July 30, 2020 / 11:36 AM / 14 days ago

Mediobanca confirms all targets through 2023 as COVID-19 hits FY profit

MILAN, July 30 (Reuters) - Italian financial group Mediobanca stuck to financial goals on Thursday after reporting a 27% drop in net profit in the fiscal year to June 30 blaming one-off hits linked to the COVID-19 crisis.

Net profit for the 2019/2020 fiscal year came it at 600 million euros ($705 million) compared with an analyst forecast of 587 million in a consensus provided by the bank.

Mediobanca said it would not pay a dividend for the year as recommended by the European Central Bank, which has urged lenders to preserve capital to better cope with the economic fallout of the pandemic.

Mediobanca confirmed all targets under its plan through 2023, including a CET1 ratio of 13.5% by mid-2023, taking into account planned cash dividends, share buybacks and possible acquisitions to strengthen some business lines.

Mediobanca’s CET1 ratio stood at 16.1% as of June 30, one of the highest in Italy. ($1 = 0.8511 euros) (Reporting by Gianluca Semeraro; editing by Valentina Za)

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