RU IT EN

Electronic banking

Contact us

8 800 2008 008

Branches ATMs

Intesa Sanpaolo: consolidated results at September 30th 2014

Turin - Milan, November 14th 2014 – At its meeting today, the Intesa Sanpaolo management board approved the consolidated interim statement as at September 30th 2014. The Group has achieved a strong improvement in profitability - fully in line with the 2014-2017 Business plan targets - despite prolonged market challenges. Its balance sheet remains solid, as highlighted by the asset quality review and the stress test, carried out by the European central bank and the European banking authority, from which Intesa Sanpaolo has clearly emerged as one of the best European banks.

Intesa Sanpaolo is a winner, among European banks, both in the comprehensive assessment and in profitability growth, fully in line with its 2014-2017 business plan targets. Net income for 9M 2014 at more than €1.6bn, excluding the retroactive increase in tax rate in relation to the bank of Italy stake; stated net income at €1.2bn.

Positive trend in net interest income, sustained growth in commissions (9M 2014 level is the highest since 2007) with robust performance of assets under management. Reduction in provisions which reflect improving credit trend and include adjustments resulting from the asset quality review.

NPL inflow from performing loans in 9M 2014 at its lowest level since 2011.

Robust net income:

• more than €1.6bn in 9m 2014, excluding the retroactive increase in tax rate in relation to the bank of italy stake
• stated income at €1,203m in 9m 2014, almost doubling the 9m 2013 figure, despite
an effective tax rate at 52%
• €483m in q3 2014

Strong growth in pre-tax income:
• up 65.5% vs 9m 2013

Significant increase in core operating margin:
• up 14.9% vs 9m 2013, excluding profits on trading

Positive trend in net interest income:
• up 3.9% vs 9m 2013

Sustained growth in net fees and commissions:
• up 9.9% vs 9m 2013

Continuous cost management:
• operating costs up 1.4% vs 9m 2013

Reduction in provisions which reflect improving credit trend and include adjustments due to the outcome of the AQR:

• loan loss provisions of €3,504m in 9m 2014 vs 4,013m in 9m 2013 (down 12.7%)
• NPL inflow from performing loans in 9m 2014 at its lowest level since 9m 2011, net down 18% and gross down 17% vs 9m 2013

A further strengthening of a strong capital base which is well above regulatory requirements. common equity ratio, net of €750m dividends accrued in the first nine months of 2014:

• 13.3% on a transitional basis for 2014 (1) (“phased in”)
• 13% on a fully loaded basis (2), with excess capital (3) of €10.1bn which compares with excess capital of €12.7bn after the AQR (4) and €10.9bn after the stress test (5)

HIGHLIGHTS:

OPERATING INCOME:

• Q3 2014
-5.6% at €4,206m vs €4,457m in q2 2014;

• 9M 2014
+3.7% at €12,771m vs €12,317m in 9m 2013

OPERATING COSTS:

• Q3 2014
+1.1% at €2,067m vs €2,045m in q2 2014;

• 9M 2014
+1.4% at €6,198m vs €6,110m in 9m 2013

OPERATING MARGIN:

• Q3 2014
-11.3% at €2,139m vs €2,412m in q2 2014;

• 9M 2014
+5.9% at €6,573m vs €6,207m in 9m 2013

INCOME BEFORE TAX FROM CONTINUING OPERATIONS:

• Q3 2014
-27.2% at €888m vs €1,220m in q2 2014;

• 9M 2014
+65.5% at €3,061m vs €1,849m in 9m 2013

NET INCOME:

• Q3 2014
€483m vs €217m in q2 2014;

• 9M 2014
€1,203m vs €640m in 9m 2013

CAPITAL RATIOS: pro-forma common equity ratio after accrued dividends (6):

• 13% fully loaded (7);
• 13.3% phased in (8)

________
(1) Including Q3 net income after deduction of pro-quota dividends; excluding it, phased-in common equity ratio at 13.2%.

(2) Estimated applying the parameters set out under fully loaded Basel 3 to the financial statements as at September 30th 2014, considering the total absorption of deferred tax assets (DTAs) related to the goodwill realignment, the expected absorption by 2019 of DTAs on losses carried forward, and the effect of the Danish compromise (under which insurance investments are risk weighted instead of being deducted from capital, with a benefit of nine basis points).

(3) Compared with Basel 3 maximum compliance level for global SIFIs of 9.5% (4.5% common equity + 2.5% conservation buffer + 2.5% current maximum global SIFI buffer).

(4) Calculated vs the 8% threshold of the AQR (the review on the asset quality of European banks conducted by regulatory authorities); the calculation takes into account the capital gain deriving from the stake in the bank of Italy and the other capital measures carried out in 2014.

(5) Calculated vs the 5.5% threshold under the adverse scenario of the stress test (the exercise on the impact of a negative macroeconomic scenario on European banks’ capital, conducted by regulatory authorities); the calculation takes into account the capital gain deriving from the stake in the bank of Italy and the other capital measures carried out in 2014.

(6) Equal to 750 million euro, which represents the nine-month quota of 1 billion euro dividends envisaged in the 2014-2017 Business Plan for 2014.

(7) Estimated by applying the parameters set out under fully loaded Basel 3 to the financial statements as at September 30th 2014, considering the total absorption of deferred tax assets (DTAs) related to the goodwill realignment, the expected absorption by 2019 of DTAs on losses carried forward, and the effect of the Danish compromise (under which insurance investments are risk weighted instead of being deducted from capital, with a benefit of nine basis points).

(8) Including Q3 net income after deduction of pro-quota dividends; excluding it, phased-in Common Equity ratio at 13.2%.
 

All press-releases

Your browser is outdated! The site will not work properly. To fix this problem, click here

×