Strategy
Mediobanca is pursuing plans for growth and value creation for all stakeholders which is sustainable over the long term. The strategic guidelines are to:
- ensure operations are based on the highest values and ethical principles
- consolidate the choice of a sustainable business model
- ensure high levels of shareholder remuneration
- maintain a solid financial structure
- retain high levels of operating efficiency and asset quality
- allocate capital to banking activities, with a view to diversifying capital invested and making it profitable.
In line with these strategic principles, achievements in recent years include:
- investment banking activity has been significantly expanded and the international dimension of its operations enhanced, with branch offices opened in Paris (2004), New York (2006), Madrid (2007), Frankfurt (2007) and London (2008)
- a leading consumer credit operator (Compass) has been established, including through acquisitions (Linea, 2008)
- retail banking activity has been launched (CheBanca! founded in 2008), crucial for diversifying the Group’s sources of funding
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private banking activity has been launched, with the foundation of Banca Esperia (2001), a leading Italian private bank, and the acquisition of CMB in 2003, a leading operator in this sector in Monaco
Consistent with the developments in recent years, the guidelines for developing the CIB division are:
- ongoing enhancement of the product range, with an integrated approach between lending, advisory and capital markets activities;
- diversification of income sources and customer base, with reference to the non-domestic side in particular
- enhancing distribution and origination capacity, focusing on large and mid-corporate customers
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maintaining an efficient structure, with low leverage and high asset quality.
| Main results achieved | 2005 | 2011 | Var. |
| Revenues €m | 560 | 913 | +63% |
| % non domestic | 2% | 31% | |
| GOP €m | 375 | 572 | +53% |
| Loans €mld | 16.6 | 27.6 | +66% |
| Employees | 629 | 964 | +53% |
| Cost/income ratio | 33% | 37% | |
| NPLs/Ls | 0.0% | 0.2% |
The division brings together the Group’s investments in Assicurazioni Generali, RCS MediaGroup and Telco.
Mediobanca’s objective with these investments, including by participating in the companies’ governing bodies, is to contribute to increasing their value over the medium term.
| Company | Sector | Percentage shareholding* at 30/06/2011 | Book value at 30/06/2011 | Market value at 30/06/2011 |
| Assicurazioni Generali | Insurance | 13.24 | 2,241.5 | 2,998.7 |
| RCS Mediagroup | Media | 14.36 | 191.8 | 125.3 |
| Telco | Telecommunications | 11.62 | 252.6 | Unlisted |
*Percentage of entire share capital
Mediobanca has been operating in the consumer credit sector since the 1960s through its subsidiary Compass.
Its positioning in this segment was strengthened in 2008 through its acquisition of Linea.
Compass today is one of the top-ranking players on the Italian consumer credit market, with a market share of above 9%.
Consistent with the developments in recent years, the guidelines for developing Compass are:
- ongoing enhancement of the product range, which currently includes personal loans (around 50% of new loans disbursed last year), special purpose loans (33%), credit cards (10%) and salary-backed finance (7%)
- ongoing expansion of the distribution network, which is already highly diversified, consisting of around 157 own branches, distribution agreements with banking partners, retailers and the Italian post office;
- maintaining an efficient structure, with low leverage and high asset quality.
| Main results achieved | 2005 | 2011 | Var. |
| Revenues €m | 258 | 687,3 | +2.7x |
| GOP €m | 154 | 437.5 | +2.8x |
| Loans €mld | 2.7 | 8.9 | +3.3x |
| Employees | 615 | 1,341 | +2.2x |
| Cost/income ratio | 41% | 36.3% | |
| NPLs/Ls | 1.1% | 0.8% |
In 2008 the Group commenced activities in retail banking, with the launch of CheBanca!. The aim of this project was to diversify the Group’s sources of funding and establish a “centre of value” which would derive momentum from the market’s potential to create a transparent and highly innovative Italian player.
Three years since its launch, CheBanca! has achieved a significant position in the market, being distinguished for its:
- high brand recognition
- effective and innovative multi-channel distribution (internet, 44 own branches, direct banking)
- simple, transparent products
- sizeable, stable and affluent customer base, with over 470,000 customers
- strong commercial results: about €11.5 bn of deposits (which represents around 20% of the Group’s funding stock), approx. €4.3 bn in mortgages disbursed.
Mediobanca’s private banking activities were launched in the early 2000s, and were born as a result of the desire to exploit the synergies between investment and private banking. Banca Esperia was founded in 2000, and Monaco-based private bank Compagnie Monégasque du Banque was acquired in 2003.
Compagnie Monégasque de Banque (CMB), 100%-owned by Mediobanca, was set up in 1976 by Banca Commerciale Italiana with other international partners. CMB is market leader in Monaco, with deposits of some €6bn.
The bank’s geographical position, its indepth knowledge of markets and absolute independence make it a player of primary importance, being able to provide exclusive services to its own customers which range from loans to asset management.
Banca Esperia was set up in July 2000 as a joint venture between Mediobanca and the Mediolanum group, with the objective of becoming the private bank of choice for high net worth customers, providing portfolio management, advisory and lending services.
Independence, operating autonomy, focus on private banking business, excellence and quality of service are the distinguishing features of the bank, which has over € 13bn in assets under management* and 10 branches located in Bergamo, Bologna, Brescia, Florence, Genoa, Milan, Padua, Parma, Rome and Turin.
* 100% Esperia