Financial

Following the resignation of all Directors and Statutory Auditors in consideration of the completed precautionary recapitalisation process

  • Net income for the quarter at EUR 242 million, influenced by one-off components: positive impacts from burden-sharing measures (EUR 554 million), restructuring costs for the exit of 1,200 employees (EUR -280 million) and negative impact of the the FITD Voluntary Scheme intervention for Caricesena/Carismi/Carim (EUR -46 million)
  • Net interest income increases thanks to the reduced interests on subordinated bonds, whilst commissions are impacted by the reduced demand for loans, by the seasonal slowdown of Wealth Management product placement and by the sale of the merchant acquiring business
  • Operating costs continue to shrink, with benefits expected over the coming quarters: headcount reduction of 1,800 employees already completed by means of the Solidarity Fund (38% of the 2021 target), of which 1,200 on November 1st, and a total of 287 branches closed between January and November 2017 (48% of 2021 target)
  • Ongoing growth in customer time deposits and current accounts: EUR +1.6 billion vs. June and EUR +11 billion vs. 2016 year-end (end of 2019 target), with consequent rebalancing towards cheaper forms of funding
  • Unlikely-to-pay loans reduced in the quarter by EUR 1.1 billion gross (from EUR 13.5 billion to EUR 12.4 billion) and by EUR 0.7 billion net (from EUR 8.0 billion to EUR 7.3 billion); main asset quality indicators (pro-forma for the securitisation of EUR 26 billion bad loans) improve: gross NPE ratio at 19.4% (19.8% in June 2017), net NPE ratio at 11.3% (11.7% in June 2017)
  • Loan loss provisions at EUR 175 million, with ordinary provisions strongly reduced Q/Q
  • Transitional Common Equity Tier 1 at 15.2%, equal to EUR 9.6 billion
  • Unencumbered Counterbalancing Capacity at EUR 21.1 billion (EUR +1.3 billion Q/Q), 14.5% of total assets
  • Also in consideration of the resignation tendered today by all members of the Board of Directors and of the Board of Statutory Auditors, the Board resolved to convene the Shareholders’ Meeting in extraordinary and ordinary session on 18 December 2017, with an agenda which includes the covering of the Parent Company’s losses as at 30 September 2017

Siena, 7 November 2017 – The Board of Directors of Banca Monte dei Paschi di Siena S.p.A. has reviewed and approved the results as at 30 September 2017.

Full Press Release available as per attached

[1]  Fondo Interbancario di Tutela dei Depositi, the Italian Interbank Deposit Protection Fund.

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Last modified: 07/11/2017