Banca Mediolanum: High Dividend Yield And Countercyclical Revenues

Summary

• Banca Mediolanum's core strength is its asset management focus, with resilient AUM growth and a unique, countercyclical investment strategy that stabilizes revenues.
• The bank's strong client relationships and automated investment plans have driven steady net inflows, even during market downturns, supporting sustainable dividend payouts.
• Traditional lending is reviving as rates fall, but the main earnings driver remains commissions; the bank boasts a robust CET1 ratio and low loan/deposit ratio.
• Despite macro risks, I see up to 30% upside potential and a sustainable 5%+ dividend yield, making BNCDY a buy for income and growth investors.

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Banca Mediolanum (OTCPK:BNCDY) is an Italian bank founded in 1982 in Basiglio. Like all Italian banks, it has performed incredibly well in recent years, and in this article, we will see whether this trend is sustainable or

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.