Nationalized in 2017, MPS Bank, considered the world’s oldest bank, beat analysts’ expectations in the first three quarters of the year. The positive results are the result of a protracted restructuring of the former Italian bank that was in crisis.
Italian crisis bank Monte dei Paschi di Siena (MPS) has returned to profitability. MPS Bank, which was nationalized in 2017 and is considered the oldest bank in the world, closed the first three quarters of 2023 with a net profit of 929 million euros. In the corresponding period of 2022, the financial institution reported a loss of 334 million euros. The results were higher than analysts’ expectations.
In the third quarter alone, the bank reported profits of 310 million euros. MPS revenues rose 22.9 percent to €2.8 billion in the first three quarters. The positive results came as a result of a lengthy restructuring process of the former Crisis Bank. “The results of the first nine months confirm strong growth in profitability and the continued ability to generate capital in a sustainable manner,” the bank said on Wednesday.
MPS also wants to avoid the special Italian tax
Like other Italian banks, the financial institution decided to avoid paying the special tax with which the government in Rome wants to partially eliminate the “excess profits” of banks in the country as a result of high interest rates. The bank said that to this end, the management wants to place 312.7 million euros in the capital reserve.
This amount is intended to serve as a buffer against future losses and may not be distributed to shareholders in the form of dividends or share repurchases. The institute relies on a similar provision in the law. The amount is 2.5 times the tax that the bank had to pay.
The credit institution – whose roots go back to the 15th century – has been controlled by the Italian Ministry of Economic Affairs with a 64.23 percent stake since a 2017 government bailout. The Italian state wants to divest its majority stake in the bank next year. (Abba)
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