Monte Paschi’s Q4 profits exceed expectations

Published 06/02/2025, 10:20
© Reuters.

Investing.com -- Banca Monte dei Paschi di Siena SpA, an Italian banking institution, reported a fourth-quarter net income of €384.9 million ($400 million), surpassing the analysts’ projected profit of €262.8 million.

his strong performance is a positive development for CEO Luigi Lovaglio, who is aiming to acquire larger competitor Mediobanca (OTC:MDIBY) SpA.

The bank’s earnings for the last three months of the year are not directly comparable to the previous year’s figures, when the bank reported over €1.1 billion after releasing provisions for legal risks. The bank’s revenue during this period saw a slight increase from the previous year, driven by an uptick in income from fees.

Monte Paschi is strategically focusing on wealth management and advisory services to increase its income, as the benefits of high interest rates begin to wane.

This strategy appears to have been well-received by the market, with shares of Monte Paschi rising 2.3% at 9:34 am in Milan. This increase pushed the bank’s market value to €8.1 billion.

In a significant move last month, Monte Paschi launched an all-share offer to take over Mediobanca, a larger rival with a market capitalization exceeding €13 billion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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