Banca Popolare di Milano Scarl, Q1 2013 Earnings Call, May 14, 2013

Banca Popolare di Milano Scarl reported consolidated and parent company earnings results for the first quarter ended March 31, 2013. For the quarter, on consolidated basis, the company reported net interest income of EUR 190,783,000 compared to EUR 226,567,000 a year ago. Operating income was EUR 428,075,000 compared to EUR 433,705,000 a year ago. Operating profit was EUR 181,957,000 compared to EUR 171,914,000 a year ago. Profit before tax from continuing operations was EUR 115,439,000 compared to EUR 116,404,000 a year ago. Profit after tax from continuing operations was EUR 57,439,000 against EUR 64,001,000 a year ago. Net profit was EUR 57,439,000 compares to EUR 64,001,000 a year ago. The decrease in net interest income is due mainly to the reduction in commercial interest income (-13%) following the reduction in the spread between lending interest rates and deposit interest rates (-43 bps) owing to the reduction in lending interest rates (-56 bps), which was affected by the reduction in banking interest rates as a whole and only partially offset by the increase in financial interest income from the parent bank's portfolio of securities. For the quarter, on parent company basis, the company reported total income of EUR 337,100,000, increase 3.3% compared to last year. Operating profit was EUR 148,800,000, increased 13.6% compared to last year. Net profit was EUR 49,700,000, increased 12.5% compared to last year.

Banca Popolare di Milano Scarl reported consolidated and parent company earnings results for the year ended December 31, 2012. For the year, on consolidated basis, reported net interest income of EUR 859,058,000 compared to EUR 824,771,000 a year ago. Operating income was EUR 1,549,714,000 compared to EUR 1,351,850,000 a year ago. Operating profit was EUR 366,849,000 compared to EUR 306,902,000 a year ago. Loss before tax from continuing operations was EUR 598,224,000 compared to EUR 707,376,000 a year ago. Net loss was EUR 429,694,000 compares to EUR 614,333,000 a year ago. Normalized operating profit was EUR 575.6 million. For the year, on parent company basis, reported total income of EUR 1,185.7 million, net loss of EUR 474 million and normalized net loss of EUR 60.6 million.