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Mediobanca Q1 net profit up on stake sale, lower loan losses
October 27, 2017 / 5:42 AM / in a month

Mediobanca Q1 net profit up on stake sale, lower loan losses

MILAN, Oct 27 (Reuters) - Net profit at Italian investment bank Mediobanca rose 11 percent in the three months to September, helped by the sale of a stake in motorway group Atlantia and lower loan loss charges.

Net profit in the first quarter came in at 301 million euros ($350 million) above an analyst consensus of 260 million euros distributed by the bank. Mediobanca said this reflected a net gain of 89 million euros on the sale of its remaining stake in Atlantia.

Earnings were also boosted by a fall in the amount of money the bank set aside to cover for bad loans - loan loss provisions fell by 40 percent to 55 million euros.

The bank’s CET 1 ratio, a key measure of financial strength, stood at 13.5 percent at the end of September, unchanged from June.

Mediobanca said it saw opportunities - for advisory, capital market and credit management services - arising from new European Central Bank proposals on bad loans, which analysts say are expected to hit Italian banks particularly hard.

$1 = 0.8595 euros Reporting by Silvia Aloisi

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