Intesa Sanpaolo closes 2023 with Net income equal to 7,7 billion driven by net interest, 76,4% more than the 4,4 billion in 2022 and above the guidance of the institute led by Carlo Messina which stopped at 7,5 billion. Good news for shareholders: total dividends of 5,4 billion will be proposed at the meeting, of which 2,6 billion were paid as an advance last November and 2,8 billion as the balance of 2023 dividends to be paid in May 2024. Furthermore a buyback will be proposed equal to approximately 55 cents of a point of common equity tier 1 ratio at 31 December 2023 to start in June 2024. "The 2023 results confirm the Intesa Sanpaolo Group's ability to generate sustainable profitability even in complex contexts thanks to the well-diversified and resilient business model” says Nora of Ca de Sass. “The solid economic and financial performance of the year translated into significant value creation for all stakeholders, also based on the Group's strong ESG commitment”.
Ca de Sass also therefore confirms 2023 as the record year for Italian credit institutions: the top 5 Italian banks achieved profits of over 20 billion.
The Intesa share price on Piazza Affari after the announcement of the data rose to 2,94 euros and then repositioned itself around the level of 2,89 euros before the data, still up by 0,98%.
In the fourth quarter of 2023 profits at 1,6 billion, down from 1,9 in the third quarter
In fourth quarter net interest amounted to 4 billion, up 4,8% compared to 3,8 in the third quarter of 2023 and 30,4% compared to 3 billion in the fourth quarter of 2022. Net commissions amounted to 2.110 million euros, up 0,7% compared to the 2.095 million in the third quarter of 2023. Net income equal to 1.602 million euros in the fourth quarter of 2023 compares with that of 1.900 million in the third quarter of 2023 and 1.076 million in the fourth quarter of 2022.
Exposure to Russia further reduced
The reduction of the institute's exposure to Russia continues, decreasing by 82% (around 3 billion euros) compared to the end of June 2022 and falling to 0,1% of the Group's overall customer loans, and cross-border loans towards Russia are largely performing and classified at Stage 2.
Isybank will bring about 200 million to the result by 2025
Isybank, the Group's digital bank with a cost/income business model of less than 30% and around one million new customers by 2025 - with an additional contribution of around 200 million euros to the gross current profit by 2025 - not expected in the Business Plan: approximately 60.000 new customers (not of Intesa Sanpaolo) already acquired and approximately 300.000 customers (of Intesa Sanpaolo) already transferred.
“The implementation of the Plan is proceeding at full speed, with the key industrial initiatives well underway” says Intesa which in particular records a strong reduction in the risk profile, with a consequent cut in the cost of risk: strong deleveraging, with a decrease of 5,4 .2022 billion euros of the stock of impaired loans, before adjustments, between 2023 and 0,9, reducing the incidence of impaired loans net of adjustments on overall loans to XNUMX%.
Common equity tier 1 ratio at 13,7%
The capitalization at the end of 2023 was higher than the regulatory requirements: common equity tier 1 ratio at 13,7% deducting the aforementioned dividends for shareholders from the capital and at 13,2% taking into account the impact of the proposed buyback, without considering approximately 125 hundredths of a point of benefit deriving from the absorption of deferred tax assets (dta), of which approximately 25 in the 2024 - 2025 horizon.
Gross current profit saw growth of 64,6% compared to 2022 and operating profit of 31,4%, with net operating income growing by 17,2% and operating costs increasing by 3,6%.
Net operating income grew by 17,2% compared to 2022 and operating costs by 3,6%.
