Intesa Sanpaolo beat analysts’ estimates and closed the first quarter with a net profit of approximately 2 billion euros (1.96 billion), up sharply compared to 1.04 billion in the same period last year and 1.08 billion in the fourth quarter of 2022. The result is driven by net interest.
The new estimates
For 2023, the bank expects a significant increase in operating margin, deriving from solid revenue growth driven by net interest (net interest in 2023 expected to be over €13 billion) and a continued focus on cost management, and a sharp decline in net adjustments to loans, with a consequent increase in net income to approximately 7 billion euro.
The 2022-2025 business plan formula of Intesa Sanpaolo is confirmed and the “relative industrial initiatives are well underway”, explains the bank in the note on the results for the first quarter. The group sees a clear and sharp upside outlook for its 6.5 billion euro net profit target in 2025 from rising interest rates.
The numbers
Intesa Sanpaolo’s consolidated income statement for the first quarter of 2023 records net interest of 3,254 million euro, up 66.3% compared to 1,957 million in the same period last year. Q1 2023 net fee and commission income decreased by 6.6% compared to €2,289 million in Q1 2022.
In detail, there was a 1.6% growth in commissions from commercial banking activities and an 8% decrease in commissions from management, brokerage and consultancy activities, within which there was an increase of 0.9% for the component relating to brokerage and placement of securities and a decrease of 12.8% for that relating to managed savings (with performance fees of 8 million euro in the first quarter of 2022) and of 1.7% for that relating to insurance products.
2023-05-05 23:13:17
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