Intesa Sanpaolo (ISP) Q2 2025 earnings summary

Executive summary

• Achieved record net income of €5.2bn in H1 2025, up 9.4% year-over-year, with best-ever revenues, commissions, and insurance income, and upgraded full-year guidance to well above €9bn, reflecting strong profitability and sustainable value creation.

• Return on equity reached 20%, with tangible earnings per share up 12% year-over-year and ROTE at 22%.

• 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, with €8.2bn planned for 2025 via dividends and buybacks.

• 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% vs 1H24); operating margin at €8.5bn (+1.9%); gross income up 2.7% to €8.0bn.

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

• Cost/income ratio at a record low of 38%, best in Europe, with effective cost management and strong tech investments.

• NPL ratio at 1.2% net and 2.3% gross (1% and 2% by EBA methodology); NPL coverage at 50%; annualised cost of risk at 24bps.

• Customer financial assets reached €1,391bn, up 2.7% year-over-year; assets under management rose 4.5% to €476bn.

Outlook and guidance

• Full-year 2025 net income guidance upgraded to well above €9bn, considered sustainable for future years, with further managerial actions in Q4 to enhance profitability.

• Net interest income guidance raised to well above 2023 levels, with further growth expected in 2026.

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

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

• Continued focus on cost efficiency, asset quality, and integrated revenue management.