The group posted its best net income of the past 11 years in 2019 while sales of structured products increased by more than 40% compared to 2018.

Intesa Sanpaolo has reported net income for full year 2019, at €4.2 billion – the highest since 2007 – was up 3.3% versus €4.1 billion in 2018.

Proposed cash dividends amounted to €3.4 billion, which corresponded to the payout ratio of 80% indicated in the business plan for 2019.

Intesa Sanpaolo was the main structured products provider in Italy in 2019 with a 44% share of the market, according to SRP data. The group collected €6.9 billion from 97 products between 1 January and 31 December 2019, an increase of 43.5% from the €4.3 billion that was acquired from 62 structures in 2018.

The products were exclusively issued on the paper of its subsidiary Banca IMI, which specialises in investment banking and capital markets, and included offerings distributed via Fideuram and Intesa Sanpaolo Private Banking.

The bulk of the group’s sales volumes for 2019, at €3.9 billion, came from the 44 products linked to a single index including structures tied to the Eurostoxx Select Dividend 30 (13), Eurostoxx 50 (10), FTSE MIB (six), Euro iStoxx ESG Leaders 50 NR Decrement 5%, and iStoxx Low Carbon NR Decrement 3.75% (two each).

A further €2.2 billion was collected from 39 products linked to a single share, including the stocks of Generali, Eni, Total, and Volkswagen. There were also products linked to commodities (€300m from four products); FX rates (€207m from one product); and interest rates (€14m from three products).

A standard long certificate linked to the Eurostoxx Select Dividend 30 was the group’s best-selling product for the year, accumulating €337.2m in March. The seven-year securities, which are listed both in Luxembourg and at Borsa Italiana, pays an annual coupon equal to the performance of the underlying, with a 5.1% participation factor. The product was also distributed via Banca Apulia and Banca Prossima.

The best performing product for the year was a standard long barrier ‘worst of’ certificate linked to the shares of Generali and Eni, which sold €500k at inception and returned 156% after three-years, or 15.95% per annum.

The group’s sources of funding were ‘stable and well diversified’, with retail funding representing 80% of direct deposits from banking business, including securities issued.

Medium- and long-term wholesale funding was €9.5 billion in 2019 and included benchmark transactions of €1 billion covered bonds, senior of JPY13.2 billion, €3.5 billion, CHF250m and US$2 billion and €750m green bond – around 91% were placed with foreign investors.

Click the link to view the full year 2019 results and the presentation.