BIPIEMME GROUP 9M 2016 financial results

Transcription

1 BIPIEMME GROUP 9M 2016 financial results 08 November

2 Disclaimer This document has been prepared by Banca Popolare di Milano S.c.a r.l. (the Company and. together with its subsidiaries. the Group ) solely for information purposes and for use in presentations of the Group 9M 2016 results. This document and the information contained therein does not constitute an offer of securities for sale or an invitation to purchase or subscribe for any securities in the United States. Australia. Canada or Japan or any other jurisdiction where such an offer or solicitation would require the approval of local authorities or otherwise be unlawful (the Other Countries ). This document may contain forward-looking statements. which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions. expectations. projections and provisional data concerning future events and are subject to a number of uncertainties and other factors. many of which are outside the control of BPM. There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus. such forward-looking statements are not a reliable indicator of future performance. BPM undertakes no obligation to publicly 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. None of the Company. its subsidiaries or any of their respective members. 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 attending the 9M 2016 financial results presentation or otherwise accessing this document you will be taken to have represented warranted and undertaken that: (i) you have read and agree to be bound by and comply with the contents of this notice. *** Mr Angelo Zanzi. as the manager responsible for preparing the bank s account. hereby states. pursuant to Article 154 bis. paragraph 2 of the Testo Unico della Finanza (the Finance Act) that the accounting information contained in this presentation corresponds to the documentary evidence. corporate books and accounting records. In case of doubt the Italian version will prevail 2

3 Index Highlights 9M 2016 financial results Annexes 3

4 From the «Popolari decree» to the creation of the 3 ITALIAN BANKING GROUP SHORTLIST OF POTENTIAL Q «POPOLARI DECREE» BECOMES LAW PARTNERS GREENLIGHT FROM ANTITRUST ECB AUTHORISATION EGM APPROVES THE MERGER PROJECT WITH BANCO POPOLARE EFFECTIVE DATE OF MERGER MAR-DEC 2015 MAR SEPT OCT 2016 JAN-MAR 2015 DEC 2015 FEB JUL SEPT OCT JAN 2017 CONTACTS WITH DIFFERENT BANKS TO DISCUSS A MERGER OF EQUALS SIGNED MoU WITH BANCO POPOLARE BANK OF ITALY AUTHORISATION IVASS AUTHORISATION 4

5 In a tough environment for Italian Banks GDP FORECAST FOR 2016 REVISED DOWN MOST RECENT PROJECTIONS SEE GDP GROWTH AT 0.8% (source: IMF) INTEREST RATES DECREASING THE 3M EURIBOR HAS BEEN NEGATIVE FOR THE PAST 18 MONTHS AND IT IS NOW AT NEW LOWS THE AVERAGE EURIBOR 3M IN Q WAS -0.30% VS -0.18% IN Q AND -0.26% IN Q

6 In Q BPM confirms its strengths and continues TO DEFEND COMMERCIAL MARGINS IN SPITE OF THE DECREASE IN INTEREST RATES Commercial Net Interest Income (+0.4% Q/Q) TO ATTRACT DEPOSITS AND NEW CUSTOMERS Sight Deposits: + 446m: +1.9% vs -0.4% system (source: ABI) new customers YTD TO SUPPORT FAMILIES AND CORPORATES MLT Loans: +0.3% Q/Q 3.5bn new loans and mortgages: +7% vs 9M 2015 TO KEEP ITS FOCUS ON ASSET QUALITY Gross inflows from performing to NPE: 208m (-32.2% Q/Q) TO REDUCE OPERATING COSTS Operating costs (net of non-recurring items) down by 5.1% Q/Q (-10.3% like-for-like) TO RECORD A NET PROFIT ADJUSTED FOR NON-RECURRING¹ ITEMS OF 37.5M 1. See slide 28 6

7 9M 2016: balance sheet data, soundness and risk profile GOOD TREND IN VOLUMES Increase in customer loans, sight deposits and AUM DECREASE IN NET NPE Net NPE -2.6% Y/Y, stable in the last 4 quarters HIGH COVERAGE LEVEL OF NPE NPE Coverage: 40.7% (+120bps Y/Y); 45.3% considering cancellations CAPITAL RATIOS WELL ABOVE THE REGULATORY REQUIREMENTS CET1 ratio: 11.59% without AIRB (vs SREP 9%) LEVERAGE RATIO AMONG THE BEST IN THE SYSTEM Leverage ratio: 7.1%¹ 1. Estimate as at 30 September

