Full Year 2018 Banco Bpm SpA Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Domenico Santoro - HSBC, Research Division - Analyst : Just a clarification again on this Slide 41. If my understanding is correct, you said that in 6 to 8 years, you will be left, is the run rate in terms of de-risking goes on this way with a net book value of EUR 400 and EUR 200 approximately in terms of further provision that will mean 3, 6 basis points in terms of capital. That is the situation of 6, 8 years. In the meanwhile, my question is, what will happen? I know that you issued already a press release, saying that you don't expect for the next couple or 3 years within the business plan not impact on capital and earnings. Why is that? Is it because the vintage of the portfolio is below -- is lower compared to what we read basically ECB is looking at? Is it because you -- and you said already, yes, you don't include the restructure. So this is helpful also because in my understanding is that the ECB addendum was considering the restructuring? Or there is something else that I'm missing here? So just vis-a-vis for the next 2, 3 years, that would be very helpful to dissipate any risk of additional provision and impact on capital? And then my understanding is that there was a reclassification of UTPs into nonperforming in Q4. You mentioned construction specific positions. Now in order to avoid this keep going, would you consider something also transformational in the UTP area in terms of disposal? This is the question that we're already asking you in the past.