Mps has closed the first semester of the year with a net profit of over 1,1 billion euros, up 25,3% over the same period in 2025. The second quarter, as stated in a note, contributed with a 27,3% growth result to 610 million, exceeding the approximately €540 million expected by analysts, "thanks to further improvements in core business profitability," according to a statement. The fully loaded CET1 ratio rose to 16,3%, "with a large capital buffer compared to regulatory requirements," equal to "approximately 680 basis points," which "allows for high strategic flexibility."
MPS, the half-year accounts
During the semester, MPS achieved total revenues of 4.024 million euros, up 4,1%, with net commissions up 3,6% to €1.288 million, net interest income essentially stable at €2.097 million (+0,3%), while other financial income rose 21,3% to €605,9 million. Effective management of operating costs—which fell 0,7% to €1.724 million, with a two-point reduction in the cost-income ratio to 43%—contributed to the growth in net operating income for the half-year, which rose 8,2% to €2.008 billion.
Accelerating the net operating result in the second quarter, which rose to 1,06 billion (+11,8% on the previous quarter and +12,7% on 2025), thanks to the acceleration in revenues (+5,4% on the quarter and +5,3% on the year), driven by the "excellent performance" of commissions (+8,4% and +9% respectively), the "good performance" of the interest margin (+2,5% on the quarter and +0,6% on 2025) and by operating costs under control (+1,1% on the quarter and -2,2% on the year). The growth in job volumes, up 5,6% on 2025 and 1,8% on the quarter, driven by mortgage loans granted to families (3,6 billion in the semester) and consumer credit (5,5 billion). total collection stands at around 300 billion, up 10 billion on the first quarter of 2026 and over 18 billion on June 2025, supported by over 12 billion in gross wealth management flows.
As regards asset quality, in the semester the cost of credit amounts to 39 basis points, in line with the trend outlined in the business plan, with the stock of gross impaired loans stable at 3,7 billion. The incidence of gross impaired loans on the credit portfolio (gross NPE ratio) amounts to 2,5% while the net NPE ratio improves from 1,3% to 1,2%, with an overall coverage equal to 50,6%.
MPS and the integration with Mediobanca
The activities for the integration of Mediobanca into MPS – we read in the note – “are proceeding according to plan” and their completion is “expected in fourth quarter".
Lovaglio and the banking game: "MPS is essential for Italy if it remains intact."
“With the support of the advisors” MPS continues “the analysis of the strategic options, according to a rigorous and targeted approach maximizing long-term value for all stakeholders", we read in the note on MPS's half-year results. And during the conference call with analysts, CEO Luigi Lovaglio He then said: “Montepaschi is a strategic asset for the Italian economy” and “represents an important economic infrastructure for the country and has a systemic value” which “depends on theintegrity of the bank itself." "If you split a power plant in two, both parts might still be able to function, but you risk a loss of power and reduce the ability to deliver energy where it's needed. It works the same way for banks."
MPS, Lovaglio to Intesa: "The takeover bid doesn't fully reward shareholders."
"A national champion – Lovaglio then said, addressing Intesa Sanpaolo – should strengthen the competitive fabric of the country, don't reduce itOtherwise, the crown may grow larger, but the kingdom will become smaller. This is why the board of directors, with the support of its advisors, will continue its independent and rigorous analysis, with the "clear objective" of identifying the optimal path that maximizes value for all MPS stakeholders while preserving the integrity of the franchise.
Lovaglio said that "the preliminary assessments published on July 16" by the board of directors "remain fully valid." According to the banker Intesa's takeover bid "does not currently appear to fully remunerate Monte Paschi shareholders for the control premium, for the synergies and for the value of the franchise, while at the same time exposing them to significant regulatory and execution risks"For Lovaglio, on the other hand, the MPS and Mediobanca strategy "represents a solid industrial logic and clear execution that envisages, among other things, significant value creation and a cumulative distribution to shareholders of €16 billion over the plan period." "I have always been a supporter of banking sector aggregation: scale and size matter, investment capacity matters, technology matters. But scale and size must strengthen operators, not necessarily reduce their number," Lovaglio concluded, according to whom an integration "must ultimately be evaluated based on industrial logic and value creation, not from a perspective of fragmentation," since "competition remains a fundamental source of innovation, quality of customer service, and resilience."
Lovaglio: Let's ask ourselves how much value MPS can bring to the country.
