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Mps profit drops, but beats expectations. Anticipated targets on NPLs

The result reflects the payment of 140 million of non-recurring charges. Revenues and EBIT are also down – The bank accelerates the disposal of non-performing loans, exposure down to 7,3 billion – 455 million Npl sold to Cerberus

Mps profit drops, but beats expectations. Anticipated targets on NPLs

Monte dei Paschi continues to run on the Stock Exchange after the news on NPLs and the publication of the accounts. The semester closed with a Net income equal to 93 million euros, down by 67,7% compared to the same period of 2018 due to the "booking of non-operating components for 140 million euros" explains the bank in a note.

In the second quarter alone, however, the profit was 65 million (from 101), weighed down in this case by non-operating components for 47 million. However, the result beat analysts' expectations, amounting to 40 million euros.

Moving on to the other parameters, in semester i revenues amounted to 1,55 billion euro, down by 9,3% due to the decline in net commissions (723 million, -10,7%), del interest margin (813 million, -6,5%) and the worsening of other operating income and charges.

Il net operating result drops to 151 million (82 million in the second quarter), down 51% compared to the first half of 2018.

In the first half of 2019, the collection of current accounts and binding deposits rose to 3,6 billion euro, while disbursements of new mortgages amount to 3 billion euros.

Improve the capital position, with the transitional Cet1 al 14%.

The group is also accelerating on the NPL disposal front and expects a Gross Npe ratio to 12,7%, at the end of the year, "two years ahead of the plan objectives". The net exposure of non-performing loans decreased to 7,3 billion.

The news from Siena does not end here. The Tuscan bank, after announcing yesterday, 31 July, the sale of 700 million euro of non-performing loans and utp (loans unlikely to pay) to Illimity Bank, announced in the morning that it had completed the sale of non-performing loans to a subsidiary of Cerberus Capital Management for a total value of approx. 455 million, making the balance of the last 2 days rise to 1,15 billion euros.

In Piazza Affari, after the publication of the accounts, the Mps share gains 3,66%, after reaching a peak of +5%) to 1,36 euros.

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