Strategy
Wealth Management To Shine In Mediobanca's Future Strategy
The Italian banking group has set out its 2023 to 2026 strategy, giving prominence to the wealth management and corporate and investment banking arms.
Milan-based Mediobanca said it intends
to grow its wealth management sales force by 25 per cent to more
than 1,500 people over the 2023 to 2026 period, according to its
three-year strategic plan, published yesterday.
Out of the 1,500 people, 1,350 are in the bank’s Premier
segment and 170 in the private [bank] segment (rising 15 per
cent). The lender also wants to increase the number of investment
bankers in the advisory and capital markets' areas and
increase its consumer finance network through strong growth in
the digital channel. Mediobanca said it was also scouting for
possible acquisitions.
The bank wants to boost earnings per share by 15 per cent to €1.8
($1.93) from €1.15 per share, with increasing contributions from
the wealth management and corporate and investment banking
arms.
Mediobanca – which operates private banking in a number of
markets – said that across the group as a whole, it wanted
to concentrate on growing “capital-light assets” and to manage
capital more efficiently. This is part of its policy
of holding its risk-weighted assets at a stable level, it
said.
The lender said it wants to grow revenues by 6 per cent to €3.8
billion, with all business segments contributing strongly. Wealth
management, it said, will “have the highest organic growth rate
(up 10 per cent). It is expected to exceed €1 billion in
revenues, becoming the top contributor to fee income at group
level and so complementing corporate and investment banking
(CIB), which is expected to deliver topline growth of 11 per cent
to €900 million.
Segments
The firm said that Mediobanca Private Banking is now a “market
leader” in the high net worth and ultra-HNW client segment.
It leads the way in offering private markets products (which
account for €1 billion of AuM, with more than €3 billion
committed); and has significantly outperformed the market (total
financial assets up at a rate of 11 per cent with over €12
billion in net new money).
Mediobanca said its CMB Monaco business, “has also undergone a
significant repositioning and growth process in recent years,
with assets, revenues and profits all doubling (total financial
assets up from €8 billion in 2016 to about €15 billion, revenues
up to €160 million, and net profits rising to around €55
million).