Annual Results BPER GROUP Presentation to Investors and Analysts

Transcription

1 Annual Results 2012 BPER GROUP Presentation to Investors and Analysts Luigi Odorici - Chief Executive Officer Alessandro Vandelli - Chief Financial Officer 14 th March 2013

2 Disclaimer This document has been prepared by Banca popolare dell Emilia Romagna solely for information purposes, and only in order to present its strategies and main financial figures. The information contained in this document has not been audited. No guarantee, express or implied, can be given as to the document s contents, nor should the completeness, correctness or accuracy of the information or opinions herein be relied upon. Banca popolare dell Emilia Romagna, its advisors and its representatives decline all liability (for negligence or any other cause) for any loss occasioned by the use of this document or its contents. All forecasts contained herein have been prepared on the basis of specific assumptions which could prove wrong, in which case the actual data would differ from the figures given herein. No part of this document may be regarded as forming the basis for any contract or agreement. No part of the information contained herein may for any purpose be reproduced or published as a whole or in part, nor may such information be disseminated. The Manager responsible for preparing the Company s financial reports, Emilio Annovi, declares, in accordance with art. 154-bis., para. 2, of the "Consolidated Financial Services Act" (Legislative Order No. 58/1998), that the accounting information contained in this document corresponds to documentary records, ledgers and accounting entries. Emilio Annovi Manager responsible for preparing the Company's financial reports Page 2

3 Agenda FY12 Results Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Annexes Page 3

4 Executive summary 2012 profitability hit by a non-recurring loan loss provisioning action driven by a more conservative approach to doubtful loans valuation (collaterals and time value) in a deteriorating macroeconomic environment Consolidated net result at /mn, reduced to /mn net of minority interests Loan loss provisions at an unprecedented and non-recurring high level due to the worsening recession in Italy, the Emilia Romagna earthquake effects and a more conservative collateral and time value estimates, particularly on NPLs, also according to recent BoI recommendations Core revenues resilient, despite strong decreasing interest rates in 2012 Operating costs down by 3% y/y thanks to headcounts reduction and effective cost management actions Sound balance sheet with strong capital base and improved liquidity position Steady improvement of CT1 ratio at 8.27% (7.83% in 2011) despite high provisioning Good liquidity position and strong funding capability Low leverage ratio (14.2x) Business Plan : non-ordinary actions delivered and ordinary actions remain on track. On-going razionalization process in 2012 Page 4

5 Agenda FY12 Results Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Annexes Page 5

6 Direct funding Total Direct Funding ( /mn) -2,8% +2,6% Direct funding decline (-1.4 /bn, -2.8% since Dec 11), mainly concentrated in the 1Q12, justified by: Public Administration Treasuries outflows of 1.1 /bn transferred to MEF Funding reduction due to Institutional and Large Corporate (-1.1 /bn) with a relatively high cost LTII buy-back (-175 /mn) in Apr 12 Short-term deposits: switch from repos and cold money to Time Deposit in placement since Jan 12 (3.9 /bn) Dec 11 Mar 12 Jun 12 Sept 12 Dec 12 4Q12: placed a 0.4 /bn subordinated LTII bond to retail customers Direct Funding breakdown Direct Funding breakdown by segment (%) Bonds 22,3% Repos/CDs 27,0% Sight depo 50,7% Corporate 12,5% Large corporate 4,2% Other 1,1% Retail+Private 82,2% Page 6

7 Bond maturities and placing power 0, Bond maturities* ( /bn) 2,9 /bn 2012 bond maturities offset by the retail bond placements at Group level to highlight a strong placing capacity Total wholesale bonds account for 0.9 /bn, 1.9% of total direct funding 0,8 0,2 Only 0.6 /bn wholesales bonds maturities in 2013 (0.35 /bn in Feb 13 and 0.25 /bn in Apr 13) 0,6 0,4 0,5 No wholesales bonds maturities in 2014 and Q 13 2Q 13 3Q 13 4Q 13 Retail Wholesale Placing power* ( /bn) Bond maturities breakdown* ( /bn) 2,4 2,9 0,4 3,4 2,4 2,9 0,6 2,3 3,0 3,0 10,1 /bn 1,4 1,4 1,0 0,1 0,9 1,8 0,2 1, beyond Retail Wholesale Total figures Retail Wholesale * Figures are shown as per nominal values Page 7

