Intesa Sanpaolo S.p.A. Q3 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

  • Net Income: €6.1B for 9M 2023 (+85% YoY), with €1.9B in Q3 alone—the best nine-month and Q3 results in the last 16 years.
  • Upgraded Guidance: FY 2023 net income guidance raised to >€7.5B.
  • Operating Metrics:
    • Net interest income (NII) up 65% YoY YTD and over 6% QoQ in Q3.
    • Operating margin at an all-time high, with cost/income ratio at its lowest ever.
    • Q3 operating income and margin were record-setting.
  • Capital & Liquidity:
    • Common Equity Tier 1 ratio at 13.6% (15% pro forma including DTAs).
    • Excess capital confirmed; additional capital distribution in 2023 approved in principle, with specifics to be announced year-end.
    • Liquidity remains strong, with €3.5B growth in direct deposits in Q3.
  • Credit Quality:
    • Net NPL ratio at 1%, Stage 2 loans dropped 21% since beginning of year and 6% QoQ.
    • Cost of risk at 28bps YTD; NPL coverage ratio increased to 50.4%.
    • Russia exposure nearing zero.
  • Distributions:
    • €4.3B in cash dividends accrued; €1.7B share buyback completed.

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Operator: Good afternoon, ladies and gentlemen, and welcome to the Conference Call of Intesa Sanpaolo for the presentation of the Third Quarter 2023 Results hosted today by Mr. Carlo Messina, Chief Executive Officer. My name is Razia and I will be your coordinator for today’s conference. At the end of the presentation there will be a question-and-answer session. [Operator Instructions] I remind you all that today’s conference is being recorded. At this time, I would like to turn the conference over to Mr. Carlo Messina, CEO. Sir, you may begin. Carlo Messina: Thank you. So welcome to our nine-month 2023 results conference call. This is Carlo Messina, Chief Executive Officer. And I’m here with Stefan Del Punta, CFO; Marco Delfrate and Andrea Tamagnini, Investor Relations Officers; and Luca Bocca, Head of Group Planning and Control and Deputy CFO. Also with us are Massimo Proverbio, the Group Chief of our Technology and Data and Stefano Barrese, Chief of our Banca dei Territori Division. Today, I will walk you through a very high quality set of results, but also I will update you on our tech transformation that is moving quickly with more than €2 billion already invested. Massimo, Stefano will help answer any question you might have regarding our journey. In addition, I will give you an update on the results of our main ESG initiatives, confirming our world class position in social impact and strong focus on climate. This is all about building a sustainable and profitable bank

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