By Adria Calatayud 
 

Intesa Sanpaolo on Friday upgraded its 2023 outlook for the second time this year after second-quarter net profit rose and beat expectations, benefiting from a sharp increase in income on the back of higher interest rates.

The Italian bank said it expects net profit to grow to a level well above 7 billion euros ($7.69 billion) and a significant increase in its operating margin as a result of higher net interest income, the difference between what banks earn on loans and what they pay clients for deposits. Net interest income is now expected to exceed EUR13.5 billion, Intesa said.

The bank had previously guided for net profit to grow to around EUR7 billion and net interest income to exceed EUR13 billion in 2023.

For the second quarter, Intesa's net profit was EUR2.27 billion compared with EUR1.30 billion in the same period last year.

Operating income--the bank's top-line figure--rose to EUR6.34 billion from EUR5.34 billion. Net interest income climbed to EUR3.58 billion from EUR2.09 billion, while net fee and commission income declined slightly to EUR2.22 billion.

Analysts polled by FactSet expected Intesa to report quarterly net profit of EUR1.84 billion, net interest income of EUR3.38 billion and operating income of EUR6.16 billion.

 

Write to Adria Calatayud at adria.calatayud@dowjones.com

 

(END) Dow Jones Newswires

July 28, 2023 07:10 ET (11:10 GMT)

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