May 30 (Reuters) - Banco BPM CEO Giuseppe Castagna believes there are "no conditions today" to merge with state-controlled bank Monte dei Paschi, he said in an interview published on Thursday with daily Il Sole 24 Ore.

Castagna also said his bank in late July will look at the possibility of raising its guidance on profits and remains determined to meet "and go beyond" its current financial targets. As for a wider consolidation of the Italian banking sector through M&A, Castagna said it would not happen before 2026. The process "is postponed by at least 18-24 months", he said, adding Banco will focus on its stand-alone industrial plan to 2026.

M&A operations are "difficult" also in Europe due to the lack of a shared vision on rules, Castagna said. "We might see small add-on operations, but no transformative industrial consolidations. It's not that time yet", he noted. (Writing by Francesca Piscioneri, editing by Alvise Armellini)