Bloomberg News

Mediobanca First-Quarter Profit Falls on Writedowns, Trading

October 28, 2011

Oct. 28 (Bloomberg) -- Mediobanca SpA, Italy’s biggest publicly traded investment bank, said first-quarter profit fell 56 percent, hurt by writedowns of Greek bonds and trading losses.

Net income declined to 56.8 million euros ($81 million) in the three months ended Sept. 30 from 127.6 million euros a year earlier, the Milan-based bank said in a statement today. Writedowns of Greek bonds totaled 44 million euros.

Chief Executive Officer Alberto Nagel, who is expected to be confirmed at today’s annual shareholders’ meeting, is broadening the bank’s retail division to boost profitability.

“Estimates for the current financial year continue to be strongly affected by the impact of the market crisis on financial asset valuations,” the bank in the statement.

The company’s core Tier 1 capital ratio, a key measure of financial strength, declined to 11.1 percent at the end of September from 11.2 percent at the end of June, confirming Mediobanca as one of the best-capitalized lenders in the country.

Net interest income rose 8 percent to 281.8 million euros, while trading income swung to a loss of 12 million euros.

--With assistance from Francesca Cinelli in Milan. Editors: Dan Liefgreen, Stephen Taylor

To contact the reporter on this story: Sonia Sirletti in Milan at

To contact the editor responsible for this story: Frank Connelly at

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