About 29% of the € 1.5 billion capital deficit expected by Banca MPS in 2021 is attributable to the provision for legal risks. This is what emerges from the details on the composition of his needs in the written answers to the shareholders published on the bank’s website before the annual meeting. The institution, currently under state control, then notes that 23% of the gap is due to the provision for the sale of bad debts to the state-owned AMCO, 15% is linked to Covid and the remaining 33% is due to regulatory changes.
Mps indicates that after the first instance conviction of the Court of Milan against the former president Alessandro Profumo and the former CEO Fabrizio Viola, it suspended payments of the legal costs accrued for the defense of the defendants.
The capital shortfall estimated for 2021 is part of a larger amount of capital that Paschi intends to raise this year. Monte Paschi has drawn up a plan that includes a merger with a peer and a potential capital increase of 2.5 billion euros to be completed in the third quarter. The bank warned that it could fall below its capital buffer requirements between the end of March and the completion of the capital increase.