Mediobanca : Governance

Mediobanca: European Central Bank authorizes use of advanced internal rating-based models (AIRB) to measure capital requisites for corporate credit risk

The Mediobanca Group hereby gives notice that it has today received authorization from the European Central bank to adopt its own internal risk management systems (AIRB models) in order to measure the capital requisites for credit risk in the corporate segment. The same authorization also expressed approval for the AIRB models to be gradually adopted for the other business segments as well.

The authorization will become effective starting from 31 March 2018.

Across the scope of application for the internal methodologies the Risk Density, based on data as at end-September 2017, falls to just over 60% - with a saving in terms of Risk-Weighted Assets of around €5bn - and confirms the high quality of Mediobanca lending processes, which have always been one of our distinctive features.

This result, which is equivalent to an increase in the region of 140 bps in CET1, allows the Group's already high capital solidity levels to be strengthened still further and facilitates a more robust growth as indicated in the 3Y Business Plan.

Milan, 2 th February 2018