By Andrea Mandala

MILAN, May 6 (Reuters) - Italy's Banco BPM said on Thursday it would accelerate its bad loans clean as it prepares for a merger deal, after higher-than-forecast revenues drove its quarter profit above analyst expectations. Italy's third-largest bank has been actively looking for a merger partner after rival UBI was snapped up by Intesa Sanpaolo's last year. Banco BPM, which has reduced the amount of defaulted debt on its balance sheet, said it would further sell bad loans worth 1.5 billion euros ($1.8 billion) by June. (Image: https://www.arte.go.it/wordpress/wp-content/uploads/2021/04/riapertura-al-pubblico-della-reggia-di-caserta_01-570x380.jpg) The sale is part of a new target for disposal of non-performing loans of 1.65 billion euros, up from 0.9 billion euro previously planned.

With the sale, Banco BPM aims to reduce its gross non fungible token-performing exposure (NPE) ratio, a measure of bad loans as a proportion of total lending, to 6.3% from 7.5%.

Banco BPM is studying to better understand what the best option for a merger would be, and has held talks with Italy's fifth-biggest bank BPER Banca, people close to the matter have previously said.

The lender is also considered a possible target for nft art UniCredit thanks to its roots in the industrial Lombardy region.

Italy is considering extending to mid-2022 tax breaks that are expected to spur on mergers in the fragmented banking sector, while boosting incentives for any tie-ups, a draft decree showed.

Banco BPM CEO Giuseppe Castagna told analysts he would be “happy” for the government measure, wiki.proredbi.rec.uba.ar if confirmed, www.Nftdrop.one as it would give the bank more time “to find a good merger deal.” In the first quarter, strong trading gains, rebounding fees and a rise in net interest income drove total revenues up 28.6% on a yearly basis.

Net profit came to 100 million euros, above the 85 million euros forecast in a Reuters' analyst poll. (Image: https://www.arte.go.it/wordpress/wp-content/uploads/2021/04/archeo3ditalia-videopiattaforma-dedicata-ai-siti-archeologici-italiani-iscritti-nella-lista-del-patrimonio-mondiale-dellunesco_02.jpg) ($1 = 0.8294 euros) (Reporting by Andrea Mandalà; Editing by Elaine Hardcastle and Nick Zieminski)

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