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10-K - Presentazione agli analisti dei dati trimestrali al 31.03.2025

Company: Banca Mediolanum Date: 2025-05-08 Language: English Register to download
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# Q1 2025 Results & Business Update

![](_page_1_Picture_1.jpeg)

# **Table of content and colour key**

![](_page_1_Figure_3.jpeg)

![](_page_2_Picture_1.jpeg)

![](_page_2_Picture_2.jpeg)

**3**

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### **Excellent start of the year thanks to full-service & versatile business model**

| € mn                                             | FY 2024          | FY 2023          | Change      |
|--------------------------------------------------|------------------|------------------|-------------|
| € mn                                             | Q1 2025          | Q1 2024          | Change      |
| Net Commission Income                            | 1,168.0          | 1,029.5          | +13%        |
| Net Commission Income                            | 316.2            | 290.5            | +9%         |
| Net Interest<br>Income<br>Net Interest<br>Income | 811.1<br>180.0   | 752.4<br>220.0   | +8%<br>-18% |
| Contribution<br>Margin<br>Contribution<br>Margin | 1,976.5<br>495.1 | 1,766.5<br>504.0 | +12%<br>-2% |
| Operating Margin                                 | 1,093.6          | 987.7            | +11%        |
| Operating Margin                                 | 279.1            | 283.1            | -1%         |
| Market Effects                                   | 393.4            | 89.7             | +338%       |
| Market Effects                                   | 52.0             | 25.3             | +106%       |
| Net Income                                       | 1,119.6          | 821.9            | +36%        |
| Net Income                                       | 243.3            | 220.5            | +10%        |

| Key ratios<br>Key ratios                                                                                                   | FY 2024<br>Q1 2025 | FY 2023<br>FY 2024 |
|----------------------------------------------------------------------------------------------------------------------------|--------------------|--------------------|
| Cost/Income<br>Ratio*<br>Cost/Income<br>Ratio*                                                                             | 39.0%<br>38.4%     | 39.9%<br>39.0%     |
| Acquisition<br>costs/Gross<br>Acquisition<br>costs/Gross<br>commission<br>income<br>Ratio<br>commission<br>income<br>Ratio | 34.1%<br>34.2%     | 33.0%<br>34.1%     |
| Cost of risk (bps)<br>Annualised<br>Cost of risk (bps –<br>R12M)                                                           | 18<br>13           | 19<br>18           |

\*G&A expenses & Contribution to banking & insurance industries / Contribution margin

**Average Recurring Fee (bps) 212** 214 214

**Average Recurring Fee (bps) 205** 212 215

Very positive start of the year w/ significantly-higher average AUM. Negative market performance in Q1 25 offset by net new money

NII impacted by change in rates & success of promo initiatives. Unfavourable comparison vs 2024 due to timing & volume mismatch of promo offers. Update to 2025 expectations: -5% confirmed

Comprehensiveness of business model enabled Operating Margin to remain stable despite declining rates & market headwinds in Q1

Good contribution from performance fees in Jan-Feb, mainly thanks to PIR fund w/ daily crystalisation as well as profit-taking activity by customers

Bottom line keeps delivering thanks to resiliency of BMED business model

Efficiency remained high given the disciplined approach to costs and different seasonality vs Q1 2024

Payout to Family Bankers substantially stable across quarters

CoR even lower than usual thanks to better outlook provided by risk models

![](_page_4_Picture_2.jpeg)

### **Robust commercial performance w/high quality & quantity net inflows**

| € bn                                       | Q1 2025 | Q1 2024 | Change | FY 2024 | Change |                                                                                                                                                            |
|--------------------------------------------|---------|---------|--------|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Total Net Inflows                          | 3.77    | 3.06    | +23%   |         |        | Extremely strong start of the year, with substantial growth in net<br>new money. Strong contribution once again from both new &<br>existing customers      |
| Net Inflows into<br>Managed Assets         | 2.01    | 1.18    | +71%   |         |        | Best start of the year thanks to distinctive<br>investment strategy &<br>flow resiliency. Target of 7.5 bn confirmed                                       |
| Total AUA/AUM                              | 140.30  | 125.90  | +11%   | 138.49  | +1%    | Total financial assets fueled by the growth of deposits and net<br>inflows into managed assets, which offset negative market<br>performance in the quarter |
| Loans<br>Granted                           | 0.85    | 0.56    | +51%   |         |        | Strong pick-up in mortgage volumes also favoured<br>by easing<br>of<br>rate environment and recovery of residential RE market                              |
| Credit Book                                | 17.78   | 16.91   | +5%    | 17.62   | +1%    | Credit book increased maintaining extremely high quality<br>thanks to prudent approach to the business                                                     |
| General Insurance<br>Gross Premiums (€ mn) | 53.27   | 42.39   | +26%   |         |        | Healthy growth of premiums attributable to both stand-alone &<br>loan<br>protection policies                                                               |

# **6 Growth & Resilience Drivers**

![](_page_5_Picture_2.jpeg)

### **Customer acquisition reflects success of our initiatives Automatic investment services provide great visibility to future flows**

|                                                  | 31/03/2025 | 31/12/2024 | Change |                                                                                                         |  |
|--------------------------------------------------|------------|------------|--------|---------------------------------------------------------------------------------------------------------|--|
| Bank Customers                                   | 1,963,300  | 1,918,600  | +2%    | Customer base continues to grow at a good pace,                                                         |  |
| Bank Customer Acquisition                        | 64,500     | 197,900    |        | also thanks to promotional initiatives                                                                  |  |
| Family Bankers                                   | 6,491      | 6,415      | +1%    | FB network development continues as we train                                                            |  |
| o/w Private Bankers & Wealth Advisors            | 899        | 906        | -1%    | professionals from other sectors & traditional banks.<br>421 Banker Consultants actively support Family |  |
| AUM -<br>Private Bankers & Wealth Advisors       | € 40.95 bn | € 41.33 bn | -1%    | Bankers as at end of March                                                                              |  |
| IIS –<br>Money market AUM                        | € 3.60 bn  | € 2.87 bn  | +26%   | Automatic investment services explain consistency of                                                    |  |
| Double Chance –<br>Assets in deposit<br>accounts | € 0.93 bn  | € 1.02 bn  | -9%    | net inflows into managed assets & support the<br>increase of recurring fees over time.                  |  |
| Instalment Plans –<br>Annualised<br>yearly flows | € 1.93 bn  | € 1.69 bn  | +14%   | IIS currently the main gateway to equity investments                                                    |  |

