Banca Monte dei Paschi di Siena (BMPS) Q1 2026 earnings summary

Executive summary

• Consolidated net profit for Q1 2026 reached €521 million, with pre-tax profit at €911 million, up 15.6% quarter-on-quarter and 6.7% year-on-year, reflecting strong operating performance, disciplined execution, and effective cost control.

• Gross operating profit exceeded €1.1 billion (+8.4% q/q), with revenues up 3% and costs down 3.1%, driving the cost/income ratio to 44%.

• Loans grew to €129 billion (+1.0% q/q, +5.2% y/y), supported by new mortgages and consumer credit, while funding base remained resilient.

• Asset quality improved with cost of risk at 42bps, gross NPE at €3.7 billion, gross NPE ratio at 2.5%, net NPE at 1.3%, and coverage at 50.6%.

• Mediobanca integration is progressing as planned, with strategic momentum and governance supporting transformation.

Financial highlights

• Net profit for Q1 2026 was €521 million, with profit before tax at €911 million, up 15.6% quarter-on-quarter and 6.7% year-on-year.

• Gross operating profit at €1,101 million (+8.4% q/q), net operating profit at €947 million (+9.5% q/q, +3.4% y/y), and cost/income ratio at 44%.

• Net interest income was €1,036 million (+1.9% q/q, flat y/y), with fee and commission income at €618 million (+2.8% q/q, -1.7% y/y).

• Loans reached €129 billion (+1.0% q/q, +5.2% y/y), direct funding stable at €106 billion, and indirect funding at €185 billion, up €12 billion since March 2025.

• Cost/income ratio improved to 43.8% from 46.5% at year-end 2025.

Outlook and guidance

• 2026 profit before tax guidance confirmed above €3.5 billion, supported by strong momentum and disciplined execution.

• Over 30% of target synergies from Mediobanca integration already secured for 2026; €700 million synergies targeted by 2028.

• Fee and commission trends expected to remain positive, with seasonality in Q3; dividend per share expected to remain broadly in line with current year.

• Integration costs expected at €300 million, mainly booked in the second half of the year.

• Loan demand may slow due to geopolitical uncertainty, but credit to households is expected to consolidate, supported by mortgages.