Thursday, January 28, 2016

Mps collapses on the stock market: -8%. Then accounts: return to profit and decrease in non-performing loans – Il Sole 24 Ore

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This entry was posted on January 28, 2016 at 17:10.
The last change is the January 28, 2016 at 20:55.

The Monte dei Paschi back in profit to 390 million after five consecutive years closed in red. Preliminary results approved by the board of the bank – a week early “for transparency to the market”, explained President Massimo Tononi in Il Sole 24 Ore – mark a significant turnaround in the midst of another storm, the Stock Exchange, which saw the title still losing 7.9 percent.

One of the aspects in some ways paradoxical, there is also the effect of the derivative Alexandria. Consob has specifically asked to be recognized “in sales closed”, in fact inducing a shift to low budget account of the contributions of 500 million derived, until recently set aside as reserves. Without this extraordinary item, the 2015 Monte would still closed in the red, to 110 million, even though the blame – in this case – would be another extraordinary voice, that is, 130 million of expenses charged to the bank to participate the bailout of Banca Marche, Banca Etruria, and Carife CariChieti. Net of all these games, the bank would in any case reached the waterline, with about 20 million accumulated profits in one year.

Operations

Among the data of 2015, also net of Alexandria, there is a gross operating profit of 1.87 billion, up 27% on 2014 due to the current management. Who sees a net interest income amounted to 2.26 billion (+ 5.4% year on year thanks to the repayment of bonds Monti) and commissions to 1.81 billion (+ 6.6%). Continued reduction in operating costs (2.63 billion, down 4.6%): “In the past 4 years, the reduction in costs was approximately 800 million euro,” notes the bank in a statement. And a few lines further down also points out that in the same period the bank made writedowns of 15.7 billion; of these, 2 billion were made last year. Also because the mountain of suffering began, albeit slightly, to fall: at the end of year, in fact, impaired loans fell to 46.9 billion stake, or 600 million less than in September. Excluding the sale of 1 billion of loans made in December, the quarterly change in the stock of gross impaired loans amounted to about 400 million (about 1.2 billion in the third ‘quarter’), which is the lowest value of the last eight quarters. The degree of coverage remains stable. During the year also it continued cleaning accounts. Value adjustments amounted to 2 billion (down 11% on 2014).

Between September and December by the equity point of view the situation has changed little: the January 1 Mps now had a coefficient Cet 1 fully loaded 11.7%, well above the 10.2% target set by European Central Bank.

In addition to the accounts, the eyes are naturally focused on potential mergers. Currently they see Ubi to assume the role of partners, even more so after the Banca Popolare di Milano has parade assumption of a complicated marriage to three. According to some sources refer surveyed dall’Adn Kronos, Ubi would still “willing to work” on the option of a two-aggregation with the Monte dei Paschi, although “we would check all the technical aspects of a marriage which would mean a significant effort. ” In comparison with the government, it would be evident, however, as an aggregate for MPS is “a priority for the whole system.”

MPS has also been a “positive trend current operations with gross operating income up 27% (again, excluding accounting in ‘balances closed” operation called Alexandria) “and an” improvement in credit quality , with reduction in the stock of gross and net impaired loans in the fourth quarter. ” In this regard, the bank at the end of 2015 a slight decrease in impaired loans at an altitude of 46.9 billion euro, a decrease of 600 million compared to September. Excluding the sale of about 1 billion euro realized in December 2015, the quarterly change in the stock of gross impaired loans amounted to about 0.4 billion euro (1.2 billion euro in the third quarter), recording the value lowest in the last eight quarters. The coverage of impaired loans remained stable qoq despite the sale of receivables with high coverage

According to the Institute also, there is a “strong capital position with Common Equity Tier 1 capital and 12% liquidity ‘largely positive, the highest levels of the last four years, and adapted to absorb the effects on the collection arising from the recent volatility of the situation’ ‘.



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