Banco BPM上半年净利10.6亿欧元并上调全年盈利和分红目标

Stocks turn mixed after stellar start to August takes Wall Street back to record
Introduction & Market Context
Banco BPM presented its first-half 2026 results on August 5, 2026, showcasing record profitability and a historic milestone in asset quality. The Italian lender reported net income of €1.06 billion for the period, the highest half-year profit in the bank’s history, while simultaneously achieving a gross non-performing exposure ratio below 2% for the first time. The strong performance prompted management to raise both full-year earnings guidance and shareholder remuneration targets.
The presentation revealed a bank in the midst of a strategic transformation, with non-interest income now representing 52% of total revenues compared to just 38% in the first half of 2024. This shift reflects the success of Banco BPM’s product factory strategy, centered on wealth management, insurance, and specialized banking services.
Record Profitability Highlights
As shown in the following overview of the bank’s top-tier performance metrics, Banco BPM achieved significant milestones across profitability, asset quality, and capital generation in the first half of 2026:
The bank’s adjusted net income reached €1,077 million for the first half, with second-quarter results showing particularly strong momentum. Q2 adjusted net income of €594 million represented a 22.9% increase from the first quarter and a 13.2% gain year-over-year. Pre-tax profit from continuing operations climbed to €1,676 million for the half, up 18.4% compared to the second quarter of 2025.
The following chart illustrates the remarkable evolution of the bank’s profitability since the 2017 merger, demonstrating sustained growth even as Euribor rates have declined from their 2024 peak:
This long-term trajectory shows adjusted net income growing from just €145 million in H1 2017 to €1,077 million in H1 2026, representing a compound annual growth rate of 18.2% over the 2023-2026 period, despite an 87 basis point decline in average 3-month Euribor rates during that time.
Revenue Diversification Strategy
The bank’s strategic pivot toward fee-based revenues has accelerated significantly. Total revenues reached €3,196 million in the first half, with non-interest income contributing €1,659 million—a 55% increase compared to H1 2024. This diversification has proven crucial as net interest income faced pressure from declining interest rates.
The following breakdown demonstrates the bank’s improving revenue mix, declining cost base, and reduced provisioning needs:
Net interest income stood at €1,537 million for the half, down modestly from €1,567 million in H1 2025 on a pro forma basis. However, this was more than offset by robust growth in net fees and commissions, which reached €1,421 million, up 2.8% from the prior year pro forma figure. The bank’s "core revenues"—comprising net interest income, fees, income from associates, and insurance income—totaled €3,096 million.
Operating efficiency also improved markedly. The cost-to-income ratio fell to 43% for the half and 42% in the second quarter, representing the best historical level for the bank. Operating costs declined 1.6% year-over-year to €1,368 million, despite the integration of Anima Holding, which was consolidated beginning in April 2025.
The bank’s product factory strategy has become a significant revenue driver. As illustrated in the following chart showing the contribution from key business units:
Total revenues from key product factories—including Anima, Agos, Banco BPM Vita, Piùvera, and numia—reached €822 million in H1 2026, representing 26% of total revenues and tracking ahead of the bank’s 2026 plan target. This represents a 10% increase from the H1 2025 pro forma level and an 80% jump from H1 2024.
Investment product fees specifically grew 7.5% year-over-year to €731 million, with Anima contributing €287 million, up 15.6% from the prior year. The following breakdown shows the composition of net fees and insurance income:
Asset Quality Breakthrough
Perhaps the most significant achievement highlighted in the presentation was the bank’s asset quality improvement. For the first time in its history, Banco BPM’s gross NPE ratio fell below 2%, reaching 1.96% at June 30, 2026. The net NPE ratio stood at 1.03%, down from 1.42% a year earlier.
The following charts demonstrate the dramatic improvement in asset quality metrics since 2016:
Gross NPEs totaled €2.0 billion at mid-year, down €594 million or 22.8% year-over-year. When excluding NPEs with state guarantees, the net NPE ratio falls to just 0.53%, with the net bad loan ratio at only 0.1%. This improvement reflects both active NPE reduction efforts and a healthy performing loan portfolio, with 86% of core performing customer loans concentrated in mid-to-low risk classes.
The bank’s cost of risk declined to 31 basis points in H1 2026 from 33 basis points in the prior year, reflecting the improving credit environment. The default rate fell to 0.73% from 0.84% in full-year 2025, while the cure rate improved to 7.14% from 5.64%.
The following detailed view shows the bank’s effective credit management and improving NPE coverage:
NPE coverage ratios strengthened to 48.1% overall, with bad loan coverage at 60.4% and UTP coverage at 39.7%. The bank noted that its NPE vintage averaged just 1.9 years, indicating relatively fresh exposures with higher recovery prospects.
