Banco BPM SpA Q1 2023 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 : So the first one is on guidance. So the increase in net profit guidance for 2023 is very clear, the contribution from NII, but I was wondering whether you also viewed the guidance on other core lines such as fee cost and cost of risk? Or shall we still assume flat fees cost of 3% and cost of risk about 50 bps? And then I have another question on deposits. So could you give us some color on the competitive landscape on deposits that you are seeing and that you are expecting for the future and also the dynamics you see in the market when it comes to deposit outflows IT Govies, Assets under management, bank bond or a repayment of loans? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2023 / 4:00PM, BAMI.MI - Q1 2023 Banco BPM SpA Earnings Call

Question: Domenico Santoro - HSBC, Research Division - Analyst : This is Domenico with HSBC. Two questions. First of all, can you tell us what's the level of NII implied in your guidance for... (technical difficulty)

Question: Delphine Lee - JPMorgan Chase & Co, Research Division - Analyst : I just want to come back to net interest income. Just trying to understand your guidance for 2024, which is going to be slightly better than 2023. But on the other hand, you seem to be losing 100 basis points in rate. So I'm just trying to understand where the improvement is coming from? And also what is the deposit beta assumption you have for 2024 compared to the average 33% you have in '23? The other question is in terms of sensitivity, if you could give us a sensitivity to 1 percentage point increase in deposit beta, how much that is in NII million?

Question: Delphine Lee - JPMorgan Chase & Co, Research Division - Analyst : Great. So basically, your -- the rates are slightly higher in '24. The deposit beta is higher. So how do you manage to grow your NII just to understand this? Is that volume? Is that -- or your assets rate are improving? Or anything on your investment portfolio?