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Banca Mediolanum SpA Unsponsored ADR (BNCDY)
:BNCDY
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Banca Mediolanum
(OTC:BNCDY)
Rating:68Neutral
Price Target:―
Banca Mediolanum (BNCDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.07B
Dividend Yield9.67%
Average Volume (3M)0.00
Price to Earnings (P/E)9.8
Beta (1Y)0.77
Revenue Growth11.63%
EPS Growth29.42%
CountryUS
Employees3,871
SectorFinancial
Sector Strength73
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.69
Shares Outstanding372,686,200
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio-0.86
Price to Book (P/B)3.98
Price to Sales (P/S)0.00
P/FCF Ratio5.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Banca Mediolanum Business Overview & Revenue Model
Company DescriptionBanca Mediolanum (BNCDY) is an Italian banking group that operates in the financial services sector. The company offers a comprehensive range of banking products and services, including savings accounts, loans, mortgages, insurance, and investment solutions. Banca Mediolanum primarily targets retail clients, providing personalized financial advisory services through its network of financial advisors, as well as through digital platforms to ensure accessibility and convenience for its customers.
How the Company Makes MoneyBanca Mediolanum generates revenue through a diverse range of financial services. The company earns interest income from loans and mortgages offered to its clients. Additionally, it collects fees and commissions from the distribution of financial products, such as insurance policies and investment funds. Banca Mediolanum also benefits from asset management services, where it charges management fees for overseeing clients' investment portfolios. The company's strategic partnerships with insurance and investment firms further enhance its product offerings and contribute to its earnings. Moreover, a focus on digital banking services helps the bank reduce operational costs and attract tech-savvy customers, boosting its revenue potential.
Banca Mediolanum Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q3-2024)
| % Change Since: 4.51%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Banca Mediolanum's strong financial performance, with record net income and significant growth in managed assets and customer acquisition. However, concerns about regulatory impacts and increased funding costs pose challenges. Despite these lowlights, the overall outlook remains positive with strong market positioning and strategic growth initiatives.Q3-2024 Updates
Positive Updates
Record-Breaking Financial Performance
Net income reached EUR 674.3 million, exceeding last year's 9-month results by 18%. Q3 alone reported EUR 224.4 million, with a significant double-digit growth in net commission income up 13% to over EUR 874 million.
Strong Asset Under Management Growth
Managed assets achieved a notably positive trend, reaching EUR 5.44 billion, almost doubling last year's figure, and total net inflows marked a 28% increase for the 9 months.
Customer and Digital Channel Expansion
Record acquisition of 149,000 new bank customers, a 7% increase, with the digital channel Selfy contributing 21,200 new customers, a 5% increase.
Positive Market Conditions and Net Inflows
Market effects contributed to net income with positive mark-to-market and performance fees totaling EUR 51 million compared to a negligible amount last year, and total assets surged to EUR 133 billion, a 13% increase.
Strong Performance in Spain
Net income in Spain grew by 10% to EUR 54.4 million, with total assets increasing by 15% and managed assets by 22%.
Negative Updates
Potential Impact of Regulatory Changes
The implementation of Basel III regulations in 2025 is projected to reduce the CET1 ratio by around 2 percentage points, indicating a potential future challenge.
Higher Funding Costs
The higher than expected inflows due to promotional offers led to increased funding costs, impacting the net interest income growth projections.
Market Dependency and Future Uncertainties
Future performance heavily depends on market conditions, with potential competition from BTPs and rate fluctuations affecting managed asset inflows and NII projections.
