Banca Mediolanum (BMED) Q2 2025 earnings summary

Executive summary

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

• Total assets under administration rose to €144.42B (+4% vs. year-end), with net inflows of €6.11B (+8% YoY) and managed asset inflows up 47% year-over-year.

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

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

• Commercial volumes rose to €8.08B, with loans granted up 48% to €1.86B, mainly from a 75% increase in mortgages.

Financial highlights

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

• Operating margin increased 1% to €570.6M; contribution margin up 2% to €1.02B.

• Banking service fees up 25% to €123M, mainly from certificate sales; gross commission income rose 11% to €1.1B.

• General insurance gross premiums up 23% to €114M.

• Loan loss provisions down 24% YoY due to improved risk models.

Outlook and guidance

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

• Cost-to-income ratio to remain below 40% in 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, supported by commercial initiatives and higher-yielding BTPs.