Monte dei Paschi di Siena closes i first nine months with a profit of 1,57 billion euros, marking a decisive + 68,6 % compared to the same period of the previous year, and exceeding expectations. In the third quarter alone, the Sienese bank reported a profit of 407,7 million. The CEO Louis Lovaglio he stressed that, thanks to the bank's solid performance, MPS has already matured 800 million euros earmarked for dividendsa 75% payout. And he appears confident about the future: “The goal is to exceed the earnings target for this year.” Pre-tax profit reached 1,1 billion, with the aim of exceeding the target of 1,3 billion by the end of the year. Regarding theBanco Bpm's takeover bid on Anima, Lovaglio said: “It could be interesting.”
Il title started off strong at the opening, gaining 1,8% to 5,3 euros, but by mid-day (affected by the overall weakness of the market) it veers in red, recording a drop of 1,84% to 5,11 euros.
Growing numbers for Mps
Also contributing to the results is the revaluation of deferred taxes Dta (Deferred tax assets) which brought a benefit of 469,5 million euros, improving the net operating result to 1,34 billion (+17,6%). The interest margin increased by 4,7%, reaching 1,77 billion, while the overall intermediation margin rose by 8,3%, bringing the revenues Total at 3,04 billion. Revenues slightly down in the third quarter (-1,1%).
Le commissions nice rose by 10,7%, reaching 1,092 billion euros in the nine months, driven by the wealth management which shone with a +19,6%. Despite the slowdown typical of the summer months, the third quarter saw an increase of 12,5% compared to the same period in 2023, even if it recorded a slight decline of 3,9% compared to the previous quarter.
With regard to the distribution of dividends, the banking group has already accumulated 800 million euros, which will be used for the expected pay-out of 75%. CFO Andrea Maffezzoni also anticipated that, following the government's fiscal maneuver, the bank plans to use about 1 billion DTA until 2028 and another 2 billion beyond that date.
Credit quality: NPL disposals and capital strength on the rise
One of the main novelties that emerged from the quarterly report is the cdisposal of a package of bad loans (NPL) with a gross value of 300 million euros, whose economic effects are already reflected in the nine-month accounts. Thanks to this operation, the stock of gross NPLs fell to 3,6 billion, with an overall coverage of 48,1%. From a capital point of view, Mps confirms its solidity. The Cet1 capital ratio fully loaded as of September 30th, it is equal to 18,3% with an increase of 28 basis points, including the third quarter profit and net of the dividends that MPS intends to distribute. Total capital ratio fully loaded stands at 21,6%.
Takeover bid on Anima and privatization: Mps observes with interest
Lovaglio commented on theBanco Bpm's takeover bid on Anima, calling it “interesting,” stressing that Mps, one of Anima’s main partners, will follow developments carefully, while avoiding getting into the details before understanding how the situation will evolve. “I agree that it is nice to also have a product factory within the group and for this reason it is nice, as I said, to have excess capital and if there is an opportunity on the market we would be ready to seize it,” the banker limited himself to saying.
About the privatization of the bank, with the Ministry of Economy and Finance holding 26,7% of MPS, Lovaglio chose not to comment on future moves by the Treasury, which holds 26,7% of MPS, declaring: "Let them work, they will know how to do the best for the group and for the shareholders".
