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%, well above plan target.

• Anima acquisition completed in April, increasing stake to ~90% and fully consolidating its contribution, boosting group volumes and profitability, including a €200 million capital gain and €54 million Q2 contribution.

• Non-interest income now accounts for 49% of total revenues, close to the 2027 target.

• Strong growth in new lending (+50.6% year-on-year to €15.3 billion) and investment product sales (+12% year-on-year to €11.9 billion), with NPEs at record low.

• Interim dividend guidance at ~€700 million, up 17% year-on-year, with €800 million already accrued in H1 2025 and a dividend yield of 8%.

Financial highlights

• Total revenues for H1 2025 stated at €3.02 billion, up 8.2% year-over-year; like-for-like growth of 3.2%.

• Net interest income declined 7% year-on-year to €1.6 billion, offset by a 15.3% increase in net fees and commissions to €1.21 billion.

• Operating costs stable at €1.35 billion (+0.7% y/y); cost/income ratio improved to 44.6%.

• Cost of risk reduced to 33 basis points, with a 23% year-on-year decline in total NPEs.

• Return on equity (ROE) at 17% and return on tangible equity (ROTE) at 22.6%.

Outlook and guidance

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

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

• Expectation of mid-single-digit decline in NII for H2, double-digit growth in net fees, and continued cost/income improvement.

• Plan targets for 2027 remain at €2.15 billion net profit, with current performance tracking ahead of schedule.