Intesa Sanpaolo Lifts Profit View After Quarterly Beat

By Elena Vardon

Intesa Sanpaolo raised its profit guidance for 2024 after it reported better-than-expected second-quarter results.

The Italian bank on Tuesday said that it now expects over 8.5 billion euros ($9.20 billion) in net income--or net profit--for 2024 and for 2025, compared with its previous guidance of over EUR8.0 billion.

The group continues to benefit from higher income from fees and commissions from its insurance and asset management activities as well as resilient net interest income from hedges it has put in place to reduce its sensitivity to interest-rate cuts.

For the three months ended June 30, it reported EUR2.465 billion in net income, ahead of estimates taken from a Visible Alpha poll that had forecast a EUR2.355 billion figure.

Operating income--the lender's top-line figure--was EUR6.86 billion for the quarter, beating expectations of EUR6.70 billion. This included EUR4.01 billion in net interest income--the difference between what banks earn on loans and what they pay clients for deposits--and EUR2.38 billion in net fee and commission income, it said.

The group accrued EUR3.3 billion in dividends in the first half of the year, it added.

At 1057 GMT, shares in Milan rose 1.85% to EUR3.73.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

July 30, 2024 07:13 ET (11:13 GMT)

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