Mediobanca recorded a quarterly profit declining, although better than expected, supported by the net commissions that have plywood il decline in interest margin (Nii) due to the drop in rates and the contribution of Generali. At Piazza Affari Mediobanca saw strong sales at the start of the session, the stock opened down 7% at 14,4 euros and then rose slightly to 14,58 euros but still down 6,45%.
L'Net income of the bank of Piazzatta Cuccia came down of 6,1% to 330 million euros in first quarter July-June compared to a year earlier, but it was higher than consensus analysts which was limited to 319 million. revenues stood at around 865 million euros, substantially stable compared to a year ago, with a 29% commission increase. Net interest margin at 485 million, down 2% and below estimate consensus provided by the bank, equal to 884 million euros, discounting the fall in interest rates and the rise in cost of funding (2,52%; +25bps year-on-year). Revenues grew by 4,9% to 228,4 million and profit by 6,4% to 53 million.
Earnings per share at 0,40 euros. The 385 million buy back plan starts today
THEearning per share it turns out to be equal to 0,40 € and the Wheels at 13%. The support remains financial solidity of the group with a Cet1 ratio ratio grew in the quarter by 15,2 15,4% to% and a Total Capital Ratio stable at 17,9%. Today the banking institution also started the plan of Purchase of own shares for 385 million, approved by the ECB on 7 October and by the shareholders' meeting on 28 October. The plan will be executed by June 2025 and will result in the cancellation of 80% of the treasury shares resulting from the purchase.
Generali Contribution Drops to 105,4 Million. Eyes on Capital Law
Treasury income fell to 39,2 million (from 47,5 million) due to proxy hedging activity of the banking book portfolios in the Holding Functions (from 21 to 2,3 million) and thecontribution from Generali Insurance fell to 105,4 million from 138,4 million last year due to lower non-operating results and the decline in the P&C segment.
Regarding Generali, the CEO specified in a call following the data that Mediobanca he is not 'equipping himself' for the presentation of a list of candidates for the renewal of the board of directors of Generali: "We still have to understand, like everyone else, how the framework of rules regarding the election of the board of directors will be defined and therefore secondarily what the intentions of the board of directors of Generali will be" he said regarding the possible Presentation of a list of Piazzetta Cuccia if the new rules of the Capital Law will convince the Generali board not to file a list of the board of directors. “After these two elements are clarified we will be able to make our decisions,” he added. “Like all operators in the financial markets we have an exchange of views with the executive and we, as well as others, have represented improvements to the advantage of the entire market, the entire system. Then to each his own job, it is up to the counterpart, it is up to the Government to draw conclusions", he added.
Plan targets confirmed. Dividend seen growing
Mediobanca has confirmed the objectives defined in the plan called “One Brand-One Culture”. For the entire financial year 2024-2025 The institute expects that the strength of Wealth Management will continue to increase the assets of the customers and with a annual collection of 9/10 billion, while the selective growth of assets and the efficiency improvement activity will allow to reduce further the risk-weighted assets (-3 billion in twelve months to 47,4 billion) also with the introduction of the Basel IV regulatory framework.
I revenues of banking businesses are seen in “moderate growth” driven by the sustained dynamics (low double digit) of commissions, driven by the WM and the less capital-absorbing services of the CIB. interest margin will remain “resilient”, particularly in the second half of the year. The cost/income ratio will be 44%; the cost of risk is expected to be 55 basis points; earnings per share are expected to grow by 6/8%.
Shareholder remuneration includes a dividend growth, with a confirmed cash payout of 70% (interim dividend in May 2025 and balance in November 2025). Capital generation is expected to bring the Cet1 at year end at 15,5%-16%.
CEO Nagel: Best Results Ever. Ready to Seize Opportunities
“After closing the last financial year with the best results ever, Mediobanca has also confirmed the growth of all its divisions in this quarter, consolidating the main initiatives of the 2023-2026 plan", he underlined the CEO, Alberto Nagel. “The priority objective for this financial year is a strong strengthening of the physical and digital distribution platforms to allow for robust and sustainable growth in revenues for all businesses beyond the plan period, albeit in a different macro context. Mediobanca is ready to seize the opportunities of the scenario in the coming months, thanks to its favorable positioning in the context of falling rates, addressing the volatility of the environment with its prudent risk management”.
Commissions on the Rise: Wealth Management Reaches $103 Billion in Assets
Nagel's plan continues to focus on commissions. These have increased commissions in all divisions, starting with those that derive from the division Wealth Management, which represents 53,8% of the group, which showed the best growth: +14,9% to 124,4 million. Wealth Management recorded a net collection doubled at 2,6 billion in the quarter, reaching 103 billion in total assets, with revenues up 4,9% to 228,4 million and profits up 6,4% to 53 million. Management fees also increased +9% to 92 million, upfront +10% to 20 million and bank fees +11% to 25 million.
However, the commissions are the ones that shine. Corporate and Investment Banking, which grew by 26% to 83,7 million with a contribution from Debt Division on the rise (from 17 to 21 million) and that of theInvestment banking of 32,5 million (+37%).
