How is Intesa Sanpaolo doing (and what dividend it will distribute)
Intesa Sanpaolo closed the first nine months of the year with a net profit of € 4 billion and approved the distribution of an interim dividend of € 1.4 billion, equal to € 0.0721 per share. All the details
Intesa Sanpaolo closed the third quarter of the year with a net profit of 983 million, higher than the 798 million forecast by the consensus of the analysts. The result is not comparable with the 3.8 billion in the same period of 2020, which included the negative goodwill originating from the acquisition of Ubi Banca.
HOW INTESA SANPAOLO CLOSED THE FIRST NINE MONTHS OF 2021
Intesa Sanpaolo closed the first nine months of the year with a net profit of 4 billion, thus reaching the minimum target set for the whole of 2021. However, the bank has not, at the moment, revised its target upwards, which continues to forecast "a net profit of over 4 billion" in 2021. "The results of the first nine months of 2021 confirm Intesa Sanpaolo's ability to effectively address the complexity of the pandemic context – the institute claims – and have already led to the 4 billion euros of minimum net profit expected for the whole of 2021 ".
THE NINE-MONTH TREND OF INTESA SANPAOLO
In the nine months the profit amounted to 4 billion, down by 37.2% compared to the accounting result of a year earlier (+ 28.7% net of the Ubi godwill). In the January-September period, net operating income increased by 15.4% to 15.9 billion, with net interest at 6 billion (+ 7.2%) and net commissions to 7.1 billion (+ 23.6%) . Operating costs increased by 13.1% to 7.9 billion, for a cost / income ratio which fell to 50.1%. As for capital solidity, the Cet1 coefficient net of accrued dividends stands at 14.3% based on the transitional criteria in force in 2021 (the pro forma figure at full capacity is 15.1%).
ANALYSIS OF THE INCOME STATEMENT OF INTESA SANPAOLO
Returning to the analysis of the income statement, in the nine months net adjustments on loans substantially halved compared to 2020 to 1.5 billion, including 360 million on 'specific portfolios to accelerate the reduction of impaired loans'. Last year the figure (3.05 billion) included 1.4 billion set aside 'for the future impacts of Covid-19'. As for the balance sheet aggregates, loans to customers amounted to 463 billion + 0.1% compared to 31 December 2020. The total of net impaired loans stood at 9.1 billion, -14.9% compared to the end of last year year.
WHAT INTESA SANPAOLO SAYS
Overall, the press release points out , Intesa has reduced gross impaired loans by approximately 47 billion from the peak of September 2015 and by approximately 34 billion since December 2017, "exceeding in advance, by approximately 8 billion, the reduction target of approximately 26 billion billion expected for the entire four-year period of the 2018-2021 Business Plan ".
THE INCIDENCE OF NON-PERFORMING LOANS
The incidence of impaired loans on total loans in September 2021 was 3.8% gross of value adjustments and 2% net. The coverage level is 49.9% and 60.7% for bad loans only. Customer financial assets amounted to 1,241 billion, + 4.7% compared to 31 December 2020, with direct bank deposits amounting to 536 billion (+ 1.7%), direct insurance deposits and technical reserves to 204 billion (+ 0.2%) and indirect deposits of € 704 billion (+ 6.9%).
THE CONTRIBUTION OF THE DIVISIONS OF INTESA SANPAOLO
In terms of the results of the individual divisions, Banca dei Territori closed the nine months with a profit of 398 million, compared to a loss of 501 million in the same period of 2020. The Imi Cib division contributed with 1.8 billion (+ 22.5%), foreign subsidiaries with 393 million (+ 30.1%), Private Banking with 862 million (+ 35.7%), Asset Management with 557 million (+ 46.9%) and Insurance with 617 million (+ 29.6%).
THE DISTRIBUTION OF THE DIVIDEND
The board of Intesa Sanpaolo, as expected, has approved the distribution of an interim dividend of 1.4 billion, equal to 0.0721 euros per share, which will be paid on November 24, with coupon detachment on the 22nd. was taken 'as there are no contraindications deriving from the foreseeable results for the fourth quarter of 2021 nor' the recommendations of the regulators regarding the capital requirements applicable to Intesa Sanpaolo which prevent such distribution '. Overall, dividends of 2.8 billion were accrued in the first nine months of the year.
As for the dividend policy, Intesa also confirms 'the distribution of an amount of cash dividends corresponding to a payout ratio equal to 70% of net profit on the results of 2021'.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/come-va-intesa-sanpaolo-e-che-dividendo-distribuira/ on Wed, 03 Nov 2021 13:59:06 +0000.