Intesa Sanpaolo saw better-than-expected interest rate tailwinds and sturdy asset quality trends in 1Q, which enabled the Italian bank to raise its short and mid-term profitability objectives, now expected at levels not seen since before the great financial crisis, AlphaValue says. The bank said that it expects 2023 net profit at around EUR7 billion as net interest income is forecast to exceed EUR13 billion, around EUR1 billion higher than consensus, AlphaValue analyst David Grinsztajn says in a note. The bank's non-performing loan ratio stood at a stable 2.4% of gross loans, a sign that asset quality trends showed no deterioration, the analyst says. The bank's cost of risk at the end of the quarter came to a "particularly benign" 17 basis points, he says. (pierre.bertrand@wsj.com)

(END) Dow Jones Newswires

May 08, 2023 04:22 ET (08:22 GMT)

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