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1. Company Snapshot

1.a. Company Description

BPER Banca SpA provides banking products and services for individuals, and businesses and professionals in Italy and internationally.The company operates through Retail, Private, Corporate, Large Corporate, Finance, Corporate Center, and Other Assets segments.It offers loans, mortgages, insurance and social security, accounts, and digital banking related services; cards; and investments and savings products and services.


The company also provides financing and leasing, credit management and factoring, collection and payment, import and export, liquidity and investment management, digital, and other services.In addition, it offers wealth management services comprising portfolio management, global advisory, finance advice, and wealth advisory services; insurance investment products; and funds and SICAVs. As of December 31, 2021, it operated through a network of 1742 branches.The company was founded in 1867 and is headquartered in Modena, Italy.

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1.b. Last Insights on BPE

BPER Banca's recent momentum is driven by a 32% Q4 profit beat, fueled by robust core revenue growth and reduced costs. The Italian lender's strong earnings report underscores its resilience, with core revenues outpacing expectations. As a dividend stock, BPER Banca offers an attractive yield, making it a viable option for investors seeking stable income amidst economic uncertainty, as highlighted by Investing.com.

1.c. Company Highlights

2. BPER's Strong 2025 Performance Driven by Revenue Growth and Operational Efficiency

BPER's financial performance in 2025 was outstanding, with total revenues reaching EUR 6.6 billion, up by 2.5% in the last 12 months, driven by a resilient net interest income and a strong result in net commissions. The adjusted net profit was EUR 2.1 billion, and the EPS was 0.289, in line with analysts' estimates. The bank's cost-to-income ratio stood at 45.7%, reflecting its continued focus on operational efficiency.

Publication Date: Feb -08

📋 Highlights
  • Net Profit & Revenues:: Adjusted net profit EUR 2.1 billion, total revenues EUR 6.6 billion, with ROE of 20%.
  • Cost Efficiency:: Cost-to-income ratio reduced to 45.7% (down 5.1% YoY), driven by operational efficiency measures.
  • TFAs Growth:: Total fund under management (TFAs) surged to EUR 551 billion (up from EUR 420 billion with new group perimeter).
  • Capital Strength:: CET1 ratio at 14.8%, with EUR 2.3 billion organic capital generation, exceeding 2027 strategic targets.
  • Dividend Payout:: Proposed 2025 dividend of EUR 1.37 billion (75% payout ratio), reflecting strong profitability and capital resilience.

Revenue Growth and Composition

The bank's revenue growth was driven by a strong performance in net commissions, which increased by 5% in 2025. The ratio of net commission income to total revenues rose from 37% to 38% in 2025, indicating a high-quality revenue stream. As Gianni Giacomo Pope noted, "Our focus on capital-light, high-quality Wealth Management products is proven by an increasing proportion of this versus total commissions."

Asset Quality and Capital Position

BPER's asset quality remains strong, with a gross NPE ratio decreasing to 2.4% from 2.7%. The net NPE ratio improved to 1.1%, one of the lowest in the Italian banking system. The bank's capital position is also robust, with a CET1 ratio of 14.8%, well ahead of the B:Dynamic | Full Value 2027 target. The bank's liquidity ratio remained high, with an LCR of 172% and an NSFR of 134%.

Valuation and Dividend Yield

Considering BPER's strong financial performance and capital position, its valuation metrics appear reasonable. The bank's Price-to-Tangible Book Value (P/TBV) is around 1.37, and the Dividend Yield is 5.54%. These metrics suggest that the bank's shares are attractively priced, given its strong profitability and capital generation capabilities.

Outlook and Expectations

BPER expects to continue its growth trajectory in 2026, with a 3% CAGR. The bank is confident in its ability to maintain a strong capital position, with a CET1 ratio above 14.5% after the integration of BPSO. Analysts estimate revenue growth at 2.7% for next year, indicating a stable outlook for the bank's financial performance.

3. NewsRoom

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BPER Banca Q4 profit beats by 32% as core revenue gains offset dividend miss

Feb -05

Source:

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3 European Dividend Stocks Yielding Up To 7.7%

Feb -03

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Top European Dividend Stocks To Consider In January 2026

Jan -05

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3 European Dividend Stocks With Up To 6% Yield

Dec -03

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BPER Banca SpA (BPXXY) Q3 2025 Earnings Call Highlights: Strong Profit Growth Amid Integration ...

Nov -06

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Oct -22

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Sep -11

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LVMH: Share transactions disclosure

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.18%)

6. Segments

Retail

Expected Growth: 1.2%

The 1.2% growth in Retail segment of BPER Banca SpA is driven by increasing demand for consumer credit, mortgage lending, and deposit growth. Additionally, the bank's strategic expansion into new regions, digitalization of services, and cost-cutting initiatives have contributed to the growth.

