Mediobanca posts profits of 1.1 billion in the first nine months
Revenue is close to 3 billion. The investment banking arm performed well, handling 41 transactions. S&P is keeping an eye on Intesa and reserves the right to raise its rating
The merger with MPS appears to be fading, whilst the prospect is growing that Mediobanca will come under the umbrella of Intesa-SanPaolo, which is set to receive Consob’s approval for the prospectus that will launch the bid for Siena on 23 November. Mediobanca – which, for the second time in just over a year, will find itself the subject of a public takeover bid – goes into the process with its accounts in order. The results for the first nine months, released yesterday, show record revenues of 2.9 billion (+8.9 per cent), with profits of 1.1 billion (+13.3 per cent). “Mediobanca confirms the strength of its brand and franchise, which are underpinned by the standing of our clients and the professionalism of our staff,” emphasised CEO Alessandro Melzi d’Eril.
Growth was driven by all business areas, with the corporate and investment banking division – Piazzetta Cuccia’s long-standing core business – performing particularly well. In the January–September period, the division saw revenues rise from 603.9 to 689.2 million (+14.1 per cent), of which 119 million was generated overseas. France performed particularly well, with record results from the Messier boutique in the first half of the year. The division’s net profit stood at 233 million (+27.3 per cent). In investment banking, Mediobanca advised on 41 transactions, participating in some of Europe’s major M&A deals. These included the takeover bid by CVC and GBL for Recordati, and the public offer by Poste Italiane for Telecom Italia. Mediobanca also advised Eni on Plenitude’s capital increase, subscribed to by the US fund Ares and by Eni itself, and advised Lottomatica on its merger with Cirsa.
In the wealth management sector, which at the start of the year had been affected by the departure of a number of bankers following the acquisition of MPS, the last quarter showed signs of stabilisation, with profits recovering and a return to positive net inflows. For the nine-month period as a whole, total revenue has almost returned to previous levels, standing at 680.2 million compared with 685.5 million (-0.8 per cent). However, the division’s net profit is still 21.5 per cent lower than the result for the first nine months of last year, at 130.7 million compared with 166.4 million previously. Over the nine-month period, net inflows remained negative, but narrowed from 1.4 to 0.7 billion.
Consumer credit also benefited from the contribution of the banking channel, thanks to synergies with MPS. Revenues rose by 4.2 per cent to over one billion (1,000.5 million), of which 917 million came from net interest income (+4.9 per cent). However, the division’s net profit fell by 4.4% to 301.1 million, due, as Mediobanca’s press release notes, ‘a significant provision to the risk fund (around 8 million in the quarter) and higher tax charges (from 158.5 to 171.2 million).’
Finally, the Insurance & Principal Investing division closed the first nine months with a net profit up 17.9 per cent to 475.2 million, “thanks to the higher contribution from equity-method investments of 478.9 million (up from 397.3 million) and the recognition in the profit and loss account of positive effects from provisions and share price movements amounting to 59.2 million (up from 32.2 million)”. Generali’s contribution rose to 474.8 million (+20.9%), whilst the book value of the investment rose from 4,070.1 to 4,270.9 million in the last quarter.
