Internet revenue at Intesa Sanpaolo, Italy’s largest retail lender, beat expectations in the course of the second quarter supported by decrease mortgage loss provisions for the fallout from the coronavirus pandemic.
The Turin-based lender, which is in the course of an acquisition of smaller rival UBI Banca, mentioned on Tuesday its web revenue for the three months was €1.42bn, effectively above analysts’ estimates of about €900m. Intesa mentioned it booked €880m of coronavirus-related fees, out of a complete of €1.4bn in mortgage loss provisions.
Carlo Messina, chief government, mentioned Intesa’s outcomes have been one of the best for the reason that first half of 2008, regardless of the tough working setting. Distinctive progress in its insurance coverage enterprise and a very good efficiency by the wealth administration division boosted outcomes regardless of decrease charges from funding banking, he mentioned.
“Outcomes for the primary half of 2020 affirm Intesa Sanpaolo’s potential to successfully face the difficult aftermath of the Covid-19 pandemic,” he mentioned.
Administration additionally confirmed its intention to distribute money dividends amounting to a 75 per cent payout this 12 months and 70 per cent in 2021.
Intesa’s shares have been up 4.Four per cent on Tuesday morning.
Final week Intesa introduced it had gained majority assist for its takeover of UBI, first introduced earlier than the pandemic, after including a money sweetener to its provide to encourage shareholders to tender their shares.
“Now we’re opening a brand new chapter within the group’s historical past,” Mr Messina mentioned.
Intesa will unveil a brand new marketing strategy for the mixed group subsequent 12 months, which might be Europe’s second-largest financial institution by market capitalisation and eighth by complete belongings.
Mr Messina mentioned greater than 90 per cent of UBI’s shares have been tendered, and analysts mentioned this robust majority must speed up the total integration between the 2 banks.
“Collectively we will reinforce a bunch that may be a nationwide champion and a pacesetter in Europe,” mentioned Mr Messina.
The chief government added that he anticipated the group’s income to be a minimum of €3.5bn in 2021, with out taking UBI’s contribution into consideration, and to rise to a minimum of €5bn in 2022 after the smaller rival is totally built-in.
Victor Massiah, UBI’s chief government, introduced his resignation on Monday with speedy impact, after unveiling the higher than anticipated second-quarter outcomes for the financial institution.