Bpm bank archive 2018 with a net loss of 59,4 million. The negative result was caused by the redundancy of 584 million recorded in the fourth quarter and in turn produced by loan adjustments for almost one billion, mainly in relation to the maxi sale of 7,8 billion Npl.
Il normalized result net of non-recurring items, it amounted to 342,8 million, compared to 557,8 million (net of badwill and impairment) in 2017, when the financial statements had benefited from the sale of Aletti Gestielle (the accounting profit had been 2,6 billion).
Going back to 2018, i operating income they rose by 6,4% to 4,8 billion, with interest margin at 2,3 billion (+8,5%) and net commissions at 1,85 billion (-5,2%). Operating expenses decreased by 4,5% to 2,8 billion, for a cost/income ratio down to 58,5%.
On the property front, the Cet1 phased in it stood at 13,5%, while the fully phased figure reached 11,5%.
In the note, Banco Bpm recalls that “it was built in 2018 a very relevant derisking action”, which led to a reduction of 13,6 billion in the gross amount of non-performing loans during the year.
Since the merger between Banco Popolare and Bpm, the decrease in stocks has been 18,2 billion, "equal to more than double the amount envisaged in the strategic plan".
now net suffering amounted to 1,6 billion (-75,5% in the year), with an incidence on total loans of 1,5% (from 6%). UTPs are also down, down 21,8% to 5 billion.
In conference call, the CEO of Banco Bpm, Joseph Chestnut, let it be known that "the ECB has confirmed that it will not impose obligations on the stock" of NPLs. The institute undertakes "to apply rigorous accounting rules and provisioning methodologies - he said - also considering the potential inputs from the regulatory authorities". In relation to the stock of non-performing loans, therefore, "the group will continue to reduce volumes, on the basis of the recent derisking track record, which has seen an average reduction in net NPLs of 32% per year (net of disposals)".
Castagna then announced that in 2019 there will be a dividend: “We are now working on the new scenario and we will see if we can achieve the profitability we expect during the year. We'll be clearer at that point."
As for possible mergers, the door is closed: “We are not currently considering a consolidation for our bank – said the manager again – We think we can have a good 2019 on our own”. Castagna then noted that to be able to obtain a cost cut like the one achieved by Banco Bpm "we need to merge", but that in order to truly be able to merge "there are other factors to consider", such as the willingness of potential partners and the general regulatory context.