**IIS - Intelligent Investment Strategy** shifts from money market to equity over 3-5 yrs. **Double Chance** shifts from deposit accounts to equity over 3-24 months **Instalment plans** shifts from current accounts to equity on a monthly basis

#### **7 Q1 2025 Capital Adequacy & Balance Sheet Highlights Group**

![](_page_6_Picture_1.jpeg)

### **Simple & solid balance sheet structure, strong capital generation**

|                                | Q1 2025<br>0 | FY 2024 |                                                                                                                                                 |
|--------------------------------|--------------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| CET1 Ratio                     | 22.5%        | 23.7%   | CET1 Ratio remained extremely robust after implementation of final terms<br>of Basel III                                                        |
| MREL TREA                      | 24.5%        | 25.9%   | Well above the 21.1% requirement                                                                                                                |
| Risk-weighted<br>assets (€ bn) | 15.10        | 14.11   | RWAs increased due to regulatory change: main impact on operational<br>risks, also because of record-breaking revenues from commissions in 2024 |
| Leverage Ratio                 | 7.8%         | 7.8%    | Leverage Ratio stable & well above regulatory requirements                                                                                      |
| Retail Loan/Deposit<br>Ratio   | 59.0%        | 62.1%   | Growth in deposits driven by customer acquisition & success of promo<br>offers focused on increasing share of wallet of existing customers      |
| NSFR                           | 180%*        | 180%    | Easily surpassing the requirements for long & short-term liquidity                                                                              |
| LCR                            | 465%         | 387%    | obligations                                                                                                                                     |

**Total Capital Ratio**: **22.5%**. **SREP** Req. on Total Capital Ratio: **12.8%** for 2025 including P2G. **Leverage Ratio** = CET1 / Banking Group Assets. \* **NSFR** available as at FY 2024

**8**

![](_page_7_Picture_2.jpeg)

|                                                  | Q1 2025 | Q1 2024 | Change |
|--------------------------------------------------|---------|---------|--------|
| Entry fees                                       | 16.9    | 13.0    | +30%   |
| Management fees                                  | 343.6   | 303.3   | +13%   |
| Investment Management fees                       | 66.9    | 60.1    | +11%   |
| Net insurance result                             | 56.4    | 48.0    | +18%   |
| Banking service fees                             | 48.5    | 51.2    | -5%    |
| Other<br>fees                                    | 13.8    | 12.5    | +10%   |
| Gross Commission Income                          | 546.1   | 488.0   | +12%   |
| Acquisition<br>costs                             | (186.9) | (158.9) | +18%   |
| Other<br>commission<br>expenses                  | (42.9)  | (38.6)  | +11%   |
| Net Commission Income                            | 316.2   | 290.5   | +9%    |
| Net interest<br>income                           | 180.0   | 220.0   | -18%   |
| Net income on other investments                  | (0.3)   | 2.1     | n.s.   |
| LLP (Impairment on loans<br>)                    | (1.4)   | (8.8)   | -84%   |
| Other<br>revenues & expenses                     | 0.6     | 0.3     | +126%  |
| Contribution<br>Margin                           | 495.1   | 504.0   | -2%    |
| G&A expenses                                     | (185.4) | (176.1) | +5%    |
| Contributions to banking & insurance industries  | (4.6)   | (22.1)  | -79%   |
| Depreciation<br>& Amortization                   | (7.7)   | (9.0)   | -14%   |
| Provisions<br>for risk & charges                 | (18.2)  | (13.7)  | +32%   |
| Operating Margin                                 | 279.1   | 283.1   | -1%    |
| Market effects                                   | 52.0    | 25.3    | +106%  |
| -<br>o/w Performance fees                        | 39.2    | 29.6    | +32%   |
| -<br>o/w Net income on investments at fair value | 12.8    | (4.3)   | n.s.   |
| Extraordinary<br>items                           | (1.1)   | (10.8)  | -90%   |
| PROFIT BEFORE TAX                                | 330.0   | 297.5   | +11%   |
| Income<br>tax                                    | (86.7)  | (77.0)  | +13%   |
| NET INCOME                                       | 243.3   | 220.5   | +10%   |

