Italy’s Intesa Sanpaolo gained €1.25bn in the first quarter of 2018, increasing attributable profit by 39% compared to the same period of last year.
Although Intesa achieved €1.42bn in Q4 2017, the bank’s current net incomes would increase to €1.65bn in Q1 2018 if the capital gain from the Intrum transaction had been included, says Intesa’s CEO Carlo Messina.
In April, Intesa Sanpaolo’s board of directors approved a €3.6bn partnership with the Swedish credit management firm Intrum enabling the Italian bank to reduce its NPLs by €10.8bn.
The bank confirmed it would be paying 85 percent of profit in dividends this year and said its net income would be higher than last year’s €3.8bn.
Intesa Sanpaolo, Europe’s third-strongest bank in terms of capital ratios with a CET1 of 13.4%, said bad loans flows in Q1 2018 were the bank’s lowest ever in a first quarter.
The bank also highlighted its key role in helping 3,600 companies return to health. “Intesa Sanpaolo is a true accelerator of the real economy in Italy. In the first three months of 2018, we provided €12.5 billion in new medium- and long-term credit.”