The Mediobanca Group is focused on three highly specialized activities: corporate and investment banking, consumer banking, and wealth management. The latter in particular, with the adoption of the new 2016-19 strategic plan, is set to become a major growth driver for the Group as a whole.
Our Group structure, reshaped in the 2016-19 business plan, consists of three complementary and synergic pillars: corporate and investment banking, in which we are Italian market leader and have an established international presence as well; consumer banking, an area in which we have been pioneers in Italy, and wealth management, an area in which we are looking to strengthen further through acquisitions.
Starting in 2003, we decided to simplify the group’s structure, disposing of non-strategic legacy equity investments.
Our business model stands out among financial institutions for our prudent approach to the management of our different business areas and a preference for profitability over volumes. These characteristics have ensured – and continue to ensure today – the high quality of our loans portfolio, among the best in the Italian banking sector.
Business model based on highly specialised activities
- Business historically part of Mediobanca DNA
- Specialist, client-driven activity
- Fee-based business, profitable but cyclical
- Activity always well diversified by source and product, but now also by geography as well
- Historical business launched in the 1960s
- Specialist, domestic business with high entry barriers
- Stabilizes revenues and drives total income at Group level; highly profitable
- Offers high credit risk fragmentation
- Business with highly specialized content
- Fee-generating and K-light business
- Solutions business, profitable even on smaller scale
- Private banking synergic with CIB activity
- Strategy: acquisition of small/medium-sized companies
- Portfolio inherited from the past
- Assicurazioni Generali stake: stabilizes revenues and profits, investment which has delivered positive return
- AFS portfolio: disposals in progress
INCOME BY BUSINESS AREA
Figures as at 30 June 2016
INCOME: BALANCED BETWEEN CORPORATE AND RETAIL ACTIVITIES
Income is balanced between corporate/principal investing (43%) and retail/private (57%).
Within “wholesale banking”, international operations count for almost half of the income (45%), while the retail business is concentrated in Italy.
Income from equity investments derives mainly from the stake in Assicurazioni Generali.