Banco BPM CEO says profits to double as tycoon builds stake
Reuters
Published Apr 21, 2023 07:03
Updated Apr 21, 2023 11:31
MILAN (Reuters) -Banco BPM expects to double last year's net profit by 2025, its CEO was quoted as saying on Friday, as another newspaper reported that a top Italian businessman had built a 1% stake in Italy's third-largest bank.
"Over the next three years... we can double the 2022 net result (of 700 million euros ($767 million)). It's not an ambition but a fact," CEO Giuseppe Castagna told Il Sole 24 Ore newspaper a day after shareholders handed him a new three-year mandate.
Banco BPM is set to update its current business plan, which runs through 2024, to improve targets given higher interest rates.
"We're a year ahead of the plan's goals, which envisaged a 1 billion euro profit in 2024," Castagna said.
With roots in Italy's wealthiest region, Banco BPM has long been seen as an attractive takeover target in the banking sector, where more consolidation is expected.
Credit Agricole (EPA:CAGR) emerged as Banco BPM's single biggest investor a year ago shortly after UniCredit (LON:0RLS) held fire on a buyout offer it was ready to launch.
The French bank, which has since raised its stake to 9.9%, backed Castagna's reappointment.
Meanwhile, Italian construction and media magnate Francesco Gaetano Caltagirone has built a 1.1% stake in Banco BPM, daily MF reported on Friday. Caltagirone declined to comment.
This week another Banco BPM investor, Fondazione CRT, which is also a shareholder in UniCredit, spoke in favour of a merger between the two.
Asked about those comments, Castagna said that if UniCredit offered in cash double the price of Banco BPM's shares "it would be a no-brainer".
"What I'm interested in is that the bank is worth a lot," he said.
Castagna has long tried, without success, to have Banco BPM play an active role in consolidation to avoid it being swallowed by a bigger peer.
($1 = 0.9125 euros)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.