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Bloomberg
Bankers based in Italy are meeting in the northern town of Parma at the Assiom Forex conference as the banking industry looks at possible consolidation amid rising profits and a resurgent economy after the pandemic.
Italian lenders have cleaned up their books, curbed risks and reduced costs in last few years. Now, they are set to benefit from a rebound in economic output, rising interest rates and over $227 billion worth of EU Recovery Fund cash coming into the country in the next few years.
On the sidelines of the event, executives discussed the economy and the outlook for business, with the potential for mergers and acquisitions high on the agenda. Growing in scale is seen as one of the key ways to further strengthen the sector and produce synergies.
Banco BPM rose to the highest in more than four years on Friday amid speculation that UniCredit SpA may be eyeing its smaller rival. Responding to a report in newspaper Il Messaggero that a takeover offer may be imminent, UniCredit said it continues to evaluate all available strategic options.
Banco BPM Chief Executive Officer Giuseppe Castagna says he hasn’t received any communication from UniCredit in response to press reports that the lender is considering a bid on Banco BPM.
“Interest from third parties is not surprising given our situation, our results and our ability to look to the future,†he said on the sidelines of the event.
Castagna said Banco BPM’s stock is worth more than its current valuation. The bank is moving away from restructuring and “we are happy about how it’s going,†he said. Castagna also said the bank has a “very important†standalone growth path.