Consolidated interim report as at 30 June 2017 WorldReginfo - 5ddbc383-c956-4304-b81f-c3b780ed8928 WorldReginfo - 5ddbc383-c956-4304-b81f-c3b780ed8928 Consolidated interim report as at 30 June 2017 WorldReginfo - 5ddbc383-c956-4304-b81f-c3b780ed8928 2 ___________________________________________________________________________________________________________________________________________ Banco BPM S.p.A. Registered office: Piazza F. Meda, 4 - 20121 Milan Administrative headquarters: Piazza Nogara, 2 - 37121 Verona Fully paid up share capital as at 30 June 2017: euro 7,100,000,000.00 Tax Code, VAT No. and Milan Companies’ Register Enrolment No. 09722490969 Member of the Interbank Deposit Guarantee Fund and the National Guarantee Fund Parent Company of the Banco BPM Banking Group Enrolled in the Bank of Italy Register of Banks and the Register of Banking Groups WorldReginfo - 5ddbc383-c956-4304-b81f-c3b780ed8928 ___________________________________________________________________________________________________________________________________________ 3 OFFICERS, DIRECTORS AND INDEPENDENT AUDITORS AS AT 30 JUNE 2017 Board of Directors Chairman Carlo Fratta Pasini Acting Deputy Chairman Mauro Paoloni (*) Deputy Chairman Guido Castellotti (*) Deputy Chairman Maurizio Comoli (*) Managing Director Giuseppe Castagna (*) Directors Mario Anolli Michele Cerqua Rita Laura D’Ecclesia Carlo Frascarolo Paola Elisabetta Maria Galbiati Cristina Galeotti Marisa Golo Piero Sergio Lonardi (*) Giulio Pedrollo Fabio Ravanelli Pier Francesco Saviotti (*) Manuela Soffientini Costanza Torricelli Cristina Zucchetti (*) members of the Executive Committee Board of Statutory Auditors Chairman Marcello Priori Standing Auditors Maria Luisa Mosconi Gabriele Camillo Erba Claudia Rossi Alfonso Sonato Alternate Auditors Chiara Benciolini Marco Bronzato Paola Simonelli General Management General Manager Maurizio Faroni Joint General Manager Domenico De Angelis Joint General Manager Salvatore Poloni Manager responsible for preparing the Company’s financial reports Gianpietro Val Independent Auditors PricewaterhouseCoopers S.p.A. WorldReginfo - 5ddbc383-c956-4304-b81f-c3b780ed8928 WorldReginfo - 5ddbc383-c956-4304-b81f-c3b780ed8928 ___________________________________________________________________________________________________________________________________________ 5 CONTENTS Group structure ............................................................................................................................................ 6 Group territorial network ............................................................................................................................... 8 Group financial highlights and economic ratios ............................................................................................. 10 Interim report on operations .................................................................................................... 13 Economic scenario ..................................................................................................................................... 14 Significant events during the period .............................................................................................................. 19 Risk management ....................................................................................................................................... 26 Capital ratios ............................................................................................................................................ 38 Disclosure on transactions with related parties ............................................................................................... 42 Outlook for business operations ................................................................................................................... 42 Consolidated condensed interim financial statements ............................................................... 45 Financial statements ................................................................................................................................... 46 Illustrative notes ......................................................................................................................................... 54 Accounting policies................................................................................................................................. 54 A.1 General part .................................................................................................................................... 54 General preparation principles .............................................................................................................. 54 Statement of compliance with the international accounting standards .......................................................... 54 Uncertainties with regard to the use of estimates for drawing up the consolidated condensed interim financial statements ................................................................................................................... 61 Significant aspects relating to Group accounting policies .......................................................................... 66 Scope of consolidation and methods ...................................................................................................... 69 A.2 Key financial statement items ............................................................................................................. 74 A.3 Disclosure on transfers between portfolios of financial assets .................................................................. 98 A.4 Fair value disclosure ......................................................................................................................... 99 Disclosure on structured credit products ................................................................................................... 109 Results .................................................................................................................................................... 110 Consolidated income statement figures .................................................................................................... 110 Consolidated balance sheet figures ......................................................................................................... 123 Key financial highlights of the main Group companies .............................................................................. 140 Segment reporting ................................................................................................................................ 140 Disclosure on Banco BPM shares ............................................................................................................ 145 Disclosure on earnings per share ............................................................................................................ 146 Disclosure on share-based payment agreements ....................................................................................... 146 Business combinations regarding companies or divisions ........................................................................... 149 Transactions with related parties ............................................................................................................. 157 Significant events after the end of the interim period ................................................................................. 160 Certification of the consolidated condensed interim financial statements pursuant to art. 81-ter of Consob Regulation no. 11971 of 14 May 1999 and subsequent amendments and additions .................................................................................................... 161 Independent Auditors’ Report ................................................................................................. 165 Attachments ........................................................................................................................... 169 WorldReginfo - 5ddbc383-c956-4304-b81f-c3b780ed8928 6 GROUP STRUCTURE: MAIN COMPANIES BANCO BPM S.p.A. Banca Popolare Aletti BP Property Banca Akros Release di Milano Gestielle SGR Management 99.97% 100% 100% 82.92% 100% Società Banca Aletti Bipiemme Vita Alba Leasing Gestione Servizi 83.44% 16.56% 19% 39.19% 100% SelmaBipiemme Bipielle Etica SGR Leasing Real Estate 19.44% 40% 100% AviPop Tecmarket Assicurazioni Servizi 49.99% 100% Popolare Vita ProFamily 25.61% 24.39% 100% Holding di Partecipazioni 100% Agos Ducato 39% Factorit 39.5% WorldReginfo - 5ddbc383-c956-4304-b81f-c3b780ed8928 7 GROUP STRUCTURE: BUSINESS LINES Commercial Private & Investment Wealth Corporate Leasing Network Banking Management Center Banco BPM Aletti Banco BPM Banco BPM Banca Aletti Banca Popolare di Gestielle SGR Ex-Italease porfolio Milano - BPV division Group functions: Associated (North East) Banca Akros Release - Group Finance companies - BPL division - Securities portfolio (North and Centre) - Institutional funding - BPN division (North - Popolare Vita - Custodian bank Associated West, Centre and South) - AviPop Assicurazioni companies - CB division (Bergamo) - Bipiemme Vita - Etica SGR ProFamily - Alba Leasing Banca Popolare - SalmaBipiemme Leasing di Milano Foreign Banks - BPM division Product and Real Estate Companies - BP Property Management - Società Gestione Servizi - Bipielle Real Estate - Tecmarket Servizi - Holding di Partecipazioni Associated