Sunday, June 23, 2024

MPS returns to dividends, profits at 2 billion. Lovaglio: “Like climbing a mountain with a heavy backpack”

Siena has achieved a profit of 2.052 billion euros for 2023, a significant improvement compared to the previous year’s loss of 205 million euros. This surpasses analysts’ estimates of 1.344 billion euros.

The board’s proposal is a dividend of 0.25 euros per share, totaling 315 million euros. For 2024, Mps aims to distribute 50% of net profits to shareholders.

The market has positively responded to these numbers, resulting in a 4.6% increase in stock value. CEO Lovaglio also mentioned potential deferred tax assets (DTA) worth 2.5 billion euros, contributing to future profits and potentially serving as a valuable resource in the case of mergers and acquisitions.

At the end of the year, the bank benefited from 466 million euros in net releases of provisions for risks and charges, as well as a positive net tax effect of 339 million euros, totaling 805 million euros. This has significantly reduced the overall legal risks, with the petitum amounting to approximately 890 million euros, excluding the case brought by Alken Funds, against which the bank also won on appeal last December.

Mps has demonstrated a resilient balance sheet, positioning itself at the forefront of the system and showing the ability to generate sustainable profitability. The CET 1 ratio fully loaded, a key indicator of capital strength, has increased to 18.1%, with an excess capital of about 3 billion euros.

Higher interest margins and increased revenues from administered savings have contributed to the overall positive financial performance, with total revenues reaching 993 million euros in the last quarter. In conclusion, Mps has undergone a significant turnaround, driven by talented individuals, discipline, and digital innovation.

The bank has revitalized its roots and heritage to support families and small and medium-sized enterprises, which are integral to its operations and success, laying the foundation for sustainable growth.

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