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Investing.com -- Italy’s Mediobanca (BIT:MDBI) has unveiled an updated three-year plan through 2028, projecting growth in earnings and shareholder returns.
The bank now targets a total shareholder remuneration of €4.9 billion over the next three years, including €4.5 billion in dividends and €0.4 billion in share buybacks.
The dividend per share is set to grow from €1.125 in full-year 2025 (FY25) to €1.7 in FY26 and further to €2.1 by FY28, representing a cumulative yield above 30%. The payout will be entirely in cash, based on recurring profit.
The updated “One Brand – One Culture” plan expects revenue to exceed €4.4 billion by FY28, up 20% from FY25, with net profit rising 45% to €1.9 billion and EPS reaching €2.4.
Ordinary net profit is seen at €1.7 billion, up 30% over the period.
Return on tangible equity (ROTE) is expected at 20% reported and 17% on an ordinary basis, up from 14% in FY25.
Mediobanca said the new figures "are based on a stand-alone basis and exclude the effects of the Banca Generali (BIT:GASI) acquisition, expected to close in October."
"A new combined plan will follow post-closing," it added.
Moreover, the bank pointed out that the projections exclude any potential impact from external or unforeseeable events, including the public exchange offer made by Monte dei Paschi di Siena (MPS).
It reiterated its stance that the offer “lacks any industrial logic, does not create value for Mediobanca shareholders and undermines the Bank’s strategy of profitable, sustainable growth.”
The expected growth will be broad-based, Mediobanca said. Wealth Management is projected to become the largest contributor to group revenue, supported by €10–11 billion in annual net new money and a cost/income ratio falling to 56% from 66%.
Corporate & Investment Banking revenue is forecast to reach €1 billion, with profitability (RORWA) improving to 2.2%. Consumer Finance will maintain a stable 2.9% RORWA, with revenue growing 5% to around €1.5 billion.
The bank also flagged a €500 million gross contribution from its real estate project in Monaco, expected to be recognised mainly in FY27 and FY28.
Capital ratios are projected to remain robust, with CET1 declining slightly to 14% due to planned distributions, while Tier 1 is set to rise to 15.5% after €750 million in AT1 issuance.
Total (EPA:TTEF) capital ratio is forecast at 17.5%.