Mediobanca, in addition to the investment: the challenge is on Wealth Management – Il Sole 24 Ore

business plan for 2016-2019 Mediobanca is the logical continuation of the previous business plan. The business plan 2014-2016, it is worth reminding ourselves, was, at the level of operational management, the realisation that the capitalism of the “relationship” was finished in the attic. The institute of Piazzetta Cuccia, in that project, had focused, among other things, on the reduction of the exposure to the equity portfolio. A goal is defined (also) as a function of the need to limit the volatility of financial results. Not only. Always in the business plan 2014-2016, it was clear that the desire to define a banking group that doesn’t only rhyme with bank business. But that wa s diversified on three areas: retail bank, the Wealth Management (WM) and Corporate investment banking (Cib).

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Well, the information given today to the market, are the will to continue, and reinforce, that plan. In this sense, is understood the creation of the new division ad hoc on Wealth Management. An area where Mediobanca leads all the activities of the aum of the customers:

Banca Esperia passes to Mediobanca

“affluent” and “premier” (Chebanca !) up to great wealth (Banca Esperia – now 100% owned by -, Spafid and Compagnie Monégasque de Gestion). The attention of the ceo, Alberto Nagel, and the management of the Piazzetta Cuccia, with respect to this business segment is also demonstrated by the “front” of the extraordinary transactions. After a long period of time, the joint venture with Mediolanum Banca Esperia has been closed (read the article). Mediobanca acquired, in fact, the total control of the institution, active in private banking. A move that, is the indication of the Piazzetta Cuccia, will also allow the creation of a new factory product. In short: many of the cards are on the table. A game that, in the intentions of the institute, should, on the one hand bring the Roac (Return on allocated capital) of the division from the current 8% to 20% in 2019. And, on the other, to push the assets under management at the end of the plan, at a n altitude of 59 billion (12 billion at the end of CheBanca!).

Mediobanca in red on the day of the new plan, but the brokers are positive

bank
Piazzetta Cuccia, of course, remains, however, also focused on the activities the “historic” Corporate & Investment banking (Cib). A business this last respect to which, in the plan, 2014-2016, is aimed, among other things, on the internationalization and the enlargement of the customers (i.e. the mid-corporate) . Well, just on this last front, the integration of the Banca Esperia, will give its fruits. Piazzetta Cuccia, in fact, declares the goal of becoming the bank of reference investment for the medium-sized Italian companies. But it is not just a matter of customers. The intention is also to continue on the road to carry out activities that will allow for the lower absorption of capital. In particular, on the front of the credits, there is a reference to the model “Originate-to-distribute’. That is to say: on the one hand, the objective is to find and exploit (as always) the opportunity to originate the loan. And on the other, ins tead of keeping the latter in the books, donated in part to a third party. In this way, it serves a dual purpose: it decreases the weight of the regulatory capital resulting from the delivery; and, at the same time, you collect the commission. That said, always in the Cib, it should be noted that Mediobanca wants to create a new organization, which enables to follow the most important customers (both abroad and in Italy) with greater effectiveness. At 2019, the Roac expected is around 13%

Consumer banking
One of the engines of the business enterprise is without a doubt the Compass. The consumer credit company, to the collective imaginary, do not back often to Mediobanca, at least until recently), in the last three years has registered a rise in average loans per year of 7%. It is, to see well, a reality that has a strong positive anti-cyclical and, consequently, allows greater stabilization of the interest margin of the institution. In a similar context, so it includes the why, Mediobanca, on the one hand,to strengthen in general the distribution channel of the Compass. And on the other hand, rebalance the portfolio of loans with specific reference to the channel with which it is distributed. The direct one, in fact, is characterized by a higher profitability. The Roac to June 2019, is expected to share 20% (in June last was at 16%)

investments
Finally, the division of Principal investing. In fact, the portfolio of the investments held by Mediobanca. Here the target of the institute is to get to sell shares for $ 1.3 billion. In particular, the focus is on the sale of 3%, from the current 13% to 10% held in General Insurance. The obietttivo is not new. In the previous plan had been indicated this move. Which is unique among the supply of packages to be “excellent”, was not achieved. Well see the beginning of the sale (0.2% of the share capital) was formalised in December of 2015. Then, the time window for the sale is closed. In primis because, in the wake of the entry into force of bail-in, the entire sector of the financial securities, the Italian was overwhelmed by the sales. And then because they are brought on the resignation of the previous ceo of the Lion of Trieste David Greek, which have further increased the volatility on the title. Now, however, the purpose is reaffirmed: a reduction below 10% “is an o ption – said Nagel,” we are always in the measure in which for Mediobanca will create a positive impact.” Now we’ll see if that, markets permitting, the sale by the charter of the industrial Plans will pass to a reality. Compared, instead, to the objectives of the plan the Roac of the division, to June 2019, is expected lower than that of the 30/6/2016 (from 17% to 12%).

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