Italian banking group Mediobanca has boosted its equity business with the launch of a proprietary trading desk and plans to expand its securities business to New York.
The desk, called equity investments, focuses on European stocks and is run by former UBS analyst Furio Francini. It is part of the group's equity and derivatives unit, run by Francesco Carloni. Alberto Nagel, general manager, speaking at the presentation of Mediobanca's annual results, said the group was set to develop its equities operations with the expansion of Mediobanca Securities "which will soon open in New York". The securities operation was launched in Italy in 2001 to specialise in the Italian market. Nagel introduced a three-year growth plan last year to restore Mediobanca's position as the top investment bank in Italy. The strategy involves selling €800m ($1bn) of shareholdings and spending €2.2bn on acquisitions as well as expanding its activities abroad and increasing capital allocated to wholesale banking by €300m to €2.1bn. Nagel said on Friday the group sold its stake in Ciments Français for €88.1m this year and is preparing to sell its shares in carmaker Ferrari, a transaction he estimated would bring €100m in capital gains. He said: "The first year of the plan was positive â we're not planning to change the targets." Another part of the bank's expansion drive was geographical. It continues to focus on France, Spain and Germany, where it has broadened its lending origination and distribution network. Net profits at Mediobanca's wholesale division rose by three quarters to €467m, powered by a doubling in net trading activity in the 12 months to the end of June. The division saw net profits climb 77% from the €264m recorded a year ago, offsetting a 13% increase in operating costs from €155m to €176m. Net trading activity grew from €100m to €205m. Nagel is expected to be appointed as Mediobanca's chief executive, a position that has been vacant since Vincenzo Maranghi was ousted by shareholders in 2003.
