Q3 2024 Banca Monte dei Paschi di Siena SpA Earnings Call Transcript
Key Points
- 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.
- The bank successfully finalized the sale of a EUR300 million NPEs portfolio, positively impacting its financial results.
- Gross operating profit increased by 14% year-on-year, driven by strong operating performance and effective cost management.
- The bank's common equity Tier 1 ratio stands at a solid 18.3%, positioning it at the top of the banking sector.
- Wealth management fees grew by 20% year-on-year, contributing significantly to the bank's revenue growth.
- Total net loans decreased by 2.1% compared to the year-end, reflecting weaker demand in a high-interest rate environment.
- Operating costs increased by 2.5% year-on-year, primarily due to the impact of labor contract renewals.
- The bank's net interest income is expected to decrease in the fourth quarter due to lower interest rates.
- The NPE stock showed a slight increase quarter-on-quarter, indicating ongoing challenges in managing non-performing exposures.
- Despite strong performance, the bank's guidance for 2024 remains unchanged, suggesting potential limitations in exceeding targets.
Good morning, everybody. Welcome to Monte Paschi third-quarter and nine-month result presentation. Today, we are pleased to present a very solid set of results confirming our capability to grow quarter by quarter with an excellent operational performance, generating organic capital and the accruing dividend crossing already EUR800 million after the first nine-month.
Moreover, just yesterday, we finalized the sale of about EUR300 million NPEs portfolio and its economic impact is already reflected in the results.
Let's start with some key achievement. Almost EUR1.6 billion net profit after nine months plus 68% compared with the previous year with a strong contribution of EUR407 million of the third quarter.
Crossing EUR1.6 billion, the gross operating profit up 14% compared to the previous year, driven by strong operating performance, combined by the growing revenues and effective cost management. Healthy quality of the revenues with fees and commission in the nine
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