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Banca Mediolanum’s earnings call for the second quarter of 2025 highlighted a solid financial performance with net income reaching €477.3 million, marking a 6% year-over-year increase. The company’s stock saw a modest rise of 0.58%, closing at €17.27. The financial results underscored the bank’s robust operational metrics and strategic initiatives, despite a dip in net interest income.
Key Takeaways
- Net income grew by 6% year-over-year to €477.3 million.
- Managed asset inflows surged by 47% year-over-year.
- Net interest income decreased by 12% year-over-year.
- Cost-to-income ratio remained stable at 39.1%.
Company Performance
Banca Mediolanum reported a strong performance in Q2 2025, driven by growth in net income and managed asset inflows. The bank’s strategic focus on expanding its product offerings and advisory services has paid off, positioning it well in a competitive market. Despite a decline in net interest income, the bank maintained a stable cost-to-income ratio, reflecting efficient cost management.
Financial Highlights
- Net income: €477.3 million (+6% YoY)
- Contribution margin: Over €1.02 billion (+2.1 percentage points)
- Operating margin: Almost €571 million
- Net interest income: €367 million (-12% YoY)
- Net commission income: €644 million (+10% YoY)
- Cost-to-income ratio: 39.1% (stable)
Outlook & Guidance
The bank has raised its guidance for managed asset inflows to €8-8.5 billion, reflecting confidence in its growth strategy. However, net interest income is expected to decrease by 3% in 2025, with 2026 levels anticipated to remain flat. The cost-to-income ratio is projected to stay below 40%, and a base dividend increase is expected.
Executive Commentary
CEO Massimo Doris emphasized the bank’s integrated model as a key driver of success, stating, "Our strength lies in offering banking, investment, insurance, and protection solutions through an integrated model." He also expressed confidence in the bank’s strategic direction, saying, "We know where we’re going, and we know how to get there."
Risks and Challenges
- Declining net interest income could pressure profitability if the trend continues.
- Market volatility and a weakening dollar may impact asset exposure.
- Regulatory changes could affect advisory services and investment products.
- Inflation pressures, although easing, could still influence operational costs.
Banca Mediolanum’s Q2 2025 results demonstrate its ability to navigate a challenging economic environment while pursuing growth through innovation and strategic initiatives. The bank’s focus on expanding its product offerings and maintaining a strong capital position suggests a positive outlook despite potential challenges.
Full transcript - Banca Mediolanum SpA (BMED) Q2 2025:
Conference Operator: Good day, and thank you for standing by. Welcome to Banca Mediolanum H1 2025 Results Conference Call. At this time, all participants are in listen-only mode. After the speaker presentation, there will be a question and answer session. To enter the queue for questions, please press star 1, 1 at any time. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1, 1 again. Please be advised that today’s conference is being recorded. I would now like to hand the conference over to Alessandra Lanzone, Head of Investor Relations. Please go ahead, madam.
Alessandra Lanzone, Head of Investor Relations, Banca Mediolanum: Good afternoon, and thank you for joining us today. We’ve just closed a solid second quarter, which led to a very strong first half performance, and we’re looking forward to giving you a closer look at the numbers, what’s behind them, and share some thoughts on where we’re headed next. Before we start, just a quick note: you’re welcome to ask your questions in the language of the line you’re calling from. All answers will be in Italian with a simultaneous English translation. With that, I’m pleased to hand things over to our CEO, Massimo Doris, who’s joined by our CFO, Angelo Lietti. Massimo, it’s over to you. Thank you.
Massimo Doris, CEO, Banca Mediolanum: Thank you, Alessandra. Good afternoon, everyone. Thanks for tuning in. We’ve reached the halfway point of the year in a market that continues to shift. Inflation pressures have eased, and the interest rate environment has become more concrete and less uncertain. Meanwhile, the dollar has weakened, weighing on the FX exposure of our assets. Equity markets saw mixed performance in Q2, while bond yields remained volatile amid shifting central bank signals. While tensions around U.S.-European tariffs have just cooled, the broader geopolitical environment remains complex, calling for agility and readiness to respond. For us, staying agile is not a reaction; it’s a mindset. In a landscape where all players face the same volatility, what makes the difference is the ability to combine agility with strategic clarity. Our performance shows the value of staying focused and consistent.
