February 9, 2018 / 7:18 AM / 3 months ago

UPDATE 1-Mediobanca lifts dividend payout after Q2 beats forecasts

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MILAN, Feb 9 (Reuters) - Italian investment bank Mediobanca raised its dividend guidance on Friday after second-quarter profit beat forecasts on higher net interest income and fees.

Net profit in the three months ended December 2017 came in at 175.4 million euros ($215 million), boosted by its wealth management business. As per estimates provided by the bank, analysts had expected a net profit of 135 million euros.

The bank, which posted a record revenue for the first half, raised its dividend payout guidance to 50 percent from 40 percent.

Mediobanca, the biggest shareholder in Italian insurer Generali, has sold a series of stakes in leading Italian companies to focus on traditional banking.

It plans to sell down its stake in Generali and use the proceeds to boost its wealth management business.

“We could sell Generali shares at the right price to reinvest capital in businesses where we want to grow,” CEO Alberto Nagel said.

The bank said launch of the AIRB model in March to measure capital strength will allow it to save around 5 billion euros in terms of risk weighted assets. Keeping this in mind, the company said its proforma CET1 ratio was 14.3 percent. ($1 = 0.8160 euros) (Reporting by Stephen Jewkes; Editing by Sherry Jacob-Phillips)

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