Banks

Mps, profit above estimates at 1.37 billion

In Q1 2026 the new business plan will take into account the acquisition of Mediobanca

by Finance Review

7 November 2025

Il gruppo Monte dei Paschi di Siena chiude i primi nove mesi del 2025 superando le aspettative

3' min read

Translated by AI

Versione italiana

Key points

Numbers
Member Remuneration
The impact of Mediobanca
Lovaglio: "Founding moment"
The forecast

3' min read

Translated by AI

Versione italiana

Mps closed the first nine months of the year with a net profit of €1,366 million, down 12.7 per cent on the same period in 2024. Net of tax effects - 2024 had enjoyed tax benefits of EUR 470 million compared to EUR 78 million this year - the result was up 17.5 per cent. In the third quarter, profit rose 16.5 per cent to EUR 474 million, beating analysts' expectations of EUR 366 million.

The Sienese banking group then announces that it will present its new business plan in the first quarter of 2026, with the fallout of the acquisition of Mediobanca.

The numbers

As at 30 September, Mps posted revenues of €3,054m, broadly stable compared to the same period of the previous year (+0.5%), with growth in net fee and commission income (+8.5%) and other financial income (+35%) offsetting the slowdown in net interest income (-7.4%). Q3 2025 revenues of 1 billion were down 4.5% quarter-on-quarter, impacted by the seasonality of the period.

Operating expenses rose 1.4% to 1,411 million euro, mainly due to the effects of the renewal of the banking collective agreement on personnel expenses, partially offset by the efficient management of other administrative expenses. These trends resulted in a stable gross operating result at 1,643 million euro, with the third quarter contributing 532 million euro, down from 576 million euro in the previous quarter. Adjustments to loans fell to 254 million euro in the nine months from 300 million euro in 2024, including 79 million euro in the third quarter.

The net operating profit rose from EUR 1,339m to EUR 1,389m. As regards impaired loans, gross loans accounted for 3.7% of the loan portfolio, while net loans amounted to 2%. Total impaired loans to customers amounted to €4.4bn, of which €1.2bn came from Mediobanca, net of which gross exposure fell from €3.5bn in June 2025 to €3.2bn (€3.1bn after the recent finalisation of the sale of a €0.1bn package.

Net inflows stood at EUR 2.1 billion. As a result of Mediobanca's contribution, total funding rose to €357.6 billion (+€4 billion on a like-for-like basis on 30th June 2025), total commercial funding to €290.6 billion (+€3 billion on a like-for-like basis), direct funding to €165.2 billion (+2.5% on June), while loans to customers amounted to €140.7 billion, essentially stable net of the contribution from Piazzetta Cuccia.

Remuneration to Members

Mps promises to allocate all of its profit to dividends, thanks to the availability of a large capital buffer, amounting to 770 points of Cet1 ratio, compared to the minimum requirements imposed by the Bce. This is what is stated in the note on the results of the Sienese institution. After the conclusion of the opas on Mediobanca, Monte still has a fully loaded Cet 1 capital ratio of 16.9% (compared to 19.6% as at 30 June 2025), while the fully loaded total capital ratio is 19.3% (compared to 21.8% as at 30 June 2025) and 20.5% as at 31 December 2024). "These values," the note explains, "do not include the profits for the period, assuming the dividend pay-out of up to 100% of the Mps group's net profit."

The impact of Mediobanca

Thanks to the acquisition of Mediobanca, Mps creates 'a new competitive force' that presents itself as 'the third player in the Italian banking market', with a capacity to generate EUR 8 billion in revenues and EUR 3 billion in adjusted net profit. The market share in loans, the slides presenting the nine-month results state, is 8%, thanks to €125 billion in net loans to customers, while total commercial funding is €291 billion.

Lovaglio: "Founding moment"

"This is a founding moment for Mps, in September we successfully completed the acquisition of Mediobanca, a strategic move in which we have always believed". This was said by Mps CEO Luigi Lovaglio, in a conference call with analysts. The strong adhesion to the Opas on Piazzetta Cuccia 'underlines the industrial strength and long-term value of this union both from our core shareholders and from Italian and international institutional investors'.

'This,' added Lovaglio, 'is a combination that generates value from a financial, strategic and commercial point of view and accelerates growth and value creation. Our union with Mediobanca, with over 20 working groups in place, is well structured, and is proceeding with the utmost rigour and discipline'. The Mps CEO said he was pleased to "begin working closely" with the new top management of Piazzetta Cuccia, "who will be fundamental in ensuring that we can reach new heights as part of our project".

The forecast

Lovaglio went on to say that for 2025 'we expect new pre-tax profit guidance to exceed EUR 1.6 billion'. The CET1 ratio is expected to exceed 16% at the end of the year, taking into account high shareholder remuneration.