Banca Monte dei Paschi di Siena SpA Q3 2024 Earnings Call Transcript

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

Question: Luis Pratas - Autonomous Research - Analyst : Hi, good morning. This is Lufs Pratas from Autonomous. My first question is on the 2024 P&L guidance. Your nine-month '24 results seem to indicate you are running ahead of your own full-year guidance for this year. Could you please comment if there was any reason to leave the guidance unchanged at this stage and if you could comment on the expected dynamics in Q4 for the different P&L items? My second question is related with the intention of BAMI launching an offer for Anima. It is your main asset manager partner in retail. How important is for Monte Paschi to work with an independent asset manager? And under what circumstances would you consider reviewing your asset management partnership? Thank you.

Question: Ignacio Ulargui - BNP Paribas Exane - Analyst : Hi. Good morning. And thanks for the presentation and for taking my questions. I have two questions on the operating plans on the NII and one on credit quality. I mean, if I just look to your NII in the quarter, there has been a 10 basis point decline in the cost of funding. I mean, how should we think that will move forward? Has been there any one-off that has helped the decline of the cost of funding? How do we -- how do you expect the net interest margin to perform from here? A link to that if you could explain a bit the movement on deposits in the quarter and how do you see that going forward. You have been very active looking to gain market share on deposit, which we think is very interesting and just wanted to see how did you see that going forward. And then on NPE stock, I mean, I know that you have just completed one. But I mean, do you think there is appetite for trying to go faster in the reduction of NPEs going forward? 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. NOVEMBER 08, 2024 / 8:00AM, BMPS.MI - Q3 2024 Banca Monte dei Paschi di Siena SpA Earnings Call

Question: Giovanni Razzoli - Deutsche Bank AG - Analyst : Good morning to everybody. We have a couple of questions. The first one, if you can share with us, how many deposits have you been able to switch to asset management product this quarter? And then the second question is on the overall stock of NPL, which has been slightly up quarter on quarter, both in terms of [software and OTP]. If you can share with us, what is the trend behind this evolution. Other two very quick questions. During the conference call, you mentioned that after they revised the DTA framework from the budget law would have a positive impact of the CET1 as non-convertible DTA on balance sheet will be used to compensate to the convertible DTA. Is this something that also applies to you? And what is the impact on the CET1? And the last question, I was wondering whether -- I mean, there has been a great acceleration about the insurance operations then is comprised so on and so forth. I was wondering whether you have already started the negotiation with AXA on a possible repurchase on your JVs or is it something that you are targeting in the near future as we already discussed this in the past conference calls? 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. NOVEMBER 08, 2024 / 8:00AM, BMPS.MI - Q3 2024 Banca Monte dei Paschi di Siena SpA Earnings Call

Question: Andrea Lisi - Equita Group SpA - Analyst : Hi. Thank you for taking my questions. The first one is on the NII trend. We saw the NII that was still up quarter on quarter and despite the loans slightly down and obviously the rate in the market starting to decrease. I would like if you can comment on the expectation for the last quarter of the year and especially for 2025, also given the where the curve -- forward curve is positioned now, so if you can comment on the trajectory of the NII. the second question is on fees. We are seeing a really strong trajectory in terms of fee growth. Also thanks to the excellent job you have made on investment and banking fees. And so if you think that the trajectory could be even higher than what envisaged in the plan. And the last is related to the capital position that is a strong, is considered with the plan. But if you can provide us if you have any update regarding possible option with partners where you can do something that's -- if there is any, any update will be useful. Thank you.

Question: Hugo Cruz - Keefe Bruyette & Woods Ltd. - Analyst : Hello. Hi. Thanks for the time. On NII again, again, not so much about the guidance but I just wanted to understand the moving parts in 3Q better. Because when I look at your slides, you have spread going down, volumes going down as well, both loans and deposits. And the extradition, you know, we can calculate the impact of that. So if you could just give a little bit more detail on what drove the NII in the quarter would be really helpful, you know, just a few more moving parts. And then second, if you could tell us what are the latest decisions you're doing putting on your replicating portfolio to prevent the impact of lower rates in the future. Thank you.

Question: Ignacio Ulargui - BNP Paribas Exane - Analyst : Thanks for taking my question. I have a follow-up question on the on the guidance for 2024 PBT. And then you gave us a guidance of EUR1.3 billion. If I just look to the nine months and the trajectory that you have told us during the call, it's a very likely outcome that you exceed that number. You give us a bit of a sense on how much and what should we expect that going forward. Thank you.

Question: Fabrizio Bernard - Intermonte SIM - Analyst : Hi. Good morning to everybody. I just wanted to ask a question about the strategy. You are very long capital and you upgraded the dividend policy very recently and now is in line, let's say, those -- the ones of your competitors or your peers. And you have a strong focus on fees generation. So my very question is regarding what is happening on the market after the tender offer on Anima, which is made at a price that is a little bit, let's say, counterintuitive. So given the focus you have on fees and given the joint venture you have with AXA, what I'm asking is that if sooner or later you would like to expand your fee? It's a contribution including some product companies as many other banks, like for example, UniCredit and for sure, Banco BPM are doing right now. So I'm not asking you to say precise question. But clearly, that if you have your capital base, which is very, very, very high and the payout policy is extremely high and in line with PF, maybe you would be willing to bring in some fees that you are paying out right now.

Question: Fabrizio Bernard - Intermonte SIM - Analyst : If I can ask another question? I know you are not the [messa] -- you are not the government. But if I were in the position of the government, I would take care about a bank that has been, let's say, restructured and has a common equity 1 you have right now. So my feeling is that the government should try to get in the most for Monte dei Paschi in terms of specially dividends. So my question is that is there any, let's say, the threshold about the stake of the messa they may have after 2024 in Monte dei Paschi or this is a situation that is not, let's say, public and so we cannot discuss on it? Because as far as we have been told. the government should grow, let's say, slightly below 20%. But in this case, it would be weird because you are paying dividends, you're making money, and you have a very strong capital position. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 08, 2024 / 8:00AM, BMPS.MI - Q3 2024 Banca Monte dei Paschi di Siena SpA Earnings Call And I mean, as Andrea said before, there are billions of DTA that should come back sooner or later. So if they need money, it would be nice to just wait and see.

Question: Noemi Peruch - Mediobanca - Analyst : Good morning. Thank you for taking my questions. I have just three follow-ups. One is if you could share your thoughts about the Danish compromise and so internalizing the insurance business, if you have pondered this option. And the second one is on tax loss carry forward absorption in Q4 and 2025. Because I see that you -- that in Q3, there was a pickup in absorption, if I'm not mistaken. And then finally on your expectation for NII in 2025. Thank you very much.