For the 2024 financial year, management confirms guidance which presents a slightly declining interest margin. Ordinary net profitability is estimated in line with that of 2023
BPER Bank has communicated the financial results for the 1st quarter of 2024, a period closed with a Net income (excluding third party shares) of 457.28 million euros, a result which compares with the 290.68 million recorded in the first three months of last year (+57.3%). The institute reported that during the quarter it completed an operation with the Gardant Group aimed at establishing a strategic partnership for the management of impaired loans owned by BPER Banca and Banco di Sardegna: the valorisation of the transaction generated an overall capital gain of 150 .1 million before taxes. Systemic costs amounted to 111.8 million euros. Slightly improving result of operational managementwhich grew from 654.17 million to 654.87 million euros, while the operating income increased by 2% to 1.36 billion euros, following the increase in interest margin (+16.2% to 843.62 million), thanks in particular to the level of the commercial spread resulting from the trend in interest rates, the limited impact on the cost of deposits and the contribution deriving from the investment portfolio.
The cost income ratio for the quarter was 51.7%.
At the end of March 2024 i net loans to customers they were equal to 87.7 billion euros (89.6 billion gross loans) down by 0.6% compared to the figure at the beginning of the year. The management of BPER Banca has specified that the reduction in loans to businesses and families is affected in particular by the slowdown in demand linked to the increased level of interest rates that occurred last year and the greater perception of uncertainty in the evolution of the macroeconomic scenario .
On the same date theincidence of gross credits (gross NPE Ratio) was equal to 2.6%, an increase compared to the figure at the end of 2023 (2.4%), while the incidence of net loans to customers (net NPE ratio) was equal to 1.2% , in line with the end-2023 data. The coverage ratio of total impaired loans it fell to 54.2% from 52.5% at the end of 2023.
Also at the end of March 2024 the Common Equity Tier 1 it was equal to 14.9% (14.5% as of 31 December 2023), based on net assets of 10.31 billion euros.
On the same date the financial activities they totaled 26.5 billion euros (18.9% of total assets). Within the aggregate, debt securities amounted to 24.5 billion (92.4% of the overall portfolio) with a duration of 2 years (net of hedges) and included 12.9 billion relating to government bonds and of other supranational bodies, of which 8.7 billion in Italian government bonds.
For the 2024 financial year, the management of BPER Banca confirms guidance which presents a slightly declining interest marginas a result of a potential reduction in the banking spread correlated to a less restrictive monetary policy, net commissions with a positive dynamic thanks to the development of revenues from savings management and intermediation and consultancy, operating expenses in line with those of 2023 against which it must be considered the full effect of the renewal of the national collective labor agreement in the credit and financial sector.
With reference to the quality of the assets, the management of BPER Banca expects to maintain solid levels of coverage and a provision policy based on prudence with a stable credit cost compared to 2023.
Ordinary net profitability is estimated to be in line with that of 2023 net of the effect of deferred taxation.
