Banca Mediolanum (BMED) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered double-digit growth in core business metrics, with net income up 13% year-over-year to €276.2 million and operating margin up 25% to €350.1 million, despite increased market volatility and a complex geopolitical environment.

• Net commission income rose 12% to €353.5 million, and net interest income surged 31% to €236.3 million, driven by deposit funding, credit book expansion, and lower funding costs.

• Total assets reached €154.37 billion, up 10% year-over-year, with resilient net inflows of €3.34 billion and managed asset inflows of €1.87 billion.

• Customer base expanded by 2% to over 2.06 million, supported by strong recruitment of new financial advisors and network expansion.

• The business model's resilience and relationship-based approach drove consistent growth and operational leverage.

Financial highlights

• Net income reached €276.2 million (+13% YoY), contribution margin rose 18% to €581.9 million, and operating margin increased 25% to €350.1 million.

• Net commission income was €353.5 million (+12% YoY), with management fees up 9% and banking service fees up 66% to €80.5 million.

• Net interest income climbed 31% to €236.3 million, supported by lower funding costs and higher customer deposits.

• Non-recurring items fell 42% to €29 million, mainly due to lower performance fees and negative fair value impacts.

• Cost/income ratio improved to 34.8% from 37.6% in 2025; cost of risk remained low at 19 basis points.

Outlook and guidance

• Net inflows into managed assets expected to reach €9 billion for 2026, assuming stable market conditions.

• Net interest income guidance for 2026 is approximately +15% versus 2025; for 2027, expected to rise 5–8%.

• Targeting a cost/income ratio around 38% and cost of risk near 20 basis points.

• Dividend per share planned to increase from the €0.80 base, subject to approval.

• Inflows anticipated to accelerate in the second half of the year, supported by new product launches and time deposit promotions.