Mediobanca closes the first six months of its financial year with profits of 611 million (+10%) and revenues of 1.7 billion (+4%). Both entries constitute an all-time high for Piazzetta Cuccia. But what took center stage, even more than the record-breaking accounts, were the cannonades on the Capital Bill by CEO Alberto Nagel. The reform established by the government, intended to increase the attractiveness of the Italian stock market and approved with a bipartisan vote by the Chamber, does not go down well with the number one merchant bank: «It is a provision that will be difficult to apply and will require corrective interventions, if you want to make it applicable,” Nagel said. The Capital Bill, among various other provisions, will regulate the institution of the board of directors’ list by inserting the novelty of voting for individual candidates and the need for the approval of two thirds of the outgoing board in order to present the list. «According to the jurists who have read and interpreted the law – said Nagel – if the board of directors’ list was first in the vote there would not be automatic certainty about the president or CEO indicated on the list, but there would be strong doubts about their possible election.” List voting, in reality, is a practice already present in the Anglo-Saxon world, without this causing any upheavals. However, it could bring some changes to Mediobanca, and this is probably what Nagel cannot tolerate. Moreover, the practice of the board of directors list is consolidated and has allowed a long season of stability at the top of the institute, despite two large shareholders such as Delfin (19.7%) and Caltagirone (9.9% at the time of the vote at the end last October) have been pushing for more weight on the board of directors for some time. The Capital Bill thus formulated is designed to protect minorities more, acting for a rebalance of power between managers and shareholders and this would potentially weaken all those managers who have strong shareholders with different views in the capital. And Nagel would certainly fall into the latter category.
While waiting to see the provisions of the Capital Bill applied, which will soon make a final passage in the Senate, Mediobanca is continuing its transformation process, with an ever-increasing focus on asset management. In the latter area, which saw the birth of the new Mediobanca Premier brand, total assets grew by 5.5 billion and now stand at 94 billion. This business area generated 240 million in commissions, contributing to the group’s net profit at 31 December of over 100 million euros (+21.9% compared to the first half of the previous year). The contribution of consumer credit was substantial, with 194 million profit (-1.2%), within a perimeter that has expanded with the purchase of HeidiPay (operating in the buy now pay later field) through the subsidiary Compass. The insurance branch, which has Generali as its pillar, brought 223.4 million profits (+22.2%). While the weakness of corporate & investment banking continues, which obtained profits of 108.3 million, down 26.4 percent. The group confirmed a payout of 70% on profit, with the first advance on the coupon due in May. The stock market is cold, with Mediobanca shares losing 1.7% to 11.6 euros yesterday.
2024-02-09 19:54:00
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