Banca Monte dei Paschi di Siena facts for kids
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| Public (Società per azioni) | |
| Traded as | BIT: BMPS |
| ISIN | ISIN: [https://isin.toolforge.org/?language=en&isin=IT0005218752 IT0005218752] |
| Industry | Financial services |
| Founded | 4 March 1472 (as a mount of piety) |
| Headquarters |
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Italy
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Number of locations
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 1,368 domestic branches; 11 branches abroad (2021) |
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Key people
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Nicola Maione (chairman) Luigi Lovaglio (CEO) |
| Services |
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| Revenue |  €2.980 billion (2021) |
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Operating income
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€629.2 million (2021) |
| €310 million (2021) |
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| Total assets | €137.868 billion (2021) |
| Total equity | €6.172 billion (2021) |
| Owner | Ministry of Economy and Finance (26.7%) |
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Number of employees
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21,244 (2021) |
| Subsidiaries |
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| Capital ratio | 12.5% (CET1, 2021) |
| Footnotes / references in consolidated financial statement |
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Banca Monte dei Paschi di Siena S.p.A. (often called BMPS or just MPS) is a very old Italian bank. It started as a "mount of piety" in 1472. A mount of piety was like a charity that offered small loans. This makes BMPS one of the oldest banks in the world that is still open today!
The bank as we know it was officially set up in 1624. Today, it is one of the largest commercial banks in Italy. In 1995, the bank changed its structure to become a public company. A special group called the Fondazione Monte dei Paschi di Siena was created to continue the bank's original charity work.
In recent years, the bank has faced some financial challenges. The Italian government has helped the bank to make sure it stays strong. BMPS has many branches in Italy and some abroad. It offers different services like banking for regular people, businesses, and investments.
Contents
History of the Oldest Bank
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Banca Monte dei Paschi di Siena began on March 4, 1472. It was started by the government of the Republic of Siena. Its goal was to help people in need by offering loans at low interest rates. This is why it is often called the world's oldest bank that has been running continuously.
The bank's name comes from "Paschi," which means pastures. In 1624, when Siena became part of the Grand Duchy of Tuscany, the Grand Duke gave the bank income from state-owned pastures. This helped the bank grow and offer more services.
Growing Across Italy
As Italy became one country, the bank expanded. It started new services, like mortgage loans, which were new in Italy. The bank also helped other smaller banks that were having problems.
In 1995, the bank split into two parts. One part became the public company, Banca Monte dei Paschi di Siena S.p.A. The other part was the Fondazione Monte dei Paschi di Siena. This foundation is a non-profit group that helps with education, science, health, and art, especially in Siena. In 1999, Banca Monte dei Paschi di Siena was listed on the Italian Stock Exchange. This meant people could buy shares in the bank.
Expanding Services and Reach
After joining the stock exchange, the bank grew a lot. It bought other regional banks and added new companies. These new companies offered services like:
- Consumer loans (Consum.it)
- Leasing and factoring (MPS Leasing and Factoring)
- Investment banking (MPS Finance)
- Managing savings (MP Asset Management SGR)
- Financial advice (MPS Bsersonale)
- Loans for businesses (MPS Banca per l'Impresa)
The bank also opened many new branches, reaching over 2,000 locations. To help pay for this growth, the bank made some complex financial deals.
Buying Antonveneta Bank
In 2007, Monte dei Paschi di Siena bought another bank called Banca Antonveneta. This was a big purchase that cost €9 billion. This deal helped BMPS become an even larger bank in Italy.
Facing Financial Challenges
Around 2008, the world faced a big financial crisis. This, along with problems in Italy's economy, caused difficulties for BMPS. The bank lost a lot of money and needed help to stay strong.
In 2013, it was discovered that the bank had hidden some financial losses from earlier deals. This caused a big stir. The bank's shares dropped, and its leaders faced questions. The Banca d'Italia (Bank of Italy) stepped in to help. They approved a plan for the bank to get €3.9 billion in support. This was to make sure the bank could continue its operations.
A Long Road to Recovery
After 2013, BMPS worked hard to get back on track. It continued to face challenges, including needing more financial help. In 2014, the bank had a large loss. It needed to raise more money to meet new rules for European banks.
In 2016, the bank was tested by the European Central Bank. The results showed it needed more capital. The Italian government prepared a plan to help the bank again. This plan involved the government becoming a major owner of the bank.
In 2017, the government's plan was approved. The bank received €8.1 billion in support. The Ministry of Economy and Finance became the largest shareholder. This helped the bank stabilize and work towards a stronger future.
Returning to Profit and Privatization
After many years of challenges, BMPS started to do much better. In 2023, the bank made a profit of over €2 billion. This was a record for the bank. In 2024, it paid out dividends to its shareholders for the first time since 2010.
Because the bank is doing well, the Italian government has started to sell some of its shares. In November 2023, the government sold 25% of its stake. In March 2024, it sold another 12.5%. This means the government now owns a smaller part of the bank. This is part of a plan to return the bank fully to private ownership.
Bank's Role in Culture and Economy
MPS has its main office in the Palazzo Salimbeni in Siena. This building holds a valuable art collection and many old historical documents. These collections show the bank's long history.
The bank is also known for sponsoring the Italian basketball team Mens Sana Basket from Siena. For many years, the bank's profits helped fund local projects. This included supporting the famous Palio di Siena horse race and helping to restore historic buildings.
The Fondazione Monte dei Paschi di Siena, the bank's charity arm, also used to receive a lot of money from the bank. This money helped many local organizations. However, when the bank faced financial problems, the foundation's income dropped. This affected its ability to give money to other groups.
Who Owns the Bank?
The main owners of Banca Monte dei Paschi di Siena are:
- Ministry of Economy and Finance (Italy) (the Italian government)
- Generali Group (an insurance company)
The Italian government became the largest shareholder after helping the bank during its difficult times. However, as the bank has improved, the government has started to sell its shares. In November 2023, the government's ownership went from 64.23% down to 39.23%. In March 2024, it dropped even further to 26.7%.
The Fondazione Monte dei Paschi di Siena used to own a large part of the bank. But over time, its share has become very small. The foundation's leaders are chosen by local authorities in Siena.
See also
In Spanish: Monte dei Paschi di Siena para niños
- List of oldest companies