Capital Generation and Shareholder Returns
The bank’s capital position strengthened substantially during the first half. The CET1 ratio reached 14.40% at June 30, representing a 240 basis point increase since year-end 2024 and standing 140 basis points above the strategic plan’s minimum threshold of 13%.
The following waterfall chart illustrates the drivers of capital generation during the second quarter:
Despite accruing approximately €850 million in dividends (representing an 80% payout ratio), the bank generated 98 basis points of capital from Q2 performance alone. Additional contributions came from FVOCI reserves (+60 bps), deferred tax assets (+30 bps), partially offset by business dynamics (-24 bps) and dividend accruals (-83 bps).
This strong capital generation enabled Banco BPM to significantly enhance its shareholder remuneration plans. The bank raised its cumulative 2024-2027 distribution target from "greater than €6 billion" to "approximately €7 billion." For 2026 specifically, the bank increased its interim dividend guidance to approximately €750 million (€0.50 per share), up from €700 million in 2025, and projected a full-year dividend per share of at least €1.00.
Management indicated that the bank has "room to enhance shareholders’ remuneration" through both buybacks and additional dividends, subject to ECB approval. The presentation emphasized that this enhanced distribution returns the bank to its original plan’s maximum remuneration level, despite the deduction of Anima’s goodwill from capital.
The following chart shows how the bank’s profitability and capital metrics compare to strategic plan targets:
Strategic Business Updates
Lending activity showed resilience despite the challenging rate environment. New lending totaled €13.8 billion in H1 2026, including €7.6 billion in the second quarter, representing a 22% increase from Q1. The stock of core performing loans grew by €1.7 billion during the half to reach €96.3 billion.
The composition of customer financial assets demonstrated the bank’s success in gathering assets. As shown in the following breakdown:
Total customer financial assets reached €240.2 billion at Banco BPM, up €4.1 billion year-to-date and €7.6 billion in Q2 alone. Indirect funding stood at €130.3 billion, growing 5.5% in the second quarter driven by positive net flows of €1.8 billion. Including Anima’s total assets, the group’s customer financial assets reached €398 billion.
The bank’s deposit base remained solid at €105.8 billion, up €1.1 billion in Q2 and €664 million year-to-date, despite retail BTP placements of €1.5 billion during the half. The bank maintained a strong liquidity position, as illustrated in the following chart:
Cash plus unencumbered assets totaled €53.5 billion, with the Liquidity Coverage Ratio at 143% and the Net Stable Funding Ratio at 123%, both comfortably above regulatory requirements.
The bank’s digital transformation continued to advance. As shown in the following metrics on digital adoption and AI implementation:
Digital channels now account for 66% of all customer operations, up from 40% in 2019, with mobile app usage reaching 30% of transactions. The bank has delivered 21 AI use cases since 2024, representing 60% of its 2027 target, including 9 of 10 planned GenAI applications. Approximately 2 million customers now have digital identity, representing 78% of active customers.
The bank also highlighted its sustainability progress. As detailed in the following ESG update:
New low-carbon medium and long-term financing reached €3.6 billion in H1 2026, while women in managerial positions increased to 33.2% from 31.3% a year earlier. The bank issued €2.25 billion in green, social, and sustainability bonds during 2025 and H1 2026, with an additional €500 million green Tier 2 bond settled in July. ESG bonds now represent 40.6% of the corporate bond proprietary portfolio.
Forward-Looking Guidance
Based on the strong first-half performance, Banco BPM upgraded its full-year 2026 net income guidance to "greater than €1.95 billion" from the original plan target of €1.9 billion. Management noted this upgraded guidance accounts for recovering approximately €100 million of external headwinds not considered in the original plan, related to budget law changes and systemic charges.
The following summary shows the upgraded guidance and enhanced shareholder remuneration targets:
The bank expects the cost-to-income ratio to remain at or below 43% in the second half of 2026, while the cost of risk should continue performing better than plan assumptions of 43 basis points for 2026 and 40 basis points for 2027. Management projected that the CET1 ratio will remain well above the 13% plan threshold, supported by internal capital generation, DTA reduction, and managerial actions.
For net interest income, the bank expects improvement in the second half as loan repricing flows through the portfolio, with commercial spreads showing resilience. The bank’s interest rate sensitivity, measured through its replicating portfolio, stood at approximately €150 million, with the portfolio size at €27.4 billion as of June 30.
Fee income momentum is expected to continue, supported by the product factory strategy and investment products, with management targeting total fee income exceeding €1 billion annually by 2027. The bank noted that its share of net fees and insurance income on total revenues, at 47%, compares favorably to peer banks ranging from 32% to 46%.
The presentation concluded by emphasizing that Banco BPM is "ahead of the path towards 2024-2027 Strategic Plan target," with profitability and capital both above plan levels and the business model transformation progressing successfully. The allocation between buybacks and dividends for the enhanced shareholder remuneration will be determined following ECB approval, management indicated.
Full presentation:
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