Mediobanca (MB) Q4 2025 earnings summary

Executive summary

• Achieved record annual results with revenue up 3% to €3.72bn and net profit up 4.5% to €1.33bn year-over-year, fully meeting annual targets.

• EPS increased 7% to €1.64; ROTE at 14%.

• Wealth Management saw record net new money of €11bn (+32% YoY), and CIB loans grew by over €1bn (+8% YoY).

• 100% payout policy maintained: €1.15 dividend (+7% YoY) and €385m buyback executed, with a third €400m tranche approved.

• Asset quality remained strong with gross NPL ratio at 2.1% and coverage at 60%.

Financial highlights

• Group revenue rose to €3,718.8m (+3.1% y/y), with net interest income stable at €1,971.5m (-0.7% y/y).

• Net fee and commission income grew 14.2% to €1,072.4m, driven by Wealth Management and CIB.

• Net profit rose 4% YoY to €1,330m; EPS at €1.64 (+7% YoY); TBVPS at €11.8 (+2% YoY).

• Cost of risk improved to 44bps (down 4bps YoY); overlays stock at €190m.

• CET1 ratio at 15.1% post-dividends and buyback; leverage ratio 6.8%.

Outlook and guidance

• Guidance for FY25/26 confirmed: TFA to reach €123bn, NNM >€10bn, low/mid single-digit revenue growth, net profit ~€1.4bn.

• 100% cash payout policy maintained, with dividend per share to rise to €2.1 by FY28.

• Revenue expected to exceed €4.4bn by FY28 (CAGR +6%), net profit to €1.9bn (+45% over three years).

• CET1 ratio to remain above 14%, with further value creation expected from the Banca Generali combination.

• Fees expected to grow high single-digit, especially in WM; CIB fee growth to slow after record FY25.