FX.co ★ Intesa Sanpaolo Q1 Results Up, Backs FY24 View For Solid Revenue Growth; Plans EUR 1.7 Bln Buyback

Italian banking giant, Intesa Sanpaolo, announced on Friday that its net income for the first quarter significantly increased by 17.6%, reaching 2.30 billion euros; a substantial rise from the previous year's 1.96 billion euros.

The bank also detailed that its gross income saw a growth of 16.9%, escalating to 3.93 billion euros from last year's 3.36 billion euros. An increase was also observed in the operating income, which grew by 11.1%, totaling 6.73 billion euros - a jump from the previous year's 6.06 billion euros. This further pushed up the operating margin by 18.2%.

Breaking down the income streams, net interest income climbed 20.8%, while net fee and commission income escalated by 6.3%. Income generated from the insurance business marked a rise of 14.6%.

Looking to the future, Intesa Sanpaolo has set optimistic targets for fiscal 2024, expecting solid revenue growth. This optimism is primarily attributed to anticipated increases in net interest income and net fee and commission income, as well as a growth in the returns of its insurance business.

The bank also highlighted that they are swiftly implementing the 2022-2025 Business Plan with a goal of exceeding 8 billion euros in net income by 2024 and 2025.

Additionally, Intesa Sanpaolo envisages a rise in the dividend per share for the years 2024 and 2025, relative to that of 2023. A major stock repurchase program of 1.7 billion euros is also in the pipeline, set to commence in June 2024.

The bank stated that decisions regarding additional distributions for 2024 and 2025 will be conducted on an annual basis.

Meanwhile, in Milan, shares of Intesa Sanpaolo were trading at a slight decline of 1.16%, priced at 3.53 euros.