Banco Bpm, led by CEO Giuseppe Castagna, in presenting the new 2023-2026 industrial plan indicated the forecast of a cumulative net profit of approximately 6 billion in the three-year period with "4 billion in shareholder remuneration over the Plan horizon".
In terms of shareholder remuneration, this is "five times compared to the distribution of the last 4 years and more than 50% of the current market capitalization" which is currently equal to approximately 7,78 billion euros. After the data the title a Business Square share up 2,63% to 5,16 euros.
Coupon in two tranches in 2024
The institute will introduce the payment of a interim dividend in 2024, we read in the presentation slides of the new 2023-2026 strategic plan to the financial community. The bank will also evaluate "a further increase in shareholder remuneration using excess capital" in the event of "full achievement of the plan objectives". In particular, next year an overall distribution of dividends of approximately 1,3 billion is expected, of which approximately 750 million "based on 2023 profit". From 2024 "the remuneration methods (dividends/share buybacks) will be defined year by year", continuing to maintain, says a note from the institute, a "solid capital position, with a CET 1 Ratio of around 14% in 2026 ”.
The CEO Castagna: a stand alone plan
“The commitment made by all our colleagues has allowed us to achieve, a year early, brilliant results and exceed the targets of the 2021-2024 Plan. The new 2023-2026 Strategic Plan built in a stand alone logic, is based on solid pillars and intends to clearly define strategies, actions and tools that aim at sustainable income growth, accompanied by the creation of value for all stakeholders and by a important increase in remuneration policies capable of rewarding shareholders" said CEO Giuseppe Castagna.
Objective of the Plan: remuneration to shareholders
The ambition of the new Plan, says the institute, is to increase remuneration for shareholders in a very significant way, exploiting the financial and industrial levers that will give further impetus to the growth of total revenues. The strategic plan plans to grow i revenues of the bank from the 5,25 billion expected in 2023 to 5,4 billion at the end of the plan and to bring the useful from over 1,2 billion this year to over 1,5 billion in 2026, maintaining a capital solidity index around 14%.
and a RED to 13,5% in 2026 from 12% in 2023.
Interest margin drops, but core revenues grow
the decline in the interest margin, which will fall from 3,25 to 3,05 billion, will be compensated by a growth in other 'core' revenues, by a "substitution effect" of new assets at higher rates than the maturing stock, from the dynamics of volumes - with a stock of loans to customers which will return to 2022 levels over the course of the plan - and from active management of the balance sheet, in particular commissions will increase from 2 to 2,4 billion, while the growth in operating costs will be contained at 100 million euros, going from 2,6 billion in 2023 to 2,7 billion in 2026. 600 million euros of investments expected for IT.
Cost cutting by cutting staff
The rationalization of the distribution network continues with the elimination of over 400 cash desks and the reduction of the number of branches to approximately 1.250 in 2026. departures of 1.600 employees, also through an early retirement incentive plan which is expected to be activated in 2024, with new entries of 800 young people with high potential.
