Mediobanca shares slip on weaker-than-expected Q1

Investing.com -- Shares of Mediobanca (BIT:MDBI) were down 8% on Tuesday following its first-quarter results, which posted a slight revenue miss.

The Italian bank reported total revenues of €865 million, which was 2% lower than consensus forecasts. Net profit for the quarter stood at €330 million, slightly exceeding consensus expectations.

Barclays (LON:BARC) analysts noted that the revenue miss stemmed primarily from weaker-than-expected fee income, which fell 17% quarter-on-quarter and was 4% below their forecast. 

The decline in fees was particularly more in the Corporate and Investment Banking segment, where activity slowed following a strong fourth quarter. 

Wealth Management, although resilient given the seasonal context, also contributed to the softer fee performance.

Despite these results, Mediobanca’s management reaffirmed its full-year guidance. However, Barclays flagged a subtle shift in the company’s language, now indicating “moderate” revenue growth instead of the previously stated “growth.” 

This tempered outlook on revenues coincides with an improved forecast for risk-weighted assets, which are now expected to decline slightly year-on-year.

Barclays maintains its “equal weight” rating on Mediobanca, with a price target of €16. 

The brokerage emphasized that while the bank’s fundamentals remain solid, the mixed results may weigh on investor sentiment in the short term, particularly in a volatile market environment.