By Pietro Lombardi

 

Intesa Sanpaolo SpA released first-quarter results on Tuesday. Here is what you need to know.

 

NET PROFIT: Net profit for the period rose 9.6% to 1.15 billion euros ($1.26 billion), beating analysts' expectations of a profit of EUR811 million, according to FactSet.

 

REVENUE: The Italian bank's revenue rose almost 12% to EUR4.88 billion. Analysts had forecast revenue of EUR4.19 billion.

 

WHAT WE WATCHED:

 

-PROVISIONS: The bank set aside around EUR300 million in provisions related to the coronavirus pandemic. These provisions, along with the capital gain related to a transaction with Nexi SpA, "would make it possible to absorb a total of around EUR1.5 billion pre-tax adjustments to loans for the full year," the bank said.

 

-REVENUE STREAMS: Net interest income fell 0.5% on year, while fees and commissions declined 1.1%. Income from insurance business rose 7.2%. Profits on financial assets and liabilities at fair value more than doubled to EUR994 million.

 

-GUIDANCE: Looking ahead, the bank expects a net profit of at least EUR3 billion in 2020 and EUR3.5 billion in 2021. It also confirmed its dividend policy. Given the impact of the coronavirus pandemic, the strategic value of its takeover bid for smaller rival Unione di Banche Italiane SpA is even stronger, Intesa said.

 

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

 

(END) Dow Jones Newswires

May 05, 2020 08:39 ET (12:39 GMT)

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