Banca Mediolanum (BMED) Q3 2024 earnings summary

Executive summary

• Net income for the first nine months of 2024 reached €674.3 million, up 18% year-over-year, driven by higher net interest and commission income, and strong market performance.

• Total assets under administration and management rose to €133 billion, an 18% increase from September 2023, supported by strong net inflows and favorable market trends.

• Customer base grew 5% to over 1.89 million, with 149,000 new customers acquired and strong digital acquisition.

• Interim dividend of €0.37 per share approved, totaling approximately €273 million, payable November 20, 2024.

• Credit book expanded to €17.2 billion, up 1% from both September and December 2023.

Financial highlights

• Net commission income rose 13% to €873.6 million, with recurring fees up 14.5% to €1.13 billion, driven by strong financial markets and net inflows.

• Net interest income increased by 13% to €613.4 million, benefiting from higher interest rates and increased lending.

• Operating margin reached a record €847.9 million, up 16% year-over-year; contribution margin rose 15% to €1.48 billion.

• Total net inflows for the first nine months were €7.16 billion, up 28% year-over-year; managed assets net inflows surged 92% to €5.44 billion.

• Cost/income ratio improved to 38.3%; cost of risk at 21 basis points.

Outlook and guidance

• Managed asset net inflows expected to reach €7.5 billion for 2024; strong flows anticipated for 2025.

• Net interest income projected to grow 8% in 2024, with a 3% decrease expected in 2025 based on current rate curves.

• Cost/income ratio targeted below 40%; dividend expected to increase versus prior year, pending board approval.

• Performance fees accrued but not crystallized as of November 5th amounted to €230 million.

• Management expects a positive profit performance for full-year 2024, supported by stable global growth and continued organic expansion.