### **Income Statement by Quarter € mn**

| Q1 2025 |
|---------|
| Group   |
|         |

|                                                  | Q1 24   | Q2 24   | Q3 24   | Q4 24   | Q1 25   |
|--------------------------------------------------|---------|---------|---------|---------|---------|
| Entry fees                                       | 13.0    | 15.6    | 13.8    | 18.2    | 16.9    |
| Management fees                                  | 303.3   | 316.9   | 323.5   | 340.2   | 343.6   |
| Investment Management fees                       | 60.1    | 62.4    | 63.6    | 66.8    | 66.9    |
| Net insurance result                             | 48.0    | 48.9    | 52.6    | 49.9    | 56.4    |
| Banking service fees                             | 51.2    | 46.8    | 43.1    | 45.9    | 48.5    |
| Other<br>fees                                    | 12.5    | 12.8    | 12.4    | 14.0    | 13.8    |
| Gross Commission Income                          | 488.0   | 503.3   | 509.0   | 535.0   | 546.1   |
| Acquisition<br>costs                             | (158.9) | (165.2) | (176.3) | (192.8) | (186.9) |
| Other<br>commission<br>expenses                  | (38.6)  | (40.4)  | (46.0)  | (48.9)  | (42.9)  |
| Net Commission Income                            | 290.5   | 297.6   | 286.8   | 293.2   | 316.2   |
| Net interest<br>income                           | 220.0   | 198.0   | 195.4   | 197.7   | 180.0   |
| Net income on other investments                  | 2.1     | 16.4    | (0.3)   | 15.6    | (0.3)   |
| LLP (Impairment on loans)                        | (8.8)   | (9.6)   | (4.9)   | (9.3)   | (1.4)   |
| Other<br>revenues & expenses                     | 0.3     | (1.5)   | 0.0     | (2.5)   | 0.6     |
| Contribution<br>Margin                           | 504.0   | 500.9   | 477.0   | 494.7   | 495.1   |
| G&A expenses                                     | (176.1) | (190.0) | (169.6) | (200.6) | (185.4) |
| Contributions to banking & insurance industries  | (22.1)  | (5.6)   | (4.3)   | (3.6)   | (4.6)   |
| Depreciation<br>& Amortization                   | (9.0)   | (9.4)   | (9.5)   | (14.0)  | (7.7)   |
| Provisions<br>for risk & charges                 | (13.7)  | (12.9)  | (11.9)  | (30.7)  | (18.2)  |
| Operating Margin                                 | 283.1   | 283.0   | 281.8   | 245.7   | 279.1   |
| Market effects                                   | 25.3    | 15.7    | 20.1    | 332.2   | 52.0    |
| -<br>o/w Performance fees                        | 29.6    | 11.7    | 9.6     | 325.8   | 39.2    |
| -<br>o/w Net income on investments at fair value | (4.3)   | 4.0     | 10.6    | 6.4     | 12.8    |
| Extraordinary<br>items                           | (10.8)  | (0.8)   | 0.4     | (20.9)  | (1.1)   |
| PROFIT BEFORE TAX                                | 297.5   | 298.0   | 302.3   | 557.0   | 330.0   |
| Income<br>tax                                    | (77.0)  | (68.6)  | (77.9)  | (111.7) | (86.7)  |
| NET INCOME                                       | 220.5   | 229.4   | 224.4   | 445.3   | 243.3   |

![](_page_9_Picture_1.jpeg)

![](_page_9_Figure_3.jpeg)

|                        | Q1 2025 | Q1 2024 | Change |
|------------------------|---------|---------|--------|
| Total commissions      | 149.5   | 130.5   | +15%   |
| One-time commissions   | 19.9    | 17.4    | +14%   |
| Ongoing<br>commissions | 129.7   | 113.1   | +15%   |

| Total incentives & bonuses                  | 28.2 | 18.9 | +49% |
|---------------------------------------------|------|------|------|
| Incentives on individual net inflows        | 16.2 | 11.8 | +37% |
| Contest & bonuses                           | 10.9 | 6.0  | +83% |
| Reimbursement of costs for customers events | 1.1  | 1.2  | -1%  |

| Costs related to the agency agreement | 8.4 | 8.7 | -3% |
|---------------------------------------|-----|-----|-----|
|                                       |     |     |     |

|  | Prexta<br>agent commissions | 0.8 | 0.9 | -5% |
|--|-----------------------------|-----|-----|-----|
|--|-----------------------------|-----|-----|-----|

| TOTAL ACQUISITION COSTS | 186.9 | 158.9 | +18% |
|-------------------------|-------|-------|------|
|-------------------------|-------|-------|------|

![](_page_11_Picture_2.jpeg)

|                                               | Q1 2025 | Q1 2024 |
|-----------------------------------------------|---------|---------|
| GROUP TOTAL NET INFLOWS                       | +3,765  | +3,064  |
| Managed<br>Assets                             | +2,014  | +1,180  |
| -<br>o/w Mutual Funds, U/L & Managed Accounts | +2,123  | +966    |
| Administered<br>Assets                        | +1,752  | +1,885  |

| Italy -<br>Banca Mediolanum Total Net Inlows  | +3,063 | +2,766 |
|-----------------------------------------------|--------|--------|
| Managed<br>Assets                             | +1,566 | +927   |
| -<br>o/w Mutual Funds, U/L & Managed Accounts | +1,674 | +730   |
| Administered<br>Assets                        | +1,497 | +1,839 |

| Spain<br>-<br>Banco Mediolanum Total Net Inflows | +705 | +306 |
|--------------------------------------------------|------|------|
| Managed<br>Assets                                | +451 | +261 |
| -<br>o/w Mutual Funds & U/L                      | +452 | +244 |
| Administered<br>Assets                           | +254 | +45  |

| Germany                     | -3 | -8 |
|-----------------------------|----|----|
| Managed<br>Assets           | -3 | -8 |
| -<br>o/w Mutual Funds & U/L | -3 | -8 |

![](_page_12_Figure_0.jpeg)

### **14 Assets under Administration/Management € mn**

![](_page_13_Picture_2.jpeg)

|                                | 31/03/2025 | 31/12/2024 | Change | 31/03/2024 | Change |
|--------------------------------|------------|------------|--------|------------|--------|
| Italy -<br>Banca Mediolanum    | 126,499    | 125,092    | +1%    | 114,222    | +11%   |
| Mutual<br>Funds & U-L Policies | 84,827     | 85,243     | -0%    | 75,895     | +12%   |
| Other Life Insurance Reserves  | 2,067      | 2,010      | +3%    | 1,966      | +5%    |
| Banking                        | 39,604     | 37,839     | +5%    | 36,361     | +9%    |

| Spain<br>-<br>Banco Mediolanum   | 13,446 | 13,026 | +3% | 11,303 | +19% |
|----------------------------------|--------|--------|-----|--------|------|
| Mutual<br>Funds & U-L Policies   | 9,669  | 9,549  | +1% | 7,829  | +24% |
| Other<br>Life Insurance Reserves | 119    | 114    | +4% | 168    | -29% |
| Banking                          | 3,657  | 3,363  | +9% | 3,306  | +11% |

| Germany                        | 356 | 374 | -5% | 377 | -6% |
|--------------------------------|-----|-----|-----|-----|-----|
| Mutual<br>Funds & U-L Policies | 356 | 374 | -5% | 377 | -6% |

| TOTAL AUA/AUM | 140,300 | 138,493 | +1% | 125,902 | +11% |
|---------------|---------|---------|-----|---------|------|
|---------------|---------|---------|-----|---------|------|

![](_page_14_Picture_0.jpeg)

![](_page_14_Figure_1.jpeg)

Certificates not included. **Cash**: liquidity not invested. **Other**: may include hedging derivatives (shown as negative).

