Monte dei Paschi di Siena and Mediobanca: A Bold Merger and Future Profits

Monte dei Paschi di Siena plans to complete its merger with Mediobanca by year-end, targeting a combined group profit of 3.7 billion euros by 2030. The strategy includes privatization efforts, acquiring 86% of Mediobanca, and predicting 700 million euros in savings, resulting in substantial dividends by 2030.

Italy's banking landscape is set to witness a seismic shift as Monte dei Paschi di Siena (MPS) aims to finalize its merger with Mediobanca by the year's end. The combined entity targets remarkable profits of 3.7 billion euros ($4.4 billion) by 2030, surpassing its forecasted 2.4 billion euros in 2025.

MPS, which reentered the private sector between 2023 and 2024 after a state bailout in 2017, took significant steps forward in consolidating the Italian banking scene by acquiring 86% of Mediobanca. It now plans to purchase the remaining 16% and privatize the group, eyeing 700 million euros in operational savings.

Looking to reward its shareholders, MPS plans to distribute an impressive 100% of its profits as dividends, amounting to 16 billion euros by 2030. This ambition marks a new era for MPS, reflecting its revitalized strategy and financial aspirations in the rapidly evolving banking sector.

(With inputs from agencies.)