Mediobanca reports profit rise as it fights Monte Paschi takeover bid

Published 31/07/2025, 11:04
Mediobanca reports profit rise as it fights Monte Paschi takeover bid

Investing.com -- Mediobanca (OTC:MDIBY) SpA on Thursday posted higher profit in its fiscal fourth quarter as the Italian lender continues efforts to fend off an unwanted takeover attempt by Banca Monte dei Paschi di Siena SpA.

The Milan-based bank reported net income rose 2.9% to €336.9 million ($385.2 million) compared to the same period last year, exceeding analyst expectations of €332.3 million, according to a Bloomberg survey.

The improved performance came as Mediobanca reduced its loan loss provisions to €47.2 million, down from €56.4 million a year earlier.

However, net commission income fell 9.4% to €253 million following what the bank described as "record" earnings from its advisory business in previous quarters.

Mediobanca’s shares were little changed following the results announcement, down just 0.05%.

Chief Executive Officer Alberto Nagel has pledged to increase shareholder returns to persuade investors to reject Monte Paschi’s unsolicited offer.

As part of his defense strategy, Nagel has proposed acquiring Assicurazioni Generali (BIT:GASI) SpA’s private banking arm, Banca Generali, which would boost fee income from wealth management services.

Mediobanca stated that authorization processes for the Banca Generali acquisition are expected to be completed by August 18, with a potential shareholder meeting three days later.

However, the bank noted it may make relevant decisions by August 6 "in view of how discussions with Assicurazioni Generali are proceeding."

"In the 2024/2025 financial year Mediobanca saw growth in all its divisions, strengthening the key initiatives of its ’One Brand-One Culture’ Plan," said CEO Alberto Nagel.

"The professionalism, independence and strength of the Mediobanca brand made it possible to achieve the objectives set, overcoming the challenges arising from a macroeconomic environment weakened by intensifying geopolitical and trade tensions."

The company confirmed it has sent proposals to Generali regarding continued agreements between the insurer and its private banking division that could include Mediobanca.

The bank announced a final dividend of €0.59 per share, bringing the total annual dividend to €1.15, representing a 70% payout ratio and a 7.4% increase from the previous year.

Mediobanca also approved a third share buyback tranche of €400 million, pending regulatory authorizations.

Mediobanca confirmed its guidance for fiscal year 2026, projecting further growth in revenue, with net profit expected to reach approximately €1.4 billion and continued 100% cash payout to shareholders.

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