Banca Monte dei Paschi di Siena (BMPS) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 reached EUR 413 million, up 24.2% year-over-year and 7.3% quarter-over-quarter, driven by strong fee and commission growth, commercial momentum, and cost optimization.

• Fully loaded CET1 ratio rose to a record 19.6%, with a Tier 1 buffer of around 890 bps, among the highest in Europe.

• The bank is advancing its public exchange offer for Mediobanca, aiming to create Italy's third major financial institution, with strong shareholder support and expected regulatory approvals by June or July.

• Commercial performance was robust: total commercial savings up over EUR 5 billion year-over-year, wealth management gross inflows up 22%, new retail mortgages more than tripled, and consumer finance flows up 23%.

• Total revenues were EUR 1,007 million, nearly flat year-over-year but up 1.1% sequentially, as higher fees offset lower net interest income.

Financial highlights

• Net interest income was EUR 543 million, down 7.5% year-over-year, but net fee and commission income rose 8.9% to EUR 398 million, driven by wealth management and advisory.

• Operating costs were EUR 472 million, down 1% quarter-over-quarter but up 2.2% year-over-year, mainly due to higher personnel costs.

• Cost/income ratio improved to 47%, with a target path below 47%.

• Cost of risk improved to 46 bps, down from 54 bps in Q1 2024, with loan loss provisions down 13.9% year-over-year.

• Gross NPE ratio at 4.4%, net NPE ratio at 2.3%, and NPE coverage at 49.5%.

Outlook and guidance

• 2025 pre-tax profit is expected to be higher year-over-year, with further growth anticipated in 2026, exceeding business plan targets.

• Fee income is expected to maintain or slightly exceed Q1 pace for the full year, with some seasonality in Q3.

• Net interest income for 2026 projected to be stable or increasing compared to 2025, supported by positive loan dynamics.

• Cost of risk expected to continue decreasing, supporting profitability.

• The Mediobanca Exchange Offer is progressing on schedule, with regulatory approvals anticipated by June/July and subsequent launch of the offer period.