• Revenue Growth: Up 5% year-on-year.

• Return on Tangible Equity (ROTE): 14%.

• Net New Money in Wealth Management: EUR 7 billion, up 42% compared to last year.

• New Loan Production in CIB: EUR 1 billion, up 8% year-on-year.

• New Loans in Consumer Finance: EUR 6.7 billion, up 9% in nine months.

• Fee Income: Double-digit increase, up 24%.

• Interim Dividend: EUR 0.56 per share, representing 70% of net profit at half year.

• Share Buyback Completion: Almost 70% completed.

• Revenue from Wealth Management: 6% increase year-on-year.

• Revenue from CIB: Down 16% compared to last quarter.

• Consumer Finance Profitability: EUR 334 million, slightly up from EUR 330 million last quarter.

• Capital Generation: 55 basis points driven by CIB and consumer finance.

• Gross NPL Ratio: Reduced from 2.5% to 2%.

• Return on Risk-Weighted Assets: Increased from 2.6% to 2.9%.

• Capital Position: CET1 ratio at 15.6%.

• Net Profit in CIB: Increased by 33% year-on-year.

• New Loan Production in Consumer Finance: EUR 2.4 billion in the quarter.

• NII Growth in Consumer Finance: 9% increase.

• Funding Raised: More than EUR 7 billion in the last nine months at a cost of 65 basis points.

• Management Fees in Wealth Management: Increased from EUR 72 million to EUR 83 million year-on-year.

• Warning! GuruFocus has detected 7 Warning Sign with MDIBF.

Release Date: May 09, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Mediobanca SpA (MDIBF) reported a steady growth trajectory with a 5% increase in revenue and profit, and a ROTE of 14%.

• Wealth Management recorded EUR7 billion of net new money, up 42% compared to last year.

• Consumer Finance achieved a record new loan production of EUR6.7 billion, up 9% in nine months.

• The company completed almost 70% of its share buyback and declared an interim dividend of EUR0.56 per share.

• Mediobanca SpA (MDIBF) maintains a strong capital position with a CET1 ratio of 15.6%, driven by earnings and Basel impact.

Negative Points

• NII was flattish, with only slight improvement, indicating potential challenges in interest income growth.

• There was a decrease in core from 50 basis points to 39 basis points, with some write-backs not yet incorporated in capital.

• The Wealth Management deposit decrease is slow due to competition, impacting the cost of funding.

• The company faces execution risks with the proposed Banca Generali transaction, which could impact integration and value creation.

• Market volatility and macroeconomic uncertainties, such as trade wars, pose challenges to CIB revenue trends and transaction closings.