2023-05-09 07:52:26
The Italian bank Monte dei Paschi di Siena (MPS), the oldest in the world, posted in the first quarter a net profit above expectations, of 235.7 million euros, driven by the rise in interest rates.
This result, published on Tuesday, far exceeds the consensus of Factset analysts who expected 120 million euros.
Revenues rose 11.8% to 878.9 million euros in the first quarter, a result once more above analysts’ expectations, who had forecast 828 million euros.
Net interest income jumped 56.6% to 504.5 million euros, in a context of rising market rates.
Conversely, commissions fell by 10.2% to 331.7 million euros.
Monte dei Paschi had completed a capital increase of 2.5 billion euros in November, aimed at strengthening its equity and financing its 2022-2026 strategic plan.
The stock of gross bad debts amounted to 3.3 billion euros in the first quarter, a drop of more than 17% over one year.
Operating costs fell by 13.8% to 464.6 million euros, thanks to savings on personnel costs.
More than 4,000 employees left the Siena bank on December 1, ie 20% of its workforce, as part of voluntary departures which should generate savings of more than 300 million euros this year.
The cost-income ratio fell to 52.9% from 68.6% a year earlier, allowing the bank to already exceed its planned target for 2024.
On the verge of a resounding bankruptcy, MPS had to be bailed out in 2017, to the tune of 5.4 billion euros, by the Italian State which became its main shareholder, with a 64% share.
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