Banco Bpm doubles its dividends
Banco Bpm raises i target per fine anno and promises to double dividends for the two-year period 2023-2024. But it closes at least for the moment at M&A hypothesis. The institute headed by Joseph Chestnut raised the 2023 y profit target 1.1 billionequal to earnings per share of €0.75. The previous guidance was 0.6 euros. In 2024, then, it is expected that profit will rise again to 1.4 billion, “doubled compared to 2022”, with a earning per share of 0.9 euros. The growth trend, underlines the institute, “significantly exceeds both the profitability trajectory” and the overall targets outlined in the strategic plan, which will therefore be updated by the end of 2023“.
Net profit of 265 million in the quarter
In the first quarter, Banco Bpm recorded a gross result of current operations equal to 474.2 million euros. Net profit was 265.3 million euros. Excluding non-recurring items, the net profit comes to 270.5 million euro. Presenting the accounts for the quarter, Castagna announced that he plans for 2023 a distribution of dividends of 570 million. While for 2024 the estimate is 680 million in dividends. The overall figure (1.25 billion) is about double the 636 million distributed in the two-year period 2021-2022.
“Further remuneration” of shareholders
The institute also added that it plans capital management actions to generate space for a “further remuneration” of the shareholders. The results “leave space for a further increase in shareholder remuneration. On which we will be able to give more details with the presentation of the new plan 2023-2025″, said the CEO. Castagna added that the ongoing projects in bancassurance and e-money “they will bring capital and will increase our profitability. We don’t think there is any M&A opportunity that could give us the same remuneration“.
Revised the estimates
Banco Bpm also has raised the guidance on the interest margin. Expected now”over 3 billion in 2023 compared to the previous target of 2.7 billion, communicated in February,” said Castagna. The current estimate is based on a Euribor at the present value of 3.3% while the previous one saw it at 2.5%.