Company Guidance
During Banca Mediolanum's Q3 2024 earnings call, the company provided guidance on several key financial metrics, highlighting a strong performance and positive outlook. Net income reached EUR 674.3 million, marking an 18% increase compared to the same period last year, with Q3 alone contributing EUR 224.4 million. Net interest income remained robust at over EUR 630 million, despite initial ECB rate cuts, and is projected to grow by 8% in 2024. The bank's net commission income experienced a significant 13% rise, totaling over EUR 874 million, with recurring fees hitting a record EUR 1.13 billion, up 14.5%. The operating margin soared to EUR 848 million, a 16% increase, while the cost/income ratio improved to 38.3%. Total net inflows over the first nine months were EUR 7.16 billion, a 28% increase, with managed assets contributing EUR 5.44 billion. The company's CET1 ratio stood strong at 23.4%, and an interim dividend of EUR 0.37 per share was announced. With a positive market outlook and strategic promotional efforts, Banca Mediolanum anticipates maintaining strong inflows and leveraging higher commission income to offset potential net interest income reductions in 2025.Banca Mediolanum Financial Statement Overview
Summary
Banca Mediolanum's financial performance demonstrates strong revenue and profit growth, underpinned by a high gross profit margin and improved net profit margin. However, negative EBITDA and cash flow issues suggest operational and liquidity challenges that need addressing.Income Statement
Banca Mediolanum has demonstrated a robust revenue growth trajectory, with a significant increase in total revenue from 2022 to 2023. The Gross Profit Margin is exceptionally high at 135.9% for 2023, indicating strong profitability. However, the negative EBITDA in 2023 is a concern, suggesting potential operational inefficiencies or non-cash expenses impacting earnings before interest, taxes, depreciation, and amortization. The Net Profit Margin improved significantly to 43.9% in 2023, reflecting effective cost management or revenue growth. Overall, the income statement reflects strong growth but with some operational challenges.68
Positive
Balance Sheet
The balance sheet of Banca Mediolanum shows a stable financial position with a Debt-to-Equity Ratio of 2.41, which is relatively high but typical in the banking industry due to high leverage. The Return on Equity improved to 23.8% in 2023, indicating efficient use of equity to generate profits. The Equity Ratio remains low at 4.4%, which points to a high reliance on debt financing, a common characteristic in banking. Overall, the balance sheet reflects stability with a focus on leveraging debt for growth.72
Positive
Cash Flow
The cash flow statement raises some concerns, with a negative Free Cash Flow in 2023 indicating challenges in generating cash from operations after capital expenditures. The Operating Cash Flow to Net Income ratio is negative, suggesting issues in converting accounting profits into cash flows. The Free Cash Flow to Net Income ratio also reflects negative performance, highlighting potential liquidity constraints. Despite the company's growth, cash flow management appears to be a critical area for improvement.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.99B | 1.92B | 1.46B | 5.73B | 3.11B | Gross Profit |
| 1.99B | 1.87B | 545.36M | 4.81B | 2.33B | EBIT |
| 1.21B | 1.16B | 741.41M | 890.47M | 531.42M | EBITDA |
| 1.51B | -19.41M | 741.41M | 890.47M | 531.42M | Net Income Common Stockholders |
| 1.12B | 821.87M | 506.83M | 713.05M | 434.46M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 0.00 | 188.13M | 2.75B | 5.32B | 664.61M | Total Assets |
| 0.00 | 77.83B | 73.60B | 73.52B | 59.03B | Total Debt |
| 0.00 | 8.32B | 372.29M | 68.01M | 74.38M | Net Debt |
| 0.00 | 8.13B | -2.38B | -5.25B | -590.24M | Total Liabilities |
| 82.13B | 74.38B | 70.66B | 70.64B | 56.29B | Stockholders Equity |
| 3.88B | 3.45B | 2.94B | 2.88B | 2.74B |
| Cash Flow | Free Cash Flow | |||
| 0.00 | -1.81B | 2.24B | 848.49M | -49.76M | Operating Cash Flow |
| 1.19B | -1.75B | 2.30B | 909.30M | -7.00M | Investing Cash Flow |
| -51.65M | -23.93M | -34.06M | -38.14M | -38.16M | Financing Cash Flow |
| -640.36M | -385.65M | -428.66M | -737.97M | 4.92M |
Banca Mediolanum Technical Analysis
Neutral
32.67
Price Trends
31.16
Positive
29.72
Positive
26.47
Positive
Market Momentum
0.40
Positive
50.09
Neutral
35.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNCDY, the sentiment is Neutral. The current price of 32.67 is below the 20-day moving average (MA) of 33.36, above the 50-day MA of 31.16, and above the 200-day MA of 26.47, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 50.09 is Neutral, neither overbought nor oversold. The STOCH value of 35.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BNCDY.
Banca Mediolanum Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $29.92B | 25.89 | 40.36% | 0.32% | 26.32% | 8.63% | |
78 Outperform | $51.92B | 12.59 | 16.08% | 2.93% | 8.77% | 110.90% | |
77 Outperform | $47.77B | 17.05 | 58.11% | 1.27% | 9.14% | 0.05% | |
73 Outperform | $17.02B | 16.27 | 9.70% | 4.00% | 5.84% | -10.64% | |
71 Outperform | $36.45B | 16.30 | 8.04% | 5.24% | 2.47% | 6.88% | |
68 Neutral | $12.07B | 9.84 | 27.96% | 9.67% | 11.63% | 29.42% | |
64 Neutral | $12.77B | 9.71 | 7.85% | 78.05% | 12.07% | -7.97% |
* Financial Sector Average
Performance Comparison
BNCDY
Banca Mediolanum
33.04
11.78
55.41%
AMP
Ameriprise Financial
512.91
81.34
18.85%
LPLA
LPL Financial
379.76
98.18
34.87%
MET
Metlife
77.35
9.47
13.95%
PFG
Principal Financial
75.90
0.31
0.41%
PRU
Prudential Financial
104.94
-5.50
-4.98%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.