Full Year 2024 Banca Monte dei Paschi di Siena SpA Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ignacio Ulargui - BNP Paribas - Analyst : Thanks very much for the presentation and for taking my questions. I have 3 questions if I May 2 on the guidance and one on Medibank transaction. I mean, if I just look to the NII, what kind of decline you are expecting into the year? And with what level of rates and volumes you're factoring, I mean, I'm just asking this because I have seen that the strong performance of the deposit base in the quarter, I think is a very supportive to the end. I just want to get a bit of a sense how do you see volume deposits and lending evolving in the year. The second topic is on cost of risk and whether does the plan include incremental asset disposals and would you consider accelerating that reduction of MPs taking a bit of a higher cost of risk throughout the year and final question on the synergies, I mean you have thanks for giving the color on the evolution of the synergies, but in case that you have a bit of a headwind on what these synergies. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 06, 2025 / 8:00AM, BMPS.MI - Full Year 2024 Banca Monte dei Paschi di Siena SpA Earnings Call Because of potential kind of initial distractions in the merger, would you feel more comfortable to have said that, within all the funding or cost savings that you have announced? Thank you.

Question: Ignacio Ulargui - BNP Paribas - Analyst : Thank you very much.

Question: Giovanni Razzoli - Deutsche Bank - Analyst : Good morning to everybody. Two questions on the results and one on the offer on Me bank. Can you remind us on Basel 4 what is the impact that you expect in 2025? If I'm not mistaken, you are one of the few banks in Europe which have anticipated a positive impact from Basel 4 if you can remind us what was the positive benefit that you have announced in August and whether you have a finely tuned. Those calculations today. The second question, if you can share with us what is the gross and net asset management flows in the Q4. The performance was pretty strong in the 3rd quarter. If I'm not mistaken, you booked more than EUR3 billion of inflows if you can share what is the data for Q4. And the second, the third set of questions is on the bank acquisition, and specifically on the C1 ratio target. You have a CT1 ratio target for the combined entity of above 16%, which can be up to 16.5 assuming the approval of the Danish compromise on the combined. How would the CT1 of the combined NTP be, in case of, for example, the Ownership of Medibank, the bid that would be between 51% and 67% because I assume that your 16% plus or 51 target assumes a pro forma 100% combination with media bank. And another question on the similar topic on the DTA. You said that you will have something like EUR300 million of incremental BTA benefit per year. I guess that this level will not be impacted by the percentage of ownership. You will end up with media bank because you are likely to adopt the consolidado fiscale. So is my understanding correct that the amount of incremental DTA. Will not be a function on the participation that you will end up with, Mega banka. Thank you.

Question: Luis Pratas - Autonomous Research - Analyst : Yeah, thank you for taking my questions. The first one is on the 2025 outlook. I was wondering if you could shared any needs on the trajectory of revenues throughout 2025 divided in NII sees another income. And on your NII guidance, could you please share the embedded assumptions such as volumes, margin developments, and rates. And then my final question is on the media bank and offer. Thanks for the extra slides. On the revenue synergies, could you please share any caller on how you quantify the revenue synergies, for instance, the amount of synergies per business area. And does your synergy numbers include any staff retention incentive cost for media banker staff? Thank you.

Question: Domenico Santoro - HSBC - Analyst : Hi, good morning. It's, Domenico HSBC. Thanks for the presentation. Thanks for giving us more details about the synergies. This is an area on which probably investors need to be educated a little bit about the merger. And so thanks for doing that. A couple of follow-ups on to the questions of the colleagues. First of all, on the, NII decline you said single digit. Can you be a little bit more specific? We're talking about the low single digit that will help also to benchmark with other banks. The second question is on the deal. You've been very clear on the moving parts around the capital, and now we get a better idea how the capital can behave, depending on the different scenario. My question is more about the excess of capital because it's true you're starting probably from 16 or less, then there is the Danish compromise, then there is the DTA that will be realized regardless of little bit of the synergies. So it's true that you mentioned the double digital creation, but we know that synergies, they take a little bit, a while to get realized. So, my question is more to appeal those investors. Are you thinking about the plus one using this excess capital also to accelerate a little bit the accretion of the deal, so. The question is whether you are thinking about using this excess capital for any share buyback or whatever, any maneuver, that can be of appeal for investors. And then the other question is about, for sure you have started, to have conversation with institutional investors we read on the press there was some headline. So I just want to understand what the initial feedback that you get probably you got from the. A media bank, investors. Thank you very much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 06, 2025 / 8:00AM, BMPS.MI - Full Year 2024 Banca Monte dei Paschi di Siena SpA Earnings Call

Question: Domenico Santoro - HSBC - Analyst : All right. Fair enough. Thank you.

Question: Hugo Cruz - KBW - Analyst : Hi, thanks for the time. I have quite a few questions on NAI and then one question on, the potential deal with the Medibank. So on the NII, can you repeat what you said around the single digit decline? I couldn't understand and I think it would be very helpful. Are you talking about low single digits or high single digit decline in 2025? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 06, 2025 / 8:00AM, BMPS.MI - Full Year 2024 Banca Monte dei Paschi di Siena SpA Earnings Call 2nd the size of your Italian go portfolio, is there any room to grow the portfolio farther? Third question around the your central bank deposit and your liabilities they have been coming down. I think that was an expensive form of funding so can you disclose what's the cost and how much of those deposits you can replace with cheaper funding? And then question on the Medibank offer, can you confirm if you can start buying Media Baer shares before having approval from your shareholders meeting for the offer? Thank you.

Question: Hugo Cruz - KBW - Analyst : All right, thank you very much.

Question: Andrea Lisi - Equita - Analyst : I, thank you for taking my questions, sir. I have one, on, the DNII and the others on the deal regarding the DNAI, in this during the conference call, said that you expect, 2026 and a 2025 level. What's, your expected trajectory given your current, update the current level of interest rates. And your current estimates about volume growth both on loans and deposits. As regards the deal, I want to ask you if, in relation to the offer you promoted on Medibank, may you consider lowering the acceptance rate below the threshold of 66.7% and if so what could be the impact on your ability to deliver your plan and senior season and another question is more from REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 06, 2025 / 8:00AM, BMPS.MI - Full Year 2024 Banca Monte dei Paschi di Siena SpA Earnings Call a technical standpoint, what do you think could be the main challenges in integrating the operational models and digital platforms of [Montepas] and thank you.

Question: Manuela Meroni - Sanpaolo - Analyst : Good morning. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 06, 2025 / 8:00AM, BMPS.MI - Full Year 2024 Banca Monte dei Paschi di Siena SpA Earnings Call Thank you for taking my questions. The first one is on the NII. I'm wondering if you can, update us on your sensitivity, to rates. The second question is on, fees. In 2024, your gross flow in wealth management was almost EUR15 billion so I'm wondering if you can tell us how much are the upfront fees that you cash in in 2024 and in your guidance of increasing fees for 2025, what are your assumptions in terms of upfront fees so they're up or down or stable compared with the 2024. The other question is on your guideline, on total income. If I understood correctly, you expected the decline to, of an II not to be offset by an increase in. Fees, but you have some rooms in trading profit. So I'm wondering if you can guide us on the evolution of the total income. So if you are expecting any anyway the total income to, decline compared with the 2024 and last question on media bank, I'm wondering if you can accept, your common equity tier one to go below 14% on temporary basis.