Montepaschi Group Q3 results down
The Board of Directors of Banca Monte dei Paschi di Siena Spa today reviewed and approved the third quarter results for 2012.
Against the backdrop of a strongly recessive economy, financial market tensions and the sovereign debt crisis lost some of their grip in the third quarter of 2012. Following the announcement of a possible government bond buying programme by the ECB, the Italian BTP vs. German Bund spread narrowed to below 315 bps. At the same time, stock markets showed a trend reversal, with core European countries recovering significantly, while Italy's FTSE MIB remained at the levels registered at the beginning of the period. After the ECB cut the benchmark by 25 bps, an additional abrupt drop was seen in interest rates (1-month Euribor reached its low at around 11 bps), and the gradual flattening of maturities curve continued.
Data from the real economy confirms recession for Italy with average GDP for the year estimated to fall by over two percentage points according to consensus forecasts.