Banco BPM (BAMI) H1 2025 earnings summary

Executive summary

• H1 2025 net income reached a record €1.21 billion, up 61.9% year-over-year, already achieving 62% of the full-year guidance of €1.95 billion, with CET1 ratio at 13.3% and strong profitability.

• The Anima acquisition was completed in April 2025, increasing the stake to ~90%, fully consolidating its contribution, and significantly boosting group volumes, profitability, and asset management platform.

• Non-interest income now accounts for 49% of total revenues, with cost/income ratio improved to 44.6% and cost of risk at 33bps.

• Commercial volumes robust: investment product placements at €11.9bn (+12% y/y), new lending at €15.3bn (+50.6% y/y), and NPEs at record low.

• Interim dividend guidance at ~€700 million (+17% vs 2024), with €800 million already accrued in H1 2025 and annualized yield at 8%.

Financial highlights

• Total revenues for H1 2025 rose to €3.02 billion (+8.2% year-over-year), with like-for-like growth of 3.2%.

• Net interest income declined 7.0% to €1.6 billion, while net fee and commission income grew 15.3% to €1.21 billion.

• Operating costs were stable at €1.35 billion (+0.7% y/y), with pre-provision income up 15.2% to €1.68 billion.

• Cost of risk improved to 33bps, with a 23% year-on-year decline in total NPEs and net NPE ratio at 1.4%.

• Cost/income ratio improved to 44.6% (from 47.9% in H1 2024); ROE at 17%, ROTE at 22.6%.

Outlook and guidance

• Full-year 2025 net profit guidance confirmed at ~€1.95 billion, with 62% already achieved in H1.

• Fee and commission growth expected to continue, supported by Anima integration and favorable market conditions.

• Operating expenses to benefit from workforce reductions and cost optimization; NII expected to decline mid-single-digit in H2 but mitigated by management actions.

• Interim dividend for 2025 guided at €0.46 per share (+17% vs. 2024), with annualized yield at 8%.

• CET1 ratio to remain above 13% throughout the plan horizon; plan targets for 2027 remain at €2.15 billion net profit.