ISP: Consolidated Results as at 30 September 2021
Turin - Milan, 3 November 2021 – At its meeting today, the Board of Directors of Intesa Sanpaolo approved the consolidated interim statement as at 30 September 2021.
The results for the first nine months of 2021 have confirmed Intesa Sanpaolo’s ability to respond effectively to the complexities brought about by the pandemic and have already made it possible to achieve the minimum net income of €4bn envisaged for full-year 2021.
The results reflect Intesa Sanpaolo’s sustainable profitability deriving from a solid capital base and liquidity position, a resilient and well-diversified business model, strategic flexibility in managing operating costs and asset quality. These features have made it possible to effectively mitigate the impact of the adverse scenario of the 2021 EBA/ECB stress test and are reflected in a low risk profile bolstering the support provided to Italy by the Group, which is also committed to becoming a reference model in terms of sustainability and social and cultural responsibility.
Value generation for all stakeholders will be accreted by synergies estimated at over €1bn deriving from the merger of UBI Banca, successfully completed with no social costs, and by over €6bn in 2020 and almost €500m in 9M 2021, both out of pre-tax profit, devoted by the Group to further strengthening the sustainability of results.
In the first nine months of 2021, the Group recorded:
- net income to €4,006m in 9M 2021, up by 28.7% versus €3,112m in 9M 2020 excluding the provisional negative goodwill generated in Q3 2020 by the acquisition of UBI Banca;
- growth in gross income, up by 15.6% on 9M 2020;
- growth in operating margin, up by 9.8% on 9M 2020;
- growth in operating income, up by 3.4% on 9M 2020 with net fee and commission income up by 11.5%;
- operating costs down by 2.3% on 9M 2020;
- high efficiency, with a cost/income of 50.1% in 9M 2021, a level among the best in the top tier European banks;
The capital position was solid and well above regulatory requirements even under the 2021 EBA/ECB stress test adverse scenario: pro-forma fully loaded Common Equity Tier 1 ratio was 15.1% after the deduction from capital of €1.9 billion of reserves distributed in October 2021 and €2.8 billion of dividends accrued in 9m 2021.
Credit quality improved. Gross NPLs were reduced by 12.6% on year-end 2020 and by around €34 billion since the end of 2017 exceeding by around €8 billion the €26 billion deleveraging target set for the entire four-year period of the 2018-2021 Business Plan. NPL ratio was 3.8% gross and 2% net. Annualised cost of risk in 9m 2021 decreased to 44 basis points.