MPS beats expectations, with profits of 1.1 billion (+25 per cent). Lovaglio: “We will exceed our targets”
The bank: ‘Intesa’s offer? It doesn’t pay enough; we’re against the fragmentation of the network’
Mps has closed the first half of the year with a net profit of over €1.1 billion, up 25.3 per cent on the same period in 2025, figures that reflect the inclusion of Mediobanca in its consolidated accounts.
In the second quarter alone, profit reached 610 million, representing an increase of 27.3 per cent and exceeding analysts’ expectations, which stood at around 540 million. The bank explains that this performance was driven by a further improvement in the ‘profitability of the core business’. Total revenue stood at 1.96 billion, representing a quarterly increase of 3 per cent. Net interest income rose to 1.036 billion, up 1.9 per cent compared with the end of 2025. Net commission income also rose, reaching 618 million, an increase of 2.8 per cent. The commission component was driven primarily by wealth management and advisory services, which recorded quarterly growth of 7.6 per cent. The fully loaded CET1 capital adequacy ratio rose to 16.3 per cent, ‘with a substantial capital buffer relative to regulatory requirements’, amounting to ‘approximately 680 basis points’, which ‘allows for a high degree of strategic flexibility’.
Mediobanca is worth half its revenue
The half-yearly figures highlight the significance of Mediobanca, which now accounts for almost half of the new group. In the quarter, Piazzetta Cuccia contributed 925 million to consolidated revenue of 1.96 billion, representing around 47 per cent of the total. It accounted for a similar proportion (456 million out of a total of 947) of the group’s net operating profit.
Lovaglio: ‘With Piazzetta Cuccia, we’ll exceed our targets’
Meanwhile, with talks with BancoBpm regarding a ‘merger of equals’ having broken down, the bank remains focused on the merger with Mediobanca. “Work on the integration of Mediobanca is proceeding according to plan, with completion expected in the fourth quarter,” confirms MPS in its quarterly report. “Our networks are working very well together and so, based on what we have seen, we can expect an improvement of €100 million compared with the original target” for synergies, adds Lovaglio during the earnings call. This provides “reasonable certainty that we will be able to exceed the targets set for 2026. “The clarity provided by the current results therefore allows us to raise our guidance for 2026 pre-tax profit to 3.6 billion,” says the manager.
At this stage, the possibility of paying an extraordinary dividend has not been ruled out: “It takes thirty days to convene the general meeting, so we are on schedule: we have plenty of time if we wish to make an extraordinary dividend distribution, should we decide to do so. In any case, a general meeting will be convened regarding the merger with Mediobanca and, based on our timetable, we expect this to take place in the first half of September.” The possibility that Banca Mps may decide to pay shareholders an interim dividend has been confirmed.
