By Pietro Lombardi
Intesa Sanpaolo SpA on Friday raised its expectations for the synergies related to the acquisition of smaller rival UBI Banca and posted a fourth-quarter loss due to impairments and integration charges related to the deal.
The Italian bank swung to a quarterly net loss of 3.1 billion euros ($3.71 billion) from a profit of EUR872 million a year earlier. Results include the contribution of UBI. Excluding items related to the acquisition, the bank posted a EUR10 million profit for the quarter.
The bank said it expected higher synergies from the acquisition of UBI. It now targets synergies of more than EUR1 billion, fully implemented in 2024. This compares with a previous estimate of around EUR700 million. More than EUR700 million is related to costs, with more than EUR300 million related to revenue.
Intesa Sanpaolo targets a net profit of more than EUR3.5 billion for this year. The bank is aiming for a payout ratio of 75% for 2020 and 70% for 2021, subject to ECB indications.
Write to Pietro Lombardi at pietro.lombardi@wsj.com; @pietrolombard10
(END) Dow Jones Newswires
February 05, 2021 07:57 ET (12:57 GMT)
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Read More: Intesa Increases Synergy Expectations From UBI Deal, Swings to 4Q Loss
