Q1 2021 Group Results Presentation

6 May 2021

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This presentation has been prepared by Banco BPM ("Banco BPM"); for the purposes of this notice, "presentation" means this document, any oral presentation, any question and answer session and any written or oral material discussed following the distribution of this document.

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The information contained in this presentation is for background purposes only and is subject to amendment, revision and updating without notice. Certain statements in this presentation are forward-looking statements about Banco BPM. Forward-looking statements are statements that are not historical facts and are based on information available to Banco BPM as of the date hereof, relying on scenarios, assumptions, expectations and projections regarding future events which are subject to uncertainties because dependent on factors most of which are beyond Banco BPM's control. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements 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 actual results or events to differ materially from those expressed or implied by the forward-looking statements. Banco BPM does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. You should 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.

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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 regarding the information disclosed in this presentation.

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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 Financial Consolidated Act that the accounting data contained in this presentation correspond to the documentary evidence, corporate books and accounting records.

Q1 2021 Group Results Presentation 2

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 of tax has been reclassified in one new single P&L item: "FV on Own Liabilities net of Tax"; the previous quarters of 2020 have been reclassified accordingly.
  • Starting from 31/12/2020, an exposure in separate P&L items after tax is also provided for those non-recurring, particularly significant results deriving from extraordinary decisions (restructuring charges for the use of the redundancy fund, redundancy incentives, branch closure rather than 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 from current operations", with the aim of allowing a more immediate understanding of the results of current operations. In light of the new classification 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., in which 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 is considered of strategic nature and which is destined to be held on a stable basis, is deemed to represent a situation of significant influence on the side of Banco BPM.

Q1 2021 Group Results Presentation 3

Agenda

1.

Summary

4

2.

Key Achievement Highlights

11

3.

Q1 2021 Performance Details

25

Q1 2021 Group Results Presentation 4

EXCELLENT Q1 PERFORMANCE: WELL GEARED FOR THE FUTURE

STRONG OPERATING

PERFORMANCE

  • VOLUMES: solid growth confirmed
    • Core Net Performing Loans: €99.2bn (+5.6% Y/Y)
    • CA & Deposits: €101.7bn (+12.8% Y/Y)
    • AuM: €61.3bn (+13.3% Y/Y)
  • CORE REVENUES: €968m (+5.9% Y/Y) - best result since Q4 18 driven by Net Commissions (€471m; +7.0% Y/Y)
  • PRE-TAXPROFIT: €259m (+150% Y/Y)

NET INCOME

AT €100M

ADJUSTED1 NET INCOME

AT €151M

FURTHER DERISKING AND SOLID CAPITAL

WELL EQUIPPED IN

AN EVOLVING

COMPETITIVE ARENA

  • ENHANCED DERISKING: €1.65bn NPE disposal, o/w €1.5bn in Q2 2021, with P&L impact estimate already frontloaded2
  • GROSS NPE RATIO: stated at 7.5%, down to 6.3% adjusted for the Q2 disposal
  • CET1 RATIO FULLY LOADED: 12.7%3
  • MDA BUFFER FULLY LOADED: 377bps3
  • DIGITAL BANKING: in constant evolution (#300 branches4 to be closed by June 21, for a total of ca. -1,000since YE 2015)
  • ESG: strategic business model integration

Notes: 1. See slide 27 for details. 2. Frontloading in Q1 2021 of the cost for the increase of the NPE disposal

1. Summary

target to €1.65bn, from €0.9 originally targeted and upfronted in 2020. 3. Including regulatory headwinds

5

related to internal credit risk model update (-85bps).4. Branches at 1,727 on 31/03/2021, prior to the closure

of 300 outlets to be finalised by June 2021.

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Banco BPM S.p.A. published this content on 06 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2021 16:01:06 UTC.