8 Indirect deposits and bancassurance Total Indirect Deposits and bancassurance ( /mn) -1,4% -4,0% Indirect deposits and bancassurance slightly down - 1.4% y/y, mainly caused by asset under custody outflows with no impact on profitability AuC down by 7.5% y/y AuM good performance (+7.5% y/y) Bancassurance stock positive increase (+4.3% y/y) Dec 11 Mar 12 Jun 12 Sept 12 Dec 12 Total Indirect deposits breakdown ( /mn) Total Indirect deposits breakdown (%) ,3% 7,4% 7,8% ,5% 58,0% 54,4% ,5% 34,7% 37,8% Dec 11 Dec 12 AuM AuC Bancassurance (stock) Change on Dec 11 Dec 11 Dec 12 AuM AuC Bancassurance (stock) Page 8

9 Customer loans (1/2) Customer loans ( /mn) -0,3% -0,7% Net volume stable vs 2011 (-0.3% y/y) Retail mortgages new production dropped (-35.7% y/y) following the severe economic slowdown in Italy Corporate and Retail account for 86.9% to confirm the BPER Group s commercial business model Dec 11 Mar 12 Jun 12 Sept 12 Dec 12 Customer loans breakdown (%) Customer loans breakdown by segment (%) Other transactions 30,4% Large corporate 12,3% Other 0,8% Medium-Long term loans 52,9% Retail+Private 40,8% Current accounts 16,7% Corporate 46,1% Page 9

10 Customer loans (2/2): Portfolio composition Customer loans breakdown by sectors* (%) Well diversified loans portfolio Total loans to financial businesses 10,3% Agriculture, forestry and fishing 2,4% Manufacturing 16,4% Construction sector relevant downsizing (-6.7% since Dec. 11) Wholesales & retail services and Household substantially stable y/y (respectively -0.7% and +0.4%) Households 21,8% Constructions 12,7% Wholesale and retail services, recoveries and repairs 11,6% Other and Non-resident, non financial companies 21,0% HORECA 3,7% * Figures as per business sectors ATECO definitions (ISTAT) Page 10

11 Doubtful loans (1/3) Doubtful loans breakdown (net figures; /mn) ,1% ,3% ,1% ,6% Doubtful loans stock up by 20.1% y/y (+0.9 /bn) affected by the deterioration of italian credit environment and regulatory change on past-due loans Specific provisioning action mainly in the 4Q12 drove down the net doubtful loans stock q/q (5.2 /bn vs 5.6 /bn in 3Q12 or - 7.6% q/q) Gross doubtful loans stock stabilization in the 4Q12 around 8.2 /bn Dec 11 Mar 12 Jun 12 Sept 12 Dec 12 20,8% Change on Dec 11 Non performing Watch-list Past due Restructured Doubtful loans breakdown: weight on total loans (%) Doubtful Loans trend (gross figures; /mn) 9,0% 0,6% 0,6% 10,4% 0,9% 1,3% 11,0% 0,9% 1,3% 11,6% 0,9% 1,4% 10,8% 0,8% 0,9% ,5% 4,8% 5,1% 5,4% 5,2% ,2% 3,5% 3,7% 4,0% 3,9% Dec 11 Mar 12 Jun 12 Sept 12 Dec 12 Non performing Watch-list Past due Restructured Dec 11 Mar 12 Jun 12 Sept 12 Dec 12 Page 11

