Banca Monte dei Paschi di Siena posted a stronger first quarter as the recently acquired Mediobanca drove profit growth. The Italian lender reported net profit of 520.8 million euros ($613.7 million), up from 413.1 million euros a year earlier, exceeding analyst forecasts of 520.5 million euros.

The bank's expansion through the Mediobanca acquisition proved decisive, though organic operations showed weakness. Excluding the deal, continuing operations saw a 26% decline in profitability. Revenue jumped to 1.96 billion euros from 1.01 billion euros, outpacing the 1.93 billion euro analyst expectation.

Both net interest income and fee earnings contributed to the top line. The Mediobanca integration signals Monte dei Paschi's aggressive consolidation strategy in Italy's competitive banking sector. While the acquisition boosted headline numbers, the sharp drop in underlying performance raises questions about operational execution. The bank appears to be banking on scale to drive future returns.