Results 2013/2014 – Draft financial statements as at 30 June 2014 approved
Net profit up to €465m
CET1 ratio 11.1%
Back to dividend: €0.15 per share
Mediobanca’s 2014-16* strategic plan aims at focusing Mediobanca’s business model on three specialist banking activities (CIB, Consumer and WM), efficient in terms of costs and risks, able to generate profits/returns for shareholders which are sustainable over time. In order to achieve these goals, the Group is reducing its equity exposures, enhancing international CIB activities, and developing higher fee-based and capital light businesses, while preserving asset quality.
One year since the plan’s approval, the Mediobanca Group has achieved the following results:
- Net profit of €465m (30/6/13: €176m loss); ROE 6%
- Revenues up 12%, to €1,819m, and gross operating profit up 17% to €1,028m; results show growth in net interest income (up 6% to €1,087m), fees (up 3% to €424m), and the contribution from Assicurazioni Generali (up from €17m to €261m)
- Disposals on equity investments totalling €840m, yielding gains of €240m
- Increase in coverage ratios for NPLs (up 5 bps to 50%) and bad debts (up 1 point to 67%), also due to non recurrent loan loss provisions (€250m), offset by the gains generated on investments
- Capital ratios strengthened, benefiting from capital management actions – redemption of €1.2bn hybrid insurance loans, and authorization to weight Assicurazioni Generali investment at 370%; hence the Mediobanca Group now shows:
- B3 CET1: phase-in** = 11.1% - fully-phased = 12.5%
- B3 total capital: phase-in = 13.8% - fully-phased = 14.7%
- Banking operations increasingly focused on capital-light activities
- CIB: enhancement of international franchise, increase in non-domestic component of revenues (from 31% to 48%), launch of factoring platform, growth in private banking fees (up 11%, with AUM up 9% to €15bn)
- RCB: launch of asset management activities in CheBanca! (over €400m raised in last 6M), commercial agreement Compass/MPS in consumer credit
- Return to dividend: proposed €0.15 per share, 27% pay-out
* Mediobanca 2014-16 business plan approved by Board of Directors on 20 June 2013.
**Capital ratios calculated in accordance with CRR/CRDIV. Phase-in: reflects weighting of 370% for investment in Assicurazioni Generali, as opposed to deduction; fully-phased: CRR/CRDIV rules fully applied, with the entire AFS reserve included in the definition of CET1.