Intesa Sanpaolo (ISP) Q2 2024 earnings summary

Executive summary

• Achieved record net income of €4.8bn in H1 2024, up 13% year-over-year, marking the best six months in 17 years and best-ever Q2.

• Operating income rose 10% and operating margin 17% versus H1 2023, with cost/income ratio at a historic low of 38.3%.

• Customer financial assets surpassed €1.35 trillion, with €102bn growth year-over-year.

• Shareholder returns exceed €7.4bn in 2024, including €3.3bn in dividends accrued and €1.7bn buyback launched in June.

• Significant ESG initiatives, including €3.1bn in taxes, €17.2bn in social lending since 2022, and expanded food and shelter programs.

Financial highlights

• Net interest income grew 16.2% to €7.9bn in H1 2024; net fee and commission income up 6.9%; insurance income up 5.5%.

• Operating income reached €13.6bn (+9.6%); operating margin €8.4bn (+16.6%).

• Cost/income ratio at 38.3%, best-in-class in Europe.

• Annualised cost of risk at 26bps; NPL ratio at 1% net, with gross NPL stock below €5bn and inflows at historical lows.

• Customer financial assets reached €1,353bn, up 8.1% year-over-year.

Outlook and guidance

• Net income guidance raised to above €8.5bn for both 2024 and 2025, with a 70% cash payout ratio and >10% dividend yield.

• Net interest income expected to reach €15.5bn in 2024, with continued strong performance in 2025.

• CET1 ratio expected well above 14.5% pre-Basel 4 in 2025, maintaining strong capital position.

• Cost of risk expected to remain between 30 and 40 basis points.

• Additional capital distributions and share buybacks to be determined at year-end.