8 Index Highlights 9M 2016 financial results Annexes 8

9 9M 2016 results: sight deposits + 1.9bn YTD and + 0.5bn Q/Q ( bn) Dec '15 Jun '16 Sept '16 Q/Q YTD Direct Funding -0.7% -2.9% Sight deposits +1.9% +8.6% Time deposits -2.4% +8.9% Securities and FL at FV -1.3% -12.9% Repos -14.8% -40.6% Sight deposits Time deposits Securities & FL at FV Repos Direct Funding -2.9% YTD mainly due to the combined effect of: decrease in repos vs CCG¹ (- 1.3bn, -30.8%) due to lower funding needs excellent trend in sight deposits (+8.6% YTD or + 1.9bn) outstanding securities and financial liabilities at FV down due to matured retail (- 0.7bn) and wholesale bonds ( 1bn EMTN that matured in January was only partially offset by a 750m Covered Bond) In Q3 sight deposits continued to increase (+1.9%) 1. CCG: Cassa di Compensazione di Garanzia 9

10 9M 2016 results: Direct Customer Funding - Breakdown ( bn) (A) Sept 16 (B) Jun '16 (C) Dec '15 m A-B m A-C DIRECT FUNDING FROM RETAIL CUSTOMERS Sight deposits Time deposits² Securities in issue: o/w subordinated Financial Liabilities at fair value DIRECT FUNDING FROM INSTITUTIONAL CUSTOMERS Covered Bond and securitisations EMTN and other subordinated Repos with CCG³ and on own securities TOTAL DIRECT FUNDING ( m) Retail bonds by maturity Wholesale funding by maturity Nominal Value matured and reimbursed (17 Oct 16) ( m) Cov. Bond Senior EMTN Altro Istit. Other Ist.4 1. Current accounts and demand savings deposits 2. Restricted deposits and other forms of time deposits 3. Cassa di Compensazione e Garanzia 2. 4.First call date for Tier1 instruments 10

11 9M 2016 results: AuM is 67% of indirect funding ( bn) Q/Q +0.5% ASSETS UNDER MANAGEMENT (67% of indirect funding) AUM up 3.6% YTD and +1.9% Q/Q mainly driven -2.3% by the good trend in fund and insurance products. Net inflows totalled over 800m since Dec Dec '15 Jun '16 Sept '16 AuM AuC AUC BYASSET CLASS +1.9% ASSETS UNDER CUSTODY (33% of indirect funding) AuC down 17.5% YTD and 2.3% Q/Q owing to the switch to AUM products, the financial markets trend and the reduction in low-margin AuC securities held by corporate clients AUM BY ASSET CLASS Equity 26.2% 28.0% 45.9% Equity: Govies: Bonds and Other: -3pp Y/Y +6pp Y/Y -3pp Y/Y Equity Government Bonds Bonds and other 9% 31% 40% 20% 1% Equity: - 1pp Y/Y Balanced: +8 pp Y/Y Liquidity: stable Y/Y Flexible: Bonds: Balanced Liquidity Flexible Bond -8 pp Y/Y +2 pp Y/Y 11

12 9M 2016 results: liquidity position Use of eligible securities 1 Breakdown of eligible securities 2 ( bn) % Govies % Covered Bonds % 65% ABS ABACO Dec '15 Jun '16 Nov '16 ECB Repo&Other Eligible fin. securities (unencumbered) 3 The group s liquidity profile continued to be sound: LCR and NSFR ratio well above the regulatory limit and R.A.F. requirements Increase in eligible financial securities as a result of lower liquidity needs. Net liquidity balance 3 : spot about 12% of total assets and 3 months about 10% 1. Includes eligible securities received as collateral 2. Dirty price net of ECB haircut 3. Figures as at 3 November 2016 from Internal Liquidity Report 12

13 9M 2016 results: Financial Assets m BPM & other commercial banks Banca Akros Sept 16 8, Jun 16 8, Dec 15 9,034 1,132 Var. Q/Q Var. YTD (293) (154) TOTAL NET FINANCIAL ASSETS 9,719 8,894 10, (447) m NET FINANCIAL ASSETS BRAKDOWN Sept 16 9,719 Jun 16 Dec 15 8,894 10,166 Var. Q/Q 825 Var. YTD (447) o/w Government (o/w: 98% Italian) 8,611 7,879 8, (327) Financial and other Equity stakes Mutual funds and private equity (185) (12) 51 Net hedging and trading derivatives As at September 2016 the AFS reserve of the Italian government bond portfolio (before taxes) was positive for about 193m The government bond portfolio has a duration of about 3.6 years, down vs December 2015 (3.7 years) 13

