BPER Banca (BPE) investor relations material

Executive summary

• Achieved record adjusted net profit of €2.1bn in FY25, with strong commercial performance and a proposed dividend payout of €1,368M (75% payout ratio), up 60% year-over-year.

• Total revenues reached €6.6bn, with core revenues at €6.2bn, and cost/income ratio improved to 45.7%.

• Market share increased to 11% from 8% in 2023, with expanded branch presence in Northern Italy.

• Integration of Banca Popolare di Sondrio (BIPSO) is on track, with regulatory approval received and full completion expected by April 2026.

• Shareholder remuneration reached 220% since April 2024, with market capitalization rising to over €24bn.

Financial highlights

• Total operating income was €6.6bn (+18.2% YoY), with adjusted net profit at €2.1bn.

• Cost-to-income ratio improved to 45.7% (47.2% like-for-like), down 314bps year-over-year.

• Loan loss provisions at €316M; cost of risk at 24bps (34bps like-for-like).

• Return on tangible equity at 20%; CET1 ratio at 14.8%.

• Organic capital generation of €2.3bn (340bps) in the last 12 months.

Outlook and guidance

• Expectation to continue growth trajectory in 2026 on a like-for-like basis, with further guidance post full BIPSO integration.

• Dividend payout ratio may be revised upward if strong capital generation persists.

• Conservative budgeting for 2026 with interest rates at 1.75%.

• Business plan targets >14.5% CET1 ratio and further cost reductions, with focus on digital transformation and ESG lending.

• Macroeconomic environment remains uncertain, with Italy's GDP expected to grow by 0.6% in 2026.