Intesa Sanpaolo presents its financial statements: profit at 4.35 billion
Intesa Sanpaolo closes 2022 with a net profit of 5.5 billion euros excluding 1.4 billion euros of provisions and value adjustments for Russia and Ukraine and exceeding the target of the 2022-2025 business plan by more than 5 billion for 2022. Book net income stood at 4.35 billion eurosup 4% compared to 2021. In the second half of 2022 it was reduced by 68% (about 2.5 billion euro) exposure to Russia, which fell below 0.3% of the group’s total customer loans.
The consolidated income statement for the fourth quarter 2022 records net interest of 3,064 million euros, up by 28.4% versus €2,387m in Q3 2022 and 56.7% versus €1,955m in Q4 2021. Net fee and commission income amounted to €2,222m, up 3.2% on the €2,153m in Q3 2022. Operating income amounted to €5,674m, up 13.1% on the €5,015m in the third quarter of 2022 and by 13.2% compared to €5,012 million of the fourth quarter of 2021.
Net adjustments to loans amounted to €1,185m (including around €10m for exposure to Russia and Ukraine, around €1bn for overlay and to encourage de-risking and approximately €0.2 billion of release of generic adjustments made in 2020 for future impacts of Covid-19), compared to €496 million in the third quarter 2022 (which included €196m for exposure to Russia and Ukraine) and €1,222m in Q4 2021 (which included additional value adjustments of 1,247 million to accelerate the reduction of non-performing loans).
Net income of 1,070 million euros in the fourth quarter of 2022 is up compared to the 930 million in the third quarter of 2022 and 179 million in the fourth quarter of 2021. The 2022 results achieved by Intesa Sanpaolo “confirm the bank’s ability to generate solid profitability and to create value for all stakeholders even in complex contexts thanks to the well-diversified and resilient business model”, states the bank, announcing the results of the 2022.
Intesa Sanpaolo will distribute 1.6 billion of the balance of 2022 dividends, in addition to the 1.4 billion of 2022 interim dividends paid in November 2022. The bank’s board of directors also approved the execution of the buyback for the remaining amount of 1.7 billion euro authorized by the ECB. The implementation of Intesa Sanpaolo’s 2022-2025 business plan “is proceeding at full speed and the main industrial initiatives are well underway”. This was announced by the banking institution, publishing the results achieved in 2022. “The formula of the plan and, in particular, the objective of 6.5 billion in net profit by 2025 are confirmed, with further potential growth deriving from the increase in interest rates” underlines the bank.
“Today we presented results of the highest quality. 2022 is the best financial statement in the history of Intesa Sanpaolo. The fourth quarter was the best quarter ever for revenues – up by 13% on the previous year – with a strong acceleration of the interest margin component“. This was stated by the managing director and CEO of Intesa Sanpaolo, Carlo Messina, commenting on the results achieved by the bank in 2022.
“In the second half of the year, we massively reduced our exposure to Russia, which is now below 0.3% of customer loans in the Group. We will continue to work to further reduce the limited residual exposure” he continues Messina. “Remunerating shareholders while maintaining a solid capital position – adds the CEO – is an essential element of ours DNA and remains our priority”.
Over the next few days, he stresses Messina“we will launch the second tranche of the buyback of treasury shares, bringing the total amount to 3.4 billion euros. This means that this year we will repay at least 5.3 billion taking into account the dividend that we will pay in May subject to approval by the shareholders’ meeting, the second tranche of the buyback and the interim dividend which, as usualwe will pay in November, based on the forecast of more than 5.5 billion net income for the whole anno“.
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