Mediobanca, 9-month profit at 993 million “With Banca Generali growth of 15%”

Milan – Mediobanca closed the first nine months of the 2024-2025 financial year with a net profit of 993 million, up 5% on an annual basis and higher than the 964 million expected on average by a market consensus gathered by the company. The intermediation margin rose by 5.3% to 2.8 billion, with interest margin at 1.48 billion (-1.1%) and commissions and other income at 819 million (+24.1%). Structure costs increased by 4.7% to 1.18 billion, for a cost/income ratio of less than 43%. As for capital strength, the Cet 1 ratio is at 15.6%, “after benefits from Basel IV equal to 55 basis points”.

The board of directors has resolved to distribute an interim dividend of 0.56 euros per share to be paid on May 19, for a total value of 455 million. The merger between Mediobanca and Banca Generali will create a group with a net profit of 1.5 billion, of which approximately 50% (800 million) from wealth management. Piazzetta Cuccia specifies this in the press release on the accounts at the end of March, which considers the annualized half-yearly data for Mediobanca and the data at December 31 for Banca Generali. Revenues will be equal to 4.4 billion, with a “growth greater than 15%”, of which 1.8 billion in net commissions (+65%). The cost/income ratio is expected to fall to 40%, risk-weighted assets to 44 billion and the Rote to increase to “over 20%”.

Mediobanca reiterates that the Mps takeover bid presents “numerous risk factors”, including a “double-digit reduction in earnings per share” and negative impacts on creditworthiness, giving rise to an “aggregate entity” that “would have the profile of an undifferentiated medium-sized commercial bank, with high capital absorption, highly sensitive to the macroeconomic context”. This is what is stated in the press release on the 9-month accounts. “These risk factors - underlines Piazzetta Cuccia – would be further amplified with the combination of Mediobanca and Banca Generali”.