(Alliance News) - BPER Banca Spa reported Wednesday that it ended 2023 with a year-on-year increase in net profit, prompting the institution to raise its proposed dividend.

Last year's net income was EUR1.55 billion, up from EUR1.47 billion in 2022, with the bank's board proposing to pay a dividend of EUR0.30 compared to EUR0.12 paid a year earlier.

Income rose to EUR5.49 billion from EUR4.26 billion a year earlier, with net interest income rising to EUR3.25 billion from EUR1.83 billion and net fees improved to EUR2.01 billion from EUR1.94 billion.

Operating expenses were EUR3.08 billion from ERU2.79 billion while operating income rose to EUR2.42 billion from EUR1.47 billion. Pre-tax profit improved to EUR1.72 billion from EUR1.50 billion and parent company profit rose to EUR1.52 billion from EUR1.49 billion.

Direct customer deposits stood at EUR118.8 billion, up 3.4 percent from the end of 2022. Key drivers include good performance in time deposits of EUR2.1 billion, bonds of EUR4.9 billion, certificates of EUR1.1 billion, and positive performance in repurchase agreements of EUR2.1 billion; all of which more than offset the EUR8.0 billion decline in current accounts in 2023.

Indirect customer deposits amounted to EUR170.1 billion. Within the aggregate, assets under management of EUR65.2 billion are up 7.7 percent and assets under administration amount to EUR83.8 billion up 7.0 percent.

Net loans and advances to customers amount to EUR88.2 billion - EUR90.0 billion gross loans and advances - down 3.2% from the figure at the end of 2022.

The rigorous approach to the management of impaired loans and the derisking actions undertaken have enabled the bank to achieve high asset quality standards: the ratio of gross impaired loans to customers is 2.4%, down from the end-2022 figure of 3.2%, while the ratio of net impaired loans to customers is 1.2%, down from the end-2022 figure of 1.4%.

Common Equity Tier 1 ratio is 14.5 percent from 12.0 percent as of December 31, 2022; Tier 1 ratio is 14.7 percent from 12.3 percent as of December 31, 2022; Total Capital ratio is 18.1 percent from 15.6 percent as of December 31, 2022.

BPER Banca CEO Piero Luigi Montani said, "2023 was a particularly significant year in which the bank managed to achieve excellent results that confirm its persistent ability to generate revenues. Credit risk indicators are confirmed at very low levels and capitalization levels remain solid. The 2023 results are in line with our positioning as a large Italian bank, constantly listening to the needs of our customers and territories, aimed at offering an increasingly sustainable and evolved response."

"Aware of the uncertainties of a complex macroeconomic framework, we face 2024 with confidence, convinced that we will be able to confirm the quality of the results achieved in 2023 to the benefit of all stakeholders thanks to the progress made on the revenue generation front, combined with the robust capital and liquidity position and solid credit quality."

BPER Banca's stock closed Wednesday up 1.0 percent at EUR3.54 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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