BoD Mediobanca - Results for FY 2023-24 approved

IMPRESSIVE RESULTS FOR 12M ENDED 30/6/24
STRATEGIC PLAN 2023-26 TRAJECTORY CONFIRMED
AND POSITIVE START TO MAIN INITIATIVES
HIGH STAKEHOLDER REMUNERATION

HIGH CAPITAL-LIGHT GROWTH
Record revenues of €3.6bn in 12M (up 9% YoY ), driven by K-light
components  (up 17%), with TFAs ~€100mld (up 13%)
RWAs optimized, down over 7% to €47.6bn
Positive contribution from all revenue streams:
Net interest income up 10% to €1,985m,
Fees up 11% to ~€940m, Insurance high at €510m
Operating profit €1,813m (up 12%), with cost/income ratio stable at 43%,
cost of risk down 4 bps to 48 bps, and good asset quality confirmed
(Net NPLs 0.8% of total loans, substantial overlays of ~€220m)
Record net profit of €1,273m (up 24%), EPS €1.53 (up 27%)
TBVPS stable at €11.6 - ROTE  14% (up 1pp), RORWA 2.7% (up 30 bps)
CET1 16.1%  (up 20 bps YoY, up 90 bps QoQ)

APPEALING STAKEHOLDER REMUNERATION
FY 2023-24 €1.1bn distributed (10% of market cap), up ~50% YoY, €885m
dividends and ~€200m share buyback already implemented 
Total cash DPS €1.07, up 26% YoY: €0.51 ps interim dividend paid in May 2024,
€0.56 ps final balance to be paid in November 2024
Proposed new share buyback in an amount of ~€385m, with share
cancellation, scheduled for FY 2024-25, fully deducted from CET1 as at end-
June 2024
Good start to Strategic Plan Sustainability and Responsible Banking pathway

OUTSTANDING 4Q WITH ~€330M NET PROFIT
Total revenues ~€980m (up 11% YoY and up 9% QoQ)
 NII solid at €492m
Record fee income of €279m (up 51% YoY and up 17% QoQ),
driven by CIB recovery (€136m, up 49% QoQ) with growing WM contribution
TFAs approx. €100bn, with €3.3bn in NNM in 4Q
Cost of risk 43 bps (down 5 bps QoQ, with just €14m in overlays used)
Net profit €327m, up 39% YoY,
down 2% QoQ due to non-operating items (€65m charge) incl.
prepayment of final ~€25m DGS contribution paid in July 2024

STRATEGIC PLAN 2023-26 “ONE BRAND-ONE CULTURE”: GROWTH IN ALL DIVISIONS

Prioritized growth in Wealth Management (WM), with “One Brand-One
 Culture” approach a distinctive feature, and unique Private & Investment Banking model (PIB)
PIB model developed effectively, with €1bn in liquidity events intercepted,
and 9 Mid-Cap deals co-originated with CIB
Private Markets Platform expanded with €1bn new funds committed, for a
total of €4bn
Mediobanca Premier launched in January 2024, accelerating recruitment
(110 new FAs/bankers, 2/3 of whom in last 6M) and client repositioning (3K
HNWI added, 40K fewer mass clients)
TFAs up 13% to ~€100bn, with €8.4bn in NNM, ~€5bn in last 6M, above market average
Revenues up 13% ~ €925m, fees ~€490m (52% of Group fee income),
and net profit up 29% to ~€210m
RORWA up 50 bps to 3.6%

Corporate & Investment Banking (CIB):
Creation of a European, capital-light/fee-driven platform, in synergy with
development of WM
Investment Banking recovery in last 6M confirmed
Leadership position in advisory business strengthened by Arma Partners partnership,
BTP specialist status obtained, Mid Corp platform enhanced with the opening of the Frankfurt branch office
Revenues up 7% to €763m, international component rising from 40% to 55%  
RWAs down 23% (€15bn), risk density down from 61% to 38%, total revenues/RWAs up from 3.6% to 4.5%
Net profit up 8% to €244m, RORWA up 20 bps to 1.4%

Consumer Finance (CF): leader in Italy, now also in digital; creation of a
resilient and highly profitable multi-channel platform
Record new loans of €8.4bn, with personal loans focused on direct
distribution (~80%), digital business (~35%) and BNPL development (flows of ~€500m)
Revenues up 6% to €1,189m, with margins resilient; strong NII growth driver
CoR 168 bps, with high overlays (€175m),
increase due to different mix and normalization at pre-Covid levels
Net profit at record level of ~€383m
RORWA 2.7% (down 20 bps) post-AIRB

Insurance (INS): contribution high and decorrelated vs other businesses
Revenues up 14% to €530m, net profit up 19% to €522m
RORWA 3.8%

Holding Functions (HF): ALM functional to the Group’s development and to
growth in NII over the Strategic Plan time horizon

Deposits stable in FY 2023-24 at high levels (€28bn)
Record bond issuance levels with spreads declining
Group net interest income up 10% YoY, solid in 4Q

With Renato PAGLIARO in the Chair, the Directors of Mediobanca approved the individual and consolidated financial statements for the twelve months ended 30 June 2024, as illustrated by Chief Executive Officer Alberto NAGEL and Group General Manager Francesco Saverio Vinci.

Alberto Nagel, CEO of Mediobanca, said: “The Group has delivered its best-ever results in FY 2023-24, in terms of revenues (€3.6bn), net profit (almost €1.3bn), profitability (ROTE 14%), and shareholder distribution (~€1.1bn in dividends and share buybacks), successfully launching the main initiatives contained in the 2023-26 Strategic Plan. The scenario for the coming months looks uncertain, due to the geopolitical and macro trends, and will require banks to be able to turn the expected volatile environment into opportunities. Mediobanca is in a privileged position on the back of its specialized business model, responsible approach to banking, differentiating product capabilities, and its positioning versus entrepreneurial families which is unique in the Italian landscape. With these distinguishing features, and through increasingly efficient management of both assets and capital, we have started the second year of the “One Brand–One Culture” Strategic Plan, with the objective of being one of the best growth and remuneration stories for all our stakeholders”.