© Reuters. FILE PHOTO: Pekao Deputy CEO Luigi Lovaglio presents the company’s results during a news conference at the bank’s headquarters in Warsaw March 9, 2011. REUTERS/Kacper Pempel
MILAN (Reuters) – Italy’s Treasury will hand veteran banker Luigi Lovaglio a new term as chief executive of state-owned lender Monte dei Paschi di Siena, two people with knowledge of the matter said.
Lovaglio, who built his career at UniCredit, eventually rising to lead the group’s former Polish unit Bank Pekao, came to Monte dei Paschi (MPS) just over a year ago, when the Treasury ousted his predecessor.
The state owns 64% of MPS following a 2017 bailout.
Lovaglio, one of Italy’s most experienced commercial bankers, oversaw a breakthrough 2.5 billion-euro ($2.7 billion) capital raise in November that enabled MPS to bolster capital and finance voluntary redundancies.
Lovaglio has pledged to increase MPS’ profitability as he works to prepare the bank for a merger that would allow the state to meet reprivatization commitments made to European Union competition authorities at the time of the bailout.
The sources said the Treasury would also name Nicola Maione, a lawyer who has served on the MPS board since 2017 and previously chaired the board of state-controlled air traffic controller Enav, as chairman.
With MPS shareholders due to vote to appoint new directors next month, Treasury, as the bank’s largest single shareholder, is preparing to present its list of nominees for the Tuscan lender’s board in the coming hours.
(This story has been re-archived for added reporting credit, no text changes)
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