(Alliance News) - BPER Banca Spa reported Wednesday that it closed the quarter with a consolidated net income of EUR457.3 million from EUR290.7 million in the first quarter of 2023.

Net banking income amounted to EUR1.37 billion from EUR1.29 billion in the same period.

As of March 31, the group made an interest margin of EUR843.6 million, up 16 percent from EUR726.0 million in Q1 2023, thanks in particular to the level of the commercial spread resulting from the interest rate trend, the limited impact on the cost of deposits, and the contribution from the investment portfolio.

Net fees and commissions are EUR510.4 million up 0.9 percent from EUR506.1 million in the same period last year.

Assets under management are EUR67.3 billion is up 3.1 percent and assets under administration are EUR89.6 billion up 7.0 percent.

"The rigorous approach in the management of impaired loans and the derisking actions undertaken, have enabled the Bank to achieve high asset quality standards," the statement reads, "the ratio of gross impaired loans to customers is 2.6 percent from 2.4 percent at the end of 2023, while the ratio of net impaired loans to customers is 1.2 percent, in line with the figure at the end of 2023.

Common Equity Tier 1 ratio is 14.9% from 14.5% as of Dec. 31, 2023, Tier 1 ratio is 16.1% from 14.7% as of Dec. 31, 2023, and Total Capital ratio is 19.5% from 18.1% as of Dec. 31, 2023.

As for the future, "for fiscal year 2024, the bank confirms a guidance that presents a slightly decreasing net interest income, consequently to a potential reduction of the banking spread correlated to a less restrictive monetary policy, net commissions with a positive dynamic thanks to the development of revenues from asset management and brokerage and advisory services, operating expenses in line with those of 2023 with respect to which the full effect of the renewal of the national collective labor agreement of the credit and financial sector should be considered."

In addition, regarding asset quality, "solid coverage levels and a stable cost of credit are expected to be maintained compared to 2023. Net ordinary profitability is expected to be in line with that of 2023, net of the effect of deferred taxation. The Bank's capital strength is expected to be confirmed and strengthened."

CEO Gianni Franco Papa commented, "The results are in line with BPER's positioning in the Italian economic scenario a large bank capable of generating constant value to the benefit of all stakeholders. The current market environment, characterized by continuing uncertainty, certainly presents us with new challenges that I am sure we will be able to manage."

BPER Banca's stock closed Wednesday in the red by 0.6 percent at EUR4.91 per share.

By Chiara Bruschi, Alliance News reporter

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