“The question is not only how much MPS is worth today” but “what value our bank can generate for this country tomorrow”, said Lovaglio always in reference to the takeover bid of Intesa Sanpaolo, which would lead to the division of the bank in two with UnipolMPS, Lovaglio states, "is not just a collection of branches, it's a network of relationships, knowledge, and trust." "Branches aren't walls, they're antennas," and "every day they gather signals from the real economy and transform local savings into credit, credit into investment, and investment into economic growth." "If the system loses power," the banker warns, "businesses receive less energy, meaning less credit," resulting in "slower and more costly decisions" and "less support for the real economy."
Lovaglio on the extraordinary dividend
Mps has sufficient time to propose the distribution of a extraordinary dividend to hinder Intesa Sanpaolo's offer. "We have to call the shareholders' meeting, which requires 30 days' notice, so we have plenty of time, if we want, to make a distribution," Lovaglio said, when asked by shareholders about the option, which, as a result of the passivity rule would require a passage in the assembly. As for the timeframe required by the ECB to analyze this possibility, "we believe that it will be more or less in line with the timeframe envisaged by the offer which is still underway." "This assessment will be made in the context of the analysis of the strategic options which we will continue to do following a very process strict, with the precise aim of maximizing value for our shareholders,” added Lovaglio, returning to the topic of detaching a special dividend.
Lovaglio: We can evaluate every option from a position of strength.
“In the current strategic environment, our capital position is one of the reasons why Monte Paschi can evaluate every strategic option from a position of strength“, underlined Lovaglio, emphasizing the “financial solidity” of the Sienese group.
Lovaglio on Banco BPM and the parallel with the Odyssey
“As in theOdyssey, which has now become an unmissable film, some routes close and others openFrom our safe harbor we will continue our journey, fully committed to exploring every strategic option capable of creating long-term value for our stakeholders,” Lovaglio declared, implicitly referring to the end of negotiations with Bpm bank for a merger alternative to the Intesa Sanpaolo takeover bid. And again: "Today we are not talking about any transaction with Banco BPM." He then clarified that "if strategic options emerge" in the interest of shareholders, "we will evaluate them as always". And then: "It's not up to MPS to comment on the other party's internal decisions. What I can say is that we didn't just sit back and watch this offer, but rather analyzed it with conviction," confident that it could create "a market-leading Italian bank, creating value for the shareholders of both banks." "However, the discussions did not reach the point where we could effectively discuss and evaluate the value creation over time. Banco BPM decided to end the discussions before reaching that point. Therefore, we respect the decision and move forward."
Lovaglio on MPS's 2026 guidance and potential with Mediobanca
The results of the first half of the year “confirm the quality of our transformational growth path” and are proof “of the industrial size reached by MPS together with Mediobanca and I want to be very clear this is just the beginning of what this business combination can achieve,” continued the CEO of MPS. “In the first six months of the year,” Lovaglio recalled, “we generated a net profit of more than 1,1 billion euros” and “we increased credit volumes, increased customer financial assets and strengthened our capital strength.” The banker underlined how MPS continues to achieve “solid, sustainable and increasingly diversified results thanks to a stronger market presence, a more diversified business model and a greater ability to create value over time”.
“Let's raise the guidance on 2026 "pre-tax profit of 3,6 billion euros", Lovaglio then said, highlighting how the synergies with Mediobanca "are also proceeding ahead of schedule, giving us the confidence to achieve a result even higher than that forecast for 2026". Asked about the amount of additional synergies that the integration with Piazzetta Cuccia could generate, "I feel I can say that compared to the original target", set at 700 million euros at full capacity, “we can foresee another 100 million euros”.
Lovaglio and the Generali
“Any future decision” on share in Generali "It will be evaluated, obviously in the best interests of Monte Paschi shareholders, taking into consideration the value of the stake, the capital, regulatory implications, the group's strategy, and market conditions," the CEO said when asked by analysts about the possibility that the Generali stake could be used, sold, or distributed to shareholders in the banking game. "The stake in Generali is a nice to have because it represents a very important source of value and strategic options” for MPS and “it also seems that it is considered a very important thing to have by other market operators as well”.
MPS expands its advisory team
Mps expands its team advisor who are assisting it in evaluating strategic options following the Intesa Sanpaolo takeover bid. In addition to the financial advisors already appointed, MPS "will also avail itself of Keefe, Bruyette & Woods, A Stifel Company".
(Last updated August 8, 2026, at 12:00 PM)
