The Board of Mediobanca approved the results for the 2020-2021 financial year, which closed on 30 June, with revenues at historic highs and profitability rising to pre-Covid levels.
In detail, theUseful net amount reached 808 million euro, up 35% compared to the previous year. The figure is higher than the consensus provided by the company, which did not go beyond 789 million euros.
Operating profit jumped to 1,142 billion (+20%) returning to the pre-Covid levels of 2019, with a stable cost/income ratio of 47%.
As regards the turnover rose by 5% on an annual basis, from 2,513 to 2,628,4 billion, "despite the lower contribution of Assicurazioni Generali (-10% to 273,4 million) which became more significant in the last quarter (103,2 million)", reads the note from the group.
Revenues were “driven by the increased scale and profitability of Wealth Management and the strong business in Corporate & Investment Banking”.
Furthermore, after the go-ahead from the ECB, the board decided to propose a dividend per unit of 0,66 "in line with the 70% payout ratio indicated at the beginning of the year".
A new plan is also under way buyback up to 3% of the capital.
Mediobanca also writes that "the good performance of the vaccination campaign bodes well for the confirmation of the improvement in the macroeconomic scenario, despite the recovery of infections and inflationary pressures".
In this scenario, the institute "expects growth in profitable activities, in particular in financial assets managed on behalf of customers in the wealth management segment and in consumer and wealth management credit volumes".
This should allow “a growth in revenues with a progressively recovering interest margin, despite the continuing pressure on margins, and net commissions that consolidate the record level of the year just ended, also thanks to the growth of wealth management”.
In the meantime, "the progressive and continuous strengthening of the distribution network and digital platforms will continue with the usual cost control". Lastly, Mediobanca expects asset quality to remain "at the excellent levels achieved".
