Understanding St. Paul still surprising: in first semester 2025 theNet income breaks through the 5,2 billion, exceeding expectations and marking a +9,4% compared to the previous year. "The best half-year ever," declared the CEO Charles Messina in a conference call, emphasizing that "net profit has more than doubled in the last five years. We have increasing and sustainable value creation and distribution, with an annualized ROE of 20%." In the second quarter alone, net profit reached 2,6 billion, slightly higher than the 2,5 billion of the second quarter of 2024. The banking group confirms the guidance of the 2022-2025 Business Plan but further raises the bar onNet income, now expected “well over 9 billion euros, including management actions in the fourth quarter to strengthen future profitability.” This is “a level that is completely sustainable for years to come,” Messina emphasized.
The reaction of the markets was not long in coming: the title Intesa Sanpaolo gained more than 4% on the Milan Stock Exchange, buoyed by a quarter that surprised on several fronts: revenue, profitability, credit quality, and dividends.
Intesa Sanpaolo: Net revenues and commissions on the rise
The result of operation management grew by 1,9% compared to the first half of 2024, reaching 8.547 million euros, driven by proceeds net operating income increased by 1,1% to 13.789 million. interests net income amounted to 7.432 million, down 6,8% compared to 7.975 million in the first half of 2024, while net commissions recorded a growth of 4,7%, reaching 4.884 million euros. Specifically, commissions from commercial banking activities decreased by 2,7%, while those from management, brokerage, and consultancy increased by 8,7%, with the component relating to securities brokerage and placement growing by 25,3%. managed savings of 0,4% and insurance products of 4,5%. The result of theinsurance business reached 922 million euros, up 2,1% compared to the 903 million of the first half of 2024. Messina also underlined the good performance of the interest margin: “It grew significantly in the second quarter, despite falling rates.”
I operating costs decreased by 0,2%, reaching 5.242 million, thanks to a 1% reduction in personnel expenses and a 0,7% reduction in administrative expenses, offset by a 5% increase in depreciation. cost/income ratio it decreased to 38%, compared to 38,5% in the first half of 2024.
Financial strength confirmed
On the property front, the Cet1 rises to 13,5%, up 65 basis points compared to the end of 2024 (13,3%) despite the negative impact of Basel 4 and distributions to shareholders. Readily available liquidity reaches €209 billion, supported by a Liquidity Coverage Ratio of 145% and a Net Stable Funding Ratio of 121%. leverage ratio remains robust at 6%, one of the highest among large European banks
Credit quality and risk under control
La credit quality remains high: the non-performing loans Net loans amount to 4.929 million euros and represent only 1,2% of total loans (2,3% gross), with a slight increase of 0,2% compared to December 2024. In particular:
- non-performing loans amount to €1.304 million, representing 0,3% of total loans (stable compared to 31 December 2024), with a coverage ratio of 66,5% (68% at the end of 2024);
- unlikely-to-pay positions fell to €3.244 million from €3.438 million in December 2024;
- Past due/overdrawn credits amount to 381 million, compared to 362 million at the end of 2024.
The annualized cost of risk stands at a modest 24 basis points. Russian subsidiary has almost wiped out its credits, helping to maintain a solid and stable risk position.
Dividends and buybacks: over €5,7 billion for shareholders
Messina remarked: "Intesa Sanpaolo offers one of the highest levels of remuneration in Europe. We will return at least €8,2 billion in 2025, considering dividends, buybacks, and the interim payment. Further distributions will be evaluated at the end of the year." Specifically, approximately €3,7 billion in dividends have accrued. dividends in the semester, of which 3,2 billion is expected as an advance to be distributed in November 2025. In addition to these, there is a 2 billion buyback The dividend, which began in June, will total more than €5,7 billion for the group's investors. The final decision on the interim dividend will be confirmed upon approval of the third-quarter 2025 results.
Results by Business Area
La Territorial Bank Division confirms its solidity with net operating income of 6,1 billion euros in the first half of 2025, up 2,1% compared to the same period in 2024, and a net result of 1,685 billion (+25%). IMI Corporate & Investment Banking Division recorded a significant increase in net operating income to 2,52 billion (+23,1%) and a net profit up 31% to 1,202 billion, highlighting improved efficiency with a cost/income ratio down to 27,1%. International Banks turnover remains stable (1,64 billion), with a net result growing to 719 million (+5%). Private Banking shows stability in revenues (1,72 billion) and a net profit slightly increasing to 813 million (+2,5%). Asset Management, despite a slight drop in revenues (-3,1%), improved costs and maintained a stable net result of 272 million. Finally, the Insurance Division Net operating income grew by 3,2% to 914 million, with a net profit of 482 million (+4,3%).
Optimistic outlook: net profit "well above" 9 billion in 2025
“The excellent results obtained allow us to update guidance to well over $9 billion”, explained the top manager, adding: “The 2025 net interest margin guidance is growing well above the 2023 level, with a further increase expected in 2026”. Net commissions e organisers' activities insurance are set to rise, supported by leadership in Wealth Management, Protection & Advisory, as well as trading profits, While operating costs will continue to decline, and the cost of risk will remain low. The plan to 2025 is now "almost complete," the statement reads.
Messina shows no interest in M&A: "We don't like this Wild West."
The institute is also beginning to detect a recovery in the loan growth trend"We are seeing a recovery in credit, thanks also to the clear reduction in competitive pressure resulting from this crazy propensity for M&A that we have seen in Italy in recent months," Messina clarified during the conference call.
Precisely in this context, Messina reiterated the clear line on M&A"Our approach is to stay out of it entirely. We already have antitrust problems in Italy. I don't like what's happening—which I call the Wild West. Our style is completely different. We're generating strong internal synergies, avoiding the risks associated with acquisitions."
Social and economic impact: 29 billion in new credit
Intesa confirms its role as the driving force of the real economy: 29 billion in new credit medium-long term loans were granted to Italian families and businesses in the semester (+44% year on year), with approximately 1.260 companies restored to good standing and 6.300 jobs saved.
On the front sewer, the group led by Carlo Messina generated 3,2 billion euros in taxes, expanded the program Food and Shelter for the most vulnerable (over 60 million interventions from 2022), and 23,4 billion allocated to social credit and urban regeneration. A social contribution a total of 1,5 billion euros between 2023 and 2027, of which 800 million have already been disbursed.
Alongside its green drive, the group is continuing its digital transformation, investing €4,6 billion in technology, including the adoption of artificial intelligence. "We have one of the most resilient and efficient models. Technology—including AI—is central to our future efficiency," Messina said. Isytech It is our cloud-native digital platform”, already operational on Isybank, which has reached one million customers in just two years, “confirming the success of our digital strategy”.
