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Investing.com -- Intesa Sanpaolo SpA (BIT:ISP), Italy’s largest bank, on Friday confirmed its full-year profit forecast of "well above €9 billion" despite posting a relatively flat third-quarter performance.
The bank reported Q3 net profit of €2.37 billion, slightly above analyst expectations of €2.3 billion, while revenue came in at €6.64 billion, just below the €6.7 billion consensus.
The bank’s shares fell 2.6% following the results as investors reacted to the mixed performance. While fee and commission income and insurance business showed growth, these gains were offset by weaker trading results and declining net interest income.
For the first nine months of 2025, Intesa reported net income of €7.59 billion, up 5.9% compared to the same period last year. The bank maintained its solid capital position with a Common Equity Tier 1 ratio of 13.9%, well above regulatory requirements.
"The results for the first nine months of 2025 highlight that Intesa Sanpaolo is able to generate solid sustainable profitability," said the bank in its statement, adding that it plans to distribute €5.3 billion in dividends accrued in the first nine months, with €3.2 billion to be paid in November as interim dividends.
Net interest income fell 6.8% YoY to €11.11 billion in the first nine months, reflecting the challenging interest rate environment. However, this was partially offset by a 5.1% increase in net fee and commission income to €7.33 billion and a 4.7% rise in income from insurance business to €1.37 billion.
The bank’s cost-to-income ratio improved slightly to 38.9% from 39.1% a year earlier, while its NPL ratio stood at 1.1% net and 2.3% gross, with an annualized cost of risk at 25 basis points.
"Intesa Sanpaolo continues to operate as a growth accelerator in the real economy in Italy," the bank stated, noting that medium/long-term new lending to Italian households and businesses increased 40% YoY to around €43 billion in the first nine months of 2025.