Consolidated interim report on operations as at  September 

Consolidated interim report on operations as at  September 

Banca popolare dell’Emilia Romagna Cooperative Bank with head office in Modena Via San Carlo, $% Tel. ( (% – Fax ( (% Bank Registration no. ,( ABI code $/-1 Parent Company of Banca popolare dell’Emilia Romagna Banking group Registered in the Register of Banking Group with code $/.1, since / August (( http:%%www.bper.it - e-mail: [email protected] Tax code, VAT number and Business Register no. 1 Modena Chamber of Commerce no. $ Share capital as at %%, € ,,,,(,. Member of the Interbank Deposit Guarantee Fund Ordinary shares listed on the MTA market



Consolidated interim report on operations as at  September 

Directors and officers of the Parent Company at the date of approval of the Consolidated interim report on operations as at  September  page 

Group interim report on operations as at  September  page /

Consolidated financial statements Consolidated balance sheet as at  September  page $/ Consolidated income statement as at  September  page $$ Statement of consolidated comprehensive income page $( Statement of changes in consolidated shareholders' equity page (

Explanatory notes Form and content of the consolidated interim report as at  September  page ( Information on the consolidated balance sheet page  Information on the consolidated income statement page  Information on risks and related hedging policy page / Information on the consolidated shareholders' equity page ,/

Attachments

Financial statements of the Parent Company Balance sheet of the Parent Company as at  September  page 1 Income statement of the Parent Company as at  September  page 1 Income statement of the Parent Company by quarter as at  September  page 1 Statement of changes in shareholders' equity of the Parent Company page 1, Pro -forma income statement of the Parent Company as at  September , page 1

Certifications and other reports

Certification of the Manager responsible for preparing the Company's financial reports page 1(

Consolidated interim report on operations as at  September  Directors and officers of the Parent Company

Directors and officers of the Parent Company as at the date of approval of the Consolidated interim report on operations as at  Septem ber 

Board of Directors

Chairman: Ettore Caselli

Deputy chairmen: * Alberto Marri * Giosuè Boldrini * Luigi Odorici

Chief Executive Officer: * Alessandro Vandelli

Directors: Antonio Angelo Arru Mara Bernardini Giulio Cicognani Cristina Crotti * Pietro Ferrari Elisabetta Gualandri Giovampaolo Lucifero Giuseppe Lusignani Roberto Marotta Valeriana Maria Masperi Daniela Petitto * Deanna Rossi Angelo Tantazzi

* Members of the Executive Committee

Board of Statutory Auditors

Chairman: Antonio Mele

Acting Auditors: Carlo Baldi Francesca Sandrolini Vincenzo Tardini Diana Rizzo

Substitute Auditors: Giorgia Butturi Gianluca Spinelli



Consolidated interim report on operations as at  September  Directors and officers of the Parent Company

Board of Arbiters

Members: Miranda Corradi Marcello Minutolo Paolo Casarini Roberto Bernardi Cesare Busi

Substitute members: Federico Ferrari Amorotti Massimo Turchi Pier Luigi Cerutti

General Management

General Manager: Fabrizio Togni

Deputy General Managers: Eugenio Garavini Pierpio Cerfogli Gian Enrico Venturini

Manager responsible for preparing the company's financial reports

Manager responsible for preparing the company's financial reports: Emilio Annovi

Independent Auditors

PricewaterhouseCoopers s.p.a.

1

Consolidated interim report on operations as at  September  Interim report on operations

Group interim report on operations as at  September 

/

Consolidated interim report on operations as at  September  Interim report on operations

Contents

Introduction

. Key figures . BPER Group structure as at  September  . Summary of results . Performance ratios ., Summary schedules

. Significant events and strategic transactions . Strategic transactions . The BPER Group's  -/ Business Plan . European Single Supervisory Mechanism (SSM) ., Structured finance transactions . Recovery of non -performing loans: securitisations and other financial transactions .1 Other significant events

. Scope of consolidation of the BPER Group . Composition of the BPER Group as at  September  . Changes in the scope of consolidation

,. Results of operations ,. Balance sheet aggregates ,. Own Funds and capital ratios ,. Reconciliation of consolidated net profit%shareholders' equity ,., Income statement aggregates ,. BPER Group employees ,.1 Geographical organisation of the BPER Group

. Other information . Treasury shares . Share price performance . Ratings as at  September  ., Investigations and audits . Main litigation and legal proceedings pending

1. Significant subsequent events and outlook for operations 1. Subsequent events 1. Outlook for operations

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Consolidated interim report on operations as at  September  Interim report on operations

Introduction

The third quarter of  saw the world economy continue to grow at a generally modest and uneven rate. Complicating matters was, above all, fears about a more pronounced slowdown in emerging countries than the forecasts made by economists in the first half of . The most worrying alarm came from China where, after the collapse of the stock exchange, the local authorities took a series of decisions that have fuelled serious doubts in the markets about the real extent to which the Asian dragon's economy was putting on the brakes. All of this has naturally weighed negatively on future estimates of growth in the world economy, where developing countries as a whole now play a much more important role than a few years ago.

As for the individual macro areas, even if the Eurozone has enjoyed favourable conditions for several months now (weakness of the euro, low cost of raw materials and ultra-expansionary monetary policies), once again in this last quarter it has struggled to take a path of lasting and sustainable growth. The Greek problem has been shelved, at least for the time being, though one was hoping for more comforting numbers. Even if exports have shown encouraging signs (as has consumption), the main worry is the continued weakness in capital investment which to a certain extent is a feature of all Eurozone countries. France and Italy are struggling to shake off the economic stagnation that has been holding them back for some time now. Germany, the Eurozone's leading economy and the one potentially able to pull it out of this situation, being the European country that is the most commercially exposed to China, has had to deal more than anyone else with this fear of an excessive slowdown by the Asian giant. Germany has also been overwhelmed by the recent Volkswagen scandal, the extent of which is still difficult to define, though it is likely to deal a heavy blow to the economy and the entire country's reputation for reliability.

Overseas, the numbers have been more comforting in the USA. Despite the fact that the last three months have confirmed a certain weakness in the manufacturing sector, held back, above all, by the strength of the dollar, the figures have continued to convince in other sectors of the economy (services, consumer spending, the labour market, the housing market, etc.). It was no coincidence that the official growth rate for the second quarter of  (.(F q%q annualised) was a nice surprise, confirming the robustness of the US economy.

With regard to emerging countries, as we mentioned previously, the last few months have been somewhat delicate. The Chinese stock market crash and the subsequent action taken by local authorities to try and stem the tide, and the sudden decision to devalue the Renminbi, the local currency, in mid- August, have generated several doubts about the ability of the PBOC, the Chinese Central Bank, to manage the situation effectively. What's more, the official statistics on the country's rate of growth, issued by the National Statistics Office, have fed suspicions about their reliability on the part of analysts and economists; hence the fears of a more violent slowdown in the Asian giant than previously estimated, with heavy consequences for the rest of the world and, in particular, for any country directly or indirectly tied to China. Also complicating the picture of emerging countries is the delicate situation of two major economies, Russia and Brazil, that have been experiencing months of recession, and the overall capital outflow from the area in question that has been taking place generally.



Consolidated interim report on operations as at  September  Interim report on operations

For their part, not even in the third quarter of  have Central Banks collectively changed their orientation, remaining essentially very accommodating. As we have seen, the Central Bank of China made its policy even more expansionary in order to support the markets and the economy; even the Fed, which was expected to apply its first monetary tightening in September, decided not to intervene, but rather to postpone yet again the start of interest rate hikes, precisely because of the danger posed by emerging countries as a brake on global growth. The Eurozone (BCE) and Japan (BOJ) have naturally continued their existing plans of quantitative easing. However, despite the persistence of these ultra-expansionary monetary policies, inflation in the main developed areas (USA, Eurozone and Japan) has continued, also in recent months, to remain well below the target set by the various Central Banks.

As regards financial markets, mainly because of the danger coming from the emerging world, China in particular, the third quarter turned in very negative performances for most commodities and world stock markets. On the other hand, the relationship between the Euro and the US dollar remained more or less stable.



Consolidated interim report on operations as at  September  Interim report on operations

. Key figures

. BPER Group structure as at  September 



Consolidated interim report on operations as at  September  Interim report on operations

. Summary of results

The result for the first nine months of the year confirms the excellent level of profitability achieved in previous quarters, with a profit for the period up by 1F compared with last year at Euro . million, net of non-recurring costs 1. This result is even more significant if one considers that it includes the estimated charges for the whole of  relating to the provisions for the EU Single Resolution Fund and the Deposit Guarantee Fund of Euro (. million, which did not exist in ,. Worth noting is confirmation of the sharp decline in net adjustments to loans, in line with expectations for , thanks to the improvement in the economic environment and the decisive steps taken to restructure the risk profile of the loan portfolio, which continues to see a significant decline in new transfers to non- performing loans; at the same time, the level of coverage is increasing and is now over ,F, one of the highest percentages among direct competitors . In terms of traditional banking activities with customers, in the last quarter of the year, for the first time in more than two years of consecutive declines, there has been a slight reversal of the trend in loans, accompanied by a strong acceleration in new loan disbursements to households and businesses: a rise of over F compared with the same period of ,, while, as regards deposits, the significant growth of assets under management continues. This latter aspect has helped to support the positive trend in net commission income which, together with the reduction in ordinary operating costs, has had a positive impact on the income statement. The Group's liquidity position and capitalisation are both extremely positive, as confirmed by its LCR and NSFR indices, both well in excess of F, and by the pro forma 2 CET ratio (Fully Phased) of ./$F, well above the minimum regulatory requirements, without considering the effects of the validation of internal models 3; furthermore, the level of leverage comes to more than /F, one of the best figures in the system, confirming management's cautious and balanced approach.

As regards the figures in the income statement, summarised below, reference is made to the reclassified consolidated financial statements 4 in which indirect tax recoveries, which are allocated for accounting purposes to "Other operating income" , have been reclassified as a reduction in the related costs.

1 Non-recurring costs include extraordinary costs for redundancy incentives and the Solidarity Fund of Euro ,. million before taxes at  September , of which Euro . million estimated for the third quarter, in accordance with the agreement signed with the Trade Unions on , August  in full compliance with the guidelines of the -/ Business Plan, and Euro .$ million already recognised in the second quarter. The tax effect of these items is approximately Euro $ million. 2The Fully Phased Common Equity Tier  ("CET") ratio, estimated in January ( in accordance with the new Basel  regulations, and the Phased in CET ratio have been calculated on a pro-forma basis taking into account the profit for the third quarter allocable to equity (Euro  million, corresponding to about  bp), having already included for regulatory purposes (as authorised by the ECB) the portion of net profit realised in the first half of the year (Euro , million corresponding to approximately  bps) that could be allocated to equity. The pro-forma calculation takes into account the sale of a (.,F stake in Istituto Centrale delle Banche Popolari Italiane (ICBPI): the completion of this transaction, the preliminary contract for which was signed on ( June , is subject to authorisation from the competent authorities. This should be obtained by the end of the year. The impact is currently put at around , bps. 3 Pre-validation of the AIRB models with the European Central Bank and the Bank of Italy, which officially commenced at the end of January, continued in the first nine months of the year. A formal validation request was sent to the Supervisory Authorities in August, followed by the planned on-site inspection, which was completed at the end of October. 4Paragraph ., below provides the reconciliation required by CONSOB communication DEM%11,( of $ July 1. ,

Consolidated interim report on operations as at  September  Interim report on operations

The following results, presented in comparison with the first nine months of , (year on year), are particularly significant: • total net profit for the nine months of € $$./ million (Q/.F), which, net of non-recurring costs for the personnel manoeuvre 5, amounts to Euro . million (Q1,.(/F); • profit from current operations before tax of Euro ./ million (-,.1F), Euro /(.( million net of non-recurring costs 6; • operating profit of Euro ,(., million, down by ,.$/F. In particular: ° net interest income down by .F, mainly due to lower interest rates and a different market environment; ° net commission income up by ,.F, thanks to the contribution made by asset management and "bancassurance"; ° positive contribution from net trading income (Euro $.( million), even though it is lower than the same period last year; • net loan adjustments down considerably (-1./F) with a cost of credit for the period of ($ bps ( bps annualised); • operating income, net of total net adjustments, up by 1.(F on , (Q$.(F compared with the first nine months of ), confirming the resilience of overall margins in light of the significant improvement in cost of credit; • ordinary operating costs 7 down by ./F, net of non-recurring payroll costs accounted for in the period, with a decrease in both ordinary payroll costs (-.1F) and other administrative expenses (-.1,F).

The principal economic aggregates for the third quarter are compared below with those for the second quarter of  (quarter on quarter): • profit from current operations before tax of Euro . million (Euro 1./ million in the second quarter), Euro 1.1 million (Q1./$F) net of non-recurring costs for the period 8; • operating profit (Euro  million) is down by ./F. In particular: ° net interest income down by .F, reflecting a slight decline in the overall spread, mainly influenced by the pressure on the yield of commercial assets, despite an improvement in the cost of funding; ° net commission income down by .F, mainly due to the usual seasonality of the summer period; ° net trading income of Euro ., million (Euro . million in the second quarter) favoured by the stabilisation of financial markets during the quarter; • net adjustments to loans in sharp decline (-.1F). The cost of credit comes in at ( bps for the third quarter, down on the second quarter of  ( bps); • operating income, net of total net adjustments, is up by .1F on the previous quarter (Q$.F on the third quarter of , and substantially in line with the third quarter of );

5 See note  6 See note  7 See note  8 See note  

Consolidated interim report on operations as at  September  Interim report on operations

• there has been a sharp decrease in ordinary operating costs 9 (-/.,F) mainly due to the normal seasonality of the third quarter of the year, with payroll costs (-/.$F) and other administrative expenses (-/.,,F) down.

In the balance sheet: • net loans to customers have fallen since  December , (Euro ,,,,(.$ million, -./F), but are slightly up on  June , while direct deposits are basically unchanged (Euro ,1,/,. million, -.F), with a net loans%deposits ratio of (,.F ((.F at  December ,); • indirect deposits have performed well (Euro (,.( million), with an increase of .1F mainly attributable to assets under management (Q$.F) and the stock of insurance policies (Euro ,/$.1 million, Q,.F), principally for the life sector.

The capital ratios, still determined using the standardised approach for the requirements to cover credit 10 and market risk, have also been calculated on a pro-forma basis 11 , as follows, with results that are well over the regulatory limits: • Applying the transitional (Phased in) arrangements, Common Equity Tier (CET) amounts to Euro ,,//,(1 thousand, resulting in a ratio of .1F (.F at  June  and .1F at  December ,). This figure calculated on a pro-forma basis 12 comes to .,F, while on a Fully Phased basis it is estimated at ./$F; • Phased in Tier  ratio of ./F (.F at  June  and .(F at  December ,); • Total Capital ratio (Phased in) of .F (.$(F at  June  and .,F at  December ,). Total Own Funds amount to Euro ,$,,( thousand.

Very positive leverage indicators calculated for  in accordance with the regulations: • transitional arrangements (“Phased in”) of /.F (/.,F at  June ); • under full application ("Fully Phased") of /.F (/F as at  June ).

Liquidity levels higher than the required minimums: • Liquidity Coverage Ratio (LCR) of .1F; • Net Stable Funding Ratio (NSFR) not yet available, but reckoned to easily exceed F (,.F at  June ).

9 See note  10 See note  11 See note  12 See note  1

Consolidated interim report on operations as at  September  Interim report on operations

. Performance ratios

.(. , *

Financial ratios

Structural ratios (F) net loans to customers%total assets /.1F /.,F net loans and advances to customers%direct deposits from customers (,.F (.F financial assets%total assets (.F 1.((F fixed assets%total assets .((F .F goodwill%total assets .1F .1F direct deposits%total assets $.1F $1.$F deposits under management%indirect deposits ,$.1F ,1.F financial assets%tangible equity 13 ./ .1 total tangible assets 14 %tangible equity . . net interbank lending%borrowing (in thousands of Euro) (,,,(,/,) (,,//,1) number of employees ,, ,( number of national bank branches ,,, ,/

Profitability ratios (F) ROE .,F .F ROTE .,(F ./F ROA (net profit%total assets) .F .F Cost%income Ratio 15 1.F .(F Net adjustments to loans %net loans to customers .($F .F Basic EPS ./ .// Diluted EPS ./ .//

Risk ratios (F) non-performing exposures%net loans to customers ./F ,.$1F net bad loans%net loans to customers 1.$F 1.,F net unlikely to pay loans%net loans to customers /.1F $.F net past due loans%net loans to customers ./,F .,,F adjustments to non-performing exposures%gross non-performing exposures ,.F ,.11F adjustments to bad loans%gross bad loans 1.$F 1.F adjustments to unlikely to pay loans%gross unlikely to pay loans ./,F $.$F adjustments to past due loans%gross past due loans /./$F $./F adjustments to performing exposures%gross performing exposures .F .1F

(*)The comparative figures for the income statement are as at  September ,, except for the ROE and the ROTE which are calculated on a yearly basis.

13 Tangible equity Z total shareholders' equity net of intangible assets. 14 Total tangible assets Z total assets net of intangible assets. 15 The cost%income Ratio has been calculated on the basis of the layout of the reclassified income statement (operating expenses%operating income); when calculated on the basis of the layouts provided by Circular no. 1 of the Bank of Italy the cost%income ratio is at 1.,F (.(F as at September , ,).

/

Consolidated interim report on operations as at  September  Interim report on operations

.(. , *

Own Funds (Phased in) Common Equity Tier  (CET) ,,//,(1 ,,$,1 Own Funds ,$,,( ,,($,/( Risk-weighted assets (RWA) ,,1,,, ,,1(,

Capital and liquidity ratios Common Equity Tier  Ratio (CET Ratio) - Phased in .1F .1F Common Equity Tier  Ratio (CET Ratio) - Phased in pro-forma 16 .,F Tier  Ratio (T Ratio) - Phased in ./F .(F Total Capital Ratio (TC Ratio) - Phased in .F .,F Common Equity Tier  Ratio (CET Ratio) - Fully Phased pro-forma 17 ./$F .(F Leverage ratio - Phased in 18 /.F /.F Leverage ratio - Fully Phased 19 /.F 1.(F Liquidity Coverage Ratio (LCR) .1F ,.1F Net Stable Funding Ratio (NSFR) 20 n.d. .F

Non financial ratios

Productivity ratios (in thousands of Euro) direct deposits per employee ,,$.1$ ,($./ loans and advances to customers per employee ,$.$ ,/$$.,/ assets managed per employee ,.(( ,./ assets administered per employee ,,.$ ,.1 core revenues 21 per employee /.$( $., net interest and other banking income per employee 1. ,. operating costs per employee $1., /$.((

(*)The comparative figures for the income statement are as at  September ,, except for the ROE and the ROTE which are calculated on a yearly basis.

16 The Fully Phased CET Ratio and the Phased in CET Ratio, both estimated according to the new Basel  rules that will be fully applicable from January (, have been calculated on a pro-forma basis, taking into account the share of profits attributable to equity earned during the third quarter of  ( Euro  million, corresponding to around  bp) , since, having obtained the authorization of the ECB, the share of profits attributable to equity earned during the first half year of  (Euro , million corresponding to approximately  bps) has been already included for regulatory purposes. The pro-forma ratios take into account also the sale of a (.,F stake in Istituto Centrale delle Banche Popolari Italiane (ICBPI): completion of this transaction, for which the preliminary sale deal was signed on ( June , is subject to approval by the competent Authorities, which should be received by the end of this year. The incidence is currently estimated to approximately , bps. 17 See previous note. 18 Leverage Ratio – Phased in: the ratio is calculated according to the provisions of Regulation (EU) /% (CRR), as amended by the Commission Delegated Regulation (EU) %1. 19 See previous note. 20 The NSFR, not yet available, it is in any case estimated to exceed F (,.F as at  June ). 21 Core revenues Z net interest income Q net commission income. $

Consolidated interim report on operations as at  September  Interim report on operations

., Summary schedules

The reclassified income statement for the period to  September  is presented below, with quarterly comparisons.

In accordance with CONSOB's requirements contained in Communication DEM%11,( of $ July 1, we provide details of aggregations and reclassifications compared to the standard income statement format provided in the Bank of Italy's Circular no. 1%: • "Net result from financial activities" includes items $, (,  and  in the standard reporting format; • indirect tax recoveries, allocated for accounting purposes to item  "Other operating charges%income" , have been reclassified as a reduction in the related costs under "Other administrative expenses" (Euro (,, thousand at  September  and Euro (,$$1 thousand at  September ,); • “Net adjustments to property, plant and equipment and intangible assets" include captions  and  in the standard reporting format; • “Net impairment adjustments to AFS and HTM financial assets" includes captions  b) and  c) in the reporting format; • “Gains (losses) on equity investments, disposal of investments and adjustments to goodwill" include captions ,, 1 and / in the reporting format.

The numbers corresponding to the item in the Financial statements have been given next to each entry on order to facilitate reconciliation of the items in the reporting format required by Bank of Italy Circular no. 1% with the reclassified income statement.

(

Consolidated interim report on operations as at  September  Interim report on operations

Reclassified consolidated income statement as at  September 

(in thousands of Euro) Captions .(. .(., Change Fchange

Q Net interest income (,, (/$,,(( (,(($) -. ,Q Net commission income /,1(/ ,,,( ,/ ,. / Dividends ,,$( $,1 (,,/) -.(, $Q(QQ Net trading income $,$$ , (,$,) -/.  (*) Other operating charges%income 1,($1 ,1 ,1 ./ Operating income ,(, ,1/1,(/ ($,1) -,.$/ $ a) Payroll (1$,/() (//,() (,1/$) $.// $ b) (*) Other administrative costs ((,/) ((/,1) ,,$( -.1,

Q Net adjustments to property, plant, equipment and intangible assets (,() (,(,($) (,(/) .$1 Operating costs ((/,) ((,,$1) (,/,/) .1 Net operating income 1,, /,,/ ((,/) -/.  a) Net impairment adjustments to loan (,,,$(/) ($,$$) ,( -1./

 b)Qc) Net impairment adjustments to financial assets available for sale and held to maturity (1,,1) (,,) (,/) /(./ Net impairment adjustments to other financial  d) assets (,,11) (1,) ,,1$/ -/1./ Net impairment adjustments (,,,$) ((,/1) ,/,/ -. ( Net provisions for risks and charges (,) (/,1/) (,,) $$./,

,Q1Q/ Gains (Losses) from equity instruments, on disposal of investments and adjustment to goodwill (,,,1) (,,1()  -./ $ Profit (Loss) from current operations before tax ,1$ ,/1 (1,($) -,.1 ( Income taxes on current operations for the period (1,(,) (,(,) (,1 -,.  Net profit ( Loss) for the period $$,/,, /,$1 ,($ /.  Net profit (Loss) pertaining to minority interests (1,$) (,,/) $,/ -$. Profit (Loss) for the period pertaining to the , Parent Company $,$1 1, ,,$ .1

(*) Caption net of recovery of taxes (,, (,$$1 (,) -.,$



Consolidated interim report on operations as at  September  Interim report on operations

Reclassified consolidated income statement by quarter as at  September 

(in thousands of Euro)

Captions st nd rd st nd rd ,th quarter quarter quarter quarter quarter quarter quarter    , , , , Q Net interest income ,,( $,/ ,1 (,$ $,1( ,, , ,Q Net commission income /(, $,1 //,$,, /,, /,,$ 1(, /1,/, / Dividends ,( ,$ ,/ /, /,1/  ,$1 $Q(QQ Net trading income ,1,$ ,,1 ,1 1, ,1,$( , /,1  (*) Other operating charges%income ,,, (,1( ,/, $,111 , ,$ , Operating income ,,$ /, ,(/ $,$ //,$1 ,, ,,,$ $ a) Payroll (((,) ((1,$$) (,/,) ((1,/(1) (,(() ($,1) ($,/$1) $ b) (*) Other administrative costs ((,1) (,() ((,1($) ((1,$) (,) ((/,(,) (1,/$1)  Q  Net adjustments to property, plant and equipment and intangible assets (/,) (/,$/) (/,,() (1,/) (1,1) (/,) (,,) Operating costs (,/) (/,1) (,,1/) ((,,() (,,) ((,,(1) (,(/) Net operating income ,,,//1 (,(/ 1/,, /,,( 1,// ,$ ,,,1 Net impairment adjustments to  a) loans (,/,,) (,/) (/,1) (,$) (,,(/) (1,(1) (,1,1)  b)Qc) Net impairment adjustments to financial assets available for sale and held to maturity (1,,/) (,) (/,1) (,11) (,$() (1$) (1,)  d) Net impairment adjustments to other financial assets ,$/( (,,((/) (,$) (,,,) (1,) (,) ,

Net impairment adjustments (,(,(/) (/,/$1) (,1/) (,,/) ($,//) (1/,() (1/,1,) ( Net provisions for risks and charges (,,(1) (,1$() (,,,) (1,1$) (,(/1) ($,1) (,) ,Q1Q/ Gains (Losses) from equity instruments, on disposal of investments and adjustment to goodwill (,//) /,/ (1,$,1) ((/) (,//) ,/ 1(( $ Profit (Loss) from current operations before tax /$,( 1,1/ , ,(/( , ,/,1 (/,() ( Income taxes on current operations for the period (/,,) (/,1/) (,) (,/1) (,() (,,$) /,1  Net profit ( Loss) for the period ,/ (,, /,/( ,( ,( ,1$ (,1,)  Net profit (Loss)pertaining to minority interests (1,,) (,/) ,11 (,(,/) (,/) ($,1/) (1() , Profit (Loss) for the period pertaining to the Parent Company ,,(/ $,, (, $,/ /,1$ , (,1,,)

(*) Caption net of recovery of taxes ,$1, ,/1 ,$, (,/$( ,( ,/ ,/



Consolidated interim report on operations as at  September  Interim report on operations

. Significant events and strategic transactions

. Strategic transactions

New brand: BPER Banca Numerous changes in the structure of the Parent Company, resulting in the achievement of national status, prompted BPER to include a project in the -, Business Plan to establish a new brand identity and positioning for the Group and each individual bank. This project involved many months of work by the central departments at the Parent Company, whose efforts were assisted by Interbrand Italia s.r.l., the leading international brand consultancy. The new brand, BPER Banca, was officially presented to the press, our customers and the financial community on 1 April : the new brand and identity are consistent with our objectives, expressing well our historical virtues and current identity, while also projecting us into the future. The new brand was devised by combining analytical, strategic and creative thinking and expresses immediately our new positioning: we combine the solidity of a national-level bank with an in-depth knowledge of the territories in which our customers live, working to help them build a strong tomorrow. The new brand will enhance the efficiency of marketing and communications, improve our recognisability, distinctiveness and reputation, and raise our profile with investors and markets, thereby making us more able to generate additional business.

The letters of the logo have been designed to communicate a sense of balance, authority, practicality and judgement, with special emphasis on the initial "P" for Popolare. The "colon", a opening punctuation mark that symbolises proportion and equilibrium, hints at the start of a direct discussion, dialogue, relationship. The use of green maintains and capitalises on a link with the history of the bank, while the two tones indicate solidity and modernity at the same time.



Consolidated interim report on operations as at  September  Interim report on operations

Subscription to the increase in the share capital of Release s.p.a. The Extraordinary General Meeting of Release s.p.a. held on 1 February  resolved to proceed with an increase in capital of Euro ,, in order to ensure that the company can continue operating as a going concern and comply with the limits set by law on major risks. On  March , BPER exercised its option on ,, shares due in proportion to the interest currently held in the company's capital (.$,F), with a payment of Euro . million.

Voluntary public exchange offer for BPER Lower Tier II bonds up to a maximum nominal value of Euro  million The voluntary public exchange offer acceptance period ("Offer") for the "Banca popolare dell’Emilia Romagna Subordinated Lower Tier II ,./F %%-%%$" bond ("Existing Notes") up to a maximum nominal value of Euro  million, ended on  June . During the period, between $ May  and  June , Existing Notes with a nominal value of Euro ,.( million were validly tendered in acceptance of the Offer, as analysed below:

Nominal value Nominal value not Description ISIN tendered in acceptance tendered in acceptance (Euro) (Euro) Banca popolare dell’Emilia Romagna subordinated Lower Tier II ,./F %% – %%$ IT,$1(/ ,,$, (,,,,$.

The Existing Notes tendered in acceptance have been cancelled. The exchange was completed on  June  and, for each of the Existing Notes tendered, BPER issued without charges or commission a new subordinated bond known as "Banca popolare dell'Emilia Romagna Subordinated Tier II ,.F %1% – %1% Callable” and paid the interest accrued on the Existing Notes at the above exchange date. Following the acceptances indicated above, the following nominal value of the Securities Offered has been assigned:

Nominal value Description ISIN assigned (Euro) Banca popolare dell'Emilia Romagna subordinated Lower Tier II ,.F %1% – %1% Callable IT$1 ,,$,



Consolidated interim report on operations as at  September  Interim report on operations

Signed agreement for the sale of the majority of the share capital of Istituto Centrale delle Banche Popolari Italiane On ( June , BPER took part in the signing of a preliminary contract between Mercury Italy s.r.l. (an SPV indirectly held by various funds: Bain Capital, Advent International and Clessidra SGR), as promissory buyer, and Credito Valtellinese s.c., Banco Popolare s.c., Banca Popolare di Vicenza s.c.p.a., Veneto Banca s.c.p.a., Banca popolare dell’Emilia Romagna s.c., Iccrea Holding s.p.a., Banca Popolare di Cividale s.c.p.a., UBI Banca s.c.p.a., Banca Popolare di Milano s.c.r.l., Banca Sella Holding s.p.a. and Banca Carige s.p.a., as promissory sellers, for the overall $./(F of ICBPI's share capital held by them.

The sale price was determined: • with reference to the appraised value of the entire share capital of ICBPI of Euro , million, or Euro , million depending on the structure selected for the transaction from the two possibilities identified; • with reference to an additional earn-out component, which cannot be determined at this time. In this regard, BPER confirms that: • its commitment to sell (.,F of the share capital of ICBPI and that, from an accounting standpoint, the transaction would result in the recognition of a) a capital gain, net of tax effect, of about Euro 1 million if the total price is Euro , million and is allocated proportionately among the sellers or b) a capital gain, net of tax effect, of about Euro ,( million if the total price is Euro , million and is allocated proportionately among the sellers; • the transaction would have an estimated positive impact on the Common Equity Tier  ratio reflected in the balance sheet at  March  of about , bps; • following the above sale, it would retain a .F interest in the share capital of ICBPI. Completion of the sale is subject to authorisations from the competent authorities. The selling banks have been assisted by Equita SIM s.p.a. and Mediobanca Banca di Credito Finanziario s.p.a. as financial advisors and by Studio Lombardi Molinari Segni as legal advisors.

While awaiting the above authorisations and in order to prepare the consolidated interim report on operations at  September , the fair value of these securities already booked at  June  and classified as "Assets available for sale" was maintained, considering the lower of the two prices established in the preliminary contract signed on ( June .

Subscription for shares in Società Italiana Flotte Aziendali s.p.a. (SIFA’) On  July  BPER acquired a F interest in "Società Italiana Flotte Aziendali s.p.a. - SIFA'" for Euro  thousand; this company, formed in , is active in the long-term rental of motor vehicles to corporate customers. The Bank has acquired de facto control by virtue of being able to exercise significant influence over the company's strategic financial and operating decisions. This investment is part of broader collaboration with the company that includes the provision of funding, via finance lease transactions, and commercial agreements for the placement of SIFA' products with the Bank's customers.

,

Consolidated interim report on operations as at  September  Interim report on operations

. The BPER Group's -/ Business Plan

On  February , the Board of Directors of Banca popolare dell'Emilia Romagna s.c. approved the new -/ Business Plan, which will steer the Group's activities over the next three years. The new Business Plan of the BPER Group provides for solid and sustainable value creation to be distributed to its shareholders on a stable basis. The targets for / are: • a ROTE (Return On Tangible Equity) of (F and Euro , million of "Net profit”; • a CET ratio of F; • a dividend payout ratio of more than F. The Plan, which has been given the name “BECOMING BPER”, is summarised by five Ss: "Solidity, Simplicity, Specialisation, Selectivity and Stakeholders"; it was devised with the close involvement of all Group personnel, who worked together on one single, agreed programme of change. The new Plan draws with strength and equilibrium on three lines of strategy: • the strengthening of revenues, with objectives for growth in commission income and the development of lines of business that support the needs of the territories served, households and small and medium-sized enterprises; • the simplification and greater efficiency of the operational model, due to further rationalisation of the branch network and related organisational controls, the simplification of processes and investment in innovative technologies; • the optimisation of the risk profile, involving targeted evolution of the way the lending process is governed and the implementation of strategies that are closely tied to the Risk Appetite Framework, as well as the more specialised management of impaired loans, partly by the creation of a business unit dedicated to non-core assets. The Plan was determined with reference to the needs of the various stakeholders in the Group (Customers, Communities, Shareholders, Regulators and Employees). The BPER Group, present in $ regions of Italy with ,,, branches, intends to reconcile this scale - that meets market needs - with the identity and history of the component banks, in order to remain close to the needs and plans of individuals.

In early , a Transformation Programme was devised to put the Business Plan into practice. This has involved establishing work groups and projects that address each of the three strategic guidelines, with strict monitoring of the time required and the progress made on the tasks and operations identified. In addition, in order to ensure the effectiveness of the programme, the Group has identified a dedicated project organisation that coordinates the various phases of the process (operational planning, project implementation, monitoring, reporting and the analysis of variances). Managers have also been identified for the various work groups and related projects (project leaders tasked with implementing the Transformation Programme), each focused on their specific responsibilities. They are supported by a number of persons, within a matrix-style organisation, who monitor the progress of individual projects. Specific training courses have also been established, together with a virtual community whose primary purpose is to ensure maximum involvement of the persons concerned.



Consolidated interim report on operations as at  September  Interim report on operations

A number of projects were activated during the first nine months of , including: • presentation of the new brand image, as detailed above, and the launch of the new advertising campaign; • renegotiation of contracts; • closure of the first batch of branches (, all shut in July ); • agreement with the Trade Unions about the employment changes that are envisaged. A total of (/ activities have commenced at  September , out of the ,1 envisaged in the Plan covering the period -/, in addition to ,, activities relating to other projects not included in the Plan, for a total of , activities launched in , of which $ have already been completed. The "Extraordinary Transactions" project of the -/ Business Plan, includes an initiative aimed at rationalising the distribution network of the Sardinian Hub, while at the same time focusing Banca di Sassari on Consumer Finance as a product company and centre of excellence at the service of the BPER Group. The rationalisation of branches, concentrated in particular on those coexisting in the same area, will bring important benefits in terms of operational efficiency and simplification, also making fuller use of the skills available at local level. The project was launched on $ September  and the first work groups met soon after. According to the current schedule, the operation is expected be completed by the first half of 1.

