The losses weigh on Mps, to the point of sending the title to a volatility auction on the Stock Exchange. This is the response from the 2019 accounts published by the Tuscan bank: yet, before the presentation of the results, investors had shown themselves to be quite optimistic, with the stock gaining up to 5%, on the highs since October 2018 at 1,92 euros per share. But then the loss of over 1 billion communicated by Mps changed things: the Sienese institute however kept pointing out that the net result of -1,033 billion was largely due "to the revision of the value of the Dta (-1,2 billion), without however any effect on capital ratios and on bank operations”.
In fact, last year's net operating result increased by 3,3% compared to 2018, to 323 million (gross to 934 million, in line with the previous year), despite the constraints imposed by the restructuring plan. Revenues, on the other hand, fell by 2% to 3,22 billion, "following, in particular, the decrease in the interest margin and net commissions and the worsening of other operating income and charges only partially offset by the improvement in other income from financial management, recorded thanks to the positive effects recorded on financial assets valued at fair value and the higher profits deriving from the sale of the securities”.
Fee and commission income was also down to €1,45 billion, down 4,8% y/y: both for the asset management component and for traditional services, they were impacted by the difficult market conditions . However, Mps trusts to continue with the commercial relaunch: in 2019, he points out, there were new credit disbursements for over 9 billion euro, with commercial direct deposits increasing by 3,6 billion and growth considered significant for the bancassurance sector. The stock of gross non-performing loans is continuously and significantly decreasing: 3 out of 4 of those that were in the bank's stomach have been sold and now amount to 12 billion.
As a result, the Gross Npe Ratio has dropped significantly, from 17,3% in 2018 to 12,4%: exposure to bad loans is still high compared to "healthy" banks, but the recovery process is progressing faster than expected, anticipating the objective of the plan which envisaged a reduction to 12,9% to be achieved only in 2021. Lastly, the net interest income in 2019 amounted to 1,501 billion, down by 13,9% compared to 2018, also in this case of the activities put in place to respect some of the commitments of the restructuring plan.
