(Telestock) – Intesa Sanpaolo recorded in the first half of 2024 “the best half-year net result since 2007with a high and sustainable value creation and an extremely solid capitalisation, from which derives a Improved guidance of net result for 2024 and 2025″. This was stated by Carlo Messina, Managing Director and CEO of Intesa Sanpaolo, in the call with analysts on the results of the first half of 2024.
Messina highlighted the net result of 5 billion euros excluding the final contribution to the Deposit Guarantee Scheme, the “strong acceleration of commissions” (+7% vs 1H23, +5% vs 1Q24) and insurance activity (+6% vs 1H23, the best half-year ever), while the stock of impaired loans is the lowest ever (net NPL ratio at 1.0%) with further growth in the NPL coverage ratio (+1.7pp vs 1H23).
The net interest are expected to be around 15.5 billion euros in 2024 also thanks to the contribution of hedging of sight items. The group has more than 1,350 billion euros in customer financial assets, ready to leverage its leadership in Wealth Management, Protection & Advisory. Messina is convinced that “the well diversified business model allows us to succeed in any scenario rates thanks to a strong contribution from Wealth Management”. In addition, 100 billion euros of assets have been “identified to fuel growth in managed savings, with our delivery machine already at work”.
“The Net profit trend is significantly accelerating and we can go beyond the outlook that we have given to the market – he said in response to analysts’ questions – However, we prefer to go quarter by quarter, with an analysis of what is happening. Furthermore, we can imagine some actions to improve profitability for the future, with integration expenses, possible increase in coverage for NPL sales or other issues to take into account at the end of the year”.
The banker explained that “this quarter could be the peak for net interestbut still 2024 will be satisfactory, as well as 2025 with a good performance that could be in a range between 2023 and 2024″.
Although we will have to wait for the next few months for a confirmation, Messina is confident that “we would be in a position to propose to our Board of Directors at the end of the year a further tranche of buyback. We will decide at the end of the year, but we are confident enough to be able to make a new buyback even this year”.
“The cost income ratio is a very important area for us – said the CEO – We are the bank in Europe with the highest growth in core revenues, but at the same time we have acted on costs, on the different levers of the cost base. We want continue to fund significant investments in technology with cost reductions in other areas. We have exits, other branch closures and when we have isytech we will also accelerate the reduction of IT costs”.