After posting a strong first quarter result, Italian retail banking company Banco BPM is looking to fast-track disposal of bad loan ahead of finalising a merger deal.
The lender has been scouting for a partner since its rival Intesa Sanpaolo wrapped up the acquisition of local rival UBI Banca in July 2020.
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The banking group, which succeeded in reducing the bad loan in recent past, may further sell bad loans worth €1.5bn by end of June 2021, Reuters has reported.
Previously, the bank was looking to sell non-performing loans of €0.9bn but the target has now been increased to €1.65bn.
Banco BPM has been exploring merger options with BPER, UniCredit and Credit Agricole, but is yet to finalise a deal.
Banco BPM has reported a net income of €100.1m for the first as against €151.6m in the year ago quarter.
Core operating income, which includes net interest income and commissions, totalled €968m, an increase of 5.9% compared to last year.
Net interest income rose to €496.8m from €474.1m in the first quarter of 2020.
Net fee and commission income in the quarter increased to €471.4m from €440.6m a year ago.
In September last year, the Italian government approached Banco BPM and UniCredit for acquiring the troubled lender Banca Monte dei Paschi di Siena (BMPS). However, it disregarded the takeover of the bailed-out bank.
