Mediobanca SPA ADR Reports Strong Earnings Growth

Mediobanca SPA ADR ((MDIBY)) has held its Q4 earnings call. Read on for the main highlights of the call.

Mediobanca SPA ADR’s recent earnings call highlighted a robust financial performance, showcasing significant growth across various sectors. Despite facing challenges such as increased cost of funding and macroeconomic uncertainties, the company demonstrated resilience and provided a positive outlook for the future.

Record Net New Money

Mediobanca reported an impressive EUR 11 billion in net new money, marking a 30% increase compared to the previous year. This substantial growth underscores the company’s strong market position and effective strategies in attracting new investments.

Strong Growth in Consumer Finance

The consumer finance segment experienced a notable expansion, with loans reaching EUR 9 billion, reflecting a 9% increase year-on-year. This growth is indicative of the company’s successful penetration and competitive offerings in the consumer finance market.

Increased Dividend

Shareholders are set to benefit from an increased dividend of EUR 1.15 per share, up 7% from the previous year. This decision highlights Mediobanca’s commitment to delivering value to its investors.

Improved Cost of Risk

The cost of risk ended at 44 basis points, better than the anticipated 50-55 basis points. This improvement signifies the company’s effective risk management strategies and contributes to its overall financial stability.

Growth in Wealth Management

Wealth Management saw a 13% increase in fees, driven by a similar growth rate in assets under management (AUM). This sector’s performance reflects Mediobanca’s strong capabilities in managing and growing client assets.

Corporate Investment Banking Success

Corporate Investment Banking (CIB) revenues reached EUR 900 million, up 16% year-on-year, with advisory fees hitting an all-time high of EUR 300 million. This success underscores the company’s expertise and leadership in the investment banking sector.

Strong ESG Performance

Mediobanca achieved a significant reduction in emissions intensity by 18% and received high ratings from key agencies, demonstrating its commitment to environmental, social, and governance (ESG) principles.

Positive Outlook for 2026

Looking ahead, Mediobanca provided optimistic guidance, projecting revenue to reach EUR 4.4 billion with a 9% EPS growth and a 30% total yield by 2026. These forecasts reflect the company’s confidence in its strategic initiatives and market opportunities.

In conclusion, Mediobanca SPA ADR’s earnings call painted a picture of a company on a strong growth trajectory, with impressive financial achievements and a positive outlook. Despite some challenges, the company’s strategic focus and effective management are expected to drive continued success and shareholder value in the coming years.