-/ Business Plan: trade union agreement Implementing the provisions of the -/ Business Plan in relation to the rationalisation of human resources, on , August  a delegation representing the BPER Group and the Group's trade union delegation signed an important agreement that will enable us to achieve the objectives laid down in the Plan as regards optimisation of the workforce and the related impact on the consolidation. Continuing the long-standing tradition of consultation that characterises the BPER Group's industrial relations, the agreement, reached after complex negotiations, will help to achieve the objectives of the Plan such as optimisation of the workforce and a structural reduction in personnel costs. In line with the original estimated total costs for the period of the Plan of around Euro 1 million before tax, it will permit annual savings of Euro 1 million compared with what they otherwise would have been according to the calculations. In connection with this agreement, at  September  we estimated costs of Euro ,. million, recognised as "Payroll costs" and recorded under "Provisions for risks and charges" relating to the Solidarity Fund and redundancy incentives; this estimate may be revised later this year based on the actual number of people who sign up for the manoeuvre and the detailed information that should be available from INPS. The agreement states that the projected reduction of personnel, involving those who will accrue pension requirements over a given period of time, as will be discussed below, will result in a reduction at the end of the Plan of $ people throughout the entire Group (this being the net balance between arrivals and departures). In particular, given that there are ,$$ surplus members of staff, the use of retirement and pre-retirement plans, as well as the optimisation of staff turnover, will lead to an estimated /$ resignations on the part of internal resources. Together with the planned recruitment of around  specialised profiles (especially for the new business areas, Digital and Omnichannel) and the major relocation of / employees to match the needs of the Business Plan (involving the qualification, upgrading and conversion of resources, accompanied by professional and geographical mobility), there will limit overall staff reductions at the end of the -/ Business Plan to $ people.

1

Consolidated interim report on operations as at  September  Interim report on operations

The main points of the agreement are explained below: • Part A - the departure of staff that will have accrued the state pension requirements by  December /. This envisages the obligatory departure of all resources who have or will have accrued state pension requirements by  December /, in particular: ° the termination of employment, on  January /, of staff who have or will have accrued state pension requirements by  December 1, with payment of an incentive; ° the termination of employment, on the date of maturity of state pension requirements, of staff that have or will have accrued state pension requirements between  January / and  December /, with payment of an incentive. Alternatively, these employees can opt to suspend their working activity with access to the ordinary section of the Solidarity Fund, from  January / up to the date that they start receiving their pension. The departure of these resources is assisted by an incentive equal to the number of months of notice compensation provided for in the labour contract, with the possibility of an extra bonus for those who decide quickly. • Part B - access to the banking sector's Solidarity Fund. There is also the possibility of access to the banking sector's Solidarity Fund (on a voluntary basis only) from  January / up to the date of accrual of state pension requirements, for those who will accrue them between  January $ and  December , with termination of employment on  December 1. Also in this case, there is an incentive linked to the timeliness and months of membership. When identifying the persons concerned, numerical ceilings were applied for each area, based on situations considered to be of organisational excess with respect to the Plan, so as to generate efficiency and at the same time limit geographical mobility. The agreement also contains a provision to delay the termination of service, for a period not exceeding  months and in any event within the validity of the Plan, for a maximum of  persons who hold positions with a specialised and%or commercial nature of particular importance, especially with reference to positions of responsibility at department or unit level. • Structural reduction in costs. A progressive use of vacation time, suppressed public holidays, the hour bank and reduction%suspension of working activity has been agreed: these measures will contribute towards a structural reduction in payroll costs. • Mobility. Similar to the agreement signed in connection with the previous Business Plan, this one regulates mobility for employees affected by the transfers envisaged in the various projects of the Business Plan and identifies a number of areas, including the question of ordinary mobility, for which negotiations are scheduled at Group level to ensure a gradual harmonisation of treatments within it.

/

Consolidated interim report on operations as at  September  Interim report on operations

• Measures to enhance resources. Other important aspects of the agreement relate to the identification of measures to enhance human resources, such as: work%life balance tools, above all facilitating access to part-time work, improving welfare policies and investing in specific training courses. • Recruitment. The recruitment of around  specialised profiles is foreseen, especially for the new business areas (Digital and Omnichannel), also using the tools available to both parties at a national level.

. European Single Supervisory Mechanism (SSM) Regulation (EU) no. , of  October  assigned specific tasks to the European Central Bank (ECB) regarding the prudential supervision of banks in cooperation with the national Supervisory Authorities of the participating countries, within the Single Supervisory Mechanism (SSM). The ECB accepted the tasks assigned by this Regulation on , November ,; they are performed with assistance from the Bank of Italy, in the manner envisaged in Regulation (EU) no. ,1$%, of 1 April ,. The ECB works closely with the various European Supervisory Authorities including the European Banking Authority (EBA) in particular, since these supervisory authorities and the SSM must perform their functions in compliance with the EBA regulations. BPER and its Group are among the major European banks supervised directly by the ECB. Consistent with the European Single Supervisory Mechanism (SSM), following completion of the , supervisory review during the first quarter of  and communication by the Regulator of the minimum capital requirements applicable to the Group, BPER has organised a process of constant discussion and alignment with the ECB that includes the provision of detailed periodic information flows in response to requests from the Joint Supervisory Team (JST). The initial requests advanced by the supervisory team during the first nine months of  mainly related to the information and documents needed for a better understanding of the Group and its dynamics and characteristics, with particular reference to the management of risks, the business model, profitability and capital adequacy. Pre-validation of the AIRB models with the European Central Bank and the Bank of Italy, which officially commenced at the end of January, continued in the first nine months of the year. A formal validation request was sent to the Supervisory Authorities in August , followed by the planned on-site inspection by the ECB and the Bank of Italy, which was completed at the end of October. Various meetings were also held with the supervisory team during the period, addressing such additional topics as the recovery plan, governance, the risk appetite framework and the supervisory review and evaluation process (SREP). With specific reference to the SREP, during the first half of  the Supervisory Authority commenced checks on the business model, governance and capital and liquidity risk profiles of the Group, with a view to releasing an overall assessment during the last months of the year.

$

Consolidated interim report on operations as at  September  Interim report on operations

This work required contributions from multiple organisational units within the Group, essentially involving information exchanges and specific meetings with the Joint Supervisory Team that were held at Group offices and on the premises of the Supervisory Authority. At the same time, the Group started and completed a self-assessment activity to identify our positioning with respect to the SREP Guidelines published by the EBA in December ,. This work has resulted in ad detailed plan of action that will be implemented by the Group in order to strengthen our SREP profile.

., Structured finance transactions

In view of the importance of maintaining an adequate liquidity profile, appropriate initiatives have been devised to diversify the forms of medium%long-term funding. These include refinancing operations with the European Central Bank and the placement of bonds in the domestic and international markets.

Covered Bonds On $ February , the Board of Directors authorised the structuring of a programme for the issue of guaranteed bank bonds ("GBB" or covered bonds). This programme envisages the issue to institutional investors on several occasions, by  December $, of covered bonds totalling a maximum of Euro  billion (subject to annual renewal of the related prospectus prepared in compliance with the relevant EU regulations). The segregated loan portfolio used as collateral for bonds issued is made up entirely of residential mortgage loans. GBB issues have been included in the BPER Group's Business Plan as a way to diversify funding, reduce the related costs and extending the maturities of liabilities. In particular, covered bond issues are extremely appealing at a time when market yields are very low, partly due to institutional intervention by the ECB through its programmes of GBB purchases. In this context, the following actions have been completed: • first issue on  December , nominal amount of Euro / million, redeemed on  January ,; • second issue on  June , nominal amount of Euro  million at a floating rate with a tenor of three years. Redeemed early, on  January ; • third issue on  October , nominal amount of Euro / million at a fixed rate with a tenor of five years, placed in full in the domestic and international markets. This issue was reopened on , February ,, adding a further Euro  million; • fourth issue on  January , nominal amount of Euro / million, placed on full in the domestic and international markets; • fifth issue on ( July , nominal amount of Euro / million, placed on full in the domestic and international markets. At  September , the outstanding amount due is therefore Euro , million.

(

Consolidated interim report on operations as at  September  Interim report on operations

On  March , the Board of Directors approved the structuring of a second programme for the issue of guaranteed bank bonds ("GBB"). The second programme envisages the issue of covered bonds (subject to annual renewal of the related prospectus prepared in compliance with the relevant EU regulations) to institutional investors or for refinancing transactions with the European Central Bank, within  years from the first issue. The structuring of the second covered bond issue programme forms part of the BPER Group's new Business Plan and has the same objectives as the previous programme. The segregated loan portfolio used as collateral for bonds issued is made up of residential mortgage loans, also granted to employees of the BPER Group, and commercial mortgage loans. The first transfer of assets for the cover pool, segregated in Estense CPT Covered Bond s.r.l., an SPV belonging to the Group set up specifically for this purpose, took place on / September , for a total of Euro $/ million. This created the conditions necessary for a first bond issue, expected by autumn , mainly for self-subscription purposes.

Securitisations arranged by the Parent Company BPER has completed a number of securitisations pursuant to Law no.  of  April ((( in order to strengthen the funding available from the ECB to tackle liquidity risk. The transactions carried out by the Parent Company are: • securitisation of residential mortgages: ( saw the formation of Estense Finance s.r.l., an SPV held (.(F by the Parent Company, to which performing loans were sold without recourse in exchange for asset-backed bonds issued by the SPV. The notional amount outstanding on the Senior securities after the August  payment date comes to Euro 1.$ million. The Mezzanine and Junior securities at  September  amount to Euro , million and Euro .1 million respectively; • securitisation of loans issued by BPER to SMEs:  saw the formation of Estense S.M.E. s.r.l., an SPV held (.(F by the Parent Company, to which performing loans made to SMEs were sold for a total of Euro . billion in exchange for bonds issued by the SPV. Senior Securities (Class A) were issued for Euro . billion, rated A-%A (low) by Standard & Poor’s and DBRS respectively, as well as Junior Securities (Class B), which are unrated, for Euro ./ billion. The Senior Security is currently amortising as expected and the residual nominal capital after the payment date in September  amounts to Euro $.( million.



Consolidated interim report on operations as at  September  Interim report on operations

Securitisations arranged by Group banks and companies Cassa di Risparmio di Bra s.p.a. arranged two self-securitisations in  and , which enabled the bank to activate direct procedures for participation in the ECB's refinancing auctions. These securities, recognised as eligible, comprise: • Dedalo Finance: Senior Securities (class A) issued for Euro 11,$ thousand, subscribed by Cassa di Risparmio di Bra s.p.a. for Euro //, thousand (at  September  the securities show a nominal value of Euro ,,1 thousand and a fair value of Euro ,,,//. thousand) and Junior Securities (class B) issued for Euro ,$/ thousand, subscribed by Cassa di Risparmio di Bra s.p.a. for Euro ,1 thousand (at  September  the securities show a nominal value of Euro ,1 thousand and a fair value of Euro ,$,. thousand); • Icaro Finance: Senior Securities (class A) issued for Euro ,$, thousand, subscribed by Cassa di Risparmio di Bra s.p.a. for Euro , thousand (at  September  the securities show a nominal value of Euro ,1,(1. thousand and a fair value of Euro ,,,(. thousand) and Junior Securities (class B) issued for Euro 1$,( thousand, subscribed by Cassa di Risparmio di Bra s.p.a. for Euro $,1 thousand (at  September  the securities show a nominal value of Euro $,1 thousand and a fair value of Euro $,($., thousand).

On  February  Sardaleasing s.p.a. and ABF Leasing s.p.a. (absorbed by Sardaleasing s.p.a. on , June ,) arranged a multi-originator securitisation of leasing loans via the block sale without recourse to MULTI LEASE AS s.r.l., the vehicle company, of a portfolio of performing leasing loans that had been selected using specific objective criteria. The sale of the loans was formalised by a notice published in Official Gazette 1 of / February . The total value of the loans sold was approximately Euro ,$ million. The SPV financed the purchase price of the receivables by issuing: • Senior Class A securities of Euro 1.( million, rating: S&P "A" and Fitch "A-", listed on the Dublin Stock Exchange and recognised as eligible by the Irish Central Bank; • two Junior Class B securities, of Euro 1$., million and Euro ., million, unrated and unlisted, that were subscribed for by the original sellers. The aim was to raise funds for the benefit of the entire Banking group, at competitive costs, through refinancing with the ECB. The Senior Securities are currently amortising as expected and the residual nominal capital at  September , after the July  payment date, amounts to Euro ( million. The current securitisation is rapidly moving towards the conclusion (its average duration at the start-up date was calculated at approximately , months) as a result of the amortisation of the underlying lease portfolio (accelerated by early redemptions and repurchases). By the end of the current year, it is expected that the Senior Notes will be reduced to less than Euro  million. In this context, a proposal was made to the Parent Company and approved by the Board of Directors of Sardaleasing s.p.a. (last February) for early closure of the current transaction and full refinancing of the structure through a new securitisation (over . billion), with the aim of increasing the portfolio sold (also including production from  and , and the contracts that were not eligible for lack of "seniority" in ) and hence the volume of Senior Notes to benefit from increased funding at ECB rates. As always, the new transaction responds to the need to transform the Group's assets into securities eligible for repo transactions with the ECB; as a direct result, this will make it possible to access sources of funding for 1 at lower costs with respect to traditional funding.



Consolidated interim report on operations as at  September  Interim report on operations

Mandates have been given to the principal counterparties, including the two rating agencies (Fitch and Standard & Poor's, both reconfirmed) with which due diligence activities and checks on historical performance statistics are in progress. The plan of activities includes two steps to be carried out in sequence: • early closure of the securitisation at the January 1 payment date; • sale of the new block of loans to the SPV and closing with issue of Senior Securities to be implemented by the end of February 1.

Targeted Long Term Refinancing Operations - TLTRO On  June ,, the executive Council of the European Central Bank (ECB) approved refinancing operations aimed at the longer term (Targeted Long Term Refinancing Operations - TLTRO) to be carried out for a period of two years from September ,, through eight quarterly auctions. This initiative aims to improve the functioning of the mechanism for transmitting monetary policy to the real economy, by supporting the process of granting credit. The amount set aside was around Euro , billion - of which Euro  billion belongs to Italy - which will be provided by the ECB to banks in the form of liquidity, on condition that these funds were passed on to households and businesses in the form of loans. Banks were initially assigned a ceiling by way of TLTRO for an amount equal to /F of the total amount of loans to the non-financial private sector (excluding home purchase loans to households) in the Eurozone (so-called "eligible loans") outstanding at  April ,. As part of the first two auctions, scheduled for the months of September and December ,, the counterparties had the possibility each time to activate a loan for an amount that could not exceed the initial ceiling on a cumulative basis. For each of the auctions after the first two (scheduled between March  and June 1), all counterparties could request an additional ceiling equal to three times the difference between the amount of the net eligible total loans granted (in the period between  May , and the respective date of award of reference) and a set reference value (or "benchmark"), net of the amount previously borrowed at the auctions held during the period from March  onwards. The interest rate on the main refinancing operations of the Eurosystem in place at the time of issue is applied to TLTRO for the duration of each operation, with the exception of the first two, to which a fixed spread of Q bps is applied. Interest will be paid in arrears at the time the loan is repaid. Under the TLTRO programme, BPER decided to take part in the first auction for the maximum amount that the Group can apply for in the first two auctions, i.e. Euro  billion. This operation, for which the issue date was , September , and with maturity on 1 September 1, is at a fixed rate of .F. The BPER Group did not participate in the three auctions held on March, June and September . All of the TLTRO will expire in September $. They will also have to be repaid early, in September 1, by those banks whose net eligible loans are lower than their benchmark for the period  May , -  April 1. If the credit trend in April 1 is in line with the benchmark, the banks will be able to keep the cash obtained from the ECB until the expiry date, or decide autonomously to go ahead with early repayment of all or part of the money.



Consolidated interim report on operations as at  September  Interim report on operations

On  September , the Bank of Italy issued a Circular on "Targeted Long Term Refinancing Operations - Annual check on the accuracy of reported data. Indications for ,", which mention the requirements of art. $ § $ of ECB Decision of ( July , (ECB%,%,) i.e. annual checks on such operations. The note points out that such checks can be performed by the independent auditors as part of the annual audit of the Financial statements; it also lays down the rules that the auditors have to follow for the , certification, which has to be carried out on a consolidated basis. This certification has to be submitted to the Bank of Italy by the holding company of banking groups that have taken part in TLTRO operations by  October .

. Recovery of non-performing loans: securitisations and other financial transactions

Avia Pervia transaction The multi-originator securitisation of Avia Pervia s.r.l. (the SPV held (.(F by BPER), carried out by Group banks, excluding Cassa di Risparmio di Bra s.p.a., on / May , continued during the first nine months of . The second "Revolving" sale envisaged in the "Revolving Period" (between the issue date and February /) was carried out in January  for a total of Euro $./ million. This was financed for Euro . million through the issue of ABS securities and for Euro ($.1 million through credit lines provided by the selling Banks. In February , with the amounts collected on securitised positions, the SPV repaid ABS securities to Group banks for a total of Euro . million. As mentioned previously, the transaction is considered as a type of multi-originator securitisation, which involves the Banks as both originators and investors. Consequently, as the risks and benefits of the portfolios have not been transferred, these loans have not been reversed out of the assets of the Group banks. The management of items in dispute has been assigned to the originator banks themselves (as sub- servicers) coordinated by a Group company, Nettuno Gestione Crediti s.p.a. (as the master servicer). Efficient management of non-performing loans will enable the Group to take extraordinary measures to reduce the stocks of such positions, while also optimising the direct costs involved in managing them.

Number Nominal Up -front Deferred Sale Originator bank of value purchase purchase proceeds positions (GBV) price price

Banca popolare dell'Emilia Romagna s.c. ,(1 ,. ,. $,., 11.

Banco di Sardegna s.p.a. 1 (/.1 $., (.( ($.

Banca di Sassari s.p.a. 1( /(. .( . .$

TOTAL ,1/ ,,/. ,$,.$ ,(., ,/.,



Consolidated interim report on operations as at  September  Interim report on operations

Securis Real Estate Fund and other real estate funds In , Sardaleasing s.p.a. made two separate contributions of properties for a total of Euro . million to the Securis Fund managed by Beni Stabili Gestioni S.G.R. s.p.a. These were mainly distressed assets that became available because the users defaulted. In addition, in January , the company obtained a seat on the Fund's Advisory Board, which analyses the most important aspects of property management and makes it possible to enhance the properties' value to the full. On  June ,, after approval by the Parent Company BPER, a third contribution of  properties was formalised for a value appraised by CB Richard Ellis of Euro  million, compared with a net book value of Euro ,. million. The ratio between the selling price and the net book value is (.,F. However, in most cases, the exposures were backed by guarantees issued by Group banks and%or credit consortia for a total of Euro .$ million. A further contribution (the fourth) to the Securis Fund of , properties for a total of Euro /. million was formalised on  December ,. Based on appraisals carried out by Patrigest s.p.a. as an independent expert, the net book value of the properties was Euro 1.( million. The ratio between the selling price and the net book value is .(F. On the package of loans underlying the properties sold, there were guarantees issued by banks or credit consortia for a total of more than Euro / thousand. As at  September , there have not been any further assignments of properties deriving from contracts in default. A new transfer of buildings from terminated default leases is currently in progress. This operation involves two real estate funds (Securis and Polis); the latter has been already used in two previous operations with the former ABF Leasing S.p.a. (absorbed in , by Sardaleasing s.p.a.). ,, properties have been identified in favour of Securis, with a fair value of Euro $./ million versus a gross risk of Euro ,., million and a net one of Euro $.1 million. As regards the contribution to the Polis fund, it is confirmed that the SGR has expressed an interest to Sardaleasing s.p.a. for $ properties with a book net risk of Euro ( million. The two operations are expected to be closed by the end of the year.

The carrying amounts of the UCITS units at  September  are summarised below:

,

Consolidated interim report on operations as at  September  Interim report on operations

(in Euro) No. Final of Par value Fair value Financial assets Type of FV Val. Provisional par shares% as at as at available for sale company level type par value value quotas .(. .(. held st tranche - June  Other  FV /,$. /,1/. ( $,,,$.1 /,/1$,,$.$ nd tranche - December  Other  FV 1$,/. 1$,1/.1  /,,,,. 1,1$,1,,./ rd tranche - June , Other  FV 1/,. 1/,1.( ( ,$/1,1/. ,/,//1. rd tranche - June , Other  FV 1/,1.( 1/,1.( $ ,1,,. ,/,,.( ,th tranche - December , Other  FV 11,$. 11,//.( ,/ /,/,/,. 1,1(,(/.$ Total equity investments classified as AFS ( 1,,1/$,1$ . 1,,,(./

.1 Other significant events

Reform of cooperative banks: Decree Law no.  of , January  converted into Law no.  of , March  Decree Law no.  ("Urgent measures for the banking system and investment") was published on , January  (Official Gazette ( - General Series), making significant changes to the regulations that govern cooperative banks. In particular, cooperative banks with assets in excess of Euro $ billion (on a consolidated basis for the parent banks of a banking group) must either reduce their assets below that threshold or hold an Extraordinary Shareholders' Meeting to transform into joint-stock companies (S.p.A.). Failing this, the Bank of Italy may: • forbid further transactions pursuant to art. /$ of Legislative Decree no. $ dated  September (( (Consolidated Banking Law - CBA) or adopt the measures envisaged in Title IV, Chapter I, Section I of the CBA; • recommend that the European Central Bank withdraw the banking licence and that the Ministry of the Economy and Finance put the bank concerned into enforced liquidation. Art.  of the Decree requires compliance with the above transformation regulations within $ months of the entry into force of the related enabling instructions issued by the Bank of Italy. Following completion of the parliamentary process of converting the Decree, Conversion Law no.  was published on , March  (Official Gazette / – Ordinary Supplement ). On ( June , the Bank of Italy issued the relevant enabling instructions ((th amendment of Bank of Italy Circular no. $%) that entered into force on / June , together with Legislative Decree no. / dated  May  that adopted Directive %1%EU. Accordingly, the $-month period for compliance by the cooperative banks concerned with the above transformation regulations commenced from that date. BPER formally commenced the process required by the above regulations in July . On ( July  the Board of Directors of the Bank checked the assets of the BPER Group with reference to the consolidated reports prepared for supervisory purposes at  December ,. The total of about Euro 1./ billion exceeded the established threshold of Euro $ billion.



Consolidated interim report on operations as at  September  Interim report on operations

As a consequence, the Board determined the need to prepare and formalise a plan of action, to be approved by the deadlines established in the supervisory instructions, for the transformation of the Bank into a joint-stock company, together with the related implementation timetable. At the following meeting held on , July , the Board of Directors approved amendments to the articles of association of the Bank, solely to ensure their alignment with the new regulations introduced by Decree no. %. Once the Bank of Italy had issued its assessment of proper and prudent management as per art. 1 of the CBA on $ September , the new text of the articles of association was filed with the Companies Register on  September . Further updates are provided at the end of this report in the section on "Significant subsequent events and outlook for operations".

First national agreement in support of innovative Italian firms On 1 July , the European Investment Fund (EIF) and the BPER Group signed the first agreement for the support of SMEs and other medium-sized Italian firms. In particular, the BPER Group will have funds totalling Euro  million available for disbursement over the next two years. The importance of this agreement lies in its intention to strengthen the financial support available for SMEs, which is a customer segment that BPER has always assisted. The Chairman of the EIF, Dario Scannapieco, considers that this first agreement turns the Juncker Plan into reality for SMEs, especially with regard to those innovative and start-up firms that ensure the competitiveness of the economic system.

JESSICA Sardinian Urban Development Fund In , the Autonomous Region of Sardinia (RAS) activated JESSICA (Joint European Support for Sustainable Investment in City Areas), an EU investment instrument. This instrument was devised in 1 as a joint initiative between the European Commission and the EIB, in collaboration with the Council of Europe Development Bank (CEB), in order to promote sustainable investment, growth and employment in city areas.

RAS and the EIB signed a loan agreement for the creation of a JESSICA Sardinia Investment Fund that would manage the resources available under Axes III and V of the ERDF Regional Operational Programme /-. In order to transfer resources from the EIB to the managers, two urban development funds (UDF) endowed with Euro . million each were established: the Energy Fund and the Urban Renewal Fund. The managers of these two UDF were chosen by means of a competitive selection process, with Banco di Sardegna s.p.a. being selected for lot  with the technical consultancy of Sinloc s.p.a.: Urban Renewal (Axis V). In July , the EIB and Banco di Sardegna s.p.a. signed an operational agreement at the Regional Planning Centre of the Sardinia Region for the granting of a loan amounting to Euro . million (subject to possible increases), to be accompanied by co-financing of about Euro (( million from Banco di Sardegna s.p.a. and other lenders identified by the latter, and invested on a rotating basis. In order to implement the JESSICA Project, Banco di Sardegna decided to create a separate fund within the UDF by making a loan for a specific purpose, pursuant to art. ,,/ decies of the Italian Civil Code. The JESSICA instrument allows investment in eligible projects within an integrated Plan that are presented, implemented and managed by public entities or, alternatively, presented by public entities and implemented and managed by private parties.

1

Consolidated interim report on operations as at  September  Interim report on operations

The resources may be made available in the following ways: • direct loans to authorities and public entities; • loans to private companies, selected by a public call for tenders, for the design, construction and management of publicly-owned facilities created under a direct concession or on a project- financing basis; • investment in the risk capital of selected private companies. As of  September , the Investment Committee of the UDF has approved the following loans: The following table shows simplified accounts for the JESSICA Urban Development Fund at  September .

(in Euro) Disbursements Investment JESSICA in the Contract Investment Loan Risk capital loan capital of date JESSICA Disbursed as at Paid as at .(. .(. Purchase of  modern trolleybuses /,, 1,$,, - $.. $,,$ - Construction and running of a natural gas distribution ,,,( /,, - .,., /,, - network Construction and running of a new cruise terminal at the Rinascita Pier in Cagliari ,, , - $.., , -

Two projects involving the construction and running of a natural gas distribution ,,$,,/( $,, ,,, 1.. - ,,, network based on two separate catchment areas

Construction of the roof of the municipal swimming ,/, ,$,1 - - - pool in Alghero (loc. Maria Pia)

Renovation and expansion of the Municipal Market of Oristano with adjacent ,,, ,,, - .1. ,,, - parking

Redevelopment of a building owned by the 1, ,/ - .1. ,/ - Municipality of Borutta destined to bar diner Construction of a residential and daytime comprehensive rehabilitation centre for the intellectually and ,, ,,,1( - .$. ,1,$ - relationally disabled in the Municipality of Selargius

Redevelopment of Alghero Town Hall 1, /, - - -

Total ,,1, /,1,(/ ,,, $,(/,$$ ,,,

/

Consolidated interim report on operations as at  September  Interim report on operations

The following table shows simplified accounts for the JESSICA Urban Development Fund at  September .

Balance Sheet

(in Euro) Assets .(. ..,

1. Due from banks (,$$,,, /,,1$1 . Other assets ,/$ $,,/ Total assets (,,1 /,,$,,

(in Euro) .(. .., Liabilities and shareholders' equity

. Due to banks (,,,$/ /,//,,11 . Other liabilities $,/,/ ,(( . Net profit (loss) for the period (,(,$) (//,) Total liabilities and shareholders' equity (,,1 /,,$,,

Income Statement

(in Euro) .(. .(., Captions

. Interest and similar income /,/ /,, . Net interest income /,/ /,, ,. Commission income ,,1$ ,,, . Commission expense ($,(,) (,(,/,$) 1. Net commission income (/(,) (,$,,,,) (. Net profit (loss) for the period (,(,$) (,,,,)

Shareholders' Meeting of the Parent Company

Allocation of the net profit for , of the Parent Company On $ April , the Shareholders' Meeting approved the allocation of the net profit of Euro ., million earned in , by BPER, with the declaration of a dividend of Euro (.1 million and the allocation of Euro  thousand to the provision for charitable donations. Accordingly, Euro ./ million was retained as part of the shareholders’ equity.

Group Management: new appointments The following Directors were appointed at the Shareholders' Meeting held on $ April  for the three-year period -/: Ettore Caselli, Alessandro Vandelli, Giosuè Boldrini, Giulio Cicognani (independent), Elisabetta Gualandri (independent) Valeriana Maria Masperi (independent) and Roberto Marotta (independent). The following were also appointed as Statutory Auditors for the three-year period -/: Carlo Baldi, Francesca Sandrolini, Vincenzo Tardini, Diana Rizzo and Antonio Mele (Chairman). As Alternate Statutory Auditors: Giorgia Butturi and Gianluca Spinelli.

$

Consolidated interim report on operations as at  September  Interim report on operations

The Board of Directors during the meeting of  April  appointed Ettore Caselli as Chairman, Giosuè Boldrini as Deputy Chairman, and Alessandro Vandelli as Chief Executive Officer. The Deputy Chairmen currently in office are therefore: Alberto Marri, Luigi Odorici and Giosuè Boldrini. In addition, the Executive Committee has been reconstituted and consists of: Alberto Marri, Giosuè Boldrini, Luigi Odorici, Alessandro Vandelli ( ex officio member), Pietro Ferrari and Deanna Rossi.

(

Consolidated interim report on operations as at  September  Interim report on operations

. Scope of consolidation of the BPER Group

. Composition of the BPER Group as at  September 

The BPER Group has been registered since / August (( with code no. $/.1 in the Register of Banking Groups referred to in art. 1, of Legislative Decree no. $ of  September ((.

The following is a list of the banks and companies included in the scope of consolidation at  September , distinguishing between banks and companies consolidated line-by-line and banks and companies, whether or not belonging to the Group, measured using the equity method.

The BPER Group has decided to align the consolidation methodology used for accounting purposes with that required for prudential reporting purposes. This is discussed further in Part A of the Explanatory notes.

Details are also provided of the percentage held by the Group 22 , with further specific information provided, where necessary, by means of footnotes. a) Group companies consolidated on a line-by-line basis: ) Banca popolare dell'Emilia Romagna s.c., based in Modena (Parent Company); ) Banca Popolare dell’Emilia Romagna (Europe) International s.a., based in the Grand Duchy of Luxembourg (F); ) Banco di Sardegna s.p.a., based in Cagliari, which is held as follows: F of ordinary shares, 1./,F of preference shares and ,1.F of savings shares (without voting rights, listed on the Italian Stock Exchange), representing .$F of total capital; ,) Banca di Sassari s.p.a., based in Sassari (($.$F)23 ; ) Cassa di Risparmio di Bra s.p.a., based in Bra (Cuneo) (1/F); 1) EMRO Finance Ireland limited, based in Dublin (Ireland), Irish investment company (F); /) Nadia s.p.a., based in Modena, property company (F); $) Modena Terminal s.r.l., based in Campogalliano (Modena), the activities of which are the storage of goods, the storage and ageing of cheeses and the cold storage of meat and perishable products (F); () BPER Services s.cons.p.a., based in Modena, IT services consortium (F) 24 ; ) Emilia Romagna Factor s.p.a, based in Bologna, a factoring company ((,.,F); ) Optima s.p.a. SIM, based in Modena, investment broker (F); ) Sardaleasing s.p.a., based in Sassari, leasing company (($.$F) 25 ; ) Numera s.p.a., based in Sassari, IT company and subsidiary of Banco di Sardegna s.p.a. which holds F of share capital;

22 unless otherwise specified, the percentage shown refers to the Parent Company. 23 held by: Banco di Sardegna s.p.a. (/(./F) and the Parent Company ($.$1F). 24 held by: the Parent Company ((.1$F), Banco di Sardegna s.p.a. (,./1F), Banca di Sassari s.p.a. (.,F), Optima s.p.a. SIM (.,F), Sardaleasing s.p.a. (.,F) and Cassa di Risparmio di Bra s.p.a. (.,F). 25 held by: the Parent Company (.,F) and Banco di Sardegna s.p.a. (,1.(F). ,

Consolidated interim report on operations as at  September  Interim report on operations

,) Tholos s.p.a., based in Sassari, property company and subsidiary of Banco di Sardegna s.p.a. which holds F of share capital; b) Other subsidiaries measured using the equity method 26 : ) Mutina s.r.l., based in Modena, used as a vehicle for the securitisation of receivables (F); ) Nettuno Gestione Crediti s.p.a., based in Bologna, provider of debt recovery services (F); ) Estense Covered Bond s.r.l. based in Conegliano (Treviso), a vehicle for the issue of Guaranteed Bank Bonds under art. / bis of Law %(( (1F); ,) BPER Trust Company s.p.a., based in Modena, with the role of trustee for trusts established by customers, as well as providing advice on trust matters (F); ) Estense CPT Covered Bond s.r.l., based in Conegliano (Treviso), a vehicle for the issue of Guaranteed Bank Bonds under art. / bis of Law %(( (1F).

Following the alignment of the consolidation methodologies described in Part A of the Explanatory notes, the above companies have been measured using the equity method at  September , rather than consolidated on a line-by-line basis, since art. ( of Regulation (EU) no. /% (CRR) requires the exclusion of financial and operating companies, including those belonging to the Banking group, if their total assets and off-balance sheet amounts fall below the lower of the following amounts: • Euro  million; • F of the total assets and off-balance sheet amounts of the parent company or the entity that holds the equity investment.

In addition to the above companies that belong to the Banking group, the following direct and indirect subsidiaries are including in this grouping at  September , even though they are not members of the Banking group since they do not contribute to its banking activities 27 : • Melior Valorizzazioni Immobili s.r.l. (F); • Italiana Valorizzazioni Immobiliari s.r.l. (F); • Adras s.p.a. (F); • Polo Campania s.r.l. (F); • Galilei Immobiliare s.r.l. wholly owned by Nadia s.p.a.; • Costruire Mulino s.r.l., a wholly-owned subsidiary of Italiana Valorizzazioni Immobiliari s.r.l. 28 ; • Sviluppo Formica s.r.l., a wholly-owned subsidiary of Italiana Valorizzazioni Immobiliari s.r.l. 29 ; • SIFA’- Società Italiana Flotte Aziendali s.p.a. (F), of which the Bank has de facto control by virtue of being able to exercise significant influence over the company's strategic financial and operating decisions.

