MDIBF - Mediobanca Banca di Credito Finanziario S.p.A. (MDIBF) Q2 2025 Earnings Call Transcript
2025-02-11 14:30:16 ET
Mediobanca Banca di Credito Finanziario S.p.A. (MDIBF)
Q2 2025 Results Conference Call
February 11, 2025 03:00 AM ET
Company Participants
Alberto Nagel - Chief Executive Officer
Conference Call Participants
Azzurra Guelfi - Citi
Pamela Zuluaga - Morgan Stanley
Luigi De Bellis - Equita SIM
Britta Schmidt - Autonomous Research
Giovanni Razzoli - Deutsche Bank
Domenico Santoro - HSBC
Presentation
Alberto Nagel
Good morning to everybody, and thanks for joining the call. We are halfway of our plan, so ONE BRAND - ONE CULTURE. And the first half of the second year has delivered €660 million of net profit with a return on tangible equity of 14%. We have had a strong commercial activity across the different business, and we have improved all our business position. In Wealth Management, we have had roughly €5 billion of net new money.
In CIB, we have not only confirmed our strong positioning in Southern Europe, but also thanks to Arma, we have had an important leg in the fee-generating business. In Consumer Finance, we have printed more than €4 billion of new loans, and this is clearly above sector growth. So for this reason, revenue were up high single digit. So 6 months on 6 months, they were up 7%. Cost/income ratio stood at 42%. And the main driver has been in the last 6 months, the important growth in fees, which is one of the theme of our plan, so producing more fees and using less capital. So fees were up 30%, driven by CIB and Wealth Management.
The CoR was stable with some encouraging sign of a slight decrease in the quarter. This led to, as I said, an important jump in profit and also in EPS, which went up 10% to €0.79 per share. High capital generation confirmed, this is another important feature of our plan. So grow revenue without using too much capital and producing a lot of capital available for distribution. So our CET1 stood at 15.2%, if we include 10% of payout, also taking into consideration the possible next buyback, we're going to end up at 14.8%.
So interim dividend, the amount will be fixed in the next Board meeting and will be paid on May 15, but clearly reflects the increase of earnings. Now looking at the second quarter, we have seen a clear acceleration of the business development across the different business sectors. So Wealth Management revenue up 10%; CIB 46%; Consumer Finance, 3% and insurance 11%. So all 4 business contributed positively to the dynamic of revenue, and we have reached nearly €1 billion of revenue, which is all-time high in terms of revenue in this second quarter. So 14% increase Q-on-Q.
Here, what we want to underline is the NII trend. NII, you remember in the last call, NII was a bit disappointing because it was a bit lower compared to our expectation. We have been working hard to basically fend off this trend. And now we are in a position to see that NII is going up Q-on-Q, 2% and the main driver are consumer finance and CIB growth of loan book. On this, of course, we will elaborate further in the conference....
Mediobanca Banca di Credito Finanziario S.p.A. (MDIBF) Q2 2025 Earnings Call Transcript