The management expects the distribution of dividends of 1.25 billion euros over the next two years, double that of the two-year period 2021/2022
Il BancoBPM reported Q1 2023 financial results and updated full-year financial estimates.
Furthermore, the management expects the distribution of dividends of 1.25 billion euros over the next two years, double that of the two-year period 2021/2022.
BancoBPM, revenues and profitability in the 1st quarter of 2023
The institute led by Giuseppe Castagna finished last quarter with a Net income of 265.33 million euro, an increase of 49.2% compared to the 177.81 million recorded in the first three months of the previous year. Net adjustments on loans to customers amounted to 137.46 million euro. Net of non-recurring itemsthe profit for the first quarter amounted to 270.5 million euros.
Il result of operational management it improved by 8.7%, going from 561.22 million to 610.28 million euros.
I operating income they increased by 5.4% to 1.25 billion euros. The interest margin it rose to 742.97 million, an increase of 45.2% compared to the figure for the first quarter of 2022 (equal to 511.54 million).
Il cost/income it fell to 51.2%, compared to 51.8% at the beginning of the year.
BancoBPM, balance sheet aggregates at the end of March 2023
At the end of March 2023 the net customer loans they amounted to 107.8 billion euro, down by 1.7 billion compared to the figure at the beginning of the year; the contraction is attributable to both performing exposures (-1.5%) and non-performing exposures (-3.4%). In the first quarter of the year, the volume of new loans to households and businesses in the quarter amounted to 5.2 billion.
On the same date the net non-performing exposures (bad loans, unlikely to pay and past due and/or overdue exposures) amounted to 2.3 billion euro. The coverage ratio of the entire impaired loan aggregate stood at 51.4%, compared to 50.6% at the beginning of the year.
Also at the end of March 2023 theexposure of BancopBPM in sovereign debt securities amounted to 30.8 billion euros, of which 11.62 billion referred to Italian government bonds.
On the same date the Common Equity Tier 1 stated had risen to 13.6%, compared to 12.8% at the beginning of the year. The institution specified that the increase is due both to the growth in regulatory capital (due to the inclusion of the result for the quarter net of the dividends whose distribution is envisaged, the increase in the valuation reserves of financial assets valued at fair value with impact on comprehensive income and lower deductions linked to deferred tax assets and significant equity investments), and to the decrease recorded by risk-weighted assets.
BancoBPM, some indications on 2023
BancoBPM’s management signaled that the interest margin will continue to benefit from the increase in short-term rates, particularly in the commercial component, thanks above all to a funding mix which allows for the effects of repricing to be contained.
Commissions, while still discounting a framework of high volatility which affects in particular those connected to investment products, both upfront and running, will continue to benefit from the dynamics of those relating to typical commercial banking activities.
The trend in operating costs, which will continue to be one of the main focus areas of managerial action, may be affected at least in part by inflationary pressures and the effects of a sustained investment policy in support of the evolutionary initiatives envisaged in the Strategic Plan.
The management added that the credit approach will consequently remain prudent, with solid levels of coverage, confirming the rigor in assessments adopted in recent years on both performing and non-performing exposures.
For the full year, BancoBPM estimates a significant improvement in net profit compared to last yearwith a trend that, even in projections (earnings per share for 2023 equal to approximately €0.75 and 2024 equal to approximately €0.9), exceeds both the profitability trajectory and the targets outlined in the Strategic Plan, which will therefore be updated by the end of 2023.
In addition, the management expects the distribution of dividends for 1.25 billion euros over the next two yearsdouble compared to the two-year period 2021/2022.