Banco BPM increased its cumulative shareholder distribution target for 2024 through 2027 to approximately €7 billion from €6 billion as record profitability, capital generation and asset quality give the Italian banking group additional capacity for dividends and share repurchases.
The higher distribution target is expected to be delivered through a combination of cash dividends and share buybacks. Banco BPM also raised its planned 2026 interim dividend to approximately €750 million, or roughly €0.50 per share, compared with about €700 million and €0.46 per share in 2025.
The bank now expects full-year 2026 dividend per share of at least €1, compared with previous guidance of approximately €1. Its upgraded capital return plan is supported by stronger distributable profits and excess capital above Banco BPM’s strategic minimum CET1 threshold.
Asset quality reached a new milestone during the first half. Gross non-performing exposures declined 23% year-over-year to €2 billion, pushing Banco BPM’s gross NPE ratio below 2% for the first time in its history, to 1.96%. The net NPE ratio stood at 1.03% and fell to 0.53% when loans backed by state guarantees are excluded.
The default rate improved to 0.73% from 0.84% in 2025, while NPE coverage increased to 48% from 46% at the end of 2025. The CET1 ratio increased to 14.4% from 13.59% at the end of March, leaving the bank 140 basis points above its strategic-plan minimum threshold of 13%.
Profitability also reached a record. Adjusted net income increased 7% to €1.077 billion, representing a new all-time high for Banco BPM, while stated net income reached €1.06 billion. The bank raised its full-year 2026 net income guidance to more than €1.95 billion and said it is now ahead of the trajectory toward its €2.15 billion 2027 target.
Operating efficiency reached its best level in Banco BPM’s history, with the cost-to-income ratio improving to 43%. Adjusted operating expenses declined 1.6% on a pro forma basis to €1.368 billion, while adjusted pre-tax profit from continuing operations increased 7.7% to €1.676 billion.
Banco BPM’s revenue mix is also becoming less dependent on net interest income. Non-NII revenues accounted for 54% of total revenues during H1, while net fees and insurance income represented 47%, which the bank said was the highest level among comparable Italian banks.
Total group customer financial assets reached €398 billion. Anima accounted for €213.1 billion of customer financial assets, including €210.4 billion of assets under management, which increased by €8.8 billion during Q2.
