BPER Banca (BPE) Q2 2026 earnings summary

Executive summary

• Achieved record adjusted net profit of €1,326m in H1 2026, up 14.7% half-on-half and over 15% year-on-year, marking the best half-year in the bank's history, driven by strong net interest and commission income and the integration of Banca Popolare di Sondrio.

• Integration of BPSO completed, creating a scalable platform for further organic and inorganic growth, with IT migration finished and over 3,500 employees onboarded.

• Over-delivered on business plan targets, with strong internal capital generation, operational efficiency improvements, and strategic initiatives in corporate lending, wealth management, bancassurance, digital transformation, and operational excellence.

• Shareholder remuneration since 2024 exceeds 460%, with cumulative distributions of over €3.1bn between 2025 and H1 2026, and a payout ratio of at least 85% targeted for 2025-2028, equivalent to ~€7.5bn.

• Sustained value creation supports attractive shareholder remuneration, with both dividends and buybacks, and no plans to use buyback shares for M&A.

Financial highlights

• Total revenues in H1 2026 reached €3.9bn, up 4.5% half-on-half; core revenues at €3.6bn (+2.6% H/H); net interest income at €2.2bn (+1.4% H/H); net commission income at €1.35bn (+4.8% H/H).

• Cost/income ratio improved to 41.4% (down from 45.0% in H1 2025), with total costs down 3.9% half-on-half.

• CET1 ratio at 15.0% as of June 2026, with organic capital generation of €1.3bn (163bps) in six months.

• Loan-to-deposit ratio stable at 77.6%; LCR at 162%, NSFR at 132%, and total financial assets at €424.3bn (+4.4% Y/Y).

• Net loans to customers stood at €129.7bn; new loan originations reached €13.5bn (+1.5% Y/Y).

Outlook and guidance

• FY26 guidance improved: total revenues expected at ~€8.0bn, net profit at ~€2.7bn, and cost/income ratio to decrease to ~40% by 2028.

• Net interest income expected to increase by €300m by 2028, despite a €300m negative impact from Ecobonus phase-out; net commission income projected to grow mid-single digit.

• CET1 ratio expected to remain above 14.5% through 2029.

• Shareholder distributions, including buybacks, to reach ~€7.5bn (≥85% payout) between 2025-2028.

• Lending to corporate clients targeted to grow by 13% and AuM by 18% by 2028.