Intesa Sanpaolo (ISP.MI), Italy's biggest bank, raised its 2026 profit outlook after quarterly earnings topped market expectations on Wednesday as it advances plans to take over rival Monte dei Paschi di Siena (MPS) (BMPS.MI).
After shunning a first wave of Italian banking consolidation that started in 2023 and ended with MPS's €13.5 billion ($15 billion) acquisition of Mediobanca in September 2025, Intesa announced a €34.5 billion cash-and-shares bid for MPS in June, sparking a new round of dealmaking.
Intesa has since filed dozens of approval requests, with green lights needed from the European Central Bank and antitrust authorities, before sending the offer prospectus to Italian market regulator Consob a month ago.
It expects to launch the offer in the fourth quarter after seeking shareholder approval on September 10.
Challenging Intesa, mid-sized lender Banco BPM (BAMI.MI) has asked MPS to discuss a "merger of equals".
However, a person close to the matter said MPS Chief Executive Luigi Lovaglio would only consider pursuing a compelling counter-proposal, with Intesa's €3 billion cash component setting the benchmark.
Intesa said it now expects 2026 net profit above €10 billion - the figure it had been targeting until now. Net income for the three months to June 30 was €2.8 billion, against a €2.5 billion LSEG forecast.
Revenue totalled €7.4 billion, about 6% more than forecasts, with net fees up 7% year on year and net lending income up 1%.
($1 = 0.8783 euros)
