Investing.com — Shares of Mediobanca (BIT:) were down 8% on Tuesday following its first-quarter results, which posted a slight revenue miss.
The Italian bank reported total revenues of €865 million, which was 2% lower than consensus forecasts. Net profit for the quarter stood at €330 million, slightly exceeding consensus expectations.
Barclays (LON:) analysts noted that the revenue miss stemmed primarily from weaker-than-expected fee income, which fell 17% quarter-on-quarter and was 4% below their forecast.
The decline in fees was particularly more in the Corporate and Investment Banking segment, where activity slowed following a strong fourth quarter.
Wealth Management, although resilient given the seasonal context, also contributed to the softer fee performance.
Despite these results, Mediobanca’s management reaffirmed its full-year guidance. However, Barclays flagged a subtle shift in the company’s language, now indicating “moderate” revenue growth instead of the previously stated “growth.”
This tempered outlook on revenues coincides with an improved forecast for risk-weighted assets, which are now expected to decline slightly year-on-year.
Barclays maintains its “equal weight” rating on Mediobanca, with a price target of €16.
The brokerage emphasized that while the bank’s fundamentals remain solid, the mixed results may weigh on investor sentiment in the short term, particularly in a volatile market environment.