Mediobanca Shares Drop on Revenue Miss

Shares of Mediobanca (BIT:MDBI) declined by 8% on Tuesday after the release of first-quarter results that showed a slight revenue miss.

The Italian bank reported total revenues of €865 million, which were 2% lower than consensus forecasts. However, net profit for the quarter reached €330 million, slightly exceeding expectations.

Analysts at Barclays (LON:BARC) highlighted that the revenue shortfall was largely due to weaker-than-expected fee income, which fell 17% quarter-on-quarter and was 4% below projections.

The decline in fees was more pronounced in the Corporate and Investment Banking segment, which experienced a slowdown after a strong fourth quarter. While Wealth Management showed resilience considering seasonal factors, it also contributed to the weaker fee performance.

Despite these results, Mediobanca’s management reaffirmed its full-year guidance. Nonetheless, Barclays noted a subtle change in the company’s language, shifting from “growth” to “moderate” revenue growth.

This revised revenue outlook coincides with a slightly improved forecast for risk-weighted assets, which are now expected to decline year-on-year.

Barclays maintains an “equal weight” rating for Mediobanca, setting a price target of €16. The brokerage emphasized that while the bank's fundamentals appear solid, these mixed results could dampen investor sentiment in the short term, especially in a volatile market environment.