Mps, profit beats estimates: "Ops on Mediobanca consistent with operation on Banca Generali"

MILAN – Mps closed the first quarter of the year with a profit of 413 million euros, up 24.2% compared to the same period of 2024 and higher than the consensus of analysts, which stood at 341 million. The fully loaded post Basel 4 Cet1 ratio capital ratio reached the record level of 19.6%, bringing the capital buffer to around 890 basis points compared to the tier 1 ratio requirement. "With the strong support of the

shareholders at the last meeting, Mps is continuing in line with the expected timing in the execution of the path towards the takeover bid on Mediobanca , whose industrial rationale is potentially

also consistent with the announced operation on Banca Generali ", we read in the commentary note on the data

As of March 31, Mps had revenues of 1,007 million euros, slightly down compared to 2024 (-0.5%), with the growth of net commissions (+8.9% to 397.9 million) and other financial management revenues (+24.7%) which almost entirely offset the expected contraction in interest margin (-7.5% to 543 million), penalized by the reduction in rates. The growth in commissions was driven by the wealth management and advisory component (+21% quarter and +15% year on year).

“The strength of the business model with the drive of a unique commercial network supports the continued growth of operating performance and profitability,” says Monte.

Operating expenses rose by 2.2% to 472.1 million, resulting in a 2.8% drop in gross profit, to 535.2 million, even though the cost/income ratio fell to 48%. Loan adjustments fell by 13.9% to 91 million, with a cost of risk of 45 basis points, allowing operating profit to appreciate by 0.8% to 447.7 million. Profit before taxes was 397.3 million, up 18.2%, while profit after taxes rose to 413.1 million, thanks to a positive contribution of 16 million mainly attributable to the revaluation of DTAs.

In terms of credit, Monte recorded growth in performing loans (+2.5% in the quarter and +0.7% on 2024), with a significant acceleration in mortgage loans to households (+36% quarter on quarter and more than tripled year on year) and double-digit growth in consumer credit (+23% on 2024). Total collections stood at approximately 167 billion euros, up over 5 billion compared to 2024. The stock of gross impaired loans fell to 3.6 billion, with a ratio of 4.4% on total loans, which fell to 2.3% net of provisions. The overall coverage of impaired loans rose

at 49.5%.