Who wants to be a Milanese?

12 March 2013 By George Hay Follow @gfhay

The country’s largest retail lender managed a profit in 2012. The good news is strong capital and liquidity; the bad news its exposure to a weak sovereign. Still, if it needs to bolster provisions, Intesa is much better positioned than peers to do so – without raising capital.

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Intesa Sanpaolo announced 2012 net interest income down 3.6 percent to 9.4 billion euros on March 12. The Italian lender also revealed net income of 1.6 billion pounds, compared to an 8.2 billion euro loss in 2011.
Intesa said gross non-performing loans grew from 42 billion euros in 2011 to 49.7 billion euros in 2012, covered 44.9 percent by provisions. It also said that a probe into Italian banks’ general provisioning levels by the Bank of Italy had found it only needed to increase its buffers against loan losses by 6 million euros.
Intesa predicted a 2013 core Tier 1 ratio above 10 percent, and a dividend equal or higher to 2012.
By 1600GMT, Intesa shares were trading at 1.26 euros, up 0.6 percent in a falling domestic market.

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