Mediobanca

Summary

Mediobanca Banca di Credito Finanziario S.p.A., together with its subsidiaries, provides various banking products and services in Italy and internationally. The company operates through Wealth Management, Consumer Banking, Corporate and Investment Banking, Principal Investing, and Holding Functions segments. The Wealth Management segment offers asset management and other services to private clients, and affluent and premier customers. The Consumer Banking segment provides a range of consumer credit products comprising personal loans and salary-backed finances; personal loan services for cars and motorcycles, consumer electronics, furniture, and travel; payment services that include credit cards; insurance products; and instalment payment solutions for online purchases. The Corporate and Investment Banking segment offers corporate lending and structured finance services; corporate finance advisory services; capital market services; and specialty finance services, such as factoring and credit management. The Principal Investing segment engages in the equity investment and holding activities. The Holding Functions segment engages in treasury, and asset and liability management operations. The company was founded in 1946 and is headquartered in Milan, Italy.


History

 

Mediobanca was set up to provide medium-term financing for manufacturers and establish a direct relationship between the banking sector and the investment needs of the reorganization of industry after the devastation caused by World War II. The Banking Act of 1936 established a clear separation between short term and medium-to-long term financing and the major banks had opted for specializing in short-term loans and there was the institution that would deal with financing for the flotation of companies that wished to obtain a stock market listing. In addition to granting consolidated loans against certificates of deposit and savings books, Mediobanca developed its activity of placement of bonds and shares issued by Italian companies. The professionalism developed by the bank under the, some would say brilliant, guidance of Enrico Cuccia enabled it to quickly acquire a position of leadership in the field of investment banking in Italy. In the mid-1950s, Mediobanca entered into agreements with important foreign partners that enabled the bank to play a role on the international market and obtained a Stock Exchange listing in 1956.

Since its origins, Mediobanca has operated in collateral areas to the credit market, such as trust management , the promotion of international trade , consumer credit , auditing , leasing operations . The placement of securities of Italian companies on the domestic market and abroad led to the acquisition of small holdings which have increased over time reinvesting part of the profits. They became the bank's main real investment for the protection of its equity. These packages favored the retention of major customers, the most important being Assicurazioni Generali, Montedison, SNIA Viscosa, Pirelli and Fiat. In 1963, together with other banks and financial institutions, Mediobanca led the formation of the first shareholder syndicate to intervene in the capital of a company, Olivetti, with the objective of redefining its strategic purchases on several occasions of Generali shares led to the bank being its largest shareholder . There were numerous, equally important, operations with Montedison, Fiat, SNIA Viscosa and Italcementi. These and other firms operated with Mediobanca were commonly called the ‘Northern Galaxy’.When Mediobanca was set up, the shareholders authorized Enrico Cuccia to operate using his own judgment and he kept the bank free from the political influences that gradually affected IRI, the public entity that controlled the three Italian banks of national interest that were Mediobanca's majority shareholders. 1982 saw the beginning of a period of intense friction with IRI under the presidency of Romano Prodi, when the three banks were instructed to discontinue Mr. Cuccia's mandate. Cuccia resigned as general manager by was elected to the Board by the shareholder Lazard while Mediobanca continued to be managed by two of his trusted aides, Silvio Salteri as CEO and Vincenzo Maranghi, his generally accepted “heir”. In 1988, when Antonio Maccanico took over the presidency, the conflict was settled and the bank was privatized by the setting up of a shareholders’ syndicate with equal representation of banking groups and private groups. On that occasion the position of CEO went to Vincenzo Maranghi and Cuccia accepted his appointment as Honorary President maintaining a symbolic presence in the bank and performing strategic consultancy. After Antonio Maccanico, called to government posts, the presidency went to Francesco Cìngano, who was Mattioli's successor in Banca Commerciale Italiana.

The new banking law passed in 1993, abolished the specialization requirement allowing ordinary banks to enter the medium/long term credit market and generated a series of problems between Mediobanca and its banking partners, which ceased to be the almost exclusive channel for the placement of term deposits and bonds. In the changing context of the financial markets of the early 1990s, Mediobanca evolved by engaging more decisively in investment banking operations, creating a major diversification in the private banking business and expanding its consumer credit area, finally developing an international presence. In the 1990s, it was among the main players in the Italian program of privatization of large state-owned enterprises , also contributing to foreign programs in the United Kingdom, France, Germany and Spain.

Its final and perhaps greatest coup was its decisive role in the 1999 takeover of Telecom Italia by Olivetti. The deal was decided by the narrowest of margins with 51% of shareholders voting in favour of the deal. Under Cuccia's leadership, which lasted until his death in 2000, the bank was widely described as "secretive" despite being publicly traded: meetings with analysts or interviews with the media were not granted.


Mission

We are a business built on people. Since our foundation, we have maintained a client-centric approach, meeting our clients' needs and building trust through everything we do.


Vision

Stable management ensures indepth knowledge of the business environment, which, along with our long-term vision, enables us to implement large-scale, wide-ranging strategic initiatives.


Key Team

Mr. Clemente Rebecchini (Head of the Principal Investing Division and Central Mang.)

Mr. Francisco Bachiller (Exec. Chairman of Corp. & Investment Banking and Co-Head of CIB)

Ms. Jessica Spina (Head of Group Investor Relations & Strategic Corp. Devel.)

Mr. Antonio Guglielmi (Head of CIB Rome & Public Institutions and Head of European Equity Research)

Mr. Adam Bolek (Head of Germany Unit)

Matteo Maralla (Head of Equity Capital Markets Syndicate)

Mr. Ulrich Paefgen (Vice Chairman of Strategic Devel. for Europe)


References
Mediobanca
Leadership team

Mr. Francesco Saverio Vinci (GM & Director)

Emanuele Flappini (Head of Company Financial Reporting)

Products/ Services
Banking, Consumer, Finance, Financial Services
Number of Employees
1,000 - 20,000
Headquarters
Milano, Lombardia, Italy
Established
1946
Company Registration
SEC CIK number: 0001388353
Net Income
500M - 1B
Revenue
Above - 1B
Traded as
BIT:MB
Sun Mar 03 2024
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