Table of Contents:
Net profit and revenue growth
In the third quarter of 2024, MPS recorded a net profit of 406.7 million euros, an increase of 31% compared to the same period of the previous year. This result exceeded analysts’ expectations, who had expected a profit of 316.6 million. The Sienese bank’s revenues increased by 5.6% year-on-year, reaching 1.01 billion euros, well above the estimate of
946 million.
Interest margin and commissions
The interest margin showed a slight decrease of 1.6%, to 595.6 million euros, but it still exceeded expectations by 570 million. Commissions, on the other hand, registered a significant increase of 12%, reaching 356 million, compared to the 337.7 million expected. This positive trend was supported by an increase of 12.5% compared to the third quarter of the previous year, despite a slight decrease compared to the second quarter
.
Capital strength and management of non-performing loans
The capital strength of MPS improved further, with a fully loaded CET1 Ratio of 18.3%, including profit for the third quarter net of dividends. The bank maintained a payout ratio of 75%, an increase of 28 basis points compared to the previous quarter. In addition, total inflows have increased by 5.8 billion euros since the beginning of the year, with a particular focus on managed savings
.
Management of non-performing loans and cash
Over the nine months, MPS recorded a credit cost of 52 basis points, in line with forecasts. The bank has also finalized the sale of a package of non-performing loans with a gross value of about 300 million euros, the effects of which are already visible in the results. Currently, the stock of gross non-performing loans amounts to 3.6 billion euros, with a gross NPE ratio of 4.5% and net of 2.4%. The overall coverage of non-performing loans is 48.1%, evidencing prudent and careful management
.
Future Perspectives
With a solid liquidity position and an uncommitted counterbalancing capacity of 32 billion euros, MPS is in a favorable position to face future challenges. The impact of ECB funding on total liabilities fell to 7%, a significant improvement compared to the beginning of the year. The bank continues to work to optimize its capital structure and improve profitability, maintaining a strategic focus on wealth management and sustainable growth
.
