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● ● BANCO BPM • " CORE " REVENUES¹ AT € 968 MILLION , + 5.9 % ON 2020 Q1 , ALSO UP ON THE PRE - COVID PERIOD OPERATING INCOME AT € 1,128 MILLION , + 18.1 % ON 2020 Q1 PROFIT FROM OPERATIONS² AT € 484 MILLION , + 51.4 % ON 2020 Q1 COST / INCOME RATIO³ AT 57.1 % COMPARED TO 66.5 % AT THE END OF MARCH 2020 ● PRESS RELEASE RESULTS AS AT 31 MARCH 2021 COST OF RISK AT 79 BASIS POINTS , INCLUDING ROUGHLY 40 BASIS POINTS OF " NON - CORE " COMPONENTS4 PRE - TAX PROFIT € 259 MILLION , + 150.3 % ON 2020 Q1 NET INCOME € 100 MILLION , WHICH INCREASES TO € 151 MILLION NET OF NON - RECURRING COMPONENTS5 LINKED TO DERISKING NEW ACCELERATION IN DERISKING STRATEGY : • OVERALL TARGET OF NPE DISPOSALS AT € 1.65 BILLION , OF WHICH € 1.5 BILLION BAD LOANS ALREADY BEING FINALISED ( " PROJECT ROCKETS " 6 ) WHICH WILL ALLOW : A 42 % REDUCTION IN GROSS BAD LOANS ( FROM € 3.6 BILLION AT 31 MARCH 2021 TO € 2.1 BILLION ) , WITH A DECREASE IN THE SHARE ON GROSS CUSTOMER LOANS FROM 3.1 % TO 1.8 % ADJUSTED7 ¹ Aggregate consisting of net interest income and net fee and commission income . 2 This interim result does not include banking industry charges , equal to € -59.2 million , the accounting effects of the Purchase Price Allocations ( PPA ) carried out in previous years , equal to € -10.3 million , and the effects of the change in the credit rating of the Group on its certificate issues , equal to € -6.8 million . Effective from the closing date of the financial year at 31 December 2020 , these components are stated , net of taxes , in separate items of the reclassified income statement . The data from previous periods used for comparison have been re - stated accordingly . 3 Calculated as the ratio between operating expenses and operating income resulting from the reclassified Income Statement . 4 Effects of the increase in the target for the assignment of impaired loans and the increase in loans classified in Stage 2 following the adoption of more stringent classification criteria . 5 Amount net of non - recurring components as indicated in section 5 of the Explanatory Notes of this press release . 6 The project will be concluded in the second quarter of 2021 , but the estimated economic impacts have already been recognised in the income statement , in compliance with the provisions of IFRS 9 . 7 The adjusted figure is calculated by considering the impact on the data at 31 March 2021 , of the assignments scheduled by 30 June 2021 as part of the " Rockets Project " . 1