Banco BPM Reports Record H1 2026 Net Income

Banco BPM reported a record net income of EUR 1.06 billion for the first half of 2026, attributing the growth to improved fee income, reduced credit costs, and a record-low cost-to-income ratio of 43%. Based on these results, the lender raised its full-year 2026 net income guidance to above EUR 1.95 billion, up from the previous target of EUR 1.9 billion.

As part of its updated financial strategy, the bank increased its interim dividend guidance to EUR 750 million, or EUR 0.50 per share. It also raised its cumulative shareholder remuneration target for 2024-2027 from EUR 6 billion to EUR 7 billion. These payouts may include share buybacks, provided the European Central Bank grants approval.

Chief Executive Officer Giuseppe Castagna noted that gross nonperforming exposures fell to 1.96%, marking the first time the figure has dropped below 2%. To diversify revenue streams and decrease reliance on traditional lending, the bank is implementing a product-factory strategy to expand its presence in wealth management and insurance.