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Banco Popolare, BPM See $1.2 Billion 2019 Profit in Merger

  • Lender to eliminate jobs in plan to save 320 million euros
  • Bank setting up special unit to deal with soured loans
Updated on

Banco Popolare SC and Banca Popolare di Milano Scarl, the two Italian banks merging to create the country’s third-biggest lender, plan to cut jobs and costs as they target 1.1 billion euros ($1.2 billion) in profit for 2019.

The net income estimate excludes some one-time items and compares with 600 million euros in 2015, the banks said in a joint statement on Monday. They will seek to achieve a return on tangible equity of 9 percent by 2019, up from 5.5 percent last year, as well as a dividend payout of 40 percent, the companies said.