Management anticipated that the net profit forecast will be updated when the half-year results are presented
The BancoBPM communicated the financial results for the 1st quarter of 2024 and provided some financial guidance for 2024. Management anticipated that the net profit forecast will be updated when the half-year results are presented.
BancoBPM, revenues and profitability in the 1st quarter of 2024
The institute led by Giuseppe Castagna finished last quarter with a Net income of 370.22 million euros, an increase of 39.5% compared to the 265.33 million recorded in the first three months of the previous financial year. Net adjustments to loans to customers amounted to 82.45 million euros. Net of non-recurring componentsthe profit for the 1st quarter amounted to 376.4 million euros.
The result of operational management it improved by 25.4%, going from 610.28 million to 765.14 million euros.
THE operating income they increased by 14.4% to 1.43 billion euros. The interest margin it rose to 864.4 million, an increase of 16.3% compared to the figure for the 1st quarter of 2023 (equal to 742.97 million).
The cost/income fell to 46.6%, compared to 48.1% at the beginning of the year.
BancoBPM, the balance sheet aggregates at the end of March 2024
At the end of March 2024 the net loans to customers they amounted to 104.9 billion euros, down by 0.5 billion compared to the figure at the beginning of the year; the contraction is attributable to both performing exposures (-0.4%) and non-performing exposures (-5%).
On the same date the net impaired exposures (bad loans, unlikely to pay and past due and/or overdue exposures) were equal to 1.8 billion euros. The incidence of impaired exposures compared to total loans before value adjustments is equal to 3.3%, down compared to 3.5% at the beginning of the year and 4.2% on 31 March 2023. The index coverage of the entire aggregate of impaired loans stood at 50.5%, from 50.4% at the beginning of the year.
Also in March 2024 theBancoBPM’s exposure to sovereign debt securities amounted to 32.72 billion euros, of which 12.4 billion referred to Italian government bonds.
On the same date the Common Equity Tier 1 stated it had risen to 14.7%, compared to 14.2% at the beginning of the year. The institute specified that the increase is due both to the growth of regulatory capital and to the decrease in risk-weighted assets, which benefited from the lower impact deriving from the application of the new internal models on credit risk compared to the conservative estimates applied to 31 December 2023.
BancoBPM, the outlook for 2024
BancoBPM management has reported that the interest margin it should show a positive trend, benefiting from an average level of rates that is higher, over the 12 months as a whole, than that of the previous year.
On the front of commissions, after a very solid first quarter, the year-on-year growth trend is expected to continue supported, on the investment side, by growing assets which will be able to benefit from a positive market effect as well as the potential recovery in net funding. On the other hand, commissions linked to credit operations are expected to remain stable.
The operating costs will continue in a stable manner and in line with expectations also in the second quarter, while starting from July the possible positive outcome of the ongoing negotiations with the trade unions could determine positive effects in terms of containing personnel costs.
THE coverage levels will remain stable at precautionary levels, confirming the rigor in the assessments adopted in recent years on both performing and non-performing exposures.
For the entire financial year, the solidity of the results achieved, together with the positive prospective view, lead on the one hand to reiterating all the profitability and remuneration targets for shareholders and, on the other, to highlighting possible margins for improvement in the earnings per share forecast of 0.9 euros net of non-recurring components (greater than 1.1 euro considering the one-off components currently conceivable). Management anticipated that the forecast will be updated when the half-year results are presented.
The top management confirmed all the profit, payout and capitalization targets announced in the latest Plan.
