Mediobanca on the shields on the Stock Exchange after the company announced the return to the dividend. The stock rose by 3% on the day the financial statements were released (which closes in June): the bank archived a profit of 465 million against 176 million losses in the previous year and decided to pay a dividend of 0,15 euros per share (27% pay-out) after the loss result in 2013 had led, in compliance with the Bank of Italy's recommendations, not to distribute coupons to shareholders. In 2012 the dividend was 0,05 cents (corresponding in any case to 52% of the pay out). Revenues amounted to 1.819 million, up 12% and above expectations.
These are the best results since 2008, as underlined by CEO Alberto Nagel speaking to analysts. However, Nagel said he was not satisfied with the bank's overall profitability. “We are not yet fully satisfied with our profitability – he explained – There are lights and shadows, we must focus on the shadows. We need to increase the return on capital in the CIB (corporate and investment banking, ed) improve the returns of the retail”.
In the financial year ended June 2014 Mediobanca recorded an operating profit up 17% to 1.0278 million and an interest margin up 6% to 1.087 million, while fees and commissions grew by 3% to 424 million. The contribution of Assicurazioni Generali (of which Mediobanca holds 13,2%) went from 17 to 261 million. In corporate and investment banking (CIB), the non-domestic component of revenues went from 31% to 48% against a target of 45% set in the 2016 plan.
THE CONTRIBUTION OF ASSIGNMENTS
TOWARDS EXIT FROM RCA AND TELCO BY JUNE 2015
The profit reflects an 11,7% increase in revenues (from 1,62 billion to 1,81) and the positive contribution of the securities portfolio (211,9 million, resulting from the balance between gains from disposals and write-downs). Mediobanca sold shareholdings for 840 million during the 2013-2014 financial year, with capital gains of 240 million. Disposals have thus already exceeded half of the 1,6 billion divestments envisaged in the Mediobanca plan for 2016. In detail, the bank has eliminated the equity investments in Gemina (206 million, with profits of 70 million), Saks (55 million , with profits of 29 million), Intesa Sanpaolo (60 million, with profits of 3 million) and Unicredit cashes (148 million with profits of 42,8 million).
Finally, the sale of 24 million RCS shares had a positive impact of 8 million. According to sources close to the board, Mediobanca intends to exit completely from RCS and Telco by the end of the current year, i.e. June 2015. These capital gains offset the increase in loan adjustments which rose to 736 million from 506,5 (+45,3%): €231 million related to corporate and private banking (+90,1%), €473,2 million to retail and consumer banking (+31,4%) and €32,8 million to leasing ( +29,6%).
600 MILLION FROM TOMORROW'S LTER
Tomorrow the ECB will start the program of subsidized loans to banks conditional, however, on the issue of credit. "We will take less than 1 billion in terms of total amount," anticipated Nagel speaking of 600 million euros in tomorrow's first tranche. In the second operation in December, the institute could even reach up to 1 billion, he added, if Compass's consumer credit were also included among the assets on the basis of which it is possible to participate in the operation.
Nagel confirmed that the bank will continue with the strategy it has started: "We will intensify new loans - he said - we will optimize funding and treasury". For Chebanca! the focus will be on savings and Compass will make use of distribution agreements. Other shares of the portfolio of securities available for sale (Afs) will also be sold.
At the capital level, the tier 1 common equity index on the basis rises to 11,1% from 10,3% at the end of March (based on Basel 3 criteria to date, or phase-in). Having applied all the Basel 3 criteria at the end of the transitional phase to 2018, the (fully-phased) cet1 capital ratio is 12,5% (from 10,9% in March).
A WOMAN TOWARDS THE VICE PRESIDENCY
TOWARDS THE RENEWAL OF THE BOD AT 18
The next appointment, on September 29, concerns the nominations. On that date, the Pact will indicate the list for the renewal of the board which, according to what some sources report to press agencies, could be reduced from the current twenty members to 18. The hypothesis of a female vice-president whose name should also be indicated by the first Unicredit shareholder (8,7% of the capital). The other vice president should be proposed by second shareholder Vincent Bolloré.
We bet on the confirmation of Marco Tronchetti Provera as vice president. There is also talk of a rotation among the bank's internal managers represented on the board, at least five. If there seem to be no doubts about the confirmation of Alberto Nagel, the president Renato Pagliaro and the general manager Francesco Saverio Vinci, the new entry could be represented by Alexandra Young, head of human resources. The Fininvest box still needs to be filled in, after Pier Silvio Berlusconi's resignation due to incompatibility. Of the 18 members, 17 will come from the Pact list. And a councillor, as he already is today, will be an expression of minorities.
