Intesa Sanpaolo (ISP) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 net income of €2.8 billion, up 6% year-over-year, with operating income at €7.15 billion (+5.3% YoY) and gross income up 9.7%, marking the best quarter since 2007.

• Strong performance in commissions (+3% YoY), insurance income (+3% YoY), and profits on financial assets and liabilities at fair value (+90.6% YoY).

• Cost/income ratio improved to 35.9%, among the best in Europe, with operating costs down 0.7% year-over-year.

• On track to deliver €10 billion net income for 2026, with guidance confirmed despite market volatility.

• Significant capital return to shareholders: €2.6 billion accrued in Q1 for distribution, €2.1 billion as dividends, €2.3 billion buyback to launch in July, and €9.4 billion total planned for 2026.

Financial highlights

• Net interest income stable at €3.64 billion (+0.1% YoY), net fee and commission income at €2.52 billion (+3.1% YoY), and insurance income at €476 million (+3% YoY).

• Loans to customers grew 3% year-over-year and 1% sequentially, totaling €430 billion.

• Customer financial assets reached €1.44 trillion (+4.7% YoY).

• Annualized cost of risk at 16 bps, with NPL ratio at 0.8% net and 1.5% gross (EBA methodology), and NPL coverage at 49.5%.

• Operating costs decreased 0.7% YoY; gross income before tax was €4.34 billion, up 9.7% YoY.

Outlook and guidance

• 2026 net income guidance of ~€10 billion confirmed, driven by revenue growth in commissions and insurance, with stable costs and a 95% payout ratio (75% cash, 20% buyback).

• Loan growth target set at 3-4% for the year, mainly from corporate and investment banking.

• Insurance income expected to grow at mid-single digits, with property and casualty as key contributors.

• Cost of risk guidance at 25-30 bps, overlays to be used only in case of severe deterioration.

• Outlook remains sensitive to geopolitical developments, energy prices, and central bank policy.