12 Doubtful loans (2/3) Coverage trend (%) Dec 12 Sept 12 Jun 12 Mar 12 Dec 11 Dec 10 Dec 09 Non performing 54,87% 51,63% 52,21% 52,20% 52,84% 57,47% 60,63% Watch-list 19,99% 15,65% 16,45% 16,32% 16,77% 17,18% 20,76% Past due 5,74% 3,28% 3,18% 3,12% 3,32% 3,66% 3,04% Restructured 17,46% 8,22% 7,91% 7,24% 6,08% 8,01% 13,34% Total doubtful loans 36,78% 31,59% 31,90% 31,70% 33,85% 36,63% 36,84% In bonis 0,66% 0,70% 0,67% 0,66% 0,67% 0,78% 0,89% Total loans 6,44% 5,65% 5,42% 5,15% 4,96% 4,77% 4,78% Page 12

13 Doubtful loans (3/3) Watchlist and restructured loans flows* (gross figures; /mn) Non-performing loans inflows* (gross figures; /mn) 682,1 311,3 669,3 219,1 490,3 699,9 149,9 126,2 200,4 283,2 290,8 289,5-370,8-450,2-340,4-573,7 1Q 12 2Q 12 3Q12 4Q12 1Q 12 2Q 12 3Q12 4Q12 inflows outflows net inflows inflows Note: watchlist and restructured loans figures are shown gross of internal allocations (in-and-outflows) between the two categories * Commercial banks Watchlist and restructured net loans inflows slowing down over the last 3 quarters Non-performing loan inflows stable in the last 3 quarters Inflows coming mainly from commercial and real estate sectors Page 13

14 Securities portfolio (1/2) Securities portfolio breakdown /mn HFT CFV AFS HTM Total % on total Bonds ,3% Equity ,7% Funds and Sicav ,7% Other * ,3% Group ,0% Total at Change in % -24,8% -29,9% 79,6% 17,9% 28,5% Securities portfolio increase (+1.6 /bn since Dec. 11 ) due to italian govies purchase Bond portfolio amounts to 6.3 /bn of which 4.8 /bn italian govies Italian govies account for 102% of consolidated shareholders equity Downsizing in peripheral european countries exposure to 169 /mn from /mn at the end of 2011 AFS govies reserve at +81 /mn as of Dec 12 vs +47 /mn in Sept 12 and /mn in Dec 11 * Mainly derivates for hedging purposes Securities portfolio ( /mn) Bonds portfolio by issuer ( /mn) ,5% ,4% Total figures Dec 11 Mar 12 Jun 12 Sept 12 Dec 12 Dec 11 Mar 12 Jun 12 Sept 12 Dec 12 Government Corporate&ABS Sovranational Page 14

15 Securities portfolio (2/2) Govies & Sovranational PTF by issuing country ( /mn) Italian Govies PTF by accounting valuation ( /mn) Total figures Total figures ,4 4,0 1,5 2,5 Dec 11 Mar 12 Jun 12 Sept 12 Dec 12 Italy Other Sovranational Dec 11 Mar 12 Jun 12 Sept 12 Dec 12 HTM HFT AFS Duration (Years) Italian Govies PTF by coupon ( /mn) Italian Govies PTF Maturities ( /mn) Total figures Dec 11 Mar 12 Jun 12 Sept 12 Dec 12 ZC Floating Fixed Total figures > 2018 HTM HFT AFS Page 15

16 Assets & Liabilities Assets Liabilities & Shareholders equity /mn Dec 12 Sept 12 Jun 12 Mar 12 Dec 11 Chg Y/Y% /mn Dec 12 Sept 12 Jun 12 Mar 12 Dec 11 Chg Y/Y% Customer Loans ,3% Securities Portfolio ,5% of which AFS ,6% Customer Deposits Net Interbank Position ,8% ,0% Equity Investments, Properties & Intangibles Other current assets ,5% ,9% Other Funds & Liabilities Shareholders' equity ,2% ,5% Total Assets ,0% Total Liabilities ,0% * Total Assets shown as net of Loans to banks *Total Liabilities inclusive of Net Interbank Position (Due to banks - Loans to banks) Net interbank position still negative (-5 /bn vs -6.2 /bn in Sept 12) but improving Securities portfolio gradually increased over 2012 quarters (+28.5% y/y) Page 16

