The Mediobanca Group has demonstrated the solidity of its capital indicators over time, despite operating in an increasing strict regulatory framework, and without the need for any capital increases. We monitor our capital adequacy scrupulously to ensure that our equity is consistent at all times with our risk propensity and the regulatory requirements.
We have managed to maintain strong capital ratios without having to implement rights issues like the majority of other Italian banks (our last was in 1998).
Solid capital ratios without K increases (last one in 1998) and more than €2bn returned to shareholders*
*Cash dividends and buy back since 2009 (including FY2019 dividend)
The European regulations on banking supervision have been strengthened in recent years with the Capital Requirements Directive IV and Capital Requirements Regulation (CRD IV/CRR, otherwise known as Basel III). The new regulations set stricter capital requirements for banking activity in terms of the type and amount of the risks faced.
In 2014 the Capital Requirements Directive IV and Capital Requirements Regulation came into force. CRD IV/CRR, otherwise known as Basel III, was transposed into Italian law under Bank of Italy circular no. 285 released in December 2013.
The new regulations are intended to:
- Improve the banking sector’s capability to absorb the shocks deriving from economic and financial tensions
- Improve risk management and governance
- Strengthen banks’ transparency and reporting.
Basel III consists of three pillars:
- Pillar I: minimum capital requirements, risk coverage, leverage ratio. Entails stricter capital requirements in order to meet the risks typically faced in banking activity
- Pillar II: risk management and supervision
- Pillar III: market regulations and new public disclosure requirements.
Capital ratios at 30 June 2019:
- Common equity ratio (CET1 phase-in): 14.1%, in line with the figure recorded at 30 June 2018 (14.2%)
- Total capital ratio (TC phase-in): 17.5%, lower than the figure recorded at 30 June 2018 (18.1%)