Banca Mediolanum S.p.A.

Strong profitability & efficiency (records for 9M): Net income EUR 843.3m (+16% YoY), the highest ever for a 9-month period. Operating margin ~EUR 1.06bn (+18% YoY) and contribution margin EUR 1.76bn (+13%). Costs rose only slightly >6% YoY while revenues grew faster → cost/income improved to 35.1% vs 37.6% (end-23). Cost of risk ~20 bps, consistent with expectations/credit quality. - Good: Operating leverage and contained credit losses. - Surprising/important: Cost/income improvement despite continued investment.

Growth drivers: strong inflows, deposits/interest income, and recurring revenues: Total net inflows >EUR 9.5bn (+17% YoY). Managed asset net inflows EUR 7.24bn (+10% YoY); Q3 was the strongest quarter ever. Total AUM EUR 170.6bn (+9% YTD; +13% YoY); credit book EUR 20.2bn (+13% YoY). Net interest income ~EUR 724m (+24% YoY) supported by a larger, more cost-efficient funding base and active securities/funding management. - Good: Inflows are improving the quality/visibility of future recurring fee revenues. - Risk to watch: Performance fee volatility (see below).

Earnings include performance-fee volatility (not core, but meaningful): Non-recurring items ~EUR 95m (+17% YoY). Performance fees crystallized at end-Sept: ~EUR 90m vs EUR 63m prior year (also noted: accumulated but not crystallized performance fees as of Nov 6: ~EUR 206m). - Good: Additional earnings power when markets perform. - Bad/negative: If markets slow or liquidity/auto-call dynamics change, performance fees (and potentially “special dividend” expectations) may normalize.