Compass acquires a 19.9% stake of BFI Finance
Mediobanca continues process of redeploying capital to specialized,
highly profitable businesses
Compass, Italian market leader in consumer credit by positioning and profitability, signed an agreement to acquire a 19.9% stake in leading Indonesian independent consumer credit operator BFI Finance (‘BFI’)
For Compass and MB the deal represents a significant value option.
The domestic consumer credit business is now complemented by operations in Indonesia as a second market with great potential distinguished by its strong “growth”, high margins and low risk profile (Ratings: Fitch BBB; S&P BBB-; Moody’s Baa2)
BFI is the ideal option for Compass to enter the Indonesian market.
A leading independent player in consumer credit, BFI boasts outstanding profitability levels and growth rates. The BFI platform is very solid and highly scalable, with a high-quality, long-tenured management team, extensive and effective distribution, profitable products and strong risk management capabilities
Entry to the Indonesian market will follow a gradual approach:
the investment, which will be equity-accounted in the consolidated financial statements, will be accretive immediately (FY18: Compass net profit up 4%, MB Group net profit up 2%), and entails limited capital absorption (-30 bps CET1)
The deal is expected to close by year-end 2018
 Compass is 100%-owned by Mediobanca S.p.A. and is consolidated as part of the Consumer Banking division.
 Percentage calculated based on voting shares (excluding treasury shares, equal to 6.3% of the company’s share capital).