Group ambitions

LEVERAGING ON OUR DISTINCTIVENESS AND RESPONSIBLE APPROACH TO BANKING, FOUNDING VALUES THAT ARE FIRMLY ASSOCIATED WITH MEDIOBANCA, THE GROUP HAS LAID THE FOUNDATIONS FOR FURTHER MATERIAL GROWTH IN REVENUES, PROFITS, PROFITABILITY AND SHAREHOLDER REMUNERATION

With the 2023-26 Strategic Plan “One Brand-One Culture”, the Group aims to pursue strong growth in terms of revenues, earnings and shareholder remuneration, to the satisfaction of all our stakeholders, while preserving one of the best risk/return profiles in Europe.

Principal financial end-of-Plan objectives (end-June 2026)

Growth in profitable assets
  • Total Financial Assets (“TFAs”): €115bn (3YCAGR +11%)
  • AUM/AUA: €85bn (3YCAGR +13%)
  • Customer loans: €57bn (3YCAGR +3%)
Significant investment in distribution channels for all business segments
  • Wealth Management: salesforce up 25% to over 1,500 professionals, 1,350 of whom in Premier (up 25%) and 170 in Private Banking (up 15%)
  • Investment Banking: increase in the number of bankers in advisory services and capital markets
  • Consumer Finance: further growth in network, with strong increase in the digital channel, to support the direct network (increase to 340 POS consisting of branch offices and agencies, plus over 300 professionals offering products off-premises).
Stable RWAs
  • RWAs stable due to a different capital management policy, with focus on growing capital-light activities.
  • Growth in assets (up €4bn in 3Y) and optimization actions will result in RWAs remaining stable at €51bn.
  • Capital allocated to CIB to reduce to one-third of Group total, as a result of a 13% reduction in 3Y.
Growth in revenues
  • Revenues expected to reach €3.8bn (up 6%), with all business segments contributing positively:
    • Wealth Management: with revenues expected to exceed €1bn, WM will have the highest organic growth rate (up 10%), becoming the top contributor to fee income at Group level, complementing CIB
    • Corporate & Investment Banking: top-line growth of 11% expected (7% of which organic) to reach €0.9bn
    • Consumer Finance: total revenues expected to rise by 5% (to approx. €1.3bn), as CF maintains its role as NII growth driver (responsible for approx. two-thirds of the total)
    • Insurance: with revenues growing by 6% (to approx. €0.5bn) the division will again make a positive contribution to the Group’s top line.
Growth in earnings
  • EPS expected to grow by 15% from ~€1.15 to €1.80 (including the cancellation of approx. 80% of the shares acquired via the buyback schemes)
  • Increase to be delivered on the back of growing performances by the Wealth Management and Corporate & Investment Banking divisions, with continued high profitability levels from both Consumer Finance and Insurance.
Growth in profitability
  • ROTE 15% (vs 12%)
  • RORWA 2.7% (vs 2.1%)
    • Wealth Management: expected to report the highest increase in profitability (“RORWA”), from 2.9% to 4.0%
    • Corporate & Investment Banking: expected to improve to 1.6% (from 1.0%)
    • Consumer Finance expected to remain stable at 2.9%
    • Insurance expected to reach 3.2% (vs 2.7%).
Growth in capital generation
  • Avg. 220 bps capital generated per annum (vs 150 bps under previous plan), as a result of:
    • Growth in ROTE from 12% to 15%
    • Absence of material adverse impacts from regulation in coming years

Increase in capital will be used to fund growth, organic and via acquisitions, and shareholder remuneration.
Growth in shareholder remuneration

To reach €3.7bn in FY 2024-26 (70% higher than previous 4Y), of which:

  • €2.7bn in dividends, corresponding to an annual cash payout of 70%
  • €1bn through share buybacks and cancellations.

Read more
Opportunities for growth via acquisitions

The high capital creation will finance organic growth, but at the same time we will continue to assess opportunities to grow via acquisitions. The shareholder remuneration policy described above will enable:

  • A CET1 ratio of 14.5% to be maintained across the time horizon covered by the Plan, versus a minimum CET1 FL of 13.5%
  • A capital buffer of approx. 100 bps to be maintained for use in potential acquisitions.

As has been the case during previous Strategic Plans, we will consider as potential targets companies that are able to accelerate the process of growth in our core business areas, with a preference for capital-light and high fee-generating businesses. Other important factors will include a compatible corporate culture and an ethical approach to business.
Any acquisitions will have to meet the criteria to which the Group has always adhered in terms of value creation.

Mediobanca, school of responsible banking

A responsible approach to banking based on a long-term perspective has been part of Mediobanca’s DNA since its inception. The Group’s ESG strategy is firmly integrated into its Strategic Plan, combining business growth and financial stability with social and environmental sustainability, thus creating value for all stakeholders over the long term.
The commitments entered into by the Group have been translated into qualitative and quantitative targets that are measurable over time, and integrated into the performance evaluation processes for senior management and for the entire corporate population. The targets set, which consolidate the inclusion of Environmental Social & Governance (ESG) issues as part of the Group’s strategy, cover all the main sustainability topics.

Read more

2019-23 Strategic Plan targets

We achieved all the objective set in the 2019-23 Strategic Plan, leveraging fully on our distinctive business model, and investing in talent, innovation and distribution. We also delivered on all our ESG targets.
Read more

KPI  BP23T FY23 Target 
raggiunto
Revenues €mld 3.0 3.3
TFAs €mld 83 88
Loans €mld 51 53
Funding €mld 56 61
EPS €1.10 €1.21
ROTE adj. 11% ~13%
CET1 ratio >13.5% 15.9%