Intesa Sanpaolo Raises 2023 Profit Outlook After Better-Than-Expected 1Q

By Adria Calatayud

Intesa Sanpaolo on Friday raised its earnings outlook for 2023 after first-quarter net profit rose and beat expectations thanks to sharply higher net interest income.

The Italian bank said it expects net profit to grow to around 7 billion euros ($7.71 billion) this year, having previously guided for a profit well above the EUR5.5 billion it reported last year.

Net interest income--the difference between what banks earn on loans and what they pay clients for deposits--is forecast to exceed EUR13 billion in 2023, Intesa said.

For the first quarter, the bank said it made a net profit of EUR1.96 billion compared with EUR1.04 billion in the year-earlier period.

Operating income--the bank's top-line figure--rose 12% to EUR6.06 billion, helped by net interest income that jumped 66% to EUR3.25 billion.

Analysts polled by FactSet expected Intesa to report quarterly net profit of EUR1.52 billion, net interest income of EUR3.09 billion and operating income of EUR5.85 billion.

Intesa reiterated its 2025 goal of EUR6.5 billion net profit.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

May 05, 2023 06:58 ET (10:58 GMT)

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