In June Mediobanca it closed the 2014-2015 financial year with strong growth in numbers. L'Net income stood at 590 million (+27% year on year) ei revenues they exceeded 2 billion for the first time (2,045, +12%). The proposed dividend beats expectations: €0,25 per share (+67% compared to the previous year), with a payout of 36% (from 27%). This morning Mediobanca shares on the Stock Exchange it gains 2,3%, to 9,985 euros, achieving the best rise of the Ftse Mib.
Profits were driven by the performance ofbanking (net profit of 249,2 million, against 18,7 million) which compensates for the lower contribution of principal investing (335,4 million from 449,3 million).
Revenues are supported "by a broad geographical and business diversification", with an increase in all banking components, writes the Bank. On the other hand, the contribution of Generali is reduced. The year also highlighted a cost/income ratio down to 41% from 43% and a reduction in the cost of risk to 168 bps from 230.
The sale of equity investments for 291 million yielded capital gains of 126 million (including Telco/Telecom for 84,5 million and Pirelli for 23,6 million). On the balance sheet front, the fully phased Cet 1 stood at 13,2% and the phased-in at 12%.
Lastly, on the M&A front, Mediobanca has communicated the acquisition of Cairn Capital, a London-based asset manager specializing in credit in which the Italian bank will buy 51% mainly from financial shareholders (including the Royal Bank of Scotland, which will exit the capital). Mediobanca will have the option to acquire the remaining 49%, largely held by management, starting from the third year.
The closing is expected by the end of the year. Cairn Capital had $30 billion in assets under management as of June 5,6 and $9,1 billion in long-term advisory mandates.
“This transaction confirms our strategic focus on building an asset management platform with attractive return on capital prospects and represents a further step in the international development of Mediobanca – commented the CEO of Mediobanca, Albert Nagel -. Cairn Capital is an excellent company, with top-level management and great strategic complementarity with Mediobanca. For us, credit represents a very interesting asset class with important business synergies with our Cib business”.
