(Bloomberg) -- Banca Monte dei Paschi di Siena SpA posted better-than expected third-quarter profit on higher revenue, as Chief Executive Officer Luigi Lovaglio expands fee business.
Net income in the three months through September rose to €407 million ($438 million) from €310 million a year earlier, topping the analyst estimate. Revenue in the period rose almost 6% from a year earlier on higher income from fees, the bank said in a statement on Friday.
Monte Paschi also said it sold non-performing loans with a gross book value of about €300 million in the period.
Lovaglio has trimmed costs and shifted focus to more profitable businesses since taking over as CEO in early 2022. This, coupled with a big boost from higher rates, have allowed the bank to resume paying dividends last year.
The Italian lender went through more than a decade of restructuring after a first bailout in 2009. It struggled to deliver consistent profits, partly due to restrictions imposed by the European Union, which approved the lender’s nationalization in 2017.
Monte Paschi’s financial strength and profitability have improved since, allowing the government to start selling down its stake. It currently owns 26.7% in the bank, down from the 64% it held until late last year.
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