Banca Mediolanum (BMED) Q2 2024 earnings summary

Executive summary

• Net income for H1 2024 reached EUR 449.9 million, up 24% year-over-year, driven by higher fees, client growth, asset expansion, and robust profitability.

• 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.

• Total assets under administration reached EUR 129.5 billion, up 15% year-over-year and 10% since year-end.

• Strategic deposit promotions and targeted marketing fueled both customer and asset growth.

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

Financial highlights

• Net commission income rose 15% to EUR 587.4 million, with management and investment management fees nearly EUR 743 million.

• Net interest income reached EUR 480 million, up 20% year-over-year, but down 10% sequentially due to higher funding costs from deposit promos.

• Operating margin hit a record EUR 566 million, up 22% year-over-year, with positive contributions from all business lines.

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

• Cost-income ratio improved to 39.2%.

Outlook and guidance

• 2024 net inflows into managed assets expected between EUR 6.5–7 billion, revised up from previous guidance.

• NII guidance for 2024 is around +10% year-over-year; expected to be flat in 2025.

• Cost-to-income ratio expected to remain around 40%.

• Dividend expected to increase year-over-year, with high capital ratios supporting payout.

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