Capital Management

The Mediobanca group has succeeded in maintaining its capital excellence, with asset quality levels which are unparalleled in the Italian banking panorama and which rank us among the leading banks in Europe.

To guarantee capital ratios in line with the new regulations, we have implemented a series of measures to optimize assets and use of capital, including via a programme of stake disposals to reduce our exposure to equity. These measures have enabled us to preserve solid capital ratios without having to implement rights issues (our most recent dates back to 1998).

As part of the 2014-16 strategic plan, we have disposed of equity stakes worth a total of 1.5 billion euros, generating gains of 500 million euros in three years. 

The 2016-19 strategic plan provided for further capital allocation optimization, with continuing stake disposals to allow us to concentrate on higher fee-generating, capital-light banking activities. In FY17 and FY18 we have disposed of equity stakes worth a total of about 600 milion euros, generating gains of about 250 million euros. We have delivered robust capital generation despite increasing shareholder remuneration and expanding the Group’s consolidation area.

The Strategic Plan 2019-23 confirms the growth in capital generation capability, deriving from the high profitability (ROTE 11%) and the absence of adverse material impact from regulation in the coming years; the additional resources will allow growth to be financed, both organic and by acquisitions, and shareholders rewarded. Shareholder remuneration will grow to €2.5bn in the 2020-23 period (50% higher than in 2016-19), €1.9bn of which in dividends and €0.3bn/€0.6bn through the buyback and cancellation of own shares; the dividend per share will increase by 10% in 2020 (to €0.52) and thereafter by 5% each year (up to €0.60 per share in 2023), for a total of €1.9bn in dividends distributed for the period. In the course of the plan time horizon an annual share buyback scheme will be implemented, with the shares acquired also cancelled, for a total minimum amount of €0.3bn and a maximum of €0.6bn, with the objective of stabilizing the CET1 phase-in ratio at 13.5% each year after organic growth and acquisitions for the year itself.

 

Capital ratio 30 JUNE 2019
CET1 ratio 14,1%
Total capital ratio 17,5%
Leverage ratio 8,4%

Last update: 12/12/2019