Photographer: Alessia Pierdomenico/Bloomberg

Paschi CFO Mingrone Steps Down as Bank Seeks Buyer After Revamp

  • Spokesman declines to comment on how Mingrone will be replaced
  • Massimo Tononi set to replace chairman after shareholder vote

Banca Monte dei Paschi di Siena SpA Chief Financial Officer Bernardo Mingrone is stepping down, the second senior manager to leave in two months as the world’s oldest bank returns to profit and seeks a buyer.

Mingrone’s resignation takes effect Sept. 25, the Siena, Italy-based lender said Thursday in a statement. A spokesman for Monte Paschi declined to comment on how the bank plans to replace the executive.

Mingrone, who joined in May 2012, helped Chief Executive Officer Fabrizio Viola in restoring profit and bolstering the bank’s finances by reducing risk and selling assets. During his tenure, the bank reported more than 700 million euros of losses in its accounts that were hidden from investors under the previous management, requested state aid and tapped investors twice in less than two years. Alessandro Profumo, who had joined as chairman in 2012, is due to be replaced by Massimo Tononi after a shareholder vote next week.

“Mingrone has played an important role in the rescue of Monte Paschi,” Fabrizio Bernardi, an analyst at Fidentiis Equities, wrote in a note. "The resignation should be read under the light of the M&A environment surrounding Monte Paschi,” which may lead some managers to leave their jobs, he said.

Mingrone may join UniCredit SpA to work in the finance department, Il Sole 24 Ore reported Friday. Mingrone was CFO for Pioneer Global Asset Management, a unit of UniCredit, before joining Monte Paschi. He previously worked for Lehman Brothers Holdings Inc. as an executive director starting in 1998. Mingrone declined to comment when reached by Bloomberg.

Monte Paschi fell 0.7 percent to 1.83 euros as of 10:11 a.m. in Milan trading, giving the bank a market value of 5.4 billion euros ($6.1 billion).

“We believe that the market will remain concentrated on the company’s restructuring process and we would not expect a significant impact on the stock from this news,” Manuela Meroni, an analyst at Banca IMI SpA, wrote in a report Friday.

Monte Paschi, which has said it is seeking a buyer, swung to a profit in the second quarter, reporting net income of 121 million euros as it booked gains from an asset sale and set aside less money for bad loans. That compares with a net loss of 178.9 million euros a year earlier.

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