The group Montepaschi continues to see profits rise, in view of the progressive divestment of the state share, for the complete recovery of the Sienese bank. The 1st quarter results have beat analysts' expectationswhile the prospects for 2024 are very positive and we are preparing to exceed the Plan targets for 2026.
Largely positive quarterly results
As of March 31, 2024, the Group has achieved revenues totaling 1,013 million euros, an increase of 15.2% compared to the same period of the previous year. The interest margin, i.e. the difference between active and passive rates, was equal to 587 million euros, up compared to the same period in 2023 (+16.4%). Net commissions, equal to 365 million euros, show growth compared to those recorded in the same period of the previous year (+10.1%).
The gross operating profit (EBITDA) of the Group is equal to 551 million euros, up both compared to 31 March 2023 (equal to 414 million euros), while the net operating result (EBIT) equal to 444 million euros, up both compared to 31 March 2023 (equal to 309 million euros). Profit for the period pertaining to the Parent Company amounts to 333 million euros as of 31 March 2024, compared to a profit of 236 million euros achieved as of 31 March 2023.
2024 expected beyond forecasts
According to CEO Luigi Lovaglio, the guidance for 2024 indicates that pre-tax profit will be more than 1.3 billion and therefore in the second half of the year there could be a revision of the Plan's targets for 2026.
“In the second semester we will update the guidancegiven that we are ahead of the plan to 2026″, explained the number one of MPS, adding “we are committed to accelerating further in order to be able to remunerate shareholders adequately”.
Solid capital position
As of March 31, 2024 the Group net worth and attributable to third parties amounted to 10.3 billion euros, an increase of 329 million compared to 31 December 2023, mainly due to the profit achieved in the quarter. Compared to 31 March 2023, the net equity of the Group and attributable to third parties increased by 2.2 billion, almost entirely attributable to the profit for the 2023 financial year.
As regards the capital ratios, as of 31 March 2024 the CET1 capital ratio stood at 17.9% (compared to 18.1% on 31 December 2023) and the Total capital ratio it was equal to 21.3% (compared to 21.6% on 31 December 2023). The same pro forma ratios, calculated by including the profit of the first quarter and considering the pro quota deduction of the 2024 dividend, equal to 50% of the profit before tax
of taxes, would stand at 18.2% and 21.6% respectively
“The Cet1 shows who we are at the top of the banking sector“, explained the bank's number one, adding “we started off great this year, with a net profit of 333 million and a strong operating performance”.
