Intesa Sanpaolo (ISP) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 reached €2,615 million, up 13.6%–14% year-over-year, marking a record quarter and supporting a 2025 net income outlook well above €9 billion.

• Operating income reached €6.8 billion (+0.5% year-over-year), with strong growth in commissions and insurance income, and a cost/income ratio at a historic low of 38%.

• Robust capital position with CET1 ratio at 13.3% (up 45bps in Q1), supporting high shareholder returns and a dividend yield of ~8%.

• Significant cash return to shareholders: €1.8bn dividends accrued in Q1, €3bn 2024 dividends to be paid in May, and €2bn buyback to launch in June.

• Strong ESG commitment, with €22bn in social lending, major digital and tech investments, and workforce renewal initiatives.

Financial highlights

• Net fee and commission income grew 7% year-over-year to €2.4bn, driven by Wealth Management and Protection activities.

• Insurance income reached €462m (+1.5% year-over-year), with total premiums up 13.7%.

• Net interest income declined 8% year-over-year to €3.6bn, mainly due to lower rates and fewer days in the quarter.

• Profits on financial assets and liabilities at fair value surged to €265m (+227% year-over-year).

• Operating costs decreased 0.5% year-over-year to €2.6bn, with cost/income ratio at 38%.

Outlook and guidance

• 2025 net income is expected well above €9 billion, with a 70% cash payout ratio and CET1 ratio projected above 13.7% at year-end.

• Net interest income for 2025 guided above 2023 levels, supported by core deposit hedging and loan growth.

• Double-digit fee and commission growth expected in wealth management and insurance; other commissions to see low/mid-single-digit growth.

• Operating costs projected to decrease further due to technology and workforce optimization.

• Additional capital distribution for 2025 to be determined at year-end.