Start of the session up by 0,62% for Mps (while the Ftse Mib falls by 0,32%) in the aftermath of the release of the quarterly accounts. The Sienese bank closed the third quarter of 2013 with a net loss of 138,3 million, slightly better than market expectations. Over the nine months the red is 518,3 million.
“It is an income statement that still suffers – Fabrizio Viola commented in yesterday's late afternoon conference call with analysts – but we must consider the work done compared to 2012 which tells us that we are in the right direction”. In the nine months of the past financial year the red stood at 1,557 billion. In the third quarter of this year, the interest margin showed a growth dynamic of 4,1% and there was a strong reduction in costs -11,4% on an annual basis.
“The work done on costs – commented Viola again in the conference call – covered the drop in revenues by 67%. The result is also influenced by the cost of credit which stands at 151 basis points and we still have a gap to recover compared to the average of banks in Italy”. Three new directors were also co-opted to yesterday's board of directors on the accounts: Maria Rubini, lawyer and head of the legal department for Italy of the Novartis group; Marco Miccinesi, professor of tax law at the Catholic University of Milan; and the lawyer Daniele Discepolo. They replace Tania Groppi, Turiddo Capaini, Michele Briamonte
The bank is working on the balance sheet to make the financial capital structure more efficient and on the operational commercial side, continuing on the front of deleveraging and cost reduction (the sale of the back has been confirmed which the bank hopes to finalize by December but which will have no budget), and is awaiting the go-ahead given to the restructuring plan by the European Commission. The plan landed on the table in Brussels on 11 November (on whose approval depends the go-ahead for the 4,07 billion euro loan from the Treasury with Monti bonds).
The bank awaits the go-ahead for the restructuring plan, which was presented in its guidelines, to provide further details to the market and to approve the update of the 2012-2015 business plan. “We are awaiting the green light from the European Commission and we are working on the business plan – explained Viola – immediately afterwards we will proceed to give indications on the revision of the business plan. I am unable to give a precise timing today which depends on many elements and factors”.
The agreements with Brussels also provide for an increase from 2,5 billion euros to repay 70% of the Treasury loan by 2014. A figure which, however, could still rise to three billion. However, the green light is expected in the short term, perhaps next week. Which means that with the shareholders' meeting convened by December, the increase could start in January. On the other hand yesterday in a conference call the CEO underlined: “The more time passes, the more difficult the operation becomes. Anyone who knows the financial markets knows that theoretically there are three windows: January, June and the end of the year, of which the last is theoretical for us, so the best window is January and then June the following one”.
