Dear investors,
Today we will examine $ISP.MI (Intesa Sanpaolo Group) by analyzing the results of 2024 and comparing them with those of the previous year. These two links to refer to will come in handy: 1 etoro.tw/4844FZz report and 2 etoro.tw/42SdbbZ report.
We are in a context of lower interest rates by the ECB, but European banks still benefit from the advantages of rates that remain always high for the time being. Intesa San Paolo amazes, with improvements in almost all valuation metrics and a further €2 billion buyback scheduled for June 2025 and already authorized by the ECB.
• Cet 1 Ratio (Common Equity Tier 1 Ratio)
This ratio is crucial to understanding capital strength. It represents the primary capital (ordinary shares and retained earnings). The minimum requirements are set out in the framework of the Basel III regulations (see the appropriate section below).
2023: 13,7%
2024: 13,9%
we are still well above the minimum requirements and this represents a strong capital position.
• Tier1
It represents the ratio of CET1 to risk-weighted assets (each asset of the bank has a risk ratio). Also for this ratio, the minimum requirements are included in the Basel III regulatory framework.
2023: 16,3%
2024: 16,5%
The ratio of primary capital to RWA has increased, which is a sign of careful and prudent asset management.
Values of the three ratios after deduction of the total dividend for 2024 (€6.2 bn of which €3 bn interim dividend in November 2024 and €3.1 bn in May '25) and the buyback of €2 bn already approved by the ECB which will start in June 2025:
• CET1 Ratio:
13.3% in 2024 compared to 13.2% in 2023 (after deduction of the buyback executed in 2024).
• Tier1:
15.8% in 2024 compared to 15.7% in 2023 (after deduction of the 2024 buyback).
• Total Capital Ratio:
19% in 2024 compared to 18.6% in 2023 (after deduction of the 2024 buyback).
The coefficients remain well above the regulatory requirements of Basel 3/Basel 4. These results once again denote the financial strength of the Italian institution.
• Leverage Ratio:
It measures how much debt a bank is in relation to equity. Lower values are considered positive, while high values could indicate high debt.
2023: 5,8%
2024: 5.9% which becomes 5.7% if deducted the buyback expected for this year.
The metric remains substantially unchanged and remains one of the best values compared to the main European banking groups.
• LCR (Liquidity Coverage Ratio) & NSFR (Net Stable Funding Ratio)
LCR: Measures the bank's ability to cover cash outflows over a 30-day stress period. Introduced by the Basel Committee (Basel III). The requirement indicates that it must not be less than 100%. Entered into force in 2018.
2023: 168%
2024: 155%
NSFR: assesses the bank's ability to maintain a stable funding structure over 12 months. Introduced by the Basel Committee after the 2007-2008 crisis, it represents the ratio between the amount of stable funding available and the amount of compulsory stable funding. Again, the ratio must be above 100% to ensure sufficient resources for 12-month activities. Entered into force in 2021 with minimum level of 100%.
2023: 121%
2024: 122%
We saw a decline in LCR metrics, while NSFR was broadly unchanged. However, the values are well above the requirements here as well, and the decrease in either metric is not worrying.
• MREL
Calculated on the Risk Weighted Asset (RWA) it is:
2023: 39,8%
2024: 40.8% for the total and 23.8% for the subordinated component. If we deduct the buyback expected from June 2025 then we have 40.1% for the total and 23.1% for the subordinated component.
The minimum requirements are 26.2% and 18.6% respectively; Once again, we are faced with values well above the requirements.
•NPL
Non-Performing Loans, i.e. non-performing loans that are unlikely to be recovered. The NPL/total loans ratio indicates the quality of the bank's loans.
2023: achieved Zero NPL" status in 2022;
2024: Ibid.
The achievement of this goal was part of the strategic plan to 2025, achieved thanks to capital efficiency and credit risk transfer initiatives. A very important and remarkable milestone.
• Net Income
It is a profitability indicator, used to calculate other indicators such as ROE and EPS. It represents the bank's profit after deduction of all expenses, interest and taxes.
2023: €7.7 bn
2024:€8.7 bn
It increases by 12% and is higher than expected.
Revenues grew thanks to a +9% increase in total commissions of cii and +4% of commissions on insurance products (although net commissions in the insirance segment decreased by -2.5%).
Continue in the comments...... Show More
• Net Commission
They are the balance between commission income and commission pay. The commissions receivable are those that the bank earns from the provision of its services: current account management, transfers and other financial services. The negative ones are the costs that the bank has to pay... Show More
Return for shareholders: €6.1 bn dividends + €2 bn buyback since June already authorised by the ECB;
Client financial assets (wealth management, protection & advisory): more than €1400 bn (+€77 bn vs 2023).
By business area:
• Banca dei Territori accounts for 43% of the group's net operating income.
This... Show More
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Fri Jun 13 2025 20:32:26 GMT+0000 (Coordinated Universal Time)
