Full Year 2019 Banco Bpm SpA Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Domenico Santoro - HSBC, Research Division - Analyst : Can you please give us a bit of sense quantitative, of course, of all the regulatory headwinds that you expect from now and just to understand a little bit the evolution of the capital from here, please.

Question: Domenico Santoro - HSBC, Research Division - Analyst : All right. Sorry, can I just ask a follow-up question because the capital is, of course, is important? I know that you don't want to tell anything now. And of course, we will know more in the March presentation, but just to understand a little bit more, I mean, as the colleague was mentioning before, there is a big chunk of equity, which are, at the moment, deducted from capital. There is, of course, other probability levers. So apart from all the points that you mentioned before about the plan, is there any action specifically here that we should expect in order to change or improve even more the quality of the balance sheet. My understanding is that you don't want to change the size of the sovereign portfolio, which is, of course, something that is under observation from the market because it's NII-productive. Also in the NPE area, you want to be cautious because UTP is different from nonperforming. But I mean, qualitatively, what are the action that we should expect in order to improve even more the quality of the balance sheet at this point?

Question: Domenico Santoro - HSBC, Research Division - Analyst : Can I ask also about the increase in the gross non-performing in the quarter, please, the reason behind that?

Question: Domenico Santoro - HSBC, Research Division - Analyst : Yes, correct. This is just my last... without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. FEBRUARY 06, 2020 / 5:30PM, BAMI.MI - Full Year 2019 Banco Bpm SpA Earnings Call

Question: Fabrizio Bernardi - Fidentiis Equities S.V.S.A., Research Division - Analyst : I was wondering what's inside the EUR 63 million of provision for risk and charges of the fourth quarter. I think I read that is something one-off related to customer relationship. Is it related anyhow with the diamond's issue, please?

Question: Fabrizio Bernardi - Fidentiis Equities S.V.S.A., Research Division - Analyst : Sorry, one more thing if I can. Have you changed your overall idea about the role that the regulator may play during an M&A deal? I remember you had very tough words about the SSM or the EBA about what they did during the Popolare Milano, Banca Popolare merger deal.

Question: Noemi Peruch - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : I have a couple. So can you please disclose the yield attached to the real estate assets, subject to the reclassification in Q4? And have you repriced fees on current accounts for 2020? And if so, what impact do you expect from it in next year? Have you already discussed with the supervisor the potential application of kind of provisioning on the NPE stock for 2020? And just a minor clarification on capital, with market risk, AMA risk and credit risk, are you referring to Basel IV or something else?

Question: Noemi Peruch - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : Sure. Have you repriced fees on current accounts for 2020? And if so, what do you expect the impact would be in 2020? And also, the risk you mentioned related to market risk, credit risk and operational, is it Basel IV or something else? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. FEBRUARY 06, 2020 / 5:30PM, BAMI.MI - Full Year 2019 Banco Bpm SpA Earnings Call

Question: Hugo Moniz Marques Da Cruz - Keefe, Bruyette & Woods Limited, Research Division - Analyst : I just wanted to ask, and sorry, if it was asked before, about the tiering benefit. What will be the incremental benefit in 2020 compared to the level of Q4 '19?

Question: Hugo Moniz Marques Da Cruz - Keefe, Bruyette & Woods Limited, Research Division - Analyst : But is that incremental to -- some that was already booked in Q4? So is that incremental to the level of Q4?