14 9M 2016 results: loans to customers +0.4% YTD vs -0.9% system¹ ( bn) ACCOUNTING DATA Vs Jun 16 Vs Dec 15 Vs Sept Loans to customers -0.6% +0.4% +2.8% Others -1.4% -1.5% +1.7% Mortgages +0.3% +2.4% +4.1% AVG. MANAGEMENT DATA Vs Jun 16 Vs Vs Dec 15 Sept 15 Average loans +0.7% +1.6% +4.4% Loans to customers increased 0.4% YTD mainly thanks to MLT loans Year-to-date, more than 77% of new loans are in the low risk category (about 82% when we consider only new customers)² Set '15 Dec '15 Jun '16 Sept '16 Mortgages Other New loans in the first 9 months of 2016² totalled about 3.5bn (+7.3% Y/Y). In detail: new mortgages: 1,450m (+4.6% Y/Y) o/w retail mortgages +10.7% Y/Y new loans up 9.4% Y/Y mainly thanks to corporate and ProFamily A sector breakdown 2 highlights a decrease in exposure to core Real Estate (-2.2% YTD) and an increase in the manufacturing sector (+2.5% YTD) Average volumes in the quarter up 0.7% Q/Q and +4.4% vs 9M ABI Monthly Oulook 2. Internal Management Data 14

15 9M 2016 results: total net non-performing exposures ( m) 3,715 3,624 3,617 3,610 3,618 Q/Q +0.2% Y/Y -2.6% % -43.8% 2,051 2,043 1,992 1,986 1, % -4.7% 1,512 1,491 1,545 1,553 1, % +4.3% Set '15 Dec'15 Mar '16 Jun '16 Sept '16 Bad Loans Unlikely to pay Past due Net NPEs down 2.6% Y/Y and substantially stable in the last 4 quarters. In detail: Bad Loans: +1.6% Q/Q; +4.3% Y/Y Unlikely to pay: -1.6% Q/Q; -4.7% Y/Y Past due: +20.4% Q/Q; -43.8% Y/Y 42.6% decrease in gross inflows from performing loans to NPE vs 9M 14 and 13.1% vs 9M 15. The reduction was driven by corporate¹ and at a sector level, by manufacturing and commerce. 80% of bad loans were concentrated in Northern Italy and 10% in Latium (mainly in the Rome area)² 1. SMEs: 5m - 50m turnover; Corporate: > 50m turnover. Internal management data 2. Bank of Italy internal data August

16 9M 2016 results: non-performing exposure coverage coverage % Sept 15 Dec 15 Mar 16 Jun 16 Sept 16 Sept 16 Coverage % with cancellations Tot. NPEs Bad Loans Unlikely to pay Past-due Performing Tot. Loans Increase in non-performing exposure coverage: 40.7% as at Sept 16 vs 40.5% as at Jun 16 and 39.5% as at Sept 15. Coverage was 45.3% considering cancellations Total coverage on secured loans considering real guarantees¹ valued at FV was 122% (capped at loan value) and 197% with no cap In detail: bad loans coverage: 54.1% (-30bps Q/Q). Considering cancellations coverage was 60.1% unlikely to pay coverage: 23.8% (+80bps Q/Q) performing loans coverage: 0.53% 1. Internal management data 16

17 9M 2016 results: Net interest income YEARLY COMPARISON ( M) QUARTERLY COMPARISON ( M) % % M '15 9M '16 Q2 '16 Q3 '16 Net interest income down 1.9% Y/Y owing to the drop in interest rates, which affected customer spread and which was only partially offset by volume growth the decrease in the bond portfolio contribution ( 42.6m) was more than offset by the reduction in interbank and wholesale funding costs Net interest income was down 2.2% Q/Q due to: increase in commercial net interest income, up 0.4% Q/Q, thanks to the decrease in funding costs, which offset lower lending rates decrease in the bond portfolio contribution (- 7.3m) also due to the disposals in the quarter 17

