After yesterday's rise of more than 4%, Monte dei Paschi di Siena continues to gain on the stock market, posting a +5,33% to 0,17 euro, the best performance on the list. The push to the upside would be the settlement with Deutsche Bank on the damages lawsuit on Santorini.
The agreement will have a positive impact of 25 basis points on the Core Tier 1 ratio (+200 million) equal to the difference between the value of the position (746 million) and the outlay paid by MPS (525 million). The Sienese bank had made a claim for damages to Deutsche Bank of 500 million.
From an accounting point of view, however, there will be a net loss in the income statement of 194 million, offset by a positive impact on the income statement (interest margin) of 33 million euros per year from 2014 onwards. Equita analysts remind us that there is still a lawsuit for damages with Nomura for 700 million on the Alexandria operation.
According to press reports, while contacts continue with the Cariplo, Verona and SanPaolo Foundations for the share swap, there is allegedly the involvement of an Arab sovereign wealth fund which would support the Foundations (ready to take over 20% of the institute) by providing resources for subscribe to the capital increase. The scheme, writes Equita, is not yet clear but the swap of shares between Foundations seems to be the only option in the hands of the MPS Foundation so as not to definitively compromise the assets and give the go-ahead for the capital increase.
