The Mediobanca Group today
We are among the best European banks in terms of growth in revenues, profitability, remuneration of shareholders and market performance
Mediobanca is a specialised financial group, whose business model is based on synergic, high profit margin and low capital intensity business sectors and in which the group boasts a solid competitive position.
- Since 2016, we have cemented our position in the Italian Wealth Management market, which offers significant long-term growth opportunities. We serve Affluent customers with Mediobanca Premier and HNWI and UHNWI customers with Mediobanca Private Banking and Compagnie Monégasque de Banque.
- In Corporate & Investment Banking activities, in which our roots lie, we hold a position of undisputed leader in Italy. We offer companies high-quality Advisory, Lending, Capital Market and Specialty Finance solutions. We have also established a consolidated presence abroad, in Spain and France in particular.
- Since our foundation, we have been present in the Consumer Finance market, where our subsidiary Compass Banca is one of the three main operators in Italy.
The 2023-2026 business plan forecasts further growth of the group and in the returns for all stakeholders, thanks to the effective and unique business model, albeit in a macroeconomic scenario that is expected to be challenging for the whole financial sector.
Highlights (annual consolidated results at 30 June 2024)
The Group delivered solid results in FY 2023-24:
- Revenues up 9% YoY to an all-time high of €3.6bn, mainly driven by k-light activities
- TFAs up to roughly €100bn (up 13% YoY) and RWAs down to €48bn (down 7% YoY)
- Cost/income ratio flat at 43%; cost of risk down to 48bps
- Net profit at €1,273m (up 24% YoY), with EPS at €1.53 (up 27% YoY)
- ROTE1 at 14% (up 1pp YoY) and RoRWA at 2.7% (up 30bps YoY)
- Total DPS at €1.07 (up 26% YoY), equivalent to 70% cash payout, of which €0.51ps of interim dividend already paid in May24 and €0.56ps of final balance to be paid in Nov24
- Good start to Strategic Plan Sustainability and Responsible Banking pathway
| PROFIT AND LOSS ACCOUNT | PROFIT AND LOSS ACCOUNT Value | BALANCE SHEET | BALANCE SHEET Value | OTHER INFORMATION | OTHER INFORMATION Value |
|---|---|---|---|---|---|
| Revenues: | € 3.6 bn | Total assets: | € 99.2 bn | S&P rating | BBB |
| GOP risk adj: | € 1.8bn | Customer loans: | € 52.4 bn | Fitch Rating | BBB |
| Net profit: | €1,273 mln | Funding: | € 63.7 bn | Moody's | Baa1 |
| Cost/ income ratio | 43% | Lending/funding: | 87 % | Payout | 70% |
| Cost of risk | 52 bps | TFA | € 82 bn | Capitalisation: | € 11.4 bn |
| ROTE | 14% | CETI | 15.2% | No. of staff: | 5,443 |
1) ROTE calculated using adjusted net profit (GOP net of loan loss provisions, minority interest and taxes, with taxation normalized at 33%, 25% for PB and AM, 4.16% for INS).
Our structure is based on three complementary and synergic pillars: Asset Management and Private Banking, sectors in which we gradually established a foothold over the last few years and in which we intend to invest further, also through targeted acquisitions; the historical activity of Investment Banking (Corporate & Investment Banking), in which we have a leading position in Italy, with a deeply-rooted presence abroad; Consumer Banking activity, in which we have been pioneers in Italy ever since our foundation.
Our revenues are currently balanced between corporate/insurance (roughly 40%) and Retail/Private (around 60%) activities. Revenues from equity investments refer primarily to the 13% stake in Assicurazioni Generali (from valuation using the equity method).
Over the last few years we have diversified our lending, to ensure a balance between corporate and retail.
Corporate loans:
- in Wholesale Banking, our group concentrates on large corporate, and around half of lending is carried out abroad;
- our portfolio is diversified by business sector and is increasingly less concentrated;
- we are not present in FICC activities (fixed income, currencies and commodities), in the process of global restructuring, and nor even in problematic segments/products such as small Italian companies, the shipping market and real estate development.
Retail loans:
- Consumer Banking accounts for roughly half of retail lending, with the remainder primarily residential mortgages;
- Consumer lending loan book is highly fragmented with a 24 month duration, personal loans rapresent more than half of the toal amount.
- TFA around €103bn as at September24
- AUM/AUA over 70% of TFA
- Wealth Management deposits at €28.2bn