In the first half, we’ve delivered what we had planned for, and in some areas, even more than we expected. We’ve combined commercial energy with financial discipline, and the results speak for themselves. Two aspects stood out: flows remain strong, thanks to our family bankers, who continue to deliver, not just in volumes, but also in the quality of our customer relationship. Recurring revenues held up well, and activity across the board remained resilient, even as interest income softened in a less supportive backdrop as expected. That pressure was nicely offset by solid fee income and strong engagement in all business lines. Let’s walk through the half-year in detail. First up, the economic and financial highlights on slide number four.
Let’s start with the headline number: net income came in at €477.3 million, 6% ahead of H1 last year, mainly due to a greater impact from market effects in the first quarter. What I’d really like to point out is the resilience of our core business. Both the contribution margin and the operating margin, the two metrics we use to track profitability, came in strong, reaching over €1.02 billion and almost €571 million respectively, a year-on-year uplift of 2.1 percentage points. This was a strong performance, delivered despite a 12% drop in net interest income, down €51 million to €367 million, as we’ve faced both a sharp shift in interest rates compared to last year and the higher funding costs from our time deposit campaigns, which were highly effective commercially.
As already mentioned at Q1, net interest income is expected to progressively converge towards our full-year guidance for 2025, which we have now revised to around -3% versus 2024. To briefly explain the underlying assumptions, we now expect the three-month year-over to drop slightly to slightly below 2% by year-end, settling at 1.9%, with a full-year average of 2.14% for 2025. That compares to last year’s average of 3.64%. The impact, however, should be partially mitigated by a more favorable volume mix. We are factoring in a higher share of non-interest-bearing current account deposits, which may help smooth the decline, and the significantly lower amount of collateral required for carry trade. That said, while the impact of our commercial initiatives temporarily affects net interest income, it is instrumental in driving the growth on net commission income, which increased by 10%, reaching some €644 million, fully offsetting the drop in NAI.
As usual, recurring fees played the leading role here. In fact, combined management and investment management fees rose to nearly €812 million, making a solid 9% gain. The main driver of this growth was the impressive net inflows into managed assets, which pushed average assets €13 billion higher than H1 last year, despite the ups and downs in the markets and the weakening U.S. dollar penalizing us in Q2. While the volume effect drove a substantial increase in recurring fees, a renewed interest in equity-oriented investments through Intelligent Investment Strategy, by design, starting in lower fee money market funds, brought the average fee down from 215 to 203 basis points year-on-year. In fact, as you can see in slide number six, money market funds within the Intelligent Investment Strategy grew by nearly €1.2 billion since year-end, reaching €4 billion at the end of June, a remarkable 41% increase.
Let’s go back to slide four and take a look at the key ratios that shaped the first half. The cost-to-income ratio stood at 39.1%, holding steady with last year and modestly ahead of our guidance. This confirms the effectiveness of our disciplined cost management and our ability to sustain high operating efficiency over time. Acquisition costs, as a percentage of gross commission income, also remained broadly stable quarter over quarter, ending the first half at 34.3%. Finally, the cost of risk, annualized on a 12-month rolling basis, stood at 15 basis points due to the increase towards year-end to our guidance of around 20 basis points. Slide eight offers a closer look at the other items in the income statement, and a few of them are worth highlighting.
The standout in the first half was banking service fees, climbing by 25% to nearly €123 million, fueled by a strong pickup in certificate sales in Q2. Net income on other investments includes a higher dividend contribution from Mediobanca compared to H1 last year, €16 million, to be precise. Following the sale of our stake, this is the last time Mediobanca dividends contribute to the P&L. Loan loss provisions are 24% lower year-on-year, especially thanks to the adoption of our internal risk model, which captures the lower risk in our portfolio much more effectively than the standardized model. The 28% increase in provisions for risks and charges reflects the same dynamics already seen in Q1. On the risk provision side, last year’s favorable resolution of certain legal cases had allowed for partial releases, a one-off effect not repeated this year.
