in 2024 the Corriere.it dividend will return

«Mps is back and in excellent shape». The CEO Luigi Lovaglio presented the accounts for the first quarter test, numbers that exceeded estimates with a profit of 236 million, — “equal to a third of the target in the 2024 plan” — accelerating compared to 10 million in the same period of 2022. But also up by 51.3% from 156 million in the previous quarter. Monte extends the distances with the consensus that stopped at 122 million. After Unicredit, Intesa Sanpaolo and Banco Bpm, Monte also closes the first glimpse of the year of momentum. “Today, with the first quarter, we bring data on what could be our profitability and return for shareholders starting this year,” said the banker. The rally on the eve of the bank in Piazza Affari is therefore confirmed after the quarterly.

The Treasury shareholder with 64.2%

The stock marked an increase of 3.05% today to 2.23 euros at the opening. Then it fell on the realizations triggered by yesterday’s earnings, when the share was up 5.8%. Movements also triggered by the hypothesis that the Treasury, a shareholder with 64.2%, could choose the path of a gradual sale of the bank’s shares on the market as part of the Italian state’s disengagement plan with Europe. In the background, potential banking mergers – with Unicredit, Banco Bpm or Bper – do not yet appear immediate. Banca Mps, adds Lovaglio, is now able to generate value for all stakeholders and it is time for an “adequate evaluation” of the Sienese bank. Lovaglio underlined that for the cost/income ratio that fell to 53%, the bank is ahead of the business plan which estimated a ratio of 57% by 2026.

The push of the interest margin

Revenues grow to 879 million, an increase of 11.8% not only compared to the same period of the previous year but also of 4.8% quarter on quarter, driven not only by the interest margin (+1.2%) but also from net commissions (+7.3%). The boost in interest rates allowed the interest margin to grow, year on year, by 56.6%, to 505 million euro. The gross operating profit rises to 414 million. Operating costs decreased in the first quarter after the departure of over 4 thousand employees. Loans are on the rise, non-performing loans fall to 2.1%, the Cet1 capital ratio inclusive of profits rises to 14.9%. Strong growth in gross operating income of 414 million.

Liquidity

During the presentation, the bank’s top management indicated that part of the available liquidity will be used to repay the ECB’s TLTROs: 11 billion in June and another 3 billion in September. Banca Mps has an Lcr liquidity ratio (it is based on the ratio between the amount of safety liquidity held by banks and their short-term cash flows, defined as the expected cash outflows during a 30-day stress period) greater than 210% and over the horizon of the plan, confirms Lovaglio with the CFO Andrea Maffezzoni, it will have to drop to the expected target of 160%.

Targets for 2026 more than achievable

In the coming quarters, Banca Mps will be able to replicate the performance of the first quarter, Lovaglio indicates in his presentation to analysts, and the plan’s targets for 2026 “are more than achievable”. The institute, adds Lovaglio, is now able to generate value for all stakeholders and it is time for an “adequate evaluation” of the Sienese bank. The CEO then underlined how the petitum of disputes was stable at the end of the quarter compared to the end of 2022 at a total of 4.1 billion (2.2 billion out-of-court settlements).