Banca Popolare di Sondrio Reports 23.9% Rise in 9-Month Net Income; Forecasts 15% ROE for 2024

Banca Popolare di Sondrio reported a 23.9% YoY increase in net profit for the first nine months, totaling €431.9 million. The growth was attributed to higher net interest income and commissions, which outweighed higher adjustments and costs. Net interest income surged by 21.7% to €813.6 million, while fees rose by 9.5%. The bank anticipates a Roe of at least 15% for 2024 and expects net interest income to exceed €1 billion, higher than the initial forecast of €950 million. Despite a 42.6% increase in net impairment losses, the bank maintained a strong capital position with a Cet 1 ratio of 16.3%.

Banca Popolare di Sondrio (BPSD), the Italian commercial bank, reported a remarkable 24% year-over-year (YoY) increase in net profit for the first nine months of 2024, reaching €431.9 million [1]. This growth surge can be attributed to the significant rise in net interest income and commissions, which outweighed the higher adjustments and costs.

According to data from MarketScreener, net interest income for the bank increased by 21.7% to €813.6 million, while fees rose by 9.5% to €317.7 million [1]. The bank's net interest and other banking income also grew substantially, reaching €1.23 billion from €1.05 billion in 2023 [1].

The bank's solid financial performance was further underscored by its key ratios. The common equity tier 1 (CET1) ratio stood at 16.3% compared to 15.1% in 2023, while the total capital ratio increased to 19.3% from 17.5% [1]. These figures demonstrate the bank's resilient financial position and its ability to weather economic uncertainties.

Despite a 42.6% increase in net impairment losses, BPSD maintained a strong capital position. The bank expects a return on equity (ROE) of at least 15% for 2024 and anticipates net interest income to exceed €1 billion, surpassing the initial forecast of €950 million [1].

Il Sole 24 Ore Radiocor reported that BPSD's net profit growth was particularly noteworthy in the third quarter, with a 18.9% increase in net profit to €168.3 million [2]. The bank's margins of intermediation and interest also showed significant growth, reaching 1,200 million and 813.5 million, respectively [2].

BPSD's impressive financial results have contributed to a positive market response. The bank's shares closed in the green on November 5, 2024, up by 2.7% at €7.20 per share [1].

In conclusion, Banca Popolare di Sondrio's robust financial performance in the first nine months of 2024 is a testament to the bank's ability to generate revenue and maintain a strong capital position. Despite facing challenges such as rising impairment losses, the bank remains optimistic about its future prospects.

[1] Alliance News. Popolare Sondrio raises guidance after growth in nine months. November 5, 2024. https://www.marketscreener.com/quote/stock/BANCA-POPOLARE-DI-SONDRIO-76201/news/Popolare-Sondrio-raises-guidance-after-growth-in-nine-months-48263681/
[2] Il Sole 24 Ore Radiocor. Maturati dividendo per 240 mln, payout 55%. November 5, 2024. https://www.ilsole24ore.com/radiocor/nRC_05.11.2024_18.04_69510695