Banca Monte dei Paschi di Siena (BMPS) Investor Presentation summary

Strategic rationale and value creation

• Merger creates Italy's #3 banking group, combining strong brands and broadening client base over 6 million.

• Enhanced diversification and resilience, with a unique business model supporting families, SMEs, and corporates.

• Pro-forma ROTE ~14% and CET1 ratio ~16%, with significant capital buffer and organic capital generation of ~€0.5bn p.a.

• Double-digit accretion on adjusted EPS and sustainable, growing dividends with up to 100% payout ratio.

• Accelerated use of DTAs, generating ~€0.7bn p.a. pre-tax synergies and tangible benefits for all stakeholders.

Business combination and complementarity

• MPS and Mediobanca bring complementary strengths: retail/commercial banking, wealth management, CIB, and consumer finance.

• Combined group achieves top-3 positions in asset gathering, consumer finance, and CIB, leveraging both networks.

• Diversified business mix with balanced exposure to retail, corporate, investment banking, and insurance.

• Enhanced customer value proposition through specialized expertise and innovative offerings.

• Strong affinity in strategic initiatives and investment plans, leveraging ~€0.2bn combined annual investments.

Financial and operational impacts

• Combined revenues ~€8bn, adjusted net profit ~€3bn, and cost/income ratio improvement to ~40%.

• Significant industrial synergies: ~€0.3bn revenue, ~€0.3bn cost, and ~€0.1bn funding synergies annually.

• Day-1 write-up of €1.3bn LCF DTAs, with €2.9bn total on-balance-sheet DTAs and strong capital contribution over six years.

• Pro-forma CET1 ratio ~16% after capital increase and integration, with robust liquidity and asset quality metrics.

• Resilient business model with improved risk profile, NPE ratio ~3%, and strong liquidity/funding ratios.