Because the securities of the banks (primarily MPS) were sparkling on the stock market on May 4th. The upcoming tax rule. The effects on Mps. And on a potential merger of Monte (with Unicredit?). Facts, numbers, analyzes and scenarios
Sparkling credit institutions in Piazza Affari – in particular Monte dei Paschi di Siena (Mps) – for a tax law in progress that actually facilitates a Monte wedding (with Unicredit?). Here are all the details.
BECAUSE MPS GROWS IN THE STOCK EXCHANGE
Banks (in particular Mps) are positive today on the stock market and are affected by the prospects of some measures that could be introduced by the Sostegni bis decree with the aim of facilitating aggregations between institutions. These are changes to the weight of the Dta, the deferred taxes to be transformed into tax credits: the percentage to calculate the amount in the context of a merger rises from 2% to 3% with respect to the total assets of the smaller banking entity 'involved in the merger. Consequently, the 'treasures' for aggregators would increase, which would have one more reason to go hunting for banks to acquire. In addition, the tax credit is extended until June 2022: there is more time to organize, therefore
HOW DO BANKS (NOT ONLY MPS) DO IN THE STOCK EXCHANGE
The effects of the measures are felt above all on Banca Monte dei Paschi, which – at 2 pm on May 4 – earns 4.8% on the Milan Stock Exchange and is the best of the banking stocks together with Banco di Desio and Brianza (+ 4%). Shopping day also for Banco Bpm (+ 1.2%), Unicredit (+ 0.6%) and Intesa Sanpaolo (+ 0.9%), which starting tomorrow will show the market the accounts of the first quarter of 2021.
EXCHANGES ON BANKS
The number of trades was also intense with 4 million shares already changed hands against an average of 2.4 million shares in an entire session in the last month. The purchases arrive the day after the circulation of the drafts of the Sostegni bis decree, being studied by the Draghi government, with the aim of strengthening the rules on incentives for aggregations between credit institutions.
WHAT THE REGULATION PROVIDES FOR IN THE SUPPORT DECREE
In detail, the transformation of the DTAs into tax credits is envisaged for a further six months, including among the facilitated aggregations, therefore, also those resolved until June 30, 2022 (currently the deadline is December 31, 2021). Not only. The limit of convertible DTAs is raised from 2% to 3% of the total assets of the minor subject involved in the merger.
HERE ARE THE EFFECTS FOR MPS
What does this legislative and fiscal perspective mean – in concrete – for Mps? "If approved – explains an Equita report – the standard would provide a further boost to the consolidation process in the sector, in particular supporting a solution for MPS (which has Dta potentially subject to conversion for 3.8 billion euros), with times which, however, could be longer than initially assumed ".
ALL TAX BENEFITS FOR UNICREDIT IF MARRIES MPS
According to analysts' calculations, in the event of a marriage between UniCredit and the Rocca Salimbeni institute, for example, "the benefit from the conversion of the DTAs would amount to 3.4 billion (about 1.1 billion more than the current law) , with an impact on Cet1 of the 'combined entity' estimated at approximately 90 basis points (compared to the previous 60 basis points) "
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/mps-dta-unicredit/ on Tue, 04 May 2021 12:48:16 +0000.