Bper and Pop. Sondrio fare well in their first quarter, with acquisitions rewarding both.

(Il Sole 24 Ore Radiocor) - Good news from Banca Pop Er 's quarterly results, the first to include Banca Pop Sondr 's contribution, and the shares are well-bought. The merger, approved by the boards of directors, will be completed by April.

Intermonte analysts said, " Results were significantly higher than expected , with strong trends in net interest income, driven by volumes, and commissions, with strong performance in Wealth Management and Banking Services (both at Bper and Pop. Sondrio)." Analysts also noted that the cost of risk was lower than expected (27 basis points), without resorting to additional provisions. The CET1 ratio was 56 basis points higher than expected ("an excellent level"), thanks to a lower-than-expected interim dividend (€0.1 versus €0.3) and the lesser impact of consolidation. Bper has a buy rating, with a target price of €10.36.

Equita analysts (buy with a target price of €11.50) also beat expectations with the numbers, with the main positive surprises coming from commissions and operating costs . At the individual level, both BPER and Popolare Sondrio, according to Equita, reported a better-than-expected quarter. At the combined entity level, revenues exceeded expectations by 3%, mainly thanks to higher commissions and other operating income. Specifically, commissions totaled €646 million, 5% higher than the estimated €614 million. Operating costs performed better than expected, with costs 4% lower than expected (+2%). Equita's loan loss provisions were slightly better than expected, with a cost of risk of 28 basis points compared to the estimated 29. Asset quality remains solid, with a non-performing loan ratio of 2.3%. In terms of capital, post-integration and pre-merger, the CET1 ratio stood at 15.1% (from 16.2% for Bper standalone in the second quarter), "higher than our expectation of 14.5%-15%," say analysts, who also recall that an exchange ratio of 1.45 Bper shares (not subject to adjustments or cash payments) was communicated for minority shareholders of Popolare Sondrio who had not accepted the offer, in line with the offer ratio.