To understand the origins of this record, wee need to look back to 2017. That year, the Italian state was forced into an emergency recapitalization of Monte dei Paschi after it failed European stress tests, liquidated two bankrupt Venetian banks whose healthy assets were snapped up by Intesa for a symbolic euro, while UniCredit raised €13bn on the markets to clean up its balance sheet. At the time, Italian finance was the weak link of the eurozone.
Nine years later, the tables have turned. UniCredit attempted to acquire Commerzbank before eventually having to abandon the operation. Although Berlin said no and refused to sell its shares, the mere fact that an Italian bank was eyeing one of Germany's largest financial institutions speaks volumes about the progress made. MPS, long in distress, took control of Mediobanca. Intesa now wants to acquire MPS, and thus indirectly Mediobanca. The banks that were being saved with billions yesterday are the ones launching offensives today. And since they represent 37% of the index's market capitalization, their recovery has lifted the entire index.
A Bank-Driven Record
UniCredit and Intesa Sanpaolo hold the top two spots, and banks and insurance companies represent over half of the top 10. It's difficult to find such a high financial concentration amongst major European indices.
The heatmap of the Xtrackers FTSE MIB ETF tells the same story. Over three years, banking services have surged 237%. Industrial goods have performed even better, rising over 300%, although at 8% of the index, they lack the weight to carry the record on their own.
Source: MarketScreener, Heatmap
Milan Outpaces Frankfurt and Paris
Source: MarketScreener, comparative index chart
This architecture also explains why Milan has pulled ahead. Since August 2025, the MIB has significantly outperformed the DAX and the CAC 40. Finance has soared across all three indices, up more than 180% over three years. The difference lies in the weighting. In Paris, the heaviest sector is luxury, which has fallen 22% over three years, weighing down the entire index. In Frankfurt, industry and insurance carry the DAX, not banks. In Milan, the opposite is true: banking is the primary sector of the market, and it is the one taking flight.
However, there is a trade-off to consider. This record is not broad-based. It relies on banks, energy, cables, and defense, while the automotive, healthcare, and food sectors continue to lag. Milan is breaking records not because all of listed Italy is booming, but because its heavy hitters are all pulling in the same direction.
This is both its strength and its weakness. When an index relies so heavily on its banks and a few heavy industrial sectors, it can accelerate quickly. But if the banks stumble, it will have fewer safety nets than a more diversified index.
