MILAN (Reuters) -Italy's Banca Mediolanum expects to exceed its 2023 target on net interest income (NII) after more than doubling the figure in the first quarter and sees net profit "well above" last year's levels, its chief executive said on Wednesday.
The bank, which offers its products and services in Italy and abroad, raised its guidance on NII in February to around 700 million euros ($771 million).
Helped by rising interest rates and the weight of the floating rate component in its credit book and treasury holdings, NII rose 119% year-on-year to 157.7 million euros in the first quarter.
On NII, "we expect something more [than the 2023 target] given trends in interest rates", CEO Massimo Doris told a post-results press briefing, adding that part of the additional revenue would be reinvested in commercial initiatives to acquire more customers.
In the first quarter, Mediolanum's net profit came in at 178.3 million euros, rising 59% from the same period in 2022.
The bank had its best quarter ever in terms of operating margin, which amounted to 228 million euros, 64% higher than in the first quarter of last year, thanks to the contribution of all business lines.
Net fees proved resilient thanks to financial markets' gradual recovery during the period.
($1 = 0.9084 euros)