Consolidated interim Report as at 31 March 2019 approved

Profit for the period of € 48.0 million after having fully expensed BPER's portion of the support given by the IDGF Voluntary Scheme to Banca Carige for € 13.3 million and the 2019 ordinary contribution to the European Single Resolution Fund for € 23.2 million

Asset quality further improving in the quarter:

·         gross NPE stock decreased under the threshold of € 7.0 billion, the lowest level since 2012     

·         gross NPE ratio stable at the year-end level at 13.8%. The target of around 11.5% is confirmed by the end of the year after completing operations with the Unipol Group 

·         annualised default rate down significantly at 1.6% vs 1.9% in 2018 

·         Texas ratio at 83.6%, down from 85% at the end of 2018

Group financial position is solid with a Fully Phased CET1 ratio of 12.24%, up by 29 bps compared with 11.95% at the end of 2018. Phased In CET1 ratio  of 14.24%, far higher than the SREP requirement set by the ECB for 2019

The growth in commercial activity for loans to customers has been positive with a stock of mortgage loans up by 1.3% on December 2018 and new production rising considerably by 13.1% on the first quarter of last year. There have been significant increases in volumes, also in terms of total funding, which comes to € 93.3 billion (+2.2% since the end of 2018), including the Bancassurance sector.

The net result from operations in the quarter amounts to € 157.6 million, with a positive contribution from ordinary net interest income , which is higher than in the last three quarters of 2018, and with stable net commission income. The annualised cost of credit comes to a low level of 61 bps. 

The activities for implementation of the extraordinary operations already announced in recent months regarding the acquisition of the minority stake in Banco di Sardegna, the acquisition of 100% of Unipol Banca and the simultaneous sale of approximately € 1 billion of bad loans to UnipolRec continue according to schedule, as well as the acquisition of an incremental stake in Arca Holding, along with the measures included in the new 2019-2021 Business Plan, some of which are already at an advanced stage of completion.