UPDATE 1-Italy’s Intesa Sanpaolo sees profit growth in 2024, 2025

(Adds details on share buyback, analyst comment)

MILAN, Feb 6 (Reuters) – Intesa Sanpaolo on Tuesday said it expects profits to grow further this year and next, after higher rates drove net income at Italy’s biggest bank up 76% in 2023.

Intesa said it would buy back its own shares starting in June for an amount that would take about half a percentage point off its core capital ratio, lowering it to 13.2% of risk- weighted assets.

That entails a share buyback of more than 1.6 billion euros, according to Reuters calculations, which Citi analysts said was higher than anticipated and would cheer the market, together with the fourth quarter’s stronger-than-expected net interest income.

The share buyback comes on top of cash dividends totalling 70% of income that Intesa ordinarily pays out to investors, which CEO Carlo Messina said placed his bank first in Europe in terms of dividend yield.

Intesa said net income would surpass 8 billion euros ($8.6 billion) this year and next, up from 7.7 billion in 2023.

($1 = 0.9310 euros) (Reporting by Valentina Za, Editing by Bernadette Baum)

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