLD 20-23SP Target
Pre-Covid
Solid commercial track record and reliability: ready for new credibleand ambitious strategic targets
+2.9%
€ bn € bn
67
2021-24 STRATEGIC PLANFinancials & KPIs
68
STRATEGIC PLAN 2021-2024New 2021-2024 Strategic Plan targets vs. old 2020-2023 Strategic Plan
Targets of the Old SP 2020-2023 (March 2020)1
~ €4.4bnTotal
Revenues2023E
~ €2.6bnOperating
Costs 2023E
~6%Gross NPEratio 2023E
>7%ROTE 2023E
~ €770mNet Income 2023E
51bpsCost of Risk
2023E
~12.5%CET1 ratio FL 2023E
Targets of the New SP 2021-2024 (November 2021)
~ €4.6bnTotal
Revenues2024E
~ €2.4bnOperating
Costs 2024E
<5%Gross NPEratio 2024E
>9%ROTE 2024E
~ €1,050mNet Income 2024E
48bpsCost of Risk
2024E
~14.4%CET1 ratio FL 2024E
1. P&L data reclassified to ensure homogeneous comparison
69
11,9%
10,0%
13,0% 13,3% 13,3%~14% ~14.4%
2017 2018 2019 2020 30/09/21 2023E 2024E
STRATEGIC PLAN 2021-2024A solid track record, fostering a strong future performance
0,2%
3,7%
6,6%
3,2%
2017ADJ.
2018ADJ.
2019ADJ.
2020ADJ.
2021G 2023E 2024E
63,7%60,6% 59,8% 59,2% ~57%
2017ADJ.
2018ADJ.
2019ADJ.
2020ADJ.
2021G 2023E 2024E
1. Calculated as Net Profit from P&L (year x)/ Tangible Shareholder Equity 31.12.XX (excluding Net Profit of the period and AT1 instruments)2. 2017 and 2018 P&L data not fully comparable, due to different accounting standard (2017) and reclassification schemes (2017 & 2018)3. Calculated as per the EBA EU Transparency Exercise
21,1%
10,8%9,1% 7,5%
5,9% 5,4% 4,8%
2017 2018 2019 2020 30/09/21 2023E 2024E
GROSS NPE RATIO (EoP) CET 1 RATIO FL (EoP)
ROTE1 COST / INCOME RATIO2
Absorbing relevantRegulatory
Headwinds (-95bps)
4.7% EBAdefinition3
Covid-19 Crisis
~5%~7%
>9%
<57%~53%
70
3,9 3,8 4,1 4,1 4,4
2019 ADJ. 2020 2021G 2023E 2024E
2021G data represent the management guidance already provided to the market with the H1 2021 results presentation
1. Include net interest income, net commissions and net income from associates. 2. Excluding also AT1 from Tangible shareholders' equity
o/w core
revenues1
CAGR 2019-2024
+2.4%
4.3 ~4.4 ~4.6
+1.0%
4.2
€ bn-1.3%
2,62,5 ~2.5
~2.4 ~2.4
2019 ADJ. 2020 ADJ. 2021G 2023E 2024E
COST/INCOME
59.2% ~57%59.8%
74122
80/9058 48
2019 2020 2021G 2023E 2024E
649330 ~530
~740~1,050
2019 ADJ. 2020 ADJ. 2021G 2023E 2024E
ROTE2 3.2%6.6%
o/w: 70bps Core
TOTAL REVENUES OPERATING COSTS
COR (in bps) NET INCOME
+2.5%
CAGR 2021-2024
+0.9%-1.4%
~4.3
+10.1%
+25.5%
€ bn
€ m
~53%<57%
~5% >9%~7%
Chg. vs. 2023 (ca. +€260m),with a broadly equal splitamong NII, Net Commissionsand Net Income fromAssociates
Key targets of the Strategic Plan 2021-2024Profitability highlights
71
1.745 1.692-20 +210 +125 -185
+80 +30
2019 2020 2021G 2024ENII Net Fees &Commissions
Pre-Provision Income
€ m CAGR 2021G-2024
Associates
+3.9%
NFR & Other Reductionin Personnel
Expenses
Reductionin Other
Costs
~€1.9bn >€2.1bn
Lower net contribution from TLTROand securities portfolio
Sound commercial bankingperformance, taking advantage ofPNRR-driven volumes and Euriborimprovement
o/w: Management &Advisory fees ca. +€150m,mostly (~85%) due to therunning component
Improvement in the contribution fromAssociates, mainly thanks to the newBancassurance Business Model to beadopted as from 01/01/2024
Strict cost discipline to morethan compensate therenewal of the nationallabour contract andinvestments
Key targets of the Strategic Plan 2021-2024Pre-Provision Income evolution
72
2020 2021G 2023E 2024E
C/A & CUSTOMER DEPOSITS ASSETS UNDER MANAGEMENT«CORE» NET PERF. CUSTOMER LOANS
98,4 99,7 105,3 109,0
31/12/20 30/09/21 2023E 2024E
€ bn
+2.6%
Customer volumesPNRR-enabled lending growth coupled with significant increase in AuM
100,0102,5
100,2 98,6
31/12/20 30/09/21 2023E 2024E
59,6 63,7 73,5 78,7
31/12/20 30/09/21 2023E 2024E
New Lending1 Investment product placements2
Cumulative net AuM Flowsin the period 2021-2024:
+€14.5bno/w: €2.4bn already registered
in 9M 2021
CAGR 2020-2024 CAGR 9M 2021-2024
+3.0%
-0.4%
-1.3%
+7.2%
+7.3%
1. M/L-term loans (Sec. and Unsec.), Pool and Structured Finance (incl. revolving)2. Investment products placements include AuM product and also Capital Protected Certificates
2020 2021G 2023E 2024E
>27>21 >24 >26
>17 ~19 ~19.6~13
73
Maintained above this guidancethroughout the Plan period
Key targets of the Strategic Plan 2021-2024Asset quality, Capital position, Liquidity & Funding
9,1%7,5% 5,9%
5,4% 4,8%
2019 2020 30/09/21 2023E 2024E
-4.3pp
LCR >140%
NSFR >100%
GROSS NPE RATIO
NET NPERATIO
3.9% 3.2%5.2%
LIQUIDITY & FUNDING
Solid buffer vs requirements maintainedon a continuous basis
MREL
1. Calculated as per the EBA EU Transparency Exercise
10.1 8.6 6.6 ~6.5 ~6.0
Stock ofGross NPE,€ bn
~2.5%~3%
EoP
Dividend payout in the period 2021-2024 40%
CET 1 RATIO FL
EoP13,0% 13,3% 13,3% ~14% ~14.4%
2019 2020 30/09/21 2023E 2024E
~540 ~590453388250MDA Buffer(bps)
4.7% EBAdefinition1
74
13.3%
+20 bps -100 bps
-20 bps
Retained
earnings after
dividend &
AT1 coupon
30/09/2021 Business
development
(impact of volume
growth +
participations)
2024E
+210 bps
CET1 ratio Fully Loaded (%)
Other
components
CET1 ratio and MDA bufferSolid capital position and wide buffers further improved
RWA FL €66.2bn ~€68bn
MDA BUFFER FL 453bps ~590bps
OUTLOOK FROM 2025:
• Basel IV net impactestimated at~-80bps, to bephased in 8 years
• Progressive recoveryof DTA deductedfrom CET 1
BUFFER ON CET1MINIMUM REQ. FL
480bps ~ 590bps
14.4%
Detailed in thefollowing exhibit
Considering a dividendpayout of 40% in the
period 2021-2024
• Mainly represented byFVOCI, Intangibles andother components
• Negligible impact fromregulatory headwindsover the plan horizon
BS & Capital
management
actions
75
Capital Management actions: creating additional CET1 capitalequivalent to +20 bps on a net basis over the plan horizon
Negativeimpact
-42 bps
Capitalabsorbing
Positiveimpacts
+62 bps
Consumer Finance:expiration of Agos put option
-26 bps
Bancassurance-16 bps
Profamily run-off+10 bps
Real Estate Optimization+15 bps
Balance Sheet Management+36 bps
Expires in mid-2023 - conservatively assumed as notrenewed
Any restructuring agreement (e.g., put extension, IPO,etc.) might have positive impact on capital
Base case, assuming 100% internalization and applicationof Danish Compromise, as in all similar Eurozone cases
Progressive run-off of historical consumer finance portfolio(~€0.5bn RWA) coming from former BPM subsidiary
Disposal over the plan horizon (~€0.7bn RWA) Focus mainly on properties held as investments
Synthetic securitizations: cumulative impact of ~ +30 bps Other managerial actions (e.g.: cancellation of unused
credit lines): ~ +6 bps
IMPACTS ON CET 1 RATIO DETAILS
Before Basel IV tailwinds
76
2021-24 STRATEGIC PLANBased on 3 rock-solid Pillars, enabled by acomprehensive set of infrastructural measures
77
A comprehensive program embracing the whole business model
3 strongpillars…
…supportedby 3
foundationstones
A newdigital-driven
service model...
