BANCA MONTE DEI PASCHI DI SIENA S.P.A.

Banca Monte dei Paschi di Siena S.p.A. is an Italian retail and commercial bank founded in 1472 and headquartered in Siena, operating a nationwide branch network with a core presence in Tuscany and central Italy. It serves households, SMEs, corporates and the public sector, and distributes savings, investment and insurance products, including via the group’s online bank Widiba. The bank is listed on Euronext Milan; the Italian Ministry of Economy and Finance remains the largest shareholder following the 2017 precautionary recapitalisation and has been reducing its stake through market placements as part of a multi‑year privatization plan. Recent strategic actions have centered on balance‑sheet de‑risking, disposal and securitisation of non‑performing exposures, cost reduction, branch rationalisation and digitalisation after a period of losses tied to legacy transactions and the post‑2008 cycle. Since 2023 the group has reported improved profitability driven by higher net interest income, lower loan‑loss provisions and tighter operating costs; capital, liquidity and asset quality metrics have strengthened relative to prior years, with a non‑performing exposure ratio in the low single digits and CET1 levels above supervisory requirements, while funding plans include issuance of eligible instruments to meet MREL. Key risk factors include sensitivity of net interest income to the interest‑rate cycle, concentration in the Italian economy and sovereign, execution risk around restructuring and privatization, residual litigation and regulatory matters from past mis‑selling and structured products, and competitive pressure in the domestic market from larger banking groups and digital providers.