Il Banco Popolare closed 2015 with a net profit of 430 million against the maxi loss of 1,9 billion recorded in 2014 following the write-down of goodwill and the cleaning up of the loan portfolio. Fourth quarter profit, at €80,2 million, is below market forecasts (€117 million), while operating income (€1,06 billion) and operating profit (€241,7 million) are significantly higher than expectations (respectively 812 and 66 million).
Going back to the whole of 2015, i operating income they rose by 8,5% to 3,7 billion, with interest margin at 1,5 billion (-0,4%) and net commissions at 1,4 billion (+3,3%). Operating expenses grew by 6,3%, on which the contributions to the National Resolution Fund and the Deposit Guarantee Fund weighed, for a cost/income ratio of 65,7%. In marked improvement credit quality: writedowns decreased by 77,4% to 804 million, for a credit cost of 94 basis points. The BoD will propose the distribution of a dividend of €0,15 per share.
The results also benefited from the profits made with the sale of the shares held in the central institute of popular banks and in Arca sgr (equal to 241 million), net of which the growth in operating income amounted to 1,3%. As regards the performance of balance sheet aggregates, direct deposits amounted to 82,1 billion (-3,6% from the end of 2014) and indirect deposits to 71,1 billion (+8,3%), while gross loans dropped by 2,7% to 85,3 billion. Net non-performing exposures decreased by 200 million to 14,1 billion, with an overall coverage ratio of 43,7%.
The Banco can count on a common equity tier 1 ratio to 13,2% (11,9% at the end of 2014 and 12,7% in September), to 12,4% considering the full application of the new Basel III rules. As for prospects for 2016, Banco underlines that “the positive closure of the 2015 financial year, both from a performance and equity point of view, will allow the group to consolidate the aggregates and pursue the development of all business lines. Actions to rationalize the cost base and structure, together with the further normalization of the cost of credit, will provide an essential contribution to management”.
As for the negotiations for the fusion with Bpm, "we have made some very important steps forward which make me say that it becomes even more reasonable to think positively", declared the CEO Pier Francesco Saviotti, then underlining that the issue of shareholders' meetings has not yet been addressed and in particular if they will be able to merge and transform into a joint stock company on a single occasion or, if necessary, two shareholders' meetings.
