Euro News Source
No Result
View All Result
Monday, June 27, 2022
  • Login
  • Home
  • Latest News
    • All Europe
    • United Kingdom
      • England
      • Ireland
      • Scotland
      • Wales
    • France
    • Germany
    • Italy
    • Spain
    • Austria
    • Belgium
    • Netherlands
    • Switzerland
  • Economics
  • Politics
  • Health
  • Sports
  • Videosnew
Subscribe
Euro News Source
  • Home
  • Latest News
    • All Europe
    • United Kingdom
      • England
      • Ireland
      • Scotland
      • Wales
    • France
    • Germany
    • Italy
    • Spain
    • Austria
    • Belgium
    • Netherlands
    • Switzerland
  • Economics
  • Politics
  • Health
  • Sports
  • Videosnew
No Result
View All Result
Euro News Source
No Result
View All Result
Home News Italy

Monte dei Paschi plans to raise 2.5 billion euros for latest turnaround plan

by Francesco Mazzagatti
June 23, 2022
in Italy
A A
0
152
SHARES
1.9k
VIEWS
FacebookTwitterLinkedin

LONDON (Reuters) -Monte dei Paschi di Siena (MPS) said it would tap taxpayers and investors for 2.5 billion euros ($2.6 billion) in cash to fund its latest turnaround efforts as the Italian state-owned bank seeks to triple its net profit in the next three years.

FILE PHOTO: People are seen inside a Monte dei Paschi di Siena bank in Rome, Italy August 16, 2018. REUTERS/Max Rossi

Italy owns 64% of the world’s oldest lender after a 2017 bailout that cost taxpayers 5.4 billion euros. Rome will fund the latest capital raising based on the size of its stake, pumping in another 1.6 billion euros.

Unveiling a new strategy to 2026 on Thursday under new Chief Executive Luigi Lovaglio, MPS said it had secured a preliminary agreement with a group of banks to mop up unsold shares in the cash call.

By 0739 GMT shares in MPS were down 0.6%, outperforming a 1.4% drop in Italy’s blue-chip index.

Under its new plan, MPS said it would close 11% of its branches and lay off around 4,000 staff on a voluntary basis, with a one-off charge of 800 million euros.

That will help it to lower costs to 60% of its income in 2024 from 71% last year.

Lovaglio, a veteran Italian banker who took the helm at MPS in February, also intends to streamline the bank’s structure by merging subsidiaries MPS Capital Services, MPS Leasing & Factoring and the IT services unit into the group.

MPS will shed 1.3 billion euro in bad loans by 2026, starting with an 800 million euro disposal it expects to complete later this year.

The Tuscan lender said it had secured a pre-underwriting accord with BofA, Citigroup, Credit Suisse and Mediobanca to act as joint global coordinators of the new share issue.

It expects to hold a shareholder meeting to approve the share issue when its board meets for first-half results, once Italy finalises talks with European Union competition authorities over new restructuring commitments for the bank.

Italy failed to meet an end-2021 deadline to return MPS to private hands due to the collapse of sale talks with UniCredit.

It is now negotiating an extension of the deadline with European Union competition authorities and new turnaround goals.

Sources have told Reuters Italy has reached an informal agreement with the EU over a new years-long re-privatisation deadline and the new targets, with a formal agreement set to follow in the coming weeks.

Projecting a 2% annual revenue growth on average over the plan’s life, MPS said it targeted one billion euros in net income in 2024, up from 310 million euro last year, falling to 833 million in 2026.

It expects to be able to resume paying dividends from 2025.

