MILANO – New industrial plan 2022-2025 for Bper. The Bank expects to achieve a net profit of 800 million at the end of the plan, with a return on tangible capital (rote) of over 10% and a payout ratio (percentage of profit allocated to the coupon) of 50% in 2025. Expected during the course of the year. four years, the distribution of dividends for at least one billion euro and the maintenance of “high capital strength”, through a fully phased Cet1 index of more than 13%. The path to reduce NPLs will be accelerated with a mix of industrial shares and disposals, with the aim of reaching the end of the plan with gross impaired loans at 3.6%.
On the personnel front, Bper’s industrial plan provides for the exit of 3,300 resources against 1,450 hires and a downsizing of the branch network, with the closure of 600 branches by 2024 (of which 140 already completed), equal to 29% of total branches at the end of last year.
The plan foresees an increase in revenues from 3,380 million in 2021 to 4,290 million in 2024 and 4,370 million in 2025 while costs will rise from 2.1 billion to 2.57 billion in 2024 to stabilize at 2.53 billion in 2025. This will allow income from operations to rise from 1.28 billion in 2021 to 1.71 billion in 2024 and 1.84 billion in 2025. Loan adjustments will grow slightly from 528 million to 635 million in 2024 and 590 million in 2025, although the cost of risk will drop from 67 basis points in 2021 to 60 basis points at the end of the plan. Net profit, equal to 384 million in 2021, could thus rise to 640 million in 2024 and 800 million in 2025. Commercial activity is growing with loans destined to rise from 79 to 95 billion by 2025, direct deposits that will increase from 101 to 111 billion and indirect deposits from 166 to 190 billion. The payout will rise to 50% as early as 2024. There are two main development guidelines for the plan: on the one hand – explains Bper – “extraordinary transactions, aimed at further strengthening the competitive position at the national level and guaranteeing greater focus on activities. core of the group, also through the sale and deconsolidation of non-strategic assets that will make it possible to free up capital of over 500 million to be allocated to business development “. On the other hand, the “organic growth levers, divided into five design areas functional to the evolution towards a new multi-specialist business model of Bper in a capital light perspective, through the enhancement of strategic product factories and a strong drive towards digitalization”.
“The 2022-2025 Business Plan approved by the board of directors outlines a new phase of development of the Bper Banca Group with ambitious objectives but which we know are within our reach, leveraging on the remarkable results achieved today in terms of improved competitive positioning, profitability and quality of credit “. This was stated by the managing director of Bper, PIero Luigi Montani, commenting on the industrial plan.
“The expected net profit of around 800 million euros by 2025 will be achieved thanks to the strengthening of our product factories in the Group’s strategic businesses by strengthening our multi-specialist banking model, with the aim of further increasing the commission component. Non-core activities will be sold, including the NPL management platform which will allow us to make further significant progress in the derisking business, reaching a gross NPE ratio stably below 4% for the entire period di Piano “, explains Montani. “I also underline that the growth in overall profitability will be supported by the important synergies deriving from the integration of Banca Carige, which we have quantified at over 150 million gross when fully operational, confirming the solid industrial conditions underlying the operation”.
“The increase in profits – continues Montani – will be accompanied by an increase in shareholder remuneration, with a payout ratio of 50% in 2025 and a dividend of approximately 1 billion euros that will be distributed over the Plan period, maintaining at the same time, a solid capital position. The achievement of the targets will also be made possible by the important development levers envisaged for the Group’s employees “.