Intesa Sanpaolo moving towards wealth management model

Italy’s Intesa Sanpaolo is “successfully” moving towards a wealth management company model, the bank’s CEO Carlo Messina said.

In the second quarter of the year, commissions rose 10% versus Q1, Messina said, as in the last two and a half years, net inflows reached €64bn.

“About 50% of pre-tax income is generated by our Wealth Management business, including revenues derived from the Banca dei Territori division,” Messina said.

“We are convinced that we have substantial upside in a very low interest rate environment and an Italian asset management market with plenty of growth potential, thanks to over €840bn in client investing activity,” he said.

Intesa Sanpaolo’s net income in Q2 was €901m compared to €806m in the first quarter. Bloomberg’s consensus had expected €737m.

But net income was down 4% from €940m year-on-year, as European banks’ profitability is being hindered by record low rates.

In Q2, Intesa Sanpaolo’s asset management division, Eurizon Capital, posted a 1.3% net income decrease to €89m, versus €90m in Q1 2016. The unit recorded net income of €179m in the first half of 2016, a drop of 19.7% versus €223m in H1 2015.

Alicia Villegas
Alicia Villegas speaks Spanish and Italian and is Iberia Correspondent for InvestmentEurope. She was shortlisted for the Rising Star Award at the British Media Awards 2017 and Writer of the Year at the PPA Independent Publisher Awards 2016. Previously, she worked for almost three years at the seafood business website Undercurrent News as a market reporter. In Spain, she also worked for more than five years for several media outlets.

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