Monte dei Paschi may withdraw dividends in 2023 after ban
2022.12.27 04:11
Monte dei Paschi may withdraw dividends in 2023 after ban
Budrigannews.com – The lender said in a statement on Tuesday that the European Central Bank has set minimum capital requirements for Banca Monte dei Paschi di Siena (MPS) for the upcoming year and lifted a ban on dividend distribution.
According to the statement, the ECB instructed Monte dei Paschi to maintain a Common Equity Tier 1 ratio of at least 8.8%, which is a measure of financial strength.
It stated that the bank’s CET 1 ratio was 15.7% at the end of September, including the multi-billion capital raise that was completed later in the year.
With a new share offering, the lender braved turbulent markets in November to raise 2.5 billion euros ($2.6 billion) in cash. Because of lower costs, more than a third of the proceeds were set aside to assist in funding employee layoffs and increase profits.
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Under new CEO Luigi Lovaglio, Monte dei Paschi is working to improve its appeal for a potential buyer after a failed re-privatisation attempt last year. This will allow the state to cut its 64% stake in a merger deal with a stronger competitor.
