Banco Popolare: the Stock Exchange likes the new business plan (+3%)

Opening sharply up, with a +3% in Piazza Affari, for Banco Popolare after the release of the new business plan. The institute expects a net profit of 603 million in 2013 and 930 million in 2015, of which over 270 from the merger projects of three banks and from the commercial relaunch. For 2013, the institute expects operating income of 4,1 billion and 4,5 billion in 2015. In the three-year business plan, Banco provides for a dividend payout of 40%. The institute also indicates a 2013 pro forma common equity ratio of 7,6% (post Basel 3) thanks to ordinary management, the sale of non-strategic assets and benefits from advanced models for measuring credit risk. Value that rises to 8,3% in 2015. The three-year industrial plan to 2013, with extension to 2015, sees a capital structure with a Core Tier 1 ratio of 7,6% in 2013 from the current 6,5% as Common Equity Ratio in line with Basel III. In 2015 the parameter is expected at 8,3%. The cost/income ratio is expected to fall from 65,9% in 2010, to 60,4% in 2013 and to 55% in 2015. With regard to credit quality, the group estimates a decrease in the cost of credit from 78 bps in 2010 at 52 bps in 2013 and at 45 bps in 2015.