The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Antonio Reale - BofA Global Research - Analyst
: I have just one question, please. On your net profit guidance for this year, you guided to be above EUR8.5 billion net profit. Can you walk us through
the key P&L drivers, please? Because you're running quite a bit above the EUR9 billion, it'd be good to understand how much is your retaining
buffers to support future profitability and how much of what we've seen in the first half is less sustainable. Thank you.
Question: Azzurra Guelfi - Citigroup Inc. - Analyst
: One question from me as well. When I look at these results and I think about the second part of the year and 2025, the NII is resilient and can benefit
from the hedging if rates are going down. The fees are benefiting an insurance from your advisory model. The cost will continue to have a focus
on efficiency because of your IT investment and the asset quality seems under control. So all of these points to a very sustainable profitability.
Your capital is better, you have improved your capital outlook. So why don't you quantify a little bit more in detail your capital return? I know you
have a positive attitude to capital return. I know you always do it at the full year, but here all seems to trend better than what we expected. Why
remain so cautious? Thank you.
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JULY 30, 2024 / 1:00PM, ISP.MI - Q2 2024 Intesa Sanpaolo SpA Earnings Call
Question: Delphine Lee - JPMorgan Chase & Co. - Analyst
: Just one on my side. Can I maybe just come back on net interest income? If you don't mind giving us a little bit of the sort of the moving parts of
'25, which is really important for the market, and how much decline can we expect? I think you talked very positively about the outlook, but just
wondering if you could give us your assumptions that you're using for deposit costs and rates and the replicating portfolio, so anything that we
should think about to kind of make our forecast? Thank you very much.
Question: Andrea Filtri - Mediobanca - Analyst
: A question on NII and one on fees. On NII, CIB NII is up quarter on quarter with loans down and deposits up, while corporate center represents a
large increase on the quarter on quarter improvement in net interest income. Could you please elaborate on the causes behind these dynamics?
And if you could also give us on the fees, the contribution from upfront fees in Q2 and Q1, so not performance fees, but upfront fees. Thank you.
Question: Giovanni Razzoli - Deutsche Bank - Analyst
: Given the economy in Italy, you mentioned that you do expect 0.7%, 1% grow for 2024. I was wondering if you can share with us what your thoughts
about the sustainability of the cost of risk of the banks in general, because my perception is that we've seen a very different approach by competitors
in Italy. You are guiding, for example, 30 basis points, 40 basis points for 2024.
Some other of your closest peers are guiding less than 20 basis points. Someone is expecting to release provision overlays next year, you still have
a significant amount of data. So if you can please share your thoughts also based on your historical experience. Thank you.
Question: Andrea Lisi - Equita SIM S.p.A. - Analyst
: Just one, is on capital. If you can provide us indication if you have further room to optimize the risk-weighted asset and thus boosted CET1 further,
even considering the Basel IV impact. Thank you.
Question: Ignacio Ulargui - BNP Paribas Exane - Analyst
: I have one if I may. I just wanted to understand how much scope to improve the cost-to-income ratio do you see going forward in the light of what
you have given us in terms of revenues and costs? Thank you.
Question: Pamela Zuluaga - Morgan Stanley - Analyst
: The first one is on the insurance income. It came in relatively weaker versus Q1. And if we look at the deposits from insurance as well, somewhat
weaker. Could you give us some color on the trends that you're observing here? How do you see the evolution for this line for the rest of the year?
And then the other one is you flagged in Q1 that you were going to share with us some additional information from the discussions with the new
committee that is pushing for the growth of the wealth asset management and protection businesses. Could you give us any details on these
discussions and the strategy that you're pursuing? Did you come up with any additional targets? Or should the [2020 to '25] targets are still standing?
Thank you very much.
Question: Fabrizio Bernardi - Intermonte SIM - Analyst
: I have very quick questions. The first is on the trading line that is now very low, so maybe you can give a guidance even if I know it's not easy. The
second is given your shareholder base, and considering that you are trading above one-time the tangible, what we should think about the payout
policy? And the third is, given your market shares in Italy, what do you think about consolidation of the banking system in the country? Thank you.
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