Intesa to detail Ukraine impact on 2022 profit with Q1 earnings-source



MILAN, March 17 (Reuters) - Italy's biggest bank Intesa Sanpaolo ISP.MI will detail the impact of the Ukraine conflict on its 2022 earnings when it reports first-quarter results in May, its CEO told a financial conference according to a person who attended the event.

Addressing the Morgan Stanley European Financials conference on Thursday, CEO Carlo Messina confirmed the bank's financial targets but said details on the net income impact for this year would be provided when Intesa next reports earnings.

Investors are fretting that the conflict will hit European banks' earnings through a fresh rise in loan loss provisions.

They worry in particular it will hamper cash distribution plans just as the sector appeared to be leaving behind the worst of the pandemic and a regulatory order to hold on to profits.

Intesa on Wednesday said it had put under the microscope its 5.1 billion euro ($5.7 billion) net loan exposure to Russia and Ukraine, linked for nearly half the overall amount to companies in the oil and gas sector.

Taking into account off-balance sheet items, Intesa's total net exposure to the two countries is 5.7 billion euros, Reuters calculations based on Intesa's figures showed.

Intesa, which in February set a payout goal of more than 22 billion euros through 2025, did not provide details on possible losses linked to Russia.

JPMorgan analysts calculated that a worst-case scenario would knock 1.4 percentage points off Intesa's core capital, adding the group can take a hit of up to 0.80 percentage points before coming close to its minimum management target of 12%.

Domestic rival UniCredit CRDI.MI has said a worst-case scenario of its Russian exposure being wiped out would entail losses worth 7.4 billion euros.

While confirming dividend payments for 2021, UniCredit has said a proposed 2.6 billion euro buyback hinges on its core capital remaining above 13%.

($1 = 0.8999 euros)
Reporting by Valentina Za, editing by Maria Pia Quaglia and Keith Weir

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