Mediobanca - Banca di Credito Finanziario SpA (MDIBF) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning. Thank you for joining the call. Commenting the first quarter of this started year, I would like to highlight two main features. The first one has been accelerating investment in our physical and digital distribution platform. This is across the different business where we have accelerated recruiting, accelerated transformation in the digitalization of the group, both in wealth management, in CIB, and in consumer finance. These important investments that are going to underpin the growth in revenue beyond the actual triage plan were coupled with very strong commercial flow, record for the summer quarters, where we have had 2.6 billion of net new money, which is again double the best industry and the best industry level at 10% of TFA. 2.1 billion of net new loans in consumer finance, up 12%, and increased activity in CIB where we have announced 27 deals in the quarter, which is plus 36% year-on-year. So, basically, revenue and profitability of all banking business went up again after one year where we have hit record revenue and results for each of the business. So, Basically, we have had an increase of 6% in net profitability in wealth management, 20% in CIB, and 5% in consumer finance. The main feature was also the growth in fee, which is 30% up compared to a year ago, and this was driven by wealth management and CIB. We have had a spike in consumer finance NII, And this was the positive trend in NII, while the negative trend in NII, which also was intended because we have taken an industrial view about the need to invest and have more TFA, was a temporary drag in NII in wealth management and in CIB because of all-time low credit spread, we didn't want to stack up with loans for two or three years with very, I would say, low profitability in corporate le...