Results for the first half of 2016 approved by the BoD

THE BOARD OF DIRECTORS OF BANCA AKROS (BPM GROUP) APPROVED THE RESULTS FOR THE FIRST HALF OF 2016

 

• Net income from banking activities was €34.7 million (€34.4 million as at 30 June 2015); net profit amounted to €4.1 million (€6.7 million as at 30 June 2015). Common Equity Tier 1 ratio of 17.4%.
• Banca Akros consolidated its leading position in market making and in bond brokerage, ranking 2nd in the list of brokers active on behalf of third parties on Italian bond markets. It ranked in 4th position on the Electronic Stock Exchange (MTA) of the Borsa Italiana (Source: Assosim).
• The Bank participated in the placement of the Onorato Armatori and Salini Impregilo bonds as well as many issues in the Financial Institutions sector.
• Advisory activities included the launch of the “Multiseller NPL” programme, the first open multi-originator platform for the securitisation of bad loans, backed by mortgage guarantees, by Italian banks.
• In Private Banking, the assets under management amount to approximately €1.8 billion.

Milan, 28 July 2016 – The Board of Directors of Banca Akros – investment bank and private banking of the Banca Popolare di Milano Group, chaired by Graziano Tarantini and led by Chief Executive Officer Marco Turrina – approved the results as at 30 June 2016.

“In a market context featuring significant tensions, cumulating in the announcement of the referendum result in Great Britain in favour of Brexit, our development of operations and careful risk management ensured positive results were achieved in terms of profitability, and adequate levels of capitalisation and liquidity. During the half-year, we pursued the expansion of the customer base, including through the progressive internationalisation of commercial efforts, and offering products and services with innovative features,” commented Chief Executive Officer Marco Turrina.

During the period, the Bank achieved net income from banking activities of approximately €34.7 million (€34.4 million in the first half of 2015); net profit stood at approximately €4.1 million (€6.7 million in the first half of 2015).

As at 30 June 2016, the Common Equity Tier 1 ratio was 17.4%.

[…] trading in financial risk hedging and management instruments, including as part of the joint coverage with the Parent Company in Corporate & Investment banking, with special attention to the specific reference target represented by the Mid Corporate segment operating in the territory where the Group has its roots.

In brokerage on behalf of third parties (Source: Assosim), the Bank:

• Consolidated its presence in the bond markets, ranking 2nd in the list of brokers operating on behalf of third parties on Italian bond markets and, in particular, 3rd on the DomesticMOT segment and 2nd on the EuroMOT segment of the Borsa Italiana (with a market share of 15.4% and 21.3%, respectively). The Bank was also ranked 3rd on the EuroTLX market (with a market share of 17.7%) and 1st on the Hi-MTF market and on the ExtraMOT market (with a market share of 26.1% and 26.4%, respectively), also due to the contribution of SABE, the proprietary system for the automatic search for dynamic best execution.
• Ranked in 4th place on the Electronic Stock Exchange (MTA) of the Borsa Italiana (with a market share of 6.9%).
• Ranked 1st in options on the FTSE MIB index (with a market share of 12.2%).

The offer to customers of brokerage services on equity markets also relies on the activities of ESN – European Securities Network LLP, the European equity research and trading partnership set up by Banca Akros with seven other independent European investment banks active in their respective national markets.

In the Equity Capital Market business, Banca Akros acted as Financial Advisor and Placing Agent for Fiera Milano S.p.A. as part of the €70 million share capital increase, and as Coordinator of the takeover bid promoted on the Gruppo Green Power S.p.A. company.

In the Debt Capital Market, the Bank participated as Joint Lead Manager and Bookrunner in the placement of a fixed-rate bond issue by Onorato Armatori, expiring in 2023, for a total of €300 million, with institutional investors, and, as Co-Manager, in the placement of a fixed-rate bond issued by Salini Impregilo, expiring in 2021, for a total of €600 million. In the Financial Institutions sector, Banca Akros participated, as Joint-Lead Manager and Bookrunner, in the covered issue made by the Parent Company BPM for €750 million at 7 years in June. The Bank was also involved in more than fifteen issues by leading international issuers, including the European Investment Bank and Germany’s KFW. In the area of Public Subscription Offers, Banca Akros participated, as sole Co-Dealer, in the placement of two US dollar issues by the World Bank with the retail public.

Advisory activities included the launch of the “Multiseller NPL” programme, the first open multi-originator platform for the securitisation of bad loans, backed by mortgage guarantees, by Italian banks, promoted by Banca Akros, as Arranger, and by Prelios Credit Servicing, as Master and Special Servicer. The operation has so far been joined by six banks, including the Parent Company. The Credit advisory business also continued with the organisation of renewals of expiring operations. The Bank also concluded the syndication of a new loan transaction, with a 6-year maturity, secured by a special lien on the wine inventory.

In the Private Banking activities carried out at the Milan office and at the Rome and Turin branches, the Bank confirmed its focus on high net worth customers by offering personalised asset management services – in an “open architecture” context – and administration and order collection services featuring high capacity for execution on domestic and international markets. Total assets under administration amounted to approximately €1.8 billion at the end of the first half of the year.