Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB
Mediobanca - Banca Di Credito Finanziario — Mediobanca - Banca di Credito Finanziario — Q1 2025 Earnings Presentation
55 slides from Mediobanca - Banca Di Credito Finanziario's earnings presentation, Nov 12, 2024
Slide 1: Mediobanca 3M Results as at 30 September 2024
MEDIOBANCA 3M RESULTS AS AT 30 SEPTEMBER 2024 Milan, 12 November 2024
Slide 2: Agenda
Agenda Section 1. Executive summary Section 2. 3M/1Q25 Group results Section 3. 3M/1Q25 Divisional results Section 4. Closing remarks Annexes 1. Macro scenario 2. Divisional tables
Slide 3: Positive Start to FY25: €330M Net Profit
POSITIVE START TO FY25: €330M NET PROFIT ROBUST INVESTMENTS FOR GROWTH ALL BANKING BUSINESSES IMPROVING Executive summary Section 1 Strong commercial flows, record for a summer quarter €2.6bn NNM in WM (doubled1 again, at the best industry levels @ 10% TFA), €2.1bn new loans in CF (up 12%1), solid a
Slide 4: Wealth Management: Franchise Enhancement
WEALTH MANAGEMENT: FRANCHISE ENHANCEMENT STRONG GROWTH DUE TO UNIQUE POSITIONING Executive summary Section 1 Ongoing investment for growth, driving record NNM (€2.6bn) and 15% fee growth PIB model: €0.6bn in liquidity events intercepted in 3M Record summer flows Fees up double-digit (NNM, €bn) (Fees
Slide 5: CIB: More Diversified, Profitable and K-Lighter
CIB: MORE DIVERSIFIED, PROFITABLE AND K-LIGHTER CONTRIBUTING HEAVILY TO PIB MODEL AND FEE GENERATION Executive summary Section 1 Outline of the targeted capital-light, advisory-driven international CIB business becomes visible with the positive cycle turnaround and the new initiatives launched in th
Slide 6: Consumer Finance: Sound New Business with Better Margins
CONSUMER FINANCE: SOUND NEW BUSINESS WITH BETTER MARGINS GROUP NII DRIVER Executive summary Section 1 Fixed rate – 2Y duration book, steadily growing in volumes and marginality with decreasing rates Growing NII Record summer new business (€2.1bn up 12% YoY), Record summer flows with increasing profi
Slide 7: 1Q25 KPIs: Revenues €865M, Net Profit €330M
1Q25 KPIs: REVENUES €865M, NET PROFIT €330M Executive summary Section 1 Financial results Highlights MEDIOBANCA GROUP – 3M as at Sept24 3M EPS: €0.40 (down 4% YoY, up 1% QoQ) No. shares/ TBVPS: €11.7 (up 1% YoY and QoQ); BVPS: €13.0 (up 4% YoY, 3M EPS BVPS TBVPS ow treasury 1% QoQ) PER SHARE €0.40 €
Slide 8: Delivery of BP One Brand-One Culture Ongoing
DELIVERY OF BP “ONE BRAND-ONE CULTURE” ONGOING Executive summary Section 1 Stronger industrial footprint Superior High distribution feeding high & capital creation with low execution risk sustainable growth FY25 GUIDANCE1 Growth in TFAs with €9-10bn of NNM p.a. with strong enhancement of physical an
