Mediobanca Banca di Credito Finanziario, an Italian investment banking group, has announced its intention to create a nondistributable profit reserve, joining the ranks of other Italian banks such as UniCredit and Intesa Sanpaolo. These banks have chosen to set aside funds instead of paying a recently approved windfall tax on bank profits.
In accordance with a law passed by Italy's parliament, Mediobanca's board proposed the establishment of a profit reserve amounting to 210 million euros ($221.9 million). This move highlights the bank's commitment to following the same path as its larger peers in addressing the new tax regulation.
In addition to this strategic decision, Mediobanca also disclosed its financial results for the quarter ending September 30th, which marked the beginning of its fiscal year. The bank reported a significant increase in net profit, with a surge of 34% to EUR351.3 million.
Moreover, Mediobanca shared that its proposal to repurchase shares worth approximately EUR200 million has been approved by the European Central Bank. This demonstrates the bank's determination to strengthen its position and enhance shareholder value.
Overall, Mediobanca's proactive approach towards navigating through the challenges of the windfall tax on bank profits showcases its commitment to prudent financial management and long-term growth.
