The Mediobanca Group aims to deliver growth in all segments in which it operates:
ESTABLISHMENT OF A DISTINCTIVE, PROFITABLE PLAYER
SCALE AND PROFITABILITY TO INCREASE SIGNIFICANTLY
SALES FORCE up 60% to 1,400 professionals
TOTAL FINANCIAL ASSETS (TFAs) up 8%¹ to €83bn
AUM/AUA up 11%¹ to €59bn
REVENUES up 8%¹ to €0.7bn
ROAC up from 16% to 25%
The Italian wealth management market offers the following opportunities: it is large, growing, most of the assets are still un-managed, with market shares increasingly available for specialist operators which can offer investment returns and client protection solutions despite the negative interest rates. In this scenario, Mediobanca’s ambition is to definitively establish itself as a distinctive player in Italy, standing out for the quality, innovativeness and value of its product and service offering for affluent and private clients and entrepreneurs.
Through substantial investments in distribution (where the work force will increase by 60% to over 1,400 professionals), technology and products, Wealth Management will further strengthen its positioning, revenues and profitability, matching CIB in terms of its contribution to the Group’s top line, and becoming the primary source of fee income. Profitability will grow significantly (ROAC up from 16% to 25%), maintaining high-quality and sustainable revenues while improving efficiency (cost/income ratio 70%).
The division will develop by: strengthening the product factories: repositioning the CheBanca! brand at the top end as the player of choice for the innovation and sustainability of its business model for affluent clientèle, both current and prospective; and definitively establishing MB Private Banking and Compagnie Monégasque de Banque as unique private/investment banks in Italy and Monaco, offering their HNWI/UHNWI clients innovative solutions in the private market/illiquid asset segment, developed in synergy with Corporate & Investment Banking.
1CAGR for 2019-23 four-year period
CORPORATE & INVESTMENT BANKING (CIB)
HIGH POTENTIAL OF CLIENT-DRIVEN BUSINESS MODEL
LEADER IN ITALY AND SOUTHERN EUROPE
INCREASINGLY INTEGRATED AND LESS CAPITAL INTENSIVE
REVENUES up 6%¹ to €0.8bn
ROAC up from 15% to 16%
The european market offers the following opportunities: strong domestic and cross-border M&A activity is being witnessed, involving medium-sized and large firms, driven by low organic growth, consolidation in industrial sectors, the low cost of borrowing, and intensive financial sponsor activity. In this scenario, advisory boutiques are continuing to improve their market share, on the back of their client-driven focus and flexibility of approach.
Mediobanca, by leveraging on its distinctive business model (leadership position in reference markets, high reputational standing, boutique-style organization, client-driven, ability to attract talent, strong integration with Private Banking, excellent asset quality), will further strengthen its position in Europe, in particular in M&A and Capital Markets services, with the objective of establishing itself further as the bank of choice for medium-sized/large companies in its reference countries (Italy, France and Spain).
By strengthening coverage and exploiting the apparent intra-Group potential (in particular with Private Banking and the newly-acquired Messier Maris), coupled with an increasingly efficient use of capital, CIB will see both revenues and profitability rise (ROAC 16%), and will remain the second major source of fee income at Group level.
LEADERSHIP IN ITALIAN MARKET CONFIRMED
BY POSITION, INNOVATION AND PROFITABILITY
CONSOLIDATION OF PROFITABLE GROWTH
REVENUES up 3%¹ to €1.1bn
ROAC from 30% to 28-30%
The Italian market offers the following opportunities: it is less mature in Italy than in other European economies, with market shares up for grabs as the traditional banking networks reduce their footprint in this area.
Compass, by leveraging on its distinctive features (leadership position in the market, integrated distribution, efficient platform, high scoring and pricing capabilities, solid asset quality), empowering distribution significantly, direct and digital, and developing innovative products (in e-commerce especially), will lay the foundations for the growth in volumes and revenues to continue, consolidating earnings (ROAC 28-30%) and profitability despite a scenario in which the cost of risk will reflect moderate, structural growth.
 CAGR for 2019-23 four-year period.
Virtually the whole of this division consists of the investment in Assicurazioni Generali (12.91%), which will continue to contribute positively to revenue and profit creation at Group level, adding stability and visibility. The investment’s main worth lies in its profitability and as a value option, guaranteeing the Mediobanca Group available resources that can be used in acquisitions in order to grow the company.