A shower of dividends is coming for Intesa Sanpaolo. In all 3.3 billion in just over a month and, in Piazza Affari, the stock gains 1.1% to 2.52 euros. Yesterday the shareholders’ meeting of the Milanese bank approved the payment, on 20 October, of 1.93 billion coupons (equal to 9.6 cents per share), which is added to the 654 million paid in May (3.57 cents per share), thus bringing salary over 2020 to 3.505 billion (75% of profits). But that’s not all. We expect an interim dividend of 1.4 billion that will be paid on November 24, recalled Carlo Messina, CEO of Ca ‘de Sass, underlining how the ability to significantly remunerate shareholders, made possible by high profitability, is combined with considerable solidity capital levels, well above the regulatory requirements.
As for the future, the new business plan should maintain a high commitment to shareholders recorded in recent years: for 2014, 1.2 billion in dividends were paid, 2.4 billion for 2015, 3 for 2016, 3.4 for 2017 and the same for 2018, and after the stop on 2019 imposed by the ECB and 3.5 billion for 2020, a payout of 70% of profits is expected in 2021.
First of all, the banking foundations will benefit from this, which, in 2021 alone, will collect 1.5 of the 4 billion in dividends distributed over the twelve months in support of their inclusive action towards the territory. With this in mind, Messina confirms that it intends to maintain Intesa as the engine of sustainable and inclusive growth and also intends to activate medium and long-term disbursements for over 410 billion between now and 2026, in order to accelerate the transition. ecological, digitalisation, infrastructure projects, strengthening the health system, research, social cohesion.
In any case, the 2022-2025 plan envisaged in February, for Intesa Sanpaolo analysts presents an above-average dividend yield (yield). According to the multiples of Intermonte on the 2022 estimates, the stock returns 6.2% and 6.4% over 2023 (5.5% and 5% the Italian average for the sector).
The return to supercedole yesterday was made possible with the decline, with October, of the restrictions imposed by the ECB following the pandemic. On this front, Andrea Enria, head of supervision of the ECB, spoke yesterday, who from Brussels, while acknowledging the resilience of the sector, nevertheless called for caution. Even if the outlook has improved, caution remains essential. We will continue to apply the utmost vigilance in monitoring the accumulation of risks.
In particular, the Eurotower has turned the spotlight on credit quality. The figures still appear favorable, but the quality of assets seems to deteriorate, we see real estate vulnerability increase in some states and bankruptcies begin to rise in some sectors, Enria stressed that: Npl projections may be overly optimistic.