By Andrea Mandala MILAN (Reuters) – Italy’s Banco BPM pledged on Tuesday a five-fold increase in payouts to investors through 2026 by using fee income to sustain record profits even as the boost from higher interest rates wanes. Presenting a new three-year strategy, CEO Giuseppe Castagna said his bank’s performance showed it had no need to merge with a mid-sized peer such as state-owned Monte dei Paschi. With its roots in Italy’s wealthy Lombardy region, Banco BPM has been seen as a potential merger partner for Monte dei Paschi or BPER Banca, as well as a takeover target for heavyweight UniCre…