Banco BPM (BAMI) Q2 2026 earnings summary

Executive summary

• Achieved record H1 2026 net income of €1,060 million (adjusted: €1,077 million), driven by improved revenue mix, cost efficiency, and declining provisions.

• Gross NPE ratio fell below 2% for the first time (1.96%), reflecting best-ever asset quality.

• CET1 ratio reached 14.40%, up 240bps since YE 2024 and well above the 13% plan threshold.

• Upgraded FY 2026 net income guidance to over €1.95 billion and raised cumulative 2024–2027 shareholder remuneration target to ~€7 billion.

• Interim dividend guidance raised to ~€750 million (DPS ~€0.50), with full-year DPS guidance at ≥€1.00.

Financial highlights

• H1 2026 net income at €1.06 billion, up 22% year-over-year; total revenues reached €3,196 million, up 5.7% year-over-year.

• Non-NII revenues increased to 52–54% of total, up 55% vs H1 2024; net fee and commission income rose 13.8% year-over-year.

• Net interest income at €1,537 million, down 4.1% year-over-year but up 4.6% sequentially in Q2.

• Cost/income ratio improved to 42.8–43%, the best historical level.

• Loan loss provisions declined to €76–157 million, with cost of risk at 31 bps.

Outlook and guidance

• FY 2026 net income guidance upgraded to >€1.95 billion, with expected DPS ≥ €1.00.

• Cumulative 2024–2027 shareholder remuneration target increased to ~€7 billion, with €4 billion to be distributed in 2026–2027.

• Confident in maintaining CET1 above 13% through internal capital generation and DTA reduction.

• Cost of risk expected to outperform business plan guidance (below 43 bps for 2026 and 40 bps for 2027).

• Share buyback plan to be initiated, subject to regulatory approval.