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• Net Profit: EUR511 million, best results in Banco BPM's history.

• ROTE and ROI: 16.7% and 22.1% respectively, with full consolidation of Anima.

• Total Revenues: EUR1.476 billion, up from EUR1.434 billion in Q1 '24.

• Customer Loans: Increased by 2.5% quarter-on-quarter.

• Investment Products: Up 15% year-on-year to EUR6.7 billion.

• Cost Income Ratio: Improved from 47% to 44%.

• Cost of Risk: Reduced from 32 basis points to 30 basis points.

• Net Income Growth: Up 38% year-on-year, including Anima.

• New Lending: Increased from EUR5 billion in Q1 '24 to EUR8.2 billion in Q1 '25.

• Total Customer Financial Assets: Up 3.4% year-on-year.

• Operating Costs: Down 3.5%.

• Provisions: Down 30%.

• Net Interest Income (NII): Decreased by 5.5% year-on-year.

• Fees and Commissions: Up 6% year-on-year.

• Insurance Revenue: Increased from EUR5 million in Q1 '24 to EUR26 million in Q1 '25.

• Trading Contribution: Increased from EUR9 million to EUR46 million.

• Liquidity Position: EUR49 billion.

• Direct Funding: Stable at around EUR132 billion.

• Capital Position: CET1 ratio at 15.3%.

• EPS Accretion from Anima: More than 10%.

• Warning! GuruFocus has detected 5 Warning Sign with BNCZF.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Banco BPM SpA (BNCZF) reported its best quarterly net profit in history at EUR 511 million, showcasing strong financial performance.

• The company is ahead of its planned trajectory, with noninterest revenues pro forma, including Anima, representing 49% of total revenues, close to the 2027 target of 50%.

• Customer loans increased by 2.5% quarter-on-quarter, and investment products grew by 15% year-on-year, indicating strong commercial performance.

• Operating costs decreased by 3.5%, and the cost-income ratio improved from 47% to 44%, reflecting effective cost management.

• The Anima acquisition is expected to contribute significantly, with an EPS accretion of more than 10% and a return on investment of 13%.

Negative Points

• Despite strong results, the net interest income (NII) decreased by 5.5% year-on-year, impacted by lower Euribor rates.

• The company's CET1 ratio is projected to be around 12.9% after the Anima acquisition, which is slightly below the 13% target.

• There is a reliance on DTAs and fair value reserves for organic capital generation, which may not be sustainable long-term.

• The market remains concerned about the company's ability to maintain its CET1 ratio above 13% post-Anima acquisition.

• The company faces potential challenges in maintaining its current level of loan growth, particularly in the household loans segment.