THEBanco Bpm shareholders' meeting it almost unanimously approved the 2021 budget, with 99,18% of votes in favour, the distribution of profits with 99,7% and the remuneration policy with over 94%. Therefore, no surprises from the Assise for the members of the group led by Giuseppe Castagna who will take off a dividend of 19 cents per share, equal to a total dividend of 287,9 million euros, with a pay-out of 50%, higher than the objectives of the strategic plan, and a dividend yield of 7%, calculated on the basis of the closing price of the institute's shares as at 6 April 2022 equal to 2,711 euros. The coupon will be detached on Tuesday 19 April 2022 and paid on 21 April. On the Stock Exchange at the moment, the Banco Bpm share rises by 2,29% to 2,77 euros, recovering after two sessions of decline.
Despite the scenario of uncertainty caused first by the pandemic and now by the consequences of the conflict in Ukraine, Banco Bpm "remains focused on the objectives of the business plan in a macroeconomic framework that remains complex". "The war has not directly impacted the bank," added the CEO Joseph Chestnut, recalling that direct exposure to Russia and Ukraine is limited to 0,06% of the group's total assets. Banco Bpm is ready to fully commit itself to further and more specific measures in favor of businesses and households, "also in support of possible government measures, should the short-medium term consequences require it", added Castagna.
Banco Bpm balance sheet 2021: excellent performance despite Covid
2021 results "excellent and above market expectations", even "better than the pre-pandemic results confirming the validity of the strategy implemented", underlined Castagna, noting that 2021 ended with a Net income equal to 569 million euros, excluding non-recurring items, above pre-pandemic levels, (710 if we consider the adjusted figure more than doubled from 330 in 2020). Results that have allowed the Board of Directors to propose, in line with the indications of the ECB, the distribution of a dividend of 19 cents per share which the chairman Massimo Tononi defined as "a just recognition for our shareholders, trusted travel companions".
In 2021 operating income grew to 4.511 million (+8,6% on 2020), the operating margin by 15,9% to 1.995 million while the cost/income ratio fell from 58,5 to 55,8 %. Loan loss provisions amounted to €887 million, down from €1,34 billion in 2020.
As regards the non-performing loans net amounted to 3,3 billion euro (-24.% compared to the end of 2020), with a decrease in the gross npe ratio from 7,5% to 5,6%. This indicator will drop to 4,8% in 2022 thanks to a further derisking activity on loans for 1 billion euro. The capital position is confirmed as "very solid", with a fully phased Cet1 at 13,4%.
From a commercial standpoint, core performing net loans (represented by mortgages, loans, current accounts and personal loans) rose by 1,1% to 99,5 billion, while core direct deposits also grew, +5,1 % to 105 billion, and that under management, which rose by 9,6% to 65,3 billion.
Remuneration policy
Banco Bpm's shareholders' meeting also approved the report on the remuneration policy and the compensation paid and the share-based plans of the institution, with over 94% of the votes in favour, in particular:
- long-term plan aligned with the time horizon and the objectives of the 2021-2024 Strategic Plan, with even more challenging objectives;
- ESG metrics as qualifying elements for the personnel incentive system, in line with the ambition of the 2021-2024 Strategic Plan
Furthermore, the shareholders' meeting approved the purchase of Banco Bpm shares, in one or more tranches, for a maximum total amount of 10 million euro, starting from 7 April 2022 until the shareholders' meeting at which it will be presented the 2022 financial statements.
Banco Bpm: rumors about pact
Meanwhile, Milano Finanza reports that the pact which currently brings together 6,17% of the capital of Banco Bpm, and made up of Inarcassa and five foundations, the Enpam Foundation, the Crt Foundation, CariLucca, the Trento and Rovereto Foundation, the Alessandria Foundation, would be of interest to include new subjects, in order to further increase the shareholding, in view of the renewal of the board expected in 2023.
Equita Sim points out that the pact between the Foundations is to date the bank's first shareholder nucleus and acts as the main interlocutor in the event of M&A operations that may involve the bank. Shortly before the outbreak of the conflict there was talk of one merger with Unicredit, but the war overshadowed it all.
