Mediolanum posts fall in net profits for 2011

Italian asset manager Mediolanum has posted a 70% drop in its net profit for 2011, according to its annual report for 2011.

Mediolanum, Italy’s fourth largest asset manager, said its net profit last year was €67m after a loss of €85m on its Greek bond portfolio and a write-down of €41m on its stake in Mediobanca, a Milan-based investment bank.

The report said: “Excluding these non-recurring items, net income totals €193m, a decrease of 16% with respect to 2010.” The report added that without other temporary losses, “net income in 2011 would have been greater than in the previous year”.

Assets under administration total €46.2bn, an increase of 1% with respect to December 31, 2010, itself a company record. Consolidated group net inflows were positive at €2.7bn, the report said. Mediolanum has 4,507 brokers, servicing more than one million customers.

According to data from Assogestioni, the Italian fund management trade body, Mediolanum has assets under management of €41bn, equivalent to a 4.4% share of the funds market. Last month, Mediolanum reported net inflows of €104.1m. 

Mediolanum surprised the markets by announcing that it would pay a dividend on 2011 results of 11 cents per share. Analysts had expected that the group would avoided putting undue stress on its balance sheet. In November, the group paid an interim dividend of 7 cents per share.

Gruppo Mediolanum owns Bankhaus August Lenz & Co in Munich and Gamax Management AG in Luxembourg, as well as other fund management and insurance units in Dublin and Barcelona.

The report said: “The business in Spain closed the year with a profit of €3.9m compared to €0.6m registered in 2010; the business in Germany closed the year with a net loss of €11.5m, compared to a loss of €11.4m in 2010; assets under administration of the foreign banking subsidiaries totalled €1.9bn, down 2% with respect to December 31, 2010.”

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