Results 2013/2014 – Interim financial statements as at 31/12/13 approved

Net profit for the six months doubled to €305m

Equity investments worth €500m sold, yielding €150m gains

CT1 ratio 11.9%

 

  • In the six months under review, with the economic scenario still difficult and increasing attention being paid to asset quality (AQR), the Mediobanca Group doubled its net profit to €305m (31/12/12: €124m), while strengthening both capital (CT1: 11.9%) and non-performing loans  coverage ratios (now 46%)

 

  • The balance sheet shows:
    • Funding up 4% to €53.3bn: with new funding of approx. €5bn, the annual programme of issuance is almost complete, with a balanced and extended maturity profile for the bonds
    • Loans and advances to customers down 4%, to €32.3bn – despite substantial new business (RCB up 11%, to €2.7bn, and CIB drawn loans up to €2bn) – due to early repayments of corporate loans
    • Disposals of equity investments worth €512m, generating gains of €152m
    • Treasury assets up 8%, to €25.2bn, representing approx. 40% of total assets
    • B2.5 CT1 ratio up to 11.9% (30/6/13: 11.7%)

 

  • The profit and loss account shows:
    • Net interest income up 3%, to €535m, due to positive diversification between retail (RCB up 10% to €377m) and corporate business (CIB down 7% to €140m)
    • Fee income recovering in 2Q, with €108m added (vs €84m in Q1), due to upturn in capital market activity
    • Net treasury income modest, at €17m (€112m), but offset by increased contribution from PI (€245m, compared with a €33m loss last year), boosted by equity disposals and higher profits from Ass. Generali
    • Costs down for the third year running, by 1%; labour costs in particular (down 8%)
    • Cost of risk up to 184 bps, due to ongoing difficulties facing corporates and households, and disposal of certain corporate positions, as well as higher NPLs coverage (now 46%)

 

  • Strengthening of banking activity continues, in line with the 2014-16 Strategic Plan:
    • CIB: Stefano Marsaglia appointed Co-Head of CIB and Tayfun Bayazit as Chairman of Turkish business
    • Compass: commercial agreement with MPS (approx. 2,300 branches), creating largest “indirect” distribution agreement via bank branches (over 7,500)
    • CheBanca!: asset management platform launched
       
Mediobanca Group