Bpm bank has registered a net profit of 750 million euros in the first half of 2024, with an increase of 20% compared to the first half of 2023. The collection direct banking rose to 129,8 billion euros, compared to the 126 billion recorded as of 31 December 2023. At the same time, the indirect collection increased from 106,2 billion to 111,2 billion. In contrast to collection growth, i customer loans they suffered a decline of 3,3%, falling to 102 billion euros.
I operating income of the Bank increased by 8,4%, reaching 2,79 billion euros, thanks to the growth in the interest margin (+10,9%) and commissions (+4,5%). The operating result grew by 11,8%, to 1,46 billion euros, despite a 5% increase in costs, to 1,34 billion euros, with the cost income ratio improving from 49,5, 47,9% to XNUMX%.
Le credit adjustments decreased by 25%, falling to 194 million euros, while adjusted profit increased by 19%, reaching 776 million euros. The bank's capital position reached record levels with a CET1 ratio of 15,2%, up from 14,2% at the end of 2023. The quality of the credit portfolio improved, with net non-performing loans falling to 1,6%, the annualized cost of risk reduced from 53 basis points in 2023 at 38 basis points, and gross impaired loans dropped from 3,8 billion to 3,4 billion, with a ratio to total loans reduced from 3,5% to 3,3%.
Guidance raised
Banco Bpm has reviewed earnings per share guidance is rising for 2024 from 0,9 to 0,953 euros, indicating that the expected results for the year are already close to the net profit targets for 2026, set at over 1,5 billion euros. L'interim dividend for 2024 it was increased from 550 to 600 million euros, with a total distribution to shareholders of 150 million euros, in line with the 2023-2026 plan, laying the foundations for exceeding the shareholder remuneration target of 4 billion of euros cumulative in the period 2023-2026.
By the end of the year, explains the Piazza Meda Institute, "the interest margin should still confirm a positive trend compared to 2023, benefiting from an average level of rates higher, over the 12 months as a whole, than that of the previous year".
Castagna, Banco Bpm: “More money to make shareholders happy”
“We delivered a solid set of results that lead to a double increase in guidance both in terms of earnings per share and in terms of interim dividend, thanks to an adjusted profit that grew by 19% to 776 million euros, above the plan trajectory strategic strategy and a very promising CET1 growth of 15,2%, a record level since the merger and well above the strategic lines of the plan" said the CEO of Banco Bpm, Joseph Chestnut during the conference call on the half-year results.
“The profit of around 1,5 billion euros expected this year gives us a lot of confidence in the objective of over 1,5 billion by 2026 and this level may represent the prospect of long-term sustainable profitability starting this year.”
“In the first part of 2025 we will provide a better understanding of our strategy for shareholder remuneration, but thanks to the capital generation and profitability achieved, there is more money to make our shareholders happy” the CEO then explained in response to an analyst who asked if the bank was thinking about introducing a share buyback.
