Banco BPM gains as much as 4.3% in Milan and
is the second-best performer on the Stoxx 600 Banks Index on
Friday, after reporting better-than-expected 1Q results, though
partly due to one-offs.
* Shares +2.4% as of 11:37am; volume 23% of 3-month daily
average
* Fidentiis (buy) says 1Q results were better than expected,with
positive operating performance and a “massive” trading beat on
unrealized gains
** 1Q net came in 30% ahead of estimates, operating performance
solid
* Citi (neutral) says 1Q net was higher than consensus, though
it included several one-offs; revenue ~11% higher mainly due to
trading income, with core revenue ~2% better
** Gross operating profit beat estimates; capital in line with
expectations
** Given changes in macro environment, bank will review
recently-presented plan and increase focus on cost cuts also
through higher branch closures and review of investments, to
offset weakness in revenue
* Kepler Cheuvreux (hold) says high 1Q net is due to high non-
cash trading income, only partially eroded by virus crisis
provisions
** Notes CEO guided for cost of risk in 80-90bps range this year
and “sounded positive” on NII trends
** Raises 2020-2023 adj. EPS ests. by average of 7.6%