Intesa Sanpaolo 1Q Net Profit Falls -- Earnings Review

By Pietro Lombardi

Intesa Sanpaolo SpA (ISP.MI) reported results for the first quarter on Tuesday. Here's what you need to know:

NET PROFIT: Net profit for the period was 1.05 billion euros ($1.18 billion) compared with EUR1.25 billion a year earlier. Analysts had expected a net profit of EUR890 million, according to a consensus forecast provided by FactSet.

REVENUE: Operating income, the bank's top line, fell to EUR4.39 billion. This compares with the EUR4.81 billion it reported in the same period last year and analysts' expectations of EUR4.31 billion.

WHAT WE WATCHED:

-REVENUE STREAM: Net interest income was EUR1.76 billion compared with EUR1.85 billion a year earlier. Fees and commissions, income from the insurance business and profits on financial assets and liabilities designated at fair value also declined.

OUTLOOK: The bank expects the 2019 net income to be higher compared with 2018. This "as a result of growth in revenues, continuous reduction in operating costs and decrease in the cost of risk. The dividend policy for 2019 envisages the distribution of cash dividends corresponding to a payout ratio of 80% of net income," it said.

Write to Pietro Lombardi at [e-mail]

(END) Dow Jones Newswires

May 07, 2019 08:01 ET (12:01 GMT)

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