The board of directors of Mps resolved on Monday 7 to withdraw the powers of the chief executive officer Guido Bastianini and removed him from the position of general manager. The decision was taken unanimously by the board, underlines a note from the bank. The Treasury – 64% shareholder of the Sienese bank since the first state bailout in 2017 (the recapitalization of 8.1 billion, of which 5.4 public money) – has chosen as successor to the head of the institute Luigi Lovaglio, 66-year-old banker of long course with a career entirely internal to Unicredit, of which he led the Polish subsidiary Bank Pekao, to then land at the head of Creval, of which he successfully oversaw the capital increase and restructuring up to the takeover bid for Agricole credit.
–
The 2021 budget
Bastianini leaves after having presented to the board a net profit for the whole of 2021 of 310 million euros, the best result the bank has achieved since 2015 and one of the best in the last decade in which the Sienese institute has scored a total of 23, 5 billion euros of losses, specified in the note on the accounts. Last year closed with a loss of 1.69 billion euros. In addition to the 2021 financial statements to be approved, the agenda of the board meeting chaired by Patrizia Grieco, supplemented on Wednesday, precisely provided for a corporate governance check on the CEO and general manager.
–
The lack of assets and the talks with the DgComp
Compared to the shortage of assets that in the 2020 budget was expected at the end of 2021 at 1.5 billion euros, the situation improved, given that no capital shortfalls were recorded at the end of the year. The problems have not been overcome: at the end of 2022 the estimated shortage of 150 million, which will rise to 500 million in the first quarter of 2023 also due to some regulatory changes in the budget. But there is another temporary shortfall that emerges from the balance sheet note starting from 2022, relating to another important parameter, the Mrel (i.e. the liabilities subject to bail in to absorb losses in the event of failure and restore capital ratios). For this reason, the Single Resolution Board has been asking for a monthly monitoring report since January. In light of these elements, taking into account the significant improvements recorded by the group during 2021 in terms of capital and risk reduction, as well as the discussions held up to now with the authorities, it is believed that the capital shortfall could be overcome through a transaction. of capital strengthening on a stand alone basis, subject to approval by DG Comp of the new business plan 2022 – 2026. Which is still pending. In this regard, the financial director Domenico Sica on the conference call said that MPS’s dialogue with the European Union is proceeding in a climate of collaboration, and we will promptly update the market once concrete steps are taken.
–
Co-optation
Lovaglio was co-opted to the board, thanks to the position vacated by the Treasury executive, Olga Cuccurullo, and received the powers of chief executive officer and appointed general manager. The advice, written in a note, came unanimously to the conclusion that Dr. Luigi Lovaglio, by virtue of his significant experience also at an international level, combined with his in-depth knowledge of the Italian banking sector, is the most suitable profile to cover the role of chief executive officer and general manager of the bank.
–
The clash in the council
Bastianini will remain in the council as a simple administrator, and legal repercussions against the council’s decision are already expected. The removal of Bastianini was not motivated by the bank, even if by indiscretions it was motivated by the loss of the fiduciary relationship with the board of directors. It would have been the Treasury to discourage him, during a meeting held about two weeks ago with the general manager, Alessandro Rivera. The bank note released Wednesday afternoon specifies that the replacement is governed by a succession plan adopted by the bank, with the involvement of the Appointments Committee and the Remuneration Committee and that the board of statutory auditors has approved the co-option. Lovaglio’s appointment will be subject to evaluation by the European Central Bank.
–
