Banco BPM (BAMI) Q1 2026 earnings summary

Executive summary

• Q1 2026 net income reached €480 million (adjusted €483 million), up 15% quarter-over-quarter and 7% above market consensus, with ROTE at 20% and ROE at 15%, meeting or exceeding strategic plan targets.

• CET1 ratio stood at 13.59%–13.6% at March-end, rising to nearly 14% in April, maintaining a buffer of 404 bps above regulatory minimums.

• Cost/income ratio improved to 44% from 47% in 2024 and 48% in Q4 2025, reflecting rigorous cost discipline.

• Non-NII revenues accounted for 51–53% of total, highlighting diversification and resilience.

• Strong business model execution, with product factory and Anima contributions exceeding targets and significant cost and risk reductions.

Financial highlights

• Total revenues for Q1 2026 were €1,530 million, up 3.8–4% quarter-over-quarter and year-over-year, despite lower Euribor.

• Net interest income was €751–751.4 million, stable quarter-over-quarter but down 8% year-over-year.

• Net fees and commissions reached €708–708.1 million, with investment product fees up 8% quarter-over-quarter and representing 53% of total net fees.

• Operating costs declined 3.7% quarter-over-quarter and 2% year-over-year to €674–674.5 million.

• Loan loss provisions dropped to €78–82 million, with cost of risk reduced to 32 bps.

Outlook and guidance

• Confident in achieving or exceeding 2026 and 2027 targets, with Q1 results in line or ahead on revenues, fees, costs, and risk.

• Dividend of €1 per share confirmed for 2026, implying an 8% yield and 80% payout.

• 2027 net profit target of €2.15 billion and cumulative net profit over €7.7 billion for the plan period remain on track.

• NII expected to remain in line with 2025 exit level, with moderate loan and deposit growth and fee growth driven by investment products and Anima synergies.

• Tax rate guidance for 2026 is 34–35%.