Slide 9: Agenda
Agenda Section 1. Executive summary Section 2. 3M/1Q25 Group results Section 3. 3M/1Q25 Divisional results Section 4. Closing remarks Annexes 1. Macro scenario 2. Divisional tables
Slide 10: Selective and Value-Driven Asset Growth
SELECTIVE AND VALUE-DRIVEN ASSET GROWTH… 3M/1Q25 - Group results Section 2 among the highest quarterly NNM and TFAs up >€100bn (up16% YoY, 4% QoQ)… growth in the sector1 (Group TFAs, €bn) (3M NNM Jul24-Sept24, €bn) +16% YoY, or plus €14bn €2.8bn (3% TFA) +4% QoQ, or plus ~€4bn 3.3 2.6 €2.6bn (10% TF
Slide 11: Generating More Diversified and Fee-Driven Revenues
GENERATING MORE DIVERSIFIED AND FEE-DRIVEN REVENUES 3M/1Q25 - Group results Section 2 Group revenues by division (YoY, 3M, €m) WM revenues (3M, €m) Flat YoY 218 up 5% 228 24 (28) 42 (48) 11 865 1Q24 1Q25 864 CIB revenues (3M, €m) up 30% 183 142 Fees +29%1 YoY 231 180 1Q24 1Q25 3M Sept23 WM CIB CF IN
Slide 12: Fees Up 29% on Solid AUM Growth and IB Activity
FEES UP 29% ON THE BACK OF SOLID AUM GROWTH AND IB ACTIVITY 3M/1Q25 - Group results Section 2 Fee income trend by division (€m, 3M) CIB fees (€m, 3M) 136 +29% YoY 8 86 91 21 279 8 84 8 9 8 Specialty fin 242 238 48 15 17 231 15 7 15 8 Lending 8 99 1 136 10 6 56 53 CapMkt 180 86 91 50 84 24 Advisory 4
Slide 13: NII: CF Up 4% QoQ and 8% YoY
NII: CF UP 4% QoQ AND 8% YoY, GROUP NII TEMPORARILY DOWN TO FUEL PROFITABLE GROWTH 3M/1Q25 - Group results Section 2 NII trend by sourceses (€m, 3M) Yields, CoF and marginality1 6 (4) ( 10 ) 5.91% 5.97% 6.01% 5.99% Loan yield 492 3 5.67% (3) 485 2.27% 2.43% 2.42% 2.52% 2.52% Funding cost2 1.58% 1.76
Slide 14: Costs: Ongoing Investments in Business-Enhancing Factors
COSTS: ONGOING INVESTMENTS IN BUSINESS-ENHANCING FACTORS 3M/1Q25 - Group results Section 2 Group costs trend by type (€m) Cost trend by division (€m) +7% YoY Cost/income Cost/income 40% 7 43% 6 369 18 (8) 19 344 8 +9%2 o/w: Arma Partners €10m 200 +24%2 +6%2 180 Germany €3m +6% excluding Arma Partner
Slide 15: Group CoR at 51bps, Confirmed at Good Level
GROUP COR AT 51BPS, CONFIRMED AT GOOD LEVEL 3M/1Q25 - Group results Section 2 CoR trend by Group and divisions (bps) Overlay stock trend (€m) 263 169 174 178 CF 19 165 168 222 215 40 19 21 27 28 57 48 51 46 43 GROUP 204 175 167 7 11 5 (3) 2 WM 8 (5) (12) (17) (3) CIB Sept23 June24 Sept24 CF CIB Othe
Slide 16: Prudent Staging
PRUDENT STAGING GROSS NPL RATIO AT 2.6% AND HIGH COVERAGE RATIOS 3M/1Q25 - Group results Section 2 Gross NPL ratio flat YoY at 2.6% (0.8% net), with strong coverage (69%) confirmed 0.1 Gross NPL ratio 0.1 Net NPL ratio 0.9 NPL coverage ratio 0.9 0.0 0.0 71.5% 0.8 0.0 2.6% 2.5% 2.6% 0.0 0.8 69.1% 69.
