Intesa Sanpaolo (ISP) Q2 2025 earnings summary

Executive summary

• Net income for H1 2025 reached €5.2bn, up 9.4% year-over-year, marking a record half-year and driving an upgraded full-year outlook well above €9bn, supported by strong profitability and sustainable value creation.

• Cost/income ratio improved to a historic low of 38%, best in Europe, reflecting effective cost management and technology investments.

• Significant shareholder returns: €3.7bn dividends accrued in H1 2025 (including €3.2bn interim dividend for November) and a €2bn buyback launched in June 2025.

• Customer financial assets reached €1.4 trillion, up €37bn year-over-year, confirming leadership in Wealth Management, Protection & Advisory.

• Strong ESG commitment with €3.2bn taxes generated, expanded social programs, and €23.4bn in social lending and urban regeneration since 2022.

Financial highlights

• Operating income rose to €13.8bn (+1.1% YoY); operating margin at €8.5bn (+1.9% YoY); gross income up 2.7% to €8.0bn.

• Net interest income declined 6.8% YoY to €7.4bn, offset by a 4.7% rise in net fee and commission income and 2.1% growth in insurance business income.

• Operating costs decreased 0.2% to €5.2bn; cost/income ratio at 38%, among the best in Europe.

• NPL ratio at 1.2% net and 2.3% gross (1% and 2% by EBA methodology); annualised cost of risk at 24bps.

• Cash dividends accrued in H1 totaled €3.7bn, with >7% dividend yield expected for 2025.

Outlook and guidance

• 2025 net income guidance upgraded to well above €9bn, with further managerial actions in Q4 to enhance sustainability.

• Revenue growth expected from resilient net interest income, higher fee and commission income, and insurance business; operating costs to decrease further via technology and workforce optimization.

• Cash payout ratio of 70% of consolidated net income, with increased dividend per share and additional distributions to be determined.

• Dividend yield expected to remain above 7%, best-in-class in Europe.

• Loan growth expected between 2% and 5% in the second half of the year.