INTESA SANPAOLO: CONSOLIDATED RESULTS AS AT 31 MARCH 2020
RESULTS FOR Q1 2020 STRENGTHEN INTESA SANPAOLO'S ABILITY TO FACE EFFECTIVELY THE CHALLENGING AFTERMATH OF THE COVID-19 EPIDEMIC. THEY REFLECT THE GROUP'S SUSTAINABLE PROFITABILITY - WHICH DERIVES FROM A SOLID CAPITAL BASE AND A STRONG LIQUIDITY POSITION, A RESILIENT AND WELL-DIVERSIFIED BUSINESS MODEL, AND THE STRATEGIC FLEXIBILITY IN MANAGING OPERATING COSTS - AND ITS SUPPORT TO ITALY, INCLUDING THROUGH THE COMMITMENT TO BECOMING A REFERENCE MODEL IN TERMS OF SUSTAINABILITY AND SOCIAL AND CULTURAL RESPONSIBILITY.
THE CAPITAL POSITION WAS SOLID AND WELL ABOVE REGULATORY REQUIREMENTS. PRO-FORMA FULLY LOADED COMMON EQUITY TIER 1 RATIO WAS 14.5%, TAKING THE DIVIDENDS ACCRUED IN Q1 2020 INTO ACCOUNT.
IN Q1 2020, NET INCOME WAS €1,151 MILLION (UP 9.6% ON Q1 2019), AT AROUND €1,360 MILLION WHEN EXCLUDING THE PROVISIONS FOR COVID-19 (AROUND €300 MILLION PRE-TAX IN THE ALLOWANCES FOR RISKS AND CHARGES) AND AT AROUND €2.3 BILLION PRO-FORMA WHEN - IN ADDITION TO EXCLUDING THESE PROVISIONS - TAKING INTO ACCOUNT THE AROUND €900 MILLION NET CAPITAL GAIN FROM NEXI (ALLOWING TO ABSORB AROUND €1.2 BILLION PRE-TAX OF PROVISIONS), WITH A CONSEQUENT BUFFER OF AROUND €1.5 BILLION PRE-TAX TO TACKLE THE POSSIBLE COVID-19 IMPACTS FOR THE ENTIRE YEAR.
GROSS INCOME WAS UP 9% ON Q1 2019, OPERATING MARGIN WAS UP 26.8%, OPERATING INCOME WAS UP 11.7%, OPERATING COSTS WERE DOWN 2.7% AND COST/INCOME WAS 44.4%.
CREDIT QUALITY IMPROVED. GROSS NPLS WERE REDUCED AT NO EXTRAORDINARY COST TO SHAREHOLDERS BY 3.6% ON YEAR-END 2019, AND BY AROUND €23 BILLION SINCE THE END OF 2017 ACHIEVING AS MUCH AS 88% OF THE TARGET SET FOR THE ENTIRE FOUR-YEAR PERIOD OF THE 2018-2021 BUSINESS PLAN. GROSS NPL RATIO DOWN TO 7.1% AND NET NPL RATIO DOWN TO 3.5%. ANNUALISED COST OF RISK IN Q1 2020 DECREASED TO 40 BASIS POINTS.