Mps? A pillar of the economy. Word of Mps. Gulp
The press release from Mps and the words of the bank's CEO, Guido Bastianini.
Bastianini (ad Mps) thus begins the conf call on the quarterly report: "Monte dei Paschi continues to be a pillar of the economy". Booom.
– Camilla Conti (@petunianelsole) November 4, 2021
After the failure of the negotiations between Mef and Unicredit, Monte dei Paschi started a review of the 2022-26 business plan and the review “could contain further elements of discontinuity with respect to what has already been assumed in view of the previous discussions with DG Comp”.
This was indicated by the Sienese bank led by Guido Bastianini ( not in excellent relations with the Treasury ) in yesterday's statement on the quarterly report, the third consecutive with the plus sign and closed with a net profit of 186 million which brings the result for the nine months to 388. millions, remarks Radiocor .
The review of the plan "is preparatory to a capital increase at market conditions to be carried out in 2022, in relation to which, on the basis of ongoing discussions, it is reasonable to expect the support of the reference shareholder", the press release reads of the institute controlled by the Mef.
Monte dei Paschi adds that a capital shortfall is no longer expected at the end of September 2022 and that possibly, based on some conditions, there could be one of 500 million as of January 1, 2023.
Monte dei Paschi, in the information provided at the request of Consob in the note on the quarterly report, explains that the zeroing of the expected shortfall at 12 months (previously a shortfall of 1.5 billion was expected) derives from the effects of the capital management actions already realized, from the evolution of capital and risk weighted assets and from the forecast that the updating of the internal models to the EBA guidelines will take place beyond the assessment horizon.
With regard to the structural solution envisaged for the bank, it is recalled that the negotiation between the Mef and UniCredit was interrupted – that is, it was wrecked due to Orcel's no to the Treasury's expectations – and that "currently access to the virtual data room is only allowed to Amco ". Furthermore, "having taken note of the current impermissibility of a 'structural solution', a preliminary dialogue was initiated with the reference shareholder who, in confirming the support for the Bank's activities, informed the management of contacts already made with DG Comp of the EU, aimed at an extension of the presence of the Mef in the bank's shareholding structure and the necessary capital initiatives that the Bank will have to assume.
In the scenario of capital increase, DG Comp and ECB should evaluate, as far as they are concerned, the intervention of the State on the basis of the stand alone viability of the parent company in the light of what will be indicated in the new business plan.
"It cannot be ruled out that in the context of this assessment, in principle, elements that are currently unforeseeable may arise that could affect the Parent Company's capital strengthening process and the structure and feasibility of a capital increase at market conditions" . In light of the proposal in the course of 2022 of the possible capital increase, even in the absence of debt securities issues in the course of 2021, a temporary breach of the Mrel requirements could occur on 1 January 2022. The overrun would be destined to be repaid at the time of the reported capital increase.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/mps-un-pilastro-delleconomia-parola-di-mps-gulp/ on Fri, 05 Nov 2021 14:02:41 +0000.