BoD Mediobanca - Quarterly financial statements for three months ended 30/9/18 approved

Quarterly financial statements for three months ended 30/9/18 approved
Positive start to FY19 despite uncertainty and market volatility
Revenues up 7% to €638m, GOP up 7% to €308m
Mediobanca continues on its growth roadmap, with:
focus on high-margin, specialized growing, businesses,
whose growth is driven by long standing trends,
one of the lowest risk profiles in Europe, and
low sensitivity to the domestic Italian spread widening
Results for the three months include:
  • Growth in lending (up 9% Y.o.Y. and up 3% Q.o.Q., to €42bn) and assets under management (“TFAs”, up 14 % Y.o.Y. and up 2% Q.o.Q. to €65bn), with net new money of €1.9bn for the three months
  • Growth in funding (up 2% Q.o.Q., to €50bn), driven by a healthy performance in deposits (up €1.7bn) and refinancing of debt securities. Average cost of funding under control (down 5 bps in the quarter to 85 bps)
  • Ongoing distribution enhancement in Wealth Management (18 CheBanca! FAs added during the quarter, for a total of 244) and Consumer Banking (15 new branches opened in the last twelve months, nine of which “light” branches)
  • Growth in revenues (up 7% Y.o.Y., up 3% Q.o.Q. to €638m), driven by all segments and income sources: net interest income up 4% Y.o.Y., on solid growth in consumer credit; fee income up 12% Y.o.Y., driven by Wealth Management; growth also recorded in income from equity accounted companies (up 9% Y.o.Y.) and trading income (up 5% Y.o.Y.)
  • Growth in GOP (after LLPs) to €308m, up 7% Y.o.Y. and 26% Q.o.Q.
  • Net profit €245m (down 18% Y.o.Y., due to absence of capital gains)
  • Asset quality remains excellent (NPLs/total loans: gross 4.5%, net 2%), cost of risk stable at low levels (56 bps)
  •   Capital², funding and liquidity ratios all high and unaffected by spread developments:
  •   CET1 phase-in: 14.2% (up 90 bps Y.o.Y., stable Q.o.Q.)
  •   CET1 fully-loaded: 13% (down 10 bps Q.o.Q., due to IFRS 9 application)
  •   Total capital: 17.9% phase-in, 17% fully-loaded
  •   LCR: 161%, NSFR: 108%