Performance del periodo PRESS RELEASE

INTESA SANPAOLO: CONSOLIDATED RESULTS AS AT 31 DECEMBER 2015

PROFITABILITY GREW STRONGLY, EXCEEDING THE BANK'S 2014-2017 BUSINESS PLAN TARGETS. PROPOSED CASH DIVIDENDS AMOUNT TO €2.4BN. THE CAPITAL BASE WAS STRONG AND WELL ABOVE REGULATORY REQUIREMENTS: PRO-FORMA FULLY LOADED COMMON EQUITY RATIO WAS 13.1% NET OF PROPOSED DIVIDENDS. NET INCOME FOR 2015 WAS €3BN, EXCLUDING EXTRAORDINARY CHARGES FOR THE RESOLUTION FUND; STATED NET INCOME WAS €2,739M. NET FEE AND COMMISSION INCOME SHOWED SUSTAINED GROWTH (THE HIGHEST FIGURE SINCE THE CREATION OF INTESA SANPAOLO). ASSETS UNDER MANAGEMENT PERFORMED STRONGLY. PROVISIONS WERE DOWN, REFLECTING AN IMPROVING CREDIT TREND. NPL INFLOW FROM PERFORMING LOANS WAS AT ITS LOWEST SINCE 2007. NLP STOCK DECLINED. INTESA SANPAOLO CONTINUES TO BE AN ACCELERATOR FOR GROWTH IN THE REAL ECONOMY IN ITALY. IN 2015, MEDIUM/LONG-TERM NEW LENDING GRANTED BY THE GROUP TO ITALIAN HOUSEHOLDS AND BUSINESSES AMOUNTED TO €41BN (UP 54% VS 2014). IN 2015, THE BANK FACILITATED THE RETURN TO PERFORMING STATUS OF 20,000 COMPANIES - MAKING A TOTAL OF 29,000 SINCE 2014.
  • €2.4BN CASH DIVIDENDS PROPOSED FOR 2015: €14 CENTS PER ORDINARY SHARE AND €15.1 CENTS PER SAVINGS SHARE. DIVIDEND YIELD(*) OF 5.6% PER ORDINARY SHARE AND 6.5% PER SAVINGS SHARE

  • ROBUST NET INCOME:

    • €3BN IN 2015, EXCLUDING EXTRAORDINARY CHARGES FOR THE RESOLUTION FUND(**), UP 76.9% VS €1.7BN IN 2014 (EXCLUDING THE RETROACTIVE TAX RATE INCREASE RELATING TO THE BANK OF ITALY STAKE). THIS IS THE HIGHEST FIGURE SINCE 2007 (EVEN WHEN EXCLUDING IMPAIRMENT OF GOODWILL AND OTHER INTANGIBLE ASSETS FROM NET INCOME FOR 2011 AND 2013).

    • STATED NET INCOME AT €2,739M IN 2015 VS €1,251M IN 2014

  • STRONG GROWTH IN PRE-TAX INCOME, THE HIGHEST FIGURE SINCE 2007:

    • UP 56.7%, EXCLUDING CHARGES FOR THE RESOLUTION FUND AND THE DEPOSIT GUARANTEE SCHEME IN 2015

  • SIGNIFICANT INCREASE IN OPERATING MARGIN:

    • UP 7.6%, EXCLUDING CHARGES FOR THE RESOLUTION FUND AND THE DEPOSIT GUARANTEE SCHEME IN 2015

• €4,597M, UP 40.9% VS 2014

• €8,333M, UP 1.4% VS 2014

  • SUSTAINED GROWTH IN NET FEES AND COMMISSIONS, THE HIGHEST FIGURE SINCE THE CREATION OF INTESA SANPAOLO:

• €7,496M, UP 10.8% VS 2014

  • CONTINUOUS COST MANAGEMENT:

    • OPERATING COSTS AT €8,816M, UP 2.4% VS 2014

  • REDUCTION IN PROVISIONS, REFLECTING AN IMPROVING CREDIT TREND:

    • LOAN LOSS PROVISIONS AT THEIR LOWEST LEVEL SINCE 2010: €3,306M, DOWN 27.6% VS 2014

    • NPL INFLOW FROM PERFORMING LOANS AT ITS LOWEST SINCE 2007; NPL INFLOW DOWN 33% NET AND 29% GROSS VS 2014

    • NPL STOCK DECLINING, DOWN 3% NET VS SEPTEMBER 2015 AND 1% NET VS DECEMBER 2014; DOWN 2% GROSS VS SEPTEMBER 2015

  • A STRONG CAPITAL BASE, WELL ABOVE REGULATORY REQUIREMENTS, WITH COMMON EQUITY RATIO, NET OF €2.4BN DIVIDENDS PROPOSED FOR 2015, OF:

    • 13.1% ON A FULLY LOADED BASIS(1)

    • 13% ON A TRANSITIONAL BASIS FOR 2015(2) ("PHASED IN")

(*) At the Intesa Sanpaolo stock price on 4 February 2016.

(**) The annual ordinary contribution to the resolution fund for 2015 was estimated 70% in cash (approximately €95m, which was booked in the income statement for H1 2015) and 30% as an irrevocable payment commitment (approximately €30m). As a result of the resolution process interventions in November 2015 involving four Italian banks, total extraordinary charges of €376m (€250m net of taxes) were booked in the income statement for Q4 2015. This figure included the ordinary component against the irrevocable payment commitment, as well as additional extraordinary charges equivalent to three annual contributions (approximately €345m).

  1. Estimated by applying the fully loaded parameters to the financial statements as at 31 December 2015, considering the total absorption of deferred tax assets (DTAs) related to the goodwill realignment and adjustments to loans, and the expected absorption of DTAs on losses carried forward; including the effect of the Danish compromise (under which insurance investments are risk weighted instead of being deducted from capital, with a benefit of 14 basis points).

