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% for the first time (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 shareholder remuneration target to ~€7 billion by 2027, with €4 billion to be distributed in 2026-2027.

• Interim dividend guidance raised to ~€750 million (~€0.50 per share), up from €700 million last year.

Financial highlights

• H1 2026 net income at €1.06 billion, up 22% year-over-year; Q2 net income at €581 million.

• Total revenues reached €3,196 million in H1 2026, up 5.7% year-over-year; non-NII revenues at 54% of total.

• Net interest income was €1,537 million, down 4.1% year-over-year, but up 4.6% sequentially in Q2.

• Cost/income ratio improved to 42.8% (vs 44.6% in H1 2025), best in group history.

• Loan loss provisions declined to €157 million, with cost of risk at 31 bps.

Outlook and guidance

• FY 2026 net income guidance upgraded to above €1.95 billion, with expectations to exceed strategic plan targets.

• Dividend per share guidance upgraded to €1 or higher, with cumulative 2024-2027 distribution target increased to ~€7 billion.

• Net interest income and commission income expected to grow in H2 2026, with continued cost discipline.

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

• Cost of risk expected to outperform business plan guidance (below 43 bps for 2026 and 40 bps for 2027).