Good news for Monte dei Paschi. After years of difficulties which also made it necessary to enter the state capital, Mps comes in handy. In fact, 2018 closed with 279 million in profits against the 3,5 billion in losses recorded in 2017 and against a consensus of 255 million.
The profit comes, among other things, despite a very difficult fourth quarter, archived with a loss of 101 million "due to restructuring costs", specifies the institution in a note. However, the red was lower than analysts' expectations.
Going back to 2018, Mps specifies that "the result for the full year includes restructuring costs envisaged by the plan for 202 million euros and contributions to system funds for 131 million euros".
Down i revenues, dropped by 18% to 3,287 billion euro, with an interest margin of 1,742 billion (-2,5%). Net commissions as at 31 December 2018 amounted to 1,52 billion euro, down by 3,4% compared to the same period of the previous year.
Last year, the Operating income gross is equal to 937 million euros (+2%), while the net operating result amounts to 312 million euros.
Il equity ratio Cet1 is equal to 13,7%, thus exceeding the level established by the European Central Bank in the Srep draft.
As regards one of the most sensitive issues for Mps, that relating to Non-performing Loans, the institute has reduced the stock of non-performing loans gross of approximately 29 billion euro, due to the sale of non-performing loans (27 billion) and the reduction in unlikely to pay (2,3 billion). Net non-performing loans fell to 9% of loans to customers, while total loans to customers rose slightly (+0,5%) to 86,85 billion.
La direct collection decreased to 90,4 billion (-4,6%), while value adjustments to financial assets amounted to 625 million, down by 4,8 billion compared to 2017 (the figure for two years ago however incorporated adjustments to receivables covered by the maxi-securitisation). Operating costs are also down (-7,6%).
As regards the near future, given the increase in the spread, the reduction in GDP estimates and the Srep requirements anticipated in the draft Decision of the ECB, MPS "updated multi-year internal estimates of economic and equity values" by lowering them "to a lower level than that envisaged in the 2017-2021 Restructuring Plan", but still maintaining "capital ratios values above the regulatory requirements".
Monte dei Paschi aims to reduce non-performing loans by another 2 billion this year and "if the situation does not worsen to go even beyond this goal". These are the words of the managing director Marco Morelli during the press conference on the 2018 accounts.
At 15.15 pm in Piazza Affari, the Mps title earns 0,73% to 1,2447 euros.
