Mediobanca, Monte dei Paschi Report Strong Profits Amid Acquisition Rivalry

Mediobanca reported strong financial results for the first nine months of its fiscal year, posting a €1 billion net profit driven by broad revenue growth across its core businesses, including wealth management, corporate and investment banking, and consumer finance. The bank's net profit for the first quarter stood at approximately €334 million, exceeding analyst expectations, while its cost of risk continued to decline. Mediobanca is actively pursuing the acquisition of wealth manager Banca Generali to increase its wealth management revenue share and to counter a hostile takeover bid from rival Monte dei Paschi di Siena (MPS). Meanwhile, MPS also reported a 24% rise in first-quarter net profit to €413 million, surpassing forecasts, with stable revenues and improved fees, as it seeks to consolidate its position in the Italian banking sector. Both banks’ strong quarterly performances have intensified investor focus on their respective acquisition strategies amid a wave of consolidation in Italian finance. Mediobanca has highlighted potential risks associated with a merger involving MPS and Banca Generali, reflecting ongoing competitive dynamics in the sector.