Intesa Sanpaolo’s accounts are also soaring in the first quarter of 2024 and CEO Carlo Messina speaks of a “unique model in Europe” while the fintech subsidiary Isybank sees Francesco Profumo, former number one at Compagnia di San Paolo, ascend to the presidency.
The bank closed the first three months of the year with a net profit of 2.3 billion, up 17.6% compared to the same period in 2023, with the market expecting a profit of around 2.1 billion. In the period, net operating income increased by 11.1% to 6.7 billion, with net interest rising by 20.8% to 3.9 billion and net commissions to 2.3 billion (+6.3%). Operating costs were substantially stable (+1.3%) at 2.6 billion. The result achieved so far “allows us to set aside dividends for 1.6 billion euros”, confirms Messina, which are added to the 2023 balance of dividends of 2.8 billion to be paid in May and the 1.7 billion buyback to be started in June. «In 2024 we will distribute 7.3 billion to shareholders including the buyback. We are perfectly in line with the objective of a net result exceeding 8 billion in 2024.”
Results
«The savings entrusted to us by families and businesses grew by 28 billion in the quarter, exceeding 1,300 billion euros, the strong attention to costs despite the growth in technological investments allows us to achieve the best result ever in terms of cost/income – lists Messina -. The historic low flow of NPLs brings the annualized cost of risk to 22 basis points, accompanied by an increase in coverage.
Robust capital generation further strengthens us: CET 1 Ratio is
higher than 13.3% already considering the 1.7 billion buyback that we will launch at the beginning of June”.
Net profit 2024 at over 8 billion
The implementation of the 2022-2025 business plan is therefore proceeding at full speed, with a net profit prospect for 2024 and 2025 of more than 8 billion, a note reports. In detail for 2024, the bank estimates “a solid growth in revenues, driven by a further increase in net interest and an increase in net commissions and the result of the insurance activity based on the group’s leadership in the Wealth Management, Protection & Advisory, a stability of operating costs, despite investments in technology, especially as a result of lower personnel expenses, a low cost of risk, deriving from the status of a “zero NPL” bank and the high quality of the credit portfolio and a reduction of taxes and other charges relating to the banking system, as there is no longer any contribution to the resolution fund”. The bank then also confirms the cash payout equal to 70% of the consolidated net profit for each year of the business plan, “with an increase in the dividend per share relating to 2024 and 2025 compared to the amount relating to 2023”. Exposure to Russia is further reducing, decreasing by approximately 84% (over 3 billion euros) compared to the end of June 2022 and falling to 0.1% of the group’s total customer loans.
The new board of directors of Isybank with Profumo
«The solidity of the results obtained in the first quarter of 2024 confirms Intesa Sanpaolo as the European leader for high and sustainable profitability, capital strength and low risk profile; with a unique supporting role
of the real and social economy of our country”, reiterates the CEO. News instead at Isybank: the former president of Compagnia San Paolo, Francesco Profumo, becomes president of the group’s digital bank. Mario Boselli gives way to him and becomes vice-president. Antonio Valitutti CEO confirmed and Vanna Alfieri, Giampio Bracchi, Renato Cerioli, Achille Galdini, Paola Papanicolau and Claudia Vassena also sit on the board of directors. «Thanks to the presidency of Francesco Profumo, Isybank will be able to benefit from strong skills, a broad wealth of experience, a notable sensitivity towards innovation in an international projection – greeted the CEO. of Intesa, Carlo Messina -. All this in line with our positioning as a European leader also in the technological field, thanks to the substantial investments made, equal to 3 billion euros from 2022 to today”.
