Press release - Financial statements for period ended 30 June 2012 approved
Board of Directors’ Meeting
Milan, 20 September 2012
Financial statements for period ended 30 June 2012 approved
11.5% Core Tier1, 9% ROTE adj.
Normalized PBT(1) up 6% to €563m
Proposed dividend (2) : €0.05 per share (52% payout)
In an extremely difficult operating scenario, the Mediobanca Group’s results for the twelve months reflect stronger financials and a positive performance in banking activities:
- Core Tier1 ratio up to 11.5%; NSFR(3) well above 100%
Reduction in riskiness of assets:
- exposure to equity reduced by €2bn
- risk profile of some corporate exposures substantially improved
- government bond portfolio increased, with shorter duration
Normalized PBT¹ up 6% to €563m, despite the strong pressure on revenues and the increase in the cost of risk in the second half of the year especially. The main items performed as follows:
- revenues flat at €1,990m (€1,983m), with net interest income stable at €1,070m; trading was strongly positive (up 41% to €267m), offsetting the reduction in fee income (down 7% to €483m);
- operating costs down 4% to €789m, with personnel expenses down 6% (employee headcount stable at 3,500); cost/income ratio down 2 points, to 40%;
- cost of risk up 10 bps, to 130 bps; asset quality remained good (NPLs/loans=0.6%; total bad loans/loans=2.4%)
Contribution from securities and equity investments heavily negative, at minus €402m (minus €53m), representing the balance between:
- profits from investments: €170m (€203m), due to lower contribution from AG
- writedowns to PI stakes: €191m (€113m Telco, €78m RCS)
- writedowns/net losses on AFS securities: €382m
- Group net profit: €81m (€369m)
- ROTE adj. confirmed at 9%
- Proposed dividend: €0.05 per share, corresponding to a payout of 52%
(1) Normalized net profit: excl. PI contribution and before writedowns to securities and investments.
(2) To be taken from the Bank’s reserves.
(3) NSFR= net stable funding ratio.