INTESA SANPAOLO: CONSOLIDATED RESULTS AS AT 30 JUNE 2020

06.08.2020

At its meeting today, the Board of Directors of Intesa Sanpaolo approved the consolidated half-yearly report as at 30 June 2020.

Results for the first half of 2020 confirm Intesa Sanpaolo’s ability to effectively face the challenging aftermath of the COVID-19 epidemic. They reflect the Group’s sustainable profitability, which derives from a solid capital base and a strong liquidity position, a resilient and well-diversified business model and the strategic flexibility in managing operating costs. The results also reflect the support provided to Italy by the Group, which is also committed to becoming a reference model in terms of sustainability and social and cultural responsibility.

The full statement by Carlo Messina, CEO of Intesa Sanpaolo, follows:

“In an exceptionally challenging moment marked by the consequences of the COVID-19 pandemic, Intesa Sanpaolo once again demonstrated its ability to achieve its objectives and meet its commitments. The teamwork of our top management and the professional quality of our people make all this appear easy; but it isn’t. My thanks go to them for how they have supported families and businesses with exceptional lending measures, for the continuous care given to protecting our customers' savings and for the extraordinarily strong results achieved. Faced with this very challenging environment, we achieved the best first-half Net income since 2008 – at €2.6 billion – meaning we have already delivered 86% of the €3 billion minimum Net income target for this year. If we exclude the nearly €900 million in provisions to cover possible future impact from COVID-19, then Net income actually increased 39% compare to the first half of 2019».

The consolidated income statement for Q2 2020 recorded net interest income of €1,750m, up 0.2% from €1,747m in Q1 2020 and down 0.6% from €1,761m in Q2 2019 and and in H1 2020 was €2,566M in versus €2,266M in H1 2019.

Operating income in Q2 2020 was €4,136M (-16.3% versus Q1 2020), and in H1 2020 was €9,075M (no changes versus H1 2019).

Operating costs amounted to €2,230m, up 2.6% from €2,173m in Q1 2020, attributable to increases of 1.8% in personnel expenses, 5.4% in administrative expenses and 1.1% in adjustments. Operating costs for Q2 2020 were down 2.9% from €2,296m in Q2 2019, attributable to decreases of 2.7% in personnel expenses and 6.7% in administrative expenses and an increase of 6% in adjustments.

Operating costs in H1 2020 was €4,403M (-2.8% versus H1 2019).

Operating margin in Q2 2020 was €1,906M (-31.1% versus Q1 2020), and in H1 2020 was €4,672M (-2.8% versus H1 2019).

Gross income in Q2 2020 was €1,883M versus €1,976M in Q1 2020, and in H1 2020 was €3,859M versus €3,602M in H1 2019.

Capital ratios: common equity tier 1 ratio after dividends accrued in H2 2020:

  • 14,9% pro-forma fully loaded;
  • 14,6% phased in.
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