Robust Balance Sheet, Asset Quality fully under control
…enablingsustained core
businessgrowth…
… leveragingon effective
productfactories
People, processes & systems as key infrastructural enablers
ESG-integrated business model
1 2 3
1
2
3
78
Since 2020 open only half day –equivalent to <1,500 FTE
BBPM’s DIGITAL TRANSFORMATIONReady for a new digital-driven service model
30% 28% 26% 19% 17%
70% 72% 74% 81% 83%
2017 2018 2019 2020 30/09/2021
Branch-based Remote-based
% Branch and Remote-basedtransactions
Main digital-enabledachievements
Key focus areas
Significant reshapingand optimization of thephysical distributionnetwork
Branches Cash desks
# APP-based transactionsMontlhy average (/000)Remote Banking
increasinglyrepresenting the keychannel for customerinteractions
2.2461.727 1.429
2017 2019 30/09/2021
463 565824
1.3311.747
2017 2018 2019 2020 30/09/2021
4.982
3.3462.423
2017 2019 30/09/2021
#, EoP #, EoP
79
Digital-driven service modelDesigned to address full potential opportunities
Important opportunityto improve the shareof customerspurchasing on arecurring basis
~25% of retail customers
purchasing a product on a12-month basis
Room to increase thecommercialeffectiveness onspecific products
100 100 100129 136 123
Resid.Mortgages
HealthInsurance
POS
BBPM Peers
Significant branch-based transactionvolumes can still be‘digitalised’
Still significant potential of value creation …
Product diffusion among customer base(indexed2)
3
1. Data refer to 20202. Source: Banco BPM elaborations on market research data – reference date 31/12/20203. Only companies with annual revenues below €10m4. Annualized data based on 9M 2021 results
… addressed with a Digital-driven service model based onthree main levers:
Advanced tools for effective omnichannel sales processes
• Customer Engagement switching to a full analytical andomnichannel approach
• Adoption of new Advanced Analytics and Digital marketingcapabilities/ tools
• Accelerated Catalogue Remotization for Products and Services
C
Empowered network specialization & commercial focus
Digital & Mobile-centric daily customer interactions
• New "Digital Branch" set-up based on the attribution of skilledresources dedicated to remote selling activities
• Branch network focused on commercial activities• Specific actions on high-potential segments (e.g. new SME
Business Centers)
• Continuous investments on Digital Platforms, with focus onMobile and SMEs
• Optimization of Customer Service Assistance• Empowerment of Digital adoption initiatives
A
B
Branch-based transactions (#/m) C
1
2019 4.2
2021E
8.4 18.45.8
10.6
2.5
4.23.9
Cash withdrawals
Wire Transfers
MAV/Bills/F24
80
A
1. As reported on 21 October 20212. Includes Cash Withdrawals, Wire Transfers and MAV/F24/bills3. Annualized data based on 9M 2021 results
Continuousinvestments in DigitalPlatforms with focuson “Mobile” and SMEs
Optimization ofCustomer Assistance
Main ActionsDigital & Mobile-centric daily customer interactions
Clients enrolled in digital
% of Remote-based transactions
Best-in-classBankingAPP customerreviews1
4,7/5 on iOsStore
4,7/5 on GoogleStore
Volume reduction in physical operations
Branch-basedoperation2 volumes (m)
Mix of Customer CenterInbound Assistance
• Constant enrichment and innovation of thecustomer Mobile APP to maintain today’sexcellent level of digital customer experienceover time
• Development of dedicated new SME digitalservices (business financial management, SMEmobile APP) and extended ERP integration inpartnership with
• “Voice Of Customer” dedicated AI tools/platforms to support digital services design
• Improved services design and adoption ofself/smart assistance tools driving strongreduction in operator-based share of inboundassistance activities
Digital Adoption
• Empowered adoption initiatives to furtherdrive the enrollment and usage of digitalservices
• Special focus on “Digital Identity” (targetadoption 2024 by > 90% of customers)enabling progressive paperless experience
Digital-driven service model – Matching the digital shift of customerattitudes and activities and pursuing paperless experience
30%
43%
70%
H1 2021
2019 68%
2024E
73%
>80% of which mobile
74%
83%
2019
H1 2021
2024E >90%
2024E
10.6
2019 2021E3
18.4
6.436 59 7564
2019
41
20242021E3
25
Operator-based assistance
100 100 100
E
Self/digital tools
81
B Main ActionsEmpowered commercial focus and network optimization
Evolution of Customer Centers into Digital Branch
% commercialcontacts / Total
# In-branchcash desks
Optimization of in-branch cash desks
• From 2020, all cashdesks opened onlyhalf-day
• Cash tellers to beretrained to perfomcommercialactivities
SME point
Further branchnetwork focus oncommercialactivities and onhigh potentialsegments
• Digital shifting of processes andoperations enabling increasedcommercial time aavailability ofwithin the branch network
• "Industrialized" retail commercialapproach on specific segments/products
• From lead generation to Direct/Remote Sales: proactivecommercial support, fullyintegrated with marketingautomation and Customer Journeys
Customer Centerevolution intoDigital Branch
> 200 FTE’s1 dedi-cated to commercialactivities by 2024 (vs.current ~30)
1. Internal and external (outsourced) total Customer Center frontline FTE’s
Digital-driven service modelIncreasing the commercial focus of the distribution network
2,423
2024E2019 30/09/2021
~1,600
3,346
6%15%
2019 9M 2021 2024E
~70%
Equivalent to< 1,000 FTE
82
Advanced tools for effective omnichannel sales processes
OmnichannelCustomer JourneyApproach
Profound requalification from moretraditional commercial campaigns toa new “Omnichannel CustomerJourney Approach”, based onAdvanced Analytics and coveringmain customer needs/offer categories
Availability of retail product categories on remote channels
% of Customers actively interacting with commercial offers on digitalchannels
BBPM network individual customers
Webank customers
BBPM network SME customers
Availability of retail product categories on remotechannels (i.e. at least one product available in each
category)
Remotization ofProducts andServices Catalogue
Development of Omnichannel Customer Journeys
Empowerment ofDigital marketingcapabilities
Adoption of new marketingautomation architecture and tools tosupport Customer Analytics andintegrated digital marketing activities
Main Actions
Completion of the remotizationroadmap for the main retail productsand services, including remoteadvisory and sales journeys, based oncustomer needs
# of active CustomerJourneys
Onboarding
2021E 2022E 2023E
Personal Loans
Resid. Mortgages
Financial Advisory
Invoice financing Short-term loans
Cards
Non-life Insurance
2021E 2022E 2023E
1. Reference date 30/9/20212. Data refer to the period between 1st July 2020 and 30th June 2021
Digital-driven service modelOmnichannel and Analytics contributing to revenue growth
C
623
2019 2021E1 2024E
>50
30%
36%Jun 20212
2019
2024E >60%
83
Retail sales1
(#, indexed 2019 = 100)
1. “# Sales transactions” on main retail product categories, excluding typical ‘Onboarding’ products (cards and current accounts)2. Advanced analytics-driven Sales: Advanced Analytics insights made available to RM’s or used to generate remote/omnichannel offers3. Remote Sales: Self or Remotely-assisted full digital Sales; Omnichannel Sales: significantly digital channels-contributed branch sales (e.g. onlineprice quotation and product selection/request)4. Data refer to the period between 1st July 2020 and 30th June 20215. Annualized data based on H1 2021 results
