MILAN, Oct 31 Reuters Italy39;s biggest bank Intesa Sanpaolo on Thursday promised to add a sizeable share buyback to dividend payments on its 2024 results, after it beat expectations with its thirdquarter profit and upgraded its guidance for next year.

A 10 yearly rise in net fees at Intesa, whose business is geared towards wealth management and insurance services which it runs inhouse, contributed to lifting net profit by more than a quarter in the JulySeptember period from a year ago.

Due to the results of the group, I39;m really convinced that the proposal to the board could be for a significant buyback, CEO Carlo Messina told analysts.

Intesa is awaiting fullyear results before deciding on share buybacks on top of its 70 cash payout ratio.

After higher interest rates turbocharged profits in recent quarters, Italian banks are working to boost fee income to offset the waning contribution from rates as the European Central Bank cuts the cost of borrowing.

However, Intesa said it would earn more than anticipated from the gap between lending and deposit rates this year, adding net interest income NII would also hold up well next year.

A successful ratehedging strategy and higher loan volumes would sustain NII in 2025, while net fees would keep growing.

As a consequence, 2025 net profit will reach around 9 billion euros, Intesa said, improving its previous estimate of a result that would match its 2024 goal of more than 8.5 billion euros.

Intesa last week stuck to…