MILAN, Feb 7 (Reuters) – Banco BPM (BAMI.MI) confirmed its 2023 web earnings per share and raised its dividend for 2022 on Tuesday, after larger rates of interest helped it beat fourth quarter revenue forecasts.
Italy’s third-largest financial institution mentioned its web revenue for the three months by December greater than doubled from a 12 months earlier to 210 million euros ($225 million), nicely above a 178 million-euros forecast in a Reuters analyst ballot.
Revenue from Banco BPM’s core lending enterprise rose 31% quarter-on-quarter, reaching 2.3 billion euros for 2022 and greater than offsetting a weakening in charges on the finish of the 12 months.
Banco BPM Chief Govt Giuseppe Castagna instructed analysts that web charges could be broadly flat this 12 months, whereas web curiosity margin was projected to rise 17% to 2.7 billion euros, assuming a median interbank price of two.5% in 2023.
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With a enterprise mannequin geared in the direction of lending to Italy’s myriad companies, Italian banks are nicely positioned to learn from the European Central Financial institution’s financial coverage tightening.
Banco BPM mentioned it anticipated 2023 web earnings of above 60 euro cents (EPS) per share, sticking to its newest steerage which it had raised in November from a 49 euro cent EPS objective set below its marketing strategy.
Castagna instructed analysts that Banco BPM now noticed its 2024 EPS at round 75 cents, elevating its earlier estimate.
Banco BPM is seen as a possible takeover goal for each Credit score Agricole (CAGR.PA), which has change into its single largest shareholder, and UniCredit (CRDI.MI), which studied a takeover provide on the eve of the Ukraine warfare however didn’t comply with by.
The financial institution’s shares have risen by 47% over the previous 12 months.
Banco BPM mentioned it could suggest a dividend per share of 23 euro cents on 2022 earnings, up from 19 euro cents for 2021.
($1 = 0.9343 euros)
Reporting by Andrea Mandalà; Modifying by Valentina Za and Alexander Smith
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