The Board of Directors of Banca IMI, the investment bank of the Intesa Sanpaolo Group led by the Chief Executive Officer Mauro Micillo and the General Manager Massimo Mocio, has approved the individual and consolidated final balances as at 30 September 2019, from which it emerges that in the first nine months of this year the milestone of one billion net profits is well exceeded, unprecedented performance in the company's history. The consolidated net result, at 1.117 million euros, shows itself an increase of over 85% compared to 602 million as at 30 September 2018 thanks to the trend in revenues, characterized by a robust level of net interest – progressively growing since the beginning of the year (+48,2% compared to the comparative period) and by profits from financial assets which actually doubled (+97%).
Revenues booked in 3Q19 – at €731 million – are once again confirmed at high levels and lead the total operating income for the nine months at 2.089 million euros (+57,6%, up by 763 million). The activities of Capital Markets for 1.814 million euros and Investment Banking and Structured Finance for 275 million euros contributed to its formation. Thanks to an operating cost structure under control (at 343 million in the nine months, down by -0,8%) the effect of the higher revenues is transferred entirely to the operating margin, which rises to 1.745 million euro (+78,2% compared to 30 September 2018), with a remarkable cost/income ratio of 16,4% compared to the previous 26,1%.
Provisions, net value adjustments and other charges account for a total of 77 million euros; amount that includes 59 million in contributions paid for 2019 to the Single European and Italian Resolution Funds. to economic performance the growth in total balance sheet assets contributed, which rose to 216 billion from €165 billion as at 31 December 2018. In addition to the organic growth of securities portfolios in the banking book, with over €9 billion of new investments in 3Q19, there is an increase in structured finance cash loans, with +€1,5 billion in production net since the end of the previous year. The expansion in the assets of the banking book together with the increase in the requirements for market risks bring the Risk Weighted Assets to 34 billion euro at the end of the quarter. Own funds for supervisory purposes amounted to €5.228 million; the amount does not take into account the result for the period in any way.
In their determination, for the second year and in line with the approach adopted by the Intesa Sanpaolo group, the company availed itself of the option to mitigate the impact of the introduction of IFRS9 for the portion of impairment accounted for at the time of First Time Adoption of the new standard (according to the so-called "static" approach). The Common Equity Tier 1 Ratio, the Total Capital Ratio and the Leverage Ratio thus determined respectively to 10,58%, 15,37% and 4,25%. In compliance with the provisions of Regulation (EU) 2017/2395 of 12 December 2017, information is provided below on own funds for supervisory purposes and on Banca IMI's prudential ratios with and in the absence of application of the transitional rules envisaged by the Regulation.
