Banco Mediolanum has announced its plans to sell part of its German subsidiary due to the slow growth the Italian bank is experiencing in the region.
The company, which has not disclosed yet the stake it plans to sell, has attributed this slow growth partly to the high costs it had to assume when it launched the bank in Germany. Banco Mediolanum’s chairman Massimo Doris, says: “When we launched the German subsidiary, we should have started with a financial advisory network instead of with the launch of a bank. In that way, we would have saved money.”
Banco Mediolanum has also said it wants to focus in Spain and Italy and has unveiled it will not launch offices in any other countries.
The bank’s profits in Spain amounted to €3m in the first quarter of 2018, down year-on-year when it gained almost €7m, Banco Mediolanum announced.
Globally Banco Mediolanum gained almost €60m in Q1 2018, also down compared with the same period a year earlier when it amounted to some €85m.
“Each family banker in Spain has around 100 clients against the 120 clients on average from Italy. From the total amount of 5,219 financial advisers Banco Mediolanum has globally, 913 are in Spain, where we believe there is room for 5,000 family bankers in the future,” Doris reckoned.