Banca Mediolanum (BMED) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 rose 10% year-over-year to €243.3M, driven by strong business fundamentals, resilient commercial momentum, and robust performance fees despite a decline in net interest income.

• Total net inflows reached €3.77B (+23% YoY), with managed asset inflows up 71% to €2.01B; April 2025 set a new record for monthly managed asset inflows.

• Customer base expanded to over 1.96M (+2% YoY), supported by network growth and promotional initiatives.

• Loans granted in Q1 totaled €849M (+51% YoY), and general insurance gross premiums rose 26% YoY to €53.3M.

• Assets under administration reached €140.3B, up 1% from year-end and 11% YoY.

Financial highlights

• Net commission income grew 9% YoY to €316.2M, while net interest income fell 18% YoY to €180M due to rate environment and deposit promotions.

• Contribution margin was €495M; operating margin stable at €279M.

• Management and investment management fees increased 13% YoY to €410.5M.

• Market effects contributed €52M (+106% YoY); performance fees were €39M (+32% YoY).

• Profit before tax rose 11% to €330M; extraordinary items were limited (-€1.1M).

Outlook and guidance

• 2025 guidance: managed asset net inflows around €7.5B, NII to decrease ~5% YoY, cost/income ratio below 40%, cost of risk below 20bps, and base dividend to increase.

• NII expected to improve sequentially: -18% in Q1, -14% in H1, -8% in nine months, -5% for full year.

• Guidance assumes further deposit promotions in H2, already factored into NII outlook.

• Dividend for 2025 anticipated to rise above the 2024 base of €0.75.