By mid-June, Monte dei Paschi di Siena will launch the capital increase of 5 billion, just under double the bank's current market value, approved on 21 May by the shareholders' meeting. The operation will make it possible to pay the reimbursement of 3 billion euro of Monti Bond in cash, avoiding the entry of the State into the capital of the bank. The definitive transition from a crisis situation, which also had dramatic implications, has therefore come to an end and Monte dei Paschi regains its role as the third largest Italian banking giant. A week after the shareholders' decision, the president of the Sienese bank, Alessandro Profumo, illustrates projects and strategies for the coming years to Stamptoscana.it, with one certainty: "The complicated period is over".
MPS is preparing to launch a capital increase of 5 billion in June. An operation that will revolutionize the shareholding structure. With what consequences for the bank? What will remain of his "Sienaness"?
I feel able to say that the consequences for the Bank can only be positive. The capital increase will allow MPS to better meet the commitments undertaken in the restructuring plan, seizing all the opportunities deriving from a possible recovery of the macro-economic conditions and banking activity. Just as it will be possible to benefit from a lower cost of funding thanks to the expected improvement in creditworthiness, also counting on the ability to optimize the cost of credit for the future. I would also like to point out that with the completion of the 5 billion euro capital increase in the first part of next July and paying the repayment of 3 billion euro of the Monti bond in cash, we will not only avoid the entry of the State in the Bank's capital but we will repay our debt with interest, consolidating the bank's primary capital and putting an end to the 'somewhat complicated' period the bank went through. As for "Siena", as I have often had the opportunity to say, I have always been sensitive to the word 'community'. For me, community means a close and virtuous bond between people and the area in which they live and work. So we will certainly not forget the roots of this bank, trying to continue to add value.
Could a massive entry of foreign investment funds pose problems? In the medium term, how could MPS be prefigured and with what role at national level?
In all objectivity I see no problems. And the division of our shareholders, with the consequent diversification of nationalities, I believe can represent an opportunity for comparison and development. Let us not forget that a strong foreign shareholding component is a novelty present in all the main industrial and financial companies of our country. Being attractive to international investors is also synonymous with trust in the country and this represents an important opportunity for all Italian entrepreneurs and a decisive factor both for economic recovery and for the creation of new job opportunities. In the medium term, I see MPS vigorously regaining its role as the third largest bank in the country, with the full trust of its five million customers, capable of becoming its best testimonials.
MPS's accounts are still in the red after three years of heavy losses. The crisis is not yet behind us and the Italian GDP is still negative. Are the accounts now 100% 'clean' with no further risk of burdening the balance sheet and preventing the expected return to profits?
The period of contraction is dictated by a number of factors, some of an exogenous nature, including a still persistent macroeconomic crisis and a heavy legacy that we have found ourselves having to manage within an undoubtedly challenging but certainly not easy overall economic panorama. . The "red" of the first quarter of 2014 must be evaluated net of the extraordinary components, including 143 million of higher costs on the 4 billion of Monti bonds, otherwise we would see a substantially positive result. The accounts are "clean", but they certainly still bear the weight of so-called "non-performing" loans, a consequence of the crisis I mentioned.
Besides retail, what other business is MPS relying on the most to regain its share?
Certainly, retail has always been the "core business" of this Bank. But an important effort has already been made to further enhance the services available to private customers and above all to small and medium-sized Italian companies, which represent a focus for us. We should also mention the upcoming launch of our online bank, Widiba, which is arousing a lot of interest within the sector and which will go to intercept that new segment of customers, digital natives but not only, who want to take advantage of all those benefits that – also in this field – technological innovation is able to offer. She asks me how to regain altitude. I could answer you by saying that we are already flying quite steadily at a good height. The numbers speak for themselves. In the first quarter, Banca Monte dei Paschi di Siena increased the number of new current account openings by 3,3%, registering 21 new ones. Net of the extraordinary components, the interest margin increased by 4,3%, commissions recorded a +10% and the continuous work on costs on a quarterly basis determined a decrease of the same by 3,8%. A set of signs that testify to the constant trust that our more than 5 million customers continue to place in a bank that comes from a centuries-old tradition.
How do you see the future of Italian banking? The liquidity problem will remain topical for a long time to come. Are you worried about the asset quality review and the stress test?
Certainly the "comprehensive assessment" - represented by the sum of AQR and stress test - with its uncertainties is an element of strong attention for the banking system, not only in Italy but in Europe. We thought it appropriate to increase the capital increase to 5 billion in order to have a greater cushion in view of the same. The future will also bring us positive aspects, such as true European banking integration, with common and clear rules. Certainly the results of the European elections also guarantee a positive framework of stability for the financial system.
Were you surprised by Antonella Mansi's decision to leave the Foundation? How will the bank's relationship with the Foundation be able to develop?
These are personal reasons, which I respect. As regards the relations between the Bank and the Foundation, I believe that they should be the usual ones that exist between a company and its shareholder. Certainly in the last period the presence of the Foundation within the shareholding structure of the Bank has definitely changed. From 51% in the recent past it has now reached 2,5%. A presence that I am sure will allow it, however, also in the future to be able to play an important role in the Sienese area, working together with the other 'pact' shareholders with whom to form a nucleus of permanent shareholders. I am certain that the pact between the MPS Foundation and the new shareholders will be aimed at accompanying the bank in the direction of stability.
Attachments: Source: Stamptoscana.it
