📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Mediobanca bets on wealth management, consumer finance in new plan

Published 11/12/2019, 07:48 AM
Updated 11/12/2019, 07:51 AM
Mediobanca bets on wealth management, consumer finance in new plan
GASI
-
MDBI
-

MILANO (Reuters) - Italy's Mediobanca (MI:MDBI) said on Tuesday it would build on its wealth management and consumer credit businesses under a plan to 2023, defying criticism from its new top investor who wants it to scale up its investment banking operations.

The bank also pledged to return up to 2.5 billion euros ($2.8 billion) to shareholders in the next four years via dividends and shares buy-backs.

This compared with the 1.6 billion euros the bank returned to shareholders in the past four fiscal years.

Chief Executive Alberto Nagel has come under attack from 84-year-old Leonardo Del Vecchio, a billionaire eye-wear tycoon who has built up a stake of just under 10% in the venerable merchant bank in less than two months.

Del Vecchio has criticized Nagel for relying too heavily on the bank's consumer finance division and its most prized asset - insurer Generali (MI:GASI) - and said Mediobanca should return to its investment banking roots.

But the bank said it had achieved "excellent" results in the past few years and would build on its current strategy to drive revenue growth.

"Wealth management will deliver top-line growth of 8%, becoming the leading contributor to fee income at group level and so complementing Corporate & Investment Banking, where revenue growth is seen reaching 6%," the company said in a statement. "Consumer banking will continue in its role as driver of growth in net interest income at group level, accounting for some two thirds of the total."

($1 = 0.9074 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.