Intesa Sanpaolo: Consolidated Results 2020
Turin - Milan, 5 February 2021 – At its meeting today, the Board of Directors of Intesa Sanpaolo approved both parent company and consolidated results for the year ended 31 December 2020.
Results for 2020 confirm Intesa Sanpaolo’s ability to effectively face the challenging aftermath of the COVID-19 epidemic. They reflect the Group’s sustainable profitability, which derives from a solid capital base and a strong liquidity position, a resilient and well- diversified business model and the strategic flexibility in managing operating costs. Substantial NPL deleveraging achieved in the last three years, above all in 2020, has further reduced Intesa Sanpaolo’s 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 the combination with UBI Banca and by more than €6 billion out of pre-tax profit devoted by the Group in 2020 to further strengthening the sustainability of results and allocated on provisions for future COVID-19 impacts, increase in the coverage ratio of UBI Banca loans through the PPA (Purchase Price Allocation) procedure, and integration charges. The integration of UBI Banca, with no social costs, is well under way and ahead of original plan, making it possible to estimate higher synergies than those foreseen when the Public Purchase and Exchange Offer was launched.
• The capital position was solid and well above regulatory requirements. Pro-forma fully loaded Common Equity Tier 1 ratio was 15.4% deducting dividends proposed for 2020 from capital, 16.9% excluding the acquisition of UBI Banca, 15.9% when including the acquisition of UBI Banca but excluding assets of the going concern to be sold to BPER Banca.
• 2020 stated net income was €3,277 million. Proposed cash dividends amount to €694 million, the maximum distributable amount according to the ECB recommendation.
• 2020 net income was €3,505 million excluding the items related to the acquisition of UBI Banca, consisting of the effect of the purchase price allocation (including negative goodwill) and integration charges, and the accounting impact of the related goodwill impairment of the Banca dei Territori division.
• Excluding also the five-month contribution of UBI Banca, 2020 net income was €3,083 million, exceeding the target of around €3 billion minimum net income set for 2020. Excluding also €2,164 million in loan adjustments for future Covid-19 impacts, net income was €4,539 million (up around 9% on 2019).
• Excluding the contribution of UBI Banca and adjustments for future Covid-19 impacts, gross income in 2020 was up around 10% on 2019. This was also due to the recovery, in the second half of 2020, in net interest income and, above all, net fee and commission income, up around 2% and 11% respectively on the first half of the year, and to operating costs down 3.4% in 2020, with a cost/income of 52.2%.
• Credit quality improved. Excluding the contribution of UBI Banca, gross NPL's were reduced by 34.6% on year-end 2019 and by around €32 billion since the end of 2017 exceeding by around €6 billion the €26 billion deleveraging target set for the entire four-year period of the 2018-2021 business plan. NPL ratio was 4.9% gross and 2.6% net (4.4% and 2.3% including the contribution of UBI Banca). Cost of risk in 2020 was at 50 basis points excluding the impact of loan adjustments for future Covid-19 impacts (equivalent to 54 basis points).
Full year 2020 results: statement by CEO Carlo Messina
Intesa Sanpaolo: Consolidated results as at 31 December 2020