As for net indemnities, the increase continues to be volume-driven rather than rate-driven. Higher commissions naturally translate into higher provisioning needs. Fair value showed a significant improvement. The stake in Nexi was fully dismantled in Q2, leading to a substantial uplift from the negative mark recorded in the same period last year. We also saw a positive contribution from treasury trading activity. Let’s turn to slide five for a brief look at the business results. In the first half, figures that many of you are already familiar with. Commercial activity has been intense, boosting total net inflows up by 8%, reaching €6.11 billion, driven in large part by the success of our 4% time deposit campaign. Importantly, this growth came from both new and existing customers, confirming once again the strength of our marketing and acquisition efforts.
The clear highlight of the half-year was the strong momentum in managed asset flows, which climbed to €4.54 billion, up 47% year-on-year. As shown on slide 33, over the first half of 2025, once again, we ranked first in the accelerated tables for net inflows into managed assets, a leadership position we’ve held on to consistently for the past four years, even under the revised classification, which also accounts for. Administered assets with advisory fees or fee-only setups, known as advanced advisory and less remunerative than managed assets, we stand in second position, only marginally behind Fideoram. At our last update, we confirmed a target for managed asset inflows for 2025 of around €7.5 billion, in line with last year and based on the assumption of normal market conditions. The strong pace recorded so far gives us the visibility to raise the guidance to between €8 and €8.5 billion.
Let’s refer back to slide number five. Exceptional inflows into managed assets, together with solid deposit growth, pushed total assets to €144.42 billion at the end of June, up 4% versus year-end. Loans granted came in at €1.86 billion, marking a 48% increase year-on-year. Consequently, the credit book reached €18.14 billion at the H1 point, with asset quality remaining solid, as shown by an NPE ratio of 0.82%. Growth was also solid in general insurance gross premiums, up 23% to €114 million, driven by standalone policies, but even more notable by a renewed uptake in loan protection policies in line with mortgage expansion. Turning to slide six, our customer base continues to expand at a solid pace, further supported by our targeted promotional initiatives. We welcomed over 106,000 new customers, bringing the total to nearly 1.98 million customers, a 3% increase since the start of the year.
Our Family Banker network is growing too, with group headcount reaching 6,604, up 3% as well. This expanding footprint reinforces our reach and the depth of our customer relationships. As mentioned earlier, with interest rates trending lower, we are proactively helping customers shift their focus toward long-term equity solutions, supported by our automated services. Among them, Intelligent Investment Strategy, in particular, is gaining strong traction. Assets currently allocated to money market funds, which are scheduled to gradually shift into equity over a 3.5-year horizon on average, have now surpassed €4 billion. Additionally, an additional €3 billion is programmed to shift into mutual funds in the next 12 months, as shown on the last two lines of slide six. This includes just under €1 billion from double-chance deposits and more than €2 billion from installment plan flows, which continue to build steadily.
This model continues to prove its strength, combining customer convenience with long-term consistency for the bank. It ensures recurring fees and reinforces the sustainability of our revenue stream. Let’s move on to another key pillar of our model, balance sheet ratios, as shown on slide seven. There is not much suspense here, and that is exactly the point. Our capital strength remains a clear differentiator and one of the main reasons why so many of you consistently express long-term confidence in Banca Mediolanum. In the first half, all key capital indicators confirmed the solidity of our balance sheet and are well above regulatory requirements and market averages. Our CET1 ratio stayed strategically high at 22.4%.
Please note that the positive impact from the sale of Mediobanca’s stake, estimated to be one percentage point, is not yet included in this CET1 figure, as the transaction was formally completed on July 3, 2023. The leverage ratio increased further to 8.4%, giving us even more room to support future growth. In short, capital remains one of our most notable and strategic advantages, and one we intend to keep that way. Let’s take a moment to focus on our family banker network in Italy, which grew to 4,975 financial advisors in the first half of the year. Since January, 233 new colleagues have joined, drawn by Banca Mediolanum’s distinctive values and choosing to embrace a business model deeply rooted in customer centricity and uncompromising attention to detail.
Many bring along with them experience as branch managers or customer relationship managers, and quite a few have already excelled in customer engagement. Among them, 30% are women and 57% are under 30. These figures clearly reflect the impact of the NEXT project, the strategic project we launched in 2021 to empower young talent and ensure generational continuity, shaping the network of the future. As you know, our banker consultants, as we call them, are bright young graduates who start their career with a six-month executive master at our corporate university, culminating in their FA certification exam. From there, they move straight into hands-on experience alongside a Senior Private Banker or Wealth Advisor, with their compensation covered by the senior professional, ensuring alignment and accountability from day one. We believe strongly in this initiative.
