A capital increase of 2.5 billion euros, 4 thousand voluntary exits, a return to the distribution of dividends from 2025 and a pre-tax profit of 909 million in 2026. These are some of the elements of Mps’s industrial plan for 2026, presented today to the financial market. The capital increase of Banca Monte dei Paschi di Siena has the assured support of the Mef, the Ministry of Economy and Finance, which, with its participation of 64.23%, will underwrite it pro-rata. After the green light from the ECB and the DG Comp of the European Commission, it will be the turn of the shareholders, with an extraordinary assembly in September, they will have to give the green light to the recapitalization.
The increase will allow a strengthening of the capital position, with the fully loaded Cet1, one of the capitalization ratios, which will stand at 14.2% in 2024 and 15.4% in 2026. In addition to the 4 thousand voluntary exits through the Fund of Solidarity, the reduction of 150 branches is expected, of which 100 by 2024, which will bring the total to approximately 1,218.
The new plan, commented Luigi Lovaglio, CEO of Mps, will allow the bank “to restart from its roots, from the strength of the brand, from the talent of the people and from its vocation as a commercial bank. We will work to relaunch the business to serve the families and businesses through a consolidated territorial network “. Another strong point will be Widiba, the group’s online bank, “a resource with great potential that positions us among the main operators in terms of innovation and digitalisation in the country’s banking system”.
With the plan, called ‘Clear and simple commercial bank’, Mps aims to strengthen its role as a commercial bank, with an increase in the range of financing products for households, in particular with regard to consumer credit and mortgages. , a new commercial proposition for small and medium-sized enterprises, an expansion of the customer base focused on the household and SME segments and a strengthening of the digital strategy through a further enhancement of the products and of the internet and mobile banking offer. For the relaunch of the commercial platform, additional investments will be dedicated to support growth for an amount of 500 million over the period of the plan.
The plan also aims at enhancing the role of advisor for the management of household savings, with the aim of reaching the full commercial potential in wealth management through the partnership with Anima, continuing the path in bancassurance, developed in partnership with Axa and to enhance Widiba, for which investments of over 30 million are planned.
To support the achievement of the plan’s objectives, the institution launches a new organization. The Chief Commercial Officer division will be divided into three divisions: Retail, Corporate and Private and Large Corporate & Investment Banking. The implementation of the strategy also involves “management through an approach based on factual elements and the experience gained with extraordinary legal risks” which are a legacy of the bank. For Lovaglio “we have the necessary coverage. The provisions for these risks are more than adequate”.
Lastly, a reduction in the stock of non-performing loans of 1.3 billion is foreseen over the period of the plan, from the current 4.1 billion to 2.8 billion in 2026, of which 0.8 billion of disposals in progress whose completion is expected in the second half of the year.