Market environment

The current market environment is characterised by an adverse macroeconomic climate, stricter regulation and increasing technology investment requirements. This scenario will help the strongest banks to flourish, while less capitalised and efficient banks to pursue further restructuring. Numerous growth opportunities will arise for our Group.

Three trends are having an acute impact on our market, laying bare the need for additional competencies to successfully compete in the banking sector:

Adverse macroeconomic scenario, with weak GDP growth and low interest rates


Navigating this macroeconomic context requires:

  • strong positioning in core businesses/countries
  • an efficient cost structure
  • strong risk selection capability

Disruptive impact of new technologies, with rising customer awareness and changes in consumer behaviour

Recent technological developments require:

  • more digital distribution, with specialist sales force in investment banking and wealth management
  • greater cross-selling with value-added products for customers

Increasingly strict regulation, with higher capital requirements and increased consumer protection

This requires:

  • high levels of capital and buffers
  • containment and high coverage of non-performing exposures
  • no conduct risks
  • products that are priced fairly and transparently
  • the ability to retain talent with a sustainable business model



Numerous opportunities will emerge from the restructuring of less capitalised and efficient banks in the corporate, consumer lending and wealth management sectors. Mediobanca will be poised to seize these opportunities, thanks to solid earnings and assets, and the capital deriving from disposals of equity investments.

A number of economic and social factors will help to drive each business area’s growth:



  • Concentration and restructuring of certain sectors, including finance, infrastructure, energy, food and luxury
  • Rise in acquisitions of Italian and European businesses by foreign investors, especially from Asia
  • Disposal of family-owned mid-caps due to generational change
  • Disintermediation in the credit sector: capital markets gradually replacing loans
  • Rising value of structured and personalised products
  • Working capital financing
  • Developments in the management of NPLs


  • Expanding market, driven by changes in consumer behaviour and client composition
  • Progressive normalisation of the market (liquidity and cost of risk), wiping out opportunist traders
  • M&A opportunities (due to restructurings)


  • Increasing polarisation of wealth, partly due to demographic trends
  • High propensity to save among Italian households
  • Growing need to protect depositors
  • Increasing consolidation in the asset management sector, opening up opportunities for M&A (due to restructurings)

Last update: 04/09/2018