23 February, Blasting News
Banco Bmp has closed the first financial year after the merger between Banco Popolare and Banca Popolare di Milano with positive results for a value of 557 million, thanks also to the capital gain coming from the transfer of Aletti Gestielle Sgr. Among the extraordinary transactions, there is also the agreement with BNP Paribas for the transfer of Banca Depositaria that should bring a capital gain of about 200 million.
The de-risking strategy will be fundamental for the third Italian bank to evaluate new merger and acquisition operations, implying a significant reduction of the NPL stock: In fact, the target for the disposals has been raised from 8 to 13 billion, and it might include also the transfer of the credit management platforms, copying the strategy carried out by UniCredit with the transfer of doBank and by Intesa who is negotiating the sale of 50% of its credit collection division Capital Light Bank.
Improvement of the NPL situation
The Banco Bpm Ceo has hypnotized that an additional effort in the NPL side might be greatly appreciated by the ECB, along with the results collected so far. More in detail, the net balance of the bad loans that in 2016 amounted to 16.2 billion has now reduced by almost 20%, setting at 13 billion and reporting a reduction of 6.8% in comparison with September 2017. The coverage rate has been growing, increasing by 10% from the 37.5% registered in 2016 to the current 48.8%, up to 58.9% in regards to NPLs.
Outlook for 2018 and possible new M&A operations
According to what the Ceo Castagna declared, in 2018 the bank is expected to register positive results and all the objectives set in the business plan will be reached. There is still the possibility of new merger and acquisition operations, where Banco Bpm may represent an example for other banks, especially for what concerns liaising with the regulating authorities. New operations of this type will depend also on how the small- and medium-sized banks will react to the reorganization of the banking sector.
Source: Blasting News
Translator: Cristina Ambrosi