BPER Banca (BPE) Q2 2025 earnings summary

Executive summary

• Record 1H25 net profit of €903.5m, up 29.5% half-on-half, driven by higher revenues, lower costs, and best-ever results.

• Completed BPSO business combination and public tender, acquiring ~80.7% stake, enabling rapid integration and expected €290m pre-tax annual synergies by 1H26.

• Strengthened position as Italy's 3rd largest bank by market share in TFA, loans, deposits, and branches.

• Business plan initiatives fully launched, with strong lending growth (+20.7% H/H), solid commission income, and ongoing digital and ESG advancements.

• Asset quality among the best in Italy, with gross NPE ratio at 2.5%, net at 1.1%, and NPE coverage at 55.6%.

Financial highlights

• 1H25 net profit reached €903.5m, marking the best six-month result in group history.

• Total revenues in 1H25 were €2.9bn (+3.4% H/H); core revenues stable at €2.7bn.

• Net interest income at €1.63bn, down 3.4% half-on-half; net commission income up 4.8% to €1.06bn.

• Operating costs fell 4.9% half-on-half to €1.33bn; cost/income ratio improved to 46.6%.

• New lending in 1H25 totaled €10.4bn, up 20.7% half-on-half.

Outlook and guidance

• FY25 total revenues guidance raised to ~€5.5bn, cost/income ratio to ~50%, and CET1 ratio above 15.5%.

• Net interest income expected to decline mid-single digit, net commission income to rise mid-single digit.

• Cost of risk expected below 40bps; business plan update post-BPSO integration planned for 1H26.

• Combined entity CET1 ratio expected at ~15% by end-2025; full BPSO integration targeted by April 2026.

• ROT/ROTE target remains at 15%, with current performance above 20%.