BPER Banca (BPE) Q2 2025 earnings summary

Executive summary

• Net profit for H1 2025 reached €903.5 million, up 29.5% half-on-half, marking the best half-year result ever, driven by higher revenues and lower operating costs.

• Completed first phase of BPSO business combination, with 80.7% stake acquired and integration expected by 1H26, targeting ~€290 million pre-tax annual synergies.

• Asset quality among the best in Italy, with gross NPE ratio at 2.5%, net at 1.1%, and total NPE coverage at 55.6%.

• Commercial transformation progressing, with strong loan origination, commission growth, and digitalization initiatives.

• "B: Dynamic | Full Value 2027" business plan fully on track, with all initiatives launched and strong progress in digital, ESG, and operational efficiency.

Financial highlights

• H1 2025 net profit reached €903.5 million, up 29.5% half-on-half, with EPS at €0.638.

• Core revenues for H1 2025 stood at €2.7 billion, stable year-over-year; total revenues reached €2.9 billion, up 3.4% half-on-half.

• Net interest income was €1.63 billion, down 3.4% half-on-half; net commission income up 4.8% to €1.06 billion.

• Operating costs fell 4.9% half-on-half to €1.33 billion; cost/income ratio improved to 46.6%.

• New lending in H1 2025 totaled €10.4 billion, up 20.7% year-over-year.

Outlook and guidance

• FY25 total revenues guidance raised to ~€5.5 billion, cost/income ratio at ~50%, and CET1 ratio above 15.5%.

• Net interest income expected to decline mid-single digit, while net commission income to rise mid-single digit.

• Cost of risk expected below 40bps; business plan update post-BPSO integration planned for 1H26.

• Combined entity CET1 ratio expected at ~15% by end-2025; full BPSO integration targeted by April 2026.

• ROT target remains at 15%, with current performance above 20%.