Banco BPM recorded a net profit of 750 million euros in the first half of 2024, marking a 20% increase compared to the same period of the previous year. Direct bank deposits increased to 129.8 billion euros, compared to 126 billion recorded at 31 December 2023, while indirect deposits grew from 106.2 billion to 111.2 billion euros. Conversely, customer loans decreased by 3.3%, falling to 102 billion euros.
The Piazza Meda Institute has revised upwards its guidance on earnings per share for 2024, from 0.9 to 0.953 euros. Furthermore, it stated that the expected results for 2024 are already in line with the net profit targets forecast for 2026, which amount to over 1.5 billion euros.
The interim dividend for 2024 has been increased from 550 to 600 million euros, while the distribution of profits to shareholders for 2024 amounts to 150 million euros, in line with the 2023-2026 plan. The bank believes that the conditions are in place to exceed the overall shareholder remuneration targets of 4 billion euros cumulated in the period 2023-2026, as stated in the note on the results.
The Board of Directors of Banco BPM met today under the chairmanship of Dr. Massimo Tononi, and approved the financial and economic situation of the Banco BPM Group as of 30 June 2024. The first part of the 2024 financial year was characterised by an overall positive general macroeconomic framework, despite the persistence of elements of uncertainty deriving, in particular, from the geopolitical situation in Ukraine and the Middle East and the resulting difficulties in global supply chains. In this context, the Group recorded excellent levels of profitability with a gross result from current operations of €1,241.8 million and a net profit of €750.1 million.
At the level adjusted these results are even more consistent: gross result from current operations equal to € 1,266.7 million and net result of € 776.1 million. During the half-year, the Group continued with the implementation process of the new configuration of the product factories in the Bancassurance and payment systems sectors. With regard to the Bancassurance sector, the corporate structure was completed at the end of 2023 with the completion of the purchase and sale transactions that led to the Group’s total control of the companies operating in the Life sector (Banco BPM Vita, Vera Vita and BBPM Life) and to the participation with a 35% share in the companies operating in the non-life sector (Banco BPM Assicurazioni, Vera Assicurazioni and indirectly Vera Protezione) in joint venture with Crédit Agricole Assurances. During the first half of 2024, in accordance with the agreements between the parties, the purchase and sale prices of the aforementioned shareholdings were subject to adjustment on the basis of the definitive values of the own funds and the profits accrued by the companies.
The internalization process of the sector’s activities also continued during the semester, with the aim of achieving the IT migration to a new technological platform during the next financial year.
As regards the payment systems sector, following the agreements signed last year for the establishment of a joint venture with FSI and Iccreawhich has taken the name of Numia, the completion of some preparatory activities for the finalisation of the operation as well as the obtaining of all authorisations from the competent Authorities allow us to confirm the closing by September 30, 2024.
Still with reference to the process of rationalising its organisational and corporate structure, during the quarter, the partial spin-off of Banca Akros in favour of Banco BPM was completed, effective 1 January 2024, relating to the business unit consisting of the complex of assets and resources organised for the performance of Banca Akros’ “proprietary finance” activities.
Furthermore, on 25 June 2024, the Parent Company and Banco BPM Invest SGR16 signed the deed of contribution of the business unit represented by the “Alternative Investments and Funds” structure of Banco BPM, effective from 1 July 2024.
Finally, it is reported that, on 28 June 2024, the renewal of the Shareholders’ Agreement between Banco BPM and Crédit Agricole SA and Crédit Agricole Consumer Finance, relating to the Joint Venture in Agos Ducato, was formalized until 28 June 2029. In this context, among other things, Banco BPM’s right to exercise the unconditional put option on 10% of the capital of Agos Ducato was extended by a further three years (with an exercise period from 1 July – 31 July 2025 to 1 July – 31 July 2028), at an exercise price already agreed at €150 million.
Furthermore, the new Shareholders’ Agreement has simplified the potential listing process of Agos Ducato, by establishing a single procedure to be implemented upon request of Banco BPM starting from 1 July 2025, until the expiry of the Shareholders’ Agreement.
On the front of collection and capital operations, in the first half of 2024 the Parent Company concluded two issues, reserved for institutional investors, within the Euro Medium Term Notes Programme: the first, in January 2024, relating to Green Senior Non-Preferred securities for an amount equal to € 750 million, fixed coupon of 4.875% and maturity six years callable starting from the fifth year; the second in March 2024, relating to Tier 2 subordinated securities for an amount equal to € 500 million, maturity ten years and three months, fixed coupon of 5% until June 2029 and redeemable early starting from the fifth year.
Furthermore, during the period Banco BPM concluded two European Covered Bond (Premium) issues aimed at institutional investors: the first in January 2024 for an amount of €750 million and maturity of six years, the second in May 2024 for an amount of €500 million and maturity of seven years. Both operations are part of the €10 billion Covered Bank Bonds program (BPM Covered Bond 2).
Finally, on 9 July 2024, the Parent Company concluded a new issue of an Additional Tier 1 capital instrument with perpetual duration and callable starting from January 2031, for an amount of €400 million. At the same time, Banco BPM announced a repurchase offer of a perpetual bond with a total outstanding nominal amount of €400 million (ISIN XS2089968270), which concluded on 17 July with a subscription of €179.5 million. It should also be noted that, in June 2024, Banco BPM proceeded with the early repayment of an Additional Tier 1 capital instrument issued in 2019 for a nominal amount of €300 million and already subject to partial repurchase in November 2023 for €223.3 million.
Furthermore, with regard to the share purchase programmes, intended to service the plans of short and long-term incentives to employees, during the first half of the year:
– as part of the program approved by the Ordinary Shareholders’ Meeting of 20 April 2023, 905,286 treasury shares were purchased (equal to 0.06% of the ordinary shares in circulation) for a value of €5 million;
– within the scope of the program, approved by the Ordinary Shareholders’ Meeting of 18 April 2024, which provided for the purchase of ordinary shares of Banco BPM for a maximum total amount of €45 million within 18 months and no later than the date of the Shareholders’ Meeting approving the financial statements for the 2024 financial year, the first tranche of the same was carried out in the period from 19 to 24 June 2024 with the purchase of no. 4,911,328 treasury shares (equal to 0.32% of the ordinary shares in circulation) at an average unit price of €6.11, for a total value of €30 million. Following the described transactions, Banco BPM, taking into account the assignments made in the half-year and the other treasury shares already in the portfolio, as of 30 June 2024 directly owns no. 11,342,227 treasury shares, equal to 0.75% of the share capital.