![](_page_15_Picture_1.jpeg)

|                                         | Q1 2025 | Q1 2024 | Change |
|-----------------------------------------|---------|---------|--------|
| Mortgages                               | 452     | 250     | +81%   |
| Personal Loans                          | 247     | 164     | +51%   |
| Salary-backed<br>Loans<br>(Prexta)<br>1 | 149     | 146     | +2%    |
| TOTAL                                   | 849     | 561     | +51%   |
| 3rd-party Loans                         | 5       | 4       | +12%   |

![](_page_16_Figure_0.jpeg)

![](_page_17_Picture_1.jpeg)

|                               | 31/03/2025 | 31/12/2024 | Change | 31/03/2024 | Change |
|-------------------------------|------------|------------|--------|------------|--------|
| Mortgages                     | 12,639     | 12,512     | +1%    | 12,061     | +5%    |
| Personal Loans                | 2,474      | 2,437      | +2%    | 2,379      | +4%    |
| Lines of Credit               | 522        | 557        | -6%    | 531        | -2%    |
| Salary-backed loans (Prexta)1 | 2,144      | 2,112      | +2%    | 1,934      | +11%   |
| TOTAL                         | 17,780     | 17,618     | +1%    | 16,906     | +5%    |

|                             | 31/03/2025 | Italian Banks |
|-----------------------------|------------|---------------|
| Gross NPE                   | 1.45%      | 2<br>2.8%     |
| Net NPE                     | 0.77%      | 3<br>1.4%     |
| Cost of risk2<br>Annualised | 0.13%      |               |

1 Includes Prexta unsecured loans

2 Bank of Italy – 'Banks and Financial Institutions: Credit Conditions and Risk by Sector and Geographical Area – Q1 2025'

3 Bank of Italy - ''Financial Stability Report No. 2 2024'

### **19 General Insurance Gross Premiums € mn**

|                      | Q1 2025 | Q1 2024 | Change |
|----------------------|---------|---------|--------|
| Stand-alone policies | 43.1    | 36.5    | +18%   |
| New business         | 7.9     | 7.2     | +9%    |
| In-force business    | 35.2    | 29.3    | +20%   |

| Loan<br>protection<br>policies | 10.1 | 5.8  | +73% |
|--------------------------------|------|------|------|
|                                |      |      |      |
| Group health<br>policies       | 0.1  | 0.0  | n.s. |
|                                |      |      |      |
| GROSS PREMIUMS                 | 53.3 | 42.4 | +26% |

# **20 Balance Sheet Structure – Banking Group Q1 2025**

**as at 31/03/2025**

### **Straight-forward & solid balance sheet structure**

![](_page_19_Figure_3.jpeg)

**Group**

![](_page_20_Picture_1.jpeg)

![](_page_20_Picture_2.jpeg)

**21**

![](_page_21_Picture_0.jpeg)

**Italy**

![](_page_21_Figure_2.jpeg)

### **23 Mutual Funds - Assets under Management € mn**

|                                                      | 31/03/2025 | 31/12/2024 | Change | 31/03/2024 | Change |
|------------------------------------------------------|------------|------------|--------|------------|--------|
| 'Best Brands' funds on funds (IRL)                   | 29,440     | 30,086     | -2%    | 28,202     | +4%    |
| 'Challenge' mutual<br>funds (IRL)                    | 28,101     | 28,231     | -0%    | 23,786     | +18%   |
| Funds of Hedge Funds (IRL)                           | 30         | 36         | -16%   | 35         | -14%   |
| 'Fondi Italia' mutual<br>funds (ITA)                 | 8,650      | 8,292      | +4%    | 7,600      | +14%   |
| 'Real estate' fund (ITA)                             | 153        | 155        | -1%    | 186        | -18%   |
| 3rd-party stand-alone funds                          | 5,580      | 5,511      | +1%    | 4,665      | +20%   |
| Other                                                | 3,776      | 3,738      | +1%    | 3,340      | +13%   |
|                                                      |            |            |        |            |        |
| Adj. for own mutual funds in FoFs<br>& Managed accts | (547)      | (554)      | -1%    | (572)      | -4%    |
|                                                      |            |            |        |            |        |
| MyLife' U-L policy                                   | 17,723     | 17,650     | +0%    | 15,163     | +17%   |
| Other<br>U-L policies                                | 22,215     | 22,833     | -3%    | 20,966     | +6%    |
|                                                      |            |            |        |            |        |
| Adj. for own mutual funds in U-L policies            | (30,295)   | (30,736)   | -1%    | (27,476)   | +10%   |
|                                                      |            |            |        |            |        |
| ASSETS IN MUTUAL FUNDS & U-L                         | 84,827     | 85,243     | -0%    | 75,895     | +12%   |

**Q1 2025 Italy**

**24 Mutual Funds - Assets by A.M. Company**

**as at 31/03/2025 - including U-L assets**

![](_page_23_Figure_2.jpeg)

