BPER Banca SpA said it is considering carrying out an "extraordinary intervention on provisioning" amounting to €1 billion at the beginning of 2018 to further boost its coverage of doubtful loans and facilitate an immediate reduction in its net nonperforming exposures ratio, as it reported second-quarter net profit pertaining to the parent company of €104.5 million, up from €33.8 million a year earlier.
Net interest income dropped year over year to €282.0 million from €293.6 million. Net commission income rose to €181.9 million from €181.0 million in the second quarter of 2016.
Net impairment adjustments to loans rose to €189.7 million from €161.9 million a year ago, while net provision for risks and charges dropped year over year to €5.9 million from €12.5 million.
BPER reported first-half profit pertaining to the parent company of €119.1 million, up from €64.7 million in the same period in 2016. The bank said the result was boosted by significant nonrecurring items, including badwill of €130.7 million generated by the acquisition of Nuova Cassa di Risparmio di Ferrara SpA.
The bank's fully phased common equity Tier 1 ratio stood at 13.17% as of June 30, compared to 13.11% at the end of March and 13.27% as of Dec. 31, 2016. The fully phased-in leverage ratio was 6.1% at June-end, compared with 6.5% at 2016-end.
BPER said its board decided to postpone approval of its new business plan to the beginning of 2018.