Intesa Sanpaolo Sees Growing Profit in 2019 as 4Q Profit Falls -- Update

(Adds earnings details, outlook and CEO's comments)

 
   By Pietro Lombardi 
 

Intesa Sanpaolo SpA (ISP.MI) said its fourth-quarter net profit declined and it expects growing revenue and net profit for 2019.

Net profit for the quarter was 1.04 billion euros ($1.19 billion), the Italian bank said Tuesday. This compares with a net profit of EUR1.43 billion a year earlier, when the results included an EUR811 million gain from the disposal of Intesa's stake in Allfunds.

Analysts had expected a net profit of EUR1 billion, according to a consensus forecast provided by FactSet.

Net profit for the year was EUR4.05 billion.

Operating income for the quarter declined 11% to EUR4.19 billion, as both net interest income and fees and commissions declined on year, by 5.4% and 9% respectively.

Operating costs were lower too, declining 4.7% to EUR2.55 billion.

Intesa proposed a cash dividend of 19.7 euro cents a share for a payout ratio of 85%, as indicated in its plan.

"In the first year of the new business plan, Intesa Sanpaolo has again confirmed its ability to deliver on all its objectives, even in a more complex operating environment than expected," Chief Executive Carlo Messina said.

For this year, the bank expects an increase in net profit compared with 2018. This should come "as a result of growth in revenues, continuous reduction in operating costs and decrease in the cost of risk," it said. The bank also expects to pay a cash dividend corresponding to a payout ratio of 80% for 2019.

Intesa's pro forma fully-loaded common equity Tier 1 ratio, a key measure of capital strength, was 13.6% at the end of December, compared with 13.7% in September.

Write to Pietro Lombardi at [e-mail]

(END) Dow Jones Newswires

February 05, 2019 08:51 ET (13:51 GMT)

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