Banco Popolare closed the first six months of the current year with a loss of 380,2 million euro compared to the 293,1 million profit recorded in the same semester of the previous year.
With reference to the second quarter of 2016 alone, the net loss was 66,6 million euro compared to the 84,3 million profit in April-May-June 2015. Despite everything, the result achieved is better than the previously stated estimates by analysts, who expected a loss of 236,8 million euros.
The bank's data was affected by net adjustments to loans for 980 million euro compared to 375 million in the corresponding period of 2015. Without these adjustments, according to the note issued by the institute, «the six-month period would have ended with a result positive economy".
On the balance sheet front, following the one billion euro capital increase carried out in recent weeks, Banco Popolare recorded a Cet1 of 14,8% compared to 12,5% at the end of March.
Revenues fell 15,1% to $1,5 billion due to a 12,4% decline in net interest income to $691,3 million, a 17,1% drop in net fees and commissions to $639,3 million and 18,5, 784,7% to 4,4 million of other income. Operating costs, on the other hand, grew by 1,12% to 4,9 billion despite the 44,3% drop in personnel expenses, affected by 43,2 million due to the annual contribution to the Single Resolution Fund. Operating management fell by 423,2% to XNUMX million.
For 2016, the institute led by Pier Francesco Saviotti expects a further increase in the levels of coverage of non-performing loans, responding to the requests made by the ECB to grant authorization for the merger with Bpm. This "will negatively affect the group's profitability in the short term," explains the note accompanying the accounts.
During the press conference following the approval of the accounts, the managing director Saviotti let it be known that Banco would be working on the sale of a package of unsecured impaired loans "of around 700-800 million", also recalling that the integration plan with Bpm it foresees a value of 5% for unsecured non-performing loans, but "we have never sold at amounts as low as those envisaged in the business plan, so far our sales have taken place at very different and higher prices". With respect to Italease, "we have not envisaged a sale to deconsolidate, if there is an opportunity we will evaluate".
“Banco Popolare is solid, as shown by the stress tests, liquid, and the data we have announced prove it. We are suffering a bit in terms of profitability and we are all oriented towards improvement'” – underlined Saviotti – “We are confident that we will reach the merger with Bpm with decent numbers and that, together, the numbers will get better and better”.
