The sales hit the stock market banks that leave between 2 and 5 percentage points on the ground, much more than the European sector (however down). In the afternoon the worst banking stock is Banco Popolare which loses more than 5% after accounts and with market focus on asset quality and capital ahead of European stress tests, followed by Mediolanum -4,2% and Unicredit -3,85%. Mediobanca yields 3,6% after being suspended downwards. Unicredit, on which the prudent report of Citi analysts weighs (which expects further pressure for the Italian business), lost 3,6%. On the day of the release of the quarterly accounts Intesa Sanpaolo limits losses in the afternoon and loses 2,4%. Even Ubi Banca, the only stock to move in positive territory in the morning, slipped into negative territory. The stock had jumped after the results, despite the decline in profits, were higher than analysts' expectations.
Intesa also today presented the accounts for the third quarter which showed a slightly higher net profit than the consensus. Profits amounted to 218 million euros, down 47,3% on the same period last year but an improvement on the 116 million of the previous quarter. Over the nine months, profits fell by 62,1% to 640 million. The new CEO Carlo Messina (who arrived at the helm of Intesa after the early exit of Cucchiani), in a note on the results, stated that the "distribution of dividends continues to be a priority". “The provisions made so far – he added – are in line with those of last year, in which we disbursed a total of 832 million euros. In any case, the distribution of the dividend remains subject to the external context and to the rules and provisions of the supervisory authorities".
In the conference call with analysts in the afternoon Messina reiterated that Intesa Sanpaolo it is not interested in taking part in any type of consolidation either in Italy or in Europe. Ca' De Sass is working on the next business plan which will be presented in the spring and which is implemented "involving the 94 thousand people in the group" and which will be "focused on the creation of value with the achievement in the medium term of a return higher than the cost of capital for the group and for each business unit”. For the fourth quarter, the bank notes that "it will remain a priority to preserve the sustainability of the results to be achieved. In addition to the income targets, attention will be focused on continuing the actions aimed at strengthening capital solidity and further improving the risk and liquidity profile”. From this point of view, Intesa is interested in the revaluation of Bankitalia shares only if this entails a benefit in terms of better quality capital. In the meantime, the work on the reorganization of the Banca dei Territori has already started. The bank is already working on the simplification of central structures, simplification of the network, simplification of legal entities, simplification of territorial coverage. Intesa Sanpaolo aims to reduce the 3.800 branches by June 2014, with mergers of approximately 1.300 branches, of which 900 have already been completed and a significant reduction in the number of local banks from the current 16. In addition, a reduction to 2 from 7 of the product companies operating in industrial credit, leasing and factoring. At the level of central structures, the number of direct reports to the divisional manager is expected to be reduced from 22 to 6 (excluding the seven regional directors). An operation, as Messina specified in the conference call, which will make a significant contribution not only in terms of reducing costs but also in terms of increasing revenues, with the reallocation of personnel to support activities in contact with customers.
Finally, a new Ltro is probable for Messina even if the manager says he is worried about the fact "that banks could become dependent on this tool".
