Third quarter of FY 2022-2023 with double-digit growth e 9 months of record for Mediobanca which presented its numbers, announcing that the new guidelines will be presented on 24 May strategic plan 2023-26.
Mediobanca: the third quarter accounts of the 2022-2023 financial year
Mediobanca closed the third quarter of the 2022-2023 financial year with a Net income of 235 million, up 24% from a year earlier. The result beats consensus expectations which expected profits of 214. Double-digit increase (+10%) also for the revenues, which rose to 760 million. In absolute terms, this is the "second best quarter ever", underlines the bank led by Alberto Nagel who, in the reference quarter, also recorded a interest margin of 446 million, up from 2022.
Mediobanca: accounts in the 9 months reach all-time highs
In the 9 months ended 31 March, Mediobanca's profit stood at 791 million, beating analysts' expectations of 770 million and recording a 10% increase. On the other hand, revenues increased by 13% to 2,4 billion, while the interest margin rose by 17,4% to 1,3 billion, with commissions equal to 657 million (+1,9%).
Going forward with the data, structural costs increased by 8,1% to 1 billion, for a cost/income ratio that fell to 43%.
In terms of capital solidity, the coefficient Cet1 increased to 15,4%, while the fully loaded figure considering the payout at 70% and without the application of the Danish Compromise is 14,4%. As for the aggregates, the loans to customers grew by 4% per annum and after a first six-month increase of almost 2 billion, in the last quarter they fell from 53,6 to 53,2 billion (-0,8%), reflecting "the selective trend of disbursements in margins adjusted for risk". The gross impaired assets they dropped to 1,3 billion and are 2,4% of loans, an incidence that drops to 0,6% (equal to 333,8 million) net of adjustments.
Funding "returned to 58,8 billion after the peak in December 2022 (62 billion) and discounted the repayment of Tltro loans, as well as the conversion of Wealth Management deposits (from 28,8 to 27,5 billion) into assets under administration and management ”, says the bank.
“In the nine months, the group has been able to maintain the highest level ever achieved in revenues, profit and profitability (Rote of 13% the maximum levels of European banks), optimizing the management of assets and liabilities and benefiting from the strong positioning in businesses that are the creators of long-term growth – commented the managing director Alberto Nagel -. The diversification of the business portfolio favored the growth of all indicators and confirmed our ability to generate value in different market scenarios while maintaining prudent risk-taking and strong capital generation and endowment'. The results for the nine months, underlined the bank, are "at all-time highs, beyond the plan targets".
Mediobanca sees revenues above plan targets in 2022-2023
In light of the 9-month results, Mediobanca estimate for the entire 2022-2023 financial year “revenues in the order of 3,2 billion, higher than the plan target of 3 billion, of which net interest income of approximately 1,8 billion (+20% per annum) and net fee and commission income over 800 million, almost stable on an annual basis ”. Risk-adjusted operating income is expected to be approximately €1,5 billion,”'up by more than 15%, net of a cost of risk expected in the range of 50-55 basis points'. The cash payout is confirmed at 70%.
Nagel on the tax on extra profits: ”It is good that the banks remain in good shape”
'Our capital has very interesting generation dynamics, which will also be confirmed in the current quarter. This leaves us with a very broad range of options that we will decline on the Capital Markets Day”, said the CEO of Mediobanca, Alberto Nagel, to those who asked him if the institute will be able to evaluate the distribution of excess capital to shareholders, even with buyback.
Replying on instead GeneraliNagel said: "I refer you to the Capital Markets Day where we will give our position on this." As for the strengthening of Francesco Gaetano Caltagirone's share capital, the manager declared: "We are responsible for managing the group and our task is to give the greatest possible satisfaction to our shareholders, as well as encouraging the most genuine and transparent engagement possible with The partners".
“We must remember the path that the banks have made in the last 5-6 years. We come from years of negative rates, we must not only consider the positive part, but also the negative one”, said Nagel regarding the possibility of new taxes on bank profits. “Today banks, as is obvious, are given an important task, that of finance the economy in a time of crunch monetary policy – he added -. It is good that Italian banks remain in good shape to fulfill these tasks”.
