(Alliance News) - Banca Monte dei Paschi di Siena CEO Luigi Lovaglio has declared that 'uncertainty is behind us' and that the group's focus is now firmly on the integration with Mediobanca, following his reappointment at the helm of the institution after the April shareholders' meeting, Corriere della Sera reported on Wednesday.
The first quarter closed with a profit of EUR521 million, beating expectations of EUR429 million and up from EUR413 million in the same period of 2025, when MPS did not yet control Mediobanca. Pre-tax profit rose to EUR911 million, up 6.7% year-on-year and 16% compared to the fourth quarter, while revenues grew by 3% to EUR1.96 billion.
Lovaglio confirmed a 100% payout ratio for the current financial year, with dividends exceeding EUR2.6 billion, and guided for a 2026 pre-tax result of EUR3.5 billion, while also opening the door to a potential share buyback. Regarding synergies with Mediobanca, the manager confirmed EUR700 million by 2028, 30% of which is expected as early as 2026.
Following the merger, private banking, corporate and investment banking activities, and the Premier network will be folded into the new Mediobanca Spa, which will retain a 13% stake in Assicurazioni Generali. The Premier advisory networks will be integrated into Widiba under the Mediobanca brand. Lovaglio also explained that the group has already initiated talks with the ECB regarding the so-called 'Danish compromise' to reduce capital absorption.
On the insurance front, the CEO described Generali as 'great to have with us', noting that it contributes EUR130 million to the bottom line.
With the Axa agreement set to expire in 2027, Lovaglio stated that 'it would be nice to consider a form of operational collaboration' with Generali.
Regarding banking consolidation, with a potential tie-up with Banco BPM also in the background, the manager predicted new phases of M&A, highlighting the group's capital strength and value-generation capacity. MPS shares closed at EUR9.4, up 1.5%, after hitting an intraday high of 3.2%.
By Antonio Di Giorgio, Alliance News reporter
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