Group ambition

The Group will pursue and deliver strong growth in revenues, earnings, and shareholder remuneration, to the satisfaction of all our stakeholders, while preserving one of the best risk/return profiles in Europe.

     Growth in profitable assets

Total Financial Assets (“TFAs”) of €115bn (up 11%), AUM/AUA of €85bn (up 13%), and customer loans of €57bn (up 3%).

     Significant investment in distribution channels for all business segments

Sales force in Wealth Management expected to grow by 25% to over 1,500 professionals, 1,350 of whom in the Premier segment (up 25%), and 170 in the Private segment (up 15%); an increase in the number of investment bankers in the advisory and capital markets areas; further increase in the Consumer Finance network, with strong growth in the digital channel, also supporting the direct network (up to 340 branches made up of proprietary offices and the agency network, plus more than 300 professionals offering products out of the branches).

     Stable RWAs

Particular focus will be placed on growing capital-light assets and on optimization actions to allow capital to be managed more efficiently. The growth in loans (with an additional €4bn expected over 3Y) and implementation of optimization actions for the same amount (completion of AIRB rollout plan consistent with Basel IV, improvement of LGD and PD from 2025, adoption of FRTB principles managed neutrally, synthetic securitizations in CF) are expected to result in stable RWAs (€51bn, down 1%). RWAs in the CIB Division are expected to reduce significantly (down 13% over 3Y), so that no more than one-third of the total Group capital will be allocated to the division.

     Growth in revenues

Revenues up to €3.8bn (up 6%), with all business segments contributing strongly. Whealth Management will have the highest organic growth rate (up 10%) and is expected to exceed €1bn in revenues, becoming the top contributor to fee income at Group level and so complementing Corporate & Investment Banking , which is expected to deliver top-line growth of 11% (7% organic) to €0.9bn; Consumer Finance will continue in its role as driver of growth in net interest income at Group level (accounting for some two-thirds of the total), delivering growth in total revenues of 5% (to approx. €1.3bn); the Insurance segment will again contribute positively to the Group’s total income, with revenues growing at 6% (to approx. €0.5bn).

   Growth in earnings

EPS up 15% from ~€1.15 to €1.80, including the cancellation of approx. 80% of the shares acquired via the buyback schemes, with increasing contributions from Whealth Management and Corporate&Investment Banking, and continued high levels of profitability in Consumer Finance and Insurance.

     Growth in profitability

Profitability up at both Group level (ROTE 15% vs 12%, RORWA 2.7% vs 2.1%) and by division: Whealth Management is expected to report the highest increase in profitability (“RORWA”), from 2.9% to 4.0%; Corporate Investment Banking is expected to improve to 1.6% (from 1.0%), Consumer Finance stable at 2.9%, and Insurance to 3.2% (from 2.7%).

     Growth in capital generation

~220 bps per annum (up from 150 bps) deriving from high profitability (ROTE up from 12% to 15%), supported by the absence of material adverse impacts from regulation in the coming years; higher capital will be used to finance organic and inorganic growth, and shareholder remuneration.

     Growth in shareholder remuneration

€3.7bn in 3Y 2024-26 (70% higher than in previous 4Y), €2.7bn of which in dividends and €1bn through share buybacks and cancellations.
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     Ongoing scouting of opportunities to grow via acquisitions

The high capital generation will finance organic growth, the dividend distribution policy described above will allow a CET ratio of at least 14.5% to be maintained over the time horizon of the Plan, versus a minimum CET1 FL of 13.5%, maintaining an approx. 100 bps capital buffer for use in potential acquisitions. As has been the case during the previous Strategic Plans, the Mediobanca Group will consider as potential targets companies that are able to accelerate the process of growth in its core business areas, with a preference for capital-light and high fee-generating businesses. Other important factors will include a compatible corporate culture and an ethical approach to business. Any acquisitions will have to meet the criteria that the Group has always adhered to in terms of value creation.

     Remaining anchored to the principle of Responsible Banking

Since Mediobanca’s foundation, a responsible approach to banking based on a long-term perspective has been part of its DNA. The ESG strategy is firmly integrated into the Business Plan, combining business growth and financial stability with social and environmental sustainability, thus creating value over the long term for all stakeholders. The commitments undertaken by the Group in this area have been translated into qualitative and quantitative targets that are measurable over time, and integrated into the evaluation programmes for the entire corporate population and for senior management. The targets set, which consolidate the integration of Environmental Social & Governance (ESG) topics into the corporate strategy, cover all the main areas of sustainability.

We achieved all the goals of the 2019-2023 Strategic Plan, fully enhancing our distinctive business model and investing in talent, innovation and distribution. We also achieved all ESG targets.

KPI	BP23T	FY23	Target  raggiunto
Revenues €mld	3.0	3.3
TFAs €mld	83	88
Loans €mld	51	53
Funding €mld	56	61
EPS	€1.10	€1.21
ROTE adj.	11%	~13%
CET1 ratio	>13.5%	~15.9%

ESG: targets delivered, pathways improved

CSR target in BP19/23		FY23 delivery / Comments
	Avg. training hours up 25%, to enhance employees’ competences		Target widely exceeded each year
	~50% of female candidates to be considered for external selections All suitable female candidates to be considered for internal promotions and/or vacancies		Targets achieved New quantitative targets included in BP 2023-2026
	Asset Management: 100% of new investments screened also with ESG criteria €700m investments in Italian excellent SMEs % of ESG qualified funds (under SFDR, Art. 8&9) out of total funds in Affluent clients’ portfolio: 40%		100% of new investments screened €480m investments in Italian excellent SMEs ~70% of ESG qualified funds
	€4m per year in projects with positive social/environmental impact MB Social Impact Fund: AUM increase at least by 20%		More than €26m in projects with social/environmental impact throughout the plan period AUM increased by more than 23%
	Sustainable bond issue: €500m 40% of procurement expenses assessed with CSR criteria Customer satisfaction: CB! CSI¹ on core segment² @75, NPS¹ @30 - Compass: CSI @85, NPS @65		1 Green and 1 Sustainability bonds issued 62% of procurement expenses assessed CS targets widely exceeded each year
	Energy3 : 92% from renewable sources, CO2 emissions down 11%; hybrid cars @72% of MB fleet RAM: first issue of a carbon neutral fund CheBanca! Green mortgages up 50%		Emissions reduction and renewable sources targets achieved; hybrid cars @75% Carbon neutral fund issued Green mortgages +302%

^{1) CSI: Customer Satisfaction Index; NPS: Net Promoter Score
2) Premier: clients with wealth between €50k and €5m
3) Target review: due to car delivery delays and still strong use fuel cards CO2 target has been reduced (down 11% vs down 27%) as well as the % of hybrid cars (72% vs 90% of MB fleet)}