Intesa Sanpaolo Private Banking closed 2012 with net profits of 142,2 million euro, a leap forward of 64,3% compared to the 2011 result (86,6 million euro).
Customer assets under management recorded an increase of over 6 billion euro from the beginning of the year (+10%), reaching 72,8 billion euro at Intesa Sanpaolo PB, corresponding to 76,6 billion euro at the Italy Network level– Private Segment. In particular, assets invested in funds and sicavs recorded an increase of 2,7 billion euro. The growth of liquidity products was also significant (+2,4 billion euros), i.e. savings bonds and time deposits.
The performance of economic data was also positive, with net income of 396 million euro, up 21% on the previous year. Net interest recorded an increase of 19%, going from 47,7 to 56,8 million euro, following the growth in direct deposits from customers and the optimization of treasury management.
Net commissions increased even more significantly, going from 279,2 to 338,2 million euros (+21%), due to the growth in recurring margins from managed savings and, in particular, the significant flow of new placements of funds and sicavs. The contribution of the valorisation of customers' assets under administration was also important, following the development of securities lending services and fee-based advisory services (“Private Advisory” and “Advisory”).
Operating expenses were substantially stable (-0,4%), against the growth recorded during the year, due to the constant commitment to optimizing processes and controlling spending. The cost/income ratio thus stands at 43,2%, thanks to a business model which sees 90% of the Bank's resources engaged in commercial development.
The operating margin grew by 44,8%, reaching 224,8 million euro. With provisions for risks and charges growing (+2,5 million euros) and minimal and decreasing net write-downs on loans, income before tax from continuing operations stood at 220 million euros, with growth of 44,3% . ISPB's capital ratios are confirmed to be well above the minimum levels envisaged by the regulations and are improving further. Tier 1 ratio and Total capital ratio reach 23% compared to 18% at the end of 2011.
Intesa Sanpaolo Private Banking is the bank of the Intesa Sanpaolo group dedicated to the Private segment in Italy, an area in which it holds a 17,4% share, with reference to the Italian household market with at least 500 thousand euros of investable assets and served by the model private.
