All plans of Bper

11 June 20222 years ago babelfish

What does Bper's business plan envisage and what happened to the banking group's stock on the stock exchange. Facts, numbers and scenarios

Bper's plan does not arouse enthusiasm this morning in Piazza Affari: Bper sells 5.72% – at 10 am – after the plan's diffusion by 2025.

But what does the banking group's plan envisage?

ALL THE NUMBERS OF THE BPER PLAN

The industrial plan of Bper 2022-2025 foresees to achieve a million net profit of 800 million at the end of the plan, with a return on tangible capital (rote) of more than 10% and a payout ratio (percentage of profit allocated to coupon) of 50% in 2025. The distribution of dividends for at least one billion euro and the maintenance of "high capital strength" is expected over the four-year period, through a completely phased Cet1 index of more than 13%. The path to reduce NPLs will be accelerated with a mix of industrial shares and disposals, with the aim of reaching the end of the plan with gross impaired loans at 3.6%.

HOW THE BPER'S PROFITS WILL GO

WHAT WILL HAPPEN TO REVENUES

The plan foresees an increase in revenues from 3,380 million in 2021 to 4,290 million in 2024 and 4,370 million in 2025 while costs will rise from 2.1 billion to 2.57 billion in 2024 to stabilize at 2.53 billion in 2025. This will allow income from operations to rise from 1.28 billion in 2021 to 1.71 billion in 2024 and 1.84 billion in 2025. Loan adjustments will grow slightly from 528 million to 635 million in 2024 and 590 million in 2025, although the point cost of risk will drop from 67 basis points in 2021 to 60 basis points at the end of the plan. The profit, equal to 384 million in 2021, will thus be able to rise to 640 million in 2024 and 800 million in 2025. Commercial activity is growing with destined to rise from 79 billion to 95 billion by 2025, direct deposits that will increase from 101 to 111 billion and indirect deposits from 166 to 190. The payout will rise to 50% as early as 2024.

THE TWO RUNNING DIRECTIONS FOR BPER

There are two main development guidelines for the plan: on the one hand – explains Bper – "extraordinary transactions, aimed at further strengthening the national competitive position at the level and guaranteeing greater focus on the group's core activities, also via the disposal and deconsolidation of non-consolidated assets. strategic that will make it possible to free up capital of over 500 million to be allocated to business development ". On the other hand, the “organic growth levers, divided into five ambitious projects functional to the evolution towards a new multi-specialist business model of Bper in a capital light perspective, through the enhancement of strategic product factories and a strong drive towards digitalization”.

PERSONAL DOSSIER

In terms of personnel, Bper's industrial plan provides for the exit of 3,300 resources against 1,450 hires and a downsizing of the branch network, with the closure of 600 branches by 2024 (of which 140 already completed), equal to 29% of total branches at the end of last year. We read it in a note.

THE SALE OF NON-STRATEGIC ASSETS

Bper's industrial plan envisages the sale of non-strategic assets with a positive impact on the capital position, expressed by the Cet1 index, of over 500 million euros and to simplify the operating model to favor "a decision to improve efficiency and productivity ”Through investments in IT for over 500 million euros, almost triple compared to the previous piano, and through a structural decrease in personnel costs thanks also to a generational and professional turnover that rewards consistent with the new needs of the piano.

SYNERGIES WITH CARIGE

Bper expects to realize synergies for 155 million sir from the acquisition of Banca Carige when fully operational . The synergies, a note reads, will unfold 50% in 2023 and 100% in 2024. Of these 85 million are represented by cost synergies, 40 million by financing (funding) synergies and 30 million by revenue synergies

THE POLO WITH CESARE PONTI

Bper plans to create in the second half of 2023 a wealth management and asset management hub with Banca Cesare Ponti, Carige's private bank, "as an investment vehicle and center of excellence directly overseeing private customers, as well as a management and advisory center with the task of coordinating the various product factories on the Wealt Management business ", such as Arca sgr, Optima Sim, Bper Lux." This operation – reads the note on the plan – maximizes the synergies between the distribution networks and the product companies asset management and life bancassurance ".

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/tutti-i-piani-di-bper/ on Fri, 10 Jun 2022 07:43:31 +0000.