Banca Monte dei Paschi di Siena S.p.A.

MPS said first-half 2026 net profit was more than EUR 1.1 billion, with second-quarter net profit above EUR 600 million and more than 20% higher than Q1. Net operating profit exceeded EUR 1 billion in the quarter and EUR 2 billion in the first half; quarterly gross operating profit was almost EUR 1.2 billion, up 8.7% quarter-on-quarter and 11.4% year-on-year. First-half revenues rose 4.1% year-on-year, operating costs declined 0.7%, and the cost-to-income ratio improved to 43% in the half and 42% in the quarter. Net interest income was approximately EUR 2.1 billion in the first half and EUR 1.06 billion in Q2; quarterly fees were EUR 617 million, up 8.4% quarter-on-quarter and 9% year-on-year, and first-half fees were almost EUR 1.3 billion, up 3.6% year-on-year. Customer financial assets reached EUR 300 billion, customer loans reached EUR 151 billion, and indirect funding reached EUR 193 billion. Fully loaded CET1 increased to 16.3% and liquidity was strong with LCR at 169% and NSFR at 122%. Management raised 2026 profit before tax guidance to EUR 3.6 billion and said costs should be roughly in line year-on-year overall, with seasonality in Q4 and cost of risk in line with guidance.

Luigi Lovaglio framed the quarter as evidence of a “transformational journey,” emphasizing that the bank is now generating industrial-scale benefits from the Mediobanca combination. His tone was highly confident and strategic: he argued the combined group has greater diversification, stronger franchise value, and more optionality than a standalone MPS. He repeatedly stressed that preserving the bank’s integrity matters, rejecting fragmentation and saying the best path is the one that maximizes long-term value for shareholders and the economy.

Andrea Maffezzoni focused on balance sheet strength, capital, and flexibility. He highlighted fully loaded CET1 of 16.3%, a liquidity coverage ratio of 169%, an NSFR of 122%, and noted that around EUR 4 billion of the Generali stake is goodwill currently deducted, with the rest carrying EUR 6.9 billion at a 250% risk weight. On capital distribution, he said the CET1 appetite is 13% and that an extraordinary dividend would depend on the strategic-options review; on timing, an AGM can be called in 30 days and he said the bank is on time for a potential distribution if that path is chosen. He also said DTA utilization was around EUR 300 million in the first half versus a roughly EUR 500 million annual guide, and it may accelerate because the underlying business is strong.

Analysts pressed management on strategic options, including a possible Generali stake sale or in-kind distribution, the possibility of an interim or extraordinary dividend, Banco BPM, and whether there could be other combinations. Lovaglio declined to specify a transaction perimeter, but said the board is focused on the option that creates the most value while preserving the franchise’s integrity; he also said there is currently no transaction under discussion with Banco BPM. On the Generali stake, he called it a “nice-to-have” and said any decision would consider value, capital, regulatory implications, market conditions, and industrial strategy. On fees and trading, management said Q2 fees included some exceptional CIB transactions but believes the broader fee trend remains positive, while trading was strong in Q1 and Q2 and should still contribute in coming quarters.