Banco BPM (BAMI) Morgan Stanley 21st Annual European Financials Conference summary

Business performance and strategic outlook

• Strong Q1 results with growth in commissions, investment sales, and new green lending exceeding €5 billion in two and a half months.

• Upfront commissions on investment sales increased 20-25%, with a balanced mix between asset management and life insurance.

• Loan book growth resumed after several quarters, and cost of risk remains better than expected.

• 2024 results exceeded forecasts by €300 million, providing a strong base for future growth.

• Business plan targets €2.15 billion net income and 24% ROTE by 2027, with room for further improvement.

Anima integration and capital strategy

• Anima transaction underway, with initial approvals from major shareholders and expected ownership above 45%.

• Full integration of Anima projected to add €500 million in revenues and €200 million in net profit.

• Danish compromise expected to provide favorable capital treatment; payout target is €7 billion with Danish, €6 billion without.

• Consolidation of Anima expected in Q2, with capital ratios considered robust regardless of regulatory outcome.

• No need for additional capital maneuvers anticipated; capital buffer remains strong.

M&A and market positioning

• Not in a defensive stance regarding UniCredit's offer; current offer seen as undervalued and lacking a premium.

• Value of the bank is rising, especially with Anima integration, and consensus is moving closer to business plan targets.

• Any future offer must reflect both standalone value and synergies; shareholders expect a fair share of potential synergies.

• Italian banking sector consolidation expected to benefit well-equipped banks; further M&A could unlock additional value.