2014/2016 Strategic Plan guidelines approved
Banking revenues CAGR 10%, 2016 ROE 10-11%
Simplify business model, reduce equity exposure by € 2bn
Core Tier 1 ratio (Basel 3) 11-12%
Mediobanca has approved the guidelines of its 2014-2016 strategic plan, which, based on the solid banking results delivered, focuses on growth, profitability and disciplined use of capital.
The strategy is aimed at achieving, over the medium term, a business model which is:
simpler and more profitable
focused on three specialized banking activities (CIB, Retail and WM)
able to generate a growing, more geographically-diversified flow of revenues
efficient in terms of risks and costs.
To achieve these objectives, the Group intends to:
significantly reduce equity exposure, optimizing capital allocation
empower international CIB activities
invest in human talent and technology to develop higher fee-generating, capital-light businesses, including the launch of Mediobanca Alternative Asset Management (“MAAM”)
retain close control of risks and asset quality.
Main Group financial targets for June 2016:
Core Tier 1 ratio (Basel 3) 11-12%, with payout at 40%
Reduce equity exposure by €2bn, as a result of:
€ 0.4bn asset “clean-up”: all listed stakes to be marked to market 2
€ 1.5bn in disposals, including 3% of Assicurazioni Generali investment (to be reduced from 13% to 10%)
Banking revenues of € 2.1bn, CAGR +10%3
Cost of risk stable at 150 bps
“MAAM/WM”: to contribute 15% of MB Group banking revenues by year 5 (not included in plan objectives)