Intesa Sanpaolo closed the first nine months of the year with a net profit of 4,37 billion euro, the best result since 2008, up 9% compared to 4,01 billion in the first nine months of 2021. This figure excludes €1,3 billion of value adjustments for Russia and Ukraine. The net book profit amounted to 3,28 billion euros, down by 18%.
Messina: we are now a bank with zero exposure to Russia
Excluding these provisions, “we are fully in line with lexpected target from the Business Plan of a net profit of over 5 billion in 2022” commented Carlo Messina, CEO of Intesa SanPaolo.
In the third quarter of 2022 it was stata reduced by about 65% (about 2,3 billion euros) theexposure to Russia, which fell to 0,3% of the Group's total customer loans. ”We can now be considered a bank a zero exposure to Russia. We will continue to work to reduce the limited residual exposure" Messina continues.
Guidance updated to over 4 billion in net income. On 23 November interim dividend of 0,0738 euro per share
“Russia's solid operating performance and massive de-risking enable us to update the guidance di Net income to more than 4 billion for 2022, despite the deterioration in the supply of raw materials and energy” says a note from the Milanese institute. Furthermore, Intesa Sanpaolo's commitment to a 70% payout, with 2,3 billion dividends already matured. The 23th November will be distributed a interim dividend di 1,4 billion, equal to 0,0738 euro per share.
The institute reports a additional distribution to shareholders of 1,7 billion euros through the buyback started on 4 July and concluded on 11 October 2022, in addition to the decision on the buyback for the remaining amount of 1,7 billion euro authorized by the ECB which will be taken on by the approval of the results as at 31 December 2022. Lastly, IntesaSanpaolo reported a possible further distribution to be assessed year by year starting from 2023.
“Intesa Sanpaolo is fully capable of continuing to operate successfully in the future, relying on the strengths that distinguish the Group, particularly from a financial, operational, technological and organizational point of view” says the Group. “The formula of the 2022-2025 Business Plan and, in particular, thegoal of 6,5 billion in net profit by 2025 are confirmed, with further potential growth resulting from the increase in interest rates, high flexibility in the management of operating costs and the status of a "zero npl" bank. The implementation of the Plan is proceeding at full speed, with the main industrial initiatives well underway” said the note
Fully loaded Common Equity Tier 1 ratio at 12,4%
La capital structure, exceeding the regulatory requirements with a Common Equity Tier 1 ratio is at full speed 12,4%, without considering approximately 110 basis points of benefit from the absorption of deferred tax assets (DTA), of which approximately 40 within the horizon of the Plan and considering the deduction of 2,3 billion euro of dividends accrued in the first 9 months of 2022 and the 3,4 .XNUMX billion buybacks.
Intesa Sanpaolo alongside families and businesses
Intesa Sanpaolo declares itself the "engine of the real and social economy of the country": in the first nine months of the year the disbursements in the medium and long term in favor of families and businesses in Italy they amounted to 46 billion (64,5 billion in total) and with support for 3.200 Italian companies that returned to performing status. “We are aware of how the energy crisis and the increase in the cost of living are causing a significant deterioration in the living conditions of many families in an already difficult social context” said Messina. "For these reasons we have allocated 30 billion euros to businesses and households, giving the possibility to suspend or remodulate mortgages and loans, granting disbursements at subsidized rates and allowing zero-interest installments".
Operating result rose by 2%, cost/income ratio at 49,4%
Il Net income is equal to 930 million euros which compares with that equal to 1.330 million in the second quarter of 2022 and to 983 million in the third quarter of 2021. The income statement third quarter 2022 consolidated records net interest equal to 2,4 billion euros, up by 14,1% compared to the 2,09 billion in the second quarter of 2022 and by 19,4% compared to the 2 billion in the third quarter of 2021. The result of the operation management rose by 2%, from 7,83 billion to 7,99 billion euros. The cost/income ratio in the first nine months of 2022 was 49,4%.
Operating income net interest amounted to 15,8 billion euro, up by 0,1%% compared to 15,78 billion in the first nine months of 2021, following higher net interest (+8,2% to 6,44 billion ).
Gross non-performing loans decreased by €3,9 billion, ratio of net to 1,0%
Il cost of risk of the first nine months of 2022 annualised at 54 cents of a point (from 59 in FY 2021), to 27 excluding the provision for exposure to Russia and Ukraine net of approximately €0,3 billion of releases based on generic adjustments made in 2020 for future COVID impacts -19 (from 25 in 2021 if we exclude the allocation to accelerate the reduction of non-performing loans), with €0,4 billion of overlay for generic provisions still available improvement of credit quality.
I non-performing loans have decreased, gross of value adjustments, of approximately 3,9 billion euros from the end of 2021 and by around 54 billion from the peak in September 2015, while the stock of non-performing loans has fallen, since December 2021, by 25,5% gross of value adjustments and 14,8% net. L'incidence of non-performing loans on total loans is equal to 2,4% gross of value adjustments and 1,3% net considering the accounting data as at 30 September, equal respectively to 2,2% and 1,2% pro-forma taking into account the reduction for further sales expected in 2022 already subject to provision in the fourth quarter of 2021. Considering the methodology adopted by the EBA, the incidence of non-performing loans is equal to 1,9% gross of value adjustments and at 1% net considering the accounting figure as at 30 September, respectively at 1,7% and 0,9% pro-forma taking into account the reduction for further sales expected in 2022 already subject to provisions in the fourth quarter of 2021. The level of specific coverage of non-performing loans at 46,9% at the end of September 2022, with a specific coverage of the component consisting of non-performing loans at 65,8%;
For Italy, a clear return to growth in 2024 after the slowdown in 2023
“In the former nine months of 2022 our Bank faced a scenario extraordinarily
complexMessina comments. “The serious international crisis caused by the conflict unleashed by Russia in Ukraine, with
the significant increase in inflation have found a solid and capable Italian economy
to react. The Italian economy is much stronger than it was during the previous crisis, thanks to solid fundamentals. Though in 2023 should there be a slowdown in economic growth or a slight recession, the Italian economy it will recover rapidly as early as 2024".
