Intesa Sanpaolo (ISP) Q2 2025 earnings summary

Executive summary

• Net income for H1 2025 reached €5.2bn, up 9.4% year-over-year, marking the best half-year result since 2007, with a full-year outlook upgraded to well above €9bn, reflecting strong profitability and sustainable value creation.

• Return on equity annualized at 20%, with tangible earnings per share up 12% year-over-year.

• Significant shareholder returns: €3.7bn dividends accrued in H1 2025 (including €3.2bn interim dividend for November) and a €2bn buyback launched in June 2025.

• Maintained a resilient, diversified business model, with strong performance across all major segments and leadership in Wealth Management, Protection & Advisory.

• Strong ESG commitment with €3.2bn taxes generated, expanded social programs, and €23.4bn in social lending and urban regeneration since 2022.

Financial highlights

• Operating income rose 1.1% to €13.8bn; operating margin up 1.9% to €8.5bn; gross income up 2.7% to €8.0bn compared to H1 2024.

• Net interest income declined 6.8% year-over-year to €7.4bn, offset by a 4.7% rise in net fee and commission income and 2.1% growth in insurance business income.

• Operating costs decreased 0.2% to €5.2bn; cost/income ratio improved to 38%, among the best in Europe.

• Customer financial assets reached €1,391bn, up €37bn year-over-year; assets under management rose 4.5% to €476bn.

• NPL ratio at 1.2% net and 2.3% gross (1% and 2% by EBA methodology); annualised cost of risk at 24bps.

Outlook and guidance

• 2025 net income guidance upgraded to well above €9bn, with further managerial actions in Q4 to enhance sustainability.

• Revenue growth expected from resilient net interest income, higher fee and commission income, and insurance business; operating costs to decrease further via technology and workforce optimization.

• Cash payout ratio of 70% of consolidated net income, with increased dividend per share and additional distributions to be determined.

• Loan growth expected between 2% and 5% in H2 2025, supported by EU funds and strong economic momentum.

• Fee and commission income expected to maintain mid-single digit growth, with double-digit growth in wealth management, protection, and advisory.