17 Agenda FY12 Results Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Annexes Page 17

18 Profit & Loss Yearly view n.m: Not meaningful Profit & Loss (Yearly view) Dec 12 Dec 11 Change ( /mn) Total Total abs % Interest Margin 1.309, ,4-20,9-1,6% Commissions 707,9 693,7 14,2 2,1% Dividends 5,0 7,3-2,3-31,4% Trading gains 132,4 69,4 63,0 90,8% Total Income 2.154, ,8 54,1 2,6% Provisions -971,9-350,1-621,8 n.m. Operating Income 1.182, ,7-567,7-32,4% Staff costs -769,6-785,9 16,3-2,1% Other administrative costs -489,9-501,0 11,1-2,2% Other costs / revenues 53,7 44,3 9,4 21,1% Operating costs , ,6 36,8-3,0% Net Operating Income -22,9 508,1-530,9 n.m. Other income, net 15,5-102,0 117,4 Pre-tax Profit -7,4 406,1-413,5 n.m. Taxes -25,2-162,2 137,0 n.m. Net profit of ass. under disp. 0,0-6,6 6,6 Net profit -32,6 237,4-270,0 n.m. Minority Interests 21,3-22,7 44,0 n.m. Profit (loss) for the period pertaining to the Parent Company cost / income 56,0% 59,1% cost / (interest margin + commiss.) 59,8% 61,4% cost of credit on annual basis 1,99% 0,71% net profit / total income -1,5% 11,3% tax rate n.m. 39,9% -11,3 214,6-225,9 n.m. Page 18

19 Interest margin Interest margin ( /mn) -1,6% 1.330, ,5 Interest margin holds well (-1.6% y/y) despite the Euribor strong decrease in 2012 (avg Euribor 3M -80 bps vs 2011) Positive volume effect (+2.5% y/y) mainly resulting from securities portfolio increase Spread effect impacted by interest rates decline, with negative effects on assets repricing. Cost of funding still resiliant but first signs of a slowing down in the 4Q12 Securities portfolio contribution to interest margin: around 210 /mn in 2012 (vs 100 /mn in 2011) Dec 11 Dec 12 Interest margin contribution breakdown (%; y/y) Interest margin by quarter ( /mn) +2,5% 341,8 336,5 320,6 323,6 328,7 Spread effect Volumes effect Total -1,6% -4,1% 4Q11 1Q12 2Q12 3Q12 4Q12 Page 19

20 Spread effect Quarterly trends 1,91 1,93 Spread (%) 1,82 1,80 1,83 Spread slight improvement in 4Q12 at 1.83% thanks to asset repricing, in particular on current accounts Funding repricing actions still on the way, mainly in the short-term deposits, offset mortgages yield drop due to Euribor decline 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 Spread contribution (%) Mark up & mark down (%) 3,70 3,10 2,50 1,90 2,14 2,64 2,81 3,03 3,19 1,30 0,70-0,23-0,71-0,99-1,23-1,36 0,10 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 Euribor 3M (avg) Tot. Assets yield Tot. Liabilities cost Spread mark up mark down Page 20

