Banca Mediolanum (BMED) Q4 2024 earnings summary

Executive summary

• 2024 was a record-breaking year with net income up 36% to €1.12 billion, driven by strong managed asset inflows, double-digit growth in all key metrics, and bold strategic execution.

• Net inflows reached €10.44 billion (+46%), with managed assets up 17% to €138.5 billion.

• Customer base expanded 7% to nearly 1.92 million, supported by promotional initiatives and network expansion.

• Operating margin rose 11% to €1.09 billion, reflecting robust operational performance and a sustainable, fee-based business model.

• Extraordinary performance fees of €370 million and a €2,000 bonus to all employees and Family Bankers significantly boosted results.

Financial highlights

• Net commission income grew 13% to €1.17 billion; net interest income rose 8% to €811.1 million.

• Cost-to-income ratio improved to 39%, reflecting higher efficiency; cost of risk stable at 18 basis points.

• Loans granted totaled €3.1 billion, up 4%, with a net NPE ratio of 0.79%.

• General insurance gross premiums increased 11% to €206.1 million.

• Total assets under administration/management reached €138.5 billion, up 17% year-over-year.

Outlook and guidance

• 2025 guidance: net inflows into managed assets expected to match 2024's strong volumes, assuming normal market conditions.

• Net interest income projected to decrease by 5% due to yield curve trends.

• Cost-to-income ratio projected below 40%; cost of risk at 20 basis points.

• Base dividend to increase, subject to shareholder approval.

• CET1 ratio strengthening in anticipation of Basel III final terms in 2025.