Banking on the Stock Exchange: S&P’s Rating Boost for Banco BPM and JPMorgan’s Progress in BPER.

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Awaiting Italian Banks Quarterly Reports

As the quarterly reports from Italian banks are set to be published next week, the excitement surrounding the earnings season is palpable.
Several noteworthy news and rumors are emerging, especially concerning key players in the sector.

The stocks to watch closely include Banco BPM and BPER, particularly as the Ftse MIB index in Piazza Affari showcases a modest increase of less than half a percentage point.

Banco BPM: Rating Upgrade by S&P

Banco BPM has seen a rise of nearly 1 percent, reaching approximately 6.138 euros, following a significant rating upgrade from S&P Global.
On October 24, 2024, the bank, led by CEO Giuseppe Castagna, announced that S&P has upgraded its credit rating, specifically the Issuer Credit Rating (ICR) for long and short term to BBB/A-2 (from BBB-/A-3), and the senior unsecured rating to BBB (from BBB-), maintaining a stable outlook.

This upgrade reflects the strengthened Additional Loss-Absorbing Capacity of Banco BPM, attributed to the successful issuance of senior non-preferred and Tier 2 instruments that have established robust buffers within the bank’s capital and liability structure.

S&P also highlighted Banco BPM’s strong presence in the affluent Northern Italy regions and its diversified business model, which are anticipated to bolster the bank’s business stability in the coming years.
The rating update allows the bank to consolidate its position in the investment-grade category, recognized for its financial profile enhancements noted by other rating agencies, particularly concerning profitability, asset quality, and capitalization.

BPER: JPMorgan Increases Stake

Attention also shifts to BPER, with recent disclosures from Consob revealing that the American giant JPMorgan has further increased its stake in the Emiliana bank.
This increase pushes JPMorgan’s potential shareholding to 6.195%, up from 5.965% previously reported.

Specifically, JPMorgan’s indirect stake in BPER consists of 6.195%, held via its subsidiaries JPMorgan Securities PLC, JPMorgan Securities LLC, and JPMorgan SE.
This incorporates 5.570% in voting rights associated with shares, 0.033% in perpetual convertible bonds, along with various cash-settled positions through options and equity swaps expiring between various dates in 2024 and 2029.

This upward trend in JPMorgan’s stake reflects a positive sentiment around BPER, especially following the recent industrial plan presented by CEO Gianni Franco Papa, promising significant dividend increases for shareholders.
Notably, BPER’s stock has surged by 8% in the past month, contributing to an impressive YTD rally of over +84%.

In the past year, BPER’s stock has jumped by over +91%, and in comparison, the quotes have soared nearly 172% over the last three years.

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