Mediobanca, revenues stable. Mps takeover costs weigh on profit

In the first quarter ended at the end of September, Mediobanca posted revenues of €867.6m, stable compared to the previous year, with consolidated net profit attributable to shareholders down 2.5% to €321.7m, net of costs related to the Mps and Banca Generali takeover bids. Rote adj1 stood at 12.8%. Consolidated net profit for the year amounted to €291.2m, after taking into account extraordinary costs of €45.3m (€30.5m on a net basis) related to the Mps and Banca Generali transactions, including direct expenses/financial and legal advice, as well as the impact on the income statement of the early termination of the long term incentive plans for top managers.

Net interest income proved resilient (€478.5m; -1.3%) to the fall in market rates, net commissions were virtually unchanged at €232.3m, while Assicurazioni Generali's contribution increased (from €105.4m to €128.7m). The operating result amounted to € 417.1 million (-2.6%) with a cost/income ratio that remained low at 43.9% and a stable cost of risk at 51 basis points. Compared to the last quarter, there was a drop in revenues (-8.9%), reflecting a lower contribution from Assicurazioni Generali (-20.3%) and trading activities (from €40.9m to €27.2m), as well as a drop in commissions (-8.7%), also linked to the summer seasonality, elements partly offset by the lower variable component of staff costs.

Mediobanca confirmed "a recurring result on the levels of the quarter just ended, with high single digit revenue growth compared to the previous quarter". The cost of risk," reads the quarterly note, "does not present any unexpected elements, being confirmed in the 50-55 basis points range. In addition to the confirmation of the consumer performance, the quarter is expected to see an improvement in the commission flow of Cib (due to the intensification of closings at the end of the year) and WM (due to the increasing number of placements), albeit with net inflows 'solid but lower than the previous quarter'.

The scenario for the next few quarters," says Mediobanca, "is essentially unchanged - Eurozone growth of less than 1% until the end of 2026, inflation in the 2% area and short-term market rates around 2% - with elements of uncertainty linked to the evolution of geo-political crises, the fragmentation of international trade and the resilience of markets. Starting in December 2025, the reporting and fiscal year will be aligned with those of the parent company Banca Mps with the change to a financial year ending on 31 December.

In addition to approving the first-quarter accounts, the new Mediobanca board of directors, chaired by Vittorio Grilli, also appointed the endoconsiliar committees, all of which are made up of independent directors on the basis of the statements made by them, with the exception of CEO Alessandro Melzi d'Eril. The Risk and Sustainability Committee is made up of Sandro Panizza (chairman), Ines Gandini, Massimo Lapucci, Giuseppe Matteo Masoni and Tiziana Togna; the Related Parties Committee is made up of Togna (chairman), Gandini and Panizza; the Appointments Committee is made up of Paolo Gallo (chairman), Lapucci and Federica Minozzi; the Remuneration Committee is made up of Andrea Zappia (chairman), Gallo and Minozzi. Finally, the Committee pursuant to Article 18, paragraph 4 of the Bylaws is composed of Melzi d'Eril (Chairman), Lapucci, Minozzi, Panizza and Togna.