Slide 17: Asset Quality by Divisions
ASSET QUALITY BY DIVISIONS 3M/1Q25 - Group results Section 2 Net NPLs (€m) of which bad loans (€m) NPL coverage NPLs as % of loans (“deteriorate”) (“sofferenze”) 72% Gross 69% 69% 2.6% 2.5% 2.6% +4% Mediobanca +5% 0.8% 0.8% 0.8% 395 414 429 Group 36 30 31 Net Sept23 June24 Sept24 Sept23 June24 Sept2
Slide 18: Effective Capital Management – RoRWA at 2.7%
EFFECTIVE CAPITAL MANAGEMENT – RORWA AT 2.7% RWA DOWN 6% YOY, CIB DOWN 18% (>€3BN REDUCTION) 3M/1Q25 - Group results Section 2 RWAs trend by division (€bn, incidence %) Divisional RoRWA (%) -6% YoY 4.2% 50.3 100% 47.6 47.4 100% 3.6% 4.3 8% 4.2 4.6 10% 3.5% 17% 3.2% 8.5 8.1 8.1 17% 2.8% 12% 2.8% 5.8
Slide 19: Robust Capital Creation, High Capital Ratios
ROBUST CAPITAL CREATION, HIGH CAPITAL RATIOS 3M/1Q25 - Group results Section 2 CET1¹ ratio 1Q25 trend Capital generation: 70bps in 3M +70bps +10bps 15.4% High shareholder remuneration in FY25 15.2% (10)bps (50)bps 70% cash dividend, with interim dividend paid in May25 €385m SBB, already approved by
Slide 20: 1Q25 Results Summary
1Q25 RESULTS SUMMARY Financial results Highlights 1Q25 4Q24 1Q24 Δ Δ Positive start to 1Q25, with results reflecting investments for growth €m Sept24 June24 Sept23 YoY1 QoQ1 notably in WM, the priority growth business in the BP23-26. Net profit Total income 865 979 864 - -12% of €330m, with profitab
Slide 21: Sustainable Banking
SUSTAINABLE BANKING FURTHER UPGRADE OF OUR ESG PROFILE 3M/1Q25 - Group results Section 2 ENVIRONMENT SOCIAL GOVERNANCE All NZBA Targets and Transition plan 2024 PRB Report and CSR initiatives 2024 AGM published - Product development 2025 and 2030 Portfolio emission reduction Publication of UNEPFI -
Slide 22: Agenda
Agenda Section 1. Executive summary Section 2. 3M/1Q25 Group results Section 3. 3M/1Q25 Divisional results Section 4. Closing remarks Annexes 1. Macro scenario 2. Divisional tables
Slide 23: Group RoRWA at 2.7%
GROUP RORWA AT 2.7% 3M/1Q25 Divisional results Section 3 Revenues (€m, 3M) GOP risk adj. (€m, 3M) Net profit (€m, 3M) RoRWA & ROTE (%) 5.0% 17.0% ROTE flat 14.3% 4.5% 15.0% 4.0% 3.5% 13.0% 13.0% Mediobanca -7% 11.0% -6% 3.0% 864 865 9.0% 2.8% 2.5% 460 428 2.7% Group 330 RoRWA 7.0% 351 2.0% 5.0% 1.5%
Slide 24: WM: One Brand–One Culture Strategic Path in 1Q25
WM: “ONE BRAND–ONE CULTURE” STRATEGIC PATH IN 1Q25 3M/1Q25 Divisional results - WM Section 3 MBWM: “ONE FRANCHISE” approach leveraging the Mediobanca brand WM BP23-26 strategic path: ➢ €0.6bn liquidity events gathered by MBPB in 1Q25 (up from 0.3bn in 1Q24), €0.4bn in synergy with CIB ➢ Main growth
Slide 25: TFAs Up ~€4bn in 3M to €103bn
TFAs UP ~€4BN IN 3M TO €103BN €2.6BN INFLOWS, WITH ONGOING REBALANCING MIX TOWARDS AUM 3M/1Q25 Divisional results - WM Section 3 Group TFAs trend (€bn) MBWM: net inflows by quarter (€bn) 103.2 99.4 2.6 1.2 3.3 28.2 29.5 1.3 2.5 2.6 1.2 1.2 ~50% of AUM NNM breakdown 1.7 1.1 NNM from MB AUM/AUA +2.3 0
Slide 26: Repositioning, Quality and Specialization Paying Off
REPOSITIONING, QUALITY AND SPECIALIZATION PAYING OFF 3M/1Q25 Divisional results - WM Section 3 MB Premier: repositioning since June 23 Effective conversion capabilities into AUM (MB Premier 3M NNM from AUM/AUA, €bn) Up ~90 Senior Advisors 23% (60% Bankers and 40% FAs) 29% Network Senior advisors fro
