Mediobanca, the Italian investment bank, has beaten its annual profit target for the second consecutive year after netting €953m ($1.3bn) for the year ending June 2007, driven by increased fee and commission income.

The bank launched a three-year plan in September 2005 in which it proposed to grow profits to €750m annually. For the year to the end of June, it beat that target by 27% and increase year-on-year profits by 11%, despite a 62% fall in net trading income to €83m.