MILAN (Reuters) -Mediobanca is on track to exceed targets set under a business plan to June 30, 2023, after a jump in income from lending led to a record first half net profit, its chief executive said on Thursday.
Mediobanca, whose fiscal year runs from July to June, posted revenues of 1.7 billion euros ($1.8 billion) in the first six months, more than half of a full-year target of 3 billion euros, the bank said in a statement.
“We will close 2023 with revenues well above our target” of 3 billion euros, Chief Executive Alberto Nagel told a press briefing. The bank expects a rise of 10% in revenues and of 18% to 20% in net interest income for the current fiscal year, he said.
Under a plan unveiled in 2019 the bank set a compound annual revenue growth rate of 4%.
Net profit stood at 555 million euros, above a consensus of 508 million euros provided by the bank. Earnings per share came in at 0.65 euro versus the plan’s target of 1.1 euros.
Net interest income rose 15% to 843 million euros as higher rates help lenders profit from the gap between the cost of credit and what they pay on deposits.
Fees held up due to the contribution from Mediobanca’s wealth management and corporate and investment banking (CIB) divisions.
Mediobanca confirmed its plan to pay shareholders a dividend with a cash payout ratio of 70% of net profit.
The bank will present a new business plan by the end of 2023, Nagel said.
($1 = 0.9292 euro)
(Reporting by Gianluca Semeraro; editing by Valentina Za and Jonathan Oatis)
