Il Banco Popolare it closed the first nine months of the year with a net loss of 712 million euros compared to a profit of 349,8 million last year. The result was affected by net value adjustments on loans of 1,7 billion (there were 575 million last year). This is a decision consistent with the policy of increasing the average level of coverage of non-performing loans and which led to the 1 billion capital increase that the ECB had requested to give the green light to the merger with BPM.
At the end of September, the bank had €13,3 billion of net non-performing exposures with a coverage ratio of 47%, up by €3,35
percentage points compared to the end of December. As regards the subset of non-performing loans, the coverage level is equal to 59,4% (56,3% and 59,3% as at 31 December 2015 and 30 June 2016, respectively). Despite the impact on the accounts from the increase in coverage levels, the bank maintains a strong capital solidity, following the 1 billion capital increase this summer. The 'phased in' Cet1 stands at 14,7% (14,8% at the end of June) while the 'fully phased' value is equal to 13,7% (14,1% at the end of June).
He also published the accounts yesterday Banca Popolare di Milano, that Milan closed the first nine months of 2016 with a net profit of 88,3 million, down by 56,4% compared to the same period of 2015. The burden relating to the new solidarity fund weighs on the accounts (165 million) which will allow the exit of 585 employees, net of which the normalized profit stands at 184,4 million, in any case down by 17,3% per annum. In the third quarter alone, the extraordinary components brought the accounts into the red: the loss is 70,3 million. Going back to the nine months, operating income amounted to 1,2 billion (+0,5%), with interest margin at 595,4 million (-1,9%) and net fee and commission income at 441,7 million (- 2,2%). Operating costs jumped by 27,3% (to 900,1 million), directly affected by the contribution to the solidarity fund, for a cost/income ratio of 74,8%.
