Bpm bank archive a quarter to frame. The institute led by Giuseppe Castagna closed i first months of 9 2023 with a profit almost doubled, equal to 943,4 million euros (+93,6%), compared to the same period of 2022. In the third quarter alone the profit jumped to 319 million (from 136 in 2022). Going back to 9 months, i operating income they grew by 14,6% to 3,9 billion, with edge di interest to 2,4 billion (+52,3%), mainly attributable to the increase in the commercial spread, following the rise in interest rates, and the limited impact on the cost of deposits which more than compensated for the loss of benefits relating to remuneration of TLTRO financing. Net commissions amounted to 1,4 billion, down 2,2%.
Banco Bpm accounts
The financial figures confirm the significant results achieved: the net performing core loans (consisting of mortgages, financing, current accounts and personal loans) amounted to 99,1 billion with a volume of new disbursements of 14,6 billion; there collection direct it amounts to 124,5 billion, an increase of 0,8% compared to the end of 2022; indirect collection reaches 100 billion, up by 8,7 billion compared to 31 December 2022.
At the end of September 2023 the incidence of non-performing loans on total gross loans was reduced to 3,2% from 3,9% on 30 September 2022. The cost of credit, constantly decreasing at 47 bps annualized compared to 62 bps at the end of 2022, represents the lowest level recorded since the creation of the Group, while guaranteeing significant levels of coverage of impaired loans.
Up 1,4% to 1,9 billion operating charges, for a cost/income ratio that fell to 48,4% (from 54,7% in September 2022). As for capital solidity, the coefficient Cet 1 it is at 14,9% taking into account the benefits deriving from the application of the so-called Danish Compromise, which the institute was authorized to use (the approval arrived last week).
Improves 2023 profit target
Bpm bank revises upwards target useful for the whole 2023: “above 80 euro cents”, i.e. over 1,2 billion. Previously the bank estimated a 2023 EPS above 80 euro cents, further strengthening for 2024, significantly exceeding both the profitability trajectory and the overall targets outlined in the Strategic Plan, which will be updated on Tuesday 12th December. At this time, the shareholder remuneration targets will be updated, which may reflect the positive results achieved in terms of profitability and organic creation of capital", we read in the note on the accounts.
Banco Bpm: S&P assigns “BBB-” rating, positive outlook
S&P Global Ratings assigned a long-term rating “BBB-” at Banco Bpm with a outlook positive. The short-term rating is “A-3”. “We think that in recent years the bank has significantly improved its capitalization while simultaneously cleaning up its balance sheet and selling a large stock of problem assets,” the ratings agency writes. Furthermore, the positive outlook "reflects the possibility that the judgment will be improved in the next 18-24 months if the bank implements the issuance plan, increasing the buffer of subordinated" available for a bail in and "will provide clarity on the fact that the additional buffer for loss absorption will remain sustainably above 350 basis points”.
