Intesa Sanpaolo: Extraordinary Net Profit Of 6.1 Billion Euros

Italy's largest banking group has decided to “revise upward” its ambitious growth targets for 2023

Outstanding results for Intesa Sanpaolo: the largest Italian banking group and one of the undisputed leaders of the European and global financial sector ended the first nine months of 2023 with a net profit of $6.1 billion, an increase of 85.3% compared to the same period in 2022. As the credit institution writes in a press release, “in the third quarter alone, the result doubled to 1.9 billion (from 957 million), exceeding all analysts’ forecasts.”

Returning to the results of the first nine months of 2023, net operating profit increased by 19% to 18.8 billion, with net interest at 10.65 billion (+65.5%) and net commissions at 6.45 billion (-3.7% ). Operating expenses were also “stable” (+0.7%) at 7.9 billion with a cost-to-income ratio falling to 41.9%. In terms of capital strength, “the CET 1 ratio was 13.6% after deducting approximately $4.3 billion of dividends accrued over the nine months and excluding the positive impact of the DTA acquisition of 120 basis points.”

The last two months of the year also promise good prospects for the institution, led by CEO Carlo Messina: in 2023, Intesa Sanpaolo expects “a significant increase in operating results, driven by sustained revenue growth, driven in turn by net interest (net interest expected to exceed 14 billion in 2023 and further grow in 2024 and 2025) and by continued focus on cost management and sharp reductions in net credit value adjustments, followed by net income growth to more than $7.5 billion.”

Therefore, this is a significant upward revision of the Group’s fundamentals: Intesa Sanpaolo previously expected 2023 profits to be “well over 7 billion” and net interest “above 13.5 billion.” For the 2024-2025 biennium, Intesa also forecasts “the prospect of net profit higher than expected in 2023.” The bank, being Italy’s largest employer with 100,000 employees, emphasized that “the implementation of the business plan for 2022-2025 is in full swing, and key industrial initiatives are progressing very well.”