Understood, the dividend is not enough: very cautious brokers after the accounts

The best net profit of the last 11 years recorded by Intesa Sanpaolo in the first nine months of 2019 and the confirmation of a pay out ratio of 80% from the bank – "in line", as explained by the CEO, Carlo Messina, "with the commitment to reward once again the shareholders with a significant cash dividend" – were not sufficient for the moment to to convince market analysts of the opportunity to improve their stock recommendations.

Intesa Sanpaolo: the recommendations of analysts after the accounts

Several brokers, while commenting favorably on the accounts published yesterday, have in fact largely maintained cautious indications and in many cases negative opinions on the banking group's stock exchange prospects in the last few hours.

Intesa, Rbc: profit above expectations, but headwinds on 2020

The RBC experts, who on the eve of quarterly results had downgraded the bank from Sector Perform to Underperform two days ago and cut the target price from 2.3 to 2.2 euros, reiterate the advice to sell the shares despite judging in order the accounts for the quarter: the net profit significantly exceeded expectations, the broker admits on the one hand, but on the other hand it shows that winds remain contrary to the analysts' average estimates on 2020 results.

Understanding: the net profit for the third quarter and the first nine months

In the third quarter alone, we recall, Intesa reported a net profit of 1.04 billion (+ 25.3% compared to the same period of 2018, but -14% in comparison with the second quarter of 2019), thus beating the estimate of 949 million advanced by the Reuters consensus. In the first nine months of the year, the profit thus came to 3.3 billion, up 9.9% compared to the same period of 2018, a result that allowed the group to once again confirm the objective of exceed this year 2019 the 4 billion of 2018. (Press the lower right button to continue)