Banco BPM (BAMI) Q1 2026 earnings summary

Executive summary

• Q1 2026 net income reached €480 million, up 15% quarter-over-quarter, with adjusted net income at €483 million, ROTE at 20%, and ROE at 15%, in line with strategic plan targets.

• CET1 ratio stood at 13.59% at March-end, rising to nearly 14% in April, maintaining a buffer of 404bps above regulatory minimums.

• Cost-to-income ratio improved to 44%, down from 48% in Q4 2025, reflecting rigorous cost discipline.

• Non-NII revenues accounted for 51–53% of total revenues, highlighting diversification and resilience.

• Product factories contributed €406 million in Q1, exceeding targets and showing significant growth from €200 million in 2023.

Financial highlights

• Total revenues for Q1 2026 were €1,530 million, up 4% quarter-over-quarter and year-over-year.

• Net interest income was €751 million, stable quarter-over-quarter after adjusting for calendar effects, but down 8% year-over-year.

• Net fees and commissions reached €708 million, with investment product fees up 8% quarter-over-quarter and representing 53% of total net fees.

• Operating costs fell 3.7% quarter-over-quarter and 2% year-over-year, mainly from staff cost reductions.

• Loan loss provisions dropped to €78–82 million in Q1 2026, with cost of risk down to 32 bps.

Outlook and guidance

• Confident in achieving or exceeding 2026 and 2027 plan targets, with Q1 already in line or ahead on revenues, fees, costs, and cost of risk.

• Dividend of €1 per share confirmed for 2026, implying an 8% yield.

• 2027 net income target of €2.15 billion and cumulative 2024–2027 net income target above €7.7 billion remain on track.

• NII expected to remain in line with 2025 exit level, with moderate loan and deposit growth anticipated.

• Tax rate guidance for 2026 is 34–35%.