Intesa Sanpaolo (ISP) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 net income of €2.8 billion, up 6% year-over-year, with annualized ROE at 21% and EPS up 8% year-over-year.

• Operating income reached €7.15 billion (+5.3% YoY), with gross income up 9.7% and operating margin at €4.59 billion.

• Strong performance in commissions (+3% YoY) and insurance income (+3% YoY), both at record highs.

• Execution of the business plan is progressing rapidly, focusing on cost reduction, revenue growth, and maintaining low risk.

• Significant capital return to shareholders, including €2.6 billion accrued in Q1 for distribution, €2.1 billion in dividends, and €2.3 billion buyback to launch in July 2026.

Financial highlights

• Net income: €2.8 billion (+6% YoY), operating income: €7.15 billion (+5.3% YoY), gross income: €4.34 billion (+9.7% YoY).

• Cost/income ratio at a historic low of 35.9%, with operating costs down 0.7% YoY.

• Net interest income stable at €3.64 billion; net fee and commission income at €2.52 billion (+3.1% YoY); insurance income at €476 million (+3% YoY).

• Loans to customers grew 3% YoY and 1% sequentially, totaling €430 billion.

• Customer financial assets reached €1.44 trillion (+4.7% YoY).

• Asset quality remains strong: annualized cost of risk at 16 bps, NPL stock at €3.9 billion, net NPL ratio at 0.8%, and overlays of €0.9 billion.

Outlook and guidance

• 2026 net income guidance of ~€10 billion confirmed, with potential upside if EURIBOR rises.

• Revenue growth expected mainly from commissions and insurance, with stable costs and reduced provisions.

• Payout ratio for 2026 targeted at 95% (75% cash dividends, 20% buyback), subject to capital and regulatory conditions.

• Loan growth target set at 3-4% for the year, driven by corporate and investment banking.

• Insurance income expected to grow at mid-single digits, with property and casualty as key contributors.

• Cost of risk guidance at 25-30 bps, with overlays to be used only in case of severe deterioration.