Intesa Sanpaolo S.p.A. Q4 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

  • Net Income: €5.5 billion in 2022 excluding Russia de-risking provisions, surpassing the business plan target. Including Russia-related provisions, net income was €4.4 billion, the bank’s best result in 15 years.
  • Dividends & Share Buybacks: Total cash dividends of €3 billion (70% payout ratio). A second tranche of the €3.4 billion buyback program will be launched shortly.
  • Capital Position: Fully phased-in Common Equity Tier 1 ratio rose to 13.5% in Q4, a 110 bps increase driven by RWA reduction. Including DTA absorption, CET1 would exceed 14% over time.
  • 2025 Guidance: Net income target of €6.5 billion expected to be comfortably exceeded due to rising interest rates, conservative risk provisioning and cost control.
  • De-risking: Gross NPLs reduced by €4.6 billion in 2022; net NPL ratio now at 1%, achieving business plan target early. Russia exposure reduced to below 0.3% of group exposure.
  • Q4 Highlights:
    • Net interest income up nearly 60% YoY and +€700 million QoQ.
    • Q4 net income €1.1 billion
    • €1 billion in overlays provisioned in Q4 alone.

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Operator: Good afternoon, ladies and gentlemen, and welcome to the conference call of Intesa Sanpaolo for the presentation of the full year 2022 results, hosted today by Mr. Carlo Messina, Chief Executive Officer. My name is Raziel, 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 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: So, thank you very much. Welcome to our 2022 results conference call. This is Carlo Messina, Chief Executive Officer. And with me are Stefano Del Punta, our CFO; and Marco Delfrate and Andrea Tamagnini, Investor Relations Officers. Today, I'm going to walk you through a very high-quality set of results. We are delivering on our commitments. And for 2022, we will distribute cash dividends of €3 billion, and this is equal to a 70% payout ratio as promised. In the next few days, we will launch the second tranche of the share buyback, bringing the total additional distribution to €3.4 billion. Full year net income was €5.5 billion when excluding provisions for Russia de-risking. This is well above our 2022 business plan target. Even including Russia de-risking, net income was €4.4 billion, the best result in 15 years and well above the guidance we gave following the invasion of Ukraine. Looking ahead to 2025, the final year of our bus

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