Intesa Sanpaolo lowers its full-year earnings forecast amid its exposure to Russia | Photo credits: Cineberg / Shutterstock.com
MILAN, May 6 (Reuters) – Italy’s leading bank Intesa Sanpaolo on Friday lowered its 2022 profit forecast after booking 0.8 billion euros in provisions related to its exposure to the Russia.
Intesa said it expects annual net profit of more than 4 billion euros, down from a previous estimate of more than 5 billion euros released in early February before the Russian invasion of Ukraine.
In 2022, its net profit will be well over 3 billion euros, if the bank manages to increase its provisions to cover 40% of its exposure to Russia and Ukraine.
Intesa Sanpaolo, however, maintained its profit targets announced as part of its 2025 strategic plan.
Its exposure to Russia stood at 3.9 billion euros before the bank made its provisions in the quarter.
The exposure of its subsidiaries Banca Intesa Russia and Pravex Bank in Ukraine amounts to 1.1 billion euros.
Thanks to its trading activities, Intesa posted a quarterly net profit of 1.02 billion euros, well above an analyst consensus of 709.4 million euros established by Reuters. (Report Valentina Za, French version Anait Miridzhanian)