Financial statements for period ended 31 March 2016 approved

Price sensitive

Loans and net interest income up 8%

Gross operating profit of €558m, up 11% for 9M and up 5% in Q3

Net profit of €442m for 9M and €121m in Q3 (up 58%)


  • The Mediobanca Group offset the pronounced adverse financial market trend, with interest rates at all-time lows, through business diversification and the high quality of its assets, delivering growth in its operating results for the nine months:
    • Lendings up 8%, to €34.8bn, with growth in both CIB (9%) and RCB (10%) and spreads resilient
    • Funding up 6%, to €45.5bn, reflecting broad diversification at lower cost
    • Net interest income up 8%, to €906m, evenly split across the three quarters, driven by ongoing and profitable growth in consumer credit (up 13% to €578m)
    • Loan loss provisions down 22% to €319m and the cost of risk declining (to 126 bps) as a result of the continuing improvement in asset quality: NPLs fell for the fifth quarter in a row, from €1,220m at end-Dec. 2014 to €1,055m, decreasing also to just 3.0% of total lendings with the coverage ratio rising to 54%; while bad loans fell from €270m at end-Dec. 2014 to €248m, 69% covered
    • Gross operating profit   up 11% (from €502m to €558m), despite the 6% rise in costs for the period (to €643m) linked to expansion of the distribution capacity and the launch of several projects relating to the Group’s infrastructure, including the advanced internal rating-based model validation process (AIRB)
    • Net profit €442m (31/3/15: €466m), due solely to non-recurring items (e.g. one-off contribution to Bank Resolution Fund totalling €57m)
    • Capital ratios  stable at the best sector levels:
    • CET1: 12.5% phased-in (13.2% fully phased) with RWA stable at €60bn helped by the first optimization measures (market risks reduction)
    • Total capital: 15.7% phased-in (16.2% fully phased)
    • Cost/income ratio: 42%
    • ROTE: 7%
  • A net profit of €121m was delivered for the quarter, up 58% Q.o.Q, due to growth in the banking businesses (which saw revenues increase by 2%, and GOP up 20%) recorded in all segments:
    • CIB: revenues (up 6%) and GOP (up 28%) reflect the strong performance in CMS business for clients,  growth in lendings (up 11%), and the cost of risk being reduced to zero (helped by writebacks of several positions)
    • RCB: revenues (up 2%) and GOP (up 14%) were boosted by the growth in net interest income (up 13%) and the ongoing improvement in asset quality (cost of risk declining to 225 bps). Fee income from asset management products sold by CheBanca! continues (AUM up to €3.8bn from €3.6bn at end-Dec. 2015).

Last update: 15/07/2016 - 11:47