DJ Intesa's Underlying Earnings Trends Were Better Than Expected -- Market Talk
1522 GMT - While Intesa Sanpaolo swung to a net loss in the fourth quarter on higher-than-expected restructuring and impairment charges related to the acquisition of UBI Banca, underlying earnings trends came in above projections, KBW says. This was due to a strong fee income, which beat market consensus by 12%, KBW says. The Italian bank's capital ratio is also strong, KBW says, and notes that the bank reported a consensus-beating CET1 ratio of 15.9%. "The CET1 ratio increased quarter-on-quarter despite the capital hit from the usage of the UBI badwill and a slight increase in risk-weighted assets, so the beat seems to be explained by lower deductions," the investment bank says. KBW has an outperform rating on the stock. Intesa Sanpaolo trades 3% higher at EUR2.07. (email@example.com)
(END) Dow Jones Newswires
February 05, 2021 10:22 ET (15:22 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.