… generating further growthA more efficient and effective service model …
% Commercialon total networkemployees
Branch Networkrationalization(#)
Advanced Analytics-drivenSales2
% Retail sales1
mix evolution
Remote and OmnichannelSales3
Digital-driven service model – Enabling a significant expansion of therevenue base and increased commercial focus of the network
2019
30/09/2021
2024E
~65%
~67%
>75%
1,727
2019 Old 2023 target New 2024 target
1,530 ~1,300
~38%
2024E
2019
>60%
2021E4
~22%
~23%
~8%
>50%
100109
131
2021E52019 2024E
84
SMEs Corporate & Investment Banking
Family Banking Wealth Management
Further development of our solidhousehold client base through aninnovative digital approach
A constantly evolving omnichannelapproach based on state-of-the-artproducts and financial advisory tools
Specialization in the service model andadoption of new distribution formats tofacilitate expansion into under-penetrated areas and to improvecross-selling
Further strengthening our role as a keyplayer leveraging on increasedstrategic focus and Group synergies
Digital transformation enabling commercial growth throughout 4 mainsegments/business areas
85
100 104
0
50
100
150
2021 2024E3
26 26 2729
2019 2020 2021E 2024E
Target trajectory 2019-2024
Mortgages1 (€bn)
CAGR 2021E3-2024E (%)
1 2 Core revenues: total amount andbreakdown2 (€m)
+3.2%
1. Loans of Family Banking, excluding NPE2. Core revenues of Family Banking, excluding NPE and AuM/AuC (management data; interest calculated using internal transfer rate)3. Annualized data based on 9M 2021 results4. Margins on loans and deposits include both volume and spread effects
458
361 355
602
2019 2020 2021E 2024E
+19.2%
Margin on Loans4
(2021E = base 100)
3 3
Margin on Deposits4
(2021E = base 100)
+1.3%
+2.7%
3
Net fees &commissions(2021E = base 100)
Total amount (€m)
3CAGR 2021E3-2024E (%)
+9.5%
Non-lifeBancassurancefees
+6.8%Consumer FinanceAgos fees
+3.7%Digital Payments/Cards
Family BankingSignificant growth in core revenues
-100
-48
-150
-100
-50
0
2021E 2024E
-21.8%
100 108
0
50
100
150
2021E 2024E
Mainly driven byEuribor increase
86
Futherdevelopment ofour solid householdclient basethrough aninnovative digitalapproach
Action Drivers
Strategicambition
Fully implementedOmnichannelApproach
Omnichannel-based approach
• Customer-centric focus on financial needs
• Relationship Managers involved to provide adviceand develop business opportunities
Proactive commercial contribution from Digital branch
Marketing automation supporting productivity/commercial penetration realignment on selected areas(e.g. consumer finance)
Focus on ESG andspecific customersegmentopportunities
Customer value management approach leveragingon behavioral clustering and focusing on specificopportunities (e.g. Government guarantees onmortgage loans for younger borrowers, third age, etc.)
refocalization on Millennials and digitalcustomer acquisition, in full synergy with the branchnetwork
High impact of ESG driven by PNRR-relateddevelopment of green mortgage loans as well asenergy requalification of household Real Estate assets(Superbonus 110%)
Leverage on high-standing productfactories
Full exploitation of the collaboration with productfactories: Agos and Bancassurance
HouseholdMortgages(newvolumes)
€4.6bn
Target 2024
vs. €3.8bnin 2019
Selected KPIs
vs. ~€4.3bnin 2021E1
ConsumerFinance(newvolumes)2
€1.1bn
vs. €974min 2019
vs. ~€900min 2021E1
1. Annualized data based on 9M 2021 results2. Booked by AGOS – Banco BPM perceives origination commissions based on new production
Family BankingStrategic ambition, action drivers and commercial KPIs
87
Net WM commissions (€m)AuM (€bn)
Target trajectory 2019-2024 (BBPM + Aletti)
58 60 6479
2019 2020 30/09/2021 2024E
1
63% 63% 64% ~70%
707 644767 920
2019 2020 2021 2024E
+6.3%+7.3%
1. Consolidated data. Core Direct Funding includes Current Account and Deposits2. Annualized data based on 9M 2021 results
% AuM/Total AuM+ AuC
E2
• 9M 2021: AuM Growth of ~€4bn, of which ~€2.4bn net inflows and ~€1.6bn market effect• 2022-24: increasing net inflows up to €4.4bn in 2024, with market effect prudently maintained below €1bn per year
CAGR 9M 2021-2024E (%) CAGR 2021E2-2024E(%)
Wealth ManagementExploit deposit base to increase AuM, with positive impact on revenues
1 2
Running fees to account for ~85% of the totalgrowth in Net WM commissions
88
A constantlyevolvingomnichannelapproach basedon state-of-the-artproducts andfinancial advisorytools
Action Drivers
Continuousevolution of newintegratedcommercialtools
Strong focus onvalue-addedsolutions
Bancassurance
Product factories to be exploited at full scale
Completion of product/service range solutions withESG focus
Asset Management
Expand the range of investment solutions & increaseESG focus
Strengthened quality of revenues through increasedrunning fees
Full synergies with Anima
Strategicambition
CRMAnalytics
CustomerJourneys
WEB Cooperationand Advisory
Key tool forcustomer
analysis andcluster
profiling
Commercialactivity
developedalong
structured“plots”
Full satisfaction ofcustomer needs
through acomprehensiveservice model
1. Data referred to retail individuals, SMEs and private2. Annualized data based on 9M 2021 results
Selected KPIs
Investment Center in orchestratingasset allocation and providing market insights
Wealth ManagementStrategic ambition, action drivers and commercial KPIs
AuM NetInflows1 €4.4bn
Target 2024
vs. €658min 2019
vs. ~€2.4bnin 9M 2021
Totalplacements1 €19.6bn
vs. €11.2bnin 2019
vs.>€17bn
in 2021E2
89
Strategic focus areas
New ServiceModel
EmpoweredValueProposition
Synergicgrowthstrategy
• New customer segmentation(Institutional/UHNWI/Corporate)
• New ESG-focused WM approach, witha dedicated service model
• Reinforced network and centralorganization
• Dedicated SME and corporatesynergies program
• Cross-fertilization with investmentbanking & fiduciary services andInstitutional clients
• dedicated digital solutions
• New family office services
• Expansion in private insurance andprotection solutions
• Private Bankers recruiting plan
• New alternative and private marketproduct offerings
• Empowered Academy
Highlights on current status(forecast 2021)
PrivateBanking
• 270 PrivateBankers/ FinancialAdvisors
• Aletti Fiduciariaand Aletti Suisse
DedicatedHNWI Bank
~70 FinancialSpecialists dedicatedto Banco BPMretail network
InvestmentCenter
€17.4 bn volumesDirect & Indirectfunding• Additional €14.8bn
from other BBPMcustomers/activities1
1. Includes: €7,4bn indirect funding managed deposits for Custodian Bank activities, € 6,7bn of Banco BPM customers managed by BancaAletti (the so-called “Accreditati” ) and € 0.7bn of Institutional customers2. Annualized data based on 9M 2021 results
Wealth ManagementImportant contribution from
Indirectfunding(dedicatedHNWIs’)
€18.3bn
vs. €14.6bnin 2019
vs.~€15.4bnin 2021E2
Fee income €123m
vs. €87min 2019
vs.~€100min 2021E2
o/w AuM(dedicatedHNWIs’)
vs.~€11.3bnin 2021E2
vs. €10.5bnin 2019
€14.3bn
