Investing in Mediobanca

We are distinctive within the European banking panorama for the specific nature of our business model, profitability and market performance, guaranteeing high remuneration for shareholders. The substantial capital position, which is the result of management rather than resorting to capital increases, and a risk/return profile which is among the finest in Europe, coupled with our excellent asset quality, ensure we have a solid platform on which to build our future growth. Through the years we have demonstrated our capability to grow across all economic cycles and turn the difficulties inherent in the current macroeconomic scenario into opportunities for consolidating our position. We therefore aim to represent a distinctive investment opportunity for our shareholders.

Today we are a diversified, profitable and highly-specialized financial group, in sectors that are highly synergic, highly profitable and low in capital intensity, in which we have a solid competitive position.

We are committed to implementing the guidelines of Strategic Plan in order to continue our progress in Wealth Management – a sector in which we intend to become leaders - in our historical Corporate & Investment Banking activities, and in Consumer Finance.

• Capital solidity, based on ongoing monitoring of costs and risks
• Stability of the Board of Directors and management over the last fifteen years, which guarantees a long-term strategic vision as well as indepth knowledge of the business scenario
• Extremely high brand value. Mediobanca is distinctive for its reputation of excellence, confidentiality, reliability and high quality. The Group’s credibility is firmly rooted in its responsible approach to banking, the talent of its staff, and its proper conduct, transparency, and unceasing focus on ethical business and integrity.

• Sustainable business development, aimed at creating and protecting value for all stakeholders
• ESG strategy integrated into the Strategic Plan, to combine business growth and financial solidity with social and environmental sustainability

• Positive track record. The 2019-23 Strategic Plan targets were beaten despite the difficult macroeconomic scenario.
• Growth based on the same level of risk, with no need for share capital increases (the last one was made in 1998) or restructuring operations.
• Historically high asset quality, with no need for substantial NPLs disposals
• Cost base under control
• Robust growth story with no compromise in our prudent risk management approach

• Increased shareholder remuneration over the course of the 2019-23 Strategic Plan, with approx. €2.2bn distributed in the form of dividends (€1.9bn, corresponding to a cash payout of 70%) and share buybacks.
• Shareholder remuneration is set to increase by 70% over the course of the 2023-26 Strategic Plan, with a total of €3.7bn to be distributed: dividends totalling €2.7bn (cash payout of 70%) and approx. €1bn in share buybacks and cancellations (with the annual amount to be decided from time to time).

• Transformation from holding company to specialized financial group
• Proven track record in adapting the business model to changes in regulations and market trends

• Business model focused on highly specialized and income-generating activities, combined with cyclical and anti-cyclical businesses, diversified between retail and corporate, and capable of growing even in adverse market situations
• Presence in three business sectors driven by positive structural trends for the long term
• Investment bank of choice in Italy, now also leader in Southern Europe
• Distinctive operator in the Italian Wealth Management market in terms of quality, innovation and value
• Unique operator, leader in the Italian Corporate & Investment Banking market, with an established footprint in Private Banking, able to meet all entrepreneurs’ financial needs, in the Mid-Cap segment in particular
• One of the top three operators in the Italian consumer credit market, through Compass
• The Insurance Division, virtually all of which consists of the Group’s investment in Assicurazioni Generali, is a profitable investment for the Group, generating high and decorrelated cash flows, as well as representing a value option that can be used in the event of potential acquisitions

Financial highlights as at 31 December 2024 - Revenues by division

Our structure is based on three complementary and synergic pillars: Asset Management and Private Banking, sectors in which we gradually established a foothold over the last few years and in which we intend to invest further, also through targeted acquisitions; the historical activity of Investment Banking (Corporate & Investment Banking), in which we have a leading position in Italy, with a deeply-rooted presence abroad; Consumer Banking activity, in which we have been pioneers in Italy ever since our foundation.

Our revenues are currently balanced between corporate/insurance (roughly 40%) and Retail/Private (around 60%) activities. Revenues from equity investments refer primarily to the 13% stake in Assicurazioni Generali (from valuation using the equity method).

Financial highlights as at 31 December 2024 - Loans by division

Over the last few years we have diversified our lending, to ensure a balance between corporate and retail.
Corporate loans:

• in Wholesale Banking, our group concentrates on large corporate, and around half of lending is carried out abroad;
• our portfolio is diversified by business sector and is increasingly less concentrated;
• we are not present in FICC activities (fixed income, currencies and commodities), in the process of global restructuring, and nor even in problematic segments/products such as small Italian companies, the shipping market and real estate development.

Retail loans:

• Consumer Banking accounts for roughly half of retail lending, with the remainder primarily residential mortgages;
• Consumer lending loan book is highly fragmented with a 24 month duration, personal loans rapresent more than half of the toal amount.

Financial highlights as at 31 December 2024 - Assets managed

• TFA around €107bn as at December24
• AUM/AUA over 70% of TFA
• Wealth Management deposits at €28.2bn