Bpm closed the first half with a net profit up 2,6%, to 158,1 million euro. The figure for the second quarter alone is 109,8 million, higher than both the consensus (75 million) and the same period last year (86,5 million). In terms of revenues, in the first six months of the year the Bank recorded an increase of 1,9%, to 839,1 million. In detail, the interest margin stood at 403,1 million from 402,9 million in the first part of 2015. Net fee and commission income fell by 1,1% to 303,34 million while the result from financial activities mark a +40,6% to 99,6 million. Operating costs recorded an increase of 3,4% to 497,6 million.
The Bank confirms a strong level of capitalization with a Cet1 of 11,73%, an improvement from 11,64% at the end of March and above the requirements set by the SREP of 9%. The operating result of Bpm was substantially in line (-0,2%) with that of the previous year, at 341,5 million. Net value adjustments for the impairment of loans and other transactions amounted to 155,8 million at the end of the first half, down compared to 168,3 million in the same period of 2015 (-7,4%). This improvement had a positive effect on the pre-tax profit which grew by 4,8% to 222,6 million.
The cost of credit stood at 90 basis points, down from 101 basis points in June 2015. Despite the decrease in the cost of credit, the bank reports growth of 40 basis points in the coverage of non-performing loans. At the balance sheet level, direct deposits amounted to 36,8 billion, marking a decrease of 1,4% compared to March 2016 and 2,2% compared to the end of 2015. Indirect deposits from ordinary customers stood at 32,4 billion down on March 2016 (-2%) and the end of 2015 (-5%).
Loans to customers amounted to 34,52 billion, up on both March 2016 and December 2015 (+1,0%). In particular, loans to individuals grew by 1,2% while those to companies by 2,3%. As regards credit quality, gross impaired assets amounted to 6,07 billion at the end of June (+0,4% on the previous quarter) while doubtful loans amounted to 3,6 billion (-0,2%). . The overall degree of coverage of non-performing assets stands at 40,5% (with an increase of 40 basis points in the quarter) which rises to 45,2%, if the write-offs already made on individual positions are included.
In more detail, the degree of coverage of the individual segments reaches a significant level and shows the following dynamics compared to March 2016: non-performing loans 54,4% (+10 basis points), which becomes 60,5% including write-offs; unlikely to pay 23% (+40 points); past due exposures 10,1% (+130 points); total receivables 7,1% (stable). As far as performing loans are concerned, the degree of coverage is positioned at 0,55%.
CASTAGNA: BPM-BANCO POPOLARE MERGER FROM 2017ST JANUARY XNUMX
“The more time passes, the more we believe that this is the right project”. This was underlined in the call with the analysts by the CEO of Bpm, Giuseppe Castagna, regarding the merger with Banco Popolare. “We have gone through many of those problems, but we have solved them all brilliantly – he explained to an analyst who asked what risks he saw in the merger – We try to go our own way. We are quite confident that the uncertainties are gradually turning into certainties”.
The merger with Banco Popolare "will take effect from 2017 January XNUMX", added the CEO, underlining that the institution that should arise from the merger "must be able to start and start the engines" from the beginning of the year next.
As for the results of the stress tests, according to Castagna, "they are particularly comforting from a stand alone point of view and I see them positively also from the point of view of a potential merger with Banco Popolare, with data that confirm our plan". The Milanese institute is among those that have not been subjected to the stress tests of the EBA, like the 51 large European ones, but has nevertheless undergone the exercise by the ECB with results that have not been disclosed.
Castagna explained that in the base scenario – the "most plausible" one, according to the manager – the results "confirm that we are able to generate assets even in the stand-alone hypothesis, and considering a payout of 40%". In the hypothesis of a merger with Banco Popolare, the sum of the two institutes would have "the highest buffer" in the sector.
CREDEM: PROFIT FOR THE HALF AT 70 MILLION (-41%)
The Credem group closed the first half with loans up by 4,6% and a CET1 ratio of 13,4%. Consolidation net income amounted to 70,3 million, down 41% on last year which however included an important positive non-recurring component. The outgoing general manager Adolfo Bizzocchi (who will be replaced by Nazareno Gregori from XNUMX September, ed) underlines how these results confirm that "the group is solid and with capital levels of excellence". The foreseeable evolution of management sees a linear trend of the stable components of revenues while the incidence of credit risk may assume less contained levels.
BPER: 64ST SEM NET INCOME DOWN TO 1 MILLION, CET 14,49 RISES TO XNUMX%
Bper, on the other hand, closed the first half with a net profit of 64 million, down from 73,2 million last year. The interest margin amounted to 590,4 million, down by 5,2% compared to the same period of last year, net commissions, amounting to 358,1 million, were down by 0,5% while the result net of trading activities (including dividends) amounted to 73,5 million (-2,4%). Management costs rose by 1,9% to 639,7 million.
Net adjustments to loans and other assets amounted to 272,1 million, down on the same period of 2015 (-11,6%). In terms of capital solidity, Bper recorded a strong growth in Core Tier1 to 14,49% compared to 11,55% at the end of March. The strong increase is due to the institution's first use of internal models for risk requirements which had a positive impact of around 300 basis points.
In communicating the accounts, the bank also underlined that in the second part of the year it will proceed with a new sale of a portfolio of non-performing loans after the 450 million sold to Algebris and Cerberus. The goal for 2016 is to sell around 10% of the stock of gross non-performing loans.
The CEO Alessandro Vandelli, during the conference call with the analysts, then said he was "confident in the fact that Bper can increase its dividend year after year. Our dividend policy is clear if we look at the recent past: two years ago it was two cents, last year it went to ten: for this reason we can look to this year and to the future with confidence, also due to the solid structure of our capital".