26 Following alignment of the consolidation methodology with that used for prudential reporting purposes. 27 See previous note. 28 This company was formed on  April  and is still dormant at  September . 29 This company was formed on  April  and is still dormant at  September . ,

Consolidated interim report on operations as at  September  Interim report on operations

c) Companies measured using the equity method ) Cassa di Risparmio di Fossano s.p.a., based in Fossano (Cuneo) (.//F); ) Cassa di Risparmio di Saluzzo s.p.a., based in Saluzzo (Cuneo) (.(F); ) Cassa di Risparmio di Savigliano s.p.a., based in Savigliano (Cuneo) (.1F); ,) Banca della Nuova Terra s.p.a., based in Milan (.1(F); ) Alba Leasing s.p.a., based in Milan (.,($F); 1) CO.BA.PO. - Consorzio Banche Popolari s.con., based in Bologna (.$/F); /) Sofipo s.a., based in Lugano, held by Banca Popolare dell’Emilia Romagna (Europe) International s.a. which holds F of the share capital; $) CONFORM - Consulenza Formazione e Management s.c.a.r.l., based in Avellino (,(.,F) 30 ; () Sintesi  s.r.l., based in Milan (.F); ) CAT progetto Impresa Modena s.c.r.l., based in Modena (F); ) Resiban s.p.a., based in Modena (F); ) Unione Fiduciaria s.p.a., based in Milan (,F); ) Atriké s.p.a., based in Modena (,F); ,) Sarda Factoring s.p.a., based in Cagliari (.,$,F)31 ; ) Emil-Ro Service s.r.l., based in Bologna (F) 32 ; 1) Lanciano Fiera - Polo Fieristico d’Abruzzo - consortium based in Lanciano (F).

. Changes in the scope of consolidation

Companies consolidated on a line-by-line basis The scope of consolidation has changed since  December ,, given that from  June  all the companies listed in point b) of the previous paragraph are carried at equity rather than consolidated on a line-by-line basis 33 .

These comprise: • Costruire Mulino s.r.l. and Sviluppo Formica s.r.l., formed on  April , which are wholly owned by Italiana Valorizzazione Immobiliari s.r.l. Both companies are still dormant at the time of preparing this report; • SIFA’ – Società Italiana Flotte Aziendali s.p.a., in which the Parent Company took a F interest on  July . Having considered issues relating to governance and the terms of transfer of the shares, there is a situation of de facto control over the company; • Estense CPT Covered Bond s.r.l., in which the Parent Company subscribed for 1F of the capital on / September .

30 held by: the Parent Company (,1.,F) and Banco di Sardegna s.p.a. (.($F). 31 held by: Banco di Sardegna s.p.a. (.,F) and the Parent Company ($.$F). 32 held by: the Parent Company (1.11/F) and Emilia Romagna Factor s.p.a. ($.F). 33 See note 1 ,

Consolidated interim report on operations as at  September  Interim report on operations

The following changes in the interests also took place during the period: • Banca di Sassari s.p.a., already $.(F held by the Parent Company at  December ,, saw this interest raised to $.$1F following various purchases from shareholders; • Sardaleasing s.p.a., already .,,F held by the Parent Company at  December ,, saw this interest raised to .,F after purchasing shares from the Cagliari Chamber of Commerce; • the Parent Company sold .,F of its interest in BPER Services s.cons.p.a. to Cassa di Risparmio di Bra s.p.a. in order to bring it back into the shareholding structure of the Group consortium between banks and companies that make use of the IT services provided by BPER Services. At  September , the Parent Company's investment the in BPER Services stood at (.1$F.

Companies measured using the equity method Following the reduction of the consortium fund in Lanciano Fiera, BPER contributed proportionally to the recapitalisation and raised the interest held to F.

As mentioned, the companies listed in point b) of section . above have been measured using the equity method from  June .

,

Consolidated interim report on operations as at  September  Interim report on operations

,. Results of operations

,. Balance sheet aggregates

The more important consolidated accounting aggregates and captions as at  September  are presented below on a comparative basis with the figures at  December ,, in thousands of Euro, indicating the changes between periods in absolute and percentage terms.

Assets

(in thousands of Euro) Assets .(. .., Change F change

. Cash and cash equivalents 1,$ ,,/11 ($(,$) -(.$ . Financial assets held for trading $,,/ ,,$1 ($$,/() -$. . Financial assets designated at fair value through profit and loss , ,,( ($,(,1) -$. ,. Financial assets available for sale $,,1, 1,(,,,(/ ,,,1 .$ . Financial assets held to maturity ,,,,/ ,,,(/ , . 1. Due from banks ,$$,(1 ,/(,($ (,,) -,.( /. Loans to customers ,,,,(,/$ ,,((,1$ (,1(,$($) -./ $. Hedging derivatives ,1, 1,/,, (,//1 1.1 . Equity investments /,, /,11 (() -.$ . Property, plant and equipment (,$,( ,$,( ($,$1) -/.$1 . Intangible assets ,(,(( ,($,( (/,/) -., of which: goodwill $,( $,,1 () -. ,. Tax assets ,$,1 ,1, (,1() -.$/ a) current /, $,($( ($,//) -(./ b) deferred ,,/( ,/(, 1,,1 ,./ b) of which L. ,% ,,11$ ,$,1 , .( . Non-current assets and disposal groups held for sale ,$/ ,$/ - - 1. Other assets 11,( ,$,/ (,,,) -$./ Total assets 1,1$,,$( 1,1,( ,1( .

,,

Consolidated interim report on operations as at  September  Interim report on operations

Loans to customers

(in thousands of Euro) Captions .(. .., Change F change Current accounts 1,,,// 1,,,(/ (/,1() -./ Mortgage loans ,, ,,$(,$$/ ,$ .$1 Repurchase agreements 1,,$/ ,$( ($,) -,/. Leases and factoring ,/, ,,/1 (,,) -/. Debt securities 1,,, (,$/ (,,1) -/.// Other transactions $,,,1/ $,,(,$/, ,( ., Net loans to customers ,,,,(,/$ ,,((,1$ (,1(,$($) -./

Loans to customers, net of adjustments, amount to Euro ,,,,(.$ million (Euro ,,((./ million as at  December ,) and are down since the start of the year (-./F), but slightly up on the first half of . There have been reductions in current accounts by about Euro /./ million (-./F), repurchase agreements by about Euro $ million (-,/.F), leasing and factoring transactions by Euro ,. million (-/.F) and debt securities by Euro . million (-/.//F), while mortgage loans rose by Euro . million (Q.$1F) and other loan transactions increased by Euro .1 million, (Q.,F). This last category mainly comprises bullet loans totalling Euro ,(1(.1 million and advances against notes of Euro ,$. million.

The average interest rate for the period, based on bank lending rates to customers, was .F, a decrease of around , bps compared with the average rate for the first nine months of ,. The spread between lending and deposit rates of banking relationships with customers, now .1F, is slightly down compared with the same period last year (.F). The overall spread between the average annual rate of return on interest-bearing assets and the average annual cost of interest-bearing liabilities amounts to .F (.,F at  September ,).

,

Consolidated interim report on operations as at  September  Interim report on operations

The following review of doubtful loans makes reference to the new "unlikely to pay" category, rather than to watchlist and restructured loans (combined to determine T-), as required by the new supervisory regulations (in particular, Bank of Italy Circular no. / – /th amendment dated  January ) that took effect from  January .

(in thousands of Euro) Captions .(. .., Change F change

Gross non -performing exposures ,$,/, ,(($,,( $1,/ . Bad loans 1,$1(,/$ 1,,$/,,( $,$ .$( Unlikely to pay loans ,,1,,1/ ,,,/,( (1,$) -./ Past due loans ,(,(/ (,( ,,/ 1/./ Gross performing exposures /,1,1 /,1,( (,,,/) -.,, Total gross exposure ,$,,,$, ,$,1,(1$ (,/$) -. Adjustments to non -performing exposures ,,/(,,$/ ,,,/,11 , /. Bad loans ,(,, ,11$,,( , 1., Unlikely to pay loans $1,($ /$1,( //,1( (.$$ Past due loans /,$ 1,$$$ , 1.( Adjustments to performing exposures ,$1 ,/ (1,$1) -.1 Total adjustments ,,(($,,,/ ,,1$,$/ 1,1 1./ Net non -performing exposures 1,(,$/ 1,1,$/ 1,/, .($ Bad loans ,(11,,( ,$(,/1 ,/,/ . Unlikely to pay loans ,,,( ,,,( (,(,) -1.( Past due loans ,1$( (,/ ,$ 1/.$ Net performing exposures 1,$(,(1 /,(,$$ (,1) -., Total net exposure ,,,,(,/$ ,,((,1$ (,1(,$($) -./

The adjustments that relate to performing exposures total Euro .( million (Euro ./ million at  December ,; - .1F), giving a coverage ratio of .F (.1F at  December ,). Adjustments to non-performing exposures amount to Euro ,,/(,.1 million (Euro ,,,/.1 million at  December ,; Q/.F) with a coverage ratio of ,.F (,.11F at  December ,). The total coverage ratio is .F versus (.1F at  December ,. If we take into account the direct write-downs of bad loans involved in bankruptcy proceedings for Euro ,$. million (Euro ,$., million at  December ,), the coverage ratio increases to .1F (.F at  December ,). The total actual value of the claim for bad loans comes to Euro $,.( million (Euro /,$.( million at  December ,) and the effective coverage ratio comes to 1.1F (1.$(F at  December ,). Based on the same considerations, the effective coverage of non-performing exposures amounts to ,/.($F (,/.F at  December ,).

(in thousands of Euro) Loans to customers .(. .., F F F Gross Net Gross Net gross net coverage change change ratio

. Banca popolare dell'Emilia Romagna s.c. /,$/,$, ,($, /,1$,/( ,,/1,$/ -. -.($ (.1 . Bper (Europe) International s.a. 1,(1 1,( ,$$ ,$ /. /. . . Banca di Sassari s.p.a. ,(,$ ,1$,$ ,(,($ ,/,$1 . -. (.( ,. Banco di Sardegna s.p.a. /,$, 1,$/,( /,$,,/ 1,$(,// -.$ -.1 ./ . Cassa di Risparmio di Bra s.p.a. ,/,$( ,1,/, ,,,// ,,,,$, .$ ./$ (.1 Total banks ,/,/(,$ ,,(/,($ ,$,/,$ ,,/,,, -.$$ -.1/ .( 1. Sardaleasing s.p.a. ,(1,/,( ,$, ,,/, ,$/,( -. -., ./ /. Emil-Ro Factor s.p.a. 11,1( 1,(, /,$,, /,,, -., -. . Other companies and consolidation adjustments (,(/,,$) (,(/(,,/) (,$1,$() (,(,,) -. -., -.1 Total ,$,,,$, ,,,,(,/$ ,$,1,(1$ ,,((,1$ -. -./ .

,1

Consolidated interim report on operations as at  September  Interim report on operations

The non-performing exposures (bad loans, unlikely to pay loans and loans past due by more than ( days) indicated here relate solely to those exposures associated with the "Loans to customers" portfolio. Their net amount of Euro 1,(.1 million (Q.($F) is equal to ./F of total net loans to customers (,.$1F at  December ,), whereas, on a gross basis, it is equal to .F (.1F at  December ,). More specifically, net bad loans amount to Euro ,(11. million (Q.F), net unlikely to pay loans total Euro ,. million (-1.(F) and net past due amounts total Euro ./ million (Q1/.$F). The coverage ratio is satisfactory and suitable for the portfolio's level of risk: the coverage ratio of total non-performing exposures comes to ,.F versus ,.11F at the end of ,, an increase of , bps, and to ,.//F at  June , an increase of , bps. If we take into account the direct write-downs of bad loans involved in bankruptcy proceedings for Euro ,$. million (Euro ,$., million at  December ,), the effective coverage ratio comes to ,/.($F (,/.F at  December ,).

(in thousands of Euro) Non -performing exposures .(. .., F F F net gross coverage Gross Net Gross Net change change ratio

. Banca popolare dell'Emilia Romagna s.c. /,$$, ,,,1,(, /,1,/ ,,,,( ./ . ,./ . Bper (Europe) International s.a. 1 - 1 - - n.s. . . Banca di Sassari s.p.a. 1(,1 ,, 1,( ,$, .// ., ,,.1 ,. Banco di Sardegna s.p.a. ,1, ,,(/ ,1,$ ,,(,, .,/ ., ,.,/ . Cassa di Risparmio di Bra s.p.a. $,,/ /,( ,1 1,(( .1( ./ $., Total banks ,,$ ,(,/ ,,$(1 ,$$$,11 . ., ,.( 1. Sardaleasing s.p.a. /,,/ 1,1// 1$1,,( 1,(( $. $.1 $.(( /. Emil-Ro Factor s.p.a. ,1,( ,1 ,, ,,,/$ -.1 -1./ ,.( Other companies and consolidation adjustments 1, ,$,( ,1( ,/,, . . .( Total ,$,/, 1,(,$/ ,(($,,( 1,1,$/ . .($ ,. Direct write-downs of bad loans ,$, - ,$,,/ - -.1$ n.s. . Adjusted total ,11$, 1,(,$/ ,1,$/1 1,1,$/ .$ .($ ,/.($

Note that, unlike the rest of the Group, Cassa di Risparmio di Bra s.p.a. does not accrue interest on arrears for individual debt positions, proceeding in fact to their total direct write-down. If we take this figure at  September , which relates to outstanding positions of Euro ,( thousand, the restated level of coverage comes to ,.(F, compared with $.,F as shown in the table.

,/

Consolidated interim report on operations as at  September  Interim report on operations

The bad loans shown here relate solely to the exposures associated with the " Loans to customers " portfolio. Their net amount of Euro ,(11. million (Q.F) comes to 1.$F of total net loans to customers (1.,F at  December ,), whereas, on a gross basis, the ratio of bad loans to total "Loans to customers" comes to ,.$F (.F at  December ,). The coverage of bad loans is 1.$F, slightly up compared with 1.F in December ,. If we take account of the direct write-downs made to bad loans involved in bankruptcy procedures for Euro ,$. million (Euro ,$., million at  December ,), the total actual value of the claim for bad loans comes to Euro $,.( million (Euro /,$.( million at  December ,) and the effective coverage ratio is 1.1F (1.$(F at  December ,).

(in thousa nds of Euro) Bad loans .(. .., F F F Gross Net Gross Net gross net coverage change change ratio

. Banca popolare dell'Emilia Romagna s.c. ,,(1,$ ,$/,, ,,$/,//1 ,$,,$ ,./1 ., (. . Bper (Europe) International s.a. ------. Banca di Sassari s.p.a. /(, /, 1/,$/ /,( 1.$ 1.$$ $.1 ,. Banco di Sardegna s.p.a. ,/,1$ 1/,1 ,(,( $$,1/( . ,.$ 1.$ . Cassa di Risparmio di Bra s.p.a. $,$$, ,1,( ,1$( ,,$ ./ /.1 1.( Total banks 1,,,,,( ,11,,($ 1,1,,$ ,,/$ 1. .($ $.1 1. Sardaleasing s.p.a. ,(, (,$( ,(,/1( (1,1,/ -.$ -. $./ /. Emil-Ro Factor s.p.a. 1,( ,1 ,,($ $,1,( (. 1., ,.,/ Other companies and consolidation adjustments ,$ - ,$ - . n.s. . Total 1,$1(,/$ ,(11,,( 1,,$/,,( ,$(,/1 .$( . 1.$ Direct write-downs of bad loans ,$, - ,$,,/ - -.1$ n.s. . Adjusted total $,,( ,(11,,( /,$,( ,$(,/1 ,., . 1.1

With reference to Cassa di Risparmio di Bra s.p.a. and the comment on non-performing loans made in the previous point with reference to the accounting treatment of interest on arrears, note that at  September  outstanding positions were written down directly by Euro ,( thousand; the restated coverage ratio of bad loans comes to 1.(F

,$

Consolidated interim report on operations as at  September  Interim report on operations

"Unlikely to pay" loans shown here relate solely to the exposures associated with the " Loans to customers " portfolio. The net amount of Euro ,. million (-1.(F) represents /.1F of total net loans to customers ($.F at  December ,), whereas, on a gross basis, the ratio of "unlikely to pay" loans to total "Loans to customers" is $.1F ($.$F at  December ,). The coverage of "unlikely to pay" loans has increased since the end of , to ./,F, compared with $.$F at  December ,.

(in thousands of Euro) Unlikely to pay loans .(. .., F F F Gross Net Gross Net gross net coverage change change ratio

. Banca popolare dell'Emilia Romagna s.c. ,1/,($ ,11,($1 ,1,(/ ,,(,,,/ -.$ -. .$ . Bper (Europe) International s.a. 1 - 1 - - - . . Banca di Sassari s.p.a. /$,/ 1,, $,( 1(,/ -$., -$. /./( ,. Banco di Sardegna s.p.a. ,( ,,11 1,,$( ,,(( -(. -(.,1 /./ . Cassa di Risparmio di Bra s.p.a. ,,11 ,,$( ,,1 ,(, .( .$, $.$( Total banks ,$$,/, ,(/,,/ ,(1, ,, -.$/ -/. .$$ 1. Sardaleasing s.p.a. ((,// /1,/ 1,$($ ,1,,1 ,. ., /.$ /. Emil-Ro Factor s.p.a. ,/$/ ,1 ,/ ,1, -$/./, -(., . Other companies and consolidation adjustments ,, ,$,( ,$( ,/,, ./ . ./ Total ,,1,,1/ ,,,( ,,,/,( ,,,( -./ -1.( ./,

The past due loans shown here relate solely to the exposures associated with the " Loans to customers " portfolio. The net amount of Euro ./ million (Q1/.$F) represents ./,F of total net loans to customers (.,,F at  December ,), whereas, on a gross basis, the ratio of past due loans to total "Loans to customers" is ./F (.,F at  December ,). The coverage of past due loans is /./$F ($./F at  December ,).

(in thousands of Euro) Past due loans .(. .., F F F Gross Net Gross Net gross net coverage change change ratio

. Banca popolare dell'Emilia Romagna s.c. (,, ((,(, $,1( 1,, $. /./( (. . Bper (Europe) International s.a. ------. Banca di Sassari s.p.a. ,$, ,$( $,(, $,$, ., .,1 $. ,. Banco di Sardegna s.p.a. ,( , $,,(( 1,1/ (1. (1.1 /.$1 . Cassa di Risparmio di Bra s.p.a. ,,$ ,,/( ,, ,$ . /.1, .$ Total banks , /,1$$ (,, /,$/ $./ $.1 $./ 1. Sardaleasing s.p.a. ,(,1 ,1 ,1$ ,,1 ,$. . . /. Emil-Ro Factor s.p.a. ,(1 ,$, ,/ ,$( 1,.( 11./ .$/ Total ,(,(/ ,1$( (,( (,/ 1/./ 1/.$ /./$

,(

Consolidated interim report on operations as at  September  Interim report on operations

The table and graph below show the amount of loan disbursements to resident non-financial companies at  September , broken down by the debtors' industry sector according to the Bank of Italy's ATECO classification.

(in thousands of Euro) F Distribution of loans to resident non -financial businesses .(. .., F change

A. Agriculture, forestry and fishing ,1,( ,$, .$( ., B. Mining and quarrying 1,1$ 1,11 . 1. C. Manufacturing 1,$$1,/$ 1,(1,,$/ .$ -./ D. Provision of electricity, gas, steam and air-conditioning 1, 11, ., -/./ E. Provision of water, sewerage, waste management and rehabilitation /,$ ((,$( .1 -(.1( F. Construction ,,1(,1( ,,$1(,/( .1 -., G. Wholesaling and retailing, car and motorcycle repairs ,,$($,$ ,,(,,( ./ -.$ H. Transport and storage ($,/ ($, .( -.1 I. Hotel and restaurants ,/(,1$ ,1,,$$ .1, -.$ J. Information and communication ,, 1,$ ./ -1./ K. Finance and insurance ,/,(// //,$/$ . .( L. Real estate ,/1,// ,,1,(11 /., -.$ M. Professional, scientific and technical activities (,,/( (,,,/ . -. N. Rentals, travel agencies, business support services 1(,$, (, . -.,1 O. Public administration and defence, compulsory social security ,1/ /, ., -(./ P. Education ,1 /,1,1 .$ $.$ Q. Health and welfare ,,,1( ,,(,/ . -.$ R. Arts, sport and entertainment (,1, 1,( .,$ -./ S. Other services ,,/ 1,// . -,.($ T. Activities of households as employers for domestic staff, production of undifferentiated goods and services for own use by households  - - n.s. U. Extraterritorial organisations and bodies ,,(/ - . n.s. Total loans to resident non -financial businesses /,/$,(11 $,1,,,( 1.,/ -.1 Loans to non-resident non-financial businesses 1,(, $,$ .( (. Total loans to non -financial businesses /,/,,,$/ $,$(, 1.$1 -.( Individuals and other not included above ,$(,$ ,(,$ ,.( ./ Financial businesses ,,$ ,//,,,, ./1 -$.,$ Securities 1,,, (,$/ .$ -/.// Governments and other public entities ,,1 ,(1,(/ ,.1 . Insurance companies /,(/, ,$ . -.1( Total loans ,,,,(,/$ ,,((,1$ . -./

Considering total loans made, the sectors with the largest increases, in terms of absolute value, were agriculture, forestry and fishing, up by Euro /./ million (Q.,F), and finance and insurance, up by Euro 1. million (Q.(F), while the sectors with the largest reductions were property, down by Euro ., million (-.$F), and construction, down by Euro . million (-.,F).



Consolidated interim report on operations as at  September  Interim report on operations

Financial assets and equity investments

(in thousands of Euro) Captions .(. .., Change F change

Financial assets held for trading $,,/ ,,$1 ($$,/() -$. - of which derivatives ,$ ,,,1$ (,1) -.$ Financial assets designated at fair value through profit and loss , ,,( ($,(,1) -$. Financial assets available for sale $,,1, 1,(,,,(/ ,,,1 .$ Financial assets held to maturity ,,,,/ ,,,(/ , . Total financial assets ,$$,$/ ,,(( ,1,,$ ,.(

Financial assets amount to Euro ,$$., million, including Euro ,/., million of debt securities ((.1$F of the total): of these, Euro 1,(./ million relates to sovereign States and Central Banks (Q.F compared with  December ,) and Euro ,, million to Banks (Q(.1F). There has been a significant increase in “Financial assets available for sale”, up by Euro ,,.1 million (Q.$F), principally due to the purchase of government and banking debt securities, and in “Financial assets held to maturity”, up by Euro  million (Q.F), in order to support the level of net interest income and reduce its exposure to rate fluctuations, in a foreseeable scenario of very low risk-free rates for an extended period, while "Financial assets held for trading" have decreased by Euro $$. million (-$.F). For their characteristics, most of the securities in portfolio, being highly liquid, are eligible for use as collateral for refinancing transactions on the institutional market or with the European Central Bank. Equities come to Euro 1.( million (./F of the total), inclusive of Euro  million of stable equity investments classified in the AFS portfolio. The increase during the period (Q$.1F) includes, in particular, the valuation of the shares held in ICBPI (Q . million), aligned with the lower of the two prices established in the preliminary sale contract signed on ( June , and the shares held in Arca SGR (Q 1( million) adjusted to the value of the price of withdrawal defined by the Extraordinary Shareholders' Meeting of ARCA SGR of  July . The impairment testing of securities classified as "Financial assets available for sale", in accordance with the accounting policies adopted by the Group, resulted in write-downs of Euro 1. million (Euro ,. million at  September ,), of which Euro . million related to equity instruments (Euro $.( million for Release s.p.a.) and Euro ,., million to the UCITS portfolio.



Consolidated interim report on operations as at  September  Interim report on operations

"Financial assets held for trading" include financial derivatives of Euro .$ million (-.$F) made up of Euro .1 million (-,.$/F) of derivatives linked to debt securities classified in "Financial assets designated at fair value through profit and loss" and in "Financial liabilities designated at fair value through profit and loss" (fair value option) and forward transactions in foreign currencies (traded with customers and%or used in managing the foreign exchange position), interest rate and foreign exchange derivatives intermediated with customers, derivatives related to securitisations and other operational hedging derivatives. At  September  the Group has not entered into any of the "long-term structured repo transactions" mentioned in the document issued jointly by the Bank of Italy, CONSOB and IVASS on $ March . Against the "Financial assets available for sale" of Euro $,,1. million, there are positive net valuation reserves for a total of Euro .1 million, net of the related tax effect, as a result of the sum of positive reserves relating to debt securities, equities and UCITS of Euro /.$ million and negative reserves of Euro . million. The net reserve only for government bonds was a positive Euro $,. million (-,.F compared with  December ,). The portfolio of "Financial assets held to maturity" also includes unrealised gains of Euro $./ million (Euro $,. million at  December ,, -./F), or Euro .1 million net of the theoretical tax effect.

(in thousands of Euro) Financial assets .(. .., Change F change

. Banca popolare dell'Emilia Romagna s.c. ,1,$ $,$,, ,/,$ (.$$ . Bper (Europe) International s.a. 1,$1, ,/ 1,,( .$( . Banca di Sassari s.p.a. ( $(  . ,. Banco di Sardegna s.p.a. $/1,1 ,$,(/ (,(,/) -,.// . Cassa di Risparmio di Bra s.p.a. (,/ ,11 (,,$/) -$./ Total banks ,1,$ ,,/, ,$,/ ./$ Other companies and consolidation adjustments ,/, /$,$ (,,1,,) -1., Total ,$$,$/ ,,(( ,1,,$ ,.(

(in thousands of Euro) Captions .(. .., Change F change

Equity investments /,, /,11 (() -.$ of which subsidiaries (,, - (,, n.s. of which associates ,$,(/ /,11 ((,1) -.1

Following the alignment of the consolidation methodologies described in Part A of the Explanatory notes, this caption comprises significant investments (non-Group companies subject to considerable influence being, usually, investments in which the equity interest is greater than or equal to F), subsidiaries that are not members of the Banking group since they do not contribute to its banking activities, and Group companies not meeting the requirements of art. ( of Regulation no. /% that are measured using the equity method. The portion relating to goodwill comes to Euro ., million, the same as at  December ,.

Fixed assets

(in thousands of Euro) Captions .(. .., Change F change

Intangible assets ,(,(( ,($,( (/,/) -., of which goodwill $,( $,,1 () -.



Consolidated interim report on operations as at  September  Interim report on operations

Intangible assets include goodwill for a total of Euro $., million, as follows: (in thousands of Euro)

Goodwill .(. ..,

. Group companies $,( $,,1 . Banks (,/, (,/, - Banco di Sardegna s.p.a. $,1 $,1 - Banca di Sassari s.p.a. ,,(, ,,(, - Cassa di Risparmio di Bra s.p.a. ,,/, ,,/,

. Parent Company BPER $,1 $,1 - Purchase of UNICREDIT branches $,1 $,1 - Meliorbanca s.p.a. ,,1$ ,,1$ - Banca CRV - Cassa di Risparmio di Vignola s.p.a. ,/ ,/ - Banca Popolare di Lanciano e Sulmona s.p.a. ,1 ,1 - Banca Popolare di Aprilia s.p.a. , , - CARISPAQ - Cassa di Risparmio della Provincia dell'Aquila s.p.a. ,,// ,,// - Banca Popolare di Ravenna s.p.a. 1,$/1 1,$/1 - Banca Popolare del Mezzogiorno s.p.a. 1,, 1,, - Banca della Campania s.p.a. ,,1 ,,1

. Other companies $,, $,,,1 - Sardaleasing s.p.a. ,1/ ,1/ - Emilia Romagna Factor s.p.a. 1,/1$ 1,/1( - Estense Covered Bond s.r.l. (*) -  - Adras s.p.a. (*) - $

Total $,( $,,1

(*) at  September  these companies have been measured using the equity method.

The detailed figures relating to the Parent Company BPER represent a purely historical and accounting situation, in any case combined in the only identifiable CGU represented by BPER.

(in thousands of Euro) Captions .(. .., Change F change

Property, plant and equipment (,$,( ,$,( ($,$1) -/.$1 including owned land and properties $/,1// (,,( (/,$) -/.



Consolidated interim report on operations as at  September  Interim report on operations

Interbank and liquidity position

(in thousands of Euro) Net interbank position .(. .., Change F change

A. Due from banks ,$$,(1 ,/(,($ (,,) -,.( . Current accounts and deposits ,1,$$ ,,, (/,(1) -1. . Reverse repurchase agreements ,/1 ,/ (,(/) -$.$ . Debt securities 1, (,( (//,/() -.1 ,. Other $,, ,/,$1 $1,1 (., B. Due to banks ,/$,( 1,,/(,$ (/,,() -.1 Total (A -B) (,,,(,/,) (,,//,1) ,$1 -1.(,

The following table gives details of such operations with the ECB. The overall reduction in the outstanding principal since  December ,, Euro  million, reflects the following repayments and subscriptions: • Euro 1 million, repayment of the LTRO that matured in January ; • Euro , million, repayment of the LTRO that matured in February ; • Euro , million, subscription in August  of the LTRO due in November ; • Euro  million, subscription of the MRO weekly auctions due in October . In the first nine months of the year, Euro , million were also subscribed for the LTRO in May  and then redeemed on maturity the next August

(in millions of Euro) Refinancing transactions with the European Central Bank Capital Maturity

. Main Refinancing Operation (MRO)  Oct- . Long-Term Refinancing Operation (LTRO) , Nov- . Targeted Long Term Refinancing Operation (T-LTRO) , Sept-$ Total ,

At  September , the Central Treasury held significant resources relating to securities eligible for refinancing at the European Central Bank, of an overall amount, net of margin calls, of Euro ,,, million (Euro ,$ million at  December ,). The available portion amounts to Euro ,,11 million (Euro ,,1 million at  December ,).

(in millions of Euro) Counterbalancing capacity Nominal Guarantee Restricted Available value value portion portion Eligible securities and loans ,,, 1,/1, ,,11  Securities as collateral for own and third -party commitments $ $  Securities subject to funding repurchase agreements , ,  Securities and loans not transferred to the Pooling Account ,( - ,( , Securities and loans transferred to the Pooling Account ,,$( , ,/, of which: Own debt guaranteed by the Italian Government - - Own securitisations ,$ , Guaranteed Bank Bonds issued by the Bank - - Collaterized Bank Assets (A.BA.CO.) ,/, (

,

Consolidated interim report on operations as at  September  Interim report on operations

Liabilities and shareholders’ equity

(in thousands of Euro) Liabilities and shareholders' equity .(. .., Change F change

. Due to banks ,/$,( 1,,/(,$ (/,,() -.1 . Due to customers ,,/, ,(1,,( ,,$,1 . . Debt securities in issue ,($,($ ,$,1 (,1 ./ ,. Financial liabilities held for trading 1,1$( ,, (,,/( $. . Financial liabilities designated at fair value through profit and loss $(,/ ,/,1, ($(,$(,) -,/.1 1. Hedging derivatives ,$,1 ,($1 $,$1 1$. $. Tax liabilities /,, $,/(, $,11 .1$ a) current 1,( ,1 ,1( . b) deferred ,,1/ , 1,(1 1. .Other liabilities ,,(/ ,/,, ,$,1 .11 . Provision for termination indemnities ,$( ,(( (,1) -(./ . Provisions for risks and charges ,1,1 ,// ,, ,./ a) pensions and similar commitments ,1, ,,/$ ((,,) -.( b) other provisions $,1 ,1(/ 1(,$1, .1 ,. Valuation reserves ,( $1,$, 11,( $$.( /. Reserves ,$(,/$ ,,/1 (,(//) -. $. Share premium reserve (,/ (,// (,) - (. Share capital ,,,,( ,,,,( - - . Treasury shares (/,1) (/,()  -., . Minority interests 1,,11 1(,(( (,) -., . Profit (Loss) for the period $,$1 ,,/(/ 1/,/$( ,$. Total liabilities and shareholders' equity 1,1$,,$( 1,1,( ,1( .



Consolidated interim report on operations as at  September  Interim report on operations

Deposits

(in thousands of Euro) Captions .(. .., Change F change

Current accounts and demand deposits /,11,$ /,,$/,, /1,, .1, Restricted deposits ,1, ,(1$,$/ (/,/1,) -,. Repurchase agreements ,(,$1 ,1,/1/ $,(,( /(.$( Other short-term loans ,,,$/ ,,,,,/ ($,, ,. Bonds $,$(,( $,(,1$ ((,/1() -.1 - subscribed by institutional customers ,//,$ ,,$,,/ ,(,1 .$( - subscribed by ordinary customers ,,, /,/,1 (,1$,(,) -.$ Certificates of deposit ,1(, ,$((,(, ($(,($() -/.,, Direct customer deposits ,1,/,, ,1,$, ($,() -. Indirect deposits (off-balance sheet figure) (,,(( $,(/,$ ,,, .1 - of which managed ,,/,$(/ ,,, ,1(,$$ $. - of which administered ,,/, ,(,$ (,1,/1$) -. Customer funds under management /,(, /,,$,( ,,, .1 Bank borrowing ,/$,( 1,,/(,$ (/,,() -.1 Funds under administration or management $,,( $,$1,$ 1,/$ .

Direct borrowing from customers, Euro ,1,/,. million, is essentially unchanged (-.F) compared with  December ,; restricted deposits have fallen by Euro /.$ million (-,.F), bonds are down by Euro (.$ million (-.1F) and certificates of deposit by Euro ( million (-/.,,F), while repurchase agreements are up by Euro $,(. million (Q/(.$(F) and current accounts by Euro /1. million (Q.1,F). Indirect customer deposits, marked to market, come to Euro (,.( million, up on  December , (Q.1F). The total nominal value of indirect deposits of Euro ,,,., million has increased by .(1F since  December ,. Total funds administered or managed by the Group, including deposits from banks (Euro ,/$. million) amount to Euro $,. million, a slight increase of .F compared with  December ,.

The average cost of funding from customers incurred by Group banks during the period was .$F, which is down by about $ basis points with respect to the first nine months of last year (.F). Against total interest-bearing liabilities, the cost incurred came to ./1F, a decrease of , bps compared with the same period last year.

