Net profit at intesa sanpaolo, italys biggest retail lender, overcome expectations during the second quarter sustained by lower loan-loss conditions the fallout from the coronavirus pandemic.
The turin-based loan provider, that is in a purchase of smaller rival ubi banca, stated on tuesday its web profit for three months had been 1.42bn, well above experts quotes around 900m. intesa stated it booked 880m of coronavirus-related costs, out-of an overall total of 1.4bn in loan-loss provisions.
Carlo messina, chief executive, stated intesas results had been a since the first 1 / 2 of 2008, regardless of the tough working environment. exceptional development in its insurance business and a great performance because of the wealth management division boosted results despite lower costs from investment banking, he stated.
Outcomes for the initial half 2020 confirm intesa sanpaolos ability to successfully face the challenging aftermath of covid-19 pandemic, he stated.
Control also verified its intention to circulate money dividends amounting to a 75 % payout this current year and 70 per cent in 2021.
Intesas stocks were up 4.4 per cent on tuesday early morning.
A week ago intesa revealed it had won vast majority support because of its takeover of ubi, initially launched ahead of the pandemic, after including a money sweetener to its offer to encourage investors to tender their particular stocks.
Now our company is opening a chapter into the groups record, mr messina stated.
He stated on a telephone call with journalists on tuesday the hostile pursuit of ubi had been spurred by the european central banks clarification of takeover guidelines to motivate consolidation in the financial sector.
Intesa will next year unveil a unique business plan for the mixed group, which is europes second-largest bank by market capitalisation and 8th by complete possessions.
Mr messina stated significantly more than 90 % of ubis shares was in fact tendered, and analysts said this strong bulk need to speed up the full integration associated with two banks.
Collectively we could reinforce friends that's a nationwide winner and a frontrunner in europe, said mr messina. additional dealmaking in disconnected italian banking landscape would depend on whether management groups had been prepared to quit their particular jobs to facilitate integration, he included.
Mr messina said he anticipated the groups earnings become at the very least 3.5bn in 2021, without taking ubis contribution into account, rising to at the least 5bn in 2022 after the smaller opponent was fully integrated.
Victor massiah, ubis chief executive, announced their resignation on monday with instant impact, after unveiling better-than-expected second-quarter results for the financial institution.