Banca Mediolanum (BMED) Q2 2024 earnings summary

Executive summary

• Net income for H1 2024 reached €449.9 million, up 24% year-over-year, driven by higher net interest and commission income, strong market performance, and record customer acquisition.

• Assets under administration and management rose to €129.5 billion, a 15% increase year-over-year and up 10% from year-end 2023, supported by robust net inflows and favorable markets.

• Customer acquisition set a new record with an 8% increase year-over-year, including 16,100 new digital customers and expansion of the Family Banker network.

• Maintained a simple, solid balance sheet and robust capital position, supporting growth and shareholder returns.

• Operating margin improved 22% to €566.1 million, with positive contributions across all business segments.

Financial highlights

• Net commission income rose 15% year-over-year to €587.4 million, driven by higher average AUM and recurring commissions.

• Net interest income increased 20% to €418 million, benefiting from higher rates and increased lending.

• Total net inflows grew 21% to €5.66 billion; managed asset inflows up 43% to €3.09 billion.

• Cost/income ratio improved to 39.2% (from 41.2% in H1 2023).

• Credit book stable at €16.95 billion.

Outlook and guidance

• Net inflows into managed assets expected between €6.5–7 billion for 2024, revised up from previous guidance.

• Net interest income for 2024 forecast to grow ~10% year-over-year, expected to be flat in 2025.

• Cost/income ratio and cost of risk expected to remain around 40% and ~20bps, respectively.

• Dividend expected to increase year-over-year, supported by high capital ratios.

• Continued focus on customer acquisition, digital expansion, and network development to drive medium-term AUM growth.