(in thousands of Euro) Direct deposits .(. .., Change F change

. Banca popolare dell'Emilia Romagna s.c. ,1,1( ,,,/,// (/,,11$) -./ . Bper (Europe) International s.a. 1,, /$, /1,1 ., . Banca di Sassari s.p.a. ,,,,/ ,,/,1$ ,$ .,( ,. Banco di Sardegna s.p.a. (,(, (,(,1 1/,(( /.1 . Cassa di Risparmio di Bra s.p.a. ,,,,/ ,//,1 (1,,) -.$1 Total banks ,1,1,,1 ,1,1,$ (1,) -.1 Other companies and consolidation adjustments (,,$$) (,1/,1$$) /, -./ Total ,1,/,, ,1,$, ($,() -.

1

Consolidated interim report on operations as at  September  Interim report on operations

Direct deposits include subordinated liabilities:

(in thousands of Euro) Captions .(. .., Change F change

Non-convertible subordinated liabilities (,1(, ,(,/(, ((,) -. Total subordinated liabilities (,1(, ,(,/(, ((,) -.

The reduction reflects the payment of instalments on loans issued by the Parent Company that fell due on  December , and were settled by ICBPI on  January , as well as partial redemption (nominal value of Euro , million) of the BPER ,./F -/ loan. There are no convertible subordinated liabilities at  September 

(in thousands of Euro) Indirect deposits .(. .., Change F change

. Banca popolare dell'Emilia Romagna s.c. 1,,111 ,(,$/, ,/,/( ,.1 . Bper (Europe) International s.a. ,/,1 ,(1 (,,) -/.$ . Banca di Sassari s.p.a. 1,,$/( /,/( /,$, .($ ,. Banco di Sardegna s.p.a. ,(,,$ ,(,, ,/ .1 . Cassa di Risparmio di Bra s.p.a. ,$,$ ,$$,,/ (/,1) -,./ Total banks ,(,11 (,1, ,, ., Other companies and consolidation adjustments (,$$,1$/) (,$,1$$) , -. Total (,,(( $,(/,$ ,,, .1

Indirect deposits do not include the placement of insurance policies, which has increased by ,.F since  December ,, mainly due to the life insurance business.

(in thousands of Euro) Bancassurance .(. .., Change F change

Insurance policy portfolio ,/$,$ ,,$,$ /, ,. - of which life sector ,/, ,(/,, /,1/ ,.1 - of which non-life sector /$,/( //,$ 11 ./

Life insurance premiums plus the indirect deposits under management total Euro /,//1. million, which represents .((F of the overall total (Euro ,(. million).

/

Consolidated interim report on operations as at  September  Interim report on operations

Shareholders' equity

(in thousands of Euro) Captions .(. .., Change F change

Consolidated shareholders' equity ,(,,1 ,,$/,, ,(1 ,.1 - of which net profit (loss) for the period $,$1 ,,/(/ 1/,/$( ,$. - of which shareholders' equity excluding net profit (loss) for the period ,(,,1 ,,$,, ,,/ ./

(in thousands of Euro) Captions .(. .., Change F change

Minority interests 1,,11 1(,(( (,) -., - of which net profit (loss) pertaining to minority interests 1,$ ,,($, ($,$1) -$.( - of which shareholders' equity pertaining to minority interests excluding their share of net profit (loss) for the period 1$,,($ 1,/ (1,() -.,

(in thousands of Euro) Shareholders' equity .(. .., Change F change

. Banca popolare dell'Emilia Romagna s.c. ,,$,/ ,,1,( $,/ .( . Bper (Europe) International s.a. ,1/ ,1 ,/ . . Banca di Sassari s.p.a. ,,, $,/ ,,, ., ,. Banco di Sardegna s.p.a. ,,/ ,,,, /,1 .1 . Cassa di Risparmio di Bra s.p.a. 1,(1 /1,11$ (,/,) -/.( Total banks 1,$,, 1,$,/(( /(,,, .( Other companies and consolidation adjustments (1/,,) (1,,1) (,,11) 1., Total ,1,,1 ,,(,, $,/$ . Net profit (loss) for the period $,$1 ,,/(/ 1/,/$( ,$. Total shareholders' equity ,/1,/ ,, 1,/ ./

This figure is made up of liability captions ,, /, $, (, ,  and .

,. Own Funds and capital ratios

The new harmonised rules for banks and investment companies contained in Regulation (EU) no. /% (CRR) and in the %1%UE Directive (CRD IV), approved on 1 June  and published in the Official Journal of the European Union the next day, entered into force on  January ,. This regulatory framework, which is the only set of rules that seeks to harmonise prudential regulations of the Member States of the European Community, was made applicable in Italy by the Bank of Italy's Circular no. $, published on / December  and subsequent updates. As already explained, from  June  the accounting scope of consolidation is aligned with that required for prudential reporting purposes: companies excluded are treated in the same way as the banks and companies subject to significant influence and measured using the equity method. The capital ratios at  September  have been determined using the standardised approach, which excludes the potential benefits of adopting advanced internal models for the measurement of credit risk (AIRB - Advanced Internal Ratings-Based approach). These models are at the pre-validation stage, which

$

Consolidated interim report on operations as at  September  Interim report on operations

officially began at the end of January . In this connection, a formal validation request was sent to the Supervisory Authorities in August .

The value of capital has also been calculated on a pro-forma basis taking into account the profit for the third quarter allocable to equity (Euro  million, corresponding to about  bp), having already included for regulatory purposes (as authorised by the ECB on  August ) the portion of net profit realised in the first half of the year (Euro , million corresponding to approximately  bps) that could be allocated to equity. The pro-forma calculation takes into account the sale of a (.,F stake in Istituto Centrale delle Banche Popolari Italiane (ICBPI): completion of this transaction, the preliminary contract for which was signed on ( June , is subject to authorisation from the competent Authorities, which is expected by the end of the year. The impact is currently put at around , bps.

The following table shows the BPER Group's capital ratios and the minimum capital adequacy requirements for regulatory purposes as at  September , calculated under the transitional ("Phased in") arrangements for .

(in thousands of Euro) .(. .(. .., Change F regulatory pro -forma change Common Equity Tier  capital - CET ,,//,(1 ,,$, ,,$,1 ,$,$1, ., Additional Tier  capital - AT $, ,,1 ,$1 , $. Tier  capital - Tier  ,,/1,$ ,,$/,$1 ,,(,$/ /(,(( 1.$ Tier  capital - Tier  - T 1,,( ,$ $(,(( ,( .11 Total Own Funds ,$,,( ,(,1$ ,,($,/( ,,,$( $., Total Risk -weighted assets (RWA) ,,1,,, ,,$,1 ,,1(, ($,$() -., CET Ratio (CET%RWA) .1F .,F .1F /$ bps Tier  Ratio (Tier %RWA) ./F .F .(F $1 bps Total Capital Ratio (Total Own Funds%RWA) .F .,,F .,F  bps RWA%Total assets 11.(F 11.F 1/.(F -(/ bps

The capital ratios at  September  are therefore: • Phased in Common Equity Tier  ratio of .1F (.F at  June  and .1F at  December ,). This figure calculated on a pro-forma basis comes to .,F, while on a fully phased basis is estimated at ./$F; • Phased in Tier  ratio of ./F (.F at  June  and .(F at  December ,); • Total Capital ratio (Phased in) of .F (.$(F at  June  and .,F at  December ,).

The capital ratios are all much higher than the minimum levels required by current regulations, having regard for the specific requirement for additional own funds imposed by the ECB for : (F for the CET ratio and F for the Total Capital Ratio.

(

Consolidated interim report on operations as at  September  Interim report on operations

Note that the BPER Group uses different methods for calculating risk-weighted assets, which are summarised below: • credit risk: for all Group entities, credit risk is assessed using the standardized approach to determine the related individual and consolidated capital requirement; • credit down-rating risk: the standardized approach (TSA) is used; • market risk: the standardized approach is used for assessing market risk (general and specific risk on equities, general risk on debt securities and positioning risk for units in investment funds) to determine the related individual and consolidated capital requirement; • operational risk: operational risk measurement uses TSA.

Own Funds regulations (transitional provisions): Prudential filters for AFS reserves relating to debt securities issued by the central administrations of EU countries With the publication of Circular no. $ of / December  and subsequent amendments, the Bank of Italy implemented the new harmonised framework for banks and investment firms contained in the European Community's Regulation no. / (CRR) and Capital Requirements Directive no. 1 (CRD IV) of 1 June , which entered into force on  January ,. Part  of the document, which deals with the implementation of the CRR, details the national discretions exercised in respect of the transitional provisions, including, in particular 34 , the fact that banks can opt not to include in any element of Own Funds, unrealised profits or losses, relating to exposures to the central administrations classified under "financial assets available for sale" of IAS ( endorsed by the EU (treatment applicable until the Commission adopts a regulation based on EC Regulation no. 11% which approves the IFRS that replaces IAS (). This measure is in line with what is granted to intermediaries until  December , pursuant to the Supervisory Authority's provisions of $ May  regarding prudential filters, and provides for the option to disregard gains and losses, as though the securities were valued at cost, as an alternative to allocation to Own Funds. On $ January ,, the Parent Company BPER agreed to exercise this option and immediately (before the  January , deadline) informed the Supervisory Authority of its decision, which is valid for the entire Banking group. Use of this option, continuing the choice made in the past, which was effective until  December , is applied uniformly by all banks and other companies of the Group subject to prudential supervision, and is extended to all securities issued by central administrations contained in the " Financial assets available for sale (AFS)" portfolio; this will be maintained over time until the rule becomes applicable in the above terms. Accordingly, commencing from the  March , reporting date, the reserves arising from the measurement of these securities were no longer included in the determination of Own Funds. At  September , the amount involved is Euro $,. million.

34 Bank of Italy's Circular no. $%, Section , chapter , 1

Consolidated interim report on operations as at  September  Interim report on operations

,. Reconciliation of consolidated net profit%shareholders’ equity

Consolidated net profit comprises the sum of the Group's interest in the net profits (losses) at  September  of the following Group banks and companies included in the scope of line-by-line consolidation.

(in thousands of Euro) Reconciliation of consolidated net profit .(.

Banca popolare dell'Emilia Romagna s.c. $$,$ Other Group companies: ,( Bper (Europe) International s.a. 1, Banco di Sardegna s.p.a. (consolidated value) ,1(/ Cassa di Risparmio di Bra s.p.a. // Nadia s.p.a. (/1) BPER Services s.cons.p.a.  EMRO Finance Ireland limited  Optima s.p.a. SIM , Modena Terminal s.r.l. 1 Emilia Romagna Factor s.p.a. ,,1 Sardaleasing s.p.a. 1$ Total Group share ,( Consolidation adjustments ((,,) Consolidated net profit (loss) for the period $,$1

1

Consolidated interim report on operations as at  September  Interim report on operations

As required by current regulations, the following statement is presented with regard to the position as at  September :

Reconciliation of the shareholders’ equity and results of the Parent Company with the related consolidated amounts

Increase (decrease) Net profit (loss) Shareholders' for the period equity AMOUNTS RELATING TO THE PARENT COMPANY $$,$ ,,$(,

DIFFERENCES between the shareholders' equity of companies consolidated on a line-by-line basis (net of minority interests) and the book value of the related equity investments held by their parent companies, as follows: /,/$ $/,/

- adjustments to goodwill related to consolidated companies - - elimination of intercompany profits and losses (1,,/)

- share of the results of fully consolidated companies, net of tax effect ,,,

DIVIDENDS collected from companies consolidated on a line-by-line basis or stated under the equity method (,,1) -

DIFFERENCE between book value and the interest in shareholders' equity (including results for the period) of companies carried at equity: (,) ,,(/

- share attributable to subsidiaries $ ,,1 - share attributable to associates (1(,) ,,1 NET PROFIT FOR THE PERIOD AND SHAREHOLDERS' EQUITY OF THE PARENT COMPANY AS AT .(. $,$1 ,(,,1 NET PROFIT FOR THE PERIOD AND SHAREHOLDERS' EQUITY OF MINORITY INTERESTS 1,$ 1,,11 TOTAL CONSOLIDATED NET PROFIT FOR THE PERIOD AND SHAREHOLDERS' EQUITY AS AT .(. $$,/,, ,/1,/ TOTAL CONSOLIDATED NET PROFIT FOR THE PERIOD AS AT .(., /,$1 TOTAL CONSOLIDATED SHAREHOLDERS' EQUITY AT .., ,,

1

Consolidated interim report on operations as at  September  Interim report on operations

,., Income statement aggregates

Consolidated income statement

 (in thousands of Euro)

Captions .(. .(., Change F change

. Interest and similar income ,,(,, ,,,,( (,1$) -,. . Interest and similar expense (,,$,) (,/1,,) ,1 -.$ . Net interest income (,, (/$,,(( (,(($) -. ,. Commission income 1,, ,11 ,/( ., . Commission expense (/,,,) ($,/) ,$$ -$./ 1. Net commission income /,1(/ ,,,( ,/ ,. /. Dividends and similar income ,,$( $,1 (,,/) -.(, $. Net trading income ,,(( ,,, 1 ,. (. Net hedging gains (losses) (/(() $ (,1,) -(.1( . Gains%losses on disposal or repurchase of: 1/,( 1,/ ($,($) -,1./ a) loans ,, ((,) ,/ -,. b) financial assets available for sale 1,11 ,1/ ((,($) -(. c) financial assets held to maturity $ - $ n.s. d) financial liabilities (() - (() n.s. . Net results on financial assets and liabilities designated at fair value / (,) ,//( -,.(1 . Net interest and other banking income ,$,1( ,1,,/ ($,($) -. . Net impairment adjustments to: (,,,$) ((,/1) ,/,/ -. a) loans (,,,$(/) ($,$$) ,( -1./ b) financial assets available for sale (1,,1) (,,) (,/) /(./ d) other financial assets (,,11) (1,) ,,1$/ -/1./ ,. Net profit from financial activities ,,,, ,,/ 1,,$ 1./ $. Administrative costs: (,,,/) ((1(,$/) (,,) ,.1$ a) payroll (1$,/() (//,() (,1/$) $.// b) other administrative costs ($1,,) ((,,$1) ,, -./ (. Net provision for risks and charges (,) (/,1/) (,,) $$./, . Net adjustments to property, plant and equipment ($,,) (,$,/) ,,/ -/.( . Net adjustments to intangible assets (,) ((,$) (,,1,) .$ . Other operating charges%income ,,/ (,1 $$ .1$ . Operating costs (($$,,,) ((/,1) (/,(,) /./ ,. Profit (Loss) from equity investments (,,() (,,() 1 -., /. Gains (Losses) on disposal of investments  1 () -. $. Profit (Loss) from current operations before tax ,1$ ,/1 (1,($) -,.1 (. Income taxes on current operations for the period (1,(,) (,(,) (,1 -,. . Profit (Loss) from current operations after tax $$,/,, /,$1 ,($ /. . Net profit ( Loss) for the period $$,/,, /,$1 ,($ /. . Net profit ( Loss) for the period pertaining to minority interests (1,$) (,,/) $,/ -$. ,. Profit (Loss) for the period pertaining to the Parent Company $,$1 1, ,,$ .1

1

Consolidated interim report on operations as at  September  Interim report on operations

Consolidated income statement by quarter as at  September  (in thousands of Euro)

Captions st nd rd st nd rd ,th quarter quarter quarter quarter quarter quarter quarter    , , , , . Interest and similar income ,, ,,, ,,$ ,(,,,$ ,$(,/$ ,/,1$ ,,/ . Interest and similar expense (1,(,) (/,$) (,$() (1,,/$) (1,,1) (,/$) (,,/) . Net interest income ,,( $,/ ,1 (,$ $,1( ,, , ,. Commission income $$, $(,/ $/,1,$ $,, $1, $,,( $1,,/ . Commission expense ($,$/) ($,/) ((,$,) (,/) (,$) (,,/) (,$) 1. Net commission income /(, $,1 //,$,, /,, /,,$ 1(, /1,/, /. Dividends and similar income ,( ,$ ,/ /, /,1/  ,$1 $. Net trading income ,, (1,() ( ,,( ,1,1 ,,,1 ,( (. Net hedging gains (losses)  () (1,)  (  ( . Gains%losses on disposal or repurchase of: $,,$ ,$$ ,$( 1/,/1 ,11 ,11 $,, a) loans ,$, 1 () / ( ((,/1) (,() b) financial assets available for sale ,( ,,$1 ,,$ 1/,, ,/$, ,( $,(( c) financial assets held to maturity (()  - - - - - d) financial liabilities (11) () (() , ($) (,) ($$) . Net results on financial assets and liabilities designated at fair value (,,$) 1, (,,) ($,($) /,(( (,) (,() . Net interest and other banking income (,1 $,11 ,1($ 1,,, 11,1/ (,,( $, . Net impairment adjustments to: (,(,(/) (/,/$1) (,1/) (,,/) ($,//) (1/,() (1/,1,) a) loans (,/,,) (,/) (/,1) (,$) (,,(/) (1,(1) (,1,1) b) financial assets available for sale (1,,/) (,) (/,1) (,11) (,$() (1$) (1,) d) other financial assets ,$/( (,,((/) (,$) (,,,) (1,) (,) , ,. Net profit from financial activities $(,1 1,$ 1,1 ,,, /,$($ ,,(( 1,$ $. Administrative costs: (,$1) (,$) ($,$/1) (,() (1,$) ((,1) (,/,$() a) payroll (((,) ((1,$$) (,/,) ((1,/(1) (,(() ($,1) ($,/$1) b) other administrative costs (,,,$,) (,) (1,) (1,/) (,/,) ((,1,) ($,) (. Net provision for risks and charges (,,(1) (,1$() (,,,) (1,1$) (,(/1) ($,1) (,) . Net adjustments to property, plant and equipment ((,(,,) ((,/) ((,() (,,) (,) (,() (,($) . Net adjustments to intangible assets (/,$1) (/,(1) ($,) (,() (1,1) (1,$) (/,,$) . Other operating charges%income ,1,/ ,, ,,/$ ,$,, ,, /,1 ,,/ . Operating costs ($,() (,/$) (,$,/) ((/,,$) (,$//) ((/,,1) (,,$/) ,. Profit (Loss) from equity investments (,$$1) /,/ (1,$,) ((/) (,/() ,/ 1$ /. Gains (Losses) on disposal of investments  ((/) ()    , $. Profit (Loss) from current operations before tax /$,( 1,1/ , ,(/( , ,/,1 (/,() (. Income taxes on current operations for the period (/,,) (/,1/) (,) (,/1) (,() (,,$) /,1 . Profit (Loss) from current operations after tax ,/ (,, /,/( ,( ,( ,1$ (,1,) . Net profit ( Loss) for the period ,/ (,, /,/( ,( ,( ,1$ (,1,) . Net profit (Loss) for the period pertaining to minority interests (1,,) (,/) ,11 (,(,/) (,/) ($,1/) (1() ,. Profit (L oss) for the period pertaining to the Parent Company ,,(/ $,, (, $,/ /,1$ , (,1,,)

1,

Consolidated interim report on operations as at  September  Interim report on operations

The following are the key figures from the consolidated income statement at  September , suitably compared with the figures of the same period last year. When they refer to the Parent Company in the detailed information, they take into account the mergers of the three subsidiaries Banca della Campania s.p.a., Banca Popolare del Mezzogiorno s.p.a. and Banca Popolare di Ravenna s.p.a. on , November ,, with effect for tax and accounting purposes from  January ,.

Net interest income comes to Euro (,. million and is down by .F (Euro (/$. million at  September ,), primarily because of changed market conditions and interest rates, where the decline in commercial volumes and the pressures on asset yields were not sufficiently offset by the significant decrease in the cost of funding. Comparison with the previous quarter shows a more moderate .F decrease in net interest income given the substantial stability of commercial loans and the overall spread (-, bps) compared with the previous quarter. Interest with a negative sign, mainly arising from repurchase agreements, is not included, but is recognised in net commission income. It would have a positive impact on net interest income of Euro ./ million (Euro . million at  September ,).

(in thousands of Euro) Net interest income .(. .(., Change F change

. Banca popolare dell'Emilia Romagna s.c. 1/,(1 /,1,$ (1,/) -.$ . Bper (Europe) International s.a. ,$$$ ,$ (/) -1.( . Banca di Sassari s.p.a. $,( (, (1) -.1 ,. Banco di Sardegna s.p.a. ,/,/, 11,$, ((,1() -., . Cassa di Risparmio di Bra s.p.a. $,, ,1/ (,//) -$.1 Total banks $$,($ (,(/ (,$,() -. Other companies and consolidation adjustments ,, ,/,( (,,$() -. Total (,, (/$,,(( (,(($) -.

The comparative figures of Banca popolare dell’Emilia Romagna s.c. include those of the Group banks absorbed on , November ,: Banca Popolare di Ravenna s.p.a. (Euro ,/,$ thousand), Banca della Campania s.p.a. (Euro $,1 thousand) and Banca Popolare del Mezzogiorno s.p.a. (Euro $,1,$ thousand), net of intercompany balances (Euro -/ thousand). The same adjustment was made to "Other companies and consolidation adjustments".

Net commissions, Euro /./ million, were ,.F higher than  September ,. Commissions on indirect deposits performed very well, with particular reference to managed assets and "bancassurance" (Q.F compared with  September ,), but there were falls in commissions from loans and guarantees (-.F) and from collections and payment instruments (-./F).

(in thousands of Euro) Net commission income .(. .(., Change F change

Trading in currency%financial instruments ,,/,1 ,,($ (/) -,./1 Indirect deposits and insurance policies ,,/ /,1 ,( . Credit cards, collections and payments ,$, ,,/ (,11) -./ Loans and guarantees ,, 1/,1/ (,,/) -. Other commissions 1,/ (,,, /,$ /.1( Total net commission income /,1(/ ,,,( ,/ ,.

1

Consolidated interim report on operations as at  September  Interim report on operations

The net result from trading activities (including dividends) was income of Euro (1. million, which was lower than at  September , (Euro ,$. million). This outcome mainly benefited from the sale of financial assets, especially government securities held in the AFS portfolio (Euro /,. million), and from net gains on financial assets (Euro .( million). Despite these disposals, the reserves on government bonds show gains of Euro $,. million (Euro (/.( million at  December ,). The gains on disposal of "Financial assets available for sale" include the price adjustment relating to the sale of Arca Assicurazioni s.p.a., which took place in  as part of the bancassurance agreement with Unipol Gruppo Finanziario s.p.a.; pursuant to the sale contract, at the end of the first significant period (five years) the related price adjustments (Euro , million) were notified by Arca Vita s.p.a. Application of the fair value option to liabilities shows a positive value of Euro ., million (it was negative by Euro 1.( million at  September ,).

(in thousands of Euro) Net trading income .(. .(., Change F (including dividends) change Dividends ,,$( $,1 (,,/) -.(, Gain on disposal of financial assets and loans /,,( (, (,,(/) -,., Gains on financial assets ,/( ,((, ((,$) -,,.1 Losses on financial assets (,1) (,,/) (1,($) 1. Fair value option ( (1,(() /, -. Other revenues (losses) 1,( ($) 1,/ -- Total (1,/ ,$,$ (,,/) -.1

Net interest and other banking income amount to Euro ,$., million, a decrease compared with the same period of , (-.F).

(in thousands of Euro) Net interest and other banking income .(. .(., Change F change

. Banca popolare dell'Emilia Romagna s.c. ,,( ,$(,(, (1,$,) -.( . Bper (Europe) International s.a. ,, ,,,( (,1) -.1 . Banca di Sassari s.p.a. /,(,$ /, ( ./ ,. Banco di Sardegna s.p.a. ,/ $,1 (,1) -.1 . Cassa di Risparmio di Bra s.p.a. ,1 (,((1 (/,$) -(.$ Total banks ,,,/ ,(,1 (/,,$$1) -,./ Other companies and consolidation adjustments ,,$(( ,( ($,) -.$ Total ,$,1( ,1,,/ ($,($) -.

The comparative figures of Banca popolare dell’Emilia Romagna s.c. include those of the Group banks absorbed on , November ,: Banca Popolare di Ravenna s.p.a. (Euro 1(,/ thousand), Banca della Campania s.p.a. (Euro /,, thousand) and Banca Popolare del Mezzogiorno s.p.a. (Euro ,$$ thousand), net of intercompany balances (Euro ,, thousand). The same adjustment was made to "Other companies and consolidation adjustments".

Net adjustments to loans and other financial assets amount to Euro ,,.$ million, a decrease on the first nine months of , (-.F).

11

Consolidated interim report on operations as at  September  Interim report on operations

Net adjustments to loans, Euro ,,.( million, were lower than in the comparative period (-1./F). This figure includes an adjustment of Euro /.$ million that refers to a subordinated bank security included in "Loans & Receivables" , already written down by Euro 1./ million at  June . The coverage of non-performing loans has improved further (,.F) compared with the end of , (Q, bps).

Net adjustments to "Financial assets available for sale" amounted to Euro 1. million (Euro ,. million at  September ,) following the identification of lasting impairment in accordance with the Group's accounting policies, comprising Euro . million recorded in the equities portfolio (in particular, Euro $.( million relating to the investment in Release s.p.a.), and net adjustments to the UCITS portfolio of Euro ,., million to reflect our extremely prudent approach to the measurement of financial assets.

(in thousands of Euro) Net impair ment adjustments to loans .(. .(., Change F change (caption  a) . Banca popolare dell'Emilia Romagna s.c. ,1/ ,,,(1 ($,($() -,./, . Bper (Europe) International s.a. - ( (() -. . Banca di Sassari s.p.a. ,(( ,( (1,1) -., ,. Banco di Sardegna s.p.a. ,,1 /$,1$ (,1) -,. . Cassa di Risparmio di Bra s.p.a. ,,/($ 1,$1$ (,/) -,,.( Total banks (/,/1 $,/,1 (1,($) -$.$ Other companies and consolidation adjustments /, ,, ,/( /. Total ,,,$(/ $,$$ (,() -1./

The comparative figures of Banca popolare dell’Emilia Romagna s.c. include those of the Group banks absorbed on , November ,: Banca Popolare di Ravenna s.p.a. (Euro ,,,$/ thousand), Banca della Campania s.p.a. (Euro /,($, thousand) and Banca Popolare del Mezzogiorno s.p.a. (Euro /,$ thousand).

The total cost of credit at  September  comes to ($ bps ( bps annualised); at  September , the cost of credit was  bps, while the effective cost at  December , was $ bps.

The net profit from financial activities of Euro ,. million is up by 1./F on  September ,.

Operating costs, net of other operating charges%income, amount to Euro ($$., million, /./F up compared with the first nine months of ,. This result was negatively affected by the Euro ,. million of extraordinary provisions for voluntary redundancies and the "Solidarity Fund", of which Euro . million recorded at  September  with reference to the estimate made following the agreement signed with the Trade Unions on , August , as envisaged by the -/ Business Plan.

Payroll costs, Euro 1$.1 million, were higher than in the comparative period (Q$.//F); net of the extraordinary provisions mentioned earlier, payroll costs at Euro /,. million are slightly down compared with  September , (-.1F). Other administrative costs amount to Euro $1. million, a decrease of ./F compared with the first nine months of ,; net of the recovery of taxation, classified among " Other income and expense" , Euro (., million (Euro (.( million at  September ,), other administrative expenses (Euro (./ million) were .1,F lower than at  September ,.

1/

Consolidated interim report on operations as at  September  Interim report on operations

Net provisions for risks and charges (Euro . million) are up by Euro ,.1 million, mainly for the recognition of the  contributions to the Single Resolution Fund, established by Directive (EU) (%, (BRRD) in force from  January  for an estimated Euro .1 million, and to the Deposit Guarantee Scheme required by Directive (EU) ,(%, in force from  July , to be paid by the BPER Group for an estimated Euro $. million.

There has been an increase of .$1F in net impairment losses on tangible and intangible assets (Euro .( million).

(in thousands of Euro) Operating costs .(. .(., Change F change

. Banca popolare dell'Emilia Romagna s.c. 1(1,/ 1,$ ,,$1 /. . Bper (Europe) International s.a. , ,1 (/ . . Banca di Sassari s.p.a. (, ,,( , (./ ,. Banco di Sardegna s.p.a. (/,, /,,,1 ,/$ . . Cassa di Risparmio di Bra s.p.a. ,,/// ,,1 (/1() -,.( Total banks (/,,/ $(1,$$ /,$ $. Other companies and consolidation adjustments /,(/ ,1 (,1) -.$1 Total ($$,,, (/,1 /,(, /./

The comparative figures of Banca popolare dell’Emilia Romagna s.c. include those of the Group banks absorbed on , November ,: Banca Popolare di Ravenna s.p.a. (Euro ,,1 thousand), Banca della Campania s.p.a. (Euro $,1 thousand) and Banca Popolare del Mezzogiorno s.p.a. (Euro /,, thousand), net of intercompany balances (Euro -/ thousand). The same adjustment was made to "Other companies and consolidation adjustments".

The caption "Profit (loss) from equity investments" has a negative balance of Euro . million. The main items that lead to this negative balance are: the Euro .$ million write-down of the investment in Banca della Nuova Terra s.p.a. as a consequence of the impairment test, the result of equity investments measured using the equity method, negative for Euro . million, the price adjustments on the sale of the investments in Arca Vita s.p.a., as part of the above bancassurance agreement, communicated by Unipol Gruppo Finanziario s.pa. for an amount of Euro ./ million.

The profit from current operations before tax amounts to Euro ./ million (Euro .$ million at  September ,). The only ordinary item, i.e. net of the extraordinary costs for personnel (Euro ,. million), amounts to Euro /(.( million (Q1./F).

Income taxes for the period amount to Euro 1.( million. The effective tax rate of (.$F is significantly lower than in the same period last year (,.,1F).

1$

Consolidated interim report on operations as at  September  Interim report on operations

Net profit, net of taxes, is Euro $$./ million (Euro /.$ million at  September ,). Net of the extraordinary item mentioned above and the related tax effect (Euro $ million), the overall result comes to Euro . million, an increase of 1,.(/F compared with  September ,. The profit pertaining to minority interests amounts to Euro 1. million (Euro ,./ million at  September ,).

The net profit attributable to the Parent Company, net of minority interests, is Euro $.1 million (Euro 1. million at  September ,).

(in thousands of Euro) Net profit .(. .(., Change F change

. Banca popolare dell'Emilia Romagna s.c. $$,$ ,,,,/1 ,,( ($./ . Bper (Europe) International s.a. 1, ,(, (,) -/(.1 . Banca di Sassari s.p.a. ,/, ,,$1$ $,1 /.$ ,. Banco di Sardegna s.p.a. /,,$ ,$( (1,/$) -/., . Cassa di Risparmio di Bra s.p.a. , (,$,) ,(, -,. Total banks ,/ /,11 ,$/, ,.$ Other companies and consolidation adjustments ((,() (,1) ((,$() $$.$( Total $,$1 1, ,,$ .1

The comparative figures of Banca popolare dell’Emilia Romagna s.c. include those of the Group banks absorbed on , November ,: Banca Popolare di Ravenna s.p.a. (Euro ,, thousand), Banca della Campania s.p.a. (Euro , thousand) and Banca Popolare del Mezzogiorno s.p.a. (Euro $,,,( thousand), net of intercompany balances (Euro ,( thousand). The same adjustment was made to "Other companies and consolidation adjustments".

,. BPER Group employees

Employees .(. .., Change

. Banca popolare dell'Emilia Romagna s.c. /,((1 $,/ () . Bper (Europe) International s.a. / / - . Banca di Sassari s.p.a. / , () ,. Banco di Sardegna s.p.a. ,( ,$ () . Cassa di Risparmio di Bra s.p.a. $ $$ () Total banks ,(, ,, (1) Other Companies ( ( - Total ,, ,( (1)

The number of employees indicated for each bank takes account of staff seconded to other Group companies. In particular, BPER’s employees at  September  include $1 persons seconded to the Group, of which $ are with BPER Services s.cons.p.a.; the equivalent numbers at  December , were $(, and $,, respectively.

1(

Consolidated interim report on operations as at  September  Interim report on operations

,.1 Geographical organisation of the BPER Group

Branches .(. .., Change

. Banca popolare dell'Emilia Romagna s.c. /(, $1 () . Banca di Sassari s.p.a.   - . Banco di Sardegna s.p.a. 1/ /, (/) ,. Cassa di Risparmio di Bra s.p.a. $ $ - Total commercial banks ,,, ,/ (() . Bper (Europe) International s.a.   - Total ,, ,/, (()

The Group's commercial banks are located throughout the country as can be seen from the following table.

/

Consolidated interim report on operations as at  September  Interim report on operations

Details BPER BSSS BSAR CRBRA .(. ..,

Emilia - Romagna    1

Bologna   1

Ferrara , , 

Forlì – Cesena   

Modena $ $ $

Parma /  $ $

Piacenza   

Ravenna   (

Reggio Emilia ( ( ,

Rimini / / /

Abruzzo (1 (1 ($

Chieti 1 1 1

L’Aquila , , ,

Pescara   

Teramo $ $ $

Basilicata   

Matera   

Potenza   

Calabria , , ,

Catanzaro   

Cosenza , , ,

Crotone ( ( (

Reggio Calabria 1 1 1

Vibo Valentia , , ,

Campania   ,

Avellino $ $ (

Benevento   

Caserta / / /

Naples , , ,

Salerno 1 1 (

Lazio $   1( /

Frosinone   

Latina ( ( 

Rieti   

Rome ,  (  1

Viterbo    

Liguria , , 

Genoa   

La Spezia   

Savona   

Lombardy ,  , ,1

Bergamo   

Brescia , , ,

Cremona   

Lecco   

Lodi   

Mantua   

Milan   / 

Monza Brianza   

Varese   

Marche ( ( (

Ancona   

Ascoli Piceno   

Fermo   

Macerata   

Pesaro-Urbino   

/

Consolidated interim report on operations as at  September  Interim report on operations

Details BPER BSSS BSAR CRBRA .(. ..,

Molise   

Campobasso / / /

Isernia   

Piedmont $ $ $

Alessandria   

Asti , , ,

Cuneo / / /

Turin , , ,

Apulia 1 1 /

Bari   

Barletta Andria Trani   

Foggia / / $

Taranto   

Sardinia , ,1 , ,

Cagliari  $, (( ((

Carbonia-Iglesias   , ,

Medio Campidano ,  1 1

Nuoro 1 ,  

Ogliastra    

Olbia-Tempio /  , ,

Oristano    

Sassari 1 1/ $ $

Sicily   

Agrigento , , ,

Catania   

Messina / / /

Palermo   

Siracusa   

Tuscany 1 ,  

Florence   

Livorno   

Lucca    

Massa Carrara   

Pisa   

Pistoia   

Prato   

Trentino -Alto Adige   

Trento   

Umbria   

Terni   

Veneto , , ,

Belluno   

Padua / / /

Rovigo 1 1 1

Treviso   

Venice   

Verona   

Vicenza   

Total .(. /(,  1/ $ ,,, ,/ Total .., $1  /, $ ,/ (()

/

Consolidated interim report on operations as at  September  Interim report on operations

. Other information

. Treasury shares

No quotas or shares in Group companies are held through trust companies or other third parties; furthermore, such parties were not used during the period to buy or sell shares or quotas in Group companies.

