Intesa Sanpaolo, back from the triumph of the takeover bid on Ubi Banca, confirms its state of health. Despite the difficult context caused by Covid, to which the bank has contributed to the management of the emergency with donations of over 100 million and various initiatives to support businesses and households, Intesa Sanpaolo managed to improve profit in the first half, with a +13,2% compared to the first half of 2019. In fact, consolidated net profit rose from 2,26 billion to 2,56 billion euros and represents 86% of the target minimum profit for the current yearequal to 3 billion.
A figure that the banking group therefore intends to confirm, as well as the target of 3,5 billion in 2021. For 2022, the group's profit, the result of the union with Ubi Banca, is set at a value of no less than 5 billion . Also confirmed dividend policy. The bank intends to ask the ECB for authorization to pay the dividend in 2021 and also pay the suspended coupon in 2020 in cash.
"Although the first half of 2020 was a period of exceptional complexity, Intesa Sanpaolo achieved the best net profit in the first half since 2008 and strengthened its balance sheet", commented the CEO Carlo Messina who, answering journalists' questions, also added, referring to the marriage with Ubi: "In terms of capitalization, we will surpass Banco Santander and we will be to all intents and purposes the second European banking group", behind only BNP Paribas. We have opened a new chapter in the history of the group which, together with UBI, will give life to a new leader in the European banking scenario and represent a fundamental pillar for a new growth future for the country".
“90,2%, in terms of capital, of Ubi Banca's shareholders – continued Messina – have decided to join Intesa Sanpaolo: a choice that is a source of pride for us. Intesa Sanpaolo and UBI have similar business models, with shared corporate cultures and values. Together, we can strengthen a national champion Group and a leader at European level, with over 1,1 trillion euros strong that the Italians entrust to us. Together we are stronger and together we have greater growth potential”.
To learn more: Intesa Sanpaolo: the takeover bid on Ubi closes at 90,2%
The gross current result also grew, by 7%, and the operating margin, by 2,8% to 4,67 billion. Operating costs decreased by the same percentage, today just over 4,4 billion, while operating income is stable compared to a year ago, just over 9 billion.
The bank led by Carlo Messina, which is the first Italian bank with almost 12 million customers and is about to become the second European group with its marriage to Ubi – which will be entrusted to the leadership of Gaetano Miccicchè – and has also improved the quality of its credit. Meanwhile reducing NPLs, “at no cost to shareholders”, the note specifies: the NPLs in Intesa's stomach have fallen by 23 billion since December 2017 and by 36 billion since the peak in September 2015. The stock has decreased by another 31% compared to 2019 December 4,6. The ratio of non-performing loans to total loans is 7,1% gross of adjustments and 3,5% net. Capital solidity also improves, now well above the required requirements: the common equity tier 1 ratio is 14,6% taking into account the 2020 transitional criteria, also taking into account the almost 2 billion in dividends already accrued in the first half.
"I results for the first half of 2020 - explains a note - confirm Intesa Sanpaolo's ability to effectively address the complexity of the context following the COVID-19 epidemic. Compared to the first half of 2019, Intesa Sanpaolo records, in particular, an improvement in capital ratios, efficiency and asset quality. The cost of risk is also improving if credit risk adjustments are excluded for future COVID-19 impacts, mainly made as a general hedge on performing loans. The generation of sustainable value for all stakeholder will be increased bymerger with UBI Banca, which does not present significant complexities”.
The results convinced investors: after the announcement of the accounts, the stock on the Stock Exchange began to rise by more than 3,5%, towards 1,8 euros per share.
