Results for the first half of 2015 approved by the BoD

THE BOARD OF DIRECTORS OF BANCA AKROS (BPM GROUP)
APPROVED THE RESULTS FOR THE FIRST HALF OF 2015

• Net profit of €6.7 million (€9.6 million as at 30 June 2014); Common Equity Tier 1 ratio of 12.8%.
• The Bank consolidated its top position in market making and bond brokerage, ranking in 1st place for third parties on DomesticMOT, ExtraMOT and Hi-MFT. It ranked in 4th place on the Electronic Stock Exchange (MTA) of the Borsa Italiana with a positive growth of market share to 9.1% (Source: Assosim).
• The Bank participated in the main capital increase and listing transactions carried out on the Italian stock market during the period, as well as in the placement of the Prysmian and Autostrade per l’Italia bonds.
• In Private Banking, assets under management amounted to approximately €2.2 billion (approximately €2 billion as at 31 December 2014), partly thanks to positive net inflows.

Milan, 30 July 2015 – The Board of Directors of Banca Akros – investment bank and private banking of the Banca Popolare di Milano Group, chaired by Graziano Tarantini and led by Chief Executive Officer Marco Turrina – approved the results as at 30 June 2015.
During the period, the Bank achieved net interest and other banking income of approximately €36.5 million (€49.3 million in the first half of 2014); net profit stood at approximately €6.7 million (€9.6 million in the first half of 2014).
As at 30 June 2015, the Common Equity Tier 1 ratio was approximately 12.8%.
In market making and trading, there was a positive contribution from equity derivatives, government bonds, domestic bonds and Eurobonds. The worsening of the market scenario, which began in the second quarter, was nevertheless reflected in the mark-to-market values of the trading bond portfolio at the end of the period. The development of trading in financial risk hedging and management instruments (interest rate, exchange rate and commodity) for institutional and corporate customers continued, also as part of the joint coverage with the Parent Company in Corporate & Investment banking, with special attention to the specific reference target represented by the Mid Corporate segment operating in the territory where the Group has its roots.

In brokerage on behalf of third parties (Source: Assosim), the Bank:

• Further consolidated its presence in the bond markets, ranking 1st on the DomesticMOT segment and 2nd on the EuroMOT segment of the Borsa Italiana (with a market share of 18.1% and 20.5%, respectively). It also ranked 3rd on the EuroTLX market (with a market share of 18.9%), and 1st on the Hi-MTF market and on the ExtraMOT market (with a market share of 40% and 32.3%, respectively), also thanks to the contribution of SABE, the proprietary system for the automatic search for dynamic best execution.
• Ranked 4th on the Electronic Stock Exchange (MTA) of the Borsa Italiana (with a market share of 9.1%).
• Ranked 5th in options on the FTSEMIB index (with a market share of 4.6%).

The offer to customers of brokerage services on equity markets also benefits from the activities of ESN – European Securities Network LLP, the European equity research and trading partnership set up by Banca Akros with eight other European independent investment banks active in their respective national markets. Notably, in the Thomson Reuters Starmine Analyst Awards 2015, ESN was listed first in the ranking for the “Machinery” sector, thanks to the coverage of the analyst working at Banca Akros.

In the Equity Capital Market business, Banca Akros acted as Sponsor and Joint-Lead Manager in the listing of the Banzai company, as placing agent for the public offer and Joint-Bookrunner in that of Banca Sistema, as Financial Advisor and Placing Agent in the share capital increases of Aedes and I Grandi Viaggi, and as Guarantor and Placing Agent in the recapitalisation of Banca Monte dei Paschi di Siena and Banca Carige. The Bank also participated, as Guarantor and Placing agent, in the public offers for the listing of Oviesse, Massimo Zanetti Beverage Group and INWIT.

In the Debt Capital Market, the Bank participated as Joint Bookrunner in the placement with institutional investors of a fixed-rate bond issue by Prysmian, expiring in 2022, for a total of €750 million, which was the largest European issue by an unrated corporate issuer. Banca Akros also participated, as Additional Guarantor, in the public subscription offer to the retail public of a fixed-rate bond issue by Autostrade per l’Italia expiring in 2023 for a total amount of €750 million, listed on the Electronic Bond Exchange (MOT) of the Borsa Italiana. Also in the Corporate sector, the Bank participated as Co-Manager in the two euro issues of the International Game Technology company, carried out as part of the merger with the GTECH company. Banca Akros also participated in eight issues by leading international issuers, including the European Investment Bank and Germany’s KFW.

In Advisory activities, the Bank acted as the broker in charge of coordinating the collection of subscriptions in relation to the voluntary public offering promoted by the Parent Company for the partial repurchase of certain bonds issued by it. Activities also continued in the property fund segment; in particular, the collaboration with Polis Fondi SGR regarding the Fondi Asset Bancari – FAB, which invests in real estate linked to non-performing loans of certain Banks. In credit advisory activity, it is worth mentioning the participation, as Advisor and Arranger, in the structuring of a medium-term loan, issued by the Parent Company BPM as financing bank, with the participation of SACE S.p.A. as guarantor.

In the Private Banking activities carried out at the Milan office and at the Rome and Turin branches, the Bank continued its focus on high net worth customers by offering personalised asset management services – in an “open architecture” context – and administration and order collection services featuring high capacity for execution on the Bank’s domestic and international markets. The total value of assets under management stood at approximately €2.2 billion at the end of the year, (approximately €2 billion as at 31 December 2014), reflecting the good trend in net inflows and the positive performance for the period.

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