With the last “red” from 1.69 billionthe euro put today a budget 2020 the losses accumulated by MPS in the last 10 years amounted to 23.5 billion euros, in practice 6.5 million euros a day went up in smoke. Eight of the last ten years have closed with a minus sign in the last line of the income statement. Between 2011 and 2017, the bank, which capitalizes less than 1.4 billion on the stock market, requested 18.5 billion from the market in the form of capital increases, of which 5.4 provided by the state with the precautionary recapitalization of 2017. And now a new capital increase is in the works with the Treasury playing the main role. The ministry is in fact a 64% shareholder of the Sienese bank since 2017 but will have to sell the stake by 2021 by virtue of the agreements with Brussels.
Mps has been on the market for three years. No one has ever come forward and it is not surprising that much. In short, the MPS dossier is one of the hottest potatoes Mario Draghi he will be in your hands if he becomes prime minister. For months there has been talk of a possible intervention by Unicredit where Pier Carlo Padoan, who saved MPS when she was Minister of Economy, has become president. But the bank, now headed by Andrea Orcel, he must also deal with important foreign partners and will offer a bank only if the Treasury knows how to pack a nice gift with a lot of bow. Other hypotheses circulating and circulating are those of a merger with Banco Bpm and a US fund interest Apollo. Of course, no one does charitable works.
In the event that Mps fails to find a partner with whom to join it Italian state guaranteed “full support” to the pro-quota subscription of the acapital increase of 2.5 billion that the bank would have to carry out, the bank note reads on the 2020 results, recalling that the capital strengthening “discounts certain uncertainties as it requires the conclusion of the process already started for the evaluation and approval of Dg Comp and ECB “. “The next government will have to save a heritage of Siena and all of Italy such as Monte dei Paschi, protecting workers and savers“, Wrote the leader of the League in the evening, Matteo Salvini in a note. Brothers of Italy has presented a motion to ask the next executive to “agree with the European Commission on postponement of the privatization of Mps hoping for a context in which the share value of the banking sector corresponds more to reality and the general economic conditions in the recovery phase ”.
The origin of Mps’s misfortunes dates back to 2007 when the bank, led by Giuseppe Mussari (in those years also president of the ABI) bought the Antonveneta bank at very high prices. The authorization from the Bank of Italy bears the signature of the then governor Mario Draghi. Since then the accounts have begun to spiral into a downward spiral, also due to the use of accounting tricks such as the notorious derivatives “Alexandria” e “Santorini”.
The predicted loss recorded in 2020 it’s no surprise as evidenced by today’s performance of the stock on the stock exchange which closed with a – 0.1%. Above all, they weighed on the budget 1.3 billion in extraordinary costs, among which 984 million in provisions, largely to cope with claims for damages from former shareholders, and € 154 million in restructuring costs for the fourth-quarter redundancy incentives and for the Hydra operation. They also recorded 748 million in adjustments to loans, of which 348 million caused by the pandemic. The stock of net non-performing loans fell from 3.9 to 2.2 billion and the gross NPE ratio of 3.4% according to the new Eba criteria – and the 340 million devaluation of the value of deferred tax assets (Dta).
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