Mediobanca

Mediobanca is an Italian investment bank established after the Second World War. Its headquarters are situated in Milan while the total yearly revenue of the bank is over €1.735 billion. Nearly 3000 employees service the clients of Mediobanca, suiting their needs in terms of investment management, retail and private banking, etc. In 1999, the bank took over Telecom Italia which was considered a profitable investment.

The bank offers products and services divided in three main groups: corporate& investment banking, principal investment, and retail& private Banking.

The first group combines three threads: lending, capital markets, and advisory services. In the lending area, the body focuses on lending and structured finance (transactions with a great degree of financial leverage, buying/selling on the secondary market); leasing, and export finance (supporting Italian exporters of goods and services). The bank also offers credit analysis and advises about rating.

The capital market area is represented by the bank’s trading activities on the primary and secondary markets: equities, fixed income securities, credit, foreign exchange, interest and exchange rate derivatives. The bank’s employees in the advisory sector handle liabilities restructuring, mergers and acquisitions, joint ventures, corporate restructuring, company valuations, block shareholder agreements, etc.

As far as Principal Investing is concerned, this area includes stakes in corporates and Mediobanca`s assistance in their improvement planning. The focus here is on equity investment portfolio (in the insurance, publishing-media, and telecom sectors); merchant banking which involves a program of direct investment in risk capital of mid-sized companies; and private equity which covers investment in funds and promotion of ventures. The bank also offers assistance in debt restructuring, industrial relaunch, and participation in the company’s plans for recovery/growth.

The structure of the Retail&Private Banking complex consists of two off-shores: CMB and Banca Esperia, one consumer credit company: Compass, and one retail banking: CheBanka!

Consumer Credit focuses on sales at commercial outlets in the automotive industry, partnership with banks, and insurances. Credit management, on the other hand, involves covering the entire credit cycle, e.g. recovery of debt/trade receivables via legal action or out-of-court settlements. Factoring acquires non-performing accounts that are non-recoursed.

CheBanka! deals with retail banking by offering to its clients deposits of over € 6bn. Private banking is introduced through Compagnie Monegasque de Banque and Banca Esperia – subsidiaries of the Mediobanca Group. The sector focuses on lending loans, asset management, portfolio management, advisory and financial services.

Mediobanca also provides fiduciary services such as administration of equity investments, investments in market security, and services for issuers. The research area is covered by the bank’s own Research Department, a separate unit conducting economic and financial research on the markets and various companies. In addition, the Mediobanca Industrial Research provides advisory services geared toward trading on the secondary and primary markets.

Commercial Banks Guide > Mediobanca