Corporate

Expected Growth: 1.1%

BPER Banca SpA's 1.1% corporate growth is driven by a strong focus on digital transformation, cost containment, and strategic investments in key business areas. The bank's solid capital position, improved asset quality, and robust risk management practices also contribute to its growth. Additionally, the Italian economy's moderate growth and increasing demand for credit also support the bank's expansion.

Finance

Expected Growth: 1.3%

BPER Banca SpA's 1.3% growth is driven by a strong focus on digital transformation, cost containment, and strategic investments in key business areas. The bank's solid capital position, robust risk management, and diversified revenue streams also contribute to its growth. Additionally, the Italian economy's gradual recovery and increasing demand for banking services support BPER Banca's expansion.

Large Corporate

Expected Growth: 1.1%

The 1.1% growth of Large Corporate segment in BPER Banca SpA is driven by a strong loan portfolio expansion, fueled by a favorable economic environment and increasing demand for credit from large Italian corporations. Additionally, the bank's strategic focus on relationship banking and tailored financial solutions has contributed to the growth.

Corporate Center

Expected Growth: 1.0%

BPER Banca SpA's Corporate Center growth is driven by strategic cost management, efficient capital allocation, and a focus on digital transformation. The 1.0 growth rate is supported by the bank's efforts to optimize its organizational structure, streamline operations, and invest in innovative technologies, enabling it to improve profitability and competitiveness in the Italian banking market.

Private

Expected Growth: 1.1%

BPER Banca SpA's 1.1% private segment growth is driven by increasing demand for digital banking services, strategic partnerships, and expansion into underserved markets. Additionally, the bank's focus on customer experience, cost optimization, and risk management has contributed to its growth. Furthermore, the Italian economy's moderate growth and low interest rates have also supported the segment's expansion.

Other

Expected Growth: 1.2%

BPER Banca SpA's 1.2% growth in 'Other' segment is driven by increasing demand for asset management services, expansion of bancassurance products, and growth in fees from payment services. Additionally, the bank's strategic partnerships and investments in digital platforms have contributed to the segment's growth.

7. Detailed Products

Retail Banking

BPER Banca SpA offers a range of retail banking services, including current accounts, savings accounts, credit cards, personal loans, and mortgages.

Corporate Banking

BPER Banca SpA provides corporate banking services, including cash management, trade finance, and lending solutions, to support businesses of all sizes.

Private Banking

BPER Banca SpA offers private banking services, including wealth management, investment advice, and portfolio management, to high net worth individuals.

Insurance Services

BPER Banca SpA offers a range of insurance products, including life insurance, non-life insurance, and pension plans, to individuals and businesses.

Investment Banking

BPER Banca SpA provides investment banking services, including M&A advisory, equity and debt capital markets, and restructuring, to corporate clients.

Asset Management

BPER Banca SpA offers asset management services, including mutual funds, pension funds, and discretionary portfolio management, to individual and institutional investors.

8. BPER Banca SpA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for BPER Banca SpA is moderate, as customers have alternative banking options available.

Bargaining Power Of Customers

The bargaining power of customers is low, as BPER Banca SpA has a large customer base and offers a wide range of financial services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as BPER Banca SpA relies on a network of suppliers for its operations, but has some flexibility in choosing its suppliers.

Threat Of New Entrants

The threat of new entrants is low, as the banking industry has high barriers to entry and requires significant capital and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry is high, as BPER Banca SpA operates in a highly competitive banking industry with many established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 63.51%
Debt Cost 11.01%
Equity Weight 36.49%
Equity Cost 11.01%
WACC 11.01%
Leverage 174.08%

11. Quality Control: BPER Banca SpA passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
FinecoBank

A-Score: 6.9/10

Value: 3.2

Growth: 7.7

Quality: 8.8

Yield: 6.9

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Banca Sondrio

A-Score: 6.7/10

Value: 4.9

Growth: 5.6

Quality: 6.2

Yield: 8.8

Momentum: 10.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
BPER Banca

A-Score: 6.4/10

Value: 4.7

Growth: 4.9

Quality: 5.7

Yield: 8.1

Momentum: 10.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Mediobanca

A-Score: 6.3/10

Value: 4.0

Growth: 5.1

Quality: 5.6

Yield: 9.4

Momentum: 8.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Unicaja Banco

A-Score: 6.1/10

Value: 4.6

Growth: 3.9

Quality: 4.8

Yield: 6.9

Momentum: 10.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Oberbank

A-Score: 5.2/10

Value: 3.9

Growth: 6.8

Quality: 5.1

Yield: 2.5

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.5$

Current Price

12.5$

Potential

-0.00%

Expected Cash-Flows