Mediobanca reports plunge in profits, more write-downs

Profits 78% down, 573 mln euros in write-downs

Mediobanca reports plunge in profits, more write-downs

(ANSA) - Milan, September 20 - Mediobanca reported a dramatic drop in profits Thursday for the past fiscal year, due partly to increased write-downs on its holdings. Milan-based Mediobanca, Italy's main investment bank, reported annual net profits of just under 81 million euro in 2011-2012, a drop of 78% from profits of 369 million euro the previous year. Mediobanca said it will distribute to shareholders a dividend of 5 cents, down from 17 cents the previous fiscal year. The bank also took 573 million euros in write-downs on investments and increased its loan-loss provisions. That included a write-down of 132.7 million euros on its holdings in Italian bank UniCredit, and 113 million euros on its stake in Telco, which controls Telecom Italia. Mediobanca also wrote down 78 million euros in investments in publisher RCS Mediagroup and 141.1 million in write-downs on Greek bonds, It reported that its core Tier 1 capital ratio stood at 11.5%, up slightly from the 11.1% reported at the end of March. Tier 1 capital is, from a regulator's point of view, a very important core measure of a bank's financial strength, weighing an institution's core equity capital against its total risk-weighted assets. ß

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