Banca Mediolanum (BMED) Q4 2024 earnings summary

Executive summary

• 2024 was a record-breaking year with double-digit growth in all key financial metrics, including net income up 36% to €1.12 billion and operating margin up 11%.

• Total net inflows reached €10.44 billion (+46%), with managed assets net inflows at €7.64 billion (+91%), and assets under administration/management grew 17% to €138.5 billion.

• Customer base expanded 7% to nearly 1.92 million, supported by network expansion and promotional initiatives; Family Bankers network grew 3% to 6,415.

• Exceptional performance was driven by both net interest income (+8% to €811.1 million) and a 13% surge in net commission income to €1.17 billion.

• Board proposed a €1.00 per share dividend (including €0.25 special dividend), up 42% year-over-year, totaling €737 million.

Financial highlights

• Net profit: €1.12 billion (+36% YoY); Operating margin: €1.09 billion (+11%); Contribution margin: €1.98 billion (+12%).

• Net commission income: €1.17 billion (+13%); Net interest income: €811.1 million (+8%).

• Total net inflows: €10.44 billion (+46%); managed assets net inflows: €7.64 billion (+91%).

• Cost/income ratio improved to 39%; cost of risk at 18 basis points.

• Total assets reached €138.5 billion (+17% YoY); loans granted €3.1 billion (+4% YoY); credit book €17.62 billion (+3% YoY); net NPE ratio at 0.79%.

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

Outlook and guidance

• 2025 guidance: net inflows into managed assets expected to match 2024's strong volumes (~€7.5 billion), assuming normal market conditions.

• Net interest income projected to decrease by about 5% in 2025, based on current yield curve.

• Cost/income ratio targeted below 40%; cost of risk at ~20 basis points.

• Base dividend expected to increase, subject to shareholder approval.

• CET1 ratio strengthening in anticipation of Basel III implementation in 2025.