Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
  1. Homepage
  2. Equities
  3. Italy
  4. Borsa Italiana
  5. Intesa Sanpaolo S.p.A.
  6. News
  7. Summary
    ISP   IT0000072618


SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Intesa books big writedowns, to cut targets

03/15/2012 | 10:55am EST

MILAN (Reuters) - Intesa Sanpaolo (>> Intesa Sanpaolo SpA), Italy's biggest retail bank, posted a 10 billion euro ($13.07 billion) loss in the fourth quarter as it joined domestic rival UniCredit in writing down billions of euros of goodwill to repair a balance sheet damaged by the euro zone debt crisis.

MILAN (Reuters) - Intesa Sanpaolo (>> Intesa Sanpaolo SpA), Italy's biggest retail bank, posted a 10 billion euro ($13.07 billion) loss in the fourth quarter as it joined domestic rival UniCredit in writing down billions of euros of goodwill to repair a balance sheet damaged by the euro zone debt crisis.

The lender said in its results statement that it will have to revise its business plan targets because of market turmoil and amid expectations the Italian economy could shrink as much as 2.2 percent this year.

"We do not know what lies ahead but we are well prepared if we hit strong headwinds," Chief Executive Enrico Cucchiani told analysts in a conference call on Wednesday.

Intesa said it had carried out a "highly prudent impairment" on the goodwill of past deals.

It gave no details of the writedowns of around 10 billion euros but analysts said they related to the all-Italian merger that created the bank in 2007 -- worth $37 billion at the time -- and to its purchase of Carifirenze.

The writedowns do not impact the bank's capital, liquidity and cash flow and its shares rallied on relief that Intesa had cleaned up its accounts, drawing a line under the most acute phase of the debt crisis that hit Italian lenders hard.

The stock lost ground immediately after the results but was up 1.2 percent at 1.52 euros at 1522 GMT, outperforming a 0.2 percent fall in the broad European DJ STOXX banking index <.SX7P>.

"Core results are good, there no extraordinary items. All in all the bank is well positioned now," one trader said.

Despite the big loss, Intesa said it would pay a dividend of 0.05 euros for the year, down from 0.08 euros in 2010. The Core Tier 1 ratio, adjusted to the European Banking Authority's requirements, stood at 9.2 percent after the dividend.

Intesa, which appointed a new chief executive in November last year, is the only top Italian bank that does not have a capital shortfall to meet the EBA requirements.

However the lender is vulnerable to a further weakening of the Italian economy, which is in a recession, as it gets 80 percent of its revenues from its domestic hub.

The bank also has the biggest exposure to Italian government bonds among the country's lenders with around 60 billion euros, slightly down from the end of September.

Cucchiani, the former head of German insurer Allianz in Italy, replaced Corrado Passera at the helm of Intesa after Passera joined Italy's new government as industry minister.

In an effort to trim costs and bolster its balance sheet, it has announced plans to cut 5,000 jobs by the end of 2013 to trim costs and last month sold 1.6 billion euros of non-performing loans.

Intesa was Italy's first bank to return to the wholesale debt market after an eight-month funding freeze due to the debt crisis, issuing a senior unsecured 1.5 billion euros bond in January.

However, it has also taken up 36 billion euros of cheap three-year funds offered by the European Central Bank in December and February, more than any other Italian bank.

(Editing by David Cowell)

By Silvia Aloisi

Stocks treated in this article : UniCredit SpA, Intesa Sanpaolo SpA

ę Reuters 2012
Stocks mentioned in the article
ChangeLast1st jan.
HUB CO., LTD. 5.08% 682 End-of-day quote.25.83%
INTESA SANPAOLO S.P.A. -0.05% 2.1465 Delayed Quote.12.28%
All news about INTESA SANPAOLO S.P.A.
12/03INTESA SANPAOLO : 2021 EU-wide Transparency Exercise
12/03SACE, INTESA SANPAOLO AND A POOL OF : Ç40 million loan contracted with Garanzia Italia gu..
12/02INTESA SANPAOLO S P A : The Banker awards Intesa Sanpaolo as "Bank of the Year in Italy" f..
12/01INTESA SANPAOLO S P A : Interim statement as at 30 September 2021
11/30Analysis-KKR's Telecom Italia approach may call time on Italy discount
11/26INTESA SANPAOLO S P A : Early redemption / Cancellation / Delisting
11/26INTESA SANPAOLO S P A : Amendment to the terms and conditions
11/26Italy's Nextalia raises $635 mln in first close of new private equity fund
11/26INTESA SANPAOLO : partial demerger of IW Bank S.p.A. in favour of Fideuram-Intesa Sanpaolo..
11/24INTESA SANPAOLO S P A : produces a guide to communicate the world of disabilities
More news
Analyst Recommendations on INTESA SANPAOLO S.P.A.
More recommendations
Sales 2021 20 835 M 23 571 M 23 571 M
Net income 2021 4 538 M 5 133 M 5 133 M
Net Debt 2021 - - -
P/E ratio 2021 9,28x
Yield 2021 9,20%
Capitalization 41 613 M 46 973 M 47 077 M
Capi. / Sales 2021 2,00x
Capi. / Sales 2022 2,00x
Nbr of Employees 97 600
Free-Float 95,3%
Duration : Period :
Intesa Sanpaolo S.p.A. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends INTESA SANPAOLO S.P.A.
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 25
Last Close Price 2,15 €
Average target price 2,83 €
Spread / Average Target 31,7%
EPS Revisions
Managers and Directors
Carlo Messina Chief Executive Officer, MD & Director
Stefano del Punta Chief Financial Officer
Gian Maria Gros-Pietro Chairman
Massimo Proverbio Chief IT, Digital & Innovation Officer
Paola Angeletti Chief Operating Officer
Sector and Competitors