Mediobanca, profit at 555 million. Nagel: “Historical record” – Corriere.it

Mediobanca reaches the highest level ever achieved in revenues (approximately 1.6 billion), in half-yearly profit (555 million) — the best ever — and, considering a Rote of 14%, in profitability, which ranks at the highest levels of European banks. Thanks to the group’s strong positioning in businesses that have seen constant growth over the last 15 years. With these words, the CEO Alberto Nagel presented the half-yearly data, significant and significant numbers, not only for the growth rates, but also because they arrive at the middle of the financial year which ends at the end of June 2023, a balance which will also conclude the industrial plan cycle and will see the institute of Piazzetta Cuccia test the renewal of the board at the autumn meeting. The group has been able to better adapt to the new macro context by registering robust dynamics of the interest margin, prudent risk-taking and strong capital generation and endowment, said Nagel who is already measuring the results in view of the conclusion of the plan. With revenues of 1.6 billion, Mediobanca now sees the target of 3 billion in June achieved, with the prospect of beating the target. This is indicated by the numbers of the second quarter which recorded revenues of over 900 million (+20%) and a net profit of 293 million, up by 11%.

The markets appreciate and increase the stock by more than 2.3%. In fact, the Milanese institute also beat the consensus estimates which set revenues at 1.557 billion

High capital ratios

On the basis of the half-year result and the expected trend of the macroeconomic scenario, the Group expects continued growth in revenues for the entire 2022-23 financial year, driven by an estimated higher contribution from the interest margin and fee and commission income. The Piazzetta Cuccia-based group also expects growth in the operating result fueled by operating efficiency (cost/income ratio at 45%) and by the still low expected cost of risk, in line with the first half, high capital ratios, visible in the evolution and up from December 22, capable of supporting growth and solid remuneration of shareholders and a confirmation of the cash pay-out equal to 70%. The achievement of the 2023 Plan targets is also expected, despite the operating context of the last three years between Covid-19, the Russian-Ukrainian conflict and inflationary pressures, confirming the effectiveness of the group’s business model, capable of growing in any macroeconomic scenario .

The interest margin puts the turbo

Going back to the half-year, Mediobanca recorded growth in net interest income to 843 million (+15%) and fee and commission income to 472 million (+7%) due to solid growth in wealth management (+8%) and the high contribution of corporate & investment banking (+9%). In the second quarter, Corporate and investment banking reached its highest level ever in terms of commissions (117 million) also thanks to the closing of the largest transactions on the market. The cost of risk at 59 basis points, up in the second quarter to 71 basis points, explains Piazzetta Cuccia, due to the year-end adjustment of the Ifrs 9 models to a more severe macroeconomic scenario than that of June 2022, with an impact negative of around 25 million concentrated in the corporate & investment banking segment. Lastly, loans to customers rose to 53.6 billion (+6% compared to the same six months of last year and +2% compared to the previous quarter).