Intesa Sanpaolo closed the first half of 2017 with a net profit of 1,738 billion, in line with 1,707 billion in the same period of the previous year. The figure does not take into account the public grant of 3,5 billion disbursed to offset the capital impact for the acquisition of assets and liabilities of Banca Popolare di Vicenza and Veneto Banca. By including this contribution, the net profit amounts to 5,2 billion euros. But it is above all an accounting effect since the 3,5 billion will be largely absorbed by the costs for the integration of the Veneto banks and for the exodus of personnel.
Taking into consideration only the second half of 2017, the book profit is 4,3 billion while, excluding the contribution for the purchase of the two Veneto institutions (1,7 billion in the half year) thethe amount is equal to 837 million, down by 7,1% compared to 912 million in the same period of 2016, but well above the estimates of analysts who predicted a quarterly profit of around 650 million.
The result - underlines the bank led by Carlo Messina in a note - is "in line with the half-yearly commitment to distribute 3,4 billion euro of cash dividends for 2017", after the 6,6 billion paid in first three years. For the four-year period 2014 – 2017, the institute confirms its commitment to the distribution of 10 billion in cash dividends.
As regards the acquisition of the Veneto banks, Messina underlines that "In the absence of our intervention, the consequences of a bankruptcy of the two institutions would have concerned not only the productive fabric of an area characterized by great strength but also affected the entire economy of the Village". “Our intervention – continued the CEO – saved the entire banking system from incurring extremely significant costs, necessary to guarantee the deposits of the customers of the two banks, estimated at over 12 billion. And the Italian State - he added - did not have to bear very significant costs (about 10 billion) to meet the public guarantees on bonds issued by the two Venetian banking groups".
Going back to the half-year results, revenues beat expectations, reporting an intermediation margin of 4,348 billion euros, against the estimates of 4,313. Operating income stood at 8,6 billion (-1%), with net interest at 3,6 billion (-1,8%) and net fee and commission income at 3,8 billion (+5,8%). Operating costs stable at 4,2 billion, for a cost/income ratio that rose to 49,2%. With reference to capital solidity, the pro forma Cet1 ratio when fully loaded is 13%, the "top level among the major European banks", highlights the bank, taking into account 1,6 billion in dividends accrued in the first half. The gross flow of non-performing loans fell to 1 billion euro in the second quarter alone (-14% compared to the first quarter), the lowest value ever, while the stock of non-performing loans decreased by a good 10 billion euros in 21 months gross of adjustments to €27,8 billion (-6% on December 2016).
For the entire financial year, Intesa Sanpaolo expects un increase in operating profit, resulting from the growth in revenues and ongoing cost management, and gross current income, also excluding the public cash contribution of 3,5 billion euro to offset the impact on capital ratios deriving from the purchase of assets and liabilities of BPVI and Veneto Banca, with a reduction in the cost of risk.
Remaining in the future, as regards the second half of the year, the recognition of approximately 800 million euros of net capital gain deriving from the Allfunds sale, signed in the first quarter, will take place. And this makes it possible to exceed the amount of cash to be allocated to the dividend.
Talking about the first six months of 2017 loans to customers amounted to 394 billion, up by 1,2% compared to December, 24 of which from the acquisition of business branches of the Veneto banks, while customer financial assets settled at 920 billion and direct banking deposits at 412 billion (30 from Venetian banks). 326 billion in assets under management, while liquid assets in the six months of reference reached 159 billion (9 from Veneto banks) and readily available liquidity 81 billion. Finally, in the first half of 2017, Intesa disbursed 25 billion euro of new medium and long-term credit to households and businesses (+6,5% compared to 2016). Overall, according to the information provided by the institute, there are around 11 Italian companies listed as performing from non-performing credit positions in the first half of 2017 and around 63 since 2014.
Finally, it should be emphasized that, Intesa Sanpaolo has written down the investment in the Atlante fund by a further 188 million in the second quarter of 2017. The overall reduction in the value of the stake thus reaches 676 million, equal to 98,5% of the 686 million actually paid into the fund (against a total commitment of 845 million).
On Piazza Affari, after a morning of slight progress, the title reversed course after the publication of the half-yearly and currently marks a fall of 1,24% to 2,876 euros.