Slide 27: WM: 1Q25 Results Snapshot
WM: 1Q25 RESULTS SNAPSHOT REVENUES ~€230m (up 5%) – NET PROFIT >€50m (up 6%) 3M/1Q25 Divisional results - WM Section 3 Financial results Highlights Strong commercial results in 1Q25, with MBWM among the 1Q25 4Q24 1Q24 Δ Δ €m Sept24 June24 Sept23 YoY1 QoQ1 highest NNM results in the industry in Jul-S
Slide 28: CIB: One Brand – One Culture Strategic Path in 1Q25
CIB: “ONE BRAND – ONE CULTURE” STRATEGIC PATH IN 1Q25 3M/1Q25 Divisional results Section 3 MBCIB - more international and diversified investment bank: advisory led and client-centric with selective balance sheet use; strong integration in Italy between CIB and WM with Private Investment Bank model C
Slide 29: Strong Performance in M&A
STRONG PERFORMANCE IN M&A… 3M/1Q25 Divisional results Section 3 Selected M&A Italian Large-Cap Transactions M&A activity in 2024 has been more positive and constructive than last Announced Announced Announced July 2024 year driven mainly by both large strategic M&A recovery and renewed Co-investors
Slide 30: …and in DCM
…AND IN DCM 3M/1Q25 Divisional results Section 3 In a scenario of modest domestic and European ECM activity, Mediobanca Selected ECM Transactions acted as JGC in the €400m capital increase via rights issue of Fincantieri executed in July July 2024 March 2024 January 2024 December 2023 September 2023
Slide 31: Revenues: Solid Trend Confirmed
REVENUES: SOLID TREND CONFIRMED 3M/1Q25 Divisional results Section 3 Revenue by product (3M, €m) Highlights 1Q25 revenues at €183m, up 30% YoY, reflecting the Arma +30% YoY Partners consolidation (up 13% on a like-for-like basis) and the confirmed recovery in Advisory business 227 Advisory: ~€55m fe
Slide 32: CIB: 1Q25 Results Snapshot
CIB: 1Q25 RESULTS SNAPSHOT FOCUS ON K-LIGHT ACTIVITIES, IMPROVING PROFITABILITY 3M/1Q25 Divisional results Section 3 Financial results Highlights Net profit up 19% in 1Q25 YoY to €57m, reflecting: 1Q25 4Q24 1Q24 Δ Δ €m Revenues up 30% YoY to €183m: Sept24 June24 Sept23 YoY1 QoQ1 Total income 183 227
Slide 33: CF: One Brand–One Culture Strategic Path in 1Q25
CF: “ONE BRAND–ONE CULTURE” STRATEGIC PATH IN 1Q25 3M/1Q25 Divisional results Section 3 Sustainable and profitable growth leveraging on direct and digital distribution CF BP23-26 strategic path: Direct distribution ➢ Proprietary distribution network up to 329 branches (up 13 and digital YoY, up 2 Qo
Slide 34: Growth in New Business, Loan Book, Yield
GROWTH IN NEW BUSINESS, LOAN BOOK, YIELD 3M/1Q25 Divisional results Section 3 New loans by product (3M, €bn) Loan book net profitability (3M, %) 10.0% 11.00% avg loans book yield1 +12% up ~80bps YoY 10.00% 9.0% 2.2 2.2 -6% 9.00% 2.0 2.1 8.0% 8.00% 1.9 7.0% 7.00% 0.9 1.0 1.1 1.0 6.0% 6.00% 0.9 5.00%
Slide 35: Asset Quality Confirmed as Healthy
ASSET QUALITY CONFIRMED AS HEALTHY 3M/1Q25 Divisional results Section 3 Early risk indicators normalizing… …reflected in an expected increase in CoR… Early deterioration index LLPs (€m) and cost of risk (bps) (loans entering recovery status/avg. loans; 3 months average) 9.00% FY24: 168 8.00% FY23: 1
