Mediobanca Board of Directors’ meeting - Financial statements for three months ended 30 September 2012 approved

Price sensitive

Financial statements for three months ended 30/9/12 approved
 

Net profit €109m

Revenues stable, costs and provisions decreasing

 

  • Net profit for the three months totalled €109m (ROTE 7%), a major improvement on the results posted last year (30/9/11: €57m), and last quarter (30/6/12: €24m net loss).


  • The following performances contributed to this result:
    • revenues flat at €453m (unchanged Q.o.Q., down 5% Y.o.Y.): the positive contribution from trading (up from €4m to €63m) offset the reduction in net interest income (down 8% Y.o.Y.), fees (down 11% Y.o.Y.) and profits from equity-accounted companies (down from €73m to €28m)

    • reduction in costs, to €174m (down 12% Y.o.Y.): both labour costs and administrative expenses have been strongly reduced (down 7% and 17% Y.o.Y. respectively)

    • absence of substantial writedowns or losses on securities (€6m, vs €168m at end-June 2012, and €86m at end-September 2011)

    • lower loan loss provisioning (€111m, down 21% Q.o.Q., up 8% Y.o.Y.), on improving coverage ratios for both NPLs (“sofferenze”, up from 61% as at 30/6/12 to 66%) and total bad loans (from 39% to 40%)
       
  • The balance-sheet trends reflect:
    • the planned reduction in loans (€35bn, down 4% Q.o.Q. and down 7% Y.o.Y.), on stable funding (€55bn) and higher liquid assets (€23.2bn)

    • Core Tier1 ratio stable at 11.5%
       
  • Performance by sector:
    • CIB: net profit €62m, due to positive market performance and disciplined control of both operating costs and risk; planned reduction in lending ongoing

    • Consumer credit: revenues stable, net profit €18m

    • Retail banking: loss reduced to €3m due to strict cost control

    • Principal investing: revenues declining, no value adjustments to securities