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Alberto Nagel on Next Generation EU and the PNRR


Alberto Nagel on Next Generation EU and PNRR: a gamechanger for Italy’s economic growth

Alberto Nagel, CEO of Mediobanca, spoke on the Next Generation EU fund and the PNNR, in an interview with the Financial Times.

According to the CEO of Mediobanca, Italy must proceed quickly by implementing important structural reforms, spending resources well and avoiding the risks of statism, favoring a truly business-friendly ecosystem.

In an interview with the Financial Times, Alberto Nagel explains in fact that reforms and the implementation of the PNRR must proceed in order for Italy to be internationally attractive and “The recovery fund can be a gamechanger in terms of further economic growth, – says Alberto Nagel – which is particularly significant for a indebted country. “

On the many industrial and financial matches open at this moment, Alberto Nagel invited us to look up and look at what is happening on the international markets. On the list of the Board of Directors, to give an example at the center of the controversy carried out by the rebel pact members in Assicurazioni Generali, the numbers speak for themselves: 45 of the 50 companies making up the Euro Stoxx 50 index, the index that brings together the 50 European companies with the greatest capitalization, they renew their top management through a list presented by the outgoing board of directors. An observation that takes on clearer contours if we consider that out of 5 companies that do not yet adopt this practice, 3 are Italian.

Alberto Nagel and corporate governance in Italy

In light of the aforementioned data, reading Alberto Nagel’s words is simple: in terms of corporate governance, Italy must progress towards the best practices of international markets if it does not want to be penalized by the choices of international investors and Generali is no exception.

As regards Mediobanca, CEO Alberto Nagel stated that “Investing in Generali makes an appreciable contribution to our financial objectives and has a return that is significantly higher than our cost of capital“. With regard to the tensions on governance that are currently affecting some Italian corporate matches, Nagel then added: “There are a number of important upcoming decisions that will be a test for the maturity of Italian capitalism. It is of fundamental importance that Italy catches up with the governance practices desired by international markets to make the country more attractive for investments “.

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Alberto Nagel and Mediobanca’s transformation and innovation

The article published in the Financial Times on Alberto Nagel also recalled how the CEO has the merit of having led the transformation and innovation of Mediobanca in recent years, reducing cross-holdings and developing the wealth management that has played an important role. in pushing revenues to a record € 2.6 billion (June 2021) by increasing commission income.

Income that in the past came from equity investments and from the business generated with the bank’s shareholder entrepreneurial families and that today Mediobanca generates on the market thanks to the diversification of the business into three specialized segments such as:

  • Corporate & Investment Banking;
  • Wealth Management;
  • Consumer banking.

A model, the one impressed by Alberto Nagel in Mediobanca, promoted by analysts who maintain “BUY” recommendations on Mediobanca: “We forecast Mediobanca to show higher revenues growth vs. Italian peers, thanks to sustained fee income, and more resilient Net Interes Income ”says analyst Azzurra Guelfi (Citigroup); a judgment shared by Alberto Cordara of Banck of America: “Mediobanca combines a low-risk balance sheet, an inorganic growth prospect, thanks to bolt-on operations made possible by excess capital and the remuneration of shareholders through the redistribution of dividends.

What remains at home in Piazzetta Cuccia despite the evolution of the business is the understatement of its founder and Nagel has no doubts about this: “confident that Mediobanca’s sober approach is still the best choice in today’s world“.

Alberto Nagel, Mediobanca and ESG issues

Mediobanca’s growing commitment to ESG issues is also part of the process of transformation of Mediobanca promoted by Alberto Nagel. A focus that finds concrete application with the integration of environmental, social and governance objectives into the Group’s strategic plan.

Today’s challenge is to integrate ESG criteria into business models”- Alberto Nagel underlined opening the event“ Beyond Esg & Sustainability – A new strategic direction ”promoted by the bank at the end of November dedicated to the study of ESG factors as drivers of corporate strategies and the capital market.

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Nagel then added: “In the Group Strategic Plan to 2023, we shared various sustainability objectives with the aim of contributing to the achievement of six of the seventeen macro-objectives for the development of sustainability promoted by the United Nations“.

An approach that Citigroup analyst Azzurra Guelfi judged very positively: “Mediobanca started an ESG journey several years ago, and despite its smaller scale vs. many peers, its efforts on ESG disclosure, transparency and policy are really compelling“.

The issues Esg – Nagel added again on the occasion of the ESG event – they must not be perceived as an obligation, but as an opportunity capable of generating value for all our stakeholders. We have adopted a very strict ESG policy at group level, with the aim of defining structured guidelines for the integration of ESG criteria in the various activities of the group, from financing, to investments of own funds up to consultancy activities for clients. . We have a social duty to support the transition to a more sustainable economic model – he concluded – At the same time we are aware of the importance of ESg issues for the long-term performance of our customers. By supporting their commitment to ESG risk management, we are also investing in the resilience of our portfolio“.

Who is Alberto Nagel, biography of Mediobanca’s CEO

Alberto Nagel graduated in Business Administration from Bocconi University in 1990 and immediately after graduating he was hired by Mediobanca where he began his professional career and in 2008 he became CEO.

During his career Alberto Nagel has followed the Italian privatizations of Enel, BNL, Finmeccanica, followed by the Mediobanca group as well as some of the largest Italian M&A transactions; Tender Offer of Credito Italiano on Credito Romagnolo, Olivetti on Telecom Italia and Generali on INA.

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