- Net Income: EUR 674.3 million, up 18% year-over-year.
- Net Commission Income: EUR 874 million, a 13% increase.
- Recurring Fees: EUR 1.13 billion, up 14.5% from the previous year.
- Net Interest Income: Over EUR 630 million, up 13% year-over-year.
- Operating Margin: EUR 848 million, a 16% increase.
- Cost/Income Ratio: Reduced to 38.3%.
- Total Inflows: EUR 7.16 billion, a 28% increase.
- Managed Assets Inflows: EUR 5.44 billion, nearly double last year's figure.
- Total Assets: EUR 133 billion, a 13% increase since the start of the year.
- Credit Book: EUR 17.2 billion, up 1% since the beginning of the year.
- NPE Ratio: 0.8%.
- General Insurance Premiums: EUR 143 million, a 6% increase.
- New Bank Customers: 149,000, a 7% increase.
- Total Bank Customer Base: Over 1,800, a 5% increase.
- Bankers: 6,352, a 2% increase.
- CET1 Ratio: 23.4%.
- Leverage Ratio: 7.3%.
- Interim Dividend: EUR 0.37 per share.
- Spain Operating Margin: EUR 65.3 million, a 2% increase.
- Spain Net Income: EUR 54.4 million, a 10% increase.
- Spain Total Assets: EUR 12.2 billion, a 15% increase.
- Spain Managed Assets: EUR 8.9 billion, a 22% increase.
- Spain Net Inflows: EUR 918 million, a 46% increase.
- Spain Customer Base: 248,000, a 7% increase.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Banca Mediolanum (STU:ME1, Financial) reported a record-breaking net income of EUR 674.3 million for the first nine months of 2024, an 18% increase compared to the same period last year.
- Net commission income saw significant double-digit growth, up 13% to over EUR 874 million, driven by strong recurring fees.
- The company achieved a substantial increase in total inflows, reaching EUR 7.16 billion for the nine months, a 28% rise, with managed assets almost doubling last year's figure.
- Banca Mediolanum (STU:ME1) maintained a strong capital base with a CET1 ratio of 23.4%, providing a solid platform for future growth.
- The company announced a higher interim dividend of EUR 0.37 per share, reflecting confidence in its financial performance and future prospects.
Negative Points
- The cost/income ratio, although improved, still reflects increased bonus provisions linked to stronger inflows, indicating rising operational costs.
- There was a slight decrease in net interest income in Q3 compared to Q2, attributed to promotional initiatives and a turnaround in the credit book trend.
- The acquisition costs to gross commission ratio edged up slightly in Q3, driven by increased bonus provisions.
- The company anticipates a slight decrease in net interest income by approximately 3% in 2025 due to market expectations regarding the yield curve.
- The increase in provisions for risks and charges was noted, attributed to changes in interest rates impacting the discount rate.
Q & A Highlights
Q: What are your views on Banco BPM's takeover bid for Anima, and do you think it will impact the sector? Also, can you achieve EUR7.5 billion in inflows in 2025?
A: The Banco BPM-Anima deal is positive, as vertical integration benefits business performance without harming customers. We are already vertically integrated, so it has no impact on us. Regarding 2025 inflows, achieving EUR7.5 billion depends on market conditions. If markets are stable, we have the potential to reach that target.
Q: What impact will the prepayment of stamp duty have on your company?
A: The impact is mainly financial, as the duty would have been paid eventually. For the bank, the impact is negligible, but for the insurance branch, it is significant. The exact prepayment amount depends on the government's percentage requirement.
Q: Can you provide an update on performance fees and the possibility of a special dividend?
A: Currently, 33% of funds are above the high watermark, and 67% are below. We expect to pay more than EUR0.70 per share in dividends. A special dividend, similar to those in 2021 and 2019, is possible, depending on year-end data.
Q: What led to the change in NII guidance, and what are your expectations for deposit costs and margins in Spain?
A: The NII guidance was revised from 10% to 8% due to higher-than-expected inflows from a 5% promo, increasing funding costs. We expect deposit costs to decrease by 20 basis points on retail funding. Margins in Spain are similar to Italy, as most products are identical.
Q: Can you update us on bond funds in client portfolios due in 2025 and the shift to assets under management?
A: We have EUR1.5 billion in deposits maturing in 2025, which we aim to convert into managed assets. Additionally, EUR500 million in BTPs will mature by year-end, with a significant portion expected to shift to managed assets in 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
