Banca Mediolanum (BMED) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw strong momentum with net income up 13% year-over-year to €276.2 million, operating margin up 25% to €350.1 million, and contribution margin up 18% to €581.9 million, despite increased market volatility and a complex macro environment.

• Net commission income rose 12% to €353.5 million, net interest income surged 31% to €236.3 million, and total assets reached €154.37 billion, up 10% year-over-year.

• Customer engagement and network expansion remained high, with 60,000 new clients added and strong recruitment of financial advisors.

• Total net inflows were resilient at €3.34 billion, with managed asset inflows at €1.87 billion, despite market corrections.

• The business model's resilience was evident, with relationship-based advisory and digital investments supporting growth.

Financial highlights

• Net income: €276.2 million (+13% YoY); operating margin: €350.1 million (+25% YoY); contribution margin: €581.9 million (+18% YoY).

• Net commission income: €353.5 million (+12% YoY), with management fees up 9% and banking service fees up 66%.

• Net interest income: €236.3 million (+31% YoY), driven by lower funding costs and favorable funding mix.

• Non-recurring items fell 42% to €29 million due to lower performance fees and negative fair value impacts.

• Cost/income ratio improved to 34.8% from 37.6% in 2025.

Outlook and guidance

• Net inflows into managed assets expected to reach around €9 billion for 2026, assuming stable markets.

• Net interest income projected to rise by approximately 15% year-over-year.

• Targeting a cost/income ratio of around 38% and cost of risk near 20 basis points.

• Dividend per share expected to rise above the €0.80 base, subject to approval.

• For 2027, net interest income is expected to grow between 5% and 8%.