Intesa Sanpaolo closed the first half of 2019 with a net profit of 2,266 billion, up 4% compared to the same period of 2018. "The best result since 2008" announces the CEO Charles Messina. Among other things, the result beats the consensus which predicted a profit of 915 million euros.
Returning to the accounts, i net operating income decreased by 3,8% to 9,1 billion, with net interest at 3,5 billion (-4,7%) and net commissions to 3,9 billion (-4,1%). THE operating costs they recorded a decline of 3,2% to 4,5 billion, per a report cost/income rose to 49,3%. As for capital solidity, the coefficient Cet1 when fully operational it is equal to 13,9%, considering 1,8 billion in dividends accrued in the period.
By virtue of the results achieved, the bank confirmed the targets for 2019, the year in which the group expects "an increase in net income compared to 2018, resulting from a growth in revenues, a continuous reduction in operating costs and a decrease in the cost of risk". Everything as planned also for the dividend. The institution's policy establishes "the distribution of an amount of cash dividends corresponding to a payout ratio equal to 80% of the net result".
“We are particularly satisfied with the first half of 2019: in a more complex context than expected, Intesa Sanpaolo confirms its ability to achieve important results, in line with the objective of a net profit higher than that of 2018″. declared Carlo Messina, commenting on the half-yearly accounts. As for the quality of the assets, the CEO underlined that "after 15 consecutive quarters of decline from the peak of 2015, the stock of non-performing loans was reduced by 33 billion, at the lowest level since 2009”. In addition, during the half year Intesa "recorded the lowest flow of non-performing loans in the first half ever, thanks to our ability to proactively manage loans and thanks to the quality of our client companies, currently much more solid and profitable than than they were before the 2008 crisis”.
Precisely on non-performing loans, Intesa announced today the signing of a binding agreement with Prelios on receivables classified as unlikely to pay, i.e. UTPs (unlikely to pay). The agreement establishes the sale and securitization of a portfolio of UTPs in the Corporate and SME segment of the Intesa Sanpaolo group amounting to approximately 3 billion gross at a price of approximately 2 billion, “in line with book value'”.
The parties will also sign "a ten-year contract for the servicing of UTP credits in the Corporate and SME segment of the Intesa Sanpaolo group by Prelios, with an initial portfolio of approximately 6,7 billion gross, at market conditions and with a commission structure largely made up of a variable component also aimed at maximizing returns to performing status".
Taking into account the sale of the 3 billion euro, compared to the figures as at 30 June, the impact of non-performing loans on total loans drops from 8,4% to 7,7% gross of value adjustments and from 4,1% to 3,6 .XNUMX% net.
