Banca Monte dei Paschi di Siena is expected to raise 2.5 billion euros from the capital increase next year, as part of a new medium-term plan following the failure of the Italian government’s efforts to sell the bank to UniCredit SpA.
The funds from the fundraiser will be used for investments in technology, for restructuring costs and to meet current requirements from stress-tests, MPS said late Friday in a statement.
The new plan for 2026 replaces the one approved last December and submitted to the ECB and the European Union authorities, whose approval is a precondition for the new capital increase, MPS said.
Under the plan, the bank forecasts a cost / income ratio of less than 60% by 2024, and further reductions thereafter, and a capital adequacy ratio of more than 14% in 2024 and 17.5% in 2026 before dividends.
In the previous plan, I envisaged a capital adequacy of 12%.
The bank also aims at pre-tax profits of 700 million Euros in 2024, and return of tangible assets to 11% by 2026.
The plan depends on the commercial dynamics in net interest income and commissions, as well as on the savings of resources from a scheme of voluntary expenses.
The savings of 275 million Euros per year will be achieved from 2024, depending on the negotiations with the trade unions.
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Source From: Capital
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