Published by Global Banking & Finance Review®
Posted on November 5, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleMediobanca's profit dropped 11.8% due to MPS takeover costs, despite stable revenues. The bank's bid for Banca Generali was rejected, impacting its financial strategy.
MILAN (Reuters) -Italian merchant bank Mediobanca on Wednesday reported an 11.8% yearly fall in quarterly net profit, hit by costs tied to its defence against Banca Monte dei Paschi's (MPS) takeover bid, despite steady revenues.
Thanks to the support of two leading Mediobanca shareholders, MPS in September completed its 16-billion-euro ($19 billion) stock‑and‑cash acquisition of Mediobanca.
The takeover by MPS, which was bailed out by the state in 2017 and has been almost fully re-privatised, is the biggest deal so far in a flurry of M&A reshaping Italy's financial sector.
The Milanese lender tried to thwart MPS's hostile offer by bidding for wealth manager Banca Generali, to increase its own size and cost, but shareholders rejected the plan.
Mediobanca reported a net profit of 291 million euros for the three months through September, the last set of earnings under long‑serving Chief Executive Alberto Nagel, who resigned after MPS' successful bid.
The bank booked 45.3 million euros in costs for financial and legal advisers and direct expenses related to the MPS bid and the proposed deal involving Banca Generali, as well as the early termination of long‑term incentive plans for managers.
The July-September period is the first quarter of Mediobanca's financial year which runs from July to June.
To align its reporting schedule with that of its parent company MPS, Mediobanca has called an extraordinary shareholder meeting on December 1 to shift the end of its financial year to December 31 from June 30.
Revenues totalled 868 million euros, broadly in line with the same quarter of last year, thanks to the contribution of the bank's consumer finance and insurance businesses, which offset a decline in wealth management and corporate & investment banking.
($1 = 0.8575 euros)
(Reporting by Gianluca Semeraro; Editing by Valentina Za)
Net profit is the amount of money a company has left after all expenses, taxes, and costs have been subtracted from total revenue. It reflects the company's profitability.
A takeover bid is an offer made by an individual or company to purchase another company, usually at a premium over its current market price, to gain control.
Corporate strategy refers to the overall plan and direction a company takes to achieve its goals, including decisions on mergers, acquisitions, and resource allocation.
Wealth management is a comprehensive service that combines investment management, financial planning, and other financial services to help clients grow and manage their wealth.
Financial advisers are professionals who provide guidance on financial matters, including investments, estate planning, and retirement savings, to help clients achieve their financial goals.
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