Sharp increase in net profit for Intesa Sanpaolo which decides to confirm the rich dividend envisaged in the 2021 business plan.
In detail, the bank closed the first six months of 2018 with a Net income equal to 2,179 billion euros, an increase of 25,4% compared to the 1,73 billion recorded in the same period of 2017. The figure does not take into account the public cash contribution of 3,5 billion received for the purchase of the assets of Popolare of Vicenza and Veneto Banca. At this juncture it must be taken into account that, including the net capital gain for the accounting of the partnership with Intrum, the half-yearly profit reaches 2,58 billion euros, i.e. 68% of the 3,8 billion profit that the institute led by Carlo Messina confirms its intention to build in 2018.
Taking into consideration the only second quarter, the profit instead amounts to 927 million euros, exceeding by 7,5% compared to the 862 million expected by analysts. The results are "fully in line with the 2018-2021 business plan", writes Intesa Sanpaolo in a note.
In the months April-May June, profit is not the only figure to have beaten the consensus: the intermediation margin in fact stood at 4,6 billion against the 4,4 billion expected. “The result is the result of the positive trend of all revenue components”, explains the bank.
As regards the six-month period, considering also the numbers of the former Veneto banks in the first six months of the previous year, i operating income net income grew by 6,1% to 9,4 billion, with net interest at 3,7 billion (-2%) and net commissions at 4 billion (+2,1%). Down 3,4% i operating costs, which drop to 4,6 billion euro for a cost/income ratio reduced to 48,9%. THEinsurance business it has a result of 575 million (+9,9%) and income from trading has almost doubled, reaching 1,1 billion. As for capital solidity, the coefficient Cet1 it is 13,6% pro forma when fully loaded, taking into account 1,85 billion in dividends accrued in the half year.
Moving on to one of the most delicate chapters for our banking institutions, in the first six months of 2018 Intesa reduced the non-performing loans. Compared to September 2015, the reduction is approximately 15 billion, gross of value adjustments (excluding the sale of non-performing loans signed with Intrum, respectively approximately 13 billion and approximately 26 billion including it). The stock of non-performing loans – which at the end of the half-year no longer included non-performing loans sold to Intrum – fell by 2018% in June 24,2 gross of value adjustments compared to December 2017, "realizing in the first half of 2018 already 50% of the reduction target envisaged in the Business Plan for 2018-2021” highlights the bank. The stock instead decreased by 18,4% net of adjustments, compared to the figure as at 31 December 2017.
One of the most interesting topics for the bank's shareholders concerns the dividend: Intesa Sanpaolo confirmed for the 2018 financial year its intention to distribute a cash dividend with a payout equal to "85% of the net result". against positive prospects despite the slowdown in the economy. “Net income is expected to increase in 2018 thanks to increased revenues, continued cost management and a decline in the cost of risk.”
"We are particularly satisfied with the results: the bank confirms itself as one of the most solid and profitable in Europe and at the same time is capable of giving life to the largest project of economic inclusion and the fight against poverty in the country - declared the CEO Charles Messina -. The first six months closed with a net profit of 2,2 billion, the best result since 2008”.
Messina then highlighted the role of "bank at the service of the relaunch of the country, also thanks to the ability to work alongside all companies in temporary difficulty: in the six months alone we helped around 8.000 companies to return to performing status, thus safeguarding 40.000 work (since 2014 there are 80.000 companies, for 400 jobs). In the six months of 2018, medium and long-term disbursements exceeded 25 billion. We are also protagonists in social inclusion in Italy, with 2018 loans to non-profit entities estimated at 350 million, and existing projects that already allow us to distribute 8.200 meals a day, 3.000 beds a month, 3.000 medicines a month".
Finally, a word on savings shares: the bank has decided to proceed with the repayment, with the purchase by the company, of the approximately 15 million savings shares subject to withdrawal following their conversion into ordinary shares and which remained unopted. The institute will therefore not proceed with the placement on the market. The last trading day of Intesa Sanpaolo savings securities on the Stock Exchange will be 6 August.
Despite the more than positive results and higher than market expectations, a Business Square the profit-taking on the stock continues, after the run made in the last session of July. At 16.50 the shares lost 3,7%. Messina himself intervened on the matter during the conference call, declaring that "the reaction of the Stock Exchange is largely due to yesterday's unexpected rise".