MPS does better than expected, net profit at 333 million euros. Revenues growing driven by commissions

MPS closed the first quarter of 2024 with a profit of 333 million euros, up 41.2% compared to the same period of 2023. The bank announced this in a note. The result is better than the 281 million expected, on average, by the analysts’ consensus.

In the note published before the opening of the markets, practically together with that of Unicredit which also beat expectations, the Sienese bank explains that “the profit for the period pertaining to the Parent Company amounts to 333 million euros as of 31 March 2024, against a profit of 236 million euros achieved at 31 March 2023 and 1,123 million euros achieved in the previous quarter”.

Among other data, the group achieved overall revenues of 1.013 billion euros, an increase of 15.2% compared to the same period of the previous year. Total collections grew by 3.8 billion euros in the quarter, with a positive trend in both deposits and indirect collections, thanks – states a note – to the continuous development of commercial activity.

“We do not plan to use our capital to acquire banking assets, but we know that we have a very strong capital position and therefore with the new plan we could use a different approach regarding the dividend policy,” said the CEO of Mps, Luigi Lovaglio, responding to an analyst who asked him about the pay-out and whether with the current level of capital the institution could evaluate the purchase of banking assets. “We know that we have to use our excess capital”, added Lovaglio and if necessary we could “try to seize opportunities with our existing partnerships”.

The CEO himself explained that “revenue growth” in the first quarter of the year “exceeded the record of 1 billion. Commissions drove revenue growth in the quarter”.