MPS approved new business plan

The new business plan, "signed" by Marco Morelli and approved yesterday by the Board of Directors of MPS, expected net profit of 1.1 billion Euros to 2019. The board of directors scheduled  November 24 an extraordinary shareholders' meeting to approve the capital increase up to a maximum of € 5 billion.

The new business plan then tip a net profit of €1,1 billion in 2019. And at that time also, the MPS plan foresees revenues of 4.5 billion, operating costs to $ 2.46 billion and an operating profit of €1,5 billion. The operating model, the bank explains in a note, it will be renovated and will point to a strong focus on efficiency, with a cost / income ratio of 55% in 2019 and allocated to the commercial activities of a higher proportion of employees from the current 62% to 71%.

Regarding the workforce, the plan "will focus on greater efficiency through the reduction of approximately 2,600" employees, the increasing shift of the remaining employees to commercial activities and the closure of 500 branches according to the release of the Siena-based bank.

"Staff costs – is explained – will drop by about 9% to €1.5 billion in 2019 from about €1.6 billion in 2016" and the reduction will take place through natural turnover and the activation of the fund solidarity.

The operation launched by MPS "is unprecedented in structure and size of the Italian market"; MPS CEO Marco Morelli, confident, said: "We feel confident that this operation will succeed."