Outlook
We are heavily committed to implementing the strategic guidelines set out in the 2019-2023 Plan, leveraging on the distinctive traits of our business model and on the proven ability to deal with unfavourable economic cycles by turning criticalities into opportunities
The Mediobanca Group is strongly focused on delivering the strategic objectives set out in its 2019-23 plan, the main growth priorities and objectives of which are confirmed in the post-Covid scenario.
For 2021, the sharp reduction in new loans seen in the past four months will be reflected in the contributions of Consumer Banking and Specialty Finance to next years’ revenues. The Group has already launched a series of initiatives to keep down the cost of funding and increase the proprietary portfolio’s contribution, through increased short-term use of the LTRO programme.
The expected reduction in net interest income should be absorbed by growth in Wealth Management fees, in view of the good performance in TFAs in 4Q and further growth expected next year as well, and in Corporate & Investment Banking, where the deal pipeline is looking healthy. Furthermore, in the absence of any further market corrections of which there is no suggestion at present, net treasury income should return to near last year’s levels. Costs will continue to reflect the IT investment programmes and enhancement of the commercial network provided for in the 2023 strategic plan. The cost of risk is expected to normalize in 2H FY 2020-21, and so be slightly higher in the Consumer Banking component in particular.
