Il Net income of the Banco BPM Group at the end of June was 384 million euro, up by 6,3% compared to the same period of 2021, while the adjusted net result, net of non-recurring items, rose by 30,1% to 497 million “il best result since the birth of the Banco Bpm group” says a note from the Institute.
Just in second quarter theprofit fell 21,1% annually at 206 million, though sopra the 180 million provided by the political consensus of analysts.
In a stock market session that rewarded the whole banking sector with the Stoxx of the sector up by 1,4%, the Banco Bpm share closed up by 5,02%. The purchases continued to reward even those institutions that have already released their quarterly reports in recent days, from UniCredit (+2,07%) to Intesa Sanpaolo (+1,53%). Tomorrow it's Bper's turn (+4,0%).
Net fees up thanks to commercial banking services
I operating income in the semester they fell by 0,8% to 2,3 billion, with interest margin up 2% to 1,04 billion. The net commissions, to 966,9 million, are up by 1,8% thanks to the commercial banking services segment (+5,7%). On the other hand, the contribution of the services of brokerage management and consultancy (-2% compared to 30 June 2021).
They fell by 1,5% to 1,26 billion operating charges, for a report cost/income down to 54,5% from 54,9% in the first half of 2021 and 55,8% for the full year 2021,” he says.
Le adjustments to customer loans, fell by 35,7% to 304 million, "while ensuring the maintenance of a solid loan coverage profile".
Il gross result from continuing operations it rises to 688 million compared to 526 million in the first half of 2021 with a growth of 30,8%.
The search for an insurance partner continues only for the Non-Life class
The BoD, after having examined, from a strategic, financial and operational point of view, the non-binding offers received for the insurance Joint Ventures from some potential partners, resolved to continue the evaluation of a possible new partnership in the bancassurance sector exclusively for the Non-Life business. “The evaluation process should be completed by the end of the current year” says the note.
Outlook 2022: payout at 50%, earnings per share will be above 0,40 euro
As far as the 'outlook for 2022, Banco BPM expects that theearning per share will be at an upper level of 0,40 euros, with payout at 50% and confirm the objectives of the strategic plan 2021/2024.
“The interest margin, which will be affected by the reduction in the extra remuneration of ECB funding in the form of TLTRO, will benefit from the rise in rates both in the commercial component and in that deriving from the financial assets portfolio” says the note. "In fact, the group has significant sensitivity, equal to approximately +443 million euro in a scenario of a parallel shift in the interest rate structure of +100 basis points"
Exposure to Russia little changed at 82 mln
As for the Group's direct exposure to Russia and Ukraine, it remained substantially constant and amounted to approximately 82,0 million, equal to less than 0,1% of total cash assets.
As for the solidity of assets, the CET 1 Ratio phased-in and CET 1 Ratio fully phased at 14,0%20 and 12,8% respectively, while the MDA buffer phased-in at 551 bps and fully phased at 424 bps
Core net loans grow by 3,4%
- “core” performing net loans (consisting of mortgages, loans, current accounts and personal loans) grew by 3,4% compared to 31 December 2021 and by 3,0% on an annual basis. The volume of new disbursements to households and businesses rose to 13,7 billion, up 13,5% year on year, while the "core" direct deposits is equal to 107,4 billion with a growth of 2,3% compared to the end of 2021 and 3,1% on an annual basis.
The derisking policy for non-performing loans continues
As regards the non-performing loans the Group's derisking strategy continues: -1,4 billion in the first half, including the sale of 700 million in non-performing loans (“Argo Project”). The Group also resolved the increase of the disposal targets bringing the overall target over the course of the plan to over 500 million. Strengthening the derisking process has allowed for a further contraction of non-performing loans, whose impact on total gross loans is reduced to 4,8%, bringing the total of gross non-performing loans from 7,1 billion in June 2021 to 5,5 billion.
Completed the buyback program
The note recalls that the program for the purchase of treasury shares to service the employee incentive plans has been completed for 4,6 million shares equal to 0,3% of outstanding ordinary shares and a total value of 16 million. Treasury shares held by Banco BPM as at 30 June 2022 amounted to 6.207.721, equal to 0,41% of the share capital.
