Italy’s Monte dei Paschi di Siena said it is pushing to complete a reorganisation of its enlarged group by the end of the year, as it seeks to extract the biggest possible savings from its acquisition of Mediobanca. Speaking to analysts on Tuesday, Luigi Lovaglio said the bank’s priority is to redesign the combined structure and maximise cost and revenue benefits from the tie-up.
The latest plan comes as Monte dei Paschi di Siena moves from a long period of restructuring into a new role at the centre of Italy’s banking consolidation. The lender was rescued by the Italian state in 2017 and later returned to private ownership in 2023–2024, after investors built sizeable positions and supported the takeover of Mediobanca, Reuters reported.
Delisting Debate Keeps Integration Path Unclear
A key strategic choice remains unresolved: whether to keep Mediobanca as a separately listed subsidiary or move toward full control and deeper integration. Monte dei Paschi di Siena’s board has been debating whether the group should purchase the remaining 14% of Mediobanca it does not already own and take the unit private. The bank said a decision is still pending ahead of a strategy presentation scheduled for February 27.
For now, the lender said Mediobanca will remain a separate legal entity, focused on private banking as well as corporate and investment banking. Luigi Lovaglio argued that full operational integration would deliver the strongest outcome for the group’s planned efficiency gains, which management has indicated will be 700 million euros. “It’s clear that the goal now is to generate the maximum level of synergies and value,” he said.
Profit Boosted by Tax Assets and Strong Capital Position
Alongside the organisational overhaul, Monte dei Paschi di Siena reported a sharp profit figure for the final quarter, which it said benefited from improved earnings prospects following the Mediobanca deal and the use of tax credits linked to past losses under deferred-tax-asset accounting rules. The bank reported net profit of 1.35 billion euros for the fourth quarter.
The lender also pointed to a robust capital buffer, noting that its best-quality capital stood at 16.2% of assets, which it described as among the highest in the sector. The figures are likely to be closely watched as the group weighs how aggressively it should pursue deeper integration and potential further deals in Italy’s evolving financial landscape.
Shareholder Tensions and Probe Add to Uncertainty
The strategic debate over how tightly to combine the two banks reflects differing views among influential shareholders. Reuters reported that Luigi Lovaglio is seeking a renewed mandate as chief executive with backing from the Italian Treasury and Delfin, but has not yet secured support from Francesco Gaetano Caltagirone, another major investor.
At the same time, the takeover has drawn legal scrutiny. Reuters has reported that the transaction has been the subject of a criminal probe in Milan involving Monte dei Paschi di Siena and key shareholders; an earlier Reuters explainer said judicial sources viewed the deal as standing, with any potential impact largely theoretical and dependent on separate legal action following a final ruling that could take years.
Through Mediobanca, Monte dei Paschi di Siena has also become an investor in Assicurazioni Generali, a stake that could influence how the group positions itself in any next phase of sector consolidation. With a strategy update due later this month and a reorganisation targeted for completion by year-end, investors are seeking clarity on whether the bank will prioritise rapid integration, a holding-company model, or a path that keeps Mediobanca more autonomous.
