Finance
Italy's BPER beats profit forecast with Pop Sondrio merger contribution
Published by Global Banking and Finance Review
Posted on November 6, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 6, 2025
2 min readLast updated: January 21, 2026
BPER Banca's third-quarter profits exceeded expectations, driven by its merger with Banca Popolare di Sondrio, enhancing its market position.
MILAN (Reuters) -Italian lender BPER Banca beat expectations in the third quarter as it began to benefit from its acquisition of regional rival Banca Popolare di Sondrio.
In July, BPER completed a 5.4 billion euro cash-and-share deal for the Sondrio-based peer, a move aimed at strengthening its position amid a wave of consolidation in Italy's banking sector.
On Wednesday, both banks approved the merger plan, which will go to a shareholder vote. Completion is expected by mid-April 2026.
The merger is projected to generate 290 million euros in annual savings from 2027. BPER CEO Gianni Franco Papa said the combined group would present its strategy to investors in late June or July 2026.
For now, BPER expects 2025 revenues to reach 6.4 billion euro ($7.5 billion).
Integration costs are estimated at 400 million euros, with 75% to be booked this year and the remainder in 2026.
BPER posted a net profit of 575 million euro for the third quarter, beating a 483 million euro analyst consensus compiled by Reuters.
The results included a full quarter's contribution from Popolare di Sondrio and were boosted by higher fee income and lower costs.
Unipol, a major shareholder in both banks before the merger, remains the leading investor in the combined group, distributing its insurance products through them.
Amid a flurry of M&A activity in the sector, BPER last month entered derivative contracts giving it the right to buy back up to 9.99% of its own shares.
While the Italian press has speculated the move is defensive — especially after UniCredit failed to acquire Banco BPM — Papa downplayed that view: "The market reads this as it will."
The derivative transaction can also be used for a share buyback but Papa said that no decision had been taken yet on whether or when to proceed with that.($1 = 0.8575 euros)
(Reporting by Gianluca Semeraro and Andrea Mandala; Editing by Giulia Segreti and Valentina Za)
A merger is a business combination where two companies join to form a single entity, often to enhance competitiveness, expand market reach, or achieve cost efficiencies.
Net profit is the amount of money a company earns after all expenses, taxes, and costs have been deducted from total revenue. It is a key indicator of a company's profitability.
Integration costs refer to the expenses incurred when combining two companies, including systems, processes, and personnel adjustments necessary to operate as a single entity.
Fee income is revenue generated from services provided by a bank or financial institution, such as account maintenance fees, transaction fees, and advisory services.
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