Banca Monte dei Paschi di Siena ended 2013 with a loss of 1,43 billion euros, which compares with the loss of 3,16 billion recorded in 2012. In the fourth quarter of last year alone, the result was negative by 920 million. Loan adjustments for an amount of 2,75 billion weigh on the annual accounts, of which 1,21 billion between October and November. A few minutes after the opening, the MPS stock gained 1,8%.
"The strengthening of the coverage of non-performing loans continues - MPS writes in the note -, also in view of the Asset quality review: coverage of non-performing loans equal to 58,8% (63,2% with amortization) and up by 90 basis points compared at the end of 2012, Core Tier 1 at 10%, which does not incorporate the benefits already present in 2014 deriving from the recent regulations".
Primary revenues and operating expenses are "better than the targets contained in the restructuring plan approved by Brussels - continues the institute -, primary revenues are 1,4% higher and costs are 4,8% lower than the 2013 targets Cet1 2013 fully phased-in equal to approximately 9%, with further growth over the period of the Plan: Cet1 2017 phased-in greater than 12%”.
The Sienese bank is planning a capital increase up to 3 billion to repay part of the 4,1 billion Monti bond state aid and avoid the risk of nationalisation. The increase, which was supposed to start in January but which was postponed to no earlier than 12 May at the behest of its first shareholder Fondazione MPS, will be guaranteed by the consortium of banks led by UBS which renewed the pre-subscription contract.
The group confirmed that "the preunderwriting agreement has been renewed which sees Ubs as global coordinator and bookrunner, Citigroup, Goldman Sachs International and Mediobanca as coglobal coordinators and joint bookrunners and in addition Barclays, BofA Merrill Lynch, Commerzbank , JP Morgan, Morgan Stanley and Partners été Générale as joint bookrunners. Banca Monte dei Paschi di Siena is also assisted by UBS as financial advisor and MPS Capital Services as co-financial advisor as well as by Linklaters as legal advisor”.
