Mediobanca will report quarterly results on 11 May and Equita expects a quarter in continuity with the trends recorded in the previous one, both from an operational and asset quality point of view (we do not expect a worsening of the cost of industrial risk), with a confirmation of a large amount of capital (expected CET1> 16%) in the absence of material regulatory impacts.
Sim experts are expecting continued solid performance in the CIB – at slightly lower levels than the very strong 1Q / 2Q, a slightly lower QoQ group-wide NII.
In Wealth Management, Equita expects a continuation of the trend of increasing volumes (both for net inflows and market effect) and strengthening of the commercial strength. In detail, for the third quarter Equita expects revenues at 621mn (+ 7% YoY / -8% QoQ), with NII at 350mn (-4% YoY / -3% QoQ) and Fees at 164mn (+ 4% YoY / -15% QoQ), Operating profit at 308mn and Net profit at 149mn (+ 76% YoY) – 9M 559mn
For Equita, the target price marks 10.8 points (+ 11%) due to an increase in estimates, an increase in the value of the stake in Generali and a slight reduction in the CoE. BUY on the stock confirmed in light of very solid fundamentals (CET1> 16%) and attractive valuation.