BoD Mediobanca - Interim financial statements for six months ended 31/12/19 approved
Mediobanca continues its growth story
with record levels of commercial activity:
€2bn AUM/AUA net inflows, €1.6bn in last 3M,
€5bn mortgage and consumer new loans
The Group has delivered growth
in assets: TFAs up 10% to €64bn; loans up 8% to €46bn;
revenues: up 4% to €1.3bn;
and net profit: up 4% to €468m;
Mediobanca among the top ten banks in Europe
measured by SREP and MREL requisites
which are stably low and comfortably met
- Strong investment in distribution, in line with 2019-23 strategic plan guidance: WM sales force now consists of approx. 1,000 professionals, with 70 added in 6M and 140 in 12M; Consumer Banking direct channels enhanced, totalling 206 branches/agencies, 7 opened in 6M and 14 in 12M; 41 Compass Quinto agencies launched.
- Record levels of commercial activity, with material growth in revenue-generating assets:
- Total Financial Assets (“TFAs”) up 10% YoY to €64bn, with Net New Money (“NNM”) in managed assets (“AUM/AUA”) of €1.9bn in 6M (€1.6bn of which in 2Q); MB now ranks as one of the fastest-growing operators in the Italian asset management market, in both the Affluent and Private Banking segments;
- Customer loans up 8% YoY, to €46bn (up 3% QoQ), with record new business in consumer credit (€3.9bn, up 11% YoY, €2bn of which in 2Q) and residential mortgages (€1.3bn, up 58% YoY, €0.8bn of which in 2Q).
- Growth in revenues (up 4% YoY, to €1,325m), with:
- Net interest income of €722m, up 3% YoY and up 1% QoQ, on higher volumes, with margins resilient in consumer, cost of funding under control and liquidity levels optimized;
- Fees totalling €329m, up 5% YoY and up 12% QoQ, driven by WM (€158m, up 12% YoY) and CIB Advisory (€65m, up 35%);
- Growth in GOP (to €625m, up 3% YoY), due to operating efficiency (cost/income ratio ~45%) and cost of risk(“CoR”) which reached all-time lows in 2Q (<50 bps in 6M and <40 bps in 2Q, with NPLs down 7% QoQ);
- Net profit up 4% YoY to €468m, and ROTE >10%, with all business segments contributing:
- WM: growth driver and top Group contributor to fees (50% of total in 2Q); revenues up 10% YoY (to €299m), net fees up 12% YoY (to €158m), net profit up 35% YoY (to €48m), ROAC up from 14% to 23%;
- Consumer Banking: leading contributor by revenues, net interest income and profitability; revenues up 4% YoY (to €532m), net interest income up 5% YoY (to €474m), ROAC 30%, on €167m in profits;
- CIB and PI: high, profitable contributions (CIB net profit €144m, ROAC 16%; PI net profit €187m, ROAC 13%).
- Capital and funding ratios stable at high levels:
- CET1 stable at 14.1% and more than 550 bps above the regulatory minimum;
- MREL liabilities >40% of RWAs (calculated as at 30/9/19), comfortably higher than the regulatory minimum.
- Mediobanca ranks as one of the top ten banks in Europe in terms of SREP and MREL requisites, which are stably low and comfortably met:
- SREP CET1 requirement confirmed at 8.25%, with P2R stable at 1.25% (making Mediobanca the second best bank in Italy and eighth of all banks in the ECB panel)
- MREL requirement confirmed at 21.6% of RWAs.