Mediobanca says no wealth management deal in sight as profit beats consensus

A symbol of Mediobanca is pictured at Mediobanca headquarters in Milan, Italy, November 12, 2019. REUTERS/Flavio Lo Scalzo

MILAN, Might 11 (Reuters) – Mediobanca (MDBI.MI) on Wednesday ruled out the prospect of a wealth management acquisition in the immediate foreseeable future, right after reporting greater than anticipated quarterly outcomes many thanks to contributions from all its company segments.

Under Chief Government Albert Nagel, the Italian monetary companies team has moved absent from its regular role as an trader in big Italian corporations in favour of boosting its wealth administration and consumer finance businesses.

To improve Mediobanca’s prosperity administration operations, Nagel in 2020 viewed as swapping the group’s 13% stake in insurance company Generali (GASI.MI) with personal banking device Banca Generali (BGN.MI).

He also proposed a merger to Banca Mediolanum (BMED.MI), but neither shift led to a offer.

Nagel has appear under strain from Mediobanca’s major shareholder Leonardo Del Vecchio, who has criticised Mediobanca for what he considered an excessive reliance on the Generali stake, and has proposed governance modifications at the financial institution. go through extra

In a article-results briefing, Nagel explained Mediobanca was joyful with its Generali stake, which gave “an important counter-cyclical contribution” to its harmony sheet.

It would change the position quo only if a “concrete and as great solution” emerged, he reported, reiterating a choice for bolt-on acquisitions. At existing however, “there are no data files open or ongoing talks” to buy a significant name in prosperity administration, he added.

The lender said in a assertion its web income for its fiscal third quarter stood at 190.1 million euros ($200.7 million), fractionally down from a calendar year in the past but in advance of an typical analyst consensus provided by the bank of 170 million euros.

It has no materials direct exposure to Russia, Ukraine and Belarus, and a little indirect exposure mainly to counterparts with a good credit score, it said.

Only “a reasonable percentange of the whole financial loan e-book” is relevant to sectors most affected by popular increases in prices, it stated.

Mediobanca explained its entirely-loaded main capital ratio remained broadly secure in the quarter at 14%, immediately after having into account hard cash set apart to satisfy a 70% dividend payout ratio and a share buyback commenced in December.

A increase in the internet desire margin in its consumer finance business enterprise and double-digit growth in expenses from wealth management and expense banking operations lifted revenues to 688 million euros in the quarter, beating consensus of 675 million euros.

($1 = .9471 euros)

Reporting by Gianluca Semeraro Modifying by Valentina
Za, Keith Weir and Jan Harvey

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