The carrying amount of the Group’s interest in the treasury shares held by consolidated companies, classified as a deduction from shareholders' equity caption , is Euro /,1 thousand, of which Euro /, thousand relates to BPER shares held by the Parent Company.

Shares of Banca popolare dell'Emilia Number Total Group Romagna s.c. of shares par value interest Total as at .(. , ,,$ ,11 ,/, /, ,$ Total as at .., , ,,$ ,11 ,/, /,/ ,

There are also , shares relating to Banca di Sassari s.p.a., held by it, for a total of about Euro  thousand, the same as at  December ,.

. Share price performance

The Italian FTSE MIB index has risen by .F since the start of the year, while the French CAC index increased by .F during the third quarter and the Spanish IBEX index decreased by /.F. The Frankfurt exchange is also down by .,F. London closed the period heavily down on the start of the year (-(.F). In the USA, the S&P index on Wall Street closed the third quarter down by (.F and the Dow Jones index declined by .F. In Japan, the Tokyo Stock Exchange has fallen by .F since the start of the year. In the first nine months of , the FTSE MIB index of the Italian Stock Exchange closed at ,( points, with a high on  July  at ,, points and a low on / January  at $, points. BPER performed well during the first nine months of , rising overall by 1.F. BPER's 35 official share price at  January  was Euro .$ and at  September  it was Euro /./, with a high of Euro $.1, (on  July ), a low of Euro ,./, (on  January ) and a straight average of Euro /.,,,. Average daily volumes increased significantly from the start of the year, settling at around  million shares, reflecting the share's rising level of liquidity and its visibility to investors.

35 Source: Bloomberg Professional - Official daily closing price of BPER stock.

/

Consolidated interim report on operations as at  September  Interim report on operations

. Ratings as at  September 

International Rating Agency Issue date Long -term Short -term Outlook

Standard & Poor's $ December , BB- B Stable Fitch Ratings ( May  BB B Stable

Standard & Poor’s On $ December ,, Standard & Poor's revised its long-term rating from "BB" to "BB-" as a result of Italy's sovereign rating being lowered on  December; in the meantime, BPER short-term rating was confirmed at "B". The outlook improved from "negative" to "stable", reflecting Standard & Poor's belief that BPER's current ratings already incorporate most of the risks that could affect the Bank's performance as a result of the weak economic conditions in Italy.

Fitch Ratings On ( May , as part of a review of Italian and international banks, Fitch revised the Long-Term rating of the Bank from "BBQ" to "BB". At the same time, Fitch confirmed the Short-Term rating as "B". The outlook was improved to stable from negative, with an indication that the outlook for the solvency of BPER on a stand-alone basis, without support from the Italian State if necessary, is currently stable. The Agency also confirmed the viability rating as "bb" and revised the support rating ("SR") of BPER to "" from "" and the support rating floor ("SRF") to "No Floor" from "BBQ".

/,

Consolidated interim report on operations as at  September  Interim report on operations

., Investigations and audits

CONSOB There are no changes with respect to the disclosures published in the , annual report, to which reference is made for further information.

Bank of Italy An inspection pursuant to arts. , and 1$ of Legislative Decree no. $%(( began at BPER on  February  and was completed during May . The purpose was to evaluate "Compliance with the rules on the transparency of transactions, fairness in dealings with customers and the combating of money laundering". BPER considers that this inspection was a routine visit by the Supervisory Authority, especially as similar inspections, in terms of topic and scope, have been carried out or are currently underway at other Italian banks. The inspection was completed on ( May  and on $ July , the Bank of Italy delegation presented its inspection report to the Board of Directors. The report identified areas of improvement, many of which were recognised at the time of the inspection. Corrective action has already commenced and, in general terms, will take priority over all the other work already planned. On  September  the Bank sent its response to the Supervisory Authority.

European Central Bank – ECB The ECB commenced an inspection of BPER on 1 June , focusing on governance, remuneration and internal controls. The inspection was completed on  September  and to date the conclusions have not yet been notified.

Inspection of BPER by the Tax Authorities In July, the Emilia-Romagna Regional Tax Authorities - Audit and Collection Sector commenced a general tax inspection of Banca popolare dell’Emilia Romagna s.c., principally focused on the  tax year. This inspection, which is still in progress, will be carried out pursuant to the criteria specified in art.  of Presidential Decree no. 1%/ and art.  of Presidential Decree no. 1%/.

/

Consolidated interim report on operations as at  September  Interim report on operations

. Main litigation and legal proceedings pending

Tax disputes

At  September , the overall risks relating to tax disputes are covered by appropriate "Provisions for risks and charges" totalling Euro 1,/ thousand. a) Cassa di Risparmio dell’Aquila and Banca popolare di Lanciano e Sulmona: subsidised loans relating to the "Abruzzo earthquake" for the -- tax years As a result of the tax inspection conducted by the tax police in  at the former Cassa di Risparmio dell’Aquila, the Regional Tax Office of Abruzzo notified the Bank, on 1 August , in its dual role as Consolidating and Merging Company of the said subsidiary and of Banca popolare di Lanciano e Sulmona spa, six tax assessments relating to the three-year period from  to , involving the reclassification for tax purposes of subsidised loans for the reconstruction and purchase of buildings used as principal place of residence damaged by the earthquake of 1 April (, provided by Decree Law no. (%(, converted into law with modification of art. , paragraph  of Law no. //%( (so-called "earthquake loans"). The proceedings are challenging the deduction of negative components of income relating to the general write-down made pursuant to art. 1 paragraph  of the Consolidated Income Tax Law on receivables arising from the above types of financing which, according to the Tax Office, cannot be classified as loans to customers. The total amount claimed by the Tax Authorities comes to Euro ,,/1 thousand, of which Euro ,1,,(1 for the additional tax due and the balance for fines and interest, applied to the extent of the statutory minimum (F of the additional tax due). In this regard, it should be noted that the Bank and, before that, the Merged Companies operated in accordance with accounting and tax rules and with the operational notes published at the time by the Bank of Italy. Convinced that the tax demand is unjustified, in the light of the favourable opinion issued to the Bank by the ABI and in consideration of the assessments made by the external legal consultant, the Bank will appeal before the competent Tax Commission, and has decided not to make any provision. b) Banco di Sardegna - litigation concerning Istituto per il Credito Sportivo Istituto per il Credito Sportivo, public credit institute held by Banco di Sardegna s.p.a. (hereinafter "the Bank"), was put into receivership on $ December . Following the initiative taken by the Special Commissioners, aimed at obtaining the redetermination of the legal nature of a provision made by the Government (provision as per Law no. %$) and the review of the resolutions of distribution to the private shareholders of profits for the years from  to , an interministerial decree was issued on , April , which cancelled the institute's  Articles of Association. Subsequently, the Commissioners, with resolution ,, of  September , cancelled the resolutions approving the distribution of profits for the years from  to , making a judicial request for the amounts to be returned to the individual shareholders. The proceedings initiated against the Bank are before the Civil Court of Cagliari, although still pending as a result of numerous and complex judicial actions carried out in turn by private shareholders, including the Bank, mainly aimed at challenging the interministerial decree of , April  and the Commissioners' resolution ,, of  September . Other proceedings brought by another bank against the Istituto per il Credito Sportivo are also pending before the Civil Court of Rome, with a joinder of the other private shareholders, to appeal for the above resolution of Commissioners involving the cancellation of the resolutions approving the distribution of profits. Ministerial decree of , January , published in the Official Gazette on ( April , approved the new articles of association of Istituto per il Credito Sportivo, according to which Banco di Sardegna's

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Consolidated interim report on operations as at  September  Interim report on operations

interest in the Capital of Istituto per il Credito Sportivo had been reduced from ./F to .,1$F. Banco di Sardegna, together with the other participating banks, promptly challenged this last measure. It should be noted that with ruling ,/( of ( June , filed on  September , the Council of State dismissed the appeals brought by the private shareholders of Istituto per il Credito Sportivo against the unfavourable rulings issued by the Administrative Tribunal of Lazio relating to the cancellation of the interministerial decree of , April  and the Commissioners' resolution ,, of  September  cancelling the resolutions approving the distribution of profits for the years from  to . However, as regards the specific issue of cancellation of the resolutions approving the distribution of profits by the Commissioners, the Council of State confirmed the lack of jurisdiction of the administrative courts in favour of the ordinary courts. The Bank, together with the other private shareholders, is considering taking further legal action. However, even if the judgement of the Council of State has not directly affected the civil lawsuits still pending before the ordinary courts, it was considered appropriate to make a prudent provision to cover the risk.

The situation regarding the disputes mentioned in previous quarterly and annual reports is updated below. c) EMRO Finance Ireland ltd -( On  March , following an inspection of the -( tax years and the notification of inspection minutes dated ( July , the Modena Tax Authorities issued a notice of assessment to the Irish subsidiary covering the  and 1 tax years. This assessment alleged the fictitious relocation abroad of the company's activities and the consequent omitted declaration of IRES taxation of Euro . million. Having considered the authoritative opinion of its advisors, management determined that the demands of the tax authorities were entirely unfounded and, strengthened by the propriety of its conduct, appealed to the Modena provincial tax commission. After suspending enforcement of the assessment, the commission accepted the appeal in its entirety and, in a ruling filed on / November ,, overturned all aspects of the assessment. This ruling has been challenged before the regional tax commission. On $ December , the Modena Tax Office filed an enforceable notice of assessment relating to tax year /, in which they contest the company's foreign status, involving total taxes of Euro . million, plus interest and penalties. The Irish company also filed an appeal against this notice of assessment. As in the case of the earlier tax years, management does not believe that this matter is likely to have adverse consequences. d) Em.Ro. popolare s.p.a. $-( Following a tax audit on $ and (, on  December , the Provincial Directorate of the Modena Tax Office sent BPER, in its dual role as the merging company of Em.Ro. popolare s.p.a. and the consolidating company pursuant to art. / et seq. of the Consolidated Income Tax Law, a notice of assessment pursuant to art. , bis of D.P.R. no. 1%/ and related sanctions in relation to IRES for $, disputing the tax relevance of changes in exchange rates on financial assets denominated in foreign currency, considered fiscally relevant by the former subsidiary pursuant to art.  paragraph  of the Consolidated Income Tax Law and assessing a higher taxable income of Euro ,(. thousand. The tax claim amounts to Euro $ thousand, by way of tax plus penalties and interest.

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Consolidated interim report on operations as at  September  Interim report on operations

Considering the reasoning of the Tax Authorities to be unfounded, the Bank defended itself by filing an appeal before the Modena provincial tax commission, which was accepted in part; an appeal has been filed against this judgement. At the reporting date, the related provision amounts to Euro ,,/ thousand. e) Banca della Campania s.p.a. (- On  December ,, as a result of the tax audit on direct taxes carried out on what was then Banca di Campania s.p.a. on the tax years ( and , the Regional Directorate of the Revenue Agency for the Campania Region sent tax assessments to recover higher taxes for a total of Euro 1 thousand, plus interest and penalties, to BPER in its dual capacity as the Merging Company of Banca della Campania s.p.a. and Consolidating Company under art. / et seq. of the Income Tax Code. The dispute related to the deduction of negative items of income in alleged breach of the accruals principle. The assessment with acceptance procedure activated by the Bank pursuant to Legislative Decree no. $%(/ was completed in May , with settlement of the taxes and payment of interest and penalties reduced to one third. The total amount paid was Euro 1/ thousand, against which the related provision was released. f) Nadia spa -  On 1 November ,, the Modena Provincial Tax Authority notified the company of formal irregularities pursuant to art. 1-ter of Decree no. 1%/, regarding the disallowance of the tax credit deducted from the  Tax Declaration. This credit arose in relation to the civil and fiscal revaluation of certain land owned by the company, which was recorded in the  financial statement pursuant and consequent to the Finance Law no. 11%. Despite the timely application for cancellation, the related amount of Euro  million, excluding penalties and interest, was registered for enforced collection. Convinced that the tax demand is unjustified, the company has challenged the collection notice by appeal to the Modena Provincial Tax Commission. Pending the outcome, the matter of the litigation has ceased, awaiting relief from the Tax Office.

Investigation into what the media have labelled the "Parioli scam" It should be noted that certain individuals, who are suspects in the investigation into what the media have labelled the "Parioli scam," held accounts, also by means of companies held by them, with a Rome branch of the former CARISPAQ, from / May  absorbed by BPER. In this context it should be noted that CARISPAQ has been cited as being responsible in the criminal proceedings before the Court of Rome, in which Gianfranco Lande stands accused of alleged conspiracy to carry out fraud as well as other crimes against property, unauthorised financial practices and trying to obstruct the supervisory functions; crimes committed through companies controlled by Lande, some of which had current accounts at a Rome branch of CARISPAQ. On $ June , the Court of Rome condemned Gianfranco Lande to ( years and $ months in prison and a fine of Euro ,. CARISPAQ was also ordered, jointly and severally with the defendant, to pay damages in favour of plaintiffs, to be paid in separate proceedings, as well as reimbursement of the legal expenses incurred by the plaintiffs, as quantified by the Court. The Court rejected all requests for a provisional award. It followed that, according to the judgement, CARISPAQ was not currently required to pay any sum. CARISPAQ had appeal against the sentence on  March  before the Court of Appeal of Rome.

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Consolidated interim report on operations as at  September  Interim report on operations

On / December , the Rome Court of Appeal, as part of the appeal process initiated also by BPER against the sentence imposed by the Court of Rome against Lande for illegal financial activities, and CARISPAQ, now BPER, as being legally liable for the latter, revoked the first degree judgement against BPER in terms of legal liability, as mentioned previously, and decided to offset the legal costs unlike what was decided in the previous first degree sentence. An appeal was filed immediately against this decision with the Supreme Court only by Lande's defence council and by EGP, responsible under civil law, whereas all of the plaintiffs except two have desisted from this initiative. The Supreme Court, in its judgement of  February , rejected the appeal of the two plaintiffs and deferred the matter to the Civil Court of Appeal solely for the purpose of reviewing the rulings in favour of the plaintiffs, with the exception of the CONSOB, only in connection with the sentence against Gianfranco Lande to pay damages. As a consequence, all of the civil rulings that excluded liability on the part of BPER are now definitive ( res judicata in legal jargon). The criminal proceedings involving the managers at the time of CARISPAQ's branch no.  in Rome, for different criminal offences, as specified below, relating to the management of the current account belonging to the company E.I.M. and attributable to Mr. Lande, ended on  September  with full acquittal of the accused. In particular, one of them was charged with participation in unauthorised financial practices; the other two, on the other hand, were charged with a less serious offence under art.  of Legislative Decree no. %/, for having violated the obligations of full and truthful identification prescribed by the regulations against money laundering. Various people have registered as civil plaintiffs in these proceedings. Most of them had already signed up as civil plaintiffs in the first trial against Mr. Lande. Also in this case, BPER was sued as the merging company of CARISPAQ, as legally liable for the "deeds of its employees", pursuant to art. ,( of the Civil Code. Our defence has been entrusted to a leading Bologna law firm. The Bank has duly appeared as defendant, contesting both the issue of the inadmissibility of the plaintiff's filings and the fact that it is not possible to duplicate the requests for compensation already made in Lande's trial. These requests were, however, rejected by the Court, mainly because the condemnation of civil liability, already pronounced in the first lawsuit, was not yet covered by res judicata. As mentioned previously, the first degree criminal proceeding was concluded with a favourable outcome for the defendants and, consequently, for BPER. In particular, the judgement of the Court in Rome of  September  declared the two defendants not guilty because the offence is not a crime and the third defendant for not having committed the crime. It should also be noted that some of those alleged to have been damaged by Lande's conduct, some of whom did not present themselves as plaintiffs in these criminal proceedings (there are currently ,$ plaintiffs with claims of about Euro , million), have sued the Bank under civil law for reimbursement of the damage suffered, even in the absence of any causal link between the damage alleged by the plaintiffs and any illegal acts or irregularities carried out by CARISPAQ, which, however, are now excluded from the above judgements in criminal matters. The status of these civil proceedings is at different stages of completion and in only one of them, where a decision has been reached, BPER was ordered to pay damages for Euro 1 thousand. With regard to this decision, for which the reasons appear to be absurd and groundless, the Bank is in the process of preparing its appeal based on a series of reasons.

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Consolidated interim report on operations as at  September  Interim report on operations

For an assessment of the potential financial and economic impacts that could arise from this situation, CARISPAQ, now BPER following its merger, has over time obtained a number of legal opinions from the law firms that assist it in the various trials and pro veritate opinions prepared by a respected professional totally unrelated to the Bank's defence, as well as contributions from another respected professional. In particular, a detailed study has been made of the merits of the judgement of conviction issued against the bank, at first instance and now finally and successfully completed in the Supreme Court, in the light of the rules and principles applicable in our legal system with regard to passive legitimation of third-party liability and compensation for damages in criminal proceedings. Particular attention has been given to issues relating to the lack of a causal link between the alleged damage and the conduct of CARISPAQ. These assessments are now comforted by the judgement of the Supreme Court of  February , as well as by the acquittal at first instance by the Criminal Court of Rome dated  September . Given the above, it is currently believed that there is only a remote possibility that the bank will suffer adverse consequences as a result of this matter; consequently, in accordance with IAS /, it was decided not to make any provision.

Investigations by the Guardia di Finanza at Banco di Sardegna s.p.a. On  March , a search and seizure warrant issued by the Public Prosecutor at the Court of Cagliari was served on Banco di Sardegna s.p.a. The investigation stems from the preliminary findings made on corporate financial statements for the years  and  as a result of the inspection report prepared by the Supervisory Inspectorate of the Bank of Italy - notified on  August  - at the end of the inspection carried out at Banco di Sardegna during the first half of . The Bank is providing the investigators with its full collaboration.

Judgement of the Court of Modena There are no changes with respect to the disclosures published in the , annual report, to which reference is made for further information.

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Consolidated interim report on operations as at  September  Interim report on operations

1. Significant subsequent events and outlook for operations

1. Subsequent events

ARCA SGR s.p.a. - closing of the option and pre-emption rights for shareholder withdrawals On  October , ARCA SGR s.p.a., (.(($F held by BPER, announced the completion, at  September, of the procedure for exercising the option and pre-emption rights made necessary following the withdrawal by shareholders belonging to the Banco Popolare Group (Banco Popolare s.c. and Holding di Partecipazioni Finanziarie Banco Popolare s.p.a.) and Banca Popolare dell’Alto Adige s.c.p.a. In that communication, ARCA SGR provided a framework for the exercise of these rights by the shareholders and the situation that will take place upon completion of the authorisation procedures initiated by BPER and another bank due to the increased interests in the share capital of ARCA SGR. The request made by BPER to the Bank of Italy, in particular, provides for an increase in the shareholding to ./F through the purchase of 1,/1,($, shares (of which ,$,$ shares for the exercise of option rights and ,/,1( as due for the exercise of the pre-emption right), at a price of Euro (.1 per share, set by the Board of Directors of ARCA SGR in July  for the withdrawal.

BPER Banca - Plan to transform BPER into a joint-stock company On 1 October , after hearing the opinion of the Board of Statutory Auditors, the Board of Directors of Banca popolare dell’Emilia Romagna approved the plan for BPER's transformation into a joint-stock company, in accordance with the (th update of Circular no. $ "Supervisory Instructions for Banks" of ( June , implementing Decree Law no.  of , January , converted into Law  of , March . The Plan contains initiatives needed for this purpose as well as the timing of their implementation, in accordance with the terms of the law. In particular, the expected timing of the Transformation Plan envisages holding an Extraordinary General Meeting to resolve on the transformation and approve the relevant changes to the Articles of Association in the last four months of 1, subject to the right to anticipate the Meeting if there is any reason to do so.

Annual supervisory contribution to the ECB On 1 October  the European Central Bank communicated to BPER as Parent Company the supervisory contribution due by the BPER Group for the last two months of , (Euro 1 thousand) and for the year  (Euro ,(, thousand), pursuant to art.  of Regulation (EU) no. ,%. These amounts were taken into account in determining the results at  September .

New branch concept The new Reggio Emilia branch of BPER was inaugurated on / October ; we wanted to go beyond the traditional concept of a bank, creating a new type of relationship with the customer. The project is part of the activities envisaged in the Business Plan and, among other things, aims to give customers a distinctive experience in the new branches of BPER Banca. The "new" branch offers the visitor an engaging experience built around the metaphor of the botanical garden, welcoming and explaining the new standard of service that we are promising in line with the new brand.

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Consolidated interim report on operations as at  September  Interim report on operations

All barriers have been eliminated because BPER believes this is the best way to be closer to its customers, to establish a strong relationship with people. A relationship that starts from listening and that is based on an open and equal dialogue. The Bank wants to give life to a different and innovative dimension, where people feel immediately welcomed and guided, where it becomes even easier to move around and explore. A place where care, discovery, expertise and guidance inspire people's behaviour, the configuration of the space and the solutions to needs.

Banco di Sardegna - Tax litigation and audits by the Tax Authorities On ( October , Banco di Sardegna received the official report of findings prepared after the tax audit by the Regional Directorate of Sardinia of the Tax Authorities that began on  February . The principal issues relate to the determination of the value of production for IRAP purposes, with particular reference to participation in the above tax base of the write-backs on collection of default interest and matters of mere accruals related to out-of-period expenses for revenues assessed and taxed in previous years. All the findings made by the report, which does not constitute a notice of assessment, are believed to be opposable with valid defensive arguments in the case they are confirmed in a subsequent tax assessment.

Dissolution of the Shareholders' Agreement with Fondazione Banco di Sardegna Fondazione Banco di Sardegna and BPER (hereinafter the "Parties"), by mutual agreement, decided not to proceed with the renewal of the Shareholders' Agreement (hereinafter the "Agreement") executed on 1 October  and which reached its natural expiry on 1 October ; it concerns all of the ordinary and preference shares issued by Banco di Sardegna s.p.a. and owned by it, the existing quantities and nature of which were disclosed to the market at the time that the Agreement was signed. The Parties are of the opinion that the changed scenario in the sector requires them to weigh up the opportunity to mutually revise the agreed terms, without prejudice to the statutory rights and obligations to which they are subject in their role as shareholders of Banco di Sardegna s.p.a. To this end, in their usual spirit of fruitful cooperation, the Parties are currently examining the terms for the potential execution of a new shareholders' agreement.

Cassa di Risparmio di Bra - Alignment to the Group's IT system The alignment of Cassa di Risparmio di Bra, which belongs to the BPER Group since , to the Group's IT system was carried out on 1 October , enabling the Bank to fully align itself with the models, processes and tools of the Group, with full inclusion in organisational, operational, governance and control logic and dynamics. The transaction, which also involves the centralisation of certain activities in the Parent Bank BPER and in the Group consortium BPER Services, will also enable the Bank to strengthen the quality of its structure with significant economies of scale, making it more versatile and able to meet the different needs of customers with a wider range of banking and insurance products.

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Consolidated interim report on operations as at  September  Interim report on operations

1. Outlook for operations

During the first nine months of the year, the prospects of a gradual recovery in the Italian economy have further strengthened, accompanied by a slow but steady improvement in the economic situation and expectations of growth in GDP. During the third quarter, the trend in loans to customers showed the first signs of recovery after two years of uninterrupted declines; this trend is likely to continue in the last quarter of the year, to then consolidate the following year thanks to particularly favourable economic and monetary policy factors. The still very low level of market interest rates and high competition in the field of traditional lending to customers will continue to exert pressure on the return on assets, albeit with a gradual reduction in intensity in the coming months; at the same time, the steps taken to reprice liabilities, especially in the second half of the year, will allow a further decline in the cost of funding aimed at limiting tensions on the margin. A positive contribution to revenues is expected from fees and commissions that already turned in a very satisfactory performance in the first nine months of the year. The sharp slowdown in the flows of new problem loans recorded in the period should continue in the latter part of the year. In addition, the sale of the interest in Istituto Centrale Banche Popolari Italiane should be completed by the end of the year. The prospects for profitability for the current year are expected to improve compared with ,.

Modena,  November 

The Board of Directors The Chairman Ettore Caselli

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Consolidated interim report on operations as at  September  Consolidated financial statements

Consolidated financial statements

$

Consolidated interim report on operations as at  September  Consolidated financial statements

Consolidated balance sheet as a  September 

(in thousands of Euro) Assets .(. ..,

. Cash and cash equivalents 1,$ ,,/11 . Financial assets held for trading $,,/ ,,$1 . Financial assets designated at fair value through profit and loss , ,,( ,. Financial assets available for sale $,,1, 1,(,,,(/ . Financial assets held to maturity ,,,,/ ,,,(/ 1. Due from banks ,$$,(1 ,/(,($ /. Loans to customers ,,,,(,/$ ,,((,1$ $. Hedging derivatives ,1, 1,/,, . Equity investments /,, /,11 . Property, plant and equipment (,$,( ,$,( . Intangible assets ,(,(( ,($,( of which: goodwill $,( $,,1 ,. Tax assets ,$,1 ,1, a) current /, $,($( b) deferred ,,/( ,/(, b) of which L. ,% ,,11$ ,$,1 . Non-current assets and disposal groups held for sale ,$/ ,$/ 1. Other assets 11,( ,$,/ Total assets 1,1$,,$( 1,1,(

Liabilities and shareholders' equity .(. ..,

. Due to banks ,/$,( 1,,/(,$ . Due to customers ,,/, ,(1,,( . Debt securities in issue ,($,($ ,$,1 ,. Financial liabilities held for trading 1,1$( ,, . Financial liabilities designated at fair value through profit and loss $(,/ ,/,1, 1. Hedging derivatives ,$,1 ,($1 $. Tax liabilities /,, $,/(, a) current 1,( ,1 b) deferred ,,1/ , .Other liabilities ,,(/ ,/,, . Provision for termination indemnities ,$( ,(( . Provisions for risks and charges ,1,1 ,// a) pensions and similar commitments ,1, ,,/$ b) other provisions $,1 ,1(/ ,. Valuation reserves ,( $1,$, /. Reserves ,$(,/$ ,,/1 $. Share premium reserve (,/ (,// (. Share capital ,,,,( ,,,,( . Treasury shares (/,1) (/,() . Minority interests 1,,11 1(,(( . Profit (Loss) for the period $,$1 ,,/(/ Total liabilities and shareholders' equity 1,1$,,$( 1,1,(

$/

Consolidated interim report on operations as at  September  Consolidated financial statements

Consolidated income statement as at  September 

(in thousands of Euro)

Captions .(. .(.,

. Interest and similar income ,,(,, ,,,,( . Interest and similar expense (,,$,) (,/1,,) . Net interest income (,, (/$,,(( ,. Commission income 1,, ,11 . Commission expense (/,,,) ($,/) 1. Net commission income /,1(/ ,,,( /. Dividends and similar income ,,$( $,1 $. Net trading income ,,(( ,,, (. Net hedging gains (losses) (/(() $ . Gains%losses on disposal or repurchase of: 1/,( 1,/ a) loans ,, ((,) b) financial assets available for sale 1,11 ,1/ c) financial assets held to maturity $ - d) financial liabilities (() - . Net results on financial assets and liabilities designated at fair value / (,) . Net interest and other banking income ,$,1( ,1,,/ . Net impairment adjustments to: (,,,$) ((,/1) a) loans (,,,$(/) ($,$$) b) financial assets available for sale (1,,1) (,,) d) other financial assets (,,11) (1,) ,. Net profit from financial activities ,,,, ,,/ $. Administrative costs: (,,,/) ((1(,$/) a) payroll (1$,/() (//,() b) other administrative costs ($1,,) ((,,$1) (. Net provision for risks and charges (,) (/,1/) . Net adjustments to property, plant and equipment ($,,) (,$,/) . Net adjustments to intangible assets (,) ((,$) . Other operating charges%income ,,/ (,1 . Operating costs (($$,,,) ((/,1) ,. Profit (Loss) from equity investments (,,() (,,() /. Gains (Losses) on disposal of investments  1 $. Profit (Loss) from current operations before tax ,1$ ,/1 (. Income taxes on current operations for the period (1,(,) (,(,) . Profit (Loss) from current operations after tax $$,/,, /,$1 . Net profit (L oss) for the period $$,/,, /,$1 . Net profit (Loss) for the period pertaining to minority interests (1,$) (,,/) ,. Profit (Loss) for the period pertaining to the Parent Company $,$1 1,

Earnings per Earnings per share share (Euro) (Euro) .(. .(., Basic EPS ./ .// Diluted EPS ./ .//

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Consolidated interim report on operations as at  September  Consolidated financial statements

Statement of consolidated comprehensive income

(in thousands of Euro)

Statement of consolidated comprehensive income .(. .(.,

. Profit ( Loss) for the period $$,/,, /,$1 Other income items, net of income taxes, without release to the income statement ,. Defined benefit plans ,1, (,,,) 1. Portion of the valuation reservesx of equity instruments carried at equity (,,$$) ,/ Other income items, net of income taxes, with release to the income statement: (. Cash-flow hedges (,,/) (,, . Financial assets available for sale ,,1 $,,,/ . Total other element of income /,($ ,,1 ,. Total comprehensive income (Captions Q) ,1,, , . Total comprehensive income pertaining to minority interests (,1/) , 1. Consolidated comprehensive income attributable to the Parent Company ,/,/, (,,//

$(

Consolidated interim report on operations as at  September  Consolidated financial statements

1 1 238 8 14 ,905 19,357 6,158 M inority M inority interests - interests - 97,801 41,394 49,428 - - 624,656 688,304 3 42,934 Gro up Gro up 30.09.2015 30.09.2014 61,101 14,715 (in thousands of Euro) - - (7,256) (2) (7,272) (2) 1,439,034 113,444 113,444 1,439,034 - Shareholders' equity as at Shareholders' equity as at - 1,944,179 339,667 1,944,179 - - 1,664,815 317,014 317,014 1,664,815 ------1,443,925 97,80 1,443,925 - - 327,193120, - - 624,968 1 - - 1,439,034 113,444 94,772 4,862,696 - 30.09.2015 30.09.2014 247,714 5,092,046 - income as at income as at Comprehensive (1,672) Comprehensive - 2,289,783 436,371 ------7) - 922,256 50, - - 2,271,372 459 - 88,744 82,586 - - (6,133) - - (6,133) - - - 34,206 176,205 - 157,298 352,935 5,891 15,250 - (3,157) - 1,443,925 interests interests - - - 75,816 - - (1,002) - 930,07 Changes in Changes in - - - - (3,157) (3,157) participatory participatory (7,461) - - - - Stock Stock o ptio ns - o ptio ns ------shares shares ------on treasury on treasury Derivatives Derivatives ------(6,133) - - - (22,471) - - - 3,302 in in ------(10,44 - - - equity equity ------Changes C hanges ------instruments instruments ------Changes during the period Changes during the period ------distribution distribution Transactions on shareholders' equity Transactions on shareholders' equity o f dividends o f dividends - Extraordinary Extraordinary - - - o f o f ------shares shares (4) - treasury treasury - P urchase P urchase ------2 - - 2 0 ------(2) - - (2) ------new new (4) - - - - - share s share s Issue of Issue of - 7 (4) ------equity equity reserves reserves Changes in Changes in (6,202) - (21,151) (21,151) - - (223,041) (223,041) - - 26,306 437,551 - - (4) - - 204,193 204,193 - - (5,534) - - and other and other Dividends Dividends allo cations allo cations - (26,685) - results results - - (4) - - 26,306 437,551 114 - (18,848) - - - 21,800 735,651 - (9,757) (19,352) 3 - - 944 298,10 - - 1,136 ------1,745 - - (1) - - (11,653) - - - 0,024) (9,757) - - - - - (16,114) - - R eserves - R eserves Allocation of prior year Allocation of prior year ------1.1.15 1.1.14 2,490,771 16,114 16,114 2,490,771 1,094,754 - - 1,094,754 1,544,887 - - 1,544,887 1,982,956 20,024 20,024 1,982,956 243,240 - - 243,240 749,859 - - 749,859 639,991 Balance as at Balance as at ------Changes balances Changes balances in o pening in o pening ------at 31.12.14 at 31.12.13 29,781 4,870,140 - 29,781 - (2 4,870,140 1,544,887 - 1,544,887 1,094,754 - 1,094,754 684,473 - 684,473 2,732,815 - 2,732,815 235,895 20,024 - 235,895 189,682 - 189,682 2,734,011 - 2,734,011 16, 678,816 - 678,816 639,991 974,014 - 974,014 243,240 - - 243,240 16,114 4,032,944 - 16,114 - 4,032,944 Balance as Balance as 749,859 - - 749,859 2,490,771 - - 2,490,771 1,094,754 - - 1,094,754 (7,274) - (7,274) 1,544,887 - - 1,544,887 1,982,956 - - 1,982,956 (7,261) - (7,261) Statement of changes in consolidated shareholders' shareholders' consolidated in changes of Statement b) otherb) shares froma) profits otherb) Valuation reserves Equity instruments b) otherb) shares Net profit (loss) Group shareholders' equity ordinaryshares a) Reserves: Net profit (loss) Group shareholders' equity M inority interests Share capital: Share premium reserve T reasury shares M inority interests Share capital: Share premium reserve T reasury shares a) ordinaryshares a) otherb) Reserves: froma) profits Valuation reserves Equity instruments

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Consolidated interim report on operations as at  September  Explanatory notes

Explanatory notes

(

Consolidated interim report on operations as at  September  Explanatory notes

Form and content of the Consolidated interim report as at  September  page ( Information on the consolidated balance sheet page  Information on the consolidated income statement page  Information on risks and related hedging policy page / Information on the consolidated shareholders' equity page ,/

Key to abbreviations in tables:

FV: fair value FV*:fair value excluding variations due to changes in the creditworthiness of the issuer since the issue date NV: nominal or notional value BV: book value

L: Fair value hierarchy - Level 

L: Fair value hierarchy - Level 

L:Fair value hierarchy - Level  c: not applicable

(

Consolidated interim report on operations as at  September  Explanatory notes

Form and content of the Consolidated interim report

(

Consolidated interim report on operations as at  September  Explanatory notes

. Introduction

The consolidated interim report as at  September  ("the report") of the Banca popolare dell'Emilia Romagna Group has been prepared in compliance with art. ,-ter of the Consolidated Finance Act ("CFA" - Decree $ of , February (($ and subsequent amendments).

