Piazza Affari's profits have returned to pre-crisis levels, those prior to the collapse of Lehman Brothers. The first half of 2017 closed with 23 billion in aggregate net profits, the best result since September 2008. The road to recovery is still long, but the results of this first part of the year are positive.
A large contribution to this result comes from Intesa Sanpaolo and Banco Bpm, which led the aggregate profits of the companies with the largest capitalization of Piazza Affari to reach particularly high levels.
The net result of the leading Italian credit institution (5 billion and 238 million euros) was positively affected by the public contribution recognized by the State – amounting to 3,5 billion – for the acquisition of PopVicenza and Veneto Banca.
Banco Bpm also communicated results beyond expectations; the profit was equal to 3 billion and 191 million euro, thanks above all to the extraordinary items linked to the merger with Banco Popolare. It was formally Banco Popolare that took over Bpm, and the amount that was paid (1 billion and 548 million euros) was lower than the real value of Bpm's assets and liabilities, equal to 4624 million.
The dowry of profits arriving from banks and insurance companies was over 16 billion euros, about 70% of the total. Even net of extraordinary items, the share of profits referring to the financial sector remains decisive.
Positive news also came from energy sector. The aggregate half-year profits of the sector amounted to one billion and 600 million euros, and here too it is a change of pace after a two-year black period, marked by the collapse in crude oil prices, which led to 11 billion losses between 2015 and 2016.
Analysts' expectations for the next six months are positive. Estimates from the S&P Market Intelligence database forecast total profits of 41,7 billion euro at the end of the year. 2017 could turn out to be the best year for Milan since 2008, if the blue chips live up to expectations.
