Banca Monte dei Paschi di Siena (BMPS) Business Plan Update summary

Strategic vision, acquisition, and integration progress

• The group is integrating BMPS and Mediobanca, aiming to become a leading diversified Italian bank serving over 7 million clients, with a focus on sustainable value creation and proven execution.

• Achieved 86.3% ownership of Mediobanca, with integration underway to unlock €700 million in synergies and a merger plan to be completed by end of 2026.

• The combined group is now Italy's third-largest bank by market cap, with €8 billion in revenues, over 7 million clients, and more than 20,000 employees.

• Integration is on schedule, with phase one completed, target operating model defined, and synergies already visible across revenues, costs, and funding.

• Merger subject to regulatory and shareholder approvals, with shares listed on Euronext Milan and subject to Italian law.

Business model and division highlights

• Operates across five divisions: Retail & Commercial Banking, Consumer Finance, Asset Gathering & Wealth Management, Private Banking, and Corporate & Investment Banking, each with clear roles in value creation.

• Retail & Commercial Banking targets revenue growth from €2.5–2.6 billion, profit before tax from €0.7–1.1 billion, and customer loans from €66–82 billion by 2030, with digital engagement rising to 80% of retail clients.

• Consumer Finance aims for revenues of €1.7 billion, profit before tax of €0.8 billion, and expansion into Poland, Switzerland, and other international markets.

• Asset Gathering & Wealth Management expects revenues to rise from €1.5–2 billion, profit before tax from €0.8–1.2 billion, and TFAs from €142–185 billion by 2030.

• Private Banking and CIB are positioned for international expansion, with private banking assets growing from €77–103.3 billion and CIB revenues from €1–1.3 billion.

Financial targets and capital management

• Operating income is projected to grow from €7.6 billion in 2025 to €9.5 billion in 2030 (4.6% CAGR), with a cost-income ratio improving from 46% to 38%.

• Adjusted net profit is expected to rise from €2.3–2.4 billion in 2025 to €3.7 billion in 2030, with an adjusted ROTE of 18% and a stable CET1 ratio around 16%.

• €16 billion in cumulative distributions is planned, based on a 100% payout ratio, with €3 billion excess capital for strategic flexibility.

• Asset quality will improve, with gross NPE ratio decreasing from 2.9% to 2.2% and NPE coverage rising to 56% by 2030.

• Funding and liquidity remain robust, with LCR at 155% and NSFR at 123% by 2030.