Financial
Board of Directors approves preliminary results as at 31 December 2017
Siena, 9 February 2018 – The Board of Directors of Banca Monte dei Paschi di Siena S.p.A. has reviewed and approved the results as at 31 December 2017.
- EUR 502 million net loss for the quarter, influenced by recovery costs connected with the long-term servicing agreement for the disposal of the bad loan platform for EUR 170 million and provisions for risks and charges for EUR 166 million
- Net interest income at EUR 415 million, impacted by reduced interests on non-performing exposures and by lower volumes and interest rates on new lending, partly offset by the lower cost of funding; commissions amount to EUR 363 million, up approx. 2% Q/Q thanks to the contribution by wealth management
- Operating costs at EUR 651 million, affected by seasonal components. Continuous progress in the implementation of the Restructuring Plan: 1,800 staff exits already completed by means of the Solidarity Fund (38% of the 2021 target), of which 1,200 on November 1st, and a total of 435 branches closed between January 2017 and January 2018 (c. 70% of the 2021 target) with, until now, a limited attrition rate (c. 5% of total funding related to the March 2017 branch closures) and expected economic benefits over the coming quarters
- Current accounts and deposits at c. EUR 62 billion, flat Q/Q (EUR +11 billion from 2016 year-end). Restructuring Plan 2019 target for increase in funding already reached, cost of funding continues to be reduced (average deposit rate down 12bps in the quarter)
- Main asset quality indicators (pro-forma for the EUR 24.2 billion portfolio to be disposed) are stable: gross NPE ratio at 21.4%, net NPE ratio at 12.0%. The securitisation process continues according to schedule: transfer of 95% of the mezzanine notes to Atlante II was carried out in January 2018; the rating agencies’ analysis of the portfolio is currently underway, following which a state guarantee (GACS) will be requested
- Transitional Common Equity Tier 1 at 14.8%, equal to c. EUR 9 billion. In January 2018 the issue of a subordinated Tier 2 bond for EUR 750 million was successfully completed, with requests exceeding the offer by 3.6 times
- Unencumbered Counterbalancing Capacity stable Q/Q (EUR 21 billion), 15.2% of total assets
