The board of directors of Monte dei Paschi di Siena approved the 2016 draft budget. The results incorporate some changes with respect to the preliminary data, approved by the board of directors on 9 February 2017.
In particular, the loss for the year was equal to 3,24 billion euro compared to the loss of 3,38 billion indicated in the preliminary results, with a consequent increase in shareholders' equity of approximately 139 million euro.
At the balance sheet level, CET1 increased by 98 million euro compared to 9 February 2017, and is equal to 5,35 billion euro; the CET 1 ratio on a transitional basis was 8,17% (+15 basis points compared to the preliminary figure) and the Total Capital ratio was 10,4% (+15 basis points compared to the preliminary figure).
Confirmed, therefore, that the institution complies with the minimum regulatory requirements established by the European Union regulation, but has a deficit with respect to the CET 1 SREP target ratio set at 10,75% for 31 December 2016.
In the meantime, the Wall Street Journal has published some indiscretions relating to the draft restructuring plan approved yesterday by the MPS board of directors. According to the American newspaper, the project would envisage the sale of the entire Npl portfolio at an average value of 25% of the nominal value. Furthermore, the Sienese bank should transfer blocks of non-performing loans to one or more newly created vehicles controlled by investment funds or companies capable of handling them. Investors interested in the deal include Lone Star Funds, Fortress Investment and Allianz's Pacific Investment Management.
