Banca Monte dei Paschi di Siena (BMPS) investor relations material

Deal rationale and strategic fit

• The project aims to create a leading Italian financial platform by integrating commercial banking, corporate investment banking, wealth management, and insurance capabilities, forming Italy's #2 banking group by customer loans and branch network, with €810 billion in total financial assets and a top-10 European market cap position.

• Combines complementary franchises and iconic brands in banking, advisory, and wealth management, leveraging MPS's transformation, Banco BPM's scale, and Banca Generali's wealth management platform.

• Addresses industry trends by shifting the business mix toward fee-based, capital-light revenues, improving earnings quality and resilience, and supporting technology investment.

• The aggregation is positioned as a friendly, value-creating integration, preserving franchise identities while leveraging complementary strengths and regional footprints.

• The project supports growth, technology investment, and recurring fee generation, addressing evolving customer and industry needs and enhancing competitive positioning.

Financial terms and conditions

• Two voluntary public exchange offers: Banco BPM shareholders offered 1.567 new shares per share (nil premium), Banca Generali shareholders offered 6.958 new shares per share (10% premium), both fully in shares.

• Exchange ratios factor in a proposed €4 billion extraordinary distribution to MPS shareholders: €1 billion in cash and €3 billion in Assicurazioni Generali shares.

• Both offers are subject to a 50% plus one share acceptance threshold.

• On full acceptance, ownership split: MPS shareholders 50.1%, Banco BPM 37.2%, Banca Generali 12.7%.

• Pro forma market capitalization of the combined group is estimated at €80 billion.

Synergies and expected cost savings

• Expected annual run-rate synergies of €2.6 billion by 2029, including €0.8 billion from the Mediobanca integration.

• €1.2 billion from cost synergies (mainly Banco BPM), €0.6 billion from revenue and funding synergies.

• One-off integration costs estimated at up to €2.5 billion before taxes, to be incurred between 2027 and 2029.

• Cost synergies include process rationalization, administrative optimization, and digital/AI adoption.

• Cost-to-income ratio projected to improve to 36% by 2025, with return on average tangible equity above 19% by 2029.