Shares of Banca Monte dei Paschi di Siena slipped about 2% in Milan trading after the Italian lender reported fourth-quarter net profit of €1.35 billion, falling short of Visible Alpha consensus estimates by 5%. The bank's profit was bolstered by tax credits unlocked following its acquisition of Mediobanca, but the figure disappointed investors.

On a standalone basis, core pre-provision profit came in 2% below estimates, reflecting a 1% shortfall in net interest income and a 1% miss on fees, according to Morgan Stanley analysts. The cost of risk was 37 basis points, better than the 56 basis points expected by the market. Dividend per share was €0.86, slightly below the €0.87 consensus estimate.

The bank said it is accelerating the integration process with Mediobanca, which will continue to operate as a separate legal entity focused on private banking and corporate and investment banking. The board is set to approve the strategy for the combined group on February 26. Monte dei Paschi's CET1 ratio stood at 16.2%, placing it among the best-capitalized lenders in the sector.