Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on INTESA SANPAOLO. We currently have 7 research reports from 1 professional analysts.
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Record fee income generation, modest NPL coverage catch-up
03 Feb 17
The quarter was characterised by a record fee income generation and good cost control which more than offset ongoing net interest margin pressure. The group benefited from non-recurring gains to modestly increase its coverage on Unlikely-to-Pay loans, which remains notably below the market’s standards in our view. Management reiterated its €3.4bn cash dividend commitment for this year, which will be easily fulfilled as it is confident in the group’s ability to grow its earnings.
Unexpected interest in Generali
25 Jan 17
Following press rumours of a joint offer with Allianz on Generali, the group issued a statement in which it confirmed it is examining such a combination among other deals submitted by its advisory banks. In the meantime, Generali has acquired a 3% stake in ISP, which, according to the rules limiting cross-shareholdings in Italy, will prevent ISP taking a minority stake without Generali’s agreement, leaving no other option than making an offer on more than 60% of the insurer’s capital.
Solid underlying performance but potential lack of NPL coverage
04 Nov 16
The quarter showed good top-line resilience and cost control, and strong asset quality trends. On the other hand, it was also marked by an elevated provisioning effort to raise the coverage on unlikely-to-pay and overdue loans confirming a potential coverage issue. The full-year dividend commitment is already more than covered when including the €895m gain on SETEFI and Intesa Sanpaolo Card to be booked in Q4.
Waiting for troubled banks' bailout
08 Jul 16
Following the stock’s sharp underperformance translating into a stressed valuation, we have decided to reassess our forecasts and valuations. There is little doubt that the market turmoil will have immediate consequences in terms of revenue generation. On the other, it is not guaranteed in our view that asset quality trends have to be questioned. We see as very likely that the pending solutions to backstop troubled regional banks and BMPS will not repeat the mistake made with the Atlas fund that involved both ISP and UCG thus creating a dangerous systemic loop. If they also avoid involving them through the resolution fund, that would be good news even if the upcoming October referendum could continue to weigh on the relative valuation.
Superior profitability and growth potential intact
02 Jun 16
Like other wealth management oriented groups, ISP’s first quarter top-line performance was impacted by the market’s turmoil. However, the visibility on revenue growth for the next couple of years remains strong even if the fee income guidance for this year will not be met. The quarter demonstrated the group’s ability to absorb a revenue weakness through cost flexibility. Last but not least, the asset quality normalisation was ahead of plan, translating into a cost of risk already below the objective set in the 2017 business plan. Management considers that the market underestimates the stabilisation power of the Atlante fund which is seen as a game changer. The limited impact of the group’s investment will be more than offset by the boost provided by the disposal of the payment and card businesses.
Management does not share the market's concerns
16 Feb 16
Quarterly results were hit by extraordinary and seasonal factors. The underlying trends and the capital position remained strong which led the group to increase the cash dividend payment promise by 20%. The €3.0bn dividend commitment for this year has been reiterated while management considers that the visibility on the commercial and asset quality momentum is strong and that the Italian economy recovery will likely surprise on the upside. Last but not least, it considers that NPL coverage concerns are totally misplaced.
Another positive verdict
20 Mar 17
Burford’s results for 2016 produced another outstanding set of figures. Revenue grew by 60% to $163.4m with strong growth in the litigation finance business and an additional boost from a secondary sale in the Petersen case. On an underlying basis net income grew to $114m, a 75% increase despite the investment in growing capacity which increased costs. A combination of ongoing investment and gains and increases on valuation saw the fair value of the litigation assets increase 67% to $559m, underpinned by a growth in invested capital to $394m. With the results statement there was an announcement of a further sale of 9% of the Petersen case at a valuation of 20 times the cost of investment.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017
N+1 Singer - N1S Trend spotting - Strategy update
08 Mar 17
In this new product we present some strategy theme updates arising out of our latest analysis of macro trends and economic data and our innovative Quant work. We also look at upcoming events and suggest topping up on some of our Best Ideas for 2017.