Great results for Bpm bank in the first nine months of 2024 that exceeds also the market expectations. The bank led by the CEO Joseph Chestnut closed the first three quarters of 2024 with a Net income of 1,695 billion euros, +79,8% compared to the same period of 2023, when net profit was 943,4 million euros. The adjusted net result, which excludes non-recurring components, was 1,245 billion euros, a improvement of 25,1% on an annual basis. The increase in earnings was fueled largely by the operation of reorganization of the payments business, which generated a positive impact of 493,1 million euros, included in the new item “Money Impact” of the reclassified balance sheet.
Il interest margin reached 2,584 billion euros, with an increase of 6,7% compared to the first nine months of 2023. This positive result was mainly driven by the increase in the trade spread, supported by interest rate hikes and the control of deposit costs. Also the net commissions contributed to the growth, reaching 1,509 billion euros (+3,9%), with the savings products sector recording an excellent performance (+9,5%).
Banco Bpm: Cost-Income Ratio drops
Banco BPM continued to improve its operational efficiency, with the cost-income ratio dropped to 46,7%, compared to 48,4% in the same period in 2023. The Common Equity Tier 1 (CET1) ratio of Banco BPM reached a record level of 15,48%, compared to 14,16% recorded at the end of 2023.
As of September 30, 2024, the net loans to customers Banco Bpm fell to 101,4 billion euros, down 4,1 billion compared to the end of 2023. Net impaired exposures amounted to 1,7 billion, with an incidence on total loans reduced to 3,1%, compared to 3,5% recorded at the end of 2023.
Banco Bpm: 40 cent dividend coming soon
Banco Bpm confirms the profit and capitalization targets set out in the Strategic Plan. The Bank has approved a interim dividend of 40 cents per share for fiscal year 2024, with a total expected distribution of 1,45 billion euros for the full year, 150 million more than the initial estimates of the Strategic Plan. coupon will be detached on November 18, 2024 and the payment will take place on November 20, with a yield of 6,14% based on the closing price of the shares on November 5. This measure reinforces confidence in exceeding the overall remuneration target of €4 billion over the period 2023-2026.
Future goals
Banco Bpm management remains confident in the sEarnings per share target exceeded (EPS) of 95 euro cents for 2024, with the possibility of reaching 1,15 euros, including the expected extraordinary components. The bank also confirms the profit and capitalization targets announced in the Strategic Plan, with the aim of continuing the trend of sustainable growth and consolidating its position in the Italian banking landscape.
BancoBpm launches takeover bid on Anima at 6,2 euros
Bpm bank ha surprised the market announcing atakeover bid (op) totalitarian su Anima, the leading independent Italian fund manager, price of 6,2 euros per share, for a total value of approximately 1,6 billion euros. The bank, which already holds 22,8% of Anima's capital, aims to strengthen the business model of Banco Bpm Vita, which will be transformed into an "integrated Life Insurance and Managed Savings product factory", as written in the official note. The goal is to fully integrate the Sgr, with which the bank has had a strategic partnership for over 15 years.
The offer, supported by Citi, aims to consolidate the group, which is expected to become the second largest banking group in Italy, with assets under management by Life Insurance and Managed Savings of approximately 220 billion euros, within a total of financial assets of customers of approximately 390 billion. The offer is however bound upon reaching a capital quota of at least 66,67% in Anima and upon confirmation of the possibility of applying the regulatory treatment of the so-called Danish Compromise.
The group aims to achieve “stable and lasting growth in the income statement” through revenue diversification, even in a context of lower interest rates. expectations are positive: a is expected increase in earnings per share of about 10% and a RoTE improvement to 2026, with a leap from 13,5% to 17%. The CET1 Ratio reduction it should be contained, around 30 bps. In addition, the part of revenues from commissions is expected to grow “from 37% to over 45%”, while the contribution of the factories produced to the group’s revenues will reach 1,6 billion euros by 2026.
Updated at 20:15 on Wednesday 6 November 2024
