A 2020 of great solidity for Intesa Sanpaolo, which in addition to having completed the acquisition of Ubi Banca, giving life to the second European banking group by capitalization, has also defended its profit. Although down compared to 2019, when it exceeded 4 billion, despite the difficult scenario the net book profit for the year 2020 is equal to 3,277 billion of Euro. However, underlines the bank led by Carlo Messina, excluding the components relating to the Ubi operation, the figure would rise to 3,5 billion, while net of adjustments for the future impacts of Covid 19 it would even be up on 2019: +9% to 4,53 billion. The performance will make it possible to propose to the assembly a cash dividend of 694 million, namely 3,57 eurocents per share, the maximum allowed in compliance with the indications of the ECB.
The other indicators are also good. Gross income increased by 10% compared to 2019, in the second half there was a recovery in net interest and net commissions, respectively by 2% and 11% compared to the first half of 2020. Operating costs are were down by 3,4%, with a cost/income ratio at 52,2% (“among the best in Europe”), e capitalization is confirmed at high levels: the Common Equity Tier 1 Ratio, after deducting the almost 700 million in dividends for 2020, was 15,4% fully loaded, 16,9% excluding the acquisition of Ubi Banca and 15,9% including Ubi but excluding the assets to be sold to Bper. Credit quality also improved in 2020: impaired loans were reduced by 32 billion since December 2017 and by 44 billion since the 2015 peak. The stock is -34,6% compared to the end of 2019, gross of adjustments.
The ratio of non-performing loans to total loans is 4,9% gross of adjustments and 2,5% net. All of this, continuing to play an important role even in the midst of the pandemic: Intesa Sanpaolo's press release is in fact keen to recall that in 2020 the bank disbursed 77 billion in Italy alone (87 billion in total, 95 including Ubi) of new medium-term credit - long-term, to businesses and households, helped to bring 11.500 companies back to performing status and consequently saved around 57.000 jobs. Intesa Sanpaolo also aspires to become a point of reference in terms of sustainability and social and cultural responsibility: it is the only Italian bank included in the Dow Jones Sustainability Indices and the 2021 “Global 100 Most Sustainable Corporations in the World Index” by Corporate Knights, and ranks first among European banks in three major international ESG assessments, MSCI, Sustainalytics and Bloomberg ESG Disclosure Score.
“In 2020 – he commented the CEO of Intesa Sanpaolo, Carlo Messina – the entire world has been overwhelmed by the COVID-19 pandemic. Our country is
been hit with particular force: my hope for 2021 is that it will be the year of overcoming the pandemic, of economic recovery and of contrasting social emergencies. We, like Intesa Sanpaolo, are ready to be a point of reference for sustainable and inclusive growth.
During the health emergency, Intesa Sanpaolo donated 120 million euros to strengthen the national health system. We first promoted the moratoria: during these months we have granted some total value equal to 95 billion. We have also disbursed loans backed by state guarantees for a total of 35 billion".
“In the last financial year – continued Messina analyzing the results – we achieved the best result ever in the insurance sector, with revenues from the non-motor non-life business growing to 500 million. Commissions showed a significant recovery in the second half and in particular in the last quarter of 2020. The interest margin returned to annual growth after 5 consecutive years of decline. Costs in 2020 mark a reduction of 3%. Operating efficiency is particularly high with a cost/income ratio of 52%. The synergies deriving from the combination with UBI Banca are forecast at over 1 billion euro per year when fully operational, exceeding initial estimates. The integration process is perfectly aligned with the plans and the involvement of people from UBI it is happening with full success”.
The results convinced the market and an in itself brilliant session for Piazza Affari and in particular for bank stocks, which also benefited from the fall in the Btp-Bund spread, Intesa Sanpaolo stands out with a up about 3,5% at mid-day, above 2 euros per share.
