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.