**Q1 2025** 

**Italy**

**25 Banking - Assets under Administration € mn**

|                               | 31/03/2025 | 31/12/2024 | Change | 31/03/2024 | Change |
|-------------------------------|------------|------------|--------|------------|--------|
| Cash deposits                 | 26,584     | 25,211     | +5%    | 24,645     | +8%    |
| Repurchase<br>agreements      | 4          | 4          | +7%    | 3          | +66%   |
|                               |            |            |        |            |        |
| 3rd-party structured<br>bonds | 3,670      | 3,520      | +4%    | 3,300      | +11%   |
| Other<br>securities           | 9,346      | 9,104      | +3%    | 8,413      | +11%   |
|                               |            |            |        |            |        |
| BANKING ADMINISTERED ASSETS   | 39,604     | 37,839     | +5%    | 36,361     | +9%    |

**Q1 2025 Italy**

![](_page_25_Picture_2.jpeg)

**Total Book**

![](_page_25_Figure_4.jpeg)

### **Customer Book**

![](_page_25_Figure_6.jpeg)

| Q1 2025 |  |  |
|---------|--|--|
| Italy   |  |  |
|         |  |  |

|           | Liabilities | Assets |
|-----------|-------------|--------|
| Customers | 26,657      | 16,231 |

| Treasury                                       | 5,649 | 17,972 |
|------------------------------------------------|-------|--------|
| Interbank<br>/ intra-group deposits<br>& repos | 801   | 710    |
| ECB refinancing                                | 0     | 437    |
| MTS refinancing                                | 4,548 | 0      |
| Securities (bonds)                             | 300   | 16,826 |

| Other<br>liabilities / assets | 5,867 | 3,969 |
|-------------------------------|-------|-------|
|-------------------------------|-------|-------|

| TOTAL | 38,172 | 38,172 |
|-------|--------|--------|
|       |        |        |

**Operating Liquidity (24hr): 13,318**

**Q1 2025 Italy**

**Family Banker Network - Italy**

**28**

**Change in headcount & Split by Average Portfolio Year 2025**

![](_page_27_Figure_3.jpeg)

Average portfolio calculated on Family Bankers only

**'Private Bankers' & 'Wealth Advisors'\* - Italy**

#### **as at 31/03/2025**

![](_page_28_Figure_2.jpeg)

**Q1 2025 Italy**

\* 'Private Bankers' & 'Wealth Advisors' are a subset of Family Bankers who mainly deal with affluent & HNW customers

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**30**

![](_page_30_Picture_1.jpeg)

|                  | Q1 2025 | Q1 2024 | Change | vs. FY |
|------------------|---------|---------|--------|--------|
| Operating Margin | 15.7    | 23.2    | -32%   |        |
| Net Income       | 14.2    | 18.9    | -25%   | -0.8   |

| Total Assets           | 13,446 | 11,303 | +19% | +3% |
|------------------------|--------|--------|------|-----|
| Managed<br>Assets      | 9,788  | 7,998  | +22% | +1% |
| Administered<br>Assets | 3,657  | 3,306  | +11% | +9% |

| Total Net Inflows                    | 705 | 306 | +130% |
|--------------------------------------|-----|-----|-------|
| Net Inflows into Managed Assets      | 451 | 261 | +73%  |
| Net Inflows into Administered Assets | 254 | 45  | +461% |

| Credit Book | 1,549 | 1,361 | +14% | +4% |
|-------------|-------|-------|------|-----|
|             |       |       |      |     |

| Family Bankers | 1,632 | 1,617 | +1% | +1% |
|----------------|-------|-------|-----|-----|

| Customers | 265,530 | 237,845 | +12% | +4% |
|-----------|---------|---------|------|-----|

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**32**

# **33 Italian FA Networks - Ranking by Net Inflows Business**

**€ mn – totals by Group**

|                        |                | Q1 2025                                              |                   |  |  |
|------------------------|----------------|------------------------------------------------------|-------------------|--|--|
|                        | Managed Assets | Managed Assets &<br>Admin. Assets w/<br>Advisory fee | Total Net Inflows |  |  |
| Banca Mediolanum       | 1,677          | 1,688                                                | 3,001             |  |  |
| Gruppo Fideuram/Intesa | 1,315          | 1,539                                                | 2,713             |  |  |
| Allianz Bank           | 1,266          | 1,269                                                | 1,821             |  |  |
| Mediobanca Premier     | 846            | 917                                                  | 1,282             |  |  |
| Finecobank             | 808            | 1,053                                                | 2,339             |  |  |
| Credem                 | 496            | 506                                                  | 700               |  |  |
| Banca Generali         | 485            | 452                                                  | 1,452             |  |  |
| Zurich Italy Bank      | 263            | 408                                                  | 538               |  |  |
| BNL -<br>BNP Paribas   | 233            | 367                                                  | 499               |  |  |
| Banca Widiba           | 98             | 158                                                  | 237               |  |  |

![](_page_32_Picture_5.jpeg)

![](_page_33_Figure_0.jpeg)

\* including Unit-Linked policies & Managed Accounts Source: Assoreti

**Business** 

|                                               | Apr 2025 | YTD 2025 | YTD 2024 |
|-----------------------------------------------|----------|----------|----------|
| GROUP TOTAL NET INFLOWS                       | 1,126    | 4,892    | 4,089    |
| Managed Assets                                | 1,135    | 3,148    | 1,801    |
| -<br>o/w Mutual Funds, U-L & Managed Accounts | 1,183    | 3,306    | 1,536    |
| Administered Assets                           | -8       | 1,743    | 2,289    |
|                                               |          |          |          |

| GROUP LOANS GRANTED        | 308 | 1,157 | 764 |
|----------------------------|-----|-------|-----|
|                            |     |       |     |
| GENERAL INSURANCE PREMIUMS | 19  | 72    | 58  |

![](_page_35_Picture_0.jpeg)

