Half 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: Giovanni Razzoli - Deutsche Bank AG - Analyst : Good morning to everybody. Thank you for the presentation. Just a couple of very quick clarification. If I see on the slide, you are mentioning EUR1.9 billion of distributions from '24 to '26, which means more or less EUR150 million in the next two years. So I was wondering whether shall I read this correctly. So basically you do see a broadly stable distribution to EUR950 million in '25 or '26 and clearly '24. That's my first question. And the second question is on the potential impact on the sale of Monte Paschi Bank, am I correct in saying that the disposal would be neutral or slightly negative or on your CET1 ratio.

Question: Giovanni Razzoli - Deutsche Bank AG - Analyst : Yes. If the disposal, I mean, you mentioned that you are in tolls to dispose of Monte Paschi Bank in France. I was wondering what could be the impact on the CET1? I assume that the impact will be neutral or slightly negative, but if you can clarify this. Thank you.

Question: Giovanni Razzoli - Deutsche Bank AG - Analyst : Thank you.

Question: Ignacio Ulargui - BNP Paribas Exane - Analyst : Hi, good morning. Thank you for taking my questions. I have just two questions. I mean first one is on the dynamics on the lending growth and direct savings that you are willing to gain throughout the plan. And have you contemplated any kind of margin pressure for the market gains that you are targeting? Or do you expect the market to grow similarly to what you are expecting in the plan? And second question is if you could update us a bit on what's your thoughts about the legal risks going forward and whether you have contemplated an incremental delays of provisions throughout the plan? Thank you.

Question: Ignacio Ulargui - BNP Paribas Exane - Analyst : (inaudible) any positive on it?

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

Question: Noemi Peruch - Mediobanca - Analyst : Good morning and thank you for taking my question. So I have two. One is on your rate sensitivity on page 43. The rate impact there, it showed a EUR119 million when you assume basically in the period of 100 bps of lower rates. So my question is whether we should consider this new impact as the new rate sensitivity or whether you also included their other factors? And then question on tax loss carry forward, you mentioned EUR1 billion absorption in the plan. I was wondering if you could give us a bit of more color on the timing throughout the plan. Thank you.

Question: Noemi Peruch - Mediobanca - Analyst : Thank you.

Question: Hugo Cruz - Keefe Bruyette & Woods Ltd - Analyst : Thank you for the time and for the plan. Just two questions. The IRB model updates when you expect that to happen? And second, any plans to consider buybacks as part of the 75% payout target or on top of that payout target? Thank you.

Question: Hugo Cruz - Keefe Bruyette & Woods Ltd - Analyst : 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. AUGUST 06, 2024 / 7:00AM, BMPS.MI - Half Year 2024 Banca Monte dei Paschi di Siena SpA Earnings Call

Question: Andrea Lisi - Equita Group SpA - Analyst : Hi, good morning. Thank you for taking my questions. Three on my side. The first one is on deposits. So we have seen a good growth in deposits and is consistent with your strategy. Just to know the split between side deposit, term deposits. And so the impact on NII spectro this increase in deposits. The second question is on fees, if -- maybe I missed it, if you can provide us an indication of upfront fees in the quarter? And what are the assumption on upfront fees can be in the plan? And the very last question is on your plan. In particular you said that you want to introduce nonlife insurance offering and just to know if you have already identified the partner or if you are still looking for it or something else? Thank you.

Question: Andrea Lisi - Equita Group SpA - Analyst : And as regarding nonlife insurance? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 06, 2024 / 7:00AM, BMPS.MI - Half Year 2024 Banca Monte dei Paschi di Siena SpA Earnings Call

Question: Andrea Lisi - Equita Group SpA - Analyst : Very care. Thank you.

Question: Fabrizio Bernardi - Intermonte SIM - Analyst : Sorry, on top of the question I made one second ago, I would like to understand if on the back of the free capital position you have in this business plan that goes to 2028, there is the buyback of the JV with AXA. And in case, if you can give us a number about what I think could be a call option to buy back the remaining part of capital that now is in the hands of AXA. Thank you.

Question: Fabrizio Bernardi - Intermonte SIM - Analyst : Sorry. On top of this, given that you are a contributor to Anima and you have a 0% stake, this is a bit misleading in the sense that you are giving somebody else some fees. So I was wondering whether Anima is also a potential partnership that you could reconsider given that in the past, you had 10%.

Question: Fabrizio Bernardi - Intermonte SIM - Analyst : Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 06, 2024 / 7:00AM, BMPS.MI - Half Year 2024 Banca Monte dei Paschi di Siena SpA Earnings Call

Question: Ignacio Ulargui - BNP Paribas Exane - Analyst : Hi. Thanks very much again for taking my questions. I have one more on costs. And you have mentioned throughout the presentation several times, your willingness to replace the head count. I mean should we contemplate any kind of relevant cost cutting initiatives in form of restructuring charges? So we contemplate that in the plan or the plan looks to the normal replacement of headcount. Thank you.

Question: Ignacio Ulargui - BNP Paribas Exane - Analyst : Thank you. Very clear.

Question: Giovanni Razzoli - Deutsche Bank AG - Analyst : Good morning. Thank you for taking my additional question. Shall I read correctly your target that the strategical option to push Val accretive alternatives, is it correct to assume that the share buyback in the future could be a way to be considered a value-accretive alternative to a usage of your more than EUR2 billion of excess capital. I just want to have your personal view. Thank you.

Question: Giovanni Razzoli - Deutsche Bank AG - Analyst : Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 06, 2024 / 7:00AM, BMPS.MI - Half Year 2024 Banca Monte dei Paschi di Siena SpA Earnings Call

Question: Manuela Meroni - Banca IMI SpA - Analyst : Yes, good morning. Thank you for taking my questions. I have a follow-up on the redeployment of your capital. You clearly have a very high excess capital. It's clear that you would like -- could potentially buy back the joint venture in the insurance business, if there is an opportunity. Could you please share with us what could be the potential impact on your profitability targets and common equity Tier 1 targets if you are able to take this opportunity? And are there other areas in which you might be interested in redeploying your excess capital? And the second question is on the asset management growth. You're assuming a plus -- over 9% compound growth in the assets under management. I'm wondering what is the effect of the new inflow and what is the performance effect that you are embedding in these numbers. Thank you.