Banca Popolare di Milano (BPM) was an Italian cooperative bank headquartered in Milan. Founded in 1865, it operated as a public‑limited cooperative (società cooperativa per azioni) and was a member of the Italian popular bank (banca popolare) network, which historically emphasized local ownership and a focus on serving small‑ and medium‑sized enterprises (SMEs) and individual clients.
History
- 1865 – Established in Milan as a popular bank (banca popolare) to provide credit to local merchants and artisans.
- Late 19th–20th centuries – Expanded its branch network across Lombardy and later throughout northern Italy, developing a reputation for retail banking, mortgage lending, and SME financing.
- 2000s – Pursued modernization, introducing digital banking services and diversifying its product portfolio to include corporate banking, wealth management, and insurance distribution.
- 2016 – Announced a merger agreement with Banco Popolare, another major Italian cooperative bank, to create a larger entity capable of competing more effectively in the consolidating Italian banking sector.
- January 2017 – The merger was completed, resulting in the formation of Banco BPM S.p.A., the third‑largest bank in Italy by total assets at that time. Following the merger, the Banca Popolare di Milano brand was gradually phased out in favor of the unified Banco BPM identity.
Organizational Structure
Prior to the merger, BPM was governed by a board of directors elected by its cooperative shareholders. Its governance model reflected the cooperative principle of one member, one vote, regardless of share capital. The bank’s capital was primarily provided by a broad base of individual and corporate cooperative members.
Business Activities
BPM offered a range of financial services, including:
- Retail Banking: Current accounts, savings products, personal loans, and mortgages.
- Corporate & SME Banking: Credit facilities, cash management, and advisory services for small and medium enterprises.
- Wealth Management: Investment products, portfolio management, and private banking services.
- Insurance & Ancillary Services: Distribution of insurance policies and other financial products through its branch network.
Financial Profile (pre‑merger)
- Total Assets (2015): Approximately €70 billion.
- Branch Network: Over 500 branches, primarily concentrated in Lombardy and other northern regions.
- Employees: Roughly 8,000 staff members.
Legacy
Banca Popolare di Milano is recognized for its long-standing presence in the Italian banking sector and its role in promoting cooperative banking principles. Its merger into Banco BPM marked a significant step in the consolidation of Italy’s cooperative banking segment, aiming to achieve economies of scale, enhanced capital strength, and improved competitiveness in a challenging European banking environment.