Q2 2024 Intesa Sanpaolo SpA Earnings Call Transcript
Key Points
- Intesa Sanpaolo (IITSF) reported a record net income of EUR 4.8 billion for the first half of 2024, marking the best six months in 17 years.
- The company increased its net income guidance to above EUR 8.5 billion for both 2024 and 2025, reflecting strong financial performance.
- Earnings per share grew by 15% year-over-year, with plans to distribute over EUR 7.4 billion to shareholders, including a EUR 3 billion interim dividend.
- The common equity ratio improved to approximately 13.5%, indicating a strong capital position.
- Asset quality remains excellent, with non-performing loan (NPL) stock and inflows at historical lows, and a best-in-class cost-income ratio of 38%.
- Despite strong performance, there is caution regarding future profitability due to potential managerial actions and economic uncertainties.
- The company faces potential regulatory headwinds, including a 40 basis points impact from Basel IV in 2025.
- There is a noted decline in insurance income and deposits, attributed to seasonality and a shift in customer preference towards asset management products.
- The cost of risk is expected to be between 30 and 40 basis points, which may impact future profitability.
- Intesa Sanpaolo (IITSF) is limited in participating in further consolidation within the Italian banking sector due to its significant market share.
Good afternoon, ladies and gentlemen, and welcome to the conference call of Intesa Sanpaolo for the presentation of the first half 2024 results, hosted today by Mr. Carlo Messina, Chief Executive Officer. My name is Sandra, and I will be your coordinator for today's conference. (Operator Instructions) I remind you that today's conference is being recorded. At this time, I would like to hand the call over to Mr. Carlo Messina, CEO. Sir, you may begin.
Welcome to our first half results conference call. This is Carlo Messina, Chief Executive Officer; and I'm here with Luca Bocca, our CFO; and Marco Delfrate and Andrea Tamagnini, Investor Relations Officers. We just delivered net income of EUR4.8 billion in the first half of the year, of which EUR2.5 billion in Q2. These were the best six months of the past 17 years and the best ever Q2. These are high quality results.
Reflecting a strong acceleration in commissions and insurance income and
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