ROME — Italy’s two biggest banks reported record profits in 2023, showing the country’s banking sector is recovering from recent difficulties.
On Tuesday, Banca Intesa Sanpaolo, Italy’s largest bank by total assets, reported net profit for 2023 of 7.7 billion euros ($8.3 billion), up 76.4% from a year earlier. The day before, UniCredit announced a record net profit of 8.6 billion euros last year, an increase of 51% compared to 2022, both of which exceeded market expectations.
Both banks are ranked among the 50 largest banks in the world, according to Standard & Poor’s ratings.
Over the past three years, the Italian banking sector has faced multiple challenges due to the financial impact of the COVID-19 pandemic and the energy crisis triggered by the Ukraine crisis.
Additionally, four months ago, Italy’s parliament passed a one-time tax of 40% on banks’ excess profits. The move was expected to raise about 1.8 billion euros for Italy’s finance ministry.
Although bank stocks were shaken in October by the impact of taxes, Banca Intesa Sanpaolo and UniCredit, like other large Italian banks, avoided one-time taxation by putting excess profits into special reserves, maintained record profit levels. A whole year.