MILANO – Intesa Sanpaolo closed the first nine months of the year with a net profit up to 4.01 billion, up 28.7% compared to 3.1 billion in the same period. In the first nine months of 2020, including the provisional negative goodwill originating in the third quarter of last year from the acquisition of Ubi Banca, the profit was € 6.4 billion. In the third quarter the net profit recorded by the bank led by Carlo Messina was equal to 983 million euros, an increase compared to the same period last year.
The nine-month figure means that the 2021 target has already been reached, for which the group expects a net profit of over 4 billion euros.
As regards the dividend policy, based on the results of 2021, in line with the 2018-2021 Business Plan, the distribution of a cash amount corresponding to a payout ratio equal to 70% of the net profit is expected. Meanwhile, the board of directors has approved the distribution of a dividend of 1.4 billion euros (7.21 euro cents per share), as an interim dividend on the results of 2021. The interim dividend will be paid on November 24, 2021 (with coupon detachment on November 22 and record date on November 23). The down payment shows a high return. Comparing the unit amount to the reference price of the share recorded yesterday, the result is a dividend yield of 2.9%; if we also compare the total unit amount of 13.53 euro cents paid in 2020 (3.57 cents in May 2021 and 9.96 cents in October 2021), the dividend yield corresponding to the overall distribution made this ‘year is equal to 8.3%
In the first nine months of the year, Intesa Sanpaolo recorded net interest income of € 5.95 billion, down by 4.2% compared to the € 6.21 billion of the same period last year. Net commissions amounted to € 7.01 billion (+ 11.5%). The result of the insurance business amounted to 1.22 billion. Net operating income amounted to € 15.77 billion (+ 3.4%). Operating costs amounted to € 7.9 billion, down by 2.3% compared to the 8.1 billion in the first nine months of 2020, following a decrease of 0.6% for personnel expenses, of 5.9% for administrative expenses and 3.3% for depreciation.
In the note on the accounts, the bank notes a “very solid” capitalization with ratios “well above” the required requirements. Specifically, the Cte1 calculated by applying the transitional criteria in force for 2021 is equal to 14.3%, the Cet 1 when fully operational is pai 13.8%, while the pro-forma Cet 1 ratio when fully operational is equal to 15, 1%, “top level among the major European banks”.
In the new business plan “we want to create the conditions for sustainable and significant growth in net profit”, added the CEO Carlo Messina, during the conference call with financial analysts to illustrate the results for the first nine months of 2021. “We intend to enter the new plan – he added – with zero problems related to the cost of risk and non-performing loans. In the fourth quarter we will analyze all our actions to strengthen future profitability”.