Banca Mediolanum (BMED) Q3 2025 earnings summary

Executive summary

• Net income for the first nine months of 2025 rose 8% year-over-year to €726 million, driven by strong commission and fee growth, robust net inflows, and effective execution across business lines.

• Assets under management and administration reached €150.4 billion, up 8.6% from December 2024, with the customer base surpassing 2 million.

• Managed asset inflows surged 21% YoY, supporting recurring fees and customer retention, while total net inflows grew 14% to €8.16 billion.

• The Spanish business expanded in line with plans, with managed assets up 15–26% YoY and net income down 28% YoY due to investments and margin pressure.

• The group distributed an interim dividend of €0.60 per share, with a total payout of approximately €443.5 million.

Financial highlights

• Net commission income increased 11% YoY to €968.6 million, with management and investment management fees up 10% YoY to €1.24 billion.

• Net interest income declined 5% YoY to €581.7 million, but is expected to narrow the gap versus last year and align with full-year guidance.

• Operating margin grew 5% to €891.4 million; contribution margin up 5% to €1.56 billion.

• Cost/income ratio improved to 37.2%, trending below 40% for year-end.

• Total net inflows grew 14% to €8.16 billion, with managed asset inflows up 21% YoY to €6.58 billion.

Outlook and guidance

• Managed asset net inflows guidance for 2025 is €8–8.5 billion, with similar strength expected in 2026 under normal market conditions.

• Net interest income is projected to decline ~1% in 2025 but increase in 2026, potentially by double digits, assuming current yield curves.

• Cost-to-income ratio expected below 40% and cost of risk around 20bps.

• Dividend per share to increase, with the 2025 interim dividend at €0.60, including a €0.20 one-off from the Mediobanca stake sale.

• Guidance assumes stable market conditions for 2026.