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Mps, quarterly profits at 521 million euro

Ceo Lovaglio: "Uncertainty is behind us, ahead with the integration with Mediobanca". The Generali share will remain under the new Piazzetta Cuccia

by L. D.

12 May 2026

(FILE) A file photo dated 23 March 2016 shows Banca Monte dei Paschi di Siena (BMPS or MPS) headquarters in Piazza Salimbeni, in Siena, Italy. According to media reports on 09 December 2016, the European Central Bank (ECB) has rejected Monte dei Paschi's request for more time to raise capital. ANSA/MATTIA SEDDA EPA

3' min read

Translated by AI

Versione italiana

3' min read

Translated by AI

Versione italiana

Mps closed the first quarter of 2026 with a net profit of 521 million euro, slightly higher than the 511 million euro expected by analysts. The result shows progress compared to the €413m recorded in Q1 2025, when Monte was not yet consolidating Mediobanca, but is down on the €692m recorded on a pro-forma basis, assuming the inclusion of Piazzetta Cuccia already in last year's scope.

The profit, a note explained, 'is supported by double-digit growth in operating performance' while, on a pro-forma basis, it 'does not benefit from positive tax effects'. Pre-tax profit rose to EUR 911 million, up 6.7% year-on-year and 15.6% compared to the fourth quarter.

In the quarter, revenues up

Beyond the last line of the balance sheet, which was penalised by the different tax treatment and accounting effects linked to the integration (the group returns to pay taxes on the quarter for €294m, whereas in 2025 it benefited from the positive effects linked to DTAs), the quarter showed good operational resilience: revenues rose to €1.96bn, up 2.9% year-on-year pro-forma and 3% compared to the previous quarter, supported by net interest income, up 1.9% quarter-on-quarter, and commissions, up 2.8%.

The wealth management and advisory component also accelerated, up 7.6%, while net operating income reached 947 million euro, up 3.4% year-on-year pro-forma and 9.5% quarter-on-quarter. On the efficiency front, cost/income fell to 44%, three points lower than the previous quarter, while the cost of risk remained under control at 42 basis points.

CEO Lovaglio: 'Uncertainty is behind us, ahead with the integration with Mediobanca'

"The message is simple, uncertainty is behind us, now the focus is on strategic execution" with "the integration with Mediobanca remaining central," Mps CEO Luigi Lovaglio said on the conference call. "After a strong quarter," Mps enters "the next phase with fully consolidated governance, aligned priorities and a strong focus on achieving objectives." The new board 'ensures continuity of leadership, while strengthening our competencies and operational capabilities'.

"The dynamics of the business are in line with the strategic trajectory outlined in the 2026-2030 business plan, while the integration process with Mediobanca continues, to complete the reorganisation in the group's five business areas and accelerate the creation of value for all stakeholders," the bank explained in the quarterly note.

"700 million synergies confirmed"

The manager reiterates the target for merger-related synergies. "We confirm the targets of 700 million synergies" for the integration with Mediobanca "by 2028". Of these, '30 per cent of the expected synergies are already guaranteed for 2026, supported by rigorous monitoring and execution', the banker adds.

"Generali? "Nice to have", share will remain under Mediobanca"

The integration between Mps and Mediobanca envisages "the incorporation of Mediobanca Premier's networks of financial advisors into Banca Widiba, which will adopt a new company name that will also include the Mediobanca brand", while "the shareholding held in Assicurazioni Generali will be held by the new 'Mediobanca S.p.A'", emphasised Mps' CEO Luigi Lovaglio in a conference call with analysts.

The message addressed to the market is clear and is in line with that already highlighted in the past. "Generali is something nice to have, a source of revenue that we count on and offers us other opportunities in terms of operational partnerships. It goes without saying that we consider all the opportunities that may arise in the market in terms of product offerings and partnerships, what is important is the creation of value, offering our clients the best product mix and generating sustainable results'.

The banker finally shies away from hypotheses linked to possible acceleration in the risiko. "We want to concentrate on completing the operation (with Mediobanca, ed.) ensuring that the synergies are realised and that they exceed the objectives we had set ourselves. At the current stage we are concentrating exclusively on the promises made to the market'.

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