. Declaration of compliance with International Financial Reporting Standards

The figures contained in the report have been determined in accordance with the accounting rules set by the IAS%IFRS endorsed by the European Commission under the procedure referred to in art. 1 of EC Regulation no. 11% and already used in the preparation of the Consolidated financial statements as at  December ,, as well as by the IAS%IFRS that became mandatory from . In any case, this document does not constitute an "interim financial report" as intended by International Accounting Standard (IAS) ,.

. General policies

This report consists of the Consolidated balance sheet, the Consolidated income statement, the Statement of consolidated comprehensive income and the Statement of changes in consolidated shareholders' equity, as well as the Explanatory notes. The schedules provide comparative figures from the balance sheet as at  December , and from the income statement as at  September ,. This report also includes the Group's interim report on operations.

The Financial statements and rules for their preparation comply with the provisions of Circular no. 1 issued by the Bank of Italy with the Regulation dated  December  and subsequent amendments.

Unless stated otherwise, the amounts shown in the Financial statements and Explanatory notes are expressed in thousands of Euro.

The balance sheet, income statement and statement of changes in shareholders' equity of Banca popolare dell'Emilia Romagna s.c., the Parent Company, are provided in attachments to this report.

The general principles adopted for the preparation of the quarterly report, the consolidation principles and the accounting policies applied in the phases of recognition, classification, measurement and derecognition of assets and liabilities, as well as the bases for recognising revenues and costs, are the same as those explained in Part A of the Explanatory notes to the , consolidated financial statements, except as described in paragraph , "Scope of consolidation and methodology".

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Consolidated interim report on operations as at  September  Explanatory notes

%. Scope of consolidation and methodology

The consolidation criteria and methodology are described in Part A of the Explanatory notes to the , consolidated financial statements. Current regulations require the scope of consolidation to be managed on two levels: • the accounting scope of consolidation governed by IFRS  36 "Consolidated financial statements", IAS / "Separate financial statements", IAS $ "Investments in Associates and Joint Ventures" and, if required by the circumstances, IFRS  "Business Combinations" and IFRS  "Joint Agreements" (all adopted by Regulation (EU) no. ,% and effective from  January ,); • the prudential scope of consolidation governed by Regulation (EU) no. /% (the Capital Requirements Regulation or CRR), in which art. ( indicates the entities to be excluded from the prudential consolidation.

The above regulations contribute to determining the scope of consolidation at each level, as well as the methodologies to be used for each consolidation. International accounting standards require subsidiaries to be consolidated on a line-by-line basis, while jointly controlled entities and non-controlling interests in which the Group exercises significant influence are accounted for using the equity method. Art. ( of the CRR excludes from the scope of line-by-line consolidation all financial entities and operating companies, including members of the Banking group, whose total assets and off-balance sheet amounts are less than the lower of the following two amounts: • Euro  million; • F of the total assets and off-balance sheet amounts of the parent company or the entity that holds the equity investment.

From  June  the BPER Group has decided to adopt the consolidation methodology envisaged for prudential supervisory purposes. This approach was also applied when determining the financial disclosures to be made, thus aligning the two levels of consolidation.

This decision was necessary in order to rationalise, simplify and streamline the production of consolidated information for supervisory and financial reporting purposes. Its effects on the latter are negligible. In terms of the areas affected, the marginal dynamics previously indicated in the income statement on a line-by-line basis are now summarised in "Profit (loss) from equity investments"; while the limited intercompany balances have not been eliminated from the assets and liabilities reported in the balance sheet. Shareholders' equity, on the other hand, is unaffected. The following companies are members of the Banking group but, at  September , do not satisfy the requirements of art. ( of the CRR: • Mutina s.r.l.; • Nettuno Gestione Crediti s.p.a.; • Estense Covered Bond s.r.l.; • BPER Trust Company s.p.a.; • Estense CPT Covered Bond s.r.l.;

36 IFRS  § B$1 in relation to consolidation procedures. (

Consolidated interim report on operations as at  September  Explanatory notes

These companies, together with the other subsidiaries that are not formally members of the group since their activities do not contribute to its banking operations, being: • Melior Valorizzazioni Immobili s.r.l.; • Italiana Valorizzazioni Immobiliari s.r.l.; • Adras s.p.a.; • Polo Campania s.r.l.; • Galilei Immobiliare s.r.l.; • SIFA’ - Società Italiana Flotte Aziendali s.p.a.; • Costruire Mulino s.r.l.; • Sviluppo Formica s.r.l. At  September , all of these companies have been consolidated under the equity method.

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Consolidated interim report on operations as at  September  Explanatory notes

. Investments in subsidiaries on an exclusive basis

. Equity investments of the Group consolidated line -by -line

Type of F Share Nature of holding Operational Registered relation - voting Name capital head office head office ship rights in Euro Parent F () () company held . Banco di Sardegna s.p.a. Sassari Cagliari  ,,/,/1 B.P.E.R. .$ . . Banca di Sassari s.p.a. Sassari Sassari  /,,,$,1/ B. Sard. /(./ B.P.E.R. $.$1 . Cassa di Risparmio di Bra Bra Bra  /,, B.P.E.R. 1/. s.p.a. ,. Bper (Europe) Luxembourg Luxembourg  ,11/, B.P.E.R. . International s.a. . EMRO Finance Dublin Dublin  , B.P.E.R. . Ireland ltd. 1. Nadia s.p.a. Modena Modena  $/,, B.P.E.R. . /. BPER Services s.cons.p.a. Modena Modena  ,(, B.P.E.R. (.1$ B. Sard. ,./1 Optima ., B.S.S. ., CR Bra ., Sardaleasing ., $. Sardaleasing s.p.a. Milan Sassari  (,(, B.P.E.R. ., B. Sard. ,1.( (. Optima s.p.a. S.I.M. Modena Modena  ,, B.P.E.R. . . Tholos s.p.a. Sassari Sassari  /,,(( B. Sard. . . Numera s.p.a. Sassari Sassari  ,1,$, B. Sard. . . Modena Terminal s.r.l. Campogalliano Campogalliano  $,, B.P.E.R. . . Emilia Romagna Factor Bologna Bologna  1,(,(, B.P.E.R. (,., s.p.a.

The "F voting rights" column is only used if the actual share of votes exercisable at the Ordinary Shareholders' Meeting is different from the interest held in the company's share capital.

Key

() Type of relationship:  Majority of votes at the ordinary shareholders' meeting. () Voting rights at ordinary shareholders' meeting, distinguishing between actual and potential.

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Consolidated interim report on operations as at  September  Explanatory notes

. Equity investments belonging to the Group or just controlled consolidated under the equity method

Type of F Share Nature of holding Operational Registered relation - voting Name capital head office head office ship rights in Euro Parent F () company held () A. Companies controlled but not considered part of the Group . Galilei Immobiliare s.r.l. Modena Modena  , Nadia . . Melior Valorizzazioni Milan Milan  , B.P.E.R. . Immobili s.r.l. . Polo Campania s.r.l. Avellino Avellino  , B.P.E.R. . ,. Adras s.p.a. Milan Milan  ,(,, B.P.E.R. . . Italiana Valorizzazioni Milan Milan  ,, B.P.E.R. . Immobiliari s.r.l. 1. SIFA' - Società Italiana Milan%Reggio Milan  (,$ B.P.E.R. . Flotte Aziendali s.p.a. Emilia B. Companies controlled and considered part of the Group, but which do not meet the requirements of art. ( of the CRR /. Mutina s.r.l. Modena Modena  , B.P.E.R. . $. Nettuno Gestione Crediti Bologna Bologna  ,, B.P.E.R. . s.p.a. ( Estense Covered Bond s.r.l. Conegliano Conegliano  , B.P.E.R. 1. . BPER Trust Company s.p.a. Modena Modena  , B.P.E.R. . . Estense CPT Covered Bond Conegliano Conegliano  , B.P.E.R. 1. s.r.l.

The "F voting rights" column is only used if the actual share of votes exercisable at the Ordinary Shareholders' Meeting is different from the interest held in the company's share capital. Costruire Mulino s.r.l. and Sviluppo Formica s.r.l. have not been included in the list as they are not yet operational at  September .

Key

() Type of relationship:  Majority of votes at the ordinary shareholders' meeting. () Voting rights at ordinary shareholders' meeting, distinguishing between actual and potential.

. Significant assessments and assumptions made when determining the scope of consolidation

As regards the companies included in the scope of consolidation, no facts or circumstances have taken place that might change our assessment of possession of control, joint control or significant influence at  September . For further details about changes in the scope of consolidation until  September , please refer to the Group interim report on operations under "Scope of consolidation of the BPER Group".

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Consolidated interim report on operations as at  September  Explanatory notes

,. Significant restrictions

At the banks and companies that make up the BPER Group's scope of consolidation, there are no significant restrictions as foreseen by IFRS  § .

. Other information

The line-by-line consolidation was carried out using the approved financial statements prepared at  September  by the subsidiaries concerned. In particular, those financial statements were prepared under IAS%IFRS by the individual banks and financial companies subject to Bank of Italy supervision, as well as by EMRO Finance Ireland Ltd. All the other Group companies and BPER (Europe) International s.a. included within the new scope of consolidation normally prepare their financial statements under Italian accounting standards. These companies therefore prepared separate accounting schedules and data under the international accounting standards used for consolidation purposes. The value of Group subsidiaries carried at equity was measured with reference to their accounting information prepared and approved at  September . The book figures at  June  were used to measure the other investments consolidated at net equity. The financial statements at  December , were sued for CO.BA.PO - Consorzio Banche Popolari s.con., CONFORM – Consulenza Formazione e Management s.c.a.r.l., CAT Progetto Impresa Modena s.c.r.l., Atriké s.p.a and Lanciano Fiera.

. Subsequent events

The consolidated interim report was approved on  November  by the Board of Directors of Banca popolare dell’Emilia Romagna s.c. Reference is made to the detailed information provided in the "Significant subsequent events and outlook for operations" section of the Group interim report on operations.

(. Altri aspetti

Amendments to accounting standards endorsed by the European Commission

As required by IAS $, the following table shows the new international accounting standards or amendments to standards already in force, whose application is mandatory from .

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Consolidated interim report on operations as at  September  Explanatory notes

EC Approval Title In force from years Regulation beginning 1,%, Regulation that adopts IFRIC  - Levies  January  This interpretation deals with both the recognition of a liability for the payment of a levy in the case where the liability falls within the scope of IAS / and the recognition of a liability for the payment of a levy whose timing and amount are uncertain. 1%, EU Commission Regulation no. 1%, of $ December ,,  January  published in the Official Journal L 1 of ( December ,, amends the following international accounting and financial reporting standards: IFRS , IFRS  and IAS , The intention of the amendments is to clarify that IFRS  should not be applied when accounting for a joint venture; the amendment to IFRS  clarifies that the references to financial assets and liabilities should be read as applicable to all contracts covered by IFRS (, while the amendment to IAS , specifies that the standard determines whether a property is to be considered for functional use or for investment, not to determine whether the property in question is a business combination.

The following table shows the new international accounting standards or amendments to standards already in force, whose application is mandatory from  January 1 or later date (if the financial statements do not coincide with the calendar year). The Group has decided not to take advantage of the possibility of early implementation.

EC Approval Title In force from years Regulation beginning $% Improvements to IFRS - - Cycle  January 1

The purpose of the annual improvements is to deal with necessary topics relating to inconsistencies in IFRSs or clarifications in terminology that are not particularly urgent, but that have been discussed by the IASB during the project cycle that began in . In some cases, the changes are clarifications or corrections to these principles (IFRS $, IAS 1, IAS , and IAS $), in others, the changes involve amendments to existing regulations or provide additional information on how they are to be applied (IFRS  and ).

(% EU Commission Regulation no. %( of / December ,,  January 1 published in the Official Journal L  of ( January, adopts Amendments to IAS ( - Defined Benefit Plans: Employee Contributions

The amendment to IAS ( was necessary to facilitate, under certain conditions, the accounting for defined benefit plans that provide for contributions to be made by employees or third parties. If certain conditions are not complied with, recognition of these contributions is more complex, because they have to be allocated to each period of the plan by an actuarial calculation of the liability involved.



Consolidated interim report on operations as at  September  Explanatory notes

Documents of the Supervisory Authority

On  January , the Bank of Italy published the /th amendment of Circular no. /%$ which aligns the definitions of impaired financial assets with the new concepts of non-performing exposures and forbearance introduced by the ITS, in order to establish a single definition for both individual and consolidated supervisory reporting.

For supervisory reporting, impaired financial assets are now classified into the following categories: • bad loans; • unlikely to pay loans; • past due loans and%or impaired overdrawn exposures; the sum of these categories corresponds to the non-performing exposures aggregate established in the ITS. The concepts of watchlist and restructured loans have been eliminated. In addition, the category of "forborne exposures" is introduced, coinciding with the "exposures subject to tolerance" category included in the Finrep section of the consolidated reporting for supervisory purposes. The new categories of non-performing exposures apply to cash assets (loans and debt securities) and "off balance sheet" items (guarantees given, irrevocable and revocable commitments to grant loans), other than the financial instruments classified as " Financial assets held for trading " and derivative contracts. The decision to classify financial assets as non-performing is made regardless of any secured or unsecured guarantees that assist them.

The key aspects of the new categories are discussed below: • unlikely to pay loans: loans, other than bad loans, that the Bank considers are unlikely to be repaid in full (principal and%or interest) without recourse to action such as the enforced collection of guarantees. Exposures to retail customers may be classified in the “unlikely to pay” category at the individual transaction level, rather than at individual customer level, if the bank does not believe that the conditions exist for classifying the entire exposure to that customer in that category; • past due loans and%or impaired overdrawn exposures: exposures, other than those classified as bad or unlikely to pay, that are past due and%or overdrawn at the reporting date by more than ( days and that exceed a pre-determined materiality limit. Past due loans and%or impaired overdrawn exposures may be determined at individual debtor level or - solely for retail exposures - at individual transaction level; • forborne exposures: these exposures (forbearance) comprise: ° non-performing exposures with forbearance measures: these exposures represent one aspect, depending on the circumstances, of bad loans, unlikely to pay loans or past due loans and%or impaired overdrawn exposures; accordingly, they do not form a separate category of non-performing assets; ° forborne performing exposures.



Consolidated interim report on operations as at  September  Explanatory notes

On  May , the Bank of Italy published the new Circular no. $$ "Supervisory Provisions for Financial Intermediaries" which, by giving effect to the provisions contained in Title V of the Consolidated Banking Act (CBA) as amended by Legislative Decree , of  August , defines the supervisory framework applicable to financial intermediaries who sign up in the Single Register that has just been created under art. 1 of the CBA. The new regulatory system provides for the extension, albeit with the necessary adjustments, of the prudential rules governing banks to financial intermediaries as per art. 1 of the CBA. By the deadlines set by the legislator, the BPER Group applied for authorisation to sign up in the Single Register only for Emilia Romagna Factor s.p.a. and Sardaleasing s.p.a.

Single Supervisory Mechanism and EU Directives (%, (BRRD) and ,(%, (DGSD)

Background The Directives explained in this chapter fall into the broader context of the European Banking Union, in which the Italian banking sector operates. The Banking Union is based on three pillars: • the Single Supervisory Mechanism (SSM). The mechanism, which was introduced from , November ,, aims to guarantee the security and solidity of the European banking system; to enhance integration and financial stability; to ensure consistent supervision. This system of prudential supervision is governed by the European Central Bank (ECB) and is based on a regulatory compendium represented by the single rule book, which includes: ° Directive %1%EU (CRD IV), which includes the Basel  rules and lays down the conditions for access to banking, freedom of establishment and freedom to provide services, the supervisory review process and capital reserves; ° EU Regulation no. /% (CRR), integrated and updated by various regulations, issued regularly, which governs the supervisory requirements and the rules of public disclosure (Pillar ); ° more than  other documents published by the EBA; • the Single Resolution Mechanism (SRM). The Single Resolution Mechanism (SRM) is governed by Guidelines laid down in Directive ,%(%EU (Bank Recovery and Resolution Directive or BRRD), which entered into force on  January . The process of its transposition into Italian law, which had to be activated by  December ,, began on  July with the approval by Parliament of the European Delegation Law, which was followed on  September by the preliminary approval by the Council of Ministers of two legislative decrees on the consolidation and resolution of credit institutions and investment firms, for the transposition into Italian law of the said Directive, including the specific regulations governing this matter and the related changes to the Consolidated Banking Act. These decrees are now being assessed by the Parliamentary Committees to become a definitive part of Italian law.



Consolidated interim report on operations as at  September  Explanatory notes

The BRRD establishes a harmonised framework at EU level in terms of consolidation and resolution of credit institutions and investment firms, with the aim of avoiding disorderly liquidations, which amplify the effect and cost of crises, providing the resolution authorities with tools that enable early and effective intervention, minimising the impact of the disruption on the economy and the financial system. In this context, the possibility of public bail-outs is greatly limited, by regulating the so-called "bail-in" mechanism which makes the intermediary's shareholders and creditors absorb the losses arising as a result of the crisis, with a scheduled plan for interventions prior to any public support. The Directive includes and regulates the establishment of the Single Resolution Fund (SRF), which will have to be funded by contributions from all of the banks in ways that will be explained later; • the Deposit Guarantee Scheme (DGS). The single deposit guarantee mechanism is regulated by Directive ,%,(%EU (Deposit Guarantee Scheme Directive or DGSD), which entered into force on  July  and which, like the BRRD, has not yet been transposed into Italian law, apart from the above-mentioned approval last  July by Parliament of the European Delegation Law. The Directive, which includes and regulates the establishment of the Deposit Guarantee Scheme (DGS), is aimed at enhancing the protection of depositors and harmonise the framework at EU level, which takes over, with new ways of raising money, the current method of national operations, played by the Interbank Deposit Guarantee Fund, as will be explained below.

The Single Resolution Fund and the Deposit Guarantee Scheme • The Single Resolution Fund (SRF), which, as we said already, will be financed by contributions from the banking sector in each of the $ Member States of the Banking Union, will be set up over a period of eight years and will have to reach at least F of the total amount of protected deposits of all authorised credit institutions. The contributions made by each bank will be calculated as a percentage of the amount of its liabilities (excluding Own Funds and protected deposits) in relation to the same values of the entire credit system involved; contributions will be adjusted in proportion to the risks taken by each institution. Contributions will be collected annually during the transitional period of eight years, in special funds set up on a national basis, starting in . These contributions will then gradually be transferred to the Single Resolution Fund, which at the end of the transitional period will remain the sole custodian of the funds raised. • As mentioned previously, the DGS is foreseen by Directive ,%,(%EU, which requires all Member States to adopt an ex-ante system of funding with a target set at .$F of guaranteed deposits to be achieved in  years. For , given that the Directive takes effect from  July, the contribution to the scheme will be F of the expected annual amount, with the quota for the year, which will remain in suspense, being spread over the next nine years. This fund will be managed by the Interbank Deposit Guarantee Fund, which will amend its by- laws accordingly, having to envisage above all an ex-ante contribution mechanism, as foreseen under the rules, and no longer ex-post with only the quantification of each member bank's commitment, accounted for as a guarantee given.



Consolidated interim report on operations as at  September  Explanatory notes

When fully operational, contributions should be requested by  November of each year for the SRF and at least once a year for the DGS, currently assumed to be a one-off payment by the end of May.

From an accounting point of view, all parties agree that IASB's interpretation IFRIC , approved and applicable from ,, should be referred to for the right approach. This interpretation clarifies that for contributions similar to the payment of taxes, as in this case, it is possible to involve the income statement only to the extent of the periodic quotas, provided that the legal obligation permits identification of the so-called "obligating event", from which derives the individual contribution or the fact that generates the same liability. The current European legislation which, as far as we know, is being strengthened by the national rules currently being drafted, suggests that the contributions that will be required for banks fall into this context and that the obligating event will take place when they are formally calculated and payment is requested. Given that the current year is the first period of application as well as being a transitory one, as regards this issue, it was considered both proper and prudent to initiate recognition of the contributions due for , even if they have not yet been quantified and requested, estimating the figure based on the little information that is currently available. A provision has therefore been made to " Provisions for risks and charges " of Euro .1 million as an estimate for the current year of the contribution to the Single Resolution Fund (already at  June , taking into account that the reference BRRD took effect from  January ), and one of Euro $. million for the contribution to the Deposit Guarantee Scheme, whose reference Directive came into force, as we said, from  July . When fully operational, contributions will be allocated as administrative costs at the time of the actual communication and request for payment by the responsible bodies.

Audit

This report is not subject to a formal review by the auditors, PricewaterhouseCoopers s.p.a., but only to routine accounting checks.

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Consolidated interim report on operations as at  September  Explanatory notes

Information on the consolidated balance sheet



Consolidated interim report on operations as at  September  Explanatory notes

Assets

Financial assets held for trading Caption 

. Financial assets held for trading: breakdown by sector

Description%Amounts .(. ..,

L L L L L L A. Cash assets . Debt securities $$,(( ,,1 1 $,1$$ (,( 1 . Structured securities , ,/ - , ,$ - . Other debt securities 1$,,/$ ,(( 1 $,$$ /,/1 1 . Equities 1,,1 1  (, 1$  . UCITS units (,1$, - - ,,$, - - ,. Loans ------,. Repurchase agreements ------,. Other ------Total A ,(,1( ,( 1 ,/,1, (,$/ / B. Derivatives . Financial derivatives 1 $,/, (,, - , ,/ . Trading 1 ,(, (,, - ,(1$ ,/ . Connected with the fair value option - ,1( - - ,1 - . Other ------. Credit derivatives ------. Trading ------. Connected with the fair value option ------. Other ------Total B 1 $,/, (,, - , ,/ Total AQB ,(,1, ,1,( (,1( ,/,1, ,$ ,1,

The financial derivatives connected with the fair value option are mainly associated with debt securities classified as financial liabilities designated at fair value through profit and loss (liability caption ).

1

Consolidated interim report on operations as at  September  Explanatory notes

. Financial assets held for trading: breakdown by issuer%borrower

Description%Amounts .(. ..,

A. Cash assets . Debt securities ,/ /,,$ a) Governments and Central Banks 1,,11 ,,1,(1 b) Other public entities , / c) Banks ,/ 1,(/ d) Other issuers ,,1 ,( . Equity instruments 1,,( (,$ a) Banks ,,, (,, b) Other issuers ,(,/ (,11/ - insurance companies ,$// ,( - financial companies 1 , - non-financial companies ,,,$1/ 1,/ - other - - . UCITS units (,1$, ,,$, ,. Loans - - a) Governments and Central Banks - - b) Other public entities - - c) Banks - - d) Other parties - - Total A 1,/, /$(,$$ B. Derivative instruments a) Banks (,/, $,(, - fair value (,/, $,(, b) Customers $,( ,,, - fair value $,( ,,, Total B ,$ ,,,1$ Total (AQB) $,,/ ,,$1

/

Consolidated interim report on operations as at  September  Explanatory notes

Financial assets designated at fair value through profit and loss Caption 

. Financial assets designated at fair value through profit and loss: breakdown by sector

Description%Amounts .(. .., L L L L L L . Debt securities $,$ /,1  1,, ,,$$ $$ . Structured securities - - - - ,, - . Other debt securities $,$ /,1  1,, ,$$ $$ . Equity instruments  ,$1 -  ,1 ,, . UCITS units 1, - ,,1/ /,/ ,$ ,,/1 ,. Loans ------,. Structured ------,. Other ------Total /$,$1 $,,1 ,,( /,1 1,$ , Cost /,,(, $,/ $,$ 1(, 1,/ ,$

Financial assets designated at fair value through profit and loss: use of the fair value option

Description .(. ..,

a) Natural hedges using derivatives ,,/(1 ,,( a) Natural hedges using other financial instruments - - c) Other cases of accounting mismatches - - d) Financial instruments managed and measured at fair value $1,/ (,,$ e) Structured products with embedded derivatives - ,, Total , ,,(

$

Consolidated interim report on operations as at  September  Explanatory notes

. Financial assets designated at fair value through profit and loss: breakdown by borrower%issuer

Description%Amounts .(. ..,

. Debt securities 1,/ ,,/1/ a) Governments and Central Banks ,1, ,/ b) Other public entities - - c) Banks (,( ,$1 d) Other issuers ,,/ $,$, . Equity instruments ,$( ,,1( a) Banks - - b) Other issuers: ,$( ,,1( - insurance companies - - - financial companies - - - non-financial companies ,$( ,,1( - other - - . UCITS units 1,,/( 1,$1 ,. Loans - - a) Governments and Central Banks - - b) Other public entities - - c) Banks - - d) Other parties - - Total , ,,(

(

Consolidated interim report on operations as at  September  Explanatory notes

Financial assets available for sale Caption %

,. Financial assets available for sale: breakdown by sector

Description%Amounts .(. .., L L L L L L . Debt securities /,/,, /,1/1 , 1,,,/$ ,,$ ,// . Structured securities ------. Other debt securities /,/,, /,1/1 , 1,,,/$ ,,$ ,// . Equity instruments ,$/ - ,,,$1 ,/ - (,,( . Valued at fair value ,$/ - ,,($ ,/ - $(,$$ . Valued at cost - - ,$ - - ,1 . UCITS units /,/ - /,, ,1, - ,(, ,. Loans ------Total /,,1,,/ /,1/1 1/,/( 1,,,$ ,,$ ,1(,/

Financial assets available for sale are measured at fair value on the basis described in Part A of the Explanatory notes in the , Consolidated financial statements. "Debt securities" mainly relate to investments made in government bonds with the aim of returning to a more balanced asset sensitivity structure. Equity instruments are represented by stable equity investments. The UCITS units mainly relate to closed-end investment funds.



Consolidated interim report on operations as at  September  Explanatory notes

,. Financial assets available for sale: breakdown by borrower%issuer

Description%Amounts .(. ..,

. Debt securities /,1,,// 1,,,/ a) Government and Central Banks ,,,/$ ,,/$,$ b) Other public entities /,( - c) Banks ,,/1 ,,1, d) Other issuers (,/ ,,$ .Equity instruments , ,,( a) Banks , $, b) Other issuers: ,$,($ 1,$1 - insurance companies ,,,1 , - financial companies ,, ,// - non-financial companies ,,(1 ,,1 - other   . UCITS units ,,,, ,(( ,. Loans - - a) Government and Central Banks - - b) Other public entities - - c) Banks - - d) Other parties - - Total $,,1, 1,(,,,(/

,. Micro -hedged financial assets available for sale

.(. ..,

. Financial assets covered by specific fair value hedges $(,(, - a) Interest rate risk $(,(, - b) Price risk - - c) Foreign exchange risk - - d) Credit risk - - e) Multiple risks - - . Financial assets covered by specific cash flow hedges $$,$1 /,1$ a) Interest rate risk $$,$1 /,1$ b) Foreign exchange risk - - c) Other - - Total ,/(,$ /,1$



Consolidated interim report on operations as at  September  Explanatory notes

Financial assets held to maturity Caption 

. Financial assets held to maturity: breakdown by sector

.(. .., FV FV BV Level  Level  Level  BV Level  Level  Level 

. Debt securities ,,,,/ ,1/, ,(/ - ,,,(/ ,,,/( ,,((( - - Structured securities ------Other ,,,,/ ,1/, ,(/ - ,,,(/ ,,,/( ,,((( - . Loans ------

More than half of the portfolio comprises government debt securities, in order to support net interest income and reduce its exposure to interest rate fluctuations, given a foreseeable scenario of exceptionally low risk-free rates for a long time to come.

Key

FV Z fair value BV Z book value

. Financial assets held to maturity: breakdown by issuer%borrower

Type of transaction%Amounts .(. ..,

. Debt securities ,,,,/ ,,,(/ a) Governments and Central Banks ,,,/1 ,,1 b) Other public entities ,$ (,(/ c) Banks $(,11 (, d) Other issuers ,,,$, /,/ . Loans - - a) Governments and Central Banks - - b) Other public entities - - c) Banks - - d) Other entities - - Total ,,,,/ ,,,(/ Total fair value ,//,( ,(/,/$



Consolidated interim report on operations as at  September  Explanatory notes

Due from banks Caption (

1. Due from banks: breakdown by sector

Type of transaction%Amounts Total Total .(. .., BV BV A. Due from Central Banks ,,(1/ (,(, . Restricted deposits - - . Reserve requirement ,,(1/ (,(, . Repurchase agreements - - ,. Other - - B. Due from banks /,/,(($ ,(,, . Loans 1$,$1/ ,,,$ .. Current accounts and demand deposits ,, /,$( .. Restricted deposits /,$ /1, .. Other loans /(,( ,,/ - Repurchase agreements ,/1 ,/ - Finance leases $ , - Other /,1 $,, . Debt securities 1, (,( . Structured securities - - . Other debt securities 1, (,( Total ,$$,(1 ,/(,($

Key

BVZ book value



Consolidated interim report on operations as at  September  Explanatory notes

Loans to customers Caption ,

/. Loans to customers: breakdown by sector

Type of transaction%Values .(. .., Book value Book value Non -performing Non -performing Performing exposures Performing exposures exposures exposures Purchased Other Purchased Other

Loans 1,,((,,/ - 1,$(, /,,,, - 1,,/(/ . Current accounts ,/1,// - ,11, ,,,1 - ,(,/(1 . Repurchase agreements 1,,$/ - - ,$( - - . Mortgage loans ,1(,/, - ,,/,, ,,/$,( - ,,1,(// ,. Credit cards, personal loans and assignments of one-fifth of salary ,,,,( - 1,/( ,, - /,$ . Finance leases ,,, - /(,1( ,/,( - 1, 1. Factoring 1/,$ - 1,$( 1/$,,$ - 1,$ /. Other loans ,1,$/ - ,$$,$/ ,$,, - ,1,1 Debt securities (,(,( - ,,1 $$,/(, - ,/1 $. Structured securities ------(. Other debt securities (,(,( - ,,1 $$,/(, - ,/1 Total 1,$(,(1 - 1,(,$/ /,(,$$ - 1,1,$/

The sub-caption "Other loans" of performing loans includes € ,(/ million of bullet loans (-./F), € ,$ million of advances on invoices subject to collection (-.,,F), € $, million of import%export advances (Q,.$F), € / million of credit assignment (-$.,F) and € 1, million of other miscellaneous entries (Q.,F).

,

Consolidated interim report on operations as at  September  Explanatory notes

/. Loans to customers: breakdown by issuer%borrower

Type of transaction%Values .(. .., Performing Non -performing Performing Non -performing exposures exposures Purchasedexposures Other exposures Purchased Other . Debt securities (,(,( - ,,1 $$,/(, - ,/1 a) Governments ------b) Other public entities /, - - /,, - - c) Other issuers ,(/ - ,,1 $,$, - ,/1 - non-financial companies (,( - ( (,/$$ - $$$ - financial companies (,( - 1 ,, - ,$$ - insurance companies ,/ - - /,, - - - other ------. Loans to 1,,((,,/ - 1,$(, /,,,, - 1,,/(/ a) Governments ,1,/ -  ,(,/, - - b) Other public entities $,1( - /,$ 1,, - 1,/, c) Other parties ,,,(,,/ - 1,$,/1 ,,$,/$1 - 1,/, - non-financial companies ,,$( - ,1(, ,1,, - ,1,, - financial companies ,/(,$ - ,(1/ ,/,1 - 1/,$$ - Insurance companies /,(/, - - ,$ - - - other ,,,1 - /1,/$ (,$,,$$ - /,,,, Total 1,$(,(1 - 1,(,$/ /,(,$$ - 1,1,$/

/. Loans to customers: hedged assets

.(. ..,

. Loans subject to micro -hedging of fair value ,( ,( a) Interest rate risk ,( ,( b) Price risk - - c) Foreign exchange risk - - d) Credit risk - - e) Other risks - - . Loans subject to micro -hedging of cash flow - - a) Interest rate risk - - b) Foreign exchange risk - - c) Other - - Total ,( ,(



Consolidated interim report on operations as at  September  Explanatory notes

Hedging derivatives Caption .

$. Hedging derivatives: breakdown by type and level

FV .(. FV .., NV NV L L L L L L A. Financial derivatives - ,1, - ,,/$ - 1,/,, - ,,1,,$ ) Fair value - ,1,, - ,,$ - 1,/ - ,$$,($ ) Cash flows - // - /, - $/ - /, ) Foreign investments ------B. Credit derivatives ------) Fair value ------) Cash flows ------Total - ,1, - ,,/$ - 1,/,, - ,,1,,$

The cash flow hedge agreements will expire in December . The related cash flows will impact the income statement up to the relevant expiration dates.

Key

FV Z fair value NV Znotional value L Z Level  L Z Level  L Z Level 

$. Hedging derivatives: breakdown by hedged portfolio and type of hedge (book value)

Operation%Type of Fair value Cash flows hedge Specific

risk Specific General General Price risk Credit risk Interest rate Foreign investments Multiple risks Exchange risk

. Financial assets available for sale ------// - - . Loans ------. Financial assets held to maturity ------,. Portfolio ------. Other operations ------Total assets ------// - - . Financial liabilities ,1,, ------. Portfolio ------Total liabilities ,1,, ------. Expected transactions ------. Portfolio of financial assets and liabilities ------

1

Consolidated interim report on operations as at  September  Explanatory notes

Liabilities

Due to banks Caption 

. Due to banks: breakdown by type

Type of transaction%Members of the group .(. ..,

. Due to Central Banks ,,( ,(,(, . Due to banks ,/, ,$,1, . Current accounts and demand deposits (,$( ,,(, . Restricted deposits ,,1 1,,1$( . Loans ,(1,$1 ,1/,/ .. Repurchase agreements ,(,,/, ,1(,$( .. Other 1,$ 11,$ ., Payables for commitments to repurchase own equity instruments - - . Other payables ,1,,( ,, Total ,/$,( 1,,/(,$

The net interbank position is negative for € ,,,( million. The Group interim report on operations provides further details on this.

