On the day when the MPS assembly will nominate Alessandro Profumo President of the Sienese bank, in addition to the Board of Directors and the Board of Statutory Auditors, the number one of the Mps Foundation, Gabriello Mancini, has launched a 360-degree attack on the management of the institute: "Even considering the difficulties on the global economy front, the budget that we are called to approve today shows disappointing results overall"'.
Mancini puts the spotlight on weakness of recurring revenue components, operating costs higher than expected, high loan loss provisions, reduction of Equity from over 17 to less than 11 billion, against an improvement in capital ratios after thecapital increase of June 2011.
The number one of Palazzo Sansedoni underlines how the Foundation, which holds 36,3% of Mps, supported the bank by subscribing the capital increases: ”now we have to be honest: these fruits have been lacking in recent years. In order for the Foundation to be able to carry out its function as a non-profit body that acts in support of the reference area, it is essential that the Monte returns to producing and therefore distributing profits as soon as possible". Profits on which the Foundation will not be able to rely, after the choice of the bank's top management not to pay the dividend in 2012.
According to Mancini, the 2011-2015 industrial plan of Monte dei Paschi is “obsolete“, as it is based on participation in a capital increase which “provided for further 2 billion in dividends by 2015 which, however, imagined a growing country, albeit limited. We can therefore say that this plan is now obsolete".
Mancini also extended the controversy to the issue of salaries: "Already in today's meeting we will propose a significant reduction in directors' fees, in line with the policy of rigor adopted some time ago by the Foundation and its subsidiaries".
A not entirely unrealistic wish, according to some unconfirmed rumors reported by the Corriere di Siena: according to the local newspaper Profumo he allegedly promised to waive his salaries as president.
Mancini's reaction was positive: "Surely, a renunciation of this type by the new president would be very welcome". It should be noted, however, that there is no official statement and, certainly, the President of the Foundation will want to extend the invitation to "salary moderation" to the rest of Mps' top management as well.
In the context of this proposal, Mancini hopes for "a severe reduction of all expenses according to a logic of absolute containment and a careful work of control and further reduction of costs."
