Ps surprises in the first semester 2025: Profit of €892 million, down only due to extraordinary tax effects for 2024. Excluding those "items", +21,4% thanks to revenues growing to €2,05 billion, driven by net commissions +9,1% and a 32,2% jump in financial management. Results that the market rewards: title Mps a Business Square jumps by 3,37%, reaching 7,74 euros.
While Rocca Salimbeni reveals the accounts, the market is holding its breath on theMps takeover bid on Mediobanca and on the response of Generali, which this morning will decide on the ten-year extension of the distribution agreements with Banca Generali, including the possible extension to the Piazzetta Cuccia network. If approved, Mediobanca's extraordinary shareholders' meeting could begin as early as August 21, paving the way for a true Italian wealth management giant. Meanwhile, the CEO of Monte dei Paschi, Louis Lovaglio, it's already there evaluating countermeasures to respond to this blitz by Alberto Nagel, CEO of Mediobanca. The real ace in the hole? Its capital strength. With a coefficient Cet1 stable at 19,6% and a high quality capital of 8,5 billion (in line with the 2024 budget), MPS can count on an excess of capital estimated at about 2,8 billion to play for enhance the offer on Piazzetta Cuccia. This is what he calculates Milano Finanza.
MPS: Revenues up thanks to commissions and financial management
Ps archive the first semester 2025 with profits of 892 million euros, down 23% compared to the same period in 2024. But beware: last year the bank had benefited from 457 million in tax breaks. Without those extraordinary items, profits would have grown by 21,4% to 856,8 million euros. second quarter closed with a net profit of 479 million, up 15,7% on the first quarter and well above analysts' forecasts, which estimated profits of around 349 million. A result defined by the bank itself as "excellent." Strengthened by these numbers, MPS looks ahead with optimism: CEO Lovaglio announced in a conference call with analysts a increase in estimates for gross profit for the year, now expected to be above 1,5 billion.
I revenues total revenues for the half-year amount to 2.054 million euros, up 1,1% on an annual basis, driven by net commissions up 9,1% (803 million euros) and a strong jump in other revenues financial management (+32,2%). These factors offset the contraction in net interest income, which fell 6,7% year-over-year to €1.094 million, penalized by the decline in lending rates and only partially mitigated by lower interest expense on outstanding securities.
In the second quarter alone, revenues reached €1.047 million, up 3,9% compared to the first three months of the year. The improvement was broad-based across all components: net interest income rose 1,5%, net commissions 1,7%, while other financial management revenues jumped 32,8%.
Operating costs under control, gross operating profit growing
- operating charges amounted to 943 million euros (+2% year-on-year), driven in particular by the renewal of the national collective bargaining agreement for banks, which impacted personnel expenses (+5,3%). Other administrative expenses fell by 3,9% to 223 million, confirming the effectiveness of cost containment policies. cost/income ratio remains at very low levels and stands at 45,9%, compared to the 46% recorded in the first half of 2024.
He rgross operating profit rises to 1.111 million euros (+0,5% year-on-year), with a second quarter showing a marked improvement (+7,6% on a quarterly basis, to 576 million). net operating result grows to 936 million euros, compared to 897 million in the same period in 2024.
Il cost of credit Net non-performing loans decreased to €175 million in the first half of the year (€84 million in the second quarter alone), down from €204 million the previous year, with a provisioning ratio falling to 43 basis points, confirming the improvement in credit quality. Net non-performing loans decreased to approximately €1,7 billion, taking into account ongoing disposals, and overall coverage stood at 49,3% (net of disposals, 46,7%).
Solid capital ratios: CET1 fully loaded at 19,6%
Excellent financial strength: CET1 ratio fully loaded at 19,6%, confirmed at the record levels of the first quarter, with a capital buffer of 840 basis points above the minimum supervisory requirements. Total Capital Ratio stands at 21,8%, including the profit for the period (the inclusion of which is subject to ECB approval) and assuming a payout of 75%.
"Our capital position is very strong and remains strong. It is important to underline that we have maintained this level despite the increase in risk-weighted assets (RWAs) and despite the high level of lending activity during the first half of the year," CEO Lovaglio explained in a conference call with analysts.
Il net assets as of June 30, 2025, it is equal to 11,5 billion euros, down compared to March due to the distribution of the 2024 dividend (1.083 million euros).
Banca Mps is “studying” the possibility of bring forward a payout ratio of 2025% to 100% for the dividend"The payout ratio is something we're thinking about. We'll see how performance evolves in the second half of the year, but we're confident we can anticipate a 100% payout ratio as early as 2025," the banker said.
Collection and use on the rise
Total funding grew to €200,4 billion, driven by an increase in indirect funding (+€2,3 billion in the quarter), while direct funding remained stable. Commercial funding also grew (€171 billion, +2,5% compared to March) and customer loans rose to €80,5 billion (+€1,9 billion in the quarter), with a focus on mortgages (+€1,1 billion) and other financing.
Il securities portfolio It stands at €19 billion, essentially stable compared to March but up €2024 billion compared to December 1,5. The net interbank position is in use at €4,1 billion, down compared to previous quarters. Available operating liquidity (counterbalancing capacity) amounts to €31 billion.
MPS-Mediobanca: Going Forward with the Takeover Bid
Mps also recalls the start of thepublic exchange offer on Mediobanca, which began on July 14 and runs until September 8. The goal? "To create a new competitive force, among the leaders in the banking sector" with "sustainable value creation for all stakeholders – clear and solid remuneration for shareholders."
During the presentation of the results, Lovaglio launched a A clear appeal to the members of Piazzetta Cuccia"Our offer is not intended to replace Mediobanca's strengths but rather to unlock their potential." He added: "Our model is much broader and more diversified," and "our proposal will generate significant growth and value." These words mark the distance from the counterpart led by Alberto Nagel, who "follows an erratic approach, without a clear rationale and a defensive stance focused on protection rather than value creation." Lovaglio then confirmed the objective of reach 66,6% in the Mediobanca takeover bid of capital.
Regarding Nagel's surprise move on Banca Generali, however: "Honestly, I don't feel like commenting at this time, considering that Generali's board of directors will meet today. As Mediobanca stated, the outcome is crucial for further steps in the Banca Generali offer."
Last updated: Wednesday, August 6, 2025, at 9:45 AM
