2023-26 Strategic Plan Guidelines 

The conclusion of the BP 2019/23 strategic plan and the achievement of its objectives has developed the Mediobanca growth story even further:

• In the last 10Y Mediobanca has delivered continuous growth, reshaping its business model to be profitable in all macroeconomic scenarios
• The success of our strategy has allowed us to reinvest capital in growth opportunities in all the Group’s main businesses
• This solid performance in delivering our last Plan has strengthened our conviction that there are further growth and value creation opportunities to be leveraged
• The new 3Y ONE BRAND-ONE CULTURE Plan is geared towards ensuring these opportunities are taken.

In the current economic and regulatory scenario which is expected to be challenging for the whole financial sector (with low economic growth, inflation, stricter regulation and tightening monetary policies), attractive growth opportunities emerge for players with solid and specialized business models that are able to turn challenges into opportunities for sustainable growth over the long period.

Against this backdrop, the Group aims to deliver positive growth in all segments in which it operates, by leveraging on its distinctive features: a responsible approach to banking, focus and distinctive positioning in highly specialized and highly profitable business segments, driven by long-term structural growth trends, a solid capital position, and ongoing investment in talent, innovation and distribution.

The Group’s future ambitions are based on further growth by all divisions:

• Whealth Management will become market leader in Italy by unlocking the full potential of the Private Investment Banking model
• Corporate&Investment Banking will evolve into a pan-European K-light platform by exploiting the synergistic approach with Whealth Management
• Consumer Finance will consolidate its leadership position by upgrading its service model and leveraging on its established distribution and risk management credentials
• Insurance will continue to generate high cashflows decorrelated from traditional banking risk and at the same time benefit from the more favourable capital treatment.

Substantial growth in K-light businesses

• WM to become as large as the other businesses
• CIB to become an increasingly K-light/fee-driven business
• Stable RWAs

Best-in-class returns with a low risk profile

• Target ROTE 15%
• Growth in EPS (CAGR +15%)
• Prudent cost of risk assumptions

Significant growth in shareholder remuneration

• Shareholder remuneration to be increased by 70% to €3.7bn
• 70% payout and €1bn share buyback
• Increase in both TBVPS + DPS (CAGR ~12%)

Reliable track record in delivering on objectives

• Business Plans always delivered with all targets achieved
• Focus on sustainable growth
• Faithful to our history as a “school of responsible banking”