Intesa Sanpaolo S.p.A. Q2 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

  • Record Profitability: Delivered best-ever 6-month net income of €5.2 billion, up 9% YoY, and Q2 net income of €2.6 billion, the highest Q2 result ever. ROE reached 20% (24% return on tangible equity).
  • Outlook Raised: Full-year 2025 net income guidance upgraded to "well above" €9 billion, including Q4 managerial actions. Previously guided for €8.5B+ (FY 2024).
  • Shareholder Returns: Capital returns in 2025 will total ≥€8.2 billion: final dividend (€3B), €2B buyback (launched in June), and €3.2B interim dividend (to be paid in November). Additional distribution to be evaluated year-end.
  • Revenue Drivers:
    • Net interest income grew 5% QoQ in Q2, despite declining Euribor rates.
    • Net interest income guidance raised for full-year 2025 to exceed 2023 performance, driven by core deposit hedging, securities portfolio expansion, funding optimization, and loan growth.
    • Commissions up 5% YoY in H1, with Wealth Management & Protection commissions up 9%. Strong gross inflows above €33 billion in Q2.
    • Insurance income also a growth contributor, especially in non-motor P&C, with significant untapped potential across individual and corporate clients.

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Operator: Good afternoon, ladies and gentlemen and welcome to the conference call of Intesa Sanpaolo for the presentation of the First Half '25 results hosted today by Mr. Carlo Messina, Chief Executive Officer. My name is Sarah, and I will be your coordinator for today's conference. At the end of the presentation, there will be a Q&A session. [Operator Instructions] I remind you that today's conference is being recorded. At this time, I would like to hand the call over to Mr. Carlo Messina, CEO. Sir, you may begin. Carlo Messina: Welcome to our First Half 2025 results conference call. This is Carlo Messina, Chief Executive Officer; and I am here with Luca Bocca, our CFO; and Marco Delfrate and Andrea Tamagnini, Investor Relations Officers. We are navigating the current geopolitical uncertainty from a position of strength, thanks to our resilient and well-balanced business model. In fact, we just delivered our best ever 6-month net income at EUR 5.2 billion. That means a return on equity of 20%. So return on equity of 20%, 24% on tangible. Earnings per share grew 12% on a yearly basis. Net income in the second quarter were also the best ever at EUR 2.6 billion. These top-notch results are marked by record high commissions and insurance income. And net interest income grew strongly in the second quarter even as rates declined, and we continue to manage revenues in an integrated manner. I want to stress that the Italian economy continues to show strong resilience. Italian SMEs

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