Financial statements for six months ended 31 December 2011 approved

Mediobanca Board of Directors’ meeting

Milan, 22 February 2012

Financial statements
for six months ended 31 December 2011 approved

Solid performance by ordinary activities
Growing contribution by RPB division
Net profit €63m, due to €269m securities writedowns

 

• Six months impacted by Eurozone crisis, reduction in value of the main asset classes, and exceptionally difficult operating conditions for financial institutions
• In this scenario, the increased diversification of the Group’s income sources and growing contribution from the RPB division enabled the following performance:
  • revenues down 4% Y.o.Y.  (to €973m), exclusively as a result of reduced income from PI (down from €113m to €58m); ordinary activities show revenues stable at €901m, on:
    • net interest income up 4% to €555m, boosted by RPB (up 15% to €362m),
    • net trading income stable  Y.o.Y. (at €113m) but increasing in last quarter,
    • fee income down 12% to €234m, due to reduced corporate activity
  • operating costs down 2% (to €399m), with labour expenses down 5%
  • reduction in the cost of risk (116 bps, vs 130 bps at end-Dec. 2010) and in bad loans as % of total loans (down from 1.9% to 1.7%)
  • writedowns/losses on AFS/PI securities portfolios totalling €269m (not material last year), €114m of which in respect of Greek sovereign debt (now recognized @30% of nominal value) and €55m on RCS MediaGroup (@€1.23 per share); €44m gain on sale of property in Monaco
  • net profit €63m (vs €263m last year), entirely attributable to RPB division
  • normalized ROE stable at 8%
  • improvement in funding and liquidity:
    • funding: up from €51.7bn to €54bn as a result of €4bn, three-year ECB loan at end-December and increase in CheBanca! deposits (up from €10bn to €10.7bn in last quarter)
    • liquid financial assets up to €18.7bn (30/9/11: €16.7bn)
  • Core Tier 1 ratio 11.0% (30/6/11: 11.2%)