Mediobanca (MB) Q3 2025 earnings summary

Executive summary

• Revenues for 9M25 rose 5.3% year-over-year to €2.77bn, with net profit up 5% to €993m and EPS up 7% to €1.19.

• ROTE reached 14%, with strong commercial activity and a cost/income ratio of 42.5%.

• Wealth Management net new money reached €7.2bn, up 42% year-over-year, and TFAs exceeded €108bn.

• Announced public exchange offer for Banca Generali to create a leading wealth management platform with TFAs over €210bn.

• High capital generation and remuneration, with CET1 ratio at 15.6% and a 70% payout policy.

Financial highlights

• Fee income rose 24% year-over-year to €819m, driven by CIB and WM; NII stable YoY at €1,476m.

• Gross NPL ratio improved to 2.0% (net 0.8%), with coverage at 62%.

• Cost/income ratio at 43% (flat YoY); cost of risk at 47bps, down 3bps YoY.

• RWAs down 5% YoY to €46bn; RoRWA at 2.9%.

• Interim dividend of €0.56 per share and €385m share buyback, 70%+ completed.

Outlook and guidance

• FY25 guidance confirmed: NNM of €9–10bn, low double-digit fee income growth, and EPS growth of 6–8% YoY.

• High distribution policy: 70% cash payout plus share buyback.

• CIB revenue outlook depends on transaction closings; pipeline remains healthy despite market volatility.

• Net interest income expected to remain resilient despite anticipated rate reductions.

• Cost of risk expected to remain better than forecasted in Q4.