Banca Popolare di Milano

Banca Popolare di Milano S.p.A.

Company type	Subsidiary
Industry	Financial services
Founded	January 1, 1865 (1865-01-01) in Milan, Italy
Founder	Luigi Luzzatti
Headquarters	Milan , Italy
Area served	Italy
Products	Banking, financial services
Owner	Banco BPM
Parent	Banco BPM

Banca Popolare di Milano S.p.A. (commonly referred to as BPM or Bipiemme) is an Italian financial institution based in Milan, Lombardy, and operates as a fully owned subsidiary of Banco BPM. Established in 1865 originally as Banca Popolare di Milano S.c. a r.l., a cooperative bank serving urban areas, BPM underwent significant reorganization during the creation of Banco BPM. On 1 January 2017, its original branch network and selected operations were transferred to a newly formed legal entity, Banca Popolare di Milano S.p.A., which had previously operated as Banca Popolare di Mantova.

Before the merger, BPM was listed on the Borsa Italiana stock exchange; following the consolidation, only Banco BPM retained a public listing.

As of 31 December 2016, BPM maintained a network of 656 branches, including centers dedicated to private and corporate banking. Approximately 61% of these branches (390 locations) were situated in Lombardy. The bank also had a presence in other regions such as Emilia-Romagna (28 branches), Lazio (65), Piedmont (87), Apulia (36), Liguria (11), Veneto (7), Tuscany (5), with smaller operations in Campania, Marche, Molise, Abruzzo, and Friuli–Venezia Giulia.

After the merger process concluded, by the end of 2017, Banca Popolare di Milano—excluding its subsidiary Banca Akros—managed 604 branches.

History

Founded in 1865 in Milan, BPM was Italy’s second cooperative bank after Banca Popolare di Lodi. Its founder, Luigi Luzzatti, who later served as Prime Minister, drew inspiration from the 'credit associations' pioneered by Hermann Schulze-Delitzsch in Germany.

From the 1950s onward, BPM expanded its reach by acquiring stakes in various banks such as Banca Popolare di Roma, Banca Briantea, Banca Agricola Milanese, Banca Popolare Cooperativa Vogherese, Banca Popolare di Bologna e Ferrara, Banca Popolare di Apricena, INA Banca, Cassa di Risparmio di Alessandria, Banca di Legnano, and Banca Popolare di Mantova.

In 1999, BPM introduced its digital banking service under the name WeBank. The bank also held minority interests in Cassa di Risparmio di Asti and Crediop.

On 25 February 2010, BPM acquired a 30% shareholding in Factorit spa from Banco Popolare for €51 million. Factorit focuses on factoring services and trade receivables management and is predominantly owned by Banca Popolare di Sondrio with a 60.5% stake.

On 23 March 2010, BPM’s board approved divesting its custodian bank business to BNP Paribas, resulting in an approximate capital gain of €50 million.

During the Greek financial crisis period, on 11 May 2010 BPM reported its exposure to securities from "PIGS countries" remained below €22 million.

On 18 June 2010, authorization was granted by the Bank of Italy for BPM to reacquire a 51% interest in Bipiemme Vita from Milano Assicurazioni for €113 million.

Following regulatory approval from the Bank of Italy in November 2009, BPM launched ProFamily on 25 June 2010—a consumer credit company aimed at expanding retail lending services.

On 20 July 2010, BPM entered into a partnership with Monte dei Paschi di Siena and Clessidra Sgr to merge Anima Sgr with Prima Sgr. This joint venture resulted in the establishment of the independent asset management company Anima Holding.

As a subsidiary of Banco BPM

The extraordinary shareholders’ meetings of both Banca Popolare di Milano (BPM) and Banco Popolare approved their merger on 15 October 2016. To facilitate this transaction, BPM’s business was transferred into its subsidiary Banca Popolare di Mantova, which was subsequently renamed Banca Popolare di Milano S.p.A., now functioning as a subsidiary under the umbrella of Banco BPM.

Shareholders of Banco BPM consisted of former investors from Banco Popolare and BPM at an intended ratio of approximately 54.626% to 45.374%. Following Banco Popolare’s capital increase mid-2016, the finalized exchange rates were fixed at one Banco Popolare share equating to one Banco BPM share and six-point-three-eight-six Banca Popolare di Milano shares converting into one Banco BPM share.

BPM extended an offer to buy back shares from shareholders who dissented or were absent at €0.4918 per share. Ultimately, it repurchased a total of 178,936,966 shares—valued at around €88 million—representing approximately 4.07% of its total outstanding shares.