18 9M 2016 results: BPM Group customer spread quarterly trend¹ * * * * Average change¹ Y/Y Q/Q Lending rates -36bps -7bps Deposit rates -18bps -4bps Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Spread -18bps -3bps Euribor 3M -27bps -4bps deposit rates lending rates spread The overall trend in customer spread was affected by the drop in Euribor, which in turn affected lending rates; the drop was not totally offset by the decrease in deposit rates Anyway, the decrease in customer spread was lower than the decrease in the Euribor, both Q/Q (-3bps vs -4bps) and Y/Y (-18bps vs -27bps) 1. Average quarterly data (*) Lending rates and customer spread in Q2 15 and Q1 16 are adjusted for the early reimbursement of VAT credits 18

19 9M 2016 results: Net fees and commission YEARLY COMPARISON ( M) QUARTERLY COMPARISON ( M) % -2.2% % -9.0% % % M '15 9M '16 Management, trading & adv. Others 1 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Management, trading & adv. Others 1 Net fees and commission down 2.2% Y/Y owing to fewer management and advisory fees (-7.8% Y/Y) while traditional banking commmission was up (+3.7% Y/Y). The trend in 9M 2016 was affected by lower fees and commission from: AUC: - 8.5m brokerage, advisory and trading AUM: - 9.0m mainly due to lower upfront fees Commission for other services + 5.9m mainly thanks to the good trend in loans Net fees and commission down 9.0% Q/Q, in line with the decrease recorded last year (Q3 15), mainly due to the usual seasonal effect 1. See details in annexes 19

20 9M 2016 results: Net income from financial activities YEARLY COMPARISON ( M) QUARTERLY COMPARISON ( M) % % M '15 9M '16 Net result from financial act. (recurr.) One-off Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Net result from financial act. (recurr.) One-off Net result from financial activities in 9M 16 up 49.4% Y/Y (+ 40.4m) mainly due to the capital gain from the disposal of government bonds and equity securities The net result from BPM and Banca Akros in 9M 16 increased by 55.5% and 48.5% respectively vs 9M 15 Net result was 22.4m in Q3. The Q/Q comparison was affected by lower income from govies disposals in Q

21 9M 2016: operating costs (1/2) TOTAL OPERATING COSTS 9M 2016: 900.9m LIKE-FOR-LIKE 1 : 702.4m +1.5% Y/Y STAFF COST ( m) ADMINISTRATIVE ( m) D&A ( m) % like-for-like % like-for-like M '15 9M '16 Staff Solidarity Fund 9M '15 9M '16 Administr. one-off 9M '15 9M '16 D&A Staff cost slightly increased (+1.6% Y/Y), net of 165m for the new early retirement fund («Fondo Solidarietà 2016») and adjustments related to the old retirement fund Administrative expenses down 2.2% Y/Y, net of the higher contribution to the SRF/DGS ( 27m in 9M 2016 vs 12.4 m in 9M 2015) and 5.8m extraordinary expenses as a quota of the cost related to the merger and transformation to a Joint Stock Company, which were booked in Q3 D&A: 58.4mln (+15.2% Y/Y) due to higher investments 1. Net of items considered non-recurring under an accounting point of view (see slide 26) and the contribution to the SRF and DGS, which was 12.4m in 9M 2015 and 27m in 9M

22 9M 2016: operating cost in Q (2/2) TOTAL OPERATING COSTS Q3 2016: 403.3m LIKE-FOR-LIKE 1 : 219.7m % Q/Q STAFF COSTS ( m) OTHER ADMIN. EXPENSES ( m) D&A ( m) % like-for-like % like-for-like 58.1 Q2 '16 Q3 '16 Staff Solidarity Fund Q2 '16 Q3 '16 Administr. one-off Q2 '16 Q3 '16 D&A In Q3 16 operating costs were down 10.3%Q/Q (like-for-like): staff costs -11.6% net of costs linked to the «Fondo di Solidarietà» ( 165m). The item also benefited from adjustments related to the variable component linked to the results admin. expenses: 12.2% net of the contribution to the DGS, booked in Q3 2016, ( 12.6mln) and extraordinary expenses as a quota of the cost related to the merger and transformation to a Joint Stock Company ( 5.8m) D&A: 20.6mln (vs 19.3 m in Q2 2016) 1. Net of items considered non-recurring under an accounting point of view (see slide 28) and the contribution to the DGS, which was 12.6 in Q