($1 = 0.9464 euros)

Reporting by Valentina Za, editing by Giulia Segreti, Jason Neely and Jane Merriman

Source: Reuters

Tags: DEIFinancials (Legacy)MONTEPASCHIPLAN

Related Posts

Italy

Swiss university’s academic award to Mussolini will not be revoked

June 25, 2022
Italy

Five countries seek to delay EU fossil fuel car phase-out

June 24, 2022
Italy

Eni postpones IPO of energy transition unit due to market conditions

June 23, 2022
Italy

Apple and Android phones hacked by Italian spyware, Google says

June 23, 2022
Italy

Dire Italian drought worsening, breaking records – water authority

June 23, 2022
Italy

Italy’s Monte dei Paschi seeks 2.5 billion euros for latest relaunch plan

June 23, 2022
  • Trending
  • Comments
  • Latest

Woman livestreams fatal stabbing of half-sister

October 25, 2021

Prison sentences for protestors who pray outside abortion clinics in Spain

February 4, 2022

Investigation opened into porn video recorded on altar of Flemish church

November 3, 2021

Irish couple, 23 and 26, ‘carry out vicious knife attack in Sydney’

October 14, 2021
Freedom Day

Freedom Day

0
Fire Accident

Fire Accident In Iraq

0
Scotland

Advice from the Scotland Prime Minister

0
Brexiteers

Brexiteers Should Thank The EU

0

Glastonbury 2022: Six of the best bits you may well have skipped

June 27, 2022

NHS: Patients questioned to journey for hospital remedy in NHS ‘final push’ to ‘eliminate two-year waiters’

June 27, 2022

Justice Secretary Dominic Raab claims felony barrister strikes are ‘regrettable’ as 1st walkout commences

June 27, 2022

‘Taking innocence from children’: Two-thirds of youngsters uncovered to damaging on the net articles – but only 16% report it

June 27, 2022

Recent Posts

Glastonbury 2022: Six of the best bits you may well have skipped

June 27, 2022

NHS: Patients questioned to journey for hospital remedy in NHS ‘final push’ to ‘eliminate two-year waiters’

June 27, 2022

Justice Secretary Dominic Raab claims felony barrister strikes are ‘regrettable’ as 1st walkout commences

June 27, 2022

‘Taking innocence from children’: Two-thirds of youngsters uncovered to damaging on the net articles – but only 16% report it

June 27, 2022

Bono reveals he has secret half-brother he only found out about as an adult

June 27, 2022

Manchester United reject Barcelona’s endeavor for a Harry Maguire-Frenkie de Jong swap offer – Paper Spherical

June 26, 2022

Recent Posts

  • Challenges of AI in chest radiography
  • Glastonbury 2022: Six of the best bits you may well have skipped
  • NHS: Patients questioned to journey for hospital remedy in NHS ‘final push’ to ‘eliminate two-year waiters’
  • Justice Secretary Dominic Raab claims felony barrister strikes are ‘regrettable’ as 1st walkout commences
  • ‘Taking innocence from children’: Two-thirds of youngsters uncovered to damaging on the net articles – but only 16% report it

Categories

  • Austria
  • Bahamas
  • Belarus
  • Belgium
  • Breaking News
  • Brexiteers
  • Business
  • China
  • COVID Cases
  • Covid-19
  • Cyber security
  • Debt
  • Economics
  • Energy
  • England
  • Fashion
  • Fire Accident
  • France
  • Freedom Day
  • Germany
  • Health
  • Human Launch
  • Humanitarian
  • Ireland
  • Italy
  • Netherlands
  • News
  • Norway
  • Opinion
  • Politics
  • Refugees
  • Russia
  • Russia
  • Rwanda
  • Saudi Arabia
  • Science
  • Scotland
  • Scotland
  • Spain
  • Spanish-Flu
  • Sports
  • Switzerland
  • Travel
  • Ukraine
  • United Kingdom
  • Videos
  • Wales
  • Zambia

Site Navigation

  • About
  • Advertise
  • Guest Post
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
Euro News Source

Euro News Source is one of the best sources of European News. We provide the latest news from the European Union and its member states, local and international political, economic and sports news. Follow us to receive all news from around the European Union.

© 2021 Euro News Source.

No Result
View All Result
  • Home
  • Latest News
    • All Europe
    • United Kingdom
      • England
      • Ireland
      • Scotland
      • Wales
    • France
    • Germany
    • Italy
    • Spain
    • Austria
    • Belgium
    • Netherlands
    • Switzerland
  • Economics
  • Politics
  • Health
  • Sports
  • Videos

© 2021 Euro News Source.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?