Intesa Sanpaolo (ISP) Q2 2026 earnings summary

Executive summary

• Achieved record net income of €5.6 billion for H1 2026, up 6.5% year-on-year, with €2.8 billion in Q2, marking the best quarter ever.

• Upgraded 2026 net income guidance to over €10 billion, driven by strong revenue growth, stable costs, and reduced provisions.

• Maintained a sustainable ROE above 20% and ROTE at 25%, with a CET1 ratio of 13.1%.

• Cost/income ratio reached a historic low of 35.9%, with operating costs down 0.7% year-on-year.

• €5.3 billion accrued for shareholder distribution in H1 2026, including €4.2 billion in dividends and a €2.3 billion buyback.

Financial highlights

• Operating income rose to €14.5 billion (+5.3% YoY), with net interest income at €7.5 billion (+0.6% YoY), and insurance income at €973 million (+5.5% YoY).

• Net income up 6% year-on-year for H1 2026; EPS increased by 9% year-on-year.

• Loans to customers up 2.8% from year-end 2025 to €437 billion; customer financial assets up 3.7% to €1,511 billion.

• Cost/income ratio at a record low of 35.9%; operating costs down 1% year-on-year.

• Annualised cost of risk at 20 basis points; NPL inflows at historical lows.

Outlook and guidance

• 2026 net income guidance upgraded to above €10 billion, with a 95% payout ratio (75% cash, 20% buyback).

• Net interest income guidance for 2026 raised to well above €15 billion.

• Loan growth expected to remain strong, with 2027 growth projected between 2% and 5%.

• Commercial banking fees expected to recover, with a peak in Q4 2026.

• Dividend yield projected at ~7%, best-in-class in Europe.