IITSF - Intesa Sanpaolo: Sleep Well At Night With 13% Yield
2024-02-10 05:40:44 ET
Summary
- Solid Q4 performance with a balance sheet further strengthened.
- Best-ever year on earnings, Cost/Income ratio, and non-performing loans.
- Potential upside on remuneration. Organic growth generation thanks to revenue diversification. Intesa Sanpaolo is a clear buy.
Following our recent publication on UniCredit (UNCFF) with a higher target price and post-Q4 results, we are back to comment on Intesa Sanpaolo's financials here at the Lab (ISNPY) (IITSF). We have a good grip on Italian banks, and thanks to our bottom-down approach coupled with a Net Interest Income Development Not Priced In , ISP has always been our favorite bank. In addition, to support our long-standing buy rating, we provided four additional reasons to hold the company or to start a new investment. In detail, 1) Intesa Sanpaolo decided to retain divisions such as Insurance, Asset management division, and Private Banks; 2) the bank has a low remuneration for clientele deposits; 3) we anticipated a potential buyback of €1.5 billion buyback in 2024 with a total return of >13% until 2025, 4) and we noticed a stock price underperformance compared to the Italian peers. Since our last update released in mid-November, ISP's total return has been up by almost 12%, and we are delighted....
Intesa Sanpaolo: Sleep Well At Night With >13% Yield