In a surprise move, state-owned Monte dei Paschi di Siena revealed stronger-than-expected third-quarter earnings thanks to a boost from higher rates, becoming the latest Italian bank to do so.
Monte dei Paschi (MPS) is 64% owned by the state, which is working on reducing its stake in the Tuscan lender in line with re-privatisation commitments taken with the European Union.
Net income in the three months through September came in at 310 million euros ($331 million), well above a 238 million euro average forecast in an analyst consensus gathered by the bank.
Income from the gap in lending and deposit rates, or net interest income, rose 60% year-on-year, surpassing analyst forecasts and more than offsetting slightly weaker net fees.
MPS said fees had suffered because of traditionally slower activity in the summer months, but also due to a decision to cut the costs of current accounts.
High-street banks in Italy have been able to keep at a minimum the portion of the increase in official rates they pass onto depositors. In many cases the so-called pass through on deposits is below 25%.
Several lenders, like MPS, have opted to cut service costs for account holders.
MPS said its core capital ratio had strengthened further in the quarter to 16.7%, above expectations and up from 15.9% at the end of June.
($1 = 0.9363 euros)
(Reporting by Valentina Za; editing by Robert Birsel)
![](https://beingsportsfan.com/wp-content/uploads/2023/10/f28910d53b81819f4bfb37f23d8a95bf-e1696842789855.jpg)
Olivia Carter revs up excitement in the world of NASCAR. As a dedicated motorsports enthusiast, she covers race results, driver profiles, and the latest developments in the NASCAR world, keeping fans on the edge of their seats.