Revenue and profitability increasing. The cost/income ratio (ratio between operating expenses and total revenues) fell to 45.6%
Monte dei Paschi di Siena announced its financial results for the first quarter of 2024.
MPS, revenues and profitability in 1Q 2024
In the quarter just ended, Monte dei Paschi di Siena achieved a primary intermediation margin equal to 952.3 million euros, an increase of 13.9% compared to the 836.2 million obtained in the first three months of the previous financial year. The interest margin it amounted to 587 million euros, up 16.4% compared to the 504.5 million in the 1st quarter of 2023. Management specified that the growth was mainly driven by the greater contribution of relations with central banks, hedging derivatives and the securities portfolio. In particular, in relations with central banks, a net benefit of 21 million euros was recognized as of 31 March 2024, compared to the net cost of 50 million euros in the corresponding period of 2023. The positive dynamics were partly offset by the higher cost of bond issues. THE total revenues they increased to 1.01 billion euros, up 15.2% compared to the same period of the previous year.
The net operating result it jumped to 444.3 million euros, compared to the 308.6 million recorded in the first three months of last year (+44%).
The cost/income ratio (ratio between operating expenses and total revenues) fell to 45.6%, compared to 48.5% at the beginning of the year.
Monte dei Paschi di Siena finished the 1st quarter of 2024 with a Net income of 332.7 million euros, compared to the 235.7 million recorded in the same period last year.
MPS, balance sheet aggregates at the end of March 2024
As of March 31, 2024 i financing to customers of the institute stood at 78.4 billion euros, up compared to 31 December 2023 (+1.6 billion euros), mainly due to the increase in repurchase agreements (+one billion euros) and other financing (+0.4 million euros).
On the same date the gross impaired exposures they were equal to 3.6 billion euros, a slight increase compared to 31 December 2023 (+0.2 billion).
Also at the end of March 2024 thenet exposure in terms of impaired loans of the Sienese institute stood at 1.8 billion euros, substantially in line with the value of 31 December 2023 (1.8 billion) and up compared to 31 March 2023 (equal to 1.6 billion euros).
Consequently, at the end of March 2024 the ratio between gross impaired loans and customer loans was 4.5%.
On the same date, the coverage percentage of impaired loans stood at 49.5%, an increase compared to 31 December 2023, when it was 49.1%.
Banca MPS’s capital ratios at the end of March 2024
As regards the capital ratios, as of 31 March 2024 the Common Equity Tier 1 Ratio it stood at 17.9% (compared to 18.1% at the end of 2023), while the Total Capital Ratio was equal to 21.63%, which compares with the value of 21.6% recorded at the end of 2023.
Also at the end of March 2024 the MPS’s equity and attributable to third parties amounted to approximately 10.3 billion euros, an increase of 329 million euros compared to 31 December 2023 mainly due to the profit achieved in the quarter.
As of March 31, 2024 the securities business of the institute were equal to 18.2 billion euros, an increase compared to 31 December 2023 (+0.9 billion euros). especially due to the increase in financial assets held for trading (+one billion euros) in relation to market making activity on government bonds.
