Financial statements for three months ended 30/9/16 approved

Financial statements for three months ended
30/9/16 approved

Net profit up 11% to €271m, best quarterly result since 2008

Growth in banking activities (GOP up 16%)

Net interest income up 4%, loan loss provisions down 25%

Consolidation of WM acquisitions (Cairn Capital and Barclays Italy)

Equity stake disposals continue

 

  • For the three months under review, the Mediobanca Group delivered an 11% increase in net profit, from €244.3m to €270.7m, reflecting the growth in gross operating profit (up 16%, from €194.9m to €226.9m), driven by the increase in revenues from banking operations and the lower cost of risk in all business lines. Compared to last year the results include the contribution of Cairn Capital, and also, since 26 August 2016, Barclays’ Italian retail operations which were acquired by CheBanca!. The main income items performed as follows:
    • Consolidated revenues were up 4% at €526m, €11m of which was generated by the new acquisitions (revenues rose 2% on a like-for-like basis);
    • Net interest income rose by 4% to €314m (up 2% like-for-like, both Y.o.Y. and Q.o.Q.). Such growth was driven by the RCB division (net interest income up 6% to €255m), which includes an impressive performance by consumer credit in particular (net interest income up 14% Y.o.Y. and up 4% Q.o.Q.), and reflects the increase in lending volumes (up 16% to €19.6bn) as a result of consolidating Barclays’ €2.5bn mortgages;
    • The cost of risk fell from 141 bps to 98 bps (pre-crisis levels), on the back of a good performance in asset quality at all divisions (the cost of risk was wiped out in WB and fell from 353 bps to 284 bps in consumer credit) and consolidation of the Barclays loan book which is free of bad debts; the coverage ratio for NPLs was stable at 54% and for bad debts rose to 69%, while the Texas ratio too was stable at 16%;
    • Gains on disposal totalled €112m and refer chiefly to the disposal of roughly half the stake owned in Atlantia;
    • Net profit climbed 11% to reach €271m;
    • The capital ratios remained stable, despite the consolidation of an additional €0.9bn in RWAs from the Barclays’ loan book, due to the ongoing reduction in the CIB (market risk):
      • CET1: 12.1% phased-in, 12.5% fully-phased, including the profit for the three months;
      • Total capital: 15.7% phased-in, 16.3% fully phased.
Mediobanca Group