Slide 36: Consumer Finance: Unbroken Profitable Growth
CONSUMER FINANCE: UNBROKEN PROFITABLE GROWTH STRONG NII DRIVER ALSO BEYOND 2026 3M/1Q25 Divisional results Section 3 Financial results Highlights Solid commercial activity in IQ25, with results confirming the 1Q25 4Q24 1Q24 Δ Δ €m value of proprietary distribution: Sept24 June24 Sept23 YoY1 QoQ1 Str
Slide 37: Insurance: Solid Normalized Contribution
INSURANCE: SOLID NORMALIZED CONTRIBUTION 3M/1Q25 Divisional results Section 3 Financial results Highlights 1Q25 4Q24 1Q24 Δ Δ 1Q25 net profit at €121m, down 11% YoY reflecting: €m Sept24 Jun24 Sept23 YoY1 QoQ1 Lower revenues (down 20% YoY), on normalized AG Total income 115 181 143 -20% -36% contrib
Slide 38: Holding Functions: Lower Contribution Due to Rates Decrease
HOLDING FUNCTIONS: LOWER CONTRIBUTION DUE TO RATES 3M/1Q25 Divisional results DECREASE Section 3 Financial results Highlights 1Q25 4Q24 1Q24 Δ Δ Net loss at €4m in 1Q25 (vs €19m net profit in 1Q24), due to: €m Sept24 June24 Sept23 YoY1 QoQ1 Revenues down 59% YoY, due to lower interest rates/trading
Slide 39: Agenda
Agenda Section 1. Executive summary Section 2. 3M/1Q25 Group results Section 3. 3M/1Q25 Divisional results Section 4. Closing remarks Annexes 1. Macro scenario 2. Divisional tables
Slide 40: MB Well Positioned in the New Interest Rate Environment
MB WELL POSITIONED IN THE NEW INTEREST RATE ENVIRONMENT NII FLAT AND FEES INCREASING BY LOW-DOUBLE DIGITS IN NEXT 2Y Closing remarks Section 4 NII: MB well positioned in the new interest rate environment, with flat trend ahead vs southern EU declining (NII %var., MB guidance vs Peers’ consensus) 35%
Slide 41: EPS Growing in Both FY24/25 and FY25/26
EPS GROWING IN BOTH FY24/25 AND FY25/26 ON THE RIGHT PATH TO REACH BP26 TARGET €1.80 Closing remarks Section 4 EPS: MB mid-single digit growth expected ahead vs low-single digit growth in Southern EU (EPS %var., MB guidance vs Peers’ consensus) 40% Δ% FY25/24 Δ% FY26/25 30% 20% 10% 0% -10% -20% MB P
Slide 42: Closing Remarks: Delivery of BP One Brand-One Culture Ongoing
CLOSING REMARKS DELIVERY OF BP “ONE BRAND-ONE CULTURE” ONGOING Closing remarks Section 4 Stronger industrial footprint Superior High distribution feeding high & capital creation with low execution risk sustainable growth FY25 GUIDANCE1 Growth in TFAs with €9-10bn of NNM p.a. with strong enhancement
Slide 43: Q&A Session
MEDIOBANCA 3M/1Q RESULTS AS AT 30 SEPTEMBER 2024 Q&A SESSION
Slide 44: Agenda
Agenda Section 1. Executive summary Section 2. 3M/1Q25 Group results Section 3. 3M/1Q25 Divisional results Section 4. Closing remarks Annexes 1. Macro scenario 2. Divisional tables
Slide 45: Macro Scenario Ahead
MACRO SCENARIO AHEAD Macro scenario Annex Scenario BP23-26 Oct24 Scenario 20231 2024 2025 2026 20241 2025 2026 2027 IT GDP (y/y) 0.7% 1.3% 1.2% 1.3% 0.8% 0.9% 0.9% 0.7% EA GDP (y/y) 0.5% 1.8% 2.3% 2.2% 0.8% 1.1% 1.5% 1.5% IT Inflation (y/y) 6.9% 3.5% 2.7% 2.1% 1.1% 1.8% 1.9% 1.8% IT Core Infl. (y/y)
Slide 46: Mediobanca Group P&L
