Intesa Increases Synergy Expectations From UBI Deal, Swings to 4Q Loss
By Pietro Lombardi
Intesa Sanpaolo SpA on Friday raised its expectations for the
synergies related to the acquisition of smaller rival UBI Banca and
posted a fourth-quarter loss due to impairments and integration
charges related to the deal.
The Italian bank swung to a quarterly net loss of 3.1 billion
euros ($3.71 billion) from a profit of EUR872 million a year
earlier. Results include the contribution of UBI. Excluding items
related to the acquisition, the bank posted a EUR10 million profit
for the quarter.
The bank said it expected higher synergies from the acquisition
of UBI. It now targets synergies of more than EUR1 billion, fully
implemented in 2024. This compares with a previous estimate of
around EUR700 million. More than EUR700 million is related to
costs, with more than EUR300 million related to revenue.
Intesa Sanpaolo targets a net profit of more than EUR3.5 billion
for this year. The bank is aiming for a payout ratio of 75% for
2020 and 70% for 2021, subject to ECB indications.
Write to Pietro Lombardi at firstname.lastname@example.org;
(END) Dow Jones Newswires
February 05, 2021 07:57 ET (12:57 GMT)
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