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 annualized ROE at 21% and EPS up 8%, marking the best quarter ever.

• Operating income reached €7.15 billion (+5.3% YoY), with gross income up 9.7% and operating margin at €4.59 billion.

• Execution of the business plan is progressing rapidly, focusing on cost reduction, conservative revenue growth, and maintaining low cost of risk.

• Significant cash return to shareholders: €2.6 billion accrued in Q1 for distribution, €2.1 billion as dividends, €2.3 billion buyback to launch in July.

• Social impact initiatives included €1.4 billion in social lending and €1.1 billion deployed since 2023 to fight poverty and reduce inequalities.

Financial highlights

• Net interest income was stable at €3.64 billion (+0.1% YoY), net fee and commission income €2.52 billion (+3.1% YoY), insurance income €476 million (+3% YoY), and profits on financial assets and liabilities at fair value €505 million (+90.6% 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).

• Cost/income ratio at a historic low of 35.9%, with operating costs down 0.7% YoY.

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

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).

• Guidance remains unchanged, with upside potential in NII if rates rise and further cost reductions possible.

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