In This Article:
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Cost Income Ratio: 50.3%.
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Cost of Risk: 36 basis points.
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CET1 Ratio: Almost 16%.
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Adjusted Net Profit: EUR1.4 billion.
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Return on Tangible Equity: 16.9%.
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Dividend Per Share: EUR0.60.
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Total Revenues: Increased by 1.8% to almost EUR5.6 billion.
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Core Revenues: Up by 4.1% to EUR5.4 billion.
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Commission Income: Increased by 4.5% to almost EUR2.1 billion.
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Net Interest Income (NII): Grew by 3.9% to EUR3.4 billion.
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Total Financial Assets: Grew by 5.5% in the last 12 months.
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Operating Costs: Up by 3.6%.
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Loan Loss Provisions: Decreased by more than 20% to EUR333.3 million.
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Net NPE Ratio: 1.1%.
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Liquidity Coverage Ratio (LCR): 167% at the end of December '24.
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Net Stable Funding Ratio (NSFR): 138% at the end of December '24.
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Loan Deposit Ratio: 76%.
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Italian Government Bonds: EUR11.3 billion, 42% of total bonds.
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Branch Network: Reduced by 77 branches to 1,558 branches.
Release Date: February 07, 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 a strong financial performance with an adjusted net profit of EUR1.4 billion, translating into a return on tangible equity of 16.9%.
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The bank's cost-income ratio stands at a healthy 50.3%, indicating efficient management of expenses relative to income.
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BPER Banca SpA (BPXXY) maintains a robust capital position with a CET1 ratio of almost 16%, supported by significant organic capital generation.
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The bank's liquidity profile is strong, with LCR and NSFR ratios well above the minimum required thresholds.
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BPER Banca SpA (BPXXY) has successfully met its 2024 guidance and remains confident in achieving its 2025-2027 plan targets, with 80% of business plan initiatives already underway.
Negative Points
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Operating costs increased by 3.6% year-on-year, which could pressure future profitability if not managed effectively.
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The bank anticipates a slightly higher cost of risk in 2025 compared to 2024, which could impact future earnings.
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There is uncertainty regarding the EPS accretion from the proposed business combination with Banca Popolare di Sondrio, raising concerns among analysts.
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The business combination with Banca Popolare di Sondrio is not an agreed deal, which may pose integration challenges and uncertainties.
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The bank's decision to maintain a high CET1 ratio may limit opportunities for more aggressive shareholder returns, such as share buybacks.
Q & A Highlights
Q: Could you provide more color on the EPS accretion from the transaction with Banca Popolare di Sondrio, and why not structure the deal with a mix of cash and shares? A: We expect the transaction to be mid-single digit accretive on EPS, including run rate synergies, based on 2025 and 2026 consensus estimates for both banks. The decision to go for a share swap was to ensure both sets of shareholders participate in the value creation from the combination.