21 Commissions Commissions ( /mn) +2,1% 707,9 693,7 Commissions up by 2.1% y/y (+14.2 /mn) mainly supported by credit facilities commission repricing Transactional commercial fees up by 3.1 y/y Repricing actions more than offset higher commission expense related to new funding sources: /mn y/y Indirect deposits stock decreasing impacted commissions (-8.1% y/y) Dec 11 Dec 12 Commissions breakdown ( /mn; %) Commissions by quarter ( /mn) /mn Dec 12 Dec 11 Chg % 177,6 171,8 181,7 176,9 177,5 Commissions on indirect deposits and bancassurance 111,7 121,6-8,1% Cash in and Payments 146,0 141,6 3,1% Commercial Banking/other 450,2 430,5 4,6% Total 707,9 693,7 2,1% 4Q11 1Q12 2Q12 3Q12 4Q12 Page 21

22 Non interest income Dividend and Trading gains Dividends and Trading gains ( /mn) +79,2% 137,4 76,7 Positive contribution from Trading, both realized (net /mn y/y) and unrealized (net +80 /mn y/y) Fair Value Option on financial liabilities: /mn in Dec 12 vs /mn in Sept 12 and in Dec 11 Trading result includes a one-off capital gain from buyback on LTII bonds (+21.6 /mn) executed in April 2012 Dec 11 Dec 12 Dividends and Trading gains breakdown FVO by quarter ( /mn) /mn Dec 12 Dec 11 Chg abs Chg % Trading gains FVO Dividends 5,0 7,3-2,3-31,4% Trading (net) 116,2 10,7 105,5 989,7% Plus 87,1 9,3 77,8 834,0% Minus -7,1-86,4 79,3 91,8% FVO -68,6 146,1-214,7-146,9% Other 4,8-10,3 15,1 146,5% 57,4 31,2 27,9 35,3 11,8 4Q11 1Q12 2Q12 3Q12 4Q12 60,9 16,8-16,8-35,3-33,4 4Q11 1Q12 2Q12 3Q12 4Q12 Trading net of FVO 92,7 61,3 52,1 Total 137,4 76,7 60,7 79,2% -29,7-5,1 4Q11 1Q12 2Q12 3Q12 4Q12 Page 22

23 Loan Loss Provisions Loan Loss Provisions Breakdown ( /mn) +178,6% 958, LLP at /bn driven by the deterioration of the domestic economy and a more conservative collateral and time value estimates, particularly on NPLs, also according to recent BoI recommendations Cost of credit at 199 bps impacted by the aforementioned non-recurring assesment 344,0 Dec 11 Dec 12 Cost of credit quarterly view (%) 1,12 Cost of credit yearly view (%) 1,99 0,17 0,21 0,39 0,27 0,41 0,40 0,51 1,0 w/o MLBK 1,28 0,79 0,71 4Q11 1Q12 2Q12 3Q12 4Q Page 23

24 Operating costs Operating Costs ( /mn) -3,0% 1.242, ,8 Operating costs down by 3% y/y due to rigorous cost management actions Staff costs reduction despite higher costs related to the national labour contract renewal: structural headcounts reduction (-131 since Dec 11) and a one-off effect relating to provisions for voluntary redundancies and the Solidarity Fund (+25.8 /mn). Net of non-recurring items, staff costs down by 5.4% y/y Administrative expenses decrease -2.2% y/y, mostly explained by an efficient running costs management One-offs: -4.1 /mn costs related to Emilia Romagna earthquake; accounted among Other revenues /mn capital gain on custodian business disposal Dec 11 Dec 12 Operating Costs breakdown Headcounts /mn Dec 12 Dec 11 Chg abs Chg % Staff 769,6 785,9-16,3-2,1% Administrative Expenses 489,9 501,0-11,1-2,2% Depreciations 60,9 57,7 3,2 5,5% Other 29,1 22,4 6,7 30,0% Other Revenues/Costs -143,7-124,4-19,3 15,5% Total 1.205, ,6-36,8-3,0% Dec11 Sept 12 Dec 12 Page 24

