(Ticker) – “Intesa Sanpaolo registered one strong set of results in the first quarter of 2023, achieving best start to the year ever – with a net result of almost 2 billion euros – and the best quarterly net result since 2007. The bank is very profitable, well capitalised, with strong liquidity and has strengthened the status of Zero-NPL Bank”. CEO Charles Messina in the presentation to the financial community of the results as at 31 March 2023.
The CEO highlighted the industry-leading liquidity position, emphasizing that: 83% of private individuals’ deposits are guaranteed by the Deposit Guarantee System (62% including Corporate); the deposit base is highly granular, with an average deposit of €14,000 for individuals (about 19 million customers) and €69,000 for corporates (about 1.8 million customers); extensive access to international wholesale funding markets in all geographic areas.
“The quality of the assets is excellent, with the lowest annualized cost of risk ever and an increase in coverage – he explained – This demonstrates that we are European leaders in terms of asset quality“.
“These strong results allow us to raise guidance, rewarding shareholders while maintaining a strong capital position“, he explained, underlining that the implementation of the 2022-2025 Business Plan is proceeding at full speed, with a net result guidance for 2023 growing to around 7 billion euros.
Regarding the improvement of the outlook for 2023, he explained that the solid revenue growth – driven by net interest – combined with continuous focus on cost management results in a significant increase in the operating result. Furthermore, the sharp reduction in net adjustments to loans makes it possible to generate growth in the net result to around 7 billion euro.
Messina said that “looking at the 2025, we expect to exceed our target, thanks to the boost from the rise in interest rates. As we have already demonstrated, we manage to do better than announced and we clearly have excess capital.”
talking about theItalian economyhe said “it is stronger than in the past and Italy’s solid fundamentals support the economy’s resilience”: lower-than-expected energy prices should reduce Italian inflation by the end of 2023; the labor market remains solid and, as inflation slows, the economy is ready to re-accelerate; in 2024, the global recovery will also support external demand for Italian companies.
In this context, “Intesa is better equipped than its competitors thanks to an excellent risk profile, a high capital base and a well-diversified and resilient business model”. Furthermore, the bank “is prepared to continue to be successful in any rate scenario”.
Messina highlighted the “solid and sustainable creation and distribution of value“, with a cash payout ratio of 70% with “any further distributions to be evaluated on an annual basis”.