Bpm bank e Crédit Agricole they decided to strengthen their alliance in Consumer credit, operated through the joint venture Agos Duchy, extending the agreement until 2029. This recently expired shareholders' agreement has been extended for five years and includes an important extension of Banco Bpm's right to exercise aput option unconditional on 10% of the capital of Agos Ducato, of which Crédit Agricole holds 61%. This right, now extended until 2028, is set at a price of 150 million euros.
In addition to the financial aspects, Banco Bpm is investing heavily in digitalisation and the omnichannel strategy. The expansion of the offer of digital solutions and the increase in the contribution of the "Digital Branch" are transforming retail operations, strengthening both traditional branches and direct online sales.
Banco Bpm's share and its possible future on the stock exchange
Currently, Banco Bpm holds a 39% stake in Agos Ducato. The partnership, launched with a significant reorganization in 2020 under the leadership of the former CEO of Banco Popolare Pier Francesco Saviotti, included from the beginning the possibility of a future stock market listing of Agos Ducato. This scenario has been confirmed in the new agreement, with one important change: the process for the IPO it was Simplified, providing for a single procedure that the Piazza Meda bank will be able to request starting from 1 July 2025, until the expiry of the agreement.
The financial results
On the front financial, Banco Bpm has exceeded the expectations of the 2023-2026 Strategic Plan, with a net profit of 750 million euros for first half of 2024, up 20% compared to the same period in 2023. In the second quarter alone, profit rose to 380 million euros, an increase of 5,8% compared to the previous year, exceeding market estimates of 368 millions. Operating income for the half-year grew by 8,4%, reaching 2,8 billion euros, thanks to an interest margin of 1,7 billion (+10,9%) and commissions of 1 billion (+4,5, XNUMX%). Also Agos Ducato, despite having closed 2023 less brilliantly than the previous year, continues to represent a solid investment for Piazza Meda. The company recorded revenues of 828,9 million euros and a net profit of 187,7 million euros. Although the increase in financing costs influenced the results, Agos Ducato remains a significant source of profitability for the group.
The alliance in the insurance market
Consumer credit is just one part of the strategic alliance between Banco Bpm and Crédit Agricole which holds a 9,18% stake in Piazza Meda. Also the insurance sector is of crucial importance. In 2022, Banco Bpm chose Crédit Agricole as a partner for the non-life business, consolidating the collaboration, while it opted to internalize the life business, after also considering Axa.
In 2023, Banco Bpm completed its insurance structure: it now controls the life insurance companies (Bpm Vita, Vera Vita and Bbpm Life) and holds a 35% stake in the non-life insurance companies (Bpm Assicurazioni, Vera Assicurazioni and indirectly Vera Protection), in joint venture with Crédit Agricole Assurances. In the first half of 2024, Banco Bpm continued to develop and optimize its insurance activities, aiming for a new IT platform to be implemented by 2025. The results are positive: the insurance activity generated a profit of 14,8 million euro, with a total collection of 15,4 billion euros from the companies Bpm Vita, Vera Vita and Bbpm Life.
