Banks

Mps profit rises to 3.04 billion, new plan on 27 February

CEO Lovaglio: 'Mediobanca will focus on Cib and private banking'. 2.6 billion in total dividends to shareholders

by Luca Davi

10 February 2026

3' min read

Translated by AI

Versione italiana

3' min read

Translated by AI

Versione italiana

Mps closed 2025 with a group net profit of €3.036bn, up from €1.95bn in the previous year, thanks in part to the contribution of the consolidation of Mediobanca in the final quarter of the year and after the negative effects of the 'ppa' (purchase price allocation). Net profit for Mps alone came to EUR 2.75bn, up 17.7% year-on-year net of tax effects, thus matching market expectations. Thanks to a capital structure at the top of the system, the bank gives shareholders a coupon of EUR 0.86, for a total dividend payout of over EUR 2.6 billion, with a dividend yield of 10%.

Growing revenues, despite rates

The bank led by Luigi Lovaglio reported total revenues of EUR 4.957bn, of which EUR 883m was attributable to Mediobanca. On a like-for-like basis, revenues came to €4.074bn, up 1% on 2024, confirming the overall resilience of the business despite the normalisation of the macro environment and rates. The scenario inevitably weighed on Mps' net interest income, which fell to EUR 2.182bn (-7.4% year-on-year).

The main driver of growth, in line with other Italian banks, was net commissions, which reached 1.586 billion euros on a like-for-like basis (+8.2%), thanks mainly to the contribution of wealth management and advisory, which recorded double-digit growth (+13.3%), strengthening the revenue mix.

Stable costs, deteriorated loans down

On the cost side, operating expenses amounted to EUR 1.885 billion, up 0.8% despite the impact of the renewal of the national contract, with a stable cost/income ratio at 46%.

The improvement in credit quality continued: the stock of impaired loans fell to EUR 2.9bn, the Gross Npe ratio fell to 3.5% (from 4.5% in 2024) and the cost of risk fell to 40 bps, down from 53 bps a year earlier, thanks to lower impaired flows and higher recoveries.

Shareholders EUR 0.86 per share

From a capital perspective, the bank remains at the top level of the system. Mediobanca's fully loaded post-acquisition Cet1 ratio stands at 16.2%, with a buffer of about 720 basis points above regulatory requirements. In terms of shareholder remuneration, the Board of Directors announced over EUR 2.6 billion in dividends, amounting to EUR 0.86 per share, with a dividend yield of around 10% based on stock market prices, supported by the excess capital accumulated during the year.

The new plan on 27 February

As far as the Mediobanca transaction is concerned, the economic contribution in 2025 remains limited to the fourth quarter, while the balance sheet effects are consolidated from 30 September. The group confirmed that the business plan of the business combination will be presented on 27 February, a key moment to understand the new operating structure, the real synergies of the operation and the profitability targets.

CEO Lovaglio: "Mediobanca will focus on Cib and private banking"

"We are accelerating the integration process with Mediobanca, moving towards a specialised operating business model that reinforces the value of the brands, capabilities and talents of both organisations, with Mediobanca as a legal entity focused on corporate & investment banking and high-end private banking activities, embarking on a very ambitious path of growth and development," says Mps' CEO Luigi Lovaglio in a conference call with analysts. The manager confirms "that the structure of our group will be fully aligned with our industrial project to maximise value creation and the level of integration". For Lovaglio 'the 700 million synergies' with Mediobanca are confirmed 'with potential for further improvement'.

"The future of Mediobanca? The board of directors has not yet made any final decisions'

'As far as the reorganisation' of Mediobanca is concerned, 'we will focus on creating value and maximising the level of return for investors and industrial synergies' and the integration between the two banks, according to the manager's expectations, should be completed by the end of the year. However, on the fate of Mediobanca there are still some unknowns. "I have to postpone it to our guidelines, which will be finalised in the coming weeks," said Mps CEO Luigi Lovaglio, when asked by an analyst about Mediobanca's fate after rumours of a possible delisting. "The board of directors has not yet taken all the final decisions so I ask you to be patient and wait for the business plan."

On banker outflows 'actions to hold them back'

And on the subject of the outflow of private bankers from Mediobanca, Lovaglio explained, "actions have already been put in place to retain the best talent, which is fundamental to our business, and further initiatives will be put in place to retain them, the matter is now perfectly under control," Lovaglio assured analysts during the conference call. "I am confident that Mediobanca's top management has taken all the necessary actions to reverse this trend."