(Finance) – Banca Monte dei Paschi di Siena (MPS) has received notification of the final decision of European Central Bank (ECB) concerning the capital requirements to be met on a consolidated basis from 1 January 2025, at the conclusion of the annual prudential review and evaluation process conducted in 2024.
The additional P2R capital requirement it is an improvement of 25 bps compared to 2024 levels (2.75%), settling at 2.50%. The overall minimum requirement in terms of Common Equity Tier 1 ratio stands at 8.78%, the sum of Pillar 1 – P1R (4.50%), Pillar 2 – P2R (1.41%)1 and Combined Buffer Requirement – CBR (2.87%). The Pillar II Capital Guidance P2G, set at 1.15%, is unchanged compared to 2024 levels.
Compared to the 2023 final decision, the ECB has removed theprior authorization requirement for the distribution of dividends.
Based on results as of September 30, 2024, the bank fully complies with the new requirementswith capital ratios at consolidated level3 equal to: 18.4%, for the Common Equity Tier 1 ratio, compared to a requirement of 8.78%; 21.7%, for the Total Capital ratio, compared to the requirement of 13.37%.