Financial statements for three months ended 30/9/15 approved

Price sensitive

Net profit €244m, best quarterly result for the past five years

Net interest income up 13%, cost of risk down

CET1 ratio up 50 bps in three months to 12.5%

Gains on equity stake disposals totalling €88m

 

  • The Mediobanca Group earned a net profit of €244m, representing a sharp increase on the €160m reported at the same stage last year:
    • Net interest income rose 13.3%, to €303m, reflecting growth in all segments and in particular the RCB division (for which net interest income was up 14%, to €226m) due to higher loan volumes (up 9% to €15.8bn) alongside increased net profitability
    • Total revenues: down slightly, by 3% to €507m, due to a weak performance by fees and treasury income only in part offset by the higher contribution from Assicurazioni Generali
    • Cost of risk down from 157 bps to 141 bps, due to the healthy asset quality trend for all divisions
    • Gross operating profit: €195m, down year-on-year (€220m) but up quarter-on-quarter (€164m) and near the best levels seen in recent years
    • Gains on disposal: €88m, after the Group’s entire stake in Pirelli was tendered under the terms of the PTO
    • Net profit: €244m
  • Corporate & Investment Banking: result impacted by summer market volatility, positive outlook confirmed
    • Revenues down 33%, to €148m, despite 8% increase in net interest income (to €61m), due to lower contribution from trading impacted by the pronounced volatility on financial markets; positive mid-term outlook confirmed
    • Reductions in cost of risk (down to 31 bps) and NPLs (down 2% in the three months)
    • Net profit: €25m
  • Retail & Consumer Banking: Compass still the growth driver, CheBanca! profitable
    • Consumer: net interest income up 14%, customer loans up 10%, cost of risk down from 385 bps to 353 bps (with NPLs down 5% for the quarter). Growth is geared towards sustainable profitability, as reflected in net profit of €40m (30/9/14: €28m)
    • Retail: indirect funding up from €2.9bn to €3.1bn in the three months, and direct funding up from €9.6bn to €10.5bn. CheBanca! earned a net profit of €2m, on 27% growth in revenues (to €48m) and a 26% reduction in loan loss provisions (to €4m).
  • Capital solidity and asset quality strengthened further
    • CET1 ratio: 12.5% phased-in, 13.3% fully phased (including profit for the quarter)
    • Total capital ratio: 15.3% phased-in, 15.8% fully phased
    • Leverage ratio: 11.1% phased-in, 11.9% fully phased
    • NPLs down 2% in the three months, with coverage ratios stable at 53%.

 

Mediobanca Group