Intesa Chief Expects Bank to Beat Targets Set Out in 4-Year Planby
Italian Bank targets net income of $5 billion in 2017
Intesa to expand asset management, private banking organically
Intesa Sanpaolo SpA will probably exceed targets set out in its four-year business plan through 2017 as the country’s economy rebounds, Chief Executive Officer Carlo Messina said.
“We are not planning to change targets, but we will beat them,” Messina told reporters in Milan late Thursday. Intesa “will over-deliver.”
Intesa, whose second-quarter profit more than quadrupled, is targeting net income of 4.5 billion euros ($5 billion) in 2017 and plans to distribute 10 billion euros of cash dividends over the course of the plan. Messina is focused on improving asset quality and expand the asset management, private bank and insurance businesses to help counter the negative effects of low interest rates, which are eroding income on lending and deposits.
Messina reiterated that Intesa, Italy’s second-biggest bank, isn’t interested in participating in any banking consolidation in the country. He said there’s no need for acquisitions to expand in private banking.
Messina reiterated his commitment to distribute 2 billion euros in cash dividends for 2015, and said that “available profit may be higher than expected and a final decision on the dividend will be taken at the end of the year.”