Banca Popolare di Milano closed the first quarter of 2014 with a net profit of 64,3 million, an increase of 12,3% compared to the same period of 2013. Operating income rose by 3,3% to 442,1 million, with interest margin of 206 million (+8,1%) and net commissions of 140,4 million (+6,5%).
Operating expenses decreased by 3,8%, to 236,8 million, for a cost/income ratio which fell by 3,9 percentage points to 53,6%. As regards credit quality, net write-downs rose to €85,3 million from €64,1 in the first quarter of 2013, for an annualized cost of credit equal to 104 basis points.
As regards balance sheet aggregates, direct deposits amounted to 35,7 billion (-3% compared to the end of 2013), against loans of 32,8 billion (-1,6%). Gross doubtful loans amounted to 5,6 billion (+5,8%). The coverage ratio of impaired assets rose to 35,6%, 1,7 percentage points more than in March 2013.
As for the prospects for the whole of 2014, Bpm notes that "the domestic macroeconomic scenario seems to indicate that the recession is behind us, even though the various factors - also at an international level - which could weaken the recovery are latent".
In detail, "the low level of market rates will continue to affect the interest margin throughout 2014, while the hoped-for recovery of the economy could facilitate the development of business loans".
In this scenario, Bpm "will continue to operate according to the guidelines indicated in the business plan" and "the trend of commercial management will continue to be based on improving territorial and customer presence in the coming months, maintaining careful control of costs and of risks, as a lever to preserve profitability, while strengthening the already solid liquidity position and the capital base, also thanks to the capital increase in progress”.
