Intesa Sanpaolo archives the first quarter of 2018 with a Net income higher than expected: 1,25 billion, up 39% compared to 901 million in the period January-March 2017. This is the best result since 2008. Analysts had forecast an average profit of 879 million.
In the first quarter of 2018 “we achieved solid and high-quality results, which allows our business plan to gain momentum – comments the CEO of Intesa Sanpaolo, Charles Messina – If we include the capital gain relating to the transaction with Intrum, net profit rose to 1,65 billion, a value equal to 43% of last year's 3,8 billion profit. We are therefore in a position to state that the net profit of 2018 will be higher than the 3,8 billion profit of 2017”.
I net operating income in the first quarter they increased by 14,2%, to 4,8 billion, with net interest at 1,86 billion (+2,8%) and fees and commissions at 2 billion (+8,2%). On also i operating costs (+11,8%, to 2,3 billion), for a cost/income ratio that fell to 47,8%. As for assets, the coefficient Cet1 when fully operational it is equal to 13,4%, taking into account the dividends accrued in the quarter.
The quarterly data are in line with the target of halving non-performing loans envisaged by the 2018-2021 business plan, also considering the strategic agreement signed with Intrum last month.
In the first quarter the npl they decreased by about 1,5 billion gross (-14 billion in 30 months). The stock of non-performing loans therefore fell by 2,7% compared to the end of 2017, both gross of adjustments and net, considering in the second case the figure as at 31 December 2017 "recalculated to take into account the first-time application of IFRS 9 ”.
In the quarter, net value adjustments to loans also fell sharply, amounting to 483 million against 1,2 billion in the fourth quarter of 2017 and 696 million in the first three months of last year.
The policy of dividends for 2018 provides for the distribution of an amount of cash dividends corresponding to a payout ratio equal to 85% of the net result. “We confirm the ability to significantly remunerate our shareholders as a priority – added Messina – as demonstrated by the 10 billion in dividends paid out during the previous business plan”. “We are on the right track to deliver a very generous dividend again this year,” added the CEO.
Furthermore, according to the CEO, “the quality and solidity of the results are based on double-digit growth in revenues, with income from interest margins increasing for the second consecutive quarter, while the increase in commissions in the quarter places us at the top of European banks. Net inflows into managed savings amounted to around 5 billion euro”.
In the early afternoon the share on the Intesa Sanpaolo Stock Exchange it lost 0,8%, to 3,1365 euros. It is one of the best banking stocks in Piazza Affari, on a day in which the Ftse Mib loses 1,8%.
