FinecoBank and BPER Banca Report Higher Nine-Month Profits

what happened

FinecoBank reported nine-month profit after taxes from continuing operations of 531.5 million euros, up 10.6% from a year earlier. Revenues rose 12.0% to 1.09 billion euros. Net financial income reached 520.3 million euros, helped by higher volumes while average market rates were nearly flat. Third-quarter net profit came to 188.1 million euros, up 15.6% year on year. Shares trade at 22.71 euros on Borsa Italiana, up 2.34%.

BPER Banca earned nine-month profit attributable to parent company owners of 1.94 billion euros, compared with 1.73 billion euros a year earlier. Adjusted net profit rose 16.4% to 2.01 billion euros, and excluding TRS and other market effects it reached 1.94 billion euros, up 12.2%. Core revenues totalled 5.38 billion euros, up 3.5%. Net interest income was 3.375 billion euros, and net fee and commission income rose 3.4% to 2.00 billion euros. The bank's shares fell 0.92% to 13.52 euros.

why it matters

Both reports point to resilience in the Italian banking sector. FinecoBank's growth came from business volume while rates stayed stable, and BPER's came from interest and fee income. Share reactions diverged on the day, with FinecoBank rising and BPER falling.

market impact

Italian banks: profit growth at FinecoBank and BPER supports the sector, with share reactions diverging

• ▲FinecoBank shares pressure up — higher profit and revenue support the stock price
• ↔BPER Banca shares mixed — profit growth was offset by a share price decline on the day

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