Bpm, Mcc, Popolare di Bari and beyond. This is how the banks thank the ECB and snub the government
What emerges from the quarterly reports of Banco Bpm, Mcc (Invitalia) and ex Popolare di Bari. Facts, numbers and curiosities
As now expected, banks continue to reserve the tax on extra profits. Following the example of the two largest national credit institutions, Intesa Sanpaolo and Unicredit, Banco Bpm, BdM Banca (formerly Popolare di Bari) and Mediocredito Centrale have also decided to set aside resources, all three for an amount equal to 2 times and half the amount. Of note is the excellent result in the nine months of Banco Bpm, which will present the new industrial plan on 12 December, and the return to net profit of BdM Banca three years after the acquisition by Mcc.
BANCO BPM THANKS THE ECB
As we said, excellent results for the institute led by Giuseppe Castagna (in the photo) which closed the first nine months of 2023 with a net profit of 943 million euros, +93.6% on year. Revenues were also good at 3.94 billion, up 14.6% thanks to the interest margin, which rose by 52.3% to 2.42 billion. Commissions fell (-2.2%) to 1.41 billion, while operating expenses increased (+1.4% to 1.91 billion) and operational management (+30.7%) to 2.3
billion. Credit quality improves, with a decline in the gross impaired loan ratio to 3.2% and in net impaired loans to 1.7%. Banco Bpm increases its NPL sales targets in 2023 from 700 to 900 million euros (of which approximately 500 million have already been achieved).
At a capital level, the Cet 1 ratio stands at 14.9%, up from 12.8% at the end of 2022. Looking to the future, the bank expects to achieve a net result of more than 1.2 billion euros by the end of the year , equal to over 0.8 euros per share, growing to approximately 0.9 euros per share in 2024.
As regards the tax on extra profits, the press release states that the board of directors "making use of the option provided has decided to propose to the shareholders' meeting, at the time of approving the 2023 budget and the distribution of the profit financial year, to allocate an amount of approximately 378 million to a non-distributable reserve, corresponding to 2.5 times the amount of the aforementioned tax (equal to approximately 151 million), instead of paying the tax itself". The same indication, it is underlined, was given to the subsidiary banks affected by the provision, which brings the group's non-distributable reserve allocation to a total of approximately 381 million.
Satisfied, and he has good reason to be, CEO Castagna who during the presentation conference call – as reported by Ansa – said: "The solid track record this year, together with the generation of capital confirm the belief that Banco Bpm will be able to offer increasing shareholder remuneration" which will be announced in detail on December 12th.
THE FORMER POPOLARE DI BARI SNOBS THE TREASURE TAX
Three years after the acquisition by Mcc,BdM Banca, formerly Popolare di Bari, returns to profit (the Mcc board approved the change of company name with effect from 2 August), which achieved results in the third quarter of the year a net result of 352 thousand euros, after having set aside 14.6 million for risks and charges "connected to the legacy of the previous management". A plus sign also for the intermediation margin at 218.21 million (it was 180.10 million at 30 September 2022), for net loans to customers at 5.54 billion (+4.4% on year) and for the medium-long term loans to families and SMEs at 462.8 million (327 million at 30 September 2022). Cet1 and Tier1 also grew, at 10.12%, and the Total Capital ratio equal to 12.01%.
Also in this case the board will propose to the shareholders' meeting not to pay the tax on extra profits but to allocate an amount equal to two and a half times the tax to the non-distributable reserve.
PURE MCC OF INVITALIA MAKES MARAMEO TO THE TREASURE
The Mediocredito Centrale group (controlled by the state holding Invitalia), which since May has been led by the new CEO Francesco Minotti, recorded a net profit () of 19.2 million in the first nine months of 2023. The group also includes BdM and Cassa di Risparmio di Orvieto.
Continuing to read the results, we note that the intermediation margin is advancing, equal to 328.1 million (+3.2%), thanks above all to the growth in the interest margin (+20%), at 208.5 million, and net commissions (+2.7%) at 118.6 million. Net loans to customers, including trade credits, increased to 9.57 billion as of 30 September 2023 from 9.44 billion at the end of 2022, and net performing loans to 9.07 billion compared to 8.99 billion as of 31 December last. A plus sign also for the Cet1 and Tier1 capital ratios at 12.08% (11.28% as at 31 December 2022) and the Total Capital ratio at 13.35% (12.60%). Finally, it should be noted that the Guarantee Fund for SMEs, managed by Mcc, records a financing value of over 32 billion, with more than 169 thousand applications accepted since the beginning of 2023.
As above, the Mcc board of directors also decided to propose to the shareholders' meeting to allocate an amount equal to two and a half times the tax on extra profits to a non-distributable reserve instead of paying the extraordinary tax on the increase in the interest margin.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/bpm-mcc-popolare-di-bari/ on Wed, 08 Nov 2023 09:47:39 +0000.