Mediobanca's net profit drops by 2011% in the first nine months of the 2012-75 financial year (the financial statements close in June) to 104,9 million euro after adjustments of 404 million. Greek government securities accounted for €130 million (of which €15,3 million in the third quarter) on the €235 million of write-downs on available-for-sale securities (of which €34 million by Delmi) and €169 million on equity investments (Telco for €113,3 million million with Telecom Italia's carrying price at 1,5 euros per share and Rcs for 55,2 million and now carried at 1,23 euros per share). Before these adjustments, adjusted gross profit stood at 522,6 million euros, up 14,4%, which the note says "represents the best result for the period since the beginning of the crisis". In the third quarter alone, net profit fell to 41,5 million from 156 million a year earlier. Meanwhile Piersilvio Berlusconi has been co-opted to the board of directors in place of his sister Marina and Vanessa Laberenne in place of Vincent Bollorè. Pierre Lefevre resigns.
In detail, the group archives stable results at 1.537 million in the nine months: the interest margin is slightly up by 2% to 813 million compared to a year ago but down by 5% quarter on quarter due to the increase in the cost of funding; net fees recovering quarter-over-quarter thanks to Cib sector contribution which recorded the best quarter since the start of the crisis, with adjusted gross profit at 213 million (but net fees are down 5% year-over-year) Trading improves 32% year over year and 22% quarter over quarter.
Operating costs decreased by 3%, especially for personnel costs, the cost/income ratio stood at 39% while the cost of risk stood at 120 basis points against 115 basis points in December 2011. Funding is up to 57 billion from 52 billion in June thanks to the 7,5 billion ECB refinancing and the increase in deposits by CheBanca! from 10 billion to 11,5 billion.
Liquidity rises to 23 billion. Value adjustments on loans remained stable from 320,9 million to 326,8 million with the improvement in consumer credit and retail banking which offset the wholesale and leasing sectors. Loans are down from December but up by 2,5% on June 2011.
