{"id":35924,"date":"2023-05-05T16:07:42","date_gmt":"2023-05-05T16:07:42","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/italian-bank-intesa-raises\/"},"modified":"2023-05-05T16:11:25","modified_gmt":"2023-05-05T16:11:25","slug":"italian-bank-intesa-raises","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/italian-bank-intesa-raises\/","title":{"rendered":"Italian bank Intesa raises profit target after beating forecasts"},"content":{"rendered":"<p>By Valentina Za<\/p>\n<p>MILAN (Reuters) -Intesa Sanpaolo, Italy&#8217;s biggest bank, raised its 2023 profit goal on Friday after first-quarter net income nearly doubled thanks to higher interest rates and shrinking loan loss provisions.<\/p>\n<p>The lender forecast 7 billion euros ($7.7 billion) in net profit this year, having said in February that it would top last year&#8217;s result of 5.5 billion euros.<\/p>\n<p>&#8220;Looking ahead to 2025, the final year of our business plan, we expect to comfortably exceed our 6.5 billion net income target,&#8221; CEO Carlo Messina told analysts.<\/p>\n<p>The upgrade comes after fellow heavyweight UniCredit raised its 2023 profit target this week by more than a fifth.<\/p>\n<p>Earnings from lenders across Europe have highlighted ongoing momentum in a sector where investor confidence has been hurt by failures across the Atlantic and the rescue of Credit Suisse.<\/p>\n<p>Intesa reported first-quarter net income of 1.96 billion euros, far above a 1.54 billion euro consensus in analyst forecasts compiled by Reuters. <\/p>\n<p>Total revenue topped expectations at 6.06 billion euros, up 7% from the previous quarter. Higher interest rates lifted lending income by 66% year on year, helping to offset a 6.6% drop in net fees and commission.<\/p>\n<p>With its business geared towards asset management, as well as insurance, Intesa is more exposed than rival UniCredit to recent market turmoil affecting investment inflows and performance. <\/p>\n<p>However, it said the boost from higher rates would continue to drive profit higher and forecast more than 13 billion euros in net interest income this year, raising its guidance.<\/p>\n<p>&#8220;Better net interest income is here to stay,&#8221; Santander CIB analysts said.<\/p>\n<p>The surge in banks&#8217; profits at a time when higher rates are squeezing households&#8217; budgets has prompted Italy to consider a windfall tax on lenders, following in Spain&#8217;s footsteps.<\/p>\n<p>Messina said Intesa would support such a measure, provided it was a one-off and aimed at helping people in need.<\/p>\n<p>The bank confirmed its 70% payout ratio.<\/p>\n<p>Core capital edged up in the quarter to 13.7% of risk-weighted assets (RWAs) after Intesa at the end of last year moved to sharply cut its RWAs to offset the negative impact on capital from revised internal risk models.<\/p>\n<p>($1 = 0.9069 euros)<\/p>\n<p> (Reporting by Valentina ZaEditing by David Goodman, Kirsten Donovan)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/italian-bank-intesa-raises\/illustration-shows-intesa-sanpaolo-bank-logo\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ440AX-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ440AX-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Valentina Za MILAN (Reuters) -Intesa Sanpaolo, Italy&#8217;s biggest bank, raised its 2023 profit goal on Friday after first-quarter net income nearly doubled thanks to higher interest rates and shrinking loan loss provisions. The lender forecast 7 billion euros ($7.7 billion) in net profit this year, having said in February that it would top last [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":35925,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[],"class_list":["post-35924","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ440AX-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/35924","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=35924"}],"version-history":[{"count":1,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/35924\/revisions"}],"predecessor-version":[{"id":35926,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/35924\/revisions\/35926"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/35925"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=35924"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=35924"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=35924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}