Italian banks plunge as sovereign risk in focus post ECB
Targets 50 payout ratio, 800 mln euro profit in 2025
Bets on fees from sale of insurance, wealth products

MILAN, June 10 Reuters Italy39;s fourthlargest bank BPER Banca on Friday pledged to double profits and return at least 1 billion euros 1 billion to investors by 2025, though it failed to offset concerns about Italian lenders that sent its shares down 12.

BPER set out its 20222025 business plan on the backdrop of a 7 plunge in Italian banking shares the day after the European Central Bank voiced serious concerns about inflation, prompting markets to ramp up rate hike forecasts.

The expected reversal from July in the ECB39;s monetary stance, of which indebted Italy has been one of the main beneficiaries, on Friday pushed the risk premiums on Rome39;s government bonds versus safer German Bunds to a fresh twoyear record.

Outlining goals which broker Bestinver described as aggressive, BPER, said it would close more than a quarter of its branches and focus on feeearning activities like insurance and wealth management to drive profits to around 800 million euros, up from 384 million last year.

Ours is an uncommon plan with many growth engines, CEO Piero Luigi Montani told analysts. We face several uncertainties, but we39;ll overcome them and, whatever happens, it39;ll be a success.

Citi analysts noted BPER39;s shares had been strong in the run up to presenting its new plan and were being hampered by the…