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Italy's Intesa reassures investors over capital distribution

Published 20/01/2023, 20:17
© Reuters. FILE PHOTO: Intesa Sanpaolo skyscraper, designed by Italian architect Renzo Piano, is seen in Turin April 10, 2015.  REUTERS/Giorgio Perrottino/File Photo

MILAN (Reuters) - Intesa Sanpaolo (BIT:ISP) on Friday sought to reassure investors that it had sufficient capital reserves to see through its shareholder distribution plans, after its shares fell on concerns about reported large asset disposals.

© Reuters. FILE PHOTO: Intesa Sanpaolo skyscraper, designed by Italian architect Renzo Piano, is seen in Turin April 10, 2015.  REUTERS/Giorgio Perrottino/File Photo

Intesa (LON:0HBC) said it expected its best quality capital to stand at around 13% at the end of the year and to remain well above the bank's minimum target of 12% over the course of its business plan "with significant value creation and distribution to shareholders."

It added that the reduction in risk-weighted assets that took place in the fourth quarter was due to regulatory changes kicking in on Jan. 1, 2023, which meant the assets in question had a negative impact when comparing the operating income they produced with the cost of capital they required.

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