Mediobanca closed the first quarter of the 2024/2025 fiscal year on September 30 with a net profit of 330 million eurosdown 6.1% compared to the same period of the previous year.
Revenue supported by commissions
THE revenues they turned out almost stable at 864.6 million eurosalbeit decreasing compared to the previous quarter (978.6 million) ed lower than consensus (884 million)due to the seasonality of CIB (Corporate Investment Banking) and the performance of General Insurance. The result benefits from double-digit growth in commissionswhich closed the summer quarter with a +29% to 231.2 million euros and “balance” the decline in trading and the contribution of the insurance company; growth is double-digit even on a like-for-like basis (+19%). The interest margin it remains solid at 485 million, although slightly down compared to the previous quarter (-7.4 million) and the same quarter of the previous year (-10.7 million).
The progress of the collection
There total collection drops to 62.1 billion (-1.6 billion) after the elimination of the T-LTRO (-1.3 billion) and with less recourse to the interbank channel (from 6.8 to 6.5 billion). The Total Financial Assets (TFA) rose to 103.2 billion (+15.8% y/y; +3.7% q/q) with
an important growth in the AUM/AUA quarter (from 71.5 to 75 billion).
There Net inflows from Wealth Management reached 2.6 billion euros, doubled compared to a year ago and at the highest level in the sector, with a market share of around 10%.
The guidance for the year
For the 2024-2025 financial yearMediobanca expects one annual collection of 9/10 billion while revenues from banking businesses are expected to grow moderately driven by the sustained trend (“low double digit”) of commissions. Earnings per share (EPS) are expected to grow by 6/8%.
“After closing last year with the best results ever, Mediobanca has also confirmed the growth of all its divisions in this quarter, consolidating the main initiatives of the 23-26 Plan”, commented the CEO, Alberto Nagel, recalling that “the priority objective for this financial year is a strong strengthening of the physical and digital distribution platforms such as to allow robust and sustainable growth in the revenues of all businesses beyond the period of the Plan despite in a different macro context”.
Off to buybacks and returns for shareholders
Mediobanca has also started the execution of the treasury share purchase planworth 385 million euros. The plan will be executed by June 2025 and will involve the cancellation of 80% of the treasury shares resulting from the purchase.
With the aim of increase remuneration for its shareholdersMediobanca expects a 70% cash payout and the buyback of own shares.
Title down in Piazza Affari
Meanwhile, the Mediobanca shares they slipped today on Piazza Affari, despite recording a better-than-expected quarterly profit. The shares of the Piazzetta Cuccia Institute, suspended at the start due to excessive decline, maintained a mid-day 8% drop compared to the day before, settling at 14.32 euros.
