Monte dei Paschi di Siena (MPS) has announced a 2030 adjusted net profit target of €3.7bn ($4.4bn) and expects to finalise its merger with Mediobanca by the end of the year.
The bank also said it plans to deliver all anticipated merger benefits by 2028.
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According to the new strategic plan required by the European Central Bank after the deal, MPS is aiming for adjusted net profit to rise from €2.4bn in 2025 to €3.7bn in 2030, excluding one-off events.
Chief executive Luigi Lovaglio, who is up for reappointment, said further details regarding the share swap for the remaining 14% of Mediobanca would be shared on 10 March.
Lovaglio said that taking Mediobanca private will generate €700m in merger-related benefits in the second half of 2028.
Integration costs are forecast at €600m, most of which will be recorded in 2026, including €100m allocated for staff pay increases to retain personnel, according to Reuters.
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By GlobalDataAfter being rescued by the government in 2017, MPS returned to private ownership between 2023 and 2024.
The bank intends to distribute a total of €16bn to shareholders through 2030, representing all profits during this period.
This follows Italy’s sale of much of its stake in MPS, which reduced government ownership to about 4.9%.
MPS plans to structure the merged business into five divisions.
It expects 8-9% of operating income will come from Mediobanca’s 13% holding in insurer Generali, valued at around €7bn.
The bank reported that even after high shareholder distributions, it projects it will have around €3bn in excess cash above its minimum core capital target (13%) by 2030, potentially allowing for further transactions or additional payouts.
Operating income from the merged group is anticipated to grow from about €2.1bn in 2025 to €2.6bn in 2030.
Italy’s Prime Minister Giorgia Meloni said that the state’s involvement with MPS has ended, and future governance will be left to market investors, reported Bloomberg.
Rome’s remaining stake “clearly does not give us the possibility to exercise influence over governance,” she noted, adding, “the role of the government has ended.”
Meloni reiterated support for a “third banking hub” but underscored that such an initiative is now outside government control due to its minority stake.
