Compass acquires a 19.9% stake of BFI Finance

Mediobanca continues process of redeploying capital to specialized,
highly profitable businesses

Compass[1], Italian market leader in consumer credit by positioning and profitability, signed an agreement to acquire a 19.9%[2] stake in leading Indonesian independent consumer credit operator BFI Finance (‘BFI’)

For Compass and MB the deal represents a significant value option.
The domestic consumer credit business is now complemented by operations in Indonesia as a second market with great potential distinguished by its strong “growth”, high margins and low risk profile (Ratings: Fitch BBB; S&P BBB-; Moody’s Baa2)

BFI is the ideal option for Compass to enter the Indonesian market.
A leading independent player in consumer credit, BFI boasts outstanding profitability levels and growth rates. The BFI platform is very solid and highly scalable, with a high-quality, long-tenured management team, extensive and effective distribution, profitable products and strong risk management capabilities

Entry to the Indonesian market will follow a gradual approach:
the investment, which will be equity-accounted in the consolidated financial statements, will be accretive immediately (FY18: Compass net profit up 4%,  MB Group net profit up 2%), and entails limited capital absorption (-30 bps CET1)

The deal is expected to close by year-end 2018
 

[1] Compass is 100%-owned by Mediobanca S.p.A. and is consolidated as part of the Consumer Banking division.

[2] Percentage calculated based on voting shares (excluding treasury shares, equal to 6.3% of the company’s share capital).