(Alliance News) - Intesa Sanpaolo Spa reported Friday that it posted a profit of EUR2.30 billion in the first quarter of the year, up 18 percent from EUR1.96 billion and in line with its EUR8 billion target for the year.

Net operating income is EUR6.73 billion, up 5.6 percent from EUR6.37 billion in Q4 2023 and up 11 percent from EUR6.06 billion in Q1 2023.

Operating income is EUR4.16 billion from EUR3.52 billion in Q1 2023.

Net commissions are EUR2.27 billion, up 7.7 percent from EUR2.11 billion in Q4 2023 and up 6.3 percent from EUR2.14 billion in Q1 2023.

Regarding capital ratios as of March 31, the Common Equity Tier 1 ratio was 13.3% from 13.7% at the end of 2023 and 13.2% pro forma deducting the buyback; the Tier 1 ratio was 15.9% from 16.3% at the end of 2023 and 15.7% pro forma deducting the buyback while the total capital ratio was 18.9% from 19.2% at the end of 2023, 18.6% pro forma deducting the buyback.

The ratio of impaired loans to total loans is 1.2% after adjustments and 2.3% before adjustments.

In addition, the bank highlights a "significant cash return to shareholders" with EUR1.6 billion in dividends accrued in the quarter, adding to the EUR2.8 billion 2023 dividend balance to be paid in May 2024 and the EUR1.7 billion buyback to be launched in June 2024.

"The strategic choices pursued have allowed Intesa Sanpaolo to confirm itself as one of the most solid banking groups at the international level," the statement reads, "whose strengths -- in addition to what was previously said about the quality of loans and the level of capital ratios -- consist of robust liquidity and low leverage.

"The implementation of the 2022-2025 business plan is proceeding at full speed," the bank continues, "with a net profit outlook for 2024 and 2025 exceeding EUR8 billion.

Intesa Sanpaolo's stock trades in the red by 0.8 percent at EUR3.54 per share.

By Chiara Bruschi, Alliance News reporter

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