Banca Mediolanum (BMED) Q2 2025 earnings summary

Executive summary

• Net income for H1 2025 reached €477.3 million, up 6% year-over-year, driven by resilient core business, robust commercial activity, and strong operational performance.

• Assets under administration and management rose to €144.4 billion, up 4% from year-end and 12% from June 2024, supported by net inflows of €6.11 billion (+8% YoY) and managed asset inflows up 47%.

• Customer base expanded by 3% to nearly 2 million, supported by targeted promotions and growth in the Family Banker network.

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

• Commercial volumes rose to €8.08 billion, with loans granted up 48% to €1.86 billion and strong growth in managed assets.

Financial highlights

• Net commission income grew 10% YoY to €644.4 million, while net interest income declined 12% to €366.8 million due to lower rates and higher funding costs.

• Operating margin increased 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%.

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

• Loan loss provisions and cost of risk remained low, with cost of risk at 15bps.

Outlook and guidance

• 2025 guidance: managed asset inflows €8–8.5 billion (raised from €7.5B), net interest income expected to decrease by ~3% YoY.

• Cost-to-income ratio targeted below 40% for 2025 and 2026.

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

• NII for 2026 expected at least equal to 2025, with ongoing commercial initiatives and higher-yielding BTPs replacing maturing low-yield securities.

• Focus on organic growth, service quality, and process efficiency, with initiatives to strengthen the advisory network.