Banco Bpm Spa · MIL:BAMI
Banco Bpm Spa — Investor Presentation (February 2025)
32 slides from Banco Bpm Spa's investor presentation, February 2025
Slide 1: Group Presentation
Group Presentation February 2025 Financial Institutions Group
Slide 2: Agenda
Agenda 1 Group Overview 3 2 Key Messages: FY 2024 Executive Summary 14 3 FY 2024: Performance Highlights 19 Financial Institutions Group - Presentation 2
Slide 3: Group Overview
Group Overview 1
Slide 4: Who We Are
WHO WE ARE BANCO BPM commences on 1 January 2017 following the merger of two major cooperative banks, Banco Popolare and Banca Popolare di Milano, which have created a solid, profitable and sustainable banking group as a result of their transformation into joint- stock companies. With more than 20,0
Slide 5: A highly attractive competitive position, built on best-in-class footprint and product factories
A highly attractive competitive position, built on best-in-class footprint and a leading product factories model A STRONG FRANCHISE ROOTED IN THE A NEW MODEL EXTRACTING INCOME WEALTHIEST AREAS OF THE COUNTRY FROM ALL PRODUCT FACTORIES ~3.8 million clients In-house JV product PEER 1 PEER 2 PEER 3 PEE
Slide 6: From restructuring to sustainable long-term value creation
From restructuring to sustainable long-term value creation Banco BPM was established in January 2017 from the merger between Banco Popolare and BPM: ▪ First bank to take advantage of consolidation opportunities in the Italian banking system 2022 – 2024 ▪ First integration authorized by ECB, after AC
Slide 7: Transformational transactions well on track
Transformational transactions well on track Evolution path of our new strategic growth engines 2022/2023 2024 2025 2026 Laying the Implementing the Full integration foundations new configuration FULL OWNERSHIP IN LIFE INSURANCE • Acquisition of Life Bancass.1 • Full internalization of Life • Migrati
Slide 8: Strategic Plan Update: value-oriented and diversified business mix
Strategic Plan Update: a clear evolution path towards an increasingly value-oriented and well diversified business mix Breakdown of net income (€ bn) Wealth & Asset Management + Protection1 EPS EPS EPS €0.5 €1.12 ~ €1.40 2.15 WM activity 1.69 ~35% 10-15% More capital light Wealth Asset Life Non-life
Slide 9: Strategic Plan Update: cumulative Net Income > €7.7bn, higher shareholder remuneration
Strategic Plan Update: cumulative Net Income > €7.7bn, enabling a further increase in shareholder remuneration € bn > 7.7 SIZEABLE 2024-27 SHARHEOLDER REMUNERATION ~ 6.0 CUMULATIVE • >50% current market cap2 NET INCOME Strategic Plan 2023-26 Updated – Form of remuneration (dividends / buyback) to be
Slide 10: Credit Ratings now all INVESTMENT GRADE - Evolution since the merger
Credit Ratings now all INVESTMENT GRADE - Evolution since the merger1 Starting level Rating action Notch MAIN RATING ACTIONS (05/01/2017) (04/11/2024) Improvement Trend improvement on LT Deposits and Issuer/Senior Long-Term Senior Debt BBB (low) BBB +1 from Stable to Positive - rating actions of 04/
Slide 11: Global Transaction Banking
GLOBAL TRANSACTION BANKING GLOBAL TRANSACTION BANKING Mr. Fabio De Rosa GTB CLIENTS AND SALES Ms. Roberta Consonni FINANCIAL INTERNATIONAL TRADE FINANCE TRADE & EXPORT TRADE FINANCE SALES ESTERO OPERATIONS CREDIT INSTITUTIONS GROUP PAYMENTS & GUARANTEES PRODUCTS & CONTROLS Mr. Giacomo Gagliasso Ms.
