Intesa Sanpaolo Sees Growing Profit in 2019 as 4Q Profit Falls -- Update
February 05 2019 - 9:06AM
Dow Jones News
(Adds earnings details, outlook and CEO's comments)
By Pietro Lombardi
Intesa Sanpaolo SpA (ISP.MI) said its fourth-quarter net profit
declined and it expects growing revenue and net profit for
2019.
Net profit for the quarter was 1.04 billion euros ($1.19
billion), the Italian bank said Tuesday. This compares with a net
profit of EUR1.43 billion a year earlier, when the results included
an EUR811 million gain from the disposal of Intesa's stake in
Allfunds.
Analysts had expected a net profit of EUR1 billion, according to
a consensus forecast provided by FactSet.
Net profit for the year was EUR4.05 billion.
Operating income for the quarter declined 11% to EUR4.19
billion, as both net interest income and fees and commissions
declined on year, by 5.4% and 9% respectively.
Operating costs were lower too, declining 4.7% to EUR2.55
billion.
Intesa proposed a cash dividend of 19.7 euro cents a share for a
payout ratio of 85%, as indicated in its plan.
"In the first year of the new business plan, Intesa Sanpaolo has
again confirmed its ability to deliver on all its objectives, even
in a more complex operating environment than expected," Chief
Executive Carlo Messina said.
For this year, the bank expects an increase in net profit
compared with 2018. This should come "as a result of growth in
revenues, continuous reduction in operating costs and decrease in
the cost of risk," it said. The bank also expects to pay a cash
dividend corresponding to a payout ratio of 80% for 2019.
Intesa's pro forma fully-loaded common equity Tier 1 ratio, a
key measure of capital strength, was 13.6% at the end of December,
compared with 13.7% in September.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
February 05, 2019 08:51 ET (13:51 GMT)
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