Selected KPIs
Target 2024
90
New public measures generating significant business developmentprospects in Corporate & SME Banking
Super & Ecobonus: alreadycontributing to P&L with a
long-term perspective
• As of 30/9/2021: volumes~€650m, total NII associated~€58m, progressively bookedin P&L according to maturityof underlying assets1, netcommissions ~€5m2
• Total volumes expected byend-2023: ~€3.5bn, leadingto a cumulative NIIcontribution of ~€315m (to bebooked progressively overtime according to maturity ofunderlying assets1)
1. Maturity variable between 5 and 10 yrs depending on the characteristics of the assets2. Net commissions generated on a one-off basis
Impact on lending growth(Focus: B2B Loans, €bn)
~71
~76
~80
~5
~4
31/12/2020
Growth "before" PNRR
31/12/2024E "before"PNRR
PNRR impact
31/12/2024E "after"PNRR
• CAGR “before” PNRR: 1.8%• CAGR “after” PNRR: 3.1%
Ambition:become adistinctiveplayersupportingour clients toexplore andexploit the fullpotentialarising fromthe PNRRthroughoutthe wholevalue chainby playing 2pivotal roles
PNRR full impact potential~€8bn, conservatively reduced
to ~€4bn in our estimates
Reference LendingPartner:Financing/co-financinghigh-value addedprojects, either directlyand/or through thepurchase of tax credits
Advisor of Choice:Offering specializedconsultancy servicesenabling our customersto seize the mainopportunities arisingfrom PNRR
PNRR: a game changer for the Italian market, a unique opportunity for BBPM
91
2831 33
35
2019 2020 2021 2024E
Target trajectory 2019-2024
1. Loans of SMEs, excluding NPE2. Core revenues of SMEs, excluding Wealth management, NPE (management data; interest calculated using internal transfer rate)3. Annualized data based on 9M 2021 results4. Margins on loans and deposits include both volume and spread effect
1.2361.197 1.204
1.395
2019 2020 2021 2024E
SMEsSignificant revenue growth outpacing increase in volumes
Loans to customers1 (€bn, EoP)
+5.0%
E3 E3
+2.6%
+1.8%
+3.2%
-31.4%
3
Core revenues: total amount andbreakdown2 (€m)
Total amount (€m)
CAGR 2021E3-2024E (%) CAGR 2021E3-2024E (%)
+8.6%Up front fees andhedging fees:
+6.8%Acquiring fees:
+6.0%Trade financefees:
1 2
100 105
0
50
100
150
2021 2024E
Net fees &commissions(2021E = base 100)
100 110
0
50
100
150
2021E 2024E
3
-100
-32
-150
-100
-50
0
2021E 2024E
Margins on Loans4
(2021E = base 100)
Margins on Deposits4
(2021E = base 100)
Mainly driven byEuribor increase
3
92
vs.€7.5bn in
2019
vs.~€8.6bnin 2021E1
vs.~€271min 2021E1
vs.€249m in
2019
Action Drivers
Differentiatedcustomermanagementaccording tocompany sizeand needs
Advisory &financing services
Integratedomnichannel
offer
RelationshipManager
SMEsStrategic ambition, action drivers and commercial KPIs
• PNRR-related financing and services
• Agrifood
• State-incentivized finance
• Ecobonus/Superbonus
Dedicatedinitiatives topursueattractiveopportunities
Composite Coverage Teams with dedicatedSpecialists supporting the local RelationshipManagers in the most strategic service lines
1. Annualized data based on 9M 2021 results2. High-value added business: acquiring, trade receivables, non life insurance, consumer finance, structured finance, hedging, tradefinance and other selected non-traditional services
Transactionalservices
Net fees andcommissions:strategiccomponents2
NewCustomerLoans
Selected KPIs
Target 2024
€10.5bn
€338m
Specialization inthe service modeland adoption ofnew distributionformats tofacilitateexpansion intounder-penetratedareas and toimprove cross-selling
Strategicambition
93
SMEsSignificant contribution expected from new SME Business Centers
FROM
Of which ~70 SME Business Centers in areas with high growth potential forBBPM
in particular: Turin, Bologna, Padua, Vicenza, Treviso, Florence, Bari ...
… with dedicated task forces of development-oriented RelationshipManagers
New Management Modelfor SME clients (€5-75m turnover): serving ~45k SMEs, with loans of ~€20bn
~150 new specialized SME Business Centers (~80 "Full Business Centers"coordinating additional ~70 "teams")
~400 RMs "relocated" from the branch to the new SME point
Customized credit and commercial powers
~5 RMs per Full Business Center, often working side-by-side with PrivateBankers
RelationshipManager"hosted" inside~250 "traditional"branches (~1.6RM per"generalist"branch)
FROMTO
94
34 37 3742
2019 2020 2021 2024
CAGR 20213-2024E (%)
+4.1%
1. Corporate and Institutional, excluding NPE2. Corporate, Institutional and Banca Akros, excluding NPE (management data; interest calculated using internal transfer rate)3. Annualized data based on 9M 2021 results4. High-value-added business: Corporate (trade finance, hedging, structured finance and pro-soluto) + Banca Akros5. Margins on loans and deposits include both volume and spread effect
821 843 871
1.027
2019 2020 2021 2024E
Loans to customers1 (€bn)
Corporate & Investment BankingBuilding on a strong market position to deliver further volume andrevenue growth
Target trajectory 2019-2024 (Corporate + Institutionals + Akros)
E3
+5.6%
E3
+2.2%
+7.3%
-27.9%
3
CAGR 20213-2024E (%)
Core revenues: total amount andbreakdown2 (€m)
Total amount (€m)
High-value-addedbusinesses4:
+3.3%
Net fees &commissions(2021E= base 100)
100 107
2021 2024E
100 110
0
50
100
150
2021E 2024E
3
-100
-32
-150
-100
-50
0
2021E 2024E
Margins on Loans5
(2021E = base 100)
Margins on Deposits5
(2021E = base 100)
Mainly driven byEuribor increase
3
1 2
95
Action Drivers
Feesgeneratedin high-value-addedbusinesses2
Corporate & Investment BankingStrategic ambition, action drivers and commercial KPIs
NewCustomerLoans
vs. €10.1bnin 2019
vs. €157min 2019
SoW3
vs. 10.6%31/12/2019
1. Annualized data based on 9M 2021 results2. High-value-added businesses: Corporate (trade finance, hedging, structured finance and pro-soluto) and Banca Akros3. SoW of Corporate segment – target referred to end of period
vs. ~€9.1bnin 2021E1
vs. ~€172min 2021E1
vs. 11.2%30/09/2021
Growth inhigh-value-addedbusinesses
Core BusinessOptimizations
Seize thePNRRopportunity
Exploit GroupSynergies
• Reinforce our Leadership position in the Structured Financebusiness, thanks to hiring new selected skills in structuringand strengthening syndication capabilities;
• Bolster our Trade and Structured Export Financing business
• Optimization of the risk-return profile: focus on capitalefficiency & EVA contribution
• Increase in effectiveness through support/analysis tools, i.e.risk- adjusted pricing, forward looking evaluation ofcustomer performance
• Enhance liquidity and support the working capital needs ofCorporate clients (Supply Chain Finance and Tax Credits)
• Finance PPP projects and advise PA in funding keyinfrastructure projects
• Focus on Specific Sectors/ Industries relevant within PNRR
• Tailor-made approach and client centricity as the way toexploit the full capabilities of Banca Akros and Banca Aletti
• Facilitate clients’ access to capital markets and tointernational M&A opportunities (through partnership withOaklins)
Selected KPIs
Target 2024
€11bn
€213m
12.0%
Strengthening ourrole as a keyplayer leveragingon increasedstrategic focusand Groupsynergies
Strategicambition
96
Corporate & Investment BankingInvestment Banking: further reinforcement of
48%34% 35%
23%36% 28%
18% 23%18%
11% 7%19%
