Banca Monte dei Paschi di Siena (BMPS) Q4 2025 earnings summary

Executive summary

• The group reported strong standalone and combined results for Q4 and full year 2025, with combined net profit reaching €3.036 billion before PPA effects and standalone net profit at €2.75 billion, up 17.7% year-over-year, driven by strong fee income and operating performance.

• The integration of Monte Paschi and Mediobanca is progressing rapidly, targeting €700 million in annual synergies and establishing a diversified, resilient banking platform.

• The combined group is positioned as a leading force in Italian banking, offering one of the highest dividend yields in Europe at 10%.

• A new business plan focused on value creation and updated targets will be presented on February 27th.

• Dividend of over €2.6 billion (€0.86 per share) proposed, subject to approvals.

Financial highlights

• Full year 2025 combined group net profit reached €3.036 billion before PPA, with standalone net profit at €2.75 billion, up 17.7% year-over-year, excluding positive net tax.

• Q4 2025 standalone net profit was €1,384 million, up 18.5% from Q4 2024, excluding positive net tax.

• Net operating profit for 2025 was €1.86 billion, up 6.4% year-over-year; Q4 net operating profit was €472 million, up 15.3% year-over-year.

• Gross operating profit for FY25 was €2.189 billion (+1.1% y/y); cost/income ratio stable at 46%.

• Net interest income for FY25 was €2.182 billion, down 7.4% year-over-year, but stabilized in Q4.

• Fees and commission income for 2025 was €1.586 billion, up 8.2% year-over-year, with wealth management and advisory fees up 13.3%.

Outlook and guidance

• The group expects continued momentum into 2026, with acceleration in commercial dynamics and solid growth in fees and commissions.

• Net interest income is expected to remain stable or slightly positive in 2026.

• The business plan, including updated targets and integration details, will be presented on February 27th.

• Integration plan approval targeted for February, pending ECB authorization.