(Adds CEO comments from conference call)
MILANO, May 9 (Reuters) - BPER Banca said on
Tuesday it was on track to meet its 2022-2025 financial targets
earlier than expected after first-quarter net profits more then
doubled on higher interest rates.
Italy's fourth-largest bank reported a net profit of 290.7
million euros ($320 million), jumping from 113 million euros a
year earlier, and above analysts' consensus forecast of 225
million compiled by Reuters.
Income from its lending business rose 92.9% from a year
earlier to 726 million euros, outpacing expectations, boosted by
higher rates and the recent acquisition of smaller peer Banca
Carige.
Net fees climbed 12.3% year-on-year thanks also to sales of
insurance products, but declined 3.4% on the previous quarter
due in part to seasonal factors.
The boost from higher rates would continue to drive profit
higher and the lender forecast 2.5 billion euros in net interest
income this year, raising its previous guidance of 2.2 billion,
BPER Banca CEO Piero Montani told analysts in a post-results
conference call.
The lender aims to achieve this year the 800 million euro
profit target originally set in its business plan for 2025, the
CEO said, adding he was "always very cautious" about estimates
as the market scenario can change quickly.
BPER said it planned to sell a non-performing loan with a
gross book value of more than 400 million euros.
Core capital strengthened in the quarter to 13.3% of
risk-weighted assets (RWAs), up from 12% at the end of last
year.
($1 = 0.9084 euros)
(Reporting by Andrea Mandalà Editing by Alvise Armellini and
Mark Potter)
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