It offered personal and professional growth while making a real difference in people’s lives by helping them make responsible choices for their future. Starting out as a banker consultant is more than just a first step. It’s a meaningful, structured way to grow into the role with a clear purpose and impact. The numbers in slide 36 reflect the success of the project. As of today, 527 banker consultants are already active in the network, with an additional 152 currently in training. This setup is already delivering remarkable results. On average, the 230 Senior Bankers supported by a banker consultant for at least 12 months have increased their productivity by 40% in terms of net inflows into managed assets and loans, by over 50% in protection policies, and have acquired 75% more new customers, all these percentages compared to their peers.
Now, let’s turn our attention to Spain by commenting on slide number 31. The strong commercial effort behind the impressive increase in Spain business volumes naturally led to higher acquisition costs. While this did affect the P&L, it was a conscious and strategic investment to support long-term value creation. It’s also worth noting that net interest income dropped by 26% compared to the same period last year. Given the significantly smaller scale of our operation in Spain, the increase in net commission income there was not sufficient to offset the gap. Operating margin reached €27.8 million, reflecting a 36% decrease compared to H1 last year, mainly due to the factors we just mentioned. Net income stood at €24.5 million, 32% lower year-on-year. Total assets grew by 9% since the start of the year, reaching €14.2 billion, with managed assets rising 7% to nearly €10.3 billion over the same period.
Net inflows stood out once again, totaling €1.25 billion, 90% higher than H1 last year. Managed asset inflows contributed €877 million, a remarkable 45% increase. On the lending side, the credit book expanded further, reaching €1.62 billion, an 8% increase versus year-end. Meanwhile, the number of Family Bankers inched up by 1% to a total of 1,629. Finally, our customer base in Spain has grown to 270,750, marking a strong 6% increase since the beginning of the year. In closing, let me first recap our guidance for 2025. Net inflows into managed assets at around €8.5 billion, assuming normal market conditions. Net income to decrease by some 3% compared to 2024, based on net interest income. Net interest income to decrease by some 3% compared to 2024, based on current interest rate curves. Cost-to-income ratio below 40%.
Cost of risk around 20 basis points, base dividend of $0.75 per share to increase compared to the previous year, of course, subject to shareholders’ meeting approval. Looking ahead, we are not just building a strong first half; we are heading into the second with real momentum and clear direction. All signs point to a recurring business performance that remains fully in line with last year’s record levels. It reflects the consistency of our model, the clarity of our strategy, and our proven ability to deliver, even in complex market conditions. We know where we’re going, and we know how to get there, but precisely how? Let me try to answer, because this is the question we are asked most often. What truly sets you apart and drives your success?
First, our strength lies in offering banking, investment, insurance, and protection solutions through an integrated, current model, one that allows us to accompany customers across all their financial needs, not just wealth management or trading activities. Two, those who know us know our family bankers are more than just financial advisors. They are long-term, trusted partners for our customers. This relationship model continues to be a cornerstone of our achievements, especially in times of uncertainty. Three, our ability to grow across different customer segments, not just the top tier, gives us scale and diversification, making our growth more balanced and resilient. Four, our net inflows aren’t just strong; they are high quality, fueled by long-term investment strategies rather than short-term tactical or speculative flows. Five, our capital generation is entirely organic and deeply embedded in our model, giving us flexibility, visibility, and freedom of action.
In a nutshell, what continues to make the difference after more than 40 years is the continuity of our vision, the commitment of our people, and the trust we build with customers every day. That’s exactly what we’ll continue to deliver. Thank you all for your attention and continued support. Alessandra, over to you for the Q&A. Thank you. We can start the Q&A session now. Thank you. We can now open the Q&A session. To ask a question, press star 11 on your keypad and wait for your name to be announced. To cancel your question, press again star 11. We’ll open the Italian line first. The first question comes from Giovanni Rosoli, Deutsche Bank. Please go ahead. Good afternoon, everyone. I have three questions. The first one is the guidance on NII in 2025.
