Earnings Alerts

Banco BPM SpA (BAMI) Earnings: 4Q Net Income Surpasses Estimates with Strong Financial Performance

By February 12, 2025 No Comments
  • Banco BPM’s net income for the fourth quarter was €224.6 million, beating estimates by a significant margin, despite being down 30% year-over-year.
  • Revenue grew by 2.7% year-over-year to €1.43 billion, also surpassing the estimate of €1.36 billion.
  • Net interest income stood at €855.3 million, slightly below last year’s level but above the expected €830.7 million.
  • Net fee and commission income amounted to €494.4 million.
  • Provisions for loan losses decreased by 8.8% year-over-year to €159.6 million, below the anticipated €173.4 million.
  • The non-performing loans ratio improved to 2.8%, better than the estimated 3.16%.
  • The Common Equity Tier 1 (CET1) ratio fully-loaded was consistent with estimates at 15%.
  • Operating expenses were reduced to €661.0 million, beating the estimate of €679.2 million.
  • For 2024, the dividend per share was set at €0.60, below the expected €0.82.
  • Earnings per share (EPS) were €1.267, slightly higher than the estimated €1.25.
  • Banco BPM raised its bid for Anima to €7 per share.
  • The bank targets net income of €2.15 billion in 2027, with a cumulative net income above €7.7 billion from 2024 to 2027.
  • Projected cumulative distribution over 2024-2027 is above €7 billion.
  • 2025 full-year net profit is expected to be higher than the adjusted net profit of 2024.
  • The current market analysis includes 9 buy ratings, 7 holds, and no sells.

Banco BPM SpA on Smartkarma

Analysts on Smartkarma are closely monitoring the situation surrounding Banco BPM SpA following the recent all-share takeover bid by UniCredit SpA. Analyzing the offer of €6.6658 per share, Jesus Rodriguez Aguilar notes the strong financial appeal of the transaction. However, market sentiment suggests a potential requirement for a sweetened deal. The implied value of Banco BPM shares, representing a slight premium, highlights the intricacies of the proposed takeover. With Banco BPM trading at 0.72x P/BVPS and offering an 11.52% dividend yield, the situation presents a compelling opportunity for investors.

This insightful research report titled “Unicredit/Banco BPM: Italian Banking Consolidation” provides valuable analysis on the dynamics of the takeover bid. Notably, the gross spread of +7.4% indicates a possible necessity for UniCredit to enhance the offer through adjustments to the exchange ratio or the inclusion of cash components. Investors are advised to pay close attention to how UniCredit’s share price aligns with the IBES median target, as it could impact the final outcome of the acquisition. The research by Jesus Rodriguez Aguilar sheds light on the complexities of Italian banking consolidation and presents a nuanced view of the potential outcomes for Banco BPM SpA shareholders.


A look at Banco BPM SpA Smart Scores

FactorScoreMagnitude
Value4
Dividend5
Growth5
Resilience2
Momentum5
OVERALL SMART SCORE4.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Banco BPM SpA appears to have a positive long-term outlook based on a combination of factors assessed by Smartkarma Smart Scores. The company receives high marks for Dividend, Growth, and Momentum, indicating strong performance in these areas. With a top score for Dividend, Banco BPM SpA seems to offer attractive returns to its shareholders over time. Additionally, the high Growth and Momentum scores suggest that the company is positioned well for future expansion and market activity.

However, Banco BPM SpA lags in Resilience, receiving a score of 2. This lower rating may indicate some potential vulnerabilities that could impact the company’s ability to weather economic challenges. Overall, with solid ratings in Value, Dividend, Growth, and Momentum, Banco BPM SpA appears to have a promising outlook for the future, supported by its operations as a bank providing various financial services to customers in Italy.

Summary: Banco BPM S.p.A. is a bank operating in Italy, offering private and corporate banking, loans, e-banking, investment, and related services. The company’s Smartkarma Smart Scores highlight strengths in Dividend, Growth, and Momentum, showcasing a positive long-term outlook for Banco BPM SpA.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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