23 9M 2016 results: Net adjustments on loans¹ YEARLY COMPARISON ( M) QUARTERLY COMPARISON ( M) 98bps 112bps 89bps 93bps 77bps 104bps 87pb M '15 9M '16 Net adjustments on loans and other op. Annualised cost of risk Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Net adjustments on loans and other op. Annualised cost of risk Cost of risk in the first 9M 16 was 89bps, down vs 98 bps in 9M 15 and 119 bps in 9M 14 even though the NPE coverage levels increased Cost of risk in Q3 16 was 87bps 1. Net adjustments on loans and other operations and losses from disposal of loans 23

24 9M 2016: Common Equity Tier 1 without AIRB Models COMMON EQUITY TIER1 VS SREP (%) COMMON EQUITY TIER 1 RATIO EVOLUTION (%) WITHOUT AIRB Buffer SREP CET1 Phase In CET1 Fully Loaded dic-15 Dec 15 giu-16 Jun 16 Sept set CET1 Phase In CET1 Fully Loaded (senza (without AIRB) AIRB) Capital ratios have been calculated using the standard method (without benefiting from the AIRB models) RWA: 35,295m Credit risk: 31,720m Market risk: 917m Operating risk: 2,658m Leverage ratio as at Sept 16 was 7.1¹%. The ratio puts BPM among the best European Banks in terms of leverage 1. Estimate as at 30 September

25 Consolidated reclassified P&L: Y/Y comparison Change Y/Y ( m) Sept-16 Sept-15 Amount % Net interest income (11.4) (1.9) Non-interest income Net fees and commission income (9.9) (2.2) - Other operating income: Share of profit (loss) on investment value under the equity method (6.4) (26.1) - Net income (loss) from financial activities Other operating income/expenses (6.9) (20.0) Operating income 1, , Administrative expenses (842.5) (657.3) (185.2) (28.2) a) personel expenses (621.0) (452.0) (169.0) (37.4) b) other administrative expenses (221.5) (205.2) (16.3) (7.9) Depreciations and amortization (58.4) (50.7) (7.7) (15.2) Operating costs (900.9) (708.0) (192.9) (27.3) Operating profit (187.3) (38.1) Net adjustments to loans and other operations (230.1) (246.3) Net provisions for risk and charges (6.1) (3.9) (2.2) (56.9) Profit (loss) from equity and other investments and adjustments to goodwill and intangible assets (5.5) (14.6) Profit (loss) before tax from continuing operations (178.8) (64.2) Tax on income from continuing operations (11.2) (75.5) Net profit (loss) for the period (114.5) (56.4) Minority interests (0.3) (0.8) Net profit (114.0) (56.4) 25

26 Consolidated reclassified P&L: net of non-recurring items Sept-16 Sept-16 norm ( m) one off Net interest income Non-interest income Net fees and commission income Other operating income: Share of profit (loss) on investment value under the equity method Net income (loss) from financial activities Earn out ICBPI - Other operating income/expenses Operating income 1, , Administrative expenses a) personel expenses Early Retirement Plan (F.do Solidarietà 2012) Early Retirement Plan (F.do Solidarietà 2016) b) other administrative expenses Quota of M&A and transformation to Joint Stock Co Depreciations and amortization Operating costs Operating profit Net adjustments to loans and other operations Net provisions for risk and charges Profit (loss) from equity and other investments and adjustments to goodwill and intangible assets Adjustment price of Depositary Bank 9.7 Profit from 2.18% Anima Holding share disposal 1.0 Profit from 5% Etica SGR share disposal Profit (loss) before tax from continuing operations Tax on income from continuing operations Net profit (loss) for the period Minority interests Net profit

27 Consolidated reclassified P&L: Q/Q comparison Change Q/Q ( m) 3Q Q 2016 Amount % Net interest income % Non-interest income % - Net fees and commission income % - Other operating income: % - Share of profit (loss) on investment value under the equity method % - Net income (loss) from financial activities % - Other operating income/expenses % Operating income % Administrative expenses % a) personel expenses % b) other administrative expenses % Depreciations and amortization % Operating costs % Operating profit n.s. Net adjustments to loans and other operations % Net provisions for risk and charges n.s. Profit (loss) from equity and other investments and adjustments to goodwill and intangible assets n.s. Profit (loss) before tax from continuing operations n.s. Tax on income from continuing operations n.s. Net profit (loss) for the period n.s. Minority interests n.s. Net profit n.s. 27