25 Agenda FY12 Results Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Annexes Page 25

26 Eligible assets and counterbalancing capacity Total eligible Assets evolution ( /mn) Eligible Assets Pool Composition (%) +35,4% ABS, Estense Covered Bond 14,1% Bank & State guaranteed bonds 18,9% Government bonds 49,0% Dec 11 Mar 12 Jun 12 Sept 12 Dec 12 Total eligible Assets Unencumbered eligible Assets Covered & Corporate bonds 11,6% Jumbo bank bonds, Sovranational bonds 6,4% Counterbalancing capacity (CBC): 10 /bn of which 2.7 /bn unencumbered ECB exposure: 4.4 /bn corrisponding to total LTRO Total government-backed bonds: 1.2 /bn Page 26

27 Regulatory capital (Basel 2 standard method) Capital Ratios (quarterly trend; %) 11,54% 11,38% 11,57% 12,13% 7,86% 8,10% 8,32% 8,30% 7,83% 8,07% 8,29% 8,27% Dec 11 Jun 12 Sept 12 (*) Dec 12 (*) Figures are shown as Pro-forma values Total Capital Ratio Tier 1 Ratio Core Tier 1 Ratio CT1 ratio at 8.27% vs 7.83 in dec 11: steady improvement and sound capital base (+44 bps vs Dec 11) Credit risk requirments decline RWA significant reduction of 2.3 /bn since Dec 11, mainly driven by: higher LLP provisioning RWA optimization actions other RWA reduction relative to product companies Market risk requirement: down around 17 /mn since Dec 11 driven by the trading securities portfolio reduction (substantially stable vs Sept 12) Operating risk requirement substantially stable since Dec 11 and Sept 12 Capital & ratios Capital requirements /mn Dec 12 Sept 12 (*) Dec 11 Core TIER TIER Total capital Total RWA Core TIER 1 Ratio 8,27% 8,29% 7,83% TIER 1 Ratio 8,30% 8,32% 7,86% Total Capital Ratio 12,13% 11,57% 11,54% Tot RWA / Total Assets 72,62% 75,10% 77,90% (*) Figures are shown as Pro-forma values Requirements on Dec 12 /mn % Credit risk ,6% Market risk 30 0,8% Other regulatory equirements 63 1,8% Operating risks 316 8,8% Total ,0% Page 27

28 Final remarks: sound capital base, good core revenues trend, positive liquidity position and higher coverage ratio back to pre-crisis level 6,92% Core Tier 1 Ratio (yearly trend; %) 7,83% 7,00% 6,78% 8,27% Total income & Operating costs evolution ( /mn) Dec 08 Dec 09 Dec 10 Dec 11 Dec Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Total Income Operating costs Delta Total eligible Assets evolution ( /mn) Coverage trend (%) Total eligible Assets Unencumbered eligible Assets +35,4% ,00% 6,50% 6,00% 5,50% 5,00% 36,84% 36,63% 4,78% 4,77% 33,85% 4,96% 36,78% 6,44% 36,00% 31,00% 26,00% 21,00% ,50% 4,00% 16,00% 11,00% Dec 11 Mar 12 Jun 12 Sept 12 Dec 12 3,50% Dec 09 Dec 10 Dec 11 Dec 12 Total doubtful loans Total loans 6,00% Page 28

