Banca Monte dei Paschi di Siena (BMPS) Q2 2025 earnings summary

Executive summary

• Net profit for Q2 2025 reached €479 million, up 15.7% quarter-on-quarter; H1 2025 net profit totaled €892 million, a 21.4% year-over-year increase, driven by strong commercial activity and higher net fee income.

• Fully loaded CET1 ratio at 19.6%, among the highest in the sector, with a capital buffer of 840 bps over Tier 1 requirements.

• Asset quality improved, with cost of risk down to 43 bps and gross NPE stock reduced to €3.1 billion after a €0.3 billion portfolio sale.

• Commercial momentum continued, with performing loans at €65.1 billion (+2.4% QoQ, +4.9% YTD) and total funding at €171 billion (+€4 billion in Q2).

• Announced and launched a public offer for Mediobanca, aiming to create a leading competitive force in Italian banking.

Financial highlights

• Total revenues for H1 2025 were €2,054 million, up 1.1% year-over-year, with net fee and commission income up 9.1% and other banking income up 32.2%.

• Net interest income for H1 2025 was €1,094 million, down 6.7% year-over-year, but up 1.5% quarter-on-quarter in Q2.

• Operating expenses rose 2.0% year-over-year to €943 million, mainly due to higher HR costs from a renewed labor agreement.

• Loan loss provisions for H1 2025 were €175 million, down from €204 million in H1 2024.

• Pre-tax profit for H1 2025 was €857 million, up €151 million year-over-year.

Outlook and guidance

• 2025 pre-tax profit guidance raised to well above €1.5 billion, reflecting strong commercial and economic performance.

• Cost of risk guidance for 2025 confirmed at 43 bps, with continued focus on asset quality and operational efficiency.

• Payout ratio anticipated to increase to 100% in 2025, with potential for earlier implementation.

• Net interest income guidance confirmed as a single-digit decrease for the year, with stabilization expected in 2026.

• 2025 stress test results confirmed strong resilience and sustainable capital generation, placing the group among the top in Italy and Europe for capitalization.