Shares in Intesa Sanpaolo Rise After 3Q Results - Update
November 06 2018 - 8:18AM
Dow Jones News
Adds share price, outlook, details
By Pietro Lombardi
Shares in Intesa Sanpaolo SpA (ISP.MI) jumped Tuesday after the
bank's net profit rose above expectations in the third quarter.
Net profit for the period rose 28% on year to 833 million euros
($949 million), the Italian bank said.
Operating income rose slightly to EUR4.27 billion.
Analysts had expected the Italian bank to report a net profit of
EUR787 million for the quarter, according to a consensus forecast
provided by FactSet.
At 1237 GMT shares trade 2% higher, while Italy's benchmark FTSE
MIB index is down 0.4%.
Shares in Intesa and other Italian banks have been under
pressure recently, as concerns over the country's budget have
driven up the BTP-Bund spread.
Intesa's pro-forma fully-loaded common equity Tier 1 ratio, a
key measure of capital strength, rose to 13.7% at the end of
September from 13.6% in June.
Provisions for bad loans declined both on quarter and on year,
coming in at EUR519 million for the quarter.
Looking ahead, the bank expects 2018 income to be higher than
last year's, excluding from the 2017 results a EUR3.5 billion
public contribution related to the rescue of two regional
banks.
"An increase in revenues, continuous cost management and a
decrease in the cost of risk are envisaged as the drivers of the
expected performance of net income," it said in a statement.
"The dividend policy for 2018 envisages the distribution of an
amount of cash dividends corresponding to a payout ratio of 85% of
net income," it added.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
November 06, 2018 08:03 ET (13:03 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Intesa Sanpaolo (PK) (USOTC:ISNPY)
Historical Stock Chart
From Aug 2024 to Sep 2024
Intesa Sanpaolo (PK) (USOTC:ISNPY)
Historical Stock Chart
From Sep 2023 to Sep 2024