Intesa Sanpaolo has announced impressive financial results for the year 2024, closing with a net profit of €8.7 billion, marking a notable increase of 12.2% compared to €7.7 billion from 2023. This performance exceeded analyst expectations, with forecasts predicting profits of around €8.6 billion. The bank's strong results came with the backdrop of having already achieved €7.2 billion in net profits during the first nine months of the year, reflecting year-on-year growth of 17%. The rise positions Intesa Sanpaolo as a dominant player within the Eurozone's banking sector.
Under the leadership of CEO Carlo Messina, Intesa Sanpaolo has strengthened its capital base, demonstrating resilience with a market capitalization of €68.8 billion, surpassing rivals such as Santander and BNP Paribas. Looking forward to 2025, the bank predicts net profits could soar to “well beyond €9 billion,” improving from earlier forecasts of just over €8.5 billion.
One significant aspect of Intesa's performance was the return of cash to shareholders, with the board proposing dividends totaling €6.1 billion—composed of €3 billion already distributed as interim dividends as of November 2024, and another €3.1 billion suggested for payment by May 2025. An additional €2 billion share buyback program, already approved by the European Central Bank, is set to begin in June 2025.
The bank's operational results showed substantial growth as well, with net operating income climbing by 7.5%, attributed to net interest income rising by 6.9% and net commissions up by 9.4%. These gains occur against the backdrop of rising costs, which only grew by 1.3%, enabling the cost-to-income ratio to remain sound at 42.7%.
Despite fluctuated performance during the fourth quarter—where net interest fell to €3.8 billion, reflecting decreases of 5.2% year-over-year, yet net commissions expanded by 4.7% to €2.42 billion—overall revenues have remained positive. For the final quarter, Intesa recorded €6.7 billion, down 2% from the preceding quarter but showcasing growth of 4.2% compared to the same quarter the previous year.
Intesa Sanpaolo’s solid results also underlie the bank’s strong credit quality, with non-performing loan ratios at just 1.2% of total loans, highlighting effective risk management practices. The excellent performance has not been lost on the markets, as Intesa's shares have remained buoyant, up nearly 8% over the month and boasting impressive growth of 48% over the past year.
The bank’s 2024 performance is not only financially compelling but reflects its broader commitment to supporting the Italian economy. The institution claims to have provided around €43 billion of new credit to families and businesses within Italy throughout the year. Since 2014, it has helped rescue approximately 144,000 companies, thereby protecting more than 720,000 jobs across the nation.
Intesa Sanpaolo's report also highlighted its ESG efforts, indicating the creation of substantial social value for all stakeholders, with €5.3 billion generated as taxes and significant investments directed toward initiatives addressing economic disparities. The bank has committed approximately €20.4 billion for social credit and urban regeneration between 2022 and 2024, alongside the €1.5 billion تخصيص for addressing social needs over 2023-2027.
Market analysts seem satisfied with these developments. Observations post-results indicate limited immediate reaction from stock prices, which fluctuated only marginally by 0.01% to €4.16 but retains overall positive trends. Investors remain hopeful as the bank's leadership asserts solid possibilities for equity trading, reinforcing buy recommendations as it approaches increased profitability forecasts and dividend distributions.
Overall, Intesa Sanpaolo has demonstrated its ambitious growth plans alongside strong financial performance. Such advancements are anticipated to bolster the bank’s market position and return to shareholders, embodying its strategic objectives and commitment to the real economy.