Due to customers Caption 

. Due to customers: breakdown by sector

Type of transaction%Members of the group .(. ..,

. Current accounts and demand deposits /,11,$ /,,$/,, . Restricted deposits ,1, ,(1$,$/ . Loans ,/$,/ ,/$,/( . repurchase agreements ,(,$1 ,1,/1/ . other ,$1,,1 ,/$,$ ,. Payables for commitments to repurchase own equity instruments - - . Other payables //,,/ //,,, Total ,,/, ,(1,,(

/

Consolidated interim report on operations as at  September  Explanatory notes

Debt securities in issue Caption 

. Debt securities in issue: breakdown by sector

Type of .(. .., security%Amounts Book Fair value Book Fair value value Level  Level  Level  value Level  Level  Level  A. Securities . Bonds /,((,( ,1,1,, ,,$,/1 - 1,1(,1$ ,1, ,1$,/1 - . structured ,1$ - ,, - , - ,( - . other /,(1, ,1,1,, ,,/(, - 1,1$,$ ,1, ,1(,,/, - . Other securities ,1(, - - ,1(, ,$((,(, - - ,$((,(, . structured ------. other ,1(, - - ,1(, ,$((,(, - - ,$((,(, Total ,($,($ ,1,1,, ,,$,/1 ,1(, ,$,1 ,1, ,1$,/1 ,$((,(,

Bonds include subordinated bonds issued by the Group totalling € /,(// thousand, none of which are convertible into shares. The "Level " column of point . reports the nominal value of certificates of deposit, the fair value of which has not been disclosed since these are short-term transactions. Embedded derivatives that satisfy the conditions laid down in IAS ( at the issue date for separation from the host contract at  September  show a net negative fair value of € ,,, thousand, recorded in liability caption ,.

. Analysis on caption  "Debt securities in issue": micro -hedged securities

.(. ..,

. Payables with fair value micro -hedge ,1,( ,(1,1 a) interest rate risk ,1,( ,(1,1 b) foreign exchange risk - - c) multiple risks - - . Payables with cash flow micro -hedge - - a) interest rate risk - - b) foreign exchange risk - - c) multiple risks - - Total ,1,( ,(1,1

$

Consolidated interim report on operations as at  September  Explanatory notes

Financial liabilities held for trading Caption %

,. Financial liabilities held for trading: breakdown by sector

Type of transaction% .(. .., Members of the NV FV FV* NV FV FV* group L L L L L L A. Cash liabilities . Due to banks  $ - - $ - - - - - . Due to customers , (,(  - (,( 1$ ,  - 1 . Debt securities ------. Bonds ------.. Structured - - - - c - - - - c .. Other bonds - - - - c - - - - c . Other securities ------.. Structured - - - - c - - - - c .. Other - - - - c - - - - c Total A , (,//,  - (,//1 1$ ,  - 1 B. Derivatives . Financial derivatives - ,(/ ,11( (,/,/ - - - ,,( (,11 - . For trading c ,(/ (,( (,/,/ c c - /,// (,11 c . Connected with the fair value option c - , - c c - ,$1 - c . Other c - ,,, - c c - ,,$ - c . Credit derivatives ------. For trading c - - - c c - - - c . Connected with the fair value option c - - - c c - - - c . Other c - - - c c - - - c Total B c ,(/ ,11( (,/,/ c c - ,,( (,11 c Total (AQB) c ,/ ,1/ (,/,/ c c , ,1 (,11 c

The caption "cash liabilities" concerns the balance of "technical shorts" generated by capital market transactions. The financial derivatives connected with the fair value option are mainly associated with debt securities classified as financial liabilities designated at fair value through profit and loss (liability caption ).

Key

FV Z fair value FV* Z fair value excluding variations due to changes in the creditworthiness of the issuer since the issue date NV Z notional or nominal value L Z Level  L Z Level  L Z Level 

(

Consolidated interim report on operations as at  September  Explanatory notes

Financial liabilities designed at fair value through profit and loss Caption 

. Financial liabilities designated at fair value through profit and loss: breakdown by sector

Type of .(. .., security%Amounts FV FV

NV L L L FV* NV L L L FV* . Due to banks ------. Structured - - - - c - - - - c . Other - - - - c - - - - c . Due to customers ------. Structured - - - - c - - - - c . Other - - - - c - - - - c . Debt securities $1,1 - $(,/ - $(,1/ ,1/,, - ,/,1, - ,/,, . Structured - - - - c - - - - c . Other $1,1 - $(,/ - c ,1/,, - ,/,1, - c Total $1,1 - $(,/ - $(,1/ ,1/,, - ,/,1, - ,/,,

Debt securities include subordinated bonds for a total of € (,/1 thousand, none of which are convertible into shares. The cumulative change in fair value attributable to the change in credit risk amounts to € ,,$(/ thousand; this change had a positive effect during the period of € ,$ thousand.

Key

FV Z fair value FV* Z fair value excluding variations due to changes in the creditworthiness of the issuer since the issue date NV Z notional or nominal value L Z Level  L Z Level  L Z Level 

Financial liabilities designated at fair value through profit and loss: use of the fair value option

Description%Amounts .(. Due to banks Due to Debt customers securities

a) Natural hedges using derivatives - - $(,/ b) Natural hedges using other financial instruments - - - c) Other cases of accounting mismatches - - - d) Financial instruments managed and measured at fair value - - - e) Structured products with embedded derivatives - - - Total - - $(,/



Consolidated interim report on operations as at  September  Explanatory notes

Hedging derivatives Caption (

1. Hedging derivatives: breakdown by type and by levels

Fair value .(. Fair value .., NV NV L L L L L L

A. Financial derivatives - ,$,1 - ,,( - ,($1 - $,,(( ) Fair value - 1,1 - (,( - ,, - (,(( ) Cash flows - ,1$ - , - $,/$1 - 1, ) Foreign investments ------B. Credit derivatives ------) Fair value ------) Cash flows ------Total - ,$,1 - ,,( - ,($1 - $,,((

The cash flow hedge agreements have the following expiry dates: notional value of €  million in / , €  million in , €  million in  and €  million in . The related cash flows will impact the income statement up to the relevant expiration dates.

Key

NV Z notional or nominal value L Z Level  L Z Level  L Z Level 

1. Hedging derivatives: analysis by hedged portfolio and type of hedge

Operation%Type of hedge Fair value Cash flows Specific

Specific General General Price risk Credit risk Foreign investments Exchange risk Multiple risks Interest rate risk . Financial assets available for sale ,, - - - - c ,1$ c c . Loans ,1/ - - c - c - c c . Financial assets held to maturity c - - c - c - c c ,. Portfolio c c c c c - c - c . Other operations - - - - - c - c - Total assets 1,1 - - - - - ,1$ - - . Financial liabilities - - - c - c - c c . Portfolio c c c c c - c - c Total liabilities ------. Expected transactions c c c c c c - c c . Portfolio of financial assets and liabilities c c c c c - c - -



Consolidated interim report on operations as at  September  Explanatory notes

Information on the consolidated income statement



Consolidated interim report on operations as at  September  Explanatory notes

Interests Captions  and 

. Interest and similar income: breakdown

Captions%Technical forms Debt Loans Other .(. .(., securities transactions . Financial assets held for trading (,($ - ,,/, ,,$ ,,$ . Financial assets designated at fair value through profit and loss /( - - /( ,(/ . Financial assets available for sale $,,$ - - $,,$ ,,1 ,. Financial assets held to maturity ,,,$(1 - - ,,,$(1 ,$ . Due from banks ,,$ ,/ - ,/ ,,(1 1. Loans to customers (,/ ,1(, - ,/$,,( ,,/1 /. Hedging derivatives c c ,, ,, ,,( $. Other assets c c ( ( ,/ Total ,$( ,/,( 1, ,,(,, ,,,,(

Default interest accrued in the period, but not reported as written down to zero, amounted to € ,(, thousand. Interest on positions classified as bad loans was collected for an amount of € ,,( thousand. Interest income with a negative balance of €  thousand has been recorded as commission expense.

., Interest and similar expense: breakdown

Captions%Technical forms Debts Securities Other .(. .(., transactions . Due to Central Banks ,/ c - ,/ 1,, . Due to banks $,1/, c - $,1/, ,, . Due to customers ,,/ c - ,,/ $$,/ ,. Debt securities in issue c 11,($ - 11,($ ,,/1 . Financial liabilities held for trading $$ - - $$ 1( 1. Financial liabilities designated at fair value through profit and loss - ,/ - ,/ 11,/$ /. Other liabilities and provisions c c $ $ / $. Hedging derivatives c c - - - Total /,, (/,1$ $ ,,$, ,/1,,

Interest expense with a positive balance of € ,/ thousand, relating in particular to repurchase agreements, has been recorded as commission income.

,

Consolidated interim report on operations as at  September  Explanatory notes

Commissions Captions % and 

. Commission income: breakdown

Type of service%Amounts .(. .(.,

a) guarantees given , /,, b) credit derivatives - - c) management, brokerage and consulting services: /, /,,, . trading in financial instruments ,, ,1 . trading in foreign exchange ,, ,(/, . asset management 1, ,,$$ .. individual 1,( ,,1 .. collective ( // ,. custody and administration of securities ,$ ,/( . custodian bank - - 1. placement of securities $$,1( (, /. order taking , ,1 $. advisory services ,,( $/ $. regarding investments - - $. regarding financial structuring ,,( $/ (. distribution of third-party services ,,1(1 ,,,/ (. asset management ,/ , (... individual  ( (... collective ,1( $/1 (. insurance products (,, 1,1( (. other products ,(, , d) collection and payment services (1,1( ,$$, e) servicing related to securitisation  , f) services for factoring transactions 1,$$ 1,, g) tax collection services - - h) management of multilateral trading systems - - i) maintenance and management of current accounts $,, ,,$ j) other services ,/,$ ,$( - commission income on other loans to customers ,$ ,$ - commission income on cash card services (, $,/1 - other commission income ,( ,( Total 1,, ,11



Consolidated interim report on operations as at  September  Explanatory notes

. Commission expense: breakdown

Type of service%Amounts .(. .(.,

a) guarantees received ,$1 ,(,( b) credit derivatives - - c) management and brokerage services ,$$ ,(/ . trading in financial instruments 1$ ( . trading in foreign exchange / 1 . asset management: - - .. own portfolio - - .. third-party portfolio - - ,. custody and administration of securities ,, , . placement of financial instruments   1. offer of securities, financial products and services through financial promoters - - d) collection and payment services ,( ,,/1 e) other services ,( , Total /,,, $,/

1

Consolidated interim report on operations as at  September  Explanatory notes

Net trading income Caption .

,. Net trading income: breakdown

Transactions%Income items Capital Trading Capital Trading Net result gains profits losses losses

(A) (B) (C) (D) .(. [(AQB) - (CQD)] . Financial assets held for trading ,1 $,$1 ((,() (,/() /, . Debt securities ,($, ,$,/ (,,$) (,,/) (,1$$) . Equity instruments 1,($/ ,,/ (,/) (1,) $,( . UCITS units ,1( $// (,11) -  ., Loans - - - - - . Other - , - - , . Financial liabilities held for trading - - - - - . Debt securities - - - - - . Debts - - - - - . Other - - - - - . Other financial assets and liabilities: exchange differences c c c c , ,. Derivatives $,, $,// (/,,,) ($,) (,11/) ,. Financial derivatives: $,, $,// (/,,,) ($,) (,11/) - On debt securities and interest rates ,, $,$, (,,(,/) ($,() ,/$ - On equities and equity indices , ,,$( (,,(,) (,$) () - On currency and gold c c c c (,,,) - Other - - - (,) (,) ,. Credit derivatives - - - - - Total ,$,1 (,,1 (,1,) ($$,/() ,,((

/

Consolidated interim report on operations as at  September  Explanatory notes

Net Hedging gains (losses) Caption 2

. Net hedging gains (losses): breakdown

Income items%Amounts .(. .(.,

A. Income relating to: A.. Fair value hedges ,( $,( A.. Hedged financial assets (fair value) ,$ ,,,( A.. Hedged financial liabilities (fair value) ,  A.,. Cash flow hedges - - A.. Foreign currency assets and liabilities - - Total income from hedging activity (A) 1,,$ (,// B. Charges relating to: B.. Fair value hedges 1,/ ,1,, B.. Hedged financial assets (fair value) ,1  B.. Hedged financial liabilities (fair value) $ /,$ B.,. Cash flow hedges - - B.. Foreign currency assets and liabilities - - Total charges from hedging activity (B) /,$ $,(/ C. Net hedging gains (losses) (A -B) (/(() $

$

Consolidated interim report on operations as at  September  Explanatory notes

Gains (Losses) on disposal or repurchase Caption 

1. Gains (losses) on disposal or repurchase: breakdown

Caption%Income items .(. .(., Gains Losses Net Profit Gains Losses Net Profit Financial assets . Due from banks  -  / ()  . Loans to customers ,$ (,1) ,, ,($ (,1/) ((,1$) . Financial assets available for sale: /1,(1 (,/) 1,11 ,1, (,/) ,1/ . Debt securities 1(,/$ (,$$) $,( ,$,( () ,$,(/ . Equity instruments ,$// (,,) ,/1 1,, () 1,,( . UCITS units ,/$ ($) ,/ / - / ., Loans ------,. Financial assets held to maturity  (() $ - - - Total assets $,$ (,,) 1$,( /,//1 (,/() 1,/ Financial liabilities . Due to banks ------. Due to customers ------. Debt securities in issue 1 (,,1) (() $, ($,) - Total liabilities 1 (,,1) (() $, ($,) -

(

Consolidated interim report on operations as at  September  Explanatory notes

Net result on financial assets and liabilities designated at fair value Caption 

/. Net result on financial assets and liabilities designated at fair value: breakdown

Transactions% Capital Gains on Capital Losses on Net result Income components gains disposal losses disposal

(A) (B) (C) (D) .(. [(AQB) - (CQD)] . Financial assets ,1( ($ (,(/) (() ($() . Debt securities ,  () ($) (, . Equity securities  - - () () . UCITS units ,, $$ (,$) - () ., Loans - - - - - . Financial liabilities ,$ 1,/1 (,/$) - /,( . Debt securities ,$ 1,/1 (,/$) - /,( . Due to banks - - - - - . Due to customers - - - - -

. Other financial assets and liabilities: exchange differences c c c c , ,. Derivatives / , (,/) (,) (1,1$() Total ,( /,$ ($,1) (,/) /

The net result of the measurement of financial liabilities at fair value and of derivatives connected operationally (fair value option for financial liabilities) is € ( thousand.



Consolidated interim report on operations as at  September  Explanatory notes

Net impairment adjustments Caption 

$. Net impairment adjustments to loans and advances: breakdown

Transactions%Income Adjustments Write -backs .(. .(., items Specific Specific Portfolio

backs backs

- - offs - Portfolio Other Interest Interest Write Other write Other write

A. Due from banks - (/,$$() - - - - - (/,$$() () - Loans ------Debt securities - (/,$$() - - - - - (/,$$() () B. Loans to customers (,) (/1$,,) (,,) (1,1 1$,1, - ,1$ (,/,$) (/(,($) Non-performing exposures acquired ------Loans - - c - - c c - - - Debt securities - - c - - c c - - Other receivables (,) (/1$,,) (,,) (1,1 1$,1, - ,1$ (,/,$) (/(,($) - Loans (,) (/1$,,) - (1,1 1$,1, - ,1$ (,,,/,) ($,1) - Debt securities - - (,,) - - - - (,,) , C. Total (,) (//,() (,,) (1,1 1$,1, - ,1$ (,,,$(/) ($,$$)

$. Net impairment adjustments to financial assets available for sale: breakdown

Transactions% Adjustments Write -backs .(. .(., Income items Specific Specific Write -Offs Other Interest Other write -backs

A. Debt securities ------B. Equity instruments - (,) c c (,) (,) C. UCITS units - (,,() c - (,,() (/$) D. Due from banks ------E. Loans to customers ------F. Total - (1,,1) - - (1,,1) (,,)



Consolidated interim report on operations as at  September  Explanatory notes

$., Impairment losses on other financial assets: breakdown

Transactions % Adjustments Write -backs .(. .(., Income items Specific Specific Portfolio

offs - backs backs - - Portfolio Other Other Other Interest Interest Write write write

A. Guarantees given - (1,,$) - - ,$1 - ,11 (,,11) (1,) B. Credit derivatives ------C. Commitments to disburse funds ------D. Other transactions ------E. Total - (1,,$) - - ,$1 - ,11 (,,11) (1,)

Administrative expenses Caption .

. Payroll: breakdown

Type of expense% .(. .(., amounts ) Employees 1,1 $,,/ a) wages and salaries ,,( ,,,/1/ b) social security charges 1,/ ,,(/ c) termination indemnities ,1 ,1, d) pension expenses - - e) provision for termination indemnities ,1( ,,,/$ f) provision for post-retirement benefits and similar commitments: 11 ( - defined contribution - - - defined benefit 11 ( g) payments to external supplementary pension funds: ,( ,(, - defined contribution ,( ,(, - defined benefit - - h) costs deriving from payment agreements based on own capital instruments - - i) other personnel benefits 1,$1/ ,,1 ) Other active employees , (,,(1 ) Directors and auditors 1, $, ,) Retired personnel 1( ,$ Total 1$,/( //,(

"Other personnel benefits" include extraordinary provisions for voluntary redundancies and the Solidarity Fund for € . million, as a result of signing the agreement with the Trade Unions on , August  as part of the -/ Business Plan, in addition to € .$ million already accounted for at  June .



Consolidated interim report on operations as at  September  Explanatory notes

. Average number of employees, by level

.(. .(.,

Employees: ,$$ ,,/ a) Managers   b) Middle managers ,,/$ ,, c) Other employees /,$ /,$ Other personnel / (

.. Number of employees, by level: Banking group

.(. .(.,

Employees: ,, ,1 a) Managers /  b) Total rd and ,th level middle managers ,,/ ,, c) Total st and nd level middle managers ,/ ,( d) Other employees /,11/ /,$1 Other personnel $ 



Consolidated interim report on operations as at  September  Explanatory notes

. Other administrative expenses: breakdown

.(. .(.,

Taxation 1,( /,((/ Stamp duty $(,/$/ (,1 Other indirect taxes with right of recourse ,,1 ,/1$ Municipal property tax 1,(1 /, Other , ,$/ Other costs /(,/ $,,$( Maintenance and repairs $,1 1,, Rental expense ,,1/ ,,1 Post office, telephone and telegraph ,( 1,1( Data transmission fees and use of databases ,1 ,,$ Advertising (,/ (, Consulting and other professional services ,,( ,,, Lease of IT hardware and software $,/ $,/ Insurance /,( /,1 Cleaning of office premises 1,,, 1,$$ Printing and stationery /,$ 1,1( Energy and fuel ,, ,,,(/ Transport ,, ,/ Staff training and expense refunds (,(/ ,$$ Information and surveys $,1 $,/ Security /, /,/ Use of external data gathering and processing services ,, ,,/,, Membership fees ,// ,/1 Condominium expenses ,( ,/ Sundry other ,,/(/ 1,(, Total $1,, (,,$1

The amount relating to "Consulting and other professional services" of € ,. million is attributable to sundry administrative expenses for legal services and for other professional advisors for advice on specific regulations and for the provision of support and advice on matters concerning changes in legislation, the internal control system and the - / Business Plan. Details are as follows: - services provided by various legal advisors, particularly for various types of litigation, for € .1 million; - professional services provided by various firms, regarding the execution of a number of funding transactions completed in the period (issue of covered bonds, update and issues pertaining to the Euro Medium Term Notes programme, etc.), for the audit of the Financial statements, to obtain ratings from different agencies, for specific valuation work performed for financial statement purposes (specific appraisals, Comprehensive Assessment) for €  million; - other sundry professional services (for example, appraisals and other technical support) for € 1. million; - sundry advice in respect of continuous changes in legislation, improvements to the system of internal control and projects foreseen by the -/ Business Plan. This, in fact, is truly an investment for the future as can be seen, for example, by the work performed in particular for the overall operational development of the adoption of internal models of credit risk and the new Regulations for the prudential supervision of banks referred to in Circular no. 1 of the Bank of Italy. The total of this type of expense came to € ., million.

,

Consolidated interim report on operations as at  September  Explanatory notes

Other operating charges5income Caption 

. Other operating charges: breakdown

Description%Amounts .(. .(.,

Loss on disposal of leased assets - $,( AmortisationReimbursement of leaseholdof interest improvement for collections expenditure and payme nts settled through the ,/1$ - ,,$, - Out-of-period expense ,( 1,, Other ,,1 ,1 Total (,( ,//

. Other operating income: breakdown

Description%Amounts .(. .(.,

Rental income ,$1 /, Recovery of taxes (,, (,$$1 GainsRecovery on disposalof interest of forfixed collections assets given and under payments finan settledce leases through the clearing ,1 - , - Other income 1,$1 /1,,, Total 1,,( $,/



Consolidated interim report on operations as at  September  Explanatory notes

Earnings per share

IAS  requires disclosure of basic and diluted earnings per share (EPS), specifying how each is calculated. Basic earnings per share reflect the relationship between: • the earnings attributable to ordinary shareholders; • and the weighted average number of shares outstanding during the period.

Diluted earnings per share reflect the relationship between: • the earnings used to calculate basic EPS, as adjusted by the economic effects of converting all outstanding convertible bonds into shares at period end; • the number of shares in circulation used to calculate basic EPS, as adjusted by the weighted average of the potential ordinary shares with a diluting effect deriving from the conversion of bonds outstanding at period end.

.(. .(.,

Attributable Weighted Earnings Attributable Weighted Earnings earnings average per shares earnings average per share ordinary (Euro) ordinary (Euro) shares shares

Basic EPS $,$1 ,$,$,(// ./ 1,,( ,,/1,( .// Diluted EPS $,$1 ,$,$,(// ./ 1,,( ,,/1,( .//

1

Consolidated interim report on operations as at  September  Explanatory notes

Information on risks and related hedging policy

/

Consolidated interim report on operations as at  September  Explanatory notes

Credit risk

QUALITATIVE INFORMATION

Forborne exposures

In October  the EBA released its "EBA FINAL draft Implementing Technical Standards" relating to the definition of non-performing exposures and forbearance. Forbearance measures (or "concessions") are the modification of the terms and conditions of a contract or its refinancing, granted to a counterparty in financial difficulties that could have negative effects on its ability to meet its originally assumed contractual commitments and that would not have been granted to another borrower with a similar risk profile not in financial difficulties. An amendment has been made for the enforcement of covenants in the event of default, where this amounts to a new concession. Concessions are to be identified at the level of each forborne exposure and may relate to exposures to borrowers classified as both performing and non-performing. In any case, renegotiated exposures should not be considered forborne when the borrower is not in financial difficulties. For example, measures considered to be forbearance are concessions relating to non- performing exposures (or which would have become so in the absence thereof), refinancing used by customers to reimburse other exposures previously classified as non-performing and contractual amendments that lead to total or partial derecognition of the debt; by definition, restructured loans are considered to be forborne exposures. The BPER Group, which is ever ready to consider measures to facilitate the credit monitoring process, has supplemented Group Policy for Credit Risk Governance, by introducing the definition of forbearance in compliance with the requirements of the new EBA%ITS%.

Gross exposures in forbearance as at  September 

(in millions of Euro) Balance Off -balance Total Status sheet exposures sheet exposures exposures non-performing ,1( 1, ,/ performing , 1 ,/ Total ,1,( ( ,//$

Provisions on exposures in forbearance as at  September 

(in millions of Euro)

Provisions on balance Provisions on off -balance Total Status sheet exposures sheet exposures provisions

non-performing , - , performing / - / Total / - /

$

Consolidated interim report on operations as at  September  Explanatory notes

QUANTITATIVE INFORMATION

A. Credit Quality

A. Non -performing and performing exposures: amounts, adjustments, trends, economic and territorial distribution

A.. Distribution of credit exposure by portfolio and quality of lending (book values)

Portolio%Quality Banking group Other businesses

Total loans loans perfoming - Others Bad Loans exposures Other assets Non Impaired past due Unlikely to pay loans Not impaired past due . Financial assets held for trading - - - - /,(, - - /,(, . Financial assets available for sale - - - - /,1,,// - - /,1,,// . Financial assets held to maturity - - - - ,,,,/ - - ,,,,/ ,. Due from banks  , - - ,$1,/$ - - ,$$,(1 . Loans to customers ,(11,,( ,,,( ,1$( ,,/,, ,$,,1, - - ,,,,(,/$ 1. Financial assets designated at fair value through profit and loss - - - - 1,/ - - 1,/ /. Financial assets being sold ------$. Hedging derivatives - - - - ,1, - - ,1,

Total .(. ,(11,/ ,,/, ,1$( ,,/,, ,/,111,1 - - ,/,

Total .., ,$(,($ ,,,( (,/ ,1$,,, ,/,,1 - , ,(,

(

Consolidated interim report on operations as at  September  Explanatory notes

A.. Distribution of credit exposures by portfolio and quality of lending (gross and net values)

Portfolio%Quality Non -performing exposures Performing exposures Total

Specific provisions provisions Net exposure Net exposure (Net exposure) Gross exposure Gross exposure General portfolio

A. Banking group

. Financial assets held for trading - - - /,(, c /,(, /,(,

. Financial assets available for sale - - - /,1,,// - /,1,,// /,1,,//

. Financial assets held to maturity - - - ,,,,/ - ,,,,/ ,,,,/

,. Due from banks ,(/ (,(/ ,/ ,$1,/(  ,$1,/$ ,$$,(1

. Loans to customers ,$,/, ,,/(,,$/ 1,(,$/ /,1,1 ,$1 1,$(,(1 ,,,,(,/$ 1. Financial assets designated at fair value through profit and loss - - - 1,/ c 1,/ 1,/

/. Financial assets being sold ------

$. Hedging derivatives - - - ,1, c ,1, ,1,

Total A ,(/,/ ,,$,,/ 1,(,$, ,(,,,,/$ ,$1 ,(,,,// ,/, B. Other consolidated companies

. Financial assets held for trading - - - c c - -

. Financial assets available for sale ------

. Financial assets held to maturity ------

,. Due from banks ------

. Loans to customers ------1. Financial assets designated at fair value through profit and loss - - - c c - - /. Financial assets being sold ------

$. Hedging derivatives - - - c c - -

Total B ------

Total .(. ,(/,/ ,,$,,/ 1,(,$, ,(,,,,/$ ,$1 ,(,,,// ,/,

Total .., ,,/1 ,,,/,$ 1,1,$( ,(,, ,/ ,$,/(,, ,(,

Derecognised non-performing loans to customers involved in insolvency proceedings amount to € ,$, thousand. As also indicated in paragraph ,. of the Group interim report on operations, for the purpose of determining the actual level of coverage of non-performing loans the above mentioned derecognised loans need to be taken into account.

,

Consolidated interim report on operations as at  September  Explanatory notes

A.. Banking group - Cash and off -balance sheet exposures to banks: gross and net values

Type of exposure%Amounts Gross Specific General Net exposure exposure provisions portfolio provisions

A. Cash exposures

a) Bad loans , , c  b) Unlikely to pay loans (,(1, /,/( c , c) Past due loans impaired - - c - d) Other assets ,,,,( c  ,,,,$( Total A ,,,,,$/ (,(/  ,,,,1 B. Off -balance sheet exposures

a) Non-performing exposures - - c - b) Others /,,$ c - /,,$ Total B /,,$ - - /,,$ Total (AQB) ,1/,$ (,(/  ,/,/

The following review of doubtful loans makes reference to the new “unlikely to pay" category, rather than to watchlist and restructured loans, as required by the new supervisory regulations (in particular, Bank of Italy Circular no. / – /th amendment dated  January ) that took effect from  January .

A.., Banking group - On -Balance Sheet credit ex posures to banks: gross change in non - performing exposures

Description%categories Bad loans Unlikely to pay Past due loans loans

A. Opening balance - gross exposure ,// - - - of which: assets sold but not derecognised - - - B. Increases - (,(1, - B. transfers from performing exposures - (,(1, - B. transfer from other non-performing exposure categories - - - B. other increases - - - C. Reductions ,, - - C. transfers to performing exposures - - - C. derecognised items - - - C. recoveries - - - C., sales proceeds - - - C., bis losses from disposal - - - C. transfer to other non-performing exposure categories - - - C.1 other reductions ,, - - D. Gross exposure closing balance , (,(1, - - of which: assets sold but not derecognised - - -

With regard to the new category of "unlikely to pay loans", reference is made to the note accompanying table A...

,

Consolidated interim report on operations as at  September  Explanatory notes

A.. Banking group - Balance Sheet credit exposures to banks: change in overall impairments

Description%categories Bad loans Unlikely to pay Past due loans loans

A. Opening gross write -downs , - - - of which: assets sold but not derecognised - - - B. Increases  /,/( - B. write-downs  /,/( - B. bis lost from disposals - - - B. transfer from other non-performing exposure categories - - - B. other increases - - - C. Reductions /, - - C. write-backs from assessments - - - C. write-backs from recoveries - - - C. bis profit from disposals - - - C. write-offs - - - C., transfer to other non-performing exposure categories - - - C. other reductions /, - - D. Final gross write -downs , /,/( - - of which: assets sold but not derecognised - - -

With regard to the new category of "unlikely to pay loans", reference is made to the note accompanying table A...

A..1 Banking group - Cash and off -balance sheet credit exposures to customers: gross and net values

Type of exposure%Amounts General Gross Specific Portfolio Net exposure exposure provisions provisions

A. Cash exposures

a) Bad loans 1,$1(,/$ ,(,, c ,(11,,( b) Unlikely to pay loans ,,1,,1/ $1,($ c ,,,( c) Past due loans impaired ,(,(/ /,$ c ,1$( d) Other assets ,,,1/,( c ,$1 ,,,,1$,/ Total A 1,/,( ,,/(,,$/ ,$1 ,$,11 B. Off -Balance Sheet exposure

a) Non-performing exposures ,$, ,, c 1$,$ b) Others ,,,$(/ c (,/1 ,,1,$ Total B ,,/,/, ,, (,/1 ,,/,1,, Total (AQB) 1,$,,$,( ,,$/,1/ ,(1 ,,,1

With regard to the new category of "unlikely to pay loans", reference is made to the note accompanying table A...

,

Consolidated interim report on operations as at  September  Explanatory notes

A../ Banking group - Cash credit exposures to customers: dynamics of gross impaired loans

Description%categories Unlikely to pay Bad loans Past Due loans loans A. Opening gross exposure 1,,$/,,( ,,,/,( (,( - of which: sold but not derecognised ,, - - B. Increases /$,/ ,,,($1 ,,,,11 B. transfers from performing exposures ,, ,,( /,$1 B. transfers from other categories of non-performing exposures ,,,$( /,$ (,((/ B. other increases $1,(// ,,,$ (1,$ C. Decreases 1,, ,1$,1$ ,(, C. transfers to performing exposures ,/( ($,1$ 1(,$(( C. write-offs 1,11 (,/$ - C. collections (1, $$,1 ,(/ C., proceeds from disposals ,,,(( ,,$ $ C., bis losses from disposals $, , - C. transfers to other categories of non-performing exposures ,,/ ,$ ,(1 C.1 other decreases $,($ ,$, $( D. Closing gross exposure 1,$1(,/$ ,,1,,1/ ,(,(/ - of which: assets sold but not derecognised ,, - -

With regard to the new category of "unlikely to pay loans", reference is made to the note accompanying table A...

A..$ Banking group - Cash credit exposures to customers: dynamics of total write -downs

Description%categories Unlikely to pay Bad loans Past Due loans loans A. Total opening adjustments ,11$,,( /$1,( 1,$$$ - of which: sold but not derecognised ,, - - B. Increases 1/,, 1/, $, B. adjustments ,,$, $, ,,1 B. bis loss from disposals ,1 - - B. transfer from other categories of non -performing exposures ,,1$$ $,,( ,/1( B. other increases /,1, 1, ,/1 C. Reductions ,( $(,,1, $, C. write-backs on valuation 1,/ (,1 , C. write-backs due to collections /,$ $,,$/ ,/ C. bis profit from disposals ,1  - C. write-offs 1,11 (,/$ - C., transfer to other categories of non-performing exposures 1/ 1,,$ (,$$ C. other decreases ,/,( , $$ D. Total closing adjustments ,(,, $1,($ /,$ - of which: sold but not derecognised ,, - -

With regard to the new category of "unlikely to pay loans", reference is made to the note accompanying table A... The adjustments (B.) include default interest accrued in the period, but which has been fully written down (€ ,(, thousand).

,

Consolidated interim report on operations as at  September  Explanatory notes

A. Distribution of guaranteed exposures by type of guarantee

A.. Banking group - Guaranteed credit exposures to banks

Real guarantees ()

mortgages

- Amount of net exposure Securities guarantees finance leases Other secured Properties under Property . Guaranteed cash exposures: ,( - - , - .. fully guaranteed ,1,, - - , - - of which: non -performing exposures - - - - - .. partially guaranteed ,1 - - - - - of which: non -performing exposures - - - - - . Guaranteed off -balance sheet credit exposures: ,($ - - - - .. fully guaranteed ,($ - - - - - of which: non -performing exposures - - - - - .. partially guaranteed ------of which: non -performing exposures - - - - -

(cont.)

Personal guarantees () Credit derivatives Endorsement credits

Other derivatives

Total

()Q()

CLN Banks Banks central banks Other parties central banks Other parties Governments and Other public entities Governments and Other public entities . Guaranteed cash exposures: - - - - - ,/ - $1/ ,, ,$/ .. fully guaranteed - - - - - ,/ - $1/ // ,1, - of which: non -performing exposures ------.. partially guaranteed ------/ / - of which: non -performing exposures ------. Guaranteed off -balance sheet credit exposures: - - - - - ,, - / $, ,($ .. fully guaranteed - - - - - ,, - / $, ,($ - of which: non -performing exposures ------.. partially guaranteed ------of which: non -performing exposures ------

,,

Consolidated interim report on operations as at  September  Explanatory notes

A.. Banking group - Guaranteed credit exposures to customers

Real guarantees ()

mortgages

- Securities guarantees finance leases Other secured Properties under Amount of net exposure Property

. Guaranteed cash exposures: ,1$,$, $,1,$1 ,,(,/(( ,,$ ,1,,,1 .. fully guaranteed $,1,( /,,((,( ,,(,/(( $($,( ,1/,11/ - of which: non -performing exposures ,,,(1 ,,/1 1(,,, 1,$$ ,,1($ .. partially guaranteed ,,,, 1/,(, - /,1 ,/($ - of which: non -performing exposures 1/(,1 ,(,(1/ - (,1/ ,11 . Guaranteed off -balance sheet credit exposures: ,/,,$ 1,,,,( - ,(1, /,11 .. fully guaranteed $,/ ,$ - $,,11 ,,( - of which: non -performing exposures ,,, ,,/ - ,1$ ,, .. partially guaranteed /,/ ,,1$ - ,,($ /,1 - of which: non -performing exposures ,(( 1$/ - 1, 

(cont.)

