UPDATE 1-Italy's Banco BPM hikes profit goals after beating forecasts

(Adds details) MILANO, May 8 (Reuters) - Italy's Banco BPM on Monday raised its profit goal for this year and the next, after joining peers in posting stronger-than-expected first-quarter earning on the back of higher interest rates. Italy's third-largest bank said its net profit in the three months through March rose 49% from a year earlier to 265 million euros ($292 million), well above a 220 million euro analyst consensus compiled by Reuters. The lender forecast a 1.1 billion euro net profit this year, or 75 euro cents per share (EPS), having said in February that its 2023 EPS would top 60 euro cents, up from a 49 euro cent EPS goal set under its business plan.

Banco BPM expects to grow its net profit to 1.4 billion euros in 2024, doubling last year's net income figure and pushing its EPS to 90 euro cents. Income the bank reaps from the core lending business topped expectations at 743 million euros, posting a 45% yearly rise and a record quarterly performance. Holding broadly stable from a year ago, net fees strengthened significantly from the previous quarter and were up 7% thanks to the sale of investment products but also payments services.

Banco BPM is looking for a partner for its payment business and it said it would define the termsheet for a possible accord by the end of June.

Core capital strengthened in the quarter to 13.6% of risk-weighted assets (RWAs), up from 12.8% at the end of last year.

Banco BPM, which a year ago drew takeover interest from UniCredit thanks to its roots in Italy's wealthy north before seeing France's Credit Agricole emerge as its largest shareholder, said it would update its business plan by the end of the year. ($1 = 0.9073 euros)
(Andrea Mandalà, editing by Valentina Za)

Reuters

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UPDATE 1-Italy&apos;s Banco BPM hikes profit goals after beating forecasts

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UPDATE 1-Italy's Banco BPM hikes profit goals after beating forecasts