Shareholder remuneration

UP TO €2.5BN TO BE DISTRIBUTED
DPS UP 28% OVER THE FOUR YEARS

Over the course of the strategic plan’s time horizon, the Group will return substantial funds to its shareholders, up to a maximum cumulative amount of €2.5bn in the four years (2020-23), some 50% higher than the aggregate amount distributed in the 2016-19 period.

This increased distribution will be made possible by the Group’s high earnings generation capacity and the change in our capital management strategy. Unlike in the past, a target CET1 ratio phase-in level has been identified and stated over the course of the plan, equal to 13.5% each year (12.5% fully loaded), a level which will be adequate to:

  • Maintain our ratings at the best-in-class levels in the Italian banking panorama;
  • Consolidate Mediobanca’s position as one of the best capitalized banks in Europe, a factor which is particularly significant in Corporate & Investment Banking and Wealth Management activities.

After organic growth and acquisitions, the Group will distribute capital each year in excess of the 13.5% CET1 phase-in ratio level, in a shareholder remuneration policy that will combine dividend payments with a share buyback and cancellation scheme. Subject to annual authorization from the ECB  and by shareholders in general meeting, it is anticipated that:

  • The dividend per share in 2020 will be €0.52, 10% higher than the €0.47 paid in 2019. In the years that follow, the dividend will be increased by 5% per year to reach €0.60 in 2023. Overall a total amount of €1.9bn in dividends will be distributed in the course of the 2020-23 period;
  • A new share buyback and cancellation scheme will be implemented, involving a minimum cumulative amount of €0.3bn and a maximum cumulative amount of €0.6bn over the course of the plan, starting from October 2020, to be assessed on a year-by-year basis in view of the trend in the capital ratios (corresponding to a maximum amount of 2% of the Bank’s share capital each year).
  • The distribution policy will be revised if the CET1 ratio phase-in is below 13% (management buffer of 50 bps to ensure operating flexibility).

 


Maintain our ratings at the best-in-class levels in the Italian banking panorama

Consolidate Mediobanca’s position as one of the best capitalized banks in Europe
 

Up50%
SHAREHOLDER REMUNERATION maximum
2.5bn in the four years