Published by Global Banking & Finance Review®
Posted on February 10, 2026
3 min readLast updated: February 10, 2026
Add as preferred source on GoogleMonte dei Paschi reports a €1.4 billion profit after acquiring Mediobanca, aided by tax credits and new Italian investors.
By Valentina Za
MILAN, Feb 10 (Reuters) - Italy's Monte dei Paschi di Siena (MPS) aims to complete by year-end the reorganisation of the combined group with Mediobanca and maximise savings from the new structure following the acquisition, CEO Luigi Lovaglio said on Tuesday.
Rescued by the state in 2017, Monte dei Paschi was successfully reprivatised in 2023-2024, with a group of Italian investors building large stakes and supporting last year's takeover of rival Mediobanca.
The deal - now the target of a Milan criminal probe into alleged hidden coordinated action among key shareholders - has placed MPS at the heart of a consolidation wave sweeping Italian banking.
Lovaglio, 70, is seeking a new term as CEO with the support of the Treasury and MPS' main shareholder Delfin, but has yet to secure backing from the second-biggest investor, Francesco Gaetano Caltagirone.
MPS SAYS MEDIOBANCA WILL REMAIN SEPARATE LEGAL ENTITY
Reflecting differing views among shareholders, with Caltagirone seen as favouring greater autonomy for Mediobanca, the board has been debating whether MPS should buy the 14% of Mediobanca it does not already own and take it private.
With a decision on the delisting still pending ahead of a February 27 strategy day, MPS on Tuesday said only that Mediobanca would remain a separate legal entity focused on private, corporate and investment banking.
Lovaglio told analysts the full integration would best support the 700 million euros ($834 million) in projected savings from the tie-up.
"It's clear that the goal now is to generate the maximum level of synergies and value," he said.
Through Mediobanca, MPS has become an investor in Generali, Italy's biggest insurer and a prized financial asset in which both Caltagirone and Delfin hold stakes.
The redesign of the combined group could have implications for a second round of mergers and acquisitions expected in the Italian finance sector.
MPS posted a 1.35-billion-euro net profit for the fourth quarter. With the Mediobanca acquisition lifting its earnings prospects, MPS was also able to benefit from tax credits stemming from past losses, based on the accounting rules regulating such 'deferred tax assets'.
MPS, which has restructured since the state bailout after teetering on the brink of collapse for a decade, said its best-quality capital stood at 16.2% of assets, one of the highest in the sector.
($1 = 0.8396 euros)
(Reporting by Valentina Za; Editing by Gavin Jones and Emelia Sithole-Matarise)
Net profit is the amount of money a company earns after all expenses, taxes, and costs have been deducted from total revenue. It indicates the profitability of a company.
Reprivatisation refers to the process of transferring ownership of a previously nationalised company back to private investors or shareholders.
Corporate tax is a tax imposed on the income or profit of corporations. The rate can vary based on jurisdiction and the type of corporation.
Equity refers to the ownership interest in a company, represented by shares of stock. It signifies the value of an owner's stake in the business.
Explore more articles in the Finance category
