Banco Bpm, half-year profit growth and positive prospects

Banco Bpm archives the first half of the year Net income 384 million euros, up 6.3% on an annual basis. Adjusted net profit amounted to € 497 million (+ 30.1%), the best result since the group was founded. The interest margin it is 1,039.1 million, up 2%, with net commissions at 966.9 million (+ 1.8%). Among the capitalization ratios, the fully phased Cet1 ratio is 12.8%. Barring further worsening of the scenario, for the whole of 2022 Banco Bpm expects an improvement in the net profit of the group compared to 2021, “with a trend that allows to confirm both the profitability trajectory and the overall targets outlined in the strategic plan”.

In the first half of the year, Banco Bpm’s bank of the year recorded “very solid and good results in such a difficult operating environment”, explains theCEO Giuseppe Castagna. “Despite this, both in terms of net profit, volume growth, asset quality and capital buffer we have achieved solid results, probably the best in our group’s history.”

The bank still accelerates in the process derisking. Net impaired exposures amounted to € 2.9 billion, down by 12.2% compared to the end of 2021 and by 23% on an annual basis. And with a gross NPE ratio of 4.8%, the target of the strategic plan by 2024 has already been reached. In the first half of the year, derisking was obtained for a total of € 1.4 billion, including the sale of a portfolio of Unlikely to pay and non-performing loans with a total gross book value of 700 million, exceeding the 1 billion target announced to the market. The sale objective of non-performing loans gross, bringing the target to over 500 million to be achieved over the plan.

The board of directors of Banco Bpm also examined “in depth from a strategic, financial and operational point of view the non-binding offers received for the insurance joint ventures from some potential partners “and decided to continue the evaluation of a possible new partnership in the bancassurance sector exclusively for the Non-Life branch. The evaluation process is expected to be completed by the end of the year.