Banca Mediolanum (BMED) Q2 2025 earnings summary

Executive summary

• Net income for H1 2025 reached €477.3 million, up 6–6.1% year-over-year, driven by resilient core business, robust net inflows, and effective commercial initiatives.

• Assets under administration and management hit a record €144.4 billion, up 4–12% from year-end 2024, supported by strong net inflows and expanding customer base.

• Customer base neared 2 million, with Family Banker network expanding and promotional initiatives supporting growth.

• Credit book surpassed €18.1 billion, increasing 7% year-over-year, with a very low NPL ratio of 0.82%.

• Commercial volumes and managed asset inflows rose significantly, with net inflows up 7.8–8% and managed asset inflows up 47%.

Financial highlights

• Net commission income increased 10% to €644.4 million, while net interest income declined 12% to €366.8 million due to higher funding costs and rate shifts.

• Operating margin grew 1% to €570.6 million; contribution margin up 2% to €1,021.2 million.

• Gross commission income rose 11% to €1,104.7 million, with management fees up 10% and banking service fees up 25%.

• Loans granted surged 48% to €1.86 billion, driven by a 75% increase in mortgages.

• General insurance gross premiums increased 23% to €114 million.

Outlook and guidance

• Net interest income for 2025 expected to decrease by about 3% year-over-year, with stabilization anticipated in 2026.

• Managed asset inflows guidance raised to €8–8.5 billion for 2025.

• Cost/income ratio expected to remain below 40%; cost of risk guided at 20 basis points.

• Dividend for 2025 anticipated to increase from the €0.75 per share base paid in 2024, with potential for a €0.20 special dividend from Mediobanca stake sale.