March 3, 2020 / 10:33 AM / a month ago

BRIEF-Banco BPM Issues 2020-2023 Business Plan

March 3 (Reuters) - Banco BPM SpA:

* ISSUES 2020-2023 BUSINESS PLAN

* SEES CORE REVENUE 2023 EUR 4.1 BILLION

* TARGETS NET PROFIT OF ABOUT EUR 770 MILLION IN 2023 WITH TARGET ROTE OF 7.2%

* €800+ M DIVIDENDS DISTRIBUTED OVER 2020-2023, WITH AVERAGE PAYOUT ≥ 40%

* PLAN TARGETS CONFIRM EVEN UNDER NEGATIVE SCENARIO IN 2020

* TARGETS GROSS NPE RATIO OF 5.9% IN 2023

* LIQUIDITY COVERAGE RATIO >160%

* OVER EUR 600 MILLION INVESTMENTS IN TECHNOLOGICAL EVOLUTION PLANNED FOR 2020-2023, OF WHICH €250 MILLION IN DIGITAL INNOVATION

* TO REDUCE ITALIAN GOVERNMENT BOND HOLDINGS TO AROUND 40% OF OVERALL FINANCIAL PORTFOLIO UNDER NEW PLAN

* TO SELL AROUND 1 BILLION EUROS IN REAL ESTATE ASSETS UNDER NEW PLAN, EXPECTS 20 BPS IMPACT ON CET1 RATIO

* STRATEGIC RECRUITING PROGRAM FAVORED BY A VOLUNTARY RETIREMENT SCHEME EXITS INVOLVING ABOUT 1.100 EMPLOYEES

* TARGETS SALES OF EQUITY STAKES UNDER NEW PLAN, SEES CET1 IMPACT OF AROUND 40 BPS

* TARGETS UNDER PLAN REDUCTION OF CURRENT FOOTPRINT BY 200 BRANCHES

* SEES 15-20 BPS ANNUAL CET1 BOOST FROM SIGNIFICANT TRANSACTIONS AIMED AT REDUCING CREDIT RISK WITHOUT IMPACTING CLIENT RELATIONSHIPS

* TO REDUCE TLTRO FUNDS OVER PLAN PERIOD TO 14 BILLION EUROS AT MOST FROM 24 BILLION EUROS IN JUNE 2019

* 2023 CET1 TARGET FACTORS IN AROUND 200 BPS OF CUMULATED NEGATIVE REGULATORY EFFECTS Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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