By Cristina Roca

 

Intesa Sanpaolo SpA on Friday cut its guidance for the year to reflect the effects of the war in Ukraine.

The bank booked writedowns of 822 million euros ($866.5 million) on its Russian and Ukraine businesses in the first quarter, the bulk of which was related to loan exposure.

Intesa, Italy's largest bank by assets, said it now expects a net income of more than EUR4 billion this year assuming no critical changes to commodity and energy supplies. It had guided for a full-year net profit of more than EUR5 billion before the Ukraine war broke out.

Assuming only 40% of its exposure to Russia and Ukraine is covered--a very conservative scenario--it expects a net profit well above EUR3 billion, it said.

The Italian bank's net profit for the first quarter fell to EUR1.02 billion from EUR1.52 billion a year earlier.

Operating income, the bank's top-line figure, fell 1.4% to EUR5.41 billion.

Analysts had expected a EUR713 million quarterly net profit on operating income of EUR4.87 billion, according to a FactSet consensus.

Intesa said it is on track to hit its 2025 goal of EUR6.5 billion net profit.

 

Write to Cristina Roca at cristina.roca@wsj.com

 

(END) Dow Jones Newswires

May 06, 2022 07:44 ET (11:44 GMT)

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