In This Article:
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Revenue Growth: Increased by 2.9% to EUR4.1 billion in the first nine months of 2024.
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Adjusted Net Profit: Up by over 2% to EUR1.1 billion.
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Cost to Income Ratio: Reduced to 49.5%.
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Cost of Risk: Improved to 39 basis points.
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Adjusted Return on Tangible Equity: Stands at 17.4%.
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CET1 Ratio: Reached 15.8%.
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Net Interest Income: Increased by 6% over nine months, reaching over EUR840 million in Q3.
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Net Commission Income: Grew by 3.5% to EUR1.5 billion over nine months.
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Total Financial Assets: Grew by 6.8% over the last 12 months.
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Total Costs: Increased by nearly 4% over nine months.
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Loan Loss Provisions: Decreased by almost 30%, totaling EUR254 million.
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NPE Coverage Ratio: Increased from 53.3% to 54.4%.
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Liquidity Coverage Ratio (LCR): Improved to 170.7% at the end of September 2024.
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Net Stable Funding Ratio (NSFR): Increased to 136.1%.
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Loan Deposit Ratio: Reduced to 66.2%.
Release Date: November 07, 2024
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 a 2.9% increase in revenues, reaching EUR4.1 billion, showcasing the resilience of its business model.
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The bank's adjusted net profit rose by over 2% to EUR1.1 billion, indicating strong financial performance.
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The cost to income ratio improved to 49.5%, driven by lower HR, consultancy, and marketing costs.
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The CET1 ratio increased to 15.8%, reflecting strong organic capital generation.
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Asset quality remains high, with a net MPE ratio of 1.3%, one of the lowest in the Italian banking sector.
Negative Points
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Net commission income saw a quarter-on-quarter decline of 5.4% due to seasonal factors affecting sales.
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The bank anticipates an increase in the cost of risk in Q4 2024 due to macroeconomic uncertainties.
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Despite strong performance, the full-year guidance for adjusted net profit remains conservative at EUR1.3 billion.
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The bank's bond portfolio duration was reduced, potentially limiting long-term yield opportunities.
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There is a cautious outlook on NII for 2025, with expectations to remain in line with 2023 levels despite potential rate impacts.
Q & A Highlights
Q: Can you explain the rationale behind the CET1 guidance update and its implications for dividend payouts? A: The CET1 ratio guidance was updated to approximately 15% due to increased capital requirements for operational risk and expected loan growth. This will result in a CET1 ratio allocation of around 50 basis points. Regarding dividends, a 20 basis point dividend has been set aside for the quarter, equating to about 64% of adjusted net profit. The final dividend decision will depend on fourth-quarter performance. - Gianni Papa, Non-Executive Director