BMPS: New Capital Increase Paves the Way for Future Privatisation
On November 4, 2022, Banca Monte dei Paschi di Siena SpA (BMPS or the Bank) successfully completed a capital increase of EUR 2.5 billion. DBRS Morningstar considers this provides the bank with sufficient funding to execute their current strategic plan.BMPS reported a EUR 360 million net loss for 9M 2022 compared to a profit of EUR 388 million in 9M 2021. This mainly resulted from a one-off charge of EUR 925 million to finance over 4,000 early retirements which will start in December 2022.
“We expect revenues to continue to benefit from higher interest rates and operating expenses to reduce following the voluntary retirement scheme put in place in Q3 2022,” said Arnaud Journois, Vice President, European Financial Institutions. “We also expect legal risks to continue to reduce over the medium term and the cost of risk to remain under control given the further de-risking. Finally, we anticipate a successful execution of the strategic plan should support efforts to stabilise the Bank and ultimately facilitate its privatisation.”
DBRS Morningstar is a global credit ratings business with 700 employees in eight offices globally. DBRS and Morningstar Credit Ratings are committed to empowering investor success, serving the market through leading-edge technology and raising the bar for the industry.
Together, we are the world’s fourth largest credit ratings agency and a market leader in Canada, the U.S. and Europe in multiple asset classes. We rate more than 2,600 issuers and 54,000 securities worldwide and are driven to bring more clarity, diversity and responsiveness to the ratings process. Our approach and size provide the agility to respond to customers’ needs, while being large enough to provide the necessary expertise and resources. For more details visit us at dbrs.com.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.