In This Article:
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Net Profit: 443 million, best ever quarterly result on an adjusted basis.
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Revenue Growth: Core revenues at 1.4 billion, up 0.8% year on year.
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Commission Income: Up 8.5% year on year, standing above 540 million.
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Return on Tangible Equity: 19.2% adjusted.
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CET1 Ratio: 15.8%, with organic capital generation of 97 basis points (540 million).
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Loan Origination: 4.4 billion, up 22.3% year on year.
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Cost of Risk: 31 basis points, indicating high loan book quality.
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Cost-Income Ratio: 46.7%, with total costs down 3.2% year on year.
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Branch Network: Reduced by 70 branches, totaling 1,557 branches.
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Liquidity Coverage Ratio (LCR): 166% at the end of March 2025.
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Net Stable Funding Ratio (NSFR): 134.4%.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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BPER Banca SpA (BPXXY) reported its best-ever quarterly result on an adjusted basis, with a net profit of 443 million.
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The bank's commission income grew by 8.5% year on year, driven by strong performance in asset management and bancassurance products.
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Loan volumes increased significantly with new loan origination of 4.4 billion, up 22.3% year on year.
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The bank maintains a solid capital position with a CET1 ratio of 15.8%, supported by organic capital generation of 540 million.
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BPER Banca SpA (BPXXY) has a strong focus on operational efficiency, achieving a cost-income ratio of 46.7% and reducing total costs by 3.2% year on year.
Negative Points
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Net interest income (NII) was negatively impacted by the reduction in interest rates and fewer business days.
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The bank remains cautious due to potential headwinds from geopolitical tensions and their impact on macroeconomic conditions.
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There was a slight increase in the non-performing loan (NPL) ratio, attributed to a reduction in loans and limited asset disposals.
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The bank's guidance indicates a mid-single-digit decline in NII for 2025, reflecting ongoing challenges in the interest rate environment.
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BPER Banca SpA (BPXXY) faces potential regulatory challenges related to its planned business combination with Banca Popolare di Sondrio, including antitrust concerns.
Q & A Highlights
Q: Can you provide guidance on capital, specifically regarding the CET1 ratio, and discuss the evolution of fees? A: (Gianni Franco Papa, CEO) We expect the CET1 ratio to remain well above 15%, maintaining a conservative approach due to macroeconomic and geopolitical uncertainties. Regarding fees, we saw positive growth in wealth management and bancassurance, which are key pillars of our strategic plan. Despite bank holidays in Q2, we anticipate continued positive performance in these areas.