The shower of quarterly reports expected for today continues with two leading banks Banco Bpm and Mps.
Banco closed the first quarter of 2021 with core revenue (interest margin and commissions) up 5,9% to 968 million euros, "the best result since the fourth quarter of 2018, bringing the level of operating income back to that of the period prior to the crisis triggered by the pandemic", underlines the bank in a note.
I operating income grew by 18,1% to 1,128 billion, while the result of operational management increased by 51,4% to 484 million. L'pre-tax profit more than doubled, rising from 104 million in the previous year to 259 million as at 31 March 2021 (+150,3%), with the net profit rose from 100 to 151 million "net of non-recurring components related to derisking", underlines the bank.
In terms of equity, the cet 1 ratio fully phased is at 12,7% and the Mda Buffer Fully Phased at 377 basis points.
- “core” performing net loans (consisting of mortgages, loans, current accounts and personal loans) amounted to 99,2 billion euro, with a growth of 5,6% compared to the previous year. There core direct funding marked an increase of 12,8% to 101,7 billion, while that live it rose by 14,6% to 94,2 billion.
“As far as non-performing loans are concerned, a further acceleration has been decided al derisking process with the sale of 1,5 billion bad loans by the end of June ("Progetto Rockets") and an overall target for the sale of non-performing loans of € 1,65 billion", the bank announced in a note, explaining that thanks to the rockets project a “significant reduction of suffering”, whose incidence on total gross loans will decrease from 3,1% as at 31 March 2021 to 1,8% adjusted, bringing total gross non-performing loans from 8,7 billion to 7,2 billion adjusted with an NPE ratio gross down from 7,5% to 6,3% adjusted.
The bank also points out that "strong supervision of the loan portfolio continued, through a constant process of monitoring the credit profile of customers with particular attention to the positions in the Covid-19 moratorium granted, the amount of which was reduced to 11,3 billion ( compared to 16,2 billion originally granted) and which, within the past due positions, recorded a default rate of 0,9%”. As at 31 March 2021, disbursements backed by state guarantees amounted to 2,7 billion, bringing the total disbursed to 12,9 billion.
Monte dei Paschi returns to profit after more than a year, which in the first quarter of 2021 recorded a positive net result of 119 million euros, clearly beating the consensus. The net operating result also improves, rising from 26 million in the fourth quarter of 2020 to 203 million as at 31 March 2021. This is, underlines the Sienese bank, the highest result in the last three years.
Revenues are up, up 12,9% on the first three months of last year to 824 million euro. Net interest income stood at €280 million, down 14,5% compared to the same quarter of 2020.
Turning to capital ratios, the Common Equity Tier 1 Ratio stood at 12,2% (compared to 12,1% at the end of 2020) and the Total Capital Ratio was 15,9% (from 15,8% at the end of 2020). fourth quarter XNUMX).
The incidence of net non-performing customer loans on total net customer loans as at 31 March 2021 it was equal to 2,6%, in line with December 2020 and down compared to March 2020 (equal to 7,1%). In particular, the incidence in percentage terms of probable defaults fell to 1,8% in March 2021, while the incidence of suffering, equal to 0,7%, is unchanged compared to December 2020 and down compared to March 2020 (equal to 3,5%).
At the request of Consob, MPS disclosed some information on the equity shortfall, the prospects for business combinations and the capital increase calculated at 2,5 billion. In detail, the top management of Monte dei Paschi explained that, compared to the estimates formulated previously, which spoke of a shortfall of 300 million in the first quarter of 2021 with growth to 1,5 billion euros as of 1 January 2022, "at March 31, 2021 no capital shortfall has emerged and it is expected that 12 months from the reference date, i.e. as at 31 March 2022, the shortfall could be less than 1 billion including the effect of the update of the internal models "of the EBA guidelines".
Banca Mps added that “despite the reduction of the expected shortfall, at the moment the estimates of capital strengthening for 2,5 billion have not been reviewed, pending the results of the stress tests which will be communicated to the market next July”.
In the absence of a "structural solution", Mps confirmed that thecapital increase of 2,5 billion will be implemented between the fourth quarter of 2021 and the first half of 2022. Banca Mps "is still working" with the shareholder Mef "on the structural solution" for the bank, underlined the managing director Guido Bastianini in presentation of the accounts to the analysts.
Rocca Salimbeni finally recalled that Brussels, due to the non-compliance with some commitments set in the 2017-2021 restructuring plan, asked the bank for compensatory measures which the board approved last February and sent to the Brussels Competition DG with subsequent interlocutions which at the moment "they do not register significant developments".
