Intesa Sanpaolo (ISP) Q2 2026 earnings summary

Executive summary

• Net income for H1 2026 reached €5.6 billion, up 6.5% year-over-year, marking the best half-year and quarter ever, driven by strong revenue growth, cost discipline, and resilient asset quality.

• Upgraded 2026 net income guidance to over €10 billion, reflecting strong and sustainable earnings, with robust revenue growth in commissions and insurance income.

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

• CET1 ratio at 13.1%, reflecting a robust and resilient capital position.

• €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 5.3% to €14.5 billion, with net interest income at €7.48 billion (+0.6% YoY), net fees and commissions at €5.13 billion (+4.9% YoY), and insurance income at €973 million (+5.5% YoY).

• Gross income increased 8.5% to €8.6 billion, and operating margin rose 9.1% to €9.3 billion.

• Net adjustments to loans fell to €428 million (-15.2%), with annualised cost of risk at 20 basis points.

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

• Basic and diluted EPS were €0.32 (vs. €0.29 in H1 2025).

Outlook and guidance

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

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

• Revenue growth expected to be led by commissions and insurance income; cost base to remain stable.

• Board envisages interim dividend of €3.8 billion in November 2026.

• Business plan initiatives for 2026-2029 fully launched, focusing on tech transformation, cost reduction, and revenue growth.