High capitalization well beyond regulatory requirements, net profit up year on year and good distribution of dividends, while credit quality improves with ratios above EBA requirements. THE accounts of Banca Intesa San Paolo for the whole of 2021 communicated today are in improvement compared to the entire year 2020, despite experiencing a slowdown in the last quarter of last year.
The net result rose by 19,4%.
Il Net income it showed an increase of 2021% in the whole of 19,4 to 4.185 million from the 3.288 million of the whole of 2020, which also saw the acquisition of Ubi Banca (which had an impact on the net result of 228 million). In the fourth quarter of last year the net result saw a slowdown to 179 million from the 983 million of the previous quarter. The appropriations allocated out of pre-tax profit amounted to 2,2 billion in the year, of which 1,7 billion in the fourth quarter, "for the further strengthening of the future sustainability of the Group's results", says a note from the credit institution. In the two-year period 2020-2021, Intesa Sanpaolo has allocated overall – from the pre-tax profit – approximately EUR 8 billion of appropriations for strengthening the future sustainability of the Group's results. The expected annual synergies of over one billion euro deriving from the merger of UBI Banca also contribute to this.
Improve operational management by 5,4%
It improved by 5,4%. operation management for the entire year to 9.866 million compared to 9.362 million in the previous year, while it fell by 18,8% in the fourth quarter compared to the third. The gross current result is up by 7,3% compared to 2020. In 2021, operating income saw an increase of 1,9% to 20.786 million compared to the previous year, while they fell by 1,4. 5.020% in the fourth quarter to XNUMX million
Dividends and buybacks
The return for shareholders is represented by 4,9 billion, consisting of 1,5 billion of the 2021 dividend balance which is added to the 1,4 billion interim already distributed in November and a buyback of 3,4 billion.
Fully loaded pro forma common equity Tier 1 ratio at 15,2% above the benchmark of 8,64%
Intesa San Paolo shows a strong capitalizationeven higher than the required regulatory requirements. The common equity Tier 1 ratio was 14,5, the fully loaded common equity tier 1 ratio was 14% and the Fully loaded pro forma common equity Tier 1 ratio at 15,2% compared to reference values (Srep requirement) equal to 8,64%, a value which must then be8,81% starting next March XNUMXst. This is after deducting from capital €1.932m of reserves distributed in October 2021, €1.399m of 2021 interim dividend paid in November 2021 and €1.533m of proposed 2021 dividend balance. If then from the capital one also deducts the buyback proposed of €3,4 billion, the Common Equity Tier 1 ratio (calculated by applying the transitional criteria in force for 2021) was 13,4%, the fully loaded Common Equity Tier 1 ratio was 12,9% and the Common Equity Fully loaded pro-forma Tier 1 ratio at 14,2%.
Non-performing loans are down after the peak of 2015. Incidence of 3,2% above the 2,4% of Eba
The improvement in credit quality continues with a reduction in non-performing loans, gross of value adjustments, of around 50 billion euro after the conspicuous peak in September 2015 and around 37 billion euro since December 2017. In this way, Intesa San Paolo exceeded its reduction target by around 11 billion euro, equal to about 26 billion of the Business Plan 2018-2021. The pro-forma reduction (which takes into account the reduction due to disposals expected in 2022 already subject to provision in the fourth quarter of 2021), is approximately 54 billion euro from the peak in September 2015 and approximately 42 billion euro since December 2017, also in this case exceeding (approximately 16 billion) the reduction target of the 2018-2021 Business Plan. Finally it stock of non-performing loans shows in December 2021 a decrease of 27% compared to December 2020 gross of value adjustments and 34,1% net, respectively of 50,2% and 48% pro-forma taking into account the reduction for disposals expected in 2022 already subject to provisions in the fourth quarter of 2021. In this way, the incidence of non-performing loans on total loans in December 2021 was equal to 3,2% (gross of value adjustments and 1,5% net), therefore higher than the 2,4% considered by the methodology adopted by the EBA.
