BPER Banca (BPE) Q2 2024 earnings summary

Executive summary

• Consolidated net profit for 1H24 reached €724.2 million, up 2.8% year-over-year, with strong contributions from net interest income and commissions.

• Pre-tax profit rose 15.9% half-on-half to €1.1 billion, driven by 7% growth in core revenues and stable operational efficiency with cost/income below 51%.

• Core revenues rose 7% to €2.7 billion, supported by higher net interest income (+8.9%) and net commission income (+4.0%).

• CET1 ratio improved to 15.3%, reflecting strong capital generation and liquidity position.

• Operational efficiency maintained with a cost/income ratio of 50.6% (adjusted), and credit quality remains robust with a gross NPE ratio at 2.8%.

Financial highlights

• Net interest income: €1,682.5 million (+8.9% H/H); net commission income: €1,014.7 million (+4.0% H/H), with AUM fees up 13.4%.

• Operating income reached €2,758.1 million, up 4.1% year-over-year; operating costs: €1,569.7 million (+17.1% H/H), including €173.8 million non-recurring staff costs.

• Net impairment losses for credit risk: €175.1 million (–34.1% H/H); annualized cost of risk at 41 bps, down from 48 bps in FY23.

• EPS for H1 2024 at €0.512.

• Total financial assets grew €17.6 billion year-over-year to €298.7 billion, with AuM up 8.3% Y/Y.

Outlook and guidance

• 2024 guidance updated: stable net interest income, positive net commission income trends, and slightly higher operating costs.

• Asset quality expected to improve, with cost of risk slightly better than 2023.

• Adjusted net profit for 2024 expected in line with 2023, excluding one-off items; capital strength to be confirmed and strengthened.

• New business plan and updated dividend guidance to be presented in October 2024.