Trade the BPER share!
BPER

Analysis before buying or selling BPER shares

Trade the BPER share!
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From a trading platform or your bank, you can now trade on the BPER Group share price. But before you embark on such an undertaking, we advise you to take note of the extensive information that we will reveal in this article and that will help you to implement an effective strategy. In particular, you will find global stock market data about this stock, as well as information about its parent company with its main activities, its competitors and its partners.

Elements to consider before selling or buying BPER shares

Analysis N°1

The strategies implemented by the group to improve its results in the coming years will also be carefully analyzed. The objectives set each year by BPER will thus have to be compared with the actual results achieved by the group during the year.

Analysis N°2

We will keep a close eye on the takeovers of banking companies in difficulty, which are often opportunities to develop in new segments and attract new customers.

Analysis N°3

The new BPER group could also sign global agreements and set up international partnerships in order to develop its activities in Italy. It goes without saying that this news will have a real impact on the share price.

Analysis N°4

In the same way, we will also follow the operations of divestiture of certain BPER branches considered to be unprofitable, especially in the insurance sector which leaves something to be desired for the moment.

Analysis N°5

The level of the Italian economy remains relatively unfavourable due to the tensions still present on the sovereign debt market, which is leading to a weakness in bank lending. The evolution of the country's financial and economic situation will therefore have to be followed with the utmost attention. In the same way, the regulation of the problems of crisis of the euro zone will also be to take into account at the time of your analyses.

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General presentation of BPER

The BPER group is an Italian banking group that is one of the country's leading banks. Also known under its former name of Banco Popolare, this banking group carries out various activities that can be grouped into different categories with 5 main business lines which are classified according to the share of turnover they generate.

  • Firstly, the most important activity of the BPER group concerns investment banking, since this division alone accounts for almost 39.6% of the company's net banking income.
  • Not far behind are the retail banking activities, which generate around 38.3% of net banking income.
  • Corporate and investment banking came next with 18.8% of net banking income.
  • In fourth place, we find private banking activities with only 0.5% of net banking income.
  • Finally, the remaining 2.8% of net banking income was generated by the group's other activities.

From a financial point of view, the BPER group currently holds approximately 38.9 billion euros in deposits and 45.5 billion euros in loans.

Analysis before buying or selling BPER shares
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The major competitors of BPER

We now suggest that you increase your knowledge about BPER shares by finding out who the main competitors of this Italian bank are. Here are the biggest banks in this sector today:

Unicredit

This Italian banking group, founded in 1998, is currently one of the leaders in the Italian banking sector and also one of the largest market capitalisations in the euro zone in this sector of activity. The group has indeed grown following the acquisition of HypoVereinsbank in 2005. It now operates more than 8,954 branches and employs 148,000

Intesa Sanpaolo 

This other Italian bank is also one of the largest in the country. It has over 12 million customers and also has a strong presence in Central and Eastern Europe.

Cassa depositi e Prestiti

This public body is also in competition with BPER. More than 80% of it is controlled by the Ministry of Economy and 18.4% by banking foundations.

Banco BPM 

This Italian banking group was born from the 2017 merger of Banco Popolare and Banca Popolare di Milano. Its headquarters are now located in Milan but also in Verona.

Banca Monte dei Paschi di Siena

Also known as MPS, this Italian bank is the oldest in the world still in operation since it was founded in 1472 as a pawnshop. It is of course a direct competitor of BPER today and on the Italian market.

UBI Banca

Finally, the last major competitor of BPER is the UBI Banca group. This Italian bank was created in 2007 by the merger of Banche Popolari Unite and Banca Lombarda e Piemontese. Its headquarters are now in Lombardy.

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Positive factors for BPER shares
The factors in favour of a rise in the BPER share price:

The BPER group now has the combined strengths of the Banco Popolare and BPM banking groups, making it a major player on the stock market. Investors considering taking a long position on this stock with a medium or long-term strategy must therefore first understand what these strengths are and what weaknesses may impact the share price downwards. But first, let's review the strengths of the BPER group, which are detailed below.

  • First of all, it should be noted that the BPER group enjoys a prominent position on the Italian market thanks to the merger of the two entities that created it. In terms of assets, the BPER group is currently the third largest banking group in Italy.
  • By combining the strengths of these two companies, BPER can now count on an impressive workforce. The group currently employs over 26,000 people, mainly in Italy. These employees also benefit from a solid and continuous training program that enables them to meet the needs of their customers.
  • The two banks that formed this banking group also performed well in the face of the economic and financial crisis that hit the euro zone a few years ago. In fact, Banco Popolare was one of the first banks in the country to receive state aid on that occasion.
  • The BPER banking group also has a strong advantage in terms of its activities, which are essentially focused on the retail segment. The popular awareness of the group in Italy is interesting on this point with, in particular, a high quality customer service and a strong visibility of the brand among the country's customers. The number of custodians in this business was retained on both sides and therefore added up with little loss of customers as a result of this large-scale merger operation.
  • Of course, the BPER bank is also well positioned in the online banking segment with the possibility for customers to carry out numerous operations from an interface on the website that has been set up and which allows several million customers to carry out their current operations without having to go to a branch.
Negative factors for BPER shares
The factors in favour of a drop in the BPER share price:

Of course, while it is important to know the advantages of BPER stock as well as the strengths of this company in the banking sector, it also has some weak points that you should also consider before taking any position in this stock. So now we are going to review the weak points of BPER banking group.

  • First of all, and if the two companies which currently constitute the BPER group were able to bring their employees together in order to create a large workforce, it should be remembered that the former Banco Popolare suffered greatly from a very high attrition rate which is still seen today with the BPER group. Thus, many expert employees leave the company even if this leakage has been slightly reduced since the merger.
  • Of course, it is also regrettable that the BPER group's activities are once again concentrated on Italian territory alone. Compared to other banking groups in the country such as Unicredit or Santander, BPER is unable to position itself effectively in other countries, either in Europe or internationally. Exposure to the risk of a financial crisis in Italy therefore remains high, with little room for escape. Indeed, specialists and analysts in this sector fear the effects of a future Italian economic crisis on this type of bank, which is too focused on domestic activities.

As you can see from the above, the pros and cons of this stock and the strengths and weaknesses of this banking group are numerous and therefore you should pay close attention to them before taking a position on this BPER stock.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

How to follow the BPER share price?

The BPER share price can be followed on any website specializing in the stock market, but we recommend that you choose the most innovative and successful charts, which will help you to see more clearly and to carry out your technical analyses. Indeed, the charts offered by online trading platforms in particular, will allow you to customize the display of the share price and the various technical indicators of this value.

What are the financial data to be monitored for the BPER action?

In order to carry out your analysis of the BPER share and to anticipate the future variations of this stock, you must in particular carry out a financial study of this group. Since BPER operates in the banking sector, the information to be followed and analysed in priority concerns in particular the amount of outstanding loans and outstanding deposits. You should also keep an eye on the group's turnover and net income each year.

Can you trade BPER stock without buying it?

Buying stocks is no longer the only way to invest in the stock market. In fact, you can also speculate on the price of certain shares such as the BPER share by using contracts for difference or CFDs which are offered by online trading platforms and specialized brokers. This means that you can speculate on the rise or fall of a stock without actually having to buy it.

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