Intesa Sanpaolo Cuts Guidance After Taking Hit From Ukraine War

By Cristina Roca

Intesa Sanpaolo SpA on Friday cut its guidance for the year to reflect the effects of the war in Ukraine.

The bank booked writedowns of 822 million euros ($866.5 million) on its Russian and Ukraine businesses in the first quarter, the bulk of which was related to loan exposure.

Intesa, Italy's largest bank by assets, said it now expects a net income of more than EUR4 billion this year assuming no critical changes to commodity and energy supplies. It had guided for a full-year net profit of more than EUR5 billion before the Ukraine war broke out.

Assuming only 40% of its exposure to Russia and Ukraine is covered--a very conservative scenario--it expects a net profit well above EUR3 billion, it said.

The Italian bank's net profit for the first quarter fell to EUR1.02 billion from EUR1.52 billion a year earlier.

Operating income, the bank's top-line figure, fell 1.4% to EUR5.41 billion.

Analysts had expected a EUR713 million quarterly net profit on operating income of EUR4.87 billion, according to a FactSet consensus.

Intesa said it is on track to hit its 2025 goal of EUR6.5 billion net profit.

Write to Cristina Roca at [e-mail]

(END) Dow Jones Newswires

May 06, 2022 07:44 ET (11:44 GMT)

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