(Alliance News) - Banca Mediolanum Spa on Thursday shared January net inflows figures and announced that the board of directors approved the consolidated results as of Dec. 31, proposing a balance dividend of EUR0.42 per share, which together with the interim dividend of EUR0.28 brings the total dividend to EUR0.70, 40% higher than the 2022 dividend of EUR0.50 per share.

2023 ended with a profit of EUR821.9 million, up 62 percent from EUR506.8 million in 2022.

The contribution margin also increased by 30 percent to EUR1.77 billion from EUR1.36 in 2022 while the operating margin of EUR987.7 million grew by 49 percent from EUR662.7 in 2022.

On the other hand, net interest income in 2023 amounted to EUR752.4 million from EUR406.8 million in the previous year.

Common Equity Tier 1 ratio as of December 31 was 22.3 percent, a level of absolute excellence in the European banking landscape.

Total net inflows were positive at EUR7.13 billion, down 14 percent, while managed net inflows reached EUR4.01 billion, down 33 percent from last year, but in sharp contrast to market results, the company reports. "Net inflows into Assogestioni open-end funds recorded outflows of EUR20.5 billion," Mediolanum adds in a note.

Loans disbursed amounted to EUR2.97 billion, 26 percent less than a year earlier, while insurance premiums from protection policies decreased by 1 percent to EUR181.6 million.

In January 2024, Banca Mediolanum also reported that net inflows amounted to EUR645 million from EUR685 million in the same period of 2023, with total loan disbursements of EUR147 million from EUR232 million in the same period and total protection policy inflows of EUR13 million in line with January 2023.

CEO Massimo Doris called 2023 "a simply extraordinary year, in particular for the record operating profit of EUR822 million."

"Like the entire banking sector," Doris continued, "in 2023 we benefited from the sudden rise in rates and the resulting contribution from the interest margin. Banca Mediolanum's 2023, moreover, should not be observed in isolation, but should be analyzed in sequence with previous years, as a year of further confirmation of a structural growth trend that starts from afar, crossing in addition difficult years such as those of the pandemic and geopolitical tensions."

"This long-standing expansion, generated by a broadly diversified business model and faithfully in line with the usual all-inclusive client advisory strategy, has led to the current leap in size. A new foundation for the years to come, a new order of magnitude in terms of financial results, capital strength, shareholder remuneration, assets under management, employment capacity and, most important of all, a customer base of 11.8 million clients who daily accord us their trust and entrust us with their savings. Proof of this is the first month of 2024, with more than 18,000 new customers who have already chosen the Mediolanum Group," Doris concludes.

Banca Mediolanum's stock trades in the green by 1.6 percent at EUR9.71 per share.

By Chiara Bruschi, Alliance News reporter

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