There is an improvement from minus 5% to minus 3%, and you said that this improvement is due to a larger number of non-interest-bearing deposit accounts. I was wondering whether, before the end of the year, you’re going to launch other campaigns or maybe review the guidance if your marketing strategy does not include these strategies in the second half of the year. Could you also provide guidance concerning NII for 2026? Second question. Banking service fees in the second quarter have strongly accelerated compared to the first quarter. I guess that part of this acceleration is due to your commercial activity. Is there some kind of one-off component that has slammed on the accelerator of banking service fees? Performance fees, excellent result. You specified that most of these fees were generated by accounts domiciled in Italy in the first half.
You have reported €9 million in the second quarter, and I wanted to know whether this amount was generated by colleagues based in Italy as well. If this is the case, congrats, because it is really a great result. Let me start with NII. The minus 3%, so the improvement of our guidance, already incorporates a further initiative to be launched in September. It’s a time deposit initiative that will be launched in September. We are not going to revise our guidance downwards. If anything, we’ll revise it upward. NII, the guidance for 2026, we expect a level at least equal to 2025. We do not expect a further decline of net interest income in 2026 compared to 2025. At least we expect the level to be just the same.
We expect we will continue launching initiatives, and when these deposits, since deposits are constantly shifted into managed assets, we’ll continue launching these initiatives. We expect an NII level in 2026 at least equal to 2025, with a number of commercial initiatives because they are really performing well. We are really receiving significant funds in our banking deposits, and also the part of loans is growing. Volume overall is an offsetting element. Plus, all of those BTPs, which we bought when interest rates were extremely low, they were paying 0.3%, 0.4% in yield, will be replaced by BTPs that, despite the decrease in interest rates, will pay much higher yields compared to those we had in our portfolios. As far as the banking service fees, the biggest chunk there is due to the sale of certificates.
In this first half of the year, in addition to certificates that simply expired or reached maturity, which was, of course, already expected, many certificates, thanks to a positive market performance, had an auto-callable option. If certain levels had been reached by the underlying indices, these certificates would have paid a very attractive coupon to investors while returning and repaying capital. Our family bankers had new certificates subscribed by clients. That was not expected, you know, because those certificates were kind of matured ahead of time. The expiry date was kind of moved up because they performed very well. We could sell more certificates than expected. Performance fee in Q2 almost all generated by Italian funds, including the €9 million generated in Q2. Thank you, Giovanni. Next question, please. Next question comes from Gianluca Ferrari, Mediobanca. Please go ahead. Thank you. Good afternoon. Back once again on certificates.
I would like to know what was the outstanding amount issued in Q2. Can you confirm that the average duration is three years and 3% upfront, or whether we should revise these data? Second question. Margins of managed assets. It’s very difficult to calculate the amount for the quarter, but there seems that there has been a slight change in the quarter’s data. Is this due to the fact that there was a strong equity inflow during the previous quarters, or is there any other reason why these margins have slightly dipped? Last question. I would like to know what are the theoretical performance fees that have not been cashed in yet but are to be realized. Let’s start with certificates. In Q2, we issued €490 million worth of certificates compared to €192 million in the same quarter of 2024. Average duration is five years, roughly.
Generally, if we calculate the term amount to 1.1, 1.2 per year. Of course, considering how certificates work, they are all upfront, but if you want, this might be the only calculation we can make. Average managed asset fees went from 215 to 203. This is due to a combination of different factors. First of all, this is partly due to the fact that in the last two years, roughly, there was a strong flow towards the bond market, where the average commission, of course, is lower. The main impact came from two other factors. The main one is the strong success of the Intelligent Investment Strategy. We reached €4 billion plus €1.4 billion over the first half. I’m sorry, €1.2 billion over the first six months of the year. The management fees generated by these funds is 20 basis points.
Having had a €1.2 billion increase in the managed assets that generate a 20 basis point margin is quite outstanding. The second factor is market performance in April, i.e., the beginning of the second quarter. It was a V-shaped movement, and you know that we have a strong equity exposure. Over that month, there was this fall in assets, and of course, this had an impact on the average fee amount. I’m sorry. There was something about €30 million, but we could not hear what this was about. Let’s move on to the next question. Enrico Bolzoni, JP Morgan. Please go ahead. Good afternoon, and thank you. My first question concerns fee-only and fee-on-top advisory services that you’re going to launch next year.
