Monte dei Paschi raises 2026 profit guidance and plans MREL bond sale

what happened

According to TradingView, Banca Monte dei Paschi di Siena (BMPS) reported third-quarter 2026 net profit of 543 million euros. That is up 14.6% year over year and above estimates. On this basis the bank raised its FY26 pre-tax profit guidance to over 3.7 billion euros from 3.6 billion.

After shareholders rejected its merger with Mediobanca, BMPS said it needs to sell a benchmark senior bond by year-end to meet MREL requirements. Over the first nine months of 2026 the bank reported 300 billion euros in total funding and 18 billion euros in gross wealth inflows.

Asset quality remained stable, with gross bad loans at 3.7 billion euros, or 2.4% of loans, and CET1 rising to 16.4%. The bank is also still reviewing Intesa Sanpaolo's public exchange offer, and its board is expected to issue a further assessment by the end of the month.

why it matters

Two signals matter for the market. Profit above expectations and a higher guidance support interest in the bank's shares, while the need for an MREL bond adds new debt supply and possible funding costs. The board's view on the Intesa offer will be the next trigger for investor reaction.

market impact

BMPS shares and the Italian banking sector: strong results and higher guidance support interest in the stock.

• ▲BMPS shares pressure up — results above estimates and a raised profit guidance

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