The Mediobanca Group today
We are among the best European banks in terms of growth in revenues, profitability, remuneration of shareholders and market performance
Mediobanca is a specialised financial group, whose business model is based on synergic, high profit margin and low capital intensity business sectors and in which the group boasts a solid competitive position.
- Since 2016, we have cemented our position in the Italian Wealth Management market, which offers significant long-term growth opportunities. We serve Affluent customers with CheBanca! and HNWI and UHNWI customers with Mediobanca Private Banking and Compagnie Monégasque de Banque.
- In Corporate & Investment Banking activities, in which our roots lie, we hold a position of undisputed leader in Italy. We offer companies high-quality Advisory, Lending, Capital Market and Specialty Finance solutions. We have also established a consolidated presence abroad, in Spain and France in particular.
- Since our foundation, we have been present in the Consumer Banking market, where our subsidiary Compass Banca is one of the three main operators in Italy.
The 2019-2023 business plan forecasts further growth of the group and in the returns for all stakeholders, thanks to the effective and unique business model, albeit in a macroeconomic scenario that is expected to be challenging for the whole financial sector.
Highlights (annual consolidated results at 30 June 2021)
The Group delivered solid results in FY 2020-21:
- revenues up 5% to €2.6bn, with record fee income (+18% a/a) and resilient NII (-2% a/a);
- cost/income ratio flat at 47%; significant drop in cost of risk, back to pre-Covid level at 52bps (down 30 bps YoY);
- net profit €808m (+35% YoY);
- adj. ROTE1 9%;
- DPS 2021 at €0.66, equivalent to 70% cash payout;
- sustainability strategy continues to be implemented.
| PROFIT AND LOSS ACCOUNT | BALANCE SHEET | OTHER INFORMATION | |||
|---|---|---|---|---|---|
| Revenues: | € 2.6 bn | Total assets: | € 83 bn | S&P rating | BBB |
| GOP risk adj: | € 1,142 mln | Customer loans: | € 48 bn | Fitch Rating | BBB- |
| Net profit: | € 808 mln | Funding: | € 56 bn | Moody's | Baa1 |
| Cost/ income ratio | 47% | Lending/funding: | 86 % | Payout | 70% |
| Cost of risk | 52 bps | TFA | € 71 bn | Capitalisation: | € 8.7 bn |
| ROTE | 9% | CETI | 16.3% | No. of staff: | 4,921 |
1) ROTE calculated using adjusted net profit (GOP net of loan loss provisions, minority interest and taxes, with taxation normalized at 33%, 25% for PB and AM, 2% for PI).
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/Principal Investing (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).
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.
Assets managed
- TFA around €75bn as at September 2021
- AUM/AUA around 65% of TFA
- Wealth Management deposits at € 26bn
Securities portfolio
- Portfolio optimised by dimension and composition
- Prudent risk management based on the selection of high quality assets
