Banco BPM SpA Q1 2022 Earnings Call Transcript

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

Question: Noemi Peruch - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : The first one is on Govies. So you bought EUR 4 billion of Govies in the quarter, that compares to EUR 9 billion of disposals in the last 6 months of 2021. Do you plan to replenish your portfolio in the coming quarters? And can you give us an update of the common equity sensitivity to 100 bps of higher sovereign yields? And I have a follow-up on cost of risk. So given the change in the macro environment, do you expect to update your IFRS 9 assumption in Q2? And did I understand it correctly that if so, you would not offset it by releasing some COVID overlays?

Question: Noemi Peruch - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : So I am referring to the IFRS 9 macro assumption on the entire portfolio given the macro environment and GDP downgrades that we are currently seeing.

Question: Luigi Pedone - Equita SIM S.p.A., Research Division - Analyst : 2 questions from my side. The first one is on inflation. I was wondering which is the effect of the rising inflation on your cost base? And the second one is regarding the NII and the sensitivity because BAMI is one of the banks with the highest sensitivity on NII from an increase in rates. But which is your expectation regarding lending volumes, commissions and cost of risk from such a sharp increase of rates?

Question: Hugo Moniz Marques Da Cruz - Keefe, Bruyette & Woods Limited, Research Division - Analyst : Sorry to insist on the M&A and the bancassurance. But just 2 questions there. On the bancassurance, do you have a deadline to finalize your review? Is it going to be just beginning of next year when you can exercise the remaining call options? Or will you give clarity to the market before them? And then I noticed that there has been some press speculation around the potential sale of the merchant acquiring business? If you could comment on that, it would be great.