Monte dei Paschi Targets $4.4 Billion Profit by 2030
MPS announced it will complete its Mediobanca merger this year and target a 3.7 billion euro profit by 2030. It will pay 16 billion euros in dividends by then.
The financial landscape in Italy is set for a major shift as Monte dei Paschi di Siena (MPS) moves to finalize its integration with Mediobanca Banca di Credito Finanziario S.p.A.. The lender announced on Friday that it aims to complete the merger by the end of the year, targeting a group profit of 3.7 billion euros ($4.4 billion) by 2030. This projection, which excludes one-off items, represents a significant increase from the 2.4 billion euros expected in 2025.
The consolidation effort reached a new milestone as MPS confirmed plans to purchase the remaining 14% of its partner institution. Having already secured an 86% stake during a wave of industry mergers, the bank seeks to take the firm private to fully capture an estimated 700 million euros in annual savings. The combined entity will bridge traditional commercial banking with specialized services in wealth management and investment banking.
Shareholders are set to benefit from a robust capital return policy, with the group targeting a 100% payout ratio in the coming years. The bank anticipates distributing 16 billion euros in dividends by 2030, a move fueled by the record profits seen across the sector due to elevated interest rates. Despite the high payout, the bank expects to retain approximately 3 billion euros in cash reserves above its 13% core capital target, providing a buffer for potential future deals or additional investor rewards.
This strategic shift follows a period of significant recovery for the historic lender. After being bailed out by the state in 2017, the bank underwent re-privatization throughout 2023 and 2024. The subsequent 16 billion-euro takeover of Mediobanca stands as one of the most significant transactions in recent Italian corporate history, signaling a new era for the institution.
