Monte dei Paschi di Siena

The oldest bank in the world: MPS was established in 1472, now having more than 3000 affiliates, 33 thousand employees, and 4.5 million customers in Italy. The bank is operating at the international level with various kinds of banking products and services. Two years ago, the bank took over Banca Antonveneta, the third largest Italian bank. The net profit of the bank (as of 2008) is 953 million euro, which is 30 % less than the previous fiscal year.

Banco Monte dei Paschi di Siena is the main bank of the MPS Group, specializing in traditional banking, as well as granting special credits, asset management, insurance, and investments. The targeted group of clients are mostly families and small to medium businesses. Banca Monte dei Paschi is traded on the Italian Stock Exchange and listed on one of the most profitable indexes – S&P/MIB. The bank’s products include insurance, project finance, pension funds, merchant banking, investment trusts, as well as financial advisory services.

The group takes part in various non-banking businesses such as winemaking, sponsorship of art collections, environmental development, and basketball games. The body even funds the expansion of small airports. Its business plan for the period 2008-2011 envisages a takeover of Antonveneta. This act aims to boost the yearly net income to €2.2 billion.

The bank is organized to integrate its financial, credit, and insurance services in a neat structure, based on four pillars: a central structure for managing and administrative coordination; a production structure which stands firmly on the product companies; a distribution structure; and a service structure.

The bank also stresses on advertising and aims at preserving traditional values, implementing innovations, and focusing on Italianness in its advertisements. Its transparency is remarkable: its website offers presentations, financial reports covering 6 years, articles, and press releases.

Another important area of sustained effort for MPS is to polish risk management policies and techniques such as: the compliance with limits, assessment of the risk profile, capital consumption variables, and the methods of analysis and measurement of incurred risks. The risk management sector comprises of business units (verifying the transactions) and wealth risk management unit which measure risk of investment products. The bank complies with the New Accord on Capital Adequacy (Basle II) and the Second pillar.

The oldest bank integrates new methodologies and techniques quickly and still serves as a model of banking management for other Italian banks.

Commercial Banks Guide > Monte dei Paschi di Siena