Mps closed the first quarter of 2016 with profits of 93,3 million euros, a result down by 35,2% compared to 143 million in the first quarter of 2015, which however benefited from the extraordinary item of the reimbursement for Alexandria.
Consolidated net profit of 93,2 million for Monte dei Paschi in the first quarter, a decrease compared to 143,7 million in the same period of 2015. The interest margin amounted to 548,3 million (-9,6%). total revenues drop to 1185,5 million (-13%). The group records a gross operating profit of 540,5 million from 719,7 million in the same period last year. Operating expenses also decreased to 645 million (-1,3%) including personnel expenses (-0,4%). The bank reports its solid capital position with a transitional cet1 ratio of 11,7 per cent.
Banca Mps records loans to customers of 114 billion (+2%), reversing the negative trend that has characterized the last few years. Direct deposits rise to 120 billion. Commercial funding, which decreased at the beginning of the year, began to grow again in March and April.
At the end of March non-performing loans held by the Sienese bank were equal to approximately 24 billion euro and were covered at 49%, an increase of 59 basis points compared to the end of 2015. The institute plans to create a platform dedicated to non-performing loans from to entrust to Mediobanca. In the first quarter MPS recorded the return to performing status of loans for an amount of 400 million.
To manage non-performing loans, Monte dei Paschi is looking for a partner, who will have to be a different entity than any counterparties to whom it will assign part of the non-performing loans. The managing director Fabrizio Viola told analysts: "We plan to keep the agreement for the partnership and the sale separate," he explained.
Viola then made it known that Monte dei Paschi intends to raise the bar of non-performing loans to be sold on the market in the three-year period 2016-2018. The industrial plan provides for the sale of 1 billion this year, 1 in 2017 and 1,5 billion in 2018, "but our commitment is to do more in the three years", the CEO told analysts. The plan did not yet include the public guarantee Gags or the Atlante Fund and "we are expecting benefits from the establishment of the Fund", added Viola.
