Company Ambitions and Network Expansion
Mediolanum is planning a substantial expansion of its nationwide network, aiming to nearly double its advisory footprint by 2025. Known internally as family bankers, these financial advisors are the backbone of the bank’s growth strategy. The current count stands at 1,620, with a target of about 3,000 by 2025. If achieved, the bank would serve roughly 390,000 customers, up from 208,710 customers served in 2022, reflecting a strong forward trajectory from pre pandemic levels in 2019.
The bank acquired a finance-related asset two decades ago and reported €29.97 million in Spain in the most recent year, more than doubling the prior period. A strategic shift also aims to increase the share of customers who use Mediolanum as their primary bank from 46% to 50%. Since entering the lending and mortgage space in 2015 and expanding into life and general insurance through partnerships with Generali and Mapfre, Mediolanum now offers a comprehensive banking suite for clients in 2019.
Key leadership figures include Minister Carlos Tusquets, trusted adviser Igor Garzesi, and the commercial director who are collectively evaluating how best to align advisory models with customers throughout their financial lifecycle. A major objective for the near term is to close 2023 with €10 billion in assets under management, up from €8.9 billion in 2022, with a long-range goal of reaching €13 billion by 2025.
Deposit Offerings and Investment Philosophy
Compared with larger banks, Mediolanum offers attractive deposit options. New clients who contribute at least €3,000,000 for payroll management can access a 3% quarterly yield and a 4% semiannual yield. The bank emphasizes that its product is a tool to support client goals rather than a finish line. The focus is on understanding each client’s risk profile and designing tailored investment plans that align with long-term objectives.
In 2017, Mediolanum relocated its headquarters to Valencia while maintaining a financial center in Barcelona, a strategic move that coincided with significant political events in Spain. The default rate remains exceptionally low at 0.48%, notably below national averages. The loan portfolio stood at €1,208 million last year, marking a gain of 107% over three years. The total customer base climbed to 208,710 in the previous year, a 12% rise from 2021.
During the review of 2022 results, the bank posted a profit of €29.97 million, up 117% from the prior year, with a return on equity of 17.8% and a liquidity ratio near 300%. Both Tusquets and Garzesi anticipate ongoing rate increases from the European Central Bank as inflation remains a central concern, particularly in the context of the Ukraine conflict. They note that higher rates and Euribor are expected to persist until inflation stabilizes around the 2% target, shaping the macroeconomic environment.
Additionally, the leadership stressed that it is increasingly inevitable for banks to begin returning deposits to customers as markets adjust to the new reality. This transition is viewed as a necessary step toward restoring stability and ensuring sustainable growth for lending and deposit activities alike.