Q4 2024 Mediobanca Banca di Credito Finanziario SpA Earnings Call Transcript
Key Points
- Revenue growth of 9% to EUR3.6 billion, with all divisions contributing positively.
- Net profit increased by 24%, with EPS up 27% to EUR1.43 per share.
- CET1 ratio improved by 90 basis points QoQ to 16.1%, indicating strong capital adequacy.
- Significant growth in Wealth Management, with EUR4.5 billion of net new money collected.
- Successful launch of Mediobanca Premier, showing stronger-than-expected performance.
- Higher costs due to investments in digitalization, cybersecurity, and recruitment.
- Conservative EPS growth forecast of 6% to 8% for next year, lower than past performance.
- RWA reduction by 7% to EUR48 billion, which may limit future growth opportunities.
- Increased cost of deposits due to promotional campaigns, impacting NII growth.
- Potential risks from regulatory changes and the possibility of a bank tax impacting profitability.
Good morning to everybody for attending the call of our full year results. This is, as you know, our first year of the plan and the plan was branded. The one brand, one culture and this year led to a strong and capital-efficient growth across the board. We had growth in revenue up 9% to EUR3.6 billion with all division growing with the two positive element, the growth is where we want to grow. So in TFAs, which were up 13% to EUR100 billion and RWA overall. So the attention on capital allocation was higher and we managed to reduce RWA by 7% to EUR48 billion.
So both NII and fees grew two digit number and we had even stronger growth in insurance. GOP went up 12%, flat cost income and reduced core made a 24% increase in net profit and an even steeper increase in EPS, thanks also to the buyback, which was up 27% to EUR1.43 per share. Tangible book value, flat ROTE at 14%, an important increase in RoRWA up 30 basis points to 2.7%.
CET1 was very robust. We managed to have a 90 bps
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