Monte dei Paschi posts strong quarterly profit as Intesa bid looms
MPS beat Q2 profit forecasts and is studying alternatives to Intesa Sanpaolo's €36 billion takeover bid.
Italy's Monte dei Paschi di Siena (MPS) reported a better-than-expected quarterly profit on Friday, while confirming it is actively reviewing its strategic options in response to a takeover approach from larger rival Intesa Sanpaolo.
The bank, which was rescued by the state in 2017 and returned to private ownership in 2023-2024, has been a central figure in the recent consolidation of Italy's banking sector. It notably acquired the larger Mediobanca last year.
In June, Intesa Sanpaolo announced plans to launch a €36 billion ($41.5 billion) cash-and-share bid for MPS, turning the bank into a takeover target.
For the April-June period, MPS reported a net profit of €610 million, a 20% increase from the previous quarter and comfortably above the €543 million consensus estimate from analysts polled by the bank.
The lender said it is working with its advisers to examine alternatives to the Intesa bid, with the aim of serving the best interests of its stakeholders. It also highlighted its "strategic flexibility," citing a core capital ratio of 16.3% — nearly seven percentage points above regulatory minimums.