- 
- Promotions on time deposits have been **extremely effective in acquiring new liquidity** from both **new** and **existing customers**
- Proven **track-record of transforming deposits into managed assets** thanks to the advice of Family Bankers in implementing the **correct asset allocation**
- **Short duration (6M)** & **full flexibility to adjust cost of funding** with each edition according to rate environment

| Edition | Annual<br>Interest<br>Rate (6 months) | Inflows  | # Customers | o/w New<br>customers | Time deposits<br>transformed into<br>managed<br>assets<br>(Target: 70%) |
|---------|---------------------------------------|----------|-------------|----------------------|-------------------------------------------------------------------------|
| Q1 2023 | 4%                                    | € 1.9 bn | 32,000      | 23%                  |                                                                         |
| Q3 2023 | 4%                                    | € 0.5 bn | 13,700      | 14%                  |                                                                         |
| Q1 2024 | 5%                                    | € 2.2 bn | 44,300      | 21%                  |                                                                         |
| Q3 2024 | 5%                                    | € 1.9 bn | 36,600      | 21%                  | 43% as<br>at<br>Apr. 30                                                 |
| Q1 2025 | 4%                                    | € 1.8 bn | 37,400      | 21%                  | In progress                                                             |

# **37 Creating the NEXT Generation of the Network**

![](_page_36_Picture_2.jpeg)

![](_page_36_Picture_3.jpeg)

### **Pairing** high potential new graduates to work as **junior assistants** ('Banker Consultant') with **senior Private Bankers & Wealth Advisors**

- 'Banker Consultants' initially receive **dedicated training programme** (Executive Master's) provided by Mediolanum Corporate University & supported with a **scholarship**
- Once fully licensed, the 'BCs' work alongside their senior PB/WA with **extensive on-the-job training**, managing **day-to-day duties & operations** as well as **smaller customers**
- The 'BCs' **free up time for the senior PBs**/**WAs** to focus on larger customers & new business development
- As remuneration they receive a **percentage of the senior PBs/WAs commission**, with a 3-year minimum monthly compensation
- This project assures an **increase in productivity** in the Network, **organic growth** and **generational renewal**
- **459 'BCs'** are already **working with their senior PB/WA** as licensed FA as at end of April 2025
- **173 'BCs' currently training**

# **38 Automatic Investment Services Business**

![](_page_37_Picture_2.jpeg)

### **Investment services featuring automatic gradual switch into equity funds allowing customers to take advantage of dollar-cost averaging**

### ● **Big Chance (2001)**

- Capital is initially invested in money market fund
- A portion of the assets is switched twice monthly into equity funds, investing the entire amount over 3/12-month period

### ● **Double Chance (2008)**

- Capital is initially parked in a highly-remunerated deposit account
- Allows customer gradual entry into equity & fixed-income funds, investing the entire amount over 3/24-month period

### ● **Intelligent Investment Strategy (2016)**

- Capital is initially invested in money market fund
- A portion of the assets is switched once or twice monthly into equity funds or U-L policy, investing the entire amount over 3/5 year period
- Instalment amount automatically increases if equity fund value drops. Capital gains on equity >10% are switched back into money market fund to be reinvested over time

### ● **Intelligent Accumulation Plan (2020)**

- Long-term instalment plan that shifts small amount of savings from current account to mutual funds monthly
- Allows customers to gradually enter BMED equity & fixed-income funds
- Instalment amount automatically doubled each month the fund unit price is 5% below the avg unit price of a customer

- <sup>A</sup>**long-term investment strategy**/service that allows the retail investor to **gradually enter the global financial markets** via Mediolanum investment products, while mitigating the effects of volatility & taking advantage of dollar-cost-averaging
- Capital is initially parked in a **highly-remunerated deposit account** (rates currently offered: up to 3.00% annual according to selected duration & asset class)
- Allows customer gradual investment into **equity or highyield funds** over **3/24-month** period, automatically transferring the established amount 2 or 4 times a month
- Interests of the deposit account automatically credited to the customer's checking account

![](_page_38_Figure_6.jpeg)

**Business Update**

#### **40 Business Launched June 2016 The 'Intelligent Investment Strategy' Service (IIS)**

- <sup>A</sup>**long-term investment strategy**/service (10+ yrs, € 30k+) that allows our customers to **gradually enter the equity markets** in order to take advantage of the overall growth of the world economy
- **Designed to remove emotional barriers** associated with equity investments by making rational choices at the beginning of the plan rather than during crises or volatile markets
- The amount invested is first put into a **money market fund**, and then **fully converted into** Mediolanum **equity funds** or **MyLife U-L wrap account** over **3-4-5 years**, through automatic transfers 1-2 times per month
- Thanks to the **Automatic Step-In/Step-Out** feature, when the **unit price of equity funds** has a **strong decrease\*** the **transferred amount** is **multiplied accordingly**. Vice versa, in case of an **extraordinary increase** (+10% or 20%), the **capital gains** are **shifted back into the money market** fund
	- \* versus each customer's average purchase price

![](_page_39_Picture_6.jpeg)

**Update**

| Equity Fund<br>Unit Price | Installment<br>amount |  |
|---------------------------|-----------------------|--|
| 5%<br>to 10% decrease     | X2                    |  |
| 10%<br>to 15% decrease    | X3                    |  |
| 15%<br>to 20% decrease    | X4                    |  |
| 20%<br>or more decrease   | X5                    |  |

![](_page_40_Picture_0.jpeg)

![](_page_40_Picture_3.jpeg)

### **'Market crises are buying opportunities': not just a slogan**

**Step ins & step outs** reduce avg unit price on investments, allowing **customers to benefit from market volatility. € 4.9 bn** of money market managed assets were **automatically invested in equity** through **planned instalments & step-ins between 2022 & 2024, supporting a strong increase in avg. recurring revenues**. **€ 2.87 bn more** to be transferred from monetary funds over the next 3-5 years.

