Strategy

The 2016-2019 plan brings our strategic reshaping to a completion. We are focusing on a business model that generates greater fee-based revenues for a lower capital outlay, while retaining our prudent approach to risk management and strong capital position.

In 2003 we embarked on a period of profound change, transforming from an equity holding company into a group of highly specialised banking businesses. Throughout 2013-2016 we focused on simplifying our business, selling the majority of our equity holdings and developing strategic banking segments.

The 2016-2019 plan will further accelerate this process, strengthening our operational model to focus Mediobanca on creating long-term value. To seize opportunities for growth, we have decided to create a dedicated division for wealth management, development of which is now a priority.

At the same time, we are working to optimise the use and allocation of capital, which will enable us to fully unlock existing value potential.

OBJECTIVES

 

ACTIONS

1. Growth in revenues, especially from capital-light, fee-based business   Leverage our strengths and exploit new opportunities in the Corporate & Investment Banking (CIB) and Consumer Banking markets
  • CIB: enhance client coverage in specific industries, sectors, customers segments  
  • SF: exploit opportunities in factoring and credit management
  • Consumer: enduring growth with an enlarged distribution
2. Significant improvement in profitability (ROAC) of banking business   Focus on developing wealth management, including through selective acquisitions
  • Integrate and develop recently-acquired companies
  • Serve Affluent & Premier clients of CB! with innovative offering (both proprietary and building FAs) and Private & HNWI with new brand MB Private, Spafid and CMB
  • Create and develop a Group AM factory 
  • Investing up to 200bps of CET1 in M&A opportunities 
3. Consolidate business model based on resilience and sustainability   Optimise capital allocation and use
  • Further reduce equity-stakes (PI, especially AG)
  • Proactive ROAC-driven capital use in all products and businesses
  • Adoption of Advanced Model on large corporate, consumer credit, mortgage portfolios

 

Last update: 01/03/2017