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BRIEF-Intesa Sanpaolo Q2 Net Income At EUR 1.42 Bln

Aug 4 – Intesa Sanpaolo SpA:

* Q2 FEES EUR 1.74 BILLION VERSUS EUR 1.84 BILLION IN Q1

* Q2 NET INCOME EUR 1.42 BILLION VERSUS EUR 1.1 BILLION IN REUTERS ANALYST SURVEY

* Q2 OPERATING INCOME EUR 4.14 BILLION VERSUS EUR 4.0 BILLION IN REUTERS ANALYST SURVEY

* Q2 NET INTEREST INCOME EUR 1.75 BILLION VERSUS EUR 1.75 BILLION IN Q1

* Q2 PROFITS ON FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE EUR 263 MILLION VERSUS EUR 994 MILLION IN Q1

* FULLY LOADED CET1 RATIO AT END-JUNE 14.9%

* Q2 LOAN WRITEDOWNS EUR 1.40 BILLION VERSUS EUR 403 MILLION IN Q1

* GROSS NPE RATIO AT END-JUNE AT 7.1%

* EVEN TAKING UBI BANCA ACQUISITION INTO ACCOUNT, GROUP’S DIVIDEND POLICY IS CONFIRMED

* NON-PERFORMING LOAN COVERAGE RATIO AT END-JUNE AT 53.1%

* WITHOUT CONSIDERING UBI ACQUISITION, SEES NET INCOME OF NO LOWER THAN AROUND EUR 3 BILLION FOR 2020, ASSUMING A POTENTIAL COST OF RISK OF UP TO AROUND 90BPS IN 2020

* ENVISAGES DISTRIBUTION OF CASH DIVIDENDS CORRESPONDING TO PAYOUT RATIO OF 75% AND 70% FOR 2020 AND 2021 RESPECTIVELY

* LOANS BACKED BY A STATE GUARANTEE OF AROUND EUR17BN HAVE BEEN GRANTED TO DATE (AROUND EUR7BN SACE AND AROUND EUR10BN SME FUND)

* DISTRIBUTION OF CASH DIVIDENDS IS SUBJECT TO ECB INDICATIONS

* WITHOUT CONSIDERING UBI ACQUISITION, SEES NET INCOME OF NO LOWER THAN AROUND EUR 3.5 BILLION FOR 2021, ASSUMING A POTENTIAL COST OF RISK OF AROUND 70BPS IN 2021

* INTENDS TO OBTAIN ECB APPROVAL TO DISTRIBUTE CASH FROM RESERVES IN 2021 IN LIGHT OF ALLOCATION OF 2019 NET INCOME TO RESERVES IN 2020

* PRO-FORMA FULLY LOADED CET1 RATIO EXPECTED TO BE ABOVE 13% IN 2021 IS CONFIRMED

* GRANTED IN H1 2020 AROUND 130 MORATORIA FOR AROUND EUR700 MILLION OF RESIDUAL LOANS AND SUBSIDISED LOANS OF AROUND EUR97 MILLION

* SUSTAINABLE VALUE GENERATION FOR ALL STAKEHOLDERS WILL BE ACCRETED BY COMBINATION WITH UBI

* SEES 2022 NET INCOME OF NO LOWER THAN EUR5BLN FOR GROUP RESULTING FROM ACQUISITION OF UBI

* INCOME (LOSS) FROM DISCONTINUED OPERATIONS AMOUNTED TO EUR1,134M (INCLUDING THE NEXI CAPITAL GAIN OF EUR1,110M) VERSUS EUR29M IN Q1 2020 AND EUR22M IN Q2 2019

* SEES AS OF 2022 STRATEGY FOCUSED ON REWARDING SHAREHOLDERS FOR GROUP RESULTING FROM ACQUISITION OF UBI

* SEES AS OF 2022 STRATEGY FOCUSED ON MAINTAINING SOLID CAPITAL RATIOS FOR GROUP RESULTING FROM ACQUISITION OF UBI

* H1 INCOME FROM DISCONTINUED OPERATIONS AMOUNTED TO EUR1,163M (INCLUDING THE NEXI CAPITAL GAIN OF EUR1,110M) VERSUS EUR41M IN H1 2019

* TO DISCLOSE BUSINESS PLAN BY END OF 2021 WHEN MACROECONOMIC SCENARIO IS CLEARER Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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