Banco BPM (BAMI) H2 2024 earnings summary

Executive summary

• Achieved record 2024 net income of €1.92 billion (+52% YoY), with adjusted net income of €1.7 billion (+18% YoY), surpassing guidance and previous targets.

• Dividend payout ratio increased to nearly 80%, with €1.5 billion distributed and a dividend yield of 11.2%.

• Updated Strategic Plan targets €2.15 billion net income and ROTE above 24% by 2027, with cumulative shareholder remuneration of over €6 billion.

• Transformation into a diversified financial conglomerate, with non-interest income targeted to reach 50% of total revenues by 2027, supported by Anima integration.

• Consistent outperformance of internal and broker targets, with total shareholder return above 1000% since May 2020.

Financial highlights

• Total revenues grew 6.8% year-over-year to €5.7 billion; core revenues up 5.4% to €5.69 billion.

• Net interest income rose 4.6% to €3.44 billion; net fees and commissions reached €2.0 billion (+4.4%).

• Pre-provision income up 10% to €3.05 billion; loan loss provisions down 17% to €461 million; cost of risk at 46bps.

• Cost/income ratio improved to 47%; gross NPE ratio reduced to 2.8%; net NPE ratio at 1.6%.

• Dividend per share for 2024 at €1.00, up 78% vs. 2023.

Outlook and guidance

• 2027 targets: net income €2.15 billion, ROTE above 24%, cost/income ratio at 44%, and cost of risk at 40bps.

• Cumulative net income 2024-2027 projected at over €7.7 billion, with more than €7 billion in shareholder distributions.

• 2025 net income expected to exceed 2024 adjusted; guidance incorporates conservative macro assumptions and declining interest rates.

• Cumulative shareholder remuneration of €6–7 billion over the plan, with potential for an additional €1 billion upon Danish Compromise approval.

• Non-interest income targeted to reach 50% of total revenues by 2027, with Anima integration contributing €200 million net income.