Mediobanca closes the first nine months of the 2012-13 financial year with profits down sharply: -64,5% on an annual basis, to 37,2 million. A result affected by the implementation of the fourth quarter accounts of the investee Generali, which had recorded write-downs of 1,3 billion. In the third quarter alone, Piazzetta Cuccia recorded a loss of 86,6 million, with an impact of Generali for 139,5 million. Both figures are slightly better than the consensus, which indicated 30 million for net income for the nine months and a deficit of 95 million for the quarter.
Mediobanca's Core Tier 1 at the end of March was 12%, against 11,8% at the end of December. Loan loss provisions increased by 11%, to €363,7 million, with coverage ratios on non-performing loans (70%) and impaired assets (47%) improving (they were respectively 59% and 37% last year ) and higher than the system averages. Impaired assets, although growing on an annual basis to 955 million from 840 million, show an incidence on total loans equal to 2,8%.
The cost of risk, against loans down by 9%, rose to 137 basis points from 120. The intermediation margin fell to 1,173 billion (-23,7%), but referring only to banking activities and therefore excluding the impact of the strategic holdings division, stood at 1,244 billion, a decrease of 13,8%. The stability of the retail segment, which represents 60% of total banking revenues, compensated for the greater structural volatility of the Corporate segment.
Structure costs decreased by 5,6% to 561,5 million with a decrease of 3,1% in personnel costs and 8,3% in administrative costs. The breakdown of the individual divisions shows the net profit of the Corporate & Investment banking division doubled to €176m, thanks to writebacks on financial assets (€12,9m against writedowns of €177,6m a year earlier) which partially offset the decline of revenues.
CheBanca! it reduced its loss to $11,4 million, with revenues up to $114,6 million from $107,1 million and costs down 17,3%.
At the beginning of the afternoon, the Mediobanca stock lost more than two percentage points.
