The quarterly net profit of the first Italian investment bank reached 48.2 million euros. Analysts expected 32 million.
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The first Italian investment bank, Mediobanca, saw its net profit divided by four in the fourth quarter of its staggered 2019/20 fiscal year in a context heckled by the pandemic, but did better than expected, including for its turnover. ‘business.
Net profit reached 48.2 million euros (against 197 million a year earlier), she said in a statement on Thursday. Analysts expected $ 32 million, according to financial information provider Factset Estimates.
Its revenues fell 5.6% to 605.9 million euros, a figure again higher in seasonally adjusted terms than expected (526 million).
Over the full year 2019/2020, Mediobanca’s net profit decreased by 27% to 600.4 million euros, while its turnover remained almost stable (-0.5%), to 2.5 billion.
Due to the impact of the epidemic, Mediobanca specified that “its interest margins would be down in the first quarters of the 2020/2021 fiscal year”, due in particular to the fall in consumer credit. Conversely, commissions will be supported by growth in asset management activities.
The bank, which already reports a “gradual but significant recovery in all segments”, plans “a normalization of its activities by December”
Its hard equity ratio (CET1), an index closely followed by analysts because it measures the ability to cope with a crisis, reached a historic peak, at 16.13%, against 13.88% at the end of March and 14.1 % at the end of December, an extremely high level.
Mediobanca has confirmed “the strategic orientations, objectives, capital optimization policy and shareholder remuneration” provided for in its strategic plan for 2023 despite the impact of Covid-19.
It aims for a CET1 of 13.5% in June 2023 thanks to prudent management of the impact of the health crisis.
The bank has also suspended the payment of its dividend, as requested by the European Central Bank (ECB). From 2021, it plans to “return to a distribution policy among the best in the sector”.
Investors sanctioned these announcements: around 11:30 am GMT, the title lost 3.72% to 6.68 euros in a globally sealed market (-2.71%).
Mediobanca, which plays a central role in the business life of the peninsula, has embarked on a strong transformation in recent years with particular emphasis on its asset management activities and its expansion abroad.
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