Banca Monte dei Paschi di Siena SpA is open to look at possible merger and acquisitions opportunities in Italy after the completion of its capital boost and a cost reduction plan.
(Bloomberg) — Banca Monte dei Paschi di Siena SpA is open to look at possible merger and acquisitions opportunities in Italy after the completion of its capital boost and a cost reduction plan.
The world-oldest bank “could look at all the opportunities that would arise in the consolidation process of the Italian banking industry,” as it is on track to reach a target of over €700 million ($768 million) net profit in 2024, Paschi said in response to questions from a shareholder ahead of its April 20 general meeting.
Paschi shares rose as much as 5% in Milan trading, giving the company a market value of €2.78 billion.
The remarks come as Chief Executive Officer Luigi Lovaglio is pressing ahead with a revamp including job cuts, simplification and a switch toward more profitable commercial businesses that will allow the government to comply with the European Union’s requirement to sell its 64% stake in the lender. In 2022 the bank raised €2.5 billion in fresh funds to strengthen capital and finance more than 4,000 job cuts, effective from Dec. 1.
Founded in 1472, Monte Paschi has undergone years of painful efforts to turn its business around. The bank was first bailed out by the Italian government in 2009. Since then, it’s struggled to return to profitability given limited room for maneuver under terms set by European authorities in exchange for approving its nationalization in 2017.
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