Mediobanca (MB) Q1 2025 earnings summary

Executive summary

• Net profit reached €330m for Q1 FY 2024-25, with group revenues at €865m, reflecting robust commercial performance and growth across all banking divisions.

• Wealth Management, CIB, and Consumer Finance all posted increases in both revenues and net profit year-over-year, with record NNM of €2.6bn, CF new loans at €2.1bn (+12% YoY), and 27 CIB deals (+36% YoY).

• Total Financial Assets (TFAs) rose 16% YoY to €103bn, driven by strong asset management inflows.

• Cost/income ratio remained efficient at 43% despite ongoing investments in digital and physical distribution platforms.

• Capital generation was strong, with CET1 ratio at 15.4% and a €385m share buyback program launched.

Financial highlights

• Net profit of €330m, down 6.1% YoY but up 0.8% sequentially; EPS at €0.40.

• Group revenues stable YoY at €865m; fee income up 29% YoY to €231m, offsetting lower trading and insurance income.

• Net interest income at €485m, down 2.2% YoY due to lower rates and higher funding costs.

• Cost/income ratio at 43%; costs up 7% YoY due to investments in growth and digital.

• TFAs: €103bn (+16% YoY, +4% QoQ); NNM: €2.6bn (2x YoY).

Outlook and guidance

• FY 2024-25 guidance targets €9-10bn NNM, moderate revenue growth, and low double-digit fee growth in WM and CIB.

• Cost/income ratio expected at 44%; cost of risk around 55bps.

• EPS projected to grow 6-8%; CET1 ratio guided to 15.5%-16% by year-end.

• Shareholder remuneration to increase, with 70% cash payout and €385m buyback.