(Alliance News) - Intesa Sanpaolo Spa reported Tuesday that it posted a 76 percent increase in net profit in 2023, a year in which it saw impaired loans fall by 9.7 percent.

The bank's net income rose to EUR7.72 billion or 76 percent from EUR4.38 billion a year earlier, with the fourth-quarter figure alone amounting to EUR1.60 billion.

Operating income rose to EUR25.14 billion from EUR21.44 billion a year earlier and costs increased to EUR11.33 billion from EUR10.93 billion.

Operating income rose to EUR13.81 billion from EUR10.51 billion while gross profit improved to EUR12.06 billion from EUR7.33 billion a year earlier.

The stock of impaired loans at the end of December 2023 decreased by 9.7 percent year-on-year net of impairments and 7 percent gross. The ratio of impaired loans to total loans is 1.2% net of value adjustments and 2.3% gross. Considering the methodology adopted by the EBA, the incidence of impaired loans is 0.9% net of value adjustments and 1.8% gross.

The specific coverage level of impaired loans is 49.8 percent, with a specific coverage of non-performing loans of 72.4 percent.

Intesa shows very solid capitalization, with capital ratios at levels well above regulatory requirements. As of Dec. 31, 2023, deducting from capital EUR2.6 billion of interim 2023 dividends paid in November 2023 and EUR2.8 billion of proposed 2023 dividend balance, the Common Equity Tier 1 ratio was 13.7 percent or 13.2 percent taking into account the impact of about 55 cents of a point of the buyback that is planned to start in June 2024, without taking into account about 125 hundredths of a point benefit from the absorption of deferred tax assets, including about 25 in the horizon between 2024 and 2025, compared to a SREP requirement - including Capital Conservation Buffer, O-SII Buffer and Countercyclical Capital Buffer - to be met in 2023 of 8.83 percent and to be met in 2024 of 9.33 percent. The negative regulatory impacts are about 100 cents of a point in the year.

The total proposed dividend per share for 2023 is 29.60 cents -- of which 14.40 cents is the interim dividend paid in November 2023 and 15.20 cents is the proposed balance --, almost double the 16.39 cents paid for 2022.

Intesa Sanpaolo's stock is up 1.3 percent at EUR2.90 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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