Q1 2025 Mediobanca Banca di Credito Finanziario SpA Earnings Call Transcript
Key Points
- Mediobanca SpA (MDIBF) reported a strong commercial flow with EUR2.6 billion of net new money, doubling the best industry level at 10% of TFA.
- The company achieved a 6% increase in net profitability in wealth management, 20% in CIB, and 5% in consumer finance.
- Fee growth was significant, up 30% year-over-year, driven by wealth management and CIB.
- Strong capital generation with 70 basis points in the last three months and CET1 at 15.4%.
- The company has initiated a share buyback program for EUR385 million, authorized by the AGM and SSM.
- Net profitability was slightly lower than last year due to fewer extra gains booked in Generali.
- There was a temporary drag in NII in wealth management and CIB due to all-time low credit spreads.
- The cost of risk in consumer finance increased, driven by a higher mix of personal loans.
- The company experienced a decrease in insurance contribution due to normalized results and lower non-operative results.
- NII guidance was lowered due to higher deposit costs and low corporate and mortgage spreads.
Good morning. Thank you for joining the call. Commenting the first quarter of this start of the year, I would like to highlight two main features. The first one has been accelerating investment in our physical and digital distribution platform. This is across the different business where we have accelerated recruiting, accelerated transformation in the digitalization of the group, both in wealth management, in CIB, and in consumer finance.
This important investment that are going to underpin the growth in revenue beyond the actual three years' plan were coupled with very strong commercial flow, a record for summer quarters, where we have had EUR2.6 billion of net new money, which is, again, doubled at the best industry level at 10% of TFA; EUR2.1 billion of new loans in consumer finance, up 12%; and increased activity in CIB where we have announced 27 deals in the quarter, which is plus 36% year on year.
So basically, revenue and profitability of all banking business went up again
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