![](_page_40_Figure_6.jpeg)

**42 Group Customer Base as at 31/03/2025**

![](_page_41_Picture_2.jpeg)

# **Total Customers 1,963k**

![](_page_41_Figure_4.jpeg)

# **End Goal: to be the Customer's Primary Bank**

# **1,385k hold a bank account**

- **68%** use BMED as **Primary Bank**  (internal data analytics)
- **39%** use BMED as the **Only Bank**  (2024 survey)

![](_page_42_Picture_1.jpeg)

![](_page_42_Picture_2.jpeg)

![](_page_42_Picture_3.jpeg)

**43**

#### **44 Mediolanum Facts as at 31/03/2025 BMED Shareholders & Group Structure**

![](_page_43_Figure_1.jpeg)

#### **45 Mediolanum Banca Mediolanum's Integrated Business Model**

- We and our Family Bankers view the company as a single entity, providing solutions that best fit the needs of the customer, whether it be in the form of a mutual fund, an insurance policy or a bank product
- The Bank (est. 1997) has a special role as the place where customer savings are naturally built
- It is also where service quality is more readily appreciated & compared
- Therefore, it represents the mandatory point of entry for all new customers

![](_page_44_Figure_5.jpeg)

**Facts**

#### **46 Mediolanum Banca Mediolanum's Multi-channel Model**

![](_page_45_Figure_1.jpeg)

**Facts**

![](_page_46_Picture_0.jpeg)

- Self-employed tied agents with entrepreneurial approach
- Extensively trained to tackle every household financial need
	- Share Mediolanum's view that banking services are an effective acquisition & retention tool
- Compensated even for operations performed by customers through direct channels
- Willing to provide advice anytime, anywhere
- Equally competent across all product lines
- Unlike the typical FA, offer assistance also with everyday banking needs
- Synergy, not competition, between human and direct channels

![](_page_46_Picture_9.jpeg)

# **Customers: freedom in banking**

Top-quality and valuable direct banking services associated with a human relationship

# **48 Italian Household Financial Assets Mediolanum**

![](_page_47_Picture_2.jpeg)

### **Over the last few years asset gatherers have increased market share to the detriment of traditional banks**

**Total HH Assets as at Dec. '24: € 5.98 trillion**

![](_page_47_Figure_5.jpeg)

Asset gatherers growing mainly thanks to:

- Demand for **specialised advice**
- **Products & services tailored** on customer needs
- Better **product performance**
- **Recruiting** of traditional bank professionals

(\*) Includes deposits, administered & managed assets. Does not include real estate, shares of unlisted companies, TFR (end-of-service pay)& cash, as these assets are a nonaddressable market for financial institutions. Total wealth of Italian households – all items included - is equal to € 5.98 trn in 2024. Source: BMED & Prometeia

![](_page_48_Figure_0.jpeg)

2008 & 2010: adjusted net income excluding effects of 'Lehman Brothers' operation

![](_page_49_Figure_0.jpeg)

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

![](_page_49_Figure_2.jpeg)

2019 dividend balance & 2020 dividend paid in Oct. 2021 due to Covid-19 ECB ban

![](_page_50_Figure_0.jpeg)

![](_page_50_Picture_2.jpeg)

![](_page_50_Figure_3.jpeg)

Total Net Inflows Net Inflows into Managed Assets

#### **52 BMED: 24 Years of Consistent Net Inflows**

**Anti-cyclical flows mean better performance for customers thanks to dollar-cost-averaging**

![](_page_51_Figure_2.jpeg)

**Mediolanum** 

**Facts**

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Net Inflows into Managed Assets

![](_page_52_Figure_0.jpeg)

![](_page_53_Figure_0.jpeg)

![](_page_54_Figure_0.jpeg)

![](_page_55_Picture_0.jpeg)

Primary Bank Account Holders

![](_page_55_Figure_2.jpeg)

![](_page_56_Figure_0.jpeg)

**57**

![](_page_56_Figure_1.jpeg)

**Facts**

![](_page_57_Figure_0.jpeg)

![](_page_58_Figure_0.jpeg)

**1,451**

![](_page_58_Figure_1.jpeg)

![](_page_59_Picture_0.jpeg)

![](_page_59_Picture_2.jpeg)

![](_page_59_Figure_3.jpeg)

**Facts**

# **61 Spain – Family Banker Network Mediolanum**

![](_page_60_Figure_2.jpeg)

**62 Banking Book Composition Mediolanum** 

**€ bn – nominal value – as at 31/03/2025**

![](_page_61_Picture_2.jpeg)

# **Banking Book: € 17.8 bn (nom. values)**

![](_page_61_Figure_4.jpeg)

**Mediolanum** 

#### **63 Facts Investment Advisory Strategy**

# **Our investment strategy explains the consistency of our inflows & transfers 'technical performance' into 'customer performance'**

- We advise our customers proposing products & services that correspond to each of their **specific needs**
- Investor needs remain fundamentally the same, they are **not influenced by market crises**
- We do not engage in stock-picking, tactical asset allocation decisions, or market-timing
- We recommend a series of **diversification criteria**, the most important being **time horizon** (5D Strategy)
- **Equity** investments are only considered for the **long term** (>10 yrs) and are diversified across the **global economy** to further reduce risk
- We strongly advise investors who have a long-term outlook to view **market crises as buying opportunities**

**Mediolanum Facts**

## **CSM is the new key metric showing size and stability of revenues ready to be recognised in future years**

### **Greater visibility on future earnings from insurance business**

![](_page_63_Figure_5.jpeg)

![](_page_64_Picture_0.jpeg)

- with a resource for life-long education
- Develops financial education programs dedicated to our customers & the community
- universities, professors and individuals who are experts in the field ● Provides our Family Bankers & employees
- Inaugurated March 2009 ● Centralises our training know-how, in coordination with top

![](_page_64_Picture_5.jpeg)

![](_page_64_Picture_6.jpeg)

**Facts**

![](_page_64_Picture_7.jpeg)

# **Mediolanum Facts**

# **A proprietary state-of-the-art tool established in 1989**

Online programs to train, motivate & communicate with our Family Bankers

- Financial news commented by top company executives
- Company news & product information
- Online training course support
- Inspirational thoughts for personal motivation & sales techniques

