Bpm bank closed the first quarter of the year with a net profit up to 223 million (compared to 115 million realized in the first quarter of 2017). However, the data, published on Wednesday evening after the close of the markets, was lower than expected, so much so that today at the opening of the session in Piazza Affari, the banking group's share is among the worst in the Ftse Mib, with a loss of over 3%, below 3 euro per share.
The interest margin, informs the note issued by Banco Bpm, stands at 595,1 euros net of the IFRS 9 reclassifications; this figure goes up to €529,4 million compared to €516,9 million in the first quarter of 2017 (figure net of the non-recurring effect of interest on TLTRO-II loans relating to 2016).
Net commissions amounted to 476,5 million compared to 515,8 million in the first three months of 2017. Operating costs decreased to 769,5 million compared to 770,3 million at 31 March 2017. Adjusted costs amounted to 699 million and show a decrease of 3,4% compared to corresponding aggregate for the first quarter of 2017; the gross operating result amounted to 398,2 compared to 402,8 million as at 31 March 2017.
The group's de-risking action continues. Net non-performing loans are down by €1,7 billion compared to the end of the year, with an incidence on total loans decreasing from 12,1% (end of 2017) to 10,7%. Coverage of gross non-performing loans increased from 48,8% as at 31 December 2017 to 53,8%. Net non-performing loans amounted to 5,2 billion (-1,3 billion compared to the end of the year) with the incidence on total loans falling to 4,9% (6% at the end of 2017). Coverage of non-performing loans increased from 58,9% to 66,4%. The new de-risking plan is confirmed which envisages the completion of the sale of around 5 billion bad loans by June 2018.
The Cet 1 Ratio “IFRS9 PHASED IN” is equal to 13,48% and the IFRS9 FULLY PHASED” Proforma is 12,10%. Loans to customers amounted to 106,2 billion. Direct deposits from customers amounted to 107,9 billion (107,3 billion at the end of December 2017). Also in the quarter the growth trend of "core" deposits from current accounts and sight deposits was confirmed (+0,9 billion compared to the end of the year) and the decrease in the more costly forms of deposits (-1,1 billion for bonds) . Indirect customer deposits amounted to 91,6 billion (compared to 97,4 billion as at 31 December 2017), down by 6%.
The ordinary management of Banco Bpm over the next few quarters will remain marked by the recovery of profitability, which will benefit from the synergistic effects resulting from the merger.
The trend in proceeds, reads a note, while remaining competitive pressures on margins, will be able to benefit from a further containment of the average cost of funding, thanks to the residual margins for optimizing its mix, the positive contribution of the subsidiaries and the trends characterizing the aggregate of commissions, in particular those deriving from management, intermediation and consultancy services.
The containment of operating costs, through the improvement of efficiency, the implementation of specific actions aimed at optimizing expenditure and the rationalization of organizational functions, will continue to constitute one of the main factors of attention.
The levels of coverage of non-performing loans will remain high, and the reduction of stocks will continue both through the internal workout and, as mentioned, through the implementation of the actions envisaged in the de-risking plan. Banco Bpm continued to work “for the risk reduction strategy and to strengthen capital. We have a very solid Cet1,” he said the managing director Giuseppe Castagna speaking in conference call with the analysts.