Personal guarantees () Credit derivatives Endorsement credits

Other derivatives Total

()Q()

CLN Banks public entities Banks entities central banks Other parties Other public central banks Other parties Governments and Other Governments and . Guaranteed cash exposures: - - - - - //,, ,(,/ //,1 ,((,,$1 /,,/1,1 .. fully guaranteed - - - - - ,11 ,(/ 1, ,,, 1$,1$,1 - of which: non - performing exposures - - - - - ,,( $,1, ,/ $,,, ,,,// .. partially guaranteed - - - - - 11,/( $,1 ,, 1(,,11 ,/(,$ - of which: non - performing exposures - - - - - 1,$ /,($1 ,( ,$/1 /,$ . Guaranteed off - balance sheet credit exposures: - - - - - ,( ,,1/ ,, $(,$ ,1,/ .. fully guaranteed - - - - -  ,$( ,/, 1(, $1/,,, - of which: non - performing exposures ------/,1 (,, $,( .. partially guaranteed - - - - - , /, ,,( , (,$( - of which: non - performing exposures - - - - - 1/ - - /,$ (,

,

Consolidated interim report on operations as at  September  Explanatory notes

Information on consolidated shareholders’ equity

,/

Consolidated interim report on operations as at  September  Explanatory notes

Consolidated shareholders’ equity

QUALITATIVE INFORMATION

Group shareholders' equity comprises share capital and all types of reserve, together with the net profit for the period.

QUANTITATIVE INFORMATION

B. Consolidated shareholders' equity: breakdown by business type

Captions Banking Insurance Other Consolidation .(. group companies businesses adjustments and eliminations Share capital ,,,1 - - (,1,11) ,,,/1 Share premium ,1,1 - - ($$,() (/,/ Reserves ,,(,(1 - - ($,$1) ,/1,, Interim dividends - - - - - Equity instruments - - - - - (Treasury shares) (/,1) - - () (/,$) Valuation reserves $,111 - - $,11 (,,( - Financial assets available for sale ,/,( - - ,1/( ,( - Property, plant and equipment ------Intangible assets ------Foreign investments hedges ------Cash-flow hedges ,/, - - - ,/, - Exchange differences ------Non -current assets and disposal groups held for sale ------Actuarial gains (losses) on defined-benefit pension plans (,,(1/) - - - (,,(1/) - Portion of valuation reserves relating to investments carried at equity - - - ,( ,( - Special revaluation laws ,,/ - - - ,,/ - Other (1,$) - - $ (1,) Profit (L oss) for the period pertaining to the Group and minority interests /,( - - ((,() $$,/,, Consolidated shareholders' equity /,,$ - - (,$,() ,/1,/

,$

Consolidated interim report on operations as at  September  Explanatory notes

B. Valuation reserves for financial assets available for sale: breakdown

Assets%Amount Banking group Insurance Other Consolidation companies businesses adjustments and eliminations .(.

Positive Negative Positive Negative Positive Negative Positive Negative Positive Negative reserve reserve reserve reserve reserve reserve reserve reserve reserve reserve

. Debt securities $,(1 ,$ - - - - (,1) - $,$1 ,$ . Equity instruments ,/ $,/$ - - - - () (,,/) ,1($ ,,,$/ . UCITS units ,( ,(1( - - - - - (,,/() ,( ,,,( ,. Loans ------Total  /,$ ,(( - - - - (/) (,/) /,/ ,( Total , $,(1 /, - - - - (1) - $,, /,

The valuation reserve for financial assets available for sale at  September  has a positive net balance of € ,( thousand; at  December , it had a positive balance of € ,$ thousand. The net reserve for government debt securities amounts to € $,,, thousand.

,(

Consolidated interim report on operations as at  September  Explanatory notes

Own Funds and capital adequacy ratios

Scope of application and regulations

The new harmonised rules for banks and investment companies contained in Regulation (EU) no. /% (CRR) and in the 1%1%EU Directive (CRD IV) entered into force in ,. The new regulatory framework, which is the only set of rules that seeks to harmonise prudential regulations of the Member States of the European Community, was made applicable in Italy by the Bank of Italy's Circular no. $, published on / December  and subsequent amendments. This new Circular brings together provisions that were contained in Circular no. 1 of / December 1 and Circular no. ( of  April (((.

The Bank’s Own Funds

QUALITATIVE INFORMATION

The elements of Own Funds are: • Common Equity Tier  capital - CET; • Additional Tier  capital - AT; • Tier  capital - T.

CET and AT constitute Total Tier  Capital, which added to T leads to the determination of Own Funds.

. Common Equity Tier  capital (CET) Common Equity Tier  capital (CET) is made up of positive and negative elements: • Share capital and related share premiums; • Revenue reserves; • Positive and negative valuation reserves (from OCI); • Other reserves; • CET instruments subject to transitional provisions ("grandfathering"); • Minority interests; • Prudential filters; • Deductions.

Prudential filters are positive or negative adjustments of CET, their purpose being to stabilise the balance sheet aggregate of reference as much as possible, reducing the potential volatility. The prudential filters exclude from CET the valuation reserve generated by cash flow hedges and gains%losses arising from changes in own creditworthiness (liabilities under the fair value option and derivative liabilities).



Consolidated interim report on operations as at  September  Explanatory notes

Deductions are negative elements of CET such as goodwill, intangible assets and other accounting items that directly reduce the Tier  capital component.

On a fully phased basis (Fully Phased), the equity instruments listed above have to meet clearly defined requirements (art. $ CRR): • they must be classified as equities for accounting purposes; • they must have a perpetual duration, i.e. not have any maturity; • they must not be subject to obligations in terms of remuneration; • they must not be subject to distribution caps; • any cancellation of distributions must not result in any kind of restriction on the issuer; • they must be the first to absorb business losses as soon as they occur; • they are the most subordinated instruments in the event of bankruptcy or liquidation of the entity in question; • they must not enjoy any form of guarantee or contractual clause that can raise their level of seniority.

. Additional Tier  capital (AT) Additional Tier  Capital (AT) consists of the following positive and negative elements: • Equity instruments and related share premiums; • AT instruments subject to transitional provisions ("grandfathering"); • Instruments issued by affiliates and included in AT; • Deductions.

On a fully phased basis (Fully Phased), the equity instruments listed above have to meet clearly defined requirements (art. 1 CRR): • the instruments must be issued or the loans granted and fully paid up; • the purchase of instruments or the assignment of subordinated loans cannot be paid for by the entity, neither directly nor indirectly; • the capital receivable for these instruments or subordinated loans is fully subordinated to the receivables of all unsubordinated creditors; • the instruments or subordinated loans are not hedged or covered by a guarantee that allows the receivable's ranking to be increased by the entity or its subsidiaries, parent company and any company that has close links with the entity; • the instruments or subordinated loans are not subject to any provision that allows the receivable's ranking to be increased in any other way; • the instruments or subordinated loans must have an original maturity of at least five years; • the provisions governing the instruments or subordinated loans must not contain any incentive that encourages the entity to reimburse or repay the principal amount prior to maturity; • if the instruments or subordinated loans include one or more call or early repayment options, these may be exercised at the sole discretion of the issuer or obligor; • the instruments or subordinated loans cannot be repaid or repurchased or repaid in advance earlier than five years from the date of issue or assignment;



Consolidated interim report on operations as at  September  Explanatory notes

• the provisions governing the instruments or subordinated loans must not indicate, expressly or implicitly, that they shall or may be redeemed, repurchased or repaid in advance by the entity in cases other than those of insolvency or liquidation; • the provisions governing the instruments or subordinated loans must not give the holder the right to accelerate future scheduled payments of interest or principal, except in the event of insolvency or liquidation; • the level of payments of interest or dividends due on these instruments or subordinated loans cannot be changed on the basis of the creditworthiness of the entity or its parent company.

At  September  the instruments included in this category relate to investments that involve minority interests, which are subject to transitional arrangements: specifically, they comprise the preferred and savings shares issued by Banco di Sardegna s.p.a.

. Tier  capital (T) Tier  capital (T) consists of the following positive and negative elements: • Equity instruments, subordinated loans and related share premiums; • T instruments subject to transitional provisions ("grandfathering"); • Instruments issued by affiliates and included in T; • General adjustments; • Deductions.

On a fully phased basis (Fully Phased), the equity instruments listed above have to meet clearly defined requirements (art. 1 CRR): • the instruments must be issued%assigned and fully paid up; • the assignment of the instrument cannot be financed by the entity, neither directly nor indirectly; • the capital receivable for these instruments has to be fully subordinated to the receivables of all unsubordinated creditors; • the instruments cannot be hedged, nor subject to any form of guarantee; • these instruments should not be subject to any provision that increases their credit ranking; • the instruments must have an original maturity of at least five years; • the provisions governing these instruments must not contain any kind of incentives that encourage the entity to reimburse or repay the principal prior to maturity; • in the event that the instruments include in their rules one or more call or early repayment options, they can only be exercised at the discretion of the issuer or obligor; • the provisions do not give the holder the right to accelerate future scheduled payments, except in the event of the entity's insolvency or liquidation;



Consolidated interim report on operations as at  September  Explanatory notes

• these instruments can be reimbursed, also in advance, but only in that the event that the entity asks for prior authorisation from the competent authority, and not earlier than five years from the date of issue, except in the following cases: a) the entity of reference replaces the above instruments with other instruments of Own Funds of equal or higher quality, at conditions that are sustainable considering its earning capacity, b) the entity can demonstrate that it complies with the minimum capital requirements imposed by the regulations to the satisfaction of the competent authority.

At  September  the T instruments included the Group's subordinated loans covered by the grandfathering rules, since they were issued prior to the deadline of  December  identified by the regulations, together with the "Banca popolare dell’Emilia Romagna Subordinated Tier II ,.F %1%-%1% Callable" bond deriving from the voluntary public exchange offer that expired on  June .

Transitional arrangements The new regulations also provide for transitional arrangements ("Phased in"), during which the provisions contained in Circular no. $% Section II are gradually introduced. Their applicability to the capital requirements and grandfathering rules develops over a period of about , years (,-/), during which partial inclusion is replaced by the gradual exclusion of equity instruments that do not meet all the requirements of the CRR.

Regulatory requirements The Supervisory rules introduced by Circular no. $% require Italian banks belonging to banking groups to fully comply with the following minimum ratios for : • CET ratio of ,.F; • Tier  ratio of 1F; • Total Capital ratio of $F.

In addition to the mandatory requirements prescribed in the Regulations, the following requirements have also been added: • Capital Conservation Buffer (CCB): this consists of Common Equity Tier  capital, for an additional requirement of .F; • Countercyclical Capital Reserve: this is also made up of Tier  capital and must be accumulated in periods of economic growth against possible future losses on the basis of a specific coefficient established on a national basis; • Additional Reserves for so-called Global & Other Systemically Important Institutions (G-SII & O- SII): both consist of Tier  capital and make direct reference to entities of particular importance at a global or national level. The buffer for G-SII can vary between a minimum level of F and a maximum of .F, whereas the one for O-SII only provides for a non-binding maximum threshold of F; • Capital reserve for systemic risk: it is at least F of the related risk exposures and is established by each Member State; it is essentially used to mitigate the risk of non-cyclical macro-prudential long-term risk, i.e. to deal with the negative effects related to unexpected crises in the banking system.



Consolidated interim report on operations as at  September  Explanatory notes

The sum of regulatory requirements and additional reserves determine the minimum level of capital conservation required for banking groups at a consolidated level; for , that level is as follows: • CET ratio of /F; • Tier  ratio of $.F; • Total Capital ratio of .F.

At CONSOB's request, the Parent Company announced on 1 February  that it had received a communication from the European Central Bank (ECB) about its decision on the requirements of additional Own Funds and of specific capital ratios pursuant to art. 1 of EU Regulation no. ,%.

Based on the financial situation and risk profile of the BPER Group and the results of the Asset Quality Review (AQR) and Stress Test, the ECB has established minimum limits for the Common Equity Tier  (CET) ratio of (F and for the Total Capital ratio of F, with effect from .

Failure to comply with the minimum requirement based on the sum of these reserves ("Combined Requirement") leads to limitations on the distribution of earnings and the need to adopt a plan for the conservation of capital.

Conditions for the inclusion of interim or year-end earnings With reference to EU Regulation no. /% (CRR), on , February  the ECB issued a "Decision" published in the Official Journal of the European Union on  April , that laid down the procedures to be followed by banks under its direct supervision (EU Regulation no. ,1$%,) with regard to the inclusion in CET Capital of interim or year-end earnings before a formal decision is taken confirming the result.

They can only be included (art. 1 CRR) with the prior approval of the competent authority, which in this case is the ECB, and it will only give approval if the following conditions are met: • earnings must be checked and certified by the Independent Auditors; • the Bank must provide a specific declaration about the earnings with particular reference to the accounting standards applied and the inclusion of foreseeable charges and dividends. The latter have to be calculated according to specific methodologies as indicated. The "Decision" also provides a standard letter and certification form that the Banks have to use when asking for approval.

At  September , the value of capital was calculated taking into account the capitalisable portion of the net profit for the first half, Euro , million, equal to  bps, for which inclusion was approved by the ECB on  August . A pro-forma calculation was also made to take into account the third quarter net profit allocable to equity (Euro  million, equal to around  bp), as well as the effects of the sale of a (.,F stake in Istituto Centrale delle Banche Popolari Italiane (ICBPI): completion of this transaction, the preliminary contract for which was signed on ( June , is subject to authorisation from the competent Authorities, which is expected by the end of the year. The impact is currently put at around , bps.

,

Consolidated interim report on operations as at  September  Explanatory notes

QUANTITATIVE INFORMATION

.(. ..,

A. Common Equity Tier  capital (Common Equity Tier  - CET) before the application of prudential filters ,(,//$ ,,,// of which CET instruments subject to transitional provisions - - B. Prudential filters for CET (Q%-) ($,$) (,,) C. CET gross of items to be deducted and of transitional arrangements (AQ% -B) ,//,, ,,/ D. Items to be deducted from CET /,,$ $,1/ E. Transitional arrangements - Impact on CET (Q% -), including minority interests subject to transitional provisions /, ,,($

F. Total Common Equity Tier  - CET (C -DQ% -E) ,,//,(1 ,,$,1 G. Additional Tier  capital (AT) gross of items to be deducted and of transitional arrangements ,( (,/ of which AT instruments subject to transitional provisions - - H. Items to be deducted from AT ,,( ,/,( I. Transitional arrangements - Impact on AT (Q% -), including instruments issued by affiliates and included in AT following transitional provisions (( ,

L. Total Additional Tier  capital (Additional Tier  -AT) (G -HQ% -I) $, ,$1 M. Tier  Capital (T) gross of items to be deducted and of transitional arrangements ,$(,$ ,/ of which T instruments subject to transitional provisions (,, $, N. Items to be deducted from T - -

O. Transitional arrangements - Impact on T (Q% -), including instruments issued by affiliates and included in T following transitional provisions /,$ (,$/ P. Total Tier  capital (T) (M -NQ% -O) 1,,( $(,(( Q. Total own funds (FQLQP) ,$,,( ,,($,/(

The decision not to include unrealised profits or losses in any element of Own Funds, in connection with exposures versus Central Administrations classified in "Financial assets available for sale" in accordance with IAS ( as approved by the EU, resulted in a negative impact of € .( million, net of tax, on Tier  Capital.



Consolidated interim report on operations as at  September  Explanatory notes

Capital adequacy

QUALITATIVE INFORMATION

Particular importance is given to checking compliance with the capital adequacy requirements, both at CET level and in total. The responsible functions at the Parent Company perform this task on an ongoing basis, with the various departments involved (Group Finance and Capital Management, Group Risk Management and Group Head Office Administration and Financial Reporting Department) issuing regular reports as part of the broader process of verifying consolidated capital adequacy. The guidelines for this activity are stated in BPER Group's annual report on the verification of capital adequacy (ICAAP). This report identifies the functions, methodology and approach for measuring and assessing accepted risk on an ongoing basis, with a view to guiding operations and quantifying the capital required by the Group to cover the various risks accepted.

The new provisions have also introduced a new indicator for leverage. The Leverage Ratio (LR) measures the ratio between the volume of assets, including off balance sheet exposures, and the company's capital; the primary intent is to monitor the volumes being intermediated and the sustainability versus the balance sheet aggregate. The amounts shown below have been calculated according to the provisions specified in Regulation (EU) no. /%, as amended by the Commission Delegated Regulation (EU) no. %1. Changes in this indicator are monitored on a quarterly basis, both at an individual level (for the legal entities of the Group subject to these regulations) and at a consolidated level.

1

Consolidated interim report on operations as at  September  Explanatory notes

QUANTITATIVE INFORMATION

Description%Amounts Unweighted Weighted amounts amounts%Requirements .(. .., .(. ..,

A. Assets at risk A. Credit and counterparty risk 1,1,1,$, 1,,/ ,$,1, 1,(,,$ . Standardised methodology 1,,,/,$ 1,/$, ,,1(,/1 ,1,$,/$ . Methodology based on internal ratings - - - - . Basic - - - - . Advanced - - - - . Securitisations ((,, , $,$/$ ,,,$ B. Capital adequacy requirements

B. Credit and counterparty risk ,$1$, ,$$/,

B. Credit down-rating risk 1,$, ,,(/

B. Settlement risk

B., Market risk $,,(( /,/

. Standard methodology $,,(( /,/

. Internal models - -

. Concentration risk - -

B. Operational risk $$,$ $$,$

. Basic method - -

. Standardised method $$,$ $$,$

. Advanced method - -

B.1 Other elements for the calculation /,/ /,(

B./ Total precautionary requirements ,,(,/ ,,, C. Risk assets and capital ratios

C. Risk-weighted assets ,,1,,, ,,1(, C. Common Equity Tier  capital%Risk-weighted assets (CET Capital ratio) .1F .1F C. Tier  Capital%Risk-weighted assets (Tier  Capital ratio) ./F .(F C., Total own funds%Risk-weighted assets (Total capital ratio) .F .,F

The amount indicated in caption B.1 comprises the capital requirements specified by the Bank of Italy for the assets at risk, relating to the credit risk deriving from Banca di Sassari s.p.a. plus F of its risk-weighted assets, and the requirements relating to the exposures towards central counterparties in the form of pre-financed contributions to the guarantee fund .

Leverage Ratio (LR) The leverage ratios are very positive: • transitional arrangements (Phased in) of /.F; • full application (Fully Phased) of /.F.

/

Consolidated interim report on operations as at  September  Attachments

Attachments

(

Consolidated interim report on operations as at  September  Attachments

Financial statements of the Parent Company

• Balance sheet of the Parent Company as at  September  • Income statement of the Parent Company as at  September  • Income statement of the Parent Company by quarter as at  September  • Statement of changes in shareholders' equity of the Parent Company • Pro-forma income statement of the Parent Company as at  September ,

1

Consolidated interim report on operations as at  September  Attachments

Balance sheet of the Parent Company as at  September 

(in thousands of Euro)

Assets .(. .., Variazioni Var. F

. Cash and cash equivalents 1,(( 1,( (,(,,) -1. . Financial assets held for trading $1,1/ ,,$ (/,,1$) -1.$/ . Financial assets designated at fair value through profit and loss ,,( 1,/1 (,1/) -.( ,. Financial assets available for sale /,1,,11 ,,((,, ,1/, (. . Financial assets held to maturity ,,,,/ ,,,(/ , . 1. Due from banks ,(,$ ,/,,,,1 (,() -., /. Loans to customers ,($, ,,/1,$/ (1/$,11) -.($ $. Hedging derivatives ,,( ,11 ,1 .,$ (. Remeasurement of financial assets backed by general hedges - - - n.s. . Equity investments ,$,, ,/(,,1/ 1,/$ .,, . Property, plant and equipment ,,,1( ,,// (,/) -.1 . Intangible assets ($,$ ,, (,1$) -.1 of which: goodwill $,1 $,1 - - . Tax assets: ,,1 ,(1,( (1,$,$) -.$ a) current 1,( 1,/(, (,,) -1,.$,

b) deferred (/1,1 (1,( ,,,/ ,.

b) of which L. ,% $,,,/ $$,$ ,$,( .1 ,. Non -current assets and disposal groups held for sale ,$/ ,$/ - - . Other assets ,$(,/( //,$, (1$,,) -.$ Total assets ,(,1,1 ,(,1, ,1,$, .(,

(in thousands of Euro)

Liabilities and shareholders' equity .(. .., Variazioni Var. F

. Due to banks $,/$,( $,(,,( ,$/, .$/ . Due to customers ,1,1/ ,,/,($ (1,) -.1 . Debt securities in issue (,1,/, $,/,,$ 1$1,/ $. ,. Financial liabilities held for trading 1/,1 ,/,1, (,,/ /.$1 . Financial liabilities designated at fair value through profit and loss $(,/ ,/,1, ($(,$(,) -,/.1 1. Hedging derivatives $,( (,, (, . $. Tax liabilities: , /,$( /,( /. a) current ,$1 - ,$1 n.s. b) deferred $1,(1 /,$( , $. . Other liabilities ,,,1 ,,11( (,,// ,.1 . Provision for termination indemnities ,1 ,$( (,,(/,) -., . Provisions for risks and charges: /,($1 $1, ,/$ . a) pensions and similar commitments ,, ,,,1/ ((,,1) -.,1 b) other provisions (,$, ,,($ ,, 1.( . Valuation reserves ,,$ 11, /1,/$ 1.$ 1. Reserves ,(,// ,$1,(, ,,/( . /. Share premium reserve (,/ (,// (,) - $. Share capital ,,,,( ,,,,( - - (. Treasury shares (/,) (/,/) , -.1 . Net profit (Loss) for the period $$,$ ,,,( /,( ,/.$ Total liabilities and shareholders' equity ,(,1,1 ,(,1, ,1,$, .(,

1

Consolidated interim report on operations as at  September  Attachments

Income statement of the Parent Company as at  September 

(in thousands of Euro) .(., F Captions .(. Change Pro -forma change . Interest and similar income (,(, ,,,1 (1,) -,., . Interest and similar expense (/1,$) (,(,$/) ,//( -.1, . Net interest income 1/,(1 /,1,$ (1,/) -.$ ,. Commission income ,1,$,, ,,1 , ./ . Commission expense (,1) (,) (,$$ -., 1. Net commission income ,,,( $, ,/ . /. Dividends and similar income /,1(( , ,,,( /.1 $. Net trading income ,1 ,1 , .$ (. Net hedging gains (losses) (//$) 11, (,,,) -/./ . Gains (Losses) on disposal or repurchase of: ,1 /(,,1 (,$,$,) -1.1 a) loans ,1, ((,,,,) ,$ -./ b) financial assets available for sale $,, $,/, ($,/) -/,. c) financial assets held to maturity $ - $ n.s. d) financial liabilities (1) ,/ (1) -- . Net results on financial assets and liabilities designated at fair value ,/ (,,$() ,(,1 -.( . Net interest and other banking income ,,( ,$(,(, (1,$,) -.( . Net impairment adjustments to: (,,() (,,() ,( -. a) loans (,1/) (,,,(1) $,($( -,./, b) financial assets available for sale ($,/() (,() (,,($/) $.$, d) other financial assets (1) ((,/1) (,/ -(/.$( ,. Net profit from financial activities $,(($ /,, /1,/ .,, . Administrative costs: (/,,,) (//,$,/) (,(1) ,./ a) payroll (,,1() (/,,$) ((,) /.$ b) other administrative costs (,,/,) (1,(() (,,/) ./ 1. Net provisions for risks and charges ((,/) (,) ($,) $,. /. Net adjustments to property, plant and equipment (1,/) (/,,) 1/ -.$/ $. Net adjustments to intangible assets (,$,) (,1) (() .,$ (. Other operating charges%income ,$ (/,$, ,,(1( .$ . Operating costs (1(1,/) (1,$) (,,$1) /. . Profit (Loss) from equity investments (,/(/) (,)  -1. ,. Gains (Losses) on disposal of investments ,  ,( $(.( . Profit (Loss) from current operations before tax ,,1$ $,/1 , /.$ 1. Income taxes on current operations for the period (,1$/) ($,$() ,1 -.( /. Profit (Loss) from current operations after tax $$,$ ,,,,/1 ,,( ($./ (. Net profit ( Loss) for the period $$,$ ,,,,/1 ,,( ($./

1

Consolidated interim report on operations as at  September  Attachments

Income statement of the Parent Company by quarter as at  September 

(in thousands of Euro)

st nd rd st nd rd ,th quarter quarter quarter quarter quarter quarter quarter Captions    , , , ,

. Interest and similar income ,( ,( 1,/1 /(,$1 /,,(/ (,$ ,(,1/1 . Interest and similar expense (($,$$,) ((,/) ($1,,) (,,() (/,(,) ((,($) ((,$) . Net interest income ,, ,,/ ,, /,1/1 ,/ (,(( ,( ,. Commission income ,, ,,$(, ,,1 $,(/ ,,$ ,$$, (,1, . Commission expense (/,1() (/,) (/,$,) (,) (,(,$) (,,/) (/,$$) 1. Net commission income 1,1 ,1 ,$ /,// (,$/ ,,1/ ,$, /. Dividends and similar income ,( /, ,/ /, ,$$ (1 ,// $. Net trading income (,( (1,/1) $1 , ,,/ ,,$$ ,/$ (. Net hedging gains (losses) 1 (,1) (1/) /, () 1  Gains (Losses) on disposal or repurchase . of: $,, ,/, (,, , ,$ ,/ ,1( a) loans ,$ / ()   ((,1) (,$) b) financial assets available for sale ,,$ ,$ (,, ,,$$ ,/ ,( 1,

c) financial assets held to maturity (()  - - - - - d) financial liabilities (() (,$) ,, 1$ (1/) ,1 (/1) . Net results on financial assets and liabilities designated at fair value (,,$) 1,11 (,$) (,,,) /,, (,($) (,(/() . Net interest and other banking income (,11 ,,$ 1,,, ,,,$ ,,$ ,$( ,,/ . Net impairment adjustments to: (1,(,) (/,,) ((/,$,) (1/,,/) (11,11/) ((,$/) ((,11) a) loans (,) (,,() ((/,1) (1,$) (1,() (1,,() ($,() b) financial assets available for sale - ($,/() - () (,/) () (1,,1) c) financial assets held to maturity - - d) other financial assets ,,$ (,,,1) ($) (,,1) (,$) (,,/) ,$ ,. Net profit from financial activities /, /,11 1, ,1,1( ,$ ,, (, . Administrative costs: (/,,) (,1,,$) (/,1,) (,,1) (,,) ($,,) ($,/) a) payroll (1,($) (1,$/() (,/,() (1,) ($,,) (1,($) (1,) b) other administrative costs (,11) ((,1() (,,() (/,($) (1,$() (,,1) (,(1) 1. Net provisions for risks and charges (,,,) ((,$) ((,/,) (,,1,$) ((,/) (/,) ((,(1) /. Net adjustments to property, plant and equipment (,1() (,1) (,,() (,$$) (,/(/) (,/$) (/,$) $. Net adjustments to intangible assets (1/) (1) (1) () (1) (//) ($) (. Other operating charges%income 1,/(, ,(/ ,,( 1,,, ,,$/ (,( 1,$, . Operating costs (/,,) ((,$,) ((,/) ($,1$) ((,) (,($) ((,/$) . Profit (Loss) from equity investments (,() ,,(1 (,,) (() (,(() - (,) ,. Gains (Losses) on disposal of investments  (/)   , 1 ($/) . Profit (Loss) from current operations before tax 1,(( /,( (,$,$ /,$/ ,,,1 ,$1 (,,(() 1. Income taxes on current operations for the period (/,1$) (,,$(1) (,() (1,$) (,,(,) (1,$1) ,/ /. Profit (Loss) from current operations after tax $,1/ , 1,/( ,, (,, ,, ((,/) (. Net profit (L oss) for the period $,1/ , 1,/( ,, (,, ,, ((,/)

1

Consolidated interim report on operations as at  September  Attachments

922,256 930,073 30.09.2015 30.09.2014 equity as at equity as at 1,443,925 - 1,439,034 1,896,795 48,012 - 2,191,707 4,890,113 1,443,925 1,443,925 - 1,692,467 243,280 - 1,660,647 499,240 499,240 236,148 (7,253) (7,270) Shareholders' Shareholders' - 1,439,034 1,439,034 - (in thousands of Euro) at at hensive hensive Compre- Compre- income as 30.09.2015 income as 30.09.2014 265,161 24,882 - - 176,780 ------88,381 88,381 - 26,742 26,742 Stock Stock o ptio ns o ptio ns ------51,624 4,325,569 ------shares shares ------on treasury - - - - on treasury - - - Derivatives Derivatives s s equity equity ------instrument instrument Changes in Changes in ------Changes during the period Changes during the period distribution distribution o f dividends o f dividends ------Extraordinary Extraordinary - - - - - Transactions on shareholders' equity Transactions on shareholders' equity - - - o f o f shares shares treasury treasury ------P urchase - - - - (4) (4) P urchase - - - Issue of Issue of 8 4 ------437,551 ------new shares new shares - - - Parent Company Company Parent in in - 437,551 437,551 - Changes Changes reserves reserves - 58 - - - - 6,380 - - - - - (908) (908) - (713) 735,651 - (713) (7,093) (966) - - (4) - - 298,100 - and other and other Dividends Dividends ------(9,748) - - - allocations allocations year results year results - - - Allocation of prior Allocation of prior - 5,701 5,701 ------R eserves - - - R eserves - - (12,789) (12,789) ,789) 12,789 - 15,449 (5,701) (9,748) - at 1.1.15 at 1.1.14 66,500 4,635,608 Balance as 1,443,925 - Balance as 23,130 - 1,443,925 1,443,925 - 2,186,914 1,686,708 1,001,483 - 1,910,297 1,667,056 500,206 500,206 243,241 (7,257) (7,270) 3,539,007 - - - 930,077 - - 624,156 - - 1,001,483 1,001,483 - Changes balances Changes balances ------in opening in opening at 31.12.14 at 31.12.13 Balance as 2,186,914 Balance as 1,001,483 1,910,297 66,500 4,635,608 1,443,925 1,443,925 - 1,686,708 - - 1,667,056 23,130 - 500,206 500,206 (7,257) 243,241 (7,270) Statement of changes in shareholders' equity of the equityof shareholders' in changes of Statement Shareholders' equity 3,539,007 - Share capital: ordinaryshares a) otherb) shares Share premium reserveReserves: froma) profits 930,077other b) Valuation reserves Equity instruments Treasury shares Net profit (loss)period for the Shareholders' equity 15,449 Share capital:- ordinaryshares a) otherb) shares Share premium reserveReserves: 1,001,483 froma) profits 624,156 otherb) Valuation reserves Equity instruments Treasury shares Net profit (loss)period for the (12,789) - (12

1,

Consolidated interim report on operations as at  September  Attachments

Pro -forma income statement of the Parent Company as at  September ,

(in thousands of Euro) Merger Income Statement BPER BPRA BCAM BPMZ Total adjustments

. Interest and similar income $//,$( 1(,$ ,$$ 1, (,1) ,,,1 . Interest and similar expense ((,(/) (,/1) (,/1) (,(/) ,1$ (,(,$/) . Net interest income ,$1,$ ,/,$ $,1 $,1,$ / /,1,$ ,. Commission income (,, ,,(1 ,,,/ ,,//1 (,) ,,1 . Commission expense ((,/) (($) (,(1) (,() , (,) 1. Net commission income /(,$// ,11 ,, (,,/  $, /. Dividends and similar income 1,1,/ ,  ( (,1() , $. Net trading income ,(, ( , , / ,1 (. Net hedging gains (losses) 1$ ($) - - - 11, . Gains%Losses on disposal or repurchase of: 1/,/1, ,  ,1 - /(,,1 a) loans ((,,,) - - () - ((,,,,) b) financial assets available for sale (/,/, -  ,/ - $,/, d) financial liabilities  , - - - ,/ . Net results on financial assets and liabilities designated at fair value (,,1() (,$) , () - (,,$() . Net interest and other banking income $/,$/ 1(,/ /,, ,$$ (,,) ,$(,(, . Net impairment adjustments to: (/,(() (,,/() (/,() ($,$) - (,,() a) loans (1,) (,,,$/) (/,($,) (/,$) - (,,,(1) b) financial assets available for sale (,() - - - - (,() d) other financial assets ((,/) () / (,() - ((,/1) ,. Net profit from financial activities ,((,,$ ,,,//$ $(,,( ,,($ (,,) /,, . Administrative costs: (,(1,$) (,,,/) ((,$(,) (//,/1) ,, (//,$,/) a) payroll (,,(1$) (,,(,) (,(,$) (,,)  (/,,$) b) other administrative costs (,,$) ((,) (,,$,) (,,1) , (1,(() 1. Net provisions for risks and charges (,,) (,$,) (1,,/) (,/) - (,) /. Net adjustments to property, plant and equipment (,) (,/1) (,/) (,/) - (/,,) $. Net adjustments to intangible assets (,() () (1/) (,1) - (,1) (. Other operating charges%income 1/,( ,(// ,, ,, (,//) (/,$, . Operating costs (,,,(,) (,,1) ($,1) (/,,) (/) (1,$) . Profit (Loss) from equity investments (,) - - - - (,) ,. Gains (Losses) on disposal of investments    , -  . Profit (Loss) from current operations before tax ,, ,,/1 ,$1 ,,,11/ (,() $,/1 1. Income taxes on current operations for the period (1,/) (,() (,,) (1,$) () ($,$() /. Profit (Loss) from current operations after tax 1,/, ,, , $,,,( (,() ,,,,/1 (. Net profit ( Loss) for the period 1,/, ,, , $,,,( (,() ,,,,/1

1

Consolidated interim report on operations as at  September  Certifications and other reports

Certifications and other reports

1/