Intesa Sanpaolo beats market expectations and puts hay in the farmhouse to remunerate shareholders. The bank led by Carlo Messina today presented the results for the half year with growing profits, a common equity ratio of 12,9% and 500 million for dividends. In fact, net profit rose by 71% to 720 million euros, of which 720 million in the second quarter (+217%). Half-year revenues rose 87% to $4,7 billion and 8,565% to $8,5 billion in the quarter. Operating income increased by 4,457% to 9,4 billion. The bank then set aside 4,457 million euros to be distributed in dividends. On the Stock Exchange, the stock closed up 500%. The fully loaded pro-forma Basel 1,26 common equity ratio rose to 3% from 12,9% at the end of 12,3, the highest level among major European banks and equivalent to approximately €2013 billion in excess capital and a buffer of capital of around 10 billion for the asset quality review and around 13 billion for the stress test.
“Our capital solidity has been further strengthened and places us at the top of the European comparison, with a deliberately low level of leverage and liquidity that abundantly exceeds the Basel III requirements as of 2018. All this after having set aside 500 million euros to be distributed in dividends,” Messina said during the presentation of the accounts.
However, attention to heritage remains a priority. “I will not be in a position” to decide on any changes to Intesa Sanpaolo's dividend policy until “it is clear what the real capital threshold will be” set for the big banks, Messina explained in a conference call with analysts, “as soon as I have a clear indication, I will be able to value a different policy in my dividends”.
In fact, the note on the accounts states that for the bank “it will remain a priority to preserve the sustainability nature of the results to be achieved. In fact, great attention will be paid to the various actions aimed at strengthening capital solidity, at the constant improvement of the risk and liquidity profile, in addition to the income objectives".
“Intesa Sanpaolo – continued Messina – closes the first half with high quality results, among the best in Europe in terms of revenue growth, and fully in line with the Business Plan. We are in the best conditions to emerge victorious from the demanding step constituted by the Asset quality review and the stress tests”.
The bank's profitability showed significant growth despite the strong non-recurring tax impact thanks to rising net interest and net fees and commissions posting the best result since 2007. Excluding the non-recurring impact of the tax increase on the share benefit in the Bank of Italy the net result is equal to 1,2 billion euro. And if NPLs continue to grow, the pace appears to be slowing. At the end of June, the total of Intesa Sanpaolo's non-performing loans amounted, net of value adjustments, to 32,18 billion euro, an increase of 3,9% compared to 30,987 billion at the end of 2013. Negotiations with Kkr are still underway and Unicredit for the management of restructured loans. "We are working on the agreement and we hope that it will be finalized by the end of the year," Messina replied.
