Banco Bpm's net profit rebounds in the third quarter, where it scores 157 million (167 excluding adjustments), while in the spring three months it had been 76 million. In total, in the first nine months of the year the Lombard-Veneto bank has already set aside a net profit of 263 million. But it is above all operational management that marks an important growth during 2020: 319 million in the first quarter, 388 million in the second, 562 million in the third. In detail for the third quarter, the interest margin amounted to 520 million, up by 8,4% compared to the 2nd quarter; net commissions at 418 million, an increase of 11%
compared to the 2nd quarter; operating income on the other hand amounted to 1.143 million, up by 14,2% compared to the 2nd quarter.
The performance of the balance sheet aggregates as at 30 September 2020 was also good: core net performing loans to customers increased (96,5 billion, +6%) and core direct deposits (96,5 billion, +9,9%) compared to December 2019; new loans to customers amounted to €20,36 billion, up by 26,6% compared to the first nine months of 2019, of which €7,1 billion relating to measures backed by state guarantees. The decline in non-performing loans also continues: net ones are 5,1 billion (-8,2% compared to December 2019). L'Net NPE ratio down to 4,7% from 5,2% at the end of 2019 and the gross NPE ratio is 8,6%, (9,1% at the end of 2019). The ratios are expected to further decline following the disposals of non-performing loans, the finalization of which is expected by the end of 2020, for an estimated amount of up to €1,2 billion. As a result of these transactions, the gross NPE ratio would drop to 7,7%, 6,7% if calculated in line with the EBA definition.
They are confirmed capital and liquidity positions are also very solid: CET1 Ratio phased-in and CET1 fully loaded stand at 15,4% and 14,1% respectively; MDA buffer on phased-in and fully loaded TCR at 639 bp and 475 bp respectively14; LCR 198% and NSFR 100%. Personnel expenses, equal to 356,9 million, show a reduction of 10,3% compared to 398 million in the second quarter, mainly due to savings related to the health emergency situation, as well as the reduction compared to the amount previously forecast of the charge associated with the group's personnel incentive system.
