MPS Stocks Surge as Profits Rise and Dividends Reach 950 Million

MP’S Stocks Soar After First Half 2024 Financial Report

MP’S stocks experienced a significant surge following the release of their financial results for the first half of 2024.
The financial performance from January to June showed a considerable increase in profits and revenues.
The industrial plan leading up to 2028 also forecasts a growth in pre-tax profits up to €1.657 billion in the final scheduled year.
Investments in new technologies amounting to around €500 million, along with specific actions to attract new talents by hiring approximately 800 young professionals, were highlighted as key points of the industrial strategy.

Additionally, Banca Monte dei Paschi di Siena plans to distribute dividends of over €950 million for the fiscal year 2024.
MP’S shares are trading at €4.62, marking a 6% rise at around 11:00 AM.

MP’S Surges with First Half Financial Results: A Closer Look

The Sienese bank concluded the first six months of 2024 with a “strengthening of the bank’s profitability,” as stated in the official release.
Here are some key results for the period:

• Net profit: €1.159 billion (+87.3% YoY), with €827 million in the second quarter, including a positive net tax effect of €457 million.
• Operating profit: €1.106 billion (+18% YoY).
• Net interest margin: €1.172 billion, +8.3% annually.
• CET1 Ratio Fully loaded: 18.1%.
• Operating costs: €925 million, +1.2% YoY.
• Cost/income: 46%.
• Total revenues: €2.031 billion, +9.7% compared to the same period last year.

MP’S highlighted that the growth was primarily driven by relationships with central banks, hedging derivatives, and securities portfolio.
As for the benefit from central banks, it amounted to €67 million as of June 30, 2024, compared to the net cost of €60 million in the first half of 2023.

The bank pointed out a higher cost of bond issuances due to increased reliance on the institutional market and the rising cost of commercial funding derived from higher deposit volumes and interest rates.

Updated MP’S Industrial Plan Leading to 2028

While presenting the industrial plan, the bank emphasized its focus on “business and technological innovation supported by an extensive investment plan, fully leveraging the talented resources of the bank, further enhancing business sustainability, strengthening the balance sheet, and concentrating on value distribution and creation for all MP’S stakeholders.”

Specifically, the financial targets by 2028 include:

• Continuously increasing profitability over time with pre-tax profit at €1.4 billion by 2026 and €1.7 billion by 2028.
• Improved cost of risk at 34 basis points by 2028, aiding in the growth of pre-tax profits.
• CET1 RATIO above 18%.
• Revenues reaching €3.8 billion by 2026 and €4.1 billion by 2028.
• Cost/income ratio at 50% in 2028, despite cost inflation pressures and investments in technology and human capital.

MP’S shares continue to perform positively at 11:30 AM, with gains exceeding 5%.