Banco Bpm (closed the semester with a net profit of 361 million euros, more than tripled (+243,4%) compared to a year earlier, of which 261 million in the second quarter alone. Revenues grew in the first six months (+18,8%) to 2,32 billion, also in relation to the 'core' part alone, i.e. interest margin plus commissions (+11,2% to 1,97 billion), says a note. The bank has a phased-in Cet1 ratio of 14,1% and a fully phased ratio of 12,9%. The fully phased Mda buffer is 402 basis points, including 95 basis points linked to regulatory headwinds detected in the half year.
In terms of credit quality, the stock of non-performing loans fell by 13,4% to 3,7 billion with a gross Npe ratio of 6,2% from 7,5% in the first quarter. By applying the EBA methodology, the ratio drops to 5,2%. The performance of operating income made it possible to achieve an operating margin of 1.048 million, up by 48,2% compared to the first half of 2020. The pre-tax result rose to 526 million compared to 210 million in the previous year with growth by 150,7%. At an adjusted level, this result rises to 644 million with a growth of 196,7%.
“During the half year – reads a note -, despite the difficult macroeconomic situation still impacted by the Covid-19 health crisis, the Group's commercial and organizational effort made it possible to record a strong recovery in operating results. In particular, operating income recorded an excellent performance amounting to 2.324 million with an increase of 18,8% compared to the corresponding period of the previous year. This figure represents an extremely positive result, bringing the level of operating income back to that of the period prior to the crisis triggered by the pandemic".
Banco Bpm currently expects 'core' revenues to decrease “slightly” compared to the first half, reflecting seasonal elements typical of the second half of the year. Furthermore, it estimates a 2021 net earnings per share of approximately 35 cents which, also considering the robust capital position, should allow for the remuneration of shareholders, with a pay out ratio of around 40%. By the autumn, the group will proceed with the presentation of a new strategic plan.
