Mediobanca Profit Dented by Bailout Fund Payment
February 11 2016 - 2:10AM
Dow Jones News
MILAN—Italian bank Mediobanca Banca di Credito Finanziario SpA
said Thursday that its contribution to a bank bailout fund weighed
on second-quarter net profit, countering a revenue gain.
Net profit for the three months ended Dec. 31, fell to €76.8
million ($86.7 million) from €100.6 million a year earlier, while
revenue rose 4% to €509.2 million. Mediobanca's fiscal year ends
June 30.
As with several Mediobanca's Italian peers, net profit was hit
by contributions to the Bank Resolution Fund after the Italian
government decided to boost in November. The move followed its
approval of a rescue plan for four troubled small and midsize local
banks, applying newly enacted European rules to the resolution of
troubled lenders. Mediobanca's contribution was €57 million.
The bank launched a strategic plan in 2013 aimed at boosting its
profitability by selling its vast portfolio of stakes in
pre-eminent Italian companies, investing the proceeds in its
corporate and investment banking and retail and wealth management
units.
In the last quarter, the bank agreed the sale of a 0.22% stake
in Assicurazioni Generali SpA, which will be effective in May. It
still maintains a 13.2% stake in the Italian insurer.
The bank plans to make more acquisitions in the asset management
sector after it bought a 51% stake in London-based credit manager
Cairn Capital Group Ltd. from Royal Bank of Scotland and other
institutional investors last summer.
Its net interest income in the latest quarter rose 7% to €301.8
million, mainly driven by its consumer business.
Fees for the quarter rose 16% to €131.6 million, helped by
activity in its corporate and investment banking unit, mainly in
Italy.
"Although the weak markets mean some deals might be postponed,
the investment banking pipeline for the coming quarters continue to
look healthy," the bank said.
Trading income dropped to €19.6 million for the quarter,
compared with €27.2 million a year earlier.
Provisions for bad loans dropped by 40% to €109 million for the
last three months of last year, compared with the same period a
year earlier, as bad loans have declined over the last four
quarters.
Write to Giovanni Legorano at giovanni.legorano@wsj.com
(END) Dow Jones Newswires
February 11, 2016 02:55 ET (07:55 GMT)
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