As for the former, net profits were up 58% last year, forming a strong base for achieving the 2008/11 plan. Return on equity also achieved an impressive 6.5% increase, taking it to 19.8% in the year.
The strategic plan is to optimise the distribution structure based on the principle of one bank for a single area, enhancement of the new production platform, and further client focus through the introduction of the group’s network of experts and special coverage of corporate and high-net-worth customers.
“Our ‘Glocal’ model combines both international and local reach, enabling us to take comprehensive actions and enhance value in every community,” says deputy general manager Marco Morelli.
The bank also aims to achieve capital optimisation through an integrated programme of structural improvement with the adoption of a risk-efficient business model. Banca MPS has set an objective of an average 50% dividend pay-out on recurring profits for the three-year plan.
The acquisition of Antonveneta represents a great opportunity to strengthen the group’s profitability. This major strategic initiative will provide significant growth, while increasing the branch network from 2000 to 3000 units, and the group’s market share from 6% to 9%. It also reinforces MPS’s presence in the prosperous regions of northern Italy. In terms of value creation, Antonveneta represents an opportunity to enhance the group’s overall profitability through efficiency gains.
