Financial statements for period ended 31 March 2015 approved
Price sensitive
Loans, revenues, net profit and profitability all growing
Further equity stake disposals
Net profit up 18% for the nine months to €466m,
€205m net profit earned in third quarter
- The Mediobanca Group reported a net profit of €466m for the nine months, up sharply by 18% on last year, driven by the strong recovery in banking activities:
- Revenues up 19% to €1,516m, with all banking income sources performing healthily: net interest income up 4%, due to the remix of interest-bearing assets, as well as lending growth (up 6% since June 2014 to €32.3bn); fees up 31%, due to stronger investment banking activity; treasury income largely positive (€181m). The contribution from Assicurazioni Generali declined, from €174m to €134m
- Cost/income ratio down to 40%, despite costs rising 7% to €604m due to the strengthening of the Group’s operations both domestically and internationally
- Loan loss provisions down 11% Y.o.Y., as well as cost of risk (down from 187 bps to 174 bps)
- Group net profit up 18%, to €466m, with the ROE rising to 8%
- Third-quarter profit best result for last five years (€205m)
- Better top-line in terms of both value (total income up 3% Q.o.Q. to €501m) and composition, with the reduced contribution from Principal Investing (down from €68m to €14m) more than offset by banking income sources: net interest income up 4% Q.o.Q. to €292m, treasury income trebled from €27m to €99m, fees totalling €101m
- Loan loss provisions down 39% Q.o.Q. to €109m, lower cost of risk (from 178 bps to 136 bps), following reductions in NPLs (down 14% Y.o.Y. and down 4% Q.o.Q. to €1,173m) and bad loans (down 10% Y.o.Y. and down 2% Q.o.Q. to €265m)
- Gains on stake disposals totalling €102m (€78m in respect of Telco)
- Net profit up to €205m
- Further improvements in the balance sheet ratios:
- Increase in coverage ratios (NPLs 53%, bad loans 68%)
- Improvement in capital ratios:
CET1 ratio: 11.6% phased-in, 12.7% fully phased (including profit for quarter)
Total capital ratio: 14.4% phased-in, 15.0% fully phased
- Leverage ratio: 10.4% phased-in, 11.4% fully phased.