Banca Monte dei Paschi di Siena SpA (MPS) announced a first-quarter net income of €521 million, surpassing analyst consensus of €511 million. This strong performance, which was up from €413 million in Q1 2025, was attributed to the continued integration of Mediobanca SpA, which MPS acquired last year. CEO Luigi Lovaglio emphasized that the uncertainty surrounding the bank is now behind them and the focus is on strategic execution.
Revenue for the first quarter totaled €1.96 billion, exceeding forecasts of €1.92 billion. Mediobanca's contribution accounted for approximately €925 million of this revenue. Excluding Mediobanca, MPS's revenue still saw a 3% year-on-year increase, boosted by higher net fee and lending income, particularly from residential mortgages and consumer finance.
While the acquisition of Mediobanca proved decisive for the headline numbers, organic operations showed a decline in profitability, with continuing operations seeing a 26% drop excluding the deal. Barclays analysts noted that the results were primarily driven by MPS, while Mediobanca showed continued weakness in wealth management, although its private banking business improved in April. Despite this, the overall acquisition has been crucial for Monte dei Paschi's consolidation strategy in the Italian banking sector.
