The Monte dei Paschi di Siena has closed 2024 with a Useful of 1.951 million euros, down, but less than expected, by 4,9% compared to the 2.052 million of 2023, a financial year which however had benefited from releases of reserves on legal risks for an amount of 471 million. outcome, “supported by operational excellence”, explains a note, is up 16,9% for the part relating to the characteristic activity. Coupon more than tripled, which goes up from 0,25 to 0,86 euros per share, with a dividend of over one billion euros and a payout of 75% on pre-tax profit, corresponding to a 14% dividend yield, “among the highest in the sector”.
The title a Business Square at 10 am it was quoted at 6,40 euros, up 1,49%. In the last month it had lost 6%.
Lovaglio: "We are ready for the Mediobanca operation"
Strong accounts strengthen the project expansion towards Mediobanca of the institute led by Luigi Lovaglio and owned by Tesoro (11,7%), from Dolphin and by Francesco Gaetano Caltagirone (overall credited with close to 18% of the capital). “With a competitive commercial network, excellent profitability and financial solidity, Mps is ready to realize an industrial development process through an innovative business combination with Mediobanca for the birth of a new national champion, for the benefit of all stakeholders" said the CEO Louis Lovaglio in presenting the data. “I firmly believe that we are very well equipped to join forces with Mediobanca with a industrial project unique and exclusive to create value using the strength of their respective brands“. The oops announced Friday, January 24 puts 13,3 billion on the table with an exchange rate of 2,3 MPS shares for each Piazzetta Cuccia title.
Ps can start buying Mediobanca shares also before authorization of the public exchange offer by the authority. "We have no limits “As regards the purchase of shares, a connection with the authorization of the ECB is not necessary,” Lovaglio said in a conference call with analysts.
2025 expected to be “at least in line” with 2024
Mps aims to close 2025 with a pre-tax profit “at least in line” with that achieved in the previous financial year and has “the ambition to ensure stability year on year” for the dividend. This is what can be read in the 2025 outlook contained in the presentation slides of the 2024 results. The capital strength indicator Cet1 ratio is expected to grow above 18,5%: “the organic generation of capital allows the Cet1 ratio to grow while maintaining a high remuneration for shareholders”, we read in the presentation.
Growth in managed savings stands out in 2024
In the exercise i revenues grew by 6,2% to 4,03 billion euros, with the interest margin up by 2,8% to 2,36 billion and commissions by 10,8% to 1,46 billion. The increase in operating costs was contained to 1,4%, to 1,87 billion, with a cost-to-income ratio decreasing from 49% in 2023 to 46%, allowing the gross operating result to grow by 10,8% to 2,165 billion.
La total collection of the financial year was up by over 9 billion euros while loans decreased by 0,6%. “The double-digit increase year on year in disbursements mortgage loans (+26%), of the Consumer credit (+21%) and gross flows of wealth management (+40%) – says the bank – confirms the strength of a commercial network widespread and performing”. The cost of risk stood at 53 basis points, in line with the guidance for the year, with 410 million euros of write-downs on loans, down from 440 million in 2023.
- performing jobs, equal to 68,4 billion, increased by 1,3% compared to 30 September 2024, and slightly decreased by -0.6% compared to December 2023. Total customer financing deteriorated as of 31/12 it was equal to 3,7 billion in terms of gross exposure, in flexion (-0,2 billion euros) compared to 30 September 2024 mainly due to the disposals completed in December and increasing compared to 31 December 2023 (+0,2 billion). The stock of gross impaired loans has a guaranteed component of over 70%, gross NPE ratio at 4,5%, net NPE ratio at 2,4% and overall coverage of problem positions at 48,5%.
On the property front, the cet1 ratio coefficient fully loaded stood at 18,2%, with a high capital buffer (over 700 basis points above the tier 1 ratio requirement).
As regards the quarter, closed with a profit of 384,9 million, a sharp decline compared to the 1,12 billion of the last quarter of 2023, which had however benefited from the release of reserves for legal risks for almost half a billion euros. The result is still higher than analysts' expectations, who expected, according to the Bloomberg consensus, profits of 262,8 million.
The contribution of the 2024 will increase tax bonuses to the economic result of MPS, which thanks to the That (deferred tax assets) continues to pay no taxes on the operating profit. “Operating income taxes recorded a positive contribution of 506 million euros”, up from 345 million in 2023, “mainly attributable to the revaluation of DTAs, following the update of the group's income projections carried out starting from the second quarter on the basis of the new 2024-2028 industrial plan, net of taxes relating to the economic result of the financial year”, explains the bank in a note
Capitalization supported by Generali share
Mediobanca's market capitalization "is supported by the growing weight of the share in Generali, which is worth approximately 6 billion euros”. As of January 23, the 13% stake in the Leone di Trieste “is worth approximately 47% of the market capitalization” of Piazzetta Cuccia which, net of the stock market value of its subsidiary, “capitalizes 6,7 billion”. This is what can be read in the presentation slides of the results of MPS.
