In This Article:
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Net Profit: EUR1.6 billion after nine months, up 68% year-on-year.
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Third Quarter Net Profit: EUR407 million, a 5.7% increase from the previous quarter.
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Gross Operating Profit: EUR1.645 billion after nine months, up 13.7% year-on-year.
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Operating Costs: EUR1.4 billion, up 2.5% year-on-year.
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Net Interest Income: EUR1.768 billion for nine months, up 4.7% year-on-year.
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Fees and Commission Income: EUR1.1 billion after nine months, up 10.7% year-on-year.
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Cost-to-Income Ratio: Reduced to 46% from 48% last year.
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Gross NPE Ratio: 4.5%, net NPE ratio at 2.4%.
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Common Equity Tier 1 Ratio: 18.3% fully loaded.
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Commercial Savings: Increased by EUR5.8 billion since the beginning of the year.
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Liquidity Coverage Ratio: 165%.
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Net Stable Funding Ratio: 133%.
Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Banca Monte dei Paschi di Siena (BMDPF) reported a net profit of EUR1.6 billion for the first nine months, a 68% increase compared to the previous year.
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The bank successfully finalized the sale of a EUR300 million NPEs portfolio, positively impacting its financial results.
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Gross operating profit increased by 14% year-on-year, driven by strong operating performance and effective cost management.
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The bank's common equity Tier 1 ratio stands at a solid 18.3%, positioning it at the top of the banking sector.
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Wealth management fees grew by 20% year-on-year, contributing significantly to the bank's revenue growth.
Negative Points
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Total net loans decreased by 2.1% compared to the year-end, reflecting weaker demand in a high-interest rate environment.
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Operating costs increased by 2.5% year-on-year, primarily due to the impact of labor contract renewals.
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The bank's net interest income is expected to decrease in the fourth quarter due to lower interest rates.
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The NPE stock showed a slight increase quarter-on-quarter, indicating ongoing challenges in managing non-performing exposures.
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Despite strong performance, the bank's guidance for 2024 remains unchanged, suggesting potential limitations in exceeding targets.
Q & A Highlights
Q: Your nine-month '24 results seem to indicate you are running ahead of your full-year guidance. Why leave the guidance unchanged, and what are the expected dynamics in Q4? A: We are already at EUR1.1 billion pre-tax profit and expect to cross our original target of EUR1.3 billion. We anticipate the last quarter to be similar to the average of the previous three quarters. Regarding Anima, it's an interesting deal, but it's early to comment further.