Slide 12: Financial Institutions Group – The Team
FINANCIAL INSTITUTIONS GROUP – THE TEAM Flavia Giacconi - Head of FIG & Representative Offices +39 02 77002061 flavia.giacconi@bancobpm.it North America, UK, Scandinavian, Israel, Japan, Oceania Andrea Susani – Area Manager Rachele Zaglia +39 045 8274141 +39 0371580640 rachele.zaglia@bancobpm.it and
Slide 13: Financial Institutions Group – The Team
FINANCIAL INSTITUTIONS GROUP – THE TEAM China, Far East, Indian Subcontinent Katia Pippo +39 045 8274435 Annarosa Brunelli – Area Manager katia.pippo@bancobpm.it +39 045 8274474 Valeria Maria Ferrari +39 0371 582338 annarosa.brunelli@bancobpm.it valeriamaria.ferrari@bancobpm.it Africa, Middle East,
Slide 14: Key Messages: FY 2024 Executive Summary
Key Messages: FY 2024 Executive Summary 2
Slide 15: A management team with an undisputable track-record of growth and accomplishments
A management team with an undisputable track-record of growth and accomplishments... CONSISTENTLY EXCEEDING OUR OWN OUTSTANDING PERFORMANCE TRAJECTORY COMMITMENTS Adjusted Stated 1,432 1,264 1,691 1,920 1,432 1,691 1,360 Net Income 710 569 869 685 740 €m 2023 2023 2024 2024 guid. FY2021 FY2022 FY202
Slide 16: Accelerated profitability & higher remuneration in 2024
Accelerated profitability & higher remuneration in 2024: unprecedented level 16% €1.5BN DIV. PAYOUT INCREASED AT ~80%2 NET INCOME Adj. €1.7bn ROTE Adj. 2024 • 67% in 2023 • +€330m vs. 2024 guidance, +24% (vs. ~12.9% DIVIDENDS DPS 2024 at €1 • +€190m vs. 2026 target, +13% Guidance) (+78% vs. 2023) •
Slide 17: The road towards a >24% RoTE
: the place to be The road towards a >24% RoTE 2024 RESULTS AT ALL-TIME HIGH, OUTSTANDING TARGETS, STILL CONSERVATIVE AND ALREADY EXCEEDING 2026 TARGETS BACKED BY A PROVEN TRACK RECORD OF DELIVERY ▪ Net Income Stated at €1.9bn, with €1.5bn dividends ▪ 2027 Net Income €2.15bn, realistic and highly fe
Slide 18: Strategic Plan Update: sizeable increase of Net Income target for 2026
Strategic Plan Update: sizeable increase of Net Income target for 2026, with further growth in 2027 KEY MESSAGES BETTER PERFORMANCE, HIGHER REMUNERATION 2023-26 UPDATE STRATEGIC PLAN incl. ANIMA1 ▪ Updated macro scenario with conservative assumptions (-110bps in 2026 vs previous est.) Net Income > €
Slide 19: FY 2024 Performance Highlights
FY 2024 Performance Highlights 3
Slide 20: The road towards a >24% RoTE
: the place to be The road towards a >24% RoTE 2024 RESULTS AT ALL-TIME HIGH, OUTSTANDING TARGETS, STILL CONSERVATIVE AND ALREADY EXCEEDING 2026 TARGETS BACKED BY A PROVEN TRACK RECORD OF DELIVERY ▪ Net Income Stated at €1.9bn, with €1.5bn dividends ▪ 2027 Net Income €2.15bn, realistic and highly fe
Slide 21: FY 2024 results at historical highs, already surpassing our 2026 targets
FY 2024 results at historical highs, already surpassing our 2026 targets EXCELLENT REVENUE DELIVERY, SUSTAINED BY CONTINUING EFFICIENCY GAINS, SOLID & DIVERSIFIED BUSINESS MODEL BEST EVER RESULTS ON ASSET QUALITY €m COST / INCOME CORE REVENUES1 +5.4% vs. 2026 target 54% • NII & Fees 5.689 <50% 5.399
Slide 22: FY 2024 Net Income Adjusted at €1.7bn (+18% Y/Y)
FY 2024 Net Income Adjusted at €1.7bn (+18% Y/Y) Net Income Stated +52% Y/Y P&L HIGHLIGHTS, €m Q4 23 Q4 24 Chg. Y/Y FY 23 FY 24 Chg. FY/FY MAIN FY TRENDS Net interest income 868 855 -1.4% 3,289 3,440 4.6% 2023-26 Net fees and commissions 467 494 5.9% 1,920 2,004 4.4% STRATEGIC PLAN Income from assoc
Slide 23: Net Interest Income: solid Y/Y performance (+4.6%)
Net Interest Income: solid Y/Y performance (+4.6%) COMMERCIAL NETWORK: TREND OF NET INTEREST INCOME VOLUMES AND SPREADS1 €95.3bn Core Gross Performing Customer Loans MANAGERIAL ACTIONS ADDING POSITIVE NII CONTRIBUTION BOTH (-0.3% in Q4) IN AN INCREASING AND IN A DECLINING INTEREST RATE SCENARIO €21.
