Board approves results as at 31 march 2018

• Gross operating result at EUR 304 million (double the result of the fourth quarter of 2017)
• Key economic indicators improve significantly also vs. 1Q17: net operating result at EUR 166 million (vs. EUR -3 million) and profit before tax at EUR 111 million (vs. EUR -129 million)
• Net interest income increases by 1.6% Q/Q for the decreased cost of funding (average interest rates on deposits reduced by 10 basis points in the quarter with equal funding volumes) and fees and commissions up by c. 12%; costs reduced by c. 12%, in part due to the November 2017 headcount reduction
• Commercial lending* up by EUR 0.9 billion from the end of December 2017 thanks to 20% Q/Q increase in new mortgage lending
• NPE reduction continues:
  • Securitisation process completed: “investment grade” rating obtained on the entire senior tranche, exceeding restructuring plan expectations. GACS government guarantee on senior notes is expected over the coming weeks
  • Deconsolidation of the EUR 24.1 billion bad loan portfolio is confirmed by 30 June 2018
  • Sale process of EUR 2.6 – 3.0 billion small ticket and leasing bad loans, expected by the end of 2018, has begun
  • Sale of EUR 1.5 billion of unlikely-to-pay loans is currently underway, of which EUR 0.5 billion already sold or for which binding offers have been received by 30 April 2018
• Improvement of all the main asset quality indicators:
  • Cost of risk at 61 basis points
  • NPE coverage at 55.5% and bad loans coverage at 69.3% (net of the securitisation currently being finalised)
  • Default rate at 1.5% and cure rate at 5.4%
• Transitional Common Equity Tier 1: 14.4%, equal to c. EUR 8.9 billion, Total Capital ratio 15.8%

[*] Current accounts, mortgages and other forms of lending.

Siena, 11 May 2018 – Yesterday evening the Board of Directors of Banca Monte dei Paschi di Siena S.p.A. reviewed and approved the results as at 31 March 2018.

Learn more