29 Agenda FY12 Results Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Annexes Page 29

30 Profit & Loss - Quarterly trend Profit & Loss (quarterly view, /mn) (*) Not Meaningful ( /mln) 4Q12 3Q12 2Q12 1Q12 4Q11 Interest Margin 328,7 323,6 320,6 336,5 341,8 Commissions 177,5 176,9 181,7 171,8 177,6 Dividends 0,5 0,3 3,3 0,9 1,9 Trading Gains 35,3 27,9 11,8 57,4 31,2 Total Income 542,0 528,8 517,4 566,6 552,5 Provisions -548,3-128,6-195,4-99,6-82,9 Operating Income -6,2 400,1 322,0 467,0 469,5 Staff costs -168,9-197,4-205,3-197,9-197,7 Other administrative costs -124,5-114,8-127,8-122,8-127,7 Other costs / revenues 0,1 29,5 11,6 12,5 26,8 Operating Costs -293,3-282,7-321,6-308,2-298,7 Net Operating Income -299,5 117,4 0,4 158,8 170,9 Other income, net 12,0 0,0 3,7-0,3-83,9 Pre-tax Profit -287,5 117,4 4,2 158,5 87,0 Taxes 117,3-57,0-20,7-64,7-5,7 Net profit of assets under disposal -0,5 0,5 0,0 0,0-8,7 Net profit -170,6 60,8-16,5 93,8 72,6 Minority Interests 17,7-1,9 11,6-6,0 2,8 Profit (loss) for the period pertaining to the Parent Company -153,0 58,9-5,0 87,7 75,4 cost / total income 54,1% 53,5% 62,1% 54,4% 54,1% cost / (interest margin + commissions) 57,9% 56,5% 64,0% 60,6% 57,5% net profit / total income -31,5% 11,5% -3,2% 16,5% 13,1% cost of credit (bps) tax rate 40,8% 48,6% *n.m. 40,8% 6,6% Page 30

31 FY12 Profit & Loss: main non-recurring items Items Amt Description Other costs/revenues 17,7 Capital gain on Optima SGR's mutual fund business disposal Non-recurring items in 2011 Other income -45,8 Impairment of equity investment -61,43 Impairment of goodwill -107,2 Total impairment Taxes 59,8 Realignment for tax purposes of intangible assets -4,9 Taxes on Optima SGR disposal 54,9 Total Taxes 2011 Total impact -34,6 Items Amt Description Trading gains 21,6 Capital gain from buy-back on LTII bonds Staff costs -25,8 Provisions for voluntary redundancies and the Solidarity Fund Other costs/revenues 20,9 Capital gain on custodian business disposal Non-recurring items in 2012 Other income -4,1 Impairment of equity investment 18,0 ARCA equity investment accounted in AFS of PTF 13,9 Total Other income (Subtotal) Pre-tax profit impact 30,6 Taxes 32,8 Tax credit relating to the deductibility of IRAP on staff costs 17,9 Realignment for tax purposes of intangible assets (Meliorbanca on Bper balance sheet) -5,8 Non-recurring pro-forma taxes items 44,9 Total Taxes 2012 Total impact 75,5 Page 31

32 Main events Changes in the scope of consolidation and internal rationalization activity: Jan 12 Conclusion of Volunteer Public Tender Offer with exchange on minorities of all the Commercial banks, with the exclusion of Banco di Sardegna S.p.a Jun 12 - Merger by incorporation of Presticinque S.p.a. into Banca di Sassari (effective from 1 st Jan 12) Jul 12 - Depository bank business disposal Sept 12 - Merger by incorporation of Emro Popolare into BPER (effective from 1 st Jan 12) Oct 12 - Merger by incorporation of Emil-Ro Leasing S.p.a. into Emil-Ro Factor (effective from 1 st Jan 12) Dec 12 - Agreement with IGI for the sale of the entire share capital of Arca Impresa Gestioni Sgr Execution of Business plan non-ordinary action: Nov 12 - Merger by incorporation of Meliorbanca S.p.a. into BPER (effective from 1 st Jan 12) part of nonordinary actions of BPER Group Business Plan Jan 13 - Approval of a plan for the merger of Carispaq, BP Lanciano e Sulmona and BP Aprilia - part of nonordinary actions of BPER Group Business Plan Page 32

33 Contacts for Investors and Financial Analysts Gilberto Borghi Head of Investor Relations Via San Carlo, 8/ Modena - Italy Ph gilberto.borghi@bper.it Alessandro Simonazzi Head of Planning & Control Via San Carlo, 8/ Modena - Italy Ph alessandro.simonazzi@bper.it Page 33