Banca Monte dei Paschi di Siena (BMPS) Business Plan Update summary

Strategic vision, integration, and positioning

• The group is formed from the integration of BMPS and Mediobanca, aiming for sustainable value, profitable growth, and stakeholder benefits, leveraging complementary strengths across five business divisions.

• Achieved 86.3% ownership of Mediobanca, with integration underway, merger completion targeted by end-2026, and a merger plan to be presented in March 2025.

• The combined group is now Italy’s third-largest bank, with over 7 million clients, €8 billion in revenues, and more than 20,000 employees.

• Five business divisions—Retail & Commercial Banking, Consumer Finance, Asset Gathering & Wealth Management, Private Banking, and Corporate & Investment Banking—each have clear roles in value creation and international expansion.

• Iconic brands, omni-channel network, and digital transformation, including €1 billion IT investment, underpin resilience and growth.

Financial targets and capital management

• Business plan targets €9.5 billion in revenues, €3.7 billion net profit, €16 billion in cumulative dividends (100% payout), and €3 billion excess capital by 2030, maintaining a ~16% CET1 ratio.

• Operating income projected to grow from €7.6 billion (2025) to €9.5 billion (2030), with a 4.6% CAGR, and cost/income ratio to improve from 46% to 38%.

• Adjusted net profit is forecast to rise from €2.3–2.4 billion in 2025 to €3.7 billion in 2030, with adjusted ROTE at 18%.

• Asset quality set to improve, with gross NPE ratio declining to 2.2% and coverage rising to 56% by 2030; net NPE ratio targeted at 1%.

• Dividend policy is based on stated net income, including capital gains, with share buybacks and capital optimization considered for flexibility.

Business division and segment strategies

• Retail & Commercial Banking targets revenue growth from €2.5–2.6 billion, profit before tax from €0.7–1.1 billion, and customer loans from €66–82 billion by 2030, with digital engagement rising to 80%.

• Consumer Finance aims for revenues of €1.7 billion, profit before tax of €0.8 billion, and loans from €17–21 billion, expanding into Poland, Switzerland, and other international markets.

• Asset Gathering & Wealth Management expects revenues to rise from €1.5–2 billion, profit before tax from €0.8–1.2 billion, and TFAs from €142–185 billion by 2030.

• Private Banking and Corporate & Investment Banking are positioned for international growth, with private banking assets rising to €103.3 billion and CIB revenues to €1.3 billion by 2030.

• Principal investing, notably the Generali stake, is expected to provide stable, decorrelated earnings, with revenues growing from €0.5–0.8 billion.