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FINANCIALS: ISPIM; Profit Beat, Guidance Upgraded, Highly Supportive For Spreads

FINANCIALS

Intesa Sanpaolo (ISPIM: Baa1/BBB/BBB) 2Q24 headlines look positive with revenues 3% ahead of consensus (led, positively, by NII), CET1 similarly (13.5% vs. 13.4% cons), loan losses 12% better than consensus driving a 10% pre-tax profit beat. NPLs are 2.2% (cons: 2.4%). There is a hint of greater return to equity holders, but this isn’t happening until FY24 results are reported in Feb-25.

  • “*INTESA: ADDL SHAREHOLDER DISTRIB. FOR '24 TO BE QUANTIFIED
  • *INTESA SANPAOLO SEES 2025 NET ABOVE EU8.5B, SAW ABOVE EU8B
  • *INTESA SANPAOLO 2Q NET INCOME EU2.47B, EST. EU2.3B” – BBG
  • Spreads have rallied 10bp (relative) into these results so there is some expectation built in but these results certainly underpin that… and likely more, in our view.

Conf call is 1400 (London time) at: https://edge.media-server.com/mmc/p/oqutkb6w/

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