A wave of out-of-court requests for 1.8 billion euros and a smaller profit. The semi-annual numbers of Monte Paschi di Siena were not liked by the stock market, with the stock yesterday losing 6.74% to 41 cents per share. The mission of the managing director of Mps, Luigi Lovaglio, is not easy: he must put the accounts in order to find a betrothed at the bank and allow the Mef, shareholder with 64.2%, to get out of the capital as required by the Europe which, among other things, has granted more time than the 2021 deadline.
Yesterday, Lovaglio said that the final approval of the ECB to the capital increase should arrive before September 15, the date of calling the shareholders’ meeting which will in turn have to approve the 2.5 billion increase (vital for the application of the 2022-2026 plan) and will also put on the agenda the grouping of Monte’s shares in the ratio of 100 to 1 as well as a series of amendments to the bylaws. While the Mef has already guaranteed its pro-rata participation, the consortium of banks that will guarantee the increase with Santander, Barclays, Société Générale and Stifel Europe Bank AG has expanded, joining BofA, Citigroup, Credit Suisse and Mediobanca. An enlargement that “testifies to the interest on the market for the bank,” said the CFO Andrea Maffezzoni.
Lovaglio for his part makes it known that it will be “impossible to stop our determination”, but in any case the institute’s recovery process will not be short and it is practically impossible for a sale to be reached before the new government takes office. And, with the center-right coalition leading in the polls, it is possible that to close the game there may be a government led by Giorgia Meloni, the leader of the far right party of the parliamentary arc called to decide the destinies of what once was it was the red bank par excellence.
What will be will be seen after September 25, meanwhile there are the numbers: Mps closed the first half of the year with a net profit of 27.2 million euros, of which 18 made in the second quarter, down by ’86, 5% compared to 202 million in the same period of 2021. The decline is due to the decline in revenues (-2.5% to 1.52 billion), commissions (-2.5% to 728 million) and market instability. But also to the higher adjustments on loans (+ 38% to 225 million) and higher taxes. The interest margin, on the other hand, grew to 660 million (+ 12.8%).
Unexpected damage claims for 1.8 billion have sprung up from the accounts, delivered on behalf of various investors by the consultancy firm Martingale Risk. Lovaglio defined them as “unfounded” and “so dubious as to hardly justify provisions”. However, the provision for risks was increased by 78 million due to the increase in litigation for financial information, which rose from 1.9 to 3.7 billion.
Mps also announced that it had sold a package of 917.5 million of impaired loans (to Amco, Illimity and Intrum), with a 25% reduction in the stock of non-performing loans in the portfolio. Lovaglio cited the agreement as an important piece of the plan, which is paired with the full-bodied plan of 3,500 voluntary exits which last Thursday also received the go-ahead from the unions.