Intesa Sanpaolo raises target to nine billion profit in 2025

In 2024, the manager continued, 'we expect to achieve a net profit in excess of EUR 8.5 billion, the result of significant actions aimed at further sustainability of results, while the net profit target for the 2025 financial year has been increased to around EUR 9 billion, thanks to our bank's high potential to develop profitability organically'. In the first nine months of 2024, 'net profit amounted to EUR 7.2 billion, of which EUR 2.4 billion in the third quarter. Of the cash dividends - amounting to 5 billion - accrued as at 30 September, about 3 will be distributed to our shareholders in November as interim dividend'.

Intesa Sanpaolo, the banker continued, has developed "a unique model in Europe for the consolidated leadership of its divisions serving families and businesses, the significant Wealth Management, Protection and Advisory component, the management of international activities marked by efficiency, the technologically advanced digital offering, the "Zero NPL" bank status and an ESG profile of great international importance". "Our strengths - represented by high profitability, sustainable results, capital strength and low risk profile - allow us to play a unique role in Italy in favour of the real and social economy".

The implementation of the 2022-2025 Business Plan is thus proceeding 'at full speed', the bank explains, with a net interest perspective 'at over EUR 15.5 billion'. For 2025, in particular, expectations are for 'growing revenues'. And even with a gradually decreasing interest rate scenario, the bank expects 'resilience in net interest', thanks to the greater contribution of hedging on sight items and the increase in the volume of loans. At the same time, supporting revenues will be the expected "increase in net commissions and in the result of the insurance business", a result that the group aims to generate by exploiting the balanced model between Wealth Management, Protection & Advisory activities.

Operating costs, on the other hand, are expected to fall. Despite investments in technology, the bank in fact expects to reduce expenses thanks to the union agreement concerning Italy that has just been announced, which sees the voluntary exit by 2027 of 4,000 people close to retirement age, of which 2,350 by 2025, and the hiring of 3,500 young people by the first half of 2028, of which 1,500 Global Advisors for commercial activities in the network, particularly in Wealth Management & Protection. Expected by 2027, through natural turnover, 3,000 exits for people in Italy, of which 1,000 by 2025, and 2,000 net exits in international subsidiaries, of which 500 by 2025.

The bank also expects 'additional benefits' from technology, for example through further 'branch rationalisation and streamlining of IT processes' and 'rationalisation of real estate';

The cost of risk is expected to be 'low' with a 'low stock of impaired loans' due to a 'high quality' loan portfolio and overlays, while 'proactive credit management' is expected to continue.

As per tradition, Intesa Sanpaolo confirms a generous remuneration policy with a "strong distribution of value". In the forecasts, the cash payout ratio is confirmed at 70% of consolidated net profit for each year of the Business Plan, with "an increase in the dividend per share relative to 2024 and 2025" compared to the amount relative to 2023. Then a "further distribution for 2024" to be quantified "when the annual results are approved". And finally 'further future distributions' to be assessed year by year.