Banco BPM (BAMI) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income reached €511 million, up 38% year-over-year, and €549 million pro-forma with Anima, surpassing 2027 plan targets.

• ROE of 16.7% and ROI/ROTE of 22.1% achieved, with non-interest revenues at 49% of total, nearing 2027 target.

• Fast execution of the business plan enabled early achievement of 2027 targets, prompting a 2025 net income guidance increase to ~€1.95 billion.

• Customer loans rose 2.5% quarter-on-quarter, with investment products up over 15% year-on-year.

• Successful completion and early consolidation of Anima Holding, with integration underway.

Financial highlights

• Total revenues for Q1 2025 were €1,476 million, up 2.9% year-on-year, with net interest income at €816.9 million (down 5.5%) and net fees/commissions at €554 million (+6%).

• Operating costs declined 3.5% year-on-year to €645 million, improving the cost/income ratio to 44%.

• Pre-provision income increased 8.6% to €831 million; provisions dropped 31.6% to €71 million.

• Asset quality improved: gross NPEs down 22.8% year-on-year to €2.8 billion, default rate at 0.97%, and cost of risk at 30 bps.

• Net customer loans at amortized cost stood at €100.8 billion, up 1.1% quarter-on-quarter.

Outlook and guidance

• 2025 net income guidance raised to ~€1.95 billion, matching or exceeding previous 2026 target.

• Q1 2025 results already in line with 2027 planned targets, supporting confidence in standalone valuation.

• Total revenues expected to maintain a positive trend, even with Euribor at 2% from Q3 2025.

• Cost/income and provisions expected to see further single-digit reductions.

• 2027 net income target of €2.15 billion reaffirmed.