2019 2020 2024E
InvestmentBanking
Brokerage
Corporate &Instit. Banking
GlobalMarkets
4 business lines providing specialized support to the Group’s customer baseand generating “stand-alone” revenuesCore Income Breakdown and Net Profit
147 >160Core
Income1
38 >50Net Profit1
Main action drivers
24
125
1. Revenues and net profit on a "stand alone" (individual) basis
• Investment Banking: support and developGroup client base leveraging on theinternational M&A network Oaklins – activein ~50 countries – with further M&Aspecialisation in new industry segments andfacilitate Group clients’ access to capitalmarkets
• Brokerage: capitalize current leadershipposition in placing capabilities andbrokerage activities/equity research, withfurther development of on-line customersand foreign investors
• Corporate & Institutional Banking: promoteinnovation in products (e.g. Direct Listing ofCertificates and Structured insurancepolicies) and services (e.g. Hedging ofselected commodities), with focus ondigitalization and ESG-based products
• Global Markets: enhance trading/marketmaking activities, financial engineering andhedging services
97
STRATEGIC GROWTH ENGINESOur high-value product factories
Bancassurance Asset Management
High growth potential, withopportunity to internalize the wholevalue chain
Top independent AuM player
Consumer Credit
Leading national player: significant and reliable contribution toNet Income, combined with high growth potential
98
BANCASSURANCE: partnerships restructured in 2021, enabling futureBusiness Model evolution – full internalization by end-2023
BipiemmeVita
BipiemmeAssicurazioni
VERA Vita
VeraFinancial
100% 100%
VERAAssicurazioni
VeraProtezione
100%
65%
65% 19%
81%
35%35%
Bancassurance participations: current set-up andrecent developments
April 2021
• Agreement with Cattolica granting Banco BPM a call option toacquire 65% of the Vera JVs
• Call can be exercised starting from mid-2023
July 2021
• Agreement with Covea granting Banco BPM a call option toacquire 100% of BPM Vita
• Call can be exercised starting from September 2021 until end-2023
Potential evolution: key elements to take into account
Optionalities
Banco BPM can choose, at its sole discretion,to internalize the whole Bancassurancebusiness or to activate new partnership(s)
ProductivityWide room to increase Bancassurancevolumes, in line with our peers
Profitability
Additional volumes, together with potentialcost synergies, able to generate importantadditional net profit – on top of the impactcoming from an increase in the stake
Capital
Favorable regulatory treatment expected incase of internalization with the application ofthe “Danish Compromise”
Operationalmodel
Opportunity to leverage on existing –consolidated and scalable – platform providedby BPM Vita/BPM Assicurazioni (currentstaffing: ~130 HC)
99
BANCASSURANCESignificant opportunities, both in life and in non-life
2,8
2,3
2,0 1,9
1,2
0,7
0,0
0,5
1,0
1,5
2,0
2,5
3,0
Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 BBPM
DE
Life GWP / # of branches, H1 2021 (€m)
Market Maturity1
LIFEOpportunity from Productivity gap
Productivity Gap Productivity Gap2
GWP/GDP, 2020
Bancassurance penetration,2020
2,1%3,5%
Italy Europe
6,8%10%
Italy Europe
85
108
15
17
BBPM Peers
Credit Protection
Stand Alone (including Motor)
1. "Europe" includes UK, Germany, France and Spain2. Number of Sales transactions / Individual Customers, including automatic renewals where applicable (indexed, 2019 = 100)Source: Economist Intelligence Unit, Ania, ABI, ICEA, Finaccord report, EMF Group, Analyst Presentations and other market researches
NON-LIFEOpportunity from Market Maturity and Productivity Gap
+100
125
100
GWP
~3,150
~2,200~2,650
~4,000
2019 2020 2021 2024E
LIFE
Highly sustainable volumes considering the total salescapacity of BBPM’s network (total placements of investment
products: (€14.2bn in 9M 2021; €19.6bn in 2024E)
NON-LIFE
BANCASSURANCEStrong growth enabled by increased focus on the product
(€m)
~150 ~140
~180
~240
2019 2020 2021 2024E
GWP (€m)
E1
1. Annualized data based on 9M 2021 results
E1
Wide opportunity for BBPM to increase its productivity in theNon-Life insurance business (BBPM 2020 Non-Life Insuranceproduct diffusion on individual customer base is below 15%;
home insurance < 10%; health insurance < 3%) whileexploiting expected market growth
101
THE LEADING INDEPENDENTASSET MANAGER…
…WITH SOLID FINANCIALS… ...WHERE BBPM IS THE KEYSHAREHOLDER
AuM
€59.2bn
€200bn2
€208.5bn
€514.7bn
€521.7bn1
Net Income (€m)
19,39%
10,36%
5,03%
4,97%
2,97%
2,78%
54,51%
BBPM
Poste Italiane
Wellington Mgnt Group LLP
River & Mercantile AM LLP
Norges Bank
DWS Investment
Other
1. Aggregate AuM of Eurizon, Fideuram and Pramerica2. As at 30/09/2021
AuM (€bn)
173186 194 200
2018 2019 2020 30/09/2021
122 146 155 176
2018 2019 2020 9M 2021
ANIMAIndependent asset manager, at the crossroads of potential marketconsolidation options
• Strong volume growth potential generated by Banco BPM’s ambition in WM• Further indirect benefits from Banco BPM’s expansion in Bancassurance, leveraging on consolidated
relationships with BPM Vita and with Vera Vita/Vera Assicurazioni
Data Dec. 2020, source: Assogestioni (April 2021) Source: FY 2020 Financial Statements
102
DOMESTIC CONSUMER CREDIT MARKETEvolution of the overall size
A STRONG POSITIONMarket share
WITH SOLID ECONOMICSNet income (normalised)
60,565,9
53,3
35,1
2018 2019 2020 H1 202113%
13%
21%
266241
208
149
2018 2019 2020 H1 2021Data source: Assofin (automotive captive excluded)
€m€bn
Data source: Assofin market share 2020, cards excluded
AGOSA consolidated value generation history in a solid business
1H
Opportunity toincrease commercialeffectiveness throughalignment of internalproductivity
82 126 167 235
Lowest 3rd 2nd Top
Consumer Finance sales / # of RM’s1 at branch level – Average per quartile, €/000
1. Relationship Managers dedicated at individual customer management level. Data refer to 9M2021
103
STRATEGIC GROWTH ENGINES: SUMMARYMaterial growth in contribution enabled by increased commercialand organizational focus
1. Annualized data based on 9M 2021 results2. Income from associates net of tax as equity profits are not relevant for tax purposes
517 450 590 ~740
2019 2020 2021 2024E
Contribution to fee income (€m)
126 124 149 ~180
~90
2019 2020 2021 2024E
Contribution to income fromassociates2 (€m)
Dedicated focus
• Organizational and Commercial focus on Non-Life Insurance and Consumer Finance(dedicatedSpecialists)
• Leverage on Financial Specialists to support growth in Wealth Management
Complete omni-channel offer
• Roll-out complete range of omnichannel-based product solutions• Increased specialized coverage through remote tools• Explore specific new digital offerings (e.g. instant lending, instant savings…)
Integratedtools
• Introduce a new integrated and analytics-based life-cycle wealth management platform (savings,borrowings, investments, retirement, non-life risks, …)
SIGNIFICANT INCREASE IN CONTRIBUTION "Bancassurance"
E1 E1
+8.0%CAGR 2021E1-2024E (%)
~270Impact ofBancassuranceinternalization
Total contributionfromBancassurance2024E: ~€125m
104
BALANCE SHEET: Further strenghtening in Asset Quality and strong riskcontrol in Financial Investments and Funding Strategies
