Intesa Sanpaolo Beat 3Q Expectations on Net Interest Income Surge

By Ed Frankl

Intesa Sanpaolo SpA said Friday that net income beat expectations as rising net interest income helped offset a decline in dealmaking.

The Italian lender said net income in the three months to the end of September was 930 million euros ($906.8 million), down from EUR983 million in the same period last year.

Operating income, its top-line figure, fell 1.6% to EUR5.02 billion.

Those numbers beat expectations of net profit of EUR796 million and revenue of EUR4.92 billion, according to analysts' estimates provided by FactSet.

Net interest income surged 19% to EUR2.39 million, helped by rising rates.

However, the bank's net fee and commission income slid 4.5%, Intesa said, as management, dealing and consultancy activities declined.

The company said it had reduced its exposure to Russia by around 65% in the third quarter, and that this exposure now encompasses 0.3% of the group loans to customers.

The Turin-based lender confirmed its EUR4 billion net-income guidance for the year, despite the worsening economic situation, particularly in regard to energy supplies. It also reaffirmed its targets to 2025.

Write to Ed Frankl at [e-mail]

(END) Dow Jones Newswires

November 04, 2022 08:38 ET (12:38 GMT)

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