“Record results” for Mediobanca in the first half of the 2024-2025 financial year, which closed with profits well above analysts' expectations and increasing revenues. The board of directors, which approved the accounts, also decided to raise the targets for 2026 and reiterated its opposition to the takeover bid by Monte dei Paschi. It is "strongly destructive of value". This is what the CEO of Mediobanca declared, Albert Nagel, at the end of the conference call on the 2024 results, explaining that the proposal does not offer “any dimensional or distribution advantage” for the two banks, nor does it “strengthen the market positioning”. “We are different animals”, he commented with a provocative joke.
At Piazza Affari, the Mediobanca title confirms its position among the best blue chips, recording an appreciation of 1,78%.
The semester of Mediobanca
In the first six months of the 2024-2025 financial year, theNet income Mediobanca's share price rose 7,9% to €659,7 million, significantly beating the consensus of €635 million. revenues grew by 6,8% to 1,847 billion, with a ratio costs/revenues down to 42% and a cost of risk at 50 basis points.
Il Red stood at 14% (+60 points), the interest margin was equal to 978,9 million, at the same levels as last year (996,5 million), while the net commissions rose to 546,7 million (+29,5%), marking a “new quarterly record” of 315,5 million. The Cet1 is at 15,2%.
Mediobanca raises targets to 2026
The Piazzetta Cuccia institute has revised upwards the objectives of its industrial plan and for the next financial year (2025/2026) estimates revenues of approximately 4 billion, up from the original target of 3,8 billion and a net profit above 1,4 billion, with a payout of approximately 100%.
Summing up, the total distribution cumulative in the 3 years of the 23/26 Plan stands at over 4 billion (from the 3,7 billion which was the original target of the plan).
Board of Directors Confirms No to Siena Takeover Bid
The Board of Directors of Mediobanca has reiterated its opposition to the 13,3 billion takeover bid launched by MPS, calling it “devoid of industrial and financial rationale. Nagel stressed that a merger between the two entities could lead to “a kind of hybrid that, at least in our view, is not positive”, with the risk that the limited overlap between the activities of the two banks would lead to “loss of customers and revenue"and "significant costs to retain resources” to the detriment of future profitability.
"We do not have never had a history or problems di asset quality or legal cases and therefore we think that our profile will be diluted if we do a transaction of this kind, due to the negative revenue outlook of commercial banks in general and of the bidder in particular,” Nagel said, confirming his no to the transaction.
Defining the offer once again “hostile“, Nagel recalled that no due diligence or preliminary discussion was conducted before the launch of the takeover bid. The Sienese bank “made a proposal for the control of Mediobanca without providing due diligence of MPS’s business plan, contingent liabilities or synergies,” he specified, adding that “there is a long tradition of unsuccessful combinations between a typically commercial bank and one active in Wealth and Investment banking”.
Nagel: “All divisions growing”
“After closing the last financial year with the best results ever, Mediobanca has also confirmed in this semester its growth of all its divisions, consolidating the main initiatives of the 2023-20626 plan”, said Alberto Nagel, CEO of Mediobanca, commenting on the half-yearly report. “All physical and digital distribution platforms have been strengthened, attracting the best talents – added the manager – the range of services has been expanded and increasingly repositioned on the Private Investment Banking model, with excellent recognition by customers in their investment, financing, ordinary and extraordinary consultancy decisions” he underlined.
The bank “is focused on the execution of the Plan One brand-One culture that places it as an operator increasingly focused on Wealth Management, strongly integrated with a synergic and diversified Corporate & Investment Banking. Shareholder remuneration and value creation place Mediobanca at the best levels in the sector, in a scenario of lower interest rates”, concluded Nagel.
Nagel on Generali: “We will have to present a list for the board of directors”
Moving on to another hot topic, Nagel addressed the issue of renewal of the board of Generali, underlining the importance of Mediobanca's investment in the company: "We want to be sure that the management and the board of directors that will be elected are the best possible, in terms of realizing the plan" and to "continue to have the operating and distribution performances that we are used to, which have been very positive in recent years". Regarding the presentation of a list, already yesterday the CEO had confirmed that "it is likely” and that the decision was influenced by the lack of a proposal from the outgoing board of Generali. “We will work on a list to present,” Nagel reiterated, adding that “this time the board of Generali has clearly said that it is not able to present its own list of the board” and, therefore, “we must somehow return to what we did before this type of practice was introduced three years ago.”
Updated Tuesday, February 11 at 11:30
