Intesa Sanpaolo archives the first nine months of 2014 with a Net income at 1,203 billion, up 88% year-on-year. If we exclude the retroactive tax increase on the capital gain recorded last year on the stake held in the Bank of Italy, the net profit at the end of September stood at 1,642 billion. Furthermore, in the third quarter alone, the result was positive by 483 million compared with the 217 million recorded in the second quarter of 2014 and the 218 million in the third quarter of 2013.
After the publication of the numbers, Intesa's share on the Stock Exchange accelerated upwards, gaining 1,9% in the early afternoon, to 2,286 euros.
“Despite the undoubted difficulties that the Italian economy is facing, we are able to confirm all the commitments undertaken with the business plan, including the distribution of at least 10 billion in dividends over the next four years – announced the CEO of Intesa Sanpaolo, Charles Messina -. Today's results also demonstrate that there is no shortage of opportunity for significant value creation, thanks to our large client base particularly in the asset management sector."
Also pre-tax profit showed strong growth in the nine months, with an annual increase of 65,5%, to 3,061 billion, of which 891 million euro from Retail Italia (+138% compared to the nine months of 2013), 493 million from Private Banking (+ 20%), 422 million from Asset Management (+35%), 640 million from Insurance (+17%), 1,508 billion from Corporate and Investment Banking (-12%) and 375 million from International Subsidiary Banks (+60%). Added to this is the growth of managed savings: +32 billion euro, with approximately 16 billion converted from assets under administration.
Messina underlined that the accounts show “strong signs of improvement in performance, according to the business plan, with effective net profit exceeding 1,6 billion, up by over 150% compared to the same period last year. These results confirm Intesa Sanpaolo's position among the best European banks not only for the exceptional strengths in terms of capital solidity already highlighted by the recent Comprehensive Assessment of the ECB, but also for profitability growth, with a double-digit increase in profit before taxes and net commissions which was the highest among European banks”.
Messina also said the Bank plans to disburse new medium/long-term credit for 170 billion in the four-year period 2014-2017, specifying that so far, in 2014, "over 25 billion" have been disbursed.
In any case, the note from the group clarifies that in 2014 “preserving the sustainability nature of the results to be achieved will remain a priority. The income targets will be accompanied by continuous attention to the risk and liquidity profile and capital solidity. Efficiency, productivity and asset quality will be monitored constantly. The repricing actions, also for 2014, will make it possible to partly contain the repercussions of the expected unfavorable context on market rates”.
As for the capital ratios, improved in the first nine months: the fully loaded pro-forma Basel 3 Common Equity ratio rose to 13% from 12,3% at the end of 2013, the highest level – underlines the group – among the major European banks and equivalent to capital in excess of 10,1 billion, which compares with that of 12,7 billion resulting from the Aqr and 10,9 resulting from the stress tests. The Common Equity ratio according to the transitional criteria in force for 2014 is equal to 13,3% compared to 11,9% pro-forma at the end of 2013.
