The document, made available before a meeting of
shareholders on Thursday, showed MPS last month received a green
light from the European Central Bank to adopt the new models
which the bank uses to evaluate risks on large corporate loans.
The estimate, based on RWA figures as of the end of 2022,
compares with a 5.6-billion-euro hit previously forecast under
the Tuscan lender's latest business plan released last June.
MPS said in its answers -- on the back of a 2.5 billion euro
capital raising last November -- the bank currently has one of
the highest capitalisation levels in the sector and is on track
to hit its target of over 700 million euros in profits in 2024.
Such a scenario allows MPS "to look at any opportunities
that may arise as part of the consolidation of the Italian
banking sector", it added.
Amid a upbeat market session for banks, shares in MPS
rose as much as 5.7% as investors bet on potential M&A deals in
the sector, a Milan-based trader said.
By 1523 GMT, the stock was outperforming a 0.7% uptick in Milan's blue chip index .
Shareholders will convene on Thursday to appoint the bank's new board. Italy's Treasury, which owns 64% of MPS following a 2017 bailout, said it would
confirm Luigi Lovaglio at the helm of the bank as turmoil shakes the industry.
Braving turbulent markets, he steered MPS through the
make-or-break capital hike, proceeding to use part of the cash
to fund thousands of staff exits he agreed with unions to cut
operating costs.
The veteran banker will now work to seal a merger to
cement the bank's turnaround and allow the state to meet
European Union re-privatisation commitments made at the time of
the bailout, a person with knowledge of the matter said.
($1 = 0.9115 euros)
(Reporting by Gianluca Semeraro and Andrea Mandalà, writing by
Federico Maccioni, editing by Cristina Carlevaro and Keith Weir)
