Mediobanca (MB) Q2 2025 earnings summary

Executive summary

• Net profit for the first half reached €660 million (up 7.9% YoY), with a return on tangible equity of 14% and a cost/income ratio of 42%.

• Revenues rose to €1.85 billion (up 6.8% YoY), driven by strong fee income and growth across Wealth Management, CIB, Consumer Finance, and Insurance.

• Strategic Plan 2023-26 targets revised upwards: FY25-26 revenues ~€4bn, net profit >€1.4bn, 3Y cumulative distribution >€4bn.

• Shareholder remuneration remains high, with a 70% cash payout and €385m share buyback underway (over 60% completed).

• Board rejected MPS merger proposal, citing lack of strategic fit, high execution risk, and potential value destruction.

Financial highlights

• EPS rose 10% to €0.79 per share for the half; group revenues €1,847.7m (up 6.8% YoY); net profit €659.7m (up 7.9% YoY).

• Cost/income ratio at 42%; CET1 ratio at 15.2%; total capital ratio at 17.6%; leverage ratio at 7.4%.

• Net fee and commission income up 29.5% YoY to €546.7m; net interest income €978.9m (down 1.8% YoY).

• Gross NPL ratio at 2.5%, net NPL ratio at 0.8%, coverage ratio 69.4%; cost of risk at 50 bps.

• Total assets €99.9bn, customer loans €53.9bn, TFAs €107bn (up 14% YoY).

Outlook and guidance

• FY25 guidance confirmed: resilient NII, low double-digit fee growth, NNM €9–10bn, EPS up 6–8%, 70% cash payout plus buyback.

• FY26 guidance upgraded: revenues ~€4bn, net profit >€1.4bn, payout ratio ~100%, 3Y cumulative distribution >€4bn.

• High shareholder remuneration with low execution risk; further buybacks possible.

• Macro scenario: moderate GDP growth, inflation easing, and stable but uncertain interest rate environment.

• Cost/income and cost of risk expected to remain under control.