Slide 24: Net Interest Income: proven resilience driven by effective managerial actions
Net Interest Income: proven resilience driven by effective managerial actions CONSERVATIVE APPROACH IN MANAGING KEY MANAGERIAL ACTIONS ON NII SENSITIVITY VS. PEERS1 SENSITIVITY & FUNDING COST Euribor 3M 1Q22-4Q24 (avg. quarter) >€22bn 3.8% 4.0% 3.9% 3.8% 3.7% 3.4% 3.0% 2.6% Replicating portfolio2 (€
Slide 25: Total Net Fees & Commissions at an all time high
Total Net Fees & Commissions at an all time high: €2bn (+4.4% Y/Y) INCREASE IN TOTAL NET FEES … WITH INVESTMENT PRODUCT FEES UP THANKS TO A STRONG GROWTH IN AUM & AUC… TOTAL REVENUES FROM & COMMISSIONS1… KEY PRODUCT FACTORIES3 INVESTMENT PRODUCT STOCK OF €m PLACEMENTS (€bn) INDIRECT FUNDING (€bn) €m
Slide 26: Positive trend in FVOCI debt reserves and Net Financial Result
Positive trend in FVOCI debt reserves and Net Financial Result RESERVES OF DEBT SECURITIES BREAKDOWN OF NET FINANCIAL RESULT: AT FVOCI1 STRONG CONTRIBUTION FROM HEDGING STRATEGIES Post-tax EVOLUTION Y/Y DETAILS Q/Q €m Total Net Financial Result Other NFR Components ▪ Q3 benefitted from 31/12/23 30/0
Slide 27: Cost/Income ratio reduced to 47%, driven by rigorous cost discipline
Cost/Income ratio reduced to 47%, driven by rigorous cost discipline Positive contribution from solidarity fund starting from 2025 TOTAL OPERATING COSTS €m 2,571 2,656 Staff costs are set to benefit from the D&A 247 266 645 solidarity fund signed in December 2024, 652 Other Administrative Expenses f
Slide 28: Outperforming derisking plan, with enhanced asset quality and CoR
Outperforming derisking plan, with enhanced asset quality and CoR NET NPEs: NOW BELOW €1BN (excl. State Guarantees) Gross NPEs -23.9% Y/Y Net NPEs -15.1% Y/Y LLPs & COST OF RISK €3.75bn €2.85bn €1.86bn €961m LLPs UTP + Past Due 2,15 €1.58bn excl. loans with State 1,69 1,24 Guarantees, o/w: -17.4% 1,
Slide 29: Strong Capital, Liquidity and Funding position
Strong Capital, Liquidity and Funding position ORGANIC CAPITAL GENERATION: +358BPS ANTE DIVIDEND DISTRIBUTION % +343bps -242bps 15,44 14,16 -49bps -3bps +28bps +52bps -39bps 15.05 ~14% Including +88bps from 2023-26 Numia transaction Strategic Plan landing point 31/12/23 FY 2024 AT1 coupons Impact of
Slide 30: P&L: FY comparison & comparison of FY 2024 stated vs. adjusted
P&L: FY comparison & comparison of FY 2024 stated vs. adjusted STATED FY 2024ADJUSTED & NON-RECURRING ITEMS FY 24 Reclassified income statement (€m) FY 23 Reclassified income statement (€m) FY 24 Chg. Y/Y Chg. Y/Y FY % 24 One-off Non-recurring items Adjusted Net interest income Net interest income3,
Slide 31: Disclaimer
Disclaimer This presentation has been prepared by Banco BPM ("Banco BPM"); for the purposes of this notice, "presentation" means this document, any oral presentation, any questions and answers session and any written or oral material discussed following the distribution of this document. The distrib
Slide 32: Methodological Notes
Methodological Notes ▪ The balance sheet and income statement layouts contained in this news release have been reclassified along management criteria in order to provide an indication on the Group’s overall performance based on more easily understandable aggregate operating and financial data. These