Banco BPM (BAMI) investor relations material

Executive summary

• Achieved record H1 2026 net income of €1,060 million, with adjusted net income at €1,077 million, driven by improved revenue mix, cost efficiency, and declining provisions.

• Gross NPE ratio fell below 2% (1.96%), reflecting best-ever asset quality.

• CET1 ratio improved to 14.40%, up 240bps since end-2024 and well above the 13% plan threshold.

• Upgraded FY 2026 net income guidance to above €1.95 billion and raised cumulative 2024-2027 shareholder remuneration target to ~€7 billion.

• Interim 2026 dividend guidance increased to ~€750 million (~€0.50 DPS), with potential share buybacks pending regulatory approval.

Financial highlights

• H1 2026 net income at €1,060 million, up 22% year-over-year; adjusted net income at €1,077 million (+7% vs H1 2025).

• Total revenues reached €3,196 million in H1 2026, up 5.7% year-over-year; non-NII revenues rose 55% over two years, now 52-54% of total.

• Net interest income at €1,537 million, down 4.1% YoY but up 4.6% sequentially in Q2.

• Cost/income ratio improved to 42.8-43%, best in group history.

• Cost of risk reduced to 31bps; gross NPE ratio at 1.96%.

Outlook and guidance

• FY 2026 net income guidance upgraded to above €1.95 billion, with expected DPS of at least €1.00.

• Interim dividend guidance raised to ~€750 million (~€0.50 DPS), up from previous year.

• Cumulative 2024-2027 shareholder remuneration target increased to ~€7 billion, with €4 billion to be distributed in 2026-2027.

• Share buyback plan to be initiated, subject to regulatory approval.

• Confident in maintaining CET1 above 13% and further capital generation from DTAs and business growth.