First half 2024 results: statement by CEO Carlo Messina
Following Intesa Sanpaolo’s reported net income of €4.8 billion in the first half of 2024 – with €2.5 billion generated in the second quarter alone - CEO Carlo Messina raised the full-year net income target to above €8.5 billion for both 2024 and 2025.
Commenting on the first-half results, Messina emphasized how Intesa Sanpaolo has confirmed “its position as a European leader, playing a unique role in supporting the real and social economy of our country, thanks to results distinguished by high profitability, sustainability, capital strength, and a low-risk profile”.
In his statement, CEO Messina highlighted Intesa Sanpaolo’s “unique model in Europe”, attributable to:
- established leadership in serving families and businesses
- a significant component of Wealth Management, Protection and Advisory
- efficient management of international activities
- technologically advanced digital offering
- “Zero NPL” bank status
- a highly significant ESG profile.
Messina also pointed out some distinctive elements of the Group’s support to the real economy: medium- and long-term lending in Italy exceeding €20 billion in the first six months of 2024; savings entrusted to the Bank by families and businesses reached over €1.35 trillion; over €2 billion in dividends received by Italian families and shareholder foundations in 2023; and Intesa Sanpaolo’s role as the top taxpayer for income taxes in the country, amounting to €3.1 billion in the first half of 2024.
“In the first half of 2024, Intesa Sanpaolo reaffirmed its position as a European leader, playing a unique role in supporting the real and social economy of our country, thanks to results distinguished by high profitability, sustainability, capital strength, and a low-risk profile.
“Intesa Sanpaolo represents a unique model in Europe due to its established leadership in serving families and businesses, its significant Wealth Management, Protection, and Advisory components, efficient management of its international activities, technologically advanced digital offerings, “Zero NPL bank” status, and highly significant ESG profile.
“Intesa Sanpaolo is an institution dedicated to serving the country. We are implementing a major social cohesion project aimed at promoting a more equitable society in a structural and concrete manner. This involves a €1.5 billion program of interventions by 2027, in addition to the €1 billion allocated in 2018-2021, driven by 1,000 of the bank’s professionals.
“Our bank plays a significant role in supporting the real and social economy of the country. In the first six months of 2024, medium- and long-term lending exceeded €20 billion in Italy. As of June 30, 2024, the savings entrusted to us by families and businesses reached over €1.35 trillion. In 2023, the resources allocated to our employees in Italy exceeded €6 billion. Italian families and our shareholder foundations received over €2 billion in dividends. Additionally, we were the top taxpayer for income taxes in the country in 2023, and in the first half of 2024, Intesa Sanpaolo's taxes amounted to €3.1 billion.
“At the heart of our strategies and development prospects are our clients, whose trust in our bank's solidity and technological leadership is paramount. We value the strong relationships they have with our professionals who provide credit and advisory services. Listening to our customers’ needs is our priority.
“In the first half of 2024, net income was €4.8 billion, with €2.5 billion earned in the second quarter, allowing for the accrual of €3.3 billion in dividends.
“For both 2024 and 2025, we have set a net income target of over €8.5 billion.
“Both net interest income and fee income grew in the second quarter of 2024 versus the first quarter.
“The evolving interest rate environment can be successfully managed thanks to the significant diversification of our business model and the savings entrusted to us by families and businesses, which grew by €48 billion in the first half of the year.
“We are Eurozone leaders in terms of commissions and insurance revenues as a percentage of total revenues. Our strength is represented by over 16,000 dedicated professionals, a cutting-edge digital offering, and proprietary insurance and asset management companies. We have identified €100 billion in client financial assets to boost the growth of wealth management. The consolidation of our wealth management activities into a single unit aims to accelerate growth and promote greater integration of our product factories.
“Our strong focus on costs—despite increased technological investments—enabled us to achieve our best-ever cost/income ratio.
“The historically low NPL flow has brought the annualized cost of risk down to 26 basis points, accompanied by an increase in coverage.
“Robust capital generation has further strengthened us, with the CET1 ratio exceeding 13.5% as of June 30, already factoring in the full execution of the ongoing €1.7 billion buyback. This significant capital surplus allows us to consider additional distributions to shareholders.
“Technological innovation is a key element of our success. We are positioned as a European leader thanks to €3.2 billion in IT investments and the hiring of about 2,100 IT specialists.
“We are strongly committed to combating climate change. From 2021 to June 30, 2024, new lending to support the green economy and the ecological transition amounted to €59 billion, including around €10 billion since 2022 to support the circular economy. Additionally, our procurement in Italy from renewable sources has reached 100%.
“All of this positions Intesa Sanpaolo at the top of the sector in Europe, with a uniquely significant role in our country, contributing to economic growth and a more inclusive society. The professional quality of our people is a key factor in achieving solid and sustainable results for all stakeholders. To them, we extend our sincere thanks.
30 July 2024
Last updated 30 July 2024 at 13:09:55
