Intesa Sanpaolo (ISP) Q3 2025 earnings summary

Executive summary

• Net income for the first nine months of 2025 reached €7.6 billion, up 5.9% year-over-year, marking a record performance driven by resilient revenues, cost control, and strong commissions and insurance income.

• Operating margin and gross income reached all-time highs, supported by effective cost management and technology investments.

• €5.3 billion in dividends accrued in 9M 2025, with €3.2 billion to be paid as interim dividend in November, and a €2 billion share buyback completed in October.

• Business model resilience confirmed by EBA stress test and credit rating upgrades from Fitch, DBRS, and Moody’s.

• Significant ESG initiatives included €4.6 billion in taxes generated, expansion of social programs, and €24.9 billion in social lending and urban regeneration since 2022.

Financial highlights

• Net fee and commission income rose 5.1% year-over-year, insurance business income up 4.7%, and profits on financial assets and liabilities at fair value increased, offsetting a 6.8% decline in net interest income.

• Operating costs decreased by 0.4% year-over-year, with a cost/income ratio of 38.9%, among the best in Europe.

• Customer financial assets surpassed €1.4 trillion, growing by €33 billion year-over-year.

• Common Equity Tier 1 (CET1) ratio at 13.9%, up 105 bps in 9M 2025, well above the 9.88% SREP requirement.

• NPL ratio at 1.1% net and 2.3% gross, with NPL coverage at 51.1% and cost of risk at a historic low of 25 bps.

Outlook and guidance

• Full-year 2025 net income is expected to be well above €9 billion, with further managerial actions in Q4 to enhance sustainability.

• Revenue growth is anticipated from resilient net interest income, higher fee and commission income, and insurance business, while operating costs are expected to decrease further due to technology and workforce optimization.

• Cash payout ratio of 70% of consolidated net income is planned, with an increase in dividend per share for 2025 and potential share buybacks.

• Additional distribution for 2025 will be determined with full-year results.