Strategic guidelines

With the 2023-26 Strategic Plan unveiled on 24 May 2023, we completed the repositioning process we embarked on more than ten years ago, laying the foundations to ensure growth without prejudice to our history of excellence and reliability.

With this plan, we have set the objective of delivering positive growth in all segments in which we operate, by leveraging on our distinctive features: a responsible approach to banking, the strength of our brand, focus and distinctive positioning in highly specialized and profitable businesses, a strong capital position, and continuing investment in talent, innovation and distribution.

The Group’s future growth will involve all four of our business divisions:

• We aim to become Italian market leader in Wealth Management, by unlocking the full potential of the Private & Investment Banking model
• Our historical Corporate & Investment Banking Division will evolve into a pan-European capital-light platform, by exploiting the synergistic approach with Wealth Management
• We will consolidate our position of leadership in Consumer Finance by upgrading our service model and leveraging on our established distribution and risk management credentials
• The Insurance division will continue to generate high cashflows decorrelated from traditional banking risk, and at the same time benefiting from the more favourable capital treatment for insurance operations.

Substantial growth in K-light businesses

• Wealth Management will grow to become as large as the other businesses
• Corporate & Investment Banking will become an increasingly capital-light/fee-generating business
• We will continue to grow while keeping RWAs stable.

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 increase to €3.7bn (up 70%)
• 70% payout and€1bn share buyback
• Increases in both TBVPS + DPS (CAGR + ~12%).

Reliable track record in delivering on objectives

Mediobanca:

• has always delivered on the plans and targets set
• Is focused on sustainable growth
• Will remain faithful to its history as a “school of responsible banking”.

The “One Brand-One Culture” Strategic Plan rests on solid foundations created from the conclusion and implementation of the previous plan for the FY 2019-23 period, strengthening our conviction that there are still opportunities to create added value.

Mediobanca has grown consistently since 2013, and has successfully reshaped its business model in every macroeconomic scenario it has faced. The success of the strategy pursued by the Bank in the decade from 2013 to 2023 has allowed us to reinvest capital in all four of the Group’s main businesses.

The 2023-26 Strategic Plan is intended to ensure growth in an economic and regulatory scenario that is expected to be challenging for the whole financial sector, due to factors such as low economic growth, inflation, strict regulatory pressures, and tightening monetary policies.