MEDIOBANCA GROUP P&L 3M results as at September 2024 Annex 1Q25 4Q24 3Q24 2Q24 1Q24 D D €m Sept24 June24 Mar24 Dec23 Sept23 QoQ1 YoY1 Total income 865 979 898 867 864 -12% - Net interest income 485 492 496 501 496 -2% -2% Fee income 231 279 238 242 180 -17% +29% Net treasury income 39 39 40 46 48 +2
Slide 47: Mediobanca Group A&L
MEDIOBANCA GROUP A&L 3M results as at September 2024 Annex D D €bn Sept24 June24 Sept23 QoQ1 YoY1 Funding 62.1 63.7 60.2 -2% +3% Bonds 27.4 27.6 23.1 -1% +19% Direct WM deposits 28.2 27.9 27.6 +1% +2% ECB 0.0 1.3 4.6 n.m. n.m. Others 6.5 6.8 4.9 -5% +33% Loans to customers 52.0 52.4 51.1 -1% +2% CIB
Slide 48: Wealth Management Results
WEALTH MANAGEMENT RESULTS 3M results as at September 2024 Annex 1Q25 4Q24 3Q24 2Q24 1Q24 D D €m Sept24 June24 Mar24 Dec23 Sept23 QoQ1 YoY1 Total income 228 234 232 240 218 -2% +5% Net interest income 102 105 107 106 107 -3% -5% Fee income 124 126 123 132 108 -1% +15% Net treasury income 2 2 3 2 2 -9
Slide 49: CIB Results
CIB RESULTS 3M results as at September 2024 Annex 1Q25 4Q24 3Q24 2Q24 1Q24 D D €m Sept24 June24 Mar24 Dec23 Sept23 QoQ1 YoY1 Total income 183 227 194 201 142 -19% +30% Net interest income 72 74 80 78 75 -3% -5% Fee income 84 136 91 86 48 -38% +75% Net treasury income 28 17 22 37 19 +63% +50% Total c
Slide 50: Consumer Finance Results
CONSUMER FINANCE RESULTS 3M results as at September 2024 Annex 1Q25 4Q24 3Q24 2Q24 1Q24 D D €m Sept24 June24 Mar24 Dec23 Sept23 QoQ1 YoY1 Total income 310 301 305 298 286 +3% +8% Net interest income 275 266 266 259 254 +4% +8% Fee income 35 35 39 38 33 -1% +7% Total costs (90) (98) (97) (92) (83) -8
Slide 51: Insurance Results
INSURANCE RESULTS 3M results as at September 2024 Annex 1Q25 4Q24 3Q24 2Q24 1Q24 D D €m Sept24 June24 Mar24 Dec23 Sept23 QoQ1 YoY1 Total income 115 181 126 80 143 -36% -20% Impairments 12 0 11 10 (1) Net result 121 169 130 86 137 -28% -11% Book value (€bn) 4.8 4.6 4.7 4.4 4.3 +4% +10% Ass. Generali
Slide 52: Holding Functions Results
HOLDING FUNCTIONS RESULTS 3M results as at September 2024 Annex 1Q25 4Q24 3Q24 2Q24 1Q24 D D €m Sept24 June24 Mar24 Dec23 Sept23 QoQ1 YoY1 Total income 33 44 46 55 80 -24% -59% Net interest income 28 39 36 51 53 -29% -48% Net treasury income 2 6 10 2 21 -60% -89% Fee income 3 (1) (0) 2 6 n.m. -47% T
Slide 53: Glossary
GLOSSARY MEDIOBANCA BUSINESS SEGMENT PROFIT & LOSS (P&L) and BALANCE SHEET CIB Corporate and investment banking ESG Environmental, Social, Governance WB Wholesale banking FAs Financial Advisors SF Specialty finance FVOCI Fair Value to Other Comprehensive Income CF Consumer finance GOP Gross operatin
Slide 54: Disclaimer & Declaration of Head of Financial Reporting
DISCLAIMER & DECLARATION OF HEAD OF FINANCIAL REPORTING Disclaimer This document includes certain projections, estimates, forecasts and consequent targets which reflect the current views of Mediobanca – Banca di Credito Finanziario S.p.A. (the “Company”) with regard to future events (“forward-lookin
Slide 55: Investor Contact Details
INVESTOR CONTACT DETAILS Mediobanca Group Investor Relations Piazzetta Cuccia 1, 20121 Milan, Italy Email: investor.relations@mediobanca.com +39 02 8829 860/347 http://www.mediobanca.com 55
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