Intesa Sanpaolo Reports Strong Q2 Profit, Upgrades 2025 Outlook

Intesa Sanpaolo, Italy's largest bank, reported better-than-expected second-quarter earnings with a net profit of 2.6 billion euros, surpassing analyst forecasts. The bank's operating income rose slightly, driven by a 2.6% increase in fee and commission income, which offset a 5.7% decline in net interest income. Intesa Sanpaolo upgraded its 2025 net profit outlook to well above 9 billion euros, factoring in planned one-off managerial actions in the fourth quarter aimed at strengthening the sustainability of its results. While the bank did not disclose specifics, these measures are expected to include restructuring, voluntary staff exits, or provisions for bad loans. The bank also noted a 5% quarter-on-quarter increase in its net interest margin and anticipates further improvement in 2026 due to its hedging strategy on interest rates. Shares responded positively to the results, rising over 3%, reflecting investor confidence in the bank's performance and outlook.