Half-year profit almost tripled and targets on profitability and dividends centered in advance: 2 billion cash. These results make us look optimistically towards the second half of the year and hope for a further benefit for the shareholders. An eventuality that the CEO himself Charles Messina he does not rule out presenting the data in a conference call with analysts, albeit net of due prudence. “On dividends it is clear that my message is very strong. We got in six months what we promised in one year. We are therefore in a good position to look to the second half of the year with confidence: we will see at the end of the year what the final results will be and we will see what the decisions will be. So for the moment I confirm” the target of 2 billion in cash dividends, “but I'm very positive”, said Messina, answering those who asked him if it was possible to distribute a higher dividend than promised up to now. Pressed by the analysts, Messina then reiterated: “I have a degree of flexibility and I will see in the second half of the year what the net profit dynamics will be. At the end of the year, will we decide which one will be the right one? dividend to be paid to our investors”. The stock on the Stock Exchange rises by 0,8%.
The bank closed the half year with a net profit of 2 billion, almost tripled compared to 720 million in the same period of 2014. This is the best half-year result since the first six months of 2008. In the second quarter alone, profit more than quadrupled to 940 million compared to 217 million in the same period of 2014. Profitability in the first half, underlines a note, is the objectives of the 2014-2017 business plan". On the other hand, credit quality is also improving with loan loss provisions falling by 28,8% compared to the first six months of 2014 to €1,6 billion, the lowest level since the first half of 2011. The gross flow of moreover, new non-performing loans from performing loans decreased by 27% to €4,6 billion, the lowest half-year figure since 2007.
Operating income also increased by 9,7% to 9,4 billion, with net interest at 3,96 billion (-6%) and net commissions at 3,8 billion (+14,6%). “I am very proud of the results achieved, we are well positioned for the targets of the plan and capable of accelerating in the short term”, said Messina adding that “our results are outstanding. I'm proud of it and I'm proud of what our people have done." In the current year, the bank expects "growth in operating income favored by net commissions, operating income and continuing income before tax, with a reduction in the cost of risk, within the framework of sustainable profitability".
The valuation on the coupon, already considered high compared to those of its competitors, will also depend on the choices on capital that Messina wants to keep in the upper part of the capitalization range. Messina, who will be on a roadshow in London next week, in fact said he was convinced that there is "a premium to maintaining excess capital, particularly in a context in which many of the competitors will have to consider capital increases". “I want to stay in the high end of the capitalization range”, he specified, further underlining that “our dividend, compared with that of our competitors, is high. I therefore believe that we can be in the right combination of capital and dividends, then we will see at the end of the year what the margins will be for having a different attitude”.??
The accounts have shown a situation of tranquility also on the front of the capital ratios which, calculated considering one billion euro of dividends accrued in the half year, are equal to 13,4% for common equity (from 13,6% at the end of 2014), to 14% for tier 1 (from 14,2%) and 17,2% for the total capital ratio (unchanged). “I am confident in Intesa Sanpaolo's position. I can't say anything” about the analysis process carried out by the ECB “but we have a strong capital position. I don't see any problem for Intesa Sanpaolo”, Messina commented on the possible risks relating to possible new regulatory interventions by the ECB on bank capital. "As regards instead - he continued - the banking system as a whole, I think it is too early to understand? What will be the impact".
