Banca Mediolanum (BMED) Q3 2024 earnings summary

Executive summary

• Achieved record-breaking financial results for the first nine months of 2024, with net income up 18% year-over-year and double-digit growth across all key business lines.

• Net inflows reached €7.16 billion, up 28% year-over-year, with managed asset inflows nearly doubling to €5.44 billion (+92%).

• Total assets under management rose to €133 billion, a 13%–18% increase since the start of the year.

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

• The board approved an interim dividend of €0.37 per share, payable from November 20, 2024.

Financial highlights

• Net commission income rose 13% to over €873 million; recurring fees increased 14.5% to €1.13 billion.

• Net interest income (NII) was €613.4 million, up 13% year-over-year.

• Operating margin reached a record €848 million, up 16% year-over-year; contribution margin up 15% to €1,481.8 million.

• Net income for the period was €674.3 million, an 18% increase from the same period in 2023.

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

Outlook and guidance

• 2024 guidance for net inflows into managed assets raised to €7.5 billion, with similarly strong volumes anticipated for 2025.

• Net interest income expected to grow by 8% in 2024, with a projected 3% decrease in 2025 due to market yield curve expectations.

• Cost/income ratio for 2024 expected below 40%; dividend for 2024 anticipated to increase versus the previous year.

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

• 2024 is projected to be the best year yet, with robust inflows and asset growth supporting future recurring revenues.