Banca Monte dei Paschi di Siena
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| Sector | Banking |
Banca Monte dei Paschi di Siena is an Italian credit institution. Founded in 1472, it is the oldest bank in operation.[1]
Banca Monte dei Paschi di Siena: operations and areas of intervention
Banca Monte dei Paschi di Siena is an Italian credit institution founded in 1472. Its operations extend throughout Italy and in major international markets, with activities that, in addition to traditional banking, specialize in asset management and private banking (including mutual funds, pension funds, life insurance, and wealth management for private clients), as well as investment banking and innovative corporate finance. Together with other group companies, it constitutes the 6th largest banking group in Italy after Intesa Sanpaolo, UniCredit, Banco BPM, ICCREA Banca, and BPER Banca.
The founding of Banca Monte dei Paschi di Siena
Banca Monte dei Paschi di Siena was founded in 1472 as a Monte di Pietà to help the underprivileged classes in the city of Siena. In 1580, it acquired the characteristics of a public bank, beginning to perform tax collection functions. In 1624, a second monte (Monte non vacabile dei Paschi della città e stato di Siena) was established, specializing in agricultural credit. The two montes were unified in 1783. It was not until 1872 that the bank assumed its current name.
Banca Monte dei Paschi di Siena: Unification of Italy and the early decades of the 1900s
Following the Unification of Italy, Banca Monte dei Paschi di Siena expanded its activities throughout the peninsula. In 1929, it participated in the merger between Credito Toscano and Banca di Firenze, giving rise to Banca Toscana.
Banca Monte dei Paschi di Siena during the 1990s
The fourth largest bank in Italy by collection in the early 1990s, the Bank was the first in Italy to diversify its activities into bancassurance. Additionally, in 1990, it acquired Mediocredito Toscano and INCA (National Institute for Agricultural Credit). It also acquired controlling stakes in banks in Belgium, France, and Switzerland. The growth of Banca Monte dei Paschi di Siena was also marked by its listing on the Milan Stock Exchange, which took place on June 25, 1999. The public offering received requests ten times the offer.
Following the stock market listing, a period of operational and territorial expansion began, with acquisitions of stakes in regional banks such as Banca Agricola Mantovana and Banca del Salento (which later became Banca 121). This strengthened the production structures in specialized credit, financial products for businesses, investment banking, and consumer credit.
The 2000s of Banca Monte dei Paschi di Siena
In early November 2007, Banca Monte dei Paschi di Siena announced an agreement with Banco Santander to acquire Banca Antonveneta (excluding the subsidiary Interbanca) for 9 billion euros. In 2010, the Bank passed the stress test conducted by the Committee of European Banking Supervisors. However, it closed 2011 with a net loss of 4.69 billion euros. Additionally, following the purchase of Banca Antonveneta for 10 billion euros, Banca Monte dei Paschi di Siena suffered a heavy loss that also affected Fondazione MPS.
In 2012, a new restructuring plan for the group was introduced for the three-year period 2012-2015, marked by cost reduction and rationalization. In 2014, the Bank failed the stress tests of the European Central Bank. This was followed by a new capital increase of 3 billion euros. The shares of Banca Monte dei Paschi di Siena subsequently lost 39.2% in the last five trading sessions of October 2014.
Banca Monte dei Paschi di Siena from 2016 to the present
In July 2016, the results of the stress tests conducted by the European Banking Authority were published, which highlighted a very severe impact in the "adverse" scenario (CET1 in 2018 equal to -2.2%). In the "baseline" scenario, the CET1 in 2018 was confirmed at 12%.
Until March 17, 2017, Banca Monte dei Paschi di Siena was listed on the FTSE MIB index of the Milan Stock Exchange. From October 25, 2017, after the recapitalization carried out by the Italian State, it returned to being listed on the Stock Exchange with a capitalization exceeding 5 billion euros. Since June 18, 2018, it has been included in the FTSE Italia Mid Cap index of the Milan Stock Exchange.
Currently, the majority shareholder of the Montepaschi Group is the Italian State (64.23% of the share capital), with the direct participation of the Ministry of Economy and Finance.
Related topics
- Banking
CEO
Luigi Lovaglio
Notes
- ↑ Banca Monte dei Paschi di Siena, su it.wikipedia.org.