Italy's Monte dei Paschi di Siena said it would complete the merger with Mediobanca by the end of the year and target a profit of €3.7 billion for the combined group in 2030.
The figure, which excludes one-off items, compares with €2.4 billion in 2025, Monte dei Paschi (MPS) said today, as it presented a multi-year strategy after acquiring the larger rival last year.
Bailed out by the state in 2017, MPS was re-privatised in 2023-2024, and went on to acquire 86% of Mediobanca in a round of consolidation sweeping Italian banking.
It will now buy the remaining 14% and take Mediobanca private to secure the full €700m in savings expected from the tie-up.
Planning to pay out 100% of the profits in the coming years, MPS said it would distribute €16 billion in dividends by 2030. Driven by higher interest rates in recent years, lenders have paid out record profits.
MPS said the high payout would still allow it to keep some €3 billion in cash above a targeted 13% core capital threshold, which it could use for additional deals or to remunerate investors.
MPS' €16 billion share-and-cash takeover of Mediobanca was the biggest and boldest deal in last year's M&A world in Italy, bringing together a commercial bank with a branchless peer focused on wealth management, consumer finance and investment banking.
