Bpm bank closes the 2017 half-year, the first after the full operation of the merger between Bpm and Banco Popolare, with a net profit of 94 million (127 at adjusted level), higher than the consensus, and announces the closing of the agreement for the sale to Anima of Aletti Gestielle, with a gross capital gain of approximately 700 million. The profit was driven by the increase in core operating income (current accounts and deposits) which grew by 5,5% to 2,1 billion.
These are the most prominent data among those announced by the banking group: il result of operational management is up 10,2%, year on year, to 854 million and the operating charges they mark a drop of 5,5% stopping at 1,52 billion. Net non-performing loans decreased by 2,9 billion on an annual basis and by 2 billion compared to the end of 2016. The incidence on total loans decreased by 200 basis points, from 15 to 13 per cent. Liquidity skyrockets with €20 billion free eligible assets.
These are the most significant numbers among those disclosed by the banking group led by CEO Giuseppe Castagna and by the president Carlo Fratta Pasini.
Il interest margin – continues the press release issued by the group – it stands at € 1.060,0 million compared to the € 1.094,3 million of the aggregate figure as at 30 June 2016, recording a decrease of 3,1% and 7,5% on a like-for-like basis (excluding the contribution of the extraordinary components and the impact of the "reversal effects" of the PPA). The annual decline, explains the management, is mainly attributable to the lower contributions provided by the securities portfolio (-€ 55 million compared to the figure for the first half of 2016) following the fair value measurement (within the scope of the PPA) of the debt securities that former Banca Popolare di Milano held available-for-sale assets in its portfolio. The interest margin on a like-for-like basis also showed an increase in the second quarter (+1,2%) thanks to growth in both the commercial and financial margins.
Are the operating income "core" to drive the profit of the group, with a leap of 5,6% to 2,1 billion compared to the aggregate figure of
first semester 2016.
The result of the investee companies, valued using the equity method, is positive for € 81,9 million, an increase compared to the € 77,4 million recorded in the first half of last year.
Coming to the net commissions they amount to € 1.090,7 million and are up by 15,7% compared to € 942,7 million in the corresponding period of last year. The growth is attributable to the brokerage, management and consultancy services sector, which rose by € 164,9 million in absolute value compared to the aggregate figure for the first half of 2016, essentially thanks to the growth of savings products and that of asset management.
In expenses decrease: those for personnel decreased by 4,8% to 917,1 million (also including the charge for redundancy provisions in the second quarter) mainly thanks to the reduction in the workforce by 362 units compared to the end of 2016.The others administrative expenses amount to € 498,7 million with a decrease of 9,2% compared to the figure for the corresponding period of the previous year.
La sale to Anima Holding of Aletti Gestielle, as mentioned, it will be paid entirely in cash at closing. The sale brings the Cet1 to 11,31%. The value defined between the parties is 700 million increased by an amount to be paid on a deferred basis 180 days after the closing equal to the excess shareholders' equity and the profits for the period accrued up to the closing, indicatively estimated at a total of approximately 250 million euros".
Banco Bpm and Anima have also laid the foundations for "the launch of a project for the possible further expansion of the perimeter of the
partnership through the transfer to the ANIMA group of the delegated management activities in the insurance field currently carried out by Banca Aletti on behalf of some insurance joint ventures of which Banco BPM is currently a part (the "Transfer of Delegated Management Activities").
The project, subject to further negotiation, if implemented, would in any case bring to the ANIMA group (through Aletti SGR) "approximately 11 billion euro of proxies and has to date been valued indicatively in an amount equal to a further 150 million euro".
The agreement reached provides that the strategic partnership between Banco BPM and ANIMA and the related commercial agreements for the distribution of products are applicable throughout the Banco BPM Group for a period of 20 years from the closing.
Throughout the day, the positive consensus on the half-yearly accounts, published with the Stock Exchange closed, pushed the banking group stock leading the Fitse Mib with a closing up of 2,39% to 3,26 euros
