Banca Mediolanum (BMED) Q4 2023 earnings summary

Executive summary

• FY 2023 net income reached €821.9m, up 62% YoY, while operating margin rose 49% to €987.7m.

• Total assets under administration and management rose 14% to €118.07bn, supported by positive market effects and net inflows of €7.13bn.

Financial highlights

• Net commission income was €1,029.5m, up 6% YoY; net interest income was €752.4m, up 85%, following 2023 rate increases.

• Contribution margin increased 30% to €1,766.5m; positive market effects were €89.7m versus -€1.1m in FY 2022.

• Profit before tax rose 66% to €1,067.2m; income tax was €245.3m and net income was €821.9m.

Outlook and guidance

• Progressive upward repricing of assets is expected to continue into 2024; customer funding costs will be managed flexibly as a hedge against rate declines.

• €1.84bn in money-market assets remains scheduled for transfer over the next 3–5 years through the Intelligent Investment Strategy.