First quarter 2024 results: highlights
With a Net income of €2.3 billion, Intesa Sanpaolo’s first quarter 2024 was the best-ever start to the year, also thanks to a strong acceleration in Commissions and Insurance income. These high-quality results put the Group firmly on track to deliver a Net income above €8 billion in 2024.
Cash dividends accrued in Q1 totaled €1.6 billion, with a 70% cash payout ratio and dividend yield above 10% confirmed for the year. Earnings per share (EPS) grew 21% on a yearly basis.
In 2024, Intesa Sanpaolo will reward shareholders with a total distribution of at least €7.3 billion, including the €1.7 billion share buyback in June and the interim dividend paid in November. Additional capital distribution will be evaluated at the end of the year.
Intesa Sanpaolo’s tech transformation is moving quickly with €3 billion already invested as part of the Group’s four-year €5 billion plan (see more on Technology leadership). Even while investing aggressively in technology, costs are firmly under control, with the lowest-ever Cost/Income ratio in Q1.
Intesa Sanpaolo has a unique commissions-driven and efficient business model, supported by strong tech investments, that is ready to deliver in any interest rate environment, allowing the Group to take advantage of a rebound in Wealth Management when rates decline (see more on Wealth Management leadership).
Intesa Sanpaolo’s leadership in Wealth Management, Protection & Advisory is driven by over €1.3 trillion in Customer financial assets, fully-owned product factories, advanced digital channels, and client network of over 16,000 private bankers, financial advisors and relationship managers.
- €2.3bn Net income (+18% vs 1Q23), €2.5bn when excluding the final Deposit Guarantee Scheme contribution
- Best-ever quarter for Operating income (+11% vs 1Q23), Operating margin (+18%) and Gross income (+17%)
- Strong acceleration in Commissions (+8% vs 4Q23) and Insurance income (+16% vs 1Q23, best-ever Q1)
- €28bn increase in Customer financial assets in Q1, exceeding €1.3 trillion (+€119bn vs 31.3.23)
- Lowest-ever Cost/Income ratio at 38.2%
- NPL inflow at historical low driving annualized Cost of risk down to 22bps, with no overlays released
- Increase in NPL coverage ratio to 50.7%, coupled with NPL stock at historical low
- Fully phased-in CET1 ratio up at >13.3%, taking into account the €1.7bn buyback to be launched in early June
- Russia exposure further reduced to 0.1% of Group customer loans
Intesa Sanpaolo’s excellent performance benefited all its stakeholders in Q1:
- Shareholders, with 40% of cash dividends going directly to Italian households and charitable foundations
- Employees, with personnel expenses totaling €1.6 billion, continuous growth of the People satisfaction index and recognition as Top Employer for the third consecutive year
- Public sector, with €1.6 billion in taxes
- Households and Businesses, with medium/long-term new lending of €13.6 billion (of which €8.8 billion in Italy) and around 700 Italian companies helped to return to performing status.
More information on the 1Q 2024 financial results together with the outlook and main industrial initiatives of the Intesa Sanpaolo 2022-2025 Business Plan, are available in the Group’s Investor Relations section.
Last updated 3 May 2024 at 14:21:29
