Banca Monte dei Paschi di Siena (BMPS) Q4 2024 earnings summary

Executive summary

• Net profit for 2024 was €1,951 million, up 16.9% year-on-year, with Q4 net profit at €385 million, driven by strong core business revenues, fee growth, and effective cost management.

• Gross operating profit increased 10.8% year-on-year to €2,165 million, with a cost/income ratio improvement to 46% from 49%.

• Core revenues rose 5.7% year-on-year to €3,821 million, supported by net interest income and fees.

• Wealth management and advisory fees grew 19% year-on-year; commercial savings volumes increased by over €9 billion.

• Proposed dividend of €1,083 million (€0.86/share), equating to a 14% yield, the highest among peers.

Financial highlights

• Net interest income for 2024 was €2,356 million, up 2.8% year-on-year.

• Net fee and commission income for the year was €1,465.3 million, up 10.8% year-on-year.

• Total commercial savings at €167.2 billion, up 5.8% year-on-year, with strong Q4 growth.

• Net customer loans grew 0.9% quarter-over-quarter in Q4, outperforming the market.

• Operating costs for 2024 were €1,869 million, up 1.4% year-on-year, with non-HR costs down 3.5%.

Outlook and guidance

• Net interest income expected to decrease in 2025 due to interest rate scenario, partially offset by improved mix and spread management.

• Fee income projected to rise above 2024 levels, driven by wealth management focus.

• Costs expected to increase slightly, mainly due to technology investments and labor contract impact.

• Cost of risk anticipated to be lower than 2024, leveraging improved credit processes.

• CET1 ratio fully loaded targeted above 18.5% for 2025, with stable dividend ambition.