Results 2013/2014 – Financial statements for period ended 31 March 2014 approved

Price sensitive

Net profit €395m

Equity disposals totalling €800m, with over €200m in gains

Net interest income up 6%


  • The MB Group earned a net profit of €395m in the nine months, ten times the €37m result posted last year, driven by the contribution from the Principal Investing division and by growth in net interest income, up 6% to €809m. The ROE is equal to 7.5%.
  • In accordance with the 2014-16 Strategic Plan guidelines, the AML optimization process has continued, with the following highlights for the nine months:
    • Equity disposals totalling approx. €800m, yielding gains of €221m (€69m in Q3); 50% of the disposals targeted for the three years of the plan have now been completed
    • High liquidity used (treasury assets down from €22bn to €20bn) to repay a further tranche of the LTRO and MB bonds (down by €1bn and €2.3bn respectively)
    • Diversification of CheBanca! funding, with indirect funding doubling, from €0.7bn to €1.3bn (over €200m of which in asset management), and remix of deposits (stable at €11.8bn) in favour of less expensive forms
    • Recovery in lending activity in all segments (RCB drawn loans up 10% to €4.2bn, CIB drawn loans totalling €2.8bn, vs €2.6bn for FY 2012/13 as a whole), but overall loan book stable (at Dec. 2013 level of €32.3bn) due to early repayments in CIB (€1.5bn)
  • The profit and loss account shows increasing revenue diversification, disciplined cost control and strict risk management:
    • Net interest income up 6%, to €809m, due to favourable diversification between retail (RCB up 11% to €571m) and corporate (CIB down 4% to €206m)
    • Increased contribution from PI (€340m, vs €194m loss last year), due to equity disposals and higher profits earned by Ass. Generali, (€174m, vs €64m loss last year), which offset the modest trading revenues (€10m, vs €207m)
    • Fee income down 8% to €275m, which does not reflect the robust capital market pipeline, with ECM/DCM deals worth over €28bn to be executed in the coming quarters
    • Costs stable at €563m (labour costs down 6%, administrative expenses up 7%)
    • Cost of risk 187 bps (vs 184 bps at end-Dec. 2013), due to need to retain high reserving levels (NPL coverage ratio stable at 45%), also in view of new classifications envisaged by EBA criteria
    • Net profit up to €395m (ROE: 7.5%)


Last update: 15/07/2016 - 11:31