Monte dei Paschi swings to profit ahead of new plan in June

Monte dei Paschi swings to profit ahead of new plan in June
© Reuters. FILE PHOTO: The logo of Monte dei Paschi di Siena bank is seen at a bank entrance in Rome, Italy August 16, 2018. REUTERS/Max Rossi/File Photo

MILAN (Reuters) – Monte dei Paschi di Siena on Friday reported a first quarter profit of 9.7 million euros ($10 million) and said new Chief Executive Luigi Lovaglio would present a new plan for the Italian state-owned bank on June 23.

The first quarter result compares with a 78.6 million euro loss in the previous quarter and a 119.3 million euro profit in the same period of 2021.

Lovaglio, a former UniCredit executive, is currently revising a previous strategic plan Monte dei Paschi submitted to European authorities in December in order to take into account their feedback and the changed macroeconomic environment.

Monte dei Paschi said the size of a planned capital raising for the moment remained at 2.5 billion euros ($2.6 billion).

Revenues were up 8.7% from the previous quarter as the sale of securities boosted trading income.

The bank set aside 111.3 million euros against loan losses in the period, half the previous quarter’s figure when it had tightened criteria to assess some impaired loans.

($1 = 0.9504 euros)

Source: Reuters