To put it in the words of Charles Messina, That of Intesa Sanpaolo it was "the best year", exceeding, two years early, the targets set for 2025. Ca de Sass closed 2023 with a net profit growing by 76,4% to 7,7 billion, from 4,3 in 2022 and compared to the 6,5 billion expected in 2025. "Considering also the 300 million invested in social issues in 2023, the profit reaches 8 billion", specifies the top manager. The forecasts for 2024 and 2025 are equally promising. “The implementation of the business plan is progressing at full speed and key industrial initiatives are well underway,” Messina added.
Undoubtedly, the ten rate increases during 2023 have left their mark, leading the cost of money to exceed 4% (the last change dates back to last September). But apart from this, Intesa's balance sheet is entirely, or almost entirely, in the name of the most.
Messina: “Significant cash dividend, we decide on buybacks year by year”
“Our bank is the first in Europe in terms of dividend yield (at 12%),” said the banker. This confirms the bank's commitment to its shareholders, which will not be lacking this year either. “The proposal to the next meeting will be 5,4 billion euros in dividends, to which is added the intention to carry out a buyback equal to 55 hundredths of a point of Cet1 Ratio to be started in June 2024, once approved by the ECB". Furthermore, the institute will decide "year by year" on any excess capital distributions and in particular every year it will establish the methods and amounts of any buybacks. “There is no need to change this approach for the moment,” he concluded.
Messina underlined that approximately 40% of the dividends will be allocated to Italian families and shareholder foundations, allowing important social interventions. “The medium and long-term credit provided in Italy in 2023 exceeds 40 billion euros and the companies supported by us in returning from temporary difficulties to normal operations are 3.600 in the twelve months, with benefits in safeguarding jobs”. The credit institution expects that the increase in net interest, net commissions and the result of the insurance activity within the framework of the Wealth Management.
Messina: “Net interest expected to grow also in 2024”
As for 2023, the net interest – driven by the ECB's restrictive monetary policy – recorded an increase of 54,2% to 14.646 million euros, with revenues rising by 17,2% to 25,14 billion. And "further growth is expected for 2024 also thanks to a greater contribution from the hedging of sight items". Net commissions instead amounted to 8.558 million euros. Furthermore, it stock of non-performing loans it fell by 5,4 billion, confirming its status as a "zero NPL bank".
Messina highlighted Intesa Sanpaolo's unique position for revenue growth in Wealth Management, Protection & Advisory, even in a context of decreasing interest rates. “In any scenario – he explained – our revenues, if rates remain in the 3% range, will continue to grow. And in the meantime we are also working on the basis of costs. The only areas in which we see an increase is the technological part, with the investments we are making."
Messina: “M&A? Unfortunately we cannot look to Italy"
“The perfect playing field for us is Italy where we have already demonstrated that we are able to carry out operations that create value for shareholders, employees, territories – said the CEO -, but we have a problem linked to the size of the bank and to market shares". As for possible foreign objectives, Messina excludes it: “Outside Italy today we have no possible targets. The sector of interest is Wealth Management, but i prices are very high, goodwill exists and we would not be in a position to create value for our investors. Today it is only theory, totally unimaginable due to synergies that cannot be achieved, because the Banking Union does not exist, because many governments would make this path impossible to achieve". Messina also recalled that Intesa has already internally identified 100 billion in assets that can be transformed into Wealth Management and this "is worth more than any acquisition we could think of making in the next year".
Messina: “Of course I will accept a next mandate”
Finally, Messina announced his intention to stay CEO for the next few years. “I will remain CEO for the next few years, subject to shareholder approval – concluded the CEO -. It is my firm intention. I will accept the next term. Also to complete this business plan and do the next one. And at the same time I will work to have young managers to strengthen the solidity of the bank." The current mandate of Intesa Sanpaolo's top management will expire with the budget meeting in spring 2025.
Messina: “It will be difficult to change president in 2025”
"I think that Francesco Profumo is a figure who can take on any type of top responsibility in our country, but for Intesa Sanpaolo I believe that Gian Maria (Gros-Pietro) is doing an excellent job as president of this bank." This is how the CEO of Intesa responded to a question on renewal of the institute's top management in 2025. “In the next deadline – he explained – approximately 50% of the directors will lose the independence requirements and will not be able to be renewed, including all the presidents of the committees. In such a situation, talking about a potential change in the president could expose the bank to operational risk." Messina started by saying that naturally the last word on the bank's top management will be up to the shareholders and that in any case "I will do" everything to ensure that "Profumo has important positions everywhere".
