Banco BPM SpA reported second-quarter net profit of €442.6 million, a year-over-year increase from €129.3 million in the same period in 2018, though the Italian lender noted that the 2019 figures are not fully comparable to the 2018 ones due to the first-time adoption of IFRS 16 accounting standards.

Net interest income declined year over year to €514.8 million from €585.0 million, and net fee and commission income fell to €453.7 million from €457.3 million a year earlier. The net financial result for the quarter amounted to €10.7 million, compared with the year-ago €73.9 million.

Profit on the disposal of equity and other investments totaled €336.6 million in the period, against a loss of €1.10 billion a year earlier.

The Italian lender booked net adjustment on loans to customers of €197.7 million, down from the year-ago €360.2 million. Net provisions for risks and charges totaled €10.1 million in the period, compared with €20.7 million in the same period in 2018.

Operating costs stood at €675.0 million, down from €689.2 million in the year-ago period.

For the first half, Banco BPM's net income rose 68.2% year over year to €593.1 million from €352.6 million.

As of the end of June, the bank's nonperforming loan ratio stood at 41.9%, down from 43.1% as of the end of 2018. It reported net write-downs on loans in the first half of €350 million, down year over year from €686 million a year earlier.

The bank's common equity Tier 1 ratio was 13.7% at the end of June, compared to 12.7% at the end of March. Pro forma for the disposal of a portfolio of bad leasing loans with a nominal amount of roughly €600 million and IFRS 9 accounting standards, the phased-in and fully loaded CET1 ratios were 13.8% and 12%, respectively, at June-end.