In the first half of the year, Banca Popolare dell'Emilia Romagna returned to a profit of 42,5 million, against the loss of 19 million recorded in the same period of 2013, but the figure is lower than the analysts' expectations and - at the same time - the institute records an increase in impaired loans.
On Piazza Affari the Bper stock, after the publication of the accounts, accelerated downwards and was suspended with a theoretical decline of 11,75%. “We consider the negative reaction of the market excessive – commented an analyst from a Milanese SIM -. Revenues were higher than our forecast in the second quarter: 607 million versus 597 expected. Instead, net profit was lower due to extraordinary charges and higher taxes."
The interest margin rose by 3,3%, to 658 million, while net commissions were essentially stable, at 345 million. Trading activities produced a positive result of 128 million (+20%).
Furthermore, in the half-year there was a 5,2% reduction in loan adjustments compared to the same period in 2013, while coverage of impaired loans "significantly increased" (+39,4%, or +210 basis points compared to December and +360 compared to June 2013).
CEO Alessandro Vandelli underlines that, thanks to the positive outcome of the 750 million capital increase, Bper has "further improved its capital solidity", reaching a Common Equity Tier 1 of 10,43%, in line "with the best market standards and without considering the benefits that will derive from the validation of advanced internal models for measuring credit risk".
Vandelli then announced that "the first activities are starting to prepare the 2015-2017 industrial plan", which will be presented at the beginning of next year. Among the objectives of the plan is to "redesign the group's distribution model and to structurally reduce the cost base in order to achieve an adequate and sustainable level of profitability, consolidating leadership in the reference territories".
