(Alliance News) - Banca Mediolanum Spa reported Thursday that it closed the first nine months with a net profit of EUR572.2 million, up 52 percent from EUR377.1 million in the same period a year earlier.

Net interest income rose to EUR541.2 million from EUR257.7 million a year earlier while contribution margin increased to ERU1.29 billion from EUR987.2 million. Operating margin rose to EUR731.3 million from EUR485.1 million.

Pre-tax income showed an increase to ERU752.1 million from EUR477.6 million in the previous year.

The boost in recurring income is evident first of all by looking at net fees and commissions, which amounted to EUR769.7 million and grew 4 percent year-on-year, a result achieved thanks to the good performance of financial markets in the first nine months of the year but also through the good contribution of net inflows in asset management products.

Assets under administration rise 12 percent year-on-year to EUR112.30 billion and loans to retail customers increase 7 percent to EUR17.01 billion.

The CET 1 ratio is 22.1%, confirming the bank's capital strength.

The board decided to propose to the shareholders the establishment of a non-distributable reserve of EUR67.4 million, equivalent to 2.5 times the tax of EUR26.9 million.

"Through this reserve, fully computable for the calculation of Common Equity Tier 1 and without recognizing any impact on the income statement, the bank intends to continue to support the needs of its customers in full compliance with its commitments to all stakeholders," the bank explained.

Massimo Doris, CEO of Banca Mediolanum, said, "The results we are presenting today demonstrate the validity of our business model in generating high and sustainable value for all stakeholders. In particular, operating income is up 52 percent over the same period last year. These results are the result of a daily commitment on the part of our family bankers and our employees, and thanks to the strategies that have always guided us in best serving customers with a comprehensive and integrated approach."

"This unique and distinctive customer service strategy is then reflected in our profit and loss account, which is stably diversified and in which a now structural marginality, deriving from lending, complements the core component referring to savings management and financial advice. All the conditions are therefore in place to continue a strong path of growth and future prosperity for our bank."

Mediolanum went on to say that, in October, trading results fell 7 percent year-on-year to EUR8.04 billion from EUR8.63 billion.

Total net inflows were in line with a year earlier, at EUR5.60 billion, and managed net inflows fell 33 percent, to EUR2.84 billion.

Banca Mediolanum's stock is up 0.7 percent at EUR8.06 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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