I’d like to know whether the decision to launch these services was in response to your customers’ request, or you think that customers are expecting these kinds of services, or you are just foresighted and think that the demand for these services will arise in the future. I also would like to know whether, as far as passive products, ETFs, etc., you are maybe planning to launch some kind of these products so that you can retain margins in-house on these passive instruments as well. Considering also the confusing Italian banking landscape, I was wondering whether you intend to grow the network of your salespeople by raking up consultants from other banks that could be interested in selling Mediolanum products.
Advanced advisory, fee-only, we intend to launch a service not in response to our customers’ requests, but considering the regulation, the regulatory framework, the focus the regulator is placing on these types of products. Regulators are paying a lot of attention to the cost of the product, but they forget completely all there is behind the product, meaning that if I buy a fund on my own, a fund that bears a 2% commission, that’s one thing. If I’m given advice, I’ll have to pay for that advice, a person would come to my place and explain to me what to do, how to invest, I would compensate that person via that 2%. The market is saying, "You know what?
I’m going to give you a product whose cost is €0.80 or €0.70." This is an excellent thing because you will no longer have to pay a 2% point commission, but you will have to pay for advisory, 1.3 business points. The amount, the total amount, is equal in terms of commission, but the regulator is happy because apparently you pay less in advice, in terms of advice, and you pay the product less. We are moving towards fee-only and fee-on-top products because we think that these are going to, on the one hand, erode product margins, but margins in absolute terms will not decline because they will be offset by another type of commission, another type of fee. What regulators are missing out on is that they are just focusing on product costs and don’t pay attention to accompanying services that are offered to clients.
As I was saying, the cost of a product is the revenue that the bank receives. If these costs decline too much, even the banks’ or companies’ revenues will be reduced. How can they cope? They will have to give customers fewer services. I don’t believe that this is a good idea. I believe that we’ll all move more and more towards the fee-on-top solution because fee-only is just for very wealthy customers. We’ll move towards products that cost a little less, but margins will not be dramatically eroded. Speaking of passive products and ETFs, I have to say that thanks to this situation, we will see more and more of them. Currently, within our MyStyle, which is our wrapper for customers that are rather wealthy and have a few millions in AUM, they can just invest in ETFs if they so wish.
This is something that we have already included in our offering. In the future, we’ll be offering fee-only and fee-on-top products. Current clients investing in ETFs, in BTPs via our online trading system, will receive no advice whatsoever. They will just carry out the execution by themselves, and we will receive just the transaction fee. In the future, we may also sell ETFs this way and thus generate a recurring advisory fee, something that currently is non-existing.
As far as the very confused Italian banking industry, all the potential M&As that are much talked about, I think that some employees working for traditional bank branches will probably take the leap forward, and they will probably go and work for Banca Mediolanum, but for our competitors as well, Fideuram, Fineco, and so on and so forth, because these reshufflings may help the company improve their income statement because they become more efficient. That can also be a benefit for the company overall, for employees, and for clients. We will derive partly a partial advantage from these changes. Thank you, Enrico. Next question. The next question comes from Luigi Debelli’s Equitas team. Please go ahead, sir. Good afternoon. I have two very quick questions. First has to do with inflows and very strong dynamic.
I would like to understand what are the dynamics and what are the products that really see the greatest interest from clients between equities and bonds, and what is the evolution that was going to come from this in terms of management fees, considering also the evolution you have depicted before. Thank you. Inflows are really showing a big skew on bonds. The equity part exposure is really through the IAS system, the Intelligent Investment Strategy, as we saw with money market funds that are tied to this service. Let’s not forget that in any case, markets at our historical highs, and having a client investing on equity markets a lot of money is not prudent. We either do it through the IAS service or through the installment plans that exceeded €2 billion.
Mainly, the equity exposure is obtained through these two channels and also through Double Chance because the very fact that the deposit portion is stable means that we have a constant inflow of new clients. Otherwise, since we have switches once or twice a month, if in between we had no new clients subscribing in Double Chance, we would see a decline, whereas Double Chance shows a stable amount. Thank you. Thank you, Luigi. Next question. Next question. Marco Nicolai, Jefferies, please go ahead. I have three questions, two on NII. You said you have BTPs in your portfolios that were paying lower yields and that you will roll over and renew by buying higher-yielding BTPs. Could you please remind us what the actual yield of these expiring securities is? Also, I’d like to know about loans. Have you appreciated any increase in terms of your loan book?
