#MPS #profits #rise #million
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MPS closed the first quarter of 2024 with a profit of 333 million euros, up 41.2% compared to the same period of 2023. The result is better than the 281 million expected, on average, by the consensus of analysts. As of March 31, the group achieved total revenues of 1,013 million euros, an increase of 15.2% compared to the same period of the previous year.
«This dynamic – states a note from the group – is mainly attributable to the growth of the primary intermediation margin, which is increasing both in the interest margin component (+16.4%) and in net commissions (+10.1 %)”.
The Sienese institution’s first quarter revenues grew by 20 million euros compared to the previous quarter driven by net commissions (+8.9%), which more than offset the trend in the interest margin (-2.8%). The interest margin at 31 March amounted to 587 million euros, up compared to the same period of 2023 (+16.4%). This growth was mainly driven by the greater contribution of relations with central banks, hedging derivatives and the securities portfolio. The Sienese institution confirmed its strong capital solidity, with a fully loaded Cet1 ratio at 18.2% pro forma.
Loans to customers stood at 78.4 billion euros, up by 1.6 billion compared to 31 December 2023. Performing loans, equal to 69.3 billion euros, increased by 0.8%. compared to 31 December 2023. MPS’s total impaired customer loans, as of 31 March 2024, amounted to 3.6 billion in terms of gross exposure, a slight increase compared to both 31 December 2023 (+0.2 billion) and compared to 31 March 2023 (+0.3 billion).
The Group’s net exposure in terms of impaired customer loans stood at 1.8 billion, essentially stable compared to the levels recorded at 31 December 2023 and growing compared to 31 March 2023 (when it stood at 1.6 billion euros) . As of March 31, 2024, the coverage percentage of impaired loans stood at 49.5%, up compared to December 31, 2023 (equal to 49.1%).
