Quarter to be framed for Bpm bank which in the late afternoon of Monday 8 May published its accounts for the first three months of 2023, closed with the main economic-financial parameters rising, and raised its targets, promising shareholders 1,25 billion in dividends in two years.
The quarterly of Banco Bpm
Banco Bpm closed the first three months of 2023 with a Net income of 265 million, an increase of 49,2% compared to the same period last year and above the 230 million expected by the market consensus. THE operating income they recorded an increase of 5,4% to 1,25 billion, driven by the boom of interest margin, which rose 45,2% to 743 million. The commissions they remained substantially stable (-0,3%) at 479 million.
- operating charges they rose 2,5% to 640 million, per a report cost/income dropped to 51,2%.
In terms of capital solidity, the coefficient Cet 1 it is equal to 14,15% considering the expected application of the Danish Compromise and the overall buffer with respect to the regulatory minimums is 544 basis points.
As regards the balance sheet aggregates the direct bank deposits is equal to 123,2 billion (-0,2% since the end of 2022), while that live it rose by 4,6% to 95,6 billion. The net loans to customers amounted to 107,8 billion (-1,5%), with new loans to households and businesses in the quarter for 5,2 billion. The net non-performing exposures are equal to 2,3 billion. Lincidence gross of adjustmentsand is 4,2% against 5,5% in March 2022.
Continuing the analysis of the income statement, the net adjustments to loans they stood at 137,5 million, down 9% from the same period of the previous year and 25,6% from the fourth quarter 2022. The cost of credit it is thus equal to 51 basis points, "which represents the lowest level recorded by Banco Bpm since its inception in 2017", underlines the institution which recalls having received the recognition of conglomerate status from the ECB in March financial, "which constituted the pre-condition for being able to access the benefits of the prudential treatment of the equity investment in insurance "deriving from the application of the so-called Danish Compromise, currently being evaluated by the competent Authorities".
Insurance and money
Continues “the process of integration of the insurance business started last year with the acquisition of control of the companies Bpm Vita Bank e Banco Bpm Assicurazioni and with the refinement of a agreement with Credit Agricole Assurances for the launch of a commercial partnership in the damage/protection sector”.
Furthermore, after the end of the quarter, the institute started the valorisation project of the money business, "through the development of a potential partnership with a primary market operator, which will involve both the merchant acquiring and management of POSes and the issuing and distribution of payment cards", for which a value of over 2 billion is expected . The term sheet will be signed by June, said CEO Giuseppe Castagna during the conference call on the first quarter accounts.
1,25 billion in dividends to shareholders in 2 years. Castagna: "A new increase is possible with a new plan"
Banco Bpm provides for the distribution of dividends of 1,25 billion in the next two years, "double compared to the two-year period 2021-2022".
The results obtained and the solidity of Banco Bpm “leave room for a further increase in remuneration of shareholders, on which we will be able to give more details with the presentation of the new 2023-2025 plan", announced the CEO Giuseppe Castagna during the conference call on the first quarter accounts.
Banco Bpm expects to close 2024 with a Cet 1 coefficient of over 14% and therefore with excess capital such as to be able to evaluate "a further increase in shareholder remuneration", clarified the manager, adding that "We believe it is time to go further in the remuneration of the partners”. Castagna also explained that the institute will also evaluate various solutions including a payout increase or a buyback, informing the market of its decisions by updating the strategic plan. "I am very confident to increase the remuneration policy of the partners”, Castagna reiterated, recalling that “the existing projects in bancassurance and e-money will bring capital and increase our profitability”. “We don't think there is any M&A possibility that could give us the same remuneration,” she concluded.
Banco Bpm raises guidance on profit and interest margin
Banco Bpm raised its target by useful 2023 to 1,1 billion, equal to earnings per share of 0,75 euro compared to the previous guidance of 0,6 euro. In the 2024, then, profit is expected to rise again to 1,4 billion, "doubled compared to 2022", with earnings per share of 0,9 euros. The growth trend, underlines the institute, "significantly exceeds both the profitability trajectory and the overall targets outlined in the Strategic Plan, which will therefore be updated by the end of 2023".
Also raised guidance on net interest income, brought to "over 3 billion in 2023 compared to the previous target of 2,7 billion, communicated in February", announced the CEO. The current estimate is based on a Euribor at the present value of 3,3% while the previous one saw it at 2,5%.
Npl: planned transfers for another 700 million by 2024
“As part of the non-performing loan management strategy, further sales have been envisaged over the period of the plan over 700 million, with an evident benefit on the stock of gross non-performing loans and on credit quality indicators", the bank announced, specifying that "the economic impacts expected from the aforementioned amount of sales have already been considered when assessing the credits"'.
