Yahoo Finance

• Net Income: EUR 674.3 million, up 18% year-over-year.

• Net Commission Income: EUR 874 million, a 13% increase.

• Recurring Fees: EUR 1.13 billion, up 14.5% from the previous year.

• Net Interest Income: Over EUR 630 million, up 13% year-over-year.

• Operating Margin: EUR 848 million, a 16% increase.

• Cost/Income Ratio: Reduced to 38.3%.

• Total Inflows: EUR 7.16 billion, a 28% increase.

• Managed Assets Inflows: EUR 5.44 billion, nearly double last year's figure.

• Total Assets: EUR 133 billion, a 13% increase since the start of the year.

• Credit Book: EUR 17.2 billion, up 1% since the beginning of the year.

• NPE Ratio: 0.8%.

• General Insurance Premiums: EUR 143 million, a 6% increase.

• New Bank Customers: 149,000, a 7% increase.

• Total Bank Customer Base: Over 1,800, a 5% increase.

• Bankers: 6,352, a 2% increase.

• CET1 Ratio: 23.4%.

• Leverage Ratio: 7.3%.

• Interim Dividend: EUR 0.37 per share.

• Spain Operating Margin: EUR 65.3 million, a 2% increase.

• Spain Net Income: EUR 54.4 million, a 10% increase.

• Spain Total Assets: EUR 12.2 billion, a 15% increase.

• Spain Managed Assets: EUR 8.9 billion, a 22% increase.

• Spain Net Inflows: EUR 918 million, a 46% increase.

• Spain Customer Base: 248,000, a 7% increase.

• Warning! GuruFocus has detected 2 Warning Sign with STU:ME1.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Banca Mediolanum (STU:ME1) reported a record-breaking net income of EUR 674.3 million for the first nine months of 2024, an 18% increase compared to the same period last year.

• Net commission income saw significant double-digit growth, up 13% to over EUR 874 million, driven by strong recurring fees.

• The company achieved a substantial increase in total inflows, reaching EUR 7.16 billion for the nine months, a 28% rise, with managed assets almost doubling last year's figure.

• Banca Mediolanum (STU:ME1) maintained a strong capital base with a CET1 ratio of 23.4%, providing a solid platform for future growth.

• The company announced a higher interim dividend of EUR 0.37 per share, reflecting confidence in its financial performance and future prospects.

Negative Points

• The cost/income ratio, although improved, still reflects increased bonus provisions linked to stronger inflows, indicating rising operational costs.

• There was a slight decrease in net interest income in Q3 compared to Q2, attributed to promotional initiatives and a turnaround in the credit book trend.

• The acquisition costs to gross commission ratio edged up slightly in Q3, driven by increased bonus provisions.

• The company anticipates a slight decrease in net interest income by approximately 3% in 2025 due to market expectations regarding the yield curve.

• The increase in provisions for risks and charges was noted, attributed to changes in interest rates impacting the discount rate.