Credit & Asset quality:Achieve and maintain the status of "low NPE Bank"
Financial Asset & Liability Management:Confirm and further improve Banco BPM’s solid profile
• Strong Liquidity & Funding position, no reliance on ECB’s extraordinaryfunding measures
• Active management of Bond Portfolio investments, with continuing trendaimed at reducing the share of Italian Govies
• Credible NPE strategy based on our strong derisking track record
• New monitoring & management systems set to improve our asset quality inthe coming years
105
3,5
12,6
0,6 1,1 1,5
Credit & Asset Quality – Towards the status of "Low NPE Bank"
24,1% 21,1%10,8% 9,1% 7,5% 6,2% 5,9%
31/12/16 31/12/17 31/12/18 31/12/19 31/12/20 30/06/21 30/09/211
4,8% 5,9%
30/09/21 2023 OLD 2020-23SP Target
2017 20192018 2020 9M 2021
Material and ongoing asset quality improvement since the merger…
1. As per the EU Transparency Exercise2. Exclude -€0.3bn due to IFRS 9 reclassification3. Gross NPE reductions excl. ptf. disposals
Gross NPEratio
72.5% 51.0% 38.6%160.3% 119.4% 31.4% 29.2%Texas ratio3
…ahead of old Strategic plan targets
Gross NPE Ratio – EBA definition1
Derisking drivers
Successful NPE disposal strategyNominal Value of NPE portfolio disposals, €bn
Decreasing Default Rate and effective workout performanceGBV, €bn
1,8 1,8 1,2 1,0 0,7
-2,9-4,0
-2,3-1,4 -1,2
2017 201920182 2020 9M 2021
1.9%
9.5%
1.9%
15.7%
1.2%
19.0%
1.0%
13.8%
0.9%
18.2%
Default rate
Workout rate
Workout3
Gross NPE inflows
TOTAL = €19.3bn
106
Credit & Asset Quality – Asset quality evolution elaborated starting from available estimatesat national level, taking into account BBPM footprint + strong managerial actions
Credit risk datawarehouse
Monitoring & EWsystem evolution
New approach toNPE management
4 strategic initiatives aimedat achieving further assetquality improvements vs."inertial" evolution
Credit policystrengthening
Banco BPM’s footprint allows to assume a "better-than-national-average" inertial asset qualityevolution
~1%
~3%
>6%
>2%
1.5%-2%
<1.5%
Analysis at district ("provincia") level: “Italian BankingIndustry” Default Rate (DR) vs Banco BPM’s loansmarket share. Reference date: Dec. 2020
“Industry”DR
BBPM loansmarket share
2,72,0
1,6
Share ofBBPM loans
0.3%
3.5%
96.2%
Initiatives 2020-24Estimates at national level "Inertial "evolution for Banco BPM
Default rate, %
1.Reference date: 2020 for default rate; 31/12/2020 for BBPM market share and share of BBPM loansSource: Prometeia; Bank of Italy statistics
2022E 2023E 2024E
107
Credit & Asset Quality – New monitoring & management system setto improve our asset quality in the coming years
Advanced credit riskdata warehouse
• Integrated managerial and risk data
• Strengthen granularity enabling full data analytics –based visibilitythroughout the organization supporting decision making
Strengthening ofcredit policies
• Higher policy specialization by sectors (e.g. Agrifood and RealEstate) and inclusion of a dedicated Financial Sustainabilitymodule in line with EBA LOM guidelines
• Clearer focus on risk-reward perspective and support of ESGinitiatives (focus on CO2 reduction and energy savings)
• Strengthened integration with budgeting and MBOs
Monitoring & EarlyWarning systemevolution
• New EW development, leveraging on daily bank accountdata and machine learning techniques
• Improved risk control through workflow-driven strategies
• Performance-based risk prevention, operational KPI settingand monitoring
• Full activation of the JV with Gardant allowing workoutimprovement in bad loans
• Definition of more standardized UTP management approaches,defining quicker and more effective workout solutions
• Activation of a more proactive and intense use DPOs and singlename disposals
New approach toNPE management
1. Includes Cure Rate
Danger rate, %
Default rate, %
Proactive/accelerated usage ofDPO/single name disposals
13,2% 15,2% 17,3%5,1% 5,2% 4,6%
2022E 2023E 2024E
18.3% 20.4% 21.9%
3,5% 4,3% 6,4%
14,7% 12,3% 10,0%
1,8% 1,2% 1,0%
Cure rate, %
NPE Workout rate1, %
New de-risking initiative: €650m additional disposals – already fully provisioned in 9M 2021
2022 estimates include conservativeassumptions on exit trajectory fromCovid-19 pandemic
108
Balance Sheet – Liquidity & Funding strategy and Securities portfoliomanagement
1. Issues net of maturities
Liquidity &Funding
Securitiesportfolio
37,5
9,0
YE
2024E
30/09/21
• Progressive full reimbursement of TLTRO:leveraging on excess liquidity
• Usage of “ordinary ” ECB funding: ECBfunding outstanding at end 2024 expectedat €9bn (wholly represented by L-TRO)
• Reduction of ECB assets from around €28bnto around €3bn
Reduction of reliance on ECB fundingOutstanding, € bn
Net Bond issuances (incl. LT repos) 2021E-2024E1
• +€2.4bn unsecured bonds (Senior and Subordinated)
• +€11.8bn secured bonds (covered bonds, ABS & LT repos)
Balanced share of Italian Govies
Further reduction of Italian Govies in a strategy oriented topreserve stable duration and sensitivities (down to <50% of totalGovies at YE 2024E, vs. 59% as of 30/9/2021)
Solid buffer preservedvs MREL requirementson a continuous basis
LCR well >140%throughout the Plan
NSFR comfortably>100% throughout thePlan
Key Funding & LiquidityTargets
109
INFRASTRUCTURAL ENABLERS: OVERVIEW
People Strategy:
Planning for the future
IT & processes:
New digital-enabled backbone to support the Group transformation
• Streamlined processes fully leveraging on digitalization
• €650+ m IT investments to support the architectural model, omnichannel, IToperating model and cybersecurity
• A people-oriented approach aimed at attracting and retaining talents
• Skills and competence building, coupled with strong cost discipline
110
2,2951,727
~1,530
People strategy – enhanced voluntary retirement scheme coupledwith network rationalization actions to keep costs fully under control
Voluntaryretirementscheme
• A voluntary retirement schemeinvolving ~1,600 HC in 2021-23 +~500 vs. Old Plan Target
• Use of benefits from the solidarityfund, favoring generationalturnover and youth employment,with ~800 new hires between 2021and 2023
1,8711,697 ~1,660
Retailbranches
• Increased ambition vs Old Plantarget: > 200 further closures
1. The original agreement signed in December 2020 had a target of 1,500 exits and 750 new hires. The agreed numbers increased to 1,607and ca. 800, respectively, in Q1 2021
HR costs evolution, €m
Retail branches evolution, # EoP
<1,600
2019 New Plan
2024 Target
2016 ADJ. Old Plan
2023 Target
2019 New Plan
2024 Target
2016 Old Plan
2023 Target
~1,300
o/w: ~1,000 alreadyretired in June 2021
111
People Strategy: planning for the future – A people-orientedapproach aimed to attract and retain talents
• Common sense of purpose: act in the interest of our stakeholder community
• Attractive value proposition: safe and stable work environment, wellbalanced lifestyle, meritocratic reward system
• Strong attention to work-life balance
• Flexible and inclusive leadership style: build trust, respect and collaboration
• Generational turnover enabled by potentiated new hiring plan
• Talent growth supported by tailormade personal development programs
• Young talents attraction and retention: partnership with university, tailor-made development program and a new dedicated Unit in HR department
