Banco BPM may lift 2024 EPS forecast after first-quarter profit beat

MILAN (Reuters) -Banco BPM said on Tuesday it may raise its earnings per share guidance for the year after posting a higher than expected first-quarter net profit.

Italy's third-largest bank reported a net profit of 370.2 million euros ($398.8 million) for the January-March period, up 40% on a annual basis, as rising revenues and falling loan-loss provisions more than offset an increase in costs.

This compared with an analyst consensus estimate of 352 million euros, LSEG data shows.

Banco BPM, whose leading shareholder and main commercial partner is French bank Credit Agricole, confirmed its profit and shareholder remuneration outlook for this year.

However, it added that the robust quarterly results created scope for a potential improvement in its 90 euro cent per share 2024 earnings guidance.

"The current numbers shows us that it's possible to change the guidance, and the outlook is very positive, but let's wait," Banco BPM CEO Giuseppe Castagna told analysts in a post-results conference call.

He added that the guidance could be updated with the half-year results.

Banco BPM said its income from lending grew by 16.3% year-on-year as deposit costs in Italy continue to lag lending rates, although it was virtually flat quarter-on-quarter.

Revenues totalled 1.4 billion euros, helped also by net fees rebounding 11.7% from the last quarter.

Core capital, a key measure of a bank's financial strength, rose to 14.7% of risk-weighted assets, from 14.2% at the end of last year.

Under a strategic plan unveiled in December, the bank plans to return 4 billion euros to investors by 2026.

($1 = 0.9282 euros)

(Reporting by Andrea Mandalà; Editing Gianluca Semeraro, Tomasz Janowski and Alexander Smith)