Lagarde rates excite the accounts of Banca Mediolanum
All the details on Banca Mediolanum's quarterly report (minus sign for managed net inflows)
Good first half for Banca Mediolanum which meets analysts' expectations and closes the period with a profit up by more than 50% over the year. On a declining day for Piazza Affari, however, the institution led by Massimo Doris is also losing ground, which continues in negative territory by more than 3%.
NET INCOME AND INCOME INCREASING DURING THE HALF, LOANS FALLING
As we said, Mediolanum archives the first six months of 2023 with net profit growing by 51% to 363.25 million euros and total net inflows by 8% to 4.69 billion. On the other hand, there was a minus for net inflows under management (-31%) at 2.16 billion. For the credit institution, total assets under management amounted to 112.65 billion, +12% over the year and +9% since the end of 2022. As regards capital solidity, the Common Equity Tier 1 Ratio stands at 21. 5% and the operating margin at €464 million, up 47% on a year-on-year basis thanks to the “positive contribution of all business lines and strong operating leverage”.
The note accompanying the accounts highlights how the increase in net commissions (+2% over the year) to 509.6 million is due to the good performance of the financial markets, supported by the stability of net funding in asset management products. The interest margin also did well – at 347.3 million, +107% over the year – thanks to the increase in interest rates and the weight of the variable component in the composition of the loan portfolio and the securities held by the Treasury. Again from the note, it is known that loans to retail customers amounted to 16.95 billion (+3% respectively compared to 31 December 2022 and +10% compared to 30 June 2022).
In terms of net non-performing loans, the incidence on the group's total loans stops at 0.73%. Loans were down (-12%) "reflecting the slowdown in the real estate market and the tightening of interest rates". Finally, a plus sign for customers who reach 1,750,500, +4% compared to the end of last year.
DORIS: PROFIT GROWTH DEMONSTRATES THE STRENGTH OF OUR BUSINESS MODEL
Satisfied the managing director, Massimo Doris, according to whom the first half of the year "ended with an excellent profit and demonstrates the strength of our business model capable of generating value in every phase of the macroeconomic cycle". Doris highlights “the stability and sustainability of our balance sheet, with the extremely low cost of risk equal to 19 basis points and the CET1 Ratio at 21.5%”.
A level of solidity, adds the CEO, which represents "absolute excellence in Europe" and which "has also been confirmed by the recent stress tests conducted by the ECB " for which "in the event of a potentially highly negative prospective economic scenario, Banca Mediolanum ranks at the top of the European system: an attestation that is a source of great pride”.
WHAT ANALYSTS EXPECTED
The numbers presented today confirm the experts' expectations. For example, recalls Radiocor , Equita had forecast a net result of around 361 million and Banca Akros at 362 million. For the interest margin, on the other hand, the former expected 350 million and the latter 344 million. Both Equita and Banca Akros recommend buying Banca Mediolanum shares, indicating 10.5 euros and 11.5 euros as price targets. Finally, the analysts, considering the trend of the interest margin and the quality of the assets, hypothesize that the institute will close the current year with its best net profit in history at 737 million.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/i-tassi-alla-lagarde-eccitano-i-conti-di-banca-mediolanum/ on Tue, 01 Aug 2023 13:25:57 +0000.