- Banca Monte Dei Paschi Di Siena Spa
- 06 August 2024 11:38:34
Source: Sharecast
The bank, formally known as Banca Monte dei Paschi di Siena, said it would give shareholders 75% of its pre-tax profit this year, up from an earlier payout ratio of 50%.
MPS reported a gross operating profit of €1.11bn for the first half of 2024, up 18% year-on-year, with net interest income rising 8.3% and net fee and commission income up 9.8%.
Net interest income was boosted by higher contributions from transactions with central banks, hedging derivatives and the securities portfolio, while net fee and commission income was helped by a strong performance in wealth management.
Net profit swelled to €827m from €383m the year before due to €457m in tax credits, surprising analysts who expected a slight decline on last year.
MPS, which is partly owned by the Italian government following multiple bailouts since 2009, said total revenues were 9.7% higher than last year at €2.03bn.
Looking ahead, the bank upgraded its new medium-term growth strategy, saying it now expects pre-tax profit to rise to €1.3bn in 2024 and €1.42bn by 2026, well ahead of the €705m and €909m guidance given its previous 2022-26 business plan.
In other news, Banca MPS is currently in discussions to offload MP Banque, according to comments made by chief executive Luigi Lovaglio in a call with analysts following the results.
The stock was up 6.4% at €4.62 by 1235 in Milan.