Intesa Sanpaolo's accounts continue to improve. In the first quarter of 2021, the leading Italian bank is confirmed in line with its roadmap, after an excellent 2020: the net profit, which came from 1,15 billion in the same period last year (and from 393 million in the last quarter of 2020, when, however, the charges relating to the acquisition of Ubi Banca impacted), rose to 1,516 billion euro (+32 %). A level higher than market expectations which stopped at 1 billion.
Also improving: gross income up 22,2% compared to the first quarter of 2020 to €2,63 billion; net fees of 8,9%; the cost income ratio at 46,5%; the common equity tier 1 ratio at 14,4% fully loaded. Operating costs decreased by 2,6%, while credit quality improved: impaired loans were reduced by approx 44 billion since the peak of September 2015 it's about 32 billion since December 2017, exceeding the targets for the end of 2021 almost a year in advance. The results, underlines the banking group in presenting them, "'are fully in line with the objective of a net profit for the year well in excess of 3,5 billion" .
The stock of non-performing loans fell in March 2021, compared to December 2020, by 0,8% gross of value adjustments and by 2,3% net. The impact of non-performing loans on total loans in March 2021 was 4,4% gross of value adjustments and 2,3% net. Considering the methodology adopted by the EBA, the incidence of non-performing loans gross of value adjustments was 3,5%. Liquidity is also good, well beyond the parameters of Basile III: at the end of the first quarter Intesa Sanpaolo counts liquid assets of €302 billion ed readily available liquidity of 169 billion. This has facilitated the commitment to support the real economy, in this delicate phase of post-Covid restart: in the first quarter alone, the bank disbursed around 23 billion in new medium-long term credit, of which 21 in Italy.
It was precisely on the crisis that he intervened the CEO Carlo Messina: “To get close to the employment levels shown by the other large European countries, we must focus on the solid fundamentals of our economy: the high wealth of Italian households, equal to 10.700 billion euros, of which 4.400 represented by financial assets; our manufacturing companies, with much stronger balance sheets than pre-2008 crisis levels; the excellence of our exports, able to surpass the German one by more than 5 percentage points in the last 4 years”. The manager reiterated Intesa Sanpaolo's commitment for a total of over 400 billion euros in theimplementation of the PNRR.
Returning to the bank's accounts, Messina then added that "the result of the insurance business is up by 17% if compared to the fourth quarter of 2020 while, again in the first three months of 2021, we record the best first quarter ever for commissions. Customer financial assets – the development engine of our Wealth Management – increased in the quarter by around 13 billion euro and brought the total value to 1.200 billion. The annualized cost of risk falls to 35 basis points; in the first three months of the year the flow of gross non-performing loans is the lowest ever recorded. We have surpassed by 6 billion, one year ahead of schedule”.
“The UBI integration process ended perfectly in line with our plans – concluded Messina, recalling the generous choice on dividends -. The remuneration of our shareholders remains a priority: in May we will distribute approximately 700 million in cash dividends, the maximum amount set by the supervisor. Once the ECB restrictions have been overcome, we intend to distribute the remainder in cash - from reserves - to reach the payout ratio envisaged in the Business Plan, equal to a total of 75% of €3,5 billion of normalized net profit for 2020. We confirm our commitment to disburse dividends for a payout ratio of 70% compared to 2021 net profit – expected to be well above €3,5 billion – partially through a interim dividend this year, subject to the authorization of the ECB".