• Competence building: customized training plans to master globalemerging trends (e,g, digitalization, green footprint, big data &analytics) combined with strong attention to soft skills
• Strong focus on e-learning and mobile learning
• Accelerated learning on-the-job through rotation programs,personalized coaching & mentoring
• Identification of high-potential within the gender program
• Commitment to ambitious diversity targets in managerial roles
• ESG-dedicated education and training classes and a new dedicatedunit in HR department to develop diversity & inclusion
1. Detailed in the following exhibit
A comprehensiveand well-articulated
people strategy…
… preparing theground for the
leaders oftomorrow…
… strongly focusedon the development
of human capital…
… within a clear ESGframework
• “Smart” working days: 500,000 in 2024(+500% vs 2019)
• Wellbeing at work initiatives (W@W): 5,000attendances in dedicated training days in2024 (+120% vs 2021)
Illustrative KPIs – target for 2024
• Women involved in individualdevelopment plan: >2.500
• Volunteer initiatives (VolontariAmo): 5,000hours for corporate community services in2024 (+95% vs 2021)
• Individual development plan involving~40% of population, with focus on: Manager Young People Talents Commercial Network
• Upskilling and Reskilling programs involving~15% of population, with focus on: IT personnel, with actions concerning
big data & analytics Corporate Control Functions personnel,
consistent with the evolution ofregulatory system
100 hirings of young talents graduatedin digital-related disciplines
112
People Strategy: planning for the future – Skill and competencebuilding coupled with strong cost discipline
Virtual Classroom# of sessions
E-learning# Learning object
Digital# of Video/podcast
12,711
Overallgrowthvs. 2020
694
1,822
Investments in up-skilling and re-skilling
Includes voluntary exit plan
~1,700<1,600
~100 ~1,800 ~200
2020 inertialgrowth
2024E -before
managerialactions
impact ofmanagerial
actions
2024E target
Normalized for Covid-related savings
Learning effort – targets 2024
+16.5%
+24.6%
+19.2%
Evolution of HR costs
113
Operationalexcellence
Using data to empower decisions
• Evolve the Data architecture and adopt Advanced Analytics
• Develop data-driven Customer Journeys
Adopt technologies with transformational potential for our business
• Boost IT transformation with new technology (es. Cloud nativeapplication, Machine learning, Microservices, API)
• Open innovation to exploit new “external” opportunities
Delivering outstanding customer experiences
• Consolidate the ‘Mobile first’ approach in the adoption of theomnichannel model
• Partnerships with fintech companies, innovation centers anduniversities for the use of Open Banking solutions
Continuous Improvement and slimming down complexity
• Create a stable operating environment leveraging on ITassets lifecycle process
• DevSecOps lifecycle based on continuous development
Data& Analytics
Emergingtechnologies
Digitaltransformation
Technology enabling the Strategic Plan
Key initiatives 2021-2024 Selected KPIs
€650m+cumulative
’21E-’24E
~€250mcumulative
’21E-’24E
Total ITinvestments…
… o/wdigital-related
Evolution of IT investments, €m
100~135
~170
2020 2021E Annual avg.2022E-24E
+70%
114
Strengthen cybersecurity posture – Resilience and IT riskmanagement
Key initiatives 2021-2024 Selected KPIs
Manage security risks effectively
• Deliver forward-looking visibility on IT risks to empower technologyand business development
• Continuous improvement of confidentiality, availability and integrityof customer data in line with regulatory requirements (GDPR, Privacy)
Build a future-ready cyber-resilient business
• Stay ahead with security research and innovation to unlocktechnology adoption (e.g. Cloud, Online Services, Third Parties, ...)
• Take advantage of DevSecOps to embed security in IT developinglifecycle
Reduce exposure to threats and contain attacks• Layering security defence to improve detection, prevention and recovery
from cyber attacks• Zero-trust approach to keep pace with the evolution of threat landscapes
A pathway from business continuity to organizational resilience
• Adapt the continuity plan to absorb shocks in a complex and rapidlychanging environment
• Enhance recovery solutions to face emerging challenges (e.g.security threats, climate changes, etc.)
Resilience
IT riskevaluation
Security bydesign
Defence-in-depth
€650m+cumulative
’21E-’24E
~€45mcumulative
’21E-’24E
Total ITinvestments…
… o/wsecurity-related
8 ~9~12
2020 2021E Annual avg.2022E-24E
Evolution of security investments,€m
+50%
115
ESG INTEGRATIONThe five Milestones of our ESG strategy
116
SET UP OF THE ESG GOVERNANCE BODIESAND ESG FUNCTION
BOD
ESG COMMITTEE
SUSTAINABILITYUNIT
Responsibile forESG strategy anddisclosure1 Board memberdesignated as ESGreference point forthe ICRSC
Dedicated corporateESG function
INTERNAL CONTROL, RISKS &SUSTAINABILITY COMMITTEE Supervises
sustainability andsocial responsibilityfactors andreporting
Coordinates Groupactivities and ESGtargets
ESG IntegrationGovernance and accountability: important goals already achieved
ESG ACTION PLAN LAUNCHED TO FULLYINTEGRATE ESG INTO OUR OPERATING MODEL
7 WORKSTREAMS:
People
Risk & Credit
Customers: Business
Customers: Wealth Management
Environment
Governance
Stakeholder Engagement& Measurement
ESG TARGETS INTEGRATED INSHORT-TERM & LONG-TERM
INCENTIVE PLANSFOR CEO & MANAGEMENT
IMPROVED ESG RATINGS1:
• Standard Ethics to EE (from EE-)
• ISS Governance Quality Score to 1(from 7)
• Sustainalytics to 25.8 (from 27.7)
GREEN, SOCIAL AND SUSTAINABILITYBOND FRAMEWORK PUBLISHED
(first social bond issued in 2021)
INCLUDED IN THE FTSE MIB ESG INDEX
1. Updated as at 04 November 2021
117
ESG IntegrationMILESTONE 1 – Business
• Strengthening of our ESG commercial offeringwith dedicated workforce specialized in ESGproducts and services
• Expansion of the range of ESG AuM products,aimed at channelling our customers’ savingstowards sustainable initiatives
• Advising Corporate and SME clients to face ESGchallenges with training and workshops
• Enhancing our ESG proprietary investments
• Increasing the issuance of green and socialbonds
ACTION DRIVERS
1. Mortgages granted to customers for property in classes A-B-C or renovated with energy efficiency improvements2. Purchase of real estate tax credit related to “Superbonus 110%”: tax incentives linked to energy redevelopment and seismic risk reductionoperations
In addition dedicated “ESG financial” training planned for SMEs – over 1,500 hours
KEY TARGETS
SHARE OF NEW LENDING TO GREEN/LOW TRANSITION RISK SECTORS > 65%
2020 TARGET 2024
ISSUANCE OF GREEN & SOCIAL BONDS €2.5bn
AKROS AS LEAD MANAGER OR BOOKRUNNER OF ESG BONDS €12.5bn
CUMULATIVE TARGET 2021-2024
CORPORATE BOND PROPRIETARY PORTFOLIO:SHARE OF ESG BONDS
> 30%
BBPM GREEN RESIDENTIAL MORTGAGES (NEW LENDING)1 €4bn
8%
PURCHASE OF REAL ESTATE TAX CREDIT2 €3bn
CUMULATIVE TARGET 2021-2024
118
KEY TARGETS
ESG IntegrationMILESTONE 2 – Risk & Credit
• ESG factors fully integrated into BBPM’s credit policies across all sectors,with tangible results already expected in 2022:
− Exclusion or strictly selective approach for sectors with highenvironmental risk – representing only 2% of our loans1
− Driving change: active support to the climate transition of ourcustomers by dedicated forecasting tools to evaluate and stimulatethe adequacy of ESG business plans
• Risk Management Framework integrated with Climate factors:
− Full inclusion of Climate factors into RAF2, ICAAP and stress testingstarting from 2022
− Climate-related and environmental risk factors fully embedded inBBPM’s Internal Rating System by 2023
ACTION DRIVERS
STOP NEW LENDING TO SECTORSSTRONGLY AFFECTED BY CLIMATETRANSITION:• Mining and quarrying of hard coal• Manufacture of coke oven products• Coal-based energy production
> 80%
RUN-OFF
SIGNING OF: NET-ZERO BANKING ALLIANCE TCFD3
SCIENCE-BASED TARGETS INITIATIVE4
NEW LENDING TO FOSSIL FUELS-RELATED SECTORS LINKED TOTRANSITION PROJECTS
1. Reference date: 30 September 20212. Risk Appetite Framework3. Task Force on Climate- related Financial Disclosures4. Greenhouse gas emissions reduction targets in line with the Paris Climate Agreement
OVER THE PLAN HORIZON
119
• ESG accountability: management incentive schemes to include aselected number of KPIs connected to the differentresponsibility/unit/role, extended to a wider group of managers
• Diversity & Inclusion:
- Talent enhancement and increase in the share of women inmanagerial positions
- In-depth evaluation of the current status of D&I, including GenderPay Gap, in order to define an effective action plan
- Reinforce programs for the reintroduction of personnel onmaternity leave
• Attraction and retention of young talents: partnerships withuniversities, tailor-made development programs
• Identification of ESG ambassadors in all corporate functions,accountable for the integration of ESG topics in our policies by 2024
1. Within the context of the generational turnover program, involving 800 new hires between 2021 and 2023
ESG IntegrationMILESTONE 3 - People Strategy
ACTION DRIVERS
SHARE OF WOMEN IN MANAGERIAL POSITIONS > 30%
TARGET2024
SHARE OF NEW HIRINGS BETWEEN 20-30 YEARS1
> 100
SMART WORKING DAYS
ESG AMBASSADORS
OVER THE PLAN HORIZON
• 400,000 TRAINING HOURS FOR EMPLOYEES ON ESG THEMES
• ONGOING SUPPORT TO OUR EMPLOYEES THROUGH OURSOLID INCLUSIVE WELFARE SYSTEM
KEY TARGETS
> 90%
500,000
120
• New guidance for a responsible use of energy in ourbuildings and new policy for the corporate fleet
• Reduction of net emissions:
− Energy efficiency and Real Estate rationalization
− Process digitalization
− Compensation projects
• Smart working to reduce employee-related Scope 3emissions
• Material reduction of paper waste enabled bycustomer digital identity (adoption > 90% by 2024)
• Maintenance and renewal of existing Certifications1
1. ISO 45001 Occupational Health and Safety, ISO 50001 Energy and ISO 14001 Environmental certifications2. Electricity, Oil and Gas3. Oil and Gas (Market-based)
ESG IntegrationMILESTONE 4 - Environment
ACTION DRIVERS KEY TARGETS
TOTAL2 DIRECT & INDIRECT ENERGYCONSUMPTION (Scope 1 & 2Gigajoule)
TARGET2024
588K732K
2019
-20%
To improve to-30% by 2030
USE OF ELECTRIC ENERGY FROM CERTIFIED RENEWABLE SOURCES
MAINTAINED AT 100%
17.5 K
B
TOTAL NET3 DIRECT & INDIRECT EMISSIONS(Scope 1 & 2 Tons Co2 equivalent)
CDP RATING
INDIRECT EMISSIONS FROM COMMUTERS(Scope 3 Tons Co2 equivalent)
A
-21%
CARBON NEUTRALITYOVER THE PLAN HORIZON
16.6 K 13.1 K
121
ESG IntegrationMILESTONE 5 - Community
ACTION DRIVERS KEY TARGETS
• Subscription of UN Global Compact
• Supporting initiatives aimed at community resilienceand wellbeing: Art and Culture, Charity, Researchand Health, Education, Inclusive Sports projects.
• Sustaining local social initiatives, in particularimproving school equipment and rewardingtalented students
• Confirming BBPM as a strong financial partner for theThird Sector1
Investing in educational activities thereby fostering ourESG culture: financial education, ESG awareness,gender equality in Science, Technology, Engineeringand Mathematics, campaigns engaging partners,suppliers and clients• Involvement of our employees in corporate
community services
1. Non-governmental and non-profit-making organizations or associations, including charities, voluntary and community groups, cooperatives, etc.2. AIRC Italian Association for cancer research. Banco BPM as institutional partner since 2019.
OVER THE PLAN HORIZON
CORPORATE COMMUNITY SERVICES, ESGAWARENESS AND FINANCIAL EDUCATION
> 10,000 hours
GRANTS FOR SUPPORT TO SOCIAL ANDENVIRONMENTAL PROJECTS
~ €10m
NEW LENDING TO THIRD SECTOR > €700m
AIRC2 INSTITUTIONAL PARTNER
5,000researchers &660 projects
SOCIAL INITIATIVES FOR LOCALCOMMUNITIES, SCHOOLS AND STUDENTS
> 300 initiatives
122
2021-24 STRATEGIC PLANConcluding remarks
123
Key targets of the Strategic Plan 2021-2024
1. CAGR calculated based on 2020 costs normalized for lower variable remunerations and other covid-related savings for a total of ca.90m vs. Adjusted data 2. Calculated as Net Profit from P&L (year x)/ Tangible Shareholder Equity 31.12.XX (excluding Net Profit of theperiod and AT1 instruments). 3. Excluding REPOs and including Cap. Protected Certificates. 4. Excluding Cap. Protected Certificatesfrom AUC. 5. Calculated as per the EBA EU Transparency Exercise.
€bn
Profit& Loss
Balancesheet &Capital
2024E2020
4.15
0.33 Adj.
3.2% Adj.
(1.09) Adj.
(2.46) Adj.
91.6
59.2% Adj.
3.65
109.3
122 Stated
13.3%
+ >6 pp
~(6) pp
7.5%
(74)
120.1
0.13
Total revenues
RoTE2
Net income
Loan loss provisions
Indirect funding4
Cost / Income ratio
Operating costs
Net customer loans
Cost of Risk (bps)
Direct funding3
CET1 ratio FL
Gross NPE ratio
o/w NII + Net Commissions
o/w Associates
Net NPE ratio 3.9%
>9%
~111.4
~53%
~121.1
48
4.8%
~132.0
~2.5%
~4.6
~1.05
~(0.58)
~(2.4)
~4.1
~0.28
2023E
~7%
~106.8
<57%
~116.1
58
5.4%
~127.5
~3%
~4.3
~0.74
~(0.68)
~(2.4)
~3.9
~0.18
2021G
~4.4
~0.53
~5%
~(2.5)
96.6
~57%
108.7
80/90
13.3%
5.9%
121.4
3.2%
30/09/21
Key ratios
Key ratios
1.69Pre-Provision Income >2.1~1.9~1.9
CAGR ‘20-’24
+2.4%
+33.4%
-14.6%
-1.1%1
+3.0%
+21.4%
+5.0%
+2.6%
+2.4%
+6.0%
Gross NPE ratio EBAdefinition5 2024E: 4.7%
~14.4%~14%
Delta‘20-’24
124
Concluding remarks
3 strongpillars…
…supported by3 foundation
stones
A successful restructuringstory
Ready to start a new journey:a strengthened businessmodel, allowing increasingeffectiveness
Ambitious targets
Based on prudentestimates of keyperformance drivers
Fully credible, takingour delivery trackrecord into account
A newdigital-driven
servicemodel...
Robust Balance Sheet, Asset Quality fully under control
…enablingsustained
core businessgrowth…
… leveragingon effective
productfactories
People, processes & systems as key infrastructural enablers
ESG-integrated business model
1 2 3
1
2
3
RoTE: >9% NPE RATIO: 4.8% CET1 RATIO: 14.4%
125
I N V E S T O R R E L A T I O N S
Registered Offices: Piazza Meda 4, I-20121 Milan, ItalyCorporate Offices: Piazza Nogara 2, I-37121 Verona, Italy
investor.relations@bancobpm.itwww.bancobpm.it (IR Section)
CONTACTS FOR INVESTORS AND FINANCIAL ANALYSTS
Roberto Peronaglio +39-02-9477.2090
Tom Lucassen +39-045-867.5537
Arne Riscassi +39-02-9477.2091
Silvia Leoni +39-045-867.5613
Carmine Padulese +39-02-9477.2092
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