28 Consolidated reclassified P&L normalized 1 : quarterly comparison Q3 16 Q3 16 Norm ( m) one off Net interest income Non-interest income Net fees and commission income Other operating income: Share of profit (loss) on investment value under the equity method Net income (loss) from financial activities Earn out ICBPI - Other operating income/expenses Operating income Administrative expenses a) personel expenses Early Retirement Plan (F.do Solidarietà 2016) -0.2 Early Retirement Plan (F.do Solidarietà 2012) b) other administrative expenses M&A and transformation to Joint Stock Co. Depreciations and amortization Operating costs Operating profit Net adjustments to loans and other operations Net provisions for risk and charges Profit (loss) from equity and other investments and adjustments to goodwill and intangible assets Profit (loss) before tax from continuing operations Tax on income from continuing operations Net profit (loss) for the period Minority interests Net profit ) Net of non-recurring items 28

29 Q&A 29

30 Index Highlights 9M 2016 financial results Annexes 30

31 Asset quality 000 Gross exposure Change (A - B) Change (A - C) A % B % C % Amount % Amount % D % o/w Non performing exposure 6,099, ,068, ,997, , , ,139, a) Bad loans 3,440, ,408, ,276, , , ,341, b) Unlikely to pay 2,565, ,580, ,621, , , ,629, c) Past due 94, , , , , , o/w Performing loans 30,869, ,080, ,747, , , ,878, Total gross loans and advance to customers 36,969, ,148, , ,018, Total adjustments A Variazioni (A - B) Variazioni (A - C) Coverage % B Coverage % C Coverage % Assolute Coverage % Assolute Coverage % D Coverage % o/w Non performing exposure 2,481, ,458, ,372, , , ,424, a) Bad loans 1,862, ,855, ,785, , , ,828, b) Unlikely to pay 610, , , , , , c) Past due , , , o/w Performing loans 164, , , , , , Total adjustments 2,646, ,627, ,558, , ,616, Net loans and advance to customers Change (A - B) Change (A - C) A % B % C % Amount % Amount % D % o/w Non performing exposure 3,618, ,610, ,624, , , ,715, a) Bad loans 1,577, ,553, ,490, , , ,512, b) Unlikely to pay 1,955, ,985, ,043, , , ,050, c) Past due 85, , , , , , o/w Performing loans 30,704, ,910, ,562, , , ,686, Total net loans and advance to customers 34,322, ,520, ,186, , , ,401,

32 Reclassified balance sheet Change Asset ( m) Sept-16 Dec-15 Sept-15 Amount Y/Y % Amount vs Dec.'15 % Cash and equivalents % % Financial assets at fair value and hedging derivates: 11,185 11,417 11, % % Financial assets held for trading 2,002 1,798 1, % % Financial assets designated at fair value % % Financial assets available for sale 9,036 9,491 9, % % Hedging derivates % % Change in fair value of hedged items (+/-) % 1 7.3% Loans and advanced to banks 2,128 1,225 1, % % Loans and advance to customers 34,323 34,187 33, % % Fixed assets 1,213 1,199 1, % % Non recurrent assets and disposal groups held for sale % - n.s. Other Assets 1,566 1,875 1, % % Total Assets 50,622 50,203 49,515 1, % % Amount vs Amount Dec.'15 Liabilities and Shareholders Equity ( m) Sept-16 Dec-15 Sept-15 Y/Y % % Due to banks 6,161 4,839 4,551 1, % % Due to customers 36,529 37,602 36, % % Debt securities in issue 29,447 28,623 28, % % Change Financial liabilities at fair value and hedging derivates 6,985 8,849 8,281-1, % % Financial liabilities held for trading % % Financial liabilities designated at fair value % % Financial liabilities available for sale ,184 1, % % Hedging derivates % % Other liabilities 1,412 1,430 1, % % Provision for specific use % % Share capital and reserves 4,387 4,338 4, % % Minority interest % % Net profit (loss) for the period (+/-) % % Total liabilities and Shareholders Equity 50,622 50,203 49,515 1, % % 32

33 Net fees and commission m 9M M 2015 Change Amount in % Fees and commission income % Fees and commission expense % Total net fees and commission % Breakdown: guarantees given and received % management. trading and advisory services % collection and payment services % management of current accounts % other services % Total net fees and commission % 33