![](_page_65_Picture_9.jpeg)

![](_page_65_Picture_10.jpeg)

**Daily specials dedicated to crisis-related topics were added to the ongoing programming in 2008, 2009, 2011, 2020 & 2022**

# **<sup>67</sup> Mediolanum Marketing Events Facts**

- **9 nation-wide in-person events**, with over **60,000** between attendees & digital viewers in **2024**
- Over **2,000 digital/in-person events** organised by Family Bankers: over **145,000 attendees**

# **Results are measurable:**

- Net inflows into managed assets of invited customers in the 3 months post-events
- Expenses are reimbursed to Family Bankers only if set commercial target is met
- Average commercial value of media coverage is also regularly tracked

![](_page_66_Picture_8.jpeg)

# **68 Top Performer in Customer Experience Mediolanum**

**Facts**

**BVA Doxa Survey – Customer Satisfaction 2024**

### **Solid customer relationship is built on best-in-class service delivery both human & digital**

| Overall<br>Satisfaction                           | Perceived<br>Value               | Digital<br>Platform        | Financial Advisor<br>Interaction                                                |
|---------------------------------------------------|----------------------------------|----------------------------|---------------------------------------------------------------------------------|
| Customer<br>Satisfaction                          | Comprehensiveness<br>of<br>Offer | Mobile App<br>Satisfaction | Overall<br>Satisfaction                                                         |
| 95%<br>Market Avg: 90%                            | 85.7<br>Market Avg: 74.2         | 83%<br>Market Avg: 66%     | 89%<br>Market Avg: 60%                                                          |
| Net Promoter Score                                | Value for Money                  | App<br>Store Rating        | Availability                                                                    |
| 66.2<br>1<br>st Bank in Italy<br>Market Avg: 11.2 | 76.8<br>Market Avg: 68           | 4.8<br>4.5                 | In 2024, Family Bankers<br>had<br>9 contacts on average<br>with their customers |
| Customer<br>Retention                             | Focus on<br>Sustainability       |                            |                                                                                 |
| 96%                                               | 83.8                             |                            |                                                                                 |

Market Avg: 67.8 Source: BMED; BVA Doxa Survey Customer Satisfaction 2024; Play Store & Apple Store

![](_page_68_Picture_0.jpeg)

source: GfK – an NIQ company

![](_page_69_Figure_0.jpeg)

**71 The development of the digital customer:**

A **totally digital Bank account** addressing the needs of **'digital young adults'**

- For those who require a full-service account, but **aren't in the market for advice**  like the typical BMED customer
- Not only an account but a **comprehensive offer of banking services**
- **Credit, managed assets & general insurance products** available
- Able to be managed on a 'do-it-yourself' basis, **'à la carte'**
- **138,300 digital customers** as at 31/03/2025. Another **37,500** already upgraded to the Family Banker model
- **Cross-selling activity growing** according to expectations

![](_page_70_Picture_8.jpeg)

![](_page_71_Figure_1.jpeg)

Source: BMED based on Bloomberg data

**Facts**

**73** 0% 500% 1000% 1500% 2000% 2500% 3000% 3500% Price Return Reinvested Total Return **Mediolanum Facts MED.MI / BMED.MI Price Return & Total Return Index\***

\* Total Return Index includes dividend reinvestments, June 3, 1996 – April 30, 2025 Source: Datastream

# **74 Disclaimer**

This document has been prepared by Banca Mediolanum S.p.A. for the sole purpose of providing information and presenting the Group's strategies.

The information, opinions, valuations and forecasts it contains have not been audited by any independent body; they may be altered at any time without notice.

No guarantee, express or implicit, is given by Banca Mediolanum S.p.A. or by any of the Mediolanum Group companies as to the reliability, completeness or accuracy of the information or opinions in the present document.

Publication, communication to others, and reproduction of all or any of this document's contents are forbidden, except with the express written consent of Banca Mediolanum S.p.A.

Neither Banca Mediolanum S.p.A., nor the companies belonging to the Mediolanum Group, nor their representatives, managers or employees accept liability for any losses directly or indirectly resulting in any manner whatsoever from use of the present document or of information in any way attributable thereto.

Forecasts in this document has been prepared with the greatest care, but is nevertheless based on assumptions which could prove wrong because of risk factors outside the control of Banca Mediolanum S.p.A. and the Mediolanum Group companies. There is no guarantee that present forecasts will match future performance.

This document is not a recommendation to invest in any financial instrument, nor an invitation to subscribe or purchase shares, nor is any part thereof intended to serve as a basis or reference source for any contract or undertaking whatsoever on the part of Banca Mediolanum S.p.A. or any of the companies belonging to the Mediolanum Group.

Receipt of this document implies acceptance of its limitations as described above.

#### **DECLARATION BY THE SENIOR MANAGER IN CHARGE OF DRAWING UP COMPANY ACCOUNTS**

The undersigned, Mr. Angelo Lietti, declares, pursuant to Section 154 bis (2) of Legislative Decree 58/98 "*Testo Unico della Finanza*", that the accounting data set out in this presentation agree with the documentary records, books and accounting entries.

The senior manager in charge of drawing up Company Accounts

Angelo Lietti

Figures contained in this document are rounded for presentation purposes.

#### **75 Investor Relations Contacts**

![](_page_74_Picture_2.jpeg)

# ● **Alessandra Lanzone**

**+39-02-9049.2039** alessandra.lanzone@mediolanum.it

# ● **Lisa Maxon +39-02-9049.2997**

lisa.maxon@mediolanum.it

# ● **Luca Pugliese**

**+39-02-9049.2721** luca.pugliese@mediolanum.it

# **Banca Mediolanum S.p.A.**

Via Ennio Doris 20080 Basiglio MI – Italy

http://www.bancamediolanum.it