Mps: la Bce rimuove the ban on the distribution of dividends. For Mps-Monte di Stato finally the beginning of a new era, after the success (actually questioned by many) of the2.5 billion euro capital increase?
This morning the bank led by CEO Luigi Lovaglio announced the decision of the European Central Bank to confirm the capital requirements that will have to be met starting from 1 January 2023.
the ecb he mentioned the success of the recapitalization operation of the Sienese bank Monte di Stato, lifting the ban on the disbursement of coupons.
With the ECB’s ok for the distribution of dividends, Mps seems to minus Mount of Troubles, ready to usher in a new era, which should result in the privatization of the bank and therefore in the exit of the MEF-Treasury from its capital, the largest shareholder with a 64% stake.
“Given the successful outcome of the capital increase operation for 2.5 billion euros, the ECB also removed the ban on the distribution of dividends, replacing it with the obligation for the Bank to obtain prior authorization from the Supervisory Authority”, reads the press release issued today by Monte dei Paschi.
With regard to the capital requirementsthose requested for 2022 have been confirmed, “already widely respected”. Or:
- In 2023 for the MPS Group – at a consolidated level – it is expected a Total SREP Capital Requirement (TSCR) of 10.75%, which includes
- A minimum requirement of own funds – Pillar 1 (‘P1R’) of 8% (of which 4.50% in terms of CET1)
- An additional requirement of Pillar 2 (‘P2R’) of 2.75%, which stands at the same level that had been requested for 2022, to be held at least 56.25% in the form of primary class 1 capital – CET1 – and 75% in the form of tier 1 capital – Tier 1.
- The overall minimum requirement in terms of Total Capital ratio, obtained by adding a Combined Buffer Requirement (CBR) of 2.75% to the TSCR is 13.50%.
- Il overall minimum requirement in terms of CET 1 ratio is equal to 8.80%, sum of P1R (4.50%), P2R (1.55%) and CBR (2.75%); the overall minimum requirement in terms of Tier 1 is 10.82%, inclusive of P1R of 6%, P2R of 2.06% and CBR of 2.75%.
From the note of Monte dei Paschi di Siena it also emerged that “the Bank’s capital ratios at consolidated level as at 30 September 2022, taking into account the capital increase concluded on 4 November for approximately EUR 2.5 billion and the related costs, are equal to: 15.7% for the Common Equity Tier 1 ratio, 15.7% for the Tier 1 ratio, 19.5% for the Total Capital ratio, calculated by applying the transitional criteria in force for 2022; 14.7% for the Common Equity Tier 1 ratio, 14.7% for the Tier 1 ratio, 18.5% for the Total Capital ratio, calculated by applying the fully loaded criteria”.
“As for the Pillar II Capital Guidance (P2G), is confirmed at 2.50%, to be met with Common Equity Tier 1″.
Dividends: ECB withdraws ban, but MPS down on the stock market
However, the news does not excite investors, with the MPS stock che brings a performance in red back to Piazza Affari, mid day.
The Mps case returned to the spotlight at the beginning of December, with an article published by Financial Timeswho returned to addressing the question on the alleged state aid disbursed during the capital increase that allowed MPS to raise 2.5 billion euros to continue to survive.
In addition to summarizing the story, il Financial Times he returned to the issue of large commissions (a good 125 million euros that the Sienese bank paid to the banks of the guarantee consortium for the capital increase. And on the alleged, for some certain, violation of EU rules on state aid from Italy:
“With investors (the market) showing little interest in participating in the latest capital increase, MPS convinced a group of banks to subscribe the entire share that should have been subscribed by private individuals, in exchange for rich commissions. In order to further reduce their risks, these banks then signed sub-underwriting agreements with other investors, who have agreed to absorb the unexercised shares in exchange for part of the commissions received by the banks”wrote the British newspaper.
A move which, the FT underlined, “it would appear to violate EU rules on state aid”, rekindling doubts about the bail-in VS bailout tool.
With a lot of silence from theEuropean Union and the ECB itself.