It met today under the chairmanship of Massimo Tononi the board of directors of Bpm bank, which approved the group's operating and consolidated results as of 31 December 2023. The 2023 financial year was characterized by a macroeconomic scenario that was still uncertain also due to the recent related tensions to the conflict in the Middle East; however, in this context the group recorded record levels of profitability with a gross profit from continuing operations of 2,041 billion and a net profit of 1,264 billion. A dividend per share of 56 cents is also proposed.
Banco Bpm expects profit increase in 2024
Banco Bpm confirms the upward trend of the price for 2024Net income of the group, with an EPS of approximately 0,90 euros net of non-recurring components (above 1,1 considering the one-off components currently conceivable), in line with the profitability trajectories outlined in the strategic plan presented in December. The group also confirmed the overall profit target of 6 billion euros and shareholder remuneration of 4 billion announced in the Plan. The overall distribution in the calendar year 2024 will be equal to 1,4 billion euros, with a payout of 67% over the course of the plan.
Banco Bpm, the other balance sheet data
Among other budget data, the interest margin is equal to 3,289 billion with a growth of 42% compared to 2022, while the operating result rises to 2,770 billion (+29%). The balance sheet figures confirm the growth, with the direct collection which amounts to 124,8 billion, an increase of 1,1% compared to the end of 2022, while the indirect one reaches 106,2 billion, up by 14,8 billion. “Core” net performing loans (consisting of mortgages, financing, current accounts and personal loans) stood at 96,9 billion with a volume of new disbursements of 19,4 billion.
Regarding the management strategy of non-performing loans, states a note, the group has given a further acceleration to the process derisking, foreseeing overall transfers of around 700 million over the course of the plan, net of the operations already carried out during the year, which will allow a further reduction in the stock of impaired loans to be achieved. As of 31 December 2023, the incidence of non-performing loans on total gross loans was reduced to 3,5% from 4,2% as of 31 December 2022. The cost of credit decreased to 53 bps compared to 62 bps at the end of the year 2022. The stock of net impaired loans is equal to 1,9 billion, with -21% compared to 2022. The coverage of bad loans is 60,9%, but also considering write-offs, it rises to 68,8%; unlikely to pay are covered at 43,2% (40,3% at 31 December 2022), total impaired loans at 50,4% (50,6% at 31 December 2022).
Castagna: “Satisfied with the results”
“We are truly very satisfied with the brilliant results achieved: the net profit of approximately 1,3 billion and the proposed dividends higher than the guidance, equal to 56 cents per share, clearly summarize the ability to generate value that we have consistently achieved and which , by virtue of the strategic plan approved last December, we will continue to develop with increasing incisiveness". As Joseph Chestnut, CEO of Banco Bpm, comments on the bank's results in a note. “With the new strategic plan – Castagna continues – we have embarked on a path which, in our ambitions, will lead us on the one hand to establish an income statement structure that supports the systematic creation of value for all stakeholders, on the other to consolidate our position as the third banking hub”.
The banker underlines how "the current pace of value creation allows us to combine the solidity of the capital position and a dividend that has more than doubled compared to 2022 with the constant improvement in the quality of the assets, demonstrated by the cost of risk reducing to 53 points basis compared to 62 basis points in the previous year. This result was achieved not only thanks to the selective credit policies, but also to the derisking strategy which led to a further reduction of impaired loans on the total gross loans".