Because your peers seem to be indicating a significant or a good growth in loans in Italy. As far as Mediobanca stake, what will you be doing with this additional 100 basis points? Will you retain that from the sale, or will you reinvest, or somehow? As far as July, I’d like to know whether you can give us some indication as to new flows. As far as maturities and interest margin, we have €2 billion that are expected to expire in 2024 and €2.4 billion. Sorry, I got the dates wrong, says Massimo. $2 billion that will mature in 2025 and $3.5 billion or a little less in 2026. Average yield, please consider we have both CCTs that pay higher yields and BTPs that pay lower yields. The average in 2026, the average yield will be 2.86%.
At year-end, BTP worth about $2 billion will mature, and the yield is 0.55%. You understand we can do much better. What was the other question about loans? Lower interest rates have revitalized the demand for mortgages and loans in general. If you look at loans issued by Banca Mediolanum, excluding PREXTA, most of those loans, in addition to 90%, are collateralized loans, which means that our customers take out a loan even though they have liquidity available, but they don’t want to unwind their investments. They want to keep the money there invested, and they apply for a loan. In 2023, in 2024, clients would do the opposite. They had money, and they did not apply for loans. Now rates are lower, and they tend to apply for loans. The same applies to mortgages. Some people decided to postpone the purchase of a home because rates were too high.
Now lower rates, once again, are encouraging people to buy their homes and thus take out a mortgage. We expect significant growth there too, also because our customer base is really increasing and becoming broader and broader. The fact of the sale of the Mediobanca stake with 1 percentage point growth in our CET1, what do we want to do with it? We have three options. We just keep a higher CET1 ratio. Option two, we can distribute this additional percentage point, which would be worth about $0.20 per share. In addition to the base dividend, if we go for the second option, we may decide to pay out a $0.20 per share special dividend. Third option is plowing that capital back into our business in some acquisition, but so far, I wouldn’t know which one. Out of the three options, the most probable one is the second.
July flows, it’s another very, very good month, very, very good month. I really have to say the trend is carrying on, and the month was good, and the flows were excellent. Thank you, Marco. Next question. There are no other questions on the tenant channel. I will hand it over to the operator on the English channel. Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To whisper your question, please press star 1 and 1 again. We will now take the first question. From the line of Hubert Lamb from Bank of America. Please go ahead. Hi, good afternoon. I’ve got two questions. Firstly, on management fees, investment fees, and investment management fees.
Management fees fell by 2% quarter on quarter, which you explained because of mix shift, but the investment management fees fell more by 5% quarter on quarter. Just wondering why there’s a difference between the two of them because I think that both of them should have similar trends. Second question is on your cost-to-income ratio. For this year, you’re still guiding for around 40%, but how should we think about next year when you lose the Mediobanca dividend? Can you still maintain a cost-to-income of 40% or lower? Thank you. Yes, I’ll start with the second question on the cost-to-income ratio. We expect our cost-to-income ratio will remain below 40% next year as well. As to the different behavior of management fees and investment management fees, let me remind you a couple of things.
First of all, investment management fees are generated only by Irish funds, and not all of them. This is why they behave differently compared to management fees. As I am being told, especially investment management fees are on Irish equity funds and on part of the high-yield bond funds mainly. As to money market funds and short-term bond funds, there are no investment management fees, and also Italian funds feature no investment management fees. Thank you, Hubert. Next question, please. Thank you. There are no further questions on the English line. I would like to hand back over to the Italian line. Italian funds have reported significant sales, and that has an impact on management fees, but not on investment management fees because those flows were directed to Italy. There are no questions from the Italian line, so I hand it over to Ms. Lanzone to close the conference.
Thank you. I think we can conclude the conference call. Enjoy your vacation and see you in November for the third quarter results. Good afternoon, everyone, and have a nice rest of your day. This is the end of the conference. Thank you for joining us. You can now disconnect. Thank you.
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