Mediobanca's Quarterly Profit Dips; Wealth Income Gains

Tom Burroughes

13 November 2024

Milan-headquartered , which provides services including private banking, has reported a net profit of €330 million ($349 million) for the three months to the end of September 2024, slipping from €351.3 million a year earlier.

Total income stood at €864.6 million in the quarter, almost unchanged from a year ago. Operating costs rose to €369 million from €343.9 million. Loan loss provisions rose to €67.2 million from €60 million.

Wealth management net profit rose 6 per cent to €53 million; revenues in wealth management rose 5 per cent year-on-year to €228 million.

In its guidance for the 2024-25 financial year reporting period, Mediobanca said wealth management revenues will grow moderately, with fees rising in low double-digit rates.

“The growth of Mediobanca Wealth Management is facilitated by the bank’s distinctive positioning in Italy as a private and investment bank, an especially differentiating feature now that the economic cycle is favouring liquidity events originated by investment banking.

“The division’s growth will outperform the system, on the back of the enhanced product offering within the Mediobanca ecosystem plus the continued strengthening of the network…,” it said.

The wealth management arm added 33 new bankers and advisors in the quarter; it logged €2.6 billion in net new money.

The Italian banking group said it finished the quarter with a Common Equity Tier 1 ratio – a standard international measure of a bank’s shock absorber capital – of 15.4 per cent, a rise of 20 basis points on the previous three months.