What will happen to Banco Bpm, Sondrio and Creval?

What will happen to Banco Bpm, Sondrio and Creval?

The article by Emanuela Rossi

After the transaction that led Intesa Sanpaolo to conquer Ubi Banca, there is still talk of risk and other possible aggregations between the country's medium-small credit institutions. Certainly we continue to write about it: the last suggestion concerns the possible marriage between a popular and a former popular, Banca Popolare di Sondrio and Credito Valtellinese.


Founded almost 150 years, the Popolare di Sondrio has contributed to the economic development of Valtellina and is now listed on Piazza Affari. Led by managing director Mario Alberto Pedranzini, it can count on over 2,500 employees and almost 500 branches. The latest data available, relating to the first half of 2020, speak of a net profit of 14.41 million euros, down by 69.3% compared to 47.01 million in the same period of the previous year. The net result from financial and insurance management also decreased from € 321.98 million to € 272.47 million. A negative sign also for the intermediation margin, which went from 429.1 million to 373.05 million euros (-13.1%).

As regards net loans to customers as at 30 June last, they amounted to € 28.73 billion, an increase of 4.9% compared to the € 27.39 billion at the beginning of the year, while net impaired loans amounted to 1.27 billion euros (-19% compared to 1.57 billion at the beginning of 2020) and represent 4.44% of total loans, with coverage of 54.29%.


In these days there has also been talk of Popolare di Sondrio because the Council of State has lifted the suspension on the transformation of the company name into a joint stock company as regards cooperative banks with assets greater than 8 billion euros. So the time has also come for the Valtellinese credit institution – five years after the reform of the cooperative banks and the mutual banks wanted by the Renzi government – to transform itself into SpA. Popolare Sondrio – which will be the last of those of a certain importance to do so in chronological order – it will have to "comply" by 2021 as reported in the Simplification Decree.

The decision of the Council of State has arrived, reports Il Sole 24 Ore, because the conditions that led to the suspension of the law no longer exist, following the decisions of the Constitutional Court, one in 2016 and one in 2018, and that of the Court of EU Justice of last July. Furthermore, the reform of the cooperative banks would not conflict with European legislation.


In the Corriere Economia last Monday, Edoardo De Biasi reported that there are those who "sponsor an aggregation between Banco Bpm and Popolare di Sondrio, especially after the revocation by the Council of State of the suspension on the change of the company name to a joint stock company of the banks popular ". But on the table of the former popular medium-sized ones, someone also mentions the name of their “cousin”, Credito Valtellinese. In both cases, he notes, "it would be the beginning to create an Italian pole based on the world of popular". Later, Bper could also move in the same direction, “by now destined to become an aggregating system”.


Over 110 years of history for Credito Valtellinese, founded in Sondrio and transformed into a spa already in 2016. Currently Creval is headed by the CEO Luigi Lovaglio. Coming to the latest numbers, in the first six months of the year the bank achieved a net profit of € 41 million + 74% compared to € 23.5 million a year earlier. The institute has worked well on the disposal of non-performing loans thanks to the sale from the beginning of 2020 of several portfolios for a gross book value of over 800 million euros which contributed to a 46.3% decline in gross non-performing loans on a basis annual (-66.3% in the stock of bad loans).

With regard to capitalization, the CET1 ratio as at 30 June last was 16.7%, up by 270 basis points from 14% at 30 June 2019, while shareholders' equity stood at 1,700 million euros, +44 million compared to 31 December 2019. In terms of deposits, direct deposits are down (€ 17.7 billion compared to € 19.2 billion in the same period last year). In particular, deposits from retail customers increased (+ 6.3% on an annual basis), which amounted to 11.2 billion euros, and that of corporate customers decreased, to 4.5 billion euros.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/che-cosa-succedera-a-banco-bpm-sondrio-e-creval/ on Sun, 18 Oct 2020 04:36:00 +0000.