  2. Includes the net income for 2015 net of proposed dividends.

    HIGHLIGHTS:

    OPERATING INCOME:

    FY 2015

    Q4 2015

    +1.9% AT €17,149M VS €16,828M IN 2014;

    +5% EXCLUDING CHARGES FOR THE RESOLUTION FUND AND THE DEPOSIT GUARANTEE SCHEME IN 2015

    -12.1% AT €3,687M VS €4,195M IN Q3 2015;

    -3.1% EXCLUDING CHARGES FOR THE RESOLUTION FUND IN Q4 2015

    OPERATING COSTS:

    FY 2015

    Q4 2015

    +2.4% AT €8,816M VS €8,606M IN 2014;

    +19.7% AT €2,490M VS €2,080M IN Q3 2015

    OPERATING MARGIN:

    FY 2015

    Q4 2015

    +1.4% AT €8,333M VS €8,222M IN 2014;

    +7.6% EXCLUDING CHARGES FOR THE RESOLUTION FUND AND THE DEPOSIT GUARANTEE SCHEME IN 2015

    -43.4% AT €1,197M VS €2,115M IN Q3 2015;

    -25.6% EXCLUDING CHARGES FOR THE RESOLUTION FUND IN Q4 2015

    INCOME BEFORE TAX FROM CONTINUING OPERATIONS:

    FY 2015

    Q4 2015

    +40.9% AT €4,597M VS €3,263M IN 2014;

    +56.7% EXCLUDING CHARGES FOR THE RESOLUTION FUND AND THE DEPOSIT GUARANTEE SCHEME IN 2015

    €161M VS €1,125M IN Q3 2015;

    €537M EXCLUDING CHARGES FOR THE RESOLUTION FUND IN Q4 2015

    NET INCOME:

    FY 2015

    Q4 2015

    €2,739M VS €1,251M IN 2014;

    €2,989M EXCLUDING EXTRAORDINARY CHARGES

    FOR THE RESOLUTION FUND IN 2015 VS €1,690M IN 2014 EXCLUDING THE RETROACTIVE TAX RATE INCREASE RELATING TO THE STAKE

    IN THE BANK OF ITALY

    €13M VS €722M IN Q3 2015;

    €263M EXCLUDING CHARGES FOR THE RESOLUTION FUND IN Q4 2015

    CAPITAL RATIOS:

    COMMON EQUITY RATIO AFTER PROPOSED DIVIDENDS:

    13.1% PRO-FORMA FULLY LOADED(3) ;

    13% PHASED IN(4)

  3. Estimated by applying the fully loaded parameters to the financial statements as at 31 December 2015, considering the total absorption of deferred tax assets (DTAs) related to the goodwill realignment and adjustments to loans, and the expected absorption of DTAs on losses carried forward; including the effect of the Danish compromise (under which insurance investments are risk weighted instead of being deducted from capital, with a benefit of 14 basis points).

  4. Includes the net income for 2015 net of proposed dividends.

    Turin - Milan, 5 February 2016 - At its meeting today, the Management Board of Intesa Sanpaolo approved the parent company and consolidated results as at 31 December 2015(5).

    The Group has achieved a strong improvement in profitability - to above the 2014-2017 Business Plan targets - despite prolonged market challenges, and maintained a solid balance sheet, as the figures below show:

    • robust net income to €2,989m in 2015, excluding extraordinary charges for the resolution fund, up 76.9% versus €1,690m in 2014 excluding the retroactive tax rate increase relating to the capital gain recorded in 2013 on the Bank of Italy stake. It is the highest result since 2007 (even when excluding the impairment of goodwill and other intangible assets from the net income for 2011 and 2013). The stated net income was

      €2,739m in 2015 from €1,251m in 2014, and €13m in Q4 2015 from €722m in Q3 2015. The net income for Q4 2015 amounted to €263m, excluding the extraordinary charges for the resolution fund.

    • strong growth in pre-tax income to €4,597m in 2015, up 40.9% versus 2014 and up 56.7% excluding charges for the resolution fund and the deposit guarantee scheme in 2015, the highest figure since 2007

    • significant increase in operating margin to €8,333m in 2015, up 1.4% versus 2014 and up 7.6% excluding charges for the resolution fund and the deposit guarantee scheme in 2015

    • positive and increasing pre-tax income from all business units in 2015. The Wealth Management area generated €2,646m pre-tax income (up 30% vs 2014) with contributions of €1,109m from Private Banking (up 32.2% vs 2014), €614m from Asset Management (up 46.9% vs 2014) and €923m from Insurance (up 18.5% vs 2014). Banca dei Territori contributed €2,131m (up 26.5% vs 2014), Corporate and Investment Banking

      €1,955m (up 12.9% vs 2014) and International Subsidiary Banks €568m (up 8.6% vs 2014).

    • strong growth in assets under management of approximately €26bn in 2015, with net inflow of approximately €30bn, of which approximately €12bn were switched from assets previously held under administration. Since year-end 2013, assets under management have increased by approximately €69bn, with net inflow of approximately €60bn, of which approximately €30bn were switched from assets previously held under administration.

    • support to the real economy, with approximately €48bn of medium/long-term new lending in 2015. Approximately €41bn of loans were granted in Italy (up 54% vs 2014); approximately €34bn of these loans were granted to households and SMEs, an increase of 68% on 2014. In 2015, the Bank facilitated the return from non- performing to performing status of 20,000 Italian companies, making a total of 29,000 since 2014.

  5. Methodological note on the scope of consolidation on page 22.

Intesa Sanpaolo S.p.A. published this content on 27 April 2016 and is solely responsible for the information contained herein.
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