Mount Paschi beats analysts' expectations and closes the first quarter of 2023 with net profit of 236 million. In the first quarter of 2022, the profit amounted to 10 million, while in the fourth quarter of the same year it amounted to 156 million euros. Analysts consulted by Bloomberg they expected a profit of 119 million euros.
“The first quarter results – reads a note – confirm the bank's new positioning capable of generating sustainable profitability with an improvement in operating performance, thanks to the results already achieved in the implementation of the business plan”.
The stock continues to rise on the stock market
The results released this morning, before the opening of the Stock Exchanges, are encouraging the title in Piazza Affari: after +5,82% on the eve of the day, MPS shares started trading with an increase of 1,76% to 2,202 euros per share. In the following minutes, thanks to the reversal of the Ftse Mib (-0,2%), the stock reduced its gains to +0,56%. We recall that, according to the latest rumors, the Treasury could place part of its share package, equal to 64% of the capital, on the market.
Mps: revenues rise, interest margin boom
I total revenues reached 879 million euro, an increase of 11,8% compared to the same period of the previous year and of 4,8% quarter on quarter, driven not only by the interest margin (+1,2%) but also from net commissions (+7,3%). The boost in interest rates allowed the interest margin to grow, year on year, by 56,6%, to 505 million euro.
Down i Costs, down by 8,2% on the fourth quarter of 2022 and by 13,8% on the first quarter of last year, reaching 465 million, thanks to savings on personnel expenses, which fell by 19,2% compared to the corresponding period of previous year, "benefiting from the downward trend in the workforce, mainly linked to exits through the Exodus/access to the Solidarity Fund, pursuant to the agreement with the trade union organizations of 4 August 2022", reads the note. The cost-income it was thus reduced to 52,9%, beating the plan objectives for 2026.
MPS: EBITDA leaps by 67,6%, Cet1 pro forma to 14,9%
Thanks to the effect of these dynamics, the gross operating result jumped to 414 million, up 24,7% quarter-over-quarter and 67,6% year-over-year as credit adjustments remained broadly stable at 107 million.
In terms of equity, the fully loaded Cet1 it fell from 15,6% in December to 14,4% in March after however discounting the increase in risk-weighted assets (3,8 billion euro), linked to some regulatory headwinds. Including the profit for the period Pro forma Cet1 rises to 14,9% and the Total capital ratio 18% to 18,5%.
As at March 31, 2023 i total collection volumes they amounted to 177,9 billion euro, an increase of 3,4 billion euro compared to 31 December 2022, marking +2,1 billion on direct funding and +1,4 billion on indirect funding.
I customer loans amounted to 77,8 billion euros, an increase compared to 31 December 2022 (+1,5 billion euros), due to the increase in repurchase agreements (+0,8 billion euros), current accounts (+0,5 .0,6 billion euros) and other loans (+0,3 billion euros); mortgages (-0,1 billion euro) and non-performing loans (-XNUMX billion euro) were down.
Loans are growing, while i non-performing loans they dropped to 2,1%. Total non-performing customer loans amounted to 3,3 billion euro in terms of gross exposure (Gross NPE Ratio at 4,1%), substantially stable compared to 31 December 2022 but down compared to 31 March 2022 (equal to 4,0 .31 billion euros). As at 2023 March 50,2, the coverage ratio of non-performing loans stood at 210% (+2022 bp compared to December XNUMX).
CEO Lovaglio: "We aim to bring the dividend forward to 2024"
Monte dei Paschi will try to anticipate the distribution of a dividend to shareholders on the profit for 2024. This was stated by the managing director Luigi Lovaglio, answering an analyst's question on a possible buyback in the light of the excess capital that Mps presents at the end of the quarter "Looking ahead - says Lovaglio in his reply – we have the ability to generate capital quarter on quarter and thus create the space to anticipate the distribution of the dividend with the 2024 profit and we are much more focused on this than on a possible buyback”.
An analyst asked Lovaglio if it is possible to think of a repurchase of part of the share held by the Treasury, after some rumors in recent days spoke of possible transfers on the market by the Mef. The manager replied that "the net profit confirms the bank's renewed ability to generate sustainable profitability and that "we expect to replicate the first quarter performance also in the following quarters". Furthermore, he underlined that “the targets of our plan are more than achievable” and that “it has arrived the time to generate value for all our stakeholders".
(Last update: 12.08 pm on 9 May).
