During the course of this year the Milan-headquartered group has set out plans to step up its wealth management and private banking operations.

Milan-headquartered Mediobanca, the group which earlier this year set out its wealth management aims, yesterday reported a net profit for the third quarter of 2023 of €351.3 million ($370 million) – a record – surging 33 per cent from the same period a year ago.

The bank said total income rose by 14.1 per cent, while operating costs rose 7 per cent. Loan loss provisions fell 4.2 per cent, the banking group said in a statement. 

Revenues were buoyed by growth in all divisions, including wealth management, which rose 10 per cent year-on-year to €218 million. 

Net interest income stood at €496 million, rising 25 per cent on a year ago; net fee and commission income, however, fell by 14 per cent, affected by a soft trend in investment banking and because a year ago the figure was so strong that it was tough to repeat it, Mediobanca said.

The private banking business captured €300 million in liquidity events – its business model involves working closely with the investment banking arm. (In September, Carlo Giausa joined as group head of global wealth management offering.) Total financial assets (TFAs) rose by €8 billion in the three months to end-September to €89 billion. The wealth management business took €1.8 billion in net new money.

Earlier this year, WealthBriefing spoke to Francesco Grosoli, chief executive of CMB Monaco, about how his business fits into the wider Mediobanca wealth management story.