Sanpalo agreement convinces investors with accounts that are better than expected and the confirmation of a dividend policy that will remain "at least at the same level as in 2012, with a significant dividend yield at current prices", in the words of the CEO Henry Cucchiani during the conference call with analysts. On the Stock Exchange the stock thus moves into positive territory, +0,40%, despite the fact that the Fste Mib index went into the red in the afternoon, closing down by 0,4%.
A budget that closes a difficult year with a Net income of 1,605 billion against a loss of 8,9 billion in 2011. Results, those of a year ago, however comparable because they are burdened by huge write-downs from goodwill. At a normalized level, net income stands at 1,473 billion against 1,445 billion in 2011. The result of the operation management it is the best in the last five years and pre-tax profit has grown by double digits (+78,8%) despite prudent provisions.
The bank will disconnect like this a dividend for the year just ended of 5 cents for each ordinary share (unchanged) and 6,1 cents for each savings note (a coupon of 5 cents was distributed last year). Which correspond to a dividend yield of 4% for ordinary shares and 5,8% for savings shares. “We have to be reasonable. I think this dividend in these conditions is very good and generous. Let's wait to see the sun before closing the umbrella”, commented Cucchiani to those who asked him about the possibility of improving the dividend in the event of an improvement in the context.
On the other hand analysts have been encouraged by fourth quarter accounts better than their expectations, albeit at a loss. The market feared for a loss exceeding 100 million while the bank filed a -83 million (414 million profit in the third quarter). Cleanliness had an impact on the accounts with the devaluation of the stake in the Telco holding, integration charges and redundancy incentives, the increase in provisions for credit risks and the performance of Hungary and Ukraine.
The bank's capitalization has a core Tier 1 of 11,2%. And liquidity is high: liquid assets of €115 billion and a high availability of eligible assets with central banks, corresponding to liquidity of €67 billion at the end of December 2012, up respectively to €120 billion and €90 billion as at 28 February 2013 Overall, Intesa already complies with the parameters of Basel 3 both in terms of capital and liquidity.
For the future, however, prudence is still the watchword for theformer Italian Allianz manager: Intesa will continue to adopt careful liquidity management, a prudent provisioning policy and a focus on cost containment. “We will continue to be very cautious. At the moment, growth is not a priority”, Cucchiani said on the expected evolution of loans in 2013. Just as an increase in the cost of risk cannot be ruled out: “The context is too uncertain. I don't want to be a pessimist, but I can't rule it out."
However, Intesa does not expect any "dramatic" worsening either for Italy or for the Eurozone, which can count on some strong points in terms of fundamentals. Cucchiani spoke of "solid macroeconomic fundamentals" for the Eurozone and of a "careful and effective" ECB leadership, which contributed to the "disappearance of fears about a break-up of the euro". The debt/GDP ratio is the only "ugly" indicator for Italy and, he concluded, it is reasonable to expect that "reasonable political solutions can and should be found".
Attachments: Intesa Sanpaolo FY2012 Results.pdf
