New Industrial Plan 2019-21 approved “BPER 2021 Strategic Plan”

BPER Group presents its business plan for the next three years (“BPER 2021 Strategic Plan” or the “Plan”) structured on three pillars:

1. Growth and development of the business, with a strong focus on fee-based services such as bancassurance, wealth management and global advisory for corporate clients and on high margin business such as consumer credit;

2. Operating efficiency increase and simplification;

3. De-risking acceleration and further capital strengthening.

The Plan has a solid starting point thanks to the significant benefits coming from the strategic transactions announced in February 2019¹: the acquisition of Unipol Banca and the Minorities interests of Banco di Sardegna, the disposal of ca. €1 billion bad loans and the acquisition of the control of Arca Holding.

The Group aims at confirming itself as a reference point for families and companies, supporting the economic growth of the local communities, which will be served with an increasing focus on digital transformation, process and product innovation, new internationalization strategies and a further commitment to Social Responsibility.

The Industrial Plan 2019-21 main goal is to create sustainable medium-long term value for all Group stakeholders, through a structured plan of actions which will make it possible to reach the following financial targets:

• Profitability increase: 2021 net income equal to €450 million and RoTE equal to ~10%
• Further capital strengthening: 2021 CET1 ratio fully phased close to 12.5%²
• Average dividend payout during the three years of ~25%

These goals will be reached through its implementation along the 3 pillars of the Plan, being:

1. Growth and development of the business³:

• AuM CAGR 18-21: +5.0%
• Net customer loans CAGR 18-21: +1.6%
• Net commissions CAGR 18-21: +3.6%
• Net interest income CAGR 18-21: +0.7%

2. Efficiency increase and simplification

• Operating costs CAGR 18-21: -2.6%
• 2021 Cost / Income ratio: lower than 59%

3. De-risking acceleration:

• 2021 Gross NPE ratio: lower than 9%
• 2021 cost of risk: 60 bps